Supply Chain magazine - June2017 by Supply Chain Digital

Ju ne 2 017

www.supplychaindigital.com

No turning back as procurement goes digital

TOP10 largest transportation companies

SECURING A

HEALTHY SUPPLY CHAIN JLL Vice President Steve Sawyer on the transformation of its healthcare supply chain, a project based on honesty and trust

Refuelling Gatwick: Waste = Power

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EDITOR’S COMMENT

HELLO AND WELCOME to the June issue of Supply Chain Digital. This instalment is all about how businesses handle efficiency across the supply chain. Kicking off this theme is an article that explores DHL Supply Chain’s work with Gatwick Airport. We spoke to DHL’s Senior Vice President of Specialist Services Martin Willmor about how he and his team are helping one of the world’s busiest airports cut waste. Also on this topic, Dr Marcell Vollmer, Chief Digital Officer at SAP Ariba says that there will be no turning back as procurement goes digital, and the winners and losers will be defined by how they embrace technology. We also profile a number of companies this month. JLL – which has made the June front cover – is a particularly interesting example of how a healthcare company has leveraged its supply chain to build trust. Also profiled in this issue are Shell and METRO Group. Our top 10 this month explores the biggest transportation companies in the world. Whether its people, parcels, or solutions – we take a brief look at what makes each organisation tick. From everyone at Supply Chain Digital, we hope you enjoy the issue.

Nye Longman Commissioning Editor Nye.Longman@bizclikmedia.com

F E AT U R E S

PROFILE

>R efuelling GATWICK TECHNOLOGY

LIST

No turning back as procurement goes digital

TOP 10 LARGEST TRANSPORTATION COMPANIES 5

C O M PA N Y PROFILES

JLL

USA & Canada

Toshiba America Business Solutions

Cushman & Wakefield

USA & Canada

Asia

Anwar Ansari (PTCL Group)

Asia

70 106

METRO Cash & Carry Europe

Schneider Electric Asia

116

SAP

Enterprise Application7 Software Provider

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Hilary Hahn Vice President, Employee Experience, Creative Strategies Frontier Communications

William Botha Operational Excellence Principal Genentech, a member of the Roche Group

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> Refuelling GATWICK: SUPPLYING ELECTRICITY VIA CATEGORY 1 WASTE

DHL Supply Chain is helping Gatwick Airport to economise its supply chain with a new waste sorting facility. We spoke to Senior Vice President of Specialist Services Martin Willmor Writ ten by: TO M WA D LOW

PROFILE

PROFILE AIRPORTS GENERATE ENORMOUS amounts of waste. While the environmental headlines inevitably focus on fuel consumption and air and noise pollution, little attention has been focussed on the waste generated in this enormous supply chain hub. Category 1 waste includes food and anything mixed with it, such as cups, meal trays and packaging from aircraft. Around 20 percent of the 10,500 tonnes of

June 2017

waste handled at London Gatwick each year falls into this category, representing a huge of amount of food and associated packaging. Enter DHL Supply Chain and its new waste management and recycling system. It has recently come online and is expected to save the airport ÂŁ1,000 a day. We caught up with Martin Willmor, DHL Supply Chainâ&#x20AC;&#x2122;s Senior Vice President of Specialist Services in the UK.

R E F U E L L I N G G AT W I C K

â&#x20AC;&#x153;We are currently working with Gatwick to evaluate whether the energy generated from the biomass boiler could be used to heat the North Terminalâ&#x20AC;?

BRE: Give us an overview of the services provided by DHL at Gatwick. I understand your remit stretches beyond this latest waste management project? > MW: DHL Supply Chain has been working with Gatwick Airport since 2013 and, in addition to designing, installing and managing the new waste management plant, it manages inbound deliveries through its logistics and consolidation facility on behalf of the airportâ&#x20AC;&#x2122;s 150 partners and retailers. This includes visiting 13

PROFILE over 80 of the airport’s concessions per day, and processing over 600 inbound deliveries per week. BRE: How big a project has the new waste management plant been? How long has it taken to plan and build? > DHL Supply Chain has worked closely with Gatwick over the last year to design, implement and manage the airport’s full waste management and recycling system. This has included designing the new biomass boiler, which turns the airport’s waste into a dry-powdered organic material, used as fuel to heat the site and dry the waste for the next day. It has been an ambitious project, costing £3.8million, and will enable Gatwick to reach its target recycling rate of 85 percent by 2020 – higher than any UK airport currently and up from 49 percent today. Can you tell us about the technology involved in converting Category 1 waste into energy? > The Category 1 waste is first sorted in the waste management plant. Due to the nature of international waste, is not manually sorted but is 14

June 2017

loaded into an automated system. It is shredded and dried to remove water, which is reused, before being screened to remove the small quantity of shredded plastics, metals and other coarse materials, which are sent for disposal. This leaves only solid biomass fuel which we combust. Are you looking to install this facility into other airports? > Deutsche Post DHL Group has recently announced its commitment to reduce all logistics-related emissions to net zero by the year 2050 and become the market leader in green logistics. The development of the new waste management plant has taken us a step closer to achieving this goal, and DHL plans to expand its portfolio of green products and services to help all of its customers achieve their own climate protection targets. While there are no plans to currently install into at other airports, the technology is agile and could be adapted to different locations. WHAT OTHER ENERGY GENERATION IDEAS ARE YOU EXPLORING WITH GATWICK? > We are currently working with

R E F U E L L I N G G AT W I C K

PROFILE

Gatwick to evaluate whether the energy generated from the biomass boiler could be used to heat the North Terminal. Early indications are that the biomass fuel surplus could cover a substantial proportion of the North Terminal’s winter base load heating requirement, however we will be evaluating this in the coming months now that we have the first stage process operational. 16

June 2017

“With passenger numbers doubling, it can be challenging to drive sustainable practices and reduce an airport’s carbon footprint”

R E F U E L L I N G G AT W I C K

How is DHL Supply Chain making its own operations more sustainable at Gatwick? > DHL’s new waste management centre has consolidated all waste sorting on site, enabling waste to be transported four times more efficiently than before, reducing local traffic and carbon emissions. Since 2013, we have also reduced vehicle movements at the airport by 54 percent, and improved efficiency by 19 percent. What, in your opinion, are the main challenges in implementing sustainable practices at airports? > With passenger numbers doubling, it can be challenging to drive sustainable practices and reduce an airport’s carbon footprint. This is particularly problematic given the nature of Category 1 waste and how costly and timeconsuming it can be to dispose of. DHL’s new waste management and recycling system is a huge step forward and will hopefully set a benchmark for other facilities to follow.

DHL Gatwick Charles Kirwan Taylor, Corporate Affairs & Sustainability Director at Gatwick Airport

DHL Gatwick Martin Willmor, Senior Vice President, Specialist Services, UK, DHL Supply Chain

TECHNOLOGY

No turning back as procurement goes digital Winners and losers will be defined by how they embrace technology, writes Dr. Marcell Vollmer, Chief Digital Officer at SAP Ariba

THE NEW AGE of digital is fundamentally reinventing business processes, from operations to customer engagement and more. A key driver behind this shift is the Internet of Things and Industry 4.0 creating reams of data that allow decision makers to get the information they need, anytime and anywhere. Accompanying this mass of data, the evolution of advanced analytics is accelerating decision making without any adverse effect on accuracy or performance quality. At the same time, business networks are creating highly efficient levels of collaboration that enhance productivity and generate value from data, regardless of where employees are located. Procurement professionals have long been the unsung heroes of helping businesses adapt to these changes, tasked with reducing costs and ensuring savings are realised. But the most innovative among them are utilising new technologies like self-service portals, mobile apps and cloud or social collaboration tools to streamline processes, manage spend and simplify traditionally complex purchasing experiences. The end result is empowering buyers to comply with 21

TECHNOLOGY

internal policies and best practices, while keeping costs down and raising the strategic value of every purchase. Procurement organisations are more than comfortable with delivering buying experiences and supply chains that are fast, simple, sustainable, and low risk. But the key target here is to add value to the delivery of services and goods to customers. This is the future of procurement. 22

June 2017

From backroom to boardroom The ongoing transformation of purchasing processes and supplier networks provides an opportunity for procurement organisations to move from a back-office cost centre to a strategic boardroom partner. A prime example of this in practice is the relatively recent vogue that is the coffee-pods market. The goal of delivering the perfect cup of coffee in any kitchen â&#x20AC;&#x201C; not just your local

N O T U R N I N G B A C K A S P R O C U R E M E N T G O E S D I G I TA L

“The ultimate winners in this game will be those that embrace the ongoing digital transformation, reimagine their roles and use the plethora of technology, data and insights at their fingertips to run simpler and smarter”

high street coffee house – is seeing a simplification of buying processes and increased focus on generating value for the enterprise and the customer. The entire buying cycle – from pricing and quotes to orders – is now handled by one company, using a cloud-based application. This digital approach not only makes it easier and more intuitive for customers to buy coffee – by using purchasing data to automatically replicate previous orders 23

TECHNOLOGY – it also provides coffee retailers with vital market data and access to customer preferences that help them reshape their business model. This quiet digital revolution is being seen across industries, helping all manner of businesses to increase their sales productivity, encourage consumer adoption, and improve their understanding of the buyer engagement cycle. Combining data analytics with decision support also helps brands to improve visibility and gain insight from their supply chain and operations. With procurement’s involvement, this can drive value across the business, including: • Supply innovation: Procurement can speed up the introduction of new products and reduce material costs by providing more critical insight into suppliers and their capabilities • Risk management: Procurement can prevent issues such as supply shortages or product disruption before they happen by providing better analysis of spend and supplier data across the business • Secure and sustainable supply chains: Procurement can help businesses have the right mix of 24

June 2017

ABOUT THE AUTHOR: DR. MARCELL VOLLMER As Chief Digital Officer for SAP Ariba, Vollmer helps customers to digitalise their supply chain. Prior to his current role he was Chief Operating Officer for SAP Ariba, helping to setup a startup organisation within the larger SAP Group. Before that he was Chief Procurement Officer at SAP SE, where he transformed the global procurement organisation towards a strategic, end-to-end driven organisation that runs SAP Ariba, SAP Fieldglass and Concur in the Cloud. He has more than 20 years’ experience in working in international companies, starting with DHL, where he delivered multiple supply chain optimisation projects.

suppliers and order schedules, which will ensure that all materials are delivered in a timely manner, with a high level of quality and in the right quantity. From cost savings to value generation Procurement is undoubtedly a different game than it was not only a decade ago, but even 12 months ago. The ultimate winners in this game will be those that embrace the ongoing digital transformation, reimagine their roles and use the plethora of technology, data and insights at their fingertips to run simpler and smarter.

N O T U R N I N G B A C K A S P R O C U R E M E N T G O E S D I G I TA L

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TOP 10 LARGEST TRANSPORTATION COMPANIES

TOP 10

T N S

SUPPLY CHAIN DIGITAL TAKES A BRIEF LOOK AT THE WORLD’S LARGEST TRANSPORTATION COMPANIES AND WHAT MAKES THEM TICK Writ ten by: NYE LONGMAN

TRANSPORTATION IS A busy, competitive industry affected by a number of risks and market fluctuations. And even the biggest players aren’t safe. Recent months have seen South Korea’s once mighty Hanjin succumb to bankruptcy, with many of its ships stuck out at sea, refused entry at ports across the world. So which companies have avoided this fate and consistently remained

at the top of their game? Data from Forbes gives us a clue as to what companies are leading the pack. Unsurprisingly, the lion’s share of companies in this year’s ranking hail from the United States of America, with notable exceptions from Germany, Japan and Denmark (no prizes for guessing which companies these are). So whether its parcels, people, or solutions - here are the ten largest transportation companies in the world.

TOP 10

10 MOLLER-MAERSK Revenues (2014) - $47.57 billion Home country: Denmark

The AP Moller-Maersk conglomerate is well known for its commanding position in the global transportation and energy sectors. With solutions covering container shipping, supply chain management, and ocean freight, the company is the go-to for a range of industries and businesses. Maersk recently acquired German-based shipper, Hamberg Sud.

June 2017

09 CENTRAL JAPAN RAILWAY COMPANY Revenues (2016) - $15.01 billion Home country: Japan

Operating out of the central prefectures, Central Japan Railway Company is the country’s largest and most profitable high speed rail company, which transported a record 289 million high-speed-rail passengers in 2009. Alongside its distinctive bullet train services, the company also operates a number of affiliates which include IT, hotels, construction, travel, and publishing.

07 UNITED CONTINENTAL HOLDINGS Revenues (2016) - $36.56 billion Home country: USA

To a lot of Americans, United American Holdings is better known through its daughter company United Airlines. Alongside civil aviation, the holding company also has interests in insurance and a range of business that cover fuel, marketing and business development. United Cargo has an extensive global network and offers ‘Express’ air cargo to over 200 cities in the mainland US.

08 FEDEX Revenues (2016) - $50.4 billion Home country: USA

FedEx is a mainstay of the global transportation industry and its position in the rankings comes as no surprise. While the company is well-known for providing a full suite of ground and air transportation services, it’s IT, marketing, and planning operations continue to make a significant contribution to its commercial success.

TOP 10

06 EAST JAPAN RAILWAY

Revenues (2016) - $25.74 billion Home country: Japan East Japan Railway started life as a state-owned rail company and was privatised in stages. The second Japanese high speed rail operator to make our rankings, JREAST is aiming to halve its carbon emissions by 2030 by building hybrid trains and converting to renewable energy generation.

June 2017

05 DEUTSCHE POST Revenues (2016) - $ 64.39 billion Home country: Germany

Deutsche Post DHL needs no introduction. The German postal and shipping company has been the mainstay of the transportation industry for many years and is set to continue its dominance as it acquires new companies and capabilities across the world. All told, the company offers e-commerce, parcel delivery, express, and supply chain management solutions.

04 AMERICAN AIRLINES Revenues (2016) - $40.18 billion Home country: USA

Whether you measure it by fleet size, revenue, passenger-kilometres flown, or number of destinations it serves, American Airlines is the worldâ&#x20AC;&#x2122;s largest airline. Winning Cargo Airline of the Year 2017, its cargo division provides over 100 million pounds of weekly cargo lift worldwide and employs nearly 5,000 people.

03 UNION PACIFIC Revenues (2016) - $19.9 billion Home country: USA

Dominating the cross-country rail freight market in the USA, Union Pacific deploys over 8,500 locomotives across 32,100 routemiles which span 23 US states. Tracing its origins back to the Pacific Railroad Act of 1842, the company has played a unique role in shaping the development of the worldâ&#x20AC;&#x2122;s largest economy.

02 DELTA AIRLINES Revenues (2016) - $39.64 billion Home country: USA

Another massive American air carrier, Delta Airlines is the second largest in the country measured across many variables. Delta Cargo offers a range of specialist transportation solutions, including perishables, pharmaceuticals, express, and high value items. Delta also offers a premium DASH service for high priority deliveries that reserves priority places aboard its aircraft. 33

TOP 10

01 UNITED PARCEL SERVICE (UPS) Revenues (2016) - $60.91 billion Home country: USA

United Parcel Service (UPS) delivers over 15 million packages per day to nearly 8 million customers, making it the largest delivery and supply chain company in the world. With over 200 aircraft and 100,000 ground vehicles under its control (not to mention countless others under contract) UPS is making great strides in green business, adding hybrid vehicles and bicycles to its fleets.

June 2017

Securing

A HEALTHY SUPPLY CHAIN Steve Sawyer describes the ways in which JLLâ&#x20AC;&#x2122;s healthcare supply chain has developed its own brand through honesty and trust Written by Nell Walker Produced by Denitra Price

Steve Sawyer Vice President-Healthcare, Supply Chain Management & Procurement, JLL Americas

Steve Sawyer leads JLLâ&#x20AC;&#x2122;s national supply chain management & procurement healthcare platform, managing $750+ million in annual operating and capital spend. His focus is on developing strong supplier and client relationships, securing top talent, reducing hard/ soft cost, developing measureable glide path savings and master planning.

JLL

JLL’s

presence in the healthcare sector may still be relatively new, but Steve Sawyer, Vice President for JLL’s Healthcare Supply Chain Management and Procurement services group, has been working hard behind the scenes to leverage 19 years of healthcare expertise in building a supply chain platform unrivalled in the industry. Sawyer joined JLL in 2015, and over the past two years has transformed the way JLL services healthcare clients. “The healthcare industry over the last five years has significantly changed,” he says. “Healthcare in the US has recognized they need help in nonmedical service areas. The industry is starving for one or a few integrated facilities solutions whereby a single company provides real estate and transaction management; the ability to manage facility and energy operations; construction; medical move transition management and capital planning; regulatory compliance; sustainability; supply chain management; and procurement platform services. JLL brings these integrated solutions into healthcare. In addition, the industry seeks new business contracting practices and supply chain innovations, which transform the old-to-new supplier base in hard, soft and purchased service areas.” According to Sawyer, the big difference in his department today compared to prior years is that his team is improving supply chain talent, expertise, and confidence. Hiring the right people who understand

June 2017

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supply chain, strategy – Steve Sawyer, Vice President-Healthcare, Supply Chain and industries has been his Management & Procurement, JLL Americas focus. “When a competitor in real estate or supplies shares feedback expands, the healthcare supply or want to know more about JLL’s chain team must work smarter, engagement in healthcare, we know harder, and deliver faster custom we have created market disruption facility contracting service solutions. and made a difference to catch the “That’s one thing our competitors attention of others,” he explains. – even our clients – do not always “Client confidence appears to be have the ability to do,” Sawyer growing too, as our team has been explains. “We are expected to asked to take on more contract provide tailored contracts meeting scope work in medical contracting current and new facility infrastructure areas. We feel when a client asks operational and capital needs.” JLL supply chain to review larger Aside from delivering custom scope opportunities that we have contracting solutions, JLL healthcare gained their trust and confidence in supply chain value focuses on showing savings and overall value.” openness, honesty, integrity, ethical The JLL healthcare business practices and transparency. How continues to expand due to new does the company prove it? The organic growth and healthcare supply chain team has publically company acquisitions. As its reach released information on its operations

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to secure trust, publishing several whitepapers with subjects ranging from cost saving success stories, to testimonials, to factoids regarding biomedical technologies that are not typically public knowledge. Sawyer states: “Creating, building and sharing best practices supports our focus and values necessary to strengthen our supply chain professionalism.” Sustainability is another passion his team has focused and written

whitepapers on, including ways to handle and dispose of medical and non-medical waste streams in a cost-effective way. Sawyer explains: “We spent a great deal of time fixing cost structures, discovering gaps in technologies, capturing waste streams, and sharing our story pre and post-solutioning. Suppliers have taken notice too. Water treatment is another sustainability area my team has focused on, and drives cost

Achieve Ambitions | JLL

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is the stepping-stone to building trust – Steve Sawyer, Vice PresidentHealthcare, Supply Chain Management & Procurement, JLL Americas

savings while reducing client and patient risk as it relates to water quality and reduce water consumption.” When asked how Sawyer ensures how his supply chain staff support the JLL healthcare brand, he is quick to emphasize the importance of that last word – ‘brand’. According to Sawyer,

the supply chain brand did not exist in prior years, and creating it was his primary focus upon coming on board as a new hire to JLL. Furthermore, he focused on the internal talent each member of his team contributed. “I wanted to create a supply chain presence that encapsulated our methodology or cadence. A branded solution that was repeatable, trainable, and measurable.” In addition, he wanted a brand his team could refer to supporting its strategic

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and tactical assignments; a brand inclusive of a ‘toolbox’ containing comprehensive documents, MS Word, Excel, PowerPoint templates, and industry KPI milestones necessary to drive and track an account supply chain approach and related contract savings. To begin training new hires, Sawyer starts by showing several healthcare images. The images include the following: an infant, middle-aged person, elderly person, cleaning a hospital area, mechanical image, a surgeon embracing technology, and an empty stretcher wheeled down a hallway. Sawyer goes on to say: “I then ask which image is the most

I wanted to create

presence that encapsulated our methodology or cadence a

– Steve Sawyer, Vice PresidentHealthcare, Supply Chain Management & Procurement, JLL Americas

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important, and does the imagery positioning play any significant role?” Most of the time his team selects the surgeon, cleaning, or mechanical area as the most important image. As for imagery positioning, he commonly hears his new hires say the images illustrate healthcare. According to Sawyer, “the most important image is the stretcher, because the stretcher could be you, a family member, or a friend”. Every dollar his team and the integrated JLL service platforms solution saves is a dollar’s worth of innovation healthcare can reinvest. This results in stronger clinical technologies, enabling faster quality of patient care and improved patient outcomes. The imagery in his training test, Sawyer goes on to say, “represents the life cycle. We enter as an infant, become middleaged and grow to become elderly, whereupon we rely on medical technology and surgeons, physicians and clinicians to care for us as patients and expect treatment in a healthy facility or work environment.” The imagery provides a purpose for

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“Creating, building, & sharing best practices

supports our focus and values” – Steve Sawyer, Vice President-Healthcare, Supply Chain Management & Procurement, JLL Americas

June 2017

USA

his supply chain team in support of the brand. Mentorship in his supply chain team is another focus of Sawyer’s, he explains. “Our team is virtual and supports hospital accounts across the United States. Getting to know our diverse team members and expertise begins as each member of staff is asked to complete an individual biography, and after sharing the team biographies I put into place a ‘Mentorship Program’.” Sawyer and his leadership team assign a mentor to a mentee, also known as a ‘buddy system’. He refers to this process as a way to extend a ‘virtual hand’ – a simple way to get to know each other. He also makes it a point to look outside of healthcare when it comes to hiring talent, in an opposite approach to his own professional background, as Sawyer himself has 19 years solely in healthcare. When asked why, Sawyer explains: “I believe expertise comes from individuals who are trainable, eager to grow developmentally and professionally, understand strategy, and have hands-on supply change management experience. Hiring supply chain professionals with these proven characteristics can be taught with healthcare vernaculars.” Sawyer and his team depend on technology to drive awareness, strategy, and detailed analysis to achieve successful outcomes. The analysis begins with understanding high-to-low spend per supplier per facility they service across an organization.

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Following the supplier categorization analysis, his team creates a master or strategic plan necessary to show all savings opportunities in a given timeframe. Spend analysis provides key KPIs and business case to confirm in-hand supplier and missing supplier contracts, while supporting current and future goods and service levels of work. As the plan matures, new discoveries and opportunities to close high-risk areas become more prevalent. Simplifying supply chain needs as much as possible is vital to Sawyer’s team; he refers to this as Project Harmony. “Project Harmony is a coined phrase I created for my team, that simplifies all the details inclusive of process mapping to technical tools,” Sawyer explains. “The phrase embraces the A to Z repeatable ‘toolbox’

solutions necessary to support our healthcare supply chain brand.” Sawyer goes on to say: “Trust begins with transparency, confidence and brand. As we share our solution and story with internal and external stakeholders, we believe basic requirements asked of our JLL healthcare supply chain industry has been satisfied. Our focus to be open and transparent is the stepping-stone to building trust. Frankly, this is a client demand and when we bring this value and practice into healthcare. “We constantly reassure our value as healthcare supply chain change management experts each time we exceed competing contracts and share our successes with our client, internal JLL integrated teammates, and strategic suppliers. Competition in our industry is welcomed and healthy.”

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Written by John Oâ&#x20AC;&#x2122;Hanlon Produced by Denitra Price

BACKING

BUSINESS IN THE

AMERICAS

T O S H I B A A M E R I C A B U S I N E S S S O L U T I O N S ( TA B S ) TOSHIBA GLOBAL COMMERCE SOLUTIONS (TGCS)

Managing and rationalizing complex domestic and global supply chains is saving money, creating efficiencies and delivering value to the enterprises that rely on Toshiba expertise

wo separate business units based in the USA serve Toshibaâ&#x20AC;&#x2122;s business clients in the Americas. We are not talking here about computers, televisions and the like which are the province of Toshiba Corporation but about the wide range of products, from color and monochrome multifunction printers, thermal barcode printers and digital signage solutions provided

June 2017

and marketed by Toshiba America Business Solutions (TABS) based in Irvine, California. TABS, and its sister company Toshiba Global Commerce Solutions (TGCS) in Research Triangle Park, North Carolina, which specializes in retail store technology and services, including point-of sale (PoS) software, hardware, are subsidiaries of Toshiba Tec Corporation, an

“WE ARE SEEING SIGNIFICANT GROWTH IN SELF-CHECKOUT VOLUMES AS RETAILERS MOVE INTO THAT SPACE” –Steven Mensch, Senior VP Global Operations at Toshiba Global Commerce Solutions

Steven Mensch Senior VP Global Operations at Toshiba Global Commerce Solutions Steven Mensch joined Toshiba Global Commerce Solutions in 2012 through the Toshiba Tec acquisition of the IBM Retail Store Solutions (RSS) division. Steven serves as Senior Vice President, Global Supply Chain Management, with responsibility for sourcing, global production procurement and indirect procurement, manufacturing, planning, global logistics, import/ export compliance, fulfillment and inventory. business.toshiba.com/usa/index.html

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S U P P LY C H A I N

independent company, publicly traded on the Tokyo Stock Exchange, in which Toshiba Corporation holds a little over 50 percent of the shares. Thus TGCS and TABS operate independently of one another, however as TGCS Senior VP Global Operations Steven Mensch indicates, in supply chain matters they work closely together: “We have been working across the whole operation to look for synergies between the two companies to make us more efficient ever since Toshiba Tec’s acquisition in 2012 of IBM’s Retail Store Solutions (RSS) division.” Mensch has supply chain ownership for TGCS. “We and TABS operate somewhat differently. TABS focus is the Americas while TGCS has a global focus with operations in 45 countries.” POS equipment, he explains, is a high volume, highly customized segment. And it is a growing one, despite the inroads of online purchasing which has only served to stimulate innovation as the ‘frictionless’ check-out comes closer to reality. “How do we make the process as frictionless as we can? We are seeing significant growth in self-check-out volumes as retailers move into that space. We want to make shopping more pleasurable, convenient, faster.” To meet demand TGCS currently uses a set of strategic manufacturing partners in Asia, shipping through Tier 1 strategic fulfillment/EMS partner, which currently takes on pick and pack fulfillment and late customization and configuration. “Utilizing this strategic partner, we are working toward a shift

business.toshiba.com/usa/index.html

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T O S H I B A A M E R I C A B U S I N E S S S O L U T I O N S ( TA B S ) TOSHIBA GLOBAL COMMERCE SOLUTIONS (TGCS)

in that model to leverage their overall strategic capabilities and in geo manufacturing.” This will also involve increasing the partner involvement in global logistics – which already has taken on inbound logistics support, providing them full visibility over incoming components, raw materials and finished goods – eventually outsourcing manufacturing all to the same partner. “It will allow us to reduce inventory, reduce lead times, keep a single touch on product and reduce our cost structure,” Mensch adds. There’s no doubt that the experience gained here will benefit the supply chain within TABS too, though it has a very different model having its

June 2017

own manufacturing and distribution facilities in the United States and Asia. “We cooperate with TGCS on supply chain matters,” says Steve Tungate, TABS’ VP and General Manager of Service, Supply Chain & Innovation. Together with VP of Operations Sue Wilson and Steven Mensch they form a supply chain triumvirate that works to create better solutions for the customer and the business alike. The mature and very competitive market for printers and copiers is still the backbone of the TABS business, though the digital signage and thermal barcode printing segments are growing fast. “That means we have to manage a much

S U P P LY C H A I N

Sue Wilson VP. Operations at TABS

With the company since 1988, Susan Wilson currently serves as vice president, Supply Chain Management for Toshiba America Business Solutions, Inc. (TABS). In this role, she is responsible for procurement, import/export, inventory control, transportation, customer service and distribution.

business.toshiba.com/usa/index.html

T O S H I B A A M E R I C A B U S I N E S S S O L U T I O N S ( TA B S ) TOSHIBA GLOBAL COMMERCE SOLUTIONS (TGCS)

more diverse supply chain than in the past with the mature products,” says Tungate. “TGCS and TABS have a very different business model today and we are working toward the best solution,” Wilson agrees. “For example in the last couple of years we have been negotiating on shipping rates, lanes and partners. Our supply chain is beginning to come together as we negotiate with vendors to leverage our volumes.” A parallel challenge has been the integration of ERP systems across the Toshiba Tec businesses. When the former IBM Retail Store Solutions (RSS) division was acquired it migrated to Oracle, however the version adopted by TGCS was different from TABS’ legacy

June 2017

version, and integration is an ongoing challenge. Rather than wait for a large and disruptive migration to the common system, we decided to take advantage of the areas that would deliver the best immediate result, says Steve Tungate: “We are now in the process of building a common distribution network for the business, and that will be done well before we are done with system integration.” At the moment the focus is on inbound logistics, and already some TGCS products are being fulfilled out of the print

S U P P LY C H A I N

“WE HAVE ESTABLISHED A CORE SET OF TRUE STRATEGIC PARTNERS” –Steven Mensch, Senior VP Global Operations at Toshiba Global Commerce Solutions

Q2-Q3 2016 e-STUDIO Line

business.toshiba.com/usa/index.html

T O S H I B A A M E R I C A B U S I N E S S S O L U T I O N S ( TA B S ) TOSHIBA GLOBAL COMMERCE SOLUTIONS (TGCS)

group’s supply chain. It’s a process of opening interfaces between the two companies that are simple enough from an IT perspective, achieving economies of scale well ahead of complete integration which will be achieved in 2019. Oracle integration is not merely an internal project. TABS differs from TGCS; while the latter deals with large global customers of the order of Walmart for example, no single customer of TABS accounts for more than two percent of revenues. Its route to market is through its own stores and an independent distributor community numbering more than 200 in North America and many more in

June 2017

the Latin American countries. All of these have to be brought onto the new system as well. “Everything we do is designed around beneficial change to our customer,” insists Tungate. “Gaining efficiency in our supply chain helps the customer because it improves our profitability and allows us to invest in our business.” That principle informs the relationship between TABS and its vendors, continues Sue Wilson. “We select vendors who are not just going to give us the cheapest price, but have the experience and the drive to help us find the right solution.” This partnership model brings in best supply chain practices

S U P P LY C H A I N

Steven Tungate VP/GM Americas, Service, Supply Chain & Innovation at TABS

R. Steven Tungate is responsible for overseeing the companyâ&#x20AC;&#x2122;s innovation, technical support, service and supply chain management organizations. In this role, Tungate is charged with efficiently managing Toshiba America Business Solutions (TABS) complex supply chain, which includes procurement, import/ export, inventory control, transportation, customer service and distribution.

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by leveraging their experience and wider customer base. It is the best way to keep abreast of change in this volatile marketplace, she believes. Innovation is in Steve Tungate’s job title and he says it is the fun part of his work. “We aim to be the best and easiest company to do business with and we have always been out in front of the competition on that metric. A lot of innovation is taking place in the operational supply chain and that is what enables us to continue to improve our overall position in the market. We know we are not the biggest so we try to treat our customers the best.” For him, innovation means the evolution of corporate strategy, not just in supply chain but in every department. Innovation is a frame of mind,

and all the tools in the box, whether Six Sigma or lean processes, are just there to achieve business improvement. Ideas should be sought at every level, he says, and as an illustration he cites a project that recently closed. An employee at the South Dakota manufacturing facility raised the question of why the climate control equipment had to function all of the time across the entire plant even in rooms that were not in use. His innovation project was a system to shut off the fans when rooms were not in use: it saved the company $8,000. Tungate says. “Although these savings are very small it is a great example of a culture of innovation that starts from the top and involves all associates. We highlight this project because we want

“EVERYTHING WE DO IS DESIGNED AROUND BENEFICIAL CHANGE TO OUR CUSTOMER” –Steven Tungate, VP/GM Americas, Service, Supply Chain & Innovation at TABS

business.toshiba.com/usa/index.html

everyone to know that they can make a difference. If they need skills support or resources to implement their idea, it will be there for them,” adds Sue Wilson. “There are green belt project leaders throughout the organization, and even if it’s just putting in hand dryers in a restroom everyone at the plant gets involved in the project.” Many such innovations arise from the shop floor, others from middle

June 2017

management, and the highest value ideas are launched at board level. “A couple of years ago our CEO asked us to look into IoT technology to better monitor, manage and serve our installed base, which is in the hundreds of thousands,” Wilson continues. “We developed a solution that allows us to do things we could never have considered even a few years ago.” Starting with a strategy

S U P P LY C H A I N

and concept a joint team developed the Toshiba industry exclusive e-BRIDGE CloudConnect tool. It allows service providers to manage devices and free up resources with remote meter reads, firmware updates, and toner alerts to trigger automatic supplies deliveries. Simple to activate, it monitors a deviceâ&#x20AC;&#x2122;s status, security

setting and the like and if they deviate from the customerâ&#x20AC;&#x2122;s specification it reconfigures them without human involvement, and importantly, without delay or down time. Does that look like a deviation from a purely supply chain story? For Sue Wilson and the two Stevens, there are no such silos.

business.toshiba.com/usa/index.html

A N WA R A N S A R I

ANSWERING THE

PROCUREMENT CALL Written by Wedaeli Chibelushi Produced by Charlotte Clarke

WE SPEAK TO ANWAR ANSARI, AN ACCOMPLISHED PROCUREMENT AND SUPPLY CHAIN LEADER, ABOUT THE TRANSFORMATIONAL JOURNEY OF PROCUREMENT IN THE TELECOM SECTOR - THE KEY FACTORS THAT LED TO A SUCCESSFUL STRATEGIC SHIFT OF THE PROCUREMENT AND SUPPLY CHAIN, THE FUTURE OUTLOOK AND THE ENVISIONED, VITAL ROLE OF PROCUREMENT IN CREATING GREATER VALUE FOR THE BUSINESS IN THE CAPACITY OF A STRATEGIC PARTNER

June 2017

ASIA

r. Ansari has 22+ years of rich and well-rounded, local as well as international experience in Procurement and Supply Chain domain with profound expertise in areas of strategic procurement, supply chain & turnkey contracting, logistics & vendor management. Having led a team of 50+ procurement professionals across country, he managed the procurement portfolio of 68 Materials Group (2700 Materials) from 100+ suppliers locally and globally located in USA, UK, EU, China, Turkey and Gulf countries and handled overall group spend management programs worth US$500M+. His professional prowess, complemented by this powerful leadership persona led to the successful implementation of best practices in strategic sourcing and supply chain, which resulted in a track record of exemplary contributions towards organizational profitability through substantial and sustainable savings, company-wide. Supply chain transformation expert Anwar Ansari, when asked about

the driving force/motivation behind his unwavering resolve to make his latest challenging undertaking successful, replies: “I enjoy the thrill in working with a team of dynamic professionals to analyze challenges, devise innovative solutions/ approaches, strategically plan the change management and implement projects which bring visible results to the organizational performance. There is nothing more motivating than the sense of fulfilment that comes from making tangible contributions that add real value to the business. Being entrusted to lead the massive, transformative change itself is very rewarding. No doubt, the responsibility of delivering against challenging timelines is not an easy task but like they say, ‘the best things in life don’t come for free. Even though it is what all procurement professionals dream of!’” he says jokingly. Mr. Ansari also described the three key principles, which he believes, have served as a constant stimulus and driven his work every day. They are the Three F’s: Function, Flexibility and Freedom.

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A N WA R A N S A R I

FUNCTION: being a valued resource and go-to person for all facets of the organization. FLEXIBILITY: able to work methodologically as well as independently/ unconventionally, by coming up with innovative solutions. FREEDOM: to perform tasks and responsibilities with complete authority and empowerment. “What I like best about this role is that it allows for interaction with professionals and subject-matter experts at different levels of the organization and across all functional areas. It provides an opportunity to learn new things about the company, business, market etc., every day, which keeps one striving to search for even better solutions to cater to the business needs. “It isn’t just about performing hard-core procurement role and allied functions. What makes the role truly meaningful is steering the business by being strategically aligned and serving like a commercial expert who engages all the other business areas day in and day out.”

June 2017

FORMULA FOR A SUCCESSFUL STRATEGIC SHIFT While recounting his experiences, Mr. Ansari highlighted the factors which according to him are the most crucial determinants for a successful strategic shift in Procurement and Supply Chain. The first is, leadership’s vision, mindset and commitment: “This factor in my opinion cannot be emphasized enough,” he says. “A progressive mindset and dynamic approach at the top are the key ingredients for keeping an organization agile and abreast with the transformative advancements and remaining ahead of the competition. Commitment of the top management is critical for paving the path towards a successful reform and has a far-reaching impact.” The second is strategic partnership. Mr. Ansari continues: “Focusing on revamping the procurement practices and systems is only one part of the transformative effort. What brings real results is creation of a true strategic partnership with the business. Especially when it comes to a function like procurement,

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ASIA

which for a very long time had been categorized as merely a support function, it is important to change the perception of procurement’s role by actively participating in the business decisions and supporting the business in achieving its strategic goals by offering unique solutions. “Procurement needs to be proactive so as to treat its internal customers the same way that the business treats

be focused upon is the relationship with vendors. “Unless we start thinking of vendors as our partners, we can’t gain long-term benefits for the business,” Mr. Ansari states. “It has to be a win-win situation which leads to sustainable success.” AN OUT-OF-THE-BOX APPROACH Departing from tradition is another strong aspect of Mr. Ansari’s approach

NO MATTER WHAT HAPPENS, WE SHOULD KEEP GOING! REVISE THE PLANS BUT NEVER CANCEL ANY. SUPPLY CHAIN PROFESSIONALS NEVER QUIT! – ANWAR ANSARI its external customers. We need to be able to preempt the needs of our business partners and keep ourselves updated with the advancements in the industry, so as to offer the best possible solutions to meet their requirements. Instead of just fulfilling orders/requirements, we need to sell our solutions to the business and strengthen our strategic role.” Another aspect which needs to

to procurement leadership. “I strongly believe that we, as procurement professionals, need to take a revolutionary approach and alter the way we had been traditionally thinking and operating,” he explains. “Enhancing efficiencies of the predefined methodologies can only guarantee incremental improvements. If we are to provide the business with a competitive advantage, we need to

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A N WA R A N S A R I

500

Million The amount of PROCUREMENT VOLUME in USD

June 2017

ASIA

take a more innovative and long-term approach aligned with the business strategy and future requirements.” IT We have seen how technology has revolutionized all fields within business and procurement is no different in this regard. While shifting to automation is a challenging task indeed, yet, it is one of the most important factors which bring great benefits in the longer run. Mr. Ansari points out that it is not just the efficiency which is improved and enhances the performance, but more so, the valuable insights which the data and information provide for strategic decision making. Whether it is monitoring the inventory levels, gauging the effectiveness of the sourcing channels or supervising the timeliness of the deliveries, technology and data are an absolute necessity, providing actionable business insights. CHALLENGES Asked about the challenges faced as a procurement leader, Mr. Ansari answers: “Heading such a sensitive and strategic function, especially

in a sector like Telecom, where the rate of technological advancement is most accelerated and pronounced, is a challenge in itself. Nevertheless, the hardest thing about this role has been sparing and adjusting time for self-initiated projects. You can get so busy with core and other related jobs vis-à-vis targets that often those personal projects having great potential to become a turning point in your practice as well as for the organization are pushed aside. Besides this, at times, understanding all of the interdependent relationships may be challenging, it is definitely one big team effort here; everyone has a role to play.” ERP SYSTEM: Mr. Ansari goes on to describe how he had an opportunity to work for an organization where post-privatization, the management’s priority was to stay abreast of market and business trends and above all, the technological needs. They started implementing state of the art of SAP-ERP back in 2007 in phases (the biggest ever SAP deployment in the country with core and strategic modules) – the initial

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A N WA R A N S A R I

one being material management, followed by other departments including but not limited to Finance, HR, BI, NLM/ NML and others. This enabled optimum visibility and integration together with managing the business and automating many back office functions related to technology, finances, services, operations and human resources etc. E-PROCUREMENT Aiming for a paperless and hassle

WHEN YOU COLLABORATE EFFECTIVELY WITH YOUR SUPPLIERS, THE ENTIRE SUPPLY CHAIN PROCESS, INCLUDING MANAGING INVENTORY AND ACQUIRING GOODS AND SERVICES, WILL RUN SMOOTHER AND BE MORE EFFICIENT â&#x20AC;&#x201C; ANWAR ANSARI

free working environment, swift transparent transactions and processes, in-line with best practices and International standards, Mr. Ansari has led and implemented various electronic applications and processes pertaining to procurement. This, namely, consists of digital documents management system and documents archiving, stores automation (for improved material management; end-to-end/concurrent visibility of stores), and e-file/office as

ASIA

well as SAP based e-procurement, covering Supplier Relationship Management (SRM), Contract Lifecycle Management (CLM), Spend Performance Management (SPM), Supplier Lifecycle Management (SLC), Material Data Master (MDM) and other functional modules. This resulted in saving a lot of time and resources in addition to providing the above-mentioned benefits

suppliers, which can boost the performance of the organization.” • Invest in supplier relationship management software. • Demonstrate to your suppliers that you’re a good customer. • Curtail number of vendors/ channels and work with optimum/ consistent performers only. • Keep lines of communication open.

SUPPLIERS SELECTION Supplier Relationship Management (SRM) consists of managing and planning constructive interactions with the third-party vendors that supply and support your business with goods and services. This is an important part of both SCM and effective business management. “When you collaborate effectively with your suppliers, the entire supply chain process, including managing inventory and acquiring goods and services, will run smoother and be more efficient,” Ansari explains. “Following four steps are a key to building relationships and partnerships with your

THE FUTURE OF SUPPLY CHAIN Procurement as a function is on a continuous journey toward greater importance and influence. As it has already evolved beyond its transactional and back-ofﬁce roots, the role is becoming more and more of a strategic player, focused on total value delivered including supporting revenue goals, reducing total cost of ownership and improving quality and integration of supply, taking on increasing enterprise responsibility of the end-to-end, source-to-pay process. “In a nutshell, it’s no more merely a Supply Chain but becoming value chain already,” Mr. Ansari concludes.

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Written by Nell Walker Produced by Charlotte Clarke

We Negotiate, We Redefine, We Spearhead & We Navigate our Clients Transformation

Head of Procurement (India) at Cushman & Wakefield, Sanjeev Singh, describes his departmentâ&#x20AC;&#x2122;s tireless work to build and retain the best possible supply chain network and secure success

roperty consultant Cushman & Wakefield is facing explosive evolution. As part of an industry which is ever-relevant and in-demand, the company has experienced huge levels of growth â&#x20AC;&#x201C; most significantly in Asia. India tops the list of nations which have enjoyed the biggest boost, with Cushman & Wakefield expanding its employee numbers in the nation by at least 500 in 2017, enabling it to focus on project management and leasing transactions. There are already 11 offices across India, housing an ever-increasing team of 2,800. Of course, any company operating in the property sector requires a complex logistical system that demands the highest levels of organisation and talent. Head of Procurement (India), Sanjeev Singh, is no stranger to the complexities inherent in the supply chain industry;

June 2017

after nearly 10 years serving as a Major in the Indian Army, Singh delved into the corporate world of logistics, and has spent another decade focussed on that. Based in New Delhi, Singh is responsible for heading up the supply chain management sector of Cushman & Wakefield, presiding over contracts and compliance, and as a member of the Governance Council he is in charge of representing the facilities and property management side of the business within India. The ongoing tasks Singh faces are numerous and wide-ranging, truly bolstering what the business offers. He must provide strategic direction and leadership for his team, continuously build up a network of suppliers, and partners, ensure the most effective delivery structure, and work closely with all relevant alliances. â&#x20AC;&#x153;We talk about this sphere of

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C U S H M A N & WA K E F I E L D

“First you have to build a strong team, and then create a strong delegation matrix which gives all members both freedom and a purpose”

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influence,” he says. “It’s really about how we prioritise, how we put our stakeholders first, but also how we think about supporting our company. We really introduced this as being the most trusted business advisor, and while making an attempt to realise this we also have to take up the guardianship responsibility. And if you’re not guardians of the company, you’re not really being a trusted business advisor, either. “To be able to perform basic tasks fast, we have to adopt and develop the technology side of procurement, so we embarked on the journey of creating a managed marketplace platform. Like it or not, digital technology is taking over our lives and business processes – digitalisation is here to stay. Technology is transforming the way we work, discover, connect, and collaborate with our trading partners. It allows access, insights, and intelligences that enable us to make better or more informed decisions.”

The importance of employees Singh attributes the success of Cushman & Wakefield’s procurement

team in India to various necessary qualities, starting from within. Hiring the right people is vital, he states, and is part of what has changed the game for the business. “People are as critical to procurement as the customers. It is people, not computers, that drive strategies. “First you have to build a strong team, and then create a strong delegation matrix which gives all members both freedom and a purpose,” he explains. “This matrix style of organisation with financial limits, high competency, and uniform processes allows employees to make decisions quickly and efficiently.” Cushman & Wakefield goes out of its way to hire the absolute best and best-fitting staff, offering the finest training and workshops available to ensure staff are up-to-date on industry trends and the relevant requirements for their job roles. “For training and skill enhancement, I believe in cross-

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C U S H M A N & WA K E F I E L D

functional exposure, which involves working collaboratively with stakeholders,” Singh states. “We also send employees to industry forums on their specific subjects; these things are key for skill enrichment. Freedom and flexibility at all levels with the team, empowerment, and what we call ‘external breathing’ are pivotal. The collaborative relationships we have with our staff bring everyone closer together.” For Singh, organised and streamlined in-office processes allow for an organised and streamlined supply chain operations: “The supply chain management functions depend hugely on the supplier and manufacturer community outside the organisation,” he says. Logistics is built up of many streams and moving parts in many directions, and in Singh’s words, “Procurement is the heart of the organisation and to the supplier community, so it’s all about the win-win partnership for and with them. Therefore it becomes imperative for us to be very agile. “Everything in the procurement and logistics world moves very quickly,

June 2017

and people have to know how to prioritise and manage the dynamic environment. They need to be able to work as a team as well as alone, have the ability to stand up for themselves, and challenge themselves.”

Supplier relations The importance of suppliers is paramount for any business, but for Singh and his team, suppliers are considered partners, and collaboration between them is sacred. “The clients you are servicing are so important, and suppliers are an extension of your team,” he says. “Good suppliers are quickly identified by how capable they are, and they are the ones we keep close for the entire journey of supply chain management.” Singh is openly passionate about this part of his job: acquiring and keeping close the best suppliers, treating them with a respect often only reserved for customers, and forming a trusted network. For a business like Cushman & Wakefield, the significance of a strong logistics network cannot be underestimated. Singh believes that bringing suppliers

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close, looking closely at industries, and moving ahead with added value in the end result “makes Cushman & Wakefield very strong and very different from the competition”.

Procurement as a business Clients, customers, and stakeholders continue to raise their bar on expectation, which is continuously evolving and redefining the role of the procurement officer. In today’s dynamic business world, the procurement officer holds a role that is focussed on business enablement. Procurement is evolving at breakneck speed, thanks to technology; transformation is the order of the day, as enterprise procurement organisations are no longer just tactical teams focussed on cost reduction, but strategic entities that drive enterprise-wide value and fulfilled compliance requirements by contacting a handful of suppliers through a tendering process. What makes this successful is treating the procurement function as its own business, rather than simply an additional cost line; shining a

“Good suppliers will quickly be identified by how capable they are, and they are the ones we keep close for the entire journey of supply chain management”

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spotlight on the supply chain has been a boon for Cushman & Wakefield.

Product versus service While it is easy to define the factors that drive the cost of a product such as materials used, components, overheads, labour, and transportation, analysing the cost of a service is more complex as it involves a deeper understanding of the supplier’s process. This can however be achieved by: • Mapping the supplier process through a detailed breakdown of the system • Allocating costs to each activity with a combination of information from job boards and indicators of labour prices • Considering the overheads gleaned from annual reports. While it’s true that the information gathered is not fool-proof, it is a handy estimate of productivity. “We work with suppliers as business partners, invest time in innovation and technology adoption of new

ideas, and all of that enhances supply chain management as a business,” Singh says. “This cost becomes a business liver for an organisation, and when that cost gets placed where it’s supposed to be, your business can move onto the next level.”

The future 2017 is shaping up to be a great year for Cushman & Wakefield, according to Singh. He is expecting big changes in the procurement delivery process and perspective, and to create new market strategies for target industries. In terms of technology, the company’s most recent innovation, which is now ready to create huge value in the business, is the managed marketplace named MarketC&W: a one-stop solution platform for Cushman & Wakefield’s clients and customers. “We have built an extensive catalogue with over 100,000 products across 100 product

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categories from more than 500 brands,” Singh explains. “It allows us to see the best cost efficiency, transparency, visibility, and improved turnaround time. It will have everything that the client needs, including business intelligence on opex and capex spend category management, and MIS dashboard across various categories as well. “This initiative will give our client a huge advantage in consolidating the vendor Number of employees base, showing real-time at Cushman & Wakefield analytics, accurate prediction and improved forecasting, transparency of all processes, billing accuracy, and inventory. This solution allows much-needed account and operating flexibility of choice in the system.” The future of the business and growth engine for Cushman & Wakefield certainly looks promising. Singh concludes: “The client and the market can expect much more than standard service from us.”

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Schneider Electric Pakistan:

DIGITALLY ENABLED Written by Dale Benton Produced by Charlotte Clarke

Schneider Electric Pakistan has digitally transformed its supply chain processes to reduce costs, lead times and, ultimately, better serve its customers

chneider Electric is a company that prides itself as being the global supply chain specialist in energy management and automation. The company develops connected technologies and solutions to manage energy processes in a safe, reliable, efficient and sustainable way. But to be a global specialist, serving customers in different regions worldwide, the company needs to have an efficient and lean supply chain. Thatâ&#x20AC;&#x2122;s definitely the case for the Pakistan arm of the company, as the company has recently undergone a major transformation project that looked to streamline its entire supply chain, realising cost benefits and providing an overall greater experience for its customers. The major benefits that the project has brought upon Schneider include lesser lead times, a more efficient production

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process and overall cost reduction throughout the entire supply chain. Before any transformation could happen, Owais Ahmed, Executive Officer Supply Chain at Schneider Electric, had to evaluate key operational units working under the umbrella of supply chain in Pakistan. Carrying expertise in Logistics division of supply chain, Owais broke down costs associated with the importing of products from overseas as well as analysing where the lead time between the product sitting in the factory and being in the hands of the customer could also be reduced. â&#x20AC;&#x153;Once the product is imported to Pakistan, the landing cost of the product and the charges, including customs and transportation, all needed to be streamlined,â&#x20AC;? says Ahmed. It was through this desire

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OWAIS AHMED

Executive Officer Supply Chain Certified supply chain professional with experience in managing projects, trade and handling operations of an organization. Currently managing supply chain and operations at Schneider Electric Pakistan (Pvt.) Ltd.

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to streamline those costs that Schneider made the decision to prioritise sea imports over air, with the costs associated with sea import being significantly lower. “This was a transformation that Schneider hadn’t undertaken before,” Ahmed adds. Transformation of importation The transformation of the supply chain was not an overnight process. Ahmed had previously worked at Schneider back in 2013, when the company set out specific goals of reducing lead time, working on contract formalisation and regularly monitoring systems in order for the production team to be able to be updated at any time. Ahmed returned to Schneider and the goal remained the same as he now managed the entire import and somewhat export of Schneider Electric Pakistan. “I am in constant contact with suppliers from France, China and other global partners following up with them about the orders placed by our upstream supply chain team. My task is getting the products

ready, arrange logistics and deliver them in the hands of production/ assembly unit in time,” he says. With the transformation already taking shape during Ahmed’s first tenure, the overall timeframe for the project has been just over three years and Ahmed can already point to significant benefits to the business as a result. Lead time, production efficiency (including import and assembly right through to delivery) and of course reduced costs are the major benefits that Schneider can reap as a result of this transformation, but for Ahmed these benefits serve a greater purpose. “Customer satisfaction. Time efficiency and reduced costs impact not only Schneider Electric Pakistan but the customer themselves,” he says. “When you reduce lead time, the customer is satisfied. When you reduce operational costs involved, you bring down the cost of the overall product and that is beneficial to both the organisation and the customer.” The benefit in creating a more efficient process and in turn a more

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efficient supply chain needs no explanation, but Ahmed points out that there is a line in which these three elements (time, efficiency and cost) cross one another and it is this gap in which the supply chain industry as a whole is currently focusing. Technologically enabled For a transformation of this scope to happen, the company must look at its current technology software and processes. This is where being part of the larger Schneider Group has enabled the Pakistan arm to evaluate its own technological processes and make improvements. This included the upgrading of its previous Oracle software to a SAP Software solution. Through this software, Ahmed and the supply chain department have found their technology interface to be much more streamlined and efficient. “In upgrading our IT and technology software we have definitely better enabled our processes, be it inventory or assembly, through this digital transformation,” he says. “The role of technology and the role of software has had a big impact on the supply chain. Through the deployment of this new software we were able to set a higher level of standard.” While better serving vendors, suppliers and customers is one goal, the main ambition behind the transformation has been the reduction of the costs involved throughout every step of the

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supply chain process. By upgrading technology processes, Ahmed has been able to be much more “on the ball” on the status of orders through new monitoring capabilities. With a keen focus on reducing the costs, one can be forgiven in thinking that there’s no real pleasure beyond monetary. “As supply chain practitioner, it gives us great joy to uncover and enable these improvements. It really helps on the day to day running of the process as well,

Voltage Transformers up to 24kV • Single Phase • Three Phase • Screened (up to 12kV) • Control Power Auxiliary Transformer Current Transformers 0.66 – 36kV • Indoor and Outdoor applications (only applies to Ring type) • Bar primary • Block type - Screened • Ring type

which is always a bonus,” he says. With technology, every day is a new day and a new wave of innovation. For Schneider’s Pakistan arm, being joined with the larger Schneider Group allows Ahmed to remain on his toes when it comes to the latest technology developments that could transform the supply chain industry in Pakistan. “Every new development is shared to us and we get training provided to us free of cost,” he says. “With regards to technological developments its very beneficial. Although we are here

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“I am in constant contact with suppliers from France, China and other global partners following up with them about the orders placed by our upstream supply chain team. My task is getting the products ready, arrange logistics and deliver them in the hands of production/ assembly unit in time”

in Pakistan, through this training and advanced linkage between our international organisation, we are much more knowledgeable of the developments, the trends and the pace of the technological demands of the supply chain industry as compared to our competitors.” As with any technology, particularly technology that has already been adapted by the group in its global processes, the key is in adapting it further to allow the organisation to grow accordingly in Pakistan.

OWAIS AHMED Executive Officer Supply Chain

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A major part of the make-up of Schneider’s supply chain is it’s sourcing. Through this transformation, Ahmed along with sourcing department has refined the company’s strategic sourcing methods. This all ties into the overall goal of reducing lead time, reducing the costs and better serving the customers. When an order is made, Ahmed and the supply chain department will check the region in which the order is made from and immediately look at alternative products (to the same standard and specification) located in different regions, ones that may have much quicker and cheaper lead times. This process is enabled through a wide range of vendors and suppliers that Schneider has amassed locally in Pakistan. “For example, the lead time of a product coming from the USA, taking into account clearance and transportation, is around 40-45 days,” says Ahmed. “Compare it to another supplier more locally. It’s the same product specification and quality, but it takes no more than

18-20 days to reach our factory and be ready to ship out to the customer, which in domain of supply chain is a greater reduction of lead time.” To the future With this transformation already considered a key success to the company, Ahmed has his eyes set firmly on the next step, a new way in which the company can grow to be better for the customer. This next step, he feels, is one more focused on sustainability in the supply chain. “In the supply chain industry, every department operates separately and individually, however, linked through a chain which keeps every department bonded with each other” he says. “With the passage of time we are beginning to see a number of departments operating under the umbrella of supply chain. Similarly, more chances are created for practitioner like me to create sustainability and tap the gaps amongst different operational units. For me, the next transformation will be building and developing sustainability into that supply chain.”

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BEYOND “CASH AND CARRY” Written by Nye Longman Produced by Richard Durrant

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HOW METRO CASH & CARRY IS TRANSFORMING ITS OPERATIONAL MODEL TO DELIVER MORE FOR CUSTOMERS

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The customer is not the king anymore,” says Patrick Dittli, METRO Cash & Carry’s Global Director of Supply Chain Management. “They have evolved into the master of the universe, standing in the middle of a multidimensional fulfilment matrix. The customer can choose where they want to get the product from; there’s full transparency over the price and full transparency about availability.” About two years ago, METRO Cash & Carry made the decision to introduce a new operating model. Deploying a new operating board, backed up by strategic focus on digital and technological innovation and , while implementing a proactive supply chain strategy,

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the company is unlocking value for the next generation of customers. We drill down to the core of this transformation and speak to one of the men making it all happen.

TRANSFORMING OPERATIONS “The way the entire value chain has been built in the past is not configured anymore to meet the needs of the new environment,” Dittli says. “There are profound impacts on supply and value chains because we are sitting on physical assets built on the traditional way of fulfilling a traditional customer need up to the supplier.” METRO Cash & Carry is a sales division of the METRO GROUP Wholesale and Food Specialist

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Number of employees at METRO Cash & Carry

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Company (W&FS Co.). Headquartered in DĂźsseldorf, Germany, METRO GROUP W&FS Co. is a leading international player in wholesale and foodservice distribution. With its sales lines METRO Cash & Carry and Real as well as its other associated companies, METRO GROUP W&FS Co. operates in 35 countries and employs more than 150,000 people around the world. In 2015/16, METRO GROUP W&FS Co. achieved sales

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of around â&#x201A;Ź37 billion. The company provides custom solutions to meet the regional and international needs of its wholesale and retail customers. Through its Metro and Makro, METRO Cash & Carry captures the global food and non-food wholesale market, offering products and services to customers ranging from small independent bakeries, to elite hotels and restaurants. Eager to deepen its value offering

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“Eager to deepen its value offering to a rapidly evolving, segmented customer base, METRO Cash & Carry is transforming its operational mode”

to a rapidly evolving, segmented customer base, METRO Cash & Carry is transforming its operational model. One key step on this ongoing journey has been increasing autonomy amongst individual countries. Dittli explains: “The value is created in the countries. The new operating model therefore gives more autonomy but also responsibility to the countries to realize these values. The mandate of the head office therefore changed

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Touching lives, improving life From beauty and health to home and beyond, P&Gâ&#x20AC;&#x2122;s brands make every day just a little better for billions of consumers around the world. www.pg.com

Available at

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and consists of supporting the countries in delivering these values. “They can define the strategy and are responsible and accountable to deliver that. Their local strategic focuses are the base and is the local strategy document that defines how we want to harvest and leverage the priories and values of the customers.” The classical wholesale model continues to be METRO Cash & Carry’s backbone, he says, but the company is building up constantly its food delivery and services arm, “one of the biggest common denominators coming forward”. METRO Cash & Carry is also re-examining how its distribution network is structured, particularly on the fulfilment side. By building dedicated fulfilment centres, the company is further improving its response times to customers through increased proximity. Alongside expanding its own assets, the company has recently acquired a couple of competent and leading food service distribution (FSD) companies, including one key food supplier of upmarket restaurants in the Far East.

Technology is also playing a critical role and data itself is being fully realised as a commodity. “Money used to be the fuel,” Dittli explains. “This has been replaced by a new currency: data. Technology managed in an agile way has become the key decisive enabler. Data has become the decisive element to make money or not, and technology is the key fundamental backbone to make that happen.” Sustainable development Even before METRO Cash & Carry’s transformation, the company was well known for doing business sustainably, both when it comes to the environment and other businesses. Closer collaboration with suppliers has been central to this, with the aim of promoting a virtuous cycle. The company’s dedication has paid off, with Coca Cola or Procter & Gamble recognising METRO Cash & Carry’s efforts with a muchcoveted Supplier Excellence Award for Excellence in Collaboration. “The suppliers realise that how we respond to these needs is about to change.

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This is a win-win situation from us – we cannot do it on our own and need to get them on board,” Dittli adds. The attention METRO Cash & Carry pays to environmental protection has positioned the company as a global leader in its industry. Notable aspects of its comprehensive CSR strategy include strong safeguards against slavery in the supply chain, FSC-certified packaging, and the use of sustainably farmed food. The

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use of a traceability app that enables customers to drill down to the fine details of food purchased in store, is one example among others It is little wonder that the METRO GROUP has been recognised, for the second year running, by the Dow Jones Sustainability Index as an “industry group leader” in the Food & Staples Retailing category. “Once you buy a fresh fish in METRO stores in Germany, they have a bar

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code attached,” Dittli explains. “You can take your smartphone and scan that barcode to know where this fish comes from – you download the number and you can know the name of that boat that has caught the fish and where it was caught.” Having demonstrated its ability to respond to changes in the market proactively, METRO Cash & Carry has laid the foundation for fundamental change that will bring benefits

for customers, partners, and the business itself. Backed up by its commitments to serve customers’ needs and protect the environment, the company is sure to lead its industry for the foreseeable future.

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DIGITALISATION DONE THE SAP WAY Written by Nell Walker Produced by Richard Durrant

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SAP, known industry-wide for its enterprise software capabilities, has evolved into a shining beacon of digitalisation. Darren Hunt and Laurence Leyden explain what this means for SAP’s vast global network of customers

ummer in the corporate world means, among other things, an increase in events. As businesses shop around for services, other organisations take the opportunity to not only showcase what they have to offer, but to educate. For SAP, that is the role of its Financial Services Forum. This event, run by the multinational software giant, is now in its sixth year and has had a serious impact on the industry. Running between the 4th and 5th of July at Grange St Paul’s Hotel in London, it focusses on financial and insurances services, and on providing any and all information a customer might need to update its digital processes. “There’s so much noise today around digital transformation, how important it is, what it is, and what it’s not,” says Laurence Leyden, General Manager, Financial Services,

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EMEA at SAP. “We host an industry debate where we examine what impact digitalisation has already had on the industry and what new, emerging opportunities it creates for our customers. Perhaps more importantly, we wanted to make digitalisation very real for our customers’ specific functions within their financial businesses.” “The event is a person’s or organisation’s opportunity to really understand where SAP is with its technology – in particular regarding digital cloud-led enterprise platforms and real-time information – and to really understand what that means in the context of their business,” adds Darren Hunt, Head of Strategic Industries at SAP. “SAP has such a good heritage from its legacy software position. Opportunities like this are fantastic, allowing us to continue the education of our customer base

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which solidifies faith and trust, and helps them move on from what they had to our newer technology.” SAP’s focus Between them, Leyden and Hunt have many years of experience in both financial services and enterprise software, and are at the frontline of the ongoing digitalisation of the financial industry. SAP itself is focused on expanding into industries where there are big opportunities to invest

– in particular public sector, retail, and financial services – and vitally, to support the British economy. “I think it’s fair to say these three sectors have been somewhat challenged over recent years,” Hunt says. “Public sector has seen a lot of budget cuts, so much retail business has moved online which has shifted the market dramatically, and with financial services there are so many compliance and regulatory measures. SAP, both in the UK and globally,

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SAP Financial Services Forum Winning in the Digital Moment July 4–5, 2017 GRANGE ST. PAUL’S HOTEL, LONDON Now in its sixth year, the SAP Financial Services Forum brings together over 500 banking and insurance executives, fintechs, key SAP partners and SAP financial services leaders and experts from over 40 countries. Join us at the Grange St Paul’s Hotel, London, to hear from thought leaders and visionaries on what it takes to be a digital winner, and learn through real-world examples how financial services companies are embarking on their digital journeys. We hope you can join us for this important global industry event.

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Thought leadership Go beyond the theory with practical insights from industry visionaries, leading financial services practitioners and fintechs on how digitalisation is transforming the industry. Networking opportunities Network with your peers and attend exclusive dinners and other social events. Executive access Benefit from individual meetings with senior SAP executives and SAP financial services customers. WHO SHOULD ATTEND? The event is specifically designed for: • C-level executives including CMOs/CDOs, CFOs and CIOs • Senior decision makers from retail, corporate and investment banks, capital markets, central banks and insurance firms • Heads of digital, channels, customer service, marketing, sales, finance and risk • Senior IT transformation leaders

sees that as an opportunity. We already have a sizeable legacy across those sectors, but as the pace for change gathers, we are focused on growing our business as well as supporting customers.” Expanding the legacy So what makes SAP so well-positioned to provide what these industries need? It is, of course, wellknown in its sector for its enterprise software services, and has created a long-lasting legacy for itself as a result, but more importantly the company maintains a vision that at once supports the legacy customers and guides them into the future. “A lot of our customers use core back-office software from our organisation that supports their fundamental business processes, and has done very successfully for a number of years,” explains Hunt. “Our key vision is to help the world run better and improve people’s lives, and I think that’s what we’ve done with our software. But as the world changes, and we shift towards the cloud and digitalisation, SAP sees itself as very well-placed thanks to our new technologies and offerings to support customers across all market sectors.” “Increasing digitalisation is about engaging with customers across numerous channels, making sure workforces are engaged and have information to hand, and enabling a smarter network of collaboration. Everything we talk about and hear

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now seems to be around how the world is becoming more connected, and a lot of people now come into the workforce expecting particular ways of working that might not be available in some legacy applications. Organisations need to use data in a way where access to real-time information becomes a key enabler for their business, does things faster, simpler, and in a more agile manner.â&#x20AC;? Despite this move towards all things digital, SAP wonâ&#x20AC;&#x2122;t forget about the legacy customers. While the company educates about and encourages moving towards the latest technology, it doesnâ&#x20AC;&#x2122;t force its customers to do so. Many organisations only want or

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need to run back-office systems, and in Hunt’s words, “we’re not switching the lights off. However I think it’s fair and appropriate, especially in the financial sector, that people understand we have technology today that might deliver their banking requirements of tomorrow.” Financial services in particular are encouraged to update, because customer demands are evolving all the time. “Until now, banks have Laurence waited for customers to come to Leyden them,” Leyden explains. “Digitalisation has forced us to shift the focus from transaction execution and product selling to adding value. That requires a different mindset and a different business model. “It’s important not to be distracted by the shiny new front end – it masks the problem. If the back office isn’t agile, then you’re simply investing in omni-channel inefficiency.” While some may still have reservations about digitalisation, the cloud is more secure than ever, as well as offering the best flexibility Darren and cost efficiency for the financial Hunt

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sector. “Cloud suppliers know that brand reputation – especially financial institution reputation – is at stake, and therefore they are continually raising the standards around security,” says Leyden. “Cloud system architectures use many different cybersecurity applications to combat a myriad of threats, isolating and disarming them as they are discovered, and protecting the entire cloud community from being impacted by that specific threat again.” SAP leads the way To be an enabler of change, SAP must be at the forefront of it. Its vision and strategy centres around moving more quickly, rather than rebuilding technology that is still being relied upon by legacy customers. To do this, the company made a series

of strategic acquisitions that fasttracked its digital practices and capabilities, allowing for a combination of technology applications, platforms, and business process expertise. “Our innovation and commitment to the financial industry is continuous and ongoing,” Leyden says. “We have been investing heavily into our own business to transform ourselves. We were once known primarily as an on-premises ERP provider, but have since been transforming ourselves not only as a supplier of cloud services and SaaS, but also a reliable business partner who can run the digital backbone of the entire enterprise across many business functions. This has required considerable change management internally, and the job is not done yet. “Any organisation on the path to and through our digitalisation needs to

14,100+ 5,600+ Banking customers in 149 countries

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Insurance customers in 107 countries

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keep its eye on managing two critical elements: managing the technology change and the cultural change within, and ensuring that change is pervasive across the entire organisation.” One of SAP’s top priorities is to prove that digitalisation isn’t something to be wary of – it’s something to aspire to that will only improve business in innumerable ways. How the client feels is, of course, the most important thing, and while legacy customers cannot

remain on the same platform forever, SAP offers equal support regardless of the level of digitalisation. Hunt concludes: “I think it builds an element of trust. I also think that trust has to go both ways. No doubt about it, organisations should move to digital-based technology quickly, but that has to be on the advice of both us and them.”

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