Manufacturing Global – August 2019 by Manufacturing Global

Creating value and sustainability through technology manufacturingglobal.com

AUGUST 20 19

LINFOX INTERNATIONAL DRIVING DIGITAL TRANSFORMATION THROUGH COMMUNICATION

TOP 10

Food & Drink Manufacturers

DUNLOP BOOTS: Manufacturing the future of protective footwear

Colin Clark discusses the past, present and future of a company focused on digital transformation

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FOREWORD

ello and welcome to the August

speak with Steve Richmond,

issue of Manufacturing Global!

Director of Logistics UK at

In our cover story this month,

Jungheinrich, and Michael Von

we speak with Dunlop Protective

Forstner, Head of Jungheinrich’s

Footwear’s Mary Steinebrunner,

Lithium-ion division, to learn about

Managing Director US, and Colin

the impact of lithium-ion battery

Clark, Director of Marketing.

technology on the firm’s digital

The duo discuss the past, present

transformation strategy.

and future of a company focused on digital transformation, industryleading products and staying ahead of the curve. Steinebrunner says: “The key is to evolve to where the market is going. Had we stayed still, we probably wouldn’t be here today, but our ability to be nimble and train our team members to be flexible with regard to the market and technology, and to build products the market desires, has allowed us to grow with the market.” For our leadership piece,

Elsewhere in the magazine, there’s also features with Armacell, and Linfox International Group that you won’t want to miss! Lastly, our Top 10 counts down the world’s top electronic manufacturing companies. Would you like to be featured in the next edition of Manufacturing Global? Get in touch at sean.galea-pace@bizclikmedia.com Enjoy the issue! Sean Galea-Pace

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governments’ abilities to meet the challenge of waste management. At NOVA Chemicals we’re passionate about sustainability. That’s why, along with investing in Project STOP, we’re engaged in R&D work focused on developing packaging solutions that support a circular economy. We’re proud to play a key role in Project STOP and its crucial efforts to build a better future.

Click the home icon (top right of page) to return to contents page at anytime

Imagine a future without marine plastic pollution.

EDITOR IN CHIEF

SEAN GALEA-PACE MANAGING EDITOR

MATTHEW HIGH CREATIVE DIRECTORS

DANIEL CRAWFORD STEVE SHIPLEY

PRESS PLAY! WHEN YOU SEE THE PLAY BUTTON ICON, CLICK TO WATCH OUR VIDEO CONTENT

CREATIVE TEAM

OSCAR HATHAWAY ERIN HANCOX SOPHIAwith FORTEmaking more plastics recyclable. It starts SOPHIE-ANN PINNELL

Wherever you see these icons support a circular economy that puts more recycled in the magazine click to be directly plastics into new products—and less into places about marine plastic pollution—and there’s DANIELA KIANICKOVA where they don’t belong. an increasing determination to put an end to it. connected via social media MANAGER OnePRODUCTION part of the solution is Project STOP, a joint initiative

here is growing awareness and concern PRODUCTION DIRECTOR

OWEN MARTIN started in 2017 by SYSTEMIQ and Borealis to help stop the flow of plastics and other materials into the world’s DIGITAL VIDEO DIRECTOR rivers and oceans. JOSH TRETT Another partVIDEO of thePRODUCER solution is to further develop DIGITAL infrastructure to collect and recycle plastic packaging, JOSHUA S.PECK especially in the world’s fast-developing nations. EMILY McNAMARA Of course, that also requires making plastic goods, SOCIAL plastic MEDIA PRODUCERS particularly packaging, more recyclable to

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More applications for recycled plastic material.

MANUEL NAVARRO The plastics industry is investing in research and STUART IRVING development centered around technology for creating CHARLOTTE CLARKE “clean” recycled polyethylene and incorporating it into JUSTIN BRAND finished products with performance comparable to 100% virgin plastic. RICHARD DEANE TOM VENTURO Simpler is better for the environment.

DIGITAL MEDIA DIRECTORS Many food packages are made with a mix of materials, ARRON RAMPLING making them difficult to recycle. Companies are now JASON WESTGATE working with their suppliers to eliminate foil, nylon and otherOPERATIONS materials and move to single-material, recyclable DIRECTOR flexible film structures. ALEX BARRON

Initiatives like Project STOP will test and develop new solutions with the potential to seriously slow—and eventually eliminate—the flow of plastics into the world’s oceans. Together with work to develop more recycling and recovery technologies and more recyclable products, we can realize the promise of a circular economy. Below are some emerging trends that are yielding promising results.

The more flexible, the smaller the footprint. Replacing traditional materials like cans, glass and cardboard with flexible plastic packaging significantly reduces packaging volume, reducing the carbon footprint during production and shipping.

CLICK NOW TO SUBSCRIBE One-piece closures forFOR easier recyclability. FREE Another important trend is the shift from two-piece, mixed-material closures to one-piece, recyclable closures in beverage and other containers.

Visit the ManufacturingGlobal.com What about website and sign up to receive JAMES PEPPER food waste? exclusive access to one of the world’s TheCHIEF bottom line:OFFICER Recyclable plastic OPERATIONS Advances in package integrity— ANDY TURNER fastest growing business news packaging has value as recyclate, improved barrier, toughness and seal PRESIDENT & CEO —in polyethylene-based platforms.flexible film adding an incentive to implement new GROUP MANAGING DIRECTOR

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CONTENTS

12 MANUFACTURING THE FUTURE OF PROTECTIVE FOOTWEAR

A DIGITAL MANUFACTURING LEADER

Prioritising a customer-centric approach amidst digital transformation in the manufacturing sector

44 Placing data at the forefront of manufacturing innovation

62 TOP 10

Food & drink manufacturers

Supply chain and manufacturing excellence in a digital world

Events & Associations

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106

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DUNLOP BOOTS: MANUFACTURING THE FUTURE OF PROTECTIVE FOOTWEAR WRITTEN BY

HARRY MENEAR PRODUCED BY

TOM VENTURO

AUGUST 2019

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DUNLOP PROTECTIVE FOOTWEAR

Mary Steinebrunner, Managing Director USA, and Colin Clark, Director of Marketing at Dunlop Protective Footwear discuss the past, present and future of a company focused on digital transformation, industry-leading products and staying ahead of the curve

t’s rare to find a manufacturing company born in the first half of the 20th century with the vibrant enthusiasm of a Silicon

Valley startup hunting for its first investment. However, that insatiable desire to embrace the future, invest in people and product, and never stand still is alive and well at the heart of Dunlop Protective Footwear’s vision. “We’re 80 years old and we’re just getting started,” enthuses Colin Clark, Director of Marketing, USA, who joined the company in 2016. Mary Steinebrunner, the company’s Managing Director USA, and a 20 year veteran of the protective footwear industry, agrees: “The key is to evolve to where the market is going. Had we stayed still, we probably wouldn’t be here today, but our ability to be nimble and train our team members to be flexible with regard to the market and technology, and to build products the market desires, has allowed us to grow with the market.” AUGUST 2019

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DUNLOP PROTECTIVE FOOTWEAR

“ We make everything in house, all the way down to our PVC pellets” 16

— Colin Clark, Marketing Director, USA, Dunlop Protective Footwear

Steinebrunner joined PVC footwear manufacturer OnGuard Industries in 2000. “Three years ago, we were acquired by Dunlop Protective Footwear and it has been the best home for this business. We were the US leader in manufacturing protective footwear for the US and Dunlop is the global leader in that market. So, the combined business truly became a global powerhouse.” The acquisition of the USA by Dunlop brought access to Dunlop’s proprietary material Purofort®, an expanded innovative product line, designed specifically for end users and markets that the USA business had never been able to access before. Allard Bijlsma Dunlop CEO “the USA business had an extremely strong manufacturing heritage, and a robust distribution network in the food processing and industry segments built out. We knew we could expand the core business with our investment in the Made in USA Purofort® FoodPro and reach new consumers in new markets with our best in class Purofort Product range.” Clark adds that “I joined right after Dunlop purchased OnGuard. I was really excited about that place in time,

AUGUST 2019

CLICK TO WATCH : ‘DUNLOP COMPANY MOVIE 2019’ 17 because we got to bring the powerful

transformative growth. “We’re growing

Dunlop brand to the USA, as well as

in the double digits every year and

relaunch our product line and go-to-

continually evolving in every facet of

market strategy. It was, and has been,

the business,” says Clark who, along

a really exciting entrepreneurial time.”

with Steinebrunner, sat down to

Dunlop Protective Footwear is a

discuss a transformation that is both

global manufacturer of work boots

internal and external. Powered by the

serving multiple markets and verticals

company’s global expertise, proficien-

around the globe. The company’s head

cy and dedication to innovation, and

offices are located in Raalte, The

proprietary technology, Dunlop is

Netherlands, and its second produc-

creating products that are second to

tion plant is based in Leiria, Portugal.

none. Behind the scenes, the company

At the company’s US headquarters in

is embarking on a digital transforma-

Havre De Grace, Maryland, Dunlop is

tion to reshape its manufacturing

experiencing a period of significant,

process to remain ahead of the curve, w w w.ma nufa c t uri nggl o b a l. com

DUNLOP PROTECTIVE FOOTWEAR

“ We have gone from being very anecdotal to being analytical” 18

— Mary Steinebrunner, Managing Director, USA, Dunlop Protective Footwear

and tackling change management

our oil, our power, our food - we reach

head on, every step of the way.

every one of them. So, in turn, we’re

As manufacturers of protective

affecting every segment of those

footwear for almost every conceivable

industries.” The acquisition of On-

industry, Dunlop’s product touches

Guard by Dunlop infused new energy

workers in a wide array of industries

into the company with the investment

across more than 50 countries. “You

of the Purofort® manufacturing

don’t generally look at a PVC or

process into the USA plant. This

polyurethane boot as a market driver,

factory inside of the factory creates

but it truly is because we provide the

Dunlop’s proprietary, lightweight,

makers and the doers of the world with

thermally insulating material called

innovative products to tackle the

Purofort. Developed in 1980, Purofort

issues they face each day,” explains

allows Dunlop to twin safety with

Steinebrunner. “The people that make

comfort, in industries where the choice

AUGUST 2019

of one often means sacrificing the

our reach,” says Clark. “Now, we have

other. “With Purofort technology,

products for segments we’d never

we can now build a boot that is lighter,

reached before: Agriculture & Fishery,

wears better and fits better,” says

Food processing, Industry and the Oil,

Steinebrunner. “So, in an industry

Gas & Mining sector.” Purofort

where people traditionally don’t want

innovations have allowed Dunlop to

to wear protective footwear, because

continue to grow into verticals that

it’s heavy, hot and uncomfortable, we

the company has served for decades.

can build something that workers

“We’ve traditionally been a market

actually want to wear.”

leader in food processing,” says Clark.

The addition of a Purofort manufac-

“By introducing our Purofort FoodPro

turing machine to the Maryland plant

boot to that space, we’ve seen our

“allowed us to have a good, better, best

numbers almost double every single

assortment of products, and expand

year in our most saturated market.” w w w.ma nufa c t uri nggl o b a l. com

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CLICK TO WATCH : ‘DUNLOP PUROFORT GUARANTEES YOU LONG-LASTING COMFORT’ 21

Growth across old and new markets

markets that they serve “We make

has been so pronounced that Dunlop

everything in house, all the way down

is adding a second Purofort machine

to our PVC pellets,” says Clark. “A

at its Maryland facility, with space for

recent example of that are our ‘made

a third, in order to support further

in the USA’ Chesapeake Boot, which

growth and expansion into Canada

is our entry level, PVC, black boot for

and Mexico. “We want to have a full

general use. Other manufacturers

North American reach for product

import their version of this product

and manufacturing to better serve our

from China, Mexico, etc; we were able

customers,” says Steinebrunner.

to keep manufacturing here in the US,

At the heart of Dunlop’s mission to

while making an innovative, lighter boot

create superior products is its commit-

that we developed alongside our global

ment to an in-house manufacturing

innovation team, tested and put

supply chain based close to the

through its paces in our world class w w w.ma nufa c t uri nggl o b a l. com

DUNLOP PROTECTIVE FOOTWEAR

Portugal plant.” Steinebrunner recalls that “we made the Chesapeake more protective, better looking and as efficient as possible to produce. The finished product is phenomenal and a credit to the collaborative efforts of a global team that believes in creating products worthy of the flying Dunlop D.” Dunlop’s human expertise and drive to succeed is being further enabled by a cultural, methodological and technological shift behind the scenes. Flexibility and enhanced process 22

transparency, as a result of the company embracing new technologies, are helping to propel Dunlop into its next stage of development. “We have gone from being very anecdotal to being analytical,” Steinebrunner explains. The company is harnessing the power of digitalisation, both externally to reinvent its customer and supplier interactions, and internally. Measuring efficiency, building preventative maintenance into the business strategy, and using technology to enable the company’s human resources are, according to Steinebrunner, key to Dunlop’s transformation. “In the last two years, we’ve come so far,” she says. AUGUST 2019

Dunlop is managing the change in its organisation by not only digitizing its processes, but taking the data gathered from those processes and democratising it in order to empower its employees. “Our new ERP system helps from a sales projection planning standpoint to an MRP planning standpoint to what pellets we’re making in what machines,” lists Clark. “We’ve really advanced, from analog, pen and paper, hallway conversations to having this ERP systems help give us the tools to help fuel our growth.” Steinebrunner notes that “It makes

“ The Dunlop SnugBoot is the most comfortable boot I have ever worn” — Colin Clark, Marketing Director, USA, Dunlop Protective Footwear

the data more accessible and visible. We have regular meetings so that we can take staff input and use it to drive efficiency. We’re merging our human capital along with all the technology and all the innovative capital that we are putting into the business.” Both Steinebrunner and Clark are thrilled at the employee response to Dunlop’s transformation. “We have employees whose mothers, uncles, grandmothers have all worked here. For them to be enthusiastic about where this business is going, it’s amazing. To see a 30 year employee come in and say, ‘hey this w w w.ma nufa c t uri nggl o b a l. com

DUNLOP PROTECTIVE FOOTWEAR

C O M PA N Y FACT S

â&#x20AC;˘ Purofort is the unique Dunlop material with millions of evenly distributed air pockets making it lightweight and thermally insulating, plus a crosslinked structure that provides flexibility and strength. Developed by Dunlop in 1980, Purofort boots are up to 35% lighter than PVC, rubber or PU boots; prevent heat loss and provide thermal insulation down to -20 Degrees Celsius; and are stronger and more flexible than competing materials.

AUGUST 2019

what we need to do next.`It’s just intoxicating,” says Steinebrunner. Looking to the future, Dunlop is looking to expand its business model, shifting to a more omnichannel approach to customer service and digitising more heavily. The next step on its journey that is most exciting to Steinebrunner and Clark, however, is the company’s entrance into the retail footwear market. Scheduled for launch later in 2019, the Dunlop SnugBoot “is the most comfortable boot I have ever worn,” confirms Clark. Dunlop’s future, both internally and externally, is set to be an exciting one. Steinebrunner concludes: “We’re always looking to 2022 and beyond. In the US, we’ll double our business’ size by entering new channels, by leveraging talent and an omnichannel approach, and by reaching new markets and customers with new products and technology.”

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LEADERSHIP

FUJITSU: A DIGITAL MANUFACTURING LEADER Head of Manufacturing and Automotive Solutions at Fujitsu, Ravi Krishnamoorthi, discusses how technology will seek to disrupt the manufacturing sector WRITTEN BY

AUGUST 2019

CATHERINE S TURM AN

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LEADERSHIP

anufacturers are undergo-

has looked at ways to revolutionise

ing exponential change.

the automotive manufacturing

Across every sector,

sector through digital innovation,

technology has led to increased

transforming relationships with

consumer demands as well as

customers, partners and suppliers

integrated products and services

in the process.

that can be accessed through

“Automotive manufacturing,

a number of physical and digital

anything that you produce, create

platforms. Turning towards the

or extract from the ground is my

development of intelligent networks

forte,” he says enthusiastically.

and ensuring greater collaboration

“I’ve been with Fujitsu for three and

and connectivity, Head of Manufac-

a half years and was previously in

turing and Automotive Solutions

charge of business consulting and

at Fujitsu, Ravi Krishnamoorthi,

digital application services across

AUGUST 2019

“ A LOT OF MANUFACTURERS, INCLUDING CAR MANUFACTURERS AND SOME HEAVY ENGINEERING MANUFACTURERS, ARE TRYING TO TRANSFORM THE WAY THEY MANUFACTURE GOODS” — Ravi Krishnamoorthi, Head of Manufacturing and Automotive Solutions at Fujitsu

all industry verticals.” However, Krishnamoorthi is keen to stress that “technology’s only an enabler”. “Customer demand is what’s driving digital outcomes. A lot of manufacturers, including car manufacturers and some heavy engineering manufacturers, are trying to transform the way they manufacture goods, the way they procure goods, the supply chain and how they engage with the customer,” he adds. Every industry has been fully disrupted by digitisation, with the w w w.ma nufa c t uri nggl o b a l. com

LEADERSHIP

CLICK TO WATCH : ‘CO-CREATION FOR SUCCESS’ 32 F U JITSU FACTS

• Head of Manufacturing and Automotive Solutions at Fujitsu, Ravi Krishnamoorthi, has looked at ways to revolutionise the automotive manufacturing sector through digital innovation • A rtificial intelligence, blockchain and robotic process automation are all technologies of exploration, which are creating new business models that place the customer journey firmly at the centre • O ver the last nine months, Fujitsu has trained more than 25,000 workers as it looks to unlock

AUGUST 2019

further opportunities to add value to its services and boost productivity within its manufacturing operations • Connecting industrial systems, leveraging data and embracing automation will lead to increased productivity at every stage • The monetisation of data is a subject which continues to grow apace, leading manufacturers to look closely at the ways in which customers engage in order to deliver exceptional value propositions

“THIS IS AN OPPORTUNITY FOR COMPANIES LIKE FUJITSU TO AUTOMATE A LOT OF REPETITIVE PROCESSES, EMPOWER WORKERS BY GIVING THEM THE SKILLSETS NEEDED, AND ENSURE THAT THEY ARE MORE CREATIVE” — Ravi Krishnamoorthi, Head of Manufacturing and Automotive Solutions at Fujitsu sole focus placed on the customer

new digital tools will, of course,

or end-user. For manufacturers,

bring a number of newfound

this has led industry leaders to

challenges. Although

embrace new technologies to

change management has

transform production lines or to

become a significant

add new features which will guarantee

buzzword in the upskilling

higher-quality results. Artificial

and retraining of loyal

intelligence (AI), blockchain and

employees, businesses

robotic process automation are all

are facing increased

technologies of exploration, which

pressures to adapt

are creating new business models

in order to retain

that place the customer journey firmly

their positions in

at the centre. Despite this, in such

an emerging digi-

a traditional industry, implementing

tal landscape. w w w.ma nufa c t uri nggl o b a l. com

LEADERSHIP

“ DATA, THE MANAGEMENT OF DATA, AND THE INFORMATION PROVIDED WILL BECOME A SIGNIFICANT CHALLENGE, BUT ALSO DRIVE INCREASED OPPORTUNITIES FOR MANUFACTURERS” — Ravi Krishnamoorthi, Head of Manufacturing and Automotive Solutions at Fujitsu

AUGUST 2019

â&#x20AC;&#x153;On one hand, there is a shortage of talent globally. On the other hand, more and more manual jobs are becoming automated. This is an opportunity for companies like Fujitsu to automate a lot of mundane, repetitive processes, empower workers by giving them the skillsets that are needed, and ensure that they are more creative in the way that they engage with the workforce. This will create better leaders and better expertise available within the organisation and enterprise. Thatâ&#x20AC;&#x2122;s exactly where Fujitsu is working,â&#x20AC;? says Krishnamoorthi. Over the last nine months, the business has trained more than 25,000 associates on agile ways of working as it looks to unlock further opportunities to add value to its services and boost productivity within its manufacturing operations.

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D I G I TA L F A C T O R Y

Jungheinrich: Prioritising a customercentric approach amidst digital transformation in the manufacturing sector 36

Supply Chain Digital caught up with Steve Richmond, Director of the Logistics Systems, Jungheinrich UK, in Hamburg to discuss how technology is becoming increasingly prevalent in the manufacturing industry WRITTEN BY

SEAN GALEA-PACE

AUGUST 2019

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D I G I TA L F A C T O R Y

t the Jungheinrich Innovations and Highlights 2019 conference in Hamburg earlier this year, Supply Chain Digital spoke with

Steve Richmond, Director of the Logistics Systems,

Jungheinrich UK, to find out the importance of operating with a customer-centric approach and how technology is defining the way his company operates. With almost 30 years’ experience at the manufacturing firm under his belt in a variety of roles, there are few professionals working within Jungheinrich who are better placed than Richmond to oversee the systems his company produces. 38

Possessing a background in manufacturing and recognised as an electrical engineer by qualification, Richmond began his career at the company as a Project Manager before moving into positions in the development of sales, business development, marketing, general management and eventually, board level. Richmond believes that such a variety of experience has helped him gain a solid understanding of the inner workings of the company. “Our industry is technical, especially in terms of the logistics systems,” says Richmond. “Customers are looking for an organisation not only to sell to, but they also want confidence that the people they’re talking to understand material flow and design processes. I believe my background as an engineer in this part of the industry has been a real positive.” AUGUST 2019

“Any company that wants to sustain a competitive advantage has to be able to adapt and evolve” — Steve Richmond, Director of the Logistics Systems at Jungheinrich UK

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D I G I TA L F A C T O R Y

“ In reality, it all comes down to the key question — what does the customer need? It isn’t about what the customer wants” — Steve Richmond, Director of the Logistics Systems at Jungheinrich UK

customer is at the heart of everything we do. There’s no point developing a product that we think is right for the customer if the demand isn’t there.” However, with the importance of embracing the latest trends paramount to ensure continued success, Richmond points to pertinent quote from Henry Ford, the founder of Ford Motor Company, who said: ‘if you’d asked the people what they wanted, they would have said faster horses.’ “In

As an organisation that doesn’t

reality, it all comes

believe in standing still, Jungheinrich

down to the key

has been proactive in welcoming

question — what

change. With artificial intelligence (AI)

does the customer

and the use of Big Data becoming

need? It isn’t about

increasingly important in the manufac-

what the customer

turing sector and beyond, Richmond

wants,” explains

affirms that despite the necessity of transforming and adopting new technology, decisions must always be made with customer demands at the forefront. “Evolution is the key,” notes Richmond. “Any company that wants to sustain a competitive advantage has to be able to adapt and evolve. I believe what we’ve done fantastically well is ensure that the AUGUST 2019

CLICK TO WATCH : ‘JUNGHEINRICH UK AUTOMATED VNA FOR PRYSMIAN GROUP’ 41

Richmond. “It’s up to us to marry that

the biggest buzz

with our knowledge of the materials

I get is from giving our customers

handling world and ensure that our

solutions that provide a competitive

products are fit for the market. A key

advantage. They might come back and

priority to us is listening to and

say ‘that’s really improved our efficien-

understanding our customers — that’s

cy or reliability; it’s given us something

the difference between Jungheinrich

our competition doesn’t have.’ That’s

and its competitors.” With that in mind,

why I’m fortunate I work in logistics

Richmond asserts that customer-cen-

systems because, most of the time,

tricity is a defining factor for the firm.

we’ve got a blank piece of paper to

“The customer is everything. People are

work with.”

quick to say that the customer is always

Having introduced new forklift trucks

right but, whilst that isn’t the case,

such as the ERC 216zi and the EFG

they’re always the customer. In my role,

BR6, which harnesses lithium-ion w w w.ma nufa c t uri nggl o b a l. com

D I G I TA L F A C T O R Y

technology and a revolutionary new truck design, Richmond affirms that technology has become increasingly important to how Jungheinrich operates. However, he believes the firm should only leverage new software that will enhance and accelerate its existing offering. “Technology has had a massive impact,” observes Richmond. “The biggest transformational change is around software and digitalisation. Software is the heartbeat of the solution. You can have very 42

good products but if you don’t control the processes and the information

“ I believe what we’ve succeeded at fantastically well is to ensure that the customer is at the heart of everything we do” — Steve Richmond, Director of the Logistics Systems at Jungheinrich UK

AUGUST 2019

flow correctly – you won’t get the end result that you want. In the last 15 years, I believe there has been a greater customer emphasis on software like warehouse management systems and warehouse control systems.” Looking to the future, Richmond highlights the clear goals Jungheinrich harbours as the firm looks to accelerate its automation endeavours long– term. “Over the coming years, one of the key objectives for Jungheinrich is to continue adding to our range of automation products. We’re in the middle of switching from an integrator into a manufacturing integrator,” concludes Richmond. “Our strategy is to expand our own manufacturing product portfolio and this will mean the vast majority of products in the portfolio will be manufactured, delivered, installed and integrated by Jungheinrich.”

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TECHNOLOGY

MongoDB: Placing data at the forefront of manufacturing innovation Senior Director of Productsand Services, Mat Keep explains how MongoDB has sought to provide manufacturers with increased agility, flexibility and enhanced operational efficiency through digital innovation WRITTEN BY

AUGUST 2019

CATHERINE S TURM AN

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TECHNOLOGY

ndustry 4.0 is completely disrupting traditional business models across the manufacturing space. Introducing new technologies

to fully automate production lines, deliver enhanced analytics, reduce ongoing costs, all while granting increased visibility and improving product quality, it will be essential for industry leaders to embed new digital tools to cater to evolving customer demands.

Throughout this shift, technological developers have sought to move away from traditional relational databases, such as Oracle and MySQL, and have moved towards the creation of personalised applications, exploring innovations such as the Internet of Things (IoT), cloud and artificial intelligence (AI) to support this ongoing disruption. â&#x20AC;&#x153;When you look at the demands of modern applications, especially in IoT where youâ&#x20AC;&#x2122;re dealing with a huge explosion in data volume and the need to scale globally to serve lots of different factories or connected assets, companies are also looking to deploy onto the cloud. These sorts of requirements are pushing relational databases beyond their design constraints, leading developers to turn their attentions towards solutions that house AUGUST 2019

“ Developers are very focused on time to market, how quickly they can build applications and infrastructure agility” — Mat Keep, Senior Director of Products and Solutions, mongoDB 47

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TECHNOLOGY

CLICK TO WATCH : ‘WHAT IS MONGODB?’

“IoT data is incredibly valuable in launching new business models, gain insights and operational efficiency” — Mat Keep, Senior Director of Products and Solutions, mongoDB AUGUST 2019

modern data platforms and meet

transforming amidst an advancing

demands across various applications,”

digital age.

explains Senior Director of Products and Solutions, Mat Keep.

“The survey also found that more than 50% of a developer’s week is

Witnessing exponential growth in

spent maintaining legacy systems.

the last five years, technology leader

If you can’t get access to the develop-

MongoDB has sought to support

ers you need, companies have to

companies, organisations and

maximise the productivity of the

developers throughout their digital

developers that they have,” he adds.

journeys. A previous survey by

“Companies are now looking at

innovators, Stripe and Evans Technol-

modernising their systems, moving

ogy found that C-level executives now away from legacy mainframes and view access to developers as the

relational databases, and utilising

number one constraint to growth,

the type of technologies that

highlighting the importance of

MongoDB can provide.”

MONGODB FACTS

•T he emergence of open source and cloud technology has seen developers become increasingly empowered to choose their own technologies in which to build modern applications. • I oT will enable manufacturers to blend the physical world and the products they’re developing with a new digital world, unlocking new revenue streams and opportunities

•B osch sought to implement a modern nonrelational database and selected MongoDB for its f lexible data model •D atabases remain one of the largest single segments of the enterprise software market, and through to 2022, global revenue is expected to increase to over $80bn

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TECHNOLOGY

“ There are a whole range of automotive applications that Bosch is working on, where MongoDB is at the back end to support the development of smart vehicle services” — Mat Keep, Senior Director of Products and Solutions, mongoDB

AUGUST 2019

A GREAT USER EXPERIENCE Describing MongoDB as “a data platform that just helps developers build modern applications faster,” Keep explains that the emergence of open source and cloud technology has seen developers become increasingly empowered to choose their own technologies in which to create and build modern applications. “Developers are very focused on time to market, how quickly they can build applications and infrastructure agility. They want to grow that database and application quickly to collect more sensor data, for example. They don’t want to change their application and database when they go from a single node to a thousand nodes, the application needs to behave in the same way,” he says.

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O P E R AT I O N A L E X C E L L E N C E

XPO LOGISTICS:

SUPPLY CHAIN AND MANUFACTURING EXCELLENCE IN A DIGITAL WORLD XPO Logistics reigns supreme in the delivery of exceptional supply chain management. We speak with Managing Director of its European Supply Chain, Richard Cawston, regarding its ongoing digital journey WRITTEN BY

AUGUST 2019

CATHERINE S TURM AN

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O P E R AT I O N A L E X C E L L E N C E

ecognised as one of the fastest growing transportation companies by Fortune 500, as well as one of

Americaâ&#x20AC;&#x2122;s best employers by Forbes, global logistics provider XPO Logistics has cemented its position as a key leader in the delivery of exceptional supply chain management (SCM). Originating from the delivery of raw materials to a prospective manufacturer, all the way to the end consumer, XPO has sought to unlock further value across the supply chain through increased agile ways of working.

Investing more than US$450mn each year in the development and subsequent implementation of new technologies across its operations, over 1,700 technologists have focused on four areas of innovation amidst ongoing challenges across the supply chain: automation and intelligent machines, visibility and customer service, the digital freight marketplace and dynamic data science From the traditional flow of goods to the growing importance of information low across its logistics, manufacturing, warehousing and e-commerce activities, Managing Director of its European Supply Chain, Richard Cawston explains that the shift towards the growing B2C market â&#x20AC;&#x153;has been quite dramatic over the last 10 yearsâ&#x20AC;? AUGUST 2019

particularly across its European operations. “Our shopping habits, our expectations, availability and price competitiveness have all been disrupted. This is on top of getting goods on time, returning them if we don’t want them, and we also want them at our convenience, and at the lowest cost. Previously, supply chains of goods have been brought in for manufacturers, stocked seasonally, sent and then dealt with through the retailer. We’re now servicing customers directly, and that’s probably the most profound change. Who’d have thought we’d have been doing that so much 10 years ago?” w w w.ma nufa c t uri nggl o b a l. com

O P E R AT I O N A L E X C E L L E N C E

“ T HE DIGITAL WAREHOUSE IS A VERY PRESTIGIOUS PROJECT AND BRINGS TOGETHER EFFICIENCY IN THE SUPPLY CHAIN” — Richard Cawston, Managing Director, XPO Supply Chain, Europe 56

As consumers increasingly demand interaction across the entire supply chain, XPO has embraced new partnerships to develop digital solutions of the future. One such example is the company’s recent collaboration with food and beverage juggernaut, Nestlé, in the co-creation of a 638,000-squarefoot distribution centre at its Logistics Park in Leicestershire, United Kingdom. The state-of-the-art digital warehouse and technology laboratory will provide an essential testbed environment for XPO to assess new, innovative technologies to transform its operations and will enable Nestlé to enhance its service offerings. AUGUST 2019

“It’s a very prestigious project and brings together efficiency in the supply chain along with the latest technology. Most importantly, it will encompass a development area where we can really test new technologies and their application, and will keep this warehouse at the forefront of the digital age,” says Cawston. “Nestlé has entrusted XPO with the digital architecture for its future vision. The new centre will operate as both a think tank and a launch pad for XPO innovations.”

XP O LO GI ST I CS

• Recognised as one of the fastest growing transportation companies by Fortune 500. • XPO Logistics invests more than US$450mn each year in the development of new technologies. • XPO Logistics has partnered with Nestlé in the co-creation of a digital warehouse and technology laboratory.

CLICK TO WATCH : ‘XPO LOGISTICS - LET’S MOVE THE WORLD FORWARD’ 57 “While it’s relatively traditional to

new facility will house energy-saving

build an automated warehouse, these

LED lighting, environmentally friendly

things are in the planning for several

ammonia refrigeration, air source heat

years and can become outdated very

pumps for administration areas and

quickly,” he adds. “We deliberately

rainwater harvesting. Upholding strong

designed this one with a concept and

ISM standards also positively filters

a culture which allows that digitalisa-

into a reduction in XPO’s carbon

tion and will ensure that the technology

footprint. “I think it goes in harmony

remains adaptable. Part of the success

with good practice operations, and

of the project will be to integrate this

customer sustainability for me,”

way of working so that it will remain

says Cawston.

relevant 10 years from now. It’s really exciting.”

However, across the manufacturing and supply chain, demands for not

By taking an extensive look at the

only data availability, but the speed

energy efficiency of each building, the

of processing data is becoming ever w w w.ma nufa c t uri nggl o b a l. com

O P E R AT I O N A L E X C E L L E N C E

more critical. Showcasing advanced robotics and utilising cloud, predictive data and analytics from the Internet of Things (IoT), Cawston explains that XPO has invested in a multitude of new technologies to guarantee correct volumes of inventory, bolster security and promote agility across the supply chain. “Equipment needs to be well utilised, and this is where data comes AUGUST 2019

“ NESTLÉ HAS ENTRUSTED XPO WITH THE DIGITAL ARCHITECTURE FOR ITS FUTURE VISION. THE CENTRE WILL OPERATE AS BOTH A THINK TANK AND A LAUNCH PAD FOR XPO INNOVATIONS” — Richard Cawston, Managing Director, XPO Supply Chain, Europe

into play. In the B2B and B2C environ-

Technology will also play a greater

ment, we see returns levels of up to

role in driving health and safety

50% in some markets, maybe even

standards across the factory floor,

higher. This is a huge inbound supply

with new devices, such as co-bots

chain source where we can grant

undertaking heavy manual work, and

increased visibility, look at various

humans will undertake “the human

trends and influence this in a positive

parts of a job.”

way across the supply chain. All of

“As we develop our own technology,

that relies on using data to increas-

we’ll take what’s available and we’ll

ingly predict and manage the flow

make that application work. We’ll do

of goods.”

the same with our systems, integrating w w w.ma nufa c t uri nggl o b a l. com

O P E R AT I O N A L E X C E L L E N C E

“ WE’RE AS MUCH ABOUT WORKING WITH GREAT STRATEGIC PARTNERS, AND ALSO DEVELOPING OUR OWN 60 TECHNOLOGY” — Richard Cawston, Managing Director, XPO Supply Chain, Europe

all technologies. We’re as much about

We will need to enable the greater

working with great strategic partners,

development of products such as

and also developing our own technology

3D printing, how they can be delivered

and the application of that technology,”

through supply chains in a virtual way,

adds Cawston.

and how companies like XPO can

“Customer trends are changing fast and for me that is the challenge. We

facilitate this.” “For XPO, it’s the technology across

need to keep this pace of change –

all of those parts that we invest in,

whether it is how we integrate robotics

so that visibility of the supply chain

and equipment of people, or how we

or predicting what the customer will

service goods globally, B2C as well

want but hasn’t yet dealt with it through

as through traditional supply chains.

manufacturing, shipping, transportation,

AUGUST 2019

supply chain, virtual or indirect

across the supply chain, and transform

or direct, to customer. That overall

existing manufacturing processes.

system connectivity making a big

Using the talents of its people, its

difference in the overall supply chain,

financial resources and commitment

and allowing supply chain companies

to create a new digital landscape,

like ourselves take greater control

XPO Logistics will continue to

of that overall picture.â&#x20AC;?

go from strength to strength.

As the supply chain and manufacturing sectors become more integrated, the mass manufacturing of robotics, rather than robotics mass manufacturing will enhance the flow of goods w w w.ma nufa c t uri nggl o b a l. com

T O P 10

TOP 10 62

Food and drink manufacturers Manufacturing Global counts down the top 10 biggest food and drink manufacturers, according to Forbes’ Global 2000 ranking of the world’s largest public companies WRITTEN BY

AUGUST 2019

WILLIAM SMITH

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T O P 10

Heineken $26.5bn

Brewing company Heineken came in at 368th by Forbesâ&#x20AC;&#x2122; metric. It is headquartered in Amsterdam in the Netherlands, the same city in which it was founded in 1864. The companyâ&#x20AC;&#x2122;s original location was preserved and turned into a museum. Aside from their main Heineken beer, the company owns brands such as Bulmers, Strongbow, Amstel and Tiger. They made a profit of $1.1bn in 2018, with a revenue of $26.5bn.

AUGUST 2019

Tyson Foods $40bn

Meat processing giant Tyson foods is the United States largest producer of chicken, beef and pork. Described by its Group President of Poultry as â&#x20AC;&#x153;farmer-focused, american-owned [and] globally minded,â&#x20AC;? the company says it produces 1 in 5 lbs of all chicken, beef and pork in the United States, and exports to 125 countries. The company is headquartered in Springdale, Arkansas. Achieving a position of 354th, its 2018 revenue totalled $40bn according to Forbes, with a profit of $1.9 bn.

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T O P 10

Archer Daniels Midland $64.3bn

Headquartered in Chicago in the United States, food processing company Archer Daniels Midland specialises in producing and providing ingredients from raw crops such as grains. Products include high-fructose corn syrup, cocoa powder, and oils such as canola. It was first founded in Minneapolis in 1902 as a Linseed crushing business. In 2018, the company made profits of $1.8bn with revenue totalling $64.3bn. It came in at 327th worldwide on Forbesâ&#x20AC;&#x2122; ranking.

AUGUST 2019

Diageo $16.7bn

283rd on Forbesâ&#x20AC;&#x2122; list, Diageo is a multinational alcoholic beverage company based in London. The owner of brands such as Smirnoff and Guinness, Diageo recently announced that it would remove plastic from its multipack beers starting from August 2019 in Ireland and summer 2020 elsewhere. Its revenue in 2018 reached $16.7bn, with profits of $3.9bn.

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T O P 10

Danone $29.1bn

The Paris-based food processing company Danone S.A. came in at 244th on Forbesâ&#x20AC;&#x2122; list, recording revenue of $29.1bn and profits of $2.8bn. The company describes its business as being built on four sectors: dairy and plant, waters, early life, and medical. Producing worldwide brands such as Evian, Volvic, Activia, and Alpro, the company was founded in 1919 in Barcelona as a yoghurt producer, a product it is still well known for.

AUGUST 2019

Mondelëz International

$25.9bn

Multinational confectionery company Mondelēz was formed after its predecessor Kraft Food’s split into Mondelēz and the grocery company Kraft Foods Group. Ranked 228th, the company had a 2018 revenue of $25.9bn, with profits totalling $2.5bn. Headquartered in Deerfield, Illinois, the company’s portfolio features the likes of Oreo, Ritz, Cadbury, and Toblerone. The company recently launched a sustainable sourcing initiative for its chocolate products, such as Toblerone and Cadbury.

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T O P 10

The Coca-Cola Company $31.7bn

133rd on Forbes’s list, The Coca Cola Company is headquartered in Atlanta, Georgia, the same city in which it was founded. The company operates on a franchise system, selling its syrup to various regional bottlers. Despite the company’s status as one of the world’s most recognisable brands being built on its eponymous cola, the company also owns worldwide brands such as Sprite, Schweppes, and Dasani. The Coca Cola Company recorded revenue of $31.7bn and profit of $6.4bn in 2018.

AUGUST 2019

PepsiCo $65bn

PepsiCo traces its history back to 1898, when Caleb Bradham first formulated Pepsi-Cola for sale in his North Carolina pharmacy. Today the company is responsible for the production of its eponymous cola as well as brands including Mountain Dew, Gatorade, Lay’s and Doritos. 86th on Forbes’ list, the company’s revenue reached $65bn dollars, with profits totalling some $12.6bn dollars in 2018.

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T O P 10

Anheuser-Busch InBev $54.6bn

Multinational drink and brewing company AnheuserBusch InBev is headquartered in Leuven, Belgium. Founded in 2008 from the acquisition of Anheuser-

Busch by InBev, it serves as a holding company for its subsidiaries, including Belgium’s InBev, US company Anheuser-Busch, and Brazil’s Ambev. Ranked in 69th place, their 2018 revenue was $54.6bn with profits of $4.3bn. The company’s scope means that it is ultimately the owner of many famous brands, such as Budweiser and Stella Artois. It traces its history back to the founding of the Den Hoorn brewery in 1366.

AUGUST 2019

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T O P 10

Nestlé $93.4bn

Nestlé is the world’s largest food and drink company, releasing products across a vast range of brands; over 2,000 according to its figures. They operate in 190

countries. Founded in 1867, Nestlé says it is continuing the legacy of founder Henri Nestlé, noting his creation of a life-saving infant cereal more than 150 years ago. The Swiss company is headquartered in Vevey. It was ranked 42nd on Forbes’ list with a revenue of $93.4bn, and profits of $10.4bn.

AUGUST 2019

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EVENTS & A S S O C I AT I O N S

The biggest industry events and conferences WRITTEN BY WILLIAM SMITH from around the world

10–11 SEPT 2019

4th Annual Future Manufacturing and Trade Summit 2019 [ DUBAI, UNITED ARAB EMIRATES ] With sponsors including Epicor and Daifuku, the 4th Annual Future Manu-

18 SEPT 2019

facturing and Trade Summit 2019 is

Industry 4.0 Exchange

associated with the UAE’s Ministry

[ DERBY, UNITED KINGDOM ]

of Energy and Industry. Focusing

Sponsored by renowned companies

industry. As a platform to exchange

such as Epicor and Sage Enterprise

ideas, the event will include access

Management, the Industry 4.0 Exchange

to leaders in fields such as lean manu-

event brings together Manufacturing IT

facturing, process improvement and

professionals, architects, CIOs, CTOs

automation. Attending are companies

and more to look at ways to enhance

such as Mattel, The Dow Chemical

supplier performance and the advan-

Company, Toyota, Kraft and many more.

tages of innovative technologies and

Key themes this year include manufac-

range of software solutions to drive long-

turing profitability and innovation, talent

term growth. Attendees can attend a

and optimisation. This year’s speakers

range of sessions, covering topics such

include Denise Johnson, Group Presi-

as ‘connecting the digital supply chain’

dent of Caterpillar inc., Jesper Toubol,

to mastering ‘the challenges of modern

VP, Elements and Moulds at LEGO and

manufacturing with ERP.’

Warren Pruitt, VP, Global Engineering Services Colgate.

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Creating value and sustainability through technology in the Armacell supply chain WRITTEN BY

HARRY MENEAR PRODUCED BY

DENITRA PRICE

AUGUST 2019

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ARMACELL

Amber Jesic, General Manager, Supply Chain,Americas at Armacell discusses using technology to pursue best sustainable practice in the company’s supply chain

he global perception of the supply chain has undergone a revolution over the past decade. What was once a series of

independent nodes in a scattered network of buyers and suppliers conducting transactional 82

deals has transformed into something far more delicate, complex and effective. “Organisations are becoming more sophisticated in the supply chain space. As they become better at supply chain and inventory management, they’re becoming more aware of the opportunities associated with the supply chain becoming more interdependent and approached from an end-to-end perspective,” says Amber Jesic, General Manager, Supply Chain, Americas at Armacell. “The increasing availability of real-time reporting and visibility, as well as increasing customer expectations, has certainly caused supply chains to evolve in recent years.” As the global supply chain industry changes, this newfound maturity opens up avenues for companies to fulfil ambitions and live up to core values in new ways. AUGUST 2019

Production lines in Mebane, NC

Armacell manufactures structural PET panels in Brampton, Ontario, Canada.

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ARMACELL

As a global leader in the insulation market, Armacell’s products are vital to making projects in the construction and manufacturing space more energyefficient, and therefore sustainable. For Jesic, her role at Armacell was the perfect fit. “Sustainability is not only personally important to me, but it’s also the basis of how Armacell operates,” she says. “The company has a culture of global collaboration and innovation that was appealing and they’re also open to change. I saw the role as a chance to make contributions 84

to the organisation, and an opportunity

“ Sustainability is not only personally important to me, but also the basis of how Armacell operates” — Amber Jesic, General Manager, Supply Chain, Americas, Armacell

Elastomeric foam sheets and rolls are stored before shipping out of Armacell’s component foam plant in Conover, NC

AUGUST 2019

CLICK TO WATCH : ‘MAKING A DIFFERENCE AROUND THE WORLD’ 85 to leverage our holistic network and

officially incorporated in 2000, its

supply chain to drive competitive

origins can be traced back to the

advantage and drive efficiencies.

1860s and Armstrong World Industries.

A lot of our products drive sustain-

In 1954, Armstrong was responsible

ability. Our ArmaFlex closed cell foam

for the invention of ArmaFlex, the

insulation saves 140 times more

world’s first flexible insulation product,

energy over the course of its life than

carving out its own industry niche

needed to manufacture and transport

that it has dominated ever since.

it.” We spoke to Jesic about the

In addition to making flexible products,

ways in which Armacell is harnessing

Armacell is committed to ensuring that,

cutting-edge technology in order

as a company, it stands by its principles

to drive supply chain innovation, not

of sustainability. “As a multi-materials

only to create value, but make the

and multi-product company, we

company more sustainable.

apply world-class practices every day

Although Armacell itself was

and expand into adjacent technical w w w.ma nufa c t uri nggl o b a l. com

ARMACELL

“ Technology provides an opportunity to simultaneously reduce costs and improve service” — Amber Jesic, General Manager, Supply Chain, Americas, Armacell

insulation end markets, continuously

sustainable technology and strategies

extending our temperature range

across Armacell’s supply chain, from

and equipment verticals,” Jesic says.

converting the company’s shipping

“We substitute the legacy materials

lines to an intermodal approach and

of our competition with our innovative

reducing miles travelled, to recycling

solutions and reinforce our premium

over one billion plastic bottles into

brand position to create value for

polyethylene terephthalate (PET)

equipment owners, specifier engineers,

products. “Beyond the benefits we

contractors and investors.”

seek to realise through technology,

Jesic’s role provides a broad mandate

we also are committed to best practices

and list of responsibilities, as she

that impact the environment. To reduce

oversees purchasing, planning, distribu-

waste, we have cases where we also

tion, transportation and compliance.

donate our scrap to prevent it from

She and her team are working to deploy

going into landfills,” says Jesic. “It can

AUGUST 2019

be used in the carpet industry as a padded base for installations, sometimes it’s used for the foam padding in children’s playgrounds – the breadth of application is mindboggling sometimes, given all the different areas you can use foam.” The core of the company’s innovations and sustainability initiatives involve applying technology to create value in a sustainable way. “Technology provides an opportunity to simultaneously reduce costs and improve service. We’re driving automation

E XE CU T I VE PRO FI LE

Amber Jesic, General Manager Amber Jesic is the General Manager of Supply Chain, Americas, at Armacell. Jesic’s innovative and analytical approaches have redefined and optimised the value of supply chains within select Fortune 500 companies. A key strategist with an award-winning career in supply chain management, she has proven that with ingenuity, solutions to complex issues can be developed. She is a thought leader, having led an autonomous truck program as featured in the New York Times. Amber holds a Six Sigma Black Belt and an MBA from NYU Stern School of Business.

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ARMACELL

$686mn Approximate revenue

2000

Year founded

3,000

Approximate number of employees 88

AUGUST 2019

Armacell makes foam for gaskets for use in the aerospace industry w w w.ma nufa c t uri nggl o b a l. com

ARMACELL

Armacell makes foam for gaskets for use in the transportation industry

CONTRIBUTING TO THE EARTH’S FUTURE WORKING HAND IN HAND WITH OUR CUSTOMERS

Congratulations Armacell on your fine article!

THE WORLD’S LARGEST PVC PRODUCER & RIGID VINYL COMPOUNDER Resin Sales – Domestic & Export 713 965 0713

K-Bin KBcustomerservice@k-Bin.com

“ Beyond the benefits we seek to realise through technology, we also are committed to best practices that impact the environment” — Amber Jesic, General Manager, Supply Chain, Americas, Armacell

wherever possible and easing the process of doing business with Armacell, predominantly through EDI integration, but also through our digitalisation efforts regarding load planning and shipment consolidation to reduce miles travelled and condense shipments,” Jesic explains. As a company that has never been afraid to carve its own way using the latest technological developments on offer, Jesic points out that Armacell is watching the development and testing

PA R T N E R FA C T S

Shintech The modern supply chain is becoming more collaborative and interconnected. As Jesic notes, “multifaceted partnerships are much more common. We work with our suppliers to develop mutually beneficial plans for the management, inventory management as well as delivery.” Founded in 1974, Shintech has grown to become a leader in its field in much the same way as Armacell. It is currently the largest producer of PVC in the US and has been partnered with Armacell for more than five years. “Their consistent service has been an asset to our business,” says Jesic.

of autonomous freight vehicles with great interest. “They can definitely w w w.ma nufa c t uri nggl o b a l. com

ARMACELL

drive sustainability benefits,” she says. “Autonomous trucks will let you better handle fuel usage, there’s less starting and stopping, you can have a bigger fuel tank without a driver, and of course an autonomous truck will be able to provide much more accurate track and trace capabilities.” Gathering data from a fleet of autonomous trucks may be years away for Armacell, but Jesic stresses how vital data from other sources has become for the company today, and 92

the importance of having the analytics to draw actionable insights. “We’re in the design and development phase of using forecasting tools that will provide predictive analytics which will be used in our production planning and inventory management to better service our customers,” she explains. As the leader in the $13.5bn equipment insulation market, Armacell is constantly striving to pursue its multi-pillar growth strategy. Its dedicated R&D teams are continually driving the company’s portfolio growth of intellectual property, having more than doubled the number of patents in the company’s name over the past five AUGUST 2019

years. Looking to the future, Jesic is excited to continue bringing Armacell’s open, innovative approach to the workings of its supply chain and management of her team. “I encourage a culture of openness to change and present things in a perspective that highlights the benefits of why that change is being introduced. So, in the instance of digitalisation, if it improves the ease of doing business with Armacell, our suppliers and customers then I’ll emphasise those benefits to the teams so they understand why we’re pursuing these changes. Also, benefits like automated reporting help keep our focus on best, not budget,” she concludes. Armacell’s future is bright, as it continues to work towards creating not only value, but a bright future for the planet too.

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LINFOX INTERNATIONAL GROUP 94

DRIVING DIGITAL TRANSFORMATION THROUGH COMMUNICATION AND TRUST

WRITTEN BY

MARCUS LAWRENCE PRODUCED BY

KRIS PALMER

AUGUST 2019

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L I N F O X I N T E R N AT I O N A L G R O U P

Supply chain services provider Linfox International Group is undergoing a digital transformation to optimise its internal processes and offerings. Edwin van Poelje, Regional IT Manager at Linfox, discusses the process and its successes thus far

ince its establishment in 1956 by Lindsay Fox, Linfox has become the leading provider of logistics and supply chain

services to the Asia Pacific region’s largest 96

companies. To maintain its advantage over the competition, Linfox has embraced disruptive technologies as a means to increase efficiency, reduce costs, boost transparency and trust, and drive customer satisfaction. “Digital transformation is not a threat, but an opportunity,” says Linfox’s Regional IT Manager, Edwin van Poelje, who is currently based in Bangkok. “Through digital transformation, we aim to understand company and customer processes more effectively, as well as capturing our digitised output on a central platform in combination with blockchain. Leveraging this data enables the company to report horizontally rather than by application or department, making the impacts of actions and decisions more visible.” He stresses that the journey is only as effective as the communication running through it. To that AUGUST 2019

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L I N F O X I N T E R N AT I O N A L G R O U P

“ Implementing software is a relatively simple process, however the change management process is key to making any implementation a success” — Edwin van Poelje, Regional IT Manager, Linfox International

effect, Linfox has adopted an organisa-

behind the implementation are vital.”

tional approach to digitalisation that

According to Van Poelje, Linfox has es-

places cooperation and human interac-

tablished change management as one

tion at the forefront of its journey.

of its key factors for aligning its digital

“Implementing software is relatively

solutions with its business needs,

simple. However, the change manage-

whilst ensuring that fears of replace-

ment process is key to making any

ment through automation are handled

implementation a success,” says Van

with care and sensitivity. Replacing

Poelje, discussing the firm’s impact

staff with digital solutions, he adds,

mitigation of the culture shift inherent

is not an aim of their implementation.

in digital transformation. “The involve-

Instead, automation enables work-

ment of relevant users, training those

ers to contribute to the business in

users, and assuring and reassuring of

other ways. “We use machine learning

the functionality, benefits and rationale

to automate and improve our report-

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E XE CU T I VE PRO FI LE

Edwin van Poelje Edwin van Poelje is an experienced IT executive, leader and strategist responsible for supply chain solutions, IT and innovations at Linfox across the Asia Pacific region. With over 20 years’ experience across multiple roles — including in management of IT strategy, migrations, upgrades, hardware and software implementations, relocations and restructuring projects — van Poelje has a seasoned and unique ability to manage multi-disciplinary IT environments, projects and challenges. Prior to working at Linfox, van Poelje accrued experience and success in roles with Shell, Ernst & Young, Capgemini and TNT Logistics.

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L I N F O X I N T E R N AT I O N A L G R O U P

“ We are standardising and centralising functionality on Azure wherever possible” — Edwin van Poelje, Regional IT Manager, Linfox International

100

ing process on the Microsoft Azure platform. This is not meant to reduce our headcount; instead, it allows the team to focus on and action reporting outcomes, as well as supporting more elements of the business.” Alongside the possibilities for automation afforded by machine learning, Linfox has also begun to adopt artificial intelligence (AI) to assist with maintaining safety standards. “Our trucks have facial recognition software powered by AI that is capable of determining when a driver looks tired or is not complying AUGUST 2019

with safety standards, prompting an alert to address the issue.” Another key aim of the digital transformation is in minimising the firm’s regional hardware footprint, which is where the aforementioned Microsoft Azure platform comes into play. “Cloud technology is a key pillar in our digital strategy,” notes Van Poelje. Cloud technology not only enables Linfox to accelerate the time-to-market of its solutions and services, but also considerably boosts ease of access, scalability, budgeting and billing capabilities. “Reduction of hardware onpremise reduces the associated risks of hardware failure, performance and capacity constraints and backup,” says Van Poelje, adding that the strength of Linfox’s cybersecurity is facilitated by ensuring that the company’s cloud providers adhere to its strict cloud security standards for the benefit of users and customers. This alignment between Linfox and its suppliers is inherent across each of its vendor partnerships, with Van Poelje highlighting trust as the key factor in getting the best deal and service. “With our vendors we look for a long-term, w w w.ma nufa c t uri nggl o b a l. com

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L I N F O X I N T E R N AT I O N A L G R O U P

25,000

Approximate number of employees

1956

Year founded

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AUGUST 2019

CLICK TO WATCH : ‘LIG CORPORATE VIDEO’ 103 trustful and worthy relationship,” he

we offer internally and externally.” This

says. “As a family-owned company, our

functionality extends beyond cloud

values are Loyalty, Integrity, Fairness

functionality and cybersecurity to data

and Trust. We seek to match these

analysis, reporting and dashboarding.

values with our vendors to ensure they

“All of our systems either run on Azure

are the best placed to assist us with

or channel data into our Azure data

achieving our digitalisation goals.”

lake. From there, we can run reports

“Microsoft is a key player for us,” con-

and dashboarding, and allow access

tinues Van Poelje. “We are standardis-

to users and customers at the point

ing and centralising functionality on

of need.” Linfox’s efforts to harness

Azure wherever possible. For example,

data through digitalisation does not

we have standardised our transport

end there, however. Digitalisation has

management system and warehouse

enabled Linfox to reduce its paper us-

management system, providing the

age, optimise processes and access

standard for all services and solutions

to digital information, simultaneously w w w.ma nufa c t uri nggl o b a l. com

L I N F O X I N T E R N AT I O N A L G R O U P

“ As a family–owned company, our values are Loyalty, Integrity, Fairness and Trust” — Edwin van Poelje, Regional IT Manager, Linfox International

104

generating usable data and identify-

also ties Linfox’s ethos of open and

ing that which should be added to

collaborative communication together,

its blockchain network. “The benefit

providing a single source of truth for

of blockchain is the transparency of

users across the organisation that

information for customers regarding

can be relied upon to deliver the right

security, key performance indicators

information at the point of need.

and finance,” explains Van Poelje. “The

The successes and benefits of

immutable principle of blockchain

Linfox’s digital transformation are

makes this trustworthy and secure.

plentiful. Assessing the key benefits

In combination with smart contracts,

of the journey for employees, van

this will enable easy customer com-

Poelje highlights ease of access as

pliance and fulfilment.” Blockchain

being a decisive factor in the success

AUGUST 2019

ency,” adds Van Poelje. “Our business intelligence environment gives a near real-time display for operations, departments and customers, which was not possible in the past.” Van Poelje also highlights the digitisation of the company’s safety process, particularly the frictionless manner in which it was enacted. “Instead of using paper, everyone is using online forms to report and communicate on safety aspects. “In addition, I am proud of the Azure environment we have established. It has been setup in a flexible way to accommodate for future demand.” This future-proofing is the crux of Linfox’s powerful position as a leading digitised supply chain solutions found through the application of new

provider. Van Poelje says that the next

technologies. The time freed up by

stage is to develop Linfox’s supply

leveraging solutions that enable em-

chain operations further, becoming

ployees to access data quickly, easily

a modular, dynamic and flexible service

and reliably is combined with the re-

provider that is able to connect with

duced labour afforded by automation

and fulfil the needs of any custom-

of repetitive processes. This ability to

er. With the laudable successes

apply time and skill more construc-

achieved so far, this goal seems not

tively not only boosts operational ef-

only achievable, but inevitable.

ficiency, but also job satisfaction. “For the organisation specifically, the key benefit is the visibility and transparw w w.ma nufa c t uri nggl o b a l. com

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OPENING THE MARKET AS PIONEERS IN TRANSPORTATION TECHNOLOGY IN BRAZIL WRITTEN BY

MARÍA COBANO-CONDE PRODUCED BY

MANUEL NAVARRO

AUGUST 2019

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REMA TIP TOP BRASIL

REMA TIP TOP is the leader in transport technology and surface treatment with a view to expanding tyre repair in Brazil

fter the recent acquisition of Norte Sul Serviços de Vulcanização in Brazil in early 2017, REMA TIP TOP took a giant step

towards expanding its commercial presence in Latin America. 108

This is how the company consolidated its global operating system, providing services, products concerning the transport technology field and surface treatment, as well as tyre repair. This agreement is already showing some impressive figures. Since its creation in Germany 1923 by the Gruber brothers, Otto and Willy, as a distributor of screws and metal parts, the growth of REMA TIP TOP has been meteoric: the operation is currently present in more than 150 countries, with more than 6,900 partners, and that during the 2017 financial year generated more than €1bn in global profits.

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REMA TIP TOP BRASIL

MAXIMIZING THE LIFE AND PRODUCTION OF MINING SYSTEMS AND INDUSTRIAL EQUIPMENT Your industry leading experts in repair and lining polymers

INNOVATIVE CONVEYOR BELTS AND MILL SOLUTIONS https://www.linkedin.com/company/fourthane/

www.facebook.com/Fourthane

https://twitter.com/FourthaneGlobal

https://www.instagram.com/fourthane/

https://www.youtube.com/channel/UCpXrWewEDc9wm5tKlVs5-_Q

https://fourthane.com/en/ fourthane.com

‘ REMA TIP TOP Brazil implemented a new SAP platform in May’

111

EXPANDING IN BRAZIL REMA TIP TOP started its own operation in Brazil in 2016, opening an independent commercial line of approximately 200 employees, after having operated in the country for a long period of time through its former distributor, Norte Sul Serviços de Vulcanização. REMA TIP TOP bought the entire line of business – through an investment of approximate €5mn – and maintained its business in Brazil with the implementation of a new strategy. There was a need to take the operation w w w.ma nufa c t uri nggl o b a l. com

REMA TIP TOP BRASIL

to the next level, to open new markets

ing its team in Brazil by adding more

in order to make a better distribution of

salespeople and representatives in

the segments that were being carried

every region.

out, so to avoid depending on a single client, on a single segment. REMA TIP TOP is currently engaging in the general restructure of the

As part of the new operational direc-

entire top of the line team – produc-

tion REMA is taking in this country, the

tion managers, sales, and human and

company is creating its competitive

financial resources – by letting them

advantage through the development of

grow throughout three to four years

new products and acquisitions, with

to double the current sales.

positive outcomes that resulted in

REMA’s objective is to expand our global presence. In order to do this, 112

COMPETITIVE ADVANTAGE IN THE BRAZILIAN MARKET

Sales Management is also restructur-

AUGUST 2019

profits of more than €894mn in 2016. The company’s strategy includes the commercialisation of the vulcanising

CLICK TO WATCH : ‘REMA TIP TOP’ 113 press REMAPRESS IVE, created by its subsidiary, Vulcate, from which REMA TIP TOP created an XXL version adapted for the Brazilian market. The press has enjoyed great global popularity since its launch in 2015 and, among other improvements and innovations, has patented extraction bolts and pressure pads containing aramid fibers to ensure maximum safety. REMA TIP TOP has bought this press’ first modular model for its commercialisation. The press can extend up to nine meters, stand up to ST 8000 splices and since it is modular, it can be divided into w w w.ma nufa c t uri nggl o b a l. com

REMA TIP TOP BRASIL

‘ The growth of REMA TIP TOP has been meteoric: the operation is currently present in more than 150 countries, with more than 6,900 partners’ 114

AUGUST 2019

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REMA TIP TOP BRASIL

four smaller presses. This huge investment arrived in Brazil at the end of September. REMA TIP TOPâ&#x20AC;&#x2122;s matrix has a worldwide capacity, and because the operation in Brazil is subsidiary, it can take advantage of the technology, research development, and tools from its large central corporation. The press mentioned provides a clear example: it is a very powerful technology and the first one to buy this huge model was the subsidiary in Brazil. Likewise, REMA TIP TOP 116

Brazil takes advantage of the

AUGUST 2019

potential of another of its affiliated companies, Alpha Development, dedicated to research and development. Working in the development of new products and research tests, it ensures that REMA TIP TOP is always ahead in the market in terms of products and quality. It is an independent research and development company which always supports operations and responds to the end costumer’s requests about new products, new developments, and new solutions. The company’s team involves professionals with PhDs in Physics and Chemistry who work with machines that can develop reverse engineering of rubber, which is high-class technology.

GROWING THROUGH TWO DIFFERENTIATED LINES OF WORK This new beginning in Brazil allows REMA TIP TOP to focus on its main line of work: segmented belts and industrial belts, and their maintenance. But our vision of the future and our growth strategy doesn’t end there, it keeps on growing. w w w.ma nufa c t uri nggl o b a l. com

117

REMA TIP TOP BRASIL

REMA’s objective is to expand global presence. Results are already being seen, since sales are already 25% higher than last year’s same period, and it’s only the beginning of the year. Concerning market sectors to achieve this expansion, the main and only segment that REMA TIP TOP currently has in Brazil is industrial belts and tapes, as well as their maintenance, but REMA TIP TOP’s business as a parent company in the world is made up of two other segments as well. The automotive sector, the manufac118

turing, and maintenance of patches for large mining tyres is a powerful business globally and, on the other hand, REMA also has surface treatment businesses – anticorrosion businesses – to protect large impacts in the area and its floors. These two sectors represent a 20%-30% of

certainly represent half of the business,

REMA’s international business respec-

but the other half will be dedicated to

tively but have no current influence

the automotive business and surface

in Brazil.

treatment. This is REMA’s strategic plan

In order to take advantage of every opportunity the market can offer, the

for all of Brazil and South America. The company has been in contact with

future of REMA TIP TOP’s strategy

multinational companies, especially

will involve the development of three

from industrial ports, where many

businesses in Brazil: the industrial

platform ships require and need

tapes and their maintenance will still

maintenance against corrosion and

AUGUST 2019

‘ REMA TIP TOP’s international work philosophy provides plants, workshops and group subsidiaries independence of action’ 119

other surfaces, demanding special

in the field are made through tablets

flooring, special protection.

or phones with digital printing. The external development the

CREATING EXTERNAL AND INTERNAL VALUE

the sale of industrial belts and tapes.

REMA TIP TOP Brazil implemented

Since there is no production of belts in

a new SAP platform in May through the

Brazil yet, all belts have to be imported.

company that implements general

The transportation and customs costs

integration of all plants, operations,

for imports in Brazil make it difficult for

payment system, stocks and posses-

the company to compete against local

sion control system, accounting, costs,

manufacturers, but this will only be

and also budgets – it is a unique

a matter of time since the company is

management system. All entry and

conducting the relevant assessments.

exit controls for employees that are

company will experience is focused on

This strategy is part of a budget and w w w.ma nufa c t uri nggl o b a l. com

REMA TIP TOP BRASIL

C O M PA N Y F A C T S

• REMA TIP TOP has representatives in more than 150 countries • In Brazil, REMA TIP TOP generated sales of more than € 894 million • REMA TIP TOP has more than 6,300 employees around the world

120

• It has more than 170 subsidiaries and affiliates around the world

AUGUST 2019

growth study that estimates growth of approximately 25% in 2018 and 15% for the next five years, based on current long-term contracts as well as contracts that include competition and bidding. Expected sales will double current sales in this future estimated period, without considering the automotive and anti-corrosion treatment sectors. REMA TIP TOPâ&#x20AC;&#x2122;s international work philosophy provides plants, workshops and group subsidiaries independence of action for tropicalization and adaptation to the country where they are located. The central, general, and main axis is located in Germany, but there is a clear differentiation between what can be suitable or not in other countries, and this has been working efficiently as REMA TIP TOPâ&#x20AC;&#x2122;s strategy.

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