Procurement Magazine June 2021 by procurementmag

June 2021 | procurementmag.com

Procurement Analytics, Leveraging Network Intelligence for Smart Procurement

Argentus: Reskilling Procurement for Digital Success and Equity Catching the Prewave to Resilient, Sustainable Supply Chains

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The Procurement Team EDITOR-IN-CHIEF

LAURA V. GARCIA DEPUTY EDITOR

RHYS THOMAS GEORGIA WILSON EDITORIAL DIRECTOR

SCOTT BIRCH CREATIVE TEAM

OSCAR HATHAWAY SOPHIA FORTE SOPHIE-ANN PINNELL HECTOR PENROSE SAM HUBBARD MIMI GUNN JUSTIN SMITH

PRODUCTION DIRECTORS

GEORGIA ALLEN DANIELA KIANIČKOVÁ PRODUCTION MANAGERS

OWEN MARTIN PHILLINE VICENTE JENNIFER SMITH PRODUCTION EDITOR

JENNIFER SMITH

VIDEO PRODUCTION MANAGER

MEDIA SALES DIRECTOR

DIGITAL VIDEO PRODUCERS

SALES AND MARKETING DIRECTOR

KIERAN WAITE

SAM KEMP EVELYN HUANG MATTHEW EVANS TYLER LIVINGSTONE MARKETING MANAGER

KAYLEIGH SHOOTER PROJECT DIRECTORS

TOM LIVERMORE JAMES RICHARDSON KARL GREEN

JAMES WHITE

JASON WESTGATE MANAGING DIRECTOR

LEWIS VAUGHAN

CHIEF OPERATIONS OFFICER

STACY NORMAN PRESIDENT & CEO

GLEN WHITE

EDITORS LETTER

A new, more resilient normal? As we make our way to a “new normal” will we remodel more resilient, innovative, and sustainable supply chains or will old habits die hard?

As we make our way to a “new normal” I can’t help but wonder how quickly the need for resilience might be forgotten?

I like to think that my time on this earth has taught me a thing or two. Perhaps not as much as it should have, yet somehow more than I expected. My time spent in procurement, however, has taught me this: People have short memories, and the dollars always count. As we make our way to a “new normal” I can’t help but wonder how quickly the need for resilience might be forgotten? How far will we get on improvements before the next new buzzword makes its way onto our bosses lips or, worse, old bad habits start to reform? Bringing some hope that the global pandemic truly was the impetus we needed, ARPR found that 75% of CIOs and CTOs said IT and innovation are now viewed as more important to their companies’ futures, and 63% said their IT budgets have increased slightly or significantly due to COVID-19. May we be lofty in our goals but pragmatic in our ways. And may we remember the important lessons that came at a very high cost. Lest you worry, I’ll be here to remind you.

LAURA V. GARCIA PROCUREMENT MAGAZINE IS PUBLISHED BY

laura.garcia@bizclikmedia.com

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Bringing the Community to LIVE Broadcast from London to the World

September

28th - 30th 2021 A BizClik Media Group Brand

Featuring:

Keynote Speakers LIVE Roundtable Q&As Networking Lunch Inspirational Presentations

Over 5 Stages:

Main Stage Procurement Stage Supply Chain Stage Sustainability Stage Tech Expo Stage

EARLY BIRD TICKETS

Creating Digital Communities

CONTENTS

Our Regular Upfront Section: 10 Big Picture 12 The Brief 14 Global News 16 People Moves 18 Timeline: Colonial Pipeline Attack 20 Legend: Chris Voss 22 Five Mins With: Jason Roberts

Digital Procurement

Catching the Prewave to a sustainable resilient supply chain

Reimagining the publishing supply chain landscape

APTIM revamps its way to better procurement

Macmillan Education

APTIM

90 ESG

Reskilling procurement for digital success and equity

Procurement Analytics

Strategic decisions driven by smarter procurement analytics

BT Global Services India Delivering through disruption

100

SA Health

Transforming supply chain and procurement

114

Risk management

DHL Resilience360: Navigating disruptions in supply chain

136

Top 10Telehouse KDDI

Diverse companies in procurement Connectivity is our core strength

124

148

Procurement excellence for the People

Leading the IT procurement transformation

Metro Nashville

Telus

BIG PICTURE

Seaspiracy Slamming several marine conservation organisations, accusing them of covering up the environmental impact of fishing and corruption in the fishing industry, the Netflix documentary Seaspiracy has ruffled some feathers,or perhaps some fins. For procurement, the film underscores the criticality of ensuring ethical procurement practices, transparency and traceability in mitigating brand risks.

June 2021

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THE BRIEF “EMERGING TECHNOLOGIES SUCH AS AI, BLOCKCHAIN AND IOT ARE SET TO HAVE A SIGNIFICANT IMPACT ON PROCUREMENT ANALYTICS, OFFERING THE POTENTIAL TO IMPROVE TRACEABILITY OF SUPPLY, IDENTIFY POTENTIAL FAILURE POINTS AND MUCH MORE”

BY THE NUMBERS

A survey from Alvarez & Marsal of Europe’s largest 30 retailers shows that sustainability is driving supply chain change.

70%

Alex Saric,

CMO and Smart Procurement Expert, Ivalua

“As leaders in the industry, we need to take a stand and say, ‘it’s not the ‘80s or ‘90s anymore. Supply Chain isn’t boring. Supply Chain is cool, and here’s why” Bronwen Hann,

President and Senior Partner, Argentus Supply Chain Recruiting READ MORE

“HAVING SHIPMENT VISIBILITY ALLOWS US TO BETTER PRIORITISE RISKS BECAUSE WE CAN, FOR INSTANCE, THAN UNDERSTAND IF, SAY, A LABOUR STRIKE AT A SEAPORT OR A SUPPLIER IS ACTUALLY RELEVANT FOR OUR CUSTOMER” Harald Nitschinger,

Co-Founder and Managing Director, Prewave

June 2021

of the retailers surveyed have begun to change the way they source products.

30%

planning to do so in the future

EDITOR'S CHOICE THE ECONOMY According to the World Bank, the economy shrank by 4.3 per cent in 2020. The Economist also estimates that COVID-18 has resulted in USD$10.3tn in forgone output that could have been produced. READ MORE

RESKILLING PROCUREMENT According to the Canadian Women’s Foundation, only 25% of VP positions in the broader economy are held by women, and only 15% of CEO positions are held by women. READ MORE

COCA-COLA CLEANS UP In its reverse supply chain, Coca-Cola has partnered up with the Nepali government, to help clean up the rubbish left behind by ambitious Everest climbers for the Clean Our Pride initiative. READ MORE

Macmillan Education: Remodelling sustainable supply chains So what do you do when you have an operation that functions out of the UK, sources content from the Far East and distributes around the rest of the world? You organize. And that’s exactly what Shaun did. He established that the forecasting, on which demand was estimated, was not sufficiently accurate - resulting in unnecessary additional costs. He undertook detailed planning and scenario modelling to establish a radical alternative. The new decentralization strategy he devised helped to cut inbound freight costs almost entirely. He adds “The existing model also didn’t meet our sustainability goals as the carbon footprint was way too high.” So he recommended building an integrated supply chain based around local printing and supply. This hub solution – as Shaun calls it – would mean that all the printing, storage and supply could be done from a hub located in each operating country or region around the world, immediately eliminating the long lead times and poor service levels that some clients were facing. After implementation, Macmillan Education’s service levels rose from under 90% to consistently above 99%.”

 ONEWEB London-based OneWeb is building a space-based global communications network that delivers high-speed, low latency internet access. Founded in 2012, OneWeb has now raised a total of $3.4B in total equity funding and is backed by investors such as Qualcomm Ventures, Airbus, and SoftBank Capital.  RALPH LAUREN Ralph Lauren is cool again demand is picking up for the retailer, showing increased topline potential  UNDER ARMOUR Under Armour took a moment to reshape amid the pandemic, and the companies better than expected first quarter results showed the payoffs. Revenue was up 35 per cent to $1.3 billion YOY and gross margin increased 370 basis points to 50.0% YOY.  PELATON Peloton stock takes a tumble after the popular exercise equipment maker announced a voluntary recall of its treadmills.

W A Y U P JUN 21

W A Y D O W N

procurementmag.com

GLOBAL NEWS 1

CANADA

Procurement Chief steps up at Airbus Airbus has announced it is appointing its Procurement Chief, Benoit Schultz, to lead its A220 programme in Canada, taking over from former Finance Executive Philippe Balducchi. Schultz will enter the role “on 1 September 2021, with the aim of reducing losses on the A220 jetliner series”

UNITED STATES

Colonial Pipeline shutdown by hackers Cyber criminal group Darkside shuts down the largest fuel pipeline in the US, gets $5Mil ransom. Panic buying leads to fuel shortages across the Southeast USA .

June 2021

UNITED KINGDOM

New UK inquiry into the supply chain for electric vehicles An inquiry into the supply chain for electric vehicle (EV) batteries is launched in the UK, as car manufacturers plan ahead for EV production.The Environmental Audit Committee (EAC) will examine issues including ethical material sourcing, and investment in training.

INDIA

India’s vaccine procurement strategy comes under scrutiny The Head of the Serum Institute of India, Adar Poonawalla, flees the country after claiming that he had received threats from people needing the vaccine, resulting in India’s vaccine procurement policy coming under scrutiny.

MADAGASCAR

NextSource starts procurement for Madagascar graphite mine NextSource Materials has announced it has begun procurement of processing plant equipment for its Molo graphite mine in Madagascar, East Africa, with the Canadian company securing funding from its strategic investor, Vision Blue Resources Limited.

procurementmag.com

PEOPLE MOVES GLEN MCINTOSH FROM: LITTLE CAESARS PIZZA TO: LITTLE CAESARS PIZZA WAS: VICE PRESIDENT OF DISTRIBUTION OPERATIONS & LOGISTICS NOW: GLOBAL CHIEF SUPPLY CHAIN OFFICER Dedicated to the supply chain industry Glen McIntosh has over 20 years of global experience in food and beverage, consumer products, automotive, transportation and manufacturing industries. McIntosh has taken on the role of Chief Supply Chain Officer at Little Caesars Pizza as of April, but prior to that, he held the position of Vice President of Distribution Operations & Logistics. Aside from his career at Little Caesars Pizza, McIntosh has also worked at Dominos, ProTrans International, Schneider Logistics, and the United States Marine Corps. 16

June 2021

" With his experience and leadership abilities, Glen will help support our continued growth all over the world” DAVID SCRIVANO, PRESIDENT AND CEO LITTLE CAESARS PIZZA

DAVID PETKO FROM: C&S WHOLESALE GROCERS TO: SPARTANNASH WAS: SENIOR VICE PRESIDENT OF SUPPLY CHAIN NOW: SENIOR VICE PRESIDENT AND CHIEF SUPPLY CHAIN OFFICER

MICHAEL HIMMELFARB

Joining SpartanNash as Senior Vice President and Chief Supply Chain Officer, David Petko has more than 20 years of supply chain and distribution logistics experience. As part of his role, Petko will take full responsibility for all aspects of SpartanNash’s supply chain management. “His proven track record of transformational leadership, improved customer and associate satisfaction and driving top-line sales growth and bottomline cost savings will be an asset to our organisation,” said Tony Sarsam, President and Chief Executive Officer, SpartanNash.

FROM: HG PARTNERS TO: TRACKX WAS: FOUNDER AND PRESIDENT NOW: CHIEF MARKETING OFFICER With extensive experience in helping organisations meet their supply chain objectives and support their environmental, social and governance (ESG) initiatives, Michael Himmelfarb has joined the team at TrackX as Chief Marketing Officer.“TrackX is uniquely positioned to add tracking, transparency and trust to their supply chain, the critical piece to meeting ESG goals. I’m looking forward to helping TrackX grow by building its reputation as the premier supply chain ecosystem collaboration hub.” procurementmag.com

TIMELINE COLONIAL PIPELINE ATTACK

On Thursday, May 6th 2021, hackers, later to be identified as criminal group DarkSide, launched a cyberattack on the US largest fuel pipeline, causing a six-day outage that led to fuel shortages and price spikes across the country. In the end, DarkSide ran for the hills. It’s unknown if it took its money with it.

06.05

08.05

09.05

10.05

Day 1

Day 2

Day 3

Day 4

Hackers launch Colonial Pipeline cyberattack, causing the biggest US gasoline pipeline to shut down. The hackers steal 100 gigabytes of data before locking computers with ransomware and demanding payment.

US Government and unnamed US companies assist Colonial Pipeline in attack response. To stop the flow of stolen Colonial Pipeline data, key servers operated by the hackers are shut off, halting pipeline operations. Colonial Pipeline issues its first statement.

A Former US government official says investigators are looking at a group dubbed "DarkSide," known for deploying ransomware and extorting victims while avoiding targets in postSoviet states. Colonial issues second statement detailing current status and plan.

The FBI confirms that the Darkside ransomware is responsible for the compromise of the Colonial Pipeline networks. Colonial issues third statement aims to substantially restore operational service by the end of the week. Colonial issues fourth statement advising of their incremental restore strategy.

June 2021

11.05

12.05

13.05

14.05

Day 5

Day 6

Day 7

Day 8

The CSIA and FBI issue a cybersecurity advisory describing DarkSide ransomware and risk mitigation strategies. Colonial Pipeline’s Website Offline for a portion of the day. Colonial issues fifth statement describing alternative fuel shipping strategies and preparations for restart.

Colonial issues its sixth statement. At about 5:00 p.m. ET, Colonial Pipeline Restarts Pipeline Operations. Its reported panic buying has caused more than 1,000 fuel stations to run out of gasoline in the Southeastern US. Colonial Pipeline’s website is restored.

Bloomberg reports that on May 7, 2021, Colonial Pipeline paid nearly $5 million in untraceable cryptocurrency to Eastern European hackers within hours after the attack, contradicting reports that the company had no intention of paying an extortion fee to help restore the fuel pipeline.

DarkSide announces it has lost control of its servers and some of the money it received from ransom payments and is shutting down due to pressure from the US. It is unclear if the message is a ruse for the group to avoid paying its partners.

procurementmag.com

LEGEND

Chris Voss

When it comes to negotiating, Chris Voss, a former international hostage negotiator for the FBI, is most definitely a legend.

oss's career took him from the rough streets of Kansas City, Missouri, to negotiating with all sorts of bad guys, from kidnappers to bank robbers and terrorists. At the pinnacle of his career, Voss became the FBI's lead international kidnapping negotiator. Author of Never Split the Difference: Negotiating as if Your Life Depended on It injects emotional intelligence and empathy into negotiation strategies. Today, the Founder and CEO of The Black Swan Group Ltd. solves business communication issues by leveraging his once hostage negotiation tactics. Voss spent 24 years working in the FBI Crisis Negotiation Unit. During that time, he was trained in the art of negotiation by the FBI, Scotland Yard, and Harvard Law School. He is the recipient of the FBI Agents Association Award for Distinguished and Exemplary Service and the Attorney General's Award for Excellence in Law Enforcement. In his book, Never Split the Difference, Voss offers his readers 20

June 2021

£1m

Donated to Charity

some of the skills that helped him save lives and shares nine principles, tactics and strategies. Voss uses what he calls Tactical Empathy, which, plainly stated, weaponises empathy and leverages emotional intelligence to influence your counterpart's emotions and make your way to optimal outcomes. In his book, Voss explains the importance of seemingly small but important details such as paying attention to your tone of voice and how you enter into a conversation. Voss also offers some perhaps unconventional and most definitely controversial ideas such as, we are not rational beings, there is no such thing as 'fair', compromising is the worst thing you can do, and the art of negotiations lies in mastering the No. Ideas that may be scoffed at if it weren't for Voss' proven track record of saving lives and talking criminals and hostage-takers out of, or into, just about anything. Whether you're in high-stakes negotiations or fighting over what to watch on Netflix, Voss's strategies can improve your persuasiveness and help you negotiate your way to a better deal.

“He who has learned to disagree without being disagreeable has discovered the most valuable secret of negotiation” procurementmag.com

FIVE MINS WITH...

JASON ROBERTS JASON ROBERTS IS THE CEO AND FOUNDER OF KALEIDA, EUROPE’S FIRST, FULLY INCLUSIVE, INTERACTIVE B2B MARKETPLACE FOR TENDERS AND A CONDUIT WITH WHICH BUYERS CAN MEET AND ENGAGE WITH SUPPLIERS.

Q. WHO ARE YOU, AND WHAT DO YOU DO?

» I'm Jason Roberts, the founder and CEO of Collider international. We're a B2B marketplace for tenders, and we specialise in helping suppliers, and buyers find and identify innovation through new suppliers whilst helping B2B suppliers and diverse suppliers find new revenue opportunities.

Q. CAN YOU TELL ME ABOUT YOUR EXPERIENCE PRIOR TO KALEIDA?

» I spent about 24 years working in

financial services. The first 11 years were within investment banking. I worked for JP Morgan for five years and a few other international investment banks. Then I left banking on the technology side and moved to selling technology and services to banks, asset managers, and hedge funds.

Q. DO YOU FEEL LIKE YOU WERE AS SUCCESSFUL AS YOU COULD HAVE BEEN IN SALES?

» No, I wasn't. “I'm a six-foot-five

black man. When I walk into an office building to sell my company's products and services, they see me first of all, before anything I’m selling or representing. And with that comes challenges that I have to try to get around and that I have to try to help them overcome as

“I SPENT ABOUT 24 YEARS WORKING IN FINANCIAL SERVICES” 22

June 2021

“THIS IS DIFFERENT FROM BEING RACIST, BUT IT'S ABOUT RACISM” well. This is different from being racist, but it's about racism. We're talking about how society has conditioned the perceptions of people.

Q. HOW DID THAT EXPERIENCE LEAD YOU TO FOUND KALEIDA?

» As an employee working for large

international firms selling their stock and services, I feel I experienced something similar to the issues that diverse suppliers are up against.There are certainly SMEs represented by a minority individual such as a black person, a female, or someone from the LGBTQ community, that when they walk into a room, there is an automatic negative perception that they experience. And that's the very thing that I think stops suppliers from being successful. For example, if a veteran walks into a venue to sell a product, perhaps there is an immediate concern about PTSD. These negative stereotypes impact the success SMEs will experience, despite the quality

or superior nature of their product or service. So from my experience as a black male, I can certainly understand the unconscious bias experiences of other marginalised communities, and so Kaleida was designed to help. Although, the initial purpose was to help Small and Medium-sized Enterprises (SMEs) sell more products and services and help companies be financially successful. But as I began to collect the data around the companies, it became apparent that what we could do with our platform was to help businesses improve on their supplier diversity while levelling the playground for diverse suppliers. In the US, they've had the Dodd-Frank act for almost 11 years [enacted on July 21, 2010] and that has helped to encourage the use of underutilized communities. Over here in the UK and Europe, however, we have nothing like that. So, essentially, we've got 12 years to make up for regarding supplier diversity. And that's really how we got to where we are today.

Q. WHAT’S YOUR END GOAL?

» Eventually, from a diversity standpoint, the goal is that we’re not needed anymore, that biases are removed and everybody has a fair playing ground. procurementmag.com

Top 100 Leaders in Supply Chain September 2021 To be announced at the Procurement & SupplyChain LIVE Event NOMINATE NOW

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Creating Digital Communities

MACMILLAN EDUCATION

REIMAGINING THE PUBLISHING SUPPLY CHAIN L ANDSCAPE

WRITTEN BY: MELISSA KHAN PRODUCED BY: THOMAS LIVERMORE

June June2021 2021

MACMILLAN EDUCATION

procurementmag.com

MACMILLAN EDUCATION

Shaun Plunkett, VP of Global Supply Chain, provides an exclusive insight into Macmillan Education’s global supply chain transformation

1843

Year Macmillan was founded

2000+ Number of Employees

June 2021

t isn’t every day that you come across an organisation that was founded in the 1800s and is still running to this day. With a 175-year history, Macmillan Education is one of the world’s oldest and most renowned publishing houses, providing books, digital tools and educational content to pupils and teachers all over the world. With a local presence in over 120 countries, Macmillan Education works with a global community of teachers and educators whose aim is to leave the world better than they found it by sharing knowledge and advancing learning. It is a company with responsibility at its heart and – along with its parent company Springer Nature – measures and manages its environmental and social impact. In 2019, Macmillan Education reduced the use of plastic in teaching materials and donated over 97,000 textbooks to schools and universities in lower income countries. So how does an organisation with such a long history function in the hyper-advanced world of today? The simple answer – a transformed supply chain. Providing a bit more depth into Macmillan Education’s operations is Shaun Plunkett, Vice President Global Supply Chain. Plunkett, who joined Macmillan Education in 2016 immediately identified the weaknesses the legacy operating practices presented. He spent the next year or so defining a supply chain

MACMILLAN EDUCATION

procurementmag.com

Grupo Espinosa: 70 years of constant evolution A proudly Mexican company servicing the publishing industry with best-in-class printing, storage and distribution facilities in the heart of Latin America Founded in 1952, Grupo Espinosa has been relentlessly supporting the publishing industry with producing more than 100 million copies every year. No project is big or small for Grupo Espinosa, as the facility can scale up on demand and their turnaround times are highly competitive. Grupo Espinosa works with on-demand digital press or offset press, in paperback with glued softcover binding, PUR softcover binding, stitched paperback binding, binder’s board, hardcover, saddle stitched, Spiral or Wire-O. Equipped with the experience needed for a product to leave the plant ready for distribution, Grupo Espinosa delivers anywhere inside or outside Mexico. With nearly 70 years behind them, and located in Mexico City, Grupo Espinosa has two major locations that they operate out of. Both locations are controlled by a single ERP (Enterprise Resource Planning) system ensuring speed, consistency and quality of work. Tirado says this isn’t their only competitive advantage. He adds “Our

competitive advantage is the relationship we have with customers and the trust they put in us with their intellectual property”. Speaking of trust, global publishing giant Macmillan Education exclusively partners with Grupo Espinosa for their Latin America operations, as part of Macmillan’s decentralized hub strategy. Having a facility that offered the full spectrum of service – from storing digital content to printing and distributing – was one of the major requirements for Macmillan, and Grupo Espinosa was recognized as the leading printing hub for providing this 360 infrastructure. Another factor that has led to success for Grupo Espinosa is the absolute focus on quality and time. Sustainability is a huge factor playing into Grupo Espinosa’s operations, and they’ve created a healthy environment with the sustainable use of paper and energy resources as well as keeping their employees – most of them associated with the organisation for over 10 years – happy.

Learn more

Macmillan Education & Edelvives

Partnership makes us stronger

Find out more about our Printing and Logistics services Vertical integration Warehousing and Distribution solutions Personalised attention Trustworthy

supplychain@edelvives.es

www.edelvives.com

MACMILLAN EDUCATION

“ The operation I inherited was Far East focused, where a team of about 30 would report into me, source and bring books to our single warehouse in the UK, and then ship a lot of books out again back to Asia. So you can imagine there were some inefficiencies there.”

SHAUN PLUNKETT TITLE: VP GLOBAL SUPPLY CHAIN COMPANY: MACMILLAN EDUCATION INDUSTRY: PUBLISHING LOCATION: LONDON, UNITED KINGDOM Shaun Plunkett VP Global Supply Chain for Macmillan Education has over 30 years of supply chain leadership experience in FMCG, entertainment and media sectors supporting multi-billion euro businesses including Universal Music, EMI, Sony Music, Harper Collins and Associated British Foods. He has a track record of successfully delivering transformational change coupled with, award winning operating models and developing and coaching global teams. Challenging the status quo is at the heart of what drives Shaun on a daily basis and encouraging others to continuously push the boundaries.

SHAUN PLUNKETT

transformation strategy to deliver an operating model that would deliver improved cost, service and support growth opportunities. Shaun is an experienced supply chain leader, with experience of over thirty years. A naturally charismatic and motivated leader, Shaun has a leadership style that is one of engagement and open conversation. In a preCOVID world, Shaun spent most of his time traveling and meeting people in local offices across the globe in order to better understand their market dynamics, customer needs and to understand what they were expecting of a future supply chain. He also made it a point to meet other internal stakeholders and key supplier partners so he could get the full picture of end-to-end operational practices and measure existing service levels. As an extension to his leadership strategy, Shaun prides himself on being a change agent, someone who is invested in improving

EXECUTIVE BIO

VP GLOBAL SUPPLY CHAIN, MACMILLAN EDUCATION

procurementmag.com

MACMILLAN EDUCATION

In bound Freight costs reduced by

90%

Service level consistently rose to

99%

June 2021

MACMILLAN EDUCATION

processes by challenging the status quo, and raising the bar for service in whatever capacity he can. Shaun has been responsible for delivering a resilient and agile model based on

“I could sense the pain, and that level of service was just not going to be acceptable and sustainable, to avoid losing business to our competitors ultimately” SHAUN PLUNKETT

VP GLOBAL SUPPLY CHAIN, MACMILLAN EDUCATION

regional supply/ printing hubs with strategic partners in each continent. The strategy has delivered multi-million euro savings across freight, packaging, inventory and production. Speaking further about his strategy for Macmillan Education, Shaun says that the need for reform was imperative, adding “The operation I inherited was Far East-focused, where a team of about 30 would report into me, source and brings books to our single warehouse in the UK, and then ship books in some cases out again back to Asia. So you can imagine there were some inefficiencies there.” Soon after he presented his findings to Springer Nature, Shaun was tasked with the job of creating a supply chain system that cut time, costs and dependencies on this single-region sourcing model. Since the manufacturing was Asia-focused, lead times were significant and this created a non-traversable obstacle for Macmillan Education’s operations. Shaun remembers one of the early conversations with executives at the company about the frustrations that some of the legacy system was bringing on. He says “I could sense the procurementmag.com

At CLOC we specialise in working with large organisations in helping to improve print efficiency, and reducing print spend in the following ways: •

Flat pricing model – Supports auto-stock replenishment of small batch quantities and encourages production teams to only order what is needed. This keeps the long tail of products commercially viable even down to 1 book whilst avoiding any waste.

•

On demand low volume printing – As little as one copy. Zero stock; what you order is what you need – no waste or storage costs – great for the environment.

•

Stock management – Triggered stock replacement and fulfillment services.

•

Simplified bespoke ordering platforms and reporting; provides managed print spend through budget code automation, as well as many other budgeting methods.

•

Our digital state of the art printing technology delivers class leading quality, efficient and automated production processes with reduced manufacturing costs.

•

Our combined print technologies – Mixing digital printing with large press printing, delivers cost savings and increased production speeds for larger production volumes.

•

Targeted print – Variable data printing from template driven files via a bespoke ordering platform.

•

High volume copying services through our large digital printers, deliver lower costs against onsite copiers.

•

Our security printing – We are a trusted and accredited security printer, delivering court bundles for many organisations as well as exam printing for 10 key Universities.

•

Our combined processes can deliver the fastest production speeds, same day is commonly available.

CLOC play a key role with Macmillan Education, by delivering on demand printed books within a flat pricing model.

For further information please email: info@clocltd.co.uk or call 020 8801 6983

Click here to learn more

MACMILLAN EDUCATION

Macmillan Education Insights Index

pain, and that level of service was just not going to be acceptable or sustainable, if we were to avoid losing business to our competitors.” So what do you do when you have an operation that functions out of the UK, sources content from the Far East and distributes around the rest of the world? You organise. And that’s exactly what Shaun did. He established that the forecasting, on which demand was estimated, was not sufficiently accurate - resulting in unnecessary additional costs. He undertook detailed planning and scenario modelling to establish a radical alternative. The new decentralisation strategy he devised helped to cut inbound freight costs almost entirely. He adds “The existing model also didn’t meet our sustainability goals as the carbon footprint was way too high.” So he recommended building an integrated supply chain based around local printing and supply. This hub solution – as Shaun calls it –

would mean that all the printing, storage and supply could be done from a hub located in each operating country or region around the world, immediately eliminating the long lead

“One of the main challenges was sustainability, and this model was clearly not meeting our sustainability goals as the carbon footprint was way too high” SHAUN PLUNKETT

VP GLOBAL SUPPLY CHAIN, MACMILLAN EDUCATION procurementmag.com

BRINGING INK TO LIFE SINCE 1968 The health of our planet has never been more threatened. As print evolves, so does where to print. APP partners with global educational publishers to deliver local supply chain excellence in the Middle East using zero-inventory and traditional manufacturing models.

CAPABILITIES • • • • • • •

Print-On-Demand Content Management Digital Media Regional ME Logistics Warehousing Solutions Long-run Offset Packaging Division

LEARN MORE TODAY

MACMILLAN EDUCATION

“ What I recommended was building an integrated supply chain based around local print and supply” SHAUN PLUNKETT

VP GLOBAL SUPPLY CHAIN, MACMILLAN EDUCATION

times and poor service levels that some clients were facing. After implementation, Macmillan Education’s service levels rose from under 90% to consistently above 99%. Another factor that contributed to the transformation of the supply chain was the issue of legacy content storage. Files were previously stored traditionally, often sitting with printers or local offices, which led to a significant waste of time and higher risk of version errors. To counter this, Shaun implemented a new digital archive system, meaning all content files were now held up to date and easily distributed to printing partners. He adds, “We’re seeing improvements in quality and a lack of mistakes because we've cleaned up all that procurementmag.com

MACMILLAN EDUCATION

ADVERT SILVER

June 2021

legacy content. We now know when we want to print something it's the right book, it has all the right content. And we also know we can print it anywhere anytime on demand, so we have a lot of confidence in that digital supply chain now.” Over the course of the past year during the COVID-19 pandemic, teachers around the world have had to rapidly adapt to online teaching and learning, and many classrooms have operated remotely for periods at a time. Macmillan Education was adapting to new digital offers already and the pandemic has led to a further focus on a robust digital-only offering, although printed components remain a key ingredient of their blended offer. The pandemic has also brought about barriers on transport, country-wide shutdowns and reduced-

capacity workplaces, making the need for decentralised hubs essential for operations to keep running. Elaborating further on how these hubs work, Shaun mentions that partnerships played a key role in bringing his strategy to life. Notable partners include Grupo Espinosa based in Mexico, Edelvives in Spain, Arab

“We’re seeing improvements in quality and a lack of mistakes because we've cleaned up all that legacy content” SHAUN PLUNKETT

VP GLOBAL SUPPLY CHAIN, MACMILLAN EDUCATION procurementmag.com

June 2021

MACMILLAN EDUCATION

“We now know when we want to print something, it's the right book, it has all the right content. And we also know we can print it anywhere, anytime on-demand, so we have a lot of confidence in that digital supply chain now.” SHAUN PLUNKETT

VP GLOBAL SUPPLY CHAIN, MACMILLAN EDUCATION

Printing Press in Lebanon and Cloc in the UK. One of Shaun’s first experiences with the hub system took place in Singapore, where he observed an entire production, warehousing and fulfilment operation under one roof. This was the catalyst for Shaun’s decentralised model, and he soon met with other partners in order to convince them to make investments and transform their infrastructure. To his surprise, he wasn’t met with resistance, as the partner companies soon realized that transforming their own operations could mean a higher volume of production and the potential to sell on the model to other clients. These partners recognized the mutual benefit, with Grupo Espinosa – for example - currently printing and delivering nearly 1.5 million books per year for the company. In the summer of 2020, when Lebanon experienced a catastrophic explosion at their port, one warehouse partner lost their entire facility. Incredibly Arab Printing Press was able to remanufacture all local requirements in 2 weeks and our third party logistics vendor found an alternate warehouse within days. Edelvives, a long term partner based in Spain, has been transforming its operations in line with the hub model by acquiring a new warehouse and installing print on demand equipment. Cloc, based in London, is the local

partner in the UK and has introduced a fast track digital printing service in order to support print on demand services and eliminate unnecessary waste. When it comes to sustainability, Macmillan Education has made notable strides in ensuring they use sustainably sourced paper for all publications. They have also reduced the use of plastic globally, eliminating shrinkwrapping and packaging wherever possible – amounting to millions fewer items of plastic in use each year. As a business, Springer Nature has committed to supporting delivery of the UN’s sustainable development goals, and so as a part of the larger organisation, Macmillan Education follows suit. As a closing statement, Shaun is once again reminded of the challenges that lie ahead, but is confident that with the right kind of transformation in place, the future looks bright. He concludes “Macmillan Education is an old organisation, I would say, and needed to consider emerging potential risks as the world is moving on. Actually you can't just stay still. People will overtake you and you need to change, and so this has been a roller coaster and fun journey, but there is more to come.”

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DIGITAL PROCUREMENT

CATCHING THE PREWAVE TO A SUSTAINABLE RESILIENT SUPPLY CHAIN Why are some of the world’s largest automakers catching the Prewave to sustainability and resilience? Co-founders Dr Lisa Smith and Harald Nitschinger. WRITTEN BY: LAURA V. GARCIA 44

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DIGITAL PROCUREMENT

n the innocent age of 2017, years before we knew Covid-19 to ever be a thing, and sustainability and supply chain resilience weren’t garnering nearly the attention they are today, Dr Lisa Smith and Harald Nitschinger co-founded Prewave, a cloud-based, real-time supply chain risk intelligence platform that’s been adopted by some pretty serious players, such as Audi, Porsche, and Volkswagen. So, how did it all start? Dr Lisa Smith and Harald Nitschinger sit down with Procurement Magazine to share their story, how it all works, and why it’s a big enough deal to grab the attention of some of the world’s largest automakers.

Smith kicks us off, “Harald and I, we founded Prewave together in 2017. This was after I finished my PhD at the Technical University in Vienna in informatics, where I had already spent five years researching the technology that is now at the core of Prewave. So it's really a university spin-off that turned into a startup. “I was very much interested in the sustainability of companies and their supply chains. And while working on my PhD I was researching new data sources that could help us to gain more transparency and knowledge on what was happening in supply chains. At the time the research topic was if we could use social media data to better procurementmag.com

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DIGITAL PROCUREMENT

“ Where other sustainability solutions rely on supplier assessments and other supplier-provided inputs, the Prewave solution at its core relies on public data” HARALD NITSCHINGER

CO-FOUNDER AND MANAGING DIRECTOR, PREWAVE

understand what is going on in supply chains in real-time. “Can we find out where standards are not okay? Can we find out where there may be pollution, but also can we find out what disruptions are going on? Like fires, explosions, or anything else that could potentially disrupt global supply chains? This was basically where we started and then we researched the technology together with the university and with other universities from Asia. “After that, Harald and I, who had known each other since high school, decided to

found this company together. Harald brought in his industry knowledge and we had regular exchanges on what I was researching and Harald saw the potential it had for the industry. And that is basically how Prewave was born. “Then the journey started of how can we best bring this technology into the market. This was where a lot of Harald's networking knowledge came in to use, in order to transform this technical prototype into the market-ready product global platform it is today.” Catching the Prewave One of the great things about Prewave, is that it meets you wherever you are at, providing a very low barrier to entry. Nitschinger explains.“One of the main advantages of a solution like Prewave is that you can start almost immediately. procurementmag.com

DIGITAL PROCUREMENT

“ Having shipment visibility allows us to better prioritise risks because we can, for instance, than understand if, say, a labour strike at a seaport or a supplier is actually relevant for our customer” HARALD NITSCHINGER

CO-FOUNDER AND MANAGING DIRECTOR, PREWAVE

What we need as a starting point is just the basics, a list of suppliers that our customers would be interested in monitoring. Everybody has that to some degree. The difficulties lie in gaining visibility on the end-to-end supply chain, down to the raw material. But the first tier of direct suppliers is normally not an issue and it’s all we need to get started. “When we work with customers, we onboard them and within weeks, they will be ready to receive risk alerts and start 48

June 2021

monitoring. And therefore the barrier to entry is extremely low. Where other sustainability solutions rely on supplier assessments and other supplier-provided inputs, the Prewave solution at its core relies on public data. This means our customers don't need to ask for permission or cooperation from anybody. They can just start. And therefore, it's one of the first steps a company can take into the sustainability and risk management landscape because it's the first level of transparency.

DIGITAL PROCUREMENT

“We work with companies with complex supply chains. Many of our customers have hundreds, if not thousands of suppliers, and they have a level of in-transparency. Their supply chains are complex enough that they cannot manually keep track of what's going on within their supply chains on a day-to-day basis. If you think about a company like Volkswagen, tens of thousands of suppliers, how can you possibly keep track of what's happening at those companies on a day-to-day basis? You need an automated system, an artificial intelligence-based system that enables you to get a consolidated risk feed of what is happening at those suppliers in a structured and highly consolidated way.” “That's why companies like Volkswagen, who of course need to roll this out for tens of thousands of suppliers, choose to partner with Prewave because it's actually feasible for them to do it within a short period of time.” “We basically support them in reading and understanding huge volumes of data, which are published on social media and news media all around the world in order to figure out what is happening in their supply chain. And then we also help them to collaborate with their suppliers. It's not a necessity, but it’s a capability our platform has. You can quickly get status updates and feedback from your suppliers on orders and work to resolve the issues.” Mitigating Supply Chain Risk There are many areas of risks and potential threats to your business that lurk within your supply chain. To name only a few, and in broad strokes, risks can include environmental risks, cyber risk, natural disasters, operational risk, product incidents, consumer unrest, financial stress, legal stress,

Dr. Lisa Smith Dr. Lisa Smith is co-founder and managing director and focuses on the data science research & development at Prewave GmbH. Dr Smith developed the idea and the technology behind Prewave in her dissertation at the Faculty for Informatics at TU Wien.

Harald Nitschinger Harald Nitschinger, BA is co-founder and managing director and focuses on sales & platform development. Harald has five years of experience in B2B Sales.

political and labour unrest and Corporate Social Responsibility (CSR) incidents such as unethical labour, poor working conditions, pollution or contamination. The landscape of risk is vast, which is why Prewave monitors your supplier base for things like labour strikes, lawsuits, floods, hurricanes, unpaid wages, or perhaps citizens complaining about air pollution or water contamination. procurementmag.com

DIGITAL PROCUREMENT

Using predictive analytics, Prewave can also report on risk events before they even happen. ArcelorMittal in Taranto, Italy had their first pollution alert on April 27th 2020. The situation then worsened in July, kicking off an investigation. Finally, on February 19th 2020 there was the official order to close the furnace. Essentially, Prewave created the first alert for this string of events nearly 10 month in advance.

June 2021

Nitschinger explains the complexities of identifying risks in a global supply network. “A purchaser or supply chain manager say in central Europe or North America they most often aren’t aware of the risks that lay in their global supply networks because they don't have that visibility into what is happening in, for instance, Indonesian language on Twitter. And therefore, it oftentimes takes weeks or even months for that information to somehow trickle up the chain. “Maybe some NGO picks it up and reports on it. But you could have found out months ago based on social media sources, and that's where Prewave gets its

DIGITAL PROCUREMENT

on board to collaborate with them and to also bring their suppliers on board. So it's really a rolling model of invitations and of collaboration that emerges within supply chains. We have currently thousands of active suppliers on Prewave commenting on risks that are happening at their facilities. And those companies can bring on their suppliers which really allows you to map your supply chain on a deeper level,” says Nitschinger. State of the Art AI Provides Actionable Insights Smith gives us the details. “The core technology that is behind Prewave uses state of the art AI and natural language processing, and I think this is where we really are different from any other solution on the market. The alerts we're generating are machine-generated. This is where machines have a lot more of an edge compared to humans of course when it comes to reading terms of use and social media data every second. And we do this in 50 different languages, and by analyzing text in local languages, that is where we can also find further risks, with say, suppliers in name because we allow customers to stay ahead of the curve and not be surprised by risks, but rather identify them and react to mitigate the impacts as soon as possible.” Supply Chain Mapping: Gaining Transparency You can’t manage what you can’t see. Supply chain mapping is essentially the first task in garnering greater supply chain visibility to allow for more in-depth risk management efforts, and it can be a herculean task all on its own. Prewave can help, streamlining and automating the process. “Another very critical element of the Prewave solution is that it allows our customers to invite their suppliers to come

Prewave monitors your suppliers throughout the internet and creates risk alerts. Kärchers is now monitoring all suppliers in real-time, in fifty different languages and using millions of media sources powered by Prewave’s AI. Prewave’s Disruption Map allows a global supplier status overview with easy visual tracking of suppliers using a simple traffic light system.

procurementmag.com

DIGITAL PROCUREMENT

June 2021

DIGITAL PROCUREMENT

“We work with companies with complex supply chains. Many of our customers have hundreds, if not thousands of suppliers, and they have a level of in-transparency” HARALD NITSCHINGER

CO-FOUNDER AND MANAGING DIRECTOR, PREWAVE

Turkey, Vietnam, China, or in Brazil. That is the advantage of the AI-based approach.” Of course, the entire point of identifying risk is so you can evaluate the potential impact on your business and react accordingly, and when it comes to supply chain, a significant amount of risk lays within the movement of goods and raw materials. Working with shipment visibility providers, Prewave can marry the data and provide alerts and information that is relevant to your shipments and your business, all on one dashboard. Not only will you know a shipment is delayed, but why. As Nitschinger puts it, “Having shipment visibility allows us to better prioritise risks because we can, for instance, than understand if, say, a labour strike at a seaport or a supplier is actually relevant for our customer. If there's not a single shipment leaving within the next three weeks, for example, you can then entirely disregard it from an operational standpoint.” Simplified supply chain risk management, with easy onboarding. It explains Prewave’s impressive customer base.

procurementmag.com

APTIM

June June2021 2021

APTIM

APTIM REVAMPS ITS WAY TO BETTER PROCUREMENT WRITTEN BY: LAURA V. GARCIA

PRODUCED BY: GLEN WHITE

procurementmag.com

APTIM

ADJUSTING TO INDUSTRY AND COMPANY CHANGES, APTIM LEVERAGES TECHNOLOGY AND REVAMPS ITS WAY TO BETTER PROCUREMENT AND SUPPLY CHAIN

eople. Process. Tools. Sometimes referred to as the golden triangle, it's an old concept that optimises the relationships between people, processes and the tools required to get the job done. APTIM is using this age-old strategy to propel its supply chain and procurement transformation journey. By ensuring the right people, with the right mindsets are given the right tools, APTIM is working to fix what's broken, and leveraging technology to optimise where it makes sense, and getting to better procurement in the process. Punit Shah, VP of supply chain and procurement officer at APTIM, walks us through. Digital Transformation; Setting the Pace and Challenging Mindsets "Private equity ownership has a very unique and a much faster-paced ask and requirement as compared to a traditional oil and gas firm whose structure and identity had a few iterations in recent times, owing to changes in ownership. In terms of establishing a base to grow from, the two backgrounds present quite a stark contrast. "It took a lot for the company to bring those two together, but right now, our approach is to bite off as much as we can chew. We want to take small steps but make sure that they are: a) consistent with the strategy, b) they're relevant to the business in size, scale and scope and c) we can continue to build on that. We don't want to do something we have to backtrack from or restart because we didn't think of something further downstream. And so it's a very cautious and slow but deliberate approach. "We started by ensuring we had the right people with the relevant backgrounds and

June 2021

APTIM

procurementmag.com

APTIM

APTIM’s Supply Chain Title of the video & Procurement Transformation

skillsets to execute in the areas that are our responsibility. In order to do that, we needed to define what that breadth and depth of the supply chain realm and scope would be. Once we got there and got the right people in the right structure, the next step was going through documenting our processes and making sure that we were rigorous about it. This ensured everybody was working off of the same framework. Then we looked at bringing in tools where it would increase efficiencies by making it easier for people to execute on those processes." People First Redesigning better ways of doing things requires a diverse group of people, a wealth of experience, and most importantly, it requires flexible mindsets. "One really unique thing about APTIM is that we are very diverse in the sense that we are both diverse in the industries we serve and in multiple geographies. I've been in larger 58

June 2021

companies that don't have as wide a breadth of scope as APTIM does. We are in a lot of different areas, and so management, in general, is very accommodating and are very in tune with diversity and inclusion. They're very encouraging and employee-focused because, at the end of the day, our product is our service, and so the company really does value their people," says Shah. He continues, "That flexibility supports people to be able to perform and stay focused on work and their function more than the traditional thought processes, where it was believed you have to have an office and a set work schedule. Having flexibility around all of those things has made us a lot more successful." "This industry has been traditionally very resistant to change. It's in our DNA. They're known to be entrenched in the way that they've done work. One of the things I found is working well is that we're trying to foster the thought process with our teams that

APTIM

“ EXPERIENCE IS FANTASTIC, BUT IT DOESN'T MEAN THAT THAT'S EXACTLY WHAT WE NEED HERE. I WANT YOU TO USE IT TO ASSESS OUR SITUATION AND THEN TELL ME WHAT'S RELEVANT AND HOW WE CAN MAKE THIS BUSINESS BETTER”

PUNIT SHAH TITLE: VICE PRESIDENT SUPPLY CHAIN AND PROCUREMENT OFFICE INDUSTRY: CONSTRUCTION LOCATION: UNITED STATES Operations leader and executive achiever with broad experience in Energy, Construction, and Manufacturing industries, driving supply chain strategy and sustainability in cost-savings, profitability, and productivity. Innovative and strategic decisionmaker with a focus on total cost of ownership, reducing costs, and optimizing efficiencies. Harness engineering background to deliver rigorous solutions to business problems. Relationship builder and motivational manager able to adapt to skillfully maneuver through challenging circumstances and drive collaboration in delivery of organisational goals. Strong problemsolving talent.

PUNIT SHAH

your experiences are great and they make you what you are, and we value what you've learned, but you need to understand that not only are you allowed to, but you're expected to take those learnings and translate them into something that's more relatable to this business. "Experience is fantastic, but its true value lies in being able to scale it and applying it to your circumstances. I want you to use your experience and knowledge to assess our situation and then tell me what's relevant and how we can make this business better. I think that's what really sets our supply chain team apart." "Personally, I think a healthy company needs to be looking at growing and promoting talented employees. These days, people have multiple options, and a company owes it to an employee to support their growth and inversely, as they grow, the company does too. We are also one of the industries that are experiencing a talent gap and are very much exposed to the ageing workforce phenomenon. And so, one of the first things that I established when I came in was an

EXECUTIVE BIO

VICE PRESIDENT SUPPLY CHAIN AND PROCUREMENT OFFICER, APTIM

The right materials. At the right place. At the right time. Industry Measured Results SiteSense® Materials and Inventory Management helps customers keep track of the materials throughout their project lifecycle more efficiently.

40%

REDUCES BULK MATERIAL SUPPLIES

23%

IMPROVES CASH FLOW SAVINGS

16%

IMPROVES CRAFT LABOR PRODUCTIVITY

* CII Best Practices Guide: Improving Project Performance

Intelliwave SiteSense boosts APTIM material tracking and predictive analysis

Barry Peyton, Business Development and Strategic Partnership Manager at Intelliwave Technologies, outlines how it provides data and visibility benefits for APTIM We’ve been engaged with the APTIM team since early 2019 providing SiteSense, our mobile construction SaaS solution, for their maintenance and construction projects, allowing them to track materials and equipment, and manage inventory. We have been working with the APTIM team to standardize material tracking processes and procedures, ultimately with the goal of reducing the amount of time spent looking for materials. Industry studies show that better management of materials can lead to a 16% increase in craft labour productivity. With APTIM, we’re looking at early risk detection, through predictive analysis and forecasting of material constraints, integrating with the ecosystem of software platforms and reporting on real-time data with a ‘field-first’ focus – through initiatives like the Digital Foreman. The APTIM team has seen great wins in the field, utilising bar-code technology, to check in thousands of material items quickly compared to manual methods.

As things start to stabilise, APTIM continues to utilize SiteSense to boost efficiencies and solve productivity issues proactively. Integrating with 3D/4D modelling is just the precipice of what we can do. Access to data can help you firm up bids to win work, to make better cost estimates, and AI and ML are the next phase, providing an eco-system of tools. A key focus for Intelliwave and APTIM is to increase the availability of data, whether it’s creating a data warehouse for visualisations or increasing integrations to provide additional value. We want to move to a more of an enterprise usage phase – up to now it’s been project based – so more people can access data in real time.

There are three key areas when it comes to successful Materials Management in the software sector – culture, technology, and vendor engagement. Solving problems comes down to better visibility, and proactively solving issues with vendors and enabling construction teams to execute their work.

Learn more Learn more here

APTIM

“ WHEN WE ARE EFFICIENT AND PUT IN PROPER CHECKS AND BALANCES IN PLACE AND SET CONTROL MECHANISMS AND STANDARDISATION OF PROCESSES, THIS ALLOWS US TO REDUCE WASTE AND EXECUTE MORE EFFECTIVELY ON OUR WORK FOR OUR CLIENT” PUNIT SHAH

VICE PRESIDENT SUPPLY CHAIN AND PROCUREMENT OFFICER, APTIM

effective mentorship and succession plan, as it relates to a career ladder and a path that ensures room for growth and career advancement. It's a mutually beneficial event and one that is strategically important to us." Process: Revamping Policies and Procedures Shah then looked at reviewing, refining and tweaking procedures and policies, ensuring all functions are designed to best support the varied industries APTIM services. As Shah tells it, "In an ideal world, I would have liked the change management approach to be top-down, bottom-up. You want to approach it from both sides if you really want long term change to take effect. We've gone through significant gyrations at our top level, and there's been a lot of changes in leadership. So we're still waiting for the long term vision to settle down. But in the meantime, the business can't stop or wait. So, for now, our approach is to work from the bottom-up.” "Our strategy is to take a look at what processes we have or need to have in place in order to execute our function and what portions of that present an opportunity for 62

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APTIM

$500m+ Revenue

1971

Year founded

10,000+ Number of employees

procurementmag.com

APTIM

automation or enhancement to where we can take that piece and make it a little bit better and then build on it.” "When we are efficient and put in proper checks and balances in place and set control mechanisms and standardisation, of processes, this allows us to reduce waste and execute more effectively on our work for our clients." "As a significant portion of what we do is project-based and often works on a costplus structure, our improved efficiencies get passed on to our clients. In the last 12 months, we've seen multiple instances 64

June 2021

“ WE'RE NOT HERE JUST TO BILL YOU AND LEAVE. WE ARE HERE TO PARTNER WITH YOU. WE’RE INVESTED IN YOUR BUSINESS” PUNIT SHAH

VICE PRESIDENT SUPPLY CHAIN AND PROCUREMENT OFFICER, APTIM

APTIM

where we improved what we were doing, and we showed it to the client, and in the end, it brought more business because we were able to show that we're not here just to bill you and leave, we are here to partner with you, we're invested in your business." Tools: Leveraging Tech with a Common Sense Approach "We're now using Microsoft's existing ecosystem of tools to manage more of our workflows. Microsoft is one of the bigger, leading-edge companies when it comes to innovation, and they’ve seen over the years the focus on supply chain and ERP systems, and they’ve really made significant strides and putting in investments and growing that out,” says Shah. “We’re really just at the beginning of our relationship. We’ve picked up a few projects that are small in scale but very critical to

our work process, like automating the requisitioning process. If we can do it from a tool that exists with consistency, which has a stable platform, we won’t need to integrate other systems, which is a huge win. So that presents a very attractive option, and we’re very actively exploring that. “It amazes me that a company the size of Microsoft gives us the preference and the treatment that they do. The relationship is mutually beneficial. They’ve been willing to listen to our issues, and they’re willing to invest in where we are as a company. They’re investing time and effort in understanding what our priorities are. And they’re not forcing solutions onto us. They’re allowing us to take the lead and supporting us in our path forward, and I have a lot of respect for that.” Intelliwave Technologies provides new solutions to the construction industry to help increase “Time on Tools” for craft labour

APTIM | Making A Difference

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APTIM

and improve site safety and have been an integral partner in APTIM’s success in finding better ways of doing things. Shah expands, “As we were previously almost a hundred per cent manual when it comes to material management, Intelliwave Technologies is really bringing in a whole different dimension into the way we execute jobs. They bring a very niche and specific offering and have developed a tool specifically for material management, everything from managing your inventory and warehousing to receiving and allocating material to your job site, which on a construction site, depending on your scope of construction, can be extremely complex. We 66

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can have thousands or even millions of parts, and all of this ultimately is dollars. So if you're not watching it, you could risk losing it.” "Ballooning inventory erodes margins, so we took it another step further and looked at how we could improve the planning on our jobs—for instance, leveraging smart technology for better inventory management. We can now see how much material we have and where. We can plan ahead and see if we have an upcoming shortage, and then we can take actions to prevent that shortage. We can also report and track where there is product damage, which allows us to then go back to a vendor and recover some of those costs.

APTIM

“ INTELLIWAVE TECHNOLOGIES IS REALLY BRINGING IN A WHOLE DIFFERENT DIMENSION INTO THE WAY WE EXECUTE JOBS” PUNIT SHAH

VICE PRESIDENT SUPPLY CHAIN AND PROCUREMENT OFFICER, APTIM

"We've also taken the approach of developing work processes with Intelliwave and bringing them in to understand our business and have them give us suggestions and provide their expert view on what can and cannot be done. Intelliwave Technologies have been with us at multiple job sites, and they've been alongside us through all of our challenges, and they've earned our trust along the way. We share values, and we have a shared vision of where we want to get to. So it's a really healthy relationship based on a mutual understanding." Indirect Procurement Savings Shah tells us how APTIM has managed to take control over indirect spend and capture

cost savings. "Indirect in the traditional sense is indirect spend that's not going into your end product. Well, our end product is our project. And so indirect for us really is more of our corporate and overhead and it includes everything from your travel to your office buys, your benefits providers, insurance companies and so on. In the APTIM world, in broad terms, Supply Chain has the responsibility for managing the outward dollars as they're being spent, but we share a responsibility with multiple functions to define what that is and who you want to spend it with. "We don't want to dictate things, but we want to look at how we can make more strategic decisions. So we work with the functional group to determine the appropriate vendor base, and then we help manage the spend. In general, the approach has been to better define some of these categories and apply some supply chain disciplines to them, such as going through a rigorous RFP and taking a category management approach and applying the seven steps strategic sourcing process. We were typically very focused on and used to operating within that Gulf coast Baton Rouge area, so the value was in getting players to the table that were outside our usual geography. "Prior to the transformation, everything was done in pockets with no aggregate view on spend. We've now established programs and have signed some contracts with key companies. We've also put in structure to protect us from liabilities and risk. And we've locked in pricing. So now we have a very clear reference for capturing savings from where we were to where we are. We've come a long way, and now we can rinse and repeat."

procurementmag.com

PROCUREMENT ANALYTICS

Strategic decisions driven by

SMARTER

PROCUREMENT

ANALYTICS

Procurement Magazine takes a look at how organisations can drive strategic and informed decision making with smarter procurement analytics WRITTEN BY: GEORGIA WILSON

June 2021

rocurement functions of old once had a clearly defined mission: delivering cost savings in sourcing and purchasing. However, in today’s environment, procurement leaders have to navigate volatile markets with quick decision-making and contingency planning to maintain business continuity during disruption. Chad Gottesman, Managing Director of the Sourcing and Procurement business at Accenture explains that in order to do this, procurement leaders need to have “realtime, predictive insights so procurement can effectively monitor supplier networks, watch markets and maintain continuity in the face of market volatility. By applying analytics to procurement, leaders are able to enhance decision-making and business strategy with a much faster turnaround time. In turn, this increases cost savings, lowers operating cost and reduces risk—all things that procurement leaders are keen on doing.”

PROCUREMENT ANALYTICS

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We are Procurement. Sustainability in supply chains is our responsibilty. We will build a sustainable future for people and our planet.

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PROCUREMENT ANALYTICS

What is data analytics? “At Coupa when we think of data analytics, we think about it more broadly. We think about it from the perspective of community intelligence - a leveraged environment across our entire community. Community intelligence leverages data so that our fellow practitioners are better able to drive spend recommendations out of that analytics and insights to benchmark your own performance against that of the broader community. This will allow you to make critical business decisions based upon actual real life data.” Different types of analytics in procurement: • Real-time pricing • Supplier history and performance • Benchmark spend and performance comparison (internally and externally) Technology being used in procurement analytics: • Artificial intelligence (AI) • Robotics Process Automation (RPA) • Machine Learning (ML) Michael Van Keulen Chief Procurement Officer, Coupa Software

“ [At Coupa] we really believe that the power of AI is where things are going. Our community intelligence platform is built on AI and that's what really is required to build a much more resilient and a much more agile future for procurement and of course, for the businesses that we serve” MICHAEL VAN KEULEN

CHIEF PROCUREMENT OFFICER, COUPA SOFTWARE

Why is it important for procurement leaders to adopt analytics? Latest research from Accenture reveals that 90% of Chief Procurement Officers (CPOs) believe their organisations are under extreme pressure to extend innovation. “This statistic would have been unheard of a decade ago,” says Gottesman. Accenture’s research further found that over 66% of procurement organisations struggle with lack of long term investments to transform processes and technology. procurementmag.com

PROCUREMENT ANALYTICS

“As the data shows, leaders are struggling and need data analytics not only to deliver cost savings but drive additional value across the business. Procurement has a golden opportunity—one made possible by realtime data, predictive analytics and new tech tools—to double down on other key levers across direct and indirect spend like inventory and consumption of goods and services to lower spend and drive value,” adds Gottesman. Alex Saric, CMO and Smart Procurement Expert at Ivalua, adds to Gottesman comments, stating that “Data analytics is the foundation for organisations looking to make strategic, informed decisions regarding how they spend and with which suppliers. By having access to data on everything from current trends to geo-political risk factors, organisations can identify new opportunities for innovation, monitor risk in particular areas of the market, and ensure compliance in relevant regulations for future projects.”

“ Analytics is no longer a standalone solution where you extract data from other sources. There are solutions out there such as Coupa that are end-to-end. With the power of analytics you're able to extract data points from the various different elements of what procurement does ” MICHAEL VAN KEULEN

CHIEF PROCUREMENT OFFICER, COUPA SOFTWARE

June 2021

THE IMPACT OF COVID-19 “Disruption caused by COVID19 exposed blind spots for many organisations, as their insights were hampered by data that was dispersed and of poor quality, limiting effective decision making on suppliers when they needed it most. It’s now more important than ever that organisations have analytics capabilities that can bolster supply chain resilience and help to monitor risk, so they are better prepared for future crises.” Alex Saric CMO and smart procurement expert, Ivalua

PROCUREMENT ANALYTICS

How can data be sourced in procurement functions? Explaining that the sources for procurement data can come in the form of structured and unstructured data from diverse internal and external sources, Gottesman highlights that one of the key data sources for futureready procurement operations is automated technologies that can be adjusted to demand needs. “This is an important way to reduce costs, and ranks as one of the critical factors in the digitisation of business processes,” says Gottesman. “Procurement leaders have reported impressive strides in automation with the per cent of procurement executives reporting widespread or full-scale automation in their organisation having increased five times over the past three years.” Another key procurement data source identified by Gottesman is “in AI and how businesses use the data coming from a specialised human-machine workforce

Best practices for procurement leaders “I firmly believe that procurement should lead a business spend management solution. It is really, really critical. Yes, we need to engage with other senior leaders such as the CFO, the CIO, and other cross functional leaders. But what I often see is that practitioners let this decision be done or be led by other functional areas, such as finance, such as IT. So finance often thinks about AP automation to digitalise the finance process, while IT often thinks about it from a 'I will plug something in within the existing ERP', both of them theoretically make sense, but when it comes down to it, it's a procurement decision, and procurement should lead endto-end sourcing all the way down to settle. If you don't, you're going to leave value on the table and you're going to end up with a suboptimal outcome. “So I really want to encourage procurement to lead business spend management solutions. It results in greater effectiveness, it reduces your risk, it gives you that real end-to-end visibility, and of course with the power of community intelligence you're going to continue to extract more value out of the spend that you manage.”

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PROCUREMENT ANALYTICS

THE BENEFITS OF PROCUREMENT ANALYTICS

Chad Gottesman MANAGING DIRECTOR OF THE SOURCING AND PROCUREMENT BUSINESS AT ACCENTURE “The value delivered is not only financial. Think of it as 360-degree value widening procurement’s sphere of influence and impact. There is value for the enterprise, stakeholders and the community—and across risk mitigation, sustainability, stakeholder experience, talent and inclusion and diversity. These breakthrough approaches are made possible thanks to the fundamentals of Closed Loop Spend Management (CLSM), spend transformation and new ways of working.”

Michael Van Keulen CHIEF PROCUREMENT OFFICER AT COUPA SOFTWARE “If you have the right technology that has the right vision, the right end-to-end process, the right comprehensiveness that provides all your spending across departments, geographies, business units and functional areas, it puts not just procurement in a better position, but finance, the stakeholders, business leaders and functional leaders to make tough decisions and to make the right decision based upon the right data, which allows you to better leverage your spend and apply real competitive pressure.

June 2021

Chad Gottesman Managing Director of the Sourcing and Procurement business, Accenture

“ Closed loop spend management (CLSM) models are a valuable tool more organizations should be putting their resources behind within procurement analytics. It makes procurement more efficient, resilient and agile” CHAD GOTTESMAN

MANAGING DIRECTOR OF THE SOURCING AND PROCUREMENT BUSINESS, ACCENTURE

PROCUREMENT ANALYTICS

to make decisions based on market consumption patterns, while reducing the workload required of employees.” How does an organisation identify where they need analytics? “We always hear from procurement officers that their organisations are under extreme pressure to extend innovation. They often struggle with long-term investments to transform processes and technology,” says Gottesman. Taking a top-down look at where procurement functions can be made more efficient, resilient and agile, procurement leaders should look at three key areas to drive value across their business: pricing, consumption, and inventory. “Take how companies manage travel spend as an example. When business travel picks up again, procurement organisations will have to

make complex travel spend decisions. They can negotiate rates with providers as always. But they can also look at demand and consumption in new ways. Collaboration tools will likely minimise trips and ridesharing provides a lowercost alternative to rental cars. Procurement analytics can play a huge role in making this process smarter and more efficient.” What makes good procurement analytics? Believing that businesses need to look at procurement differently, Gottesman explains that “At Accenture we believe that rather than looking at smaller changes to deliver savings, there needs to be a more holistic view. Data is a key partner in this expanded perspective and in building a future-ready organisation. Most companies still use intuition and experience to make business decisions but acting on realtime data will drive better outcomes.” procurementmag.com

PROCUREMENT ANALYTICS

The challenges of adopting procurement analytics Chad Gottesman: • Procurement leaders continue to struggle to deploy more mature analytics capabilities and often don’t know what technology to invest in, with leaders believing they are lagging inoperational maturity and lack ‘futurereadiness’ (only 7 per cent of leaders identify as future-ready) • 24 per cent of procurement executives rate technology as a top challenge to growth in key areas) Alex Saric: • Data accessibility: to maintain effective supply chain visibility, organisations need access to a broad set of data, both externally and internally, and they need to trust it. • Data quality: internal data is often in poor shape at most organisations, spread out across many systems in inconsistent formats and not accessible by decision-makers.

June 2021

Alex Saric CMO and smart procurement expert, Ivalua

PROCUREMENT ANALYTICS

Gottesman further explains that just as important as diverse data and analytics, is “building ecosystem partnerships with suppliers to break through one of the greatest barriers to operating model transformation. Suppliers can protect a company from supplier-related risk that could damage its brand and finances, as well as from erosion of hard-won sourced benefits. Strong ecosystem partnerships can also play a key role in helping a company improve its supplier base to drive greater innovation and growth.” Adding to Gottesman’s comments, Saric says that a unified approach to data

“Emerging technologies such as AI, blockchain and IoT are set to have a significant impact on procurement analytics, offering the potential to improve traceability of supply, identify potential failure points and much more” ALEX SARIC

CMO AND SMART PROCUREMENT EXPERT, IVALUA

analysis is critical. “Good data analytics requires trustworthy, actionable data to be available when and where it is needed in the procurement process, and a culture and process that reinforces data-based decision-making.” “Bringing internal, third party and publicly available data together into a single platform, with a 360 degree view of each supplier and category will provide a complete view of what’s happening internally – as well as data on external risk factors and opportunities – allowing for better decision-making at every turn,” continues Saric. procurementmag.com

June 2021

BT GLOBAL SERVICES INDIA

DELIVERING THROUGH DISRUPTION WRITTEN BY: RHYS THOMAS PRODUCED BY: GLEN WHITE & CAITLYN COLE procurementmag.com

COMPANY BT GLOBALNAME SERVICES INDIA

June 2021

Harnessing the power of digital is key to delivering on expectations through procurement, says BT Global Procurement Manager, Vanitha Prabhu

Vanitha Prabhu Global Procurement Manager, BT Global Services India

n a year defined by the disruption of the biggest global health crisis in living memory, the focus for Vanitha Prabhu, Global Procurement Manager, IT and IT Services at BT Global Services India, remains relatively unchanged. Based in India, Prabhu oversees IT indirect sourcing for Asia Pacific and globally, as a captive unit of the telecoms giant. The company offers managed telecom and IT services for a broad range of customers across the healthcare, finance and contact centre sectors. At a time when communicating remotely is at the heart of both professional and personal life, the company’s services are arguably more vital than ever. Prabhu’s teams have been forced to overcome the same challenges all companies have faced during the past 12 or so months. But the fundamentals of her job, she says, remain the same: delivering value to stakeholders and suppliers inline with the group business objectives of BT. Creating stability and minimising disruption has been key to business continuity, and is built upon the core tenets of strategic sourcing, a critical process which Prabhu defines as the application of group-wide data, paired with consolidated purchasing power to find the best possible value in the marketplace. procurementmag.com

BT GLOBAL SERVICES INDIA

“Our goals are to achieve lowest cost of ownership along with minimal supply chain risk”

Value, in this instance, understand what their does not necessarily strategy is and what mean most costtheir expectations are. efficient upfront; value Then we spend time can be measured by with our suppliers, to many metrics, and for understand how they're Prabhu that means going to fit into our delivering ecosystems, deliver the a “win-win proposition” services, come up with to BT, stakeholders and new plans and ideas, suppliers alike. Alongside and how they are going VANITHA PRABHU cost, procurement to improve efficiencies. GLOBAL PROCUREMENT MANAGER leaders are now tasked That's where we try to BT GLOBAL SERVICES INDIA with combatting the evaluate our supply base most pressing issues threatening supply and our business stakeholders, and we try chains, namely risk-mitigation, agility and to collaborate with all of them to ensure we resilience. provide the best possible services.” “Our goals are to achieve lowest cost of So how does one successfully deliver on ownership along with minimal supply chain these objectives? The answer in Prabhu’s risk,” Prabhu says. “To do this we spend a experience is leading with a collaborative lot of time speaking with stakeholders to mindset, and spending the time to explore 82

June 2021

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how each and every business within the ecosystem can improve and grow. “We always believe in a win-win position for both suppliers and BT,” Prabhu says. “When we onboard a new thirdparty supplier, we work with them in collaboration, because ultimately we are reselling the supplier’s products to our end customers. That means suppliers have to be very collaborative, they need to understand the BT ecosystem and the customer so that they can deliver upon our expectations, as well as our customers’ expectations.” Keeping lines of communication open and maintaining these relationships is an ongoing process that goes far beyond onboarding, Prabhu explains: “It’s also how you manage the relationship throughout the lifetime of that contract.” BT conduct quarterly reviews to understand how all

VANITHA PRABHU TITLE: GLOBAL PROCUREMENT MANAGER INDUSTRY: CONSUMER SERVICES LOCATION: INDIA A keen leader ensuring accomplishment of functional objectives through effective team contribution by breaking down objectives into operational activities. Working with & guiding team members in executing activities with required means, knowledge, or opportunities. 16+ years of qualitative operational delivery experience in: •

Strategic Sourcing, Contract Management and Procurement Operations

•

Managerial Level Operational Reporting

•

Procurement Tools & Systems management

•

Exposure of managing all commercial aspects of complex contracts involving liaison with various departments for smooth operations of contracts.

•

Adept in handling a gamut of activities pertaining to opening/ evaluation of bids and negotiation, award &

EXECUTIVE BIO

review of contracts as per contract regimes, bridging contract agreement, settlement of contract claims and disputes •

An effective communicator with excellent leadership, planning, team management and relationship management skills and abilities in managing simultaneous projects.

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BT GLOBAL SERVICES INDIA

ADVERT PAGE GOLD parties are delivering on the contract, and hold meetings with suppliers to discuss how and where improvements can be made. Auditors, meanwhile, investigate security and data handling compliance; it’s a process of continued orientation. “We identify whether any mitigation plan is required, and if so collaborative work towards that,” Prabhu says. “We also work on amendments and contract variations as and when required, so that they meet up to our expectations, as well as minimise and mitigate the risk to BT and our customers.” 84

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“ We spend more time on the value-add jobs rather than just a mechanical task” VANITHA PRABHU

GLOBAL PROCUREMENT MANAGER, BT GLOBAL SERVICES INDIA

BT GLOBAL SERVICES INDIA

In many ways the direction of Prabhu’s attention remains unchanged by the pandemic. The means the organisation uses to navigate the increasingly choppy waters of global procurement, however, are undergoing a dramatic digital transformation journey, equipping BT’s procurement professionals with the modern tools and resources to react to the ever shifting landscape. "We believe in new ways of working,” Prabhu says. “We have been focusing more on artificial intelligence (AI), machine

learning (ML) and many more emerging technologies. The focus is on simplifying the actual process and minimising the time we are investing in these tasks. We have introduced many tools within procurement to ensure the life of our procurement personnel is simple but brilliant. We now have all the information, data, and everything else we require available in one click. We have also started a digital garage, which will help us to please an order and get what we want in one click. That is a power of digitisation.” procurementmag.com

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“We always believe in a win-win position for both suppliers and BT” VANITHA PRABHU

GLOBAL PROCUREMENT MANAGER, BT GLOBAL SERVICES INDIA

The result is a virtuous circle: greater levels of digitisation place more power in the hands of Prabhu and her teams to focus on meeting customer expectations and adding value. “We are driving new projects and implementing strategic tools like designed-to-cost, design-to-value, and teardown analysis. And the more we invest in digital, the more time we can dedicate to strategic sourcing, meeting with our suppliers, understanding new techniques and innovations,” she says. “We spend more time on the value-add jobs rather than just a mechanical task. It is really helping us to leverage our expertise to commit to the things that matter, rather than wasting our time on those unproductive jobs.” procurementmag.com

“ The more we invest in digital, the more time we can dedicate to strategic sourcing, meeting with our suppliers, understanding new techniques and innovations” VANITHA PRABHU

GLOBAL PROCUREMENT MANAGER, BT GLOBAL SERVICES INDIA

Though COVID-19 placed further pressures on even the most basic procurement functions, Prabhu believes the outbreak was an energising testing ground for the unit’s new capabilities, and how procurement organisations can lead from the front in risk-mitigation. “We took a very proactive approach and we never waited long to act,” she says. “We started monitoring the performance of our suppliers, how they're doing, what the impact might be, and then ensuring there is business continuity so there is no impact to the supply chain.” As the pandemic took hold of countries around the world, Prabhu’s teams were forced to wrestle not only with how quickly they reacted, but “how swiftly you are able to make decisions”. She uses the example of a supplier in China, which was unable to fulfil its obligations due to restrictions imposed in response to the virus. “Now you see the supply chain is getting impacted, so you have to ask what are the other sources of suppliers? Do you have in-country sourcing, or are there local country sourcing where 88

June 2021

you can quickly procure the services so that your supply chain is not disrupted? I don't want that experience again in future,” she jokes. “But we are prepared for those now.” For Prabhu, the future holds vast opportunity. As a leader in India, she is something of an outlier: a woman in a senior leadership role in a country she says is more broadly prone to rewarding braggadocio above merit and experience. “Procurement is a very male dominated area; there are very few women employees in the sector,” she says. “Oftentimes you find many capable women will think they

BT GLOBAL SERVICES INDIA

are not ready for a promotion when an opportunity comes up. Men are more likely to think they can take on the role, even if they are not yet ready. But BT does a lot to support women in the workplace. The BT TechWomen programme, which I joined about two years ago, really helped me to develop my professional self, build my brand and develop my career.” Prabhu hopes to extend that professional develop to the rest of her team, regardless of gender. Using the new digital tools at their fingertips, she believes in empowering employees. “Once the job is given to them,

they need to own it end to end. I trust them, and I ensure that they get all the trainings, support and motivation they need from me so that they can deliver up to that expectation,” she says. “They always come up with new ideas, challenges, and I always entertain people who want to come and challenge me, too. That helps me to understand what my team expects from me, and help me to learn and grow along with my team.”

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RESKILLING PROCUREMENT FOR DIGITAL SUCCESS AND EQUITY Procurement Magazine speaks to Bronwen Hann, President and Senior Partner at Argentus Supply Chain Recruiting, on gender gender equity, filling the talent gap and reskilling procurement WRITTEN BY: LAURA V. GARCIA

long with the challenges of managing supply chains through a global pandemic, CPO’s today must also juggle the increased expectations for agility, cost savings, innovation, sustainability, ethical procurement and digitisation, all while fighting for gender equity and dealing with a talent shortage. Filling the pipeline with top candidates that can help you meet the high demands procurement is facing is no small order. And so, I reached out to Bronwen Hann, President and Senior Partner at Argentus, a leading supply chain and procurement recruitment firm, with a list of questions I needed answers to. Luckily, she had them, and in spades. 90

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“ As leaders in the industry, we need to take a stand and say, ‘it’s not the ‘80s or ‘90s anymore. Supply Chain isn’t boring. Supply Chain is cool, and here’s why” BRONWEN HANN,

PRESIDENT AND SENIOR PARTNER, ARGENTUS

It seems that although we have made some advancements, women continue to be underrepresented in supply chain leadership roles. Could you, firstly, tell us why you believe this is, and secondly, what you feel can be done about it? “I think there are quite a few factors. I’m a woman who has been involved in the Supply Chain industry for 20 years through my company, Argentus Supply Chain Recruiting, so I have some front line experience with this issue, but like many similar issues, it’s incredibly complex and difficult to unpack. “However, there are a few things I’d point to: according to the Canadian Women’s Foundation, only 25% of VP positions in the broader economy are held by women, and

Bronwen Hann Bronwen Hann is the President & Senior Partner of Argentus, a boutique recruitment firm specialized entirely within supply chain management and procurement. Named one of Supply Chain Canada's 100 Influential Women in Canadian Supply Chain, Bronwen is one of Canada's original supply chain talent connectors servicing mid-sized and enterprise clients across a variety of industries.

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only 15% of CEO positions are held by women. The lack of female representation in supply chain leadership is, to an extent, a symptom of the larger lack of female representation in corporate leadership more broadly. “This doesn’t mean that supply chain shouldn’t address the problem. There have been some great initiatives, like Supply Chain Canada’s Top 100 Influential Women in Supply Chain, and others, to highlight the wonderful leaders in the field today. Certain organisations have formal diversity targets when it comes to elevating people into senior leadership, and that can be useful. But more broadly, I think we need to be loud and proud as women leading in supply chain to draw attention to this issue wherever possible. 94

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“Supply chain has always been a field that people ‘fall into’ rather than choosing it out of school, but this is changing as well. People are starting to recognise how sophisticated and exciting the field has become, and that’s leading more young people to take degrees, formal education and build intentional supply chain careers. I think leaders in the industry, whether male or female, need to show those young people that not only is supply chain an exciting field with great growth opportunities – it’s a tremendously diverse field as well, where women are leading the charge. “Overall, I think it’s a mix of formal programs and initiatives, and all of us doing our part to change the culture.”

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“ Companies need people with exceptional emotional intelligence to foster effective, long term relationships and the overall business acumen to identify those ways of adding extra value” BRONWEN HANN,

PRESIDENT AND SENIOR PARTNER, ARGENTUS

It’s long been said that procurement has a branding problem. How do you feel we’re doing in that arena since the onslaught of Covid-19, and again, could you lend some words of wisdom on what can be done to improve its reputation? “Despite the massive challenges and disruptions, COVID-19 represents a huge opportunity for the supply chain profession. For the first time, average people have an awareness of the mountains supply chain professionals move every day, as well as the inconvenience, and – when it comes to things like vital goods and PPE – suffering caused by supply chain failure. Supply Chain Management is absolutely essential work to keep society moving, and more people

recognise that than ever before. It’s become a key strategic function that touches on every aspect of a business. It’s more digital than ever before, more diverse than ever before, with very strong compensation and career prospects. “All the pieces are in place for supply chain to emerge into the wider consciousness as one of the most exciting career paths that young people can take. But in some circles, it still has a reputation as a fusty, back-office function. As leaders in the industry, we need to take a stand and say, ‘it’s not the ‘80s or ‘90s anymore. Supply Chain isn’t boring. Supply Chain is cool, and here’s why.’ Because it is, people who have built their careers in the field get it. But young people don’t always get it – because we procurementmag.com

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June 2021

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“I think leaders in the industry, whether male or female, need to show those young people that not only is supply chain an exciting field with great growth opportunities – it’s a tremendously diverse field as well, where women are leading the charge” BRONWEN HANN,

PRESIDENT AND SENIOR PARTNER, ARGENTUS

haven’t done enough to communicate just what makes it such a great career. As I said, this is changing. “I think, as industry leaders, we should be finding creative opportunities to tell stories from the world of supply chain – and show people not just the failures but the success stories and all the incredible things great supply chain management makes possible.” Procurement is experiencing a major shift towards digital transformation, and by leveraging technology, we’re able to now focus on other initiatives such as strategic procurement, driving sustainability, diversity, and innovation. How has this, or should this, change how we hire? “These changes are really driving the growth of the procurement function, and that’s definitely changing the hiring landscape. As procurement delivers more to companies – including innovation, diversity in supplier bases, sustainability, and strategic value – the skills needs are greater. “Front-line procurement skills are still important, but they’re now table stakes. For example, people should know how to make a purchase order, run an RFP, develop an effective contract, and how to use fairness and transparency in the procurement process. But to deliver all those added benefits you mentioned, individuals need other skills as well. In our conversations

with leaders across the field, there’s a huge emphasis on soft skills. Written and verbal communication skills, the ability to present insights to stakeholders across the business, but even more importantly, the ability to build real relationships with stakeholders and suppliers and build mutual value are all critical. Companies need people with exceptional emotional intelligence to foster effective, long term relationships and the overall business acumen to identify those ways of adding extra value. “In short, this makes it harder to hire. Companies need to be more creative. It’s not about checking skills off a checklist. Many of these qualities can’t be gleaned from just a resume. It involves really digging into a candidate’s approach and what makes them tick when you assess them. It also means being willing to invest in people’s skills development after you hire – whether it’s through coaching, mentorship opportunities, further formal training, rotating them through different roles or categories in a department, or other methods. It’s more difficult, but the opportunities are huge.” Could you offer some advice to those who are in leadership roles and are looking to attract top procurement talent in a tight market? “As a recruiter specialised entirely within supply chain and procurement, we’re lucky to procurementmag.com

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be giving advice to these leaders all the time! Many companies feel that they’re missing out on attracting the right talent or struggle to hire even for roles that feel like they shouldn’t be hard to fill. “When I advise companies about how to attract talent, the fundamental is compensation, and that hasn’t changed: do a real analysis of competitors, and salary bands, to make sure that you’re positioning the role at the right level. “Beyond that, there’s some low hanging fruit that companies don’t even realise is causing them to lose out. Often this comes down to process: Do you have a junior HR person reviewing resumes or someone who deeply understands Procurement? How long does it take you to follow up with candidates? Do you insist on 4-5 interview stages, with an endless internal approval process, before moving to the next stage? Companies win out by hiring nimbly and fast. This is not a market where top candidates are sitting around waiting for you to call them back. Sometimes candidates will be fielding 3-4 offers. If you adopt the mindset of, ‘we’re doing this candidate a favour by considering them, and they’ll be there when we get around to moving the process forward,’ you’ll lose out every time to your competitors who recognise how in-demand the top candidates are. “Another piece of advice for procurement specifically is this: with the exception of certain highly technical procurement categories, don’t get hung up on requiring exact category experience. My advice is to find people with very strong procurement fundamentals (understanding of RFx processes, contracts, supplier relationship management, analytics), as well as strong soft skills (business acumen, presentation ability, relationship building, emotional intelligence), and train the category later. 98

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There have been studies that show that employees today are looking to work for companies that align with their personal values. Could you speak to this and whether you feel corporate ethics and brand reputation can be a hindrance or an advantage in attracting top contenders? “Ethics and reputation are a definite advantage in attracting candidates. This is especially true when it comes to attracting candidates in the millennial generation, or Gen Z, which is becoming an increasing

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focus for companies, especially as the baby boomer generation retires. More than ever, candidates want to work for companies that are making a positive impact – and in ways that aren’t just paying lip service to causes they believe in. “When you hire, you need to do a frank assessment of your assets and liabilities in this area and tailor your approach accordingly. Sometimes the problems run deep, and you’re hiring in an industry whose values don’t align with these candidates.

But sometimes it’s a matter of investment of time and resources. Leaders should recognise where they might be falling short in these areas and how that might be impacting the candidates they attract. They should build up these capabilities in a holistic way. It’s not just changing the branding on your careers page but making a real investment in sustainability, diversity and ethical procurement. These things won’t just help you attract candidates, but they’re good business.” procurementmag.com

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Andrea Andrews, Executive Director Procurement and SCM at SA Health, on transforming supply chain and procurement and the lessons learned from COVID

ith Andrea Andrews, Executive Director Procurement and Supply Chain Management, at the helm, SA Health has kicked off its supply chain and procurement transformation journey. “We've spent a lot of time over the last couple of years trying to improve our processes and recognised that we needed technology for that. So we are looking to implement a contract management system this year. We’re also looking to implement a new Catalogue management system for the thousands of products that we distribute across hospitals and SA Ambulance. We're really in the middle of our technological transformation whilst also trying to implement spend analytics as well.” “We use an ERP system here at SA health, and you don't want to throw out the baby with the bathwater, so to say. So we had to assess what we had and identify where the gaps were, and then develop that vision of where we wanted to be. It's taken us time. I would say at least three years to get us to the point where we are now looking to implement these changes. It's a big exercise. We have to implement it all across SA Health, in all our hospitals and across our network as well. When it comes to implementation and change management, it’s important to hit the right note. That’s a massive piece of the work, and so we spent a lot of time in the planning stage to ensure we get it right.”

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Andrea Andrews, Executive Director Procurement and SCM at SA Health procurementmag.com

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“Prior to COVID, our hope was to have our spend analytics implemented last year. So some of our projects have been paused because we had to divert our resources to other priorities. So we are still on our digital transformation journey. We never got to that finish line. But I don't believe there is a finish line. I think that technology will keep evolving and improving, and we will have to evolve with it.” It seems, however, that the global pandemic caused a cultural shift and brought its own set of lessons to be learned. The Covid Lesson: A Cultural Shift Andrea was on vacation when COVID hit. And as all good supply chain and procurement professionals do, regardless of where in the world they may be, or if they are on or off “the clock, began to immediately think of the repercussions. By the time she got back to work, usage had started to spike. 104

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Andrea shares the story. “On the 2nd of February, we saw all our hospitals draw down about six months of PPE stock in about five days. Fortunately for us, we were watching it and saw it happening. We quickly realised we had to put some controls in place. But then we had to come to longer-term solutions.” “The first half of 2020, we focused on PPE and identifying our supply chain vulnerabilities. People thought it was great to see oil prices for Petro going down, but for us, it signified possible supply chain issues as a raw material, e.g. polypropylene used in PPE and hospital supplies. You have to start connecting the dots fast. The team did a great job of that.” “I put the team into functional streams early on so we could focus on those areas, and we got some support from government agencies. One of the key things we did early on was to centralise PPE for all government agencies, and that really helped us. I

ANDREA ANDREWS TITLE: EXECUTIVE DIRECTOR PROCUREMENT AND SUPPLY CHAIN MANAGEMENT LOCATION: SA HEALTH

ANDREA ANDREWS

EXECUTIVE DIRECTOR PROCUREMENT AND SUPPLY CHAIN MANAGEMENT, SA HEALTH

EXECUTIVE BIO

“ I don't believe there is a finish line. I think that technology will keep evolving and improving, and we will have to evolve with it”

Andrea is the Chief Procurement Officer, South Australian Health. She has more than 20 years experience across private, public and not-for-profit sectors in Australia and the United Kingdom. Her experience has proved invaluable throughout the COVID19 pandemic, navigating the various challenges with procurement and supply chains. Recognising the prompt actions required at the commencement of COVID-19 allowed for a team, led by Andrea, to oversee logistics supporting the State wide response. Andrea is driven to maximize results and deliver value for money through the establishment of crossfunctional relationships. She understands the importance of mutually beneficial partnerships with business leaders, customers, suppliers and service providers all with the patient in mind.

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“ We learned that the public sector could be fast, effective and efficient. We realised we had the skills and tools that we needed. We just had to believe that it could be done” ANDREA ANDREWS

EXECUTIVE DIRECTOR PROCUREMENT AND SUPPLY CHAIN MANAGEMENT, SA HEALTH

remember sitting with all the heads of procurement, all the people in roles similar to mine, across all the government agencies, police, education and the department of infrastructure and transport. And in that meeting, we talked about centralising supply through health. We were competing for scarce resources, and we could prioritise from a health perspective how we supplied.”

“I think controlling the demand as well as the supply helped us tremendously, and I thank my colleagues for working with us and trusting us to assume control of that for them. The fact that the public sector could pull together like that was a real benefit. We learned that the public sector could be fast, effective and efficient. We realised we had the skills and tools that we needed. We just had to believe that it could be done.” “I think the common practice we had across corporates, across the health system, as well as the government agencies, all coming together towards a common goal helped speed things up. We set up PPE manufacturing companies within weeks when normally it would take years. We were lucky to have suppliers who are willing to come to the party and trusted us. I think it's been heartening to see how the community pulled together and how the private sector was able to work with us.” procurementmag.com

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Healthy Supplier Relationships for a Healthy Supply Chain Upon stepping into the role, Andrea was keen to improve supplier relationship management, something her team embraced. “It’s important to realise you must talk to suppliers and build up those important relationships. Otherwise, you can’t look at things like innovation. You must have those relationships in place, and it’s important to be clear about what the guidelines are. We should have good working practices that allow us to have those conversations.” “We run an annual supplier conference. When we had our first one, people questioned why we would run a supplier conference in the public sector. But it’s important to pull everyone in, which allows everyone to hear the same information at the same time. We can share with them our vision and our business planning and strategy and where we're heading, which then makes it easier for all of us when we’re looking for support for goods or services, or whatever it may be.” “The supplier conference has been growing year-over-year. Last year, we moved it to a virtual conference, and that still worked well. We incorporated one-onone meetings as well, either with myself, Directors of Procurement, our the Head of SRM or other members of my team. We make sure that suppliers have as much access to us as we can. Everyone is really busy, but we deliberately set that time. And the suppliers know that we do those round tables throughout the year, so that is certainly improving how we work together and the innovation that comes from that.” “It’s important to remember that it’s those relationships with suppliers that we relied on when Covid hit. Maintaining those relationships meant we could pick up the 108

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phone and see if they could help us. We aren’t the biggest state in Australia, and for a lot of international companies, we are on the other side of the world. So if we want to be a key customer, then we need to think differently because it's not necessarily going to be about scope and scale. I think the fact that we really built those relationships up really helped us throughout, and I hope to maintain those moving forward.” Automating for Better Contract and Relationship Management Andrea highlights how tighter contract management allows for better relationship management. “Facts and data enable you to have these relationships because you want to be able to be clear and quantitative. We want to have contract management meetings, agendas and minutes and action logs and all that good stuff because that's the foundation. And if you can get those things right, then it allows you to be able to do some of the more innovative work.” “Is that an area we could improve in? Absolutely, and the technology piece for me is really key. I want us to automate as much as we can because I want contract management to be not just about talking to suppliers and having contract management meetings but going to talk to our customers. Actually getting out into the hospitals and talking to the nurses and doctors, the endusers. To be able to do that, I need to make time, which means I need to automate what I can so I can get out there.” In terms of long term plans, Andrea wants to continue to leverage technology for easier ways of working. “I want to come in in the morning, click a button and see a supplier dashboard with colour coding and early warning signals where we can see any 110

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“ It's been heartening to see how the community pulled together and how the private sector was able to work with us” ANDREA ANDREWS

EXECUTIVE DIRECTOR PROCUREMENT AND SUPPLY CHAIN MANAGEMENT, SA HEALTH

SA HEALTH

challenges, where we may have to go and have a conversation. But also where we can see that suppliers are going above and beyond, and there may be opportunities. I want those early indicators. The benefit is for our contract managers to be actually out with our customers and talking to suppliers and preparing the whole life cycle management of contracts, looking for better ways of working, preplanning for the next tender or whatever is next. “We’re not there yet, but we're stepping towards it, and that certainly is our end objective. Much of the transactional work can be automated, so we can really get into those other analytical pieces and opportunities, hence the technological transformation that we need to go through to get there.” “Oracle is our ERP system, and there are additional Oracle modules we're looking

to implement. Certainly, I think that having everything on one platform will help us. We are bringing in service partners to come in and help complete implementation for us. We’re supply chain management experts. You can ask us how many SKUs we have in distribution, or you can ask us about negotiation strategies, but we’re not ICT experts, so we do need help from our Digital Health department and from service providers to do that.” The Distribution Centre “We are constructing a new distribution centre, and I went out to see it last week, it’s looking brilliant. It’s about 11,000 square meters with office areas on top of that. And we're looking to automate as much as we can. We’ll be putting in a new procurement system and warehouse management system. Our new goods to person picking procurementmag.com

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“ I think we were very brave and bold through COVID, and I would like us to maintain that kind of boldness that things can be done differently” ANDREA ANDREWS

EXECUTIVE DIRECTOR PROCUREMENT AND SUPPLY CHAIN MANAGEMENT, SA HEALTH

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system alone will hold about 10,400 high volume fast-moving SKUs,” says Andrea. “We’re working to move the unit picking work to the distribution centre. We’re actually looking at what they need at ward level and then building it back. So at the distribution centre, we pack it in a way that when it arrives at the imprest, ward level, the first thing they need to unpack is at the top. So that's been a massive project for us. We will be working carefully with our customers. I don't think our stakeholders fully understand what the supply chain will look like yet, but certainly, it will be far more effective and efficient while improving quality, speed and volume as well.” “It’s impressive to see it go from drawing to reality. I hope that the team enjoys it and understands that we tried to make it as positive for our team as possible. We did some surveys early on to decide on things like do we want bike racks in, or outdoor eating area, touchpoints like that. I want it to be a good place to work. The ribbon should be cut sometime at the beginning of September, and we should be operating from there from then on.” As Andrea and her team look to get back on track with their digital transformation, Andrea hopes they hold onto the lessons they’ve learned along the way. “I would really like to see us imbed a real culture of continuous improvement throughout our network. I think we were very brave and bold through COVID, and I would like us to maintain that kind of boldness that things can be done differently. We don't need to keep doing things the same way we did them before.”

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An insight into the disruptions and risk faced by the supply chain as a result of COVID-19 and the ways in the industry is navigating the challenges WRITTEN BY: GEORGIA WILSON

Shehrina Kamal Everstream Analytics

ne year on from the outbreak of COVID-19, and the pandemic continues to have a profound impact on organisations around the world. With these ongoing disruptions, organisations are faced with complex challenges which require business adaptations in order to maintain their operations and thrive in a postCOVID-19 world. Launched at the end of 2020, DHL Resilience360 (now Everstream Analytics) as part of its ‘COVID-19 Survey: Supply Chain Impacts and Post Pandemic Adjustment Strategies’ report, surveyed 195 supply chain professionals in multiple sectors and regions, discussing the impact of COVID19, how organisations have adapted their supply chains to mitigate disruptions, and the emerging strategic sourcing trends to minimise future disruption risk. The pandemic’s impact on operations Since the outbreak of COVID-19 at the start of 2020, organisations globally have faced unique supply chain challenges in its wake, overall 98 per cent of global supply chains surveyed by DHL Resilience360 (now Everstream Analytics) whether highly or somewhat affect believe that the pandemic has had an impact on their operations. procurementmag.com

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RISK MANAGEMENT

“ The global COVID-19 pandemic had a profound impact on the worldwide movement of goods” SHEHRINA KAMAL

PRODUCT DIRECTOR, RISK INTELLIGENCE, EVERSTREAM ANALYTICS

“This comes as no surprise as the supply chain challenges caused by the pandemic are unprecedented and fundamentally different to past disruptions over the last two decades,” says DHL Resilience360 (now Everstream Analytics), “the COVID-19 pandemic has been unique due to its allpervasive nature, with disruptions not being confined to a particular location or a type of component.” Of those that were highly affected, or affected by COVID-19 came from the

automotive, technology, or life sciences and health care (LSHC) industries, with revenues of US$10bn or higher. It is believed that this is due to larger organisations having more complex global supply chains with operations in several continents, compared to smaller regional organisations who are able to react quicker. “The global COVID-19 pandemic had a profound impact on the worldwide movement of goods as manufacturing operations came to a standstill in many parts of the world, global flight traffic dropped to numbers not seen in decades, and ground transportation was disrupted by new health and safety measures. Although authorities largely switched to more targeted restrictions as the pandemic progressed, operational disruptions procurementmag.com

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remained a prominent feature of global supply chains throughout the year as containment measures as well as infection outbreaks, labor unavailability, and component shortages impacted business operations,” commented Shehrina Kamal, Product Director, Risk Intelligence, Everstream Analytics. Fluctuating supply and demand challenges Since the start of the pandemic, it has been no secret that supply and demand have experienced fluctuating disruption. The most significant short-term challenges highlighted by those in the industry include demand shocks and surges, supply shortages for critical materials, and components and cargo capacity shortages. Such challenges can be seen on the ground in Europe with restrictions resulting in closed retail stores driving growth in ecommerce, while other heavy manufacturing and machinery industries around the world have experienced drops in demand. In addition to these challenges, others identified in the industry include cash flow pressures, COVID-19 outbreaks among the workforce, parts shortages, production delays, and stoppages. “Surprisingly, only 31 per cent of all respondents for this question stated that the lack of visibility for suppliers below the Tier-1 level was expected to be a significant short-term challenge within the next 6 months,” notes DHL Resilience360 (now Everstream Analytics). Logistics challenges As COVID-19’s impact rippled out around the world, those that relied on exports and imports to and from some of the early affected countries - China, Japan, South Korea, and Italy - soon faced obstacles in 118

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their logistics operations, including delayed cargo, elevated logistics costs, disrupted production lines and lost sales. Since then the challenges have continued to grow, with COVID-19 causing delayed border movements, disrupted labor supply at ports, and passenger flight cancellations. While 2021 is slowly bringing back normality, there still remains multiple challenges to overcome when it comes to logistics, including air freight rates, capacity and disruption, as well as ground transportation restrictions, trucking shortages, ocean freight disruptions and capacity shortages, warehousing congestion, imbalance in container supply and labour shortages.

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63.1%

Air freight rates, capacity and disruption

48.7%

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42.6%

Ocean freight disruptions and capacity shortage

24.6%

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7.2%

Rail transport restrictions

7.7% Other

Mitigating the challenges in logistics When it comes to mitigating the challenges presented by COVID-19, the most common way to keep supply chains running, avoiding expensive shutdowns and undelivered customer orders was to pay premium rates (37.4 per cent) “in order to have critical air cargo shipments uplifted from origin points, as air cargo capacity rapidly decreased from March 2020 due to international travel restrictions.” An example of this which DHL Resilience360 (now Everstream Analytics) goes on to explain is “a China-based supplier of automotive components used in exterior trims of cars manufactured by Mazda had to shift production to Mexico and then airlift procurementmag.com

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the products to its customer’s assembly line in Japan, a move that cost in total more than US$5mn.” Other ways in which organisations mitigated the challenges included increasing stock levels prior to, or in the early stages of COVID-19 to increase their resilience (22.6 per cent). “It is likely that companies with a robust supply chain risk management system in place were able to react faster to the unfolding pandemic in the early months of 2020, giving them a time advantage to either secure more critical supplies or ensure logistics capacity amid rapidly decreasing options,” comments DHL Resilience360 (now Everstream Analytics). In addition to these core ways organisations navigated COVID-19, a low percentage all used a combination of alternative transportations (15.4 per cent) or ocean services instead of air (7.7 per cent), DHL Resilience360 (now Everstream Analytics) comments that this illustrates “that in an uncertain environment that makes scenario planning difficult, most companies opted for more expensive yet reliable options, such as air cargo, and increased buffer stock.” Shifts in manufacturing as a result of COVID-19 If COVID-19 has identified one thing in the industry, it is the extent that companies are contemplating the need to diversify their supply chain locations to reduce their reliance on a single country such as China for its manufacturing facilities. “At the height of the crisis, the COVID-19 pandemic exposed the severe vulnerabilities that global manufacturers faced as companies scrambled to identify affected suppliers and keep their supply chains moving,” says DHL Resilience360 (now Everstream Analytics). 120

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When it comes to having a sourcing and manufacturing presence, DHL Resilience360 (now Everstream Analytics) details that it comes at no surprise that China (57.1 per cent) was the top choice for manufacturers as a single significant presence, followed by the European Union (52.9 per cent), United States (51.2 per cent), Mexico (27.6 per cent), and India (25.9 per cent). While key risk mitigation factors driving production away from countries like China range from lower labor costs to sourcing diversification, the jury is still out on whether “a mass exodus of global supply chain uprooting out of China,” will happen, DHL Resilience360 (now Everstream Analytics) comments that it is “unlikely for several reasons.” While it may seem an enticing prospect, “companies will need to evaluate various factors from a supply chain and operational standpoint: lack of sufficient access to mature manufacturing facilities; warehousing availability; reliability of air, ocean, and ground infrastructure

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“ At the height of the crisis, the COVID-19 pandemic exposed the severe vulnerabilities that global manufacturers faced” EVERSTREAM ANALYTICS

FORMERLY DHL RESILIENCE360

Shehrina Kamal TITLE: PRODUCT DIRECTOR COMPANY: EVERSTREAM ANALYTICS The most significant finding from the report Persistent air cargo constraints: COVID-19 has had severe implications for the global air cargo industry, on both the supply and demand sides, which continue to cause ripple effects throughout supply chains. Capacity in some trade lanes fell by more than 50 per cent during the initial phase of lockdowns in the first half of the year. This was mainly the case for cargo transportation on passenger aircraft, so-called belly cargo capacity, as airlines around the world canceled flights due to lower demand and travel restrictions. As of January 2021, global air cargo capacity remained around 32 percent below the levels of the same period in 2020

How should organisations prepare for the future? As mass vaccination campaigns get underway across the world, 2021 promises to be a year of recovery and a return to normal for supply chains and economies at large. However, the unpredictability of the virus spread, and associated disruptions to transport and business operations, will continue to be a defining feature of global supply chains well into the coming year. Beyond the pandemic, natural disasters and weather-related events continued to pose major challenges in several regions of the world, most notably Asia-Pacific and the Americas. There, countries such as Australia, Japan, China, and the United States faced their own share of disruptions in the form of wildfires, severe floods, or record-breaking storm seasons. As the frequency of these events continues to increase globally, so too will the risk of disruptions within global supply chains, making it ever more important to stay ahead of weather events before they turn into major disasters. procurementmag.com

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and transportation routes; and alternative suppliers and raw materials. In industries that are heavily reliant on advanced technologies, shifting sourcing and/or manufacturing out of China may not be advantageous given that much of the technology that is being built or made in China requires specific skills from an educated workforce that are not necessarily easily transferable elsewhere,” reflects DHL Resilience360 (now Everstream Analytics). Of those looking to move their productions elsewhere (30.6 per cent), the driving factors included a greater need for supply chain diversification (31.3 per cent), reducing reliance on China for sourcing essential materials (17.9 per cent), tariffs and other trade-war related disruptions (15.9 per cent), market access and regulatory restrictions (5.1 per cent) and greater domestic competition (3.1 per cent). Key candidates for the reshoring of productions include the European Union (15.4 per cent), the US (12.3 per cent), and Mexico (10.3 per cent). “Taking into consideration the impact of the COVID-19 crisis, the preference for shorter and more localised supply chains is understandable,” says DHL Resilience360 (now Everstream Analytics). “Those supportive of bringing off-shored manufacturing back to or closer to their native countries through re-shoring and/or near-shoring have longargued that repatriating more domestic operations would ensure stronger quality controls that have been overlooked in the past in order to capitalize on lower labor costs.” However, due to the highly integrated nature of global manufacturing and supplier networks, “it remains to be seen if multinational firms — should they commit to such a process — are successful in reducing supply chain reliance on China,” says DHL Resilience360 (now Everstream Analytics). procurementmag.com

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PROCUREMENT EXCELLENCE FOR THE PEOPLE 124

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WRITTEN BY: RHYS THOMAS

PRODUCED BY: GLEN WHITE

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Michelle Hernandez Lane, Purchasing Agent & Chief Procurement Officer, Metro Nashville, on digital excellence in government procurement and serving the community

nside the office buildings of the Metropolitan Government of Nashville & Davidson sits the division of purchases. In many ways, it is the beating heart of the Tennessee capital’s government, tasked with the singular purpose of advising and equipping more than 50 agencies, from the Fire Department to the Arts Commission, with the goods and services they need to fulfill their duties. The procurement division, as it is colloquially known, manages all purchases in excess of $25,000. Departments, empowered by Michelle Hernandez Lane, the Chief Procurement Officer, handle everything below that threshold. “Anything above that is going to come to our office,” she says. Hernandez Lane was appointed to the role in 2017, but has served the Metro Nashville government in a variety of capacities for two decades, joining in 2001 developing small business initiatives, and more recently as its Chief Diversity Officer. Her unique perspective on the local community, and procurementmag.com

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her grasp of government duty, places her at the centre of close to US$900mn worth of annual spend. “Our goal is to assist the various departments in meeting their objectives by providing them with superior procurement services that are aligned with the administration priorities in a legal way. Many of those departments know what they need, but they don't always know all of the government procurement rules to get it.Our job is to provide them with those services.” Hernandez Lane and her team touch nearly every major project, from the city’s streets and roads, to soccer stadiums and ballparks. As a result, she feels a great responsibility to represent the residents and communities of the Tennessee capital. “It is the people’s money that we spend,” she says. “So they should have some opportunity to participate in that process.” It is one of the biggest points of difference between Hernandez Lane’s procurement role and her private sector peers. “There is such a stark difference between what you can do as a procurement officer in the private sector versus the public sector,”

“ We had to adjust some of our internal business processes, which we've done very well, but from the standpoint of day-to-day work and the procurement process, it was largely digital already” MICHELLE HERNANDEZ LANE CHIEF PROCUREMENT OFFICER, METRO NASHVILLE

she says. "There are some who would say that the process in the public sector is not necessarily intuitive or common sense, but it is built the way that it is to ensure that there is integrity in that process, fairness, and that all potential offers have an opportunity.” It is a system designed to rout out favoritism, but it can be limiting, Hernandez Lane admits. In her many years of experience

MICHELLE HERNANDEZ LANE TITLE: CHIEF PROCUREMENT OFFICER LOCATION: NASHVILLE Michelle Hernandez Lane is the purchasing agent and chief procurement officer for the Metropolitan Government of Nashville and Davidson County. She previously served as the city’s chief diversity officer and director of the business assistance office. She is the first person of color appointed to her current role.

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Title of the video

working in government, such stringent regulation can hamper the light speed shifts in development upon which the corporate world is contingent. The challenge is in “maintaining the spirit of fairness, integrity, and transparency”, all while navigating the ultra-competitive world of procurement. “When you take strategic sourcing more generally, you're thinking about what those supplier relationships look like and how you can establish them in a way that ensures you're able to secure the goods and services, at the quality that you need, and at the best price. But some of the elements of that strategic sourcing almost fly in the face of the more specific rules for government procurement. “So we’re always looking at ways to rethink our approaches. Something that we'll be undertaking here in the next few months is looking at how we approach

demonstrations and pilot projects, which appear to restrict your ability in procurement activity with whomever provided that pilot or demonstration. That is so counterintuitive to the way that sourcing working more broadly in the world, not just in the government sector.” That ability to adapt and solve the vast number and high complexity of multidepartmental needs is powered by Metro Nashville’s early adoption of digitalization. Here, the procurement team has a head start on much of the private sector, large segments of which are still struggling to realize the potential of digital transformation. Metro Nashville’s entire procurement function operates electronically through the Oracle iProcurement system. All requests for proposals, competitive solicitation and other negotiation processes are handled digitally. As is contract management, procurementmag.com

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purchase orders, and sign-off through digital signatures. “I feel extraordinarily privileged that we operate in such a cutting-edge electronic procurement system, because from my discussions with peers and suppliers, many have struggled to successfully make this digital transformation,” Hernandez Lane says. “We had to adjust some of our internal business processes, which we've done very well, but from the standpoint of day-to-day work and the procurement process, it was largely digital already, and we were fully able to execute our functions in an efficient manner.” This digital readiness mitigated much of the impact of the pandemic. When meeting physically was no longer an option, the team simply pivoted to a variety of digital platforms, such as WebEx and Zoom. In fact, these efficiencies will be carried forward at Metro Nashville. Still to define exactly what return-to-office work will look like, whether it’s fulltime on-premises or a hybrid approach, Hernandez Lane intends to take the digital tools that have kept them operating throughout the crisis into the future. “No one wants this efficiency at the cost of something as horrific as the pandemic,” she says. “But the silver lining for me is that

MICHELLE HERNANDEZ LANE CHIEF PROCUREMENT OFFICER, METRO NASHVILLE

DID YOU KNOW...

“ I feel extraordinarily privileged that we operate in such a cutting-edge electronic procurement system”

MICHELLE HERNANDEZ LANE ON DIVERSITY “Diversity and inclusion are important to us. We're always going to include that in our solicitation processes, in our competitive processes for construction. We have a sound partnership with the Gay and Lesbian Chamber of Commerce, and our efforts are to ensure that those business types are included in all of the outreach that we would engage for any other business, but especially with our small disadvantaged businesses. “This is not just specific to procurement. I think it is a broader initiative across government. I had the privilege prior to this role to serve as the Chief Diversity Officer for the city, and we have a new Chief Diversity, Equity and Inclusion Officer who's picking up that work. One of the things that was really important was how do we identify those areas where we should be developing leadership pipelines within government. “I don't want to tell you that it's 100% there, but it is something that we continue to work on within my office, specifically. Nashville has a very diverse resident base, and I'm very pleased that we look like Nashville. Our people bring a variety of thoughts and a variety of backgrounds and experiences. I try to ensure that folks understand that there is a leadership path here, and that everyone here has an opportunity to grow and develop.”

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we have learned how to use the tools and resources that we have available to us in a more effective way.” One major advantage is a transformation of the bidding process. Where once prospective suppliers were invited in to pitch and bid on a contract, those meetings are now held digitally on WebEx. It shifts the balance in favor of organizations of all sizes, Hernandez Lane says, who adds that the smaller businesses are often the most technologically savvy. “People can log in, hear all of the information that's there, ask questions, we have a record of their attendance. All of those things are beneficial to us because it increases competition and the likelihood that we receive the best product or service at the best price. That’s certainly a net gain for the government, and it benefits suppliers because more of them have an opportunity to engage with us. “We position ourselves to make sure that our suppliers understand what we're seeking and how to do business with us. That was usually a session in person at 10am during the day, when many of these smaller businesses who don't have the privilege of a business development officer. They have to make a decision: do I go and learn something that could translate into more business opportunities with the city, or do I complete this project for an existing contract? Whereas now we have those sessions electronically, and it gives them the opportunity to be there, to ask questions, to learn, to understand without necessarily having to take away as much time.” Beyond routine sourcing functions, Hernandez Lane’s team also acts as a response force. Vital to the government’s pandemic efforts, they are well versed in supporting departments during emergency 132

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“I want Metro Nashville to be that place in government procurement that folks look to and say, ‘They're really doing a really great job with digital procurement’ ” MICHELLE HERNANDEZ LANE CHIEF PROCUREMENT OFFICER, METRO NASHVILLE

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situations; in the past year alone they’ve faced two tornadoes, and a bombing on Christmas morning. “Our procurement regulations have very clear directions about how you manage the procurement process under emergency conditions. Our office is supportive of departments who do have some latitude to meet the need of the emergency. They're not going to stop repairing a water main break that was the result of an explosion downtown, for example, because they've got to go through the purchasing process. The procurement regulations provide 134

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“ It is the people's money that we spend. So they should have some opportunity to participate in that process” MICHELLE HERNANDEZ LANE CHIEF PROCUREMENT OFFICER, METRO NASHVILLE

METRO NASHVILLE

a detailed process for them to meet the need of that emergency. And then we work to execute the administrative piece of it on the backend.” As life begins to return to pre-pandemic normality, Hernandez Lane has great ambitions to realize the insights and learnings of the past 12 months. On going reform will continue at all points throughout the procurement process. “I hope that this time next year we see a full exploitation of our efforts around procurement reform. There's still a lot of work to do, but I want that procurement

process to be best in class. I want Metro Nashville to be that place in government procurement that folks look to and say, ‘They're really doing a really great job with digital procurement. They've got a really great approach to equity and inclusion in procurement, transparency, and processes where folks are able to service themselves and have insight into that process’. All of that to me builds a best in class organization that I know we can achieve.”

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COMPANIES IN PROCUREMENT WRITTEN BY: HELEN ADAMS 136

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Through diverse procurement policies and practices, these companies are supporting marginalised companies and helping to level the playing ground

iversifying a business is the act of trading with those who have been traditionally overlooked or who are at a disadvantage to others. From the Conference Board of Canada’s “The Business Case for Supplier Diversity in Canada, “Diverse, well-developed supply chains can help companies reduce costs, enhance innovation, successfully integrate acquired businesses, and reach new markets.” However, many women and minorityowned businesses have faced difficulty in gaining fair access to opportunity. Through diverse procurement policies and practices, these companies are supporting marginalised companies and helping to level the playing ground. Here is our diverse Top 10 in procurement. procurementmag.com

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Cummins Indiana

Revenue: $19bn CEO Tom Linebarger says: “Cummins has a long legacy of commitment to diversity and recognise diversity as one of our core values.” Linebarger sees diversity as a way to encourage talented individuals to work with Cummins, to increase their international presence and to exceed customer requirements. The Cummins Diversity Procurement Initiative increases purchasing from diverse suppliers and the company has created a podcast on the subject: Backstage Pass.

World Bank Group Washington DC

Founded: 1944 The World Bank was established at the end of the Second World War, when the whole world hoped for a brighter future. The World Bank supports everyday entrepreneurship opportunities in Developing Nations and boasts diverse procurement. “A diverse supplier base benefits us by bringing different perspectives. We are committed to promoting the business participation of Minority- and Women-Owned Business Enterprises in our procurement process.”

Johnson & Johnson New Jersey

Revenue: $78bn The makers of healthcare products for soothing babies, Johnson and Johnson takes diverse procurement as seriously as parents take an opportunity to nap. The company spends more than US$1bn on items from small businesses and diverseowned suppliers, from the Supplier Diversity Program. “We work with suppliers to accelerate environmental and social improvements across the value chain. We ensure compliance with all procurement policies,” a representative said.

Bristol Myers Squibb New York

Revenue: $11bn The pharmaceutical company recognises diversity in their procurement as a strength and a key to improving the lives of BMS’s patients. The company is “passionate about creating an environment that celebrates diversity” and has set up The Bristol Myers Squibb Supplier Diversity Program, which encourages suppliers owned by minorities, from the LGBTQ+ to the disabled to join, giving them the chance to meet with industry experts. procurementmag.com

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TOP 10

Oliver Wyman New York

Revenue: $2bn

Accenture Dublin

Revenue: $43bn Consulting company Accenture has a motto: “Let there be change.” This is being implemented in the business’ procurement through Accenture's Diverse Supplier Development Program. Accenture’s program develops relationships with businesses owned by women, people with disabilities, the LGBTQ+ community and veterans. "We believe inclusive procurement practices create longterm value for our clients and our communities, while helping us remain ahead of the market," said Chief Procurement Officer, Kai Nowosel.

International management consulting firm Oliver Wyman has focused on the role and impact of women in procurement. The company surveyed 300 Chief Procurement Officers, who identified a number of areas which needed diversifying. This includes traditional fields such as combatting stereotypes to more modern issues, like normalising paternity leave. The survey also encourages unbiased hiring criteria and a transparent promotion process and “open dialogue on gender diversity.”

TOP 10

04 Marriott Maryland

Revenue: $10bn Hotel chain Marriott has a diverse supplier program, Exchanges, which encourages differences in the work space. “When we partner with minority-, women-, LGBT-, disabled-, and veteran-owned businesses, we all benefit. It helps to drive economic empowerment around the world, better support our customers and expand our global footprint.” Globally, Marriott has spent over US$5bn with diverse suppliers and has been awarded DiversityInc 2016 Companies for Supplier Diversity.

MGM Resorts Las Vegas

Revenue: $5bn MGM Resorts, known for the MGM Grand in Las Vegas, took a financial hit as a result of the pandemic. The company’s goals for 2025 include: “Ensuring that all employees—including women, the LGBTQ+ community, people of color and people with disabilities— have equal access to leadership opportunities throughout MGM Resorts.” In addition, MGM Resorts plans to spend “at least 10% of our domestic biddable procurement with diverse suppliers.”

02 Coupa

California

Revenue: $95 million Creating software used across the world, by the likes of BMW and Adidas. Coupa’s transformation strategies are designed to “disrupt and transform.” The Coupa database has two million diverse suppliers, ranging from minority-, woman-, veteran- and LGBTQ+ -owned. In discussion with The Digital Insight, Rod Robinson, Vice President of Supplier Inclusion and Sustainability at Coupa explains his role in connecting minority owned businesses with larger businesses. “It’s about the inclusion of underrepresented suppliers. These small businesses drive economic growth. I knew these suppliers existed, I just didn’t know where to find them.” Coupa is also creating resources to encourage other businesses to diversify their own supply chains, from webinars and whitepapers to videos.

“It’s about the inclusion of underrepresented suppliers” procurementmag.com

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Coca-Cola FEMSA Innovates Procurement to Optimize Experiences for Employees, Suppliers and Consumers

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Coca-Cola Georgia

Revenue: $33bn If intelligent life contacts earth, the first beverage to be offered may well be a Coke. The iconic Coca- Cola bottles have been enjoyed from the sea bed to space and the drink has been the subject of many amusing Mentos experiments. The company supports their suppliers innovative and sustainable ideas. Coca-Cola is “committed to supplier diversity by maximising procurement opportunities and proactively engaging and building partnerships with diverse suppliers.” Coca-Cola adds that its “procurement strategy will develop stronger local communities and create longterm growth.” In its reverse supply chain, Coca-Cola has partnered up with the Nepali government, to help clean up the rubbish left behind by ambitious Everest climbers for the Clean Our Pride initiative.

“It’s about the inclusion of underrepresented suppliers” procurementmag.com

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TELUS

Leading the IT Procurement Transformation WRITTEN BY: LEILA HAWKINS PRODUCED BY: GLEN WHITE

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TELUS

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TELUS

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TELUS

Mariam Saad, Director of Procurement, IT & Technology Services at TELUS, discusses the importance of digital transformation and partner ecosystems

Mariam Saad, Director of Procurement, IT & Technology Services at TELUS

ne of Canada's largest telecommunications companies, TELUS, is leading the way in terms of digitally transforming its operations using advanced technologies to drive efficiencies. In 2020 the organisation won the Digital Transformation Award under the AI-fueled Digital Transformation category from IT World Canada (ITWC). This award was presented to TELUS in recognition of its industry-leading innovation for AI chatbots and robotic process automation (RPA) solutions. While TELUS became a national Canadian brand in 2000, its history dates back to the late 1800s when Alberta Government Telephones was founded to provide telephone lines for people in the western province. When the company was reorganised, it became part of the newly established TELUS Corporation, and sales of TELUS shares were the largest initial public offering in Canadian history up to that point, raising $896 million. Following a merger with BC TELECOM, and acquiring Clearnet, TELUS is today one of Canada's largest technology companies and a leading national telecoms provider. But as Director of Procurement in IT & Technology Services Mariam Saad tells us, now they are focusing on growing several new verticals including home security, agriculture, and health. Saad has a background in sales. After studying international business and marketing she completed a leadership procurementmag.com

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" Bringing our data into the Google Cloud Platform will enable us to clean the data, create actionable insights for teams, and integrate the data flow right across the organisation" MARIAM SAAD

DIRECTOR OF PROCUREMENT, IT & TECHNOLOGY SERVICES, TELUS

certificate in the Executive MBA programme. She spent the first 10 years of her career in sales, specifically in IT sales, working for Compuware and Upland among others. Then she was headhunted by mining company Rio Tinto, who were looking for someone with commercial and business skills - Saad was a perfect match. This led to working in procurement, and after 6 years at Rio Tinto she joined TELUS, initially as their Strategic Sourcing Manager for IT software and hardware. Within five years she moved up to her current role as Director of Procurement, IT & Technology Services, TELUS. "At TELUS, my role in procurement has been heavily weighted towards transformation of our overall capabilities," Saad says. "From a day-to-day delivery 152

June 2021

TELUS

MARIAM SAAD TITLE: DIRECTOR OF PROCUREMENT, IT & TECHNOLOGY SERVICES

EXECUTIVE BIO

COMPANY: TELUS Having studied business and completed a Certificate at the McGill Executive MBA programme in leadership, Saad's career led to her working in the three top industries in Canada: IT, natural resources and telecoms. Currently, Saad actively supports the Montreal Women's Network, and sits on the board of Business Development Committee for WBE. Saad is a mentor to numerous supply chain and procurement professionals, and is a mentor for MOSAIC, a multilingual non-profit organisation dedicated to addressing issues that affect immigrants and refugees in the course of their settlement and integration into Canadian society. Additionally Saad is the proud mother of Maya, 13, and Michael, 7.

procurementmag.com

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TELUS

TELUS Health’s IT Procurement Transformation

" We've built very strategic partnerships that have allowed us to build the fastest, highest quality network in the world" MARIAM SAAD

DIRECTOR OF PROCUREMENT, IT & TECHNOLOGY SERVICES, TELUS

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standpoint I support IT software, cloud, and the technology business." The organisation has a clear goal: to become a software-first, cloud native organisation. Within procurement, key strategic aims are to reduce purchase order cycle time, and drive end-to-end integration across all TELUS platforms. To do this they are leveraging automation, artificial intelligence, and data analytics, all of which are helping them accelerate their digital capabilities. Saad explains that this digital transformation is delivering four major benefits: reducing time, reducing risk, leveraging more innovation, and creating more actionable insights. "I would say the benefits are reducing time to source, reducing risks, leveraging more innovation

TELUS

and driving incremental value. in a digital format, in language Also bringing our data into the that is readable by both humans Google Cloud Platform will and machines. Typically run on a TELUS became a enable us to clean the data, create blockchain, they can also contain national Canadian brand in actionable insights for teams, and an algorithm that automates the integrate the data flow right across performance of the agreement the organisation." itself - in procurement and supply but its history dates back to the late "Reducing the time it takes chain, they are increasingly used to get the relevant data is our for inventory management and the biggest challenge" Saad adds. To automation of payments. address this they are deploying a range of The aim of these tools, Saad explains, is to advanced technologies like NLP, machine do the administrative work to enable their learning, advanced analytics and AI. teams to focus on leveraging relationships Deploying AI tools with hyper automation with suppliers, as well as innovation. is particularly important, to enable them While their priority is to develop their to automate tasks, and to aid end-to-end core competencies and enhance in-house visibility from suppliers. capabilities, only using third parties when Another important tool is smart necessary, their partner ecosystem is contracting. Smart contracts are written crucial to advancing the business, as

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Saad says, "we've built very strategic partnerships that have allowed us to build some of the fastest, highest quality networks in the world." Several of these have won awards, including Best Customer Service Strategy for their partnership with Samsung Electronics, and being named Cisco’s Cloud Partner of the Year for Americas-Canada. Along with important partnerships with IBM, AWS, and Microsoft, in February this year TELUS announced a 10-year partnership with Google Cloud. "This will help us accelerate our digital transformation journey to become a software-first company cloud native organisation" Saad says.

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" I really take pride in driving our team members, allowing them the autonomy to select and take on their own projects" MARIAM SAAD

DIRECTOR OF PROCUREMENT, IT & TECHNOLOGY SERVICES, TELUS

TELUS

"We have these partnerships because they are mutually beneficial, and they really have a high degree of collaboration with a focus on a multi-year relationship and consistent business results. They enable our business customers to streamline their IT and network operations. These partnerships are crucial because they help us deliver on our priorities." As part of this partnership, both companies will generate new industry solutions and strategies to drive growth in telecoms, healthcare, home security and agriculture. Their focus on agriculture is a great example of innovation. Launched in November last year, TELUS Agriculture has the ambitious aim of digitally transforming the global food system. Using advanced data analytics and AI, the goal is to streamline operations and improve food traceability. "TELUS is redefining the way healthcare and agriculture are delivered by increasing collaboration efficiency between healthcare providers, and providing consumers with fresher, healthier food, by creating systems that allow people to trace the origins of their food, which can lead to better nutrition and ultimately, health outcomes" Saad explains. Despite forming relatively recently, TELUS Agriculture already supports more than 150 million acres of agricultural land, with a team of over 1,200 experts across the Americas, the United Kingdom, Europe, China, and Australia.

It's certainly something that sets TELUS apart, as Saad says, "other telecom companies here in Canada focus on media for example, but our focus is really on helping Canadians by delivering healthcare, We are helping Canadians live healthier lives by applying innovative technologies to revolutionise healthcare. For agriculture, we are on a mission to tackle one of the most signifcant social challenges of our generation—feeding the world—while improving the quality and safety of our food by leveraging technology innovation and human compassion and home security, and in the future we will continue to invest in these key industries. That's how we'll become the leading company in these sectors."

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