BECOMING A LEADER IN TRANSPORTATION THROUGH PROCUREMENT TRANSFORMATION
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PROCUREMENT TRANSFORMATION JOURNEY OF ANSALDO STS WRIT TEN BY
L AUR A MULL AN PRODUCED BY
RICHARD DURR ANT
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In line with its parent company, Hitachi, Ansaldo has continued to deliver world-class transport services thanks in part to an innovative procurement transformation
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aster, safer and more efficient: today’s communities are demanding more from their transportation systems and it seems that many
have found the answer when working with Ansaldo
Signalling and Transportation Systems (STS). Over the past decade, Ansaldo STS has continued to 04
make a lasting impression when designing and implementing railway signalling, automation and integrated transport systems for both metro networks and railway lines, and through its operations, has ensured that people can easily get from A to B. As a Hitachi Group company, Ansaldo STS has leveraged its international experience to help transform transport systems around the globe. This means that whether you’re in Italy or France, the US or India, Ansaldo STS has the expertise to help. In fact, today, the technology firm has designed and implemented solutions in around 28 countries, generating about USD$1.5bn in turnover. Now, as its global footprint expands further, the company has also transformed its procurement process to ensure that it can cater to its global outlook.
$1.5bn Approximate revenue
1853
Year founded
4,228
Approximate number of employees
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“ Our procurement team is fully involved from the beginning of the process and can lead the sourcing of each package” — Filippo Fanfani, Vice President of Procurement at Ansaldo STS
This responsibility has partly fallen
therefore, a major part of our costs
into the capable hands of Filippo
comes from the external partners and
Fanfani, Vice President of Procurement.
suppliers. Recognising this, we have
Joining the firm in 2014, he says that
implemented a new strategy, manage-
for global companies like Ansaldo STS,
ment and organisation of our supply
having a best-in-class procurement
base. I would say that this is even more
function is more important than ever
important in a global environment where
before. “We are a global business: we
we have key projects across the globe.”
have our core business, such as sign-
With support from top management,
alling, where we design and produce
Ansaldo STS has undergone a restru-
our own products but on the other side,
cturing, creating a new procurement
we also offer turnkey solutions and act
organisation that deals with engineer-
as a technology integrator,” he explains.
ing, development, manufacturing, con-
“For this business, we create the main
struction and the projects through
contract on behalf of our customers and
supply chain planning organisation.
E X E C U T I V E P R OF IL E
Filippo Fanfani Mr. Filippo Fanfani has a multiyear industry background within automotive, industrial and rail businesses, cross functional experiences and a strong international exposure. As part of the Ansaldo STS Executive team Fanfani leads the global Procurement organization (1bn€ spend and about 90 team resources) with the aim to transform it into an effective strategic function. Process and People development are his forte, besides, sourcing strategies and operational initiatives. He believes in sustainable and reliable relationship with key supply partners to achieve progress.
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This has helped to foster more robust
operations, moving towards a supply
and strategic sourcing process. “Our
chain and construction focused orga-
procurement team is fully involved
nisation spanning, procurement,
from the beginning of the process and
manufacturing, logistics, supply chain
can lead the sourcing of each package.
planning and construction.
It’s fundamental for the turnkey business
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For Ansaldo STS, procurement is
so we can define the external cost of
organised in a global matrix structure
each project and maintain a sustain-
under Filippo Fanfani’s leadership.
able margin. I would say that negotia-
On one hand, roles are organised by
tion of cost and risk management are,
regions and on the other axle the global
for sure, two key aspects that they
commodities. This matrix responsibility
keep in consideration.” In order to be
provides the reasonable balance
even more effective today the compa-
between global efficiency and local
ny decided to restructure the global
effectiveness as well as a proper
CLICK TO WATCH : ‘ANSALDO STS STRATEGIC BUSINESS OVERVIEW’ 09 managerial control over the decisionmaking process. Moreover, with this procurement organisation the benefits are two-fold: the firm can not only negotiate tenders from the beginning of the process but it can also enter the global market with sound knowledge of the specific technologies and processes needed for the project. “It’s important for us to work alongside the business and to go to the market as soon as possible,” observes Fanfani. “Technology changes every day and our customers are looking for innovative tools, so it’s w w w.a nsa l do - sts.c om /en
very important that we can go to the
“Leading the sourcing from the
market and understand what our part-
beginning of the bid, we understand
ners can provide to us from the offset.
the documents we have in our hand,
We need to lead the process.”
what we need to have shortly. We
Across its turnkey business, Ansaldo
definitely have to consider what are the
STS has to work closely with partners
constraints, the opportunities and the
to implement cutting-edge transport
supplier base we need to get on board.
technologies. Its supply chain organi-
There are several functions involved in
sation has, therefore, been invaluable:
the planning of the sourcing – providing
by working shoulder to shoulder with
data, documents and in general inputs
both customers and suppliers from the
during the sourcing process – and so it
offset, it’s allowed Ansaldo STS to lead
helps us lead that process respecting
the way and negotiate cost-efficient ten-
each function delegation of authorities
ders, without getting swept up by new
and get a proper match among techni-
waves of digitisation or time constraints.
cal contents, costs, prices and risks,”
“ It’s really important for us to be updated with the latest digital transformation. It’s not something to be considered ‘nice to have’, it’s mandatory” — Filippo Fanfani, Vice President of Procurement at Ansaldo STS
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adds Fanfani. “Thanks to this approach, we have a strong understanding of the specifications of our customers’ needs and we flow them down to our suppliers.” Supplier relationship management is a pressing concern for any supply chain professional and it is one which Ansaldo STS has tackled head-on. By working consistently with its partners and suppliers, creating lasting relationships has become second nature to the firm. “This continuous relationship 12
with our key suppliers is critical as well for our success in a global environment,” notes Fanfani. “As a buyer, you’re responsible for maintaining a strong relationship with your key suppliers. The balance between global and local interaction in our supply chain organisation also allows us to leverage the right partner who can deliver a costefficient product.” A digital enthusiast himself, Fanfani is keen to keep abreast of the latest technological innovations shaking up the sector. After the procurement organisation zeroed in on identifying the best practices and processes,
C OMPA N Y FA C T S
• Ansaldo STS is headquartered in Genoa, Italy, and has over 4,228 employees in 28 different countries.
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“ I strongly believe that in a global environment like today which is becoming more and more digital, procurement also needs to be in line with that” — Filippo Fanfani, Vice President of Procurement at Ansaldo STS
digitisation was seen as the next natural step. As a result, Ansaldo STS is currently in the process of implementing a new digital procurement platform. “This will help us streamline our processes and it will also give us a global tool where all procurement professionals can work during the sourcing process,” observes Fanfani. “I strongly believe that in a global environment like today, which is becoming more and more digital, procurement also needs to be in line with that. I would say that this is the first step for implementing further technologies in the future.” In today’s global market, Ansaldo STS may be facing stronger competition but Fanfani is confident that with its newfound global approach, the company is well up for the challenge. Leveraging the power and image of its parent group, Hitachi, it seems the only way for Ansaldo STS is onwards and upwards. “As a part of Hitachi, we can leverage their expertise and utilise the power we have behind us, particularly when it comes to technology. It’s really important for us to be updated with the latest digital transformation. It’s not something to be considered ‘nice to have’, it’s mandatory.”
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Via Paolo Mantovani, 3-5 16151 Genoa Italy www.ansaldo-sts.com/en