CHAIN - Eighth Edition

CAROLINE CIOE

SAP's Vice President of Sales, Digital Supply Chain, charts her company’s impressive supply chain transformation journey.

Rudy Paniagua on the future of supply chains

ith Christmas around the corner, we are excited to present our December editon of CHAIN. The festivities are in full swing here at iThink Media – think shiny tinsel, stings of fairy lights, and delicious Christmas treats!

For your final instalment of 2022, we have six exclusive interviews designed to both entertain and inspire. On the cover this issue, we give you Caroline Cioe, Vice President of Sales, Digital Supply Chain, at SAP North America (p6). Caroline charts her company’s impressive supply chain transformation journey, with a distinct focus on sustainability.

We also talk to Randy Drenth, Head of Logistics at Swisscom (p36), and Rudy Paniagua, President at Panasonic Logistics Solutions of America (p54). It was fascinating to hear the experiences of two such respected and knowledgeable supply chain professionals.

Plus, we discuss the disruption of the shipping industry with Shippeo’s Lucien Besse (p90), as well as maritime technology innovations with ASENAV’s Germán Schacht and Ricardo Contreras (p118)… What a line-up!

But that’s not all… Check out our features on vertical farming (p28), augmented reality (p66), and the future of mining supply chains (p108) for further food for thought.

That just leaves us to wish you a very happy Christmas! With very best wishes from myself and all the CHAIN team.

Caroline Cioe

Randy Drenth

Wilbert Baerwaldt

Lucien Besse

Rudy Paniagua

The Future of Sus Supply Chain

Caroline Cioe, Vice President of Sales, Digital Supply Chain, at SAP North America, charts her company’s impressive supply chain transformation journey.

Sustainable Chains

his was seen in the form of offshoring manufacturing to low-cost regions, identifying lowest cost suppliers, initiating just-in-time strategies, and more. And then the world changed. The global pandemic, lockdowns, natural disasters, and wars have made companies realise just how vulnerable supply chains have become due to risk and disruptions. Now, supply chain management is about how to balance cost and efficiency whilst alleviating that risk and incorporating sustainability and just-in-case strategies.

According to SAP, we need to rethink how we build supply chains to design risk right out of them whilst embedding sustainability into them. Caroline Cioe, Vice President of Sales, Digital Supply Chain, at SAP North

America, explains, “Disruption causes an imbalance in the system, so we are now pushing to get more balance in the supply chain. Technology can help, especially in connecting the networks together. If you are doing things manually, it is really difficult to connect the extended supply chains. Technology is the only way to get visibility deep into the supply chain.”

So, how can organisations capitalise on intelligent technologies to make them smarter and more profitable?

Caroline answers, “As the cost of IOT-enabled sensors has come down, we are seeing more and more smart products and assets across the supply chain. This has enabled access to an unparalleled amount of information about how the supply chain is performing. There is a huge

For decades, supply chains were considered a cost centre, and managing them focused on minimising costs and maximising efficiency.

opportunity to leverage machine learning (ML) and artificial intelligence (AI) to take this IOT-based data from people, devices, assets, products, and vehicles across the supply chain to automate decisions and processes.

“Meanwhile, predictive analytics empower employees to make more informed, real-time decisions, and drive new business models. Technology is also helping alleviate worker shortages and improve retention by improving the

productivity and decision making of existing employees, and attracting new talent with state-of-the-art tools.”

In the past, predictions were made based on historical facts. Today, we can use other types of information to understand what is coming. For example, we can look at correlations between outside factors such as economic indicators, events in the commercial real estate world, as well as political events, and use the

technology to better predict what is going to happen in the future.

Caroline believes that predictive analytics are key to any supply chain strategy in the modern day. Other key enablers include probabilistic planning, optimisation, visibility and collaboration. Caroline continues, “Having a platform that connects to other suppliers, contract manufacturers, logistics service providers and trading partners outside the four walls of

“Humans and machines can collaborate effectively together. Where we can automate, we should do so, but you still need the intelligence of people to make it work”

Caroline Cioe, Vice President of Sales, Digital Supply Chain

your organisation creates a control tower environment, allowing you to see deeper into your supply chain. Being able to use all the available data to make decisions is a huge advantage. It is critical to expand this visibility and collaboration across the multi-tiered supply chain, from raw materials supplier to the end customer.”

From smart factories featuring 5G, greater connectivity and enhanced

“If we are able to predict when something could go wrong, businesses can benefit from finding a resolution quicker and more efficiently”

AI solutions, to smart products and assets across the supply chain, Industry 4.0 has a lot to offer companies that have invested in these technologies. Caroline says, “We have seen companies using Industry 4.0 within their factories, and are increasingly seeing this expand across the supply chain of smart assets, and into the hands of consumers and customers leveraging the smart products and devices it enables. When you

have an asset that sits deep into the supply chain, you are able to capture the data in real time and get the data to the c-level suite to make a decision. This helps decision makers to make better decisions faster. If we are able to predict when something could go wrong, businesses can benefit from finding a resolution quicker and more efficiently.”

As the degree of automation increases, it frees up the workforce from repetitive tasks, and allows them to focus on more complex problems and decisions that require human interactions. But, will humans ultimately be replaced by machines? Caroline answers, “Humans and machines can collaborate effectively together. Where we can automate, we should do so, but you still need the intelligence of people to make it work. I would rather see humans than machines making strategic decisions. In many environments, you can let the automation run for 80 per cent, and then the remaining 20 per cent is where the human element should step in.”

SAP’s approach is to build an ecosystem of trusted partners to enable its customers to get the value as quickly as possible. Caroline explains, “A lot of SAP solutions provide an industry template, but there are certain

things that make a company unique, so our partners use technology to tailor the solution to make it more bespoke to that company. Trusting your partners, enabling transparency and having openness allow you to get the information you need. SAP is all about creating networks that let you share information from deep inside the supply chain. For example, when there is disruption in the supply chain, real-time information is communicated, allowing executive decisions to be made immediately.”

Caroline says there is no alternative these days but to leverage technology in order to become more agile and risk-resilient. She explains, “Technology enables organisations to gain a competitive edge. Companies using technology will leapfrog those that are not doing so. A strong ecosystem with transparency and visibility enables a company to react faster, get products out to market quicker, and solve any potential

disruptions faster than if they were to try to do it manually.”

SAP’s ecosystem of partners bring solutions that extend SAP’s functionality to create more of a holistic approach. SAP successfully partners with a range of professional service entities, from large SI’s like Accenture, Deloitte and Ernst Young, to boutique partners like Westernacher, MSCG and ArchLynk.

Speaking of future trends likely to impact supply chains everywhere, Caroline highlights sustainability as a major topic of board rooms around the world. She says, “We are now seeing that most companies have sustainability as part of their corporate strategy or mission statement, but many are still struggling when it comes to how to track, monitor and measure key performance indicators across often global and complex supply

“SAP successfully partners with a range of professional service entities, from large SI’s like Accenture, Deloitte and Ernst Young, to boutique partners like Westernacher, MSCG and ArchLynk”

THE

ABOUT KRYPT

WHO WE ARE

A s a b o u t i q u e g l o b a l c o n s u l t i n g c o m p a n y , K r y p t o f f e r s t h e d i s t i n c t a d v a n t a g e o f s p e c i a l i s e d e x p e r t i s e e x c l u s i v e l y i n S A P G l o b a l T r a d e a n d S u p p l y C h a i n S o l u t i o n s W e o f f e r o u r c u s t o m e r s f l e x i b i l i t y a n d i n n o v a t i o n i n a d d i t i o n t o s t a n d a r d , o u t o f t h e b o x s o l u t i o n s K r y p t w i l l c u s t o m i s e a s o l u t i o n t o f i t y o u r s p e c i f i c b u s i n e s s n e e d s A o n e s t o p s h o p f o r y o u r g l o b a l t r a d e a n d s u p p l y c h a i n n e e d s .

WHY KRYPT

S p e c i a l i s e d E x p e r t i s e i n G l o b a l T r a d e a n d S u p p l y C h a i n C u s t o m S o l u t i o n s , I n t e g r a t i o n s , M i g r a t i o n s a n d I n t e r f a c e s B o u t i q u e C o n s u l t i n g C o m p a n y F l e x i b l e , A d a p t a b l e a n d I n n o v a t i v e L a r g e s t G l o b a l T r a d e a n d S u p p l y C h a i n P r a c t i c e W o r l d w i d e G l o b a l R e a c h w i t h E x p e r t s a n d O f f i c e s W o r l d w i d e

A r t i f i c i a l I n t e l l i g e n c e

S A P G L O B A L T R A D E S E R V I C E S

S A P T R A N S P O R A T I O N M A N A G E M E N T S A P W A R E H O U S E M A N A G E M E N T S A P I N T E G R A T E D B U S I N E S S

P L A N N I N G S A P B U S I N E S S N E T W O R K L O G I S T I C S

K r y p t C o n c i e r g e K r y p t C l o u d K r y p t V i s i b i l i t y K r y p t C o n n e c t

LEADING GLOBAL SAP PARTNER

The leading global SAP Partner for Global Trade and Supply Chain solutions since 2008. Headquartered in San Jose, California, with offices in Canada, UK, Ireland, Netherlands, Germany, India

C e r t i f i e d S A P S e r v i c e s P a r t n e r s i n c e 2 0 0 8

K r y p t A d a p t a b l e S u p p l y C h a i n

chains. Everyone wants to drive towards a better world and a better planet. The 2020s have been named the Decade of Action by the United Nations, which calls for the acceleration of sustainable solutions for the world’s biggest challenges – poverty, gender, climate change, inequality, and closing the finance gap. SAP’s solutions are strong on this front. I think we are going to see economic times change with

“I think we are going to see economic times change with the recession, so we need to turn to technology for additional recessionproof solutions”

Caroline adds, “Our global supply chains sit right in the middle of these challenges, both as a major contributor to the problems, and as a great area of focus, where we can take action to address the problems. End-to-end supply chain transparency is critical, both within the walls of a company (Scope 1 and 2), and across the business network of suppliers, contract manufacturers, service providers, and other trading partners (Scope 3).

Sustainability initiatives must extend from the design, to the decommission of a product, from raw materials sourcing to last-mile logistics, and even to product usage, returns and recycling processes.”

“Sustainability initiatives must extend from the design, to the decommission of a product, from raw materials sourcing to last-mile logistics, and even to product usage, returns and recycling processes”

At every stage in the lifecycle of specific products, there are social and environmental impacts on the environment and on people. As a result, governance – or accountability – is important at every stage throughout the supply chain and product lifecycle.

Caroline outlines a sustainable product lifecycle as follows,

“Firstly, it is necessary to design products that are recyclable and environmentally sustainable. This involves designing to minimise carbon footprint of both processes and products, collaborating with suppliers on sustainability issues to foster product innovation, and ensuring all packaging and products are biodegradable, reusable or recyclable.

“Sourcing materials that eliminate slave labour and ensure fair trade regulations is key to improving visibility across all tiers of your supplier network”

THOUGHT LEADERS WITH A PASSION FOR DIGITAL SUPPLY CHAIN

ABOUT US DEDICATED TO HOLISTIC, BUSINESS OUTCOME-FOCUSED INNOVATION

M S C G / / M y S u p p l y C h a i n G r o u p i s a s p e c i a l i z e d c o n s u l t i n g f i r m p r o v i d i n g a r a n g e o f s e r v i c e o f f e r i n g s w i t h i n t h e S A P S u p p l y C h a i n E x e c u t i o n a n d P l a n n i n g a p p l i c a t i o n p o r t f o l i o . O u r d e d i c a t e d e x p e r t s w o r k a l o n g s i d e o u r c u s t o m e r s t o b u i l d a r o a d m a p f o r t r a n s f o r m a t i o n i n D i g i t a l S u p p l y C h a i n . F r o m a s s e s s m e n t t o i m p l e m e n t a t i o n t o s u p p o r t , M S C G i s c o m m i t t e d t o e a c h c l i e n t ' s s u c c e s s a t e v e r y s t e p o f t h e w a y o n t h e i r j o u r n e y t o w a r d s u s t a i n a b l e s u p p l y c h a i n e x c e l l e n c e .

UNPARALLELED INDUSTRY EXPERTISE

M S C G h a s h a d a n e x c l u s i v e f o c u s o n S A P D i g i t a l S u p p l y C h a i n s o l u t i o n s s i n c e i t s i n c e p t i o n 1 4 y e a r s a g o . W e a r e p a v i n g t h e w a y i n l e a d i n g e d g e t e c h n o l o g i e s , i n c o r p o r a t i n g a u t o n o m o u s m o b i l e r o b o t s ( A M R s ) , c o b o t s , a n d a u t o m a t i o n i n o u r p r o j e c t s t o s h o w c a s e t h e f u l l s t r e n g t h o f S A P ' s s u p p l y c h a i n s o l u t i o n s . “ M S C G h e l p s o u r c u s t o m e r s t r a n s f o r m t h e i r s u p p l y c h a i n i n t o a t r u e ' V a l u e C h a i n , ' b y t u r n i n g l o g i s t i c s i s s u e s a n d c h a l l e n g e s i n t o b u s i n e s s b e n e f i t s w i t h a c c e l e r a t e d a n d m e a s u r a b l e R O I . "

M a n a g i n g P a r t n e r , M y S u p p l y C h a i n G r o u p

S U P P L Y C H A I N E X E C U T I O N

We set the industry standard in supply chain execution & logistics services that drive efficiency and manage inventory and the movement of goods throughout a warehouse Our clients' ability to continuously capture data allows for agile and informed decision making.

S U P P L Y C H A I N P L A N N I N G

MSCG supports SAP's supply chain planning solutions that drive top end revenue growth, improvements in service levels, and increased speed and agility of supply planning

A D V I S O R Y A N D S U P P O R T

Our team is dedicated to the success of each and every project We support our customers from assessment to implementation and beyond to ensure cohesive enablement, adoption, and systems support.

N E I L P A T E L

C L I C K H E R E T O S T A R T Y O U R S U P P L Y C H A I N J O U R N E Y

“The second step is to plan to reduce emissions and ethically source materials. You should aim to focus on improving demand accuracy to reduce obsolete inventory, leverage scenario planning to predict end-oflife scenarios and support circular processes, simulate the CO2 footprint of the plan through the procurement, production, and transportation processes, and report actual results against the plan to determine progress and areas of improvement.

“Sourcing materials that eliminate slave labour and ensure fair trade regulations is key to improving visibility across all tiers of your supplier network, as well as identifying and monitoring the most salient risks and gaps within your supply chain and how those may impact business resilience.

“As far as the manufacturing side is concerned, the goal is to manufacture with minimal waste and environment impact,

monitoring energy usage as a function of production volume, measuring CO2 emissions against compliance commitments, optimising manufacturing to reduce waste, and ensuring the overall safety of the workforce.

“The final point is to deliver products and services in a sustainable way, using logistics processes that optimise loads to reduce mileage and carbon footprint,using CO2 - and energy-

optimised warehousing and transportation, and developing a process to ensure the safety of workers, making sure only qualified personnel can handle dangerous goods.”

Sustainability is therefore tied into every project that SAP is running. Caroline enthuses, “It is something that is front and centre for all of us.”

As for the future, Caroline is excited about the emerging technology

trends in the supply chain space. She concludes, “There is so much happening right now around probabilistic planning, networking, leveraging AI and ML in a more efficient manner, and tying it all together with a digital thread. We need to look at synchronised planning to ensure we are using the digital twin effectively, and, of course, all of that really relies on Industry 4.0 taking us there. As we connect deep into the supply chain and make better use of the data for decisions, it

be about that quick time to action we need to be successful.”

For further information on SAP North America, visit www.sap.com

will

“As we connect deep into the supply chain and make better use of the data for decisions, it will be about that quick time to action we need to be successful”

Will our global food system manage to satisfy future demand?

THE FOOD

SUPPLY

CHAIN

IS A COMPLEX NETWORK OF COORDINATED PROCESSES, ACTIVITIES, AND ENTITIES THAT MOVE FOOD FROM THEIR FIRST STATE AS RAW MATERIAL TO THEIR

FINAL STATE AS MEALS ON OUR PLATES.

t all starts with the food producer, which is the farmer. This is where the raw form of food (fruits, vegetables, meat, etc) is created before being shipped to processors. The next stage of the food supply chain transforms food supplies into final products that consumers want. Then there are distributors and retailers. Distributors are the entities that move food products from producers and processors through many distribution channels to food retailers and companies in the hospitality sector such as restaurants and hotels. And finally, every supply chain exists to provide products for consumers; they are the final entity in any food supply chain.

Innovation and improvement in infrastructures and how products are processed and transported have made globalisation more or less the norm for companies. Global distribution allows food businesses to purchase food products at the best costs, reach new markets, and access fresh products all year round. But, this globalisation, combined with a constantly growing world population, has made the international food supply chain more complex, and puts it under greater pressure to meet food demand.

So, the big challenge is to develop innovative, intelligent, and climateresilient food supply chains that ensure our food security. Many new business models

are already implementing circular initiatives and practices in their food supply chains to minimise waste and play their part in solving these challenges. One of these practices in fruit and vegetable production is called ‘vertical farming’.

Traditional farming produces food on a single, large, level surface outdoors. Vertical farming is the practice of producing food vertically indoors in the form of stacked layers of food growing surfaces. The main goal of vertical farming is to maximise productivity all year round in a limited space.

The practice uses what is called Controlled Environment Agriculture (CEA) technology that controls temperature, humidity, CO2, light, nutrient concentration, and nutrient ph. CEA aims to maintain good growing conditions for food crops while optimising resource utilisation, especially the use of water and soil.

Vertical farms can be located in almost any type of confined space, and they can grow food crops anywhere. These might be dedicated spaces or just shipping containers. Being close to consumers is easy this way, and means that time and distances

Some important characteristics and benefits of vertical farming include:

Energy-saving LED lights provide lighting specific to each type of plant.

The use of soil-less methods like aeroponic, aquaponic, or hydroponic processes to deliver nutrients to plants.

The consumption of 95 per cent less water by using closed-loop water systems.

Consumers no longer have to wait for seasonal produce that can now be grown year around.

No washing of the vegetables is required as vertical farming is dirt and pesticide-free.

Vertical farming is not affected by climatic weather patterns.

travelled from sources in a traditional global supply chain would be decreased considerably.

Vertical farming is therefore a great way to reduce transportation and logistics costs and related carbon footprints. It can also help reduce food waste and fuel consumption, reduce the use of trucks, trains, and planes, and increase service levels and customer satisfaction. The result is good quality fresh vegetables and fruits that can be put on store shelves at the right time and in the right quantity with less cost and complexity.

Source: www.scmglobe.com

Like every technology, vertical farming also has its downsides, especially in the fact that it is energyintensive. But efforts are currently being put into reducing energy waste and improving energy efficiency, so a majority of experts agree that vertical farming has a great future.

On a final note, the existing food supply chain cannot and should not be entirely replaced, but it can be improved and supplemented by sustainable practices and new models for further improvements such as vertical farming.

"THE

The Right Partners & The Right Processes

We catch up with Randy Drenth, Head of Logistics at Swisscom, to give an update on his company’s successful logistic strategy.

wisscom’s logistic strategy was developed during the pandemic in response to the various challenges that the situation presented. In an attempt to make the best out of the crisis in terms of learning opportunities, Swisscom used both its existing knowledge and new learnings to build the logistic strategy. Randy Drenth, Head of Logistics at Swisscom, elaborates, “The ICT, telecoms and supply chain market has been undergoing a huge transformation for many years. As a result of the global situation in the last two years, supply chain management became a top board issue. On the one side, you need resilience and stability, but on the other side, you need to explore challenges to rethink new ways of doing things and check if you are on the right path.”

Randy highlights three ingredients for any strategy execution to be a success; top management commitment, resources, and the right people. He continues, “These were my conditions to the management. They told me to see if what we were doing in Switzerland was in accordance with what industry benchmarks were doing, not only within the country but

also on an international level in terms of the challenges they were facing, the possibilities, and new learning opportunities, as well as the impact of these on cost, quality and performance. This showed huge trust in me, which I wanted to carry down through the team, the organisation, and our partners.”

Randy stresses the importance of forming key partnerships. Swisscom’s partners are treated as a part of its critical infrastructure. However, it can also be a challenge because resources are scarce.

Randy adds, “You have to stick together because SCM has become not an easy road, but if you are on

the same journey together, you will be able to pull through. This requires mutual understanding and trust.”

In preparing tenders, Swisscom was able to learn so much about itself. Randy continues, “What are the specifications? Do we really have what we need? Is that sufficient from

partners

an international perspective? Are there requirements that other partners could fulfil? We came from the standpoint where we, as a premium ICT provider, originally made a lot of things ourselves. We had the image of Switzerland being the best and that no other country could compete. But, during the tenders, we gained respect outside of our knowhow borders. For example, where there was a chance that something could be done better by other sources which were out of our reach in the past. As the global dependency is so huge, we had to challenge our internal practices in answer to what was happening in the world, drawing upon other resources we had not used before, such as system knowhow, scale effects, and processes from companies with experience in a high number of production units. As Switzerland is small, we need to explore all of these things to help us to be sufficiently equipped for the future.

“Swisscom’s

are treated as a part of its critical infrastructure”

A Strategic Partner of Swisscom

CTDI supports Swisscom in achieving their sustainability goals by repairing and refurbishing Swisscom‘s set-top boxes and gateways.

Introducing innovation and service excellence to the communications industry is our business.

Technologies we service include network equipment such as access, transmission and all mobile technologies, set-top boxes, gateways, mobile devices and consumer electronics, cash and payment systems, industrial scanners and printers.

After the tenders, the next step was for Swisscom to carry out technical proof of concepts, as well as visits, to reduce the possible number of alternatives to the ways of working. Randy says, “Doing visits during the pandemic was difficult, given the number of rules, security procedures and health considerations, but the trip contained a huge learning potential. Seeing what global best practices do, how they do it, and the challenges they face was really important for our own learning story. Mature processes, scale effects, big numbers, processes and systems enable competence and increased efficiency. We visited many sites, and it was refreshing to talk to people with so much valuable experience.”

Randy says that one of the biggest learnings was that the things they had expected to happen did not come not true, whilst other things they did not expect came true. He explains, “It was a total eyeopener for us. We exchanged learnings in a small multidisciplinary team. These impressions gave us the courage to do new things, develop new things, and test and implement them to change the supply chain or a particular partnership. This worked positively as far as our landscape of partners was concerned because they saw our decisions and the progress

we made. Some reactions were positive, with the partners wanting to come with us on our journey, whilst others preferred to stick to their own paradigms.”

In the last 12 to 15 months, logistics has been faced with increased costs and decreased availability. So, what is the answer? Randy responds, “You have to compare alternatives. Sometimes it is just a source, sometimes it is an entire chain competing. Some are resilient whilst others have difficulties, and you have to understand the reasons why. Even if they are not your partner or part of your own supply chain, knowing the reasons why will help you to be prepared for the future. The source of resilience lies often in being capable to adapt or develop.”

In terms of changing customer demand and behaviour, Randy

“During the pandemic, Swisscom built up new partnerships with international best practices in repair logistics”

says, “During the pandemic, customers stayed at home. After April, they started travelling again like they did before the pandemic, so distribution for residential, enterprise and B2B customers changed. Secondly, the number of smartphone repairs decreased, and the trend continued even after April because customers started to pay more attention

to protecting their devices, being so dependent on ICT and being faced with increasing device prices. With the device prices going up, the spare part prices also did. The market for refurbished devices is growing. Customers’ lives changed in many ways whilst the quality of the hardware devices also increased. The need for an instant repair is still there, but the

overall numbers have decreased hugely.”

In addition, the behaviour of Swisscom employees, as well as interactions with its partners have also changed as a result of the pandemic. Meetings have become shorter, with more frequent calls in between. Randy adds, “Not seeing each other physically does not mean we

cannot make contact on a regular basis. I take more calls each day now, and using these new opportunities opens up possibilities to be more agile and quicker to market.”

Employees are no longer expected to travel huge distances for a single meeting. Instead, they now use the time more intensively to achieve results, perhaps combining several meetings or site visits. Randy says,

“For many people, this is a huge change. It saves a lot of time and kilometres. We do not impose rules, but search for flexibility to work together on quality time and issues. If you do it correctly, it reduces a lot of stress. We had to change during Covid, and we had to talk about it openly. For instance, what is agile to us? How do we implement it? How are scrum meetings organised? It is also about reducing or cancelling meetings if you don’t need them.”

strategy, for example. We reuse, resell and recycle materials, as well as reducing returns because the forwarding is improved with greater transparency. We made this an agenda point with all our partners. If there is a pressure to be more efficient when it comes to returns, you automatically reduce waste.”

Swisscom established a new hub on the recycling side. Randy says, “We enabled the chain to get to

Cutting down on travel also ticks a box when it comes to sustainability, which is a huge part of Swisscom’s core strategy for the future. Randy explains, “We believe sustainability is an asset, so it is not just an add-on. If you list sustainability as a core part of your strategy, it means reducing waste, reducing kilometres, and looking for more sustainable ways for transportation. Sustainability then becomes a core issue, and you will add value if you do it correctly. We put circular economy at the core of our work in terms of our recycling

know our processes by making them transparent, which meant we could bring old materials out of the network to them, so they could process them in a proper way. The materials they process can be sold as raw materials on the market again. It is a total recycling chain. It has been quite a transformation and is still not entirely done, but it has been a huge success so far. The cost of selling raw materials on the market is many times higher than the cost of the processing. Having the right partner and the right

“The cost of selling raw materials on the market is many times higher than the cost of the processing. Having the right partner and the right process in place has enabled us to extend revenues over costs”

We create resources.

Thommen is a proud recycling partner of Swisscom . Thanks to the close coopera tion with Swisscom, our experience and state-of-the-art infrastructure as well as a committed team, we have taken recycling to the next level with Swisscom. www.thommen.ch

We have been cooperating with Swisscom for more than 20 years as a logistics partner. We deliver about 400 items per day which Swisscom and its business partners need to expand the network. We are committed to our motto of “Ordered Today, Delivered Tomorrow”. In addition to our extensive standard range of cables and LAN products, our logistics business is also an appealing option for many Swiss companies. Reduce your operating expenses and rely on a business partner with expertise, 99%+ availability and a 24-hour emergency service. Contact us to arrange a consultation.

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process in place has enabled us to extend revenues over costs.”

Dedicated logistics partners handle all of Swisscom’s network infrastructure. Randy continues, “For almost 20 years, we outsourced our most important network operations for cabling and infrastructure logistics to partners. We have been working with them for many years. They do the coordination in the chain and have a lot of knowhow when it comes to buying materials also for neighbour industries, so we have given them more responsibility over the years, which has helped us in terms of availability in times of major disruption.”

During the pandemic, Swisscom built up new partnerships with international best practices in repair logistics. This grants access to unprecedented process and engineering knowhow, which adds weight to Swisscom’s sustainability agenda. Randy adds, “As they dispose of global resources, multiple OEM and operator contacts, as well as experience from engineers with

a good understanding of the different technologies, we have been able to challenge ourselves and bring us further in terms of technical process competencies to refresh and refurbish materials.

As a market-leading operator with global suppliers and customers, we depend much on what is best practice on a global scale. As quality is so important in our network, we need partners that have local glasses, but can also bring knowhow from their global experience to help us to improve.”

With mass-market logistics providers, Swisscom has longyear partnerships, enabling the company to stably fulfil customer demand during lockdown and supply crisis times in the past two years. Customers did not experience any changes during the pandemic compared to the time before. Randy explains, “Together with our partners, we work closely on digitalisation and standardisation of logistics processes. Shop delivery of Swisscom is highly efficient and sustainable, as it includes return and waste management in an

“Dedicated logistics partners handle all of Swisscom’s network infrastructure”

overnight loop procedure that mainly uses railroad transportation and only trucks for the last mile. The shipping containers reduce logistics efforts in the shops to enable focus on the customer, and are equipped with newest technology for testing new methods for track and trace. Through our collaboration with logistics providers, we can more easily adapt to market changes and offer new services to customers together.”

easier or even source such highly competitive processes.”

The number of shipments to customers in the last five years has decreased, given the fact that services have become less dependent on hardware, and cloudification and virtualisation mean less decentralised hardware is needed. Randy adds, “Because the customer is using more digital services, logistic efforts are

So, what’s next for Swisscom in terms of increasing digitalisation and reaping the fruits of its labour? Randy answers, “Digitalisation goes on. We need to standardise in order to be compatible on a process level. We have a lot of own processes, and standardising those will increase quality and efficiency. In the IT world right now, there is a movement from hardware towards software as well as service. This means the customer is less dependent on hardware, as many innovations are on a software level. If you have the right partners with a global knowhow, they will enable you to standardise

reduced, and it also becomes a sustainability case too.”

As for the future, Randy believes that next to resilience, data security and data privacy are becoming key to all logistics providers and partners. Customers increasingly use devices for financial and other personal needs. He explains, “There is no alternative that working with customer data has to be organised in a safe and dedicated way. Logistics is not just about the hardware, but also includes software, apps and customer data. For example, when

“Together with our partners, we work closely on digitalisation and standardisation of logistics processes”

there is data on a broken device, you need safe logistics processes in place, especially when there is a crossing of a container, border or a different organisation, which is daily business in supply chains. It needs to be secure like banking processes, and track and trace is key, especially in return, but also in staging, wiping and recycling processes.”

As the most sustainable telecom organisation in the world, Swisscom needs to deliver the best logistics to fulfil its core strategy. Randy concludes, “A focus on being the best is part of the core work that my team and I do every week. It is exciting work, and I am very proud to be part of such a forward-thinking organisation.”

For further information on Swisscom, visit www.swisscom.ch

“For almost 20 years, we outsourced our most important network operations for cabling and infrastructure logistics to partners”

Rudy Paniagua, President at Panasonic Logistics Solutions of America, discusses his experiences as a supply chain professional.

udy Paniagua has worked in supply chain for over 20 years, a journey that lead him to the role of President at Panasonic Logistics Solutions of America, which is owned by Panasonic North America. Rudy explains, “We started as a separate company called Sanyo. We wanted to take what we had offered internally for the last 20+ years and go out to market with it. Our logic is that if our own company can trust us to do it, we can do it for external companies. Panasonic has a wonderful name in the marketplace. However, we are

primarily noted by the general public as being a manufacturer. We are trying to change that mentality. We are business to business, and 90 per cent of what we do isn’t related to manufacturing. My role is to set the new agenda and plan strategically for it.”

Recent years have seen supply chains evolve as a result of the quantity of information available. Rudy continues, “When people used to think about supply chains, trucks and warehousing would spring to mind, not analytics and

optimisation. In the last 10 years, software has really come to the fore. Anyone with the right support can become a major player. How does it affect manufacturers and distribution centres? Software optimises the supply chain so the consumer can see the benefits, with prices coming down, for example.”

The Covid-19 crisis was a worldwide phenomenon, which Rudy says had an effect on supply chains everywhere. He explains, “It was pretty bleak about a year ago. Covid had a major impact on inflation and

economies all around the world. I think it is starting to stabilise, but what we are now going to be wrestling with is the economy. America is a big player and can drag down a lot of other economies, so inventory will start to back up in the warehouses because consumers are not going to be buying as readily as they used to. I believe warehousing will take on a paramount role in the next 12 to 18 months.”

Rudy speaks of the current trend for nearshoring, highlighting Panasonic Logistics Solutions

Hamson VP Operations

Paniagua President

of America’s plans in Mexico. He continues, “Mexico has a lower price point compared to the US and Canada, but it is closer than China. We are seeing a lot of companies announcing investments in Monterrey, Guadalajara and Mexico City. US companies are maybe not opening their own facilities, but they are investing billions of dollars in bringing in people. There was a recent announcement that the US is investing as much as $4million to bring semiconductor manufacturers into Mexico. It was always more economical to keep it over in Asia, but not anymore. I think nearshoring is

going to hit some all-time highs. It is already booming, so we can expect it to continue for the next 18 months. People who never did it before for whatever reason are going to show up for the party!”

In terms of the technology trends coming through, Rudy believes forecasting is big news right now. He explains, “You never used to be able to predict what was going to happen. Forecasting is important because it gives companies the ability to react before there is a problem.

If your original plans hit a snag, the software is able to predict it before it

Dana

Rudy

Luis Bernaldez Director of Finance

happens. Some of the most powerful software out there is coming from the software manufacturers working with 3PLs because they are only paid to think about one thing. They are just dealing with analytics. Five years ago, I would never have thought we would get so sophisticated. It has happened extremely quickly.”

What kickstarted the boom in predictive software? Rudy answers, “Companies started transforming digitally, and Covid was a driving factor for innovation. There were so many variables that arose during Covid, and people started asking

what they could do to help mitigate the effects, so software designers from the 3PL sphere stepped in to take software to the market. Digitalisation is key because people wanted to get away from paper and they needed their information to be accessible years into the future. In addition, you can access your inventory anywhere in the world 24/7 thanks to the cloud. This is something that was not available before.”

In an ideal world, you need the right software and the right people, but Rudy says that if he had to choose between the two, he would champion the people. He explains, “Software is great, but I always think that the human element and the experience they bring cannot be replicated. If you have both, you really have a robust ecosystem in which to operate, but the people are paramount. I would put them at number one. I don’t think we are ever going to see people

“Five years ago, I would never have thought we would get so sophisticated. It has happened extremely quickly”

replaced by machines. Some AI can step in to perform mundane, repetitive tasks, but I have seen too many ambiguous answers, where only an experienced human can cut through the fog to make the right decision. I doubt we will get to the point where AI is able to do it and we are just monitoring it all. At the end of the day, for me, people are what make the world go round.”

When building a strong team, Rudy says he looks for people with an aptitude to learn. He continues, “I am always looking for smart people. That does not mean academics, but people who have the ability to absorb information, process it, and utilise it. With that kind of individual, you can teach them almost

“Software is great, but I always think that the human element and the experience they bring cannot be replicated”

anything, and they can use it and absorb it. For me, it is not about experience, but your capacity to learn and your willingness.”

Supply chain is super-variable, with a lot of different moving parts; some software-driven, some market conditionsdriven, and others peopledriven. Rudy says, “All the variables are in the pot getting stirred around, and you as a supply chain professional have to try to make sense of it all. It is a very dynamic industry in which plans can change within hours, often by no fault of your own. You have to be flexible – and a very calm person – to be able to work in supply chain.”

Forming partnerships with other companies is a key ingredient for success. Rudy explains, “If you have partners that share the same vision, it makes the path a lot easier. If your partner has a different agenda that they have not shared with you, it will make the goal even more difficult to reach. If you cannot agree on how you are going to get there, you are really going up a mountain.”

Panasonic Logistics Solutions of America has partnered

“We are very energetic over here, and it feels really good!”

with KWE Logistics for over 20 years. Rudy elaborates, “I am really happy with our partnership with KWE Logistics because they have extended our reach globally. KWE Logistics is a company based in Japan, and because of our origins growing up in Japan, we have an infinity with them. We seem to speak the same language and understand each other. They give us a presence in Asia because they have hubs throughout. We purchase, bring in and export many parts from Asia, so having this partner in place that knows all the backchannels can help us negotiate pricing. Without it, we would struggle to expand into Asia. When other companies did not have the means to bring things out of Asia due to the lockdowns, we were able to carry on, and that was down to our partnership with KWE Logistics.”

So, what does the future have in store for Panasonic Logistics Solutions of America? Rudy answers, “Our strategic plan is to expand extensively within Mexico, with nearshoring driving that bus, and we are opening up warehouse distribution facilities in Monterrey, Guadalajara and Mexico City, among others. We have two large warehouses right now, but we want to open up another five within the next three years.”

A value-added service will be Panasonic Logistics Solutions’ ability to look after all its customers’ transportation needs in Mexico. Rudy explains, “It might sound simple, but we want to handle all your freight requirements in Mexico, up and down into the United States, with just one call. If you need to move goods, store them, pick and pack, or bonded warehousing, we want to be that goto call. When bringing goods up or down, you need to clear US customs, and in some cases, US and Mexico customs. We offer full brokerage to deal with all the paperwork and make sure you are not going to get in trouble. The end benefit is cost savings because you will be taxed heavily if you are not compliant.”

Rudy is super-excited to be steering this particular ship at Panasonic Logistics Solutions. He concludes, “There is a fire here that we have probably not seen since 2015. I feel that we are through the worst of Covid, and there is a renewed enthusiasm to talk to people, have meetings, and add value to people’s businesses. We are very energetic over here, and it feels really good!”

For further information on Panasonic Logistics Solutions of America, visit www.na.panasonic.com/us/ logistics-solutions

FITZPATRICK

FITZPATRICK Supply Chain, charts her transformation journey.

CAROLINE CIOE

FITZPATRICK Supply Chain, charts her transformation journey.

What role can AI and AR play in the future?

Industry

ugmented reality (AR), artificial intelligence (AI), robotics and IoT continue to make their way into supply chain operations and logistics, driving new levels of efficiencies with increased cost avoidance.

Warehouse workflow optimisation is a critical component to the success of any logistics-related business. Businesses save millions of dollars by organising their business processes and workflows effectively. Typically, logistical issues arise because of the human tendency to make mistakes. In this case, technology

and its integration with existing systems comes first in problem-solving. Many businesses are exploring or have opted for augmented reality warehouse handling software to improve a variety of business processes. Using AR for warehouse management activities such as warehouse planning, inventory control management, order picking and material handling can simplify and improve complex warehouse operations, thereby strengthening supply chain processes.

Automation is critical for companies seeking to

4.0 technology and its rapid adoption during the pandemic has assisted many businesses in navigating labour and productivity challenges by streamlining factory and process workflows.

improve warehouse operations. The use of AR in a warehouse is a great way to improve agility, incentivize employees and save money.

Let’s take the example of one of the most cost intensive tasks in warehousing – order picking. This process focuses on getting the right product as requested by customers at the right time and in the right quantities with no damage to the product. Customers expect all

products and services to be delivered quickly in today’s technologically advanced world.

As a result, logistics companies are under constant pressure to streamline the order-picking process at the lowest possible cost to protect their revenue generation. The traditional approach to order picking is a time-consuming and painful process where associates navigate around the warehouse to

locate items that meet the needs of the customer. This manual method is extremely error-prone and very cumbersome.

AR can help to streamline the overall order-picking process. When an operator is notified of a scheduled pick-up, an associate will enter a facility wearing an AR-based smart glass. The smart glass detects the barcodes of objects in the cart as the associate moves their head.

“The use of AR in a warehouse is a great way to improve agility, incentivize employees and save money”

The operator is guided through machine learning-enabled algorithms aiding the operator visually and verbally. When the pick is finished, the information is saved in the system for future use.

This integration of business processes, workflows, warehouse management systems, AR equipment and AI optimises the user’s path through the warehouse. It replaces visual searching and manual text comparison with barcode scanning and automated visual cues. The form factor of AR hardware allows pickers to use both hands throughout the process. It also simplifies the information needed by the operator at each process step.

AR and robotics, when integrated well, solve ongoing critical challenges in logistics. In warehouse management, it is critical to consider items such as

“This integration of business processes, workflows, warehouse management systems, AR equipment and AI optimises the user’s path through the warehouse”

efficient space usage, warehouse restructuring for unforeseen crises, and secure storage of high-selling or seasonal commodities in the plan. Bottom-up integration models requiring business processes and workflows to be standardised and streamlined enable system, equipment and AI to work in synch.

AR may be a huge benefit to warehouse managers and employees when it comes to overall warehouse layout design.

It gives the option to experiment with modifications to the existing warehouse design due to its ability to generate digital, interactive 3D warehouse layouts. Warehouse managers and employees can determine if the plan properly matches the warehouse layout by conducting multiple trials and experiments with various work models.

Inventory management is one of the most important and difficult

components of warehouse operations. Human involvement increases the likelihood of mistakes and erroneous put away/picks. As a result, we cannot assume that the task is always repeatable without fail. Some significant logistics organisations have used barcode scanning systems for inventory monitoring and management after realising the necessity to expedite this process. The process of inventory inspection and control has undergone a fresh wave of

innovation with the introduction of barcode scanners.

Furthermore, we can also use AR to provide virtual training to new staff, ensuring a stimulating environment for quick onboarding and effective collaboration with experienced personnel. This interactive style of education engages employees in their job and allows them to practise at their own leisure.

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to Overcome Today’s Challenges

Wilbert Baerwaldt, Head of Sourcing at Duni Group, discusses business solutions to the current supply chain challenges.

Duni Group is one of the leading creators of sustainable and innovative concepts for the set table and takeaway.

t offers a range of high-quality and environmentally-sound products, such as napkins, table covers, and candles, along with packaging and packaging systems for takeaway.

Wilbert Baerwaldt, Head of Sourcing at Duni, explains, “We want to sell articles to the market that can be used during dinner occasions, as well as

events where people gather such as weddings and other celebrations. The articles that we bring to the table are fashionable, colourful and practical in design.”

Until recently, the concept of single-use products was viewed as convenient, but this is now being

challenged by the drive to close the loop and be more sustainable. Wilbert continues, “We are working hard to keep up with changing customer demands. In France, for instance, new legislation banned single-use plastics from the market. Many countries develop similar laws to reduce waste. For us, it meant that customers were not able to buy parts of our assortment and that we had change our offer. We are putting a lot of effort into making our products more circular through cooperation with other organisations. This process is driving the organisation forward in new, exciting territory.”

The journey of becoming more sustainable does not come without its own set of challenges, as Wilbert explains, “It is an interesting time, but reducing our Scope-3 emissions is a top priority. It is critical for the environment, as well as our customers because they are increasingly asking for more sustainable solutions.

From a procurement perspective, we have to run the business in the current environment, which is already extremely volatile due to the war in

Ukraine, summer weather patterns, and lack of raw materials. A lot of factors are making it more difficult to source the materials that we need on time and in full. At the same time, we are on this journey to become more sustainable, so we need to expand our network and make sure we always have access to the newest technologies from our suppliers to reach our goals. This is valid for energy and materials.”

The Covid-19 pandemic was a huge disruption to supply chains everywhere, and according to

“Our operation’s organisation is set up in a flexible way so that we can meet demands of our customers”

Wilbert Baerwaldt, Head of Sourcing at Duni Group

Wilbert, companies are not quite out of the woods yet. He says, “When the first wave hit Europe, many countries went into lockdown, and up to 90 per cent of our employees were on short working time contracts. It had a massive impact on our organisation. We are now in the opposite situation where a lot of people in Europe are again going out for dinner, while many are also still sick, so we are facing challenges with producing all the products that are needed in the market. At the same time, there is a lack of materials in some areas

because of disruptions in the supply market, like the sanctions imposed upon Russia. To mitigate some of these effects, we are working continuously to make sure we develop our employees so that they have broad competences and can support where it is most needed. Our operation’s organisation is set up in a flexible way so that we can meet demands of our customers. Although this is still an uphill battle, we are making good progress and are getting stronger by the day!”

The organisation is divided into two separate business units:

1. The business unit selling mainly napkins and table covers to hotels, restaurants and retail chains, and

2. The business unit selling food packaging solutions to a variety of customers like takeaway restaurants.

Wilbert adds, “At the time during Covid when restaurants were not allowed to receive guests, they

were getting more requests from people to prepare food to take home. The takeaway business unit therefore flourished during Covid, which has helped us to get through the last two years.”

In helping companies to prepare for what the future might have in store, Wilbert believes that digitalisation can play a key role. He elaborates, “Digitalisation is very important because it allows you to connect to your suppliers and automate transactional process steps. It requires

you to be disciplined when it comes to maintaining structured information about your suppliers in the system. However, suppliers do need time to familiarise themselves with these systems and some training is involved. Digitalisation is critical for our network, but it takes time, and technology is also developing fast so that it is sometimes hard to keep up. It is another dynamic that we must consider in our sourcing and purchasing activities throughout the year. The purchase-2 pay software providers also put a lot of time into the development of predictive methods. Are we late ordering due to lead time patterns from this or that supplier? Or the system advises us that we need to avoid a certain route due to weather conditions, for example. It could even propose certain new suppliers that might be relevant. It is an interesting and important area to follow.”

However, Wilbert also holds the view that it will be unlikely that a customer-supplier relationship will be operating on a fully digital process. Purchase-to-pay technologies will continue to face challenges to create a fully secure network. Within an increasingly volatile environment, we will fall back on relationships, as we have seen during the last six months.

Wilbert explains, “In order to secure deliveries and the availability of materials, it will be important that

“As buyers, we are the in using the technology, technology people. right people involved

the responsible category leader maintains a wide network of suppliers and has good relationships with all of them. Automation will get us far, but not all the way. There are simply too many service providers offering this connectivity in the value chain, both from the supplier side, but also from the buyer’s side. This complexity limits our possibilities to create a fully transparent and a 100 per cent connected network. So, relationship management is another key to success.”

So, how does a Head of Procurement decide which technologies to leverage? Wilbert answers, “It starts with finding out which technologies are appropriate for the question you are solving. You need to pay close attention to what is being developed and talk to potential suppliers to understand what their offer looks like. What are the key parameters to use when selecting a supplier? One consideration is obviously cost, but you also need to look at whether the technology is built on a combination of technologies or built from scratch, how advanced the technology is and whether there is the possibility to use the data, as well as how often it is being used by the market leaders. It is a very complex process. As buyers, we are the key stakeholder in using the technology, but we are not technology people. You need to get the right people involved to support you.”

the key stakeholder technology, but we are not You need to get the involved to support you”

With innovative green chemistry, we mimic nature’s own solutions and create sustainable materials and products of the future with cuttingedge technical performance and functionality.

An example of our green innovations is the entirely fossil-free and biodegradable binder that is used to replace plastic binders in nonwovens. Our binders are made from biopolymers derived from side streams in the food industry. By using Nobel prize winning organocatalysis we thereafter “click”-on the biopolymers to the cellulosic materials to improve their mechanical properties.

A great example where our biobased binders are used is fossil-free and home compostable premium napkins. With our technologies we have developed many more 100% biobased and biodegradable materials for different applications. We say the material has been Made Green Inside—for a sustainable future.

Read more about how we replace plastic in a number of disposable products at www.organoclick.com

The same is valid to reach the Duni Group sustainability targets. As these targets result in challenging activities, decisions have been taken to cooperate more with partners in the market, along with its own expertise. The Duni Group is cooperating with companies to ‘close the loop’ or to develop new materials. One of these organisations is raw materials supplier Organo Click. Wilbert says, “Organo Click is helping us to make some of our articles more sustainable. They are using new technologies and raw materials to make the materials that they sell into the market. They are quite advanced in developing these raw materials.”

“Organo Click is helping us to make some of our articles more sustainable. They are using new technologies and raw materials to make the materials that they sell into the market”

Wilbert adds, “We have a fantastic opportunity to keep suppliers closer to the organisation by supporting each other in how materials can be developed. I believe that the current challenges can only be overcome through cooperation. It will require a mindset shift when people start to realise that, as an organisation, we cannot be perfect at everything. We need to work together to take us further, so that we can then support others. It is extremely motivating, and very different to how we operated in the past. Cooperation is central, and companies have to be bold.”

There is currently very little alignment at European level on how companies can become more sustainable going forward, so they need to make appropriate decisions that will steer them in a certain direction. Wilbert says, “We are often in discussions about the next steps we need to take. Sustainability means different things to different people, and this lack of alignment can be a real problem for companies.”

“Different people bring different skillsets to the organisation, and having a good mix is key”

Outside of the boardroom, Wilbert enjoys mentoring, educating and supporting the development of individuals. He is also involved in activities with the University of Lund, where they investigate how sourcing organisations should prepare themselves for further future increased dynamic environments. Wilbert elaborates, “For me, mentoring is really important. It is all about communication and sharing your experiences so that others can learn from them. I am connected to a school where I am supporting with workshops on purchasing, sourcing, supply chain, logistics etc. It is essential to inform the next generation about the challenges we are facing to prepare them in the right way for their tasks.”

Wilbert believes that there should be more people from the business world entering into education. He concludes, “Good education strikes a balance between reallife examples and theory. I enjoy supporting colleagues in our organisation, as well as younger people coming into the industry. I have to be humble because we are often hiring people with competencies that I lack. Different people bring different skillsets to the organisation, and having a good mix is key.”

For further information on Duni Group, visit www.dunigroup.com

Lucien Besse, COO and Co-founder at Shippeo, defines his company’s unique proposition.

IT BEGAN AS A SIMPLE IDEA TO BRING FULL DELIVERY VISIBILITY INTO THE B2B WORLD.

ucien picks up the story; “The observation we made was that when you order something from an ecommerce website, you have full delivery visibility and great service. However, transportation managers in large companies waiting for containers to arrive at their warehouses every day did not have this same level of visibility. Shippeo was launched to bridge the gap between the visibility that consumers have over the last mile and a company’s visibility over the first or middle mile.”

The Shippeo platform helps any company in the world to have real-time visibility on their freight deliveries across all

geographies and all modes of transport including road, ocean, rail and air. Lucien says, “We provide a single interface to our customers to give visibility on all their deliveries, enabling them to bring a better service to their customers. In addition, this visibility increases the operational efficiency of the transportation and logistics teams because they are able to run smoother operations.”

Why is it so important for shippers, carriers and 4PLs to have full visibility? Lucien answers, “I think the main topic is to anticipate disruption. Today, as a company moving products all around the world, the main reason why you cannot fulfil the promise to your customers

LUCIEN BESSE IS ONE OF SIX CO-FOUNDERS OF SHIPPEO, WHICH STARTED LIFE IN 2015.

is disruption in your supply chain. Supply chain had a direct impact on companies’ ability to serve their customers with a product during the recent supplier shortage crisis. Visibility helps our customers to anticipate the impact of supply chain issues every day. Having visibility on your supply chain and transportation is critical because without it, you cannot fulfil the promise to your customers, which is to deliver your product on time. We have a lot of traction on the market today because customers are urgently asking for this visibility.”

When 2020 began and Covid-19 hit, companies started fearing for their businesses, but in actual fact, Shippeo had the biggest growth it has seen. Lucien explains, “Covid has an accelerating effect on the demand from our customers because everyone was working from home and people were increasingly buying products online. The importance of having visibility on your endto-end supply chain was crucial. The supplier shortage meant more congestion in the ports in Europe and Asia, and uncertainty over when products would arrive. Consumers felt the impact of

this supply chain disruption when their products were not available. The last two and a half years have seen a dramatic increase in the need for visibility because supply chains are becoming more global, more fragile, and more interconnected. If one part of the supply chain is not running according to plan, the end customer will feel the effects.”

Shippeo works with a number of different industries including retail, automotive, building materials and pharmaceutical. Lucien continues, “The business case is different for each industry, which makes what we do very rich and interesting. If you take the automotive industry, for example, the ability to have your car delivered to the car dealer at the end of the chain is related to the ability to

“Shippeo works with a number of different industries including retail, automotive, building materials and pharmaceutical”

deliver the car on the last mile, as well as the ability to be able to produce the car on time. There are two legs, which we call inbound i.e. all the supplies coming into the factories, and outbound i.e. the vehicles delivered to the car dealers. Both inbound and outbound are critical to deliver exceptional customer service, which is delivering the car to the customer on time.”

Renault is a customer for which Shippeo manages the inbound and outbound flows. Lucien

explains, “On the one side, you know when the parts will be delivered to the factories, so there is no disruption to production, and on the other side, the car dealer has visibility on the delivery of the cars, so the customers are able to have them on time.”

On the retail side, Shippeo works with Carrefour to track deliveries from the distribution centres to the stores. Lucien says, “One of the reasons for a product being unavailable is the truck not delivering on time. If you give the

store the visibility of what is being delivered and whether there is a delay on any of the products, they can anticipate the impact of the disruption and either bring a new product to the shelf or warn the customer of the delay. This visibility therefore helps the store to fulfil the promise to their customers.”

Lucien adds that all the different examples come down to the same question of ‘Where is my shipment?’. He elaborates, “If you place an order or go to visit a store, you want your product to be available. If it is not

available, you want to know where it is. And if you want to know where it is, you need to have visibility on your supply chain.”

Shippeo employs a range of technologies to build its solution, which is divided into two fundamental pillars – the network part, and the data part. Lucien explains, “To build the network, involving onboarding the carriers and connecting the systems that they are using, we have built an API solution to help us collect in realtime all the new information that is

available in the carriers’ systems. API is a simple way of exchanging information and that is the main technology we leverage.

“Once we have the data in our network, we need to have the necessary intelligence to enrich it. To be able to know when the delivery will arrive, we have developed a unique machine learning algorithm that predicts the estimated time of arrival. We have been working on it for five years, so we are recognised as one of the most advanced vendors when it comes to machine learning capabilities.”

By design, supply chain is collaborative, and so Lucien highlights the importance of Shippeo’s ecosystem of trusted partners. He continues, “You have multiple parties in supply chain taking multiple steps, so you have to make sure that the information in your platform can be transmitted to a different system. If you want visibility on your deliveries, the people in the factories are using a different system, so you need to be able to connect your visibility platform with their planning system downstream. On the upstream, you need to be able to connect your visibility platform with the planning system of the carriers

or shippers. Our transportation management system partners include Tesisquare and Alpega Group, both based in Europe. They push information into the system of Shippeo, as well as taking back information to be able to run dynamic planning. At Shippeo, we have a vision of what is happening in real time, and we can compare this real-time information with the planning information. That is where the magic really starts to happen!”

Transportation management systems are key to enabling

“Tesisquare is one of the leading transportation management systems in Europe. Tesisquare customers are using the platform to manage their transportation planning”

Lucien Besse, COO and Co-founder

Shippeo to be more agile. Lucien elaborates, “Tesisquare is one of the leading transportation management systems in Europe. Tesisquare customers are using the platform to manage their transportation planning. Our customers are using Shippeo to get real-time visibility on the execution of their transport. When we see a disruption, we push this information back into Tesisquare and then the

Alpega Group also has a transportation management system, as well as a slot management system, which Shippeo leverages. Lucien explains, “Slot management systems help the carrier to make an appointment at a delivery or loading site. If you have one carrier

“Alpega Group has a transportation management system, as well as a slot management system, which Shippeo leverages”

customer can start optimising their planning.”

that is late, the other carriers could be disrupted because your theoretical planning is in danger. This real-time information can be pushed into the slot management system of Alpega Group to help customers to start optimising the slots, so the carriers can adapt their delivery schedule to the new planning.”

As for the future of supply chain, Lucien points to three main trends. He says, “Firstly, collaboration between the different systems thanks to the API solution is key, and I think it will become increasingly important in the future. The second driver is predictability. Artificial

“As well as automation in supply chain with robotics, we are also seeing automation of the decision-making process”

intelligence and machine learning algorithms are enabling supply chain data to enrich various other systems. In the future, the system

will not only be able to predict, but also prescribe actions to the users. At Shippeo, we are working towards prescribing actions to

“We can expect to see more automation in the future designed to enrich the decision making of people working across the supply chain”

enrich decision making within the organisation.”

The third and final trend is automation. Lucien concludes, “As well as automation in supply chain with robotics, we are also seeing automation of the decisionmaking process. More and more customers are asking not just to predict an estimated time of arrival, but to be able to automate their

supply chain processes upstream or downstream thanks to this visibility information. We can therefore expect to see more automation in the future designed to enrich the decision making of people working across the supply chain.”

For further information on Shippeo, visit www.shippeo.com

Is a digital supply chain a must for the future growth of miners?

ven though miners were aware of future supply chain requirements, pandemic-led disruptions pushed the supply chain to the forefront. The pandemic brought economic activities to a screeching halt, while miners and their customers faced delayed deliveries due to supply chain shocks.

Disruptions to supply chains due to the pandemic forced companies to reconsider their supply chain strategies. The Suez Canal blockage and the ongoing Russia-Ukraine conflict caused price fluctuations for several commodities. These events are a stark reminder that mining companies need to prepare and plan for unprecedented threats in the future.

The mining supply chain has always been complex and challenging to manage, and with demand changes, complexities will further increase.

are

Leading miners are turning to technologies to overcome supply chain challenges. Some are collaborating with tech companies to transform operations into connected ecosystems, whereas others are incubating and building digitally powered supply chains in-house. Collectively, these efforts are directed toward an operationally strong mining sector that can better predict and manage demand and disruptions.

“Miners

increasingly leveraging digital technologies across operations to achieve higher efficiency”

Miners are increasingly leveraging digital technologies across operations to achieve higher efficiency, lower costs, and ensure safer work environments. Leading miner BHP is using predictive analytics to streamline operations, enabling better identification of asset conditions and efficiency. This helps to improve safety, production, and equipment availability, and lower operational costs. Similarly, Rio

Tinto is employing technologies to address productivity and sustainability issues. For enhanced supply chain traceability, the company has deployed blockchain solutions, allowing end-to-end digital transactions.

The connected mining concept is successfully resolving many of the miners’ problems. It enables seamless mining operations across production, maintenance,

procurement, logistics, and other allied functions. Miners are developing connected mines by using technologies including digital twins, smart inventory management systems, and robotic process automation (RPA). However, adopting these technologies requires substantial capital investment and careful tracking of returns on those investments at each step of the digital transformation journey.

Digital twins are virtual models that accurately reflect the properties of physical objects. The technology uses AR and VR technologies for modelling, simulation, and cause-andeffect analysis to better predict and solve maintenance challenges, helping miners to visualise end-to-end supply chain and site operations. This enhances operational visibility and boosts the real-time management of production, inventory, product pipeline, and deliveries. Here, autonomous systems are used for faster decision-making, and information technologyoperational technology integration facilitates a better

storage is a smart inventory management solution that helps control costs using data analytics and predictive modelling”

data flow from mines thanks to cloud-enabled systems providing global access to information across mine sites.

To boost efficiency across the mining value chain, companies are investing in technology-driven intelligent storage and demand prediction systems. Intelligent storage is a smart inventory management solution that helps control costs using data analytics and predictive modelling. Using this system, miners are able to better predict and meet demand with minimal inventory costs. They are using AI, ML and advanced data analyticsbased technologies to manage their inventory and

“Intelligent

demand management, predict demand patterns, and optimise their inventory accordingly.

Mining requires constant supplies of machinery, equipment, spare parts, and other items. With most

mine sites being remote, time to procure is the key to efficient operations. RPA can helps companies automate purchase requisition (creating purchase orders and reordering supplies) to boost their procurement

function effectiveness. With RPAenabled procurement, miners minimise downtime, boost order accuracy, and keep suppliers updated about upcoming requirements.

While digital technologies offer promising solutions to the mining sector’s supply chain problems, some fundamental issues need to be addressed. Mining has evolved from labour intensive to

engineering heavy, and now it is on the path to becoming a techdriven industry. However, there are significant challenges for miners on this digitisation journey that involve big cultural shifts. It will need an inside-out strategy, with workforce reskilling and strong data management practices, for the transformation to be a success.

Source: www.infosys.com

The Combination of

Technology, a Green Agenda & Trusted Partners

We chat to Germán Schacht, Business Development Manager, and Ricardo Contreras, New Projects Manager, at ASENAV, about the future of the maritime industry.

SENAV is a leading shipyard on the Pacific coast of America, dedicated to the construction of ships with a high level of engineering, standing out for its construction quality, versatility, on-time delivery, and after-sales service. To date, ASENAV has successfully delivered almost 190 vessels in around 50 years of history to both national and international shipowners, belonging

to aquaculture markets, ferries, offshore supply vessels, expedition cruisers, fishing, and tugboats. Having been pioneers at the local level in the use of forefront designs in different types of ships, ASENAV’s constant innovation is in its foundations.

Today, the shipyard continues to apply state-of-the-art technologies in its constructions, such as ships with diesel-electric propulsion

systems, dynamic positioning systems, treatment of gas emissions for a lower environmental impact, among others. The company’s vision is to provide its customers with sustainable solutions to their needs, including cutting-edge technology to reduce the environmental impact and therefore contributing to the shipping industry’s plan of decarbonisation.

This is ASENAV’s unique selling proposition, as Germán Schacht,

Business Development Manager

Germán Schacht

Business Development Manager at ASENAV, explains, “Despite being a shipyard, we do not just deliver vessels, but solutions. Leveraged in a sound design and engineering department, ASENAV is flexible and resourceful enough to assess its clients’ needs and to solve them through a ship. This has allowed ASENAV to develop close longterm relationships with our clients, incorporating new technologies in our designs. It has also

permitted the shipyard to explore diverse market niches, such vessels specialised in aquaculture, fishing vessels, tugs, ferries, and expedition cruises.”

Since the shipyard has been there for a long time, the company has built a relationship with worldwide key providers, which is key to ASENAV’s supply chain strategy. Ricardo Contreras, New Projects Manager at ASENAV, says, “The supply chain

strategy begins with the generation of a procurement requirement by the engineering department. This lead generates the request of technical offers, which finally concludes in a purchase order. After the purchase order is generated, the shipyard controls the purchase during the delivery time, arriving at the time of collection of the different purchased components at the factory, which are organised by a shipyard forwarder for their removal from the factory,

shipment to the country, and delivery to the shipyard premises. This is constantly monitored by the company's foreign trade department.”

The shipyard has an important strategic partner located in Europe, which works in close cooperation with the company’s foreign trade department, managing the logistics needed for the transport from the factory to the shipyard. This partnership eliminates the disadvantage of being geographically located far away from Europe, Japan and the USA, where some key components are built.

Environmentally-friendly technologies have played a crucial role in ASENAV’s design in the past and are expected to become even more important in the future. Germán adds, “The constant motivation of the shipyard is to

“Environmentallyfriendly technologies have played a crucial role in ASENAV’s design in the past and are expected to become even more important in the future”

keep developing projects with a high level of engineering, including state-of-the-art technology and preserving the environment. In this respect, the company expects to continue building this kind of project in the upcoming years, with a bigger focus on the small cruise vessels, oceanographic and fishery research vessels, tugboats, and live fish carriers.”

The company’s logistics and procurement department works closely with its supply chain function to ensure an efficient process. Ricardo continues, “A perfect coordination must be achieved to receive every one of the thousands of parts included in the construction of a ship right on time, to avoid any delay in the construction process. Fluid communication with our planning department is also a very important aspect. Things have changed since we have embraced complex software to support this activity. The software allows much more complexity in the supply chain.”

So, how was ASENAV impacted by the Covid-19 pandemic? Germán answers, “In the beginning, the yard took a 10-step plan to ensure workers’ safety from Covid-19, and worked closely with Universidad Austral de Chile, the most prestigious local research institution, to actively monitor any cases. This plan included more working shifts in smaller groups and separate sits in the dining room, together with more turns, constant temperature control, and twice-per-month PCR testing to all the staff (active search). The most important thing for us was to keep our workers and their families safe. Production did not

“A perfect coordination must be achieved to receive every one of the thousands parts included in the construction of a ship right on time, to avoid any delay in the construction process”

Ricardo Contreras New Projects Manager

stop, and we were able to deliver three new building projects without delay during the worst period of the crisis.”

Speaking of which, the most advanced project in the construction process is the NB Project N° 188, which is a Live Fish Carrier of 3,000 cubic metres of well capacity, 79.8 metres in length, 17.2 metres in breadth, and 6.15 metres of maximum draft at full capacity. Germán says, “Our client Patagonia Wellboats has been looking to include the latest technology that also reduces their

environmental impact. This vessel will include diesel-electric propulsion with a total electric power of 3,000 kW, a system that makes the fuel consumption more efficient and importantly reduces emissions. As all the main equipment is electric, the ship will be able to incorporate different energy sources such as green hydrogen when the required supply and distribution logistics exist. The project is near to be launched into the water.”

In addition, ASENAV’s Fishery and Oceanographic Research Vessel has began its construction for a national

agency due to the need for the public institute to have a coastal ship able to carry out acoustic surveys of fishery resources, evaluation of biomass through acoustic methods in coastal sectors and inland waters, and collection of samples of different types of marine living beings. Ricardo explains, “This ship (ASENAV project NB 191) will have a length of 30.80 metres, a beam of 9.00 metres, and a draft of 2.95 metres. She will be equipped to accommodate seven scientists and 10 crew members in 10 single and double rooms, as well as having a kitchen, dining room, recreation room and dressing rooms.

It will also have an acoustic, a wet, a dry and a fish processing lab for the analysis and study of all the samples obtained during its operation.”

The vessel includes a diesel-electric propulsion system, which lowers the carbon dioxide emissions, having less environmental impact and achieving better energy efficiency since the electric generators operate at constant revolutions. Germán elaborates, “This milestone highlights an important stage for the shipyard since it will mean the construction

of the first fishery and oceanographic research vessel that ASENAV will have built in its history, entering an important new segment, increasing its portfolio, and confirming the versatility of this company. This market is becoming even more important due to the increase in the need to learn and understand the marine fauna life cycle, to preserve these species in a better way, so they don’t continue disappearing due to overfishing or global warming. Therefore, it is expected that the demand for these ships will continue to surge, and ASENAV is expected to continue contributing to this growth for the next few years.”

The third project that German and Ricardo mention is the engineering of an Escort Tug under the RAstar 3200-W design of the well-known naval engineering office Robert Allan Ltd from Canada. Germán

“In our opinion, we are convinced that the main issue of the maritime industry in the upcoming years will be lowering emissions”

says, “This tugboat will have 80 tons of Bollard Pull, 32 metres of length overall, and 13.20 metres of beam, with a maximum draft of 6.5 metres. This project will be built as a speculative concept, which means it’s not yet sold to any shipowner, but it is available for any interested client during its construction. We can therefore expect to satisfy the

“The responsibility of Turbodal to comply technically with the required support has been the basis of a relationship that has been ongoing during the last few years and is expected to keep growing in the future” urgent need of the industry for this type of vessel. Additionally, this will be the second project ASENAV develops under this same speculative concept, having just delivered our NB 189 harbour tug, which was bought during the last stage of construction by Ultratug S.A. As our first construction was a success, we are convinced that this new project will have the same outcome.”

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This strategy represents a risk for companies since it must be financed internally without the certainty of its subsequent sale. Meticulous work is needed to control costs, expenses and investments, in order to finance the project while minimising risks, which has been executed with precision by the ASENAV team. Additionally, the operation requires a solid financial position and an impeccable track record to generate the necessary conditions of trust in shareholders, shipowners, the financial system, and suppliers.

It is therefore crucial for ASENAV to build a network of trusted partners, working with some of them for more than 45 years. Its partnership with Turbodal was formed during the construction of the last live fish carriers, where Turbodal supplied equipment for these vessels.

Ricardo adds, “The responsibility of Turbodal to comply technically with the required support has been the basis of a relationship that has been ongoing during the last few years and is expected to keep growing in the future. We have more projects lined up, where we expect to continue working in close contact with Turbodal.”

As for the future, ASENAV plans to continue helping its customers to hold the highest standards in each one of the different industries in which they are participating (fishery, cruising, aquaculture, ports management, towing etc). Germán concludes, “In our opinion, we are convinced that the main issue of the maritime industry in the upcoming years will be lowering emissions. Therefore, as a key player in the process of the construction of a vessel, we are prepared to include in our projects any alternative of propulsion system and greener technologies available in the market.”

For further information on ASENAV, visit www.asenav.cl/es/home