Manufacturing Global - September 2020 by Manufacturing Global

â&#x20AC;&#x201C; Driving value-added technology in the industry S E P T E MBE R 2 0 2 0

manufacturingglobal.com

MITIGATING COVID-19 DISRUPTION IN MANUFACTURING

Supply Chains

FOREWORD

elcome to the September issue of Manufacturing Global!

T:297 mm

This month’s cover feature sees us speak with Prabhakar Shetty, Global Head of Manufacturing Services at LTTS, to discuss digital transformation in manufacturing amid the backdrop of COVID-19. “It’s much harder to guard against a pandemic or a tsunami but COVID-19 has shown how important this planning is,” comments Shetty. Elsewhere in the magazine, we speak with Marko Yli-Pietilä, Head of Smart Operations at Stora Enso, to talk about the rise of digital in his organisation’s production, maintenance and safety. “We’ve collected data for a long time and used it for process optimisation however, there has been an even greater focus on digitalisation over the past few years,” he says. In addition, we explore how important digital platforms have become to PepsiCo, Ericsson, Nokia and HP as a result of Industry 4.0, while in another

feature, we also examine the transformative impact of 5G in manufacturing. Furthermore, Chris Quick, Founder and CEO of RealBotics, discusses how influential robotics is to the manufacturing space and the impact of COVID-19 in the industry, while we also hear from Erik Udstuen, CEO of TwinThread, about digital innovation. Be sure to check out in-depth reports with Siemens, Volvo Cars, Henkel, Coca-Cola Company and Aerojet Rocketdyne. Finally, we look at 10 of the world’s leading supply chains.

Would you like to be featured in the magazine? Get in touch at sean.galea-pace@bizclikmedia.com Enjoy the issue! Sean Galea-Pace

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

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PUBLISHED BY

EDITOR-IN-CHIEF

Sean Galea-Pace EDITORAL DIRECTOR

Scott Birch

PRODUCTION DIRECTORS

PROJECT DIRECTORS

Georgia Allen Daniela Kianickovรก

Karl Green Manuel Navarro Stuart Irving

PRODUCTION MANAGER

Owen Martin DIGITAL VIDEO PRODUCERS

James White

MARKETING DIRECTOR

Jason Westgate

DIGITAL MEDIA DIRECTOR

Leigh Manning

CREATIVE TEAM

Oscar Hathaway Erin Hancox Sophia Forte Sophie-Ann Pinnell Hector Penrose

MEDIA SALES DIRECTOR

Kieran Waite Sam Kemp

CREATIVE DIRECTOR

Billy Kabubi

MANAGING DIRECTOR

Lewis Vaughan

DIGITAL MARKETING MANAGER

Shirin Sadr

CHIEF OPERATIONS OFFICER

Stacy Norman PRESIDENT & CEO

Glen White

DIGITAL MARKETING EXECUTIVE

Jack Grimshaw ma nufa c t uri nggl o b a l. com

CONTENTS

ACCELERATING INDUSTRY 4.0 MANUFACTURING

10 26

38 48

70 Supply Chains

88 TwinThread

Spark innovation with Data Culture Learn how top companies develop people and process to succeed in the data era.

Organizations are investing trillions of dollars to become more data-driven, but only 8% successfully scale analytics to get value out of their data. What separates the top performers from the rest? Learn more at tableau.com/data-culture Bisson, Peter, Bryce Hall, Brian McCarthy, and Khaled Rifai. “Breaking Away: The Secrets to Scaling Analytics.” McKinsey Analytics. McKinsey & Company, May 2018.

130 Henkel

102 L&T Technology Services

114

Volvo Cars

158 The Coca-Cola Company

174

Aerojet Rocketdyne

SEPTEMBER 2020

Accelerating Industry 4.0 manufacturing WRITTEN BY

WILL GIRLING PRODUCED BY

K ARL GREEN

m a n u f a c t ur in g gl o b a l . c o m

SIEMENS

Benjamin Moey,VP of Siemens APAC, discusses how the company is fostering the adoption of advanced manufacturing technologies in the region

iemens has a reputation which is near-synonymous with technological innovation and visionary leadership in

the industrial manufacturing sector. The largest business of its kind currently operating in Europe, 12

the German company has enjoyed longstanding success in the manufacturing community since 1847. However, far from resting on its legacy, Siemens continues to take on truly global precedence as it expands to new markets and takes on region-specific challenges. This attitude couldnâ&#x20AC;&#x2122;t be expressed better than the work it is currently exhibiting in the Asia-Pacific (APAC) area, particularly Singapore, with which the company has enjoyed a long and prosperous entrepreneurial partnership since 1908. When Benjamin Moey joined the company in 2014 as the Head of Strategy and Business Development, he says that it was the unique value that Siemens brings to the APAC region which drew him in: â&#x20AC;&#x153;It was a unique opportunity. I think this company is at the cutting edge of technology and SEPTEMBER 2020

m a n u f a c t ur in g gl o b a l . c o m

SIEMENS

“ I think this company is at the cutting edge of technology and I’m glad to be back in Asia because this is the growing business hub of the world”

— Benjamin Moey, Vice President (Advance Manufacturing, Digital Industries, APAC), Siemens

I’m glad to be back in Asia because this is the growing manufacturing hub of the world.” A microelectronics engineer by training, Moey has enjoyed a varied career, including roles in strategic marketing, investment management the UK and Head of Strategy at Rolls Royce Energy (Asia Pacific). After starting with Siemens, he was soon promoted to Director (Mergers & Acquisitions) at the company’s Energy Division in Orlando, Florida, before rising to his current position as Vice President (Advance Manufacturing, Digital Industries) of the APAC branch. It is this full-spectrum experience, from

SEPTEMBER 2020

Ingenuity drives us CLICK TO WATCH

1:27

15 engineering to finance, strategy, R&D

from the hardware which gained its rep-

(research and development) and finally

utation. “There has been a lot of change

to mergers & acquisitions (M&A), that

in mindset at the management level

he believes primed him for leadership

and we have begun transitioning our-

at Siemens. “I’ve been around,” he

selves to be more digitally focused,” he

says, “and I think that the combina-

explains.”In the last four years, we have

tion of these diverse and international

been acquiring software companies in

experiences, as well as my MBA at the

the industrial space and today we are

London Business School, has really set

one of the leaders in that sector.” The

me up for my current role.”

transformation started in 2014 when

Moey’s wide breadth of experience

the company set out its 2020 vision,

and penchant for change came to the

which focused on a trinity of techno-

company at a crucial time; deciding to

logical changes within manufacturing:

fully embrace the exciting, new digital

electrification, digitalisation and auto-

era, Siemens has started to diversify

mation. Instrumental to ushering in this m a n u f a c t ur in g gl o b a l . c o m

new era for Siemens was the creation of ‘Next47’. A new unit receiving €1bn in funding over a five-year period, it is dedicated to fostering digital disruption and developing fourteen core technologies of the fourth industrial revolution (Industry 4.0), including robotics, AI (artificial intelligence), VR (virtual reality), cybersecurity and many more. Popularly conceived as a holistic integration of digital tech and the means of production, Industry 4.0 generates an exciting vision of the future, wherein self-optimising systems change the work/consumer dynamic forever. The possibilities of this paradigm shift, Moey claims, can be observed in two recent projects undertaken by Siemens, one in Vietnam and the other in Singapore. “Vinfast (a subsidiary of a Vietnamese Conglomerate Vingroup) had aspirations of building

E X E C U T I V E P R OF IL E :

Benjamin Moey Title: Vice President Company: Siemens Industry: Technology Location: Singapore Benjamin Moey, Vice President at Siemens, heads the company’s Advance Manufacturing Transformation Centre (AMTC) based in Singapore. Currently leading business development activities in the APAC region, Moey has been a strong advocate for innovative technology, having started out as an R&D process engineer in the semiconductor industry.

their own automobile plant to serve the local market,” he says. “Vinfast approached us in Vietnam asking ‘can you come and figure this out for us?’ Siemens, using the industrial software tools at our disposal and our knowledge of automation, designed and developed a digital twin of the factory. m a n u f a c t ur in g gl o b a l . c o m

SIEMENS

E O S PART N ERSHI P

EOS - “Siemens and EOS have been partners for almost a decade. It was the first company that we started the journey of 3D printing with at our Munich office. Since then, Siemens has acquired at least 50 or 60 EOS printers for serial production; we’ve worked very closely with them and helped to improve and optimise their machines for our own industrial manufacturing. In particular, we use EOS’ Additive Manufacturing machines to print our gas turbines components. This has accelerated our joint ventures and our alliances. Siemens is keen to demonstrate the power

SEPTEMBER 2020

of 3D printing, and that makes EOS a vital partner for us.” Benjamin Moey, Vice President (Advance Manufacturing, Digital Industries, APAC) JTC - “JTC is a local government entity that focuses on building industrial estates within Singapore. It’s a key partner to us because they are creating the possibilities and consolidating advanced manufacturing to sync with the West. JTC is helping us to make Singapore a nucleus for Industry 4.0 and beyond.” Benjamin Moey, Vice President (Advance Manufacturing, Digital Industries, APAC), Siemens.

19 Vinfast virtually commissioned it prior

imagination: Aquaculture 4.0. A

to the actual build.” Digital twin is

fish farm in Singapore approached

software which can replicate physical

Siemens to enquire how AI might be

assets in order to perform qualitative

able to help its business. Setting up

research before commencing a full

cameras to monitor fish growth pat-

project. Integrating IoT (internet of

terns, Siemens was able to compile

things), AI, machine learning and ana-

data that could be analysed by AI

lytics, Siemens’ digital twin enabled

software to find optimisation potential.

it to complete the project within 21

“Few people realise that digitalisa-

months - “It’s amazing how digitalisa-

tion is not just applicable to standard

tion and our tools have enabled this to

manufacturing facilities or production

happen within such a short period of

lines,” Moey posits. Although still in the

time,” Moey adds. The second project

data collection phase, he believes that

was slightly more unusual, yet it exem-

Aquaculture 4.0 has the potential to

plifies the diversity of the company’s

increase capacity ten-fold. m a n u f a c t ur in g gl o b a l . c o m

Transform your business with industrial 3D printing Digitization is rapidly impacting the manufacturing world. Make the decisive step towards an advanced and agile production with industrial 3D printing – including connected part and data flow.

www.eos.info

Projects and results like these

APAC region reach its full potential

could not be produced without the

by introducing next-gen manufactur-

technology to enable it or the inno-

ing techniques. “ASEAN probably

vative workplace culture to drive it.

accounts for about 20% of the world’s

Siemens, states Moey, possesses both

manufacturing revenue and growing;

of these valuable assets. Frequently

these manufacturing companies need

the two come together and this has

help and Siemens is ready to be part

led to some of the company’s greatest

of their growth story,” Moey says.

achievements. Prime examples include

A unique venture in the global market,

MindSphere, Siemens’ cloud-based IoT

the goal of AMTC is to bridge the gap

platform for connecting assets within

between developing and matured

an integrated, analytical platform, and

industrial practices, particularly with

its AMTC (Advance Manufacturing

regard to the adoption of 3D printing.

Transformation Centre) concept. The

Siemens hopes that helping compa-

latter was developed to help the

nies accelerate the adoption

SEPTEMBER 2020

“ There has been a lot of change in mindset at the management level and we have begun transitioning ourselves to be more digitally focused” — Benjamin Moey, Vice President (Advance Manufacturing, Digital Industries, APAC), Siemens

a low risk, low investment basis at our AMTC facilities,” he continues. It’s a noble, exciting idea and one which Moey has no illusions will be easy. “Each company’s journey will be different. But, we will have the right equipment builders, certification bodies, government authorities and researchers to help them get started,” he enthuses. Siemens’ goal with AMTC is to create an ecosystem of partners and technologies to support custom-

of advanced manufacturing tech-

ers with turnkey solutions and expert

nologies through simplification,

guidance. The company achieves this

digitalization and collaboration “can

by building strong relationships with

help them translate their prototype

its core partners/suppliers, such as

designs into industrial-scale produc-

EOS and JTC, as well as by leveraging

tion and truly harness their benefit on

the cream of the startup community

m a n u f a c t ur in g gl o b a l . c o m

SIEMENS

1847

Year founded

â&#x201A;¬87.bn+ Revenue in Euros

385,000 Number of employees

SEPTEMBER 2020

with next47. “We invest a lot in startups and support them because they are at the forefront of technology,” Moey explains. “Siemens helps them to mature, develop and support our ecosystem as a whole - many times we end up acquiring them fully.” The company is interested in working with equally open-minded companies which have an innovative approach to the industry; Moey considers it essential that they share this vision. That brings us back to Industry 4.0 and Siemens’ place within it. For Moey, AMTC and the company’s work in the APAC region are leading to a new paradigm of manufacturing and customer consuming which comically dubs ‘the lazy economy’. Detailed, optimised and intelligent, ‘the lazy economy’ could change our purchasing habits significantly. “IoT is helping us deliver what consumers want when they want it and to deliver it on time using advanced manufacturing technologies like 3D printing. One day, IoT might help us understand how much food you have in your fridge and schedule deliveries accordingly,” he says. The realisation of such a thoroughly connected m a n u f a c t ur in g gl o b a l . c o m

SIEMENS

system could dramatically increase consumption efficiencies by making products quickly to order. The challenge for the regional market, he claims, is the ready availability of cheap labour which makes companies interested in adopting next-gen manufacturing techniques lose incentive. However, Moey considers this to be a generational reservation, one which may not hinder younger businesses. “Once the new wave of leaders emerge, because they’re 24

more exposed to these technologies, they will have the right mindset and take things to the next level.”

“AMTC has been established to accelerate the adoption of advanced manufacturing technologies through simplification, digitalization and collaboration” — Benjamin Moey, Vice President (Advance Manufacturing, Digital Industries, APAC), Siemens

SEPTEMBER 2020

Siemens is primed to equip this next

to do so. “The changes happening

generation of APAC enterprise innova-

now are here to stay,” he summarises.

tors with the technical and systemic

“I think people will evolve their mind-

advantages that they’ll need to be

set in terms of how they deal with

competitive. The company has already

change. The most important thing

made notable progress in achieving

for them to understand is that digital

this aim with AMTC and its mastery of

transformation can be a gradual pro-

Industry 4.0 technology. Accelerating

cess; it doesn’t have to be overnight;

the adoption of advanced manufactur-

we need to constantly move and

ing in the region is Moey’s staunch goal

upgrade to really take on the chal-

and he wants to make it clear that a

lenges of tomorrow.”

partnership with Siemens is a significant step for any company that wishes m a n u f a c t ur in g gl o b a l . c o m

D I G I TA L P L AT F O R M S

The rise of digital platforms in manufacturing WRITTEN BY

SEAN GALEA-PACE

SEPTEMBER 2020

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

D I G I TA L P L AT F O R M S

Manufacturing Global examines how influential digital platforms have become to some of the leading players in the field As technology redefines the manufacturing industry, it has become essential to use digital manufacturing platforms to maximise operational efficiency and accelerate Industry 4.0. But how are some of the leading manufacturers in the industry implementing digital platforms into operations? 28

PEPSICO In 2019, PepsiCo announced the launch of PepsiCo Foodservice Digital Lab, a first-of-its-kind suite of capabilities created to connect foodservice operators with the companies, services, insights and solutions best suited for their specific digital and online needs. Digital Lab is the first offering of its kind from a foodservice manufacturer and is powered by extensive proprietary and syndicated research into restaurant and food ordering interactions as part of the consumer digital journey. At the time, Scott Finlow, Chief Marketing Officer of PepsiCo Foodservice, said: â&#x20AC;&#x153;The digital age has disrupted everything - including the way people, order, eat and experience food and beverages.

SEPTEMBER 2020

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

“ The digital age has disrupted everything, including the way people, order, eat and experience food and beverages” — Scott Finlow, Chief Marketing Officer, PepsiCo Foodservice

PepsiCo is helping our customers stay ahead of the curve in regard to understanding the latest technology and consumer trends impacting the foodservice industry. With the customer-focused Digital Lab, we created a one-stop service for operators to access the resources and knowledge needed to drive a better consumer experience and impactful business results in the digital era.”

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

D I G I TA L P L AT F O R M S

W H AT I S I N D U S T RY 4 . 0 ? Industry 4.0, otherwise known as the Fourth Industrial Revolution, focuses on interconnectivity, automation, machine learning and real-time data. Industry 4.0 is sometimes also referred to as IIoT or smart manufacturing, marrying both physical production and operations with smart digital technology, machine learning and Big Data to create a more holistic and better connected ecosystem for companies to focus on manufacturing and supply chain management.

ERICSSON

sought to optimise its manufacturing

Ericsson offers solutions to mod-

processes. By automating and stream-

ernise, digitalise and shape new

lining production and maintenance,

business models for Telco operators

and with immersed data analysis,

worldwide. Its advanced offerings

Ericsson Panda now sees savings

are created to help secure, serve

in both CAPEX and OPEX. In a bid to

and grow businesses and customer

optimise tool maintenance, increase

bases through innovative customer

uptime of critical assets, as well as

engagement platforms, automated

keep track of goods and equipment,

operations and programmable

the factory used narrowband-IoT

networks. Ericsson’s digital port-

(NB-IoT) and LTE-M/Cat-M1 in the

folio includes Automated Network

factory. The factory’s 1,000 high-

Operations, Cloud Communication,

precision screwdrivers are connected,

Cloud Core, Cloud Infrastructure,

with workstations wirelessly com-

Digital BSS and Transform Business.

municating through a smarter Andon

In 2017, Ericsson unveiled the

system, steel pallets are geo-tracked,

world’s first cellular IoT-based Smart

while fire extinguishers are equipped

Factory in China. Combining cellular

with liberation sensors.

IoT and Industry 4.0, the Nanjingbased Ericsson Panda factory SEPTEMBER 2020

Upon its launch, Chris Houghton, Head of Region North East Asia,

Ericsson, commented: “The combina-

service providers (CSPs) new reve-

tion of cellular IoT and Industry 4.0

nue-enhancing opportunities through

has so far been fairly unexplored.

an automated platform that manages

Enabling IoT network technology such

5G slice-based services securely

as Cellular LPWA, together with cloud-

and cost effectively throughout the

based solutions, give manufacturing

entire lifecycle of services. Nokia’s

firms access to more information than

first network slicing management

ever before. The opportunity to use

product provides a secure and fully

data to increase productivity is not

automated process to design, deploy

only beneficial to a firm, but the whole

and operate network slices at scale

of society as well.”

across multi-vendor, multi-domain and multi-technology environments.

NOKIA

Built in a modular form that incorpo-

In June 2020, the telecommunications

rates the Nokia Orchestration Centre

giant Nokia introduced its cloud-native

and Nokia Assurance Center, the

Digital Operations Centre software

Digital Operations Centre provides

solution to provide communication

CSPs with the ability to deliver and

“ The combination of cellular IoT and Industry 4.0 has so far been fairly unexplored”

— Chris Houghton, Head of Region North East Asia, Ericsson ma nufa c t uri nggl o b a l. com

D I G I TA L P L AT F O R M S

THREE SMART MANUFACTURING USE CASES 1. Supply chain management

much more automated and stream-

and optimisation

lined. Systems can sense when

Industry 4.0 solutions provide busi-

problems are arising or machinery

nesses with greater insight, control and

needs to be fixed, and can empower

data visibility across the entire supply

you to solve potential issues before

chain. By leveraging supply chain

they become bigger problems.

management capabilities, organisations can deliver products and services

3. Asset tracking and optimisation

to market faster, cheaper and with bet-

Industry 4.0 solutions help manufac-

ter quality to gain an advantage over

turers become more efficient with

less-efficient competitors.

assets at each stage of the supply chain, allowing them to keep better tabs on

2. Predictive maintenance

inventory, quality, and optimisation

Industry 4.0 solutions give manu-

opportunities relating to logistics.

facturers the ability to predict when

With IoT in place at a factory, employ-

potential problems are going to arise

ees can get better visibility into their

before they actually happen. Without

assets worldwide. Standard asset

IoT systems in place at your factory,

management tasks such as asset trans-

preventive maintenance happens

fers, disposals, reclassifications, and

based on routine or time. In other

adjustments can be streamlined and

words, itâ&#x20AC;&#x2122;s a manual task. Through IoT

managed centrally and in real time.

systems, preventive maintenance is

SEPTEMBER 2020

What is Smart Manufacturing? CLICK TO WATCH

8:19

35 oversee network slices at scale and

predictive maintenance and remote

accelerate through closed-loop auto-

operations. Through Nokia Digital

mation and helping CSP’s adhere to

Automation Cloud, it’s simple to deploy

Service Level Agreements as they

an industrial-grade private wireless

expand into vertical industries.

network that provides:

Nokia has also scaled its digital platforms through its Nokia Digital Automation Cloud, a high-performance, end-to-end private wireless networking

• Simple plug-and-play connectivity for all your assets. • Full control over the creation and management of multi-local networks.

and edge computing platform. Provided

• Low latency and strong security.

as a service, it allows for a combina-

• High reliability with proven 4G/5G

tion of plug-and-play connectivity

radio technology.

with on-premises data management

• Wide and deep coverage.

and processing to support real-time

• Dependable QoS management.

applications for smart manufacturing,

• Easy scalability, up and down. ma nufa c t uri nggl o b a l. com

D I G I TA L P L AT F O R M S

space to transform the world designs

In 2019, HP unveiled a 3D Printing

and manufactures.

and Digital Manufacturing Centre of

At the time, Christoph Schell,

Excellence in Barcelona, Spain. Upon its

President of 3D Printing and Digital

completion, it became one of the world’s

Manufacturing at HP Inc, commented:

largest and most advanced research

“HP’s new 3D Printing and Digital

and development facilities for the next-

Manufacturing Center of Excellence is

generation technologies powering the

one of the largest and most advanced

Fourth Industrial Revolution. The Centre

3D printing and digital manufacturing

brings hundreds of the world’s leading

research and development centers

additive manufacturing experts in over

on earth – it truly embodies our mis-

150,000 sq.ft of cutting-edge innovation

sion to transform the world’s biggest

SEPTEMBER 2020

“ We’re on the cusp of the 4th Industrial Revolution, where physical and digital technologies will radically alter how companies conceive, design, produce, distribute and repair nearly everything” — Paul Benning, HP Senior Fellow & Chief Technologist, 3D Printing & Digital Manufacturing, HP Inc

industries through sustainable tech-

industry and stresses it’s important to

nological innovation. We are bringing

adapt and be agile.“We’re on the cusp

HP’s substantial resources and peer-

of the 4th Industrial Revolution, where

less industrial 3D printing expertise

physical and digital technologies will

together with our customers, partners,

radically alter how companies conceive,

and community to drive the technolo-

design, produce, distribute and repair

gies and skills that will further unleash

nearly everything. This paradigm shift

the benefits of digital manufacturing.”

is expected to completely disrupt the

Paul Benning, HP Senior Fellow & Chief

global manufacturing industry by

Technologist, 3D Printing & Digital

digitizing entire supply chains and

Manufacturing, HP Inc, is well aware

production processes.”

of the transformational state of the ma nufa c t uri nggl o b a l. com

SMART MANUFACTURING

Stora Enso: digital disruption in manufacturing WRITTEN BY

SEAN GALEA-PACE 38

SEPTEMBER 2020

ma nuf a c t uri nggl o b a l. com

SMART MANUFACTURING

Marko Yli-Pietilä, Head of Smart Operations at Stora Enso, discusses the influence of digital in his organisation’s production, maintenance and safety

S 40

tora Enso is a leading provider of renewable solutions in packaging, biomaterials, wooden constructions and paper on

global markets. With an aim to replace fossil based materials by innovating and developing new products and services based on wood and other renewable materials, Stora Enso’s products provide a climate-friendly alternative to many products made from non-renewable materials, and have a smaller carbon footprint. Marko Yli-Pietilä is Head of Smart Operations at Stora Enso and has been with the organisation since November 2017. He believes that although digitalisation has been present in the industry for a while, Stora Enso’s digital drive has recently been ramped up. “Digitalisation has been present for a considerable amount of time in the industry because in the process industry you need data to maintain a stable production of your products,” explains Yli-Pietilä. “We’ve collected data for SEPTEMBER 2020

ma nuf a c t uri nggl o b a l. com

SMART MANUFACTURING

a long time and used it for process optimisation however, there has been an even greater focus on digitalisa-

“ Over the next few years, we want all of our reactive work to be proactive”

tion over the past few years. As an example, we have implemented a group fund of €10mn annually to support digital innovation and have really outlined our intention to welcome new technologies. Moreover, we have a centralised digitalisation team to support the businesses in all of

— Marko Yli-Pietilä, Head of Smart Operations, Stora Enso

their digitalisation efforts.” Stora Enso understood early on that the digitalisation of its mill operations would help with efficient production and resource use, in addition to increased safety and higher quality, as

SEPTEMBER 2020

well as product and service innovation.

through traditional methodologies

Yli-Pietilä believes in a proactive

or we see that digitalisation provides

approach and outlines several key

the best option to improve things.”

areas his organisation is focusing

With COVID-19 disrupting industries

on at the moment. “The focus is on

across the world, Yli-Pietilä outlines

operational efficiency and safety,”

the impact the pandemic has had on

he explains. “We focus on product

Stora Enso, however stresses that his

quality, equipment availability, per-

organisation was fortunate to already

formance and safety and they are

have the digital infrastructure in place.

our key areas in terms of digitalisa-

“It’s had an impact on our interaction

tion. We identify problems in our

with external partners in the sense

operations that can’t be solved

that we’re now very careful with letting 43

E X E C U T I V E P R O FILE :

Marko Yli-Pietilä Title: Head of Smart Operations

Company: Stora Enso

Industry: Paper & Forest Products

Location: Finland

Marko Yli-Pietilä is an experienced Digital Transformation professional. Today, he is Head of Smart Operations in Stora Enso, which means digitalising operations to improve operational efficiency. Prior to joining Stora Enso, Marko has held international positions for example in Nokia and Teradata, which are leaders in their respective industries of Telecommunications and Advanced Analytics. He has also worked with renewable materials companies and their digitalisation related development programs for years as a Consultant. Marko holds a Licentiate of Technology post-graduate degree and he is also a certified vocational teacher. ma nuf a c t uri nggl o b a l. com

SMART MANUFACTURING

Intelligent Pulp Solution by Stora Enso CLICK TO WATCH

2:50

44 external people into the mills,” says Yli-

and commissioning new production

Pietilä. “However, our core operations

lines and supporting us remotely. We

have remained largely unchanged.

harness different virtual collaboration

We already had the core infrastruc-

tools so that people at the mill could

ture and capabilities to do work while

show what they’re doing and this vir-

mobile and have, for example, used

tual online collaboration has been key.

mobile maintenance for a considerable

These tools have been influential in

length of time already.” Yli-Pietilä adds

helping us during the pandemic.”

that Stora Enso has even introduced

Establishing partnerships with sup-

a new production line remotely during

pliers is important to Yli-Pietilä and he

COVID-19. “It was a great achievement

explains that each organisation Stora

for us because no one thought it could

Enso partners with has the opportunity

be done,” he explains. “This means

to be successful and long-term. “In

our equipment vendor is on the other

digitalisation, we have an ecosystem

side of the world helping us locally

approach. We give small and medium

SEPTEMBER 2020

sized companies a chance to be successful with us and have worked with a number of startups, as well as working with very large companies,” he explains. “I believe that building mutually beneficial relationships leads to success. In addition you have to have the structures in place. For example, we have implemented a cloud environment and data lake where data from both our own applications and vendor applications can be kept together in one place.” With the future in mind, Yli-Pietilä has a clear plan of what the next few

“ We have implemented a group fund of €10mn annually to support digital innovation and have really outlined our intention to welcome new technologies” — Marko Yli-Pietilä, Head of Smart Operations, Stora Enso

years at Stora Enso and the wider manufacturing industry could hold. “We’ve defined a vision of what a digital mill will look like in 2030 in Stora Enso,” says Yli-Pietilä. “We expect the automation level to increase, with an increasing amount of centralised operations at the mills in addition to remote operations.” There will be a greater interest in virtual reality and I expect more real-time visibility into what is happening at the manufacturing sites. We will also see more autonomous vehicles present at our mills,” he says. ma nuf a c t uri nggl o b a l. com

SMART MANUFACTURING

“ We give small and medium sized companies a chance to be successful with us and have worked with a number of startups, as well as working with very large companies”

— Marko Yli-Pietilä, Head of Smart Operations, Stora Enso

SEPTEMBER 2020

“Robots will become more prominent and there are already a number of industrial robots in place, but we will see more dynamic robots that will perform multiple tasks such as carry and transport products around the mill. We’re already currently using autonomous drones to do area surveillance in some of our mills so this will definitely increase in the future. Over the next few years, we want all of our reactive work to be proactive. For example all maintenance will be planned based on prediction. We’re also building prescriptive capabilities which will mean that away from predicting what will happen we can tell experts what to do in order to optimise their work. Over the next few years, we want all of our reactive work to be proactive.”

ma nuf a c t uri nggl o b a l. com

AI & AUTOMATION

SEPTEMBER 2020

The rise of robots in manufacturing WRITTEN BY

SEAN GALEA-PACE

ma nuf a c t uri nggl o b a l. com

AI & AUTOMATION

Chris Quick, Founder and CEO of RealBotics, discusses how influential robotics is to the manufacturing space and the impact of COVID-19 in the industry

ith the manufacturing industry undergoing significant transformation over the past few years amidst Industry 4.0, the

number of firms introducing robots into operations is on the rise. 50

Chris Quick is the Founder and CEO of RealBotics and has been with the organisation since beginning the venture in 2015. “I decided when I was fairly young that I wanted to start a robotics company because it was a field that brought together a number of things I enjoy,” he explains. “Later, I attended engineering school and just kept taking classes until I felt like I had everything I needed to design and build robotics projects. After college I spent around seven years working for Alcoa as their automation engineer where I really learned first-hand the shortcomings and market needs for robotics and automation technology. Finally, I left Alcoa and founded RealBotics to improve robotics and automation to better address the market’s needs.”

SEPTEMBER 2020

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“ We like to think we are working to create a new trend instead of responding to one” — Chris Quick, Founder and CEO, RealBotics

camera feeds, augmented reality, and computer vision/image processing. Quick explains how his organisation’s

RealBotics builds devices, software

solution works. “A client brings a robot

applications, and complete remote

or piece of equipment to RealBotics

control/tele-operated systems to

with a need to remotely interact with

meet your specific commercial needs.

it. RealBotics will provide the tech-

The RealBotics platform has been

nology and any required engineering

designed from the ground up to work

to attach the device to the platform,”

with any type of hardware, robot brand,

says Quick. “From there, the client

or equipment. The platform offers

uses the RealBotics platform custom-

a set of tools and options that can be

ized to their specific needs to achieve

selected for each specific use case.

their remote-control goals. We charge

Tools and options include live low-

time and materials for engineer-

latency video, stereo video, multiple

ing works and a customized fee for access to the RealBotics platform.” Quick has observed first-hand an increase in the adoption of robotics automation for small and midsized manufacturers. “We’ve witnessed massive improvements in machine learning and artificial intelligence tools to solve challenging problems that were not feasible several years ago,” explains Quick. “There have ma nuf a c t uri nggl o b a l. com

AI & AUTOMATION

RealBotics Explainer Video CLICK TO WATCH

1:15

54 been many improvements to robotic

innovation to manufacturers such as

guidance and motion control, image

RealBotics. “With the pace of innova-

classification and processing, and

tion and technology development

voice processing.” With the impor-

today, being proactive and agile is

tance of operating with a proactive

the difference between success and

and agile approach in the market vital,

failure,” he affirms. “We like to think we

Quick stresses the importance of

are working to create

“ With the pace of innovation and technology development today, being proactive and agile is the difference between success and failure” — Chris Quick, Founder and CEO, RealBotics SEPTEMBER 2020

a new trend instead of responding to one.” With the COVID-19 pandemic having a significant impact on industries across the world, Quick notes just how vital remote technology has been to overcoming the disruption. “It’s minimised the time and effort RealBotics

needs to spend explaining the idea

manufacturing industry, our clients

and use cases. It allows us to focus

need to continue production while

on development of the technology

keeping workers safe. In simple

and its application to solve cus-

situations, this entails social distanc-

tomer challenges. Specifically, in the

ing, and additional PPE but in many

E X E C U T I V E P R O FILE :

Chris Quick Title: Founder and CEO

Company: RealBotics, Inc.

Industry: Industrial Automation

Location: USA

Chris Quick is the founder and CEO of RealBotics, Inc and an Adjunct Mechatronics Professor at the Community College of Allegheny County. His industrial automation experience includes various robotic installs in heavy forge and stamping applications, the implementation of automated guided vehicles (AGVs) on the factory floor, the use of collaborative robots in industrial settings, and various research projects utilizing machine vision. Chris also has experience with the integration of mechanical, electrical, and software into the design and development of mobile device platforms, such as drones, cellular-based systems (3, 4, & 5G), and mobile robotics. Chris is a subject-matter expert in robotics and industrial automation for the American Society of Mechanical Engineers, and an advisory board member for Brandeis Universityâ&#x20AC;&#x2122;s Robotics Software Graduate Professional Studies Program. Chris attended Rose-Hulman Institute of Technology where he received his BS in Mechanical Engineering, with minors in Electrical Engineering, Computer Science, Robotics, and Computer Vision, and an MS in Engineering Management. ma nuf a c t uri nggl o b a l. com

AI & AUTOMATION

“ We’ve witnessed massive improvements in machine learning and artificial intelligence tools to solve challenging problems that were not feasible several years ago” — Chris Quick, Founder and CEO, RealBotics

situations factory floor layouts and

expertise needed to support these

equipment have not been designed

efforts. RealBotics has been able to

to meet these requirements. Using a

provide industrial automation design,

technology like RealBotics, can help in

engineering, troubleshooting, and

many of these situations.”

install expertise virtually for our cli-

However, Quick acknowledges the

ents during the COVID-19 pandemic,”

pandemic has been challenging for

he explains. “The pandemic also

his firm. “One challenge in this case

caused RealBotics to lose business

is getting the outside automation

from clients that have been forced

SEPTEMBER 2020

share the details yet but keep an eye out for a great example of the power of RealBotics in this new market toward the end of the year.” Looking to the future, Quick hopes to continue to leverage robotics to improve efficiency in everyday life. “ My hope is that as a civilization we continue to apply robotics and technology in a way that improves our health, relationships, and overall quality of life. For me, that means creating robotics technology that optimises our time so we can do the things we enjoy and that improves our overall output and capabilities,” explains Quick. “We hope to bring our technology to market and demonstrate its power in a few different verticals. Over the next year, we hope to demonstrate how RealBotics to put projects on-hold. We’ve dealt

can assist humans in dealing

with these surprise interruptions by

with challenges like COVID-19 by

quickly identifying the new challenges

providing a powerful and generic

and gaps created by the pandemic

telerobotics platform.”

and adapting our technology to provide solutions. One example of the success of our changes is the signing of a new client in a completely new vertical for us, media creation. I can’t ma nuf a c t uri nggl o b a l. com

TECHNOLOGY

The transformation of 5G in manufacturing WRITTEN BY

SEAN GALEA-PACE

SEPTEMBER 2020

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

TECHNOLOGY

Manufacturing Global examines the transformative impact of 5G technology on the manufacturing industry THE MANUFACTURING SECTOR IS IN THE MIDST OF TRANSFORMATION With the fourth industrial revolution underway, the introduction of 5G has only accelerated the development of the factory of the future. In these futuristic factories, connected devices can sense their environments and interoperate with each 60

other, allowing for decentralised decisions to be made. Many anticipate this transformation to rely on the underlying capabilities of nextgeneration 5G networks. The need for agile, fluid infrastructure is a consistent theme in Industry 4.0 discussions as the devices in tomorrowâ&#x20AC;&#x2122;s factories grow and become more sophisticated, manufacturers understand that they must be able to adapt the networks that connect them quickly, reconfiguring them at will. The smart factories of tomorrow are likely to be filled with sensors, each monitoring different aspects of the working environment. This will include connected tools, using information ranging from location to accelerometer data to understand where and how they are being used,

SEPTEMBER 2020

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

TECHNOLOGY

“ 5G and the Fourth Industrial Revolution holds the potential to revolutionise the manufacturing process” — Stephen Cooper, Head of Industrial Manufacturing, KPMG UK

digitisation – both within factories’ four walls and beyond through all steps along the value chain. According to research from KPMG, the manufacturing industry will be the first to significantly unlock the value of 5G, amounting to around 5% of a typical manufacturer’s annual revenue. With manufacturing consisting of 11% of the UK’s Gross Value Added

to guide workers accordingly. 5G’s

(GVA), this could be significant, not

high capacity, wireless flexibility and

just for individual businesses but for

low-latency performance make it a natu-

the national economy in total.

ral choice to support manufacturers in these environments.

As a result of 5G, KPMG anticipates that there will be a more dynamic,

With data speeds anticipated to

self-regulating and self-adjusting

be 25 times faster than today’s 4G

process that will translate into agility,

networks and lag reduced to virtually

speed and higher productivity. Smart

zero, 5G offers unending opportunities to strengthen connectivity and

SEPTEMBER 2020

Shaping the Future of Industry 4.0 with 5G Manufacturing: IoT and Edge Computing CLICK TO WATCH

1:03

63 sensors, enabled by 5G, will further

In KPMG’s article ‘The march of

accelerate automated processes,

the makers accelerated through 5G’,

and allow machines to update them-

Stephen Cooper, Head of Industrial

selves and initiate a new process when

Manufacturing at KPMG UK, com-

there is demand. These smart sensors

ments: “5G and the Fourth Industrial

will be able to assess the quality of

Revolution hold the potential to

components that are being manufac-

revolutionise the manufacturing

tured in real time, reducing re-working

process. Our conversations with

requirements. Through a combination

clients highlight the need for C-suite

of AI-based planning, edge comput-

manufacturers to take an informed,

ing, high bandwidth with low latency,

strategic approach, mapping out a

connected machines, AR-enabled

clear journey towards transforma-

workers and integrated logistics, 5G

tion that will make the most of these

has the potential to transform the way

innovative technologies and drive

manufacturers work.

lasting performance improvement.” ma nufa c t uri nggl o b a l. com

TECHNOLOGY

MCKINSEY

Five ways 5G can revolutionise manufacturing 1. Cloud control of machines â&#x20AC;&#x201C; For decades, factory automation has required programmable logic controllers (PLCs) that were physically installed on the machines they controlled and hard-wired into computer networks to ensure precise, reliable control under extreme conditions. If 5G consistently meets its performance promises, the PLC could be

SEPTEMBER 2020

virtualised in the cloud, enabling machines to be controlled wirelessly and in real time at a fraction of the current cost. 2. Augmented reality â&#x20AC;&#x201C; Factory workers are used to performing complex maintenance and control tasks that are often guided by standard operating procedures in paper manuals, videos or even

augmented reality. But instructions streamed over 4G networks can be unreliable due to bandwidth constraints and fail to deliver the required level of quality without stuttering. 5G promises to not only stream high-quality instructions on the shop floor, but also stutterfree augmented reality that can help guide people, step by step, through each individual motion they need to make. 3. Perceptive AI eyes on the factory floor – Cameras are already common in modern factories to monitor processes and security. However, their issue is limited to focused applications and regularly requires workers to monitor video feeds. 5G will allow the streaming of data in real time to the cloud and the use of live video analytics. For example, if a security camera observes a disturbance, it can identify if there is immediate threat or danger and dispatch a drone or alter a worker to investigate.

4. High speed decisioning – The best-run factories rely on vast data pools to make decisions, with inevitable delays as data is collected, cleaned and analysed. 5G accelerates the decision-cycle time and allows large amounts of data to be ingested, processed and actioned in near real time. In several heavy industries, manufacturers have been able to sell excess energy back to the grid when machines aren’t running and prices are favourable. 5. Shop floor IoT – The addition of sensors to multiple machines means factories are creating more data than ever before. Transmission through wired networks is expensive to scale and WiFi networks can quickly get congested. 5G has the ability to support high connection density with tens of thousands of endpoints, thereby truly enabling the use of industrial data at scale.

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

TECHNOLOGY

ERICSSONâ&#x20AC;&#x2122;S SMART FACTORY

factories in Sweden, Estonia and

Industry 4.0 is combining operational,

China are fast-tracking the implemen-

information and communication tech-

tation of a new generation of smart

nologies with cyber-physical systems,

manufacturing. Developing and imple-

enabled by advanced wireless com-

menting the first 5G and Industrial

munication and Industrial Internet of

IoT systems in a real manufacturing

Things (IoT) services. Manufacturing

environment allows this new wave of

companies are counting on 5G to

tech enablers to reach maturity more

deliver ultra low latency, high band-

rapidly, ready to transform the world.

width and reliable communication to

Sweden houses Ericssonâ&#x20AC;&#x2122;s own 5G

realise the smart factory. In a bid to

Factory. The site produces test beds

make this a reality, three Ericsson

for 5G and ships them across the

SEPTEMBER 2020

“Manufacturing companies are counting on 5G to deliver ultra low latency, high bandwidth and reliable communication to realise the smart factory” world, and is the ideal environment

a bid to manage the plethora of data

to trial new 5G and industrial IoT

and information from these connected

innovations in a real production envi-

devices, manufacturing companies

ronment, such as precise localisation

will need 5G’s capacity and speeds.

technology. This uses low-power tags

From procurement to distribution, 5G

to transmit real-time location data

will mean manufacturers can connect

to the cloud and can be placed on

more sensors, devices and assets

anything, allowing decision-makers

through a single network to provide

complete visibility of any object and

better visibility into the supply chain.

machine they want to keep track

5G is set to be the catalyst that will

of. This enables true digital twins for

harness the capabilities of robotics. As

traceability of inventory, decreasing

5G will utilise edge computing capabili-

loss of assets and ultimately scaling

ties, data will be closer to the source.

end-to-end efficiency.

WHAT IS THE FUTURE OF 5G IN MANUFACTURING? According to a recent study by IDC, the manufacturing and transportation industries’ yearly spend on IoT is more than any other industry. However, the manufacturing industry is set to continue to spend more yearly on IoT than any other industry through 2022. In ma nufa c t uri nggl o b a l. com

TECHNOLOGY

KPMG

In KPMG’s report ‘Unlocking the benefits of 5G for enterprise customers’ KPMG professionals assessed the nature of the industries to understand when value might emerge. KPMG determined three time horizons:

1. 0 -3 years – Private or Campus use cases: These use cases are typified by industries where an organisation is centrally located or physically constrained and lends itself well to a private 5G network in a limited geography. These kinds of network deployments will be the first point of call for many operators. 2. 2 -6 years – City use cases: When 5G networks become publicly accessible and introduced within or across cities, a range of industries will be positioned

SEPTEMBER 2020

to create value. Service-related industries requiring broader coverage, such as healthcare, mobility and professional services fall under this time horizon. The live entertainment industry and use cases involving customer’s experiences will be implemented under this timeframe. 3. 5+ years: Beyond the five year timespan, KPMG expects the majority of telcos to have begun broad 5G deployments. While difficult to predict the impact in the future, it is important for MNOs to remain focused on the business challenges faced by their enterprise customers while adapting their business models to take advantage of edge computing advancements and the ultra-fast connectivity harnessed by 5G.

This combined with the high speeds and large bandwidth of 5G will kickstart the creation of smaller, cheaper and untethered robots. With auto manufacturing already leveraging co-bots to complete dangerous tasks, 5G will help these robots become more agile and make faster decisions and quickly adjust to changes in near real time. 5G represents a massive step change in mobile technology and is considered

to have the most fertile environment

a game changer for the manufacturing

in place. 5G promises a brighter, more

industry. From business output to a

productive future for British manufac-

more dynamic workforce, 5G has the

turing on the world stage and it will be

power to completely transform the

exciting to see this take another step

industry. Although for manufacturing,

closer in 2020.

the national roll-out of 5G networks

The 5G smart factory of the future

could be a few years away, prepara-

will be focused on creating a fully con-

tion needs to begin now if we are able

nected experience. From massive

â&#x20AC;&#x153; 5G represents a massive step change in mobile technology and is considered a game changer for the manufacturing industryâ&#x20AC;?

device connectivity and innovative technology experiences, to near realtime automation and network flexibility, 5G will help bring major advancements to the smart factory. Manufacturing companies could ultimately realise major benefits such as performance improvements, operational efficiencies and increased safety.

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

T O P 10

SEPTEMBER 2020

Supply Chains Manufacturing Global examines 10 of the world’s leading supply chains, according to Gartner’s rankings from its annual Supply Chain Top 25 WRITTEN BY

SEAN GALEA-PACE

Mike Griswold, vice president ana-

and respond to changes in the busi-

lyst with the Gartner Supply Chain

ness context as they happen. Our

practice, said: “In our 16th edition of

ranking highlights companies that

the Supply Chain Top 25 we have an

possess these strategies and other

impressive group of leaders with new

differentiating capabilities.”

lessons to share, including a diverse set of six new entrants. With substan-

Gartner’s Top 10 is decided based

tial amounts of the economy closed

on scores of Peer Opinion, Gartner

due the COVID-19 pandemic, leaders

Opinion, Three-Year Weighted

need an agile strategy that allows the

Revenue Growth, ESG Component

supply chain organization to sense

Score and Composite Score.

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

T O P 10

L’Oreal

US $34.8bn

L’Oreal is a world leader in beauty and is present in 150 countries across five continents. L’Oreal offers 34 international brands, including Kiehl’s, Lancôme, Giorgio Armani Beauty, Yves Saint Laurent Beauté, Ralph Lauren, Clarisonic, Maybelline New York, Essie, Kérastase, Biotherm, Shu Uemura, Viktor&Rolf, Maison Martin Margiela, Urban Decay, Redken, Vichy, La Roche-Posay, Diesel, Garnier, L’Oréal Paris, and more. Its Supply Chain Network is a major factor in its success. With over 150 distribution centres, it delivers over 7 billion products every year to 500,000 delivery points globally. 72

HQ CLICHY, FRANCE

86,000 NUMBER OF EMPLOYEES

SEPTEMBER 2020

MUNICIPALITY OF ARTEIXO, SPAIN

162,450 NUMBER OF EMPLOYEES

Inditex

US $27.1bn

Inditex is one of the worldâ&#x20AC;&#x2122;s largest fashion retailers, operating eight brands (Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterque), selling in 202 markets through its online platform or its 7,000 stores in 96 markets. Inditex strives for a supply chain that is stable, sustainable, close, highly specialised, agile and flexible and is one of the keys of Inditexâ&#x20AC;&#x2122;s business model and one of its most competitive advantages.

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sustain peak performance.

Benchmark your actual process and asset performance data against your expected performance with Honeywell Forge for Industrial, for better decisions that impact reliability, safety and profitability. For more information, please visit: www.honeywellprocess.com/iiot

CALIFORNIA, UNITED STATES

110,200 NUMBER OF EMPLOYEES

Intel

US $71.9bn

Intel is a technology leader striving to create world-changing technology that transforms and enriches the lives of every person on earth. Its supply chain consists of over 10,000 tier 1 suppliers in 89 different countries. Intel holds its suppliers to high standards of operation in order to generate a positive impact on the world while creating better technology. The organisation is transforming its legacy supply chain into a modern “glass pipeline” that improves its decision-making capabilities and business agility, made possible because of its new integrated data platform (IDP). In a company press release, it said: “Our IDP integrates the SAP HANA in-memory database with Cloudera Distribution of Hadoop, running on multiprocessor serves, which are currently based on the Intel Xeon processor E7 family.”

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

T O P 10

HANGZHOU, CHINA

117,600 NUMBER OF EMPLOYEES

Alibaba

US $72.6bn

Alibaba enables businesses to transform the way they market, sell and operate and improve their efficiencies. The organisation provides the technology infrastructure and marketing reach to help merchants, brands and other businesses to leverage the power of new technology to engage with their users and customers and operate in a more efficient way. Alibabaâ&#x20AC;&#x2122;s businesses consist of core commerce, cloud computing, digital media and entertainment, innovation initiatives and others.

SEPTEMBER 2020

PepsiCo US $67bn

PepsiCo is one of the leading food and beverage companies worldwide. As a result, there are many factors to be considered in the production planning, distribution planning and execution process. Postmanufacturing, PepsiCo’s products are delivered in bulk. To manage that, PepsiCo’s supply chain management and product flow has three main components; direct to store delivery model, and the idea of collaboration and integration. PepsiCo’s products are dependent on raw agricultural materials to meet its demands and consumer’s expectations in which they are inexpensive and of premium quality. With new opportunities always rising, PepsiCo must stay on top of greenhouse gas management and worldwide food supplies. This includes an international supply chain consisting of independent farmers, intermediaries and also farms which are company owned.

NEW YORK, UNITED STATES

263,000 NUMBER OF EMPLOYEES

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VEVEY, SWITZERLAND

327,500 NUMBER OF EMPLOYEES

Nestlé

US $99bn

Supply chain professionals at Nestlé play a critical role in ensuring quality products reach our customers and consumers. To achieve this, Nestlé collaborates with the commercial teams to develop the demand forecast, and with its suppliers globally to ensure responsibly sourced materials. In alignment with operations, Nestlé balances inventory levels to establish the right supply of its products. Once produced, Nestlé’s supply chain is responsible for safely storing and transporting its products to meet its customers and consumers needs in-full and on-time.

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

T O P 10

RUEIL-MALMAISON, FRANCE

135,000 NUMBER OF EMPLOYEES

Schneider Electric US $31.7bn

Schneider Electric places its customers at the heart of its sustainable development vision with suppliers. Schneider Electricâ&#x20AC;&#x2122;s tailored supply chain is mindful of the diverse practices, standards, and values in over 100 countries in which they are present. Schneider Electric works with sectors that account for the majority of global energy consumption and its corresponding CO2. As a result, Schneider Electric is especially committed to ensuring its own products and solutions help reduce both energy use and CO2 emissions - from design, manufacturing, shipping and deployment to productsâ&#x20AC;&#x2122; end-of-life.

SEPTEMBER 2020

Johnson & Johnson US $82bn

Johnson & Johnson is a leading healthcare company committed to using its reach and size for good. Johnson & Johnson affirms its suppliers help the organisation to fulfil its mission. On its website, it says: â&#x20AC;&#x153;The success of our business depends on our ability to collaborate with suppliers that not only provide the highest quality products and services, but are philosophically and strategically aligned with our commitment to our social and environmental responsibilities.â&#x20AC;? Founded in 1887, Johnson & Johnson employs 134,000 people worldwide and is present in 60 different countries. 81

NEW JERSEY, UNITED STATES

132,200 NUMBER OF EMPLOYEES

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T O P 10

Colgate-Palmolive US$15.5bn (2018)

Colgate is a global leader in consumer goods. With source, make and deliver reporting throughout the same organisation, Colgate 84

actively focuses on the building of supply chain talent. The company has a strong financial supply chain presence and drove 42 consecutive quarters of operating margin improvement. Colgate is focused on Oral Care, Personal Care, Home Care and Pet Nutrition and on reaching over 200 countries and territories worldwide.

NEW YORK, UNITED STATES

34,500 NUMBER OF EMPLOYEES

SEPTEMBER 2020

Global Goals in Action: Ann Tracy, VP of Global Sustainability & Environment, Colgate-Palmolive CLICK TO WATCH

1;56

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

T O P 10

How Cisco sees blockchain transforming the supply chain CLICK TO WATCH

SEPTEMBER 2020

3:55

Cisco Systems US $52bn

Topping the list is Cisco Systems. Ciscoâ&#x20AC;&#x2122;s sourcing and manufacturing operations are entirely outsourced to a global network

CALIFORNIA, UNITED STATES

76,000 NUMBER OF EMPLOYEES

of hundreds of suppliers and partners. Its sustainability requirements are embedded in its supply chain business processes to help ensure continuous improvement and drive impactful change. Since its founding in 1984, Cisco has been a leader in the development of IP-based networking technologies. With over 71,000 employees worldwide, Cisco provides a broad range of service offerings, including technical support and advanced services.

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

Driving value-added technology in manufacturing WRITTEN BY

GEORGIA WILSON PRODUCED BY

CAITLYN COLE

SEPTEMBER 2020

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TWINTHREAD

Erik Udstuen, CEO at TwinThread discusses digital innovation, realizing value and the current technology trends in the manufacturing industry

orking in the industrial automation and manufacturing space for 25 years, Erik Udstuen began his career as a chemi-

cal and process engineer working in the pulp and paper industry, before forming his own company in the early nineties providing customers with manufacturing optimization solutions for multiple 90

sectors. After selling the company to General Electric (GE) in 2003, Udstuen joined the firm in 2007 as a Senior Executive driving digital transformation across multiple business units. â&#x20AC;&#x153;I left GE in 2012 and went back into the startup world and formed a couple of other companies, the latest company is TwinThread,â&#x20AC;? comments Udstuen, who believes that a significant differentiator between TwinThread and other organizations is its results guaranteed position. â&#x20AC;&#x153;The idea of TwinThread is to provide similar capabilities and concepts that monitor and optimize a fleet of power plants or gas turbines to other industries like manufacturing, consumer products, food and beverage, and automotive. The enabler for this is the fact that we have these pre-built applications that someone can just take, apply and SEPTEMBER 2020

ma nuf a c t uri nggl o b a l. com

TWINTHREAD

With this in mind, when it comes to digital innovation, TwinThread’s vision is “to be able to optimize on a global basis and drive 1 or 2% more efficiency out of manufacturing operations or a network of assets,” adds Udstuen. In order to achieve this he further explains that “the enabler is algorithms and the power of technology such as machine learning to make that practigain valuable insights without having

cal. We have a customer, for example,

to go through a long deployment.

that is monitoring 450 data centers

“We embrace the opportunity to 92

across the world and they’re doing that

deploy pilot projects that deliver proof

with just a few people. The only way

of value for outcomes and that as well

that becomes practical and economi-

is very unique. In doing so, we want to

cally feasible is if you apply algorithms

roadmap and fund future opportunities

and machine learning technologies.

for our customers.”

With these capabilities, organizations

“It may be a bit of a cliche, but really the executive buy-in sponsorship commitment to any kind of digital transformation effort is essential” — Erik Udstuen, CEO, TwinThread

SEPTEMBER 2020

can drive innovative opportunities to

terms of the culture and mindset

drive efficiency.”

in this new digital age, and with the

When it comes to deploying a digi-

incorporation of machine learning

tal strategy, Udstuen highlights the

and artificial intelligence technolo-

importance of having the right culture

gies, leaders have to think in terms of

and mindset. “It’s critical. It may be a

their change management strategy

bit of a cliche, but really the execu-

- how do you bring together the roles

tive buy-in sponsorship commitment

of the IT teams, the data scientists

to any kind of digital transformation

and the engineer to understand the

effort is essential. But maybe what

data and solve business problems

potentially is less obvious is that in

using digital technology.” ma nuf a c t uri nggl o b a l. com

TWINTHREAD

“ With the advancement of innovative technology such as machine learning, cloud computing, artificial intelligence (AI) and 5G, the concept of connected environments are becoming more and more feasible and in real-time” — Erik Udstuen, CEO, TwinThread

TwinThread - Digital Innovation CLICK TO WATCH

SEPTEMBER 2020

1:53

ma nuf a c t uri nggl o b a l. com

TWINTHREAD

Within the industry, Udstuen

implementing artificial intelligence

explains that when it comes to the

and machine learning based tech-

importance of technology, ‘we’re

nologies. But, only 16% actually have

obviously very biased given that we’re

a program that’s deploying that

a technology company, focused on

technology. So there’s a huge gap

applying machine learning and artificial

between the desire and the people

intelligence technologies. However,

that are actually implementing.

in a recent Harvard business review

The trends in terms of the applica-

article, it was suggested that 84%

tion of that technology are clear,

of leaders believe they should be

but the trends of how to actually

SEPTEMBER 2020

get moving and start deploying that

began investing in sensor technology,

technology, those trends are only just

the technology to record the data

emerging.” Udstuen also highlights

from the sensors and the technology

that within that article, it was refer-

to store the data for long periods of

enced that successful companies

time. In the mid two thousands this

that are applying this technology are

expanded into most industries which

doing two key things. “One is the use

means that there are billions of sen-

of cross functional teams, and the

sors that have been deployed and

other is making the commitment and

are collecting data.

adopting technology in production as a first step.” Other trends within the industry

Today, the concept of connected factories and fleets is to mine new insights from not only the informa-

seen by Udstuen include the concepts

tion that’s already been collected,

of connected factories, connected

but also new data being created.

fleets and predictive maintenance.

With the advancement of innovative

“Starting with manufacturing there

technology such as machine learning,

are multiple innovations and layers

cloud computing, artificial intelligence

to the technology, some are new and

(AI) and 5G, the concept of connected

some have been around for a while.

environments are becoming more

In the mid nineties, organizations

and more feasible and in real-time.”

“ There’s a lot of value in looking backwards and understanding what went wrong and what went right, but it is a whole new level of value to be able to look forward and anticipate problems” — Erik Udstuen, CEO, TwinThread ma nuf a c t uri nggl o b a l. com

TWINTHREAD

98 E X E C U T I V E P R O FILE :

Erik Udstuen Title: CEO

Company: TwinThread

Industry: Internet

Location: Charlottesville, Virginia

Erikâ&#x20AC;&#x2122;s in-the-field industrial experience working as a chemical and process engineer, paired with his proven acumen for co-founding successful tech. start-ups is what fuels his passion for developing and driving innovative, game-changing solutions specifically tailored for manufacturing organizations committed to ever-improving efficiency and performance. His 25 years in the manufacturing sector have equipped him with the background necessary to know exactly what it is engineers, operators, problem-solvers and domain experts need. They need a predictive platform that will cater insights to their understanding, so they may be unleashed to expand their reach and effect greater operational change. SEPTEMBER 2020

TwinThread - Trends in the Industry CLICK TO WATCH

2:55

99 Another part of TwinThead’s vision

the problems might be, and to be able

is that “a modern operating strategy

to act before those problems manifest

should be one where a company can

themselves. There’s a lot of value in look-

optimize their entire enterprise of assets

ing backwards and understanding what

efficiently. It’s no longer about optimizing

went wrong and what went right, but it is

a single plant or a single line. It’s about

a whole new level of value to be able to

how to optimize the performance of all of your assets and do that efficiently. This is where predictive maintenance comes in. It’s one thing to be able to look backwards and say, these were the problems that I had and this is how I applied these resources enabling me to solve the problem. It’s another to be able to look forward and to anticipate where

2018

Year founded

30+

Number of employees ma nuf a c t uri nggl o b a l. com

TWINTHREAD

“ A modern operating strategy should be one where a company can optimize their entire enterprise of assets efficiently, it’s no longer about optimizing a single plant or a single line” 100

— Erik Udstuen, CEO, TwinThread

TwinThread - Future Innovations CLICK TO WATCH

SEPTEMBER 2020

4:09

101

look forward and anticipate problems

blocks, and actually create applica-

and to have strategies in place, to deal

tions out of them so that customers

with problems in real-time in a proactive

can just deploy the application that

and predictive way,” comments Udstuen.

solves the problem without having to

Reflecting on the future, Udstuen

conduct the development work based

believes that from a TwinThread per-

on a tool set. This helps to eliminate

spective what the company is trying to

the development time so that custom-

continuously achieve, “is that with any

ers can get straight to deploying and

adoption of technology, an organiza-

straight to getting value.”

tion requires a tool set to do their own development work, in order to turn the technology into an actual application that delivers value. So what we’re trying to drive is the ability to take those building ma nuf a c t uri nggl o b a l. com

102

SEPTEMBER 2020

MITIGATING COVID-19 DISRUPTION IN MANUFACTURING WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

GLEN WHITE

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103

L&T TECHNOLOGY SERVICES

Prabhakar Shetty, Global Head of Manufacturing Services at L&T Technology Services, discusses his organization’s digital transformation in manufacturing against the backdrop of COVID-19 L&T Technology Services (LTTS) is a global leader in Engineering and R&D services. With 525 patents filed for 53 of the Global Top 100 ER&D spenders, LTTS revolves around engineering. Prabhakar Shetty is the Global Head of Manufacturing Services at LTTS. Having joined 104

the organisation in 2017, Prabhakar oversees the digital led initiatives across verticals including Industry 4.0, smart cities and digital manufacturing, managing PLM, manufacturing operations, asset management, content management and engineering managed services. With more than 30 years of international experience across industry verticals, Shetty has been one of the key industry leaders who has played an active role in the rise of digitalisation in manufacturing. “If you look two decades back, most of the industries were looking at process improvements with the whole idea centered around globalisation and ensuring that processes were as efficient and as lean as possible,” says Shetty. “The ensuing ERP phase saw the collaboration of customer

SEPTEMBER 2020

105

ma nuf a c t uri nggl o b a l. com

Listen to the Podcast here

L&T TECHNOLOGY SERVICES

“I believe a massive technological shift is underway”

108

the volume of business grew and it became much more global, it gave birth to niche interventions around functions like sourcing, supply chain,

— Prabhakar Shetty, Global Head of Manufacturing Services, LTTS

CRM, planning etc. Companies like

management, human resource,

highly complex and intelligent products

business intelligence, financial man-

and systems that can talk to each other

agement, inventory and supply chain

while generating huge amounts of data.

capabilities into one system. This

I believe a massive technological shift

helped to bring together customer

is underway. But the question revolves

management, human resources,

around how to harness the data com-

business intelligence, financial man-

ing out of the shop floor, products and

agement, inventory, and supply chain

various collaborative functions.”

capabilities into one system. When

i2 evolved solutions which clearly defined outcomes of core processes. “In the current environment, we have

The COVID-19 pandemic has caused disruption across industries worldwide. Shetty believes it has highlighted the importance of planning and mitigating against situations that are deemed improbable in the past.

SEPTEMBER 2020

LTTS: Plant Engineering Services CLICK TO WATCH

2:44

109 “Considerations for business

if any of these nodes to go down. You

continuity planning are usually for

also need to have a crisis management

predictable and foreseeable threats

team to act on these and identify the

to normal working” explains Shetty.

risk associated.”

“This could be transportation, sup-

Shetty affirms that it is important

plier disruptions or power issues and

to be agile and proactive in order

these events are easier to anticipate.

to succeed in an environment that

However, COVID-19 has shown how

is continuously changing as a result

important planning is.”

of the pandemic. “Nobody could have

“It’s important to break down your

foreseen this and it meant that any

business into different nodes, for each

reactions were knee-jerk and clearly

of those nodes assess the failure of

caused major disruption across the

the impact from two standpoints:

entire supply chain,” explains Shetty.

the financial and operational. Based

“It’s important to ask yourself: as a

on that you plan for remedial actions

services company how can you help ma nuf a c t uri nggl o b a l. com

L&T TECHNOLOGY SERVICES

110

“ It’s important to ask yourself: how can you help customers at a time like this? There’s no precedent or framework for this type of situation” — Prabhakar Shetty, Global Head of Manufacturing Services, LTTS

across functions like product design,

manufacturing, sales, and service. For example it’s key to have design flexibility because your original product might

customers at a time like this? There’s

not sell and you may have to change

no precedent or framework for this

components or even the whole prod-

type of situation.”

uct. During the pandemic, you’ve seen

“We launched a program called

automotive companies that wouldn’t

F.R.U.G.AL based on flexible, remote

usually offer medical supplies delve

and agile methodologies. Rapid

into that market to produce ventilators,

transformations were expected

for example.

SEPTEMBER 2020

“It’s also important to consider manu-

your workforce to work with alternates.

facturing operation flexibility and how

These are all important considerations.”

you can quickly transition from one prod-

Cloud is also a key area and Shetty

uct to another. How can you repurpose

explains how the coronavirus is forcing

your manufacturing lines? If you have a

manufacturers to rethink their overall

demand spike, how do you look at line

cloud strategy.

expansion? If certain components are

“There are a few elements you need

not available how do you quickly train

to be aware of with cloud because how

E X E C U T I V E P R O FILE :

Prabhakar Shetty 111

Title: Global Head – Digital Manufacuting Services Industry: Information Technology & Services Prabhakar is a seasoned executive with extensive experience in building and nurturing successful consulting and technology businesses. He has over 30 years of international work experience within the manufacturing, retail and CPG space with repeated success guiding multimillion-dollar portfolios with P&L responsibility. In his current role as Global Head Digital Manufacturing Services at Larsen & Toubro Technology Services (LTTS), Prabhakar leads multiple units like PLM, Manufacturing Automation, Asset Management, Engineering Content Management and Managed Services. This group leads all the digital led initiatives across verticals including Ind 4.0, Smart Cities etc. Prabhakar has initiated multiple solution streams to leverage LTTS pedigree in core engineering and align it with new age applications and technologies. ma nuf a c t uri nggl o b a l. com

L&T TECHNOLOGY SERVICES

112

“ Partners should be aligned to the end goal of the value chain to serve customers to meet their business objectives” — Prabhakar Shetty, Global Head of Manufacturing Services, LTTS

you use and consume technology will

You have the foundation processes layer

significantly change. Implementation

that generates data, the technology layer

models will be different because we can’t

where all enterprise applications reside,

afford five-month consulting studies &

the experience layer where the user will

then do a long drawn implementation

be interacting with the system, and then

or rollouts – we need something that’s

cognition. The outcome of analytics is

ready now.

critical. But a wider view across these

“This means that most of the applica-

5 elements is critical.”

tions on the cloud need to be pre-built.

With the importance of developing

We feel that the cloud system architec-

key, strategic partnerships in mind,

ture will be divided into four or five layers.

Shetty highlights that it’s impossible

SEPTEMBER 2020

partners. Today’s customers want one entity who can look after the entire value chain. It can be multiple players who can add to the big picture. But all these partners should be aligned to the end goal of the value chain to serve customers to meet their business objectives.” Looking to the future, Shetty believes that digitalisation will continue to transform the manufacturing industry and play an influential role. “In the last five years, technology has enabled transformation around us. It has become cheaper and customers have become more agile to adopt & leverage the latest tech. Products have become complex because you have different elements in today’s intelligent products. With a complex ecosystem, it’s important you to work in silos and meet changing

have versatile skillsets across the

market demands.

board. LTTS has brought together lots

“When you look at the value chain

of partners to create an ecosystem of

today, what is impacting it the most? It’s

excellence which can help build value-

a rapidly changing business model and

added solutions to end customers to

there are lots of new technologies being

transform their business model.”

introduced and you can’t do everything yourself,” says Shetty. “You need to have various ecosystem partners and traditionally people thought that partners meant only technology ma nuf a c t uri nggl o b a l. com

113

114

SEPTEMBER 2020

115

VOLVO CARS: A NEW APPROACH TO STRATEGIC PARTNERSHIPS WRITTEN BY

GEORGIA WILSON PRODUCED BY

CHARLOTTE CLARKE m a n u f a c t ur in g gl o b a l . c o m

V O LV O C A R S

Michael Perkins, Director of IDP Global Procurement at Volvo Car Group, discusses the evolution of the company’s holistic approach to strategic partnerships

tarting his career in the procurement industry in the early 90s, Michael Perkins has roughly 30 years experience in the sector.

Currently, Perkins is a Director at Volvo Cars in charge of the EMEA region, as well as setting the structure globally for the company’s digital and IT services, 116

marketing and sales, and professional services in procurement. “In 2016, following a 26 year career in procurement I was looking for new opportunities. Whilst looking, I was contacted by a recruiter on behalf of Volvo Cars, who were looking to establish the company in South Carolina. I’d never worked in the automotive industry and saw this as an incredible opportunity - the thought of bringing a Swedish automaker owned by a Chinese holding company to the US intrigued me,” says Perkins. “Volvo Cars is an amazing company,” comments Perkins. “We are a very progressive automotive manufacturer; we are agile, creative and extremely people-driven. We also have the ability to adjust our paths faster than other premium automotive manufacturers due to our size, however we are still big enough that people are taking notice of what we are doing SEPTEMBER 2020

117

m a n u f a c t ur in g gl o b a l . c o m

V O LV O C A R S

“ We are a very progressive automotive manufacturer; we are agile, creative and extremely people-driven” Michael Perkins, Director of IDP Global Procurement, Volvo Car Group

and wanting to be a part of it. Ultimately at Volvo Cars we strive to provide people with the tools to move in a sustainable and responsible way.” Further discussing sustainability, Perkins emphasises that this is something which to this day is at the core of Volvo Cars’ operations dating back to its founders. In order to drive sustainability within its operations, Volvo Cars has set what Perkins believes to be one of the most ambitious climate plans in the automotive industry. “We aim to reduce our CO2 emissions by 25%

118

per car by 2025, with a long-term goal of becoming climate neutral by 2040 across the full value chain.” When it comes to sourcing and procurement trends within the automotive industry, Perkins has seen the expectation of greater margins emerging as a challenge. “With this in mind it is critical for us to create strong partnerships with our suppliers, when we work together it’s not just about cutting costs, it’s also about improving our cross collaboration between internal stakeholders and procurement,” comments Perkins. “It all starts with collaboration. For our sourcing and procurement strategy we need to establish trust between each other SEPTEMBER 2020

Volvo – Recharged CLICK TO WATCH

1:00

119 and determine what is needed, in order

talking about is strategic, not favoured,

to ensure we source the right partners to

sometimes this can get blurred. I am

fulfil the requirements. We also have to

talking about someone that has our

be comfortable with the realisation that

interest in mind, but they will also chal-

we don’t know everything, and look to

lenge us and the status quo. We work

our suppliers to help improve cost opti-

jointly with our partners not only in the

misation and operational efficiency.”

successes but in the failures too,” com-

When searching for a strategic partner,

ments Perkins. When it comes to Volvo

Volvo Cars looks for companies that not

Cars’ approach to partnerships, Perkins

only have a proven track record within

describes it as holistic, “similar to what

the industry, but companies that also

I have previously discussed, when we

align with Volvo Cars’ beliefs and values.

look to source our suppliers we have a

“I think when we are looking for strategic

common target, something which we

partners - firstly they’re critical to our

are looking to achieve. Taking a holistic

success - but let me be clear what I am

approach creates a group of suppliers m a n u f a c t ur in g gl o b a l . c o m

Building

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V O LV O C A R S

122

that we can rely on and innovate with in

on this new approach, Perkins has

the hopes to deliver ‘best-in-class’ plans,

seen Volvo Cars’ landscape supplier

processes and products.”

landscape change. “When we started

With this approach in mind, Volvo

this project we had hundreds and

Cars established a cross functional

hundreds of suppliers covering our

team. “I would say this was the first

11 areas that we were dependent on,

time in the organisation where we

creating dependency issues, lack of

approached mega sourcing in the

efficiencies, governance and supplier

proper way by establishing a cross

management tools. With this change

functional team of decision-makers,

of approach we were able to reduce

project leaders and subject matter

the majority of our supplier base to four

experts. This allows us to be flex-

main suppliers, which are helping us

ible and adjustable to meet desired

to remove dependency, improve effi-

results,” comments Perkins. Reflecting

ciency, and implement governance and

SEPTEMBER 2020

performance management tools.

holistic approach and collaborating with

This was a huge transformation for us.”

our partners will drive ‘best-in-class’

Volvo Cars’ four strategic partners

outcomes if we utilise each of them to

include Capgemini, HCL, Cognizant and

their strengths. Capgemini was selected

Infosys. “As a whole, any one of them

for our manufacturing, logistics, finance,

could have taken on the entire transfor-

hosting, HR, facility, legal and security,

mation project. However, like I previously

while HCL is our partner for product cre-

mentioned, we believe that taking a

ation, research development, IP assets,

E X E C U T I V E P R O FILE :

Michael Perkins Title: Director, IDP Global Procurement Industry: Automotive

Company: Volvo Car Group

Location: Sweden

Michael has a wealth of experience in expense management within a multitude of industries, including insurance, real estate, technology, legal, human capital, and private equity, to name a few. For over 15 years, Michael was a partner with Profit Recovery Partners, a professional services firm that develops, implements, and manages cost-reduction solutions. Michael joined Volvo Car Corporation in April 2016 to help establish and launch its first manufacturing plant being built in the US. This included the overall responsibility of Machinery & Tooling, Logistics, Facilities Management, IT, Marketing & Sales, Professional Services, etc. After two years in the US, and completing the launch, Michael moved to Sweden to join the indirect procurement management team. In his current role, Michael is responsible for the EMEA region as well as driving global direction in the areas of Marketing & Sales, CED (IT), and Professional Services. m a n u f a c t ur in g gl o b a l . c o m

123

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end user and collaboration environments, Cognizant is our partner for data management, analytics, monetisation and automation, and finally Infosys to support the delivery and transformation in our commercial operations.” In addition to transforming its strategic partnership strategy, Volvo Cars has been digitally transforming its business functions and operations to become more agile. “Currently within the automotive industry, I would say there is a huge

“With this change of approach we were able to reduce the majority of our supplier base to four main suppliers, this was a huge transformation for us” Michael Perkins, Director of IDP Global Procurement, Volvo Car Group

focus on electrification, autonomous 125

driving, customer relationships and

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V O LV O C A R S

CAPGEMINI

126

Capgemini is a global leader in consulting, technology services and digital transformation, at the forefront of innovation to address the entire breadth of our clients opportunities in the evolving world of cloud, digital and platforms. Building on its strong 50-year heritage and deep industry-specific expertise, Capgemini enables organisations to realise their business ambitions through an array of services from strategy to operations. We have been working for more than 40 years with Volvo Cars, in different programs, supporting both the IT organisation as well as the Business side of Volvo Cars. Since last year we have been chosen as the main Digital transformation partner for Enterprise Digital. Our Motto for the partnership is “Guide – Enable – Deliver”. We guide Volvo Cars by leveraging our industry knowledge and expertise to provide insights to Volvo Cars on some of their strategic topics, we help enable Volvo Cars’ strategies

SEPTEMBER 2020

to make sure implementations can accelerate, and we strive to deliver current services as well help in transforming its IT landscape into a future proof and agile IT environment. As part of the new agreement, Capgemini will deliver a wide range of transformation services including product orientation, DevOps and cloud. In addition, Capgemini will be a main provider of end-to-end SAP consulting and technology services (including new SAP S/4HANA® implementation projects, application management and support, and infrastructure/ platform services). In the last few years the intensity of the relationship has started to change. Rather than just delivering IT services, our relationship with Volvo Cars has started to focus more on the business impact both parties could deliver through the IT services provided to the business. — Frank Wammes, Global Account Executive, Capgemini

HCL

HCL Technologies (HCL), is a leading next generation global technology company that helps enterprises reimagine their businesses for the digital age. Our technology products, services and engineering are built on four decades of innovation, with a world-renowned management philosophy, a strong culture of invention, risk-taking, and a relentless focus on customer relationships. HCL’s engagement with Volvo Cars is the expansion of a partnership that began in 2016 and will see HCL continue to support the global premium car company through its ongoing digital transformation initiatives. This large-scale transformation exercise includes organization-wide technology shifts that will help Volvo Cars capitalize on new opportunities to improve internal business processes and customer experiences. The relationship between the two organizations is driven by the key tenets of trust-transparency-flexibility, value centricity and is based on HCL’s philosophy of relationship beyond the

contract™. The partnership is now expanding to the next level and is moving into digital transformation, including product orientation, DevOps and application integration. As an industry-leading global engineering services provider, HCL Technologies will also help Volvo Cars strengthen their competitive advantage, through an integrated transformational strategy that facilitates continuous quality & cost improvement across the product creation value stream, while accelerating revenue growth t hrough innovation. Leveraging HCL’s combined strengths in PLM and electronics and engineering IT, we are bringing together a blend of traditional and next generation global engineering services and global engineering solutions, enabling Volvo Cars to achieve productivity targets in coming days and race ahead of the competition. — Anirban Dutta,, Client Partner, HCL Technologies, Sweden

m a n u f a c t ur in g gl o b a l . c o m

127

V O LV O C A R S

vehicle communication. With these fast growing trends it is crucial for us to develop strategic partners with the expertise to develop and utilise innovative technologies such as artificial intelligence, machine learning, big data and analytics in order to stay ahead of these evolving trends.” Reflecting on the company, Perkins has seen Volvo Cars since 2018 evolve from manufacturing cars in Europe and China, into an auto manufacturer with systems and governance in global 128

positions. Perkins believes that Volvo Cars’ biggest strengths are its line-up of vehicles which have been completely

“ Taking a holistic approach creates a group of suppliers that we can rely on and innovate with in the hopes to deliver ‘best-in-class’ plans, processes and products” Michael Perkins, Director of IDP Global Procurement, Volvo Car Group

SEPTEMBER 2020

129

redesigned to remain competitive and lead the premium car market, as well as its commitments to sustainability with its electrification lineup and its leadership team that isnâ&#x20AC;&#x2122;t afraid to cause a disruption in the industry. â&#x20AC;&#x153;I would also say our biggest success is our strong presence within the industry maintaining our ability to sell over 700,00 cars in 2019 in a declining market, which I think is pretty incredible,â&#x20AC;? concludes Perkins.

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THE JOURNEY TO DIGITALISATION IN SUPPLY CHAIN WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

MANUEL NAVARRO

SEPTEMBER 2020

131

m a n u f a c t ur in g gl o b a l . c o m

HENKEL

Dirk Holbach, Corporate Senior Vice President and CSCO of Laundry and Home Care, Managing Director of Henkel, discusses the effect technology has had on the supply chain

he Fourth Industrial Revolution is here. Technology is an enabler and it is having an increasingly prominent effect on how

manufacturing companies and their supply chains operate. Henkel is a leading solutions provider in 132

three core areas: Adhesive Technologies, Beauty Care, and Laundry and Home Care. Over the past few years, the firm has experienced rapid transformation and has its finger on the pulse of the latest technological innovations. Overseeing the companyâ&#x20AC;&#x2122;s worldwide supply chain for Laundry and Home Care is Dirk Holbach, Corporate Senior Vice President Global Supply Chain. Holbach has worked for Henkel in a variety of roles for almost his entire working life. Having joined the company as Junior Manager of Corporate Purchasing in 1996, he became responsible for purchasing at Laundry and Home Care in 2004 before transitioning into several different roles prior to moving into his current position in July 2015. As part of Holbachâ&#x20AC;&#x2122;s current role, he is responsible for the end-to-end supply chain SEPTEMBER 2020

133

m a n u f a c t ur in g gl o b a l . c o m

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Increasing Productivity, Quality and Safety at Henkel – at Scale A key partner to Henkel’s digital transformation is Parsable, the leading Connected Worker Platform for enterprise industrial companies. Parsable is a software platform that helps the world’s largest industrial and manufacturing companies arm their frontline workers with the necessary tools to thrive in today’s digital-first world. In addition to Henkel, its customers are top global companies in the manufacturing and energy industries, including consumer packaged goods, resources and chemicals, packaging and building materials, and automotive and aerospace. Parsable is one of Henkel’s partners to help digitise Henkel’s operations. The Parsable Connected Worker Platform transforms static, paper-based standard operating procedures into dynamic work instructions, including multimedia voice, text, video and photos, as well as real-time team collaboration. Given that 72% of tasks at a factory are still performed by humans, according to a recent study by research firm A.T. Kearney, Parsable provides companies with new data and insight into human work so they can improve productivity, quality and safety – at scale. “They’re primarily focused on supporting companies through digitalisation on the shopfloor. Although a relatively new partner, we’re currently evaluating various opportunities to build on their preconfigured platform,” said Dirk Holbach, Corporate Senior Vice President Global Supply Chain Laundry & Home Care, Henkel. Parsable underwent an intense deployment at Henkel during 2019. “We’ve been pioneering this new market, called connected work, which provides modern digital tools to industrial workers,” says Lawrence Whittle, CEO of Parsable. “The consumer packaged goods market is an increasingly active area for us and it ultimately led us to Henkel, who is clearly one of the biggest players in this space on the global stage.” In order to establish a mutually beneficial and longlasting partnership, Whittle believes transparency is

Overview of Connected Work and the Parsable Platform

essential in order to achieve success with some of the world’s biggest companies. “You have to be able to align with each other; otherwise, technology companies can’t survive,” he says. “We’ve invested a ton to ensure that we’re not only delivering an easy-to-use, softwarebased platform to help frontline industrial workers do their jobs better and more efficiently, but also that we support and even drive the key business objectives of our customers.” “Ultimately, our goal is to improve the overall operations at Henkel,” explains Whittle. “In order to achieve that, there is a clear objective around productivity, safety and quality. At the moment, there’s a demographic shift in the industry. It’s vital that you capture the knowledge of employees that are at retiring age and leaving the company, and transferring that knowledge to the new generation. While there’s a real necessity to drive efficiency, quality and safety, there is also a requirement to understand a new way of working and recognise a new type of worker that really needs these modern, digital tools.” The Parsable Connected Worker Platform currently has users in more than 130 countries, and is available in 14 languages.

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HENKEL

for Laundry and Home Care, and in 2018 the business unit accounted for

“ Introducing digital for digital’s sake doesn’t make any sense”

€6.4mn sales. Within Holbach’s business unit, Henkel has six regional hubs, as well as 33 factories and 47 warehouses under his remit. Despite being founded in 1876, the DAX company is still majority owned by the Henkel family, and Holbach believes this really sets his

— Dirk Holbach, Corporate Senior Vice President, CSCO of Laundry and Home Care, Managing Director, Henkel 136

organisation apart from its competitors. “It provides us with a different strategy: the Henkel family has shown its continued commitment to the company, enabling us to operate with a long-term perspective. We have a strong company

SEPTEMBER 2020

Henkel: Operating a long-term approach in manufacturing CLICK TO WATCH

1:28

137 culture, and our shared values help us to create sustainable value for future generations,” he explains. “Our portfolio is diversified because we have two consumer goods businesses and one that’s focused on industrial markets. It’s certainly a unique mix.” Holbach understands that the journey to achieving digitalisation is a continuous one and not something that can be accomplished overnight. “In 2013, we began to invest in our digital backbone, which led to us connecting all our factories together through a standardised approach,” explains m a n u f a c t ur in g gl o b a l . c o m

Changing the way you think about data LEARN MORE

More and more companies collect huge amounts of data and want to turn them into money. But where are the obstacles to achieving that? When it comes to data monetization, most companies only scratch the surface. This is because the use of data can only be imposed to a limited extent. Instead, companies need to get as many people as possible excited about using data. Analytical competence is often confined to the IT or BI department, employees are not trained in working with data or do not have the right tools to use data easily and sensibly in their daily work. The fact is, the more employees and managers are used to working with data, making decisions based on facts and playfully drawing new insights from data analysis, the more likely it is that companies will develop ideas on how to make money with data - be it in the form of services or even entirely new business models.

In other words, it is necessary to build a data-driven corporate culture. But what does the path to this end look like? A culture of analysis begins with empowerment. Employees must be empowered to explore data themselves and answer their own questions. This also includes a certain degree of trust managers must have in their teams when dealing with data. Modern BI tools also help to curate and purposefully manage data. This way, everyone gets access to the data they need without jeopardizing sensitive data and governance regulations.

What role do technologies like AI play here? If companies want more employees to work with data, they need to make access as easy as possible. Technologies such as Natural Language Processing (NLP) and AI can help. NLP - the ability of computers to understand human language - lowers the entry barrier for professional analytics. With our Ask Data feature, users can formulate questions about

Henrik Jorgensen Country Manager DACH at Tableau Software.

their data in natural language. When people can interact with a data visualization like a personal assistant, it allows more people across all disciplines to ask deeper questions about their data, thus increasing the overall acceptance of data analysis. With the use of AI-based data analysis, we are now going one step further and making statistical knowledge more accessible. For example, the new Explain Data feature can be used to explain statistical outliers. This allows users without specialist knowledge to quickly expose the 'why' behind their data by simply clicking on the data point in a visualization. Explain Data evaluates hundreds of patterns and explanations within seconds, taking all available data into account. Innovations such as these foster a culture of curiosity and strongly promote a data-driven corporate culture.

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HENKEL

140

Holbach. “I’m always looking at the

consumer goods (FMCG) business, we

business benefit for implementing

primarily think in relatively short cycles,”

technology because introducing digital

explains Holbach. “If the end user has

for digital’s sake doesn’t make any

no benefit from a specific technology

sense. It’s important that new technol-

then they’ll stop using it. You can’t intro-

ogy helps solve business challenges,

duce new technology for the sake of it

such as ensuring that processes

— there’s no point. We’re still adopting a

become faster, cheaper and more

vertical approach and are continuously

agile.” Implementing technology that

trialling new technology in several

serves a purpose is a key pillar to

different pilot locations.” However,

Holbach, and he believes that harness-

Holbach understands the challenge of

ing new processes and systems that

change management and the process

aren’t sustainable has no long-term

involved for a successful culture shift.

value to Henkel. “As a fast-moving

“There’s a whole transformation of the

SEPTEMBER 2020

141

E X E C U T I V E P R OF IL E :

Dirk Holbach Title: Corporate Senior Vice President Industry: Consumer Goods Location: Netherlands With more than 20 years of experience in Supply Chain, Operations, Purchasing and Sales, Holbach has held various roles on a local, regional and global level at Henkel. His special focus has been on supply chain strategy and organization development, network optimization, continuous improvement and post-merger integrations. Holbach holds a Masterâ&#x20AC;&#x2122;s degree in Business and Mechanical Engineering and a PhD in Information Science. m a n u f a c t ur in g gl o b a l . c o m

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Henkel: Connecting factories together through a standardised approach CLICK TO WATCH

1:40

143

business to consider and it’s vital that

last ten years. “It’s become part of our

you give employees the time to under-

DNA and is anchored into our mind-

stand and embrace new technologies

set,” explains Holbach. “Our products

and provide targeted support and

are used millions of times every day

trainings,” he affirms.

around the world, and we recognise

Henkel has five core values that it

the potential impact we can have by

centres operations around: customers

developing sustainable innovations.

and consumers, financial perfor-

We’re designing more and more of

mance, sustainability, people, and the

our packaging to ensure it’s 100%

foundation as a family business. As a

recyclable, reusable or compostable

result of the company’s sustainability

as well as using recycled materials to

drive, Henkel has reduced its specific

produce it.” The company was one

energy consumption by more than

of the first organisations to publish

50% in its Laundry division over the

a formal sustainability report more m a n u f a c t ur in g gl o b a l . c o m

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says. “This means that you then have less resource consumption to produce

“ We’re designing our packaging to ensure its 100% recyclable as well as only using recyclable materials to produce it”

it, ship it, and it subsequently allows the consumer in the final phase to use our products in a more sustainable way.” Another one of Henkel’s core values is people. The importance of having a team in place that is aligned to a common objective is at the heart of the company’s drive. Henkel places considerable value on its recruitment drive,

— Dirk Holbach, Corporate Senior Vice President, CSCO of Laundry and Home Care, Managing Director, Henkel

as well as ensuring it retains the talent it already has. “People are key. As part of our digital journey, I’ve built up a small, centralised regional team that

than 28 years ago and has a clear forward-going ambition: to triple the value it creates through business activities relating to its environmental footprint by 2030 – compared to the base year 2010. With a more sustainable approach at the forefront of Holbach’s strategy, he maintains that his company is continuously seeking to reduce the amount of packaging in its products. “Compaction is a major trend in our industry at the moment. By taking certain chemicals out of a product, it makes it more compact,” he m a n u f a c t ur in g gl o b a l . c o m

145

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147

works on a range of pilot use cases as

learnings that will enable training on

well as the implementation across all

the capabilities that are relevant today

our sites,” says Holbach. “Our recruit-

and in the future.”

ment strategy is to ensure we have a

Following the influx of technology

solid mix between data scientists and

such as data analytics, artificial intel-

traditional engineers with an under-

ligence (AI) and machine learning

standing of our businesses. We must

(ML), Holbach believes in operating

ensure that all of Henkel’s employees

proactively rather than reactively in

have the opportunity to upskill them-

a bid to differentiate from its peers.

selves, by having access to digital

“Technology has helped to redefine m a n u f a c t ur in g gl o b a l . c o m

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Enterprise: Structured Data

Standardised data schema and flexible integrations mirror operations model.

Henkel: Developing trust essential to success CLICK TO WATCH

1:03

149 the business frame that we operate

systematically started to collect an

in,” he says. “We’re only now starting

increasing level of real-time data.

to embrace AI and ML but it’s an area

A member of Holbach’s team,

we’re looking to do more in. We’re still

Sergey Afanasyev, International Digital

in the testing stage with a lot of new

Transformation Manager at Henkel, is

technology and it’s important that

focusing on two key pillars: connected

we’re continuously looking for new

workers and digital upskilling. “I like

opportunities that will accelerate our

to encourage digital collaboration

current processes. We have to always

between the people using mobile

see how far we can push the bar.” With

technologies as well as helping build

technology’s influence on the manu-

and develop the skills that employees

facturing sector showing no signs of

need today because of the digital

slowing, the plethora of data at com-

technologies already in place,” explains

panies’ fingertips should be embraced.

Afanasyev. He believes that new

Over the past few years, Henkel has

technologies such as AI, ML and Big m a n u f a c t ur in g gl o b a l . c o m

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H E N KE L PART N ER Q U O T ES Clevertech: “We’ve worked with Clevertech for many years. It’s a well-established business in packaging our goods and making them ready for shipment. It has a real drive to add digital capabilities into its products and is an important partner to us.” Micro-Biolytics: “The partnership focuses on chemistry analytics. We’ve been working together for a number of years and we are continuously trying out new ideas and concepts.” Aveva Solutions: “The company is part of Schneider Electric and the home of Wonderware. It’s a special and long-term partner. Wonderware is the platform we use to connect all of our IOT together and the partnership is crucial to us.”

Parsable: “It’s primarily focused on supporting companies through digitalisation. Although a relatively new partner, we’re currently evaluating various opportunities to build on their preconfigured platform.” Tableau Software UK: “Tableau is now owned by Salesforce and is an important piece of our digital infrastructure. It’s our visualisation and analytics tool and enables us to review all our data in supply chain and manufacturing.” O9 Solutions: “It’s a very fast growing company and we’re checking how it can support us in our end to end planning process.”

Zaptic: “It’s a newer player on the market with a no code platform to connect the shop f loor workforce with digital instructions and daily management workf lows. We’re now testing Zaptic’s solutions in

TEMBO: “TEMBO is more of a traditional technology supplier and we’re collaborating in the complexion of our product. It helps supply machinery for unit dose and is based in the Netherlands so we can work very closely together to

our operations.”

expand our capabilities.”

m a n u f a c t ur in g gl o b a l . c o m

151

BE PART OF INNOVATION Improve your time to market Tembo is a worldwide group of companies with a focus on developing high speed and high accuracy machinery, creating maximum flexibility and process optimization. In our approach, product development and machine development go hand-in-hand to build modular machines. With our experience and creative mindset we support global brands to become more agile and responsive to market dynamics.

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Together creating the next

Data should be embraced to achieve a competitive advantage. “These tech-

“ I like to encourage digital collaboration between the workers and paperless operations”

nologies allow us to unlock values and data that we acquire through our digital backbone technology that ultimately brings us a competitive advantage,” says Afanasyev. “Technology itself is agnostic. It’s important to us that we only leverage technology that is true to our vision and strategy.” Henkel has developed key, strategic

— Sergej Afanasyev, International Digital Transformation Manager, Henkel

partnerships with a range of firms including Clevertech, Micro-Biolytics, Aveva Solutions, Zaptic, Parsable, Tableau Software UK, o9 Solutions

Henkel: Zaptic and Tembo CLICK TO WATCH

1:58

m a n u f a c t ur in g gl o b a l . c o m

153

HENKEL

154

1876

Year founded

â&#x201A;¬20bn+ Revenue in euros

53,000 Number of employees

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155

m a n u f a c t ur in g gl o b a l . c o m

HENKEL

and TEMBO. Holbach has a clear idea of what he looks for when seeking to establish a mutually beneficial collaboration. “There must be long-term and sustainable benefits on both sides of the partnership for it to be successful,” he explains. “It’s important that there is a level of openness that develops trust over time. This is especially true when times are volatile, and it is where you see the true value in dedicated partners.” With the manufacturing space set to continue to transform as the digital age continues to take shape, it’s vital 156

that companies adopt an agile and lean approach to ensure they don’t get left behind in a competitive and dynamic

“ It’s important that there is a level of openness that develops trust over time” — Dirk Holbach, Corporate Senior Vice President, CSCO of Laundry and Home Care, Managing Director, Henkel

SEPTEMBER 2020

157

market. Holbach is confident of what he anticipates the supply chain space to look like over the next few years. “It’s clear that we’re only at the beginning because I believe that data relevance is only going to increase further,” he says. “There will be greater visibility and transparency in the supply chain over the next few years and we must be ready.”

m a n u f a c t ur in g gl o b a l . c o m

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158

Solving business challenges with technology WRITTEN BY

WILLIAM SMITH PRODUCED BY

LEWIS VAUGHAN

SEPTEMBER 2020

159

Photo ÂŠ Coca-Cola Italy ma nufa c t uri nggl o b a l. com

T H E C O C A - C O L A C O M PA N Y

Damiano Marabelli, Central & Eastern Europe Business Unit CIO, The Coca-Cola Company, discusses IT’s role in facilitating a ‘Total Beverage’ transformation

he Coca-Cola Company (TCCC) needs no introduction, seeing as it is one of the world’s most recognisable brands. Main-

taining that privileged position requires the input of all of its different departments, and, in this regard, IT is no different. Damiano Marabelli is in charge of the company’s IT operations in one of its biggest 160

business units (BUs), as he explains: “I joined TCCC as ‘Central & South European BU IT Client Engagement Director’ at the beginning of 2013. Then I was asked to structurally merge the IT operations of the above BU with the Russia, Ukraine and Belorussia BU, creating the second biggest BU outside North America: the Central & Eastern Europe Business Unit (CEE BU) with its headquarters in Athens”. The CEE BU operates in one of the most diverse business contexts in the world, encompassing 411 million people in 26 countries (four — Italy, Russia, Poland and Romania - account for more than half of the CEE business); 23 official languages; 16 currencies; only seven markets above a population of 10 million; and four main bottler partners (SIBEG in Sicily, CCBS in Albania, GSD in Malta and CCH in all other BU territories). SEPTEMBER 2020

161

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

T H E C O C A - C O L A C O M PA N Y

162

Damiano is guided in his role by the objectives previously set out by Barry Simpson, Senior VP and Chief Information Officer at TCCC, who two years ago articulated a digital transformation programme known as ‘Digitizing for Growth’. The three main objectives of the program are: ‘digitizing for the Consumer’ by creating more personalised, predictive and emotive experiences by harnessing data and analytics; ‘digitizing for the Customer’ by building new routes to market and forging additional partnerS U M M E R /A U T U M N 2 0 2 0

CEE BU – Connected Cooler Demonstrator CLICK TO WATCH

2:08

163

ships alongside strengthening existing

System”, in short the network involves

ones; and ‘digitizing the Enterprise’ by

TCCC supplying beverage products

investing in capabilities to create an

to the bottlers which then add other

agile, engaging and productive work-

ingredients, package the products

place. To achieve those aims, TCCC

and distribute them through four main

is focused on continued investment

market channels, known as: Super-

in digital marketing, ecommerce

markets, Convenience, Discounters

platforms, scalable sales and com-

and HoReCa (including bars, pubs, res-

mercial technology.

taurants and cafeterias). While gross

TCCC’s unique relationship with

profits for bottling partners are often

its bottling partners is another

healthy, operating margins are much

important consideration for its

thinner, which leads TCCC to pursue

digital transformation. Together

innovations. “TCCC invests heavily in

referred to as “The Coca-Cola

category development, both creating ma nufa c t uri nggl o b a l. com

BUILDING ENTERPRISES FOR THE DIGITAL AGE Triveneto Servizi was established by Roberto Bontempi in Spinea, metropolitan city of Venice, in 2012. The company specialises in ICT workplace maintenance and mission critical services for multinational corporations. More recently, Triveneto Servizi has invested in leading-edge skills, focused on developing FMCG image recognition solutions, Blockchain payment systems and high-speed fiber connectivity.

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TRIVENETO SERVIZI & COCA-COLA ITALIA CASE STUDY EXPO 2015 The main activities carried out include: • Installation of laptops, desktops, printers, videoconference Coca-Cola devices. • 24/7 Assistance during the event on the above materials and on the software’s installed with an onsite team of IT senior technicians. • Project managing activity in preparation of the event (contact with the vendors, managing of the offers, collaboration with Telecom & CISCO in the creation of the network architecture).

There has never been a more exciting time to work with technology. In the past, innovation was limited by the capabilities of hardware and software - now it’s only limited by the imagination. Today, mobile technology, the cloud, intelligent machines, social media, Internet of Things and emerging technologies make almost any idea possible. Roberto Bontempi, with his 30 years of experience in building ICT companies, has been a premium partner of Coca-Cola Italia for seven years. From his Milano office, and in cooperation with his senior team, coordinated by Andrea Lombardo, Bontempi takes care of all IT desk site support services. This facilitates all digital collaboration capabilities and technology consumerisation programmes from CocaCola’s Corporate IT, and makes the Milano employees more productive, digitised and connected. During 2020, Triveneto Servizi will fully unlock the power of the smart working paradigm in Coca-Cola Italia, promoting the fast adoption of all apps available in the Coke app store. One of the most remarkable achievements of Triveneto Servizi and Coca-Cola Italia’s collaboration has been the ICT support provided during the preparation-executionclosure of the EXPO event for the entirety of 2015. The main features of the service provided were the Coke EXPO pavilion onsite installation, and maintenance of the IT equipment and software provided by Coca-Cola, in order to create a Coca-Cola office area, applying the Coca-Cola small office standard configuration.

The Coca-Cola Pavilion, built for EXPO Milano 2015, celebrated the company’s tradition, in line with the theme of the exposition “Feeding the Planet, Energy for Life”. This was a stage upon which the company displayed its sustainability model – based on the promotion of wellbeing, protecting the environment and building stronger communities – in an experiential way. The Pavilion - standing 12 metres high and covering 1,000 square meters of surface area, was constructed of environmentally sustainable materials including wood, glass and water to create an iconic space that was simultaneously contemporary and innovative. The outer walls, made of glass and wood, recreated the Coca-Cola logo and the contour silhouette of the historic glass Coca-Cola bottle, which celebrated its 100th anniversary in 2015. Visitors to the pavilion were led along an interactive journey where they participated in the discovery of Coca-Cola world and learned about the company’s values. The building outlined the dimensions of a basketball court and, at the end of EXPO, became a new space that the Milan community of Famagosta now uses for physical activities. Triveneto Servizi has a vision that inspires all ICT services of its portfolio: “expect the same technology experience at work as we have elsewhere in our lives”. This means differentiating ICT services – more green, more social, more collaborative, more mobile and more reliable – that drive innovation for productivity and growth.

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T H E C O C A - C O L A C O M PA N Y

innovative packaging solutions and

few years is Price-Profit-Volume

fostering brand development,” says

Simulator and Assortment Optimisa-

Marabelli. “Given its multi-segmented

tion. Powered by Microsoft solutions

shopper and customer base, TCCC

including Azure, PowerBI and the

must spend heavily on market research

.NET framework, the software lever-

— it’s necessary for TCCC to stay ahead

ages an experience whereby CEE

of changing market trends, consump-

BU and Coca-Cola Hellenic Bottling

tion behaviour and competitive tactics.”

Company worked with McKinsey to

The close relationship with bot-

build scenarios and volume projections

tlers extends to joint IT projects. One

for profitability and margin improve-

key innovation introduced in the last

ments. “Revenue Growth Management

166

SEPTEMBER 2020

“ It’s necessary for TCCC to stay ahead of changing market trends, consumption behavior and competitive tactics” — Damiano Marabelli Central & Eastern Business Unit CIO The Coca-Cola Company

(RGM) is the core business process in The Coca-Cola System,” Marabelli explains. “It maximises system revenue by systematically identifying pockets of value and by activating offerings that most profitably convert shoppers into buyers. The essence of RGM is in understanding consumers’ perception of product value and accurately aligning product prices, placement and availability with each

E X E C U T I V E P R OF IL E :

167

Damiano Marabelli Title: CIO

Company: The Coca-Cola Company

Industry: Food & Beverages Location: Varese Area, Italy Damiano has broad IT, business and change management experience through various positions he held for more than 15 years within the Whirlpool Corporation. He holds a college degree in Computer Science and an Executive Master Business Administration degree specialising in ICT Strategy, Governance and Management from the Polytechnic-University in Milan. In addition, he has earned a ccOPEX (Customer-Centered Operational Excellence) Six Sigma Black Belt certificate and an Online Masters in Social Media Communication from Il Sole24Ore business school in Milan. 51 years old, he grew up in a small lake town near Varese, Northern Italy, where he continues to live with his family. Married with one son, Damiano is a strong tennis player and passionate about historical and philosophical essays.

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

T H E C O C A - C O L A C O M PA N Y

customer segment. These simulation

“ It no longer makes sense to think of IT as a separate entity from marketing, finance or supply chain” — Damiano Marabelli Central & Eastern Business Unit CIO The Coca-Cola Company

SEPTEMBER 2020

and optimisation capabilities support this process and have already been rolled-out across several other BUs and bottlers.” RGM will continue to be a focus, with a new generation of RGM analytics being designed to harness AI and machine learning to elaborate on insights and realise profits. Consumer-facing technology has also been a focus, as with the company’s recently launched app aimed at teenagers. “During 2019 the brand new Coca-Cola app was active

“ Ipis acest volorepta doluptia quation elio repelestiur acerecti aut aborent occustrum quoditi ut eiciaes esi quibus aditiam util” — Name of Person, Position and company

169

in 17 CEE markets, fully leveraging

1 March 2019, more than 1.6 million

the business unit’s digital market-

consumers have installed the app, with

ing ecosystem that also includes a

more than 250,000 of them using it

GDPR-compliant consumer database,

actively every month. “As a result of

a consumer promo engine, a social

that, more than 1.3 million consum-

media listening and engaging center

ers have registered in our consumer

and so on,” Marabelli elaborates. “The

database, 1.4 million stories have been

mobile experience covered by the app

uploaded to the app and more than 4.3

involves user-generated content, loy-

million pin codes have been redeemed

alty and promotions — users upload pictures and unlock words to build stories by participating in promotions

— corresponding with the same amount of drinks being purchased.” The delivery of such systems stems

and earning points to be exchanged

from a reimagined role for the IT func-

for digital prizes.” Since its launch on

tion, which Marabelli traces back to ma nufa c t uri nggl o b a l. com

T H E C O C A - C O L A C O M PA N Y

1886

Year founded by Dr John Pemberton

$31.8bn Revenue in US dollars (2018)

170

700,000+ Number of employees across company and bottling partners

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171

Photo ÂŠ Coca-Cola Italy ma nufa c t uri nggl o b a l. com

T H E C O C A - C O L A C O M PA N Y

previous CIO and Vice President Ed Steinike. Marabelli remembers the words of Steinike, who previously said: “It’s all about people. Just like CocaCola’s marketing organisation, which hired some really smart people in the field of digital and interactive marketing, we started to recruit talented IT people who were more entrepreneurial, a little more strategic in their thinking, and who connected better with what marketing was trying to achieve.” This reinvigorated culture has also been 172

reiterated by Corporate CIO Barry Simpson, with Marabelli taking a number of lessons from him, including IT’s

“ 1.3 million consumers have registered in our consumer database, 1.4 million stories have been uploaded to the app and more than 4.3 million pin codes have been redeemed” — Damiano Marabelli Central & Eastern Business Unit CIO The Coca-Cola Company

SEPTEMBER 2020

173

role in helping TCCC to implement its

ply chain. From product development,

‘Total Beverage’ strategy, which involves

intelligent supply chains, advertising

broadening its offering to become

and mobile payments, technology has

more consumer-centric. As part of that,

become an integral ingredient in all

Marabelli emphasises that IT must be

aspects of businesses. We are shifting

capable of adapting to the new ecosys-

from builders of technology to archi-

tem and constantly reinventing the way

tects of possibility that will enable our

the company does business.

business’ success as a ‘Total Beverage’

It is with this strategy in mind that

company. We do not solve technology

Marabelli conceptualises his depart-

problems; we use technology to solve

ment’s future path: “It no longer makes

business challenges.”

sense to think of IT as a separate entity from marketing, finance or supma nufa c t uri nggl o b a l. com

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Aerojet Rocketdyne: the evolution of aerospace and defence technology WRITTEN BY

GEORGIA WILSON PRODUCED BY

MIKE SADR

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AEROJET ROCKETDYNE

Alan Avakian, Senior Director of IT and John Jackson, Chief Information Officer at Aerojet Rocketdyne, discuss the company’s innovative transformation journey since 2018

W 176

ith 20 years’ experience within information technology, Alan Avakian, Senior Director of IT at Aerojet Rocketdyne,

has spent most of his career in the aerospace and defense industry. “I started out as an application developer, working in technologies ranging from the mainframe to client/server and web. Other technical roles I have had include database administration and project management,” says Avakian. “After working with programmers and internal customers, I branched out into other more specialized disciplines including reporting and ERP. At a certain point, I had to make a career choice between technical and management tracks, and chose management in the end for the opportunities. With guidance from others, I went back for my Masters of Business Administration and transitioned to managing my own department before becoming a Director and Chief Technology Officer.”

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AEROJET ROCKETDYNE

“ Additive manufacturing, hypersonics, and solar electric propulsion are key innovation areas for Aerojet Rocketdyne” — Alan Avakian, Senior Director of IT, Aerojet Rocketdyne

Avakian describes Aerojet Rocketdyne as “an innovative worldclass developer and manufacturer of advanced propulsion and energetics systems

178

SEPTEMBER 2020

Aerojet Rocketdyne Manufacturing B-Roll CLICK TO WATCH

2:55

179 for customers including the US

“Additive manufacturing, hyper-

Department of Defense, NASA and

sonics, and solar electric propulsion

other agencies and companies, both

are key innovation areas for Aerojet

in the United States and abroad.” Its

Rocketdyne. We are also developing

vision is to further develop the brand

propulsion systems to utilise high-

and leverage its experience to provide

performance ‘green’ propellants.

the most cost-effective, on-schedule

Green propulsion systems are an

and reliable products in the industry.

alternative to conventional chemical

Over the last two years, Avakian has seen the aero-

propulsion systems that use hydrazine propellants for a variety of applica-

space and defense industry evolve

tions, including next-generation

significantly, with multiple new trends

launch vehicles and spacecraft,”

emerging fast such as: additive manu-

says Avakian.

facturing, solar electric propulsion, cybersecurity and cloud technology.

John Jackson is the Chief Information Officer at Aerojet Rocketdyne and ma nufa c t uri nggl o b a l. com

AEROJET ROCKETDYNE

182

E X E C U T I V E P R OF IL E :

Alan Avakian Title: Chief Technology Officer Industry: Defense & Space

Location: California

Alan Avakian is the Senior Director of IT at Aerojet Rocketdyne. In this role, he leads the organisationâ&#x20AC;&#x2122;s Business Alignment and Technology Management functions responsible for shared business service strategy and operations including Networking, Infrastructure, Applications, and End User Support services. He coordinates with line-ofbusiness leaders to understand their needs (including anticipated technology and product changes) and works with IT outsourcing partners for execution. SEPTEMBER 2020

183 has extensive experience in cyber-

security in cloud, Jackson is also

security and cloud technologies. In

seeing companies shifting to this tech-

the Information Technology arena,

nology. “Cloud solutions now meet the

Jackson mentioned that “there’s a

stringent security requirements of our

much bigger focus on security and

industry, so companies are now start-

the new Cybersecurity Maturity

ing to pivot.”

Model Certification (CMMC) that was

Further discussing data security,

released in January. An accredited

Jackson explains the company’s own

third party assessor will independently

efforts since 2018 to develop its data

assess whether internal information

security methods. “Keeping up with

systems of companies that perform

the ever-increasing security threats

DoD work (including suppliers) have

for people who want to steal your data,

the required cybersecurity controls

while also meeting the new industry

in place to meet the assigned cyber

compliance standards such as the

maturity level.” With new levels of

CMMC, are core challenges when it ma nufa c t uri nggl o b a l. com

AEROJET ROCKETDYNE

184

comes to data security as it changes

a traditional IT architecture which

so fast.” At Aerojet Rocketdyne,

relies heavily on on-premise infra-

the company has a threat hunting

structure to a hybrid architecture.”

program which allows the company

In particular, Avakian highlights the

to proactively measure its security

company’s adoption of cloud tech-

posture rather than only relying on

nology, microservices and robotic

traditional threat management meas-

process automation (RPA). “Over

ures such as firewalls. In addition,

the last couple of years we have

“we are currently embarking on an

transitioned our Product Lifecycle

Enterprise Information Management

Management (PLM) system from

initiative to establish a data govern-

an on-premise solution to a cloud

ance program. This program will

provider. Our data is housed in a

assist with the standardisation and

FedRAMP data centre with around-

integration of data and metrics

the-clock support.” In addition to

across the enterprise.”

the cloud, the company has begun

When it comes to the innovative

conducting an RPA proof-of-concept

evolution of the company, Avakian

with its Finance department. “This

explains that over the last two years

will reduce costs, eliminate input

the company has “pivoted from

errors, speed up business processes,

SEPTEMBER 2020

What Is Artemis? CLICK TO WATCH

0:45

185

E X E C U T I V E P R OF IL E :

John Jackson Title: CIO and Vice President Industry: Defense & Space

Location: California

John Jackson is the Chief Information Officer and Vice President at Aerojet Rocketdyne. In this role, he leads the Information Technology organization focused on the development and execution of an IT strategy to help deliver on mission success. The goal of the strategy is to unlock greater value for customers and the business by enabling innovative, secure and compliant technology solutions. ma nufa c t uri nggl o b a l. com

Empower every person and every organization on the planet to achieve more. Microsoft is a technology company whose mission is to empower every person and every organization on the planet to achieve more. We strive to create local opportunity, growth, and impact in every country around the world. Learn More

187

“ Keeping up with the ever-increasing security threats while also meeting the new industry compliance standards such as the CMMC, are core challenges when it comes to data security as it changes so fast” — John Jackson,, CIO, Aerojet Rocketdyne

and will be integrated with applications. Our hope is to expand the program once we have proven out the technology and business model.” At an operational level, Avakian also explains the company’s development of a business relationship management team, as well as its healthy transition towards a balanced outsourcing and in-house operations approach. “We started with realigning some of our existing talent as well as recruiting new people with ma nufa c t uri nggl o b a l. com

AEROJET ROCKETDYNE

1942

Year founded

$2bn+ Revenue in US dollars

5,000 Number of employees

188

SEPTEMBER 2020

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AEROJET ROCKETDYNE

“ An innovative worldclass developer and manufacturer of advanced propulsion and energetics systems for customers including the US Department of Defense and NASA” 190

— Alan Avakian, Senior Director of IT, Aerojet Rocketdyne a background in IT and business liaison

our requirements in relation to levels

skills,” comments Avakian, who has

of control, security considerations,

seen huge benefits from establishing

cost model and growth.”

the team. “Our customers love the fact

With these developments, Avakian

that they have an IT representative

has seen “the ability of the company’s

that is aligned to them.” When it comes

IT systems to grow with the busi-

to balancing its outsourcing and in-

ness, enabling faster turnaround of

house operations, Avakian highlights

key enhancements which were not

that “it’s a challenging opportunity as

achievable before without significant

there are benefits and use cases for

investment in time and money.” For

both methods. Our approach is to look

example, Microsoft has been help-

at the IT area and then assess which

ing Aerojet Rocketdyne to “leverage

approach or combination best meets

Microsoft Dynamics for our CRM.

SEPTEMBER 2020

191

We will also be using Microsoft’s

– and the company’s propulsion which

Office 365 and Azure for storage later

plays a critical role in SLS’s ability to

this year.”

successfully launch the heaviest, larg-

Reflecting on the company, Avakian

est, and most valuable payloads to deep

sees the company’s biggest strength

space” is an example of one of the com-

being its people and drive towards

pany’s biggest successes to date.

innovation in everything that it does, particularly having seen the company expand its presence to drive innovation. Avakian concludes that the company’s “NASA Space Launch System (SLS) – America’s next-generation heavy-lift rocket, powered by Aerojet Rocketdyne ma nufa c t uri nggl o b a l. com