CONNECTING THE FUTURE
02
PRYSMIAN GROUP GOES GLOBAL WITH ITS LATEST ACQUISITION WRITTEN BY
DAN BRIGHTMORE PRODUCED BY
DENITRA PRICE
03
ww ww.c w w.pr o mpa ysmi nyawe ngro bsite. u p . com
PRYSMIAN GROUP
PRYSMIAN GROUP’S SUPPLY CHAIN DIRECTOR, GIANMICHELE ALIVIA, AND CPO, NA BRIAN SCHULTIES, REVEAL HOW ITS MERGER WITH GENERAL CABLE HAS EXPANDED THE COMPANY’S GLOBAL REACH AND OFFERED THE OPPORTUNITY TO MAXIMIZE ITS SYNERGIES
P 04
rysmian Group is now a global force in the energy and telecom cable systems industry. Boasting nearly 140 years’
experience, the company’s wide service offering has driven sales exceeding €11bn via a 29,000-strong workforce operating in over 50 countries across 112 plants worldwide. Since the $3bn acquisition of General Cable in 2018, the group is embracing the complex transformation required to merge company cultures and meet the needs of a global footprint, while managing the synergies between procurement processes, supply chain and operations. Prysmian’s CPO, NA Brian Schulties worked at General Cable, starting in 2006, so he has a unique perspective on the challenges ahead. “While the re-organization was challenging, it was timely,” he reveals. “We’re merging two cultures into one and it’s not something you do in 30 days…” Senior Supply Chain Director Gianmichele Alivia
05
w w w.pr ysmi a ngro u p . com
Bekaert is a strategic and long-term partner for us on steel wire and cables. Their high quality, focus on research and innovation, new product development and responsiveness enable Prysmian/ General Cable to be successful in serving the market. We truly appreciate the relationship and push to be stronger together for many years to come.” Arvind Parsa, Director of Metals
Bekaert is a global producer of steel wire and cable products including energy and telecommunications solutions. Our products meet industry quality standards and can be refined to meet specific product or production requirements.
1x3, • 1x7, 1x19 wire strand
Static • strand, including Alumaclad
ACSR • and ACSS
Utility • staples
Next • generation ACSR
Messenger • strand/wire
Guy• strand/wire, including Alumaclad
A wide • range of coatings, including Bezinal ®
Get in touch! www.bekaert.com/powersolutions
CLICK TO WATCH : ‘PRYSMIAN GROUP AND GENERAL CABLE JOIN FORCES’ 07
agrees: “Setting up the new organization
less what the legacy Pirelli company
was only a part of the work that had
was doing globally. All of the challenges
to be done. We’re now starting the
are mastered here. Since the acquisition,
discussions about merging the ERP
we’ve been working to bring these two
systems and the tools we need.”
entities together. North America is where
Following its acquisition by Goldman
the bulk of the general cable business
Sachs in 2005, the former Pirelli
was and so this is where the majority
Cables & Systems (where Schulties
of the effort has been placed.” That
also worked prior to General Cable)
effort has included the integration of
was renamed Prysmian. “The company
5,000 staff while managing fixed costs,
has grown tremendously in the past
something that has been key to Prysmi-
year,” explains Alivia. “We generate
an’s success as a lean organization.
approximately $4.1bn in revenue in North America, which was more or
Schulties admits a $3bn acquisition invites a period of instability. w w w.pr ysmi a ngro u p . com
PRYSMIAN GROUP
08
“Expectations since the merger are high, and we only have two years from start-to-finish to work on the synergies – beyond that it becomes the normal course of business.” He cites the success of the integration of Draka into Prysmian Group in 2011 and notes that CEO Valerio Battista has stated the progress with synergies is ahead of schedule. Alivia adds that the same challenge is being tackled on the supply chain side “The first step was to look at inventory (since the merger inventory locations have dropped from 77 to 70) but now we’re analyzing more complex points including the rationalization of our network where inventory is kept, our flows, product location and distribution. We need to ensure we make the right product in the best facility,” he explains. Prysmian is engaged in setting new contracts with carriers and working on their implementation with third-party logistics companies essential for managing the network. “It’s not only the logistics network,” adds Alivia. “We are reviewing every single facility and product to make sure we service the customer from where it makes the most sense; we’re looking at cost of w w w.pr ysmi a ngro u p . com
09
When atoms come together, forming stronger cable insulations and jackets, we beneďŹ t from the energy that connects us.
Advancing a world of possibilities.
lyondellbasell.com
“ WE ARE GOING STATE-OF THE-ART WITH THE LATEST VERSION OF SAP, WHICH IS IOT (INTERNET OF THINGS READY. THIS WILL ALLOW US TO BUILD ONTO IT AND LOOK AT THE POTENTIAL FOR PREDICTIVE ANALYTICS, MACHINE LEARNING AND AI” — Brian Schulties, CPO NA, Prysmian Group
production and factory efficiencies, but also the cost of delivery.” Beyond the strategic change triggered by the merger, Alivia notes how Prysmian is always open to dynamic change in the quest for greater efficiencies through the implementation of new technologies. “We’ve run idea pilots with augmented reality in our factories and trialed smart devices, such as sensors, both in our production lines and out in the field.” The group is keen to implement machine learning to help with its logistics network, though Alivia
E XE CU T I VE PRO FI LE
Gianmichele Alivia Alivia started his career at Pirelli in Milan with the corporate supply chain team. Since 2006, he has moved back and forth between Italy and the US working mostly on supply chain and managing the company’s B2B website. Alivia spent time at the former U.S. headquarters in South Carolina during the merger with General Cable. At the time, he was in charge of the regional supply chain of Legacy Prysmian, North America, and then, after the acquisition of General Cable, Alivia moved to current headquarters located in Highland Heights, KY and took a role in the new organization where he is working on the synergies project following the merger between General Cable and Prysmian Group.
w w w.pr ysmi a ngro u p . com
11
PRYSMIAN GROUP
soci
REC I O R I T Y PR
OMM
REPO
NIT ATION RECOG
SA
CARING for our people and communities ACTING responsibly for the planet BUILDING a better future together Learn more at cabotcorp.com/sustainability ©2019 Cabot Corporation
A leading manufacturer of protective materials for high reliability applications since 1946.
Tapes, laminates, sealants and coatings
Wire and Cable tapes and moisture block compounds
www.chasecorp.com
Electronic and Industrial coatings
Anti-corrosion coatings for Infrastructure
We make a material difference
ILITY ESPONSIB
pr
R orld-class rt cond po tionsANwSP ARENCY re CO G N IT IO N TR RE &E now SH esent
GIVING ed engastgom ers cu social pe ers
m
customers
REDUCE vironmen giving enC AT I O N S APPLI
REGU
ic CH AR ITA
S econom IP CUSTOMERing LEADERSH l
pr
gnition BL E reco CH AR ITA onomic productsE S ec ring CH AR ITA BL PLOYEE anufactu
sparency employ
CYCLING award RTIEON now INNOVA
grow
conserve GAGEenDt o ARITABLE Involvem health CTURING FA PILLAR MANU ION
ec I T Y er P R I O Rco ns ve
MANUF
EMEN TAL INVOLVON EN ENVIthR M peioerritsy
e
involvem NG PLOYEES
GIVI EM ponsibility ORTFOLIO res
enta Recycl ECONOMIC LATION environm
ged
cy enga transparen
ANCE PERFORM
ble EM FOUNDATION goals STACTURING charita
involv LITY employ BI RESPONSI oliot rtfen ility poes Responsib ENT pr T COMMITM
dership
COMMITMENT
applications
enga ance INVOLVEM perform
OLIO LD-CLASS PORTF ENT ged WOR
an REDUCE plplan
E CONSERV
cycl IONS re ental APPLICAT environm lifespan N S ITIE future COMMU
c
comm
ENVIRONMENTAL
citizenship
Y ONSIBILesITent
NDATION
FOU IONS tech APPLICAT PLAN eadershi ongn
peers LEitment CO M M UN
mort
pr ss social world-cla
LE CHAsReITnAtBgoals pre
report pillar OMIC nt reduce health preseOGNITION
MANCE PERFOR RTNER PA
energy CON
t VE presen ance n CO NS ER regulatio ADERSHIPperform IT IE S
ing
ON
TI INNOVFEATY
GLOBAL
P SH&E RES
social safety PLAN now
comm ENTAL ENVIRONM
REP
iorit OMICal
logy techno unities
so award FUTURE
founda
cial
RENCY TRANSPA tion
STEM
GROW
cust e
ENERGY
espons health
conserve
inno
g
safety
RING CTU n UFA MAN vatio
gro ort SH&E ers iving pe
awar
unitites commem en partneree STEM
manufa
GES LLEN ent CHnvAironm
O
RTFOLI engaged PO
ip orate citizensh ers ION Collab lifespan pe TH
recyclingd
BL E
Y T I L I B A N I A T S SU We believe it’s more than a buzzword. It’s a pillar of our business practices.
concedes the cable industry is quite conservative and only implements technology when it can serve a proven purpose. “One of the most interesting things we’re doing is putting tracking devices on our cable drums to be able to monitor where they are at all times and ensure there is a faster turnaround of these assets once the cable on the drums has been used,” he reveals. Meanwhile, Schulties believes there’s potential to harness AI capabilities to reduce the need for remedial tasks.
“ EXPECTATIONS SINCE THE MERGER ARE HIGH, AND WE ONLY HAVE TWO YEARS FROM START-TOFINISH TO WORK ON THE SYNERGIES – BEYOND THAT IT BECOMES THE NORMAL COURSE OF BUSINESS” — Brian Schulties, CPO NA, Prysmian Group
Almost a year on from the acquisition, Prysmian Group is preparing the
13
significant step of merging its ERP systems. “It will generate efficiencies
E XE CU T I VE PRO FI LE
Brian Schulties Brian Schulties is the head of Purchasing for Prysmian Group North America. Schulties has more than 30 years of experience in the procurement field in the automotive, foundry and wire and cable markets. Prior to joining the company, he was the vice president of Sourcing for General Cable. Brian holds a bachelor’s degree in business administration from Cleary University and has a lifetime C.P.M. certification.
w w w.pr ysmi a ngro u p . com
PRYSMIAN GROUP
with everyone operating the same way on a shared system; obstacles will be removed giving us a better foundation to build for the future,” confirms Alivia. “We are going state-of-the-art with the latest version of SAP, which is IoT (Internet of Things) ready. This will allow us to build onto it and look at the potential for predictive analytics, machine learning and AI.” Beyond the challenges of the merger, innovation remains a high priority for Prysmian with 25 R&D centers across the globe and a 14
commitment to patenting new cable designs. Schulties is keen to act on the voice of the customer and see the company leveraging its supply base, as far as its technology and ability to provide innovation with delivery to market. On that quest, Prysmian works with 3PL, transportation and supplier partners. “We’re in discussion with companies like UPS,” says Alivia. “How do we create more than just a supplier/customer relationship? How do we form a strategic partnership with the extended supply chain team to come up with solutions? We’re having whiteboard discussions to find ways of solving shared problems
15
w w w.pr ysmi a ngro u p . com
PRYSMIAN GROUP
M A R KS THE SP OT Raw Materials, All Over Again Since 1918 At PMR our mission is to reintroduce useful raw materials for the metals and plastics industries, reduce the scrap generator’s waste stream and play a major role in the greening of our environment.
Headquarters 99 East River Drive, East Hartford, CT 06108 • 860 622-7626 Offices & Plants: East Hartford, CT • Orangeburg, SC • Canastota, NY • Miami, FL Willimantic, CT • South Windsor, CT • Wilmington, DE • Hickory, NC
across the entire infrastructure of our organization.” Focusing on shared sustainability goals is also key for a company
€11.bn Approximate revenue
ranked third in its sector by the 2018 Dow Jones Sustainability Index (DJSI). Prysmian is working with procurement to identify ways it can increase the percentage of return of recycled plastic and wood from pallets. Meanwhile, it is engaging with freight providers who invest in new trucks to improve mileage efficiency and reduce emissions. “We’ve also joined
1879
Year founded
29,000
Approximate number of employees 17
CLICK TO WATCH : ‘PRYSMIAN GROUP SHOWS ITS ADVANCED VESSELS FLEET’
w w w.pr ysmi a ngro u p . com
PRYSMIAN GROUP
18 S U S TA I N A B I L I T Y
Prysmian 3rd in the Dow Jones Sustainability Index Prysmian works with its partners
sustainability issues; adopting
for a common goal: achieving
inclusion and diversity policies;
sustainability now and for the
implementing a Code of Business
future. It has improved its
Conduct designed to disseminate
ranking due to numerous actions
responsible business practices
completed in the environmental,
along the supply chain; reducing
social and governance fields.
emissions of ozone-depleting
These include, amongst other
substances; extending the KPIs
things: vesting the Board of
adopted in its own Sustainability
Directors’ Compensation and
Report, drawn up according to
Nomination Committee with
the G4 guidelines of the Global
tasks such as: overseeing
Reporting Initiative.
19 the SmartWay,” adds Alivia. “It’s an
tion. The fact that we’ve just made a
EPA (Environmental Protection
big purchase doesn’t mean we’re not
Agency) program whereby companies
analyzing the next potential acquisi-
work collectively to reduce emissions
tion two or three years from now.”
and improve efficiency.” SmartWay
The strategy is set: making links in
offers an integrated set of no-cost,
the chain is building a bright future
peer-reviewed sustainability account-
for Prysmian and its customers.
ing and tracking tools to help companies make informed freight transportation choices across their supply chain. Looking ahead, Prysmian’s strategy is to be “consolidators of the market,” says Alivia. “We want to squeeze efficiencies out of the companies we acquire, generate cash, pay the debt and get ready for the future acquisiw w w.pr ysmi a ngro u p . com
Prysmian Group Via Chiese 6 20126 Milan, Italy T +39 02 6449. 1 www.prysmiangroup.com