Greetings! My name is Ben and I’m taking the reins as Senior Editor here at CHAIN and its sister magazine Digital Innovation.
Before introducing myself, the team at iThink Media and I would like to thank Anna McMahon for her five fantastic years at the helm – we wish you all the best with your future endeavours.
I trained as a historian but sidestepped into commercial content and then the news media industry. Along the way, I’ve had the chance to work on some incredible projects from a commemorative book for the late Queen’s Platinum Jubilee to building the world’s first voicesearchable newspaper archive with Google.
I’m thrilled to be here and hit the ground running with a fantastic magazine.
In this April edition, our cover interview is with Ulyses Camacho and Armando Flores from Taco Cabana who discuss their recipe for growth (p6), Jacques Pistorius of Petra Diamonds Limited tells us about their diagnostic approach to procurement (p32), Patrick Neptune navigates us through the growth roadmap at US Expediters Logistics, Inc. (p58) and Hanane Pelissier from Telehouse discusses how their procurement strategy is an enabler for business success (p96).
Our features this April cover autonomous mobile robots that can work in harsh facility conditions (p26), the US supermarket investing heavily in its supply chain network (p46), how Europe’s largest car manufacturer plans to invest in mines to become a global battery supplier (p84) and I sit down to chat with supply chain leader Tara Burdeshaw about strategy, change management, technology and her new consulting company (p74).
A huge thanks to all involved in making my first edition of CHAIN magazine such a pleasure to coordinate – please enjoy.
Ulyses Camacho, President and Chief Operating Officer, and Armando Flores, Senior Director of Procurement and Supply Chain, at Taco Cabana, celebrate their company’s unique history whilst sharing their future plans.
company steeped in history, the popular Mexicaninspired restaurant chain is celebrating its 45th anniversary in September, having opened its first location in San Antonio, Texas back in 1978. Taco Cabana’s headquarters continue to run out of San Antonio, with six of the franchise restaurants having opened in the nearby state of New Mexico. Further growth
outside of Texas is planned for the future.
So, what’s on the menu at Taco Cabana? Ulyses Camacho, President and COO at Taco Cabana, enthuses, “We have been in the food business for 45 years and we’re known for our innovation across a variety of culinary categories including fajita meals, flautas, Cabana Bowls® and breakfast, lunch and dinner tacos.
IF YOU HAVE BEEN TO TEXAS OR NEW MEXICO, USA, IT IS LIKELY YOU WILL HAVE EATEN
“We serve our tacos on a special flour tortilla made in-restaurant throughout the day, as well as a number of rotating desserts. For the breakfast segment, we sell our dozen breakfast taco boxes, which are very popular and some of our best-sellers. Every location has a full liquor license and a drive-thru. We are open for breakfast, lunch and dinner – with some locations
in-restaurant salsa bar and many of our competitors have since executed the same idea. Most recently, we have become known for our expanded line of margarita flavours. During Covid, we became the largest purchaser of tequila in the state of Texas. In the last two years, we have also launched new innovative culinary items such as our guacamole bites, chocolate
Ulyses Camacho, President and Chief Operating Officeroffering late-night openings. We are famous for our margaritas!”
Ulyses believes it is critical to continue to innovate within the food industry in order to stay relevant when leading a 45 yearold brand. He continues, “We pioneered innovative Mexicaninspired cuisine. We developed the original concept for a fast-casual
chimichangas and double crunch pizzas.”
Taco Cabana’s very strong position when it comes to innovation is due in a large part to its continued focus on research and development and the use of quality ingredients. Ulyses says, “We have a broad TC team working with our chefs on R&D, composed of quality
“WE HAVE BEEN IN THE FOOD BUSINESS FOR 45 YEARS AND WE’RE KNOWN FOR OUR INNOVATION ACROSS A VARIETY OF CULINARY CATEGORIES INCLUDING FAJITA MEALS, FLAUTAS, CABANA BOWLS® AND BREAKFAST, LUNCH AND DINNER TACOS”
assurance, marketing and training. Our yearly promotional calendar is built with innovative new items, including limitedtime offers, which may or may not repeat each year and permanent items balanced with our core items. We like to keep it fresh and new as often as we can do so!”
Like any other food business, Taco Cabana had to contend with restaurant closures, staffing issues and Covid protocols during the recent pandemic. But a new law that was passed allowing alcoholic drinks to be served to-go helped to put the company in a better position.
Ulyses explains, “Taco Cabana jumped on the initiative to serve takeaway alcoholic drinks. We have drive-thrus in every location, so we had the ability to serve alcohol to-go in Texas when our competitors did not have
“I BELIEVE RELATIONSHIPS ARE BASED ON COMMUNICATION FROM TOP TO BOTTOM ACROSS THE ORGANISATION, AS WELL AS LATERALLY ACROSS DIFFERENT DEPARTMENTS. WORKING THROUGH YOUR CHALLENGES TOGETHER AS A TEAM IS KEY”
Armando Flores, Senior Director of Procurement and Supply Chain
that ability, and thus, could not compete. We are still dealing with some of the aftermath of Covid, but I think everything we do that touches our guests and operations now runs through three important filters.”
The filters for Taco Cabana’s strategy post-Covid include:
1. OPTIMISATION
2. SIMPLIFICATION
3. CONSISTENCY
Armando Flores, Senior Director of Procurement and Supply Chain, at Taco Cabana, reflects, “Our ability to serve a highquality margarita containing real tequila rather than a sugarbased alcohol added to the value we brought to our guests during Covid. We provided quality margaritas at two dollars each at
a time when the economics were up and down. It was a really good deal for people who might have needed to stretch their dollar a little further.”
On the purchasing side, Ulyses highlights that you must have consistency with the products you ship to the restaurants. When a lot of suppliers were uncertain about the stability of their customers during Covid, Taco Cabana was able to continue to buy from its suppliers when the restaurant dining rooms were closed, given its drive-thru and delivery opportunities. Armando says, “If you look upstream through our supply chain, we were keeping manufacturers going and people employed in the state of Texas. I stand firm that a resilient supply chain is the backbone to any successful business. If we don’t
“FOUR OF TACO CABANA’S TRUSTED PARTNERS INCLUDE MARTIN FOODS, KERRY, TAYLOR FARMS AND DEEN MEAT. THEY PROVIDE KEY MENU ITEMS THAT WE SERVE EVERY DAY AND WE WOULD NOT BE SUCCESSFUL WITHOUT THEIR PRODUCTS”
For nearly 80 years, Martin Foods has made a name in the protein industry by producing flavourful, custom-designed, value-added solutions.
We’re a family-owned company with humble roots, and we’ve proudly earned our place as an industry leader within the protein manufacturing supply chain.
Our history of quality, consistency and customer service began in 1944 and has grown to extraordinary heights using a blend of modern technology, a mind for creativity and innovation and good old-fashioned listening and comprehension skills.
That’s what Martin Foods is about, that is what friends are for.
We are proud to be Taco Cabana’s supplier partner for over the last 10 Years!
To find out more, visit www.martinfoods.com
2011 Silver Street • Houston, TX 77007-2811
Phone: 713-869-6191
have a reliable flow of goods into our restaurants, we are unable to properly serve our guests.”
Taco Cabana forms strategic partnerships with key suppliers
to build essential relationships. Armando explains, “I believe relationships are based on communication from top to bottom across the organisation, as well as laterally across different
“HAVING THE CORRECT PRODUCT AT THE AGREED PRICE ARRIVING ON TIME WHEN YOU NEED IT IS THE CORE OF ANY SUPPLY CHAIN”
departments. Working through your challenges together as a team is key. Supply chain is a relationship business. The stronger the bond with a supplier, the more valuable it will be in times of need. If you have built a close relationship, you will be in a better position if a crisis should happen.”
Cost is fundamental, but Armando emphasises the importance of having trust and accountability as far as a company’s partners are concerned. He elaborates, “Having the correct product at the agreed price arriving on time when you need it is the core of any
“THE STRONGER THE BOND WITH A SUPPLIER, THE MORE VALUABLE IT WILL BE IN TIMES OF NEED”
supply chain. We trust all of our supplier partners to deliver on this commitment and to be accountable for when it is not fully executed. It is also about striking a balance between cost and service to ultimately create value as a partner. Having creative thinking is a must otherwise you will be left behind.”
Four of Taco Cabana’s trusted partners include Martin Foods, KERRY, Taylor Farms and Deen Meat. Armando adds, “They provide key menu items that we serve every day and we would not be successful without their products. Between the four of them, they cover a very important section of our menu. They go above and beyond and really see the value in what we are doing. We enjoy very strong relationships with all of these partners.”
Armando says the company is planning an increased focus on digitalisation in the coming months. He continues, “Digitalisation plays a huge
role in real-time inventory, distribution, credit visibility and invoice auditing to name a few areas. We see opportunities for improvement by having complete visibility of these complementary functions. We are making digitalisation a priority for our future project roadmap.”
Sustainability is another pillar that Armando believes companies cannot afford to overlook. He explains, “We are constantly reviewing the innovations around packaging. Outside of the state of Texas, we are becoming more aware of the ever-changing laws when it comes to sustainable packaging. We know it is reality, and we may be a bit behind, but we are making efforts to prepare for franchising outside Texas because of our plans for growth. We are working on a number of exciting projects at the moment.”
So, what are Ulyses, Armando and their teams focusing on for the remainder of 2023? Ulyses answers, “Taco Cabana was a
“DIGITALISATION PLAYS A HUGE ROLE IN REAL-TIME INVENTORY, DISTRIBUTION, CREDIT VISIBILITY AND INVOICE AUDITING TO NAME A FEW AREAS”
A proud partner of
To learn more please scan
Deen Meat and Cooked Foods, a proud supplier partner of Taco Cabana Restaurants
Deen Meat & Cooked Foods produces high-quality and consistent products tailored to the needs of our customers. Since 1946, our reputation has been built on our family-oriented culture, commitment to food safety and exceptional customer service.
www.deenmeat.com
public company for many, many years prior to its acquisition 18 months ago. Going from a public to a private company requires a lot of heavy lifting. We started by completely rebuilding our San Antonio corporate headquarters to be ready to operate independently. It took some time, but we are now ready to grow organically, as well as in franchise form.
“On the organic growth side, we have confirmed two additional sites in Texas. Those two sites are going to be built under our new prototype while the company will continue to look for other sites. We are also building our franchise structure because we are planning to start our franchise programme later this year. In addition, we will continue with our same strategy to stay true to our Mexican-inspired roots.”
For further information on Taco Cabana, visit www.tacocabana.com
South Korean innovator THiRA Robotics launches next-gen autonomous mobile robots (AMRs) capable of working in previously impossible conditions.
The recent advancements in robotics and the roles the technology plays in supply chain, logistics and procurement are staggering – but there is still progress to be made when it comes to operation on adverse terrain. But a Korean company is looking to transform the market by providing smart factory solutions in tough facility conditions not previously fit for automation.
THiRA Robotics — a Korean autonomous mobile robots (AMR) developer and a subsidiary of smart factory solutions leader THiRA UTech –– has
announced their official launch in the US market. THiRA Robotics offers solutions to healthcare, manufacturing and supply chain industries to overcome physical barriers to technology adoption. Their launch coincided with ProMat 2023, held in Chicago, USA on March 20, 2023, which showcased their next-generation AMR unphased by hazardous or changeable conditions that current technology cannot handle.
“Some plants with poor conditions struggle to integrate AMR successfully. Now, older manufacturers don't need to remodel to integrate. With THiRA Robotics, robotisation is possible for facilities not fit for automation,” said Peter Kim, CEO of THiRA Robotics.
“Our next-generation technology improves existing solutions by offering real-life-ready logistics AMRs to handle imperfect floors
“UNLIKE CURRENT AMR MARKET OFFERINGS, CAN OPERATE ON DAMAGED FLOORS, TRAFFIC, LIQUID SPILLS, SLOPES, NARROW
and high traffic for US industries to solve labour shortages and other market gaps.”
Unlike current AMR market offerings, THiRA Robotics AMR can operate on damaged floors, changing surroundings, high traffic, liquid spills, slopes, narrow spaces and in elevators.
Specific features of their hardware include being able to navigate bumpy surfaces, drive stably on a 10 per cent incline with a load of up to 1000kg and deploy a hybrid algorithm that utilises both SLAM (Simultaneous Localization and Mapping) and Vision, ensuring autonomous driving adapts to changes in surroundings.
Headquartered in South Korea and led by AMR specialists, THiRA Robotics is an award-winning robotics developer subsidised by smart factory solutions company THiRA UTech. THiRA Robotics partners with global conglomerate Doosan, automotive parts company Hyundai Transys and the largest global original equipment manufacturer, Mando.
THiRA UTech is a global leader in smart facility hardware and software ranked number one in Korea for its end-to-end solutions. Global clients include Samsung Corporation, LG Electronics and SKC.
THiRA Robotics also offers an integrated control fleet management system (FMS) with a route planning algorithm and traffic control algorithm for controlling multiple robots. The platform collects data and gives users analysis, reporting and management tools.
Accelerating AMR innovation in South Korea's competitive market, which leads the world in automation, allowed THiRA Robotics to win all their current bids against established AMR makers. At ProMat, the company introduced five models and gave demonstrations of AMR operating on uneven and sloped flooring.
Early successful deployments of the AMR tech showed promising results.
“At the National Cancer Centre, the number one clinical research centre in Korea, our AMRs augmented hospital staff and piloted 24/7 patient and nurseassistance services. We streamlined factory processes for cosmetics conglomerate AmorePacific, where split warehousing and manufacturing facilities with complex traffic and high order volume slowed production,” said Kim.
To learn more about THiRA Robotics visit their website at thirarobotics.com
Jacques Pistorius (CSCP), Procurement Manager at Petra Diamonds Limited, with a vision of continuous improvement and a passion for supply chain, shares details of Petra Diamonds’ ongoing supply chain transformation journey.
London-listed diamond mining company, Petra Diamonds, owns and operates, among others, the Cullinan Diamond Mine, which has produced some of the most impressive stones in the world, with arguably its most famous being the diamonds of the British crown jewels. It has mines in both South Africa and Tanzania.
rocurement Manager, Jacques Pistorius, is responsible for leading and mentoring the procurement operational team, providing direct inbound supply chain support to mining operations, as well as Petra Diamonds’ head office and group support services. This involves driving the process, ensuring effective resource allocation, providing all operational procurement needs on a day-to-day basis and driving excellence in the optimisation of procurement. Jacques explains, “Our entire supply chain department is
broken up into sub-departments including transactional procurement, materials management, quality management and contracts/sourcing. All of these sub-departments are effectively resources in line with their relevant strategies feeding into the supply chain strategy as a whole. As a company, we have recognised the benefits of centralising supply chain services and, with the first phase now completed,
we are moving into considering digitalisation and automation. This will provide additional visibility and a key lever in unlocking efficiencies and standardisation across the operations to reduce cost-to serve operations.”
Jacques believes that visibility creates velocity and mentions that limited visibility was one of the key issues he and his team were keen to address in taking steps
to futureproof Petra Diamonds’ supply chain. Jacques says, “We are aligning different KPIs for contractors, which makes it easier to manage and onboard our suppliers. We have undertaken a complete procurement diagnostic, which assessed 11 components of our supply chain, mainly focused on procurement. The diagnostic provided an assessment of the strength of our supply chain, based on a
set of guiding principles. This then provided a roadmap for working towards the strategic intent and deliverables of procurement. From there, we were able to design a complete project plan to help us to reach our goal. We are in the process of updating our systems and sharing the information with all of our stakeholders to create a collaborative environment. The more information you make visible, the more velocity you have, so it is easier to react whilst ensuring more agile operations.”
As such, Petra Diamonds is leveraging a new contracts lifecycle management system across the group to make it easier to manage contracts linked to spend visibility. Jacques explains, “It gives notifications of
“Petra Diamonds is leveraging a new contracts lifecycle management system across the group to make it easier to manage contracts linked to spend visibility”
expiration dates, recommended actions and even manages your escalation. Some of the workloads involved in manual updates have been eliminated. We have also created a task team to report on our progress on a weekly basis.”
Jacques describes four stages of the supply chain transformation process:
He adds, “In the final stage, we look back at what we have done, whether it is still on track or requires improvement to meet the company’s needs. When we started, one of our constraints was the fact that our systems had been designed using a bespoke model. This has resulted in a tendency to create silos between the different systems, and difficulty in including people because of the barrier involved in training, or the lack thereof. Our task was to align our processes to make everything more streamlined.”
The company has simultaneously been driving a cultural shift. All employees have been given the opportunity to discuss what they think the company should be doing more of, and what Petra Diamonds should be doing less of. Jacques elaborates, “Some of the components of our Culture Code include how we address
communication breakdown, working in silos and ineffective systems. From a company perspective, this has allowed for some major changes in the direction in which we are now heading, particularly when we consider the integration of our new purpose statement: ‘Creating abundance from rarity.’”
Jacques believes it is important to partner with companies that share the same vision and partner selection is about becoming deliberate and aligned to a common purpose. He says, “Ultimately, you want to be associated with other companies that have similar values to you. South Africa is a country with lots
“Select PPE has implemented a vendor management solution to our PPE requirements that has resulted in easier management and control of our PPE needs, whilst complying with the necessary safety standards required”
of diversity and inequalities. Partners that will enhance your communities are key.”
Petra Diamonds partners with a few key stakeholders who actively participate in this shared ideology including Select PPE and Realyst. Jacques continues, “Select PPE is a company that provides our personal protective equipment. Select PPE has implemented a vendor management solution to our PPE requirements that has resulted in easier management and control of our PPE needs, whilst complying with the necessary safety standards required. They additionally went out to the different communities and partnered with individuals to educate them in essential
business skills. The idea is for that individual to then continue with a similar company and become a potential distributor.
“Realyst is our key partner when it comes to contract lifecycle management. They are a local South African service provider that specialises in contract lifecycle management. They provide our system called RealContract, which has enabled us to achieve automation and greater visibility in our contracting process. A great feature of the system is that it even drafts the contract for you, so you know you are using the most up-
to-date version of the bespoke template. It makes administration much easier because everything is in one tool. It also has some really good reporting functions and assists us greatly in increasing visibility and accessibility from a central repository.”
The rest of 2023 will see Petra Diamonds complete the full rollout of its procurement diagnostic roadmap. Jacques says, “We are looking into having a real-time KPI dashboard for our team, so you can immediately see where you are currently. We have done a benchmarking evaluation to
“Realyst is our key partner when it comes to contract lifecycle management. They are a local South African service provider that specialises in contract lifecycle management”
find out where other companies are in the market compared to us and to learn where we can make improvements. In terms of the procurement function, our continued focus will be to become more agile. We are also looking into cost management, strategic advisor capacity and supply assurance. In our guiding principles, procurement skills and talent management remain huge topics. What is our current skills level, and what can we do to upskill our workforce?”
Petra Diamonds is focused on using technology to enable the
company to perform better in the future. Jacques adds, “We have a full year ahead of us. It is about easier reporting that does not take a lot of time to dissect, without having to create things from scratch. We have made huge improvements in terms of our visibility over the last few months. In parallel, we will continue to work hard on maintaining key relationships with our stakeholders, so it is easier to respond to changes in the market going forward.”
For further information on Petra Diamonds, visit www.petradiamonds.com
Target will expand its supply chain sortation network to more than 15 facilities by 2026.
“Now more than ever, our guests rely on us to deliver their everyday essentials and Target favourites when they want and need them most”
Gretchen McCarthy, Target’s Chief Global Supply Chain & Logistics Officer
Target plans to invest $100 million to expand its supply chain sortation centre network to more than 15 facilities by the end of 2026, bringing next-day delivery service to more customers across major US markets.
Developing these specialised sortation centres and last-mile delivery capabilities is expected to lower costs while increasing capacity, simultaneously delivering orders faster and more efficiently.
Target currently has nine sortation centres in Colorado, Georgia, Illinois, Minnesota, Pennsylvania and Texas. With this $100m investment, Target plans to build at least six additional facilities and create hundreds of new jobs with market-leading wages in local metro areas.
These moves demonstrate the transformative power of the
company’s stores-as-hubs strategy, which leverages Target’s store network as a launchpad for online orders. Sortation centres represent the next phase, ensuring faster delivery for customers, saving shipping costs and fuelling long-term company growth.
“Now more than ever, our guests rely on us to deliver their everyday essentials and Target favourites when they want and need them most,” says Gretchen McCarthy, Target’s Chief Global Supply Chain & Logistics Officer.
“Through our sortation centres and Target Last Mile Delivery capabilities, we’re able to move faster and with more precision — while controlling costs and
expanding our network capacity — for years to come.”
In 2020 Target piloted its first sortation centre in Minneapolis, sorting online orders efficiently and quickly for delivery to local neighbourhoods by a third-party
carrier or Shipt delivery route, depending on which was the lowest-cost carrier option.
Doire Perot, Operations Director for the retailer’s Minneapolis sortation centre, has seen firsthand how her team, the facility and its operations have evolved over that time.
“We learned that we had to operate differently,” says Doire. “This type of building, the type of next-day delivery capabilities that we can offer to our guests and team, it was going to take a different operating model across every team involved.” But the ‘why’ behind the strategy has not changed, she says.
“There are three high-level goals that existed on day one and still hold true today: decreasing costs, increasing speed and increasing last-mile capacity,” says Doire. “Those three things are going to be the tune for the next several years as we continue bringing that vision to life.”
“We learned that we had to operate differently”
Doire Perot, operations director for the retailer’s Minneapolis sortation centre
Since opening its first sortation centre, Target has seen multiple benefits for the retailer and its customers.
For customers, it means receiving online purchases faster. The company’s sortation centres delivered 26 million packages in 2022 and up to 40% of Target Last Mile Delivery orders with Shipt arrived at customers’ doorsteps the next day. The company expects those numbers will increase with time and as the investment unfolds.
In partnership with Shipt, Target has expanded options for drivers to take advantage of larger routes where they can use higher-capacity vehicles that can hold up to eight times more packages per route. Tests are underway for third-party partnership delivery vans in two existing sortation centre markets. The plan is to
“There are three highlevel goals that existed on day one and still hold true today: decreasing costs, increasing speed and increasing last-mile capacity”
Doire Perot, Operations Director for the retailer’s Minneapolis sortation centre
roll them out to all markets in the next few years.
And for store team members, sortation centres not only simplify the fulfilment of online orders but also make operations stronger.
Each sortation centre team visits 30 to 40 local stores to pick up packages for delivery. With sortation logistics dedicated off site at sortation centres, stores have more room for picking and packing items for customer orders, says Richard Dean, Store Director
for the Target store in Edina, Minnesota, which is supported by the Minneapolis sortation centre.
It also boosts his team’s ability to pick and pack larger numbers of packages every year to serve customers.
“And that’s what we’re seeing — every year we continue to get better in the stores around the ability to execute,” Richard says. “Being able to simplify it within stores so that we can simply deliver on the guest needs is a huge win.”
Source: Target
INTERCONTINENTAL
LONDON - THE 02
23-25 MAY 2023
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Patrick Neptune, Vice President and General Manager at US Expediters Logistics Inc. explains how the company’s ethical values, strategic partnerships and focus on relationships are driving its growth.
FOUNDED IN 2015, US EXPEDITERS
IMPLEMENTS A HYBRID MODEL OF THIRD-PARTY LOGISTICS (3PL) SERVICES AND COMPANY ASSETS TO EMPOWER SHIPPERS BY LEVERAGING A COMBINED OFFERING.
t is a full-service transportation company that provides advanced and reliable supply chain solutions, without losing sight of its hard-earned reputation as a family firm that champions safety, diversity, innovation, values and customer service.
Illinois office US Expediters recently opened a second larger office in downtown Chicago, Illinois to accommodate its burgeoning number of staff. US Expediters is forecasting significant hires this year in multiple roles to accommodate this growth and customer needs.
Since it started, the business has grown to a fleet of more than 90 trucks. In addition to its Countryside,
Here to tell us more about their growth is Patrick Neptune, the Vice President
& General Managerwho
joined US Expediters in June 2021. Patrick was brought in to build a new sales arm for the company and a true 3PL division so the owner and President Milos Milutinovic could leverage more control over how his business was run and be nimbler to freight market fluctuations to further an intentional but organic growth phase.
Discussing the hive of activity at US Expediters, Patrick says, “A main priority currently is establishing a sales arm. We want to bring in dedicated freight for our 90-plus trucks, offer real-time solutions on expedited and spot markets and become valued long-term partners with our customers. We are in this for the long haul.”
Abbie Tantillo, the Director of Learning and Development, reinforces the same thoughts on growth and service, “At a time of major change and disruption in the industry, we are growing
“Communication, accountability and data sharing are all high on our priorities”
our sales team with many talented individuals to provide our customers with quality and value. We recognise that customers now more than ever are looking for dependable, trustworthy, transparent and experienced providers that can support them and deliver on their
“Our team is fully committed to delivering on our promises every day”
Abbie Tantillo, Director of Learning and Development
needs. Our team is fully committed to delivering on our promises every day to provide our customers with dedicated solutions and reliable service.”
“We are focused on not allowing silos to form between the assets side and the logistics side. We want all divisions to have a collective and cohesive environment. Communication, accountability and data sharing are all high on our priorities,” adds Patrick. “So are our ethics and values. We are always stressing to be transparent
and forthright no matter what the situation or who is on the phone. We want to continue to be a company people can trust.”
Patrick explains how Milos is leading the company with a vision, “He's trying to build a brand and product. He's just not in for the short term. He's in his mid-30s and expects to be in the industry for the next 20-plus years. He wants to build a legacy in addition to that brand and takes a lot of pride in everything that he does. This is so true with regards to the equipment he buys, with the
people he hires, with the logo he himself designed.”
Behind this vision is an experienced assets employee base, 70 per cent of whom are former drivers with more than 100 combined years of experience between them. This deep-seated understanding of the trucking and logistics industry means US Expediters can hire the right people but also retain them which is fundamental to the company’s continued growth.
Elaborating on the importance of first-hand experience among employees, Patricks says, “Myself and Milos have always valued the idea of diversity and people coming to the table with different ideas and backgrounds. We want to hire well, hire right the first time and hire people with diverse experiences and from diverse backgrounds. We welcome new ideas and organic growth. In addition to hiring well, we are focused equally on employee retention. We want employees to find a home here!”
“Milos has always prided himself on the idea that as we onboard
people to drive our trucks, he wants to make sure that their colleagues – whether that be the dispatchers, the HR team, the compliance officers or anyone affiliated with the asset side – have sat in similar shoes of the people they're hiring. Our employees know their woes, struggles and victories. It is so important to be relatable with today’s driver. Alex and Milan, two of our best dispatchers, are phenomenal in their roles and experiences. Our Human Resource and Compliance Officer Dani is the best in the industry! Dani’s industry knowledge and dedication to this company are unsurpassed – she has been instrumental in what we do.”
Patrick explains how the staff at US Expediters can empathise and sympathise with new hires, “It's about being able to tell people we know your concerns, we know what you're going through behind the wheel of an 18 wheeler and we know how to make sure you're compliant and ready for today’s load and challenges. It's a big deal to us to make sure that people feel supported professionally and personally.
“We want to hire well, hire right the first time and hire people with diverse experiences and from diverse backgrounds”
“We have had our share of drivers that initially leave, just because the grass is always greener. However, as a trucking company with over 8 years of experience, we have developed in-house programmes and procedures unique to our company, monthly bonuses and very competitive pay. As a result, over 80 per cent of the drivers that leave ask to come back. We take a lot of pride in that.”
But Patrick acknowledges that a company’s success stems not only from the strength of its internal resources but the resilience of its external relationships too. Forging strategic partnerships and securing the best technological solutions have been key to the
growth of US Expediters in the past eight years.
“For us to take the next leap forward in our business cycle we had to focus on technology and Revenova was a core part of that. We had vetted quite a few different transportation management service (TMS) providers before we took the leap. First, Salesforce is a very wellrespected name in the tech industry and as a CRM (customer relationship management) platform. Their reputation brings instant credibility. We also trust in the process of Salesforce. We feel the transportation sector is at the front of their priorities.
Here, Patrick highlights working with Salesforce Revenova.
✓ Tired of bouncing between application silos and disconnected tools to market, sell, service and settle loads?
✓ Need a TMS that supports multiple modes, currencies and languages?
✓ Want a digital engagement platform where co-workers collaborate in real-time along with customers and carriers?
✓ Prefer a TMS that adapts to your quote-to-cash processes quickly, seamlessly and affordably?
built for the global economy and delivered on world’s #1 cloud CRM platform-Salesforce.com Contact
• Increased Sales Velocity
• Improved Customer Relationships
• Streamlined Carrier Engagements
• Informed Decision Making
• Lower Cost of Ownership
www.revenova.com
So, as they grow and evolve, so will we. We are excited for the future!”
Another platform that has been crucial to US Expediters is Motive, their fleet management software. The ability to track assets and view electronic log data (ELD) provides immediate visibility, accountability, forecasting and ultimately credibility for their operations. And by prioritising compliance, US Expediters has earned and maintained a pristine safety record.
“Our record and relationships with our clients are paramount and
instrumental to our growth. We pride ourselves that when people source us for business through websites like Carrier 411, we have an impeccable record. We carry wonderful, highcoverage insurance. In addition, Milos keeps the fleet relevant with new trucks and trailers alongside the tech investment on the logistics side. This is a continuous reflection on us building a name, a brand, a service and a product,” says Patrick.
Abbie adds, “The company has invested in the systems and technology to enable our team to flourish and support customer needs. We are committed to giving
“For us to take the next leap forward in our business cycle we had to focus on technology and Revenova was a core part of that”
our team the tools they need to succeed in this environment, drive the company’s growth and continue to offer our customers a level of service that meets and exceeds their expectations.”
But what about the future?
Discussing the principal ambitions at US Expediters for the coming years, Patrick summarises, “We're trying to build a brand, a company and a lifestyle. Some of the things we are always asking are how do we serve our customers better? How do we attract new talent? How do we retain existing talent? What are our competitors doing? What are our customers’ pain points or major concerns? What can be
done to better today and position us for a better tomorrow?”
In the near future, US Expediters is focusing on growing their assets and establishing a bigger presence in the US south and southwest. Patrick continues, “Our long-term goal in the next three to five years is to take those 90 trucks and expand our fleet out to 250 to 300 while also building a state-of-the-art terminal and yard.”
Milos Milutinovic, the owner and President, adds, “The trucks themselves are key to our entry into certain markets and connecting with specific customers. The strength behind our growth of both the logistics side and the brokerage side is versatility and flexibility. We feel asset expansion is the key. So, we're constantly evaluating market conditions and pricing to decide when and how to invest.
“In addition, we also want to invest in a large surplus of trailers and
“The strength behind our growth of both the logistics side and the brokerage side is versatility and flexibility”
Milos Milutinovic
Owner and President
start establishing and working with customers on drop trailers and trailer swap pools.”
Patrick notes, “We're also evaluating if we want to open a terminal somewhere in the South. We're looking at states like Texas or elsewhere on the I-10 interstate corridor connecting the southwest and southeast because as populations continue to shift, the
corridor will become more integral to serving the public and their logistical needs.”
We look forward to seeing where Patrick, Milos and their colleagues go with this exciting chapter in their company’s journey.
For further information on US Expediters, visit their website at usexpeditersinc.com.
With a career in trucking and logistics spanning three decades, Patrick hails the tight-knit community at the heart of the industry.
“One place I still get a lot of information from is my colleagues at the company where it all began in August 1996 –American Backhaulers Inc. I've developed so many wonderful relationships with those former colleagues and beyond. I'm always amazed at how this industry rewards hardworking people.”
With the advent of social media in recent years, this community now has an online dynamic that Patrick celebrates:
“Just look at the community on LinkedIn. I love how everybody celebrates each other successes and supports each other.
“Logistics is such a small world and it really rewards hard work.
“It's about relationships: it’s about friends working with other friends.”
President and Chief Operating Senior Director of Procurement at Taco Cabana, share growth’s essential President and Chief Operating Senior Director of Procurement at Taco Cabana, share growth’s essential
Burdeshaw stumbled into supply chain after college and since has worked in the sector for more than 20 years. Today she joins us to discuss leadership, strategy, technology and starting her own company.
On her journey into the supply chain sector after completing higher education, Tara said, “There weren’t supply chain degrees then, so I received a business degree.” After graduating, her first industry experience was with Coca-Cola, Tara continues: “When I worked for the CocaCola company, I was the project manager for the procurement and inventory department for the fountain equipment division. It was then that I began to learn about supply chain. From there I started managing end-to-end
supply chain which included logistics, procurement, demand and supply planning, sales and operations planning (S&OP) and inventory management. I’ve worked in various industries and small to large-sized companies. I’ve managed wonderful teams and have had a great career.”
In 2021 you started your own supply chain company. Let’s talk more about Burdeshaw Supply Chain Solutions, LLC.
You have more than 20 years of experience as a leader in the supply chain industry: what factors compelled you to build something of your own?
I’ve always enjoyed helping companies get to the next level and I love the process
and working on process improvement projects. I wanted to go into consulting for years and finally decided to do it. I enjoy looking at the current state and putting together a robust scalable future state for companies.
Can you tell us about any exciting projects or partnerships you’ve had so far?
Wow, I’ve had so many great ones, it is hard to pick. I think one of my favourites, which was my first one was developing the S&OP process for a healthcare company. The client was fantastic and we worked together to build a process that helped them plan better and optimise their inventory. We were also able to increase the service levels for their customers. I couldn’t have asked for anything better for my first consulting project!
How have you found your first two years as an independent consultant?
The first two years have been fantastic. I have had, and do have, really great clients and have been really successful
ONE OF MY FAVOURITE WHICH WAS MY DEVELOPING THE FOR A HEALTHCARE
in helping them achieve their goals. It is fun and fast paced and I’ve worked on diverse projects, which I really enjoy. It allows me to be strategic, but also allows me to roll up my sleeves and get into the detail. So, I am doing everything from developing strategic roadmaps and analysis to putting together executive-level presentations, which is so much fun.
What have been some of the crucial learnings or takeaways that you’ve gleaned along the way?
Honestly, it can be tough being an independent consultant. You must juggle a lot of balls and constantly have a lot on your plate. The best learning I’ve had is to not be so hard on yourself. When you are doing a good job, praise yourself for your accomplishments and keep moving forward, learning and getting better each day.
How can supply chain leaders build high-performing teams to secure superior results and enhance their strategy execution?
First, it is all about people. A great team allows everyone to
be successful. So, I would say get to know your team on a personal and business level. Understand their personalities and what they like and don’t like. Also, understand their capabilities and where they are strong or may need a little help. You should look at each role and ensure the right person is in each of them. You may have someone spectacular
on your team, but they may be in the wrong role so rebalancing that is key.
Second, set SMART goals and common goals where everyone is working towards the same thing and identify clear expectations. Be transparent and communicate, communicate, communicate. But remember,
ONE AREA I’VE SEEN AN INCREASE IN IS DEMAND SENSING. DEMAND SENSING USES MACHINE LEARNING TO TAKE SUPPLY CHAIN DEMAND FORECASTING TO THE NEXT LEVEL
communication is a two-way street so your door should always be open. Give constructive feedback and let your team know it is okay for them to give feedback to you as well. I’ve learned so much from the feedback I’ve received from my teams over the years.
Lastly, ensure you are promoting when and where it is possible and encourage personal development. Your team should be rewarded for their hard work and given the chance to grow both personally and professionally.
Navigating change comes with opportunities and obstacles: what do you feel characterises effective and efficient change management?
I preach this all of the time. If you do not have effective change management, you will not succeed. In a corporate setting or as a consultant, change management should be at the forefront of your mind. The key is working with people. Don’t tell people what you are going to do, rather work with them to come up with the best possible solutions. Involve them as much as possible. Change is hard for all of us and it’s
important for the client to know they are being heard and you want their help. It is a joint effort. I always want clients to know how the change is going to help them, their team and their organisation. Communicate, be transparent and build a partnership with your client.
What roles will AI and technology play in supply chain planning in the coming years?
I’m already starting to see it because I do a lot of planning projects. I think Covid really brought to light the need for planning and inventory optimisation. Most of my clients have either been in Excel and want to implement a software solution for planning or they are using software for planning, but it is not meeting their needs.
One area I’ve seen an increase in is demand sensing. Demand sensing uses machine learning to take supply chain demand forecasting to the next level. Demand sensing is a combination of methodology and technology to predict nearfuture demand based on shortterm data. It uses daily and even hourly data. It can help companies make decisions more quickly and
pivot when needed. It increases forecast accuracy and helps optimise inventory. More and more companies need realtime data vs relying on what happened a year or two ago.
There has been a lot of back and forth recently as to whether the US is in a recession or not. Rather than dwell on the negative connotations of economic downturn, how do you think leaders and colleagues in the supply chain sector can proactively analyse, adapt and lean into what might be on the cards in the coming months or years?
In a recession or not, supply chain has come full circle in terms of being visible. I think now more than ever the importance of supply chain is top of mind in organisations and particularly at the executive level where before it was not as much. So, I would continue to promote the criticality of supply chain, network with colleagues and understand what they are seeing and how they are responding. Learn from each other and continue to push supply chain further. There are always ways to improve and we as supply chain leaders should
be thinking about that every day and pushing forward with new ways of doing and thinking.
In your experience, what roles can inventory optimisation play in driving bottom-line growth in the P&L?
Inventory optimisation plays a huge role in driving bottom-line growth. It is so important, but it is often overlooked or not managed properly. Reducing your cost of goods sold can have a significant impact on your profitability. The better your turns, the better your cash flow.
With optimised inventory, you will have better service levels to your customers, which means customers will buy from you again and won’t switch brands because you are consistently out of stock. So, it is a positive revenue impact. If your inventory is optimised, you won’t have the expense of potentially expediting freight or air freighting, which is very costly.
Lastly, with optimised inventory, you will lessen the amount of slow and obsolete (SLOB) inventory, so you will have fewer write-offs, which affects your balance sheet
and income statement. There are so many ways this impacts the bottom line, but these are a few.
I want to continue consulting and working with great clients. There is a lot of opportunity on the private equity (PE) side. I would love to develop partnerships with some PE firms and help them as they acquire businesses. I could help on the supply chain side, creating process improvements and creating cost savings initiatives. I also provide staff augmentation services, which can be beneficial here as well.
Tara looks forward to networking events with industry professionals and higher education institutions…
Connect with Tara
“I am working with a few companies now to do roundtables and speak at conferences this year. I generally do two-three per year and I really enjoy meeting new people and learning about them and what they do. I also was asked to be an advisor for a university and help them build their Supply chain program, so I’m really excited about that. And, Gartner has just come out with a Peer Community forum and I am an ambassador, so that will be a great way to contribute ideas and ask fellow supply chainers’ questions.”
Volkswagen plans to invest in mines to bring down the cost of battery cells, meet half of its own demand and sell to thirdparty customers, the carmaker’s board member in charge of technology said.
Photos © Volkswagen AG
ITS STRATEGY ALIGNS WITH A WIDER TREND OF CARMAKERS SEEKING GREATER CONTROL OVER PARTS OF THE SUPPLY CHAIN TRADITIONALLY LEFT TO THIRD PARTIES, FROM ENERGY GENERATION TO RAW MATERIAL SOURCING, AS THEY COMPETE FOR THE SCARCE RESOURCES THEY URGENTLY NEED TO MEET ELECTRIFICATION TARGETS. urope’s biggest carmaker wants its battery unit PowerCo to become a global battery supplier, as well as meet half its own demand with plants mostly in Europe and North America, Thomas Schmall told Reuters in an interview.
PowerCo will start by delivering cells to Ford for the 1.2 million vehicles the US carmaker is building in Europe on Volkswagen’s electric MEB platform, Schmall said. “The bottleneck for raw materials is mining capacity – that’s why we need to invest in mines directly,” he said.
“POWERCO, SET UP LAST YEAR, IS TARGETING OVER €20 BILLION ($21.22 BILLION) IN ANNUAL SALES BY 2030”
From left to right: Wayne Griffiths, CEO of SEAT and CUPRA, Felipe VI., His Majesty the King of Spain © Volkswagen AG
The carmaker was partnering on supply deals with mining companies in Canada, where it will build its first North American battery plant.
Such partnerships guaranteeing finance can cut years off mine development times for junior miners, John Meyer, senior analyst at boutique investment bank SP Angel, said.
Schmall declined to comment on further locations under consideration or when Volkswagen might invest directly in mines until the market was more settled.
“In future, there will be a select number of battery standards. Through our large volume and third-party sales business, we want to be one of those standards,” he said.
Acquiring batteries at a reasonable cost is a challenge for carmakers like Volkswagen, Tesla and Stellantis looking to make electric vehicles (EVs) affordable.
Only Tesla has pledged more investment into battery production than Volkswagen, a Reuters analysis showed –
though even the US EV maker is struggling to ramp up production and is recruiting Asian suppliers to help.
Few carmakers have disclosed direct stakes in mines, but many have struck deals with producers to source lithium, nickel and cobalt and pass them onto their battery suppliers.
Future PowerCo battery cell factory in Sagunto near Valencia, Spain © Volkswagen AG
“PRODUCTION WILL START IN 2025 AT POWERCO’S PLANT IN SALZGITTER, GERMANY, 2026 IN VALENCIA, SPAIN, AND 2027 IN ONTARIO, CANADA”
Securing those resources in time, close to refineries and from places outside of China is key to winning the battery race, Geordie Wilkes of the UCL Insitute for Sustainable Resources said.
PowerCo, set up last year, is targeting over €20 billion ($21.22 billion) in annual sales by 2030.
It is an ambitious roadmap for a unit not yet producing at scale. Production will start in 2025 at PowerCo’s plant in Salzgitter, Germany, 2026 in Valencia, Spain, and 2027 in Ontario, Canada.
Still, Schmall is confident the carmaker can expand quickly – and must do so if it wants to build an affordable EV, in which 40% of the costs come from the battery. Volkswagen released on March 16, 2023, the details of a 25,000-euro EV it aims to sell in Europe from 2025.
China’s BYD, which also produces batteries, is far ahead of Volkswagen in the affordable EV race and outsold the German carmaker for the second time in four months in China in February.
Half the staff at Volkswagen’s PowerCo are industry veterans
from Asia, where producers like CATL, LG Chem and Samsung SDI dominate global cell production.
In Volkswagen’s 180-billion-euro five year spending plan, up to €15 billion is earmarked for its three
announced battery plants and some raw material sourcing.
The carmaker has so far nailed down raw material supply until 2026 and will decide in the next few months how to meet its demand from then on, Schmall said in the interview.
It has also ordered some €13 billion in batteries from Northvolt’s Swedish plant.
“Bringing down battery costs further is a challenge,” Schmall said. “We’re using all the instruments with PowerCo.”
D.5 Pro Performance © Volkswagen AG
Source: Reuters Schmall
TO BENCHMARK YOUR STRATEGY
24 - 25 May 2023
Sydney Harbour Marriott at Circular Quay
Quote "CHAINMAGAUS15" for 15% Off Tickets
Learn more: Connect with leaders from top brands:
Day 1 – 24 May 2023
Delivering Excellence In A Volatile Economic Environment
Morning Plenary
Overcoming Adversity & Seizing Opportunities
Navigating Supply Chain Disruptions
Driving Local Partnerships
Amplifying Reach, Relevance & Enterprise-Wide Impact
Day 2 – 25 May 2023
Afternoon Tracks
Track A: Capitalising on Procurement Digitalisation
Track B: Contract Management
Track C: Ensuring Ethical Procurement
Afternoon Plenary
Mastering Supply Chain Risk
Mitigation
Supply Chain Talent Shortage –
A Gap or A Crisis?
Charting Procurement's Course To A Better Future
Morning Plenary
Future Outlook on Procurement
Delivering on ESG & Sustainability Goals
Strengthening Diversity & Inclusion
Driving Success in Uncertain Times
Big Ideas Keynote: Magic of the Mind
Afternoon Tracks
Track A: Fortifying Your Supply Chain
Track B: Magic and Mind
Coaching Synergy Work
Afternoon Plenary
Improving Supplier Risk
Mastering Smart Negotiations
Balancing Sustainability
Initiatives & Costs
ProcureCon Wrap-Up: Crystal
Ball Outlook
t is owned by KDDI, a Japanese Fortune 500 company which is one of the top ten telecommunications companies in the world. Telehouse has more than 45 data centres in over 24 cities – including such key locations as London, Frankfurt, Paris and Marseilles.
Representing Telehouse France, a subsidiary of Telehouse Europe,
and here to tell us more about the company’s procurement, technological, environmental and security strategies is Hanane Pelissier, their Head of Procurement and Financial Control.
With more than 16 years of experience in the industry, Hanane is a procurement and financial management expert. She specialises in project organisation
and management, performance monitoring and improvement, transformation and change management. Recognised for her emotional intelligence, rigour, leadership and agility she is a business partner and a growth enabler at Telehouse who steers the organisation's trajectory with engaging leadership while developing a growth strategy that combines economic performance, resilience and sustainable development.
When asked to describe the company’s services, Hanane says, “Telehouse France is a leading provider of data centre services in France. We operate five carrier-neutral data centres, offering a wide range of services designed to meet the needs of businesses of all sizes looking for secure, reliable, resilient and scalable data centre solutions.”
Telehouse offers a different range of colocation options including
Shared Facilities Management (SFM), from half-rack to full modules, which has been developed for clients with space requirements that are likely to change over time. They also offer Dedicated Facilities Management (DFM). Dedicated suites provide the confidentiality and security required for certain critical activities. All of their facilities are equipped with state-of-the-art security systems including biometric access control, CCTV surveillance and 24/7 security staff on site.
“In addition to colocation services, Telehouse France also offers a range of managed IT solutions including connectivity, security and network services,” Hanane continues.
“We pride ourselves on the quality of our services. Telehouse is committed to upholding the highest environmental, security and corporate social responsibility standards. This is reflected through our various ISO-obtained certifications, including ISO 9001 for Quality Management System, ISO 27001, HDS and PCI DSS for Information Security and Business Continuity. Telehouse has a proven record of meeting the highest international data centre standards, so we have the full scope requested for data centres in order to operate correctly.”
When asked what sets the company apart, Hanane
identifies four key factors, “Telehouse is well regarded in the industry for their connectivity, reliability, security and flexibility. We are trusted partners for companies in the business world looking to scale their IT operations, connect their business and stay competitive in an increasingly digital marketplace.”
“I'm a member of the Executive Committee and responsible for leading finance controlling and procurement functions on our different sites. I make sure we are developing and driving the implementation of finance and procurement strategies to sustain transformation and growth at Telehouse,” she says.
Telehouse sees procurement strategy as a roadmap to be implemented and ultimately make the business more competitive in its markets. For them, it defines how an organisation runs its procurement function, provides a governance framework and gives direction for the way the organisation intends to conduct its procurement function and activities.
Hanane elaborates, “Our procurement strategy reflects our
“OUR PROCUREMENT STRATEGY REFLECTS OUR ORGANISATION’S VISION AND GOALS TO SUPPORT TELEHOUSE’S PRIMARY OBJECTIVES AND BUSINESS STRATEGY”
organisation’s vision and goals to support Telehouse’s primary objectives and business strategy. Our procurement strategy is based on five key points: cost optimisation, supplier management, risk management, compliance and strategic sourcing. We aim to build strategic relationships with competitive suppliers so we can acquire necessary goods and services of the best quality, within a specific cost range and ensure they are delivered on time. As a global provider of data centres, Telehouse’s procurement strategy is designed to support the company’s growth and success. It focuses on ensuring that Telehouse can secure the goods
and services needed to operate efficiently, effectively, securely and affordably.”
Technology and digitalisation are crucial to this strategy. “Digitalisation plays a transformative role in procurement and in finance, it is reinventing these two functions,” says Hanane.
“By leveraging digital technology, we streamline our procurement and financial operations to reduce costs and improve efficiency and accuracy. By digitalising procurement, we can address current challenges and stay future proof. We have been on a journey towards digitalisation of our procureto-pay (P2P) process for several years now. This has helped us to automate some mundane tasks, accelerate purchase approval workflow, streamline certain transactions, reduce costs and processing times, mitigate the risk of error in banking transactions, free up data and improve expenses control alongside budget monitoring. Taken together, these advantages contribute to improving the technological, economic and also logistical performance of our department.
“So today and in alignment with our current business model, we are investing in new digitalisation projects as we consider it to be crucial for the success of our business.”
Underlying their digitalisation and procurement strategies, Telehouse is always looking to improve efficiency and thereby drive growth. For instance in cost optimisation, Hanane explains, “Telehouse aims to optimise costs across all areas of our procurement operations while paying particular attention to the quality. We identify opportunities in all purchasing categories by considering total cost of ownership (TCO) when analysing offers, negotiating multi-year agreements, leveraging automation and digital technology and optimising our process. We also implement short-term initiatives allowing quick wins, such as reviewing and monitoring current contracts terms, challenging technical specifications, avoiding maverick spending and challenging uncompetitive suppliers.”
“TELEHOUSE AIMS TO OPTIMISE COSTS ACROSS ALL AREAS OF OUR PROCUREMENT OPERATIONS WHILE PAYING PARTICULAR ATTENTION TO THE QUALITY”
Telehouse considers risk management a critical and continuous process. Appropriate risk assessments are undertaken, reviewed and managed throughout the procurement journey, so the company built a robust risk management framework to mitigate the risks associated with procurement and finance. This includes identifying potential risks, developing contingency plans and implementing measures to monitor and mitigate these different threats.
In terms of supplier management, Telehouse maintains a strong and close relationship with key partners in order to ensure that they meet company standards for quality, reliability and security.
extension of the wider Telehouse team. We need the best
“We care deeply about delivering the best overall value and service to our customers and society. Partnerships with our suppliers are an integral part of this goal, because we consider our suppliers as a seamless
partners by our side to overcome obstacles, embrace opportunities and build an exciting future. As such, we developed performance matrixes to monitor our partner compliance while also developing a robust system of analysis of our partners’ performance. We are very careful when selecting and shortlisting providers before going to do business with them because our vision for procurement at Telehouse is to become the primary customer for the best suppliers,” summarises Hanane.
One such supplier that Telehouse works with is Ribbon Communications.
“Ribbon Communications is one of our key partners for the Telehouse Metroconnect service,” says Hanane. “Telehouse selected them as a partner after a full market assessment. The high-performance solutions they offer convinced us to go ahead with them for our strategic connectivity projects. They are a global provider of real-time communications software and IP optical networking solutions.
“In fact, before choosing them we looked for a partner offering a high level of security and operational excellence because we must have these conditions to connect our Parisian sites, which
“RIBBON COMMUNICATIONS IS ONE OF OUR KEY PARTNERS FOR THE TELEHOUSE METROCONNECT SERVICE”
Imagine that the world relied on one giant data centre with all the zettabytes of application and storage data whizzing about between servers over an area of only several tens of square kilometres. Located at the Nor th Pole for cooling, powered by several nuclear plants and linked to the world’s telecommunications networks using optical fibres strung along the lines of longitude, this might be considered the height of efficiency
Of course this vision is impractical for reasons of latency, data redundancy and competition between businesses. The result is that the world today suppor ts about 8,000 data centres. The challenge then becomes to network these data centres together, to make them transparent to each other, for caching data locally to reduce latency, interworking between applications and mirroring data for business continuity This requires many thousands of high speed optical links spanning distances from tens to thousands of kilometres. And every year inter-data centre traffic demands keep growing.
Ribbon’s solution to this challenge is a revolutionary optical transpor t platform, Apollo OT9408.
Optimised for data centre residency with front to back airflow and a 600 depth, OT9408 suppor ts more traffic over fewer wavelengths while d lowering the cost per bit . It does this by delivering:
• Best Wavelength Reach – To transpor t multiples of 100GbE, 400Gb future 800GbE client traffic, OT9408 exploits next gene transceiver technology to deliver industry-leading 1.2T haul, 800G wavelengths that cover the entire metro-regional space, tripling the reach of current competitor solutions, and 400G for ult
• Industry-leading Density – OT9408 suppor ts industry-highest 19.2 in a 2RU form factor.
• Best Power Efficiency – With consumption as low as 0.11W per gigabit, OT9408 consumes 50% less power per bit than competitive solutions. This green characteristic is especially impor tant to reduce data centre energy costs.
• Optimal Spectrum Use – OT9408’s high performance 1.2T solution uses 150GHz spectral bandwidth that aligns with the 75GHz bandwidth needs of its cost-power optimised 400G solution. This enables multiple solutions to co-exist on a single fibre without any wasted spectrum.
• Advanced Pluggability – OT9408 uses pluggable technologies for all client and line interfaces, enabling pay-as-you-grow economics and facilitating field maintenance.
• Superior Openness – OT9408 is designed for easy operation, including field replaceable modules and streaming telemetry. Moreover, its wavelengths can be deployed over existing line systems as alien wavelengths, with control exercised in a disaggregated fashion using standard OpenConfig interfaces. Its 400G wavelengths also suppor t OpenROADM interoperability.
Contact Ribbon now to see how Apollo OT9408 can enhance your data centre interconnect solution. rbbn.com
are a crucial connectivity hub in France providing direct access to more than 750 global operators.
“Ribbon offered us advanced technology capability with a turnkey custom installation of their solution. So, thanks to this strategic partnership, we successfully offer our corporate customers the ability to optimise their costs by hosting their IT infrastructure in our Telehouse 3 campus and benefit from highspeed, reliable and low latency connectivity with our central connectivity hub in Paris TH2
Voltaire site which is one of the five most connected data centres in the world.
“In fact, thanks to Ribbon and our strategic partnership, we have been able to break down data centre walls to help more customers benefit from our connectivity.”
However, IT infrastructure needs the right facility to host it, and here Telehouse works closely with Cap Ingelec – one of the leading French data centre design and construction companies.
Cap Ingelec is one of the French leaders in engineering, thanks to its know-how in the design and construction of technical buildings, particul arly in the fields of datacentres, cleanrooms and critical facilities. We offer our engineering expertise through project management and turnkey projects.
“We rely on their know-how to support our engineers and help them progress on our various expansion projects and plans. This includes, among others, our new project in Telehouse 3 campus, while also respecting our expectations and requirements in terms of reducing our carbon footprint,” says Hanane.
“Cap Ingelec are committed to our objective of implementing
But even the fastest, most reliable technological solutions hosted in the latest state-of-the-art data centres still need one fundamental resource to function: energy. For Telehouse, it is vital that this energy be as sustainable as possible.
Since 2015, Engie has been the energy provider for Telehouse. Commenting on this eight-year partnership, Hanane lauds
innovative solutions and designs, optimising our CapEx costs and reducing our time-to-market. These advantages represent a real competitive differentiator in our business. With Cap Ingelec we introduced a new contractual model guaranteed maximum price contract (GMP), an openbook agreement. Thanks to this new contract model, we work with full transparency and confidence with Cap Ingelec – allowing us to move forward quickly, to unite our forces and skills to face market challenges, all while controlling our costs and deadlines.”
the connection between the companies, “We have a longterm relationship with Engie. They provide all our data centres with green electricity. Our partnership is based on proximity, listening, responsiveness, expertise and trust. Our objective in working with them is to consume less and better.
“So even with the recent situation in the energy market with high costs and volatility which strained international European governments and companies, our energy procurement strategy and
“CAP INGELEC ARE COMMITTED TO OUR OBJECTIVE OF IMPLEMENTING INNOVATIVE SOLUTIONS AND DESIGNS, OPTIMISING OUR CAPEX COSTS AND REDUCING OUR TIME-TO-MARKET”
our strong relationship with Engie allowed us to control our energy costs,” says Hanane.
Telehouse is highly aware of the environmental impact of data centres and the huge volume of energy consumption they need to operate.
“According to an international energy agency, data centres use nearly one per cent of the global electricity demand and contribute to 0.3 per cent of all global CO2 emissions,” explains Hanane. “So in this context, Telehouse is always on the lookout for any opportunity to reduce our energy consumption and environmental impact. We have present and future projects brimming with innovative solutions allowing a considerable reduction in our consumption. We are committed to a serious environmental plan, including the development of a photovoltaic park, engagement in PPA contracts
and using excess waste heat from data centres recycled for use in nearby houses, businesses, or communities.”
So what are the principal ambitions at Telehouse for 2023 and beyond?
Besides maintaining growth and success, Hanane draws attention to their exciting ground-breaking expansion project in the Paris area which will become their main campus.
“Our new TH3 campus is a hyper-scale data centre facility with an environmentally responsible design that reconciles environmental impacts and energy performance, integrating new technology while also offering a high level of scalability. We are targeting a PUE (Power Usage Effectiveness) of 1.3 and a
“WE HAVE A LONG-TERM RELATIONSHIP WITH ENGIE. OUR PARTNERSHIP IS BASED ON PROXIMITY, LISTENING, RESPONSIVENESS, EXPERTISE AND TRUST. OUR OBJECTIVE IN WORKING WITH THEM IS TO CONSUME LESS AND BETTER”
ENGIE has been Telehouse’s energy supplier-advisor since 2015, providing green electricity for all its data centres.
ENGIE teams offer businesses and local authorities:
• Close relationships, expertise and customer focus via a team of two dedicated contacts
• Energy budget management expertise
• Eco-friendly solutions
As standard-setters in low-carbon energy, ENGIE works tirelessly with customers to accelerate their transition to a more sustainable world.
WUE (Water
close to 0,” Hanane describes.
“These goals are ambitious, but we are excited to be focusing on this new data centre. Located 15.5 miles southwest of Paris, the TH3 campus is strategically located. Easily accessible from the capital, the TH3 campus allows companies and organisations to keep control of their data and retain sole access. At the right distance from the many data centres concentrated northeast of Paris, away from possible risks, TH3 is the ideal campus to provide redundancy for the IT infrastructures hosted there, as part of a strategy for diversifying sites.”
The TH3 campus is not only ambitious in terms of its sustainability but also its sheer scale and security goals. Hanane elaborates, “The project is made up of five new buildings for a total IT space of 12,000 square metres. This is an exceptional size facility in the French market, making it a kind of hyper-scale data centre where our customers can expand without any limits in terms of physical space or energy needs. The new data centre has a total power of 18 megawatts.
“Moreover, the site is secured to military defence levels. The data centre is being installed on a former military site building offering exceptional security and technical specification to guarantee continuity of service for our customers. Of course, there are standard CCTV and security measures in place but we also provide constant surveillance from dedicated staff 24/7. We have a clear focus on security.”
With these exciting developments in the near future, Telehouse prides
TH3
itself on how it looks after its staff during times of change and growth.
“Two topics, I think, are crucial for our business success are developing team skills and retaining talent,” says Hanane. “It's especially important for me as a manager in my procurement and financial
functions. We believe categorically that developing team skills and retaining talented employees are critical components for our success. By investing in these areas, we can improve productivity, foster innovation, boost morale and reduce staff turnover and, of course, enhance customer services,
“THE TH3 CAMPUS IS NOT ONLY AMBITIOUS IN TERMS OF ITS SUSTAINABILITY BUT ALSO ITS SHEER SCALE AND SECURITY GOALS”
NOS for the Cloud) ta es this disagg egation and ability one step fur ther. Now proven at scale in the world’s largest cloud networks, SONiC is built around a containerized architecture and uses containerized applications, linking them quickly across the network, using a common language and standards-based APIs to deploy network applications on any hardware.
At Ribbon we see the datacentre as the logical extension of telecoms solutions for enterprises. We have extended our por tfolio of disaggregated IP routers to provide the NPT 2032, an IP CLOS Data Center switch. The NPT 2032 uses cer tified ODM whitebox hardware, industry leading merchant silicon and Ribbon’s commercial pure SONiC distribution. And with 20 years exper tise in IP routing deployments across the world, Ribbon provides the 24/7/365 suppor t our customers need.
because ultimately Telehouse is a highly customer-centric company.”
We look forward to seeing where Telehouse goes and hearing all
about its new Parisian facility when it opens.
For more information, visit www.telehouse.fr
For Hanane, at a personal level, her children and family are a true source of energy and purpose. She insists, “There is no success without your loved ones around you.”
Hanane also emphasises her gratitude to her mentors. “For me, I value the input from my mentors who inspire me enormously and who allow me to always see bigger, farther and more positively. They make even the most challenging circumstances seem a little bit easier.”
But for Hanane it is not only the mentors we know that are important, but the input of strangers is also incredibly insightful too.
“Today, thanks to interconnectivity we have access to a wealth of information. We can follow intellectuals online, absorb new information, discover new challenges and innovations –which is a great privilege. But the one thing I’ll note is that we must
also be careful because too much information can kill communication.”
“I'm excited to be joining several different conferences this year where I look forward to participating, adding some value when possible, exchanging knowledge with different people and seeking opportunities to grow as a professional.”
Hanane has written an article due for publication soon about the criteria of choice for providers and their procurement process which will be dedicated to the new technology sector.
To connect with Hanane and see her article when it is released, you can find her on LinkedIn.
