M ay 2 017
ROBOTICS IN THE SUPPLY CHAIN
www.supplychaindigital.com
SKY EUROPE: A DIGITAL JOURNEY
AN ENERGY BOOST
FOR DYNEGY USING PAS T E X PE RIE NCE TO POWE R S U P P LY C H A I N E X PA N S I O N
DELOITTE WHAT DO CPOS REALLY THINK?
25th-26th May // Shanghai
Supply Chain Innovation Summit 2017 CHINA FOCUS Contact Us: Lena Ji Marketing Manager T: +86 21 6776 7311 Email: lena.ji@acevents.org.cn Website: www.scinno-cn.com
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Chamariq Jamal
President, Global Supply & Procurement, Diageo
Senior Vice President Global Supply Chain APAC, Estee Lauder
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Jens Kaatze
Managing Director, The Center for Global Enterprise
Senior Vice President - Head of Product Management, Covestro a subsidiary of Bayer AG
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Girdhari L Gupta Senior Executive Vice President, Head Corporate Procurement, Reliance Infrastructure Ltd
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EDITOR’S COMMENT
DYNAMISM HELLO AND WELCOME to May’s edition of Supply Chain Digital. We start with a look at the US electricity market and a story of remarkable growth and transformation. Throughout the Northeast, Mid-Atlantic, Midwest and Texas, Dynegy operates power generating facilities capable of producing enough energy to supply about 25 million American homes. This represents a massive expansion in recent times, and that has been powered by a significant supply chain overhaul. Managing the supply needs of a group of this size can be a challenge. Shaun Anderson, Dynegy’s Managing Director of Supply Chain, explains to Nell Walker how altering some of the most basic processes proved critical to driving down operational costs. Before this you will find an interview with accounting giant Deloitte’s Head of Sourcing and Procurement Lance Younger, who discusses the various findings of a recent study conducted by the company. One topic fuelling many a discussion at the moment is the use of robots in the supply chain – we ask whether 2017 is the year that robots take over logistics. I hope you enjoy the issue, please join in the debate @SupplyChainD
Enjoy the issue! Tom Wadlow Editor tom.wadlow@bizclikmedia.com
F E AT U R E S
PROFILE
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WHAT DO CPOS
REALLY THINK?
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TECHNOLOGY
ROBOTICS in the SUPPLY CHAIN
LIST
26
INDIA’S BIGGEST PLAYERS IN LOGISTICS 5
38
Dynegy
USA & Canada
130
Guinea Alumina Corporation Africa
76
The Dairy Farm Group
58
Asia
Nutrabolt
USA & Canada
92
Sky Europe Europe
84
Landmark Leisure Middle East
106
Hi-Trans Express Pty Ltd
Australia
120
HealthShare NSW Australia
The wo enables
The Supply Chain end-to-end ecosystem in attendance; learn and Expert speakers including:
John Munnelly Head of Operations John Lewis
Brian Tessier Vice President, Global Supply Chain Innovation Schneider Electric
Ivanka Janssen Vice President, Supp Europe, Eastern Eur Saharan Africa, Pep
Top challenges to be addressed: - Innovate or die trying – Which technologies are improving Supply Chain projects and cost efficiencies? - Myth or reality – Supply Chain end-to-end visibility - 3PLs – How are they using technology to deliver faster and cheaper? - Gain full Supply Chain visibility – Gain real-time access to the ‘where, how, when’ of deliveries through IoT - Data is the new currency – Monetise data by translating information into actionable business insights - Sensors everywhere – on the vehicles, the products, and the drivers: opportunities and limitations
orld’s only event exploring how IoT s complete visibility of the supply chain
. Hilton Amsterdam, Netherlands 17-18 May 2017
d network with manufacturers, retailers and logistics operators.
ply Chain, rope and SubpsiCo
Jan Roodenburg VP Supply Chain Hewlett Packard Enterprise
Edwin de Boer Director Supply Chain Operations Cisco
Working in supply chain? Apply for your complimentary pass below https://internetofbusiness.com/events/internet-of-supply-chain-emea/
+44 (0)20 3841 8330 | info@iob-media.com
WHAT DO CPOS
REALLY THINK? According to Deloitte’s annual Chief Procurement Officer (CPO) survey; cost, risk and digital are top priorities for global procurement leaders. We chat to Lance Younger, the UK Head of Sourcing & Procurement at to find out more Written by: Wedaeli Chibelushi
PROFILE
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PROFILE SIXTY PERCENT OF Chief Procurement Officers (CPOs) believe that their teams lack the skills needed to run a satisfactory procurement effort. Almost six in 10 see managing risks as a priority. These statistics, and more, have been produced by Deloitte for its 2017 CPO study. Conducted in association with Odgers Berndtson, the global CPO survey is an annual survey of CPOS across the world. 480 procurement leaders from 36 countries around the world took part in this year’s survey. “We’ve got South America, we’ve got China, we’ve got a quite a big presence in Asia pacific and Australia in particular, so there’s thirty-six different countries this year,” Lance Younger, UK Head of Sourcing & Procurement explains. The study represents organisations with a combined annual turnover of $4.9 trillion. “By nature, [the study] does tend to appeal to bigger organisations,” Younger tells us. “But we mostly get a good cross section, we get government and public sector too.” I think it’s always important to take a poll, understand what the market priorities are and what organisations are doing about that,” Younger 12
May 2017
continues. With his help, we take a deeper look at the results of the study, and what they mean for the market. A notable finding is that the number one priority for 79 percent of CPOs is reducing costs. This is closely linked to 48 percent wanting to increase cash flow to help fund growth. Younger describes how from a purchasing perspective, there’s been an increased level of engagement with helping new products enter new markets and creating services. “Another fact is that while purchasing is doing a lot of short term actions to help reduce cost (price bench marking, negotiations and spend consolidation) they’re not doing some of the medium to long term actions which relate to supplier relations management which we would expect,” Younger explains. Deloitte recommends that purchasing continue current cost reduction actions, but examine how they affect medium to long term performance. Risk is another priority for purchasing teams. Younger comments: “From a purchasing perspective there is undoubtedly a focus on cost and risk.” 57 percent of CPOs said that managing risk is top of their list for this year. Key global risks cited include weakness and
“The big finding that wasn’t so good was that 60 percent of purchasing leaders believe that they don’t have the talent in place to execute their strategies’ Lance Younger Deloitte’s annual Chief Procurement Officer (CPO)
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PROFILE
“I think it’s always important to take a poll, understand what the market priorities are and what organisations are doing about that” volatility in emerging markets, rising geopolitical risk, the possibility of a renewed Euro crisis, spill over effects of any slowdown from China, and uncertainty around Brexit and outcomes from upcoming trade negotiations. Perhaps unsurprisingly, the latter was the highest risk cited by UK based participants. In addition, 54 percent of respondents reported a resurfacing of procurement risk. This could include price volatility, disruptions in supply and supplier bankruptcy. This figure has 14
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increased from 42 percent in 2014. However, risk and cost weren’t found to be the single greatest factor in driving procurement performance. 87 percent of CPOs agreed that talent was the major factor. “The big finding that wasn’t so good was that 60 percent of purchasing leaders believe that they don’t have the talent in place to execute their strategies,” Younger says. “The challenge that we’ve seen is that that number was as high last year.” Investment in new
W H AT D O C P O S R E A L LY T H I N K ?
talent development approaches and training remains stubbornly low, with 25 percent spending less than one percent on training budgets. Surprisingly, the study found that alongside wanting to increase staff numbers, CPOs stated that the impact of automation on their function will increase. CPOs reported that the impact of automation and robotics on their function will steadily increase from 50 percent today to 88 percent in five years’ time, and up to 93 percent by 2025.
Ultimately, how will the study help CPO’s improve their departments? “There are things organisations need to do, so this year we produced a section at the end of each section which calls out incremental actions and exponential actions,” Younger says. “So the incremental is just good practice. It’s what good organisations would do to put in place, so more training, capability assessments, mapping assessments, resources requirements, those sorts of things.” 15
ROBOTICS in the SUPPLY CHAIN
WILL 2017 BE THE YEAR THAT ROBOTS TAKE OVER LOGISTICS? Writ ten by: GUY CHISWICK , MD, W E B L OYA LT Y N O R T H E R N E U R O P E
TECHNOLOGY THE RETAIL SUPPLY chain is preparing for an industrial transformation. Robotics are starting to revolutionise the industry both in terms of agility and efficiency, with global powerhouses and brands such as Amazon already announcing their investment in the technology. Plans are afoot to improve logistics in distribution centres, trial delivery robots and drones, as well as explore the potential for autonomous delivery trucks. In 2017 we can expect to see these plans come to life as robotics are due to infiltrate all aspects of the supply chain. Customers and retailers alike should be ready to reap the benefits of supply chain robotics’ ability to seamlessly link real-time customer demand with stock planning and management. This will reduce costs, prove invaluable for accurate forecasting and help companies fulfil the ever-growing customer expectations and need for speed evolving in our modern world. Robotics in the warehouse Automation in the supply chain has long been a reality. DHL has started to use autonomous fork-lift trucks, 19
TECHNOLOGY and Siemens has automated some production lines to the point that human supervision isn’t necessary for weeks at a time. PwC estimates around 45 percent of current work processes can in fact be automated. However, the future lies in more advanced, sophisticated robotics. The possibilities are endless. Unlike fixed, automated machinery such as conveyor belts, robots are now programmed with AI software that allows them to complete the repetitive, manual tasks of the production line. Cost and affordability has been a huge driver in the employment of more advanced robotics in the supply chain. At US retailer Target Corp, traditional forklift trucks have been replaced with pick and pack robots programmed with AI computing power; working for longer, at a quicker rate and at a lowercost than humans/outsourced labour. However, it’s cutting-edge Robotics Process Automation (RPA) that’s on course to take centre stage. RPA advances beyond automation and eradicates the need for the traditional programming once necessary for robots to perform tasks in the supply chain, improving the efficiency and flexibility of transactional processes. 20
May 2017
“We live in a world where, as consumers, we demand things now and robotics can help retailers meet this growing desire’ Guy Chiswick, Managing Director, Webloyalty Northern Europe
R O B O T I C S I N T H E S U P P LY C H A I N
Rethink Robotics’ Sawyer Robots have been designed with an ability to adapt and learn by demonstration like humans, so line workers can simply ‘show them how’, as if training a new employee. Upon learning, Rethink Robotics’ robots have the potential to work for an astounding 2,000 hours straight and can predict as well as perform both physical tasks such as kitting, packing, loading and unloading, machine tending alongside transitional tasks like PCB handling or ICT. With regular software updates and their new ability to learn algorithms and locate logistical anomalies in the warehouse during the distribution process, it’s no wonder that more and more companies are following suit and using robotics and AI in the supply chain to ease financial pressures and meet consumer demands with innovation. Robotics on the road Robotics aren’t just transforming the logistics industry in the warehouse, they’re now taking to the roads and even the air. Delivery methods and speed are fast becoming a key brand differentiator for retailers in
the supply chain, and harnessing the rapidly developing advances in AI and robotics can only help reduce delivery time. We live in a world where, as consumers, we demand things now and robotics can help retailers meet this growing desire. Autonomous delivery robots and drones have been touted as the next step in achieving this. In December 2016, Amazon Prime, leading the way in supply chain and logistics innovation, trialled its Prime Air drone delivery service in the UK, meanwhile in the States Walmart announced in June that they were a mere 6-9 months from using drones to check warehouse inventories and for home delivery. However, although brands are experimenting with drones, whether they really ‘take off’ and become mainstream is uncertain. Drones are extremely restricted by expensive last mile delivery costs and flight regulations, typically transporting just one package per flight, before flying back to base to recharge. This can prove a costly process compared to delivery trucks multiple package delivery. Although not likely to become commercially available for 5-10 years, 21
TECHNOLOGY autonomous delivery trucks are also facing similar hurdles surrounding regulations and environmental sensors that need to be implemented on our roads to guarantee safety. Evidently, there are several challenges for such robotics to tackle to become safe and worthy of investment. Where autonomous deliveries have started to take shape, albeit on a smaller scale, is through delivery robots. Just Eat recently partnered with Starship
technologies to deliver its first takeaway by robot and recently confirmed the benefits of robotic delivery. They claim it costs ÂŁ1 to deliver using a robot in comparison to the ÂŁ3-6 cost of a human. Evidently, as with robotics in the warehouse, the employment of delivery robots will redefine the transportation of goods and warrant a significant reduction of labour costs as well as improved efficiency in the long-term for supply chain. Impact on the workforce Despite these ground-breaking advances in innovation, there has been much debate and speculation surrounding the potential loss of jobs that could result from replacing human labour with robots in supply chain; what will the impact be on our warehouse operatives and delivery drivers? Contrary to popular belief, rather than experiencing a loss of jobs, the introduction of robotics in supply chain will see the transition of skills in the industry and opportunities for workers to transition from mundane tasks into more creative, managerial roles superior to their new robotic colleagues. Additionally, in 2015 the Freight
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HEADLINE
“The introduction of robotics in supply chain will see the transition of skills in the industry and opportunities for workers to transition from mundane tasks into more creative, managerial roles superior to their new robotic colleagues’ Guy Chiswick, Managing Director, Webloyalty Northern Europe
Transport Association (FTA) revealed only seven percent of all HGV drivers were under the age of 30, proving there is in fact a need to replace this aging workforce in logistics. Robotics could be the answer. The transformation of the logistics industry will welcome a more convenient, flexible and faster distribution and delivery service that will boost customer retention and lower supply chain costs for years to come. If one thing’s for certain, it’s that robotics and their steady infiltration into the supply chain are something to be celebrated. 23
TOP 10
INDIA’S BIGGEST PLAYERS IN LOGISTICS We look at 10 of the most influential logistics companies operating in India W r i t t e n b y : D A L E B E N T O N
TOP 10
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Globe Express services
A global supply chain solutions provider, Globe Express’ presence in India is headquartered in Mumbai and offers a variety of solutions such as Domestic & International Transportation, Temperature Controlled Land Transport, and Air & Ocean Freight Services. Across its global network of over 60 corporate offices in 100 countries in different verticals such as Automotive, Fashion and Apparel, and Chemical industries. www.globeexpress.com
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I N D I A’ S B I G G E S T P L AY E R S I N L O G I S T I C S
First Flight
With extensive network in the country, First Flight offesr Domestic & International Courier Services, Priority Courier, e-Commerce Logistics, Reverse Logistics, Train cargo, and Air Cargo. The company is also a major courier partner to leading e-commerce retailers such as Home Shop 18, Myntra, and Jabong etc.
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www.firstflight.net
FedEx
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FedEx is an American Logistic Company which has presence in 220+ countries in the world. Across its huge network all over the world and handles 3.6 million shipments every day. In India, FedEx offers both Domestic & International Courier Services. The company also has a number of solutions for all kind of shipments light & heavy weight, express & standard delivery, and time definite delivery of goods. www.fedex.com 29
TOP 10
Gati
India’s pioneer in express distribution and supply chain solutions, Gati has an extensive network across India providing deliveries to around 190000 pin codes, covering 672 of 676 districts across the country. Gati has 608+ offices, around 200+ reefer trucks and a fleet size of over 5000. In 2016 alone, Gati received five industry awards, including Best Express Service Provider of the Year, Cold Chain Warehouse of the Year and Small & Medium business – Warehouse Category. www.gati.com
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I N D I A’ S B I G G E S T P L AY E R S I N L O G I S T I C S
Agarwal Packers and movers
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Agarwal Packers and Movers Ld is a major player in India. Through a diversification, the company has interests in Aviation Logistics, Packing and Moving (nationally as well as internationally), Transportation, 3PL, Warehousing, Home Storage, Supply Chain, ODC Transportation, Cube-on-line Freight station. With a fleet of more than 1000 vehicles, 5000 cubes, 15 lac square feet of ultra-secure warehouses, a wide international presence and an establishment of 103 self-owned offices in various cities serving 1264 destinations within India, Agarwal truly is one of the largest logistics companies in India.
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www.agarwalpackers.com
Allcargo logistics ltd
Allcargo Logistics is a logistics company headquartered in Mumbai, India. With operations across 164 countries, Allcargo is one of the largest publicly listed logistics companies and following the acquisition of ECU Worldwide, now stands as one of the largest LCL service providers in the world. www.allcargologistics.com 31
TOP 10
DTDC
Established in 1990 and headquartered at Bangalore, DTDC has 7 Zonal offices, 20 strategically located Regional Offices and over 430 operating facilities spread across India. DTDC Express Limited has its presence in more than 500 district headquarters through its large network of more than 10500 franchisees and extends services to over 10,500 Pin codes while handling more than 12 million shipments every month. DTDC is known as India’s ‘preferred express parcel service provider with a special consumer focus’. www.dtdc.com
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I N D I A’ S B I G G E S T P L AY E R S I N L O G I S T I C S
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TNT Express
A part of the much bigger global logistics Company TNT Express, TNT’s extensive road network across Europe connects TNT with key Asia Pacific commercial centres, including Tokyo, Bangkok and Singapore. In May 2016, TNT Express was acquired by FedEx in a €4.4 billion deal. www.tnt.com 33
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Blue Dart
Described as South Asia’s ‘premier courier and integrated air express package distribution company’ Blue Dart is located in Mumbai, India. The company, through a sales alliance with DHL, operates across 220 countries worldwide. The company provides a wide number of logistics distribution services, including domestic door to door delivery, airport to airport air freight service and express pallet. Blue Dart Aviation operates the only domestic express airline in India, with the company’s current fleet consisting of six Boeing 757 freighters. ERP systems. www.bluedart.com
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TOP 10
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I N D I A’ S B I G G E S T P L AY E R S I N L O G I S T I C S
DHL
As one the largest international logistics companies in the world, DHL’s global footprint stretched over 220 countries – including India. The company offers Express Delivery Solutions, International Express Delivery, Global Forwarding (By Air, sea, Rail, and Road), ecommerce Logistics, Freight Transportation, Warehousing & Distribution, Temperature Controlled Logistics, and Supply Chain Solutions. DHL also operates across specific logistics such as Aerospace, Automotive, Chemical, and Consumer Domains. www.dhl.co.in
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An energy
BOOST for Dynegy Managing Director of Dynegy’s supply chain, Shaun Anderson, describes the company’s sensational growth and to what it attributes its increasing success
Written by Nell Walker Produced by Denitra Price
T
he Houston-based independent power producer (IPP) has 50 generating facilities in 12 states throughout the Northeast, Mid-Atlantic, Midwest and Texas. Dynegy has transformed from a coal-heavy portfolio of plants largely dependent on one power market, to one that is geographically diverse, generating more than 31,000 megawatts (MW) that are predominately natural gas-fueled – capable of producing enough energy to power the homes of 25 million U.S. families. Managing the supply needs of a group of this size can be a challenge. Shaun Anderson, Dynegy’s Managing Director of Supply Chain, explains how altering some of the most basic processes proved critical to driving down operational costs. “When I started two years ago, there was no supply chain organization,” he says. “Instead, a procurement group used a transaction-based process where a group of buyers would support the needs of each site individually. Recognizing there was an opportunity to put a purchasing strategy in place, we first established a true supply chain organization with three value streams of Strategic Sourcing, Supply Chain Services and Procurement.”
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USA
“I intentionally named it
‘SOURCE-TO-PAY’ to build in strategic thinking” – Shaun Anderson, Managing Director Supply Chain
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ADV
Digitalization is one of the biggest buzz-words in business today, and for Siemens, it is far simpler and more efficient a concept than many believe.
“What you see in the market – the presentations, the articles, the talks about trading values, terms like ‘game change’, ‘new paradigm’, ‘transformative’, ‘disruptive’ – so much of that is hyperbole,” says Stefan Bungart, Head of Digitalization in the Power Generation Services Department of Siemens.
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“All these big words don’t translate into real outcomes or meaningful action for customers. The real pain points they are asking about aren’t to do with understanding the transformative effects of digitalization. They want to know, for example how they can keep up with industry standards, how to create a more fuel-efficient fleet, and how to keep data safe. Those are just some of the issues we’re addressing. There’s a lot of noise around digitalization, and we’re working to cut through that noise and get to the core benefits.”
performance. Really, what we’re trying to do is help our customers understand how they can use digitalization strategically.”
Power generation customers look to the company for simplified, focused, and tailored solutions. Siemens delivers a wide range of data-driven products and services to meet changing industry requirements, bringing technology together with customer challenges to generate real and meaningful value. Generally the focus lies within three focus areas – profitability, mitigating risk, th and improving performance – and Siemens supports customers to drive these goals.
“All of our services sit on a secure IoT operating system that Siemens has developed called MindSphere,” says Bungart. “The end-to-end security element we’ve built into it makes it incomparable; it’s a secure environment from the sensor to cloud, for which we developed specific hardware and software, ensuring plug-and-play capability. pl
“With digitalization, it’s a matter of applying it to problems in your organization in a positive way,” Bungart continues. “We help people get to the real value that digital services can provide rather than spending a lot of time talking about potential opportunities. We’ve been building a large set of experiences with customers and engaging in many projects to optimize our eng
End-to-end cyber security is of paramount importance to Siemens, and that emphasis is what sets it apart from many competitors. It boasts a suite of services based on data and analytics targeted to a range of needs, including data protection, to ensure information and infrastructure are fully protected.
"While some see data as gold, simply collecting data for data's sake is no remedy. It requires the best possible technology to protect it and the best possible minds to interpret and realize its full value. It's not a question of waiting 10 years for digitalization to develop - it's here now and Siemens is at the forefront.
www.siemens.com/digital-services-energy
DYNEGY INC.
Instead of setting up a centralized group to dictate to the rest of the company how things work, Dynegy’s approach is center-led. The team actively gathers input from members of the operations group to meet collective goals with standardized processes across the business. It focuses on leveraging and optimizing spending across the company, instead of just addressing
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opportunities on a site level. Dynegy’s supply chain group tailors the way it operates to meet specific business needs. Setting the company apart from others in the industry, Anderson has a ‘source-to-pay’ (S2P) process in place, rather than the standard ‘procure-to-pay’ (P2P) approach. “I intentionally named it
USA
‘source-to-pay’ to build in strategic thinking about sourcing as an early part of the process,” says Anderson. “The added step at the beginning gets our supply chain group involved even earlier to add even more value across the organization. Also, we initially had multiple systems within systems as part of the P2P workflow.
Now we use one common system, Maximo, to streamline activities.” The S2P process has been a key challenge to implement, but also a significant source of improvement to Dynegy as an organization. By the third quarter of this year, Anderson expects the S2P process
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to deliver significant efficiencies throughout the entire work flow, including operational site-level needs, inventory, work order creation, requisitions and purchase orders. Dynegy has grown through a number of strategic acquisitions in the last several years. As might be expected, some initial push-back was
present early on as cultures came together from different companies. To help manage the change involved with shifting to a different way of doing business, cross-functional teams were developed to enable strategic sourcing, regular meetings with key administrators, policy changes and other activities.
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A key element of the company’s drive towards integration is the ‘voice of the customer’ program, which ensures customer needs are heard and addressed to become part of the process. “The VoC program is where we have monthly meetings with the key administrator of each site,” explains Anderson. “We not only talk about things we’re trying to do differently
and changes we’re implementing, but we also get feedback from them as our internal customers on what’s working and what isn’t. We’ve had tremendous feedback in terms of the recent company changes.” In sitting down with Dynegy’s crossfunctional team members across the operations group and asking for advice from their perspectives, Anderson and his team can gather an
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“Inspired Energy ensures how people do things is as important as what they do and is based on Dynegy’s organizational values” – Shaun Anderson, Managing Director Supply Chain
accurate reading of how the company is performing. Similarly, there is now a center of excellence team which goes beyond the supply chain, where operational members can makes alterations on a policy level. “We utilize this team as a sounding board not only to get feedback on change, but also to help communicate and drive that change forward,” Anderson says. “Opposing cultures is an inherent challenge of company change,” he adds. “Dynegy is unique in that we have put things in place to address this from the first day an
employee joins the company.” For a company to be successful, it needs to win the hearts and minds of its people. ‘Inspired Energy’ is Dynegy’s program designed to consciously create a culture. The initiative is a system of shared language and concepts to build an environment allowing employees to be at their best. The program sets a tone to enable people to build camaraderie and focus on the task at hand. It helps them realize they each have a part in the company’s success and that their individual contributions matter.
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“Inspired Energy ensures how people do things is as important as what they do and is based on Dynegy’s organizational values,” he says. “Every employee goes through an initial Inspired Energy orientation, followed by a training several months later. The Inspired Energy culture gets
everyone is working on the same page. This type of change management at a foundational level is definitely an asset as we move forward.” Despite of the growing pains common with the kind of expansion Dynegy has experienced, the company is positioned for longevity
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and sustained success. With a strong, strategic focus concentrated on improving business processes, systems and tools while leveraging spend opportunities, the supply chain organization works on continuous end-to-end improvement that emphasizes total cost of ownership, and the integration of critical suppliers into business solutions for a lean, agile and responsive process. “We’re making sure we have the right systems in place that align with the business,” says Anderson. “Just
like Dynegy as a whole, the supply chain organization has gone through a transformation. We are intentionally integrated focus on aligning business needs with corporate objectives while providing added value, efficient processes and cost-saving throughout the company. Dynegy prides itself on being a lean organization that succeeds because we have the ability to get more out of less. We work smart and take full advantage of the technology we have at our disposal.”
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and the supply chain of partner power
Having enjoyed remarkable growth since the turn of the decade, the sports nutrition expert has had to mature its supply chain processes and develop deep partnerships with key suppliers Written by Tom Wadlow Produced by Denitra Price
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t’s easy to get very passionate about helping people with health and wellness,” says Casey Bauer, Chief Operating Officer at Nutrabolt. A sports nutrition enthusiast and long-time fitness hobbyist, Bauer oversees operations including supply chain, product development, quality and IT, promoted to COO in December 2016 having arrived as SVP of Supply Chain in August of the previous year. The maturation of Nutrabolt’s supply chain during this time has allowed it to cement its position as a leading sports nutrition company in the USA, providing a foundation to roll out new product ranges aimed at varying audiences looking for products to achieve their sport nutrition goals. For Bauer, having driven the transformation of Pharmavite’s supply chain, the opportunity to take on a new challenge – one that is so heavily dependent on partnership networks – was too enticing to turn down. “I uprooted my family who loved the Southern California sun and took them to rural Texas, so hopefully they still love me for doing that to them!” he laughs. “Jokes aside, it has been a great transition, actually. We really enjoy it out here and the team at Nutrabolt has been amazing.” The move into sports nutrition was an added bonus. Asked if this was a career he had always sought out, Bauer replies: “It wasn’t a natural career choice for me. I became interested in this space when travelling during my consultancy work, which
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involved living out of a suitcase and using hotel gyms. “I hadn’t worked with these sports nutrition products before but had been exposed to them and been a consumer, which adds an extra element of excitement. We also have a beautiful state of the art gym on-site, which is stocked with all of our products, so we are consumers and users too.” Growing pains Bauer arrived at a company in the middle of a growth spirt. Formed in 2002, the business was set up to help smaller supplement shops source affordable products, leading to the formation of the brand Cellucor. This remains the most important and successful Nutrabolt range, comprising industry leading products for pre- and post-workout, amino acids, protein, weight loss and testosterone. Current CEO Doss Cunningham arrived in 2004 as a part time accountant, buying out one of the two founding partners in 2007 before lifelong friend Manish Patel and he partnered to acquire the remainder of the business in 2008. It was from here the business began to increase revenues above the $10 million mark, the preworkout market in particular helping it to become more profitable. In 2014, MidOcean Partners invested in a minority share and have proven invaluable in providing leadership and driving more aggressive growth. Bauer arrived shortly after. “The interesting thing for me is that the retailers
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AN AMAZING PARTNERSHIP
In the beginning, before Nutrabolt was called Nutrabolt, and even before C4 was the hottest pre-workout product in the known universe… Nutrabolt needed a manufacturing partner. When they first approached Genysis Brand Solutions for an estimate, the projected production volumes were less than the minimum order quantities at Genysis. That was then.
This is now. After working together for years, today Genysis delivers millions of units of C4 each quarter with an over 95% on-time delivery performance. Over 95%. This amazing partnership is the result of world class vision, combined with true leadership and manufacturing excellence. Together, Nutrabolt achieves incredible results with Genysis Brand Solutions’ Four Week Program to consistently deliver incredibly high volumes of product, on time, every time.
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“Our secret is simple.” said Jeff Reynolds, CEO of Genysis, “We have learned that the only way to produce truly amazing results for a partner like Nutrabolt, is to build relationships that allow both sides to invest in our mutual success. With that type of commitment, we can do incredible things.”
G enysis Brand Solutions pioneered the application of LEAN manufacturing techniques in the nutritional supplement industry. Genysis was able to greatly reduce product fulfillment lead-times and can now deliver high-quality finished goods (from PO to fulfillment) in as little as four weeks.
Shayne Howell, Chief Revenue Officer of Genysis added, “Our brand partners range from the largest sports nutrition companies, like Nutrabolt---to organic health food companies and niche retailers. A s we develop strategic partnerships with our clients, we essentially know what we need to be ready to produce before the order comes in. That ability to anticipate demand, with a relentless focus on quality, allows us to consistently deliver high-quality products, on-time, everytime.” G enysis Brand Solutions is delighted to partner with such an amazing company as Nutrabolt, and is thrilled to be a part of their success. Genysis Brand Solutions is a customer-centric, turn-key powder manufacturer based in Salt Lake City, UT. Our teams specialize in delivering best-in-class powdered nutritional supplements from new product formulation and flavoring, all the way pr through sourcing, cGMP testing, blending, packaging, and logistics services.
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across the USA are coming to us to increase distribution, such is the demand for the products,” he says. “We don’t have to knock down the doors, they are already open. We have added several brands to the portfolio, including FitJoy protein bars last year, which has now put us in the quarter billion-dollar range. We have also just completed our acquisition of the Scivation brand
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which gives us market leadership in Branch Chain Amino Acids as well.” Nutrabolt’s other brand is Royal Sport LTD, a six-product sports nutrition brand available only at GNC franchise stores. While it was certainly an exciting time for Bauer to arrive in August 2015, he recognised the relentlessness of the growth would not be sustainable without a solid structure. “What I saw was a supply chain that was pretty frantic. Everyone was super
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focused on how do I get tomorrow’s order out of the door, so there was nobody with the luxury of taking a step back and observing. “I walked into Doss’s office and said it’s crazy down there, and that I needed 60 days to come up with a strategy. He gave me that luxury and the team and I sat down and came up with a supply chain strategy for the first time in the company’s history.” Execution The 60-day evaluation told Bauer
and his team two things: that Nutrabolt needed to be smarter at supply chain planning and continue to drive cost optimisation. The following 12-18 months saw the plan put into action and has seen some phenomenal results, not least when looking at inventory figures. While inventory rates have been cut in half, fill rates have risen from 76 to a little over 96 percent in the latest
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month. “That is my favourite statistic,” Bauer adds. “When I first came in there was a very strange dynamic. I got a call from our President saying inventory turns are below two, and then had about 10 calls from sales leads saying they didn’t have the product to fill customer orders. This didn’t make any sense, and goes to the heart of the supply chain planning.” In Bauer’s words, it was time to “stem the bleeding”. Investing in the supply chain planning software solution Logility has proven to really help stabilize Nutrabolt’s supply chain, despite Bauer’s trepidation at recommending such a significant investment so early into his tenure.
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“I think the willingness to change was what I was most worried about before going into this,” he continues. “I pitched this only three months into being employed and was scared to death at the prospect – I was walking in as the new guy advocating a very expensive piece of software. “But Doss was so supportive and we got on the phone to the MidOcean folks and they supported the idea straight away. My team on the demand planning and supply planning side were also super excited, especially having lived the pain. The willingness to change was emphatic, it has been a huge learning curve.”
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Strength in suppliers The effectiveness of Logility becomes even greater as key partners look into adopting the solution. Indeed, the smooth functioning of the Nutrabolt machine is dependent on collaboration with third parties, from freight companies and 3PLs to manufacturers
and even their suppliers. “This makes integration and partnership absolutely critical to any success,” adds Bauer. “The inventory improvements we talked about would never have been possible without collaboration with our partners. It is about transparency and closeness.”
“There was a time when we would be afraid to give a partner company too much data
– now I’m pushing to give them more” – Casey Bauer, Chief Operating Officer, Nutrabolt
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Such close relations with production partners is especially critical given the move to turnkey manufacturing, which means Nutrabolt simply purchases finished products and holds no component inventory. Bauer points to a partnership with Genysis Brand Solutions as a case in point. “We have monthly meetings that switch between our location in Texas and their location in Utah,” Bauer continues. “We make sure we meet face to face to add to our daily conversations. We have scorecards and metrics, talk about what’s working well and what’s not working well, and discuss how we can become more integrated and gain greater visibility. “There was a time when we would be afraid to give a partner company too much data – now I’m pushing to give them more. I appreciate massively the transparency that exists between ourselves and the Genysis team, and we are now at a point where we are realising joint cost savings. We have even been able to cut lead times in half on key products and get products to customers significantly faster – this is because they have that visibility and are benefiting from the collaboration on the forecasts.” Moving forward in 2017 and beyond, integration of the end-to-end supply chain will become a major priority. Bauer’s ideal state is one where all manufacturers and partners,
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and even their suppliers, can access central portals, offering 100 percent visibility and tying the whole supply chain together. He is also looking to add to Nutrabolt’s international supplier network, a move which will localise production and decrease shipping costs. Further still, the COO is targeting redundancy in the supply chain, mitigating risk in single source supplies.
“Innovation is another area we want to continue working with the likes of Genysis on, getting them into the process earlier to tap their wealth of expertise,” Bauer adds. “These are the people working with the key materials day in and day out.” New channels, happy customers As product formulas evolve, so do the channels in which Nutrabolt sells through. Although specialist retailers remain the company’s
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largest segment of business, some of the country’s retail giants are opening doors to orders en masse. “Amazon has been a tremendous partner for us and we’ve had an amazing growth trajectory,” Bauer says. “We’ve just added Justin Jackson to our team, who is our SVP of Consumer Direct, overseeing our personal websites and the Amazon account. He is a former Amazon executive and has brought some massive improvements to the company.” Indeed, Bauer is convinced
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that Nutrabolt can help to mature the product ranges seen in the likes of Walmart and other large supermarkets. “You see a lot of protein but not a lot else, so our C4 Sport line has been hugely successful in filling these spaces. Now we’ve started expanding our offering and the advent of FitJoy has allowed us to create a functional foods brand, which is specialty focused now can have reaches into other consumers, which is exciting.”
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Different buyers bring with them wider audience of fitness enthusiasts, different supply chain nuances, it is vital to convert as many of them as and Bauer points out some of the possible into repeat customers. Central challenges associated with this to this is meaningful engagement. diversification. For instance, selling “If you pick up one of our products it through Amazon has demanded has a 1-800 number on the label,” says a whole new stickering process, Bauer. “If you call that number you’re while precision has become even not routed to a call centre somewhere more of a must with else, you are sent delivery schedules. trough to a group of Bauer explains: Nutrabolt folks we have “When you sell into downstairs who will the likes of Walmart answer questions and you are dealing with send handwritten notes extremely lean supply back to the consumer. chains so it is vital “We had one recently, to have consistency which was the first of demand. You can problem we’ve had – Casey Bauer, Chief Operating get fined by Walmart on direct to consumer Officer, Nutrabolt if you ship a product for a long time, where early – they don’t two products went want extra inventory on their books, to the wrong people. Our warehouse nor do they want to run out. This immediately got on it and dispatched means we have to add an extra layer the right products, and one of the of sophistication to our supply chain.” customers even got the replacement Challenges granted, expansion into and heard from us before they got new sales channels has opened up home to see that they had been access to Nutrabolt’s product ranges sent the wrong order. We really to a far greater demographic across believe in that close connection and the USA. And having reached out to a doing right by our customers.”
“When you sell into the likes of Walmart you are dealing with extremely lean supply chains so it is vital to have consistency of demand”
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Happy horizons Bauer’s ambitions will not be realised without a fully motivated and energised supply chain team, something which has evidently come to the fore over recent months and is ultimately leading to high levels of customer satisfaction. “Compared to the company as a whole, the supply chain group was in the lower half of the spectrum when it came to employee engagement,” he explains. “Part of that was because we were asked to almost do the impossible given how tremendous the growth was – people were scrambling to get products out of the door.”
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However, thanks to the installation of aforementioned new processes and systems, the supply chain group is a much happier place to be and will continue to expertly to serve colleagues and customers. “A lot of our improvements in this respect have fed back into employee happiness and engagement,” Bauer continues, “but there have been some simpler things like recognition which has helped greatly. “For a supply chain person, the best compliment you can receive is from a sales team ringing you up and saying good job, thanks for getting my order fulfilled.”
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Giving back to communities and driving success Written by Catherine Rowell Produced by Charlotte Clarke
DAIRY FARM GROUP continually gives back to local communities whilst finding new ways to remain competitive in the retail market
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ince its establishment in the nineteenth century, Dairy Farm Group has been gradually acquiring a diverse portfolio, operating supermarkets and hotels, in addition to managing a number of manufacturing and building companies. A member of the Jardine Matheson Group, Dairy Farm has cemented its growth and presence across Asia with over six thousand outlets and 180,000 employees. The company consistently looks at new ways to attract customers, whilst ensuring the benefits of modern retail are enjoyed by local people. Operating in over 10 markets and with more than 38,000 products in stock, Dairy Farm has placed considerable investment within its current IT systems to facilitate a seamless delivery throughout its supply chain. Teams are able to set up strong order parameters to support the high number of orders placed to suppliers, but also guarantees the delivery of stock to various stores which are placed on shelves. $20 million has been invested in the Groupâ&#x20AC;&#x2122;s management systems and approximately $25 million is invested in Dairy Farmâ&#x20AC;&#x2122;s operational budget each year.
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D A I R Y FA R M G R O U P
‘The Group frequently promotes from the ground upwards, with the majority of store managers originating from the shop floor’
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PARTNER COLLABORATION The Group places a strong focus on building relationships with suppliers to ensure effective stock control and product delivery, one such partnership is with multinational group Procter & Gamble. The duo has successfully worked together to see how Dairy Farm’s vehicles can be placed at full capacity to reduce fuel consumption in order to become increasingly cost effective within the Group’s operations. In addition, energy consumption is something the Group continually seeks to reduce, and has therefore implemented energy efficient bikes and LED lighting in all its warehouses and stores. Any savings which are made will therefore further enable the lowering of prices for customers. Furthermore, Dairy Farm’s partnership with Unilever in Malaysia surrounding vendor management has enabled Unilever to oversee the inventory of one of the Group’s distribution centres and place an increased focus on the Group’s operations in the east of Malaysia. Whilst Unilever concentrates on 200 products, Dairy Farm has
thousands under its umbrella, situated in a number of different locations. This partnership improved the Group’s sales by an impressive 30 percent and provided a reduction in inventory, while providing a platform in which Dairy Farm can engage with other multinational companies and develop further partnerships. INTERNAL OPERATIONS With the aim to maintain positive relationships, Dairy Farm implements a number of Key Performance Indicators (KPIs) which measure the performance of the various divisions and places significant investment within employee development. Continuously looking for new talent, the Group operates a talent spotting programme to ensure opportunities are available for local people who understand the business and want to succeed at Dairy Farm. The Group frequently promotes from the ground upwards, with the majority of store managers originating from the shop floor. Managers are also asked to look for individuals whom they feel should become their successors and spend time ample
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10k Number of employees at
Dairy Farm Group
coaching them, enabling local people to gain senior positions and provide quality services to customers. Adopting a strong customer focus against an ever-changing consumer demand is vital. To this end, the Group has invested in a new automated order system, which removes guess work for customers and provides an increasingly attractive service. Customers are the most valuable part of the Groupâ&#x20AC;&#x2122;s business operations. Important feedback can be given through a customer care line which allows the Dairy Farm to adapt its processes accordingly and provide the best prices on all products. In addition to regularly connecting with suppliers, employees, charities and placing focus on employee growth, the Group undertakes
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a number of sustainable initiatives to support local communities. The Group regularly partakes in direct farming and direct sourcing, partnering with local farms and building direct relationships, creating efficiencies and making a real difference for local farmers by sharing all profits equally, enabling customers to obtain a cheaper product and create efficiencies across the supply chain. INCREASED COMPETITION Despite Dairy Farmâ&#x20AC;&#x2122;s ongoing success, it only takes one company to transform the retail industry, with companies such as Amazon repeatedly placing the Groupâ&#x20AC;&#x2122;s traditional business model under threat. Consequently, in order to remain relevant and competitive, Dairy Farm will continue to take controlled risks and remain nimble, whilst ensuring high quality of services for customers within an ever-changing market. With an invaluable history, the Group is strong in both leadership and capability, with the desire to find new ways in serving and seeking new avenues to drive further efficiencies and success throughout its supply chain operations.
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G N I T R O P G P N I SUILD LEARN AY L P H G U O THR
CH
owell R e n i r e y Cath kel Ouni b n e t t Wri by Hey d e c u Prod
LANDMARK LEISURE GROUP ENCOURAGES CHILDREN TO LEARN THROUGH PLAY, WITH A FOCUS ON CHILD GROWTH AND DEVELOPMENT.
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ith a positive growth rate, the Middle East is placing an increased focus on developing a number of key markets to attract increased investment, boost tourism and promote economic growth. Developments consist of a number of communal and leisure spaces, retail facilities, restaurants and parks, but there are also a number of key areas within the communal and leisure space which are slowly rising and increasing competition within the Middle East. Launched back in 1999, Landmark Leisure Group has become a brand which now dominates the leisure and entertainment market for young children, providing exciting, educational spaces for children to develop key skills, socialise and thrive. Part of the multinational conglomerate Landmark Group, Landmark Leisure has locations across the GCC and India, with over a thousand employees
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and over 40 different nationalities, creating an environment which is multicultural and diverse. BOLDER BRANDS Providing children with beneficial learning and entertaining spaces is Chief Operating Officer Silvio Liedtke. Amongst the Group’s expansion plans, Liedtke is also behind the development and subsequent launch of two further brands later on this year. “These brands will focus on youth and adults, completing the Group’s portfolio for entertaining for any age and for any desire,” he adds enthusiastically. Home to four main brands, Fun City, Fun Ville, Fun Block and Fun Works, Liedtke explains that the Group’s centres are part of the communities in which they are situated, and have become a staple for both children and their parents to socialise and enjoy, with many customers visiting
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entertainment centre, present in over 65 locations across the Middle East and India and caters to children from ages 1 to 12 years. The company also received numerous accolades and awards under Silvio’s guidance such as Great Place to Work 2014 - Superbrands: UAE’s Choice 2014 - Middle East & North Africa Council of Shopping Centres: Marketing Excellence. Prior to Fun City, Silvio worked as Head of the FEC business for the MAF group for 3 years. In his role, he was responsible for managing all aspects of the Magic Planet FEC operations and delivery across the entire MAF portfolio.
SILVIO LIEDTKE - CEO Silvio Liedtke is the Chief Operating Officer at Landmark Leisure since 2010. In these six years Silvio has transformed the leisure division into one of the fastest growing businesses within Landmark Hospitality. Under his guidance and vision, the company offers to its guests a wide range of entertainment and play centric opportunities at Fun City, Fun Ville, Fun Works, Candelite and POParazzi’s Gourmet Popcorn. In the last few years, Silvio worked very hard in re-positioning its flagship brand Fun City to become the company’s flagship brand and the market leader in indoor leisure business. Fun City is a well-respected, extremely well operated
Before relocating to the Middle East in 2007, Silvio was Managing Director of the Butlins Holiday Resort in Bognor Regis in UK - a multifacetted holiday resort with over 5000 units of accommodation, 3 hotels, an indoor water park, an outdoor theme park, several entertainment venues, over 25 restaurants, a small shopping mall, outdoor sports activities etc. His first foray in to the Leisure business was at the world famous Legoland Windsor in UK. Having originally joined during the opening period of this attraction, Silvio ended up being the Managing Director of this Theme Park, which at the time attracted 1.8 million visitors annually before deciding to move to Butlins, also in the UK. With his background of working for strong brands in the entertainment and leisure industry, Silvio is strongly equipped to help Landmark Leisure implement its long-term strategy. When he is not working, Silvio is seen spending quality time with his wife and two kids, preferably in Fun City, working out in a Gym or playing squash and golf. w w w w. l a n d m a r k l e i s u re . a e
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JOIN THE FUN FORCE HPS Middle East is one of the leading companies in customized playgrounds and adventure spaces in the regionâ&#x20AC;&#x2122;s Leisure and Entertainment Industry. With our reliable yet highly innovative adventure playground design and turnkey installations, our reputation continues to flourish with positive reviews. Whether it is an indoor or outdoor space, a themed Family Entertainment Center, an interactive Childrenâ&#x20AC;&#x2122;s Club or a unique attraction within an Adventure Park, HPS can make your vision become a reality. HPS Middle East is specialized in bespoke Adventure Leisure Solutions, transforming any space into a uniquely inspired, wildly entertaining, revenue generating facility.
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twice a week. To this effect, Liedtke “This really drives our ambition.” has been behind the launch of new All brands under the Group provide confectionary brand POParazzi’s – a indispensable and exciting learning gourmet popcorn brand with variety platforms and create customer and of sweet and savoury popcorn with child engagement. Fun Block has locations across the UAE and Qatar. therefore built on this concept and One of the largest playful learning has become an extension of Fun and entertainment spaces in the City’s facilities, with entertainment Middle East, Fun City has been facilities, such as a 600 square metre developed for trampoline park, climbing children up to 12 wall and a play zone. years. The brand ‘Fun Works’, however, has become such has since become one a hit, the Group of the largest Group has expanded to ventures, spanning the UAE, Kuwait 6,000 square metres Number of employees Qatar, Bahrain, over two floors at at Landmark Leisure Saudi Arabia, Yas Mall in Abu Oman and India. Dhabi. “Any market All centres under Fun we operate in we City encourage and support want to be the largest and child development through a number the best operator,” Liedtke says. of activities, such as the Play Zone, enabling children to socialise and EXPANSION PLANS develop key skills within an engaging The Group’s aggressive growth environment. “We’re focusing on plan encompasses expanding the quality in the entertainment space number of centres they currently and want to be the operator of own in India, but also to develop their choice in the countries in which existing spaces over the next five we are situated,” adds Liedtke. years. However, Liedtke explains that
1,000
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“WE’RE FOCUSING ON QUALITY IN THE ENTERTAINMENT SPACE AND WANT TO BE THE OPERATOR OF CHOICE IN THE COUNTRIES IN WHICH WE ARE SITUATED” such ambitions would not have even been possible without the support of shareholders and landlords who underpin the viability of the Group, and also the relevancy of its products and services. He adds succinctly: “With the time and the vision to create the right spaces to operate in, only then can you succeed.” In addition, Liedtke is aware that the Group is facing increasing competition from a number of competitors, and is consistently developing new ways to remain one of the biggest names in the leisure business, stating: “how do we stay relevant to customers? How do we ensure that they will come back?” To ensure the Group caters to increased customer needs, it produces customer surveys to drive interaction and improvement
of services, machinery and products to ensure delivery is second to none, in addition to utilising a centralised system to operate a number of successful communication channels. Despite these ongoing challenges, maintaining the Group’s position, whilst providing environments which support essential learning through brands which are sustainable and create everlasting smiles, is something Liedtke continually strives to implement. “Only when we have achieved that then we remain relevant and continue to be one of the biggest leisure operators within this space,” he adds. It is clear that Landmark Leisure’s long-term vision will provide a more dynamic and positive marketplace, drive positive customer experiences and deliver long-term benefits to the regions in which it grows. “It also comes down to the culture, the vision you create and the responsibility which comes with it,” Liedtke concludes.
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Buy into Sky Written by John Oâ&#x20AC;&#x2122;Hanlon Produced by Richard Durrant
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In November 2014, BSkyB came together with Sky Deutschland and Sky Italia to create Europe’s leading entertainment business. From three separate businesses covering five European countries, Sky plc was created and immediately set out on a journey of digital transformation.
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ith 22 million customers in the UK, Ireland, Germany, Austria and Italy Sky quickly morphed from being a federation of national companies to one team sharing a brand. “Customers will benefit as we launch exciting new services, bring them even more great TV and accelerate innovation across all of the markets in which we operate,” promised Sky CEO Jeremy Darroch at the time. Sky operates in a buoyant and dynamic market. Technology is constantly changing in the entertainment space, and the 65 million households that have not yet signed up to pay TV represent a tempting market. Sky is by no means limited to its core
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business of providing entertainment: it’s playing an ever greater role in the provision of infrastructure which carries that content, such as fibre optic cable, and now a mobile phone service. The strategy behind the merger was to share strengths and expertise from across the group to serve customers better, accelerate innovation and grow faster. Clearly the needs and expectations of German, Italian and English-speaking customers are very different, and the organisations in the three countries will continue to reflect that, but as in any corporate consolidation, synergies existed. A key opportunity lay in procurement. Accordingly, some 18 months ago
Fabio Francalancia, Group Procurement Director at Sky
EUROPE
Group Procurement Director at Sky, Fabio Francalancia, who had created and managed over a five-year period a very successful and visionary team there, was asked to gather together a group procurement team, replicating some of the concepts he had developed in Italy and leveraging best practice from procurement offices in all three countries.
T:297 mm
No more back room To say Francalancia approaches his role as Group Procurement Director with passion is, for once, no cliché. “We Italians are very passionate and anyone who knows me can see how passionate I am. What gives me energy is all the people in the group procurement team. Their work ethic, dedication and desire is amazing, I feel it in every location - together we can achieve amazing things.” It would be very difficult to resist that energy, but why would anyone want to? Procurement may not have been seen in the past as the most exciting department, but it is a function that underpins all other activities, reaches every part of the organisation and is now losing
its back office image and taking its place in the development of corporate strategy and business growth. Procurement was the first internal organisation to merge into a single team. “We are expected to be a change agent, creating a single approach to buying and a single checkpoint before spending any money.” Francalancia’s primary goal was to spread a positive attitude. It’s easy to fall into the old back office admin attitude, rubber stamping other people’s purchasing decisions, he says. But it is better to be a change agent, provoking initiatives and offering internal stakeholders the chance to gain efficiencies through new technology. “We are that change agent across the three countries.” The size and composition of the now merged team has changed very little. It already consisted of dedicated professionals, and the team were bought into the vision. Different challenges were presented in each country – the UK for example had a mature procurement platform in place, whereas Germany had an undeveloped one – it was more like a startup. “Once we had a clear view of our roles, the
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next thing was to turn to the tools available,” Francalancia explains. “Previously a Procurement Manager working in one country wouldn’t have had full visibility of requisitions coming in from the others – he had to call them first. But that is not the case anymore ” Believing in better The big technical story is around the move from on-premises procurement systems to an integrated, cloudbased system. January 2017 saw the migration of all group procurement activities to SAP’s Ariba platform, which has made buying, contracting, and managing cash as easy and intuitive as using Amazon, eBay, and PayPal. It contributes scalability, mobility and above all transparency to the entire operation. Ariba Cloud is a procurement tool that manages sourcing and procurement processes from end to end in a single system used by all the users across the three countries. Ariba helped the transformation of Sky procurement into a categorydriven organisation, one of Francalancia’s principal objectives.
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Instead of a single individual in each of the five offices dealing with a particular category, such as hardware, software, editorial production, marketing or technology, teams now work as a centre of excellence in each category and are spread throughout the organisation. “You can’t be an expert in 20 categories,” Francalancia states, “and if one individual is an expert in digital procurement for example, it is better that all three customer organisations get the benefit from that expertise.” Today there are around 80 people reporting into him; where they are sitting does not matter anymore. However, it isn’t true to say that procurement activity is limited to those 80 professionals. When a strategic procurement choice has to be made, an average of 10 people will typically be involved. Only two of those belong to the procurement team but the other eight are crucial to that decision, therefore part of what may be termed an extended virtual team. As he insists, systems, processes and people are three legs of the same stool. “Category management across
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the three countries will never happen if we are not strong in each of these areas,” Francalancia says. “But with these three concepts firmly in place I am sure we will build a progressive procurement organisation”. Too often he sees the result of companies enduring legacy systems they can’t rely on, or if the systems are sound they fail to invest in people, or they don’t have the support from the leadership that is needed to improve procurement. It’s a single story line and it needs to be intact. “At Sky Italia I had the good fortune to build something really good – now I can do even better things for the group because we have many more resources, intelligence and talent around us, and the willingness is there.”
“Customers will benefit as we launch exciting new services, bring them even more great TV and accelerate innovation across all of the markets in which we operate” – Sky CEO Jeremy Darroch
Procurement in a lead role His team contains a broad range of talent including potential leaders. “Development of that talent is crucial. We can’t succeed without it. Developing people’s careers is a necessity for the business.” Some key jobs need to be filled more urgently though, which is why talent is being
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hired. Take Jane Dormer, who was appointed as Group Procurement Director, Marketing & Digital only a matter of months ago: Jane previously held senior roles at British Airways and Coca-Cola, where she was the Strategic Procurement Director for Western Europe. She was attracted by the challenge of helping shape the new procurement landscape. “There was a clear job to be done around delivering efficiencies. We had to raise our profile and our game to ensure we are trusted advisers and partners within the business, able to innovate in a brand new world. I also have a strong belief in being a strategic partner to our suppliers, making sure we are driving the right partnerships with the right people in the new setup.” In this she echoes the sentiments of Francalancia, for whom the supplier relationship means dealing with individuals who are as committed to the Sky account as his own people, forming another arm of the virtual procurement team. “Sky was on this journey but still had some way to go, so I saw it as a challenge to help support and lead Sky’s vision
to create the world’s best customer led information and communications company by innovating and challenging the market. All those words can be applied to group procurement.” As well as attracting and retaining the best talent internally, she adds, vendors should understand that Sky wants to be a strong business partner for them. “If Sky becomes the best client in their stable, and the best people there want to work on our account, that will not just be because Sky is a great entertainment and communications company but because Sky’s an effective operator, and they know their role within the bigger picture.” A mania for consensus Another key role redefinition was the recent appointment of Tony Sturcke from his former job as Head of Technology and Entertainment Procurement at Sky to that of Group Procurement Director, Technology. “We are applying a strong category focus across the group,” he explains. “I’m responsible for the technology which covers our IT systems, our broadcasting technologies; the
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delivery of content to the screens and mobile devices.” He also oversees procurement for Sky’s telecoms networks, a fast growing business. All in all there can’t be much he doesn’t touch. And most of that is a moving target, given the speed at which technology is being developed. As an example he points to the launch of Sky Q, the companies next-generation home entertainment system which gives customers the ability to watch shows from their box, whether live, recorded or on demand, anywhere around the home on another TV or tablet as well the choice to pause on one TV screen and pick up where you left off in another. It’s streets ahead of any competing product and the technology that supports it is cutting edge. “The organisation has diversified and expanded over the last 10 years quite rapidly from the traditional direct to home service to offering services from a choice of platforms, whether that is OTT, satellite, cable or mobile,” says Sturcke. “What has driven this are the core strengths of Sky – delivering the best content whether through original programming, or entertainment
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“There was a clear job to be done around delivering efficiencies. We had to raise our profile and our game to ensure we are trusted advisers and partners within the business” – Jane Dormer, Group Procurement Director, Marketing & Digital
or sports content, where we are seen as the brand leader in each country.” Part of Tony Sturcke’s role is to keep the company’s key technology partnerships working for the benefit of both sides. For example, we already looked at the way migration to Ariba is being managed: however there are a host of key relationships that keep Sky’s infrastructure running smoothly in the longer term. A good
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“Working with great partners like HP and Oracle really enables our business: we look on it as combining our core strengths with theirs to enable the business and simplify how things are done” – Tony Sturcke, Group Procurement Director, Technology
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example is Sky’s deep engagement with HP, a primary provider for much of the company’s desktop servers and infrastructure. “We work closely with HP on innovation and the benefit is really felt among our customers both internal and external – for example we host key applications, supporting our key businesses such as Sky Sports and Sky Store, on this infrastructure. Working with great partners like HP and Oracle really enables our business: we look on it as combining our core strengths with theirs to enable the business and simplify how things are done.” Getting the right people in place has been a cornerstone of Fabio Francalancia’s vision (which he himself admits amounts to a mania). Technology giants like HP and Cisco
were among many companies that had direct relations with the three national companies: today Cisco’ former UK account manager and HP’s manager on the Sky Deutschland account were chosen as key account managers for the new global business. “It’s great to be working with best of breed partners but you need their people to buy into the vision too. Our partners have been asked to bring their best people to Sky to serve our relationship. They should, as SAP did with Ariba, be able to suggest which kind of system was best fitted to Sky’s vision of building an agile, expanding virtual organisation, then coming to us with a solution aligned to our vision.” That, he says, defines good practice in a supplier – the ability to listen, capture the vision and then shape their solution to the customer.
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Express
YOURSELF! Hi-Trans Express MD John Dow, and strategic planning manager, Brian McAvoy, tell Niki Waldegrave how Business Intelligence, a new CRM and Track â&#x20AC;&#x2DC;n
Trace are revolutionising the business
Written by Niki Waldegrave Produced by Josef Smith
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i-Trans Express is a national provider of dynamic freight, warehousing and logistics management services in Australia and about to celebrate its 60th birthday.
But instead of looking forward to a relaxing future of golf and retirement, the 60-year-old family-run business is implementing a number of strategic initiatives to ensure it emerges stronger from the current resources decline. Key to that is setting itself apart from its competitors, mainly by investing in technology, its
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people, enhancing Track ‘n Trace capabilities and taking Hi-Trans Express’ customer service to a new level of excellence. Managing director, John Dow, says: “We’ve taken many strategic initiatives in the last 12 months to help improve our access to information in order to help us better manage the business. “In July 2016, we moved into a new Adelaide depot. The facility was done to budget and on
schedule by Sagle Constructions and provides 8,000 square metres under roof. That more than doubles the space available to serve our customers and added warehousing to our Adelaide capabilities.” It’s also invested significantly in its people. The business has had a stable executive leadership team for more than 10 years and has recruited key personnel over the last 12 months, including additions in Strategic Planning, Sales Management, Organisational Development, Learning Development and Depot Management.
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“These additions will allow us to fully realise our strategic and operational expectations both today and moving forward,” adds Dow. “Our staff are now realising that they’re able to grow into bigger and better positions within the company.” Tech transformed
Brian McAvoy, Strategic Planning Manager
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Since September 2015, Hi-Trans Express has also undergone an IT infrastructure upgrade and updated its Jaix Transport and Logistics Software System, which was initially implemented in the 1980s. While there
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have been numerous updates to the system since then, the most recent update has been the largest one yet. â&#x20AC;&#x153;Jaix is our core business system. The new upgrade keeps us flexible and gets us on a modern platform.â&#x20AC;? adds Dow, who owns the company with his brother Ross. Jaix is a fast, flexible, fully customisable freight management system which offers GPS monitoring for the local delivery fleet, freight scanning support and provides a platform for integration to other systems, from which Hi-Trans can deliver powerful new improvements.
John Dow, Hi-Trans Express MD
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“The new features allow us to respond better to our customer needs” adds Dow. “It also leverages our investments in Business Intelligence and CRM sales mobility to drive the business forward.” When strategic planning manager, Brian McAvoy, joined Hi-Trans last year he recommended that the Customer Relationship Management (CRM) system be introduced. He also championed Business Intelligence (BI) to provide real-time visibility for business performance, and says it now provides a real picture of how the business is performing day-to-day, week-toweek, and month-to-month.
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“We’re extracting everything out of the freight management database and producing the BI visuals and reports,” McAvoy explains, “which helps our managers perform better as it’s giving them live, up-to-date information, as it happens.” In November 2016, Hi-Trans also restructured the sales department and McAvoy says the new CRM system has given sales managers visibility to rep activity and performance. “It’s a game-changer,” he
claims. “Because it gives our sales managers the ability to really determine if the reps are exhibiting the proper activities and getting the desired results. “And they can respond more favourably and unfavourably depending on those results, whereas before that visibility was often elusive. “With the CRM done properly, the sales reps see it as a productivity and results enhancement tool, not just a management tool. And
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that’s where we’re at, trying to drive that point home with training and mentoring and coaching. “We’ve given them iPads for when they’re out in the field and with that visibility we can now see both what our reps our doing and their performance. It’s made them more accountable, they’ve got more ownership and they’re better able to provide timely and relevant solutions to our customers.” Tracking traction
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S U PAPULS Y TCRHA AL I N A
for 2017, upgrading the business’ track and trace abilities now and existing capabilities over the next six the next step is to enhance them.” months by using GPS and scanning Dow jokes about how back in the at the pallet level early days, when his within its facilities father, company founder to provide real-time George, was still running updates as it moves the business, that “all through the system. of our consignment They explain how notes were bundled this, in turn, leverages up and sent off to the People who work at accounting office, technology to punched through ledger reduce paperwork Hi-Trans Express machines and printed and streamlines out invoices that we used to fold up the freight tracking process for and send out to our customers. both staff and customers. “Today, we’re used to the “The ultimate goal of this project idea of technology in the parcel is to take Hi-Trans’ customer service business, where somebody shows to a new level of excellence,” adds up and they have a scanner to McAvoy. “We’ve got some good
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scan your letter or small parcel. “Customers now expect that same sort of technology when they’re dealing with palletised freight, less than truck load (LTL) and less than container load (LCL) freight, like we deal with. “It will alleviate a lot of customer service, simply by them knowing at any given time where it was last scanned, and being virtually advised that it’s about to arrive at their door today; the same as a parcel.” With the decline in the resources business, many Australian transportation businesses have suffered recently, but the duo say they’re confident the new initiatives implemented will comfortably steer them through.
“From BI, to CRM and Track ‘n Trace – these will set ourselves apart from the competition and help us be one of the leaders that emerges from this downturn stronger than we went into it,” adds Dow. “Our strategy has been to grow via strong relationships with existing customers, leading to new opportunities and organic growth rather than acquisitions. “In doing so, we are always open to business diversification opportunities that will logically expand our core LTL/LCL business. When the core business is exactly where we want to be, we could look to reinvest in related logistics services.”
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ENSURING THE HEALTH
NEW SOUTH WALES OF
Written by Alice Young
H E A LT H S H A R E N S W
How HealthShare NSW has transformed itself into a vital brand which continually betters the lives of staff and patients alike
A
s the service delivery sector of NSW Health – the Ministry of Health for New South Wales, Australia – HealthShare NSW provides a wide variety of services for public health agencies in the local area, including equipment, food, supply chain services, linen, financial assistance, and staff. The company is proud to aid New South Wales and enhance lives along the way, with its motto: ‘People helping people deliver excellent healthcare’.
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HealthShare boasts around 6,400 employees – 90 percent of which work with patients directly, providing meals and supplies – who tirelessly serve at least 140,000 healthcare workers. Those workers then assist more than a million patients a year, bolstered by the hard work that HealthShare is continuously – albeit quietly – doing in the background. It is this behind-the-scenes work that ensures the healthcare industry is able to run effectively.
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The company maintains a specific code of conduct, named CORE (Collaboration, Openness, Respect, and Empowerment) which teaches staff not just how to act, but ways to improve and ensure both contentment and engagement within the workforce. Collaboration is about working as a team, supporting one another, and sharing ideas; Openness aims to ensure staff have confidence in their work, communicate with one another, and feel able to offer feedback; Respect refers to the ways in which staff treat both colleagues and patients, celebrates inclusivity, and aims to enable swift problem resolution;
and Empowerment is about encouraging staff to make decisions, recognition of achievements, and the pursuit of innovation. HealthShare has several ongoing initiatives regarding the happiness and continuous improvement of its people, including support programs for new starters, leadership workshops, and appraisals, among others. The ultimate aim for HealthShare is to be seen as a highly positive working environment, alongside recognition by customers of the hard-working and reliable company it is. HealthShare offers some truly extraordinary services, including
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Is your supply chain serving your strategy? In today’s global economy, supply chains are at once critical to an organisation’s success and highly vulnerable to disruption. Increasing demands are being placed on organisations as a result of changing customer and patient needs and expectations. The increasing frequency of disruptive economic, environmental and social events work to compound this. By focusing on developing the right capabilities, whether around product launch, strategic sourcing, manufacturing, technology or your distribution network, a high-performing supply chain can contribute significantly to differentiation and service excellence. It sounds like a tall order, but our research demonstrates that leading organisations manage their supply chain as a strategic asset to drive differentiation and boost performance, manage cost and profitability.
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its EnableNSW program, which choice and variety. Historically, provides mobility and physiotherapy food has not always been a priority equipment to patients with chronic for HealthShare, but it has more illness or disability, allowing them recently recognised the impact to live more independent lives. The food has on patient emotional – as company well as physical provides – wellbeing. thousands of New dietary items a year, management and even software has includes allowed the maintenance business to Number of employees at as part of create fresh HealthShare NSW the service. menus with up to Another 18 meal choices focus of HealthShare’s is the food at a time, using My Food Choice it provides; the company serves – a popular program now live around 24 million meals a year across several locations. to patients, and with these huge Another vital component of numbers in mind, it has ramped healthcare is linen supply, something up its efforts to provide greater which adds to the necessity of
6,400
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Proud supply chain transformation partners with NSW Health
Company profile
Creating innovations that matter to people Philips strives to make the world healthier and more sustainable through innovation. Weâ&#x20AC;&#x2122;re inspired by people, and by understanding their needs and desires we deliver innovation that matters and improves lives - to people, to businesses, to hospitals, to homes and families. Our commitment is to deliver new healthcare technologies, as well as innovative and locally relevant consumer products that make a real difference to our customers, consumers and stakeholders across the globe.
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We believe that the best way for us to do this is through deep understanding of peopleâ&#x20AC;&#x2122;s needs and desires. When we bring people and innovation together, we create the next generation of technology and things that people truly want and need. These are meaningful innovations that help people to be healthy, live well and enjoy life. This sets us apart and makes us Philips. For more information visit www.philips.com.au or contact us at 1800 251 400
Diagnosis
Treatment
Connected care and health informatics
Home care
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cleanliness in any healthcare setting, and is required to be changed and cleaned on a very regular basis. HealthShare manages this across New South Wales hospitals and provides over 40,000 tons of sheets, towels, surgical gowns, and blankets a year. This secures its place as the largest supplier if linen for the healthcare sector in Australia. By dealing with linen efficiently in-house, around $10.4 million has been saved. Alongside this is an emphasis on the importance of uniforms, which
are now tailored to healthcare professionals by HealthShare, giving them options and a degree of individuality. Each type of profession has its own uniform colour â&#x20AC;&#x201C; making identification simpler for patients â&#x20AC;&#x201C; and a new online ordering system enables them to include measurements and preferences. A seemingly small improvement, yet one that contributes to the overall satisfaction of the staff wearing these uniforms. Central to all of these essential elements is an efficient supply
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chain. The Procurement Hub allows complete transparency for all involved, including a state-wide NSE Health Catalogue with its own management system, as well as a unit for dealing with larger, more specialist pieces of equipment, and a Supply Chain Information System (SCIS) which acts as a hub for all company-supplier needs. The Clinical Product Evaluation Registry (CPER) is one element of the online network for accredited
users to access. Access is simple, allowing suppliers to log in with ease and see the status of their dealings with HealthShare. CPER acts as a repository of product evaluation data, with product evaluation outcomes from specialists and committees. It allows HealthShare and its suppliers to maintain and monitor all product information using a centrallymanaged IT system, on which users can obtain any information
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on any item, past or present. The HQRS – Health Quality Reporting System – is another element of the SCIS, and is a secure system that can be used to flag up quality issues with suppliers, enabling them – in a simple and user-friendly way – to address any problem and take action. It is this impressive level of openness which allows HealthShare to be as welltrusted and involved with suppliers as it has gained a reputation of being, ensuring the healthy and well-oiled supply chain it requires to serve New South Wales. This people-focussed business is truly one that has transformed itself into a beloved necessity. Long may it continue to improve the lives of the state’s citizens.
Guineaâ&#x20AC;&#x2122;s largest greenfield investment in 40 years Written by Wedaeli Chibelushi Produced by Richard Deane
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Guinea Alumina Corporation S.A. (“GAC”) is developing a bauxite mine and export facilities, at the same refining its CSR policies. We speak to the company’s Director General Aissata Beavogui about this important project for Guinea
“
I’m proud to be part of this project because it will bring hope and opportunities for Guinea,” Aissata Beavogui, Director General of Guinea Alumina Corporation S.A. (“GAC”) tell us. Beavogui is spearheading the mining company’s bauxite export project, currently under construction in what is the largest greenfield investment in Guinea in four decades. A later phase envisages an alumina refinery. GAC is passionate about the export project, though this is by no means the company’s sole focus. Corporate Social Responsibility (CSR) and connecting with the national mining industry are also
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priorities for GAC. For instance, it is a platinum sponsor of the Symposium Mines Guinée – a summit organised by the Guinean government. We quiz Beavogui about GAC and how its ongoing project benefits Guinea. Beavogui tells us that GAC was established in 2001. The project advanced well through completion of a Bankable Feasibility Study (BFS) along with approval of the Environmental and Social Impact Assessment (ESIA). However, the global financial crisis of 2008/2009 impacted the ability and interest of some of the partners to fund their share of equity. Following a strategy change within BHP Billiton and Global
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Shapoorji Pallonji And Company Private Limited
Corporate Office: SP Centre, 41/44 Minoo Desai Marg, Colaba, Mumbai 400 005, India Tel: + 91 6749 0000 Fax: +91 66338176 Website: www.shapoorji.in Regd Office: Nagindas Master Road, Fort, Mumbai 400 023
M A FI N R II N CG A
Alumina in 2013, Mubadala and DUBAL of the United Arab Emirates acquired the remaining shares in the project in May 2013. They then transferred the ownership of GAC to the newly formed Emirates Global Aluminium (EGA). “It was a very good thing for the country, because it’s the first-time the UAE has invested significantly,” Beavogui says. “Guinea is a major resource holder, and the UAE is an inspiring example of what countries with natural resources can do in development.” EGA, which operates two aluminium smelters in the UAE, has consistently stated its strategic intent to secure raw materials through upstream
193 THE NUMBER OF DIRECT EMPLOYEES WORKING AT GAC
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Aissata Beavogui Director General
Aissata Beavogui is the Director General of Guinea Alumina Corporation S.A. (“GAC”), a wholly-owned subsidiary of Emirates Global Aluminium (“EGA”). Beavogui has more than 15 years of experience in Audit, Finance and Accounting in the USA and Guinea, particularly in the financial services, Oil & Gas and Communications industries. She has previously held various senior positions with various major Audit advisors and consultants, and joined GAC as Governance and Compliance Manager in May 2014 and then in January 2016 in her current role.
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She holds a BSc in Accounting from the State University of New York- Binghamton, USA and a Certification as a Leading Professional in Ethics and Compliance from the Ethics & Compliance Officers Association (“ECOA”). She is fluent in both French and English.
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investments in bauxite and alumina. Beavogui explains: “Strategically the objective is upstream integration from bauxite mining to alumina refining and then to the existing aluminium smelting. Ownership of a controlling position in bauxite is an important factor.” The GAC bauxite mine project is a cornerstone of this strategy, which will ultimately yield a vertically integrated business with the capability of self-managing the processes from mine to metal. The acquisition led to GAC revamping its whole infrastructure. Beavogui walks us through the current project. “Right now, we’re in the construction phase,” she explains. “We are constructing the infrastructure that will allow us to export bauxite. The global demand for high-quality bauxite is mostly in Asia, such as China, and is expected to grow significantly over the next decade.” The infrastructure being built includes a multi-user port terminal, commercial quay and supporting
infrastructure for mining, rail, and marine operations. GAC is also upgrading a rail system linking the mine to refinery locations, a harbour and channel works. A later phase envisages the expansion of the bauxite mine and existing railway, expansion of the GAC Port Terminal and construction of an alumina refinery. Differentiator The mining services sector is a majorly competitive business, with Guinea being a current focus for major foreign investment. However, Beavogui asserts that GAC is at an advantage. She explains: “What differentiates GAC is the expertise. If you combine it with EGA, we have nearly 40 years of experience in the aluminium industry. We actively apply world-leading standards and technologies in all aspects of the project and we ensure that everything we do is in line with sustainable practices in environment, health and safety.” We’re struck by two further
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Design. Build. Deliver. Fluor delivers integrated engineering, procurement, fabrication, construction, maintenance, and project management solutions to clients globally. With some of the worldâ&#x20AC;&#x2122;s foremost capital projects under our belts, our innovative solutions are the benchmark for capital efficiency and predictability for the mining and metals industry. We are proud to partner with Guinea Alumina Corporation S.A. on the development of their major bauxite mine in Guinea and to continue contributing to the growth of the mining industry in Guinea. www.fluor.com
Š2017 Fluor. All Rights Reserved. ADGV145717
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unique GAC features. Firstly, the company is headed by Beavogui, a Guinean woman. “It’s always been the motto of EGA management that this is a Guinean project, therefore we need the face and the image of the Guinean people as it is their project,” she says. The mining sector is notoriously maledominated. In a 2014 study of the top 500 mining companies globally, Women in Mining UK found the mining industry had fewer women on boards than any other major industry. “I think it’s a big signal that EGA sent out in supporting women leadership by appointing me,” Beavogui, appointed in January 2016, says. “Especially in the context of my country where so few women are hired in high positions, we’re still struggling to have equality in industries such as mining
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“We have built a strong presence in-country with the support of the government and people of Guinea, and we are committed to creating an enduring legacy for the communities through infrastructure such as schools, health facilities, and a whole set of programmes for individuals impacted by our project” AISSATA BEAVOGUI, Director General
WORLD LEADER IN THE CONSTRUCTION AND MAINTENANCE OF TRANSPORT INFRASTRUCTURE
Colas, a subsidiary of the Bouygues Group, is a world leader in the construction and maintenance of transport infrastructure, aiming to meet the challenges of mobility, urban development and environmental protection. It performs some 90,000 projects with 2,000 material production units each year. Net profit attributable to the Group amounted to 355 million euros. More than 500 local employees will learn from Colas’ expertise in the GAC project of Guinea.
Phone: +33 1 47 61 75 00 Fax: +33 1 47 61 76 00
www.colas.com/en contact-rse@colas.fr
AFRICA
or even the government itself.” GAC’s social consciousness is also notable. The firm works with NGOs, contractors, consultants and local government services to implement community-based initiatives. Beavogui explains: “We have built a strong presence in-country with the support of the government and people of Guinea, and we are committed to creating an enduring legacy for the communities through infrastructure such as schools, health facilities,
and a whole set of programmes for individuals impacted by our project.” These programmes include those that improve the productivity of livestock and agriculture for the impacted communities. GAC also provides training for Guinean adults and youths. “We provide adult literacy training and local skills enhancement programmes,” Beavogui says. “We give information on health, for example drugs and alcohol, HIV programmes, or malaria.”
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Alongside the Guinean people, GAC aims to play a pioneering role in Guinea. It aims to preserve a sustainable environment based on world-renowned and national standards. GAC works with the Guinean Ministry of Environment to apply for an EISA (Environmental and Social Impact Assessment) certificate. “In collaboration with our government, we have produced an action plan in order to suppress,
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eliminate or reduce the impact on the environment and communities,” Beavogui tells us. The action plan is followed and regularly checked by the government. Along with implementing its environmental action plan, GAC has several other ambitious future plans. For instance, it will share its accrued knowledge with attendees of Symposium Mines Guinée in May 2017.
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GAC’s future plans also extend outside of Guinea. When asked whether the firm wanted to expand its international market, Beavogui responds: “Absolutely, we are keen to sell our bauxite wherever the market leads us. Wherever the demand is, we will provide.” GAC’s ambitions sound grand, yet achievable. Guinean bauxite is amongs the highest quality worldwide. GAC’s bauxite mine is in the Boké region of north-west Guinea, where it holds a concession on more than one billion tonnes of bauxite. Balanced with extensive CSR policies, GAC’s wider goals cement the firm as a definite ‘one to watch’ on the global mining stage.
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