CHAIN - Sixth Edition by iThink Media

SIXTH EDITION

R A M CEO and Founder at Bricz discusses the new consumer-centric distribution network

ProcureCon

27 - 29 September, 2022 | Hyatt Regency Barcelona Tower, Spain

The Flagship Procurement Event to Benchmark Your Strategy with the World’s BIGGEST Companies BACK IN PERSON

Your Best Opportunity to Learn From and Network With CPOs and Heads of Procurement

200+

Procurement Professional to network with

60+

Thought-Leading Speakers

Going as group? Discover our special group prices and SAVE UP TO 50%

12+

Hours of Invaluable Networking Time

Get 10% OFF ticket price using our code PCEU10DI

Visit: procureconeu.wbrsearch.com Or simply scan the QR Code

Early confirmed sponsors include:

Days of Insightful Content

WELCOME

e are delighted to bring you our sixth edition of CHAIN, the go-to digital magazine for the latest global supply chain news and stories. Packing in five must-read interviews this issue, look no further for exclusive editorial content and fascinating discussion from the movers and shakers of the supply chain world. On page 6, Ram Gopalakrishnan, CEO and Founder at next-generation supply chain solutions provider, Bricz, says a focus on innovation and forming strategic partnerships are key to building the supply chain of tomorrow. Meanwhile, Angela Frederick, Partner & COO at C5Mi, explains what it means to be a female tech leader, together with an insight into her company’s end-to-end maturity proposition and goal of persistent growth (p34). Eric Martin is Vice President of IT and Technology at leading Canadian-owned wholesale distributor, Groupe Deschênes (p60). We talk to Eric about his vision for an integrated ecosystem of systems, processes and services, with human interactions at its core. And with the increased focus on environmentally-friendly organisations, Fabian Portmann, Chief Technology Officer at Farmer Connect, shares how traceability is helping to achieve more sustainable supply chains... Traceability is certainly one of the buzzwords for supply chains today (p74)! Last but not least, Giganet’s Chief Procurement Officer, Stuart Farrell, reveals his company’s plans to be the best internet service provider in the UK, underpinned by great people, a strong partnership ethic, and the customer at the heart of everything (p86). On the subject of sustainability, we have a great feature on the Sea Cargo Charter, which aims to set a new benchmark for responsible shipping, transparent climate reporting and improved decision making (p24). Plus, that’s not forgetting our report on McKinsey’s top three transformation priorities giving supply chains competitive advantage – resilience, agility and sustainability, of course (p48)! We hope you enjoy the issue!

Editor

Director

editorial@ithink.media

d.harris@ithink.media

Senior Digital Designer

Director

design@ithink.media

t.barnes@ithink.media

Anna McMahon

Daniel May

Danielle Harris

Tom Barnes

+44 (0) 203 890 1189 enquiries@ithink.media All rights reserved. Every effort is made to ensure the accuracy of material published in CHAIN Magazine. However, the company cannot accept responsibility for the claims made by advertisers or contributors, or inaccurate material supplied by advertisers. CHAIN magazine is a product of iThink Media Ltd. Company Registration Number: 10933897. Company Registered in England and Wales

SIXTH EDITION

Ram Gopalakrishnan, CEO and Founder at Bricz, on the new consumer-centric distribution network

The Sea Cargo Charter is laying the foundations for a net-zero emissions shipping industry

Meet C5Mi’s newest partner, Angela Frederick

Future-proofing supply chains with McKinsey’s top three priorities

Groupe Deschênes’ Eric Martin on his vision for an integrated ecosystem of systems, processes and services

Farmer Connect’s Fabian Portmann explains how traceability is helping towards achieving more sustainable supply chains

Stuart Farrell, Chief Procurement Officer at Giganet, on what it means to be the best ISP in the UK

Stuart Farrell

Angela Frederick

Fabian Portmann

48 Eric Martin

Ram Gopalakrishnan

6 60

COVER STORY

The Arrival of the New-Age ConsumerCentric Distribution Network RAM GOPALAKRISHNAN, CEO and Founder at Bricz, says a focus on innovation and forming strategic partnerships are key to building the supply chain of tomorrow.

ricz is a next-generation supply chain solutions provider, helping customers explore opportunities and generate value in every brick used to build their supply chain. Founded in January 2014 with The Home Depot as its first customer, Bricz’s initial focus was on technology enablement around Manhattan Associates solutions. Today, Bricz has diversified to work with multiple supply chain providers including Körber, Blue

Yonder, Manhattan Associates, and other leading robotics and supply chain technology providers. Ram Gopalakrishnan, CEO and Founder at Bricz, remembers, “As we started enabling different technologies, customers asked us to help them select the right technology. This lead to people coming to us early on in their transformation journey to assist

them in building a business case for modernisation. So, we started positioning ourselves as connectors of the dots between people, process and technology in supply chain. We created a lot of the data analytics capabilities, becoming a full lifecycle solutions provider for supply chain, encompassing network optimisation planning, distribution enablement, and omnichannel capabilities.”

Bricz now has over 85 people working across three regions – the US, the UK and India – and is considered by Gartner to be a niche provider with the most advanced capabilities for robotics assessment and enablement. Ram says, “We help people transform from a traditional set-up to a more modern distribution landscape. When we think about our primary value proposition today, we realise

there is a big shift in commerce, and people are evolving from a regular brick-and-mortar set-up to more of an omnichannel setup. In that journey, we can provide the process, data and technology solutions that will enable them to be successful. These days, our customer list is a who’s who in retail and third-party logistics providers. At any point in time, we service over 25 active customer project engagements.” 10

Over the last few years, the focus of Bricz has expanded from consulting services to being a partner for retailers in supply chain technology enablement and optimisation. In addition to enabling partner technologies, Bricz is building complementary technology that will assist retailers migrate from traditional logistics-centric networks to creating more powerful, consumer demand-driven network and inventory placement for the omnichannel customer. The Bricz

“We are building technology that will do continuous network optimisation and predictive inventory placement” Ram Gopalakrishnan, CEO and Founder

INFO (Inventory Network Fulfillment Optimisation) platform is being built from the ground up to power the urban fulfilment network. Ram adds, “We are building technology that will do continuous network optimisation and predictive inventory placement. In the past, inventory placement has always been constrained around static infrastructure. Today, we live in a flexible, sharing economy. Years ago, you parked taxis in a

central stand and deployed one when a customer asked for it, walked up to one, or got lucky waving for one. But today, we do not have to. We can get a ride at a moment’s notice. That is convenience. It’s that same convenience we are creating with our continuous optimisation and predictive placement, so retailers can delight their omnichannel customer.” Being a niche provider that is not tied to one single software vendor, Bricz offers customers an unbiased perspective on the available technology. Ram continues, “Because of our exposure to a variety of supply chain solutions, we are able to bring these cost 11

"We partnered with Bricz for our Labor Management implementation and WMS upgrade. Their value proposition is in the quality of work they do. The analytical skillset and experience of Bricz team members helped us successfully complete key implementations and meet our business goals" Senior Manager, The Home Depot

learnings to many of our customers. We provide very tailored solutions with our one-size-fits-one approach, which makes us very unique in the market. Through our product focus, we also bring a lot of thought leadership to building more modern and sustainable supply chains for our customers.” So, how is Bricz continuing to innovate within supply chain? Ram says you must first consider the supply chain technology landscape. He explains, “In the 70s and 80s, we took the first steps towards organisation, which lead to ERP technology. In the 90s, people then started asking how they could make the process more efficient, with warehouse management solutions being the star of the late 90s and early 2000s. At that point, ecommerce started becoming prominent, and automated distribution management came in in the late 2000s. Ecommerce then evolved to create a necessity for more efficient last-mile deliveries, so for the last eight years, many providers have been focused on last-mile technology.” Ram continues, “When you think about the evolution of distribution, for a long time, the distribution layout has remained logistic-centric. With the shift in commerce, a lot of commerce that was 95 per cent brick-and-mortar and 5 per cent ecommerce is now up to 30-40 per 13

cent ecommerce. A lot of retailers are muscling through the shift in commerce with existing networks. But, in the future, many will move towards more consumer-centric networks. Such a transformation may mean six distribution centres, 14 micro-fulfilment centres, and 20 super-fulfilling stores, comprising pop-up distribution and third-party logistics. To create that consumercentric network, you must be tightly aligned with the location of your consumers, so you can offer better service levels.

centres based on demand clusters and anticipated demand in different regions for ecommerce. Ram explains, “With smaller micro-fulfilment centres, the customer may be unsure what to run in terms of WMS. We help to identify and enable the right solutions, as well as advising on the robotics capabilities within those. We become the central architect of the supply chain journey to consumer-centric networks, determining the capacity of the micro-fulfilment

“Together with the flexibility that Körber can offer, we are able to tailor solutions for a lot of businesses” “And to migrate from traditional to more modern networks, you need to call on a provider that brings a range of solutions, intelligence, data analytics, and a deep understanding of the technology enablement capabilities. This is where Bricz can step in to help customers on their journey to create these new-age consumercentric distribution networks.” Bricz is able to advise customers at every step of their journey, providing analytical answers to establishing where customers should locate their micro-fulfilment 14

centre, the specific product subsets, and the quantities needed in each location. Our AI/ ML platform continuously learns and adapts to provide these recommendations.” Given Bricz’s thought leadership offering, customers are able to relate to the value proposition. Ram continues, “We had a Körber engagement where the customer was shipping chocolates and we helped them determine how many ice packs were needed to be stored in each shipping container.

One partner, end-to-end solutions

Conquer supply chain complexity Supply Chain Software

Voice, Vision and Mobility Software Consulting and Implementation Robotics Solutions

Learn more 15

“Being able to collectively deliver for the customer and share the success is great. The more transparency a partner brings, the more opportunities the partnership will create. It has got to be a complementary relationship” Ram Gopalakrishnan, CEO and Founder

YOU CAN'T AFFFORD HICCUPS IN YOUR SUPPLY CHAIN STOP HOLDING YOUR BREATH AND DO SOMETHING ABOUT IT.

Verte removes the complexities by providing real-time visibility with a single cloud platform that is always current. The Verte Unified Commerce Platform offers integrations, OMS,WMS, and TMS to scale your brand.

THE SUPPLY CHAIN THAT THINKS 18

WWW.PROJECTVERTE.COM | SALES@PROJECTVERTE.COM | 877.760.0381

We bring a lot of thought leadership that extends beyond the traditional solutions. “Together with the flexibility that Körber can offer, we are able to tailor solutions for a lot of businesses. Collectively, we are providing compelling value to our customers, particularly in cases where there is uncertainty.” Bricz has partnered with Verte for its holistic supply chain platform. Ram says, “Many organisations

chain journey. It is exciting to be working with them!” Collaborating with organisations such as Körber and Verte produces powerful capabilities for Bricz’s customers, which Ram believes is one of the keys to the company’s success. He explains, “Supply chain is vast, and people have mastered specific areas over long periods of time. There is a need for a central provider that can architect a lot of the moving parts, and at the same time, with

“Verte has built technology from the ground up to address the full lifecycle of the distribution supply chain journey. It is exciting to be working with them!” are looking for a single platform that will tie everything together and make the whole supply chain process interconnected, as well as a solution that is quick and easy to implement. They are looking for one solutions provider offering a unified platform that gives visibility throughout the whole order lifecycle, enabling technology through each of the different steps on the way to getting the product in the hands of the consumer. Verte has built technology from the ground up to address the full lifecycle of the distribution supply

well-established solutions, there isn’t the need to reinvent the wheel. Where that is the case, it definitely makes sense to form strategic partnerships, so you can create collective value for the customer.” Ram highlights that partnerships must be a two-way street in order to be successful. He adds, “Being able to collectively deliver for the customer and share the success is great. The more transparency a partner brings, the more opportunities the 19

partnership will create. It has got to be a complementary relationship.” Having grown from a team of 34 to 85 people, Ram says there are no plans to slow down Bricz’s expansion. He elaborates, “The type of customers we have signed in the recent past includes the likes of Chanel, Adidas and Martin Brower, among other powerhouse brand and operations. We are

currently on a very rapid growth phase. Our focus is to make sure over the course of the next two to three years that we fully transform into the provider that can enable our own technology, whilst helping customers on their holistic journey from logistic-centric to consumercentric networks. As part of that process, year on year for the last few years, we have been on a 60+

per cent growth rate, and I expect it to go even higher. It is about being at the right place at the right time, and with the pandemic, it accelerated the need for a solution like ours in the marketplace.” In the near future, Ram anticipates that the new-age supply chain will see the arrival of giant vending machines. He explains, “People will

place an order from their phone, and without human interaction, they will go to a place to collect it, or alternatively, it will be automatically delivered by a lastmile provider. There is technology that exists for quickly ramping up that location tracking inventory. We are positioning ourselves to offer the technology that will do this. We see ourselves as an unbiased

“As we embarked on a robotics journey, we were looking for a consulting partner that understood pick assist, AGVs, ASRS, and more. In Bricz, we found the right unbiased partner to help us develop a roadmap that would maximise our ROI and would put us on the path to success” Shawn Everson, Chief Logistics Officer, Ingram Content Group

“Great vision and product that bridges gaps for online in traditional retail systems” VP Supply Chain Transformation, Luxury Lifestyle Brand

advisor partner that can take our customers on this journey.” Recent years have highlighted the opportunities and challenges in supply chain. Ram concludes, “Many organisations are going through transformations and are in the process of rethinking and reimagining supply chain and distribution. It definitely takes a change in mindset, which the pandemic created. It provided a platform for us to come in and help people going through their transformation journey, always with people, process and technology in mind.” For further information on Bricz, visit www.bricz.com

S U S TA I N A B I L I T Y

TRANSPARENT REPORTING OF

SHIPPING EMISSION

The Sea Cargo Charter is an important step in laying the foundations for a net-zero emissions shipping industry.

A GROUP OF THE WORLD’S LARGEST ENERGY, AGRICULTURE, MINING, AND COMMODITY TRADING COMPANIES WILL FOR THE FIRST TIME ASSESS AND DISCLOSE THE CLIMATE ALIGNMENT OF THEIR SHIPPING ACTIVITIES WITH THE NEW SEA CARGO CHARTER. SE ts aim is to set a new benchmark for responsible shipping, transparent climate reporting, and improved decision making in line with United Nations decarbonisation targets. United Nations agencies estimate the international shipping industry to carry around 80 per cent of world trade flows and to be responsible for 2-3 per cent of global greenhouse gas emissions annually. Large industrial corporations are significant users of

international shipping services. The shipping of crude oil, coal, iron ore, grain and other bulk commodities used worldwide make up over 80 per cent of global seaborne trade. The Sea Cargo Charter is a global framework that allows for the integration of climate considerations into chartering decisions to favour climate-aligned maritime transport. The Charter establishes a common baseline to quantitatively assess and disclose whether shipping activities are aligned with

adopted climate goals. It is consistent with the policies and ambitions adopted by member states of the International Maritime Organization (IMO), a specialised agency of the United Nations responsible for regulating shipping. This includes its ambition for greenhouse gas emissions from international shipping to peak as soon as possible and to reduce shipping’s 28

total annual greenhouse gas emissions by at least 50 per cent of 2008 levels by 2050, with a strong emphasis on zero emissions. Jan Dieleman, President, Cargill Ocean Transportation and Chair of the Sea Cargo Charter drafting group, said, “A standard greenhouse gas emissions reporting process will simplify some of the complexities often associated with reporting. It

A STANDARD GREENHOUSE GAS EMISSIONS REPORTING PROCESS WILL SIMPLIFY SOME OF THE COMPLEXITIES OFTEN ASSOCIATED WITH REPORTING Jan Dieleman, President, Cargill Ocean Transportation and Chair of the Sea Cargo Charter drafting group

will encourage a more transparent and consistent approach to tracking emissions, which will be a critical part of making shipping more sustainable.” Rasmus Bach Nielsen, Global Head Fuel Decarbonisation, Trafigura, commented, “The shipping industry as a whole needs to adopt a transparent approach, advocated by the Sea Cargo Charter, in order

to fully understand the sector’s overall greenhouse gas footprint and for us to collectively rise to the challenges faced.” Grahaeme Henderson, Global Head, Shell Shipping & Maritime, added, “The Sea Cargo Charter is an important step in laying the foundations for a net-zero emissions shipping industry. Collaboration such as this, from 29

THE SEA CARGO CHARTER IS INTENDED TO EVOLVE OVER TIME AS THE IMO ADJUSTS ITS POLICIES AND REGULATIONS

across the sector, is vital to scale-up customer demand for low- or zeroemissions shipping. This same spirit of collaboration is also vital in the pursuit of the technological advances needed to unlock decarbonisation solutions, and in building industry support for regulation which can create an ambitious but level-playing field under which to invest. Building on this momentum, we would like the IMO to use its 2023 strategy review to set the trajectory for the sector to move to net-zero emissions by 2050.” The 17 Founding Signatories of the Sea Cargo Charter include ADM, Anglo American, Bunge, Cargill Ocean Transportation, COFCO International, Dow, Equinor, Gunvor Group, Klaveness Combination Carriers, Louis Dreyfus Company, Norden, Occidental, Shell, Torvald Klaveness, Total, Trafigura, and Ørsted. All other responsible shippers are invited to join the initiative.

Johannah Christensen, Managing Director, Head of Projects & Programmes at international non-profit, Global Maritime Forum, said, “The Sea Cargo Charter enables leaders from diverse industry sectors to use their influence to drive change and promote shipping’s green transition by choosing maritime transport that is aligned with

agreed climate targets over that which is not.” The Sea Cargo Charter is intended to evolve over time as the IMO adjusts its policies and regulations, and when further adverse environmental and social impacts are identified for inclusion. It also aims to support other initiatives developed to address climate,

environment, and social risks in shipping. The Sea Cargo Charter is applicable to bulk charterers with interest in the cargo on board, those who simply charter out the vessels they charter in, as well as the owners and all charterers in a charterparty chain. Its development has been led by

global shippers – Anglo American, Cargill Ocean Transportation, Dow, Norden, Total, Trafigura – and leading industry players – Euronav, Gorrissen Federspiel, Stena Bulk – with expert support provided by the Global Maritime Forum, Smart Freight Centre, University College London Energy Institute/UMAS, and Stephenson Harwood.

For further information on the Sea Cargo Charter, visit www.seacargocharter.org

BUSINESS INTERVIEW

People, Process & Technology Convergence We talk to Angie Frederick, Partner & COO at C5MI, about her company’s end-to-end maturity proposition and goal of persistent growth.

5MI unleashes business value through the convergence of people, process, and technology. They have hired top talent that has managed supply chains, manufacturing facilities, and has great experience with using and 34

deploying SAP technology. They are successful with their customers because they know what it takes to use the technology the right way. The customer experience you will get with C5MI is based on their successes they had from using the solutions themselves.

Angie Frederick, Partner & COO at C5MI, explains, “We have experience across the maturity curve journey to Industry 4.0. We offer expertise in enterprise resource planning (ERP), working predominantly with SAP. We implement SAP systems, as well as going into companies that have implemented SAP, but are not happy with how it was customised. We can help streamline their processes to make it much easier to use, as well as backout customisation that is not driving the value they need. In the ERP space, we also do work on the integration side, connecting the digital core in a way that allows for data convergence and more visibility.”

Angie Frederick, Partner & COO 36

Part of the maturity curve journey includes visibility and adaptability. This focus is primarily on C5MI’s service line they call Supply Chain Agility and Resiliency (SCAR). On the subject of SCAR, Angie says that where customers have a digital core in place, C5MI can assist in helping them best utilise the system. She continues, “How are your processes set up around using the system? How is the data set up to get the right results that you need? How easy is it to get the data to enable you to make decisions? All of this works 38

towards helping supply chains to be more agile and more resilient towards disruption. As the last few years have taught us, we were not ready for major disruptions. When Covid hit, it really drove a bigger challenge and more of a need to harness data for better insights.” In a bid to tackle disruption, C5MI helps its customers create a digital plan for every part of the business, managing its materials from when they are received, through manufacturing, distribution, and ultimately to when they reach the

“The maturity curve model is different to that of C5MI’s competitors because it offers solutions at all points of the curve, from digital core through to autonomy”

customer. Angie explains, “We do all of this digitally, so that the customer is able to see it and measure it. We also offer adoption metrics, which measure the health of how the customer is utilising their system. Adaptability is about managing risk, as well as the ability to pivot quickly when faced with disruption.” Angie considers Industry 4.0 to be the end game for the large majority of companies. However, not all of them will get there. She says, “This is about getting to the point

where organisations can predict issues and fix things before the situation arises. When the digital core systems are integrated with Industrial Internet of Things (IIoT), cloud data analytics, and machine learning, you start to create a common operational picture (COP) that becomes the trusted single version of truth system. Once the transactional world is fully connected to the physical world, you can start to drive autonomous actions that take the human out of the loop to drive exponential productivity. Considering the condition of our global supply chains, the application of Industry 4.0 technology will be the only way we overcome these issues and unleash an incredible level of productivity that allows the world to overcome the inflationary pressure it is under.” 39

All four of C5MI’s partners have done this work before and are bringing their experience to other companies. The maturity curve model is different to that of C5MI’s competitors because it offers solutions at all points of the curve, from digital core through to autonomy. Angie adds, “We can work in many different phases for one client, or maybe a client is good at one area and not in another. It does not always go in a

a return on their investment, helping them to use the system to take their business to the next level. This is where they will be able to automate some of their warehouse processes, see where they have issues, do their work more efficiently, and eliminate some manual tasks.” Angie adds, “We are also working with clients where we are helping their supply base.

“C5MI is growing. By adding diversity of talent to the team, it will only take the company further. We will continue to build our teams and support their journeys to becoming the best version of themselves” maturity curve progression. Most companies do it out of sequence and that’s OK. We offer help in any one of these areas, assisting clients to utilise the systems to the best of their ability and get the value their company is seeking.” C5MI is currently working with the government in implementing one of the largest SAP Extended Warehouse Management (EWM) implementations. Angie enthuses, “There are over a hundred different locations around the world that we are deploying for them. We are working with them to get 40

The supply base is constrained right now, struggling to keep up with demand. They don’t have the visibility they need and this keeps them from understanding where they need to prioritise, and fix some of the inefficiencies throughout their manufacturing facilities. The aim is to help them react faster and get in front of some of the demand that we are seeing today.” Speaking of visibility, Angie thinks it is essential for enabling clients to be able to make sustainability commitments. She

Start-to-finish profitability. End-to-end sustainability. That’s Supply Chain Economics. SAP Digital Supply Chain Solutions give you the ability to design, plan, manufacture, deliver and operate a sustainable process. sap.com/supplychaineconomics

“SAP continues to modify their solutions to benefit the customer. We believe strongly in the technology, and more importantly, how to use it for great value” says, “ESG is incredibly important to us at C5MI. Companies that make environmental, social, and governance concerns a priority will reap the benefit. Investors are looking at companies that have strong ESG positions as a positive to the company’s long-term success. We can help them get there.” Building an ecosystem of partners that share the same values is key for C5MI. Angie explains, “We believe in the mission and that is to get real value for our customers. It’s important for our partners to have this same mission. Our partnership with SAP is exactly that. SAP continues to modify their solutions to benefit the customer. We believe strongly in the technology, and more importantly, how to use it for great value.” As mentioned, one such partner that C5MI works closely with is SAP. Angie says, “We have a strong relationship with SAP, having worked with them for many years in our previous roles, as well as playing

an important part in our C5MI journey. All the partners have used, deployed, and built upon SAP, so our relationship is about building on the great work they have already done. For example, we have built a couple of tools with SAP to help clients solve issues in material replenishment and asset management. Digital Pull Systems (DPS) and Digital Reliability Centered Maintenance (DRCM®) are products that C5MI built with SAP. We are very proud of these products and the value they have today with some of our current clients.” Because technology is evolving so fast, it is hard to keep up, so the aim for C5MI is to try not to overwhelm its clients. Angie explains, “We focus first and foremost on what the client is trying to achieve for their business, and then we can talk technology. It is easy to get enamoured by all the cool stuff out there, and as a result, not really hit the mark. We therefore focus on people, 43

process, and then we bring in technology convergence. With the push for Industry 4.0, I believe it has got to serve the purpose of fixing a problem. The supply chain is struggling with disruption right now. Getting visibility to be able to manage its priorities for the materials it needs is, at times, the only direction a customer can focus on. For those clients, it gives them more traction to help them solve their challenges through focused efforts on their current systems – how to best use 44

them, see the right data, and drive improvements quickly. Once this can get under control and stable, it makes sense to add some focus on predictive capabilities and ultimately autonomous work. We focus on business problems first, and that always leads to the right solution for where the customer can unleash the most potential value. Our solutions provide tangible results and are accretive, meaning the return on investment (ROI) is so fast that these solutions pay for themselves.”

On the people side, C5MI is passionate about building a strong team of individuals who have the ability to understand the business process needs. Angie explains, “The people we hire are the best in their area, be it supply chain planning, manufacturing, warehouse management, solution architecture etc. They understand the technology, so they can translate to both the technical and business process side, which is so important for our clients. If we go in and speak to a general manager of manufacturing about helping to drive improvements and get weighed down in the technical speak, we will lose them. They just want to know what it means to them and their role. Therefore, we have people who can translate the technology to put in processes that will drive results at the bottom line. They really know how to deliver the value to the client and how it impacts the different roles at their company.” C5MI’s client base spans several different industries, including the government, construction and mining, aerospace, and others. Angie continues, “In the last five years, we have scaled up quickly, and we will continue to grow. We will drive across our maturity model and get out there far and wide, delivering results for our

clients. We are aiming to continue to grow the footprint, building up our resource pool and driving employee experience, because we are passionate about inspiring people to want to work for us. Our focus is therefore on our culture and delivering on our commitments to our customers.” Angie was brought in at the beginning of the year to complement the C5MI partner team in their efforts of scaling up. She says, “I have known the other partners for many years, and they are a key reason I came to C5MI. I knew that they would be supportive

C5MI spends their time where the value is driven on the shop floor

of what I would bring to the table, and we all bring strong diversity of talent to the company’s success. I am proud to be in this line of work, but also proud to be a role model as a female leader in this space as well. Recently, I have been accepted into the only network organisation that is specifically designed for the most powerful women executives, Chief. My goal as part of this network is to continue to grow as a leader and role model in the industry. I believe continuous learning and personal growth are important to bring value to C5MI and our employees that we are leading.” Alongside Angie’s position as a female role model, she is also responsible for human resources, helping to support the next generation of leaders in the technology and supply chain space. She concludes, “C5MI is growing. By adding diversity of talent to the team, it will only take the company further. We will continue to build our teams and support their journeys to becoming the best version of themselves.” For further information on C5MI, visit www.c5mi.com 46

RESILIENCE & AGILITY

McKinsey says three new long-term transformation priorities form a fresh focus to give competitive advantage.

THE PAST TWO YEARS HAVE PUSHED THE SUBJECT OF SUPPLY CHAINS TO THE TOP OF THE AGENDA. he Covid-19 crisis, post-pandemic economic effects, and the ongoing conflict in Ukraine have exposed the vulnerabilities of today’s global supply chains, and supply chain leaders now find themselves in an unfamiliar position: they have the attention of top management and a mandate to make real change. Forward-thinking Chief Supply Chain Officers (CSCOs) now have an opportunity to futureproof their supply chains. But according to the latest McKinsey report, they can only do that by recognising the three new priorities – resilience, agility and sustainability – alongside the function’s traditional objectives.

BOOSTING SUPPLY CHAIN RESILIENCE Supply chains have always been vulnerable to disruption. Pre-pandemic research by the McKinsey Global Institute found that, on average, companies experience a disruption of one to two months in duration every 3.7 years. Historical data also show that these costs are not inevitable. During the pandemic’s early stages, sportswear maker Nike accelerated a supply chain technology program that used radio frequency identification (RFID) technology to track products flowing through outsourced manufacturing operations. The company also used predictive-demand analytics to minimise the impact of store closures across 51

China. By rerouting inventory from in-store to digital-sales channels and acting early to minimise excess inventory build-up across its network, the company was able to limit sales declines in the region to just 5 per cent. Over the same period, major competitors suffered much more significant drops in sales. Supply chain risk manifests at the intersection of vulnerability and exposure to unforeseen events. The first step in mitigating that risk is a clear understanding of the organisation’s supply chain vulnerabilities. Which suppliers, processes, or facilities present potential single points of failure in the supply chain? Which critical inputs are at risk from shortages or price volatility? Today, most organisations lack effective systems to measure and monitor those vulnerabilities, and few have such visibility beyond their direct suppliers. In a 2021 McKinsey survey of senior supply chain executives, just under half said they understood the location of their tier-one suppliers and the key risks those suppliers face. But only 2 per cent could make the same claim about suppliers in the third tier and beyond. That matters because most disruptions originate in these deeper supply chain tiers. 52

Closing the industry’s current knowledge gaps will require it to increase its surveillance of supply chain participants and its understanding of the physical, financial, political, and social risks they may face. The complexity and diversity of supply chain risks require smart management tools, and leading companies are applying a range of new techniques, from digital alerting systems to track potential disruptive events, to risk ‘heat maps’ that help them focus their attention on high-risk regions and suppliers.

execution decisions are made in a way that balances efficiency and vulnerability. And because supply chain risk is a continually moving target, the organisation should conduct regular stress tests and reviews to ensure its resilience measures remain appropriate.

INCREASING SUPPLY CHAIN AGILITY

Companies will also need a management infrastructure to steer a proactive response to these risks. Such an infrastructure would include a dedicated team, headed by a senior leader, with the remit to identify, prioritise, and respond to vulnerabilities. Those responses might include structural changes to the supply chain, as well as the development of detailed contingency plans for disruptive events. Introducing resilience metrics into supply chain KPIs helps the whole organisation to ensure supply chain design and

During the Covid-19 pandemic, 77 per cent of US consumers changed stores, brands, or the way they shop. Much of that change was driven by necessity. People went online when they couldn’t access their regular stores, and two-thirds said that lack of availability was the primary reason for switching brands. The big winners of the crisis were companies, often the largest players, that could keep products flowing to their customers in a difficult operating environment. In the post-pandemic economy, established brands will face new challenges. As consumergenerated content replaces traditional brand marketing campaigns, companies have less control over the peaks or troughs of demand. Where a business might have once spent months preparing its supply chains for a carefully targeted promotional campaign, now a single viral video 53

can bring attention from millions of consumers overnight. New players are disrupting retail channels too, widening available choices and creating space for smaller, independent manufacturers. While consumers opted for the security of big brands during the Covid-19 pandemic, a preference for smaller producers is rising, especially among younger cohorts. And the growth of co-manufacturing businesses and third-party logistics (3PLs) organisations means new entrants can compete in consumer markets with fewer expensive manufacturing and supply chain assets. 54

For incumbents, the lesson is clear: move at the same speed as consumers. That means creating innovative products and brands that meet the changing needs of different consumer groups as those needs emerge. And it means greater skill in managing complex portfolios of brands with different market characteristics and delivering their products through multiple channels. This fast-moving, fragmented, consumer-centric world will require a different sort of supply chain. Traditional supply chains sought to achieve stability and minimise costs. Future supply chains will need to be much more dynamic – and be able to predict, prepare, and respond to rapidly evolving demand and a continually changing product and

THE DRIVE FOR AGILITY MAY REQUIRE COMPANIES TO REASSESS MAKE-VERSUS-BUY DECISIONS channel mix. In short, supply chains will need to become agile. The good news for CSCOs is that agility and resilience are highly complementary: an agile supply chain is inherently more resilient. To be truly effective, however, this agility would need to extend into R&D, procurement, planning, manufacturing, and logistics. At the planning stage, supply chain teams will need to work in a much more proactive way. As potential market opportunities are identified, the supply chain function can begin creating scenarios that are ready for implementation alongside the development of the new product or market offering. After launch, the use of advanced techniques for demand sensing and dynamic forecasting, aided by machine learning technologies, is set to become an essential part of day-to-day supply chain operations. In supply chain execution, agility requires new capabilities and tools.

Agile operations make extensive use of digital technologies in manufacturing, and maximise the use of smart automation in both production and logistics settings. Unlike the rigid supply chain automation systems of the past, technologies such as collaborative robots and smart packaging machines are capable of faster changeovers and can handle a much wider range of products and shipment types. The drive for agility may require companies to reassess make-versus-buy decisions. In manufacturing, big players typically keep the production of their stable, high-volume products in-house, using co-manufacturers for niche and special projects. Leading companies appear likely to invert this trend, investing in flexible core assets and skills that allow their own manufacturing to respond quickly to rapidly changing demands – and, in some cases, outsourcing stable, high-volume products to costadvantaged external providers. In 55

downstream logistics, meanwhile, greater use of 3PLs may become the most cost-effective way to increase asset flexibility and proximity to customers. Agile supply chains will also need skilled, flexible people. An agile supply chain workforce is comfortable working with and alongside advanced technologies, and personnel may need a wider range of skills so they can move between tasks as business needs change. Accordingly, agile supply chains make use of agile teams and working methods, borrowing elements of the approach that have transformed flexibility, productivity, and quality in the software industry and beyond. Agile organisational principles are well-described elsewhere, but key elements of the approach include the use of tight-knit, cross-functional teams that work together to implement new concepts and solve difficult problems in short, incremental sprints. These principles are already gaining traction across a range of industries.

ACHIEVING SUPPLY CHAIN SUSTAINABILITY

Post-Covid-19, consumers have become even more likely to 56

prefer brands that offer robust sustainability credentials and a strong purpose, but industry surveys conducted in mid-2020 suggested that environmental, social, and governance (ESG) topics slipped down companies’ list of priorities during the pandemic. Big players are now making up for lost time. In 2021, 29 per cent of companies included ESG metrics in their staff incentive plans. Companies looking to avoid the increasing reputational, regulatory, and financial risks of poor ESG performance are being pressed to act. And strong environmental actions are also delivering real operational results. The supply chain has a central role to play in the enterprise sustainability transformation. Of nine ESG initiatives highlighted by senior executives in a 2020 industry survey, most either involve the supply chain directly, or have significant implications for supply chain set-ups. The foundation for an ESGfocused transformation is a clear understanding of the organisation’s baseline impact. That would include, for example, quantification of the resources consumed and emissions generated by the company’s direct activities (Scopes 1 and 2) and by participants in its

THE SUPPLY CHAIN HAS A CENTRAL ROLE TO PLAY IN THE ENTERPRISE SUSTAINABILITY TRANSFORMATION wider supply chain (Scope 3). This baseline allows an organisation to identify the largest opportunities for improvement, helping it set challenging but realistic goals and timescales that can be communicated to external stakeholders. Capturing those improvements requires rigorous sustainability KPIs and changes from the shop floor to the boardroom, including optimised operating practices, an ESG focus in procurement decisions, and the adoption of more sustainable technologies in existing and planned manufacturing or logistics projects.

These new priorities of resilience, agility, and sustainability cannot be tacked on to existing supply chain set-ups. Realistically, they will need to be built in from the foundation and considered in every element of supply chain design, organisation, and operation. For many companies, that will likely require a change in mindset from the top, with risk, agility, and sustainability KPIs considered alongside traditional ones focused on cost, capital usage, service, and quality. To read the report in full visit, www.mckinsey.com 57

FOURTH EDITION

THIRD EDITION

SECOND EDITION

FIRST EDITION

EXCLUSIVES

SAP explains the importance of the digitalisation of the supply chain for customers, and why cloud services make the company more customer-centric

EVISULCXE

EXCLUSIVE

WHERE DIGITALISATION

R A M

CEO and Founder at Hapag-Lloyd’s Director of Procurement Excellence, Sheds light on his company’s Julia Finning, and Head of Procurement, Daniel Braune, Bricz discusses the expertise, helping customers discuss the role of digitalisation in striving for the increase their operational new consumer-centric industry-leading procurement function distribution network efficiency

efficiency distribution network industry-leading procurement function increase their operational new consumer-centric discuss the role of digitalisation in striving for the expertise, helping customers Bricz discusses the Julia Finning, and Head of Procurement, Daniel Braune, Sheds light on his company’s Hapag-Lloyd’s Director of Procurement Excellence, CEO and Founder at

R A M DIGITALISATION WHERE 58

company more customer-centric why cloud services make the supply chain for customers, and

SIXTH EDITION

FIFTH EDITION

NEVER MISS AN ISSUE SIGN UP FOR FREE!

Produced by

BUSINESS INTERVIEW

Evolve The Digital Landscape We talk to ERIC MARTIN, Vice President of IT and Digitalisation, at Groupe Deschênes, about his company’s vision for an integrated ecosystem of systems, processes and services, with human interactions at its core.

roupe Deschênes is a leading Canadianowned wholesale distributor that serves the plumbing and heating, electrical, waterworks, fire protection, HVAC/R, and auto parts markets, as well as measurement and control equipment to the oil and gas markets.

Founded in 1940 and based out of Montreal, Groupe Deschênes has made a number of acquisitions over the years, and now operates coast to coast, from the east to the west of Canada, down to the west coast of the US, all the way to Texas. Starting life with just one plumbing and heating company, it now has 16 companies to its name, and over 2 billion dollars in annual revenue. Eric Martin, Vice President of IT and Digitalisation, at Groupe Deschênes, says the aim is now to evolve the company to its next level. He elaborates, “In the last 16 to 18 months, four new companies have been acquired and this has generated a whole bunch of opportunities. I was brought in to the company to lead the digital transformation. I have a background of around 20 years as an IT executive, and experience in business management, so I am wellplaced to lead this team of fantastic individuals and make the transformation possible. We have our work cut out integrating 16 companies!” 62

The industry is expanding, with more touchpoints coming in from such areas as retail and ecommerce. Eric says that although Groupe Deschênes does business with large companies, the major bulk of its work is with smaller businesses and entrepreneurs. He continues, “Although we carry hundreds of thousands of products, and that is important, we place real value in human relationships and human 64

services. For us as a company, the differentiator is much more on the human interactions side.” Groupe Deschênes’ digital transformation journey started about three years ago with a diagnostic assessment. Although the strategy at the time seemed to be working, it was not sufficient for fully competing in the digital age. Eric was tasked with the job of designing a new strategy to evolve

“Our vision is very similar to many players within the industry, to generate an ecosystem within the market to connect customers, partners, vendors, and other groups that complete the business” Eric Martin, Vice President of IT and Digitalisation

groups that complete the business. We have a lot of work to do, integrating multiple companies into a more cohesive approach to the various markets.” the digital landscape to a more integrated ecosystem of systems, processes, services, and company. Eric says, “Our vision is very similar to many players within the industry, to generate an ecosystem within the market to connect customers, partners, vendors, and other

As part of the transformation, Eric and his team are changing Groupe Deschênes’ ERP. Eric adds, “The current ERP is more than 20 years old. It has been customised to fit the needs of each of the different businesses, but it is absolutely impossible to upgrade, connect and interact, so we are replacing

our old system with an SAP solution. Our initial goal is to integrate eight companies into that system, and progressively add more to the program as it makes sense.” The second element is based on process harmonisation and data standardisation. Eric says, “We have also decided to replace our ecommerce platform and move other strategic applications to the

So, how does Eric know if the transformation will be a success? He answers, “Part of the success factors of such a transformation include the involvement of the business and key stakeholders. It is too early in the process to say whether the transformation has been effective, either strategically or financially. However, from a business engagement perspective – working on the right priorities, having the right discussions, and challenging

“The current ERP is more than 20 years old. It has been customised to fit the needs of each of the different businesses, but it is absolutely impossible to upgrade, connect and interact, so we are replacing our old system with an SAP solution” cloud as we replace or upgrade them. All of the new solutions are preferably SAAS. At the same time, we are pushing on the data reorganisation and integration of all the platforms to an EIPAAS approach. We think we have a couple of years working on the foundation before we can start reaching out to our partners, sharing information in a more effective way. But, at the moment, there is lots and lots happening simultaneously.”

the paradigms that we have been operating in – I believe it will be very successful. Going forward, we may nosedive on a couple of these elements, and face some harsh realities that we didn’t foresee. But, as I often say to my team, it’s not falling that’s the problem – but not coming back on your feet fast! I think that we have an eyes-wide-open approach and the ingredients to be successful. It has been an interesting adventure so far!”

Start-to-finish profitability End-to-end sustainability SAP Digital Supply Chain solutions give you the ability to design, plan, manufacture, deliver and operate a more sustainable process

From suppliers to customers: driving your supply chain excellence As a proud partner of Deschenes Group, we have accompanied over 150 enterprises with smart technologies and integrated solutions to optimize their business effectiveness, throughout their entire supply chain.

LEARN MORE

W W W. B E Y O N D T E C H N O L O G I E S . C O M

Given the magnitude of the challenge, Groupe Deschênes elected to partner with other companies to manage the change and ensure they were having the right discussions at the right time. Eric says, “Talent shortage is a big issue everywhere. Although I have more than doubled the staff level in my team in the last 12 months, it is not sufficient. We therefore need to team up with companies that share the same

momentum, he adds, “AI is a hot technology topic, but it is still very difficult to implement on a broad basis. We are at the beginning of an efficiency curve where AI is concerned. I would say that everything related to data science is evolving quickly. Blockchain presents opportunities in supply chain, but we have a long way to go before we can see the benefits. I also believe augmented reality is maturing – probably not to where

“We have partnered with Beyond Technologies because they are excellent in their field of SAP implementation and integration” values and have competency in the areas that are important to us. We have partnered with Beyond Technologies because they are excellent in their field of SAP implementation and integration. It was an advantage to partner with a local and bilingual company because we have a language challenge being a Francophone based firm, headquartered in a French speaking province, but with operations across the country. We needed a company that spoke both French and English to be able to support us.” In terms of the latest technology trends that Eric feels are gaining

we would like it to be – but there are significant opportunities there. There are a number of important technologies we hear a lot about including quantum computing. I think quantum computing is going to revolutionise everything related to computing, but it will take a few more years before we get there.” Groupe Deschênes is taking multiple steps to grow the business including growth by acquisition, which is progressing well. Eric elaborates, “We have more than doubled the size of the business in five years. Organic growth will come through expanding in our markets, 69

and digitalisation is going to support that significantly. The investments we are making in combining the human-tohuman relationships and the digital side are going to help grow the business. We have a lot of opportunities since we have acquired companies in different markets, allowing us to penetrate further into local geographies. With the size of our network across the country, network optimisation is an area we can really benefit from.” Eric highlights the fact that Groupe Deschênes’ customers can visit a branch for advice, information and support, adding value to the business. He continues, “We are there to provide the products that our customers need, alongside the additional insights and services that you simply do not get online. We want to combine the ease of getting the goods with these value-added services and insights. As human beings, we need the human touch. Through the pandemic, we lived in the online world and craved human contact. At the same time, we have seen the value and efficiency that digital can bring, so it is an interesting balance.”

As a final point, Eric discusses his vision for Groupe Deschênes for the rest of 2022 and beyond. He concludes, “From a company perspective, there will be lots of change management, discussions, and hard work. The teams that are working on the various projects face intense complexity. The beauty is that the leaders in each of the businesses have shown openness and a constructive approach to solving these issues. My advice would usually be to tackle one big project at a time, and not to take on too many initiatives simultaneously in order to minimise risks. However, I do not believe the market dynamic will allow us to take our time. We need all hands on deck! I have been so impressed by our people, who are giving everything they have to make it a success. And I am having a ball working in a company that is very positive and constructive, with fantastic people that make us all look good!” For further information on Groupe Deschênes, visit www.groupedeschenes.com

BUSINESS INTERVIEW

THE ROLE OF TECHNOLOGY IN DELIVERING END-TO-END TRACEABILITY Fabian Portmann, Chief Technology Officer at farmer connect, explains how traceability is helping drive forward more sustainable supply chains. wiss-based farmer connect is a global company with employees worldwide, as well as international clients spanning all four hemispheres. At its core, it delivers trusted end-to-end traceability solutions to global supply chains.

Founded in 2019, farmer connect first set its roots in coffee and cocoa, but is now also looking to expand into other commodities. Fabian Portmann, Chief Technology Officer at farmer connect, explains, “Before

you get to the final product, the producer first has to grow the raw ingredients. These then get processed, transported, and further refined. Traceability is the endto-end understanding of where a product comes from, where it passes through, and where it ends up. We can track its entire journey from beginning to end, unravelling all the different stages it goes through before reaching the final

consumer. This helps us understand all the various connections between different actors along a supply chain, giving visibility to the different processes. We believe digital solutions can provide a new way of achieving end-to-end traceability.” farmer connect developed a traceability platform in answer to this challenge. Acting as the single point of access to all farmer connect

“HOW ARE YOU SUPPOSED TO UNDERSTAND, FOR EXAMPLE, THE CARBON FOOTPRINT OR FAIR WORKING CONDITIONS? WE BELIEVE THAT TRACEABILITY IS AT THE CORE OF CREATING MORE SUSTAINABLE SUPPLY CHAINS”

tools, ConnectHub brings the various actors in the supply chain, such as producers, brands and their partners, into a shared ecosystem, which enables increased trust & transparency through end-to-end traceability. So, what has been a key driver in developing this solution? Fabian answers, “End-to-end traceability is now being recognised as a

very important enabler of more sustainable supply chains. If you don’t know where your product is from, who is involved in the supply chain, or how the product was transported, it is difficult to talk about sustainability in general. How are you supposed to understand, for example, the carbon footprint or fair working conditions? We believe that traceability can drive an increased

understanding and is therefore at the core of creating more sustainable supply chains.” ConnectHub is farmer connect’s B2B offering, connected to a consumerfacing product, ThankMyFarmer. Built around trusted end-to-end product traceability, ThankMyFarmer is the consumer's window into learning more about traceable

its services. Fabian explains, “The combination of technologies gives us the flexibility to scale and innovate. We need to build innovative solutions, and this setup allows us to do so. As part of our solutions portfolio, we offer trusted end-to-end traceability solutions. If you have a global supply chain, end-to-end can be extensive. You are essentially

“FOR ENTERPRISES, IT THEN BECOMES IMPORTANT TALK AROUND WHAT YOU ARE DOING IN THE SUPPLY CHAIN. CLAIMS COME EASY, BUT THEY BECOME MORE POWERFUL IF YOU CAN BACK THEM UP WITH DATA, AND THIS IS WHERE TRACEABILITY CAN PLAY A VERY IMPORTANT ROLE” Fabian Portmann, Chief Technology Officer

products. Fabian says, “It is where we allow brands to showcase products that have become traceable. You will find a QR code on the packaging, which you can scan with your phone, and you will be redirected to www.thankmyfarmer.com to learn about the journey of the product. The data that was entered via ConnectHub by the various actors along the supply chain, is what is used to build that story.” In terms of the technology employed, farmer connect is cloud-native, working with various partners for

trying to offer a touchpoint for all actors, from producers to consumers, and these touchpoints can span from just a few to a large set. We develop products in the solution layer of the software stack, and these can be customised to apply to each individual supply chain.” The degree of digitalisation often varies depending on your role and the respective supply chain. For farmer connect, being able to develop a solution that is welladapted to the landscape of 79

smallholder commodity supply chains is key. Fabian continues, “We have a lot of industry expertise in our company, and I think that gives us a distinct advantage – it is built for the industry, by the industry. From a technology standpoint, we have managed to combine and connect blockchain technology and self-sovereign identity (SSI) technology. “The advantage of blockchain lies in creating trust within supply chains because if you have a shared ledger, it becomes a means of sharing data between different actors in a secure and trusted way. Therefore, blockchain is great for enterprise data, but you should not write personally identifiable information (PII) onto the blockchain and share it with other participants. This is where SSI comes in. It provides the individual with a digital wallet, where PII can be securely stored, so individuals can regain control of the information that is about them.” farmer connect has figured out how to leverage blockchain to securely share information between enterprises, and at the same time, connecting it with SSI to empower individuals. Fabian explains, “When talking about cocoa farms, for example, 80

“FARMER CONNECT HAS FIGURED OUT HOW TO LEVERAGE BLOCKCHAIN TO SECURELY SHARE INFORMATION BETWEEN ENTERPRISES, AND AT THE SAME TIME, CONNECTING IT WITH SSI TO EMPOWER INDIVIDUALS”

“TRINSIC HAS BEEN A LEADER IN THE FIELD OF SSI FROM THE START. WE HAVE BEEN PARTNERED WITH THEM SINCE 2019 BECAUSE THEY ARE THE LEADING INFRASTRUCTURE FOR BUILDING IDENTITY PRODUCTS” smallholder commodities quickly come down to the individual, so you cannot treat their data in the same way as you would for an enterprise. Therefore, we link PII with traceability data, fully respecting the privacy rights of the individuals, as well as the enterprise requirements.” Fabian describes two client success stories – Atlantic Grupa and UCC Coffee. He enthuses, “We launched two traceable single-origin products with Atlantic Grupa, under the Grand kafa brand. We succeeded in connecting the consumers to the producers behind their cup of coffee. In turn, this strengthened the Grand master brand image and enabled them to reach a new customer segment. “We worked with UCC around the supply chain of Orang Utan 82

Coffee, making the supply chain traceable via blockchain. It was a fantastic piece of work. We were able to connect the final product back to the origin and, at the same time, showcase the conservation projects that were happening at source. Along with UCC, we won the much-coveted 25th Supply Chain Excellence Award for Food and Drink, as well as the Geek+ Team of the Year Award, making us the joint overall winners of Best Supply Chain in the UK. Alongside innovation and functionality, the judging panel went through a strict fourstage process to determine how the project brought better visibility to manufacturers, outlets and consumers, alongside sustainable practice. We were able to demonstrate leadership in all these areas, which led to this outstanding result.” With the ambition to be end-toend, there is only so much farmer connect can do on its own, so partnering with other companies is essential. As highlighted by Fabian, “We are focused on the solution layer of the software stack, and using the right kind of technology to solve the problem at hand. If we can find a partner that can help us with technology to do just that, then we bring them in. We needed to rethink the way PII is being managed,

Goodbye plastic IDs. Hello digital identity. Issue and verify any credential with a custom digital wallet built on future-proof standards. Start building the future of identity today. 83

stored and shared, and SSI does just that. Trinsic has been a leader in the field of SSI from the start. We have been partnered with them since 2019 because they are the leading infrastructure for building identity products. If you talk about digitising an interaction with a producer, you need to have the means to digitally represent them. We used Trinsic’s platform to build our digital identity product, FarmerID. You as a producer are assigned a digital wallet containing a digital identity, so that you can obtain control over your data and can manage how it is shared in farmer connect’s ecosystem.” 84

In addition, farmer connect works closely with selected software providers, particularly for its blockchain engine at the core of ConnectHub. farmer connect has also partnered with a Brazilian IT boutique consulting company since 2020. Fabian adds, “We have been impressed by the extremely talented team of software engineers and designers.” Looking to the future, Fabian says, “We have built a solid platform and are growing the farmer connect ecoosystem, and will continue to work closely with our clients on solving problems related to

traceability. There is still a lot of work to be done on bringing all the data together, and we really believe that information gathering should be more decentralised. We need to incentivise actors along the supply chain to collect data and then share that data with other participants in the supply chain. We want to empower them, and particularly those at origin, to become digitally active and in control of how they are engaging in the digital space.”

consumer push around sustainability. Consumers are becoming more demanding in asking where their product is from and how it was processed. It is important for consumers to take the responsibility to ask these questions. For enterprises, it then becomes important talk about what you are doing in the supply chain. Claims come easy, but they become more powerful if you can back them up with data, and this is where traceability can play a very important role.”

Fabian’s last word is on supply chain traceability in the modern day. He concludes, “There is a

For further information on farmer connect, visit www.farmerconnect.com 85

BUSINESS INTERVIEW

DELIVERING ORGANISATIONAL CHANGE WITH PEOPLE AT THE CORE STUART FARRELL, Chief Procurement Officer at Giganet, shares how the company is aiming to be the best internet service provider in the UK, underpinned by great people, a strong partnership ethic, and with the customer at the heart of everything.

tuart started his career in FMCG before moving into mobile telecoms with Vodafone, where he progressed swiftly through the ranks through commercial, property and wholesale. 87

Stuart comments, “I gained vital experience in these areas, working in the UK, Kuwait, Germany and Northern Ireland. I then started to transition into network and IT led businesses in Russia, Asia and North America. It was such a learning curve to see other countries, cultures and the differing management styles across the world. I worked for Hewlett Packard for a period, looking after the EMEA PSG team, before being asked by Vodafone to

go back to head up their UK mobile network wholesale commercial team, delivering both national and global connectivity on mobile virtual network operators.” In 2015, Stuart stepped into procurement, heading up a large project with Accenture, which ended with great success and a true partnership end goal. This took his career into a whole new sphere, bringing together his

consumer, commercial, property and partnership experience to build, lead and develop successful procurement functions around the world. Now at Giganet, Stuart looks after all procurement and commercial operations, and has recently been promoted to Chief Procurement Officer. Stuart enthuses, “I am accountable for all our procurement strategy, contract lifecycle management, quantity surveying and fleet logistics. I have been

tasked by our CEO to build a worldclass procurement supply chain management function, ensuring that the customer is at the heart of everything we do, with a focus on safety, ethics and the environment.” Giganet’s vision is to be the best internet service provider (ISP) in the UK, offering the best customer service, quality, speed, reliability, and experience for a fully connected home. Stuart explains, “We have a

“Stuart and his team have identified a strong group of key strategic partners to be with them on their journey of the next three to five years and beyond, including Anixter, Vitruvi Software, Yorkshire Fleet and GE Services” two-pronged route to market, offering both On-Net and Off-Net connectivity. We live, breathe and work to our ‘Full fibre. Honestly.’ strapline, and from a procurement perspective, that means delivering engaging contracts, fair terms, and safety, at its very core. Giganet is supporting the Digital Britain agenda, with its centrally hosted core UK network. Stuart says, “We cannot build a connected Britain without partnerships. One of the key learnings of the last 20 years is that a business must acknowledge early on that it is not going to be great at everything, and we acknowledge that we need our partners to help us. The Giganet partnership proposition says 90

that without our partners, we cannot go on to be the best ISP in the UK. We have begun a five-year transformational journey with our partners, and they will be with us every step of the way to realise our aim, supported by our investors Fern Trading Limited advised by Octopus Investments.” Stuart and his team have identified a strong group of key strategic partners to be with them on their

journey of the next three to five years and beyond, including Anixter, Vitruvi Software, Yorkshire Fleet and GE Services. Stuart continues, “We have just signed a huge multi-year deal with warehousing and logistics partner Anixter. We called on Anixter because they have been the global leaders in warehousing, distribution, materials and logistics since the 1950s. They can help build, connect and power us to

deliver our golden aim, providing fibre products and important network componentry. Vitruvi is a Canadian software company, which provides our survey, design, planning and as-built. They are the key tool to allow rapid build deployment. “We have also signed a multi-year deal with Yorkshire Fleet to provide all our vehicle requirements, servicing, maintenance, shipping 91

Fibre Presents Opportunities and Challenges for Internet Service Providers As access to broadband infrastructure funding sources are now becoming available, internet service providers (ISPs) are accelerating the deployment of fibrebased network solutions and shifting their focus to preparing for future expanded capacity. For any fibre deployment – whether an upgrade, a new deployment or expansion of services – there can be complex challenges that require dedicated, experienced management.

Specialised Expertise to Meet Key Challenges Many ISPs simply do not have the inhouse capacity to handle the complexities involved with a large deployment project or they may need additional resources to measurably improve their outcome. Having an end-to-end supply chain solutions partner significantly increases available resources and presents a company with a single-source partner that delivers the specialised area of expertise needed to increase efficiencies, speed deployment and move from a capital expense (CAPEX) to an operating expense (OPEX) financial model. There are a wide range of benefits and advantages to having an integrated provider like Anixter that can significantly increase resources available to deploy and manage components and provide a variety of services and solutions. Our goal is to ensure your project is completed 92

on budget and to specification. Having a partner that can combine a strong suite of products and supply chain services delivers a more effective, on-time project.

Anixter Offers Solutions That Can Help You Focus on Your Total Cost of Acquisition. Sourcing – Supply chain issues are causing delays in fibre deployments and providing frustrating roadblocks to project timelines. Anixter can manage supplier relationships and contracts, provide access to global offerings, consolidate suppliers, leverage spend, access competitive pricing, ensure product standardisation, and reduce noncontract buying and costs to deliver value to your business. Inventory Management – Utilising Anixter’s warehousing infrastructure gives customers the ability to streamline their warehousing functions and increase their speed to deploy. This can also give customers dedicated project inventory to mitigate vendor lead-times and risk by adopting a min/max replenishment process to customer forecasts. Additionally, by having a local presence, customisable reporting and localized VMI, we have designed our services to optimise inventory levels of materials for ISPs centrally and locally. Product Enhancement and Packaging – These solutions allow you to streamline the project and reduce time and deployment costs by maximising off-site assembly, staging, and pre-configuring of products.

This can include services like cable cutting, kitting, labeling, asset tagging, software installation and construction deployment services just to name a few. Global Logistics – Anixter’s worldwide footprint enables them to determine the most efficient methods for delivering products to help mitigate the risk of project delays. Taking advantage of this expertise can deliver lower freight costs, improve on-time delivery, reduce lead times and optimise international transactional costs. eCommerce Solutions – Having realtime visibility to view and process transactions and inventory, track shipments, confirm deliveries, view invoices, run reports, save BOMs for later use, check contract pricing, as well as other customisable options, are all solutions that help increase operational efficiencies.

Our Site, Installer Site, Job Site An ineffective supply chain can be a huge drain on resources. Collaborating with a supply chain solutions partner with local expertise, global experience and innovative solutions can help ISPs optimise profitability and performance. Anixter provides possibilities that are as simple as offloading a portion of your materials management to local expertise, to a complete onsite partnership with a dedicated team to draw on its vast expertise and resources to run a world-class supply chain for your business. There are valuable lessons to be learned from those who have already travelled their broadband journey. An experienced global supply chain partner for these types of projects can allow you to focus on your core business objectives whilst Anixter manages the details of your deployment.

Working with a supply chain solutions partner that provides these capabilities can deliver the optimum total cost of acquisition.

About Anixter

Anixter understands the common challenges and best practices for supply chain assurance, while also realising that every project has its own unique requirements and goals. Our approach is to listen, evaluate, collaborate and use our unmatched expertise to save time, provide consistency and improve scalability.

Anixter is a subsidiary of Wesco International (NYSE: WCC). Wesco builds, connects, powers and protects the world. Headquartered in Pittsburgh, Pennsylvania, Wesco is a FORTUNE 500® company with more than $18 billion in annual sales and a leading provider of business-to-business distribution, logistics services and supply chain solutions.

and racking. They will ultimately allow us to focus on green credentials through the adoption of electric fleets, supporting our Network Deployment across the UK. “A further key partner, GE Services, will offer assistance out in the field, providing the much-needed civils, building, laying, connecting, powering up, and providing the fibre connectivity for both residential customers and business users. We have invested time in building a trusted relationship with each of these companies. They are woven into the very fabric of our business operation, helping to deliver the Giganet vision we are all driving towards.” Stuart’s global experience, strong commercial conceptuality and cultural awareness help him to spot and harness great talent, seeing beyond colour, sexual orientation and gender. He explains, “I have been very fortunate to work in various parts of the world, and understand that people management and investment in growth will ultimately lead to success if 94

“I have been very fortunate the world, and understand th investment in growth will ulti can embrace

e to work in various parts of hat people management and imately lead to success if you e the culture”

you can embrace the culture. The coming together of cultures will help build a worldclass procurement function here at Giganet.” Stuart enjoys the challenge of mentoring talented individuals, having been lucky enough to have been inspired by Detlef Schultz, the previous Group CPO at VPC. Stuart continues, “I would say one of the keys to my success has been my strong leadership and mentoring skills, but it works both ways. My own mentor still speaks to me now, enabling me to learn what it takes to be a good mentor to the team. But you also have to recruit great people and build a strong team. For me, it goes beyond the procurement team, building connections with Giganet’s partners, as well as friendships outside of the office. At the end of the day, work is important, but life is more important.” Something that Stuart has gleaned from his experience whilst working at Fujitsu in Asia is to take care of the team. He says if a team is happy at work, they can be happy at home, and if they are happy at home, they will work harder. Stuart says, “Having worked across 95

the three main geographies of the world, I have an appreciation of the ability to focus on ethics, the environment, the customer, but also each other. At Giganet, we are fortunate to be able to work almost anywhere, so long as we have an internet connection (something we are pretty good at, by the way!). Someone working from home powered by great fibre connectivity may work harder than they would work in the office, but that may challenge their mental health. We are very focused on mental health at Giganet, making sure our colleagues are happy. We have an employee assistance programme, biweekly one-to-ones with our

team, as well as wellness days, to ensure we are creating the right environment.” So, throughout his career, how has Stuart managed organisational change that transforms structure and delivers significant, measurable improvements? Stuart answers, “In my last four roles, I have been able to design, engage and deliver organisational change with people at the core. Change can be scary, and not all change is good, but the right change with a clear buy-in can be revolutionary. Over the last eight years, my team has managed over 12.2 billion dollars of procurement spend across more than 1,700 partners

OFFICIAL PARTNER

ANIXTER Anixter looks forward to furthering our partnership with Giganet and continuing to provide end-to-end supply chain expertise and solutions that add bottom-line value and enable increased focus on core business strategies and outcomes. By offering our wide range of service solutions – including sourcing, inventory management, product enhancement and packaging, global logistics and eCommerce – Giganet is able to redistribute strategic resources and products that can assist them with their company mission and vision to expand quality ISP service delivery to the UK market.

We build, connect, power and protect the world. Most of us expect life to run smoothly. But we don't spend much time thinking about what it takes to make that happen. Anixter does. Every day we leverage our tech-enabled supply chain solutions and help build a world you can depend on.

So you can live life uninterrupted. anixter.com/emea

Fleet Management at your fingertips

“The management software provided by Yorkshire Fleet has been a game changer” Steve Blake Senior Supply Chain Manager

YorkshireFleet.co.uk

EDCQ 98

Click to see how Yorkshire Fleet supply, manage, and maintain Giganet vehicles.

Call us today on

01653 604300

and vendors, delivering on average 7 per cent per year return. It is about ensuring the continued success of the business, delighting our Giganet customers, and building a great place for people to work.” All of this comes with the usual challenges. Stuart explains, “To succeed, you have to be clear what it is the business wants to achieve. Change for change’s sake can be both unnerving and unnecessary. I think the ability to have a clear vision and strategy is key, while also understanding, for some, an immediate buy-in will be difficult. We always look at the bigger picture. You have to consider the ethics of the team,

and have an understanding of each other. Everyone can play a role in executing Giganet’s vision. It is about making work fun whilst having a tangible output.” On the subject of spend management versus commercial contract management, Stuart makes the distinction between buying items as cheaply as possible versus identifying by category in order to increase efficiency. Stuart explains, “We are looking at building category strategies so my team can be really involved in shaping the future of the business at Giganet, while helping our colleagues understand how best to deliver to our customers. With category

OFFICIAL PARTNER

YORKSHIRE FLEET Giganet approached Yorkshire Fleet to assist, as part of their supply chain, with the exclusive management of the ever-growing vehicle fleet; from vehicle sourcing, supply, tracking and maintenance, to licence checking, mileage monitoring, service reminders and driver behaviour. We were able to help implement the managed service, systems and software necessary to run an efficient and healthy fleet, whilst maintaining the high duty of care standards that Giganet insist on for their drivers and customers alike. Giganet are striving to become the best in the UK, and we at Yorkshire Fleet Management are very proud and excited to have the opportunity to use our expertise to help them achieve this. 99

100

management, when making a purchasing decision, you can take experiences you have seen to challenge the status quo. We have identified the most important partners by spend and strategic importance, setting time aside for them

“I have a five-year vision for a worldclass procurement function, underpinning our delivery, to excite and delight our customers” each month to ensure that, not only are we able to deliver, but furthermore that they feel empowered, and we are doing everything in line with our collaborative framework. It is a two-way monthly engagement, with our Giganet customers at the heart of it.” With the market in the UK going through another round

101

“We are now on track over the next three years to connect over 500,000 UK homes and businesses to our award-winning brand of full fibre” of fixed mobile collaboration, Stuart says global players are looking at the telecoms sector for strong long-term investment, providing an opportunity for procurement functions to play a larger role in these businesses. He continues, “We need groupwide procurement, even across

different brands within the same group, in order to bring that next level of evolution to corporate buyin. Centralised procurement items can be differentiated in the market, as there will always be a place for local buy-in and customisation. I have a five-year vision for a world-class procurement function, underpinning our delivery, to excite and delight our customers. Giganet is still in the early stages of the journey, but we have talent with decades of experience in the team, and that is being harnessed.” Jarlath Finnegan, CEO at Giganet says, “The UK has made no secret of how much they appreciate reliable connectivity and excellent customer service from an ISP.”

OFFICIAL PARTNER

GE SERVICES GE Services is proud to be a supply chain partner of Giganet and participating in the construction of new FTTP broadband. GE Services provide a full service delivery, ensuring the programme objectives are met whilst recognising and managing the potential impact of construction works to the stakeholders within the build areas. GE Services Managing Director Patrick Guerin says, “Our relationship with Giganet jointly seeks to help ensure that the innovation, energy and construction personnel are available to meet the expectations of the future customers and fulfil Giganet’s ambition of being the best ISP in the UK.”

102

Guerin Energy Services are delighted to be a key supply chain partner to Giganet in the role out of high speed broadband networks where we provide civil and cabling expertise along with management of the Streetworks operations. Patrick Guerin, Guerin Energy Services Founder and CEO states that “Underpinning our ambition to grow the business in a sustainable and risk managed way relies upon the entire commitment of the senior management and the investment in the right people and our supply chain which provides the platform to support the construction and investment programme of Giganet for the development of the networks to new customers”

We understand the activities necessary to build new networks requires works on the highway and the conduct of field staff and the image presented can be a great advertisement for both Guerin Energy Services and Giganet and preventing the damage that can be done through one event is highly undesirable and therefore the focus on ensuring all personnel understand their obligations is part of an ongoing effort.

The commitment to Giganet’ s focus on achieving high standard’s of customer satisfaction to cover every aspect of the operations in the field as well as the importance of excellence in the management of Streetworks administration where recognising the importance of the relationship with the Local Authority’s and other stakeholders is key to achieving the planned outputs. To ensure that Giganet are supported in all areas of their business operations Guerin Energy Services rely upon the ISO standards (45001:2018, 9001:2015, 14001:2015) and external assessment to verify the management systems and their continual improvement.

Understanding the impact that the construction works will have on surrounding local communities and how we can mitigate the impact is part of the carefully planned approach that is taken from the initial survey to the intended methods off delivery.

The importance of establishing and maintaining good communications with all stakeholders who that will be impacted by the construction programme is essential to achieving and maintaining the goodwill necessary to achieve the programme objectives.

The materials that’s all used to construct new networks all part of the Guerin Energy Services environmentally sustainable targets. Energy Services seek to minimise any activities or products which may cause a failure one of the key areas is reduction of waste and reworking and therefore we adopt a right first time approach.

The commitment of our field based teams to carry out the works on the highway and to achieve the programme targets of Giganet are fully supported by our established occupational health and safety management system and in addition the training and accreditation within the smart awards competency scheme.

Guerin Energy Services is committed to growing it’s business within the ambitions of Giganet and at the heart of the relationship is the importance of trust and they shared desire to achieve outstanding performance in the delivery of high speed broadband networks.

www.ge-servicesltd.com

103

F I B R E

C O N S T R U C T I O N

M A N A G E M E N T

SEE. KNOW. MANAGE. CONSTRUCTION MANAGEMENT SOFTWARE Think of Vitruvi as your all-in-one fibre construction management, reporting and field inspection software solution that integrates design, budgeting, scheduling, procurement, and change orders. Capturing redlines & as-builts has never been easier. Accelerate your fibre rollout by digitizing manual processes and de-risk your deployment. It's a single, end-to-end, GIS-based platform that connects everyone, seamlessly, for unmatched project control and collaboration.

S O F T W A R E

BUILD FASTER. REDUCE RISK. IMPROVE EFFICIENCY. TRUSTED BY

Discover what Vitruvi can do for you. BOOK A DEMO

104

vitruvisoftware.com

Jarlath continues, “At Giganet, service comes first, and we believe our ethos, grounded in honesty and simplicity, will bring a new dynamic to the market that consumers have been denied for too long. As customers grapple with inflation and rising living costs, our flexible contracts, and our promise to abolish exit fees and midcontract price rises, resonates. “We are now on track over the next three years to connect over 500,000 UK homes and businesses to our award-winning brand of full fibre through the deployment of our own full fibre network infrastructure, and across CityFibre and Openreach.

Jarlath Finnegan, CEO at Giganet

OFFICIAL PARTNER

VITRUVI SOFTWARE The Giganet collaborative framework is extremely refreshing, and Vitruvi feels immensely valued as a core vendor technology partner, contributing directly to fulfil Giganet’s vision. They truly are one of our favourite (and most demanding) customers around the world. Demanding because they have a genuine desire to co-create a better tomorrow, not just replicate the ISP status quo of yesterday. Managing immense amounts of survey and as-built data, as well as critical project schedules and financials, can only efficiently happen within a trusting environment. In this way, Giganet has empowered Vitruvi to propel their success forward. As Vitruvi deploys a leading Construction Management platform, we know our success is directly aligned with ISPs who share common commitments and values. For far too many reasons to list, Giganet is a perfect example of this commitment. 105

Working with our new procurement function, and in partnership with our supply chain on multiyear contracts, objectives are aligned to our overall business strategy, ensuring that we work at pace whilst continuing to deliver the highest safety and quality standards for all our customers. Working ethically, and with a focus 106

on the environment, together, we’re offering the market to not only upgrade to a better home broadband connection, but to a better level of service all round, taking us one step closer to becoming the best ISP in the UK.” The last word goes back to the importance of building a strong network of trusted partners. Stuart concludes, “It is absolutely crucial to have key partnerships built on trust and safety. Some are transactional,

some are engrained in our business, and some are invested. The key four partners I mentioned are all invested in supporting our strategy and providing our connectivity to all our customers in the UK. They are providing that trusted, safe network, which, in turn, takes us one step closer to being the best ISP in the UK.” For further information, visit www.giganet.uk 107

the world’s go-to digital supply chain magazine

Published by

108