www.supplychaindigital.com
S E P T E MB E R 2 0 18
Bolloré Logistics
Switching on it’s sustainable agenda An exclusive interview with Mathilde Dumoulin, Bolloré’s Sustainability Development Manager
XPO Logistics
Exclusive interview with Richard Crawford, Managing Director, Supply Chain — Europe
FLOGAS
Breaking down silos through digitisation
Top 10 LARGEST GLOBAL FREIGHT FORWARDERS
50 CPOs 250 Peers Tons of fun!
Save 25% off your ticke
Visit www.ProcureConIndire
September 24 - 26 | Scottsdale, AZ
et with code PIW18SCD
ect.com for more information
A RESPONSIBLE SUPPLY CHAIN LETS YOU PROCURE WITH PURPOSE, AND MAKES YOU FEEL GOOD, TOO.
Do right. Sleep tight. As a buyer, you’ll sleep better knowing you’ve got SAP Ariba to monitor supplier risk, achieve full supply chain transparency, and guarantee responsible sourcing. THE BEST-RUN BUSINESSES MAKE THE WORLD RUN BETTER.
Learn more at: ariba.com
FOREWORD
ello and welcome to the September edition of Supply Chain Digital, the leading publication for executives working in supply chain, procurement and logistics. In this month’s must-read issue, we kick off with a deep dive of the Bollore Logistics’ new sustainability-led agenda. We spoke exclusively to the company’s Sustainability Development Manager, Mathilde Dumoulin, who speaks about why the new strategy is so important to Bollore’s overall success. It is yet another example of sustainability becoming a central element to companies’ plans for future success, in quite the same way that procurement and supply chain professionals have had to fight for their voices to be heard at the top table of business. Elsewhere, we speak with Richard Cawston, XPO’s Managing Director for Europe Supply Chain to get his thoughts on his first year in the job, the importance of embracing technology and why the company believes in recruiting from within. With some executives, that may come across as lip service, but Cawston speaks from experience, having risen successfully through the ranks in his 15 years with the company. Elsewhere, we also bring you some cracking company reports from the likes of Flogas, EnviroServ, KAR Auction Services and Kansai/Vinci Airport. We hope you enjoy September’s Supply Chain Digital. Please get involved with our online community on Twitter, LinkedIn and Facebook.
H
James Henderson Editor james.henderson@bizclikmedia.com
w w w. s u p p l y c h a i n d i g i t a l . c o m
05
CONTENTS
14
BOLLORÉ LOGISTICS
30
Powering
Sustainable Logistics
40
INDUSTRY 4.0 Taking advantage of the difference 50
64 EVENTS & ASSOCIATIONS
LARGEST GLOBAL FREIGHT FORWARDERS
CONTENTS
72
Flogas
Delivering operational efficiency across the supply chain
86 Enterprise
optimisation
KAR
with
96 How Kansai Airports is transforming passenger experiences in Japan
112
126 EnviroServ
RESPONSIBLE WASTE MANAGEMENT IN SOUTH AFRICA
140 MIDDLE EAST BROADCASTING GROUP
Procurement excellence for the small screen
HOME T O IND U S T R Y– L E A DING DIG I TA L B U SINE S S P L AT F OR M S
HAVE YOU SEEN OUR OTHER TITLES?
14
SEPTEMBER 2018
A S I A — PA C I F I C
15
Powering
Sustainable Logistics WRIT TEN BY
DA LE BENTON PRODUCED BY
A LE X PAGE
w w w. s u p p l y c h a i n d i g i t a l . c o m
BOLLORÉ LOGISTICS
Mathilde Dumoulin, Sustainability Development Manager, gives her insight on Bolloré Logistics’ new sustainable agenda
A
s one of the world’s leading transport and logistics operators providing services across 106 countries on five continents,
Bolloré Logistics is all too aware of its responsibility to ensure that those operations are sustainable. Falling under the wider global organisation, Bolloré Transport & Logistics, Bolloré Logistics is one of four business units that consists of more than 20,200 16
staff and employees. The company has a clear vision – to be the leading provider of transport and logistics in each and every one of its geographical locations. One particular area in which Bolloré Logistics has a major distribution network is Asia Pacific. It has a presence in 20 countries, including Singapore, where its main contract logistics hubs are situated. For Sustainability Development Manager, Mathilde Dumoulin, Singapore is a key market for freight and logistics. “Besides its strategic location, Singapore is a great innovation hub,” she says. “The growth in Asia is also an opportunity for Bolloré Logistics to improve and to think more innovatively as we develop in this region.” Particularly from a sustainability perspective, Singapore represents a fantastic pioneer
SEPTEMBER 2018
A S I A — PA C I F I C
location. The company engaged its sustainability strategy from 2010, by investing in the “Green Hub” – the first energy-efficient logistics facility in Singapore to receive the Green Mark Platinum and LEED Gold certifications. Again pioneering low-emitting transport solutions in Singapore, Bolloré Logistics also introduced its first hybrid shuttle in March 2015. Powered by highly efficient diesel and electric motors, the truck serves iconic retail stores from the Green Hub. The hybrid technology reduces fuel consumption and harmful atmospheric emissions such as CO2 and suspended particles by up to 30%. 17
"THE GROWTH IN ASIA IS ALSO AN OPPORTUNITY FOR BOLLORÉ LOGISTICS TO IMPROVE AND TO THINK MORE INNOVATIVELY AS WE DEVELOP IN THIS REGION” — Mathilde Dumoulin, Sustainability Development Manager
w w w. s u p p l y c h a i n d i g i t a l . c o m
Real Construction, Real Solutions Nam Aik Builders (P) Ltd was formerly known as Nam Aik Contractor (P) Ltd and was incorporated on 26/10/1993 in Singapore. It was changed to it’s current name on 11/01/1994. This company was founded by Mr Chew Kian Nam as a General Contractor in Building Construction including Major Upgrading works.
UNIQUE ADVANTAGE Because the company with its management team’s comprehensive knowledge and experience in this industry together with experienced workers from all trades, it is able to undertake ‘turn-keys’ projects, from building construction to M&E to interior design and finishing in both industrial and commercial sector.
MISSION Our mission is to be a premier service provider in building and construction and stay emphasis on customer section in delivery of design , engineering and construction services.
HISTORY The organization is primarly involved as a main contractor in the construction and additional/upgrading work industry. Apart from this, the company also undertakes interior renovation and furniture work. The list of projects that were awarded certificates of successful completion or completed is mentioned below. In the case of Bollore Logistics S’pore Pte Ltd formely known as SDV Logistic (one of the top 10 Global Logistics/warehousing company from France), we are their in-house resident contractor responsible for all upgrading works and new setup facility.
namaik.com namaik@signet.com.sg +65 6 862-7553 +65 6 862-974 6
A S I A — PA C I F I C
19
BIO
Those two key milestones reinforced Bolloré Logistics’ position as key actor for sustainable logistics in Singapore, combining economic growth with environmental protection. With such a major logistical network, Bolloré Logistics invests a great deal into monitoring, improving and ultimately reducing its carbon footprint. This commitment was first structured at a global level in 2000 with the creation of the Group Code of Ethics.
Mathilde Dumoulin, Sustainability Development Manager Mathilde Dumoulin graduated from Audencia Business School in 2014, majoring in entrepreneurship. She started working in China for a large French company, distributor of electrical supplies to professional users. Passionate about sustainability, she decided to make it her career path and moved to Bollore Logistics in Singapore.
w w w. s u p p l y c h a i n d i g i t a l . c o m
6 C O L O U R S D I G I TA L P R E S S|L E T T E R P R E S S M A C H I N E THE LABEL SPECIALISTS BLANK LABEL, BARCODE L ABEL , COSME TICS L ABEL , PAC K AG I N G L A B E L , E TC . . .
Leslie Goh / Desiree Lim - Email address: sales@Ldprint.com.sg Tel: +65 6484 3393 Fax: +65 6484 4493 7 Gambas Crescent #03-03 Ark@Gambas Singapore 757087
A S I A — PA C I F I C
For more than 18 years, Bolloré Logistics has had a sustainability and corporate social responsibility (CSR) agenda that has been implemented throughout every aspect of the business. In 2011, the company launched the “Save Program” – an eco-solutions program dedicated to its customers. “Traditionally, CSR and sustainability have been viewed perhaps as a ‘nice to have’ activity,” says Dumoulin. “Bolloré Logistics has recognised it as a ‘musthave’, fully integrated into the entire operation. It has to be a core pillar of everything we are trying to achieve.” This year, Bolloré Logistics is launching
21
the “Powering Sustainable Logistics” programme. The Group has been structuring this new programme in collaboration with its internal and external stakeholders based on the ISO26000 approach. As part of a responsible supply chain, the group’s ambition is to integrate environmental, social and societal solutions across each link in their day-to-day
w w w. s u p p l y c h a i n d i g i t a l . c o m
BOLLORÉ LOGISTICS
VARIETY OF QUALITY Our Company, incorporated in Singapore in July 2005, provides sourcing services and supplies of warehousing and factory logistics support products to companies in various industries. In general, Glorreich Singapore Pte Ltd supply cost-efficient ,as well as cost-effective products, and backed with a high level of service standard backed by speedy response, prompt delivery and continuous after-sales service to meet the customer’s specific requirements.
www.glorreich.com.sg | sales@glorreich.com.sg Tel: +65 6896 6793 | Fax: +65 6896 6937
A S I A — PA C I F I C
“TRADITIONALLY, CSR AND SUSTAINABILITY HAVE BEEN VIEWED PERHAPS AS A ‘NICE TO HAVE’ ACTIVITY. BOLLORÉ LOGISTICS, HAS RECOGNISED IT AS A ‘MUST-HAVE’, FULLY INTEGRATED INTO THE ENTIRE OPERATION” — Mathilde Dumoulin, Sustainability Development Manager
23 operations, while contributing to the UN Sustainable Development Goals. The programme sets targets for
These pillars are inspired by Bolloré Group’s global CSR strategy and applied to the specific case of
2025, with first steps to be achieved by
logistics and its stakes, which Dumoulin
2020. It is built around an ambitious
feels enables a greater consistency
roadmap that will guide the Group
between the big picture and the reality
around four pillars: ensuring ethical and
of the logistics business.
responsible business practices within
“The baseline of this strategy is that
the logistics value chain; acting as a
sustainable consumption is not only
committed employer for the teams;
the responsibility of manufacturers,”
providing customers with sustainable
she says. “Logistics companies also
supply chain solutions; strengthening
have a part to play through integrating
relations with stakeholders wherever
CSR solutions in our freight and
they operate. The programme is
warehouse operations.”
materialised through key performance indicators and related action plans.
On a daily basis, Bolloré Logistics calls upon a vast portfolio of suppliers w w w. s u p p l y c h a i n d i g i t a l . c o m
BOLLORÉ LOGISTICS
and partners that both assist and support in the delivery of the company’s market leading services to its customers. These suppliers and the relationships that Bolloré Logistics fosters with them are also intrinsically linked to the sustainability agenda. “There are several ways of selecting and partnering with suppliers,” she says. “You can choose the best suppliers from the start, but you still need to ensure that they are complying with our CSR criteria.” “We ask them about their CSR practices from the very beginning, to ensure that we will work with people who are aware and have a 24
solid process. We also spend time innovating and constantly improving partnerships. This is ideal for both parties because we can move forward together, communicating in a shared language.” Sustainability is no doubt a global issue, where more and more countries are looking at improving their own processes; and there are of course some countries that are more mature than others. Thus, in the process of seeking out suppliers who can align to its sustainability agenda, Bolloré Logistics drives a second approach. SEPTEMBER 2018
Click to watch: ‘Bolloré Logistics — Global Supply Chain’
A S I A — PA C I F I C
“AS A LARGE GROUP WE HAVE A RESPONSIBILITY TO PUSH AND DRIVE THEM (SUPPLIERS) TO ACT AND ENABLE INNOVATION. THAT’S ONE OF THE KEY TO INNOVATE. WE SHARE INFORMATION AND KNOWLEDGE SO THAT WE CAN DEVELOP THEIR SUSTAINABILITY CAPABILITIES AND GET THEM TO COME ALONG WITH US ON OUR JOURNEY” — Mathilde Dumoulin, Sustainability Development Manager
“If a supplier isn’t at the top of the sustainability generation, in addition to our mandatory CSR criteria, we go to them with the information and open up a dialogue,” says Dumoulin. “As a large group we have a responsibility to push and drive them to act and enable innovation. That’s one of the key to innovate. We share information and knowledge so that we can develop their sustainability capabilities and get them to come along with us on our journey.” A cornerstone of Dumoulin and Bolloré Logistics’ vision for CSR is that it has to be entrenched within every aspect of the business. This has seen the company develop and foster an internal culture towards CSR, one that sees that each and every employee recognises the importance of viewing the sustainability agenda as a shared responsibility. “There has to be a buy in from everyone, and it starts at the top,” says Dumoulin. “It’s about communication – from the w w w. s u p p l y c h a i n d i g i t a l . c o m
25
BOLLORÉ LOGISTICS
management team, right down to our
26
“It is going to get to a point where
operation warehouse teams, making eve-
sustainability is just part of the company’s
ryone aware of our company ambition.”
day-to-day operation,” she says. “People
Creating this on-going dialogue is
sometimes approach sustainability
crucial for Dumoulin, as she feels the
because they have been asked to,
secret to the success in delivering
whereas Bolloré Logistics is reaching
this vision is being able to pick any
a stage where it’s not an additional
member of staff at random and ask,
responsibility, it’s just part of what we do.”
“what is a sustainable practice in their day-to-day job?” If that employee has been ingrained
As a company that has been operating, rather successfully, for a number of years, Dumoulin stresses
within this culture of sustainability, then
the importance of understanding that
they can point to a number of examples
any change is a journey that will take
of not only what they are doing, but also
time. Managing expectations and
on what the impact is, and what the
embracing change one step at a time
benefits are to the organisation. This,
will prove key in defining the compa-
she feels, creates a level of confidence
ny’s future, both from a sustainability
throughout Bolloré Logistics that the
perspective and with regards to
company is executing it successfully.
expansion and growth.
SEPTEMBER 2018
A S I A — PA C I F I C
But over the last few years Bolloré Logistics can already point to significant changes that represent proof that the company’s agenda is being implemented and changing the company for the better.
27
“To my knowledge, the implementation of the hybrid truck represents the only hybrid truck here in Singapore,” she says. “Bolloré Logistics takes pride as a leader in green innovation and solutions. We are at the forefront of investing in green solution even when other companies are not quite on-board the idea, because we truly believe in the value of having a good CSR. Furthermore, it is also important that we stay in line with market demands and trends, because this is a journey that will continue to evolve and we must evolve with it.”
w w w. s u p p l y c h a i n d i g i t a l . c o m
The ONLY Event Dedicated To
PROCUREMENT AND SOURCING FOR THE MRO CATEGORY
Sa Re
October 29 - 30, 2018 | Fort Worth, TX
ave and extra 25% with code PMRO18SCD. egister at procureconmro.com
LEADERSHIP
The 30
X Factor in logistics XPO Logistics has forged ahead in the logistics world in recent years. Richard Cawston, MD for Supply Chain in Europe tells us how the organisation is leading the way on the continent WRITTEN BY
JAMES HENDERSON
SEPTEMBER 2018
31
w w w. s u p p l y c h a i n d i g i t a l . c o m
LEADERSHIP
I
t’s a really exciting time to be working in logistics,” says Richard Cawston, XPO’s Managing Director, Supply Chain Europe,
during a wide-ranging 45-minute interview that he squeezes into one of his regular whistlestop tours of the continent he oversees. Cawston is a man who can make such an assertion with some authority, having originally joined the business some 15 years ago. Since then, he has risen through the ranks of XPO’s European operations, taking over his current role 12 months ago, having previously held the position of Managing Director for UK & Ireland for the previous couple of years.
32
XPO is a company that is making waves in the logistics space, and by Cawston’s own admission, a business that is doing “extremely well”, adding that accepting the new role was “a real delight”. Reflecting on his first 12 months in the job, Cawston says: “One definite observation is just how incredibly fast-paced everything is, both in terms of the business and the economy as a whole. So we have to ensure we have the right resources, are in the right locations and have the right offering for our customers. We’re working incredibly hard to build our European business and accommodate what has been rapid growth. There’s never a dull day, put it that way.” One of the reasons XPO seems to be driving SEPTEMBER 2018
“ The new East Midlands centre will operate as both a think tank and a launch pad for XPO innovations, with far-reaching impacts on the way business is done” — Richard Cawston, XPO’s Managing Director, Supply Chain Europe
33
ahead on both sides of the Atlantic is
level operations is our warehouses,
its desire to lead the way in the take-up
including robots picking side-by-side
of emerging technology.
with people, the application of smart
“We’re invested in $450mn a year
glasses. We’ve got even some trials
in our technology projects, and we’ve
with drones, doing inventory manage-
got over 1700 IT professionals, includ-
ment. And all of that’s been connected
ing over a hundred people in data and
through a big investment in our propri-
analysis, which really allows us to be
etary software, so that links everything
a leader in technology. In terms of the
together. It’s a huge investment but also
disruption and disruptive technologies,
a step forward, in terms of technology
I believe we are leading the pace. We’re
that can plug and play all of this invest-
certainly leading the pace through
ment together.”
automation of robotics. “We’ve developed some really high–
Cawston says one of the technology areas XPO is very excited about is big w w w. s u p p l y c h a i n d i g i t a l . c o m
LEADERSHIP
data: “We have a big opportunity with
will also function as a testbed environ-
big data because of the data scientists
ment for XPO technology prototypes
we’ve got and the tools they have at
prior to global release.
their disposal. We know that by feeding information into our analytics and
centre, scheduled to complete in 2020,
inventory, we can begin to start
will feature advanced sorting systems
predicting trends and patterns with
and robotics alongside state-of-the-art
returns, which in turn will help us
automation co-developed with Swisslog
optimise our warehouse operations.”
Logistics Automation. The site’s digital
In addition, it has announced that is
34
The custom-designed distribution
ecosystem will integrate predictive
co-creating a 638,000-square-foot
data and intelligent machines to deliver
distribution centre with Nestlé at the
one of the most advanced distribution
new SEGRO East Midlands Gateway
management centres in the world.
Logistics Park in Leicestershire, UK.
Cawston says: “Nestlé has entrusted
The facility, dubbed a ‘digital ware-
XPO with the digital architecture for its
house of the future’, will be occupied
future vision. Together, we will create
predominantly by Nestlé for its
limitless opportunities to explore
consumer-packaged goods and but
new technologies in a state-of-the-art
“ We’re a company that communicates really clearly with our people, and getting around Europe and meeting them is my favourite part of the job” — Richard Cawston, XPO’s Managing Director, Supply Chain Europe
SEPTEMBER 2018
CLICK TO WATCH: SEGRO LOGISTICS PARK EAST MIDLANDS GATEWAY 35 logistics environment. The new East
market leader. But for other verticals,
Midlands centre will operate as both
we’ve got plenty of space to grow
a think tank and a launch pad for XPO
into, such as more manufacturing, and
innovations, with far-reaching impacts
industrialisation, for example.
on the way business is done. We look
“The political environment’s very
forward to an inventive collaboration
stable across Western Europe, and the
with Nestlé.”
economy’s good in each of the countries.
The year in charge has given Cawston
The cost and ability to serve the markets
a chance to reflect on the company’s
from the countries is pretty strong.
position, challenges and opportunities
Currently, our fastest growing country
in Europe.
today, in fact, is the Netherlands.”
“We are very strong in a number of
XPO rapid growth has certainly
the European countries, and we’re
caught the attention of industry observ-
strong in many of our verticals, particu-
ers and, as Cawston has pointed out,
larly in ecommerce, where we are the
its determination to grasp the technolw w w. s u p p l y c h a i n d i g i t a l . c o m
LEADERSHIP
36
ogy nettle has certainly catapulted the
a priority to promote from within – some-
business in front of a number of its
thing he himself can attest to having
competitors. But when asked what he
risen through the ranks. “We are clear
considers to be the most important
with our people that if they grow, so
factor in the organisation’s success,
do we. We are developing programmes
he answers without hesitation.
for new talent and that is clearly very
“It’s the people; it is genuinely some
important, but more than that is retaining
thing the company prides itself on and
our existing talent, and that can only
we consider absolutely integral to our
be achieved by a positive culture in the
success. We’re a company that commu-
organisation that we work on daily.
nicates really clearly with our people,
“60% of our team leaders have been
and getting around Europe and meeting
promoted from warehouse operatives.
them is my favourite part of my job.”
And in the UK, we have an award-winning
Cawston says the company makes it SEPTEMBER 2018
apprenticeship and graduate pro-
“I’d say to both new comers and all others in the industry that we all need to be better at collaborating, whether that’s with customers, suppliers or each other” — Richard Cawston, XPO’s Managing Director, Supply Chain Europe 37
gramme; we achieved something like
and all others in the industry that we
half a million hours of training delivered
all need to be better at collaborating,
in ‘2016 and 2017 alone.”
whether that’s with customers, suppliers
Asked what advice he would give to
or each other. We need to collaborate
young professionals looking to make
on projects. We need to collaborate on
their way in the logistics industry,
investments. And we need to collabo-
Cawston replies, only half-jokingly:
rate on industry, as well. And cross
“Join XPO!” before adding “Embrace
fertilising, if you like, industry practises
technology because it’s coming and it’s
from one to another, where it really
coming fast. It’s a fast-paced industry,
counts and makes a difference to supply
so be prepared to learn and adapt,
chain pace, supply chain quality and
the very best people are constantly
supply chain efficiency. Collaboration
adapting and evolving.
can be a real kicker”
“Finally, I’d say to both new comers w w w. s u p p l y c h a i n d i g i t a l . c o m
30+ SPEAKERS
INCLUDE
BENEDICTE CROSNIER Director Global Supply Chain Operations Alstom
ERNESTO SCHROEDER ROSAS Global Supply Chain Director Deoleo
IMAD MANZOOR Supply Chain Director Duracell UK & Ireland
KERSTIN GLINIORZ Vice President Supply Chain EMEAI Archer Daniels Midland Company
MARION MATTHEWMAN Head of Global Logistics Syngenta
DR OLIVER PHILIPP Director Supply Chain Strategy Panasonic Europe Ltd.
PHILIPPE LUSSERT Vice President Supply Chain, Danfoss RAC Danfoss
DR SANDRINE TORANDELL Supply Chain Director L’Oréal
VALERIO DAL MONTE Vice President Procurement & Supply Chain Alitalia
25
Manufacturing & Supply Chain Summits
DE
Supply Chain Management Strategies Network
O
@SCMS_Summit #SCMSSummit
%% 2255
FOR EXCLUSIVE CONTENT, CONNECT WITH US ON:
V E ITH C L SA W I TA
WWW.SCMS-SUMMIT.COM
G
DOWNLOAD BROCHURE NOW
DI
THE LATEST TECHNOLOGIES & STRATEGIES FOR VISIBILITY, FLEXIBILITY AND SPEED
INDUSTRY4.0
INDUSTRY 4.0 40
Taking advantage of the difference Companies stand to save billions of dollars if they are prepared to embrace the benefits of Industry 4.0 WRITTEN BY
WALLY STEGALL
TECHNICAL FELLOW AND DIRECTOR AT MOREY
SEPTEMBER 2018
41
w w w. s u p p l y c h a i n d i g i t a l . c o m
INDUSTRY4.0
T
he future of Industry 4.0 is shining bright. The revolutionary approach to digital integration is transforming manufacturing in more ways than one.
Not only are manufacturers leveraging new technol-
ogies to create and sustain smart factories, but their businesses are experiencing more flexibility, reliability, stable outputs and increased productivity. Companies across the industrial sector stand to grow annual revenues by as much as $493bn over the next five years as a result of Industry 4.0, according to a study from PwC. The research also shows that the digital innovations driving Industry 4.0 may save companies $421bn in costs annually up until 2020. The greater connectivity and efficiency promised 42
by Industry 4.0 is driving rapid growth. However, all that glitters isn’t always gold. While the rise in digitisation shows no signs of stopping, there’s also challenges in making Industry 4.0 a reality for your business.
CHANGE DOESN’T COME EASY While Industry 4.0 brings significant advancement and real business benefits to manufacturers, digitising supply chains is a huge undertaking. Moving from a traditional factory to a smart factory is a noble path — but one fraught with tough decisions. To overcome these challenges, establish a clear understanding of what you’re actually up against in adopting Industry 4.0. Benefit from the marriage of automation and data exchange by remaining realistic about the roadblocks you may encounter, including:
SEPTEMBER 2018
43
“Companies across the industrial sector stand to grow annual revenues by as much as $493bn over the next five years as a result of Industry 4.0” — Wally Stegall, Technical Fellow and Director at Morey
w w w. s u p p l y c h a i n d i g i t a l . c o m
INDUSTRY4.0
• Changing security needs:
concern. More data sharing between
More access to real-time data deliv-
systems and devices, as well as
ers greater insights and smarter deci-
a greater number of data access
sion making. However, the increased
points, is a huge advantage —
connectivity fostered by Industry 4.0
as long as data doesn’t fall into
also opens the door to cybersecurity
the wrong hands.
risks. The 2017 Global Risk Landscape survey from BDO revealed that nearly
• Telling the automation truth:
96% of manufacturers cite security
It’s common for your staff to have
breaches as one of the top challenges
some apprehension about robotics
facing their business. And seven out
and automation, especially if they
of 10 manufacturers see intellectual
believe a robot may steal their job. In
property theft as a serious operational
fact, three out of four Americans have
44
SEPTEMBER 2018
concerns that robots and computers will take over jobs done by humans, according to the Pew Research Center. But in reality, automation can actually relieve your employees of performing tedious, repetitive or even dangerous tasks. Ensuring employees understand the
“ While Industry 4.0 brings significant advancement and real business benefits to manufacturers, digitising supply chains is a huge undertaking”
positive impacts of advanced automation in the workplace is the first step toward quelling
— Wally Stegall, Technical Fellow and Director at Morey
fears about the automation Industry 4.0 introduces. Industry 4.0 allows you to quickly OEMs also face difficulties adopting Industry
and decisively address potential
4.0 due to a reliance on outdated or legacy
pain points in the supply chain.
technology, gaps in the technical skills of
Act in the form of sharing the
employees and data silos that routinely stifle
benefits of automation, develop-
communication. However, with the right ac-
ing extensive data security strat-
tion plan in place you can conquer such chal-
egies and leveraging artificial
lenges and learn to thrive in a digital-first
intelligence (AI). These are just a
manufacturing landscape.
few ways to implement Industry 4.0 in an effective, seamless way.
MAKE THE RIGHT DIGITAL MOVES Welcoming Industry 4.0 doesn’t happen
Industry 4.0 provides employees with new opportunities by
overnight. But with a strategic approach
automating many of the mundane
in place, you can take full advantage
tasks that can take up much of
of the benefits Industry 4.0 stands
their time. By shifting these re-
to bring. The greater transpar-
sponsibilities elsewhere, work-
ency and efficiency ushered in by
ers can focus on professional
w w w. s u p p l y c h a i n d i g i t a l . c o m
45
INDUSTRY4.0
BIO
46
About the Author Wally Stegall is the director of business development at Morey Corporation, where he’s led engineering, sales, technical management and business development efforts for the company. Wally has nearly 30 years of industry experience, having previously worked with Textrol, VES and AMETEK.
exceeds $3.5mn, a fact that OEMs can’t afford to ignore. Don’t make the mistake of relying solely on patches
development and diversifying their
and updates to address data vulner-
skillset with more complex assign-
abilities and cyber threats. Prioritise
ments. The result? More chances for
security throughout the design and
advancement for your employees, and
development process to ensure your
reduced labor costs for your business.
operations ecosystem — and all of
Advanced security is no longer an
the data shared across it — are kept
option — especially with increased con-
out of harm’s way. Opting for devices
nectivity at play. According to IBM, the
and sensors that are developed with
global average cost of a data breach
secure coding practices is one way to
SEPTEMBER 2018
“According to IBM, the global average cost of a data breach exceeds $3.5mn, a fact that OEMs can’t afford to ignore” — Wally Stegall, Technical Fellow and Director at Morey
47
avoid security mishaps in the future. Looking for another way to strength-
Industry 4.0 is well on its way to reshaping the future of manufactur-
en your security? Use the power of AI
ing. But with the increased efficiency
to quickly and automatically identify
and transparency coming to the sup-
and solve software vulnerabilities. AI
ply chain, you must also be ready to
can take on the responsibility of moni-
tackle the resulting challenges.
toring networks and addressing new
By taking steps to showcase the
threats as they arise. Take care of se-
positive impacts of automation, lev-
curity deficiencies before an attack oc-
erage advanced security measures
curs to not only save time and money,
and enable AI to do what it does best,
but also set the tone for more secure
OEMs can pave the way for improved
and streamlined product development.
digitisation.
w w w. s u p p l y c h a i n d i g i t a l . c o m
REGISTER TODAY!
1.888.482.6012 • logichemus@wbresearch.com | ww
The
November 6 - 7, 2018
“Exce curre with
Princeton, NJ
Dave
ww.logichemus.com QUALIFIED CHEMICAL MANUFACTURERS
GET 20% OFF WITH DISCOUNT CODE: LC18SCD
Conference for Chemical Supply Chain Leaders
ellent forum for sharing excellent practices, staying rent on supply chain developments and interacting h professionals with common interests.�
e Gleason, Sr. Director, American Chemistry Council
T O P 10
LARGEST GLOBAL FREIGHT FORWARDERS 50
This month’s top 10 runs the rule over the leading global freight forwarders. Based on research conducted by Armstrong & Associates, the list is ranked by gross revenue/turnover and freight forwarding volumes… WRITTEN BY
SEPTEMBER 2018
JAMES HENDERSON
51
w w w. s u p p l y c h a i n d i g i t a l . c o m
T O P 10
UPS Supply Chain Solutions
Revenue: $7.98BN Ocean TEUs:600,000 Metric air tonnes: 935,300 UPS Supply Chain Solutions, Inc. provides transportation and freight, contract logistics and distribution, customs brokerage, and consulting
Bolloré Logistics
Revenue: $5BN Ocean TEUs: 864,000 Metric air tonnes: 640,700 52
services for customers worldwide. The company offers air, ocean, rail/ intermodal, and road transportation and freight services; specialised ser-
Bolloré Logistics is a global leader in
vices, such as network management,
international transport and logistics.
special handling, and trade show and
Constantly adapting to its customers’
convention support; supplier man-
changing needs, the company has
agement services.
enriched its expertise to become a tier-
www.ups-scs.com
one supply chain partner and one of the top 10 transport and logistics companies in the world with the largest integrated logistics network in Africa. Bolloré Logistics delivers custom-fit solutions with a high added value that draw on an in-depth experience and understanding of different industries, as well as the constant quest for improvement and optimisation that is central to the company’s own culture and values.
www.bollore-logistics.com SEPTEMBER 2018
Panalpina
Revenue: $5.6BN Ocean TEUs:1,520,500 Metric air tonnes: 995,900 The Panalpina Group is a global leader in providing end-to-end supply chain solutions. With the integration of our core products, Panalpina focuses on creating each solution tailored to its customers’ logistics needs. On six continents, in 75 countries with over 500 locations, it is truly a worldwide business, regional headquarters
Nippon Express
Revenue: $16.72BN Ocean TEUs:600,000 Metric air tonnes: 835,755
located in London, Dubai, Shanghai and Singapore.
www.panalpina.com
Nippon Express operations encompass a five-point framework across Japan, the Americas and Europe, stretching into the rapidly developing markets of East Asia, South Asia and Oceania. The business sees its role as a logistics consultant, providing onestop business solutions that connect people and companies beyond national and regional boundaries, through diverse logistics modes, integrating land, air, and marine transport.
www.nipponexpress.com w w w. s u p p l y c h a i n d i g i t a l . c o m
53
W R W EG W IS .C T LO ER U N D O EX W PO FO A R SI Y A OU .C R O M FR /B E IZ E T CL IC IK KE -M T ED : IA
BE PART OF ASIA’S LARGEST
Supercharge Your Cloud Harness the limitless power of innovation for the future of your business at Cloud Expo Asia 2018. Come and explore the ways in which emerging technologies are transforming our world. Discover the latest thinking in Cloud, DevOps, SDN & NFV Technologies, IoT, Big Data, Blockchain, Security, AI and Edge Computing. And do it all cost-effectively and comprehensively over two days, in one location, with one ticket.
Register for your FREE ticket at www.cloudexpoasia.com/BizClik-Media
CO-LOCATED WITH
ECOMMERCE EXPO 10 – 11 October 2018, Marina Bay Sands, Singapore
www.ecommerceexpoasia.com
EVERY EMERGING TECHNOLOGY. ONE DIGITAL TRANSFORMATION JOURNEY.
Platinum Sponsors
Gold Sponsors
ORGANISED BY
& BEST-ATTENDED TECHNOLOGY EVENT Hear from over 500 world-class experts, including tops CIOs & CTOs, acclaimed global tech leaders and practitioners from blue chip companies, service providers and leading enterprises including DiDi, JD Central, PingAn Technology, Credit Suisse, Go-Jek, United Overseas Bank, FitBit, Visa, LEGO Singapore, Moneysq.com, Prudential and many more. Be inspired with hundreds of hours of sessions covering the latest thinking in Cloud, DevOps, SDN & NFV technologies, IoT, Big Data, Blockchain, Security, AI and Edge Computing. Source the latest products and solutions from more than 300 of the world’s leading suppliers and innovators including Citrix, Singtel, Huawei, Fujitsu, NEC, Silver Peak, Western Digital, Seagate, Rackspace, Chef, Docker and many more. Network with thousands of your peers, with a projected attendance of over 15,000, there has never been a better opportunity to meet and network with industry visionaries, business leaders and professionals who have faced – and overcome – the same challenges as you. Benefit from our unique multiple show features including DevOps Live – laser-focused practical workshops on the latest techniques in DevOps, Containers and MicroServices. Fintech & Blockchain streams – presenting the start-ups and technologies disrupting and challenging traditional business models, or SD-WAN streams – where you can learn first-hand how SDN & NFV are better suited to meet the dynamic compute and storage needs.
WHEN?
WHERE?
10-11 OCTOBER 2018
Marina Bay Sands Expo and Convention Centre Level Basement 2, Hall E 1 Bayfront Ave, Singapore 018971
9.15am to 5.00pm on Day 1 9.30am to 5.00pm on Day 2
INVITE YOUR COLLEAGUES & WIN!
THINK YOU SHOULD BE A VIP?
OUR VIP BENEFITS INCLUDE:
Fast track access to Cloud Expo Asia
Complimentary premium refreshments
Access to exclusive VIP lounge, where you can network with thousands of your peers from across the technology ecosystem Reserved front row seating in the conference theatres and seminars Exclusive business matching with exhibitors prior to the show Numbers are limited. Contact Alger Goh, VIP Programme Manager today on +65 6817 5817 or email alger.g@closerstillmedia.com to find out more.
Photos courtesy of Banyan Tree Hotels & Resorts Pte. Ltd
Stand a chance to win a Banyan Tree Spa voucher & a Google Home device (worth S$400) when you invite your colleagues to attend Cloud Expo Asia! *Terms & Conditions apply.
FOR MORE DETAILS, VISIT WWW.CLOUDEXPOASIA.COM/PRIZEDRAW
T O P 10
DSV
Revenue: $11.37BN Ocean TEUs:1,389,611 Metric air tonnes: 635,655 With offices in more than 80 countries and an international network of partners and agents, DSV is a truly global player that offers services worldwide. DSV is listed on NASDAQ OMX
Expeditors 56
Copenhagen, and included in the C20 index as one of the 20 most actively
Revenue: $6.9BN Ocean TEUs:1,070,424 Metric air tonnes: 985,549
traded shares on the Copenhagen
Expeditors is a global logistics com-
ent company and the organisation is
pany headquartered in Seattle,
divided into three divisions: DSV Air &
Washington. As a Fortune 500 com-
Sea, DSV Road and DSV Solutions.
pany, it employs over 16,500 trained
DSV in the UK was recently awarded a
professionals in a worldwide network
two-year contract with GEO Specialty
of over 320 locations across six conti-
Chemicals to provide domestic and
nents. Expeditors is focused on the
multimarket export fulfilment services
increasingly sophisticated needs of
for chemicals manufactured at the
international trade through custom-
company’s state of the art production
ised solutions and seamless,
facility in Hythe, Southampton.
integrated information systems. Its
www.uk.dsv.com
services include air and ocean freight consolidation and forwarding, vendor consolidation, customs clearance, cargo insurance, distribution and other value-added logistics services.
www.expeditors.com SEPTEMBER 2018
stock exchange. DSV A/S is the par-
DB Schenker
Revenue: $18.56BN Ocean TEUs:2,169,000 Metric air tonnes: 1,300,000 DB Schenker is one of the world’s leading global logistics provider, supporting industry and trade in the global
Sinotrans
exchange of goods through land transport, worldwide air and ocean
Revenue: $9.53BN Ocean TEUs:3,360,300 Metric air tonnes: 533,300
freight, contract logistics and supply
Sinotrans was established with the
present in more than 2,000 locations
merging of China National Foreign
around the world and employs some
Trade Transportation Corporation and
72,000 people. It specialises in auto-
China Changjiang National Shipping
motive, technology, consumer goods,
Corporation in March 2009 with its
trade fair logistics, special transports,
headquarters located in Beijing. In
and special events logistics.
2015, Sinotrans&CSC merged into
www.dbschenker.com
chain management. The company is
China Merchants Group. It is the biggest comprehensive logistics service supplier in China with world-wide businesses in integrated logistics, shipping and shipbuilding industry. Its operations cover all provinces, autonomous regions and municipalities of China, as well as more than 50 overseas markets in Hong Kong, Korea, Japan, Canada, the United States, and Germany.
www.sinotrans-csc.com w w w. s u p p l y c h a i n d i g i t a l . c o m
57
22nd - 23rd October, 2018 Rosh Rayhaan by Rotana | Riyadh | K About the conference: As the Gulf region aims for a larger role in the global logistics market, which is estimated to be worth $15.5 trillion by 2024. Saudi Arabia is upping its own logistics game and becoming a tough competitor to Dubai. According to reports, Saudi and UAE are considered the most attractive target market for logistics investment. In April 2016, Saudi Arabia announced its Vision 2030 and under this plan, the country will reduce its dependence on oil by 2020. Pending this Saudi Arabia will soon be a "global player" on the world’s investment stage. We, at Bricsa Consulting, are bringing to you the 3rd Annual Saudi Freight & Logistics conference in Riyadh, Saudi Arabia which will be hosted on 22nd & 23rd October, 2018 and shall address the current opportunities as well as challenges in the freight-logistics-transportation sector in the Kingdom.
For further information mail to
Kingdom of Saudi Arabia Key Highlights • Development initiatives in the region • Establishing the Kingdom as key logistics hub • Benchmark and hear from the best in the business • Strategies related to ports, customs, freight and transportation sector • Gaining valuable insights on freight transportation projects in the Kingdom ASSOCIATE PARTNERS
Aamal Group ARAB ECONOMIC & BUSINESS GROUP
Endorsers
Media Partners
o mital@bricsaconsulting.com
RAILWAY PRO
T O P 10
60
Kuehne + Nagel
Revenue: $22.57BN Ocean TEUs:4,355,000 Metric air tonnes: 1,570,000 With approximately 79,000 employees at some 1,300 locations in over 100 countries, the Kuehne + Nagel Group is one of the world’s leading logistics companies. Its strong market position lies in the seafreight, airfreight, contract logistics and overland businesses, with a clear focus on high value-added segments such as IT-based integrated logistics solutions. In May, Kuehne + Nagel it launched a global warehouse management system KN SwiftLOG, which it says is a scalable platform with global reach, powered by JDA Warehouse Management.
https://home.kuehne-nagel.com SEPTEMBER 2018
01
61
DHL Supply Chain & Global Forwarding
Revenue: $27.6BN Ocean TEUs:3,259,000 Metric air tonnes: 2,248,000 Leading the way in the list is industry giant, DHL Supply Chain & Global Forwarding, boasting revenues of $27.6bn. A division of Deutsche Post DHL the company provides air and ocean freight forwarding services. It also plans and undertakes major logistics projects under the brand name DHL Industrial Projects. Together with DHL Freight, it forms Deutsche Post’s Freight/Forwarding department. Recently, it was awarded an extension of its contract with the BMW Group and will continue to manage the vehicle manufacturer’s overland transport in 17 countries.
www.logistics.dhl w w w. s u p p l y c h a i n d i g i t a l . c o m
ConferenCe
EVENTS & A S S O C I AT I O N S
The biggest industry events and conferences WRITTEN BY JAMES HENDERSON from around the world
11–12 SEPTEMBER
64
12–14 SEPTEMBER
NASCES 18
ITSCL
[ THE WESTIN CHICAGO NORTH SHORE, USA ]
[ JAKARTA INTERNATIONAL EXPO ]
The North American Supply Chain
Indonesia Transport Supply Chain
Executive Summit (NASCES18) series
and Logistics (ITSCL) is an interna-
has grown to become the most senior
tional event for players in the logistics,
and diverse gathering of supply chain
transport and supply chain sectors. The
executives anywhere in the world.
event aims to help businesses develop,
Based on an ever-growing network of
increase visibility and strengthen their
referrals and recommendations, the
presence in Indonesia. ITSCL aims
North American Supply Chain Execu-
to create a worldwide community for
tive Summit is designed and built by
transportation and logistics, building
Executive Platforms to bring together
up business networks and promoting
the right people from across a num-
knowledge sharing. The event is set
ber of different industries to network,
to include over 350 major logistics
benchmark, learn, and share with one
companies, solutions providers, trans-
another. The content of the agenda
port providers across land, sea and air,
revolves around universal challenges
and facility vendors. Industries set to
and opportunities relevant to the entire
appear include automotive, chemicals,
audience as identified by an advisory
construction, energy, food, pharmaceu-
board drawn from regular attendees.
tical, retail, oil, mining and many more.
Click to view website
Click to view website
SEPTEMBER 2018
30 SEPT– 03 OCT
CSCMP EDGE 2018 [ NASHVILLE, USA ] Discover over 100 forward-thinking sessions covering real world strategies implemented to maximise and transform supply chains and learn
23–25 SEPTEMBER
from some of the brightest academics
Gartner Supply Chain Executive Conference
and practitioners in supply chain today.
[ LONDON ]
ment Professionals (CSCMP) hosts the
Gartner Supply Chain Executive Con-
must-attend supply chain event of the
ference is the world’s most important
year — CSCMP’s Annual Global Con-
gathering of supply chain leaders, dis-
ference, EDGE. From leading-edge
cussing how disruptions large and small
content to cutting-edge supply chain
confront today’s supply chains on a daily
solutions, EDGE reflects the unparal-
basis and how ‘organisational survival
leled resources CSCMP offers today
depends on the ability to anticipate,
and symbolises our unwavering com-
adapt, and transform supply chains
mitment to supply chain in the future.’
to deliver reliability and performance’.
Click to view website
‘The Council of Supply Chain Manage-
Click to view website
w w w. s u p p l y c h a i n d i g i t a l . c o m
65
The ONLY Peer-led Marketing Procurement Event In North Americ
Save 25% off your ticke
Visit www.ProcureConIndire
November 12 - 14 | San Diego, CA
t
ca!
et with code PMK18SCD
ect.com for more information
EVENTS & A S S O C I AT I O N S
The biggest industry events and conferences from around the world
02–04 OCTOBER
68
10 OCTOBER
10th Cool Logistics Global Conference
SAP Ariba Procurement Summit Day
[ ANTWERP, BELGIUM ]
[ LONDON ]
The 10th anniversary Cool Logistics
Disruptive trends in technology are
Global Conference & Exhibition pro-
changing the function as we know it
vides a fantastic opportunity to
today. Procurement is fast evolving
connect perishable cargo owners
into a more strategic and value-gen-
with cold chain logistics and trans-
erating function.Through dynamic
port professionals from around the
speakers, engaging storytelling,
world to assess key market trends
insightful knowledge sharing, and
and operational best practice for the
plenty of networking activities, you will
international movement of chilled and
learn about Procurement Evolution.
frozen cargoes by air, land and sea.
You will also have the opportunity to
Click to view website
join our real-time breakout sessions led by our experts..
Click to view website
SEPTEMBER 2018
15–17 OCTOBER
MHI Annual Conference [ GRANDE LAKES, FLORIDA, USA ] MHI Annual Conference will focus on key themes identified by the US Roadmap for Material Handling & Logistics and the MHI Annual Industry Report including: • Industry 4.0 • Building the Future Supply Chain
69
workforce • The Current and Future State of Distribution Center Technology
31 OCTOBER
• Marketing in the Supply Chain Industry
CIPS SM Awards
You’ll learn how to incorporate these
[ BARBICAN, LONDON ]
trends and innovations and seize new
Chris Bell FCIPS, Commercial Director
opportunities that produce tangible
– City of London Corporation, one of
results. You’ll also have the opportunity
this year’s judges, and winner of the
to participate in product group and our
‘Procurement and Supply Management
solutions community meetings that
professional of the year 2016’, will chair
help shape the future of our industry.
the day while presenters from the vari-
The conference will feature four key-
ous winning organisations will deliver
notes and six conference tracks.
case studies.
Click to view website
Click to view webiste
w w w. s u p p l y c h a i n d i g i t a l . c o m
Emergin chain tra
16-18 Oct Amora H www.digitalsupplychainsummit.com.au BENEFITS OF ATTENDING www.digitalsupplychainsummit.com.au
Be part of Australia’s leading event focused on Industry 4.0 & the evolution of the digital supply chain
Hear real world industry case studies from leaders in FMCG, Retail, Food and Beverage, Manufacturing, Transport, Logistics, Shipping, Government, Healthcare, Energy & Utilities, Warehousing & Distribution
Participate in deep-dive roundtables moderated by experts covering blockchain, IoT, robotics, advanced analytics, drones and security
Join a community of CxOs, supply chain and data leaders and innovators at the forefront of the digital supply chain
Meet with industry leading solution providers spearheading innovation in digital supply chain research and product development
KEY THEMES BEING COVERED INCLUDE:
Managing supply chain innovation and change in disruptive times
Leveraging technology to move past the linear supply chain
Making supply chains responsive, adaptive and customer centric
Beyond POC: Integrating emerging technologies within your supply chain
Using blockchain to drive supply chain transparency, trust and innovation
Internet of Things inventory & warehouse management
Using analytics-driven cognitive capabilities to increase cost efficiency and performance
Achieving end-to-end visibility and eliminating supply chain blind spots
Assessing the impact of digital platforms on procurement
High performance fulfilment: The only way to meet customer demand
How AR and VR are revolutionising the supply chain
Exhibitor:
Endorsing bodies:
REGISTER TODAY!
+61 (0) 2 9977 0565
info@que
ng technologies and digital innovation for supply ansformation
tober 2018 Hotel Riverwalk | Melbourne | Australia
KEY SPEAKERS: John Baird Chief Executive Officer UCOT (Ultimo Digital Technologies)
Keya Chaturvedi Trend Research Manager DHL Asia Pacific Innovation Center
Cameron Hall Head of Strategy and Innovation Port of Brisbane
Jeremy Goodman Director Supply Chain, Carnival
Ashok Sudhakaran Head of Procurement The Warehouse Group (NZ)
Simon Rowe Supply Chain Transformation Leader Kimberly Clark Australia
Marcel Sieira Head of Customer Engagement GS1 Australia
Rosita Van Vuuren Merchandise Operations Manager Best and Less
Pieter Vandevelde Chief Operating Officer TBSx3
Kevin Worrell Project Director Dulux
Business Chief and Digital Supply Chain subscribers qualify for 10% off the registration fee, quote VIP code ‘BC_10’
estevents.com.au
Media Partners:
Organised by:
www.digitalsupplychainsummit.com.au
72
SEPTEMBER 2018
EUROPE
Delivering operational efficiency across the supply chain WRIT TEN BY
CATHERINE S TURM AN PRODUCED BY
RICHARD DURR ANT
w w w. s u p p l y c h a i n d i g i t a l . c o m
73
FLOGAS
Flogas has fully digitised its supply chain to maintain its position within the LPG market
W
ith the rise of renewable energy sources, traditional oil and gas companies are facing rampant competition.
The increased need to guarantee pricing and deliver operational efficiency continues to grow apace, leading the industry to turn towards new technologies to maintain supply and retain existing customer bases. 74
However, while the sector has focused predominantly on pricing, longstanding LPG supplier Flogas has maintained its reserves through its ongoing supply chain transformation. “From a domestic and consumer point of view, there’s some technology emerging that will make a key difference in the marketplace,” explains Head of Logistics and Supply Chain, Tim Eaton. “Price is starting to become a lot more visible, so people can really start playing suppliers off against each other, and people can switch easily. “The customer experience is key. We sell a commodity, so the way we differentiate ourselves without it being on a price basis is through the service we give to our customers. If we can maintain consistency of supply to our customers, that’s really what they want. On the contact side, SEPTEMBER 2018
EUROPE
75
w w w. s u p p l y c h a i n d i g i t a l . c o m
Flogas’ partner in delivery optimization, data analytics and inventory management
Remote tank monitoring and smart gas metering
Proven solution in increasing customer satisfaction & retency
Targeting even better ROI thanks to the deployment of IOT solution based on Sigfox technology.
Data Presentation
AIUT Sp. z o.o Poland - 44-109 Gliwice - ul. Wyczółkowskiego 113 Tel: (+48 32) 77 54 000 - Fax: (+48 32) 77 54 001 info@aiut.com - www.aiut.com
EUROPE
“ FLOGAS WAS FOUNDED IN 1984 AND WE’VE SINCE EVOLVED TO BECOME ONE OF EUROPE’S LEADING LPG SUPPLIERS, WITH A PRESENCE IN BRITAIN, REPUBLIC OF IRELAND, NORTHERN IRELAND, SWEDEN, NORWAY, BELGIUM AND THE NETHERLANDS. WE’RE ALSO PART OF FTSE 100-LISTED DCC ENERGY – A LARGE IRISH COMPANY WITH AN ANNUAL TURNOVER OF £11 BILLION. THAT SAID, WE’RE STILL A SMALL COMPANY AT HEART, AND LOOKING AFTER OUR CUSTOMERS’ INDIVIDUAL NEEDS REMAINS OUR TOP PRIORITY” — Tim Eaton, Head of Logistics & Supply Chain
w w w. s u p p l y c h a i n d i g i t a l . c o m
77
FLOGAS
“ WE’RE REALLY GETTING TO A POINT OF SYSTEM MANAGING EVERYTHING END TO END” — Tim Eaton, Head of Logistics & Supply Chain
EUROPE
FACTS
• Halfway through its transformation journey, Flogas has sought to break down silos and promote collaboration across its supply chain • Flogas has centralised its orders, allowing the business to create and schedule more effectively
the focus of the business is on leading by service, and then differentiating this business within the number one supply of LPG from a customer service point of view.”
DIGITAL FOCUS Seeking to break down silos and promote collaboration across its supply chain, Flogas is now halfway through its journey. “We are trying to digitalise as much as we can - how we capture or create orders and how we move those through to being fulfilled and delivered,” says Eaton. “We have a 50/50 split between people that are in control of their orders -where they
• By investing in a computer-based scheduling system, Flogas is now able to implement seven day rolling scheduling periods, guaranteeing further visibility • Though the use of demand sensing, Flogas will continue to fulfil requests within its forecasting • The company has invested in over 10 new drivers and enabled them to get to the required standard in weeks rather than months
physically order with us when they want us to w w w. s u p p l y c h a i n d i g i t a l . c o m
79
FLOGAS
deliver -and 50% where we offer them a service where we will keep their tanks topped up. “For our Top Up business, we used to rely on fixed delivery cycles or an algorithm that predicted when they were going to need gas, but we have now invested millions of pounds into implementing tank telematic systems, where we get a regular reading regarding our customers’ consumption and tank levels.” Obtaining vital information in 80
real-time, Flogas has therefore moved to centralise its orders, where it can now draw volume at quieter times and outside of peak periods. Additionally, by investing in a computer-based scheduling system, the business has adopted seven-day rolling scheduling periods and can identify potential gaps. “Our new on-truck computing system, supplied by Touchstar, really ties all this together,” says Eaton. SEPTEMBER 2018
Click to watch: ‘Flogas Britain: A Driver’s Story’
EUROPE
81
“PRICE IS STARTING TO BECOME A LOT MORE VISIBLE, SO PEOPLE CAN REALLY START PLAYING SUPPLIERS OFF AGAINST EACH OTHER, AND PEOPLE CAN SWITCH EASILY” — Tim Eaton, Head of Logistics & Supply Chain w w w. s u p p l y c h a i n d i g i t a l . c o m
FLOGAS
“Scheduled routes go out to the driver, and when we complete a job an invoice then goes out in real-time. If we don’t
set our resource levels for the next three or four months,” says Eaton. “We want to take our resource
deliver on that day it goes back to the
management digital as well so that we
order pot for rescheduling immediately.”
always know what drivers and vehicles we’ve got to schedule.”
REACTIVE TO PROACTIVE Through the use of demand sensing,
system, Flogas will also seek to provide
Flogas will continue to fulfil requests
increased customer contact regarding
across its forecasting operations,
the time its services will arrive.
as well as taking a greater look at
82
Through its on-truck computing
“We’re really getting to a point
customer consumption data to
of system managing everything
extrapolate three months of rolling
end-to-end,” he adds.
forecast data. “This will enable us to really try and
SEPTEMBER 2018
However, throughout its transformation, it has been imperative for
EUROPE
Flogas to build mutually beneficial
speed of customer context, where
relationships with its suppliers and
we have or haven’t delivered, is key
bring on board those who are keen
to our service offering.
to bring new ideas to the table. “TouchStar Technologies, for example, have been fantastic in how they’ve tailored their Gas-Star solution
Additionally, longstanding company AIUT has been essential to the company’s business growth. “AIUT has supported our delivery
to Flogas. The pace at which they can
optimisation, as well as inventory
adapt the system to meet our need to
management, in order to increase
continuously improve our service has
customer satisfaction,” adds Eaton.
been instrumental in adding so much
“AIUT are not just a provider of
value into our service proposition” “The company has been essential in
a telematics system that we buy, they’re a company that is integrated in how we
getting delivery data back in so that
do business. They suggested and built
that speed of rescheduling, that
our new forecasting system.
w w w. s u p p l y c h a i n d i g i t a l . c o m
83
FLOGAS
“We need system providers and suppliers that are going to invest in their product to be bespoke to us, but to support that through continuous innovation around learning our business and what else they can do which could be of benefit.”
INVESTING IN PEOPLE In alignment with its transformation, Flogas has had to bolster its workforce and invest in upskilling its workers against complexities. “When we’re trying to build a digital system that takes the order through to delivery, we have to work out how to deal with the 84
variability of that resource. We’re working with our scheduling department as well as our shipping system to build some of this,” he says.
SEPTEMBER 2018
EUROPE
Consequently, the business has invested in new drivers and regional driver trainers that have enabled them to get to the required standard in weeks rather than months. “Our telematics systems will look at how well they’re driving from a safety point of view, and we are looking into getting better data out of the on-truck computing system so that we can look at things from a fully rounded point of view.� As the supply chain continues to move towards further digitisation alongside a growing focus on margins, price and cost, the culture at Flogas will continue to hone in on the needs of its customers. Through boosting operational efficiency and maintaining supply while optimising ongoing processes based on local and expert knowledge, it will continue to remain a strong player in the market.
w w w. s u p p l y c h a i n d i g i t a l . c o m
85
Enterprise
optimisation with WRIT TEN BY
ANDRE W WOODS PRODUCED BY
GLEN WHITE
KAR
We talk to Ronald Wright, Senior Director of Procurement and Enterprise Optimisation at KAR Auction Services who talks us through the ever-evolving landscape of auto auctions…
K AR AUCTION SERVICES, INC
W
orking across more than 300
Automotive Finance Corporation (AFC),
locations in North America,
among others – are at the heart of
KAR Auction Services
this vibrant marketplace, providing
comprises a family of companies
wholesale and salvage auctions as
providing innovative, technology-driv-
well as detailing, dent repair, logis-
en, end-to-end vehicle remarketing
tics, transportation and more. With
solutions. Auto remarketing is a big
operations spread across North Ameri-
business in North America, with 290
ca as well as the UK, implementing
million used vehicles currently in opera-
a comprehensive, enterprise-wide
tion across the continent. KAR and its
procurement strategy is a strategic
subsidiaries – which include ADESA,
imperative.
Insurance Auto Auctions (IAA) and
88
SEPTEMBER 2018
KAR’s unique platform supports the
USA
sale of more than 5.5mn units valued
because that’s too narrow of a focus
at over $40bn through its auctions.
of what we do. If there needs to be
Ronald Wright is Senior Director of
optimisation of a process, we’re there.
Enterprise Optimisation at KAR and it
If there needs to be optimisation of
is his job to ensure support and supply
a particular project, we’re there. If there
across the company. Just don’t use
needs to be optimisation of how we
the dreaded ‘p word’…
bring value, again, we’re there. If there
“We don’t even use the word
needs to be optimisation in cost, we’re
‘procurement’ here,” he says, speaking
there. That’s why we’re enterprise
from his Indiana office. “We call our
optimisation. We’re not sourcing, we’re
operation ‘Enterprise Optimisation’.
not a supply chain, we’re not procure-
We don’t talk about procurement
ment. Moreover, this umbrella of
89
w w w. s u p p l y c h a i n d i g i t a l . c o m
K AR AUCTION SERVICES, INC
enterprise optimisation allows us to
Some of the biggest challenges
come to you with a variety of skills and
facing Wright come from the constant-
solutions in the space.”
ly expanding and retracting need for
A former procurement specialist
90
labour. “We run physical auctions all
from the US defence industry, Wright
52 weeks of the year. As an example,
outlines the operational pillars that
say I have an auction that regularly
have helped his team optimise KAR’s
runs 1,500 cars in a roughly four-hour
growth. “Our team today operates on
period. Now, they need a lot of labour
four pillars: teamwork, adaptability,
to be able to get those cars across the
innovation and trustworthiness. The
auction block. We have to check each
questions we always ask are: what
vehicle in when it arrives at our facility,
are our customer’s needs? What are
we have to upload its information into
their requirements and how do we
our system, we have to line the vehicles
bring those requirements efficiently
up in the order they’re scheduled to be
and effectively to our partners in the
auctioned, and we have to drive them
marketplace, so that we can achieve
across the auction block. We also
the overall goal?”
handle all the transactions and all of
This notion of Enterprise Optimisa-
this is happening at a facility within
tion sees a shift from the traditional
a four-hour period, which requires
sense of procurement as a cost-saving
anywhere from between 100 to 120
measure to a broader, more holistic
temps. Outside of that four-hour
approach. “Our CFO is a unique senior
window, during the rest of the week we
manager, because his first goal is to
have employees handling mechanical
bring value to the organisation. His first
work, detailing, body shop work and
goal isn’t, ‘Hey, how much money can
more – and we have temp employees
you save?’ He does want us to save
helping with other things going on
money, but he’s more concerned about
around the lot.”
the intrinsic value that we can bring to
To help with labour demands KAR
the organisation and our customers. That
has fostered partnerships with some
doesn’t always mean the lowest cost.”
key suppliers. “One of our vendors
SEPTEMBER 2018
USA
BIO
“ WE’RE SEEING THE CHANGING DYNAMICS OF THAT ONLINE BUYER WHO DOESN’T PHYSICALLY COME TO OUR AUCTIONS” — Ronald Wright, Senior Director of Enterprise Optimisation
helps us replace windshields on vehicles. Our business is about velocity, moving cars quickly through our ecosystem and this vendor has been working with us on a number of system enhancements to make us better. Vehicles now have cameras everywhere and there are 10 to 12 different types of glass. Our vendor partner helps us to
Supply Chain Leader Delivering multimillion-dollar savings, achieving on-time and on-budget project delivery for sustainable competitive advantage. Innovative, analytical, and customer-focused Supply Chain Executive with MBA and 15+ years of successful leadership of large-scale, mission-critical projects that achieve revenue, profit, and customer expectations. • E xpertise all facets of supply chain management (plant operations, production, quality control, raw materials, and finished goods warehousing, distribution, transportation, and logistics). • Keen ability to analyze global commodity cost drivers, “should cost” vs. negotiated and standard costing, and total cost of ownership (TCO). Outstanding results in supplier sourcing, relationship management, and performance management. • Recognized as a results-focused leader who sets ambitious goals, fosters collaboration, and motivates employees to peak performance. Highly effective in leading crossfunctional project teams and task forces. Specialties: Certified Purchasing Manager, Project Management, MS Office, Mergers and Acquisitions, AS 400, JD Edwards, SAP and other ERP solutions, Supply Chain analysis, product development with supply chain focus and Raytheon Six Sigma Specialist.
91
YOUR SKILL. OUR PARTS.
Parts that exceed expectations, so you can too. Our commitment to quality parts is a promise we take seriously. With North America’s broadest import and domestic parts availability, we have the parts you need that meet or exceed OE specifications. Learn more at www.AdvancePro.com
Painted Rotors
@AdvanceAutoPro @AdvanceAutoPro @Advance-Professional
USA
Click to watch: KAR Makes $250,000 Contribution to Central Indiana City Life Wheels’ 93 mistake-proof the process of replac-
place. We want to be nimble and goal
ing windshields in the digital space,
motivated. It is important that we have
thus increasing the pace at which we
good communication with our supplier
do business.”
partners and a strong understanding
KAR also runs mechanical shops at
of what is expected. We can’t work
many of its physical auctions that do oil
with a supplier that doesn’t have at
changes, tyre replacements and other
least a national footprint or a digitised
modifications as requested by sellers
information system. That system should
and buyers, an area where Wright
track the progress of our working
sees possible partnerships. “We’re
relationship so we can track any
working to build stronger, more strategic
deficiencies and find opportunities
partnerships with key suppliers, but we
for improvement.”
can only do that once we’ve estab-
“For me, I can’t be involved with
lished a rapport with them and have
a supplier that doesn’t have the ability
a successful working relationship in
to give us what I call consumable, w w w. s u p p l y c h a i n d i g i t a l . c o m
SAFELITE MAKES GETTING YOUR GLASS FIXED EASY With more than 70 years of service, Safelite knows auto glass. Safelite was founded at a single location in Wichita, Kansas in 1947 and has grown to become the largest auto glass specialist company in the United States with more than 720 locations nationwide. From front and rear windshields to side glass, we’re proud to serve 6 million customers every year. Whatever your auto glass needs may be, there’s a good chance we can fix it through repair or replacement.
CONTACT US
|
Toll Free: 800-800-2727
|
FOLLOW US
Web: www.safelite.com
USA
visualised data that we can do some-
FACT
thing with. I need a supplier to be able
ADESA is a wholesale, usedvehicle auction operation with 75 locations and a complete online service offering for auto dealers, manufacturers, banks, finance, fleet, lease and rental companies.
to tell us that we have a pretty large battery spend, so we are able to drill down to the details of our battery spend to types of batteries we’re ordering, where we are buying them, and which areas of the company are buying the largest amount. You need that clarity in order to be able to find
The first area is how you interact and
value and efficiencies.”
interface with your customer. We’ve been
“One of the unique things about our
trying to move most of our suppliers to
space today is how our industry is
some type of digital interface where we
changing overall. We’re aligning our
can order product. I would almost liken
business and what we do with our
it to what we call the Amazon effect.
suppliers while also meeting the
Nowadays people are used to going
internal needs of our customer. If
online and being able to search and
you’ve ever been to an auction house,
order the things they like and need.”
you’ll know that usually a bunch of
“The second part of that is the
people watch a car come across the
increased level of expectation from the
block before bidding on it. Now, we
customer. Two-day delivery is stand-
simulcast all of our auctions across
ard. ‘We’ll get that to you in a week.’
North America, so people are able to
‘Huh? A week? Are you in the Stone
bid online. We’re seeing the changing
Age? I need to go somewhere else’.”
dynamics of that online buyer who doesn’t physically come to our auctions. We’re working with businesses to look at different ways to deploy our services to our customer base.” How has technology influenced that, specifically? “I would say in two areas. w w w. s u p p l y c h a i n d i g i t a l . c o m
95
How Kansai Airports is transforming passenger experiences in Japan
96
WRIT TEN BY
CATHERINE S TURM AN PRODUCED BY
MIK E SADR
SEPTEMBER 2018
A S I A — PA C I F I C
97
w w w. s u p p l y c h a i n d i g i t a l . c o m
KANSAI / VINCI AIRPORTS
Kansai Airports is undergoing a significant transformation. Pascal Pipon,General Manager at Kansai Airports, tells us more…
J
apan is continuing to reap the rewards of a global tourism boom, where people from all over the world are keen to
explore its rich history and breathtaking landscapes. From January to June during this year alone, the estimated number of international travellers exceeded 11mn, with
98
an increase of 20% in overseas visits compared to previous years. Whilst many travelers would have normally utilised Kansai International Airport, the country’s Osaka Itami Airport and Kobe Airport also significantly serve those situated in the nearby cities of Osaka, Kobe and Kyoto. Altogether, the three airports provide services to over 47.6mn passengers annually. To ensure the airports remain fully equipped to service such increased traffic flow, shareholders at VINCI Airports and financial services group ORIX Corporation are directing significant investment towards the digital transformation of the airports, driving maximum value for tourists and residents, whilst unlocking its growing potential. SEPTEMBER 2018
A S I A — PA C I F I C
FACTS
• From January to June during this year alone, the estimated number of international travelers exceeded 11mn, with an increase of 20% in overseas visits compared to previous years • Kansai International Airport, Osaka Itami Airport and Kobe Airport provide services to over 47.6mn passengers annually • VINCI Airports serve nearly 250 airlines worldwide • VINCI Airports catered to 156.6mn passengers in 2017, amassing €4 billion in consolidated revenue • Working with air transport IT specialist SITA, Kansai Airports has implemented an intelligent check-in kiosk named KATE, which will identify bottlenecks in passenger flow
w w w. s u p p l y c h a i n d i g i t a l . c o m
99
Building better outcomes – securely – for the world we live in For many, Unisys provides the fit they’ve been searching for. We build inspired, superbly crafted solutions to the most complex business problems and demanding standards. Our track record of success is second to none. Our solutions consistently deliver the significant, measurable results that matter most to our clients. Better still, we build security into solutions themselves to provide a level of assurance that’s exceedingly hard to come by. What drives us to excel with such passion and purpose? Simple: a vision of enhancing peoples’ lives through ensuring that the advanced technologies we build perform reliably and securely. In support of this goal, we design with the client experience in mind.
A S I A — PA C I F I C
A key player within the international airport sector, VINCI Airports serves nearly 250 airlines worldwide. Spanning Europe, Asia and Latin America, the company served 156mn passengers in 2017 across all of its 36 airports. In Japan, Kansai Airports successfully took over Kobe Airport in April 2018, and all three airports have amassed a combined growth of 9.6% in the second quarter. With international growth continuing to rise, Kansai International Airport achieved over 12% growth, with Kobe following
FACTS
• Kansai International Airport, Osaka Itami Airport and Kobe Airport provide services to over 47.6mn passengers annually • Kansai Airports took over Kobe Airport in April 2018, where all three airports have amassed a combined growth of 7.8% in Q2 • VINCI Airports serve nearly250airlines worldwide • VINCI Airports catered to 156.6mn passengers in 2017 • In the second quarter of 2018, traffic across the 36 platforms managed by VINCI Airports saw 42.9mn passengers handled in the network during Q2 • Japan continues to see increased numbers of visitors from neighbouring countries China, South Korea, Hong Kong and Macau, as well as attracting tourists from areas such as Europe
w w w. s u p p l y c h a i n d i g i t a l . c o m
101
KANSAI / VINCI AIRPORTS
closely behind at 5% growth. The country continues to see increased numbers of visitors
deals from low cost carriers and new routes which have recently become established. By building on VINCI Airports’ world-
from neighbouring countries
renowned expertise alongside ORIX
China, South Korea, Hong
Corporation’s strong roots in the Kansai
Kong and Macau, as well as
region, the three Japanese facilities are
attracting tourists from areas
set to be fully transformed.
such as Europe, with attractive
“We’ve secured a comfortable budget to invest in tomorrow’s IT and digital solutions,” says Kansai Airports General Manager for IT, Pascal Pipon. “We aim to make the passenger journey as peaceful, easy and stress-free as possible. We
102
SEPTEMBER 2018
A S I A — PA C I F I C
will be leveraging digital solutions, such as self-service, mobile services and biometry, in order to achieve seamless travel. We want to integrate all steps of the passenger journey within one complete digital experience.” In order to optimise the management of the existing airport infrastructures, Kansai Airports is transforming the organisation’s back-office applications. “Our task is to centralise and consolidate all flight data and resources from the airports, automate operational processes to facilitate decision making,” he adds. 103
w w w. s u p p l y c h a i n d i g i t a l . c o m
ABOVE. BEYOND. We were created to look beyond. To go further. And to transform air travel through technology. We’re already helping airports across the world to blaze a trail. Airports that have been built so intelligently that they’ll be just as smart, and just as well equipped for the future in 10,15, 20 years as they are today.
Explore more at: www.sita.aero/future-proof
A S I A — PA C I F I C
“ We’ve secured a comfortable budget to invest in tomorrow’s IT and digital solutions” — Pascal Pipon, Kansai Airports General Manager for IT
105
w w w. s u p p l y c h a i n d i g i t a l . c o m
KANSAI / VINCI AIRPORTS
DIGITALLY ENABLED Working with air transport IT specialist SITA, Kansai Airports has tested an intelligent check-in kiosk, which will identify bottlenecks in passenger flow, eliminate congestion and contribute towards a fully connected passenger experience. Through a number of inbuilt technologies, such as collision avoidance, the kiosk will move swiftly to different areas of the airport when required. The facilities have also sought to introduce artificial intelligence devices, check-in robots, and self-propelled floor cleaning robots where Kansai Airports is turning 106
towards automation across its entire portfolio. Among initiatives to optimise the use of existing capacities, Kansai Airports has sought to minimise waiting times and boost passenger throughput using real-time queue monitoring tools. “To do this, we implement different tools. One tool is called Passenger Flow Management, which provides real-time information surrounding passenger flow. Operation staff react to queues building up. We also display congestion information to the passengers at the airports and on our websites. With this technology, we have drastically reduced waiting times from 45mins peaks to 15mins,” notes Pascal. “Automation helps increase the capacity of SEPTEMBER 2018
A S I A — PA C I F I C
107
w w w. s u p p l y c h a i n d i g i t a l . c o m
The queue measurement system trusted by 66 airports
Eliminate queues and boost passenger satisfaction By delivering real-time KPIs, such as waiting times, process times and passenger throughput, Xovis paves the way for the digital transformation of passenger flows and queues. Now, 66 airports count on Xovis 3D Sensors and software solutions at checkin, security, retail, immigration, taxi ranks and many other highly frequented sites. Based on the collected data, airports are able to optimize both operations and capacity utilization. Shorter queues and waiting times lead to higher passenger satisfaction and hence higher revenues. Let‘s work together to enable a seamless travel experience. Get in touch for more information. info@xovis.com
A S I A — PA C I F I C
the airport to serve more passen-
ground handlers, the air traffic
gers and better serve the airlines.”
service provider, etc., which also
Collaborating with various
provide essential services,” he says.
team to provide the best solutions,
“The collaboration between
Kansai Airports continues to look
all the actors is at the core of
at harnessing new digital tools
the optimisation of airport
surrounding departures, arrivals,
operations. Technology will be
the scheduling of flights and the
key for all to converge toward
handling of various aircrafts.
this common goal.”
“IT is helping with all of this, but
With a keen awareness that the
we also have a lot of different
most important aspect will be to
actors, such as the airlines,
ensure that all passengers leave
“ We want to make the passenger journey as peaceful, easy and stress-free as possible” — Pascal Pipon, Kansai Airports General Manager for IT
w w w. s u p p l y c h a i n d i g i t a l . c o m
109
Over 80 years of experience in researching, developing and providing commercial audio and security solutions. Since first installing intercom systems at Japanese airports in 1978, TOA has been involved in numerous airport projects across the world. Today, most people who use Japanese airports hear the announcements delivered by TOA systems. Offering the sound systems and engineering capabilities required for safe, reliable passenger transit, we facilitate the accurate transmission of information to passengers and the smooth airport operations. ...and yet you are still led out of the terminal quickly and safely in an emergency.
We supply sound, not equipment
www.toa.jp
|
international_marketing@toa.co.jp
Today, over 500 airports worldwide depend on Daifuku’s baggage handling systems and self-service solutions to deliver a seamless experience for their travellers. Our world-class technology combined with our end-to-end integrated services ensure complete visibly, reliability and security, essential to your success.
www.daifukuatec.com
See why Daifuku is one of the world’s number one in aviation technology.
A S I A — PA C I F I C
“ We want to integrate all steps of the passenger journey within one complete digital experience” — Pascal Pipon, Kansai Airports General Manager for IT
and arrive on time, Kansai Airports must remain completely operation-centric, with an emphasis on promoting an exceptional passenger experience, in line with VINCI Airports’ commitment to quality of service and customer satisfaction. In the long-term, it will further introduce self-service facilities, and the passenger journey will become fully automated. “The sharing of information between all actors will be critical to maximise airport capacity and passenger satisfaction,” concludes Pascal. “Technology is essential to the future of Kansai Airports and the entire aviation industry.”
w w w. s u p p l y c h a i n d i g i t a l . c o m
111
T 112
SEPTEMBER 2018
A S I A — PA C I F I C
TELEKOM MALAYSIA redefining procurement for supply chain success WRIT TEN BY
DA LE BENTON PRODUCED BY
CHARLOT TE CL ARK E
w w w. s u p p l y c h a i n d i g i t a l . c o m
113
T E L E K O M M A L AY S I A
Through a full-scale transformation journey, Telekom Malaysia redefines its procurement function
H 114
istorically, procurement has
Mohamad Mohamad Zain, Chief
always been perceived as
Procurement Officer, TM.
a support function. Over the
With a career spanning over 20
last decade however, there has been
years, working in a number of roles
a considerable shift as more and more
within TM from insurance management
businesses around the world are
to enterprise risk management,
investing heavily to create greater
Mohamad has seen first-hand the
alignment between procurement and
changing role of procurement and feels
the strategic direction of the company.
his experience finely positions him to
For Telekom Malaysia Berhad (TM), Malaysia’s Convergence Champion,
lead TM’s transformation journey. Procurement was identified as one of
procurement has evolved far beyond
the key pillars to the company’s
its traditional function and is now
Performance Improvement Plan (PIP)
pivotal in the success and future
3.0, which focuses on delivering value
growth of the business.
via total cost ownership savings,
“Procurement has indeed played
increased speed of procurement
a pivotal role in ensuring speed to
process to support speed to market
market, improving customer stickiness
and be more responsive to the
via quality products and services while
dynamic business needs across the
also assuring supply sustainability to
wider TM Group.
support all year-round dynamic
“The Group Procurement’s vision is
business needs and strengthening
to optimise productivity,” says Moham-
supplier relationships to deliver shared
ad, “while also building an organisation
value to the organisation,” says
that has a sustainable competitive
SEPTEMBER 2018
A S I A — PA C I F I C
“The Group Procurement vision is to optimise productivity,” says Mohamad, “while also building an organisation that has a sustainable competitive advantage towards “Procurement Made Easier” with stable, effective and efficient sources of supply” — Mohamad Zain, Chief Procurement Officer, TM
115
advantage towards “Procurement Made Easier” with stable, effective and efficient sources of supply.” Through his role, Mohamad is part of the senior management committee, something he feels enables him to change the perspective of procurement. One of the key changes that he has implemented, in order to measure the success of this strategic transformation, is the w w w. s u p p l y c h a i n d i g i t a l . c o m
Building a Better Connected Malaysia Huawei is a leading global provider of information and communications technology (ICT) infrastructure and smart devices. With integrated solutions across four key domains – telecom networks, IT, smart devices, and cloud services – we are committed to bringing digital to every person, home and organisation for a fully connected, intelligent world. Huawei’s presence in over 170 countries, serving 45 of the world’s 50 largest communication operators and is at Forbes Top #79 company. Huawei achievement are through trusted partnership and collaboration. Where
www.huawei.com/my
Huawei creates value, drives growth and improves customer operation, create lasting dynamic to the ecosystem and co-existence with our customer. At Huawei, we fulfil our customer needs of experience centric services and strategic focus and our customer sustainable growth that inspire global and local innovation in their organisation. Emphasising in innovation focuses Huawei invest heavily in advance research, concentrating on technological breakthroughs that drive the world forward. Founded in 1987, Huawei is a private company fully owned by its employees.
T E L E K O M M A L AY S I A
“ We are expecting the Industrial Revolution 4.0, and so the future of procurement will largely dependent on technology, robotic and Internet of Things (IoT). Through our journey, we are laying the foundations in order to be ready for this future� 118
— Mohamad Zain, Chief Procurement Officer, TM
SEPTEMBER 2018
BIO
Mohamad Zain Chief Procurement Officer, TM Mohamad, 54, gained vast experience in insurance services while serving a UKbased insurance company for six years, including as Officer in charge for agency and direct client underwriting, claim management and re-insurance, designing insurance for credit card company and bank assurance, serving both domestic and Multinational Corporation clients. He joined TM in 1993 as an Assistant Manager and has been tasked with managing the corporate insurance programme and implementing the Enterprise Risk Management programme for TM in 2001. In 2007, he was appointed GM entrusted with an expanded portfolio of Group Business Assurance covering Enterprise Management, Revenue Assurance, Fraud Management, Insurance Management, Credit Management Policy & Monitoring, Corporate Compliance, Business Continuity Management and Enterprise Business Management. He was promoted to VP, Group Business Assurance, a position he held from 2011 until his appointment as Chief Procurement Officer on 1 September 2014.
A S I A — PA C I F I C
addition of optimising the supply chain and procurement management as the Group’s key performance indicators. What this does is present a challenge that Mohamad must continue to overcome; continue to demonstrate to stakeholders the true value of the new procurement model in contributing positively to the Group’s profitability. “I need to continue to show how procurement can assist our marketing team on speed to market with competitive product and
119
services,” he says. “This can then
dynamics and speed in procurement process
ensure that our suppliers can fully
and execution.
apprise on the overall objective of our new procurement model.” TM’s transformation journey began in 2013, overseen by Mohamad’s predecessor. Mohamad took over in 2015 and immedi-
The pillars will enable TM to implement a best-in-class procurement model, but any transformation journey is not without challenge. For Mohamad, he views challenge as an opportunity to continue pushing forward. “I look across our transformation to date, the
ately worked across the Group on
results that we can point to, and it gives me the
understanding the already
additional adrenalin I need to keep on pushing for
identified gaps in the Company’s
better results,” he says. “Whilst we have success-
basic procurement function.
fully established a cross functional category
These gaps allowed TM to
management team, improved governance to
anchor its transformation with three
allow speed of procurement approval, and
key pillars; value creation and
strengthened supplier relationship management,
expansion, responsive to business
there is still room for improvement, including w w w. s u p p l y c h a i n d i g i t a l . c o m
C O M PA N Y N A M E I N C O R P O R AT E C O L O U R
FIBERHOME GROUP FiberHome Technologies Group is a leading equipment vendor and global solution provider the field of information technology and telecommunications. This high-tech enterprise is directly affiliated to the State-owned Assets Supervision and Administration Commission of the State Council. It is also the largest enterprise located in the Optics Valley, Wuhan, China.
120
FiberHome Group Add:No.6, Gaoxinsilu, East Lake High-Tech Development Zone, Wuhan, Hubei, P.R.China 430205 Tel:+86-27-81618829 | Fax:+86-27-81618977 Email: marketing@fiberhome.com Wuhan FiberHome International ( Malaysia) Sdn. Bhd. Add:Level 43 South Wing, Menara TM, Jalan Pantai Baharu, 59100 Kuala Lumpur Tel: +603 2241 5780/4818/4808 | Fax:+603 2241 4770
MONTH 2018
Sales Directot: Aslan Zhou Email: zhoujun@fiberhome.com
www.fiberhomegroup.com/en
A S I A — PA C I F I C
embracing technology.” The transformation by its very
While Mohamad looks to the future of technology, that’s not to suggest that
nature is defined by improving
technology hasn’t played a defining role in this
performance. Mohamad’s
transformational journey.
sentiment of continuous learning is
“To support the procurement transformation,
shared across the Group. Four
technology has and will be fundamental in the
years into this journey and TM can
delivery of speed and efficiency in our processes,”
already point to RM1.0 billion
he says. “As such, we have embarked on PINTAR
(USD250 million) TCO savings
project, designed to provide data analytics on
through the expansion of value
spend analysis for our category managers.”
creation, as well as expanding its
PINTAR, or the Procurement Institutionalisa-
strategic vendor portfolio and
tion of Technology Applications and
improving overall governance and
Resources, specifically enables greater
control in order to achieve faster
efficiencies across spend analysis, online tender
procurement process.
and quotation, supplier performance manage-
But Mohamad is a firm believer in
ment and contract management and repository,
not standing still and is already
amongst other key areas.
looking at the next step in order to
With technology redefining industries all around
continue to improve, with technol-
the world this brings upon a challenge that is not
ogy and embracing digital
unique. The global technology conversation is
procurement a clear goal.
defined by Artificial Intelligence, Automation, Big w w w. s u p p l y c h a i n d i g i t a l . c o m
121
T E L E K O M M A L AY S I A
Data, but are these terms simply turning
also benchmark with peers across the
into buzzwords? What work does
globe and in some instances securing
Mohamad and TM do to ensure that the
advice from our key suppliers who have
Company is implementing the right
implemented robust supply chain
technologies for the right reasons and not
management system.”
just following trends?
As a supply chain and procurement
“As a technology company, technol-
function, having a strong supplier network
ogy and digitalisation have been part of
is crucial. In the journey of implementing
our business DNA from the very start,”
a new procurement model, that supplier
says Mohamad.
network proves more vital than ever.
“TM has its own R&D team, Network &
Mohamad admits that a transformation
IT Technical Committee and Chief Digital
of this scope is not one that can be
Officer that continue to provide advisory
completed alone, with the strengthening of
across the Group on new technology and
supplier relationships in itself a core pillar
digitalisation plan. At the same time, we
of the journey. TM has redefined how it
Tel : +604 642 3626 Fax : +604 642 3625
THE LITE WAY TO COMMUNICATE Design and Manufacture of Optical Fibre Cables and Trade of Related Accessories for Information and Communication Technology.
Website : www.litekabel.com Email : info@litekabel.com
A S I A — PA C I F I C
“ Whilst we have successfully established a cross functional category management team, improved governance to allow speed of procurement approval, and strengthened supplier relationship management, there is still room for improvement, including embracing technology.” — Mohamad Zain, Chief Procurement Officer, TM
w w w. s u p p l y c h a i n d i g i t a l . c o m
123
T E L E K O M M A L AY S I A
approaches supplier and vendor management, with expanded collaboration with mega suppliers (foreign and domestic) and those local vendors nurtured via its Bumiputera-Vendor Development Programme (BVDP). To date, we have over 9,200 vendors registered with us with close to 4,400 Bumiputera vendors. At TM, we have a robust and transparent procurement process; and we adhere to industry’s best practices. We are committed to maintaining the highest degree of integrity, transparency and accountability in the conduct of our business and operations. At least 42% of our projects are based on tenders and we also 124
award projects that require economies of scale to our long term and strategic partners. The BVDP is designed to stimulate the activity and involvement of local suppliers across Malaysia in tenders and other procurement activities. These activities can be stand-alone or through collaborating with foreign partners, with the goal of sharing technology and knowledge to the local suppliers in order to develop the capabilities of the local supplier network. “This programme will not only support the capability building of local vendors who will then be able to compete for regional business needs through tenders,” says Mohamad. “For TM, based on our BVDP framework, the entry level would be the Entrepreneur Development (ED) and Blue Lane (ED programme specific for SEPTEMBER 2018
A S I A — PA C I F I C
ICT-based or start-up technology company companies) levels. Once the vendors show improvement in their processes and capabilities, they will then be upgraded to Strategic Partners, and then elevated to become a Corporate Champion and finally to a National Champion. This journey may take three to five years.” TM has already amassed a strong portfolio of both foreign and local strategic suppliers such as Huawei, Fiberhome, Nokia as well as Opcom, Dura Mine and Lite Cable. As the title implies, this procurement journey is one of continuous improvement. Procurement as a function will continue to change and evolve and TM must continue to evolve with it in order to continue to deliver success. “The future will see TM begin to better embrace new technology, organisational and process redesign, and continue to push for cultural change in supporting this changing space,” says Mohamad. “We are expecting the Industrial Revolution 4.0, and so the future of procurement will largely dependent on technology, robotic and Internet of Things (IoT). Through our journey, we are laying the foundations in order to be ready for this future.”
w w w. s u p p l y c h a i n d i g i t a l . c o m
125
E 126
SEPTEMBER 2018
AFRICA
EnviroServ
RESPONSIBLE WASTE MANAGEMENT IN SOUTH AFRICA WRIT TEN BY
L AUR A MULL AN PRODUCED BY
ARRON R A MPLING
w w w. s u p p l y c h a i n d i g i t a l . c o m
127
E N V I R O S E R V W A S T E M A N A G E M E N T LT D
Delivering solutions across the automotive, chemical manufacturing sectors and more, EnviroServ is leading the way with environmentallyresponsible waste management.
A
s new lifestyles and new technologies enter the fray, society has also seen the rise of another by-product – waste. A few
decades ago we didn’t have to think about how
we disposed of our smartphones or how we’d navigate stringent waste regulations, but for 128
today’s businesses, it’s more important than ever. Since opening its doors in 1979, EnviroServ Waste Management (Pty) Ltd. has been first to market with many groundbreaking waste management solutions, some of which are still recognised as best practice in the sector. Now, thanks to this pioneering approach, the company has established itself as one of the largest waste management firms in South Africa today. Recognising the importance of protecting both the environment and community, EnviroServ’s sustainable ethos has become a guiding principle in all that it does. Rakesh Seetal, Head of Procurement and Supply Chain, says that it’s the company’s leading reputation that distinguishes it from the rest. “EnviroServ is a waste management company that uses ethical and best practices in the SEPTEMBER 2018
AFRICA
129
w w w. s u p p l y c h a i n d i g i t a l . c o m
E N V I R O S E R V W A S T E M A N A G E M E N T LT D
disposal of waste recycling,” he explains. “We use the three Rs: reduce, reuse and recycle. We may use landfill if necessary but a key motivator for the company is thinking of alternative uses of waste. “As part of our ethos, we put our customers first and provide them with the best alternatives for waste disposal or waste management. We’ve done it responsibly for many years. As a result, our reputation precedes our marketing efforts. Working with our customers for decades has really helped us become a leader in the market.” Like any business, a robust supply chain 130
function has been a key driver of growth at EnviroServ. With a spend of over ZAR50mn ($3.8mn) under its belt, the South African company has implemented an increasing
“Procurement used to be a back-office function but now it is now taking a leading role in creating this strategic competitive advantage” — Rakesh Seetal, Head of Procurement and Supply Chain SEPTEMBER 2018
number of benchmarking activities to ensure that it’s upholding only the best industry practices. As part of this, Seetal outlines how the waste management firm has streamlined its supplier network so that it can respond quickly to the market and enhance its value chain. “We’ve just put more and more benchmarking exercises into our
AFRICA
BIO
division,” he notes. “Four years ago, we had approximately 7,000 suppliers and now we have brought it down to about 1,400. Every day, we strive to get the best suppliers into our database. Through benchmarking or supply evaluations we weed out the ones that do not
Rakesh Seetal, Head of Procurement and Supply Chain for EnviroServ Waste Management. EnviroServ’s primary focus is the transportation and management of waste. EnviroServ is a multi-national company, operating within southern Africa. EnviroServ’s purchasing power is approximately R1 Billion. My role and purpose is to execute the procurement and supplier management strategy and policy to support EnviroServ’s vision. I am responsible for building strong relationships with suppliers by negotiating the best deals based on quality, delivery and price, and tracking and reporting on performance against contractual agreements and relevant Key Performance Areas and Indications. I am a professional and presentable person, with a strong but empathetic character. I work well independently as well as collaboratively in a team setting and have been able to distinguish myself in all my previous jobs.
add value to our supply chain. All the benchmarking we have done and continue to do on w w w. s u p p l y c h a i n d i g i t a l . c o m
131
A PROGRESSIVE SERVICE PROVIDER At Crossmoor, our commitment to our Clients means going the extra mile. In doing so, we have dedicated teams on hand to cater for varying Client requirements, ensuring peace of mind for both parties. High-levels of Service and Competitive pricing structures, ensure enduring relationships. By employing stringent safety measures and strict implementation procedures, our intention is always to safeguard the natural environment.
www.crossmoortransport.co.za info@crossmoor.co.za
MAXIMISE YOUR FUEL EFFICIENCY Finely matched powertrain, high torque-to-hp ratio and Scania's unique opticruise delivers greater fuel efficiency. This ensures a fuel savings of up to 8.3% from 48l per hour to 44l per hour. This equates to an impressive saving of up to 4l per hour.
CONSISTENTLY DEPENDABLE You'll get optimal uptime that you can trust, even during heavy usage. CABS Scania’s wide range of cabs allow you to select cab size and height to secure maximum crew comfort.
READY TO GO Since all components are part of Scania’s modular product range, type approval is straightforward.
MAINTAINS EFFICIENCY A wide range of options to reduce vehicle weight without compromising toughness.
-
Fit for hard work. Fit for Tough Business. Rugged, tough and reliable. The vehicles in Scania’s construction range are renowned for their excellentmanoeuvrability and handling. They are fit for hard work in the most challenging conditions. So when your manoeuvrability and handling. They are fit for hard work in the most challenging conditions. So when youruptime really counts, trust Scania’s construction vehicles. Scania’s construction range offers up to 8% more fuel efficiency and is a truck considered to be a leader in fuelScania’s construction range offers up to 8% more fuel efficiency and is a truck considered to be a leader in fuelScania’s construction range offers up to 8% more fuel efficiency and is a truck considered to be a leader in fuel economy. That is no small feat. Simply put, Scania has raised the bar to stay ahead of the competition. For our customers, it means outstanding operating economy.
For Further information contact Scania South Africa +27 87 286 6707 www.scania.co.za
AFRICA
133 a day-to-day basis helps us to
Seetal. “Each of our divisions has
get the right suppliers onboard.”
set targets for savings; they strive
As well as offering environmen-
to do more with less or to find
tally-conscious products and
alternative products or services
services, EnviroServ has also
to achieve our goals.”
championed cost-efficient waste
EnviroServ prides itself on
management which is clearly
offering a range of specialist
evidenced by the firm’s procure-
products and services, from
ment and supply chain function.
hazardous waste services and
“One of the other strategic
waste collection services to
drivers in procurement is the need
waste recycling and on-site
to bring savings into the supply
waste management. Like many
chain. Strategic buying can help
countries across the globe,
you get the right product at the
landfill is no longer seen as the
right place at a lower price,” says
preferred waste management w w w. s u p p l y c h a i n d i g i t a l . c o m
E N V I R O S E R V W A S T E M A N A G E M E N T LT D
1979 Year founded
EnviroServ
is the largest waste management company in South Africa
Pro
! v e s o i v n E o f ote p s n a t d We Move High Volumes, Anytime, Anywhere
www.bakerstankers.com info@bakerstankers.co.za (+27) 11 494 3001
AFRICA
135 option in South Africa. As a result, EnviroServ strives to use landfill as little as possible, instead offering alternative waste disposal services. Over the past 40 years, EnviroServ has gained deep insight and experience across a variety of different industries such as the automotive, chemical and food and beverage sectors. Attracting and retaining some of the foremost scientists and engineers in the waste
“We’re currently one of the market leaders and we hope to stay there” — Rakesh Seetal, Head of Procurement and Supply Chain
management field, the company has increasingly zeroed in on emerging technologies to offer alternative waste management solutions. In doing so, technology is assisting the firm as it tries to address some of the w w w. s u p p l y c h a i n d i g i t a l . c o m
E N V I R O S E R V W A S T E M A N A G E M E N T LT D
biggest waste management issues facing industries today. “We try not to do the same over and over again so finding new technologies and new products is paramount to our success,” highlights Seetal. “In our landfill sites, we are using classification projects and evaporation techniques and we are also looking at different technologies in the market. We send our technology managers across the world to see what technology is available and then we bring it back to South Africa. “Additionally, we are always on the lookout 136
for better equipment. We don’t just stick to one brand because it’s been the best in the past, we’re always looking out for new alternatives.” To reduce its customers’ reliance on landfill, Seetal highlights how EnviroServ is also exploring new ways it can upcycle waste materials. “If you look at the waste management sector, ideas such as waste reusing, recycling or upcycling are some of the biggest trends that are happening today,” he notes. “Therefore, we are also looking to find companies that can use these waste materials. “For example, a tyre could be used in road manufacturing or it could be used in the making of a mat. Paper can be recycled
SEPTEMBER 2018
S U P P LY C H A I N
into pulp and then reused. Plastic can be remodelled. Glass can be used in art material. We can support schools and art companies in providing such materials.” Developing strong supplier relationships is a key aspect of any robust supply chain and it is something which hasn’t been overlooked at EnviroServ. When selecting suppliers, EnviroServ adopts a multi-faceted approach, taking into consideration issues such as such as price, product, service and Black Economic Empowerment (BEE) into account. As such, Seetal believes that the South African firm develops sincere relationships with the suppliers it works with. “At the end of the day, it is a partnership,” he says. “We believe that our suppliers are critical to our success and if they are successful, we are successful.” On the frontline, EnviroServ’s dedicated team works closely
w w w. s u p p l y c h a i n d i g i t a l . c o m
137
E N V I R O S E R V W A S T E M A N A G E M E N T LT D
with suppliers and learns first-hand
who understand the problems, under-
about its customers.
stand the challenges out in the field.”
“It’s a small team of centralised
Combining an industry-led reputa-
buyers supported by regional buyers,”
tion with a socially-conscious perspec-
describes Seetal. “We need those
tive, EnviroServ has pushed for
regional buyers to get information
continuous improvement across
from the ground floor. I believe that you
a spectrum of industries. It has
cannot run a procurement division from
become a trusted and preferred
head office alone. You need people
waste management supplier because
138
SEPTEMBER 2018
S U P P LY C H A I N
it understands that, as exciting tech-
whether that’s in South Africa, south-
nologies enter the fore, sustainable
ern Africa or other neighbouring
waste management isn’t a finite
African countries, we want to be
concept. As society’s needs, habits and
the best. We want to be a partner
awareness of health and environmental
of choice. Procurement used to be
issues have evolved, so has EnviroServ.
a back-office function but now it is
“We’re currently one of the market
taking a leading role in creating this
leaders and we hope to stay there,”
strategic competitive advantage.”
adds Seetal. “We want to grow and,
139
w w w. s u p p l y c h a i n d i g i t a l . c o m
MIDDLE EAST BROADCASTING GROUP (MBC)
140
Procurement excellence for the small screen WRIT TEN BY
JA MES HENDERSON PRODUCED BY
HEYKEL OUNI
MIDDLE EAST
141
w w w. s u p p l y c h a i n d i g i t a l . c o m
MIDDLE EAST BROADCASTING GROUP (MBC)
MBC’s procurement division is driving real value for the flourishing Middle Eastern broadcaster
A 142
s the first broadcaster
the last decade. When Lorraine Black joined MBC in 2007 – as the company’s new Head of Procurement, she helped build a team numbering just four which was very transactional in its nature.
to provide a satellitebased free-to-air
Changing perceptions
24-hour television network
“There were no specific pro-
across the Arab world, The Mid-
cesses, it was a basic operation,”
dle East Broadcasting Center
says Black, who led and man-
(MBC) holds a unique place in the
aged the process of CIPS
region’s “Media & Entertainment”
Organisational Certification,
industry. Established in 1991,
which resulted in MBC being the
MBC now offers 16 channels,
first company in Dubai, UAE to
broadcasting a varied line-up of
achieve CIPS certification of
programs and series, including
excellence of its purchasing poli-
flagship shows such as: ‘Arab
cies and procedures in 2008 (a
Idol’, ‘Arabs Got Talent’, ‘theVoice’,
number of MBC’s team are work-
‘theVoice Kids’, and ‘Project Run-
ing on achieving their CIPs
way ME’… among many others.
certifications currently).
MBC is a premium content-
An analysis of the department
centric, audience-focused
was undertaken to understand
company whose success has
the skills of the existing staff and
been underpinned by a procure-
pinpoint gaps that needed to be
ment team that is setting new
filled to create an effective and
standards in the MENA region -
valuable procurement function
thus proving itself to be of real
for the business. An enterprise
added-value to the business, over
resource system (ERP) was
SEPTEMBER 2018
MIDDLE EAST
“ The main challenges we faced was shifting the mind-set of our key stakeholders. Now, we work closely with all of our stakeholders, understanding the business and demonstrating where we add value” — Lorraine Black, Head of Procurement, MBC Group
143
w w w. s u p p l y c h a i n d i g i t a l . c o m
MIDDLE EAST
implemented, processes and procedures introduced, and skills added, gradually building a well-rounded team. As all procurement professionals know, the support of key stakeholders in the business – especially in the C-Suite – is vitally important, and Black says MBC is no different. “The main challenges we faced was shifting the mind-set of our key stakeholders. Now, we work closely with all of our stakeholders, understanding the business and demonstrating where we add value. “We also got support from MBC CEO office which made it a lot easier to drive our ideas forward and get buy-in from the company’s senior management. That’s been really important in working with various departments in a collaborative way, rather than as a standalone function. After we showed that we can add value and leverage our relationships with suppliers, the decision was taken that departments would stop getting quotations without the support and involvement of the
“ Our revenue is largely derived from advertising, and as we have little direct control over regional ad market fluctuations, it is critical to keep our costs under control. That makes Procurement strategic to our long-term profitability and success. Their support has been essential to our migration from in-house systems to outsourced cloud services as part of our digital transformation efforts” — Joe Igoe, Group Director of Operations, MBC Group
procurement team. This has been a real positive shift,” Black concluded. But don’t just take the procurement team’s word for it; Joe Igoe – Group Director of Operations, comments: “Our revenue is largely derived from advertising, and as we have little direct control over regional ad market fluctuaw w w. s u p p l y c h a i n d i g i t a l . c o m
MIDDLE EAST BROADCASTING GROUP (MBC)
SERVICES
THE TECHNOLOGY DRIVING A PROCUREMENT TRANSFORMATION AT MBC
146
Business Intelligence Reports Business Intelligence reports have been the ERP solution to monitor spend managed through Procurement. The various dashboards are utilised for monitoring the compliance, category and contractual spend, procurement KPIs, procure-to-pay cycle, and supplier delivery performance. This data analysis has been utilised by the procurement team for further discussions on process improvements/potential opportunities for savings and value addition. E-Procurement The procurement team rolled out the E-Tendering system to modernise the procurement strategic sourcing activities. The use of this system has given a 360-degree view of the complete tendering process to all engaged parties. Automating the system which provides quick comparison tools and reduces the scope for human SEPTEMBER 2018
errors has helped create a more efficient sourcing platform with reduced human effort. Contract Management System Effectively managing and monitoring the financial and operational performance is critical to every organisation. Bearing this underlying factor in mind, the manual contract administrative and management process was assessed and an in-house Contract Management System was customised and developed to meet our requirements. This system has been effective and efficient in: Automating and accelerating the contract administration and management; managing all procurement contracts and related milestones; Strengthening governance/compliance; stakeholder engagement and collaboration; better visibility through reports; and complete transparency of contract process.
MIDDLE EAST
147
w w w. s u p p l y c h a i n d i g i t a l . c o m
MIDDLE EAST
Click to watch: Middle East Broadcasting video: Studio City 149
tions, it is critical to keep our costs
and drive forward efforts to grow the
under control. That makes Procure-
business sustainably. These included:
ment strategic to our long-term
spend analysis across the group,
profitability and success. Their support
encompassing various categories, sup-
has been essential to our migration
plier segmentation using the Krajlic
from in-house systems to outsourced
Model, assessment of procurement
cloud services as part of our digital
technologies and the alignment of
transformation efforts.”
MBC’s corporate and business strategy with that of the procurement depart-
Driving growth As part of its effort to shift attitudes
ment. On the benefits of the thorough
about the role of procurement, the team
research and planning that has been
at MBC carried out detailed analysis of
undertaken, Black comments: “With the
key strategic activities to understand
development of the procurement techw w w. s u p p l y c h a i n d i g i t a l . c o m
MIDDLE EAST BROADCASTING GROUP (MBC)
“ As a team we were at the centre of a lot of conflict resolution, so we had to be skilled at providing solutions for the site. It took all of our expertise to make the project a cohesive one, pullMIDDLE EAST ing everybody together, making sure that all of the elements and all of the pieces of the puzzle actually fell down at the right time, in the right location”
150
— Durdana Farid, Procurement Manager at MBC Group
SEPTEMBER 2018
S U P P LY C H A I N
nologies, we have been able to cater for
notably MBC’s $20mn facility in Dubai’s
the growing needs of business and ena-
Studio City district.
bling the shift from the cost only to the cost-plus-value model.
Completed in May 2017, the state-ofthe-art studios used for programming
“Efficient use of technology through
for MBC’s satellite network, primarily
effective collaboration with stakehold-
MBC1 and MBC3, and online portals,
ers has been leveraged for operational
complement its headquarters in Dubai
excellence and alignment of strategies,
Media City. At least seven shows are
while collaborative negotiation plans
produced at the studios, which the com-
have brought the best of industry knowl-
pany says are key to being able to
edge and commercial leverage on the
attract top talent, the right expertise,
table enabling multitude of benefits in
and bright, creative minds of the various
securing interruptive value propositions.
disciplines that are related to the crea-
“In addition, supplier value management is imperative to the success of
tive and production fields. The nature of TV schedules meant
procurement. So, a 360 degree view of
that the deadline was tight, with a pleth-
supplier positioning and business per-
ora of stakeholders to manage. In the
spective has been used to align our
absence of a contracting consultant,
critical suppliers with business strategy
the procurement team worked to
and growth.”
ensure all the elements that were needed to being the project in on time
Building the future
were in place.
With the company fully bought in to the
“A lot of the detail on a project like this
value offered by a skilled and dynamic
are small, but really important to its suc-
procurement function, the team has
cess,” says Durdana Farid, Procurement
grown, and now numbers 26 profes-
Manager at MBC. “The timeline was
sionals across MBC offices.
very demanding, and to hit our tight
As well as the best-and-braces work
deadline we had to ensure we were
the department oversees, it has proven
accurate with all of the detail, such as
invaluable on some major projects,
ensuring all elements of the project w w w. s u p p l y c h a i n d i g i t a l . c o m
151
CLIP, EDIT, PUBLISH & MONETIZE Deliver the best content to all digital. Automatically. In seconds,
Wildmoka enables you to build compelling video stories and simultaneously post them to multiple digital destinations to engage viewers by giving them instant access to best highlights.
wildmoka.com
contact@wildmoka.com
REIMAGINE EVERYTHING
We’re at the threshold of a new era—the media cloud era New capabilities. New workflows. New possibilities. Cloud-based production and distribution workflows offer media enterprises, creative teams, and independent professionals many more efficient and profitable ways to create, connect, collaborate and deliver content. With Avid’s cloudenabled MediaCentral® platform and comprehensive suite of industry-leading tools and workflow solutions, you’re ready to exploit the media cloud era—at your own pace and in your own way, with flexible licensing and deployment options to match your unique requirements. Moving to the cloud with Avid will bring new levels of operational efficiency, enable greater flexibility and scalability, and deliver much better agility.
Learn more at: avid.com/media-cloud
YOU R PL AT F O R M TO TH E C LO U D © 2018 Avid Technology, Inc. All rights reserved. Avid, the Avid logo and MediaCentral are either registered trademarks or trademarks of Avid Technology, Inc. in the United States and/or other countries.
Avid_Cloud_Ad_8-125x5-375in.indd 1
7/12/18 2:17 PM
MIDDLE EAST
were compliant to their timelines, from authority approvals to contractors meeting their milestones, to the equipment being delivered on the right time and all the way down to the carpet and furniture for the studios. The deadline – four months, to be exact – meant that the procurement team had to be a highly effective conduit to bring together all stakeholders working on the project. “There was a lot of back and forth; and a lot of input from the procurement department,” Farid continues. “As a team we were at the centre of a lot of conflict resolution, so we had to be skilled at providing solutions for the site.
153
It took all of our expertise to make the project a cohesive one, pulling everybody together, making sure that all of the elements and all of
budget target. We spoke to hun-
the pieces of the puzzle actually fell down at
dreds of parties, leveraging the
the right time, in the right location.”
relationships we have built over
The procurement department’s established
the years, both within the com-
relationships with suppliers that have been
pany and with external partners,
developed and nourished over the years were
and were able to bring them
critical to the project’s overall success.
together to agree on really impor-
“The budgets were very tight, with minimum contingency,” says Farid. “So, despite of the
tant issues for the good of the project.”
fact that we had contracted system integrator and contractors, we went to each manufac-
Procurement never sleeps
turer, we have built relationships with and
The business of round-the-clock
negotiated with them directly, which helped
television means MBC’s procure-
the contractor bring down costs and hit the
ment team is not perhaps typical of w w w. s u p p l y c h a i n d i g i t a l . c o m
MIDDLE EAST BROADCASTING GROUP (MBC)
154
SEPTEMBER 2018
MIDDLE EAST
155
“ We’re not working in a manufacturing plant, or for a bank; we’re working in a fast-paced and competitive creative industry. It means we have to be really dynamic, versatile and slick at what we do” — Lorraine Black, Head of Procurement, MBC Group
w w w. s u p p l y c h a i n d i g i t a l . c o m
MIDDLE EAST BROADCASTING GROUP (MBC)
ZEN STUDIO INTERIOR ARCHITECTS Zen Studio is an Interior Design & Fit-Out Company based in Dubai - Tecom Area , specializing in Commercial , Residential & Hospitality projects such as Offices, TV Studios, Villas, Hotels & Retails.
www.zenstudio.ae info@zenstudio.ae
Zen Studio was established in response to the increasing demand for quality finishing and furnishing works in The Emirates, based on a solid reputation for creativity, integrity, coupled with a commitment to excellence and a dedication to fulfill client satisfaction by converting their dreams to reality.
MIDDLE EAST
have our budgets and ensuring we’re onboarding the correct partners and suppliers, and we also know that we have a duty to make sure the end product is a
1991
Year founded
high-quality one.” Again, says Farid, the work that the procurement team has put in over the years to build relation-
1,800 Approximate number of employees
ships is paying dividends. “We often work in a live environment, so we need people who we can call in to come in and fix an issue at 2am, or ensure a delivery is made in the middle of the night. We need to have that flexibility and
those working in other industries. As Black puts it: “We’re not working in a
that’s when we need something to be free of charge or if some-
manufacturing plant, or for a bank; we’re
thing goes wrong and we need a
working in a fast-paced and competitive crea-
new camera, so it’s important our
tive industry. It means we have to be really
suppliers understand our needs.
dynamic, versatile and slick at what we do.
“We cannot have suppliers that
“Procurement in this region can often be
we don’t have that kind of relation-
very fast, transactional and functional, so it’s
ship with, because the outcome
often about pricing structures and cutting
or the effect that it could have on
costs. But, we work in an environment where
one of our shows on the commer-
the content and quality that we put on-screen
cial impact it could have could
has to be good. The production values on
be huge. So, we ought to be very
shows such as Arab Idol, The Voice and Top
careful when we deal with our
Chef have to be first-class, so on one hand we
suppliers, that we are getting w w w. s u p p l y c h a i n d i g i t a l . c o m
157
MIDDLE EAST BROADCASTING GROUP (MBC)
158
“ MBC procurement team has not only saved us a lot of money in a challenging market, but has helped us get closer to our most important suppliers and partners, at a time of major industry changes” — Sam Barnett, CEO, MBC Group
SEPTEMBER 2018
MIDDLE EAST
suppliers who actually understand our business and what our requirements are.”
value,” she says. “Even with the big productions, we need the buyer there so they
The efforts have been recog-
understand any problems and
nised across the company, right
are able to resolve issues. That
to the very top, says MBC’s CEO,
relationship with the supplier on
Sam Barnett, who comments:
the ground is really key.
“Our procurement team has not
“As a department, our people
only saved us a lot of money in a
have to be versatile and have
challenging market, but has
really good communication
helped us get closer to our most
skills. We can teach buying
important suppliers and part-
skills and negotiation, but the
ners, at a time of major industry
ability to adapt to situations and
changes.”
communicate effectively is what we want.
Buying power
It is a strategy that appears to
In a bid to improve the procure-
be paying dividends, says Farid:
ment function yet further, Black
“I deal with a lot of suppliers and
says MBC is changing the behav-
one constant feedback that we
iour of its buyers to ensure they
always receive is that MBC pro-
are recognised as influencers
curement is one of the most
within the business. The days of
engaged procurement depart-
buyers sitting at their desks,
ments in the industry.”
removed from stakeholders, are gone – it’s all about engagement and interaction. “We need our buyers to be on the ground and understand the dynamics of the business if we want to continue to add real w w w. s u p p l y c h a i n d i g i t a l . c o m
159