ANZ EDITION JANUARY 2020 anz.businesschief.com
TRANSFORMING THE CUSTOMER EXPERIENCE
BUILDING LONG-TERM RELATIONSHIPS HOW MCPHERSON’S APPROACH IS LEADING TO SUSTAINABLE GROWTH
City Focus
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FOREWORD
W
elcome to the January issue of
In this month’s City Focus, our eye
Business Chief ANZ!
is turned to Western Australia’s
This month’s Business Chief ANZ cover feature looks at beauty, health and wellness company McPherson’s Consumer Products. We spoke to Mark Brady, Supply Chain Director at the company, to find out how
capital and largest city, Perth. Despite having derived much of its wealth from mining and resources, nowadays a booming service and tourism economy is setting Perth in good stead for the future.
McPherson’s is leveraging long-term
In our top 10, Business Chief looks at
positive relationships with both
some of Asia’s top digital disruptors,
employees and partners to achieve
shaking up established industries and
sustainable growth.
ways of doing business with new
There’s a large focus on empowering
approaches.
employees at the company. “The
Do you have a story to tell? If you
ability for a company to find and
would like to be featured in an
retain staff is so important,” says
upcoming issue of Business Chief
Brady. Safety is another priority, with
ANZ, get in touch at
McPherson’s Occupational Health
william.smith@bizclikmedia.com
and Safety committee led by employees. “It is key to us that our employees drive our safety culture,”
Enjoy the issue! William Smith
adds Brady. “We want people to go home as happy and safe as they came to work.” a nz .busi ne ssc h ief. com
03
In this Transformative Age, convergence is driving the reimagination of industries to create limitless opportunities. ey.com/analytics/networkrevolution #BetterQuestions
Š 2019 Ernst & Young, Australia. All Rights Reserved. Liability limited by a scheme approved under Professional Standards Legislation. EDNone. PH1010063.
Does industry collision shatter or shape our future thinking?
ANZ EDITION
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CONTENTS
26 Trends for Asia and beyond at Web Summit
48
38
66 74 58
CONTENTS CONTENTS
90 T2 Tea
104 Sodexo
122 Coca-Cola Amatil
140 NTT Data
12
JA N UA RY 2020
ON LONG -TERM RELATIONSHIPS WRITTEN BY
SHANNON LEWIS PRODUCED BY
CAITLYN COLE
a nz .busi ne ssc h ief. com
13
McPHERSON’S CONSUMER PRODUCTS
WE SPEAK TO MARK BRADY, SUPPLY CHAIN DIRECTOR AT MCPHERSON’S ABOUT HOW THE COMPANY LEVERAGES LONG-TERM POSITIVE RELATIONSHIPS WITH BOTH EMPLOYEES AND PARTNERS TO ACHIEVE SUSTAINABLE GROWTH
M
cPherson’s Consumer Products (MCP) is an Australian Health Wellness and
Beauty brand with a legacy that dates to 1860.
14
MCP is a global company, distributing across Australia and New Zealand as well as in China, Singapore, the UK, Germany, and the Middle East. Aside from marketing and distributing its own brands, it also engages with agency work. MCP is a category leader for several of its brands; Lady Jane and Manicare lead in pharmacy while Multix is the number one brand in the Australian grocery channel. Its company mission is to “create better ways for people and communities to thrive.” According to Brady, “at MCP, we want to challenge the norm.” Mark Brady has worked at MCP for eight years as the Supply Chain Director. By MCP standards, he is relatively new. His team consists of 90-100 people, subject matter experts in a variety of fields. The average tenure within supply chain at MCP JA N UA RY 2020
15
a nz .busi ne ssc h ief. com
McPHERSON’S CONSUMER PRODUCTS
is 18 years. According to Brady: “We
Valuing employees has been key
leverage off this every single day. The
to MCP’s success. In its canteen
adaptability, learnedness and calm
area hang photos of employees who
temperament of this group means that
have 10+ years of tenure. Leadership
whenever we have new challenges,
and accountability are at the core of
we have experience to fall back on.”
creating a positive atmosphere. MCP
Brady’s background in operations
holds long-service award dinners.
has been key to his success in his
Hosted by Laurie McAllister, manag-
role at MCP. He is trained in Lean and
ing director at MCP, they are attended
Six Sigma. The two pillars of success,
by senior leadership, board members,
according to Brady, are the clear abil-
partners, and long-stay employees
ity to define processes and reliable
in milestone years of employment:
collaborative teamwork.
10, 15, 20, 25 years. “The ability for a
16
“ WE HAVE TRIED TO ALIGN OURSELVES WITH KEY STRATEGIC PARTNERS WITH WHOM WE CAN DEVELOP A LONGSTANDING RELATIONSHIP” — Mark Brady Supply Chain Director McPherson’s Consumer Products
JA N UA RY 2020
CLICK TO WATCH : ‘MCPHERSON’S CORPORATE VIDEO’ 17
company to find and retain staff is so important,” Brady affirms. Being an Australian-business based in Australia means employees are empowered to make decisions that affect the wider company. With 75 people working in the warehouse, safety is another priority at MCP. Its Occupational Health and Safety committee is led by employees. “It is key to us that our employees drive our safety culture,” Brady says, “we want people to go home as happy and safe as they came to work.” a nz .busi ne ssc h ief. com
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“ THE ABILITY FOR A COMPANY TO FIND AND RETAIN STAFF IS SO IMPORTANT” — Mark Brady Supply Chain Director McPherson’s Consumer Products
MCP has been in a process of balanced growth. It is looking to enhance its primary Beauty branch while growing its Health and Wellness arm. In so doing, it aims to maintain its status locally while looking overseas for opportunities. China provides a massive potential market for MCP. There are 24 million people in Australia; there are 240 million people in the Chinese middle class alone. “This growing
E XE CU T I VE PRO FI LE
19
Mark Brady Mark has lead the global supply chain area at McPherson’s for the last five years, after being promoted from his role driving continuous improvement and quality across the organisation. Mark has been able to lead the organisation’s supply chain through structural and operational change and efficiency improvement, enabling sustainability and growth within McPherson’s. With 20 years’ experience across operations and supply chain, Mark has worked within a number of industries including pharma, FMCG, food grade manufacturing, electronics and services delivery. As an engineer by education, Mark has a robust, analytical approach coupled with qualifications in continuous improvement methodologies, including Lean, Six Sigma and World Class Manufacturing. a nz .busi ne ssc h ief. com
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21
domestic market and the overlaid China volatility brings forecasting challenges,” Brady notes. “We can have a 12,000 forecast for a given month and then get a purchase order for 90,000 with no warning.” As a solution, MCP turns to partnership with Access Brand Management (ABM), a reseller in China. Its direct-selling app has 3.2mn people registered. MCP also bought a small share in skincare contract manufacturers Aware Group, to help provide the continuous supply required thanks to its new links to China. The growth
“ DEALING WITH THESE MANY TYPES OF SUPPLIERS ALLOWS THE ADAPTABILITY AND FLEXIBILITY THE MARKET DEMANDS” — Mark Brady Supply Chain Director McPherson’s Consumer Products a nz .busi ne ssc h ief. com
McPHERSON’S CONSUMER PRODUCTS
1860
Year founded
$4mn Revenue in US dollars
750
Number of employees 22
JA J A N UA U ARY R Y 2020 2020
has been phenomenal. MCP brand, Dr. LeWinn’s, has gone from selling AU$300,000 three years ago to AU$16mn last year, with projections of making AU$25mn this year. With the help of Aware Group and ABM, MCP manufactured and sold as much product in the months of May and June as it had in the prior 10 months. “We have tried to align ourselves with key strategic partners with whom we can develop a long-standing relationship,” Brady explains. “Like our staff tenure, we have many relationships that are 10-15 years old.” For shipping, MCP has a 15-year relationship with Mondiale freight. For warehouses, it turns to its 15-year partnership with Concept Warehousing. New partners that join supply chain are heavily vetted, with an eye on a long-term future. Partners range from larger companies that can scale to leaner companies that are agile. “Dealing with these many types of suppliers allows the adaptability and flexibility the market demands,” Brady affirms. The launch of Dr. LeWinn’s R4 collage, Surge was the fastest and most successful launch in the pharmacy a nz .busi ne ssc h ief. com
23
McPHERSON’S CONSUMER PRODUCTS
channel to date, brought about thanks to partnerships with domestic partners such as Chemist Warehouse, Priceline and the virtuous cycle created with ABM and manufacturing partners Pharma Cosmetics. MCP has also recently started engaging in jointventure partnerships, buying 51% of a company’s shares and growing it until it is financially viable enough to be bought out. It acquired a stake in skincare brand Kotia, in tanning brand Sugarbaby, and in wellness company 24
Soulful. “The advantage of joint-venture platforms is that they allow MCP to go from a standing start,” Brady says.
“ IF I LOOK AT OUR SHARE PRICE TODAY STANDING AT MID $2.00. FOUR MONTHS AGO, WE WERE AT $0.75” — Mark Brady Supply Chain Director McPherson’s Consumer Products
JA J A N UA U ARY R Y 2020 2020
“We leverage all our strategic partnerships across a number of key suppliers to enhance the product offering capability in our brands.” MCP comes from a history of change. Its origins in 1860 as a hardware and tools store saw it participating in the construction of the iconic Harbour Bridge. Although now operating in a different sphere, this legacy of adaptability continues. Four years ago, MCP was $68mn in debt. It has shrunk that debt to a tenth the size.
25
In the last five years, MCP has exited
at our share price today standing at
eight different brands and business
mid $2.00, four months ago, we were
arms while inbounding 18 new ones. “It
at $0.75. That’s a phenomenal story
really hearkens to that flexibility,” Brady
and I feel proud, as all the supply chain
comments, “to take something that’s
team should, that we can add to that
new and be able to move forward with
outcome. It’s a great place to work and
it.” Looking to the future, MCP sees
I am glad to be here.”
growth, balancing domestic and new external customers. It is also in the early stages of considering machine learning and AI as tools for forecasting. “We continue to be on the journey for further success,” Brady says, “if I look a nz .busi ne ssc h ief. com
LEADERSHIP
26
Photos © The Web Summit JANUARY 2020
5G, IoT and Space: trends for Asia and beyond at Web Summit BUSINESS CHIEF TAKES A LOOK AT ASIA’S PRESENCE AT WEB SUMMIT, AND THE TRENDS AND AGENDAS BEING SET BY COMPANIES FROM CHINA, SOUTH KOREA AND JAPAN WRITTEN BY
WILLIAM SMITH
a nz .busi ne ssc h ief. com
27
LEADERSHIP
W
eb Summit has arguably become the world’s most important technology
conference since its inauguration 10 years ago.
But what does the Lisbon-based event have to offer from an Asian perspective? An increasing amount, it turns out. Speaking to Pitchbook, cofounder Paddy Cosgrove hailed the increasing presence of Asian companies and investors at last November’s edition of the conference. “One of the biggest areas of [investor] growth has been China,” said Cosgrove. “We have Chinese and Japanese translations for the very first time 28
on stage. And that kind of reflects the demographic and geographic change.” On the subject of China, one of the most heavily promoted talks coming from the chairman of Chinese technology firm Huawei, Guo Ping. Guo’s talk focused on Huawei’s conception of 5G+X. “This ‘X’ can be AI, big data, VR or AR, among other technologies,” said Guo. “I believe that in the future, 5G+X will create countless opportunities for entrepreneurs,” he went on to say, comparing the potential of the technology to the introduction of electricity. “The rollout of 5G commercial networks is occurring more [quickly] than expected. As of now, 40 carriers in over 20 countries are using 5G networks commercially. We predict that by the end of this year, we will see 60 commercial 5G networks.” JANUARY 2020
29
A raft of existing use cases of 5G technology were given by Guo, including musicians being able to remain in time while playing together over the internet, owing to real-time, low-latency communication, as well as reducing the need to inspect pipelines in person, thanks to high definition video streaming from remote locations. “The applications and software built on top of [5G] is what generates value. [...] Huawei has been working with carriers a nz .busi ne ssc h ief. com
LEADERSHIP
“ The applications and software built on top of [5G] is what generates value” — Guo Ping Chairman, Huawei
on the cusp of a third phase of home technology. The first saw the introduction of refrigerators, microwaves and vacuum cleaners, though “each stood alone, serving a single mechanical purpose.” Continuing, Eun explained that “the second phase began more recently, connecting our devices and appliances to the internet, leveraging sensors and software to bring it all together, giving us what is now referred to as the connected home.” Eun expects the current, second phase to be accelerated by
30 to create a foundation, so app and software developers can fully unleash their potential,” he said. The talk was in line with the Huawei’s attempt to build its own “next generation” ecosystem of technologies, owing to the cold shoulder being shown to the company by the US government. 5G was also an important element of a talk from Samsung Electronics’ Chief Innovation Officer, David Eun, discussing an area where the full breadth of Samsung’s products can interact: the home. Eun believes that we are JANUARY 2020
CLICK TO WATCH : ‘WEB SUMMIT 2019’ 31
technologies such as 5G. “With the advent of 5G, the percentage of connected devices in the home will continue to grow,” he said. “In the near future, the question won’t be, ‘how many devices are connected?’ The question will actually be, ‘how many devices are not connected?’” Another promising avenue sees technology migrating from palms to everyday objects. “The majority of voice assistants live on smartphones and speakers, today. But I believe, in the future, it’s conceivable that most every a nz .busi ne ssc h ief. com
LEADERSHIP
device and appliance will have voice assistance built in.” The third phase, as Eun sees it, is built around “experiences”. “I believe that technology in the home is ready to undergo its own reinvention,” said Eun. “People want their devices to be more than just amazing, connected things. They want them to be creators and enablers of experiences. This future is possible because the foundation of connected devices, along with new 32
“ I believe that technology in the home is ready to undergo its own reinvention” — David Eun Chief Innovation Officer Samsung Electronics
JANUARY 2020
technologies, is bringing the digital and the physical worlds together.” Samsung sees the potential of the Internet of Things (IoT) technology in every room of the house. Regarding the kitchen, for instance, Eun said: “It’s a place that will intelligently provide everyone living in your home with the meal planning and preparation to enable a healthier and happier lifestyle. And these aren’t just kitchen appliances that simply store, cook and keep your food fresh. They will become your nutritionist, your personal chef, and shopping assistant.” Of the bathroom, “It will be transformed into a wellness and health center, constantly checking in and sampling key health indicators of your overall well-being.” Aside from titans such as Huawei and Samsung, smaller Asian organisations also made their mark. One such example was Japanese lunar exploration startup ispace, which raised over $90mn in a Series A round led by Japan Airlines and Tokyo Broadcasting System. Takeshi Hakamada, CEO and founder, spoke about the business opportunities private lunar missions presented to non-space companies. a nz .busi ne ssc h ief. com
33
LEADERSHIP
“ispace is developing robotic spacecraft to provide transportation services to space agencies, and then to commercial companies,” summarised Hakamada. “Our vision is to extend human life into outer space.” Hakamada highlighted the increasing activity surrounding the moon, thanks to government space agencies. India’s Chandrayaan-2, the US’ Artemis Mission to land people on the moon by 2024 and Japan’s upcoming SLIM were all mentioned. But increasingly 34
missions are being achieved with the collaboration of private companies, as demonstrated by NASA’s Commercial Crew in partnership with SpaceX and Boeing. “ispace is developing a lunar lander and a rover to explore the surface of the moon. We take a different approach from the others. Our strength is to utilise Japanese production technology to lower the mass of the hardware, as much as possible. That enables us to lower the cost of missions and increase their number.” Having constructed a rover just 4kg in weight, Hakamada hopes it can be used to explore the lunar surface for resources as well as potential sources JANUARY 2020
“ Our vision is to extend human life into outer space” — Takeshi Hakamada CEO, ispace
“ Making the most of energy is absolutely central to our future and the future of our kids” — Philippe Delorme, Executive Vice President, Energy Management, Schneider Electric
35
of water. “We have a vision to cre-
Whether it’s 5G, IoT, or even space,
ate new industries in space,” said
Asian enterprises are increasingly
Hakamada. “But space companies
at the forefront of both setting and
cannot do it by ourselves.”
driving the technological agenda,
If humans are to extract economic value from the moon, Hakamada
whether that’s in the region, the world, or beyond.
suggested, industries as varied as construction, insurance, automotive and telecommunications would have to be involved. “ispace aims to be a platform for non-space companies to bring their technology and their business to the lunar surface.” a nz .busi ne ssc h ief. com
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H AV E Y O U S E E N O U R O T H E R T I T L E S ?
TECHNOLOGY
FUTURE OF OPERATIONAL RISK MANAGEMENT
38
WHY BUSINESSES NEED TO EMBRACE NEW TECH ROBERT RUTHERFORD, CEO OF IT CONSULTANCY QUOSTAR, DISCUSSES THE BENEFITS OF A TECHNOLOGICAL APPROACH TO RISK MANAGEMENT WRITTEN BY
JANUARY 2020
ROBERT RUTHERFORD
39
a nz .busi ne ssc h ief. com
TECHNOLOGY
T
he impact of technology on the business world is pervasive and constantly evolving, which has meant that companies must
take action in order to stay both competitive and secure. However, with so many complex products and solutions on offer, it can be difficult for businesses to know where to begin. For some companies, it may be tempting to prioritise client-facing technologies that promise immediate and measurable commercial benefits, but businesses also need to think about long-term transformations in key areas, such as
40
operational risk management (ORM). The impact of poor risk management can be devastating for firms not only financially, but also reputationally, yet some businesses seem willing to take chances in this area. Failing to update ORM processes and systems will leave these businesses vulnerable to increasingly sophisticated cyber threats, data breaches and fraud. Investing in new technology for ORM is therefore more than just common sense – it’s essential.
AUTOMATED DETECTIVES: ANTICIPATING RISKS Identifying areas of vulnerability from vast swathes of data is definitely not a one-man job. A report by McKinsey notes that around 50%
JANUARY 2020
41
“ ORGANISATIONS CAN ALREADY USE REAL-TIME RISK DATA TO ADVANCE DECISION-MAKING BY ESTABLISHING A FRAMEWORK THAT USES AUTOMATED PROCESSES” Robert Rutherford, CEO of IT consultancy, QuoStar
a nz .busi ne ssc h ief. com
TECHNOLOGY
of financial services staff are currently dedicated to risk-related work, while just 15% are focused on analytics. Although, by 2025, it anticipates these figures will be closer to 25% and 40%, respectively. The integration of AI and data analytics systems in ORM will be responsible for this reversal. In today’s world, data rules the roost, sparking a wave of advanced analytics tools that will become more valuable as
“ THE IMPACT OF POOR RISK MANAGEMENT CAN BE DEVASTATING FOR FIRMS” Robert Rutherford, CEO of IT consultancy, QuoStar
more data is shared. Predictive analytics techniques, machine learning, 42
and artificial intelligence can all help to efficiently build large and complex data sets. Working at a faster pace than any human, these solutions can be used to identify discrepancies long before they cause any serious problems. While AI’s capacity for a rational, proactive response is still in the very early stages of development, organisations can already use real-time risk data to advance decision-making by establishing a framework that uses automated processes. For example, banks can now invest in robotic process automation (RPA) bots that will continuously scan their internal environment and collect data from predetermined JANUARY 2020
CLICK TO WATCH : ‘LEGAL IGNITE – ULTRA-SECURE LEGAL CLOUD PLATFORM | QUOSTAR’ 43 sources. As a result of developments
a proactive working relationship with
like these, time-consuming and costly
these solutions.
manual auditing methods will eventually become a thing of the past.
While defending against risks like cyber-attacks is vitally important, many at board and executive level are still
RISK STRATEGY IS A TEAM GAME
unsure how to tackle this issue. This is
Breakthroughs in data analytics also
alarming considering that 69% of
mean that machines can now process
financial services CEOs report they
data faster, more efficiently and without
are concerned about cyberthreats,
any bias. As such, it’s important for risk
according to a 2016 survey by PwC.
managers to see this technology as
Those responsible for risk manage-
a tool to be exploited and leveraged,
ment strategies can often find that there
rather than as a threat. To this end, all
is a knowledge gap between them
areas of the business need to under-
and the board-level decision makers,
stand its capabilities in order to build
as executives tend to rely on external a nz .busi ne ssc h ief. com
TECHNOLOGY
consultants for answers. However, it’s the board that will ultimately be held accountable for any failings, so effective communication between risk managers and decision-makers is essential. Business leaders should therefore focus on creating a culture that not only prioritises risk management, but also one that encourages employees at all levels to engage with the systems they use. This top-down approach is the only way to ensure that everyone is properly prepared for the inevitable 44
shift in ORM’s technological architecture and able to mitigate and manage the operational risks of the future. Some businesses will struggle with what can potentially be a significant change to the way they operate, so shouldn’t be afraid to seek expert help on how to manage this transition. Failure to address risk would be a serious error, but mitigating risks in the wrong way can be equally as damaging.
CAUSE FOR CONCERN? Future proofing with technology like data analytics and AI shouldn’t make employees worry about job security. A company using new technology to JANUARY 2020
manage risk will see a reduction in operating and auditing costs, an optimisation of its insurance coverage, as well as an increase in staff satisfaction. By introducing tools that are capable of automating manual processes, businesses will find that employees have more time to optimise their output and reconsider their relationship to ORM. Without a doubt, the switch from human to algorithm-based risk assessments will present new challenges, some of which may be difficult to anticipate. This is simply the nature of change. What we do know is that developing a robust ORM strategy using new technology leads to more
“ DEVELOPING A ROBUST ORM STRATEGY USING NEW TECHNOLOGY LEADS TO MORE PROACTIVE AND INFORMED DECISIONS”
proactive and informed decisions, giving businesses the competitive edge necessary to grow in today’s marketplace. The field may be complex, however, there isn’t a better time to take ORM seriously and invest in the future.
Robert Rutherford, CEO of IT consultancy, QuoStar
a nz .busi ne ssc h ief. com
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Women in Procurement & Supply Chain 2020
“A great opportunity to meet likeminded ladies, discuss relevant issues and trends in the profession and be comfortable with the supportive network around you.” Taylor Pearce Procurement Specialist MLC Life Insurance
“Like many industries, the procurement and supply chain industry has been traditionally male dominated and it is time to address this. This conference is incredibly important as a way for females to lean on and learn from each other as they navigate their way to being stronger, better and more able to take on the challenges of their industry.” Kath Blackham Chief Executive Officer Versa
“Having a conference that encourages and enhances the connections between professionals in procurement is vital to advancing the profession. The Women in Procurement & Supply Chain conference always reinforces the importance of diverse thought and is incredible to hear from such inspirational speakers.” Chontelle Kelly Procurement Specialist Nestlé
WHY YOU NEED TO COME TO WOMEN IN PROCUREMENT & SUPPLY CHAIN 2020! Don’t be left behind – identify the gaps in your thinking and develop new procurement and supply chain competencies and abilities in an era of digital disruption and technology Be at the forefront of your profession – learn from award winning domestic and international speakers In a function where people are key – learn how to create a remarkable team by identifying, developing, mentoring and retaining your best people Grow your networks – be part of a community who will lift you up, point you in the right direction, enable, empower and inspire you Ensure procurement and supply chain has you on the right path – either as a means to rise through the ranks or to understand how it prepares you for your next step Engage with potential solution providers in a meaningful way
KEY THEMES INCLUDE: Procurement policy and governance in 2020 Maintaining healthy stakeholder partnerships Lean Agile Procurement E-procurement and digitalisation Improving business ethics and implementing sustainability Leadership, mentorship, retaining and growing talent
WHO SHOULD ATTEND? Women in Procurement & Supply Chain is for senior and emerging procurement and supply chain executives from across industry sectors including: General Managers & Heads of Procurement Heads of Risk Management Heads of Supply Chain Contract Managers Purchasing Managers Supply Chain & Logistics Managers Vendor Managers
Heads of Corporate & Social Responsibility Procurement Managers Supply Chain Managers Category Managers Sourcing Managers Commercial & Business Development Managers
24-26 March 2020 | Sydney | Australia LEADING THE FUTURE OF PROCUREMENT AND SUPPLY CHAIN THROUGH CONTENT, COMMUNITY AND EMPOWERMENT Use VIP code ‘SCD10’ to qualify for 10% off the registration fee!
The only event in Australia dedicated to advancing women in procurement and supply chain while addressing specific industry issues
Speakers include:
Saija Kuusisto-Lancaster Chief Procurement Officer Sandvik Mining and Rock Technology
Coretta Bessi Chief Procurement Officer Westpac
Sharyn County Head of Procurement Jemena
Karin Ragel Head of Supply Chain Risk Lendlease
Chontelle Kelly Procurement Specialist Nestlé
Naomi Lloyd Director Procurement and External Manufacturing Partnerships APAC Campbell Arnott’s
James Bartle Founding Chief Executive Officer Outland Denim
Sharon Morris General Manager for Australia and New Zealand CIPS Australasia
Laura Berry Chief Executive Officer Supply Nation
Anna Lindsay National Supply Chain Manager Ruralco Holdings
Marjolein Dijkshoorn Head of Procurement QBE
Angela Van Eekelen Global Policy and Compliance Manager - Procurement ANZ
Gwen Inglis Chief Procurement Officer Veolia Australia & New Zealand
Taylor Pearce Procurement Specialist MLC Life Insurance
Jennifer Jarrard Director, Corporate Member Services IACCM
“A very welcome celebration of fabulous women, innovation and practical procurement approaches, in a respectful, inclusive & engaging forum - what’s not to love?” 2019 WIPSC attendee REGISTER TODAY! T +61 (0)2 9977 0565 E info@questevents.com.au Partners:
www.womeninprocurement.com.au Organised by:
PEOPLE
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ENHANCING ITS HUMAN WORKFORCE WITH ROBOTICS AND RPA Following a visit to DHL’s innovation center in Troisdorf, Germany, Business Chief takes a look at how DHL is using robotics to enhance its workforce WRITTEN BY
JANUARY 2020
GEORGIA WIL SON
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a nz .busi ne ssc h ief. com
PEOPLE
W
hen it comes to DHL’s logistics operations, Oscar de Bok, CEO of DHL Supply Chain, highlights the
need for flexible solutions as supply chains become increasingly complex. De Bok says
that it is imperative that a large global company such as DHL has a strategy that utilises digitalisation and collaborative robotics to enhance value and ensure its workforce is unified and connected. “The future is exciting. The future is about innovation and making sure we continuously improve,” says de Bok. 50
DHL has recently come to the end of its 2020 strategy and is now driving towards 2025, focusing on ‘delivering excellence in a digital world’. Between now and 2025, the company plans to invest US$2.2bn into digitalisation and robotics.
ROBOTICS AND RPA INNOVATIONS AT DHL “Digital culture is something we constantly enforce within DHL Supply Chain,” says Markus Voss, CIO and COO of DHL Supply Chain. He emphasises that the company has made great efforts to ensure its employees grow alongside its innovations, fostering a culture of working collaboratively with robotics and robotic process automation (RPA) as opposed to being replaced by it. “To date, JANUARY 2020
1969
Year founded
HQ
Bonn Germany
360,000+ Number of employees
51
I have not seen a single site where we have introduced technology and had job losses. In fact, it is quite the contrary, workers are usually more satisfied and we attract more people,” says Voss.
CLEANING ROBOTS – NEO “Don’t start with the most complicated,” says Markus Kückelhaus, VP of Innovation and Trend Research at DHL. “Start with something easy. Cleaning robots are not the most complex solution, but a good one that we can roll a nz .busi ne ssc h ief. com
PEOPLE
out today. Statistics show that the
‘FOLLOW ME’ ROBOTS
most used robotic solution is cleaning
“A simple pluck and play solution,”
robots for private homes, so why don’t
notes Kückelhaus. This robotic solu-
we industrialise it?”
tion, designed by DHL’s partner
DHL has currently deployed its Neo cleaning robots — developed by
ley design, following an associate to
Avidbots - to multiple standard ware-
help transport items across long dis-
houses around the world where the
tances. “Once full, you can simply
environment is right for them.
press a button and it will automati-
“Typically, in a warehouse a person
52
Effidence, automates the simple trol-
cally go to the unloading area,
is driving through to clean it overnight
detecting any obstacles on its way,
and it is a tedious job. We see this as
while another one is sent to replace
something a person doesn’t need
it,” explains Kückelhaus. However,
to do, we can use cleaning robots
Kückelhaus does note that the disad-
instead,” says Kückelhaus.
vantage of these robots is that they
JANUARY 2020
CLICK TO WATCH : ‘DHL SUPPLY CHAIN ROBOTIC PROCESS AUTOMATION RPA’ 53
“ THE FUTURE IS EXCITING, THE FUTURE IS ABOUT INNOVATION AND MAKING SURE WE CONTINUOUSLY IMPROVE” — Oscar de Bok CEO, DHL Supply Chain
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PEOPLE
cannot integrate with a company’s warehouse management system.
AISLE PICKING ROBOTS – LOCUS Similar to the ‘follow me’ robot, the aisle picking robot, developed by Locus Robotics, helps associates to pick items. However, this one differs from the ‘follow me’ robot due to its ability to integrate with warehouse management systems. This robot moves independently around the warehouse to an aisle where items need to be picked and waits for an associate. Once the item has been 54
picked and scanned, it takes off by itself again to cover the long distances instead of the associate. “Where we have deployed these robots we have seen an increase in efficiency of 200%,” says Kückelhaus.
ROBOTIC ARMS – SAWYER Designed as a collaborative tool to reduce strainful and repetitive tasks, Sawyer is a pluck and play robotic arm that doesn’t need to be caged thanks to its pressure sensors which detect when someone comes close to it. “This is a safe robot certified to work jointly with people,” says Kückelhaus. In addition, it is on wheels so it can be easily JANUARY 2020
“ WE HAVE TAKEN A LOT OF EFFORT TO TEACH AND DEVELOP PEOPLE ALONGSIDE OUR INNOVATIONS” — Markus Voss CIO & COO, DHL Supply Chain
moved to wherever it is needed. Currently, 19 of DHL’s sites in the UK are using co-packing.
THE BENEFITS AND CHALLENGES OF ROBOTICS AND RPA While DHL sees many benefits from robotics and RPA, such as standardisation of its processes, increased productivity, increased efficiency and better use of employee talent by reducing time spent on repetitive tasks, it doesn’t shy away from the fact that innovation comes with challenges too. When it comes to robotics, particularly picking robots, Kückelhaus explains that item complexity and speed is still a negative factor for robots that can pick items. When conducting tests, the robots could only pick limited shapes and sizes, in addition to picking 73% less per hour than human associates. “Technology combined with people is the best combination,” he notes. Other challenges include change management. “We have taken a lot of effort to teach and develop people alongside our innovations,” says Voss. “It’s all about talking. We have many forums where there is an open, constructive and positive dialogue around a nz .busi ne ssc h ief. com
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PEOPLE
“ TECHNOLOGY COMBINED WITH PEOPLE IS THE BEST COMBINATION” — Markus Kückelhaus VP Innovation & Trend Research DHL Supply Chain
56
the topic of technology. In addition, we are doing many things in terms of educating people, our certified programme drives the understanding of the necessity of innovation and the opportunities that it brings. Finally, our startup lab is a great vehicle for getting engagement from our workforce. Through the lab, employees can pitch ideas to the board to be funded and developed in a safe environment to drive it to the next phase,” he adds. Low labour costs in developing markets is another challenge that Voss JANUARY 2020
highlights. “If you have developing markets with relatively low labour costs, then introducing highly sophisticated robotics is going to come with a long payback. We have had these challenges in Latin America and parts of Asia where high impact robotic solutions are not yet ready to be rolled out. Sometimes, we still have to deploy these solutions due to scarcity of labour being so heavy that we have to implement it regardless of a longer payback.” However, Voss does note that, with the cost of robotics reducing with every new generation, regional deployment will soon no longer be a challenge. Finally, Voss highlights the importance of integration. “Although this is not a problem, it has to be acknowledged that just putting in a robot is not going to be the optimal fix for a particular problem,” he explains that the connection between robotics and a company’s warehouse management system needs to be fully integrated, something which he is currently putting a lot of work into to have an adaptable and standardised interface.
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S U S TA I N A B I L I T Y
58
SAVING THE ENVIRONMENT ONE ROBOT DELIVERY AT A TIME Henry Harris-Burland, VP Marketing, Starship Technologies, explores how last mile deliveries are greener than ever, and why customers should not feel guilty for ordering deliveries as opposed to driving to stores WRITTEN BY
HENRY HARRIS-BURLAND
JANUARY 2020
59
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S U S TA I N A B I L I T Y
L
ast mile delivery is one of the most costly segments of the supply chain. McKinsey estimates that the final leg of a delivery comprises up to 50% of
a product’s total transportation cost. However, the real and lasting impact that last mile delivery can have is much closer to home, quite literally. A successful first-time final mile home delivery creates approximately 181g of CO2 per km per item, way above the EU
target set in 2017 for vans not to emit more 60
than 175mg per km. In recent years, the only real alternatives to carbon-free bicycle deliveries have been cars, vans and motorbikes; all serial pollutants of CO2 into the atmosphere and all the more costly too. Consider the emissions involved in delivering take-away food, for example. Customers consistently demand short waiting times, with more than a quarter of consumers being willing to pay more for quicker delivery. This demand means that food vendors are deploying bigger fleets of delivery drivers to complete return car journeys to individual homes. They are forced to expand their fleet because it is difficult to integrate multiple deliveries into one journey, as vendors often
JANUARY 2020
61
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S U S TA I N A B I L I T Y
“ Electrically-powered autonomous delivery robots are on the rise” — Henry Harris-Burland, VP Marketing, Starship Technologies
have large catchment areas to maximise potential orders and, obviously, food gets colder the longer the journey. In cases where deliveries can be effectively integrated, e.g. a postal service, there is a high probability that numerous deliveries won’t be completed, as some recipients may be unavailable at the time of attempted delivery. In turn, this leads to more car journeys to the depot where undelivered packages are kept, multiplying the carbon emissions emitted into the atmosphere even further.
62
It is also important to consider the amount of unnecessary car journeys that the average consumer will take just to buy one or two items. Almost everyone has driven to the nearby shop to buy some milk instead of walking,
JANUARY 2020
CLICK TO WATCH : ‘STARSHIP DELIVERY ROBOTS IN MILTON KEYNES’ 63 especially in adverse weather condi-
consumerism goes mainstream”, have
tions. However the issue is that modern
suggested that autonomous robot deliver
cars emit twice as much carbon in the
is both an economical and sustainable
first five minutes of a journey and more
alternative, which has the power to add
than half of UK car journeys are less
convenience to customers who want
than two miles.
their everyday items delivered without
Given that a 25km round-trip by car emits 5,188g of CO2, or the equivalent
having to drive to the store, whilst decreasing their own carbon footprints.
of 16 re-delivery attempts by van, the last mile delivery industry is an unsustainable
THE SIDEWALK SOLUTION
form of delivery for the future.
The UK government has realised the
Several high-profile commentators
environmental crisis that we’re facing.
such as Pam Danziger of market
Its Climate Change Emergency
research firm Canvas, who predicted that
declaration in May 2019 has prompted
2019 was to be the “year that responsible
demands for more rigorous energy a nz .busi ne ssc h ief. com
S U S TA I N A B I L I T Y
targets, one of which is to achieve net-zero greenhouse gas emissions by 2050. The elimination of unnecessary fossil fuel consumption in food delivery could be a key way to achieve this target. In this age of technological innovation and advancements in robotic capabilities, electrically-powered autonomous delivery robots are on the rise. They
“ The UK government has realised the environmental crisis 64 that we’re facing”
are already providing a carbon-free alternative for deliveries in numerous cities across the globe and helping to dramatically cut carbon emissions. When they know they’re contributing towards the sustainable economy, customers should not feel lazy for
— Henry Harris-Burland, VP Marketing, Starship Technologies
ordering a delivery instead of driving to the shops, they should feel good
E X ECU T I VE P RO FI LE
Henry Harris-Burland Henry Harris-Burland leads marketing and communications at Starship Technologies and believes that autonomous delivery robots will make lives easier for millions of people across the globe. Henry has previously worked in the communications team at Rolls-Royce launching new innovative products in multiple regions. He is also renowned as a subject matter expert to UK government consultations at City Hall and Westminster, advising on autonomous driving, drones and delivery robots.
JANUARY 2020
about it! Driving a two-tonne car is
delivery robots have been in the fight
an incredibly inefficient method just
against climate change. Countries
to pick up a bag of groceries. On
across the globe are eager to meet
the contrary, incurring a small fee to
ambitious targets when it comes to
have your items delivered by a small
curbing CO2 emissions, and going
environmentally-friendly robot in as
into the 2020s we can expect more
little as 15 minutes is a small price to
and more industries take the initiative
pay so that our planet can
and adopt autonomous delivery to
be sustained for future
help in this effort.
generations. People
As the world of delivery continues
should feel comfortable in
to become more innovative and
the knowledge that their items
flexible, it will save thousands and
will get from A to B in one piece,
even millions of CO2 tonnes in the
too. For example, Starship
years to come. The 2020s will be an
Technologies’ robots use
exciting decade as we see more and
machine learning, sensor fusion
more consumers utilise environmen-
and computer vision to navigate their way around sidewalks all over the world. They are fitted
tally-friendly solutions like autonomous robots — the future could not be greener!
with radars, cameras and ultrasonic sensors to ensure that items are kept safe until they are unlocked by the customer, which is managed through an app interface. Over the next few years, we’ll see just how effective a nz .busi ne ssc h ief. com
65
CITY FOCUS | PERTH
PER City Focus
66
Business Chief takes a look at the burgeoning tourism industry serving to supplement the wealth Perth has derived from Western Australia’s resources WRITTEN BY
JANUARY 2020
WILLIAM SMITH
RTH a nz .busi ne ssc h ief. com
67
CITY FOCUS | PERTH
P
erth first achieved city status in 1856, and rose precipitously thanks to the late 19th century Westen Australian gold rushes.
With a population of 2.06mn people in
2018, according to the Australian Bureau of Statistics, the capital of Western Australia is the country’s fourth largest city. Dominant in the state, it represents 79.4% of Western Australia’s
total population. According to SGS Economic & Planning, the city’s GDP was AU$150.3bn in 2017-18, comprising 8.3% of national GDP and 68
58.4% of Western Australia’s. While that success has been unequivocally built on the back of the mining and resources industries, modern Perth has more to offer, including a burgeoning tourism industry built off of the city’s isolation from Australia’s other major cities. Indeed, the nearest ‘big city’ is Adelaide, some 1,300 miles away. In a country as large as Australia, travelling domestically can be just as exotic as a foreign trip. Consequently, Perth Airport serves as a gateway to Western Australia for both citizens and those from foreign countries. This is reflected in the airport’s make up, with two international and four domestic terminals. In FY18, the airport said that a total of 13.7mn passengers passed through the airport, making it Australia’s fourth JANUARY 2020
“ The nearest ‘big city’ is Adelaide, some 1,300 miles away” 69
Photo © www.austal.com
busiest. Of those, 9.3mn were domestic. The airport itself is also a major employer, providing 17,000 jobs to the local area, with the airport estimating that it contributed AU$3.66bn to the Western Australian economy.
AUSTAL Headquartered in the Perth suburb of Henderson, international ship building firm Austal builds vessels for both commercial and defence purposes. Over its 30 year history, the company a nz .busi ne ssc h ief. com
CITY FOCUS | PERTH
“ Perth Airport serves as a gateway to Western Australia”
says it has built over 300 ships, with its Perth operation specifically building defence vessels such as patrol boats and transport ships. Austal also has side businesses in maintenance and ship control systems including its MARINELINK series of control and management systems.
iiNET Previously one of Australia’s ‘Big Four’ internet service providers (ISPs) alongside Telstra, Optus and TPG Capital, iiNet was acquired by the 70
JANUARY 2020
latter company in 2015. Despite this,
formed from the amalgamation of
the company still operates under its
a number of different media proper-
own name as a subsidiary. Employing
ties, all of which it owns. Beginning
over 2,500 people, iiNet is headquar-
with The West Australian tabloid,
tered in the suburb of Subiaco. Its
a fixture since 1833, the group also
offerings range from fibre to mobile
owns magazine publisher Pacific
networks, and it is a provider of
Magazines. The jewel in the crown
access to the National Broadband
is its namesake Seven Network,
Network – the government run inter-
one of Australia’s principal tele-
net infrastructure project.
vision channels, and offerer of such programmes as the soap opera
SEVEN WEST MEDIA
Home and Away and game show
One of Australia’s largest media
Big Brother, as well as providing
companies, Seven West Media was
coverage of the Olympics. 71
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CITY FOCUS | PERTH
2.06mn
yearly increase in domestic passengers,
Population (2018)
it’s worth reflecting on what is driving
With Perth Airport reporting a 1.2%
visitors to the state. One of the most
1829
Year founded
idiosyncratic attractions is Rottnest Island (from the Dutch for ‘rat’s nest’), accessible by ferry from the city. Despite its unattractive name, the island is a haven for nature, particularly
$150.3bn GDP in Australian dollars (2017–18)
the rare quokka marsupial. Owing to its lack of fear for humans, the quokka has become an important piece of publicity for the city’s tourism industry, and sparking a trend for so called quokka selfies. Rottnest also boasts a number
72
of pristine beaches, unspoilt by the
“ The quokka has become an important piece of publicity for the city’s tourism industry” JANUARY 2020
CLICK TO WATCH : ‘EXPEDIA – PERTH CITY VIDEO GUIDE’ 73 pollution of cars, which aren’t allowed
increasing the proportion of women
on the island. These factors combined
in leadership roles inside the respective
to draw in 769,000 visitors to the island
industries. Despite its geographical
in 2018, a year-on-year increase of 15%.
isolation, Perth has successfully
Upcoming events in the city include
capitalised upon its position as
the 4th International Conference on
a gateway to Western Australia. While
Energy and Environmental Science
the state’s mineral wealth remains
(ICEES), taking place between 8 and
an important part of the mix, the city
10 January and focusing on such top-
has also spread its wings to incorpo-
ics as renewables, biofuels and water
rate other, service-driven industries,
treatment. Also occurring, from 28
future-proofing its position as Western
to 31 January at the Pan Pacific Perth
Australia’s prime destination.
hotel, is the 4th Women in Construction, Infrastructure & Engineering Leadership Summit, dedicated to a nz .busi ne ssc h ief. com
T O P 10
74
JANUARY 2020
Digital disruptors in Asia
75
Business Chief examines 10 of the most innovative companies using technology to shake up their respective industries across Asia WRITTEN BY
WILLIAM SMITH
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T O P 10
CEO
MIN-LIANG TAN
2005 YEAR FOUNDED
HQ
SINGAPORE & SAN FRANCISCO
76
10
Razer GAMING & ESPORT
Founded in 2005, gaming hardware and esports company Razer has ridden the wave of money introduced into the industry to become a tech unicorn. Goldman Sachs expects the esports market to be worth $3bn by 2022 (up from $869mn in 2018), and Razer is a big name in the scene thanks to its gaming-oriented peripherals such as mice and keyboards. In recent years, it has branched out into other forms of hardware, including phones and laptops, targeted towards its key gaming demographic.
JANUARY 2020
CEO
YIMING ZHANG
2012 YEAR FOUNDED
HQ BEIJING CHINA
77
09
Megvii TECHNOLOGY
Less publicly prominent than some of the companies on this list, Chinese AI company Megvii is nevertheless a cause of significant disruption thanks to its facial recognition technology. In August, the company filed for an initial public offering on the Hong Kong stock exchange. The company’s services have been employed by the likes of Alibaba, Ant Financial and the Chinese government. Of particular note is the company’s Face++ product, an open platform for image recognition of faces and bodies.
a nz .busi ne ssc h ief. com
From Inspiration
to Innovation
T O P 10
CEO
BHAVISH AGGARWAL
2011 YEAR FOUNDED
HQ
BENGALURU INDIA
79
08
Ola TRANSPORTATION
Ola was founded in Mumbai, India in 2011. Like other ride-hailing apps, it has branched out into the food delivery market, acquiring the Indian business of Foodpanda in 2017. In June, the company’s electric mobility business received $250mn of funding from Japanese conglomerate and serial investor SoftBank. The past year has seen the company’s ride-hailing business expand outside of India, opening offices in Australia, New Zealand and the UK.
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T O P 10
CEO
PIERRE POIGNANT
2012 YEAR FOUNDED
HQ
SINGAPORE
80
07
Lazada ECOMMERCE
Lazada is an interesting proposition due to its history and meteoric rise. Founded in 2012 by German startup studio Rocket Internet, the company sought to exploit the at that time underdeveloped ecommerce market in Southeast Asia. It’s an approach that drew dividends, with significant investment from Singapore’s Temasek Holdings in 2014 preceding the acquisition of a majority stake by Chinese giant Alibaba Group in 2016.
JANUARY 2020
CEO HUAZHI HU
2014 YEAR FOUNDED
HQ
GUANGZHOU CHINA
81
06
EHang SCIENCE & TECHNOLOGY
Chinese drone manufacturer EHang is a frontrunner in the urban air mobility space, a key future trend that the world’s largest companies, like Airbus, are investigating. EHang’s autonomous aerial vehicles come in different configurations, such as the passenger-grade EHang 216 which can carry 220kg and fly at over 80mph, or the cargo carrying EHang Falcon. Passenger carrying demonstrations have already taken place in cities across China, including EHang’s home city of Guangzhou.
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T O P 10
CEO
KEVIN ALUWI & ANDRE SOELISTYO
2010 YEAR FOUNDED
HQ
JAKARTA INDONESIA 83
05
Gojek TRANSPORTATION
According to Indonesian ride-hailing firm Gojek, since its launch in 2015 its app has been downloaded by over 155mn users in Southeast Asia. From the time of its founding, Gojek has expanded its remit into digital payments and the provision of many other amenities as part of a so-called ‘super app’. To these ends, the company partners with over 2mn drivers and 500,000 merchants in the region.
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T O P 10
CEO
ANTHONY TAN
2012 YEAR FOUNDED
HQ
SINGAPORE
84
04
Grab TRANSPORTATION
Originally a ride-hailing firm, Singapore’s Grab is rapidly introducing new services. Aside from its primary ride-hailing business, Grab, like its rival Gojek, has expanded into digital payments as well as food and parcel delivery, to name just a few of the services on offer. Set up as a regional spin on Uber’s business model in 2012, in 2018 Grab acquired its inspiration’s operations in Southeast Asia.
JANUARY 2020
CEO CHENG WEI
2012 YEAR FOUNDED
HQ BEIJING CHINA
85
03
DiDi TRANSPORTATION
Transportation company DiDi was founded by an alumnus of Chinese ecommerce giant Alibaba, Cheng Wei. Originally backed by Tencent, in 2015 it merged with its biggest Alibaba backed rival, Kuaidi. Such was its dominance of the Chinese market that it bought out Uber’s Chinese business. Expanding beyond its original ride-hailing remit, the company has branched out into areas such as robotaxis, where it is planning to test its fleet of autonomous vehicles on the streets of Shanghai imminently.
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T O P 10
02
0000 Paytm FINANCIAL
Financial services company Paytm operates across multiple sectors, incorporating bill payment, travel booking and mobile recharges. Catering to the Indian market, its payment system allows 86
merchants to offer customers the simple payment option of scanning a QR code with their phones, moving money from sources such as bank accounts, prepaid cards and digital credit. A recent development has seen the process streamlined, with the ability for payments up to a certain amount to be made without having to use a one time passcode sent via text.
JANUARY 2020
YEAR FOUNDED
$0.0bn REVENUE IN XXXXXXXXX DOLLARS
0,000 NUMBER OF EMPLOYEES
CEO
VIJAY SHEKHAR SHARMA
2010 YEAR FOUNDED
HQ NOIDA INDIA
87
CLICK TO WATCH : ‘AKKAD BAKKAD BAMBE BO...’
a nz .busi ne ssc h ief. com
T O P 10
CEO
YIMING ZHANG
2012 YEAR FOUNDED
HQ BEIJING CHINA
88
CLICK TO WATCH: ‘AT TIKTOK, IT’S YOUR TURN TO MAKE A CHANGE’
JANUARY 2020
0000 YEAR FOUNDED
$0.0bn REVENUE IN XXXXXXXXX DOLLARS
0,000 NUMBER OF EMPLOYEES
01
ByteDance SOCIAL MEDIA
Anyone under a certain age will be familiar with ByteDance, albeit indirectly, thanks to its TikTok social media app. Born out of its Douyin product for the Chinese market, TikTok allows users to create short looping videos, with the format being ripe for producing viral hits. The app was combined with video lip-syncing app Musical.ly after an acquisition in 2017, and is in many ways a successor to the now defunct Twitter-owned Vine, which pioneered the format.
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89
90
WRITTEN BY
WILLIAM SMITH PRODUCED BY
STUART IRVING
JANUARY 2020
Digitally transforming the customer experience at T2 Tea
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91
T2 TEA
T2 Tea’s Global Head of Technology details the digital initiatives underway at the tea retailer pioneering new methods of customer engagement
T2
Tea is one of the world’s premium tea companies, operating in tea retail, wholesale and tea wares. Started in Melbourne
in 1995, in 2013 the company was purchased by 92
consumer goods giant Unilever. T2 nevertheless retains its Melburnian identity, while expanding in international markets, particularly the UK. Rohan Penman is the company’s Global Head of Technology, overseeing a systematic digital transformation as part of his role. “Anything that involves IT, I am accountable for,” he states. “That’s all the way from retail through to ensuring business to business connection capability, as well as having a website that is running efficiently, responsively and is always available.” Penman admits that there “had been a number of years where significant spend hadn’t occurred”. Consequently, since joining, Penman has overseen a comprehensive update of T2’s systems. “There was a lot of change, to say the least,” he notes. “To start with, the warehouse JANUARY 2020
93
management system had become ‘end of life’. So HighJump Advantage was installed to replace what was effectively an obsolete warehousing product.” Another system that received some TLC was point of sales (POS). “Our point of sale was end of life and very hard to support in the Asia Pacific region. So that was replaced with Triquestra’s Infinity product. Then we needed a new way of approaching communications. Luckily, we were using Microsoft 365, a nz .busi ne ssc h ief. com
T2 TEA
so we were able to take advantage of the upgrade path for SharePoint,
“We’re giving back and showing a moral commitment to the planet”
instigate SharePoint Modern and rebuild our intranet. With that, we were also able to install Microsoft Teams and put in a fairly basic software VoIP system for anyone that needed a phone system.” Systems change reached a new level of urgency owing to the recent headquarters move, which was both an opportunity and a chal-
94
Rohan Penman, Global Head of Technology, T2 Tea
JANUARY 2020
lenge. “From the get-go of starting at T2, we were aware that a move
CLICK TO WATCH : ‘T2 EVERYDAY – HOW TO MAKE MATCHA 3 WAYS’ 95 was required,” says Penman. That
such as Freshworks. “We started off
effectively gave me 18 months to
using Freshworks servers so that we
begin planning. We had priorities in
had an ITIL framework for incidents
the business, such as the warehouse
and problems,” says Penman. “The
management system and the new
Freshworks service desk was so
POS system. It allowed us to do risk
good that we then moved to using
management and an assessment of
the project management product
what infrastructure we were running
called Freshrelease, which is effec-
to make sure that effectively any-
tively a Kanban solution that allows
thing on premise could be turned off
you to run agile scrum methodol-
for quite a long time and the business
ogy.” Private infrastructure was also
wouldn’t notice it.”
moved to the Rackspace Intensive
Following that assessment, ser-
hosting environment. “Rackspace
vices which had to remain available
Intensive allows us to have a gold
were migrated to cloud offerings
standard of support, with business a nz .busi ne ssc h ief. com
T2 TEA
96
JANUARY 2020
trading 24/7, which we require as global retailers. Rackspace Intensive hosting offers that high level of management and service for all the applications that are hosted on their physical hardware.” The systems the company is implementing are ultimately a component of providing the best possible level of ecommerce experience. One such example is the capabilities of the newly introduced POS. “Infinity POS is actively updated,” says Penman. “It’s a platform you can happily build on, and it’s a very big enabler for us from a retail and digital point of view. It allows a unified strategy integrating the digital world and the physical store. It’s also let us engage with alternative payment methods. We’ve started to do a lot of work with providers like Afterpay and Clearpay, which
a nz .busi ne ssc h ief. com
97
Customer-for-Life Software
Enabling T2 Tea to deliver faster IT service with context! Free 21 day trial on products
150,000+ Customers globally love Freshworks SaaS products: IT Service Desk | Customer Support | Conversion Optimisation CRM | Chat | Softphone | AI & Bots
www.freshworks.com | team-anz@freshworks.com
has definitely started to make a dent in the UK and the US.” The advanced approach to ecommerce opens up new avenues and new levels of customer interaction, as Penman explains. “To give customers the best experience, a modern retailer needs to have con-
“To give customers the best experience, a modern retailer needs to have consistent offerings and messaging digitally and in store”
sistent offerings and messaging, both digitally and in store. That’s the crux of the approach. That includes people being able to interact in store and online and have their details and transactions synchronised so that
Rohan Penman, Global Head of Technology, T2 Tea
a nz .busi ne ssc h ief. com
99
T2 TEA
1995
Year founded
$1.8mn Revenue in US dollars
100% Sustainably sourced tea
100
2013
Acquired by Unilever
JANUARY 2020
101
a nz .busi ne ssc h ief. com
T2 TEA
102
“There was a lot of change, to say the least”
they have a history of what they’ve done, so they can access that however and whenever they wish. It also allows the customer to shop where, how and when they want. “Ecommerce also allows us to present the premium product that is T2 as a lifestyle. Looking on the website, customers can see that T2 is a brand
Rohan Penman, Global Head of Technology, T2 Tea JANUARY 2020
that is trying to wear its heart on its sleeve, do good and give back.”
103
That sense of giving back is
wastage is a huge focus for the busi-
reflected in sustainability initiatives
ness, and has been for a couple of
undertaken by T2 and its parent,
years. We’re giving back and showing
Unilever. While Unilever has pledged
a moral commitment to the planet.”
to halve its use of new plastic by
As T2 balances internal change with
2025, T2 itself is focused on such
new methods of external engage-
initiatives as removing polyplastics
ment, this ethos remains at the fore.
from its packaging. “There’s a lot of people in the business that are passionate about sustainability,” says Penman. “Packaging and reduced a nz .busi ne ssc h ief. com
104
DELIVERING QUALITY OF LIFE SERVICES SUSTAINABLY WRITTEN BY
DAN BRIGHTMORE PRODUCED BY
RYAN HALL
JANUARY 2020
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SODEXO
HOW SODEXO AUSTRALIA IS DELIVERING QUALITY OF LIFE SERVICES WHILE MEETING SUSTAINABILITY GOALS THAT ENRICH LIVES AND REDUCE WASTE
S
odexo has been operating in Australia, delivering quality of life services for over three decades, employing 5,000 people
across 300 different sites nationally. Sodexo offer around 100 different integrated services covering 106
asset management, building maintenance, facilities management, catering and hospitality, accommodation management, transport security, concierge services, wellness programmes and more. The one thing they all have in common is that they are delivered to improve the quality of life of clients and consumers across a range of industry segments from the corporate sector, healthcare and seniors, education, government and justice, to energy and mining clients. Mark Chalmers is CFO and Country President for Sodexo in Australia. “I’m responsible for driving corporate governance and strategic responsibility for our operations across Australia,” he confirms. “In the process, I work with the country leadership team to ensure we’re correctly engaged JANUARY 2020
107
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SODEXO
108 and aligned to drive growth retention
the community where we all thrive,
and development, while constantly
and the environment within which
improving profitability and attracting,
we operate.” Intrinsically linked to this
developing, and retaining the right tal-
initiative is Sodexo Australia’s three-
ent to sustain that growth.”
pronged focus on hunger, gender
Sodexo’s corporate and social responsibility journey is being shaped
and waste. Introducing some of the initiatives
by its Better Tomorrow 2025 roadmap.
Sodexo is implementing in Australia
“It’s a global roadmap for Sodexo
to elevate its culture and improve the
which drives our corporate social
quality of life for its workers, Chalmers
responsibility initiatives,” explains
says: “We label one of our most impor-
Chalmers. “Sodexo’s Better Tomorrow
tant initiatives ‘I Hear You’. It was
2025 aligns with the UN’s sustainable
launched five years ago to increase
development goals and focuses on
awareness and understanding around
three levels of impact: the individual,
the mental health of our people and
JANUARY 2020
CLICK TO WATCH : ‘BETTER TOMORROW 2025’ 109 trying to elevate approaches to men-
Sodexo’s commitment to Australia’s
tal health to match our approach to
Reconciliation Action Plan (RAP) is
physical health and safety. We’re try-
having a positive impact on Indigenous
ing to provide a healthy workplace
engagement, enhancing supplier
environment where people will develop
diversity and supporting new ways of
and have a positive sense of them-
working together, believes Chalmers.
selves while feeling supported with
“We began down this road back in
any mental health issues.” He notes
2009,” he reveals. “Since then, we’ve
the feedback received is among the
achieved our second Elevate RAP —
most positive for any of the pro-
the highest status for organisations
grammes Sodexo runs. “People who
that have been acting and delivering
are raising issues are supporting
in this area. Among the benefits, in the
each other. It’s good to know we’re
past 10 years, we’ve employed nearly
not falling on deaf ears and people
1,100 Aboriginal and Torres Strait
are becoming involved.”
Islander people. Within that, our a nz .busi ne ssc h ief. com
SODEXO
110
Aboriginal and Torres Strait Islander
establishment of businesses or refin-
employees have earned more than
ing businesses process to be more
$34mn in wages that directly impacts
commercially competitive.”
the community. At the same time, it’s
Chalmers explains many of these
not just about employing Indigenous
Indigenous businesses have gone
people, it’s about empowerment —
on to become major suppliers of their
supporting and helping grow
products in the open market. “One
Indigenous businesses. In our last
example is Yaru Water,” he says.
financial year, we’ve spent more than
“It is a provider of bottled water from
$24mn with Indigenous owned busi-
fresh springs on Indigenous-owned
nesses. We operate on the basis
land, that supplies to us across our
that we’re not just treating this as
network. Now its product sits on the
a transactional relationship, we
supermarket shelf next to Coca-Cola
are mentoring and guiding the
and Pepsi.”
JANUARY 2020
This year, Sodexo announced a
Clontarf Foundation CEO Gerard
national partnership with the Clontarf
Neesham. “We look forward to this
Foundation, which helps improve edu-
programme, with Sodexo’s support,
cation, self-esteem, and employment
continuing to grow and help more
prospects for young Aboriginal and
and more boys contribute meaningfully
Torres Strait Islander students. “We
to society.”
rely on the support and national part-
Helping Sodexo amplify its sus-
nership of organisations like Sodexo
tainability efforts, Australia’s leading
to grow and expand our national foot-
food reclaim company YUME is an
print; already the programme helps
agency set up to identify quality food
more than 8,000 boys in 128 schools
that would otherwise be headed to
across Western Australia, the Northern
landfill. This might be products that
Territory, South Australia, Victoria, New
were incorrectly labelled or that didn’t
South Wales and Queensland,” says
meet a required delivery time to a
E XE CU T I VE PRO FI LE
Mark Chalmers Chalmers is a proven CFO with extensive experience in large national and multinational organisations including GlaxoSmithKline. He has a track record of delivering results and driving organisational change initiatives. “I’ve gained 30-yearsexperience in the manufacturing, FMCG and pharmaceutical environments,” confirms Chalmers. Through functional dedication and commercial application, he leads the formation and integration of business at Sodexo Australia. A f lexible communicator, his facilitation skills support membership with contributions to senior management teams at local and international level.
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111
SODEXO
112
“ Sodexo’s Better Tomorrow 2025 aligns with the UN’s sustainable development goals and focuses on three levels of impact: the individual, the community where we all thrive, and the environment within which we operate” — Mark Chalmers, CFO & Country President, Sodexo Australia
JANUARY 2020
113
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“We’ve received our second Elevate RAP… in the past 10 years, we’ve employed nearly 1,100 Aboriginal and Torres Strait Islander people. Within that, we’ve provided $34mn worth of employment. At the same time, it’s not just about employing Indigenous people, but it’s about empowerment — supporting and helping grow indigenous businesses” — Mark Chalmers, CFO & Country President, Sodexo Australia
tonnes of food going to waste every year,” says Yume Founder & CEO, Katy Barfield. “Yume partners with businesses to do things differently and say no to food waste through direct
supermarket chain and were rejected.
action. We are incredibly grateful to
“We work with YUME and identify
Sodexo for being an early adopter
these quantities of products and,
of our new technology across their
where possible, look to acquire from
network and for expanding on their
YUME rather than our other sources
sustainable procurement efforts.”
and use that product in our supply
Allied to its support for Yume, Sodexo
chain.” Last year, Sodexo purchased
is working with Foodbank Australia
87 tonnes of food from YUME, which
on events like their annual Servathon.
equates to around two and a half million
“We are incredibly grateful for the
litres of water that’s saved around 74
ongoing support Sodexo, and in
tons of CO2 emissions.
particular their employees, provide
“At Yume we are building a more
to Foodbank Australia. The funds
transparent and connected food
raised from the Servathon will enable
industry — one that stops 4.1 million
us to offer over 150,000 meals for a nz .busi ne ssc h ief. com
115
SODEXO
116
“Yume partners with businesses to do things differently and say no to food waste through direct action. We are incredibly grateful to Sodexo for being an early adopter of our new technology across their network and for expanding on their sustainable procurement effort” — Katy Barfield, Founder & CEO YUME
JANUARY 2020
COMPANY FACTS
Better Tomorrow 2025 Better Tomorrow 2025 consists of nine robust commitments designed to reinforce the culture of responsible behaviour throughout Sodexo’s business. Fully aligned with the UN’s Sustainable Development Goals, each commitment is underpinned by a measurable objective allowing to constantly monitor progress. Due to the nature of Sodexo’s activities, Better Tomorrow 2025 particularly addresses the Group’s important role in tackling three issues: Hunger Sodexo aims to contribute its expertise to eradicating world hunger, both through its own operations and through the charitable work and employee activism it supports. The Group provides advice and support for people at risk of malnutrition, redistributes surplus food, and funds community gardens to encourage food autonomy. Sodexo also supports Stop Hunger Worldwide, a non-profit organization and global movement to address hunger founded
20 years ago by Sodexo employees. Gender As the world’s 19th largest employer, Sodexo has a large-scale impact on gender equality and is already leading the gender-balance debate: 50% of Sodexo’s board and more than 30% of the Group’s senior executives are women. Sodexo also created the Sodexo Women’s International Forum for Talent (SWIFt), now known as SoTogether, a global advisory board dedicated to achieving equality at all levels of the company. Waste Sodexo is committed to continuing to reduce waste in its operations and through the services it delivers: In 2011, the Group created “WasteWatch powered by LeanPath,” a global food waste prevention programme that helps identify causes of waste and define plans to reduce it. Sodexo also shares its expertise and collaborates with other businesses and NGOs to reduce food waste. In 2015, it co- founded the International Food Waste Coalition. a nz .busi ne ssc h ief. com
117
SODEXO
118
JANUARY 2020
distribution to our charity network,” confirms the organisation’s CEO Brianna Casey. “This will help ensure children can start the day with a healthy breakfast, pensioners can enjoy a cup of tea with a friend and families can share a nutritious meal.” Technology underpins such initiatives at Sodexo maintains Chalmers. “We’re introducing a data-driven WasteWatch programme enabling our sites to capture food waste data and identify opportunities that reduce waste and drive the change there as to how we use it. We’re looking to implement that over the next 12 months both in Australia and across the world with Artificial Intelligence (AI) preventing around 50% of our food waste.” Sodexo Australia is also leveraging a nz .busi ne ssc h ief. com
119
SODEXO
120
technology to enhance its operations
to offer maintenance instructions. This
through Augmented Reality (AR) and IoT.
not only reduces costs and safety haz-
“Installing sensors that are able to capture
ards, but aids collaboration, saving time
data centrally allows us to develop pre-
and a whole lot of wastage.”
dictive analytics to help us understand
Sodexo’s efforts with technology
when assets are going to fail; from there,
were applauded in October when the
we can work on scheduled maintenance
company received the Tech for Good
in a more structured way,” he explains.
award at the 6th annual eCAC40
“AR glasses then allow our staff on site
Ceremony organised by Les Echos.
to connect with an external specialist
The award recognises how Sodexo’s
expert who needn’t visit a remote site
digital transformation is driving
JANUARY 2020
1982
Year founded
€22bn+
Consolidated revenue as of August 2019
5,000+ Number of employees
sustainable and responsible growth,
continue to improve our client offerings
especially when it comes to food
and grow our business in Australia by
waste. Earlier in 2019, the company
providing a broader range of quality
was also named Indigenous Employer
of life services while supporting corpo-
of the Year and is continuing to step
rate responsibilities and keeping our
up its efforts around inclusion & diver-
people safe.”
sity through its collaboration with e.motion 21 supporting young people with disabilities into the workforce. The goals for 2020 and beyond are clear, pledges Chalmers: “We’ll a nz .busi ne ssc h ief. com
121
COCA-COL 122
TRANSFORMI SUPPLY WRITTEN BY
WILLIAM SMITH
PRODUCED BY
CAROLINE WHITELY
JANUARY 2020
LA AMATIL 123
ING THE PNG Y CHAIN a nz .busi ne ssc h ief. com
C O C A - C O L A A M AT I L
SIMON ROBINSON, HEAD OF SUPPLY CHAIN, PNG, DETAILS THE TRANSFORMATION THAT HAS RETURNED COCA-COLA AMATIL TO GROWTH IN THE COUNTRY
O
ne of the world’s major Coca-Cola bottling companies, Coca-Cola Amatil (CCA) serves the Oceania region, incor-
porating Australia, New Zealand, Indonesia, Fiji, Papua New Guinea (PNG) and Samoa. Simon Robinson is Head of Supply Chain in PNG, operating across production, planning, logistics, quality, safety, environment, engineering and capital pro124
jects, and previously served as National Logistics Manager in Indonesia. It’s an experience Robinson brought to his current role, where, with support from the Indonesian team and local suppliers, he has transformed the Supply Chain and returned CCA PNG to double digit growth. CCA has been operating in PNG for 28 years with a Supply Chain network consisting of two plants, five production lines, six distribution centres, 40 products and over 800 customers. Despite strong consumer demand and high market share, volume growth stalled primarily due to an inability to supply. Internal process issues across manufacturing efficiency, inventory accuracy, planning and logistics were affecting growth and the supply chain had become a growth inhibitor.
JANUARY 2020
125
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C O C A - C O L A A M AT I L
126
To resolve these issues, the busi-
“Implementing daily stand up meetings,
ness implemented a back to basics
control boards and disciplined routines
operational excellence framework.
was an important part of the program.
Supported by a team of subject matter
Implementing controls around raw
experts from Indonesia, sponsored
materials ordering, demand planning,
by Gigy Philip, Supply Chain Director
procurement and inventory man-
(Indonesia) and led by Agus Salim,
agement, was important to stop the
Technical Manager (Indonesia), who
leakage of profit out of the business.”
focused on optimising the end-to-end
A major focus for the team was on
supply chain. “One issue was just
operational excellence within manufac-
around process and control, trying
turing. “There was a dedicated team
to give some structure to all of the
working on building local capability,
basic processes that are required to
optimising the equipment and upgrad-
run a supply chain,” says Robinson.
ing utilities within manufacturing to
JANUARY 2020
CLICK TO WATCH : ‘COCA-COLA AMATIL BRAND VIDEO’ 127
get the lines operating at the speeds
guys could see, on a week-to-week
that they’re capable of running at,”
basis, the improvements that they were
says Robinson. “That was the real
making, and it wasn’t led by manage-
crux of the way we’ve changed the
ment, it was led by this small group
business around. In a business where,
of subject matter experts.” In the end,
historically, demand exceeds supply,
he says, “it was about collaboration.
every 1% improvement in operational
Each function had been working in
efficiency goes straight to volume and
a silo and we had poor relationships
revenue. Improving the efficiency of
with suppliers. The creation of that
those lines was the major driver of the
collaboration and interdependence of
growth in 2019.”
all the functions as well as improving
Robinson credits the introduction
partner supply agreements enabled
of the small team with injecting a new
a business turnaround. Now, almost
level of energy and enthusiasm. “The
12 months later, operational efficiency a nz .busi ne ssc h ief. com
TRANSPORT & LOGISTICS SOLUTIONS FOR ALL YOUR DOMESTIC SHIPPING REQUIREMENTS. A wholly PNG owned shipping company, Bismark Maritime Limited has been operating first class coastal shipping services since its establishment in 1990. Bismark Maritime’s comprehensive shipping and logistic service is backed by our unrivalled knowledge of the local shipping industry, our close partnership with our clients and a real understanding of their needs. Bismark Maritime’s unique team is made up of professionals with years of extensive experience and knowledge of the shipping and transport industry in Papua New Guinea. Together the Bismark Maritime team offers expertise in all aspects of shipping, chartering, logistics and related services.
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C O C A - C O L A A M AT I L
130
has improved around 15%, driving an
about regaining respect and pride in
even higher growth in volume and reve-
the business from both our suppliers
nue in a relatively flat economic market.”
and our people. The process also
Operations weren’t the only piece
involved reaching out to engage those
of the puzzle, however, with a focus on
who had previously been ignored. “We
culture also prevailing. “We did a lot of
started to conduct town-halls where
work around engagement in a bid to
we listened to the people in order to
bring people together,” says Robinson.
understand what they were trying to
“We had a philosophy of ‘one team,
tell us. We have groups in each region,
one goal, no limits’, and that became
at a local level, understanding what the
a theme which was able to galvanise
team and the people are telling us, and
everyone in the organisation. We were
then building that back into the initia-
obviously trying to achieve volume
tives that we’re doing in those regions.”
and revenue targets, but it was also
Aside from listening, Coca-Cola Amatil
JANUARY 2020
also endeavoured to educate. “Another initiative originally from Indonesia was our Supply Chain Training Academy. It’s about building technical capability at the base operator level right up to supervisors, and up-skilling the entire workforce over a 12 to 18 month period.” In July 2019, PNG was awarded the
“ WE HAD A PHILOSOPHY OF ‘ONE TEAM, ONE GOAL, NO LIMITS’” — Simon Robinson, Head of Supply Chain, PNG, Coca-Cola Amatil
Supply Chain Best Practise Award at
E XE CU T I VE PRO FI LE
Simon Robinson Simon Robinson is an experienced Supply Chain Manager with more than 20 years’ experience across global FMCG businesses, including Coca Cola Amatil (CCA), Lion Nathan and Mitsubishi Motors. He has specific expertise across Sales and Operations Planning, Logistics and Route to Market, Business Transformation, Digital Supply Chain and Customer Service. Before joining the PNG business in 2019, he recently completed a major transformation of Route to Market and Logistics for the Coca Cola Amatil Indonesia business resulting in significant savings and customer service improvements. He is an advocate for digital supply chain transformation having initiated and managed several major SAP implementations across warehouse, transport and asset management systems, and sees technology as a core enabler for delivering both sustainable process change across large organisations and breakthrough improvements in efficiency and customer service.
a nz .busi ne ssc h ief. com
131
Labelmakers is thrilled to be Coke’s printing partner for Australasia and the South Pacific Streamlining your supply chain with a single touch point for labels, shrink sleeves and folding cartons.
Contact us at
Labelmakers Group
Australia and New Zealand
sales@labelmakers.com.au
133 the Coca Cola Asian Supply Chain
system which tracks line performance
Conference, in recognition of the
by the hour,” explains Robinson. “If we
transformation achieved in the first half
should have made 2000 cases, but
of 2019, beating out over 20 others
we only made 1000, it will report the
including large bottlers from Japan,
issues behind that on an hourly basis
China and Australia.
and allow us to track and address it.”
Despite the challenges in a country
Quinsys, meanwhile, is about auditing
such as PNG, technology has had a
good manufacturing practice. “People
significant part to play in the transfor-
can go around the plant and put into
mation. Two complementary systems
the system any hazards or issues
originally introduced in Indonesia
that they find. It gives us a really good
were brought in, the Electronic Short
tool to manage our safety and quality.”
Interval Control (ESIC), and the Quality
Going live in January 2020 is a new
Information System (Quinsys). “ESIC
ERP, Microsoft Dynamics. Replacing
is a homegrown production control
existing legacy systems, Robinson is a nz .busi ne ssc h ief. com
C O C A - C O L A A M AT I L
“ IT’S HARD TO DESCRIBE HOW IMPORTANT THE COCA-COLA BRAND IS TO THIS MARKET” — Simon Robinson, Head of Supply Chain, PNG, Coca-Cola Amatil
134
JANUARY 2020
135
a nz .busi ne ssc h ief. com
At Orora, we believe packaging touches lives, together we deliver on the promise of what’s inside. We specialise in designing, manufacturing and distributing premium quality glass bottles, aluminium cans and closures for wine and spirits. Orora is a proud partner of Amatil and the Coca Cola company. ororagroup.com
EastWest Transport (EWT) is one of Papua New Guinea’s largest multifaceted transport and logistics companies. Based in Port Moresby, with a significant presence in Lae, Wewak, Madang, Rabaul, Kavieng, Kimbe and Alotau. EWT operates across a wide spectrum of transport-related activities including bulk fuel, containerised freight, break bulk cargo and offers depot services such as equipment hire, warehousing and yard storage. EWT also offers a licensed customs cargo clearance service in Lae & Port Moresby. The company makes use of its close relationships with sister companies in shipping & stevedoring and offers specialised project solutions for the mining, oil & gas sectors.
SUPPLY CHAIN MANAGEMENT
OPERATIONS
TRANSPORT LOGISTICS
SUPPLY CHAIN SOLUTIONS
LEARN MO LEARN MORE RE
EASTWESTTRANSPORT.COM.PG
137
confident that “the new ERP system
bills to the shipping companies,” says
will make sure that everybody is work-
Robinson. “Now we’ve put trackers
ing off of the same plan. By putting
on all the containers so that we know
in Microsoft Dynamics we’ll give our-
whether they have reached the desti-
selves an ERP system that will enable
nation, which also enables us to track
us to integrate all our data onto one
them all the way back.”
platform, manage process compliance and sustainable change.” There are also a few technologies
Another initiative was based around transforming relations with suppliers from transactional relationships to
with region-specific utility, particularly
business partners. “Good examples of
GPS trackers. “We essentially deliver
those improving supplier relationships
everything in shipping containers, but
are demonstrated by key suppliers such
after delivery, we tended to lose track
as Orora (cans) and BOC (Carbon
of them and end up paying detention
Dioxide), where we were able to move a nz .busi ne ssc h ief. com
C O C A - C O L A A M AT I L
1960
Year founded (PNG)
22
Provinces reached in PNG
670
Number of employees
138
from regular supply issues, due to poor
consolidated our transport and ship-
planning and communication, to value
ping suppliers into companies such
added relationships where we are
as Bismark (a local vessel cargo sup-
proactively working together to drive
plier) and East West Transport which
shared growth and cost efficiency
is giving us better control, capacity
through design innovation and joint
and scaled efficiency to support our
long term planning,” says Robinson.
growth. On the production side we
“Labelmakers Group is our new label
engaged our plant suppliers such as
supplier, and brings innovative ecom-
Krones to provide technical and engi-
merce and design capabilities, such as
neering support to maximise output.
digital printing, which we are looking to
These relationships were all instrumen-
exploit for our 2020 consumer promo-
tal in turning around performance.”
tional programs. In logistics we have JANUARY 2020
“In summary, what we learnt is that
139
frameworks like operational excel-
chain improvements and investments
lence can still drive total business
to ensure its supply matches the vora-
performance,” says Robinson. “They
cious demand in the region. “It’s hard
are proven methodologies, replica-
to describe how important the Coca-
ble and low cost. Engagement and
Cola brand is to this market. Right
capability building, internally and
now, we can sell every can of Coke
externally, with suppliers was key to
we can make for the foreseeable future
delivering sustainable improvement
– it’s just an amazingly popular PNG-
and using digitalisation and technology
made product.”
is important to deliver compliance and sustainability to the change.” As for the future, the company is planning its next phase of supply a nz .busi ne ssc h ief. com
140
JANUARY 2020
Business Solutions: leveraging SAP expertise into customer value WRITTEN BY
SHANNON LEWIS PRODUCED BY
KRIS PALMER
a nz .busi ne ssc h ief. com
141
N T T D ATA B U S I N E S S S O L U T I O N S A PA C
Sharath Burla, CEO of NTT Data Business Solutions APAC, and Geuko Bosker, senior advisor to the CTO of NTT Data Corporation, discuss the importance of helping customers add new value to their business
O
riginally a part of the Nippon Telegraph and Telephone Public Corporation, NTT DATA has been an independent business
since 1988, focused on creating new paradigms 142
and value by transforming technology into meaningful innovation for its clients, helping people build newer, smarter societies around the globe. In 2005, the corporation set its sights on becoming a global IT innovator, embarking on a series of expansions, mergers, and acquisitions; in 2009, it acquired itelligence AG and Extend Technologies Pty Ltd, combining them to form NTT DATA Business Solutions. The past ten years, have seen the Business Solutions group grow to more than 10,000 employees in 27 countries, focused specifically on helping enterprises of all sizes gain deeper insights and better outcomes through SAP services and solutions spanning applications, infrastructure, security, and communications. Sharath Burla, CEO of NTT DATA Business Solutions APAC, explains, “the way the company JANUARY 2020
1989
Year founded
$1bn+ Revenue in US dollars
10,000
Approximate number of employees
143
a nz .busi ne ssc h ief. com
N T T D ATA B U S I N E S S S O L U T I O N S A PA C
“ The way the company has grown is through value creation, through a history of selftransformations” — Sharath Burla, CEO, NTT Data Business Solutions APAC
has grown is through value creation and a rich history of self-transformations.” NTT DATA is in its 29th year of revenue growth. Since acquiring itelligence in 2009, NTT DATA has grown phenomenally, from 32,000 employees and 80% of business practice being based in Japan to more than 125,000 employees and over 65% of business based outside of Japan. With a strong focus on key client-first, foresight, and teamwork values, NTT DATA embraces its Japanese heritage as a trusted global
144
innovator. As a Platinum SAP partner, Business Solutions is a market leader, delivering S/4 HANA Implementation and Transformation projects globally. “We work closely with SAP not only to deliver SAP solutions, but we also invest significantly more money into R&D and Innovation than any other professional service group.” he adds. Adding value is extremely important to the corporation. Burla brings with him 12 years’ experience in tech, with a focus on growing companies, while Geuko Bosker worked at itelligence for 16 years before entering his current role as senior advisor as the CTO of JANUARY 2020
E XE CU T I VE PRO FI LE
Sharath Burla Sharath Burla is Executive Vice President and CEO of Asia Pacific NTT Data Business Solutions and is based in Singapore. In this role, Sharath is responsible for driving NTT Data Business Solutions APAC market and business growth, creating value for customers, employees and stakeholders while coordinating and leading business activities in the region. Sharath has more than 25 years of business experience including over 18 years of management experience in information technology, business transformations, sales leadership, ERP, CRM, supply chain management and program management. Prior to joining NTT DBS APAC, Sharath held multiple senior management positions in sales, practice and strategy at DXC Technology (HPE). In his last role at DXC, Sharath was responsible for Enterprise Cloud Applications Business P/L across the region. Prior to DXC, Sharath held partner and leadership positions at start-ups and fortune 500 companies. Sharath holds a bachelor’s Degree in Mechanical Engineering from Bangalore University, a master’s in business administration from California State University and a masters in Sales Transformation from London. In addition, Sharath holds multiple industry and professional certifications including PMP from PMI, CSCP from APICS, SAP, Siebel, ITSM, Six Sigma and others.
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145
CLICK TO WATCH : ‘TRUSTED GLOBAL INNOVATOR “NTT DATA”’ 147 NTT DATA Corporation. “Our tagline is
knowledge is a highly valuable cur-
‘we transform trust into value’,” states
rency at Business Solutions. It aids the
Burla, “Our proven knowledge and
knowledge acquisition path by imple-
expertise, along with our onsite, off-
menting high-end training, tools, and
site, and offshore methodologies and
customer engagement programmes.
execution processes have made us a
“Gone are the days when we pushed
marketplace leader. Success requires
our solutions and products,” says
agility and vision to act decisively.”
Burla. “Now, it’s about taking a step
This is especially important in a world
back, understanding what the client is
driven by digital transformation. “The
going through, their challenges, their
customer drives the change. They rely
desired outcomes and then looking
on our thought leadership to help them
at what added value we can bring. We
define themselves,” explains Burla.
know that every organisation is at a
With customers more informed about
different stage on its digital journey.
their tech needs now more than ever,
When navigating the ever-shifting path a nz .busi ne ssc h ief. com
N T T D ATA B U S I N E S S S O L U T I O N S A PA C
C O M PA N Y FACT S
• NTT Data has grown from 32,000 employees and 80% of business practice being based in Japan in 2009 to over 125,000 employees with over 65% of business based outside of Japan today • NTT Data is in its 29th year of revenue growth
148
toward a digital enterprise, you need a
used to have a project manager
trusted partner to help you make sense
focused on a specific budget and
of everything. We help our clients stay
deadline,” says Bosker, “Now, we’re
ahead of what’s coming next to avoid
looking into continuous programme
the minefield of new challenges that
management with smaller Agile sprints
emerging technologies unearth.”
rather than project-based manage-
Digital transformation has forced
ment.” Tech plays a role as well. NTT
Business Solutions to re-evaluate
DATA’s DevOps platform, Altemista,
internal processes. Projects that previ-
and its low-code, no-code solution
ously took two years from blueprint
CAD (Cognitive Assisted Development)
to implementation are being broken
helps developers execute projects
up into smaller pieces through design
efficiently. Meanwhile, its research and
thinking and Agile methodology. “We
development (R&D) team is looking into
JANUARY 2020
149
increasing both workflow efficiency
“Bringing everyone up to speed,
and customer experience through
despite all of our investments, contin-
Digital Managed Service solutions.
ues to be a challenge.” Burla says, “It’s
Business practices are constantly
not easy to form that cohesive, col-
updated in line with customer expecta-
laborative, innovative, high-performing
tion. “People are important. Across
team we are looking for.” To combat
the group, we have over 15,000 SAP
this, Business Solutions provides meth-
consultants in 35 countries. They
odologies, guidelines, and training
cement the binding of what we want
that are mandatory across the board.
to do moving forward,” affirms Burla.
Currently, NTT DATA is also rolling
Establishing governance in the face of
out NTT DATA Knowler, a knowledge
global expansion is one of the most dif-
platform based around ontologies,
ficult tasks for a multinational company.
neuro-linguistic programming (NLP), a nz .busi ne ssc h ief. com
Connecting All Parts of Your Business to
The Best Run
artificial intelligence (AI).
the future, it’s important to digitalize
Automation and AI are an important
our own processes and enhance our
tech avenue for the company. “People
workforce to ensure we actually have
are still looking for the right angles
enough resources to keep up with the
in the pursuit of AI,” says Bosker. “You
work our growth is developing. This
need to either train people or actu-
guarantees we can create the highest
ally find the right talent to implement
value for our customers, ensuring on-
it successfully.” Bosker sees this as
demand support for every single one
an opportunity. As a global company,
of them in the future.”
NTT DATA can attract a talent pool
According to Bosker, digital trans-
that most of its customers can’t. “Some
formation has encouraged companies
of the R&D assets we are currently
to reconsider employee relationships.
focusing on are to be deployed inter-
The focus, he says, is on finding the
nally first,” states Bosker. “Although
right employees and keeping them
we intend to sell these solutions in
in-house. Business Solutions uses a
JANUARY 2020
design-thinking model to be able to
NTT DATA is embarking on from an
deliver on customer demands. The
R&D level as well, from virtual reality
implementation of this model is aided
meeting rooms that have real-time
both by cross-training employees
language translation capabilities to
across the company and through its
the worldwide implementation of
leadership choices. “This is what we
SuccessFactors, which supports HRM
call a digital workplace,” says Bosker.
processes around employee retention
“It’s about making all the knowledge
and long-life learning concepts.
we have available to our people and
Looking to the future, NTT DATA
ensuring everyone can collaborate
Business Solutions continues to expe-
and communicate with each other,
rience significant growth in the APAC
anytime, anywhere.” This is something
region, having completed acquisitions 151
E XE CU T I VE PRO FI LE
Geuko Bosker Geuko Bosker is senior specialist in Technology & Innovation General HQ of NTT Data in Tokyo and acting as senior advisor to the CTO of NTT Data Corporation. His primary focus is global technology & innovation management & Strategy. As part of his role, he is co-leading the SAP innovations team in NTT Data globally and is a member of the digital focus area leadership team for Internet of Things. Before he came to Tokyo he was director for managed services and innovations at itelligence Benelux, leading a team that was focused on combining the strength of long term customer relationships with introducing and implementing the latest innovations and technologies of the SAP product portfolio.
a nz .busi ne ssc h ief. com
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152
“ It’s about taking a step back, understanding what the client is going through, their challenges, their desired outcomes and then looking at our solutions to determine what added value we can bring” — Sharath Burla, CEO, NTT Data Business Solutions APAC JANUARY 2020
AMLAD, the digital archive service developed by NTT DATA to preserve priceless cultural records for the Vatican Apostolic Library
in Indonesia and Thailand as part of its plan to scale into the Indochina market. By industrialising its industry templates, best practices, and repeatable solutions, the company minimises the risk traditionally associated with transformative processes. Business Solutions’ five focal points are customer experience and intelligence, employee experience and intelligence, financial intelligence, business intelligence, and systems intelligence. Its 2020 global plan outlines goals to help it expand its marketplace footprint. One of these is increasing workplace diversity and inclusion, ensuring the world within the company looks like the world without and championing female leaders. “We want to cross-pollinate our systems, our leadership and our talent,” affirms Burla. As a market leader in utilising SAP portfolios to help customers achieve intelligent enterprise, Business Solutions’ sights are firmly set on achieving continuous growth over the next few years, both for itself and for its customers.
a nz .busi ne ssc h ief. com
153
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