Manufacturing - June 2022 by Manufacturing Global

June 2022 | manufacturingglobal.com

SAP: Designing with sustainability Danfoss Drives: Manufacturers in technology Businesses supporting Ukraine

Asahi Beverages: Using renewable energy

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EXPECT THE UNEXPECTED

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Aiimi

Atlantic Technologies

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Don Perigny, Senior Manager at Werfen, on why manufacturing didn’t stop at SAP in the pandemic

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The Manufacturing Team EDITOR-IN-CHIEF

HELEN ADAMS CHEIF CONTENT OFFICER

SCOTT BIRCH

PRODUCTION DIRECTORS

GEORGIA ALLEN DANIELA KIANICKOVÁ PRODUCTION MANAGERS

PHILLINE VICENTE JANE ARNETA ELLA CHADNEY

CREATIVE TEAM

OSCAR HATHAWAY SOPHIE-ANN PINNELL HECTOR PENROSE SAM HUBBARD MIMI GUNN JUSTIN SMITH JORDAN WOOD DANILO CARDOOSO CALLUM HOOD MARKETING MANAGER

KAYLEIGH SHOOTER

VIDEO PRODUCTION MANAGERS

PROJECT DIRECTORS

KIERAN WAITE SAM KEMP

CRAIG KILLINGBACK

MOTION DESIGNER

JAMES WHITE

TYLER LIVINGSTONE DIGITAL VIDEO PRODUCERS

EVELYN HUANG MARTA EUGEND ERNEST DE NEVE THOMAS EASTERFORD DREW HARDMAN

MEDIA SALES DIRECTOR

MANAGING DIRECTOR

LEWIS VAUGHAN

CHIEF OPERATIONS OFFICER

STACY NORMAN CEO

GLEN WHITE

FOREWORD

The manufacturing industry faces delays, but the magazine is back! After a little hiatus, we’re back with the new bimonthly Manufacturing Digital – your B2B source for news from the world of automation, technology and resilient supply chains

“Every sector has been impacted by the recent supply chain crises, but 2023 looks like it will be significantly better protected. Manufacturing workforces are now battlehardened and well prepared”

Hello to all Manufacturing readers! Read on to hear about how Hark uses the Internet of Things to help businesses reduce waste, how EY is advancing its sustainability goals and how digital transformation works at Atlantic Technologies. As you know, every sector has been impacted by the supply chain crises of the past two years. 2023, however, looks like it will be significantly better protected. Manufacturing workforces are now battle-hardened and well-prepared for hurdles. While international trade is still at the core of manufacturing, local businesses are also having a revival in popularity. We’ll be here with the next round of Manufacturing news in August, but check out our daily articles on Manufacturing Digital in the meantime for the latest news, Stay resilient out there,

MANUFACTURING GLOBAL MAGAZINE IS PUBLISHED BY

HELEN ADAMS Helen.Adams@bizclikmedia.com

manufacturingglobal.com

CONTENTS

Our Regular Upfront Section: 12 Big Picture 14 The Brief 16 Timeline: A history of vaccine manufacturing 18 Trailblazer: Jamnalal Bajaj 22 Five Mins With: Paul Powers

The importance of suppliers in the medical industry

Aiimi’s Head of Solution Engineering Matt Eustace on Risks

Werfen

Cloud Edge

SPECIAL REPORT: MARTIN BARKMAN

Sustainability

Leading EY’s diverse and carbon-neutral workforce with AI

SAP: Design & Manufacture report

Sustainable supply chains are in SAP’s DNA

SPECIAL REPORT: DAVID VALLEJO

SPECIAL REPORT: MINDY DAVIS

SAP: Planning & Sourcing report

SAP makes sustainability a question of planning

Ai and Automation

Cloud-based platform Hark uses IoT to make serious savings

SAP: Deliver & Operate report: SAP going the extra mile on sustainability

Designed for progress. Built for industry

From manufacturing to healthcare, public sector, retail to fashion, we deliver enterprise software solutions that are built for the cloud, brought together by AI technology. 68,000 customers in 170 countries

$2.5B invested in product development

71 million cloud users

Enterprise leader in ERP infor.com

+61 2 9021 7100

Learn More

Get a demo

Danfoss Drives

Teamwork and resilience turn the wheels at Danfoss Drives

Technology

Technology tips for manufacturers moving into servitisation

122

Asahi Beverages Leader in sustainable beverage production

110 Top 10

Manufacturing businesses supporting Ukraine

134 Taurus

Open platforms, HPC & Industry 4.0

MANUFACTURING SALES,

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As the manufacturing industry evolves, ecommerce has emerged as a must-have. The need for businesses to shift their focus online and invest in ecommerce platform technology continues to intensify. Discover why leading manufacturers choose Americaneagle.com and BigCommerce to build and scale their ecommerce business.

AmTab Uplevels Its Website Experience

Remington Industries Grows Its Online Presence

When searching for the right partner to build its new ecommerce website, AmTab, a worldclass manufacturer of high-impact learning environments, turned to Americaneagle.com. The new website, built on the BigCommerce platform, features an innovative responsive design, product listings and a quote cart for customers who want more information on their products.

Remington Industries, a distributor of top quality wire and raw materials made from metal, enlisted Americaneagle.com to redesign and replatform its ecommerce website to BigCommerce. After a successful launch, the company set its sights on improving its online visibility. Once again, Remington Industries sought the help of Americaneagle.com to develop a digital marketing strategy.

"AmTab has truly benefitted from partnering with Americaneagle.com and BigCommerce to share our story. Our partnership has helped us create an awesome website to continuously connect with our clients across the world with strong content and powerful user experiences. We believe that we have partnered with the best in the business for our digital marketing needs."

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"We've seen exponential growth in our online store since we switched to BigCommerce. The site is easy to use and very customizable, which allows our customers to find the products and information they need quickly. And, our ongoing marketing support from Americaneagle.com allows us to consistently rank high in search results."

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G E T S TA R T E D O N YO U R N E W D I G I TA L E R A

BIG PICTURE

Credit: travelism

June 2022

Shanghai, China China covers 28.7% of the world’s manufacturing output, with most of this taking place in Shanghai – the largest seaport in the world. COVID-19 forced authorities to put the city in lockdown, causing delays in the supply chains of manufacturers such as Tesla, Apple and General Motors. manufacturingdigital.com

THE BRIEF “Many manufacturing companies were forced to close because they couldn’t get the materials needed. But we didn’t stop”

BY THE NUMBERS Lockdowns across the world’s manufacturing powerhouse, China, are costing the country up to US$46bn each month, according to The Chinese University of Hong Kong.

Don Perigny,

Senior Manager, Global Procurement, Werfen  READ MORE

“We’ll reduce emissions across our supply chain to net zero by 2050 – from our farmers to our manufacturing sites” David Baxter,

Group GM of Direct Procurement, Asahi Beverages 

“I think the green transformation will make the world a better place” Janne Kuivalainen,

Senior Vice President of Product Management & Development, Danfoss Drives  READ MORE

June 2022

Aiimi’s Head of Solution Engineering Matt Eustace on risks At Aiimi, AI is used to manage insights for businesses looking to eliminate risks from their supply chain

Technology tips for manufacturers moving into servitisation Manufacturers are employing servitisation to create extra revenue. Outside of their contracts, manufacturing businesses can offer additional services, such as product training.

Cloud-based platform Hark uses IoT to make serious savings Eliminating waste is a priority in manufacturing, as pressure to meet environmental goals increases. Hark uses IoT to help customers achieve this.

 1822 DENIM

The fashion industry is one of the biggest polluters on the planet, responsible for 10% of carbon emissions. Textile manufacturing company 1822 Denim is simultaneously championing inclusivity while conducting business with a lower carbon footprint.

Leading EY’s diverse and carbon-neutral workforce with AI EY’s Sai Yadati, Principal of Advanced Manufacturing and Mobility Sector and Sustainability Leader, has nearly three decades of experience in manufacturing management consulting. Yadati landed at Ernst & Young Global Limited — more commonly known as EY — to uplift ESG and make the changes he wanted to see. EY was founded in London, England, in 1989, and provides services across law, tax and more. EY is committed to helping others reach their sustainability targets. “I moved to EY for the changes — to do something about the emissions and to look at how we, as leaders, can think more strategically about ESG goals. Five years from now, I want to look back and know I made an impact.” “I am really excited to take on these problems. We are going to tackle them,” says Yadati. “At EY, we are the leaders in sustainability.”

 GENERAL MOTORS

Car manufacturer General Motors has invited its global suppliers to join it in a commitment to carbon neutrality, the development of ESG initiatives and sustainable procurement across the supply chain. EcoVadis will monitor the impact.

 SHANGHAI MANUFACTURING HUB

COVID-19 has caused a city-wide lockdown for the coastal city of Shanghai. Many manufacturing businesses have been shut, with workers unable to work from home and supply chain analysts unsure of the future.

 VOLKSWAGEN GROUP

After Russia invaded Ukraine, businesses were quick to voice opposition to the war. Volkswagen Group announced that it would stop building cars at its Russian factory in Kaluga, which employs 4,000 people.

W I N N E R S JUN22

L O S E R S

manufacturingdigital.com

TIMELINE A HIST RY of VACCINE

MANUFACTURING Vaccines contain weakened forms of germs from a particular disease, although they do not cause the illness they seek to protect the patient from. Instead, vaccines train the immune system to recognise specific pathogens and create antibodies to fight them.

200BC

1718

1757

Inoculation begins in China

Informal variolation in Constantinople

Edward Jenner uses cowpox to vaccinate against smallpox

Smallpox devastated humanity for centuries, killing more people than the Plague. First records of a vaccine come from ancient China. Physicians manufactured the smallpox vaccine by grinding up scabs from a smallpox patient and instructing those who had not caught the disease to inhale them. 16

June 2022

While travelling through Turkey, Lady Mary Wortley Montagu heard about variolation campaigns and how they were very informally manufactured: “An old woman comes with a nutshell full of smallpox matter. She puts into the vein as much venom as can lie upon the head of her needle.”

Jenner heard milkmaids had immunity to smallpox, as they’d already had cowpox. Jenner took a sample of cowpox from a milkmaid’s hand and applied it to 8-yearold James Phipps’ arm. James developed a fever but fully recovered.

2020

2022

The UK manufactures the first COVID-19 vaccine

Preparation begins for the next pandemic and the next vaccine

90-year-old Margaret Keenan received the first PfizerBioNTech COVID-19 vaccine, in Coventry, UK. There are 40 Pfizer-owned vaccine manufacturing sites and over 200 suppliers across the world, with Pfizer manufacturing 200mn doses of Pfizer vaccines each year and being one of the biggest sterile injectables suppliers globally.

In preparation for the next pandemic, pharmaceutical company Sanofi is investing €900mn in two new vaccine manufacturing facilities in France and Singapore, known as Evolutive Vaccine Facilities (EVFs). BioNTech and Hilleman Laboratories will be in charge of manufacturing the vaccine, whenever the next pandemic occurs. manufacturingdigital.com

TRAILBLAZER

JAMNALAL BAJAJ: THE FOUNDER of one of India’s top manufacturers and Gandhi’s adopted 'FIFTH

SON'

The legacy of Jamnalal Bajaj, founder of Bajaj Group, includes India’s most popular motorcycle exporter, Bajaj Auto Ltd

there as ‘The World’s Favourite Indian’. Two out of every three bikes sold internationally bear the iconic Bajaj badge.

Manufacturing legend The Bajaj Group was founded by Jamnalal Bajaj in 1926, after Bajaj inherited his grandfather’s business at the tender age of seventeen. He acted with a surprising level of maturity, networking with his peers to learn what he could about the business world. Bajaj invested in the cotton manufacturing industry with great success. The Bajaj Group soon expanded into a managing agency, as well as a manufacturer of small electronics, such as lamps and fans. The Bajaj Group later entered the iron and steelworks market. Three years after Bajaj died, Bajaj Auto was founded to manufacture motorcycles and is now India’s top motorcycle exporter, widely known

Teaming up with Gandhi Decades before ESG would become the cornerstone of business, Bajaj controversially stood fast in support for girls education, gender equality and the emancipation of the Harijan caste (also known as ‘Dalit’ or ‘untouchables’), whom he welcomed into his family-owned temple. This was an enormous gesture, as it very rare for the minority – and sometimes terrorised — community be invited into a temple. Bajaj also championed high quality business ethics and fair trade, with a focus on the common good over advancing his personal wealth. He also supported Indian independence from Britain,

amnalal Bajaj, 1889 - 1942, was an industrialist with a heart for ethical practices in a free India.

June 2022

“ Honesty over profits, action over words, and common good over personal gain.” ©

A M N J L BA J

IT O N A U FD

H T E CH M A IN E M A K E R

rejecting the titles of Honorary Magistrate and Rai Bahadur offered to him. This led Bajaj to meet Mahatma Gandhi, leading to the two becoming firm friends. The enduring legacy Jamnalal Bajaj After Bajaj died, Gandhi told mourners that Bajaj had adopted him as a father. In 1970, Bajaj was celebrated by the Government of India with a commemorative postal stamp. In the Constituent Assembly of India in 1949, the use of the term ‘Harijan’ was declared illegal – although, sadly, discrimination still persists. Each year, The Jamnalal Bajaj Awards honours Bajaj's philanthropic ideals with four awards that recognise the development of rural communities across India, including marginalised communities, such as the formerly ‘untouchable’ Harijan. manufacturingdigital.com

FIVE MINUTES WITH...

PAUL PO FOUNDER AND CEO

Paul Powers finished homeschool and went onto become a Forbes' 30 under 30 for his work on 3D modelling. Headquartered in Columbus, Ohio, Physna supports engineers and designers who want a more efficient way to manage their databases.

Q1 TELL US ABOUT YOUR ROLE AT PHYSNA

» “Physna, short for ‘Physical DNA’,

is a geometric search platform. Our software is able to understand 3D models based on their geometry. We turn that geometry into a unique code that represents that model, like DNA. This allows us to match geometrically similar models. Before Physna, there were some tools out there that tried to do geometric search, but it was rudimentary. “We enable people to innovate faster, by bridging that gap between the physical world that we live in, and the digital one that we work in.” 20

June 2022

OWERS “ I FEEL LIKE EDUCATION ISN'T SO MUCH ABOUT WHAT YOU LEARN, BUT MORE ABOUT HOW YOU LEARN” manufacturingdigital.com

FIVE MINUTES WITH...

Q2 TELL US ABOUT YOUR EDUCATION AND CAREER PATH…

Q5 WHAT HAS BEEN YOUR GREATEST SUCCESS SO FAR?

learning German and going to law school there. I chose that path because I feel like formal education isn't so much about what you learn, but more about learning how to learn. A really effective way to learn how to learn effectively is to study law in a foreign country and a foreign language!”

are when I see that I've created value for people.”

» “I ended up going to Germany,

Q3 HOW CAN ENGINEERS AND DESIGNERS MAKE THEIR DATA WORK MORE EFFICIENTLY?

» “One of the biggest struggles

we see for mechanical engineers and the data they’re working with — 3D models — is that they’re at a disadvantage compared to software engineers. Physna set out to fix that problem. We make hardware engineers’ jobs easier and more efficient. When engineers and designers use Physna, they're able to search their entire database. Not just with text queries; they can also search with a 2D image — like a sketch, a blueprint, a picture — or a 3D model itself.”

Q4 YOU MADE FORBES' 30 UNDER 30. HOW DID THAT FEEL?

» “The real value to me and what

made me feel good about it was that it just added more validation that what we're doing at Physna is important.”

June 2022

» “The proudest moments I have Q6 WHAT HAS BEEN YOUR BIGGEST LESSON?

» “That people are everything. Even

with a software company like we have, your success in many ways can ultimately come down to who you surround yourself with.”

“AT PHYSNA, WE ENABLE PEOPLE TO INNOVATE FASTER, BRIDGING THAT GAP BETWEEN THE PHYSICAL WORLD AND THE DIGITAL ONE”

manufacturingdigital.com

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Hair

THE

IMPORTANCE OF SUPPLIERS IN THE MEDICAL

INDUSTRY WRITTEN BY: GEORGIA WILSON PRODUCED BY: MIKE SADR

June 2022

WERFEN

manufacturingdigital.com

WERFEN

Don Perigny, Senior Manager, Global Procurement, Werfen discusses the significance of longstanding suppliers to navigate the complex medical device industry

oining Werfen in 2003 as Senior Manager, Global Procurement, Perigny today holds the position of Director of Strategic Procurement and Supply Chain Compliance. Loving what he does for a living and the great company that he works for, Perigny explains that he doesn’t compare himself with other professionals. “I always want to be in the middle of it, pushing buttons - that’s what makes me tick,” he says. “I think the old athlete in me is what drives me; I want to be the go-to guy, the guy out there on the pitch.” Being a part of Werfen for almost 20 years, Perigny explains that, in that time, the organisation has evolved from one that had 10 suppliers with whom they spent more than US$100,000, to having over 50 suppliers that the company spends more than US$1mn with. “That’s huge growth,” says Perigny. Over the years, Werfen has continued to add new policies and governance to ensure optimal quality in the manufacturing process: “Today, we have very strict requirements for installation qualifications (IQ), operational qualifications (OQ) and performance qualifications (PQ).,” explains Perigny. “We are in an environment where minimising risk is essential, so we continuously ensure that our processes are tight and stringent. Operational 28

June 2022

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WERFEN

“ BEFORE THE PANDEMIC, WE THOUGHT WE WERE BUSY; BUT, ONCE IT HIT, OUR DEFINITION OF BUSY CHANGED” DON PERIGNY

DIRECTOR, STRATEGIC PROCUREMENT & SUPPLY CHAIN COMPLIANCE, WERFEN

excellence is our mandate. Data drives us.” Procurement challenges for the medical device industry When it comes to procurement, Perigny explains that the days of pounding your fist on the desk and demanding suppliers bow to your every whim are long gone thankfully something that was never his approach, anyway. “We don’t have vendors, we have suppliers,” he says. “In baseball terms, a

vendor is the van outside selling hotdogs; we want our partners to be an extension of our company, and I think this approach has driven our success.” Like many other organisations, 2020 saw Werfen go head-to-head with its greatest challenge yet: COVID-19. “Before the pandemic, we thought we were busy; but, once it hit, our definition of busy changed,” says Perigny. “Much of this was due to a loss of the control we previously had on our procurement process. We had to compete for labour with our suppliers, and as the pandemic rolled out across the world, we faced this over and over, due to our global supplier base.” manufacturingdigital.com

WERFEN

Title of the video

He adds: “Many companies were forced to close with little notice, and every country dealt with it slightly differently - from Europe to Mexico, to Canada, to the United States. And by 2021, we weren't only competing for labour, we were competing for virtually every part. Suppliers were constantly de-committing, and without notice.” Perigny emphasises that the strength of the relationships Werfen built with its suppliers was a key differentiator. “Many manufacturing companies in the US particularly the Northeast - were forced to close because they simply couldn’t get the materials needed to maintain their manufacturing. But we didn’t stop. It was a significant challenge, a lot of late nights, weekends, and no vacations, but we made it,” says Perigny. He adds: “Instead of focusing on ‘here’s 32

June 2022

why we can’t', we focused on ‘here’s why we can', and that positive focus was huge. But ultimately, getting ahead of those material issues is what really made us successful. We jumped on the shortage issues as soon as they surfaced.” Werfen and its suppliers When discussing suppliers at Werfen, Perigny stresses that “I always see our suppliers as a part of the Werfen family - I truly believe that we are in this together”. When it comes to finding the perfect supplier, he explains the importance of due diligence first. Are they legitimate? Are they ISO-approved? Who are their customers? What is their reputation? “Once your due diligence is completed, it is important to determine whether a potential supplier can meet the business’s

WERFEN

Don Perigny TITLE: D IRECTOR, STRATEGIC PROCUREMENT & SUPPLY CHAIN COMPLIANCE INDUSTRY: HEALTHCARE

EXECUTIVE BIO

LOCATION: USA Graduating in 1999 from the University of Massachusetts Lowell in Business Management, Don Perigny is the current Senior Manager, Global Procurement at Werfen. Perigny is a proudly married father of three, who transitioned from a career as a professional athlete, into the corporate world. Perigny describes how he found himself in the medical industry as “getting lucky.” Prior to working at Werfen, Perigny worked for two organisations KLA-Tencora and Imaging Automation as a Materials manager. Perigny describes himself as an experienced global strategic procurement professional with a demonstrated history of working in the medical device ISO/IVDR/ MDSAP regulated industry. His skills include: purchasing, supplier management, analytics, medical devices, Lean Six Sigma (LSS) Green Belt Certified and Project Management Certified.

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WERFEN

“ I ALWAYS SEE OUR SUPPLIERS AS A PART OF THE WERFEN FAMILY - I TRULY BELIEVE THAT WE ARE IN THIS TOGETHER” DON PERIGNY

DIRECTOR, STRATEGIC PROCUREMENT & SUPPLY CHAIN COMPLIANCE, WERFEN

quality expectation all day, every day, every year,” explains Perigny. “And, can we get that written down in a quality agreement?” He adds: “Change management is hugely important in the medical industry; even simple changes that may be insignificant to a supplier can be catastrophic to us. Any change could be a big change. So, it’s important for companies to ensure they have written agreements with their suppliers to ensure that no changes will occur without notification and approval.” Other key factors for Werfen when selecting suppliers include whether they will allow Werfen employees or a thirdparty regulatory body to conduct audits

manufacturingdigital.com

WERFEN

WHO IS WERFEN? Founded in 1966, Werfen is focused on Specialised Diagnostics. “We develop, manufacture and distribute instruments, reagents and data management solutions for Hemostasis and Acute Care and Autoimmunity diagnostics,” says Perigny. Werfen is currently the number one company in the Hemostasis testing market, with eight production lines, and a leader in the Acute Care testing market with three production lines. Perigny explains: “Our Hemostasis lines comprise very large instruments for hospital laboratories, while our Acute Care systems are smaller, designed for use at the hospital point

of care. Last year, we shipped 7,700 instruments and almost 700,000 cartridges, a consumable for our blood gas testing systems.”Not only is Werfen a US $2bn company, but last year the company achieved 11% growth. “During the pandemic, when other companies weren’t facing supply-chain issues, failure was not an option for Werfen - we were passionate and dedicated to ensuring a continuous supply of products to our customers,” added Perigny. Werfen’s core mission: Using its passion and long-term vision, Werfen strives to develop meaningful innovations that truly enhance patient care and help to create healthier societies worldwide.

manufacturingdigital.com

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WERFEN

at their locations, as well as their longterm partnership potential. “I don’t like switching suppliers; validation of new suppliers requires significant time and is a costly process. So we look for long-term partners,” says Perigny. Werfen’s ‘newest’ suppliers have been working with the company for five years, while its ‘oldest’ suppliers have worked

with Werfen for 40 years. “On average our suppliers have a 24-year business relationship with us,” says Perigny. “They have been with us for a long time, they all know us well and they know how to work with us.” Every year, Werfen conducts a group supplier meeting either on location in Bedford or in recent years, virtually. “This meeting gives us the opportunity to update manufacturingdigital.com

WERFEN

our suppliers on our current operations, as well as receive updates from them on new improvements and capabilities. We discuss our five-year plan and make our suppliers a part of it,” says Perigny. He adds: “On top of that, we have a supplier portal where they can see their real-time delivery performance and quality performance, and access non-conforming reports. Additionally, we have a complete supplier engineering team available to answer suppliers’ calls, ensure clear communication, and provide support. It’s a teamwork approach. There’s a lot of work that goes into it, but the results speak for themselves.”

June 2022

manufacturingdigital.com

Aiimi’s Head of Solution Engineering Matt Eustace on Risks Aiimi utilises AI to provide businesses insights that eliminate risks – including how to manage sanctioned individuals in your supply chain WRITTEN BY: HELEN ADAMS

n recent months, global supply chains have been forced to make a radical reshuffle. Hours, even days, have been spent reading through data, checking for potential risks. It’s something Matt Eustace, Aiimi’s Head of Solution Engineering, has seen before. “I've been in the manufacturing world a long time, and one thing at the moment that is quite relevant is to look through things like contracts and CRM systems for sanctioned individuals or embargoed countries,” explains Eustace. “You can look through all of your contracts and see where your supply chain will be impacted by countries that might have embargoes or sanctions against them. You can identify how many degrees of separation you've got from your primary activities.” Founded in 2007 and headquartered in London, Aiimi is safely out of reach – by several degrees of separation – of any sanctioned individuals. In fact, the typical Aiimi employee is described as having ‘brains the size of a planet with the personality of a Labrador’. The IT company uses AI to offer customers a more efficient way to unearth intelligent insights from their torrents of information. Eustace joined the company in 2013 while on a unique career path that seems to confirm the labrador comparison. 42

June 2022

CLOUD & EDGE

manufacturingdigital.com

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CLOUD & EDGE

“You can look through all of your contracts and see where your supply chain will be impacted by sanctions” MATT EUSTACE

HEAD OF SOLUTION ENGINEERING, AIIMI

“My journey has been a bit of an interesting one – I started out studying photography! In the 1990s, I started working with a computer centre and ended up managing the logistics for all of their IT repairs and engineering teams. I went into networking and ended up in European IT management for the insurance industry. In China, I ran a research and development centre for web developers which was absolutely brilliant, then I moved back to the UK and became a part of the management buyout team at Aiimi.”

In his role, Eustace looks after pre-sales and the content management practice. “I keep getting asked if that is web content – it's not, it's management of all documentbased data,” explains Eustace. “Aiimi is an organisation that works to put people in better contact with their information. We predominantly work on data management, data strategies and implementing data platforms prudently in the cloud. We are also focused on everything to do with insight engines.” manufacturingdigital.com

CLOUD & EDGE

How insight engines can support the manufacturing sector According to Eustace, insight engines can improve data governance and regulatory compliance for manufacturing organisations. “They give you the ability to look at very large sets of information and pick out specific pieces of information from those datasets,” explains Eustace. “As an example, if you are designing something for manufacturing and you're looking for approval from a regulator before you put that piece of equipment into production, it might need to go through regulatory approval. “So, for instance, if you're working in the nuclear industry, you would need to go through health and safety approvals. One of the things that insight engines can do is to look at the regulatory frameworks at some of the key things: topics, words and phrases that have been mentioned in the regulation. You can look for those same pieces of information in your regulatory submissions and then highlight where there are things that are missing from real submissions. “I'm at the regulators' point of view. I've got quite a problem navigating the regulatory framework for manufacturers who want to come into the UK at the moment, because you've got to go to different places to get that information. It's a lot to consume. “As a manufacturer who wants to come to the UK and invest over here, understanding what the regulation is that applies to you specifically in the goods that you want to manufacture here could be quite challenging.” Intelligent insights can eliminate potential risks Eustace knows that another more generic example to look at is modern privacy. 46

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“ Aiimi is an organisation that works to put people in better contact with their information” MATT EUSTACE

HEAD OF SOLUTION ENGINEERING, AIIMI

CLOUD & EDGE

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Employees The technology company is working with several UK government departments, helping them to adopt new strategies to become more agile, manage their data and information, and harness new and intelligent insights.

“This is not necessarily just manufacturing focused,” explains Eustace. “One of the things that we spend a lot of time doing is helping organisations understand where their personal data is and also consumer credit information. That's data belonging to both customers and employees. What you can do with an insight engine is get it to continuously look at all the data that an organisation holds and evaluate the risks associated with that information. Does it contain a lot of sensitive information? Does it contain information about lots of different people? Is there any special category of information in there, such as medical information, gender, those kinds of things? So you might want to go and tighten up on the security controls or train people not to save that information in these locations. “You can extend that out as well, more specifically around manufacturing. You can use insight engines to pick up where people are making copies of product information or intellectual property rights. You’ll want all of your intellectual property in a very well controlled, well managed place so that it's not leaked.” If a business does get into an unfortunate situation where they have a security breach of some kind and information is leaked, Eustace has some advice. “Understand whether any of that intellectual property was in the area that’s been breached. Insight engines can basically tell you where that kind of information is, so that you can proactively secure it better,” he explains. “Or, alternatively, if you know you've lost something, it will tell you this was in this area and that's what you've potentially had breached. The next step is to try and remedy that. I think those are probably some good risk examples.” manufacturingdigital.com

DESIGN & MANUFACTURE REPORT:

Sustainable supply chains are in SAP’s DNA 48

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SAP REPORT

EXECUTIVE INTERVIEW

Sustainable supply chains are in SAP’s DNA Sustainability - from a product’s conception to its recycling is baked into SAP’s enterprise software application solutions

or some time, sustainability has been gaining traction as a corporate aspiration. But following COP26 in 2021 the drive towards net zero carbon emissions by 2050 was enshrined in law by most nations in the developed world, making sustainability a mission critical business goal. At the sharp end, helping make today’s businesses more sustainable, is SAP. SAP has made sustainability integral to its solutions, so that businesses can think green and behave green, from one end of the supply chain to the other. “The supply chain encompasses every part of the process, all the way from design and manufacture to planning, logistics and asset and service management,” says Martin Barkman Senior Vice President, Global Head of Solution Management, Digital Supply Chain at SAP. “Not only does each of these directly impact sustainability, but they’re also interrelated.” 50

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This is why SAP solutions are designed to work at every stage of a product’s life cycle - from how it is conceived to how it is recycled. SUSTAINABLE SUPPLY CHAINS, FROM DESIGN TO OPERATION Barkman says that on sustainability, SAP solutions can be categorised broadly as enablers of:

MARTIN BARKMAN

• The drive toward lower or zero emissions • The drive towards zero waste • The drive towards a circular economy • The drive towards zero inequality Barkman and his global team help businesses across all sectors worldwide keep sustainability top of mind every step of the way, from product concept to product consumption; and to re-use as part of the circular economy. SAP does this by making sustainability a focus in how products are designed, manufactured, moved, and used.

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“If you think about how a product is going to be manufactured when you design it, then that’s a much better and more holistic approach,” says Barkman. A properly designed product will impact how sustainably that product can be manufactured.” Not just how it is manufactured, either, Barkman reminds us, but also how a product is distributed, used, and recycled. “Design can impact the cost of logistics, and ultimately also how the customer experiences the product, and how that product is recycled, reused, or returned to the earth,” he adds. How SAP is able to bring together the stages of design, planning, production, distribution and operation - and digitalise those processes and allow them to operate continuously with each other - “is particularly interesting to me,” Barkman says.

A properly designed product will impact how sustainably that product can be manufactured He adds: “For example, when you design a product, how do you design with sustainability and the circular economy in mind? You have to think about whether the raw materials can be reused, or at least if they are biodegradable? “Then, when it comes to manufacturing, you want to know you’re making it in the right place - that you’re not generating too many emissions by transporting the raw material. Are you generating too much waste in the manufacturing process, and ensuring the health and safety of the workforce?” OVERCOMING THE CHALLENGES OF SUSTAINABILITY IN MANUFACTURING The manufacturing process also poses sustainability challenges, says Barkman: “You have to be smart about keeping equipment properly maintained and serviced, so that you’re not constantly replacing and disposing of components. The aim is to extend the life of all of your supply chain assets.” He adds: “It can get complex, which is why SAP solutions are absolutely geared towards helping companies navigate through all of this, to make sure they’re always headed in the right direction.” manufacturingdigital.com

SAP REPORT

On the ground, SAP solutions help businesses make sustainable decisions in practical and profitable ways. SAP has software that allows companies to design and produce products in an environmentally responsible way, by helping them manage exactly what needs to be in any given product’s bill of material.

“A business may need to make a change to a product’s bill of material,” says Barkman. “We can help them WATCH: make that change at the design stage, DIGITAL and then translate this into a bill of SUPPLY CHAIN material for the various manufacturing SOLUTIONS steps. If a business can do this digitally, more or less on an ongoing basis, then that’s going to drive both productivity, profitability, and sustainability to a whole new level.” Other SAP solutions are allowing companies to take carbon-emissions tracking to the next level, says Barkman. “We have software applications that allow companies to manage the environment, health and sustainability of their operation in the best possible way,” he explains. “We’re bringing sustainability KPIs into our applications.”

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DESIGN & MANUFACTURE

GRAND AMBITIONS AROUND SUSTAINABILITY CAN BE A CHALLENGE When it comes to embedding sustainability into company-wide processes surely there are challenges? Changing regulations from country to country, for example. “Of course, we want to ensure our customers have the right tools, processes, and systems to be in compliance with regulations,” says Barkman. “But in some ways, it’s gone way beyond regulations. The journey into sustainability kind of began with that base level of regulations, and these don’t really change.” Now, he says, the real challenge is more about keeping up with customers’ ever-more ambitious sustainability goals, while maintaining profitability. “The United Nations has set some pretty top-level sustainability goals, and many of the businesses we meet have rigorous aspirations and goals for how they want to operate, and how they want to help lead us towards a more sustainable world. I’d say that the real challenge is how we lead these companies towards those noble, but high-level, goals.” Sustainability is complex, rewarding work for SAP, but Barkman says the tech that underpins its solutions has a paradoxical tinge. He cites the pandemic e-commerce boom, which has seen a global shift away from in-store purchases to omnichannel-driven e-commerce. “The technologies that are helping drive us towards sustainability are the same ones that are enabling consumers

MARTIN BARKMAN TITLE: SENIOR VP, SAP DIGITAL SUPPLY CHAIN SOLUTION MANAGEMENT GLOBAL HEAD Martin Barkman is senior vice president and global head of marketing & solutions for digital supply chain at SAP. Martin’s global organisation leads marketing, strategy, and growth initiatives for SAP’s Digital Supply Chain solution portfolio, which encompasses software for R&D, engineering, supply chain planning, manufacturing, logistics, and asset management. These solutions enable resilient and customer centric supply chains that are more agile, productive, connected, and sustainable Martin joined SAP in 2013 following SAP’s acquisition of SmartOps Corporation, where Martin served as the Chief Executive Officer. In his career, Martin developed a broad supply chain technology and management experience through roles ranging from corporate strategy consulting at McKinsey & Company to product supply and manufacturing management at Procter & Gamble.

SAP REPORT

to behave in ways that aren’t so sustainable,” he says. “People sitting at home ordering one thing after another to be shipped to their doorstep in a way that involves multiple journeys is not the most sustainable way to do things.” He adds: “The pandemic changed many things for consumer packaged goods companies and of course retailers, and the key question now is whether we are going to continue buying the products online at the same rate, or if that will change, like it was showing signs of doing prior to the pandemic.” Outside of e-commerce, Barkman says there are other factors posing sustainability challenges. “Different industries are facing many different challenges these days, of which sustainability is but one thrown into the mix. The ultimate aspiration is creating resilient customer-centric and sustainable supply chains. I think different industries and sectors will take different routes and paths towards this.” NET ZERO IS CHANGING THE WAY BUSINESSES SEE THEMSELVES Beyond the paradox of technology, there are other philosophical elements

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to the global drive towards net zero, says Barkman - namely, the way sustainability is changing how companies view themselves. “There was a time when the only school of business thought was that companies exist for the sole and exclusive purpose of driving value for shareholders,” he says. Economics and sustainability have usually been at odds, admits Barkman, but adds that he is now seeing a “coming together” on this front. He says that this most often manifests in corporate goals and mission statements coupled with real innovation that is profitable because it facilitates sustainability. Consumers and customers will expect it, and so that is how sustainability in the end leads to shareholder value. “Increasingly, these are not limiting what corporations are setting out to do,” he says. “Businesses are still taking care of stakeholders but by driving strategy that in part has a vector specifically aimed at and around sustainability. In fact,

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investors are putting their money into companies that can show that they are both sustainable and profitable.” While businesses are undoubtedly moving towards their net zero goals, are they being pushed by the court of public opinion into doing so at a rate that will prove unsustainable for many? “Sustainability is an area of innovation,” he says. “As such it’s going to draw new investment and new areas of focus. There will be some amazing successes, and there’ll be those who struggle and perhaps those who fail. That is expected.” He adds: “That’s actually a sign of something positive happening. That means risk is being taken. Things are being tried. It shows that businesses are stretching the limits of their imagination and capabilities, and in many cases, the failures will provide the largest source of continuous learning.”

Businesses want to feel good about what they do and how they do it. We can help them with this As for the biggest barrier to sustainability, Barkman feels this is “information, collaboration and visibility”. “These are the priorities,” he says. “Companies want to go on this journey but what they find difficult is how to get started in a meaningful way? How do you do something with all this information?” He adds: “In many cases, people will know what should be done, but putting this into action can make them feel like they’re stuck in the starting blocks. Once they start working around visibility across the end-to-end supply chain, though it soon becomes clear that it’s data where you begin.” But the need for businesses to embark on sustainability transformation programmes will only ever grow more pressing, says Barkman. “Consumers want the companies, products or services they purchase and interact with to be sustainable,” he says. “Increasingly the products people purchase are being looked at through the lens of sustainability. I see a lot of companies making this central to what their value proposition is, as they are driving innovation. At the end of the day, businesses want to feel good about what they do and how they do it. We can help them with this.” manufacturingdigital.com

EY’S DIVERSE AND CARBONNEUTRAL WORKFORCE WITH AI LEADING

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SUSTAINABILITY

EY’s Sai Yadati, Principal of Advanced Manufacturing, leads sustainability initiatives across the business using AI to reduce waste and increase ESG

WRITTEN BY: HELEN ADAMS

SAI YADATI PRINCIPAL OF ADVANCED MANUFACTURING AND MOBILITY EY

Y’s Sai Yadati, Principal of Advanced Manufacturing and Mobility Sector, as well as Sustainability Leader, has more than 27 years of experience in manufacturing management consulting — which is why he came to work at EY. “I’ve been in consulting for years, working across manufacturing, finance and accounting,” explains Yadati. “When I came to EY in 2021, I was looking to do more interesting things.” Fluent in English, Hindi and Telugu, Yadati has studied widely. He completed his Bachelor of Engineering in electrical engineering at Osmania University in Andhra Pradesh, India, 1988-1992 and then went on to secure his Masters Degree in Computer Engineering at Wayne State University in Detroit in 1994. Yadati then started working at Ford Motor Company for eleven years, followed by working at IBM for the next 15 years. Yadati landed at Ernst & Young LLP, more commonly known as EY, to uplift ESG and make the changes he wanted to see. “I moved to EY for the changes — to do something about sustainability more broadly and to look at how we as leaders can think more strategically to help our clients achieve their ESG goals. Five years from now, I want to look back and know I made an impact.” EY was founded in London, England, in 1989, offering services across consulting, law, tax and transactions. The company now manufacturingdigital.com

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SUSTAINABILITY

“FIVE YEARS FROM NOW, I WANT TO LOOK BACK AND KNOW I MADE AN IMPACT” SAI YADATI PRINCIPAL OF ADVANCED MANUFACTURING AND MOBILITY, EY

rakes in US$40bn in revenue, with its 312,200 employees working across the globe. Like many businesses, EY has firmly planted sustainability at its core and is committed to helping others do the same. EY’s ‘Value-Led Sustainability’ is a way to create new sources of value – for businesses and the world. Improving sustainability and reducing waste at EY Yadati left India in 1992 and went to study in the USA, where he and his family have now settled in Detroit. Keeping the planet cool is one of Yadati’s many goals. When the UN released its latest IPCC Climate Report, Yadati was

not surprised at the evidence showing: “Global warming of 1.5°C and 2°C will be exceeded during the 21st century, unless deep reductions in carbon dioxide (CO2) and other greenhouse gas emissions occur in the coming decades.” “It’s pretty obvious that we must continue to invest in sustainability and in technologies that would accelerate our means to achieve these goals, including but not limited to carbon sequestration and capture,” says Yadati. In October 2021, EY reached carbon neutrality. This was a major milestone in EY’s sustainability journey, but not the final step on the company’s path to reach net zero manufacturingdigital.com

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SUSTAINABILITY by 2025. To become a carbon negative organisation, EY has invested in carbon removal projects with South Pole, a global climate solutions provider. The portfolio includes global carbon removal projects including reforestation, regenerative agriculture and forest conservation. These projects will either remove or offset 528k tonnes of CO2e, covering 134% of EY’s FY21 footprint. AI and ESG are a good business match AI is playing a huge part in EY’s climate ambitions. “We must use advanced AI for improving assets performance both in manufacturing and field services. AI helps us, for example, find out when you need to remove an item before something falls apart – and this will reduce waste,” explains Yadati. “The time to take action is now.”

“AMERICAN COMPANIES NEED TO THINK ABOUT HOW TO MANUFACTURE PRODUCTS IN A SUSTAINABLE WAY” SAI YADATI PRINCIPAL OF ADVANCED MANUFACTURING AND MOBILITY, EY

Waste is a huge problem for sustainability in manufacturing. The World Bank estimates that industrial waste is almost 18 times higher than municipal solid waste and it all ends up somewhere. Sometimes wasted manufacturing items can be reused or repurposed, sometimes they end up in landfill. At EY, AI is viewed as a tool with the power to change society, by crossing human genius with problem solving. For example, AI is used to measure KPIs for ESG risks and reporting and to improve performance, especially when used alongside other technologies, manufacturingdigital.com

“ I AM REALLY EXCITED TO TAKE ON THESE PROBLEMS. WE ARE GOING TO TACKLE THEM” SAI YADATI PRINCIPAL OF ADVANCED MANUFACTURING AND MOBILITY, EY

such as data analytics, which helps break down useful data into digestible chunks. It can, for example, catalogue vast quantities of data – such as sources of pollution or waste management – to help Yadati make sense of it and how best to act upon the data. “We are positioned to help our clients with AI and this is going to be the new normal,” says Yadati firmly. “Waste happens if you don’t have the best AI.” Wasted talent is another thing EY steers away from. One of EY’s co-founders, Arthur Young, practised courtroom law until he became deaf and lost much of his eyesight. But crisis often spurs innovation – and this disability forced Young to think differently. He decided to move into finance and later set up EY. From the start, EY has been inclusive of employing those who have disabilities and guides other employers into hiring a diverse workforce. Yadati believes that American businesses need to act on their ESG commitments. “To 62

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take a critical look – and walk the walk,” he says. “American companies need to think about how to manufacture products in a sustainable way and to be responsible.” The future at EY EY was recently awarded Global Partner of the Year for Innovation, Asia-Pacific Partner of the Year and Delivery Admiral Partner, by identity security company SailPoint Technologies Holdings, Inc. This was a proud moment, but not one for a pause. The glass is always half full says Yadati proudly. “We are the leaders in sustainability. I am really excited to take on these problems. We are going to tackle them, not as a one-on-one, but as an ecosystem. Clients now need to work with their suppliers. AI can’t do it all – the consumer will do it because they have the power.” EY is here to help clients walk the sustainability walk – but it’s going to take all of us.

SUSTAINABILITY

manufacturingdigital.com

PLANNING & SOURCING REPORT:

SAP makes sustainability a question of planning 64

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manufacturingdigital.com

SAP REPORT

EXECUTIVE INTERVIEW

SAP makes sustainability a question of planning

SAP’s Integrated Business Planning software solution is helping businesses make sustainability part of the fabric of their enterprise-wide operations

he age-old adage, ‘Fail to plan, plan to fail’ has never been more true for those in charge of today’s disruption-hit and unpredictable supply chains. In truth, an agile approach to supply chain planning has always been a prerequisite for any efficient and cost-effective supply chain. It’s just that in today’s pandemicshaped world the density of disruptions to both demand and supply - and the structural integrity of global supply chains - rapidly evolved and accelerated the adoption of digital technologies. One man who knows better than most just how far the planning needs of businesses have evolved is David Vallejo, SAP’s Global Head of Digital Business Planning Vice President. Vallejo runs solution management for digital business planning at SAP, whose Integrated Business Planning software solution is a market leader in this area. 66

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DAVID VALLEJO

“I’ve been in supply chain planning all of my career,” says Vallejo. “The reason I moved to SAP was I saw the exciting work it was doing in moving supply chain planning into the cloud.” Sustainability is a key area that Vallejo and his team are helping businesses plan around - particularly in terms of how to balance sources of supply. With 80% of a company’s carbon footprint being Scope 3 emissions from its supply chain, this is a vital area. “Sustainability starts with product design, and this then feeds into the manufacturing and logistics processes. Planning is the intelligent brain that holds these areas together to attain the desired business outcomes,” says Vallejo. “Have you designed a product that contains elements or components that are bad for the environment, or have you set it up to be recyclable,

PLANNING & SOURCING

Sustainability starts with product design, and this then feeds into the manufacturing and logistics processes

to support the circular economy? This is a key question when planning new product launches for example.” PLANNING COMES INTO ITS OWN WHEN FACED WITH TOUGH CHOICES “It’s a question that feeds into others,” says Vallejo - such as whether a company is transporting lots of raw materials from around the globe. “The strength of sustainability planning comes into its own when there are marked alternatives.” manufacturingdigital.com

SAP REPORT

“Do you use suppliers in China for raw materials, or local suppliers, for example?” he asks. “There will be a price difference for sure, but also a huge sustainability difference, because one will probably involve air transport. Planning can help with making sustainability decisions like this.” Sustainability measures are sometimes cast as being bad for the

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bottom line, but Vallejo says that being green and making money “often times actually go hand in hand”. DIGITAL He adds: “For example, I’ve worked with BUSINESS PLANNING a customer whose supply chain was set up with what’s called international direct ship. They were manufacturing electronic devices in China and packaging them ready for air shipment to the US market. “The business benefit of this is a two-day lead time from production to arriving in the US. The disadvantage is the huge environmental footprint of air versus sea transport.” Vallejo says that in situations like this, business planning helps balance transportation volumes with customer service and availability. “We helped this company balance profitability, sustainability, and customer

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service simultaneously. We helped them find a sweet spot whereby a certain volume goes by sea and a certain volume by air. It was a happy medium that allowed it to meet all of its goals.” The end result was that a lot more volumes could be shipped by sea which saves thousands of tons in CO2 emissions. HOW DOES SAP HELP BUSINESSES WITH EMISSIONS? Vallejo says that SAP business planning solutions help with emissions by encouraging companies to begin tracking data. “You can’t control anything you don’t track,” he says. “Everything in the supply chain is measurable and can be added into the planning environment. We encourage companies to think of tracking as being like a currency. You take all aspects of supply - transport, manufacturing, supplier footprint and you track it all. When you onboard a supplier it shouldn’t be just about product quality and price. There should also be sustainability questions included in supplier questionnaires.” He reminds us that this is not just for tier 1 suppliers, either - but also tier 2 and 3: “Who supplies your suppliers? This is where the technology is evolving, so that it can propagate information downstream in the supply chain, and create standard ways and best practices to onboard suppliers with a view to delivering more-sustainable output.” Having a sustainability dimension to data is something SAP takes very seriously. “This is exactly why we believe such data should be treated just like a

DAVID VALLEJO TITLE: SAP’S GLOBAL HEAD OF DIGITAL BUSINESS PLANNING VICE PRESIDENT David Vallejo is globally responsible for solution management and go-to-market for SAP’s Digital Business Planning portfolio which includes SAP’s cloud flagship SAP Integrated Business Planning (SAP IBP). David helped many global companies define and implement their strategy around Supply Chain Planning and Execution and has been honored with the “Prosto-Know” award in 2014 by the Supply & Demand Chain Executive Board. David held various leadership roles within SAP, before assuming his current role also driving the successful launch of Ariba’s supply chain business network focusing on Direct Materials collaboration across the extended supply chain and driving the customer co-innovation program as product owner for SAP IBP. Prior to joining SAP 8 years ago, David had several global leadership roles managing Customer Delivery, Solution Management and Product Management at E2open and icon-scm.

SAP REPORT

financial currency,” explains Vallejo. He adds that businesses are also coming to realise that sustainability is now mission critical, and that it can help them achieve their economic goals. “If it hits the news that your supply chain is not operating in a sustainable way this can have a tremendous impact on your brand, and a disastrous impact on the consumption of your products,” says Vallejo. “Businesses are beginning to realise there is a relationship between success and operating sustainably.” He adds: “Increasingly customers are looking for sustainable products and services. Over time it will be the norm for products to be labelled for sustainability in the same way they’re labelled for ingredients. Companies that take the view that being profitable is all that matters will eventually cease to exist.” 70

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OPTIMISING INVENTORY IS KEY TO BEING SUSTAINABLE Optimising inventory is another area in which SAP can help companies operate more sustainably. In today’s world, when it comes to inventory, the past can no longer be used to predict the future. “Inventory should be a function of how well you can predict both demand and supply,” points out Vallejo. “If it’s 100% predictable, in theory you can have no inventory at all. Everything can be just-in-time.” What SAP’s Integrated Business Planning solution does is help customers measure volatility, and it’s this that helps control spoilage and waste. Vallejo says: “We use a scientific method to right-size inventory across the supply chain, which we call multiechelon inventory optimisation. Companies have seen fantastic results using this technique. They’ve been able to reduce inventory, which not only lessens the drain on working capital but also reduces waste. This is especially important for products that can have a high carrying cost or deteriorate in value.

If it hits the news your supply chain is not sustainable it can have a big impact on your brand and on the consumption of your products

PLANNING & SOURCING

We use multi-echelon inventory optimisation to help businesses reduce inventory and cut waste “And let’s say a customer wants to change the formulation of a product. Here, they would want to know exactly how much inventory of the old product they have left before introducing the new product. Inventory optimisation can help tremendously in this way with reducing spoilage and waste in the supply chain.” Even in complex consumer-goods markets - where sales of one product might impact demand for the same company’s other products - SAP can help keep inventory on track in terms of carbon footprint - to manage those phase-in/phase-out processes. And thanks to better support of artificial intelligence (AI) these processes now happen in more real-time and low-touch. “Managing inventory for interrelated products can be a massive problem,” admits Vallejo. “This is where demand planning built on AI and ML comes in. We can use this tech to look at patterns and interrelationships between not only the products themselves but between the products and other factors, such as the economy, the environment and the market. One simple example

is how the price of steel and oil impacts the portfolio mix and prices in automotive prices.” AWARENESS THE BIGGEST BARRIER TO PROGRESS ON SUSTAINABILITY But of course, integrating sustainability into enterprise-wide systems and processes can be hugely challenging for companies. Often the biggest problem is one of awareness. “There is a lack of awareness of how important sustainability is as a planning discipline,” reveals Vallejo. “We often see companies create offline afterthe-fact sustainability reports - maybe on how they did on this front in the previous quarter. “The biggest challenge is making them realise that their sustainability

manufacturingdigital.com

SAP REPORT

SAP’s Integrated Business Planning software solution provides end-to-end supply chain visibility Today’s supply chains have become difficult to manage, due to unprecedented levels of demand and supply volatility, the rise of omnichannel, an increase in geopolitical uncertainty and the inability of siloed data to offer a holistic view of the supply network. SAP Integrated Business Planning (IBP) is a cloud-based planning solution that helps businesses analyse, manage and optimise their supply chain. It provides a single platform to analyse, predict and simulate the entire value chain to anticipate changes and respond with a resilient and sustainable action plan. With SAP IBP, the customer is able to manage multiple end-to-end processes in real time, by combining planning functions such as sales and operations planning, demand planning, inventory management, and supply planning fully integrated into financial planning, manufacturing, logistics and the SAP Business Network for trading partners. This cloud-based solution also allows companies to simulate the effects of customer demand on processes, in terms of capacity, cost and profitability. It can execute planning processes through real-time supply chain management, while allowing businesses to analyse data and generate real-time predictive and prescriptive analytics.

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goals must inform their decisions around supply chain planning. In logistics, an example this would mean deciding how much volume you send by boat, air, truck, rail.” “Sustainability is an awareness hurdle, but it’s not actually that difficult to incorporate into your planning. We’ve just released a carbon-footprint dimension across SAP Integrated Business Planning. Really now it’s all about awareness and training.” Of course, planning isn’t solely about sustainability; avoiding disruption is also vital. “To overcome disruption you need to be able to anticipate what could happen, what the impact would be and how you can be prepared to mitigate better,” says Vallejo. So for example, if you have a single-source supplier that’s performing well today, what if that supplier has a problem in the future? It’s the same if you use a single transportation route that’s critical for you.”

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To this end, he says what-if scenarios are key, because it means that before any disruption happens, there will be a response plan in place. “This is where planning can help tremendously, in terms of being prepared and, therefore, resilient,” says Vallejo. He adds that another important resilience-boosting aspect of planning is how it helps with supply chain response management, which is about responding better when disruption actually hits. “Remember, disruption isn’t always upstream, with suppliers,” Vallejo stresses. “It can also be downstream, with changes in demand or problems with transportation. Using real-time planning, you can see what the impact of such disruption will be, and figure out alternatives. You might reroute volumes, for example, or rebalance

I think we will see dramatic changes in the way products are designed inventory. All of these decisions need to happen instantly, and this is where a digital planning environment can help to synchronise decisions across finance, manufacturing, logistics and the business network in near real time. These are today’s problems, but in a forward-looking business such as SAP, experts like Vallejo always have one eye on the future. He sees big changes afoot in what it will mean for supply chains to be sustainable “I think we will see dramatic changes in the way products are designed,” he says. “Today, when you order things online sometimes the product is way smaller than the packaging it comes in. We’ll see reusable packaging that you can return for the next product to be shipped to you, for example.” And he believes some products themselves will change drastically. “Take detergent, such as shampoo. Up to 99% of shampoo is water, which is heavy and bulky to transport. Yet when you’re in the shower, you’re standing in water anyway. I believe shampoo will come in capsule form eventually. Previous generations might not have been open to such a change, but I think today’s younger generations will be.” manufacturingdigital.com

Cloud-based platform Hark uses IoT to make serious savings Managing data can be overwhelming, which is why Hark uses IoT to offer customers an efficient way to read business critical data

WRITTEN BY: HELEN ADAMS cross the manufacturing industry, reducing waste is a growing priority if environmental goals are to be met, money saved and supply chain shortages effectively coped with. Energy efficiency is more important than ever. But with processes which are inherently complicated and unique, it’s often difficult to know where savings can be made without affecting the quality or quantity of produce. Hark, a cloud-based platform, monitors, stores and analyses sensor data, allowing businesses to ‘simplify the route to intelligent assets’ and to reduce waste. Founded in Leeds, England, in 2016, Hark is used across the manufacturing sector, as well as in retail and life science companies. At BizClik Media’s first Sustainability LIVE in February, Manufacturing Digital had the pleasure of meeting Hark’s Marketing Executive Juan Carlos Correia Nisbet and Director of Sales Joe Hurst, to discuss the use of Internet of Things and, managing data efficiently in manufacturing. 74

June 2022

“ Humans don’t get any pleasure from boring tasks, so this technology can unlock the things people are good at” JOE HURST

DIRECTOR, SALES, HARK

AI & AUTOMATION

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AI & AUTOMATION

“ People need a better idea of what IoT is. When they do, people don’t stay sceptical for long” JUAN NISBET

MARKETING EXECUTIVE, HARK

IoT at Hark The Internet of Things is still a very new term to many in the manufacturing sector, although it has been in use since 1990, when engineer John Romkey used it to control his toaster via the internet. IoT essentially describes a network of physical things, such as sensors, that have software embedded in them to exchange data via the internet. There are an estimated 18bn IoT devices being used today, such as smart factory equipment, ultra-high speed wireless internet and shipping container tracking. “We use IoT for connecting assets to the cloud,” explains Hurst. “We make data visible and, crucially, understandable. This gives businesses the opportunity to cut their energy usage and enjoy significant savings. They can also proactively deal with production issues before they take hold.” “With ‘sustainability’ moving from buzzword to a real world KPI, manufacturers need to find a way of becoming more energy efficient without affecting profitability. IoT can help enable both of these goals.

20% Hark estimates that managers only have time to look at 20% of their weekly data

“For example, it can help businesses save valuable time. Energy managers who aren’t empowered by IoT insights often spend upwards of 20% of their time looking through data – by utilising IoT they can enable intelligent insights and become proactive to energy challenges. “IoT can help join the dots between ‘legacy assets’ – there is often so much untapped information within an organisation – we strive to unlock that data to provide better operational insight and visibility to address specific challenges,” Hurst said. The three pillars of Hark are:

• improve efficiency • maximise yield and • reduce waste manufacturingdigital.com

“Look at an energy manager who has to drive between facilities to carry out energy audits – IoT can give a manager one alert to tell them this is where you need to be,” added Nisbet. Taking a step by step approach in manufacturing “Accessing relevant data is the first major step to reducing your carbon footprint,” said Hurst, nodding to Hark’s work on energy waste reduction. “The key here is that sustainability and decreased costs happen in tandem when monitoring and controlling energy or asset performance by using technology. This is huge for businesses, especially during an energy crisis.” 78

June 2022

However, both Nisbet and Hurst agree the manufacturing sector has a way to go when it comes to fully embracing IoT technology and its potential. “The best approach is to start small, prove use cases and energy savings, and then invest those savings into the next area of their organisation” said Nisbet. The future lies in automation Another element of Hark’s offering is automation – the use of equipment to automate solutions to production process issues, which can also help to identify inefficiencies for the business to act on quickly. “For example, Hark can send automated

AI & AUTOMATION

“ Hark connects and aggregates data. We can pinpoint problems and, using analytics, we can understand what an asset is really doing” JOE HURST

DIRECTOR, SALES, HARK

alerts to an engineer to fix the problem,” says Nisbet. “This helps a company stay ahead of problems and be proactive, as opposed to reactive. There’s always a place to start in sustainability and I think that’s in developing a fuller understanding of energy consumption. If you can find inefficiencies, you can make a change, reduce costs and use these savings for the next sustainability project.” The perfect upgrade for legacy assets “Many organisations have legacy assets, which naturally aren’t as technologically connected as modern assets,” said Nisbet. “The beauty of IoT is that new, digital life can be breathed into them by enabling

them to be smart, often removing the need for costly replacements.” “Hark enables the aggregation of data, which is often a key challenge for organisations with legacy assets that speak different protocols,” says Hurst. “By aggregating real-time data, we are able to analyse and understand what happens at an asset level, benchmark these assets and understand where efficiencies can be made. We can pinpoint problems and using analytics, we can deep-dive to understand what an asset is really doing.” Hark works with a variety of assets, which is one thing that makes the job so interesting. “Assets to us could be anything; from fridges and freezers, to lighting rigs and even HVAC or CNC machines,” explains Nisbet. “In the example of a retailer, at night, the lights are often left on by mistake, but no one is using that light. We can look at the shop’s opening hours and use data analytics to automatically turn lights off at a certain time of the day. “There is so much data available and businesses must manage it correctly – it’s a challenge that we thrive on at Hark.” manufacturingdigital.com

DELIVER & OPERATE REPORT:

SAP going the extra mile on sustainability 80

June 2022

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SAP REPORT

EXECUTIVE INTERVIEW

SAP going the extra mile on sustainability SAP’s software solutions are helping its customers improve ESG and sustainability performance in logistics, last mile and asset management.

missions from logistics businesses during the delivery of goods have been on an upward trajectory, increasing by 1.9% annually since 2000. Most of this can be attributed to the rise of globalisation and increased demand for consumer goods. Investors, regulators, consumers and employees are all starting to demand sustainably derived products and services with a smaller environmental footprint across the entire supply chain, opening up a world of possibilities for businesses of all sizes and across all sectors. Helping businesses harness the immense power of such technology is SAP, whose digital solutions are designed to help reinvent the flow of goods,making it smarter, faster and cleaner. In today’s global supply chain, goods 82

June 2022

MINDY DAVIS

might travel half-way around the world before reaching their final destination, which can have a large impact on a company’s carbon footprint. Add to this the increase in e-commerce over the past two years, and the resulting need for directto-consumer shipments, and again, the emissions increase exponentially. Transportation is one of the areas in which getting to zero emissions is a big goal. That includes reducing travel distances and increasing efficiency. It’s not uncommon, for example, for trucks to return empty once a delivery has been completed. Such trips are called ‘deadhead miles’ or ‘empty miles’. SAP helps businesses optimise loads and reduce mileage across operations, making such deliveries more sustainable, end to end - from raw materials, to factory, to warehouse to doorstep.

DELIVER & OPERATE

SAP’s Transport Management System helps businesses optimise loads and reduce distances across last-mile operations IT’S ABOUT ZERO EMISSIONS, WASTE AND INEQUALITY “It’s about zero emissions, zero waste and zero inequality,” explains Mindy Davis, SAP Digital Supply Chain Global Marketing VP. Shippers need tools to adapt to dynamic market conditions so they can plan and execute on freight, and track

and settle it in tight collaboration with carriers. Where capacity is unexpectedly scarce, shippers need the ability to secure resources and spot-pricing where needed the most, to optimise travel time on the road, air, and sea. SAP can help shippers optimise loads and reduce drive time and emissions. Jointly with partners, SAP can now manufacturingdigital.com

SAP REPORT

capture engine emissions and bring that data back into a collaborative network. “We can optimise based on CO2 and not just cost and time,” says Davis.

and also the exchange of documents with key business partners. In this way, its customers improve transparency across DIGITAL the value chain. SUPPLY CHAIN Davis says: “We have software that AND OPERATION facilitates data exchange between supply SUSTAINABLE LOGISTICS IS A chain participants such as shippers, COLLABORATIVE EFFORT Logistics is a complex undertaking. logistics service providers and buyers. It manages the movement of raw This is at a global level, meaning they can leverage synergies, gain a common materials, intermediate products, understanding, and reach process and packaging across the globe to optimisation for decreased costs and manufacturing facilities, as well as the distribution of products from origin to improved capacity utilisation.” consumption. An open logistics network She adds: “In an increasingly volatile global business environment, customers that connects business partners for inter-company collaboration and insight need a network to help manage exceptions and foster productivity will not only optimise connections, but ultimately reduce emissions. through easier supply chain collaboration, based on real-time data and predictive SAP works to provide a central entryintelligence.” point to manage logistics transactions, 84

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DELIVER & OPERATE

“Many of our customers are dedicated to supporting business processes that save time and valuable resources,” adds Davis. “With distribution such a critical component of operations, SAP can boost the accuracy and speed of shipments, across order creation, transportation planning and freight payment.” One SAP customer is Roger Perala, Senior Director of Business Systems, United Sugars Corporation. Perala says: “Using SAP solutions, we’ve increased our freight spend

Customers can achieve process optimisation, for decreased costs and improved capacity utilisation savings, improved process automation and information flow, and improved our data management. Today, we are a more efficient shipper, and that saves us time and resources.” Moving on to helping customers address waste, Davis says SAP works with customers to manage returnable packaging, with a view to establishing circular flows for items such as pallets. “SAP’s solutions capture ownership, inventory and rental arrangement, and help customers reduce packaging waste,” she explains.

MINDY DAVIS TITLE: VICE PRESIDENT, GLOBAL MARKETING, SAP DIGITAL SUPPLY CHAIN Mindy Davis is passionate about building world class teams to successfully launch exceptional products. Mindy is a strategic thought leader and subject matter expert, possessing a depth and breadth of marketing and business knowledge to provide sound, innovative strategic leadership and initiatives while ensuring the preservation of and link between product, industry, field and marketing is maintained. Mindy’s most recent accomplishments include hosting a very well received LinkedIn Live series for Women in Supply Chain. Davis has been with SAP for 17 years, and has seen an enormous amount of change in that time - but no change more drastic than that which occurred during the pandemic. She says: "Many customers were unable to optimise supply with demand. “We were able to help them dig them out of this hole out by keeping inventory moving with software solutions. And it was all done in realtime, working remotely."

SAP REPORT

Davis recalls working in a warehouse years ago, developing a pallet redistribution programme to ensure pallets were cleared from the warehouse floor in order to improve employee safety and reduce incidents, returned, reused, and recycled. “It was all in an AS 400 system,” says Davis. So yes, I’m dating myself!” She adds that much of the waste inherent in moving products via pallets can be eliminated by digitising the process. Davis continues: “As for inequality, we have the ability to track products back through the value chain to product origin. Our software captures data from all the parties that interacted with any given product, using tamper-proof blockchain for security. “With this, customers can seamlessly check product provenance by, for

June 2022

Customers can check product provenance by scanning a can or a package of coffee to see where it originated example, simply scanning a can or a package of coffee to see where it originated, or if it was traded fairly.” SAP HELPING CUSTOMERS EXCEL ON ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) TARGETS SAP’s customers - and their suppliers can certainly see the difference when it comes to ESG. A consumer coffee brand well-known for hand-roasted and specialty coffees across Europe, is using SAP solutions to improve their sustainability practices. “As part of their sustainability ambitions, this brand wanted to make their coffee supply chain more transparent, both to themselves and their consumers,” explains Davis. “The goal was to achieve greater consumer trust and engagement, and also to be recognised as a sustainable brand by having full traceability on the coffee value chain.” This coffee producer uses SAP solutions to trace materials end-toend across their supply chain, and this is seamlessly integrated with the company’s IT landscape. “At the farm level, they source highquality coffee from smallholder farmers

DELIVER & OPERATE

via their own smartphone app,” says Davis, who adds that each transaction is geo-tagged and time stamped, and that data is uploaded into SAP “so they can now capture and analyse the batch genealogy, from farm to roaster.” Sustainability and ESG requirements now touch on every aspect of a company’s operations, including how it manages and optimises the performance of its assets. “On this front, it’s all about revolutionising equipment ROI, says Davis. “Every business trying to reduce environmental impact wants to run their equipment at optimal performance to minimise energy consumption and extend their lifespan, as well as minimise environmental risk.” She adds: “We help customers reduce costs by using artificial intelligence (AI), analytics and insight, to pinpoint what needs to be done, before there’s a problem. We then mobilise a focused service-response for sustainable service delivery.

We help customers reduce costs by using artificial intelligence, analytics and insight, to pinpoint what needs to be done, before there’s a problem

“Workforce scheduling and dispatching is also optimised and carried out in real time, using AI tools. Analytics, reports and dashboards help to recognise issues, and this allows businesses to resolve issues quickly.” SAP also assists with the provision of a mobile field service, which manages existing workloads “whether you’re online, offline, or only occasionally connected.” One of the reasons SAP has an allencompassing view of sustainability issues is because it works with companies across 25 industries around the world. One is mining. One mining customer, based in Phoenix, Arizona, has more than 500 technicians across its supply chain, and manufacturingdigital.com

SAP REPORT

The goal is to find the shortest route using real-time information SAP has helped them both improve and increase equipment availability, as well as increase the efficiency of its maintenance plan by 25%. And then there’s discrete manufacturing – whereby equipment manufacturers can increase service efficiency and transform the customer experience through automation and AI, says Davis. She continues: “This increases service revenue and customer satisfaction through targeted, modularised service offerings, as well as improving manufacturing up-time and great on-time delivery. “Plus, we can enable a collaborative platform for sharing performance analytics with manufacturers, operators and service providers to increase operational visibility and more-agile decision making.” REVOLUTIONISE EQUIPMENT PERFORMANCE TO MINIMISE EMISSIONS Using Industry 4.0 best practices, together with SAP solutions, enables operators to not only optimise equipment performance but also to extend their useful life, by helping to improve design and service, which reduces the assets’ carbon footprint. Davis is a big Formula One racing fan, and she is thrilled to see SAP solutions 88

June 2022

help a certain F1 team master extreme cornering skills. “In F1 racing, cars make hairpin turns at high speed, turns that must be executed perfectly for the car to minimise its total race time, and the distance travelled. You can map such a turn onto a network flow on a grid, where the nodes represent the positions along the turn, and the path that needs to be taken to reach the next node. “The goal is to find the shortest route using real-time information. It’s really energising to see our customers use SAP solutions to connect with remote experts on the race track in real-time, using peer-to-peer augmented reality.” She adds: “Our customers can improve knowledge transfer and boost performance, while optimising technician travel-time, in order to reduce vehicle CO2 emissions. While I’m not a professional car racer, with our solutions, I can guide our customers

DELIVER & OPERATE

closer toward reaching their CO2 emission mandates.” HOW SMART TECHNOLOGY IS DRIVING INNOVATION IN LAST-MILE DELIVERY Continuing the F1 analogy, Davis says: “In Formula 1, it’s the last minutes and seconds of the race that get your adrenaline going. Continuous optimisation is the key to winning, and it’s the same in supply chain. “Supply chain optimisation can be very effective in last-mile delivery. It might be the shortest leg of the supply chain by far, but it’s often the most complex, expensive and energy inefficient.” With last mile, there is no greater enemy to customer loyalty and satisfaction than orders not arriving when expected, arriving wrong, or not at all. And with so many disruptions, many traditional supply chain strategies continue to endure excess shipping charges due to changes in last-minute deliveries - all of which increases their carbon footprint.

Today, the last mile link in the supply chain is under enormous pressure to adapt at a lightning pace. But it’s important to remember that a company’s last mile solutions are only as strong as its supply chain planning infrastructure, and the ability to deliver visibility and connectivity across the entire supply chain journey. More than first- and middle-mile logistics, last mile has seen the greatest amount of change, thanks in large part to omnichannel. Last mile is also the most publicly visible link in the supply chain, and as such is most likely to be blamed by customers if anything goes wrong. But like a cog in a machine, last mile logistics can only function as efficiently as the other moving parts across the supply chain. In conclusion, Davis says she is “inspired” by how much digital supply chains can help SAP customers deliver sustainability initiatives, and is “optimistic” about the future on this front. “It’s been exciting, challenging and ultimately fulfilling to see our customers use digitalisation across their supply chains to fuel fast, agile, and sustainable responses across the value chain,” she says.

Continuous optimisation is the key to winning in F1, and it’s the same in supply chain manufacturingdigital.com

TECHNOLOGY TECHNOLOGY

FOR FOR MANUFACTURERS MANUFACTURERS MOV MO

SERVITISAT

Y Y TIPS TIPS

VING INTO OVING INTO

TION

TECHNOLOGY

Denis Pytel of Atlantic Technologies offers his tips to aid the digital transformation supporting servitisation in the manufacturing sector WRITTEN BY: HELEN ADAMS

anufacturers are increasingly looking at ways to create regular, profitable, and predictable revenue streams outside their manufacturing contract pipeline. More and more manufacturers are achieving this by offering add-on services, such as maintenance, servicing and training for the products they produce, something Denis Pytel, Solutions Architect at Atlantic Technologies UK, is familiar with. “Whether a business offers predictive maintenance contracts, parts sales or other services, the key to success is offering a great customer experience and technology is the key to doing that,” explains Pytel. “But for a manufacturing business used to focusing on part quality, lowering cost per unit or product differentiation, introducing services can feel like a painful shift, especially on the technology front.” Atlantic Technologies is a global leader in transformational cloud technology and offers businesses solutions to help them future-proof. The company has seen a lot of digital innovation since it was founded in 1997. Atlantic Technologies is headquartered in Milan, Italy, with offices in London and Denver. The company has had partnerships with Fortune 500 companies such as Salesforce and Oracle and has, with the manufacturingdigital.com

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TECHNOLOGY

“ The key to success is offering a great customer experience and technology” DENIS PYTEL SOLUTIONS ARCHITECT, ATLANTIC TECHNOLOGIES

Galapagos corporate engagement project, recently committed itself to reducing its CO2 emissions. This will involve balancing the emissions produced by Atlantic Technologies with more sustainable lifestyle decisions, from reducing energy consumption in offices to employees sharing rides to work. Here are Denis Pytel’s top tips for making sure that digital transformation for servitisation in manufacturing goes as smoothly as possible.

End-user engagement “This goes for any project: get your end users engaged early,” says Pytel enthusiastically. “The sooner you can get a team that represents all users, the better. By involving users throughout the design stage and beyond, they share a sense of responsibility and inclusion. Not only will they help champion the project and get the rest of the company committed to a new way of working, but, in our experience, it leads to reduced project creep, a quicker design phase, and better training and adoption.” Invest in design “The design phase of any project is the most important,” explains Pytel. “Think about the old adage ‘measure twice and cut once’. If the design phase is executed correctly, you’ll manufacturingdigital.com

“ Prioritise the channels that you know your customers want to use” DENIS PYTEL

SOLUTIONS ARCHITECT, ATLANTIC TECHNOLOGIES

glide through the build. Too many projects get stuck in build because they didn’t invest enough time and resources throughout the design phase. Developers have too many questions when designs are vague; this slows down the build and can lead to mistakes that are not noticed until later testing, when they are expensive to resolve. “Work with a technology partner that is focused on getting you early wins. The sooner the project starts to deliver value, the better – even if features are limited in the first iteration.” Think about service channels “What kind of channels are you currently using? Is it phone, email, live chat, self service portal – and what channels do you want to have? Remember, more isn’t always better,” says Pytel firmly. “Prioritise the channels that you know your customers want to use, and make sure the experience is as high as possible 94

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on each. In today’s environment, that also means making sure customers do as much as possible in the channels they enjoy and minimising the need to switch between them.” Customer centricity “Every decision should be made with the customer in the front of your mind,” says Pytel. “Too often, businesses make a decision that’s easier for them without giving a thought to how it will impact the customer. Think about creating the best possible experience for your customers. Choosing the easiest route, or the one that is most scalable, will be irrelevant if customers decide not to use your services because of their experience.” Pick the right technology “It might sound obvious, but it is important to choose a technology platform that can fully integrate with your existing ERP and other

TECHNOLOGY

technology, extending its functionality with a full suite of features designed to support services and give a great customer experience,” says Pytel. “It should also be customisable so that, as your services aspirations grow, you can add new features or extend it into other areas of the business. “How do you choose the right tools? Well, first you need to know what kind of tools you need for the job. Tools such as customer relationship management, sales tools and stock management should already exist in a modern manufacturer and be available through an ERP system of some description. “But it’s not as simple as extending these to sell services. For example, customers are used to being able to use websites to order parts or book services, rather than pick up the phone – can your ERP solution support this? Equally, for any field service, you need to be able to give those engineers access to all the customer

and systems information they need, as well as enabling them and customers to make payments on the move or through the website. All these systems need to be seamlessly integrated and able to share information in real time.” Don’t be a rabbit in the headlights “You might look at this list and be horrified at the prospect of introducing services to your business, even if you can appreciate the benefits to the bottom line,” says Pytel. “The reality is that the technology exists to integrate with your existing ERP solutions and help you hit the ground running with a services offering in your manufacturing business. Pick the right platform and partner, and you can bring a services revolution to your business. Depending on the ERP solution you already use, you may even be sitting on the technology already!” manufacturingdigital.com

WRITTEN BY: HELEN ADAMS PRODUCED BY: BEN MALTBY

TEAMWORK AND RESILIENCE TURN THE WHEELS AT

Danfoss Drives

June 2022

DANFOSS DRIVES

manufacturingdigital.com

DANFOSS DRIVES

From water systems via various industries to manufacturing, Danfoss Drives is lighting the way for a more efficient, sustainable and resilient world

anfoss Drives’ Senior Vice President of Product Management & Development, Janne Kuivalainen, is passionate about two things: delivering value-adding solutions to the electrical manufacturing industry and good quality lighting for his video calls. “I spent so long in my home office during the height of COVID that I actually purchased these LED panels, so that I had a good set-up,” explains Janne Kuivalainen. “It's dark in Finland in the winter.” Kuivalainen leads global product management and development at Danfoss Drives. “In my career, I have worked in two types of jobs: product roles and system integrator roles. In the past, I have been in the marine and ports system integrator business and in the power plant system integrator business.” Manufacturing company Danfoss Drives is part of the Danfoss Group, a family-owned business based in Denmark, with €5.8bn annual revenue in 2020. The Danfoss Drives business unit boasts over 4,000 employees, ten factories in seven countries across the world and €1.4bn annual sales. “Danfoss Drives is a global leader in AC-to-DC and DC-to-DC power conversion, as well as variable speed control of electric motors. “Our products, known as AC drives, are key to controlling the speed of electric motors,” said Kuivalainen. “These products

June 2022

Example of an image caption manufacturingdigital.com

enhance process control, reduce energy usage, decrease mechanical stress on the motor control applications, and much more.”

“ Companies cannot afford to take any actions without taking ESG into account” JANNE KUIVALAINEN

SVP, GLOBAL PRODUCT MANAGEMENT & DEVELOPMENT, DANFOSS DRIVES

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Embracing resilience in the manufacturing industry Besides the merits of LED lighting, working through the pandemic has taught Danfoss Drives a great deal about the company and the industry it works in. “We learned resilience,” said Kuivalainen. “In the industry, we tend to think a little bit in a linear way, in terms of forecasting, planning, and execution with reviews. “But now, more speed is needed, with better ability to respond to the new requirements and changes in the environment. These are some of the COVID learnings and we learned them fast. We also found new, innovative ways to work efficiently, but with the same quality. This is something we must take with us after the pandemic. Now, we can deliver the same result, in much less time.”

DANFOSS DRIVES

JANNE KUIVALAINEN TITLE: SVP, GLOBAL PRODUCT MANAGEMENT & DEVELOPMENT LOCATION: HELSINKI, UUSIMAA, FINLAND

EXECUTIVE BIO

In the future, Danfoss Drives anticipates several megatrends in the post-pandemic world. “If I want to be a little bit bold, we are driving the megatrends and transforming our world, because we are using those intelligent, electrified, and energy efficient solutions,” said Kuivalainen. “AC drives help to build a better future for all of us. We don't want to compromise on comfort when we implement sustainability policies in, for example, heating, ventilation, air conditioning systems, or refrigeration. By applying AC drives we can retain comfort and deliver better efficiency at the same time. “In the global food supply chain, we optimise equipment performance to help our customers optimise their food production - from irrigation of fields all the way to food retail. For many sectors, electrification is one of the key paths to decarbonization. That’s where we step in.”

Janne Kuivalainen is Head of Product Management and Development for the Drives business unit in Danfoss Group. Prior to joining Danfoss in early 2019, he was Head of Technology of the Global Marine and Ports Business Unit at ABB. He has also held various management positions with Danfoss, Vacon Plc. and ABB in the areas of Research and Development, Product Management, and System Integration Project Business. He holds a M.Sc. (Eng.) from the University of Tampere and has a special interest in the development of strategic business management.

DANFOSS DRIVES

“ When we develop new products, we look at the product’s sustainability and its impact on circular economy” JANNE KUIVALAINEN

SVP, GLOBAL PRODUCT MANAGEMENT & DEVELOPMENT, DANFOSS DRIVES

Danfoss Drives is using its technology to protect the world against climate change, particularly in urban areas. “Cities account for 70% of global greenhouse gas emissions,” explains Kuivalainen. “We address how we can make cooling systems, refrigeration systems, ventilation systems, and water systems more efficient.”

In urban areas, Danfoss Drives also provides sustained water and wastewater management. “Due to leaks, 20-50% of all water that is being pumped never reaches the end users,” says Kuivalainen. “At Danfoss Drives, we control the pipe pressure to avoid water hammering and so on, to operate the system at the optimum point in each location. Water is critical infrastructure. You need to be able to bring the right kind of reliability to the solutions. “We also work with some of our clients to reach an energy-neutral process. We’re converting the wastewater plant to actually produce energy. High wastewater temperatures can be used to generate heat and electricity, and inside the wastewater plant a bio refinery produces gas that can be burned in gas turbines.” manufacturingdigital.com

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Teamwork and resilience turn the wheels at Danfoss Drives

1933

Year Founded

Manufacturing Industry

37,000

Number of Employees

€5.8bn

Revenue Euros (2020)

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But no matter what the business is, or the potential for green energy, Danfoss Drives focuses on its customers’ needs. “What helps your customer to make more money, what impacts their earnings negatively, and what are the safety and regulatory requirements?” asks Kuivalainen. “The second thing I'd like to mention is networking. Look at what's readily available, has somebody else run into a similar issue in some other context or in another industry? What's in it for our customers, and for us? “Then, thirdly: Keep the core strong and evolving, don't lose your focus on your own core. When you start to have these elements in place, integrate fast, test, learn, pilot. So, then it's about the learning curve. After that, from a business point of view, we need to recognise when a situation is about incubation or growth or maturity.” People are crucial in a technology journey Sustainable solutions require multiple engineering domains to come together, using diverse teams to work with problems and creating a better user experience. “People are our foundation,” says Kuivalainen. “Typically, there are people from all kinds of backgrounds, who work together to solve a customer’s problem. They approach it jointly with their different engineering disciplines, and they really need to look at it through the customer’s eyes. This is truly crucial in our journey,” said Kuivalainen. “We leaders are coaches to them. The real doers are our people, those engineers who are working to deliver the solutions.” When asked about where he sees Danfoss Drives’ place in the world, Kuivalainen quotes the CEO, Kim Fausing. “He has said that ‘Sustainability is not an add-on to our business, our business manufacturingdigital.com

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DANFOSS DRIVES

“ No one wants to compromise on comfort when we implement sustainability policies” JANNE KUIVALAINEN

SVP, GLOBAL PRODUCT MANAGEMENT & DEVELOPMENT, DANFOSS DRIVES

is sustainability’. I think that in Danfoss Drives, we see that really, we address the key megatrends in the world,” says Kuivalainen. “Our products and solutions are an elementary part of creating a better future. Like now in the green transition, our purpose is more relevant than ever, and this makes us a good partner for our customers, stakeholders, and a good workplace to be a part of.” Sustainable transformation at Danfoss Drives In 2020, Danfoss Drives announced its sustainability ambitions: • To reach carbon-neutrality in all global operations by 2030 • To have an electric car fleet by 2030 • To switch to 100% renewable electricity • To double energy productivity, compared to the 2007 levels Like many - hopefully most - businesses, the green transition is a central focus at Danfoss Drives.

“I think the green transformation is to make the world a better place. Companies cannot afford to take any actions without taking ESG into account. So, whatever you do, you need to think about what that means environmentally, socially and also from a governance point of view,” says Kuivalainen. “I think that this will really penetrate industry now, and this is part of any transformation plan. For example, at Danfoss Drives when we develop new products, we look at the product’s sustainability, product compliance and the impact on the circular economy. These are embedded into the product development initiatives.” Partnerships play an important role, from suppliers to customers To get to net zero emissions, a business must be aware of the behaviour of its suppliers and be aware of the challenges in being sustainable while growing the partner ecosystem. “When I talk about partner ecosystems, I consider our customers, our suppliers, academia and research partners, technology manufacturingdigital.com

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Cities account for providers and engineering when businesses look at the proof companies,” said Kuivalainen. of new emerging technologies. of global greenhouse “If I look at this from a product Kuivalainen says that Danfoss gas emissions. management and development Drives typically conducts applied Due to leaks point of view, each of them plays research with them. an important role. We collaborate “The engineering companies of all water that is with our customers to look at are key to the success in very being pumped never what is the next leading-edge many product areas, and we reaches end users. step we want to take, to excel in have invested in a few deep certain applications.” collaborations with these Academia and research partners, as well as engineering companies. These relationships technology providers, play an important role are typically of long duration. Those

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“People are our foundation” JANNE KUIVALAINEN

SVP, GLOBAL PRODUCT MANAGEMENT & DEVELOPMENT, DANFOSS DRIVES

companies have their strongholds, and we have ours.” Danfoss Drives’ product development partner ecosystem is also helping the company to apply new technologies. “For us, it can be a small element, but a vital one. So actually, we learn and gain more by working with them because it's everyday life for them and like a core for them, but we can still excel in narrower more specialised fields,” said Kuivalainen. “They of course boost our deliveries, and we help them to really

understand the value proposition, what we are looking for, and what the customer is looking for. Our partners are a really integrated part of our development and work as efficiently as we do here internally.” From water systems via various industries, to manufacturing, Danfoss Drives is lighting the way for a more efficient, sustainable, and resilient world.

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MANUFACTURING BUSINESSES SUPPORTING Global manufacturers have joined in on the sanctions against Russia and halted trade with the country, while others support Ukrainian refugees WRITTEN BY: HELEN ADAMS

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Ford Motor Co

Founded: 1903 Headquartered: Dearborn, Michigan, USA Ford has sold 21,000 vehicles in Russia over the past year, but it was quick to suspend its jointventure (JV) operations upon Russia’s invasion of Ukraine. Ford declared in a statement:

“WHILE WE DON’T HAVE SIGNIFICANT OPERATIONS IN UKRAINE, WE DO HAVE A STRONG CONTINGENT OF UKRAINIAN NATIONALS WORKING FOR FORD AROUND THE WORLD”

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Cummins

Founded: 1919 Headquartered: Columbus, Indiana, USA The power systems manufacturer has suspended all trade with Russia, instead teaming up with community organisations in Romania and Poland to provide aid for Ukrainian refugees as they arrive in neighbouring countries. Cummins’ grant-making partner, Global Giving, has opened a Ukraine Crisis Relief Fund for donations, which will be spent on humanitarian projects.

TOP 10

AGCO

Founded: 1990 Headquartered: Duluth, Georgia, USA AGCO Corp is an agricultural equipment manufacturer with a global awareness of the food chain. Knowing that Russia’s war against Ukraine would disrupt the supply chain of food to those most affected, The AGCO Agriculture Foundation (AAF) has donated emergency relief and food assistance to Ukrainian families whose lives have been uprooted by the invasion.

Toyota Motor Corp.

Founded: 1937 Headquartered: Aichi, Japan When Russia invaded Ukraine, Toyota joined in with other global businesses in sanctions against its neighbour. The Russian ambassador warned the world’s biggest carmaker: “Should Japan impose sanctions on Russia, there will be consequences.” Just after the announcement, Toyota was then hit by a cyber attack that halted production.

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Get reliable network coverage and security protection, fast. A modern network must be able to respond easily, quickly and flexibly to the growing needs of today’s digital business. Must provide visibility & control of applications, users and devices on and off the network and Intelligently direct traffic across the WAN. Be scalable and automate the process to provide new innovative services. Support IoT devices and utilize state-of-the-art technologies such as real-time analytics, ML and AI. And all these must be provided with maximum security and minimum cost. This is the power that brings the integration of two cloud managed platforms, Cisco Meraki and Cisco Umbrella. This integration is binding together the best of breed in cloud-managed networking and Security.

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Mercedes-Benz Founded: 1926 Headquartered: Stuttgart, Germany

Caterpillar

Founded: 1925 Headquartered: Deerfield, Illinois, USA Caterpillar has halted manufacturing operations across Russia and is donating to humanitarian efforts in Ukraine as it seeks to defend itself and organise safe passage for civilians escaping Russian aggression.

The luxury car maker MercedesBenz manufactures small car parts in Ukraine, so it warned that there would be a production reduction as a result. The company is in close contact with its suppliers and working to resolve its supply chain problems. “As an immediate emergency measure, we're donating €1mn to Deutsches Rotes Kreuz eV (Red Cross) for their help for Ukraine,” said CEO Ola Källenius.

The Caterpillar Foundation will donate over US$1mn to best address the needs of Ukrainains, in regards to both their immediate safety and long-term wellbeing. manufacturingdigital.com

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Iveco Group

Founded: 1975 Headquartered: Turin, Italy Iveco Group has some employees living in Ukraine so is providing housing support and financial aid for these refugees. “We will allow children undergoing oncological care in Ukraine to be treated in an Italian hospital; and will particularly and actively sustain women’s and children’s rights, including through educational activities for the refugees,” said the company in a statement.

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Venari Group Founded: 2020 Headquartered: Yorkshire, UK

The Ukrainian Embassy in London networked with local politicians to contact the Venari Group. Ukraine has been losing up to ten ambulances a day and the emergency vehicle manufacturer Venari Group was keen to help. The company is sending military grade ambulances to the front lines in Ukraine, to save civilians and soldiers alike.

John Deere Foundation

Founded: 1837 Headquartered: Moline, Illinois, USA The John Deere Foundation, a part of the agricultural equipment manufacturer John Deere, has begun working with organisations to help Ukrainians, with the company halting shipments of its equipment to Russia and its ally Belarus. In an unexpected PR development, footage of a John Deere tractor dragging a Russian tank down a road has gone viral, in what may become one of the defining images of the underdog nation's fight against Russian aggression.

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CNH Industrial

Founded: 2012 Headquartered: London, UK Another agricultural machinery company, CNH, has 38 employees in Ukraine whom it is determined to support. The company has opened an employee donation fund, which the company will match, in addition to a donation of US$500,000 and the assistance of NGOs to allocate the funds.

“CNH INDUSTRIAL IS PRIORITISING THE SAFETY OF OUR EMPLOYEES AND THEIR FAMILIES IN UKRAINE,” said Scott W. Wine, CNH Industrial CEO. “I am humbled by our employees’ determination to contribute in assisting the population of Ukraine, which is in urgent humanitarian need.”

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LEADER IN

SUSTAINABLE

BEVERAGE PRODUCTION WRITTEN BY: GEORGIA WILSON

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PRODUCED BY: TOM LIVERMORE

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ASAHI BEVERAGES

David Baxter, Group GM of Direct Procurement, Asahi Beverages, breaks down the company’s approach to sustainability and maintaining resilience during COVID-19

avid Baxter’s career journey in the beverages industry began over 20 years ago, working for Southcorp Wines in supply chain planning. Following this, Baxter worked for many beverage companies - including Foster’s Group, Carlton & United Breweries, and Treasury Wine Estates - before joining Asahi Beverages. Today, Baxter is the Group General Manager of Direct Procurement of Asahi Beverages. “I could not think of a better industry to work in,” says Baxter. He adds: “I'm responsible for leading an incredible team whose core role is to identify, contract, and manage suppliers to meet Asahi Beverages’ manufacturing requirements.” Being the leading beverages company in Australia and New Zealand, Asahi Beverages produces quality alcohol and non-alcohol beverages. “We have a strong portfolio of established household brands, as well as innovative new products,” says Baxter.

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He adds: “Our company's vision is to bring enjoyment and connection to everyday moments in life.” In the last two years, Asahi Beverages has evolved significantly. Its acquisition of Carlton & United Breweries scaled the company, making Asahi Beverages the leading beverages manufacturer in Australia & New Zealand. “Our footprint literally

“ OUR COMPANY'S VISION IS TO BRING ENJOYMENT AND CONNECTION TO EVERYDAY MOMENTS IN LIFE” DAVID BAXTER

GROUP GENERAL MANAGER OF PROCUREMENT, ASAHI BEVERAGES

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ASAHI BEVERAGES

doubled in size to produce more than two billion litres a year,” says Baxter. Asahi Beverages and its approach to sustainability As a market leader in the beverage industry, Asahi Beverages is committed to ensuring Australians and New Zealanders are enjoying and connecting with its products in a sustainable way that protects the planet. Baxter says: “We have some key strategic initiatives that we've put in place. As a market leader, we feel it's imperative to lead on sustainability and set key targets to not only protect our planet, but in a way that also grows our business and shows the world that we are leaders in sustainability.” Following its acquisition of Carlton & United Breweries, Asahi Beverages began to grow significantly overnight. Due to its portfolio, volume and spend the challenge for Asahi Beverages was to become one team. “We did remarkably well,” says Baxter 126

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He adds: “Due to COVID-19, most of the transition occurred within a virtual environment, but we are very fortunate to have a young and dedicated team of procurement professionals focused on implementing and delivering key strategic initiatives that meet our Mid-Term Plan and have a huge positive impact on delivering our sustainability goals.” This year, Asahi Beverages has been working on a number of sustainability initiatives including its barley programme, raspberries programme, and packaging strategy. Baxter says: “Developing our barley programme gave us oversight into the growing process to ensure the best quality barley is used in our beers. This programme allows us to track provenance of barley and gives us direct relationships with more farmers. “With this relationship, farmers have a direct link to our strict quality parameters,

DAVID BAXTER TITLE: GROUP GENERAL MANAGER OF PROCUREMENT INDUSTRY: FOOD AND BEVERAGE

EXECUTIVE BIO

LOCATION: AUSTRALIA Having been in the Beverage industry for over 20 years and working across Australia, Europe and the US, David Baxter takes pride in developing and sustaining strong strategic partnerships with all suppliers. Currently Procurement Group General Manager (Directs) for Asahi Beverages, Baxter leads a talented and dedicated team who is goals & results driven, and focused on sourcing the best ingredients, packaging and equipment that brings Asahi’s amazing brands to life. Baxter is also very passionate about sustainability and delivering on the targets Asahi have set themselves. Studying in both Brewing and Wine, Baxter has a good technical understanding that allows him to collaboratively work with internal and external stakeholders. Knowing the importance in developing and retaining talent, Baxter ensures he dedicates ample time in supporting his team. “In Procurement, everyone talks about building relationships with your suppliers, I think you should build your relationships with your team first”.

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“ DEVELOPING OUR BARLEY PROGRAMME GAVE US COMPLETE OVERSIGHT INTO THE GROWING PROCESS TO ENSURE THE BEST QUALITY IS USED IN OUR BEERS” DAVID BAXTER

GROUP GENERAL MANAGER OF PROCUREMENT, ASAHI BEVERAGES

and we can link on-farm practices to beer quality, and we can monitor other important factors, such as water usage, soil health and fertiliser usage to ensure we meet our sustainability targets.” Asahi Beverages has also adopted ambitious goals around sustainable energy. To help achieve this, it recently installed Australia’s largest solar project at their Australian brewery at Yatala in Queensland, with around 7,000 solar panels now harnessing the Queensland sun. Baxter says: “We will source 100% of our purchased electricity from renewable sources by 2025. We will then reduce emissions across our entire supply chain to net zero by 2050 - from the farmers who grow our ingredients through to our manufacturing sites and the vehicles that deliver our beverages. Making the decision to switch its current raspberry supply chain and start using locally-grown raspberries, Baxter explains the benefits: “We made the switch to Tasmanian-grown raspberries because of their quality, their more reliable supply and Asahi’s commitment to supporting Australian farmers.” He adds: “Asahi Beverages’ products are made with the best raw ingredients, so it really doesn’t get any better than sourcing fresh world-class produce while supporting local farmers.” manufacturingdigital.com

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Finally, when it comes to Asahi Beverages’ packaging, the company is committed to designing its bottles, cans, and other vessels to be sustainable. Asahi Beverages has committed to making all its packaging 100% recyclable, reusable or compostable by 2025. Working with suppliers in possession of visions and goals that align with its own, Asahi Beverages works with multiple bodies where improving sustainable packaging is a core focus. Baxter says: “We have recently formed a cross-industry joint venture with Pact Group, Cleanaway Waste Management Ltd

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and Coca-Cola Europacific Partners to build and operate two PET recycling facilities, one in NSW and one in Victoria. These will massively boost Australia’s PET recycling capacity. They will help transform recycling in Australia by providing a new, local source of high-quality recycled PET which we’ll use in products like our Cool Ridge water bottles. This is a major step towards helping us deliver a truly circular economy. “Each facility will be capable of processing the equivalent of around 1 billion plastic bottles - collected via Container Deposit

ASAHI BEVERAGES

Schemes and kerbside recycling each year. This will be converted into more than 20,000 tonnes of high-quality recycled PET bottles and food packaging by each facility, which will use state-of-the-art sorting, washing, decontamination and extrusion technology. Both facilities are receiving Commonwealth funding while each is also receiving support from its respectiv State Government.” In addition, Asahi Beverages has recently switched all of its 450ml and 600ml soft drink bottles to 100% recycled plastic. Navigating modern challenges in the beverage industry Like the stories of so many other people, the last two years have been some of the most challenging times in Baxter’s career. “With global shipping delays, labour shortages, high

BEING BOTH SUSTAINABLE NATIONALLY AND INTERNATIONALLY Asahi Beverages, as part of the Asahi global network, is demonstrating massive benefits in conducting its sustainability initiatives globally. Baxter explains: “Operating on a global scale means that we can leverage experience and initiatives that have been executed in other Asahi regions. We can also share those learnings and implement them in our region.”

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ASAHI BEVERAGES

“ WE FEEL IT'S IMPERATIVE TO LEAD ON SUSTAINABILITY AND SET KEY TARGETS TO NOT ONLY PROTECT OUR PLANET, BUT IN A WAY THAT ALSO GROWS OUR BUSINESS AND SHOWS THE WORLD THAT WE ARE LEADERS” DAVID BAXTER

GROUP GENERAL MANAGER OF PROCUREMENT, ASAHI BEVERAGES

commodity prices, changes to consumer preferences, and all during a pandemic it has definitely built up resilience. It also shows the importance of business continuity planning and strategic relationships in the supply chain,” says Baxter. In order to stay ahead of these challenges, Baxter says: “There is risk in everything we do, but it's about understanding the level of risk you and your organisation are comfortable with, and then ensuring clear communication internally and externally. “This limits potential surprises, and helps to incorporate robust business continuity plans allowing organisations to react with speed should an issue occur.” Asahi Beverages and its suppliers Asahi Beverages works with thousands of suppliers in order to conduct its operations. “It is our responsibility to ensure that we build on those relationships,” says Baxter. He adds: “We share our strategic initiatives with our suppliers so that they can be a part of our journey, to meet our goals, and to ensure a strong focus on quality. We need partners that can work with us long term, those who have similar sustainability goals and can bring innovative ideas to the table so that we can work collaboratively.” Operating within Australia and New Zealand, Baxter explains that the company’s distance from both Europe and the US limits the suppliers it can choose from, stating: “We need to make sure that we are developing relationships with the suppliers we do have. Ensuring communication while delivering on strategic plans so that not only do we grow as a business, but our suppliers grow, too.”

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TAURUS GROUP

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TAURUS GROUP

OPEN PLATFORMS, HPC & INDUSTRY 4.0 WRITTEN BY: GEORGIA WILSON PRODUCED BY: LEWIS VAUGHAN

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TAURUS GROUP

2005

Year Founded

Computer Hardware Industry

120

Number of Employees

180mn

Revenue (Euros)

TAURUS GROUP

Arun Garg (Taurus Group), Menno Kortekaas (Circle B), Alex Ninaber (ClusterVision), and Jitesh Kohli (Solulever) discuss their collaborative ecosystem

eing in the technology business for over two decades, Arun Garg heads Taurus Group as its current CEO. "We have multiple disciplines within our company with a physical presence in the Netherlands, Belgium, Germany, and India. Founded in 2005 in the Netherlands, the business has been expanding since 2016, as it makes successful investments and acquisitions in several companies: 2BY2, Taurus Germany, Circle B, Solulever, and ClusterVision. Today, we proudly stand as an ISO 9001 company and are in the process of being ISO 27001 certified." Taurus Group is a specialised and focused company that operates in a niche market with a good reputation. It provides its customers access to its global distribution infrastructure and, together with its enterprise integration, offers softwaredefined data centre solutions. "As the parent company, Taurus Group has six operational entities. Taurus Europe is the main entity that carries out the distribution aspects," mentions Garg. "Acquiring ClusterVision, Circle B, and Solulever coincided with our vision to grow and expand our product offerings. We have a great circular economy within these entities. In The Netherlands, we all operate from the same office and make good use of each other's expertise and knowledge. Taurus performs the role of 'component supply'; Circle B designs, builds, and manages rapidscale sustainable data centre OCP server manufacturingdigital.com

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TAURUS GROUP

“ Taurus Group has six operational entities. Taurus Europe is the primary entity that carries out the distribution aspects" ARUN GARG

FOUNDER & MANAGING DIRECTOR, TAURUS GROUP

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infrastructures. Solulever is developing a whole software-based AI analytics suite which happily runs on OCP hardware whilst ClusterVision is a turn-key solutions provider for HPC, AI and data at scale. ” Garg adds, "Being a business that very much revolves around storage components, the majority of our revenue comes from storage products, which we sell as a barebone product or as a complete solution." He explains, "we do not have any standard storage solutions for our customers as we offer tailor-made solutions based on the specific requirements of individual customers." "Our business interests are split into two broad areas: the first being distribution, and the second being solution, development and R&D. Our core products and services include

TAURUS GROUP

ARUN GARG TITLE: FOUNDER & MANAGING DIRECTOR

COMPANY: TAURUS GROUP

Arun, Founder and Managing Director of Taurus, has over two decades of extensive experience working in the technology business. With a strong focus on a niche IT market, he strives to be a specialist in this domain. He believes in making successful business investments and acquisitions of companies dealing in specialised services to build a holistic business solution. His mantra of success lies in the few keywords: dedication, perfection, commitment, and meeting deadlines. His unabated dedication towards his goals from the beginning has led him to monumental success.

ALEX NINABER TITLE: CO-FOUNDER & DIRECTOR HPC, CLOUD & STORAGE COMPANY: CLUSTERVISION Alex, Co-founder and Director ClusterVision, has vast experience of over 20 years in developing high-performance computing solutions. Having completed his PhD at Birkbeck College (London) with his colleague, he was inspired by large scale calculations in molecular dynamics, which led him into developing innovative HPC solutions. Owing to a strong background in chemistry and physics, he believes in being practical and always attempts to find answers to complex problems.

MENNO KORTEKAAS TITLE: FOUNDER & CTO

COMPANY: CIRCLE B

Menno, Founder of Circle B, has a vast experience in OCP and aims to deliver the power of open compute to most organisations as a scalable solution. Having an extensive background in IT and networking and being acquainted with the concept of OCP in his consulting years, he looks further to apply OCP hardware for data centres as an innovative way of building servers. The founder believes in combing sustainability with innovation which he delivers in his solutions.

JITESH KOHLI TITLE: CO-FOUNDER & CEO

COMPANY: SOLULEVER

Jitesh, the CEO and co-founder of Solulever, has 18 years of experience working with IT services and consulting giants. He leads a rich team of Industry 4.0 thought leaders, technologists, data scientists and domain experts, with a passion for bringing unparalleled platforms and solutions to the manufacturing industry by building unique Edge Platforms and industryspecific solutions. Over the years, he has built trusted relationships with customers, colleagues, advisors, and partners across a multitude of industries and countries in Europe and beyond.

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TAURUS GROUP

Taurus Group: Open platforms, HPC & Industry 4.0

“ Typically, we provide software solutions to complex business environments, along with HPC installations and knowledge to make these environments successful” ALEX NINABER

CO-FOUNDER & DIRECTOR HPC, CLOUD & STORAGE SOLUTIONS, CLUSTERVISION

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the distribution of key components, building and managing HPC infrastructure, EMEA OCP specialists, and software application focused on Smart Industry 4.0 with a development office in India," says Garg. “Taurus Group is also a specialist in software-defined networking. The solutions we bring to our customers involve using software layers that provide flexible, efficient network fabric management when used to define the functionality of the hardware. Hardware agnostic partner solutions such as those from Pluribus Networks help network operators manage the entire network consistently and holistically," says Garg. He also adds, "Taurus is a great company uncovering endless possibilities of growth. We can now offer end-to-end solutions to our customers, from components procurement to seamlessly managing

TAURUS GROUP

their infrastructure. The journey has just started, and there is a lot to achieve. We are confident of bringing greater offerings to the market, making us a stronger company and a stronger brand." DISCOVER TAURUS GROUP'S ROBUST ECOSYSTEM OF PARTNERS Circle B With a background in IT and networking, Menno Kortekaas, Founder of Circle B, was introduced to the OCP hardware during his consulting years. Looking further into the application of OCP hardware for data centres, Kortekaas found that a particular company was using Facebook designed hardware for their own open stack solutions. "But, I found that this was not readily available in Europe, apart from a few smaller

companies in the US. So, I founded Circle B to operate in this space," says Menno. Kortekaas explains that Circle B sells solutions based on specific building blocks, providing its customers with hardware. “We have the IT rack that goes into the data centre, that's our biggest building block, which we then integrate into the rack, the power infrastructure, converting AC into 12 Volt DC. Then we add servers, storage, networking, cables and external connectivity. We work with the customer based on their application, workload, and software application to match the hardware design to meet their requirements. We help them design a certain system layout, rack layout, or multiple rack layouts. We have also recently released a new service called 'Eclipse' which allows customers to choose between a CapEx model and an OpEx model, including manufacturingdigital.com

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TAURUS GROUP

housing and connectivity to the internet or their public/private cloud." Being focused on the technical aspects — getting knowledge and making technical solutions work along with concentrating on promoting OCP hardware adoption, Circle B combines its expertise with the financial capabilities and logistics capabilities of Taurus Group to deliver its solutions. "Circle B makes use of Taurus Group's financial department, marketing department and logistics department, which includes its warehouses, contracts, shipping companies, insurers, website managers, and event 142

June 2022

" [OCP is] more energy-efficient, easy to maintain, and more scalable. But this type of all-inone solution wasn't available in Europe" MENNO KORTEKAAS

FOUNDER & CTO, CIRCLE B

TAURUS GROUP

and more scalable. But this type of all-in-one solution wasn't available in Europe." Sustainable operations form a core pillar for Circle B. It is committed to taking sustainability a few notches up, promoting more energy-efficient and easier to maintain solutions. "By offering these solutions that are efficient and easier to maintain, customers can easily replace parts so that they don't throw away a whole device when a small part ceases to work. With the modular design, it is much easier to make replacements of parts for the customers," says Kortekaas. "We are also working on open-source firmware development," says Kortekaas, who compares this service to a mobile phone. "At some point, the manufacturer stops supporting the operating system, so the device no longer has new applications. The open-source firmware initiative called OpenBMC offers customers much longer support in these scenarios, supporting the firmware and updates to extend the life of the product."

organisers. By combining these skills, Circle B can focus on providing its customers with valuable solutions," says Kortekaas. Inspired to do something innovative, Kortekaas founded Circle B in 2015. When working for a large consumer goods company, he began to see the shift from physical load balancers handled by a single person to an application that a team can manage. Kortekaas adds, "I saw that shift happening and was introduced to OCP hardware, which led me to the thought that it was a more innovative way to build servers. It's more energy-efficient, easy to maintain,

ClusterVision Founded almost 20 years ago by Alex Ninaber, Director of High-Performance Computing (HPC), ClusterVision specialises in high-performance computing and managing extensive scale data. "Typically, we provide software solutions to complex business environments, along with HPC installations and knowledge to make these environments successful," says Ninaber. Ninaber adds, "one of the challenges in HPC is that generally, we are dealing with relatively large installations; between €300,000 and €20mn. So, one of the challenges is that one needs a good financial underpinning to provide reliable solutions to the market. Taurus Group provides the manufacturingdigital.com

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TAURUS GROUP

financial infrastructure and distribution services to complete various solutions, ranging from small to huge scale. Solulever opens up different paths for us as it provides us access to specific types of customers we otherwise would not normally be dealing with. Circle B typically takes care of the colocation and data centre for us, which is something that we didn't use to do." Studying his PhD at Birkbeck College (London), Ninaber found that he had a specific need to do large-scale calculations in molecular dynamics. "At that time, large HPC installations were usually located centrally in a country. To do large scale calculations, one had to request time on these machines. So, we figured that we could be much more efficient by buying off-the-shelf hardware, 144

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together with a network and software to create our own HPC installation. This led us to be approached by a business customer to install an HPC division for them within their business. It turned out to be extremely successful, and three years later, we started our own company in the Netherlands." When it comes to harnessing HPC in manufacturing, Ninaber says: "typically in manufacturing, HPC is used in computational fluid dynamics (CFD) calculations of airflow and similar complex yet intricate calculations. For example, wind turbines that we spot everywhere are carefully planned as before they are built; calculations are performed to identify the optimal wind shape in that area. In addition to this, HPC is used heavily in the automotive

TAURUS GROUP

industry. Any process that requires a lot of CPU or GPU calculations, HPC comes to its use. For instance, manufacturing, physics, chemistry, finance, anything AI and even psychology are using HPC solutions today.” Solulever Jitesh Kohli, CEO of Solulever, co-founded the company in 2019. "We operate within the space of industry 4.0, in particular digital manufacturing. We build industrial platforms to simplify our customers' journeys as they digitally transform their manufacturing operations. Our core products are called Brabo Edge Platform and Brabo Factory Cloud. This proposition is called Brabo Edge Platform, a unique platform that makes multiple layers of technologies required

to digitise manufacturing operations redundantly. We focus on batch and process manufacturing companies in Europe and India and have started making inroads in North America," says Kohli. He mentions, "founded in 2019, Solulever, since its inception, was invested into by Taurus Group. Being a part of the family not only provides us with investment into its product development and market expansion, but we also benefit from the collaboration with sister companies, ClusterVision and Circle B, to drive the digitalisation of manufacturing." Delivering hybrid solutions, Solulever offers its customers large scale manufacturing capabilities in batch and process control to digitise their plant manufacturingdigital.com

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operations with real-time insights. "Our foundational product Brabo Edge platform covers 'all nine yards' of digitalisation needs when it comes to manufacturing. Brabo helps manufacturers optimise their manufacturing operations through realtime insights, automation, and transparency into finer operations. Brabo is an open architecture and microservices architecturebased platform. These architectural choices set the platform aside from generic industrial platforms and offer unparalleled flexibility and scalability at a fraction of the cost otherwise possible. Brabo offers comprehensive integration possibilities covering varying complexities found in a shop-floor situation." adds Kohli. Dividing manufacturing into three pillars, Kohli explains that "you are either trying to improve the utilisation of assets, which have been invested into or trying to improve the quality of production or trying to reduce the variable cost of manufacturing. To achieve any of these, there has to be a consistent architecture that is data-led and a continuous innovation programme is driven by common principles. Our platform essentially operates as that common architecture for continuous innovation and continuous optimisation." Taurus Group:

ClusterVision:

Circle B:

Solulever:

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