IMI Critical Engineering
COVID-19, Digital Disruption, and Supply Chain Operations: The IMI Perspective
IN ASSOCIATION WITH
DIGITAL REPORT 2020
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COVID-19, Digital Disruption, and Supply Chain Operations: The IMI Perspective
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IMI CRITICAL ENGINEERING
Aidir Parizzi, Director of Global Supply Chain for IMI Critical Engineering, discusses COVID-19 and digital disruption. IMI Critical Engineering is a leading provider of specialised valves for oil, gas, chemical and petrochemical industries, globally. ‘Flow control technologies’ for the sake of conciseness. The company has a myriad of subsidiaries around 04
the world and employs over 4,000 professionals across different regions. Like any ‘big business’, in the looming shadow of the COVID-19 pandemic, IMI had to adapt to the new normal while still prioritising their clients’ needs and adapting their own staff setups to remain resilient in trying times. At Supply Chain Digital, we wondered how a multinational company that provides crucial parts to industries across the globe dealt with the challenges presented by the pandemic; how technology influenced them, and what strategies they put in place to ensure their business success. Fortunately, Aidir Parizzi, Director of Global Supply Chain at IMI, took the time to chat with us about maintaining business operations in the face of adversity.
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“ From a business continuity aspect, what gave us the time and resources to focus on PPE, logistics and resourcing needs was the fact that we were well-prepared for an event of this magnitude” — Aidir Parizzi, Director of Global Supply Chain, IMI Critical Engineering 06
“While we kept as many people as possible working from home, the majority of our sites kept operating and serving our customers, following guidelines set by different governments around the globe. The first concern was regarding personal protection equipment (PPE). We have mobilised Supply Chain teams in Asia, the Americas and Europe to provide our employees with the necessary protection equipment. Around 100 thousand masks were acquired – not medical masks, but here we’re referring to FFP2 and FFP3, which provide enhanced protection. In addition, we procured thermometers, gloves, thousands of litres of hand sanitiser and thermal imaging devices for each site. We also had to deal with increasing import/export obstacles that came gradually – country restrictions, logistic issues, and licences required, for example. From a business continuity aspect, what gave us the time and resources to focus on PPE, logistics and resourcing needs was the fact that we were well-prepared for an event of this magnitude”.
IMI Corporate Video - 2020 CLICK TO WATCH
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07 For IMI Engineering, though COVID19, specifically, wasn’t necessarily expected, “pandemics, like other envi-
data analysis required to react quickly and efficiently to unexpected events.” All of these measures are, of course,
ronmental, geopolitical or commercial
dependent on digitalisation: a con-
disruption, of regional or global mag-
cept that has been sweeping across
nitude, are almost always inevitable,
every industry for decades, now – but
but at the same time highly predict-
in a more driven manner, recently,
able. Our Strategic Sourcing Process
with the adoption of new, futuristic
created three years ago, includes risk
technologies and capabilities. “The
management measures that, in spite
fundamental reason to digitise is
of a significant supplier base reduc-
speed. It’s no longer only about making
tion in the last three years, provided
the right decisions, but about making
us with the diversified dual sources we
them in the shortest possible time.
needed, the strong long-term supplier
We need to understand the impact,
relationship, agreements and reliable
real or potential, of commercial risks www.i mi - c ri t i c a l. com
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The Salesforce Solution: In Conversation with John Kelleher John Kelleher joins Supply Chain Digital to discuss the ongoing partnership between Salesforce and IMI Critical Engineering, and the reasons behind it. Recently, I had the pleasure of meeting — albeit virtually — John Kelleher, the Area Vice President of Enterprise Sales UK, at Salesforce. The leading VP took the Supply Chain Digital hot seat and openly discussed Salesforce’s business model, the company’s partnership with IMI Critical Engineering, and the ways that digital transformation has affected global supply chain networks.
now support other areas of capability and are working closely with IMI to extend the relationship further. IMI continues to develop capabilities on the Salesforce platform, and we are working with them on key strategic pillars such as Customer Satisfaction and Commercial excellence to support IMI’s sales and customer services pre-and-post sale.” End-to-end, if you like.
“Back in ‘99, Salesforce was one of the pioneering companies that took cloud-based technologies into businesses. Our initial area of capability was focussed on CRM, Customer Relationship Management, where we supported our customers to establish a customercentric approach to their business models, enabling them to better connect to their customers and visibility across their sales processes. Fast forward twenty years and Salesforce has built a complete 360-degree suite that has extended the capabilities of classic CRM into customer service, marketing, and eCommerce — both B2C and B2B.” More recently Salesforce has made major acquisitions in the areas of integration and analytics with the respective acquisitions of Mulesoft and Tableau. Both maqui brands, they are enabling us to support customers maximise their existing technology investments and optimise cross-functional processes, whilst maintaining customer-centricity.
John added that “The relationship is very much based on traditional Salesforce CRM. The reliability is there, and the partnership continues to grow, which suggests we’re delivering value for IMI and how they manage their processes. Due to COVID-19, reps that were out on the street – as it were – have been brought in-house easily because their front office estate is built on cloud-based capabilities like Salesforce. The company was able to adapt to the new sales environment far quicker than they would have, had they been constrained by more on-premise, in-agile technologies. So it’s a traditional starting point, but with modern technology, we’ve been able to help IMI Critical Engineering adapt quickly in a highly volatile world.”
On Salesforce’s partnership with IMI Critical Engineering, John was willing to share his insight. “[Salesforce has] got a long-standing relationship with IMI. Whilst our initial engagement was around core CRM, we have built a richer 360-degree relationship with them and
IMI CRITICAL ENGINEERING
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and opportunities, faster than our com-
regions, working without colours and
petition and before it cascades to our
stripes, as a single company, and we’ve
customers. An end-to-end Supply Chain
made significant progress in that regard�,
planning also involves all functions and
Aidir stated.
When I asked Aidir about the widely-
was created to evaluate Brexit impact,
spread claim that digital transformation
and then expanded to other events. It
has undergone a ten-year evolution,
helped us immensely to quickly react
courtesy of the pandemic, he suggested
to the effects of the pandemic.”
that it had sped up the process, but IMI
“Beyond Supply Chain, the digital
were already evolving their supply chain
transformation effort had to be accel-
norms long before the global event.
erated to cover all aspects of the
“As a British company, in addition to the
operation, including relationships
pandemic, we have been focused on
with customers and suppliers, remote
potential disruption, delays and cost-
customer assistance, inspections,
related issues related to Brexit. Our
and last but not least, how our prod-
Supply Chain Digital Twin, for example,
ucts must adapt in a digital world. 11
E X E C U T I V E P R O FILE :
Aidir Parizzi Title: Director Global Supply Chain Industry: Mechanical Or Industrial Engineering Aidir Parizzi has over 25 years of extensive experience in Engineering and Supply Chain Management, with a strong track record of Supply Chain performance improvement in global businesses. He has worked internationally with global leaders in the Automotive and Oil & Gas industries, always focused on building and consolidating Global Procurement & Supply Chain effective teams and processes.
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IMI CRITICAL ENGINEERING
That journey is long and full of pivoting points, but our teams have the talent and motivation to get it done. I don’t think there’s a single formula that serves all companies, and the concept of digitalisation itself keeps evolving rapidly. Each company will have to find its own solution,” Aidir added. A lot of companies, after the initial shock of COVID-19, having watched as their global supply chain networks were torn apart, their balance books inked with red figures, and job losses 12
across the board, have openly stated that they wish they could have done things differently. Many would have done things differently on the run-up to the pandemic, had they known what was around the corner. On this, Aidir told me that IMI is “now looking at several measures to better prepare us for these events, but while we didn’t have a crystal ball, we put in place several actions in recent years that helped us in this period.” “Having a truly global team with people in all continents creates an invaluable collaboration network, which was crucial for us this year. Two aspects we continue to
“ The fundamental reason to digitise is speed. It’s no longer only about making the right decisions, but about making them in the shortest possible time. We need to understand the impact, real or potential, of commercial risks and opportunities, faster than our competition and before it cascades to our customers” — Aidir Parizzi, Director of Global Supply Chain, IMI Critical Engineering improve are reinforcing or empowering our Category Management team and further investment in Cost Engineering tools,” the Global Director added. As supply chain networks continue to expand, just like IMI’s, resiliency is becoming increasingly important. Yet, for such a popular term, it’s proving itself to be elusive, and difficult to actually grasp – this was a predictable problem when you consider that www.i mi - c ri t i c a l. com
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“ We need to make sure the company continues to grow and innovate, in spite of current adversities. The best way to do it is to work in partnership with customers and suppliers. We’re confident we have the right people, technology and energy to continue delivering breakthrough technology for a better world” — Aidir Parizzi, Director of Global Supply Chain, IMI Critical Engineering
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IMI CRITICAL ENGINEERING
“ The digital transformation journey is long and full of pivoting points, but our teams have the talent and motivation to get it done. I don’t think there’s a single formula that serves all companies, and the concept of digitalisation itself keeps evolving rapidly. Each company will have to find its own solution” — Aidir Parizzi, Director of Global Supply Chain, IMI Critical Engineering 16
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17 the majority of companies have rigid global, interdependent networks. In response to this idea, Aidir shared that “[IMI Critical Engineering] has ca. 850 direct material suppliers,” down from over 3000 just three years ago, “with virtually no sole sources. Resilience is an integral part of our supplier onboarding process, and we also focus on regional resilience, meaning that we aim to have dual sources within the regions and avoid financial losses in case of disruption. China and India as an example of dual sources.” Aidir warns that, in the pursuit of www.i mi - c ri t i c a l. com
IMI CRITICAL ENGINEERING
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supply chain resilience, many com-
internally only or work on technical
panies who are looking to adopt all
aspects without customer input. It’s
of the latest technologies need to be
something we strive to keep in mind
wary. Regardless of whether you’re
all the time.”
investing in Analytics, Automation,
At the very end of the interview,
Cloud, Cybersecurity, IoT, or any other
I asked Aidir about the future outlook
product, “[the] technology must stay
for IMI Critical Engineering and for the
focused on our top priority, which is
supply chain as a whole, his answer
to make us the supplier of choice to
to which was both a poignant and suc-
our customers. There’s always a risk
cinct answer, “Digitalisation is a key
of losing that focus when you prioritise
aspect, but also flexibility, from a Supply
19
Chain and operations point of view. We
with customers and suppliers. We’re
need to be able to manufacture and
confident we have the right people,
service our products wherever the
technology and energy to continue
customers are. The answer now is very
delivering breakthrough technology
similar to what it was last year, but the
for a better world.�
speed and motivation to act has been greatly increased. We need to make sure the company continues to grow and innovate, in spite of current adversities. The best way to do it is to work in partnership www.i mi - c ri t i c a l. com
IMI CRITICAL ENGINEERING LAKESIDE BIRMINGHAM BUSINESS PARK BIRMINGHAM B37 7XZ UK T +44 (0) 121 717 3700
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