Supply Chain Digital magazine – April 2019

The digital transformation of the retail supply chain

A P R IL 2 0 1 9

Department of Culture and Tourism Transforming procurement in Abu Dhabi

www.supplychaindigital.com

Cirque de Soleil

Running the show through collaboration

DEUTSCHE BAHN KEEPING TECHNOLOGY TRANSFORMATION ON TRACK CPO Uwe Günther on managing procurement amid digital disruption

TOP 10

Supply chain qualifications

FOREWORD

W

elcome to the April issue

Elsewhere, Simon Mardle, Retail Sup-

of Supply Chain Digital.

ply Chain Principal at Capgemini, tells

Our cover star this month is global

us how the success of digital transfor-

railway behemoth Deutsche Bahn. We

mation journeys starts with leadership

sent Sean Galea-Pace to Berlin to sit

recognising the value of data and a

down with Uwe Günther, Chief Procurement Officer, as

“single source of truth”. With the likes of Apple, Mercedes-

he discusses the pro-

Benz and Ford investing

curement methods his

heavily into blockchain

company has utilised

technology, Eric Piscini,

amidst a significant digital transformation.

Uwe Günther, DB’s CPO

CEO of Citizens Reserve, looks at the current and future landscape of block-

We also spoke with Tom Derry, CEO of the Institute for

chain in the supply chain.

Our top 10 this month looks at the

Supply Management (ISM) and how

supply chain management and logis-

supplier relationship management

tics qualifications to watch out for.

remains crucial in the evolving digital landscape. “We’re moving into an era

Don’t forget to check out our exclu-

where innovation and collaboration

sive reports with Coupa Software,

between the OEMs and the suppliers

Cirque du Soleil and more.

is more recognised as a source of value,” he says.

Enjoy the issue!

Harry Menear harry.menear@bizclikmedia.com w w w. s u p p l y c h a i n d i g i t a l . c o m

03

Click the home icon (top right of page) to return to contents page at anytime

EDITOR-IN-CHIEF

HARRY MENEAR MANAGING EDITOR

OLIVIA MINNOCK

PRESS PLAY! WHEN YOU SEE THE PLAY BUTTON ICON, CLICK TO WATCH OUR VIDEO CONTENT

CREATIVE DIRECTORS

DANIEL CRAWFORD STEVE SHIPLEY CREATIVE TEAM

FRAZER JONES LUCIE MILLER ERIN HANCOX ALICIA LOLOTTE PRODUCTION DIRECTOR

Wherever you see these icons in the magazine click to be directly connected via social media

DANIELA KIANICKOVA PRODUCTION EXECUTIVE

LUNA GUTHRIE DIGITAL VIDEO DIRECTOR

JOSH TRETT

05

DIGITAL VIDEO PRODUCER

EMILY AMOS SOCIAL MEDIA MANAGER

CALLUM RIVETT PROJECT DIRECTORS

CHARLOTTE CLARKE STUART IRVING JUSTIN BRAND DENITRA PRICE ARRON RAMPLING RICHARD DEANE

CLICK NOW TO SUBSCRIBE FOR FREE

OPERATIONS DIRECTOR

ALEX BARRON GROUP MANAGING DIRECTOR

JAMES PEPPER CHIEF OPERATIONS OFFICER

ANDY TURNER PRESIDENT & CEO

GLEN WHITE

Visit the supplychaindigital.com website and sign up to receive exclusive access to one of the world’s fastest growing business news platforms.

IF YOU LIKE US

PUBLISHED BY

FOLLOW US!

CONTENTS

10 Digital disruption in the railway industry Deutsche Bahn AG:

40

Transforming supply chains in retail

Institute for Supply Management:

Supplier relationship management in the digital supply chain

50

60 Citizens Reserve:

bringing blockchain to the supply chain with SUKU

80 70 Building the Supply Chain of the Future

94

Events & Associations

CONTENTS

100 118 Exterran

Lufthansa Cargo AG

168 Coupa Software

132 The Department of Culture and Tourism

184 Cirque du Soleil

152

Valmet

198

WERC Association

10

DEUTSCHE BAHN Digital disruption in the railway industry APRIL 2019

11

WRIT TEN BY

SE AN GA LE A-PACE PRODUCED BY

JUS TIN BR AND

w w w.suppl yc ha i ndi gi ta l. com

DEUTSCHE BAHN AG

Uwe Günther, Chief Procurement Officer at Deutsche Bahn, discusses the procurement methods his company has utilised amidst a significant digital transformation

A

Photo: Thomas Herter © Deutsche Bahn AG

s an international provider of mobility and logistics services operating worldwide in over 130 countries,

Deutsche Bahn (DB) is a leader in rail passenger transport across Europe. Overlooking the 12

busy streets of Berlin, Germany, from his desk in the heart of the city, Uwe Günther, Chief Procurement Officer (CPO) at DB, says his procurement strategy has transformed significantly since first joining the firm in 2007. “From the beginning, I have put an increased focus on a better structure, a consistently applied strategy and a more reliable procurement network,” says Günther.

“Since I joined Deutsche Bahn as CPO, we have worked to bring the procurement function together as we needed to provide all the necessary goods for our business units in the areas of public transport, logistics and infrastructure. In parallel, we have to ensure the right quality and cost as well as enabling efficiency.”

APRIL 2019

Photo: Martin Jehnichen © Deutsche Bahn AG

DEUTSCHE BAHN CHIEF PROCUREMENT OFFICER, UWE GÜNTHER, TALKS EXCLUSIVELY TO BUSINESS CHIEF EUROPE

Photo: Max Lautenschläger © Deutsche Bahn AG w w w.suppl yc ha i ndi gi ta l. com

13

DEUTSCHE BAHN AG

By connecting customers to other

16

ensure the right technology is being

parts of Germany and beyond, DB

implemented, the company’s technical

offers passengers a safe, efficient and

and commercial teams collaborate to

affordable method of transport to allow

decide on the best way to approach

its customers to explore all Europe and

procurement. “We made the decision

the world have to offer. Considered the

to change the direction of our digitali-

longest rail network in Europe, it con-

sation. We started with upgrading the

sists of over 33,000km and more than

infrastructure, bringing out new trains,

74,000 switches. Transporting around

improving passenger information sys-

2.7bn people annually and operating

tems and so much more related to new

approximately 250 high-speed ICE

technologies,” explains Günther. “We

trains, Günther understands the im-

also have a strong technical depart-

portance of meeting the needs of DB’s

ment, which works very well with the

customers amidst constant technology

procurement department. Together,

transformation. “I believe the customer

we’re defining which technology is the

has changed a lot due to the mobility of people increasing in the past few years,” Günther explains. “We’re in competition with cars and airplanes as well as other trains. Personally, I am convinced the train is the best way to move from one location to the other because it provides safety, quality and convenience.”

DIGITALISATION IN THE RAILWAY SECTOR With technology transforming the way companies across all industries conduct their business, DB has put a particular emphasis on digitalisation over the past few years. In order to APRIL 2019

DEUTSCHE BAHN CHIEF PROCUREMENT OFFICER, UWE GÜNTHER, TALKS EXCLUSIVELY TO BUSINESS CHIEF EUROPE AND EXPLAINS ‘DB2020+’’

w w w.suppl yc ha i ndi gi ta l. com

17

©Jonas Holthaus

Success comes from working together. Creating networks, exchanging knowledge, consolidating strengths: In line with this philosophy, STRABAG SE, the leading construction group in Central and Eastern Europe, brings together the competence of well-recognised brands under a single roof. The close cooperation with its many subsidiaries and associates – among them German-based Ed. Züblin AG and STRABAG AG – helps set new milestones in the engineering arts around the world. With local know-how, a proprietary raw materials network and a broad range of services, STRABAG SE is known beyond the Austrian and German borders in Eastern and South-East Europe, in many countries of Western Europe and on other continents as a reliable partner for challenging construction projects of all sizes.

The hard work and dedication of our 75,000 employees allow us to generate an annual output volume of about € 16 billion. Our range of services covers the entire construction value chain: from building construction, civil engineering and tunnelling to classic transportation infrastructures all the way to specialised business fields such as sports facilities, hydraulic asphalt engineering, landfill construction and power plants, the production of construction materials and the provision of construction-relevant services. Our international network ensures the successful transfer of information and technologies. By activating an enormous treasury of resources, specific to each project, we can guarantee the smooth progress of construction work for our clients around the world. Proprietary asphalt and concrete plants, quarries, gravel pits and cement plants make us independent from local supply bottlenecks and external suppliers.

The result: fair prices, top-quality raw materials and constant access to state-of-the-art technologies as a prerequisite for successful construction. At the same time, the digitalisation of our processes promotes transparency and increases the efficiency and quality of our work.

We believe in the strength of the team. And that this makes all the difference in creating a product that stands out from the rest.

ZÜBLIN Corporate Video www.zueblin.de, www.strabag.de

Ed. Züblin AG, Albstadtweg 3, 70567 Stuttgart/Germany, Tel. +49 711 7883-0, info@zueblin.de, STRABAG AG, Siegburger Str. 241, 50679

9 Cologne /Germany, Tel. +49 221 824-01, info.de@strabag.com

DEUTSCHE BAHN AG

best for our trains, for our business and for the infrastructure. We have also decided jointly, from the technical and commercial sides, what the best procurement model is.”

With a clear strategy in mind, DB has established the DB2020+ plan, focusing on three key elements: becoming a profitable quality leader, a top employer and an eco-pioneer. To optimise DB’s core business and take advantage of international growth opportunities, the German mobility leader has created an additional five-point plan. “It’s impor20 Photo: Oliver Lang © Deutsche Bahn AG

Photo: Oliver Lang © Deutsche Bahn AG

tant to us to have a clear strategy. Our underlying strategy was DB2020+, but aiming for uncompromising excellence, we have sharpened it with the creation of our agenda for a better railway through the five-point plan. In order to achieve our goals, we must increase our punctuality in passenger and in freight transport,” says Günther. “We need to increase customer satisfaction, we will invest a greater amount of money in our infrastructure, in new lines and trains. We want to become more reliable and provide better information as well as a comfortable journey to every customer. We’re expanding our services, restructuring our rail freight

APRIL 2019

21

Photo: Georg Wagner © Deutsche Bahn AG

E XE CU T I VE PRO FI LE

Uwe Günther Uwe Günther studied Electrical Engineering and Business Administration.

Before joining Deutsche Bahn (DB) in 2007, he was active in various procurement leadership positions in the aviation as well as in other industries.

From 2011 to 2014 he led the infrastructure procurement department of DB. Since July 2014 he is Chief Procurement Officer of Deutsche Bahn AG.

w w w.suppl yc ha i ndi gi ta l. com

Is supply chain the weakest link in your global strategy?

“EY” and “we” refer to all German member firms of Ernst & Young Global Limited, a UK company limited by guarantee. ED None. MUK 1903-246

Addressing an organization’s overarching end-toend supply chain and operations strategy to grow, optimize and protect their operations – no matter if local or global: EY provides the right answers as your leading integrated transformation partner in the digital age. www.ey.com/en_gl/supply-chain

DEUTSCHE BAHN CHIEF PROCUREMENT OFFICER, UWE GÜNTHER, TALKS EXCLUSIVELY TO BUSINESS CHIEF – WHY ARE PARTNERS IMPORTANT?

activities and making our rail service

the railway industry. “Railsponsible

greener to drive sustainability. In the

forms the basis for a common under-

end, the most important thing is to im-

standing of what makes a sustainable

prove service quality for our customers.

supply chain. It fosters a clear focus on

Every month, we set a new customer

supplying goods and services sustain-

record by welcoming more passengers

ably and allows us to create the same

onboard our trains; and we want to re-

standard across the industry. Together

main a mobility leader in our field.”

with the other Railsponsible members

As Deutsche Bahn puts sustain-

we look at how we measure the sus-

ability at the heart of its business, it is

tainability of different suppliers within

also a proud co-founder of the industry

the supply chain and define key perfor-

initiative Railsponsible, which aims to

mance indicators (KPIs) as we only

promote environmentally and socially

collaborate with suppliers that fulfil

responsible supply chains throughout

our CSR requirements.” w w w.suppl yc ha i ndi gi ta l. com

23

Innovative interlocking systems

Our EBI Lock 950 technology supports your evolution from electronic to digital interlocking systems For more than 10 years we are delivering IP-based interlocking solutions with Ethernet, providing full-system communications distributed down to the field elements, and separately routed power-supply. Existing EBI Lock 950 can easily be migrated to a digital interlocking system, according to the EULYNX standard. EBI Lock interlocking systems are scalable, cost-effective to install and maintain, and increase railway reliability and rail network capacity.

VISIT OUR WEBSITE

www.inosig.com

“ We are currently implementing a P2P process, which means designing an entirely digital process from the order request to the payment of the invoice” — Uwe Günther, Chief Procurement Officer, Deutsche Bahn

and use a digital system to send out digital tenders,” says Günther. “We are currently implementing a P2P process which means designing an entirely digital process from the order request to the payment of the invoice.”

FORMING KEY PARTNERSHIPS In terms of Supplier Management, Günther lays out four key areas which the company’s procurement function manages. “First we define the quality of the service and the goods we need and check that the supplier can provide them while complying with our standards. Next, if necessary, we look at the

With DB maintaining a key focus in

development of suppliers in prepara-

areas such as Smart Mobility, Smart

tion for competition. We then select

Logistics, Smart Assets and Smart Ad-

the best suppliers for our requirements

min as part of its digitalisation roadmap,

and after the tender, we make a sup-

this strategy has been aligned with

plier appraisal and give every supplier

the Finance4DB program which helps

a rating. If a supplier performs poorly,

to improve DB’s finance function and

we consider the fourth phase, which

drives digitalisation. In order to make

we call the adjustment phase.”

its end-to-end processes easier and

Having established key partnerships

its internal procurement process more

with a range of different companies –

efficient, DB has utilised Plan-to-Strat-

including Ed. Züblin, Spitzke, Thales

egy, Source-to-Contract and Procure-

Germany, T-Systems, UWC, CRRC and

to-Pay (P2P). “We want to improve the

EY consulting – Günther affirms how

transparency of our internal demand

vital developing relationships with other w w w.suppl yc ha i ndi gi ta l. com

25

SPITZKE is a leading innovator for rail mobility.

With our areas of expertise – track, technology, equipment/electrical engineering, structural engineering, logistics and production – we are already creating the future of railway infrastructure. We develop and connect our business segments systematically to ensure that sustainable mobility remains permanently available. www.spitzke.com/en/home

27

Photo: Christian Bedeschinski © Deutsche Bahn AG businesses is to achieving success

with us, it usually signifies a long-term

in the digital sphere. “In procurement,

collaboration. That’s standard for our

we have a clearly structured supplier

partnerships,” he explains. “We have

management system. However, the

very good construction partners to

most important thing is for there to be

build new tracks, bridges or tunnels.

mutual trust and cooperation with our

A long tunnel, for example, might cost

partners. If a supplier wins a tender

over €500mn so we need to ensure we w w w.suppl yc ha i ndi gi ta l. com

O U R PA R T N E R S

DEUTSCHE BAHN AG

Ed. Züblin Ed. Züblin AG is an important and long-standing supplier in the infrastructure sector of Deutsche Bahn AG. The company is able to handle demanding projects responsibly and has been one of DB AG’s leading infrastructure suppliers for many years.

Spitzke

28

As a system supplier, Spitzke has a high degree of specialist knowledge and understanding of the railway system. Supplier evaluation is always at least “good” in various performance areas. The company supports DB by independently developing innovative and new construction and logistics concepts to achieve its ecological goals. For its outstanding performance over the years, Spitzke received the DB Supplier Award 2018 in the category infrastructure.

Spitzke Fahrwegsysteme Spitzke Fahrwegysteme is an efficient and long-standing supplier of sleepers, turnout sleepers and concrete masts for the infrastructure of

APRIL 2019

Deutsche Bahn AG. Since 2013, the company has been continuously classified as a Q1 supplier and meets all product-specific qualification requirements. The continuous improvement process, which enables the company to identify errors and eliminate their causes on a sustained basis, deserves special mention. This is reflected in a comprehensive FMEA process. The company supports DB AG through close cooperation with the Quality Assurance for Procurement and Technology department of DB Netz AG in the continuous improvement of technical standards.

With a high level of competence and willingness to innovate, suggestions are introduced into the discussions and the company’s own production facilities are further developed.

Support for quality assurance is currently being tested by providing statistically processed quality data.

Thales Germany Thales Deutschland GmbH is an important and long-standing supplier of control and safety technology for Deutsche Bahn AG. It is a reliable partner in project management and a supporting pillar of DB Netz’s innovation projects in the field of LST digitalisation.

T-Systems T-Systems International GmbH has been an IT service provider and strategic partner for Deutsche Bahn for over 20 years. With its portfolio from servers and network technology as well as maintenance and services, T-Systems is a participant in all relevant tenders of Deutsche Bahn.

T-Systems was awarded the DB Supplier Award 2018 in the category General Requirements and Services.

and regional trains, locomotives and freight wagons. Since the beginning of the collaboration with CRRC, we have been very impressed with their product range, production capabilities and especially with the quality of their products. We’ve already placed orders in two product categories (shunting locomotives and cargo wagons) and are working together on the delivery of these products.

They will be in operation at DB from this year moving forward.

29 UWC

EY consulting

UWC is a high potential supplier of freight wagons and rolling stock parts, with DB signing its first contract with UWC at the end of 2018.

During the assessment phase, we aim to observe the high competences and production capabilities that UWC already has in place. We’re happy that UWC is joining our supplier pool for cargo wagons.

An Ernst & Young consultant was retained for our project “OPEXstabilisation — Introduction Regio Production System” between 1 March 2018 and 31 December 2018. The cooperation with the EY consultant as well as the execution and the quality of the work delivered were absolutely exemplary. The consultant was extremely committed and goal-oriented which meant the substantial goals could be achieved. The documentation presented by EY at project closure was of high quality.

CRRC CRRC is the world’s largest provider of rolling stock, including high speed

w w w.suppl yc ha i ndi gi ta l. com

31

have a very competent partner which can offer not only a reliable product but also provide the best innovation whilst remaining within budget.”

FUTURE PLANS With the customer always at the forefront, Günther believes there is further room for growth and affirms that DB is seeking success through business optimisation and digital transformation.

“In the end, the most important thing is

“ We want to invest a greater amount of money in our infrastructure for the implementation of new trains, with the aim to increase customer satisfaction” — Uwe Günther, Chief Procurement Officer, Deutsche Bahn

to improve the satisfaction of our pasw w w.suppl yc ha i ndi gi ta l. com

DEUTSCHE BAHN AG

“ In the end, the most important thing is to improve the satisfaction of our passengers” — Uwe Günther, Chief Procurement Officer, Deutsche Bahn 32

APRIL 2019

Photo: Oliver Lang © Deutsche Bahn AG Photo: Thomas Herter © Deutsche Bahn AG

33

Photo: Oliver Lang © Deutsche Bahn AG w w w.suppl yc ha i ndi gi ta l. com

thalesgroup.com

Decisive technology for decisive moments

8

Billion

Passengers per year benefit from Thales Technologies

- Ă Getty Images

In Ground Transportation, countries, cities and transport operators rely on Thales to adapt to rapid urbanisation and meet new mobility demands locally, between cities and across national frontiers.

Search : Thalesgroup

“Sustainability is very important for the procurement function at DB. Railsponsible means that we have a common understanding of what makes a sustainable supply chain” — Uwe Günther, Chief Procurement Officer, Deutsche Bahn

sengers. While we have significantly

and change further. Günther, how-

increased the efficiency of our service,

ever, remains well-positioned in his

there is always room for improvement,”

understanding of what DB must do in

explains Günther. The organisation

order to sustain success in the field.

is aiming for 80% punctuality across

“The customer has an ever-increasing

its network, and Günther stresses the

expectation for punctuality, technology

importance of getting every single

and information available onboard the

member of staff on board to achieve

train and it’s vital that we reflect that.

this goal. “It’s important for everyone

The customer is paying for the service

within the company to think about what

we provide so we have to make it the

they can do to improve that KPI.”

best it can be.” To maintain the service

Over the next few years, customer expectations are predicted to adapt

with as little disruption as possible, DB is mindful of when and how it carries w w w.suppl yc ha i ndi gi ta l. com

35

€44bn+ Approximate revenue (2018)

1994

Year founded

320,000

Approximate number of employees

37

out improvements. “For example, we

for operations at the end of 2017. Now,

try to bundle all the different construc-

every month we have a new passenger

tion works we need together when

record. We’re using more trains than

making an investment in a new track.

ever before in that area and we’re a real

This means that we are trying to realise

competitor against airplanes. That’s

a tender for a track of over 100 or more

a significant success story for us.”

kilometres with a single construction

Looking to the future, Günther affirms

company,” explains Günther. “A good

his company can continue to grow over

example is the new track between

the next few years. “Deutsche Bahn

Berlin and Munich which we opened

will continue to be successful as the w w w.suppl yc ha i ndi gi ta l. com

DEUTSCHE BAHN AG

“ We’re winning a greater number of tenders and as a result of that I believe the procurement volume will increase in the upcoming years” — Uwe Günther, Chief Procurement Officer, Deutsche Bahn

38

Photo: Bartlomiej Banaszak © Deutsche Bahn AG

APRIL 2019

business itself and the company’s excellence are constantly growing. We are catering to more and more passengers, and our cargo business is growing too. Customer numbers in the logistics area are increasing across over 70 countries worldwide. We’re winning a greater number of tenders and as a result of that, I believe the procurement volume will increase in the upcoming years. However, that requires the development of my organisation, also in terms of digital know-how, and we would like to become a real worldclass procurement entity,” he explains.

“I also want procurement to become a place for the personal development of every employee. I want procurement to be the place to be where everyone can develop, increase their know-how and

Photo: Max Lautenschläger © Deutsche Bahn AG

become a better part of our railway business at Deutsche Bahn.”

w w w.suppl yc ha i ndi gi ta l. com

39

C P O S T R AT E G Y

Institute for Supply Management: 40

SUPPLIER RELATIONSHIP MANAGEMENT IN THE DIGITAL AGE Tom Derry, CEO of the Institute for Supply Management (ISM), explores how supplier relationship management remains crucial across an ever-changing industrial landscape WRITTEN BY

APRIL 2019

DA LE BENTON

41

w w w.suppl yc ha i ndi gi ta l. com

C P O S T R AT E G Y

T

he key to any successful supply chain function is a robust supply network.

As technology continues to redefine

the very nature of supply chain processes, 42

this has dramatically changed the supplier relationship management (SRM) conversation. Businesses the world over are investing into their supply chains and implementing innovative technologies that drive efficiency, reduce costs and help their businesses unlock the next level of strategic growth, but what does this do to that supplier network?

“I’d say that we are in the very early stages of a shift in the landscape,” says Tom Derry, CEO of Institute for Supply Management (ISM). “We’re moving into an era where innovation and collaboration between the OEMs and the suppliers is more recognised as a source of value and an opportunity for value capture for both sides of the equation.”

ISM is an independent, not-for-profit organAPRIL 2019

“ Diageo’s distribution site is in Singapore and you can have your bottles personalised. This level of customisation in the last mile of supply chains is where companies are now competing for market growth” — Tom Derry, CEO of Institute for Supply Management

isation that works with over 50,000 supply management professionals in more than 100 countries who are responsible for close to US$1trn in corporate supply chain procurement spend annually. Its mission statement is simple; to advance the practice of supply management, drive value and competitive advantage, and contribute to a prosperous, sustainable world. For Derry, the supply chain function and effective SRM is proving to be the key enablers for greater competitive advantage. This is something he feels has coincided with a shift in the perspective as to what supply chain and procurement can really mean to a business. He points to Diageo and how its market leading scotch brands are produced in their own individual locations, but its biggest market is the emerging middleclass market in Southeast Asia and China. “Its distribution site is in Singapore and you can have your bottles personalised. This level of customisation in the last mile of supply chains is where companies are now competing for market growth,” he says. “There’s also Ford Motor Company and its implementation of Microsoft Sync. Its CFO, Bob Shanks, publicly praised the procurement team for establishing that relationship. Businesses are / business is? now realising that the supply chain is more than an enabler. The w w w.suppl yc ha i ndi gi ta l. com

43

C P O S T R AT E G Y

CLICK TO WATCH : ‘SYNC® APPLINK® OVERVIEW | FORD HOW-TO’ 44

“ The agility and resilience required to be competitive in today’s global macroeconomy is a strategic capability that they all need to have” — Tom Derry, CEO of Institute for Supply Management

agility and resiliency required to be competitive in today’s global macroeconomy is a strategic capability that they all need to have.”

The impact of this changing world on the very function of the supply chain is plain to see, as companies seek a more agile and resilient supply chain, they need to re-examine their entire operation in order to better understand how they can achieve this and grow.

Derry points to an industry-wide belief that the world is moving into an era of demand-driven supply chain or a customer-centric supply chain. This, he

APRIL 2019

feels, is born out of the practical

which is actually a natural economic

experiences of companies. “Given the

phenomenon,” he says. “So, we’re

current tariff dispute, for instance,

moving into an era where I think we’ll

between the United States and China,

see supply chains cluster around key

we’re moving into an era where if the

geographies. We will see a fragmenta-

previous couple of decades were

tion and redistribution of supply chain

characterised by building a globally

because of underlying factors.”

extended supply chain that was linear,

As supply chains start to cluster in

we’re likely moving into an era where

order to be closer to their customers

geopolitical risk will mandate that - and

and end markets, this will radically

economics, too, tariffs and taxes - that

change the relationship between a

supply chains will break up into regional

company and its supplier base. Derry

supply chains that will be both closer to

looks to a supplier in the automotive

suppliers and closer to end customers,

industry that is involved in the manu-

E X E C U T I V E P R OF IL E

Thomas W Derry Thomas W Derry is Chief Executive Officer of the Institute for Supply Management® (ISM®) in Tempe, Arizona. Prior to joining ISM in July 2012, Derry spent nine years with the Association for Financial Professionals (AFP), a US$23 million professional association serving 17,000 corporate treasury and finance professionals. Derry has substantial experience in product development, cross-border acquisitions and foreign joint ventures, strategic restructuring of operations and developing profit generating strategic alliances. Derry is a member of the Dean’s Council for the W. P. Carey School of Business at Arizona State University, and is a member of the board of directors of the Society for Human Resource Management (SHRM).

45

C P O S T R AT E G Y

facture of dipsticks, a very low-tech

a great scenario where they are

and low margin product. This particular

making higher margins as a supplier

supplier looked at injection moulding

while the med-device firm has got a

technology used in the manufacturing

higher quality product because they

process and discovered it could also be

were unhappy with their traditional

used in the manufacture of a defibrillator.

suppliers in the med-device space.”

“Suddenly, they are now an automotive

46

“It’s just one example, but it’s a very

supplier and are now a supplier in

powerful one, of how their SRM - par-

the healthcare industry. This was all

ticularly as it’s expressed in collabora-

achieved through a collaboration

tion - is critically important.”

between engineering teams at a

With the digitisation of industry, we

medical device company and the

can point to a number of technologies

original automotive supplier,” says

that continue to dominate the conver-

Derry. “So now they’ve diversified

sation, but Derry points to one that

their revenue, reduced their risk and

may not immediately spring to mind;

created a higher margin product. It’s

Twitter. Visibility in the supply chain is

‘A particular automotive supplier looked at injection moulding technology used in its manufacturing process and discovered it could also be used in the manufacture of a defibrillator’

APRIL 2019

47

greater than it has ever been before as businesses look to have visibility into their first tiers of their supply base. But as some don’t have visibility beyond that

edge that that’s a supplier of theirs and

initial tier, what can the likes of Twitter

can immediately enact their contingen-

enable for businesses? “Say a fire hap-

cy plan or business continuity plan. In

pens and a worker tweets that they are

this day and age, the companies that

off home because of the fire. That tweet

prevail are the ones that act fast on

will be picked up by all kinds of risk

intelligence and have plans in place

management solutions that are in

in the event of those contingencies.”

operation for supply chain teams all

“There’s a number of firms today

over the world,” says Derry. “The supply

who are providing risk management

chain teams then have instant knowl-

solutions in the supply chain, who take w w w.suppl yc ha i ndi gi ta l. com

C P O S T R AT E G Y

48

“ Now technology can tell me I might have a problem, but I need to have a face-to-face conversation and that’s never really going to change” — Tom Derry, CEO of Institute for Supply Management

advantage of that capability to make real-time information available to their customers. And that’s significant stride forward.”

Technology will continue to redefine the supply chain function and the role of the supply chain professional which in turn will continue to redefine SRM. Automation and robotics will become more commonplace within this space, with SRM and the data capture surrounding it being identified as a key area where this will happen. Derry

APRIL 2019

49

admits as much, but he also under-

have. Can you help me understand it?

stands that for an effective relation-

Can you explain it? What’s your mitiga-

ship there will always be the need for

tion plan?” And that takes a strategic,

human interaction. “You may have

face-to-face conversation to under-

technology with red flashing indicator

stand what is my actual risk. Now

lights that says the supplier is a

technology can tell me I might have a

financial risk, or they’re changing the

problem, but I need to have a face-to-

lead times that we need to investigate,

face conversation and that’s never

or they’re having quality issues. That’s

really going to change.”

just information,” he says.

“Now what’s required is somebody going over to that supplier and sitting down and saying, “This is the data we w w w.suppl yc ha i ndi gi ta l. com

S U P P LY C H A I N T R A N S F O R M AT I O N

50

Transforming supply chains in retail Simon Mardle, Retail Supply Chain principal at Capgemini, explores the key to successful digital transformation and how it starts from the leadership level WRITTEN BY

APRIL 2019

DA LE BENTON

51

w w w.suppl yc ha i ndi gi ta l. com

S U P P LY C H A I N T R A N S F O R M AT I O N

A

recent report from Capgemini revealed that while the UK is a leader in the implementation of digital technologies

within the retail supply chain, there is still a significant lack of strategic focus with more than 86% of retail organisations struggling to get past

the testing stage of their own digital supply chain transformations. Digital transformation continues to dominate the global conversation for supply chain professionals and this can create a culture of implementing technology for technology’s sake.

This is something that Simon Mardle, Retail Supply Chain Principal at Capgemini, believes has made companies reach “a glass ceiling” with digitisation.

52

“Through my time in industry I’ve seen a lot of initiatives that drive up performance in supply chains through lean thinking. I also see a lot of experienced people building on past experiences and improving performance based lean thinking, but it’s kind of a bit siloed,” he says. “There’s not much more left to squeeze out of operations as they are.” The key to overcoming that glass ceiling is investing in the right technology and this is where organisations have found themselves to be stumbling.

With the industry aflutter with buzzwords and technology trends like artificial intelligence (AI), Big Data, Machine Learning, Blockchain and even Automation, Mardle is keen to stress that in order to understand what the “right” technology is, businesses need to remember the key driver to APRIL 2019

“Data unlocks the unlocks the opportunity to allow collaboration because it gives you one version of the truth” — Simon Mardle, Retail Supply Chain Principal at Capgemini

53

their operations – the customer. Placing the customer at the heart of the digital conversation opens the doorway to the possibility of innovation. “You do that and all of a sudden you can break away from a siloed approach of focusing entirely on cost and communicate to different areas of the business. You do that and you realise that all of the business units have one common narrative that they follow,” says Mardle.

“The key to this is data. It unlocks the opportunity to allow collaboration because it gives you one version of the truth.” w w w.suppl yc ha i ndi gi ta l. com

S U P P LY C H A I N T R A N S F O R M AT I O N

CLICK TO WATCH : ‘DREAM CLOUD, WAKE UP DIGITAL WITH CAPGEMINI’S DIGITAL CLOUD PLATFORM’ 54

DATA AND DIGITALISATION

operational costs and customer

Data is king to digitalisation and it will

service will allow everyone to pull

allow organisations take the supply

in the same direction. “You can build

chain onto the next level of perfor-

straightforward dashboards that can

mance, one that is driven by smarter

cover a number of end-to-end metrics

decisions and predictions. It allows

that everyone can refer to,” he says.

them to stop building solutions or

“A manufacturer of consumer goods

initiatives based on the past and

supplied to the retail market that’s sold

embrace what the future can bring.

on shelf or delivered to a kitchen

The supply chain ecosystem has large

cupboard will be able to measure

volumes of data and information that

his performance with exactly the

flows through it and so understanding

same metrics as any other player in the

that data will make all the difference.

supply chain ecosystem would. These

Mardle believes that creating end-to-

unified metrics ensures that everyone

end metrics around performance,

is aligned to the same goals.”

APRIL 2019

“ A manufacturer will be able to measure their performance with exactly the same metrics as any other player in the supply chain ecosystem - this ensures everyone is aligned to the same goals” — Simon Mardle, Retail Supply Chain Principal at Capgemini

But it’s not just internal data that is captured and Mardle is keen to stress that unstructured data through social media and customer touchpoints provides an opportunity to find out exactly what customers are thinking about the organisation and marry that to the operational performance. “It’s a single version of the truth that’s not up for debate because it shows you how you’re performing in the market,” he says. “Collectively, it’s up to the organisation to work out how do to things differently together and improve that performance.”

DIGITAL HURDLES It’s easy to talk about the benefits and the efficiencies that could be driven through digital transformation, but as the report shows, despite 50% of organisations identifying digitisation as one of their top three corporate priorities only 14% have succeeded in scaling their projects to multi-site or full-scale deployment. What then, are the biggest barriers that organisations are failing to overcome?

“It’s a combination of things,” says Mardle. “Most initiatives I’ve seen haven’t failed because the technology w w w.suppl yc ha i ndi gi ta l. com

55

S U P P LY C H A I N T R A N S F O R M AT I O N

“ It’s important to remember if you get it right for the supply chain, you get it right for the customer – and that’s where you deliver a win-win” 56

— Simon Mardle, Retail Supply Chain Principal at Capgemini

wasn’t there, they’ve failed because

chain function within the business and

there hasn’t been enough guidance

then taking that across suppliers and

from the top down and a lack of a clear

partners outside of the business.

and simple vision that was energising

“Once you’ve got that down, then you

the business.” The answer to this, he

can look at the data and the technol-

feels, is through the building of effective

ogy and system architecture and

partnerships throughout the business

understand how best to move

in order to demonstrate the value and

forward and establish an integration

the benefit of digital transformation to

strategy between the old world and

the wider business. This is something

the new,” he says. “This shifts the

that Mardle describes as “getting the

focus onto what will be fundamentally

basics right,” building relationships

a whole new world for supply chain

outside of the procurement or supply

experts. You have to think about how

APRIL 2019

57

people will react and respond to the

execution systems combined with an

future because they are going to be an

overall collaborative planning process

important governance around the pace

and a tightly-knit feedback loop as

and success of any digital strategy.”

the first true steps towards a digital future. “When you’re in that situation

TECHNOLOGY TRANSFORMATION

you’re in a very good place to start

Data is one of the biggest talking points

thinking of grasping new innovation

in digital procurement and the supply

and driving innovation,” he says. “So,

chain, but what are the key technolo-

when you then look at a new innovation

gies driving this data conversation?

you can better understand how you

Mardle points to machine learning,

can use these new innovations as they

visibility tools, predictive analytics

are coming into the market. You can do

and algorithms, control tower

this because you’ve created a robust w w w.suppl yc ha i ndi gi ta l. com

S U P P LY C H A I N T R A N S F O R M AT I O N

STR ATE GY FACTS

• Organisations are struggling to move their digital supply chain projects beyond the testing stage: While exactly half of the organisations surveyed consider supply chain digitisation to be one of their top three corporate priorities, most are still struggling to get projects beyond the testing stage (86%)

58

• Most organisations have spread their investments too thinly and are struggling to scale pilot initiatives: The organisations surveyed have an average of 29 digital supply chain projects at the ideation, proof-of-concept or pilot stage. Just 14% have succeeded in scaling even one of their initiatives to multi-site or full-scale deployment. However, for those that have achieved scale, 94% report that these efforts have led directly to an uplift in revenue. • Supply chain projects that lack strategic focus are less likely to be successful: The evidence from those who have moved to implementation suggests that companies are taking on too much, and not focusing enough on strategic priorities. The organisations which successfully scaled initiatives had an average of 6 projects at proof-of-concept stage while those who failed to scale averaged 11 projects.

APRIL 2019

platform and architecture that will allow you to trial and to scale them.”

As the supply chain and procurement landscape continues along this digital journey, Mardle believes that the narrative around digital transformation needs to change and it’s a simple solution, placing the customer at the heart of it all. “The narrative that supply chain people should be and can take to the rest of the business is really about how you deliver a win-win. You do that by talking about the customer,” he says.

“So, there’s a new conversation to be had where you put the customer at the heart of it. It’s a big challenge for supply chain professionals to shift their own mindset in terms of what their role should be as they take their teams on a journey from lean thinking to digital supply chains, and how their role needs to change.

It’s important to remember, if you get it right for the supply chain you get it right for the customer, and that’s where you deliver a win-win.”

w w w.suppl yc ha i ndi gi ta l. com

59

BLOCKCHAIN

Citizens Reserve: 60

bringing blockchain to the supply chain with SUKU Eric Piscini, Chief Executive Officer of Citizens Reserve, explores the current and future potential of blockchain and the role SUKU will play in the supply chain WRITTEN BY

APRIL 2019

DA LE BENTON

61

w w w.suppl yc ha i ndi gi ta l. com

BLOCKCHAIN

62

W

hen examining the digital

conversation go? With over 11 years’

climate of supply chain and

experience working for Deloitte, four of

procurement functions,

which spent focusing specifically on

you’d be hard pressed not to discover

the global implementation of blockchain

that data and blockchain are the key

technology, Eric Piscini has seen

technologies defining the conversation.

firsthand just how much blockchain in

Over the last two years alone, Amazon,

the supply chain has moved from

Apple, Mercedes-Benz and Ford have

fantasy, to reality. As the Chief Executive

revealed plans to increase investment

Officer of Citizens Reserve, a global

into blockchain technologies and how

blockchain technology company

they can impact and disrupt the supply

focused on the development of solutions

chain process. With the likes of Amazon

that will truly transform businesses,

and Apple making these announcements,

Piscini believes that it’s a very exciting

how far back does the blockchain

time for blockchain. “In today’s world

APRIL 2019

63

there are still limitations here and there

global supply chain ecosystem. SUKU

from a public versus private conversation,

is ablockchain-based ecosystem that

but I feel that the infrastructure is going

works specifically in the supply chain

to improve and we are going to see

space, was launched in late 2018. The

something amazing,” he says. “Capa-

ambition behind SUKU is to create

bility, performance, privacy and security.

an on-demand, open and decentralised

Over the next 12 months I see thve

software distribution model that

challenges that these will bring to

allows supply chain partners to leverage

blockchain implementation go away.”

services and applications. These

Citizens Reserve was founded in 2016

applications will be built in collaboration

and through its blockchain powered

with technology partners as part of

solution, SUKU looks to create platforms

a ‘continually evolving’ ecosystem. “I like

that will enable greater efficiency,

to use the smartphone application store

transparency and collaboration in the

as an analogy to describe our goal,” w w w.suppl yc ha i ndi gi ta l. com

BLOCKCHAIN

64

“ We are building two things: the marketplace and the ability to track and trace data” — Eric Piscini, Chief Executive Officer of Citizens Reserve

says Piscini. “What we are building is an operating system as well as the app store itself, which is our foundation.

We then engage with partners to build additional applications and services within that app store.”

Founded by a team of a team of experienced professionals in blockchain, supply chain management, finance, contracting & procurement, SUKU looks specifically at the supply chain space for a number of reasons. Piscini believes that supply chain and procurement have the largest potential for disruption

APRIL 2019

and improvement and so the start-up

have a warehouse management solution

company set its sights firmly on this

that can track and trace inventory, we

space. Plans are afoot to head into

don’t do that but we have a partner that

different industries in the future, but

builds that application. SUKU then

Piscini notes that “supply chain is our

leverages that application in order to

mind, it’s what we’ve made our names

bring value to our customers.”

in over our careers.” With supply chain

SUKU is not merely an application

as the playing field, SUKU is approach-

and solutions platform, a key part of its

ing the space on two fronts. “We are

offering is the services the company

building two things, the marketplace

can provide through its partners that

and the ability to track and trace data,”

leverage the platform. Much like the

he says. “We do this by partnering. We

way in which a technology solutions 65

E X E C U T I V E P R OF IL E

Eric Piscini Eric has more than 20 years of global experience in highly regulated industries such asbanking, payment, supply chain and life science.

He is a recognized expert in many areas including digital payments, blockchain solutions, cryptocurrencies, innovation, technology transformation, cloud implementation, and operating model design. Eric was a Partner at Deloitte Consulting, the founder of the Global Blockchain practice in 2014, reaching leadership position worldwide in 2018 with more than 900 practitioners in 20 countries. Eric has published more than 10 times on blockchain and its impact to businesses.

Eric holds an engineeringdegree in computer science from Paris, France, and a master’s degree in economics from the University of Cergy-Pontoise, France.

w w w.suppl yc ha i ndi gi ta l. com

BLOCKCHAIN

developer accesses and works within the platform, service providers leverage the platform. Piscini points to the example of insurance in the supply chain and how supply chain insurance service providers will provide their services through the SUKU platform. of services that SUKU can enable through a blockchain-powered platform.

“It becomes a single place where customers subscribe and have access to different services,” he says. “Some of these services will be free, others there will be a fee involved but that’s 66

the vision. An open, on-demand and decentralised software and service

the modern world where consumers

distribution platform where all of your

demand greater access to information

supply chain needs are catered for in

regarding the origins of their products,

one place. In time, as more companies

especially livestock, the benefits of

subscribe and become part of it, it will

SUKU become abundantly clear.

only continue to evolve.”

“There’s an upside to being able to trace

In 2019, Citizens Reserve will look to

premium products in the market as it

officially rollout the SUKU platform for

drives a much higher adoption of other

the livestock supply chain and Piscini

products,” he says. “Right now, the

notes that it will also look to work with

consumer has to trust the information

electronics, vaccines and the oil and

on the label as to whether its organic.

gas industry. The livestock industry has

By creating a situation where they can

been an area of focus in particular

track the origin of that meat in the

because it has been one that Piscini

restaurant, or the store, it is said that that

believes has been in “dire need” of

speciality market would grow up to

traceability and greater efficiency. In

30% - all through traceability. That’s

APRIL 2019

“ That’s the vision: an open, on-demand, decentralised software and service distribution platform where all of your supply chain needs are catered for in one place” — Eric Piscini, Chief Executive Officer of Citizens Reserve 67 a better upside for all the people

visibility and traceability and the new

producing that product as well. It’s

role that blockchain will have. “Once

a significant upside from a business,

upon a time blockchain was seen as

a significant opportunity for efficiency

merely a private or a public thing, there

and of course, food safety.” Citizens

was no middle ground,” says Piscini.

Reserve is targeting a launch date in

“We’re going to see a hybrid blockchain,

early Q2 2019 and its first live transac-

which is what SUKU is, that will allow

tions soon after.

each party within the ecosystem be

As Piscini notes, it’s an exciting time

able to see what other parties are

for blockchain and in recent years there

doing and how it affects them. All this

has been an increase in blockchain

through one platform. This is critical in

powered solutions, regulatory clarity

the business world and it’s not only going

surrounding blockchain and greater

to benefit SUKU but industry players

education through the likes of Apple

the world over.”

and Amazon. SUKU represents the changing landscape of supply chain w w w.suppl yc ha i ndi gi ta l. com

LOGISTICS AND DISTRIBUTION

70

APRIL 2019

71

BUILDING THE SUPPLY CHAIN OF THE FUTURE Richard Cawston, MD Supply Chain Europe at XPO Logistics, explores how technology is driving innovation and disrupting the logistics industry WRITTEN BY

RICHARD CAWS TON w w w.suppl yc ha i ndi gi ta l. com

LOGISTICS AND DISTRIBUTION

W

ho said that technological innovation is strictly reserved for the likes of Google and Microsoft? Thanks to globalised

markets and the rise of e-commerce, companies

are increasingly looking to supply chain service providers to optimise their operations and meet the demands of their end customers.

There is compelling interest in unlocking the potential of logistics through technology. In response, the industry is innovating at a breath- taking pace, from warehouse management and order fulfilment through delivery. Which is why, at XPO, we employ over 1,700 technologists worldwide and invest US 72

$450mn in technology each year to help some of the world’s biggest brands improve their SCM and build customer loyalty.

Our investments in technology tend to be channelled into specific areas. As one example, there is an opportunity for automation to increase productivity as supply chains become increasingly complex. XPO is partnering with Nestlé to build a Distribution Centre of the Future in Leicestershire, UK, which will showcase some of the most cuttingedge technology. Drones are expected to be deployed to carry out inventory management, taking photos of stock to cross-check against data records. Intelligent collaborative robots – or co-bots – will operate alongside workers to assist in picking and packing. The co-bots handle the heavy lifting and repetitive, labour-intensive tasks, helping to APRIL 2019

73

“ AT XPO, WE EMPLOY OVER 1,700 TECHNOLOGISTS WORLDWIDE AND INVEST US$450MN IN TECHNOLOGY EACH YEAR TO HELP SOME OF THE WORLD’S BIGGEST BRANDS IMPROVE THEIR SCM AND BUILD CUSTOMER LOYALTY” — Richard Cawston, MD Supply Chain Europe, XPO Logistics w w w.suppl yc ha i ndi gi ta l. com

LOGISTICS AND DISTRIBUTION

“ I N TODAY’S ONDEMAND ECONOMY, CONSUMERS ARE LOOKING FOR A PERSONALISED DELIVERY EXPERIENCE, WITH FLEXIBLE OPTIONS” — Richard Cawston, MD Supply Chain Europe, XPO Logistics

74

make order fulfilment safer. Their

Connect platform is a cloud-based

human counterparts have more time to

digital freight marketplace that uses

focus on critical areas of logistics

machine learning to identify opportuni-

where they can add the most value. We

ties for time and cost savings when

expect to install 5,000 co-bots across

assigning loads. It considers fluctua-

our warehouses in Europe and the US.

tions in capacity, spot rates and load

At the same time, we’re using ‘big

postings by geography when evaluating

data’ to strengthen decision making

carrier bids. Drive XPO is an app for

across the entire supply chain. The key

carriers that interacts with XPO Connect

here is not only to collect the data, but

– it uses smart, self-learning algorithms

also to use it to improve operations and

to reduce empty miles, lower fuel waste,

make strategic decisions. This is

reduce road stress and make the

becoming crucial as a competitive edge.

customer service process more dynamic.

In transport, for example, the XPO APRIL 2019

One of the most important opportu-

75

E X E C U T I V E P R OF IL E

Richard Cawston Mr. Cawston leads the supply chain business of XPO Logistics in Europe. He previously held the role of managing director for XPO’s supply chain operations in the United Kingdom and Ireland.

Mr. Cawston joined XPO in 2015 upon the company’s acquisition of Norbert Dentressangle, where he served first as country manager, and then as business unit director. Previously, he was general manager for transportation company Christian Salvesen, now part of XPO, and operations manager for supermarket retailer Asda.

w w w.suppl yc ha i ndi gi ta l. com

LOGISTICS AND DISTRIBUTION

nities presented by technology is to

Home and Amazon Echo, ensuring

improve the consumer shopping

consumers receive their updates

experience with e-commerce and

through the method of their choosing.

omnichannel retail. In today’s on-de-

76

If anything, there is more opportunity

mand economy, consumers are

than ever to innovate the many process-

looking for a personalised delivery

es entwined in supply chain operations.

experience, with flexible options.

We see the potential for further enhance-

Using XPO technology, both e-tail

ments when it comes to the delivery

and retail customers are able to offer

experience. Consumers are no longer

consumers access to live estimated

solely interested in speed; they also

time of arrivals (ETAs) during the ‘final

want the ability to make changes to

mile’ of delivery of large, valuable items,

planned deliveries at the last minute,

such as furniture or home electronics.

and they want an easy, seamless way

Recently, XPO launched voice-activat-

to return merchandise. Returns manage-

ed integration, which makes these

ment – or ‘reverse logistics’ – is one of

updates available through Google

the fastest-growing areas of logistics.

“ I F ANYTHING, THERE IS MORE OPPORTUNITY THAN EVER TO INNOVATE THE MANY PROCESSES ENTWINED IN SUPPLY CHAIN OPERATIONS” — Richard Cawston, MD Supply Chain Europe, XPO Logistics

APRIL 2019

CLICK TO WATCH : ‘XPO LOGISTICS - THE FUTURE IS NOW’ 77

As supply chain optimisation becomes an ever more important lever for business success, the pressure is on for providers to step up to the plate and deliver.

The industry is already moving in this direction, but there is much more that can be done. The supply chain of the future will be defined by the technology that is being created today, and we at XPO are committed to driving that transformation.

w w w.suppl yc ha i ndi gi ta l. com

T O P 10

80

APRIL 2019

TOP 10 Supply chain universities & degree programmes

As supply chain management becomes an increasingly vital part of every business, the pressure to find the supply chain processionals of the future continues to increase. We've taken a look at eduniversal's ranking to find out what qualifications to watch out for in potential employees WRITTEN BY

DALE BENTON

w w w.suppl yc ha i ndi gi ta l. com

81

T O P 10

10

82

Master in Supply Chain Management Universidad del PacĂ­fico Business School Founded in 1962, Universidad del Pacifico has evolved over time to become a key contributor to the educational, economic and social growth of Peru and enabling the supply chain professionals of tomorrow. Its Master in Supply Chain Management degree looks to create the next generation of supply chain strategists through two specialisations: Project Management and Operations Management. On average, 51% of students that complete the degree have gone on to become supply chain managers, sub managers or other management positions in supply chain.

APRIL 2019

09

Photo Š Antwerp Management School

83

Master of Global Supply Chain Management Antwerp Management School Founded in 1959, the Antwerp Management School seeks to open minds, touch souls and energise business. Its Global Supply Chain Management degree looks to address the skills gap that’s widening as businesses continue to strategically realign their supply chain functions. Students will deepen their supply chain understanding though a number of core courses including the basics of supply chain management, modelling global supply chains, integrated business processes with SAP ERP and strategic procurement.

w w w.suppl yc ha i ndi gi ta l. com

T O P 10

08 Photo © Università Bocconi

84

MEMIT Master in Economics and Management of Transport, Logistics and Infrastructure Università Bocconi Established in 1902 and named after the lost son of Ferdinando Bocconi, the Università Commerciale Luigi Bocconi was the first Italian institution of higher education to grant a degree in economics. The Master in Economics and Management of Transportation, Logistics and Infrastructure is an interdisciplinary and intermodal degree that covers the complexities of logistics and supply chain, transport policy, planning and management of passenger and freight transport, sustainable mobility and trade law.

APRIL 2019

07

Photo © MIP Politecnico di Milano

85

Master in Supply Chain and Procurement Management MIP Politecnico di Milano Graduate School of Business Established in 2003, the MIP Politecnico Milano School of Management brings together MIP (the Graduate School of Business founded in 1979) and DIG (the Department of Management Engineering – Dipartimento di Ingegneria Gestionale), established in 1990. Identified as “integral to the success of international businesses that are striving for competitive advantage at a global level,” the Master degree looks to equip graduates with the necessary skills to operate and manage a successful international supply chain and procurement operation. w w w.suppl yc ha i ndi gi ta l. com

T O P 10

06

86

Master in Logistics and Defence Economic Management Universidad Complutense de Madrid With more than 82 degrees and over 293 postgraduate courses, including masters and doctorates, the Complutense University of Madrid is rightly identified as a leading educational institution in Madrid and wider Spain.

It’s Master in Logistics and Economic Management of Defence looks to empower civilian and military professionals in order to better understand the logistics, budgetary and contractual management processes within the defence industry. Broken up in to two key areas, the course will provide both knowledge and practical experience in companies that are directly and indirectly linked to the Public and Defence sectors.

APRIL 2019

05

87

MSc in Global Supply Chain Management KEDGE Business School The leading ranked French programme in the world in global supply chain, Kedge Business School’s MSc in Global Supply Chain Management programme is accredited by The Chartered Institute of Purchasing & Supply (CIPS). 95% of students who take the course are recruited before they even graduate, with 80% of all graduates joining large global businesses. Tackling three key areas affecting the global supply chain space, change management, cross-departmental integration and the increasing digitisation of industry, the course prepares students to “confront the challenges of a new era in business management.” w w w.suppl yc ha i ndi gi ta l. com

T O P 10

04

88

International Corporate Master in Operations CENTRUM Graduate Business School — Pontificia Universidad Catolica del Peru Founded in 1917 and among the top 20 Latin American universities and the 500 best universities in the world, the Pontifical Catholic University of Peru’s Corporate Master’s Degree in Productive Operations Management targets the logistics space. It looks to develop student capacities for effective management of operational processes, while encouraging greater understanding of logistics management to optimise decision making, and promote the mastery of process management and the application of tools for continuous improvement.

APRIL 2019

03

Photo © Nova School of Business & Economics

89

Master in Management — Operations Management Nova School of Business and Economics As the faculty of economic, finance and management sciences of the New University of Lisbon (NOVA), the Nova School of Business & Economics (SBE) describes itself as a “living lab” in which its business partners can test drive and improve their technological solutions. These partners include HSBC Europe, Accenture, PwC, Unilever and many others. As part of its 10 specialised focus areas, Operations Management explores business process re-engineering, quality management, improving customer service, inventory systems, supply chain management and project management. w w w.suppl yc ha i ndi gi ta l. com

T O P 10

02

MS Global Supply Chain & Logistics Purdue University Krannert School of Management Building on the core strengths of Krannert University in

90

operations, supply chain management and business analytics, the Master of Science in Global Supply Chain Management – MS(GSCM) looks to answer the biggest challenges of global supply chains. Officially STEM certified the course connects students from all over the world through partnerships with Tianjin University, Indian Institute of Management Udaipur and Shanghai Jiao Tong University. Graduates from the course have been employed by Accenture, Apple, KraftHeinz and Mercedes Benz among others.

APRIL 2019

Photos Š Krannert School of Management 91

w w w.suppl yc ha i ndi gi ta l. com

T O P 10

01

MIT Masters in Supply Chain Management (USA, Luxembourg, Spain and Malaysia) Massachusetts Institute of Technology (MIT) Center for Transportation & Logistics A true world leader in supply chain management educa-

92

tion and research, the MIT Centre for Transportation & Logistics, through the MIT Global SCALE Network, is a multinational alliance of leading-edge research and education centres spread across six innovation centres on four continents. The goal of this network is to further the development and dissemination of global innovation in supply chain and logistics. Some of the world’s biggest companies make up the network, including Adidas, AB InBev, Apple, Amazon and Carrefour. The Master of Engineering in Logistics Programme, based in Massachusetts integrates analytical and leadership skills with real-world problem solving and is recognised as one of the best master and doctoral degrees in the US.

APRIL 2019

93

w w w.suppl yc ha i ndi gi ta l. com

EVENTS & A S S O C I AT I O N S

The biggest industry events and conferences WRITTEN BY DALE BENTON from around the world

30 APRIL–02 MAY

Women in Procurement & Supply Chain 2019 [ PULLMAN SYDNEY HYDE PARK, AUSTRALIA ] 94

The annual Women in Procurement

16 MAY

World Procurement Awards 2019

and Supply Chain conference is dedi-

[ INTERCONTINENTAL LONDON - THE O2 ]

cated to advancing the opportunities

Redefining procurement excellence -

for female executives across supply

the pinnacle of professional

chain and procurement. Looking to

achievement, each year the greatest

address specific industry challenges

procurement organisations and

facing procurement stakeholders,

thought leaders from around the world

together with timely, candid and

gather for an evening of anticipation,

thought-provoking insights into the

entertainment, and inspiration at the

future opportunities (and pain points)

World Procurement Awards. Compet-

addressing procurement, the event is

ing for a spot on the prestigious list of

a platform for procurement stakehold-

finalists and winners, organisations are

ers to share experiences, insights,

recognised for being innovative and

stories and best-practice innovations.

transformative players in the industry.

APRIL 2019

30–31 MAY

[ OXFORDSHIRE, UK ]

9th Global Manufacturing Supply Chain Innovation Summit 2019

A highly focused event that brings

[ SINGAPORE ]

together logistics professionals and key

The Global Manufacturing Supply Chain

industry solution providers, the summit

Innovation Summit returns with a new

consists of one-to-one business meet-

area of focus, New Manufacturing,

ings, interactive seminars and valuable

New Supply Chain. Eight sessions

networking opportunities; in less than

across two days will see leading prac-

two days. The Total Supply Chain Sum-

titioners from manufacturers in the

mit is specifically organised for senior

automotive, pharmaceutical, consumer

professionals who are directly responsi-

goods and logistics and supply chain

ble for supply chain within their

space discuss supply chain strategy

organisation, and those who provide the

and innovation, visibility, agility and

latest and greatest products and ser-

efficiency as well as the digitisation

vices within the sector.

of supply chain and logistics.

20–21 MAY

Supply Chain Summit (UK)

w w w.suppl yc ha i ndi gi ta l. com

95

REGISTER TODAY! 1.888.482.6012 • ProcureCon@wbresearch.com ProcureCon.ca

QUALIFIED SERVICE AND SUPPORT EXECUTIVES FOR PROCUREMENT PRACTITIONERS

GET 20% OFF TODAY WITH DISCOUNT CODE:

PCAN19SCD

April 9-10, 2019 | Intercontinental Toronto Centre, Toronto, ON

Where Sourcing Innovators Connect and Inspire ProcureCon Canada enhances your strategic tools to meet your business partner’s needs in a fast-changing environment.

– Hersh Glass, Strategic Sourcing Specialist, SAP Canada

Organized By:

Sponsors:

10–12 JUNE

09–11 JULY

Supply Chain Summit 2019: Atlanta

ProcureCon Asia

[ THE WESTIN PEACHTREE PLAZA, ATLANTA ]

Asia’s premier gathering for global

The Supply Chain Summit 2019 is the

and regional CPOs and Asian heads

meeting place for the forces of innova-

of procurement. Procurecon Asia

tion, transformation and connectivity

2019 brings over 200 attendees and

that will fundamentally reshape the

more than 100 CPO’s and Heads of

supply chain industry over the coming

Procurement to access and explore

years. Over 800 supply chain and pro-

interactive case studies, broad discus-

curement representatives will meet to

sion on industry challenges and

discuss digital transformation strategy

trends and network with some of the

and look at the supply chain of the

biggest names in the procurement

future. Supply Chain Summit: Atlanta

space. Procurecon asks profession-

will look to enable companies from all

als in both direct and indirect

over the world to discover a truly global

procurement to ‘maximise learning

perspective on the current supply

and optimise your organisation’s

chain landscape.

supply chain strategy.’

[ SINGAPORE ]

w w w.suppl yc ha i ndi gi ta l. com

97

EVENTS & A S S O C I AT I O N S

11–12 JULY

Ovation: The World’s Most Exclusive and Renowned CPO Think Tank 98

[ CHANTILLY, FRANCE ] Created to look “far beyond the traditions of procurement”, Ovation looks to the future of supply chain and the key trends that will directly impact the

24–26 SEPTEMBER

Supply Chain & Logistics Summit and Expo 2019

group-level CPO. Over the course of

[ HILTON ANTWERP, BELGIUM ]

two days, 50 exclusively invited CPOs

The EMEA Supply Chain & Logistics

from around the world will attend work-

Summit & Expo is one of the most estab-

shops designed to drive divergent

lished events of its kind in Europe. Now

thinking, challenge and enlighten fellow

in its 21st year, it is a highlight in the cal-

thought leaders and learn how to bet-

endar where world-class organisations

ter harness the complexity of global

meet to maximise efficiency and mini-

supply networks and ecosystems in

mise costs through supply chain

the digital world.

strategies of the future.

APRIL 2019

16–17 OCTOBER 2019

The Responsible Supply Chain Summit 2019 [ AMSTERDAM, NETHERLANDS ] The Supply Chain Summit 2019 is the meeting place for the forces of innova-

26–27 NOVEMBER

Data, Intelligence & Technology Forum 2019

tion, transformation and connectivity

[ SINGAPORE ]

that will fundamentally reshape the

The Data, Intelligence & Technology

supply chain industry over the coming

Forum is a two-day event focused on

years. Over 800 supply chain and pro-

improving the end-to-end digital strat-

curement representatives will meet to

egy for procurement professionals the

discuss digital transformation strategy

world over. . With technology continu-

and look at the supply chain of the

ing to redefine the procurement

future. Supply Chain Summit: Atlanta

landscape, peers will share examples

will look to enable companies from all

of best practice and how to leverage

over the world to discover a truly global

data and technology to streamline and

perspective on the current supply chain

accelerate the digital transformation

landscape.

journey of procurement.

w w w.suppl yc ha i ndi gi ta l. com

99

LUFTHANSA CARGO AG

100

Lufthansa Carg ation into a full industry leade APRIL 2019

101

go’s transformly-digitalised er WRITTEN BY

HARRY MENEAR

PRODUCED BY

LEWIS VAUGHAN

w w w.suppl yc ha i ndi gi ta l. com

LUFTHANSA CARGO AG

Jochen Göttelmann, Chief Information Officer, and Boris Hueske, Head of Digital Transformation, share the story of Lufthansa Cargo’s simple, intelligent digital transformation

A 102

s one of the world’s leading air freight carriers, Lufthansa Cargo provides tailored logistics solutions to customers in over 100 countries,

transporting an average of 1.6mn tons of freight and mail each year. With over two decades of experience at Lufthansa Cargo between them, Jochen Göttelmann, Chief Information Officer (CIO), and Boris Hueske, Head of Digital Transformation at Lufthansa Cargo are bringing together technology and business to better serve the company’s customers. “Mostly I’ve worked in roles where new services, solutions and strategies needed to be developed, as well as setting up new companies for Lufthansa Cargo. Now I’m transforming our business into something much more digital than it was in the past,” says Hueske. He explains that “the level of technological adoption in B2B business models has traditionally progressed more slowly than in the B2C space. In the context of B2B, air freight is lagging behind other B2B environments.”

We sat down with Hueske and Göttelmann to find out about the ways in which Lufthansa Cargo’s simple, APRIL 2019

103

1994 Year founded + 4,500 Approximate number of employees globally

+ 300 Locations served in over 100 countries

w w w.suppl yc ha i ndi gi ta l. com

LUFTHANSA CARGO AG

“ There is no innovation without technology.

Sometimes technology is driving innovation and sometimes it is enabling it, but without technology there is no innovation” — Jochen Göttelmann, CIO, Lufthansa Cargo

104

APRIL 2019

intelligent digital transformation will close that gap and maintain the company’s position at the leading edge of the air freight sector. “The speed and momentum we are currently gaining in our industry is tremendous”, says Göttelmann, who believes the digital gap between the air freight industry, like other B2B sectors, and B2C businesses will be closed in a couple of years. Göttelmann is a firm

CLICK TO WATCH : LUFTHANSA CARGO – ‘LOGISTICS OF THE FUTURE – DIGITAL CHALLENGES?’ 105 believer in the need to increase

the move from paper into data: that’s

technology saturation throughout the

what we did over the past few years,

company. “There is no innovation

starting with one of the basic docu-

without technology. Sometimes

ments we use in our industry, the air

technology is driving innovation and

waybill.” Waybills are a form of receipt

sometimes it is enabling it, but without

issued by airlines for the transportation

technology there is no innovation.”

of goods. “Over the past few years, we

As the head of Lufthansa Cargo’s

have achieved a high rate of electronic

digital transformation, Hueske is taking

air waybills,” says Hueske. “We started

a methodical, step by step approach,

over 10 years ago with just the waybills

leveraging simple steps to produce

and now about 80% of all the compa-

effective results. “The process of

ny’s documents are electronic. That is

change obviously starts with some

not only important for our processes,

basic things,” says Hueske. “More

but now we also have data through

digitisation, for a start. We’re making

which we can, for example, offer new w w w.suppl yc ha i ndi gi ta l. com

LUFTHANSA CARGO AG

services to our customers. We saw the same thing on the passenger side with the adoption of electronic ticketing and everything that followed that, like self check-in and mobile apps.” Lufthansa Cargo is now effectively developing services for customers based on data and technology. “We also invested in improving our IT capabilities using a new backend handling system,” Hueske adds. “We’re investing in

“ We’re making the move from paper into data and into data commercialization through new services and more efficient processes” — Boris Hueske, Head of Digital Transformation, Lufthansa Cargo

a new booking engine, which is the core system we use to offer our

E X ECU T I VE P RO FI LE

Jochen Göttelmann Jochen Göttelmann joined Lufthansa Cargo as Chief Information Officer in 2015.

Prior to joining Lufthansa, Jochen worked as an IT manager in the financial industry for Dresdner Bank, Credit Suisse and Allianz Global Investors.

Jochen holds a PhD in mathematics and also has a strong background in computer science, physics, and business administration.

APRIL 2019

Destination: Cloud

Added value through innovation The cloud is the future! We’re opening up entirely new opportunities for our clients by migrating applications to the cloud and transforming them there, with the option of cloud-native development.

As one of the world’s largest independent provider of IT and business services, we’ve also racked up many years of experience in cloud architecture, security, governance, and operations. Independent experts have confirmed our industry-leading expertise: the ISG Provider Lens™ has awarded us “leader” status in the “Public Cloud Transformation” and “IaaS – Enterprise Cloud” categories in 2019.

Let us help you make your cloud enterprise-ready, too!

For more information, go to: de.cgi.com

services to customers. They can

You see your price, you push the button,

already book online, but we’re upgrad-

and then it’s booked. That is not yet

ing to a modern version, which is really

available in the air freight industry, and

helping us offer a kind of e-commerce

that’s what we are working on: enabling

solution for air freight transportation

customers to book directly through our

services.” The new booking system

own e-portal.”

uses online spot pricing, allowing

Lufthansa Cargo’s core system is

customers to enter capacity requests

developed and maintained by IBS

and receive price quotes immediately.

Software, a provider of IT solutions to

“It sounds a little bit strange, but in our

the travel, transportation and logistics

industry, this is not widely available yet,”

industries. “With IBS, we do not just

Hueske explains. “In the passenger

have a traditional provider relationship,

industry you can easily go online and

but rather a partnership on eyes’ level,”

see if your family gets seats on a flight.

says Göttelmann. “IBS is one of the

E XE CU T I VE PRO FI LE

Boris Hueske, Head of Digital Transformation Boris Hueske is responsible for the Digital Transformation of Lufthansa Cargo. He has a degree in business administration with a focus on logistics.

Within 18 years industry experience in logistics and airfreight he took over management positions in supply chain management, strategy, finance, revenue management and digitalisation. Since 2018 he is responsible for defining and securing the achievement of the Digital Transformation approach of Lufthansa Cargo with activities in automation, new digital services and business models.

w w w.suppl yc ha i ndi gi ta l. com

109

When our clients want to move fast and make things, they turn to us!

Nagarro drives technology-led business breakthroughs for industry leaders and challengers. Some of our clients include ASSA ABLOY, the City of New York, DHL, GE, Lufthansa, Siemens and T-Systems.

Working with these clients, we continually push the boundaries of what is possible to do through technology, and in what time frame.

Today, we are more than 5,000 experts across 21 countries. Together we form Nagarro, the global services division of Munich-based Allgeier SE.

“We need partners like Nagarro who help innovatively and technologically to take place in the digital transformation.”

Dr. Roland Schütz, CIO of the Lufthansa Group, talks about the secret sauce of this successful and trusted partnership.

LEARN MORE

/company/nagarro

/nagarro

/nagarroinc

/nagarroinc

nagarro.com

“ The speed and momentum we are currently gaining in our industry is tremendous” — Boris Hueske, Head of Digital Transformation, Lufthansa Cargo

partner especially for individual software projects and major IT service packages like the complex BI and Analytics environment, or the specific Cargo revenue accounting.

Hueske and Göttelmann are positive that this transformation will be beneficial to both Lufthansa Cargo and its customers. “The traditional process would involve the shipper using a forwarder to send something to its consignee, picking up the phone, asking for quotes, getting back quotes, deciding routes, confirming shipment details, ordering the airline and so on,”

most important partners to keep up our

says Göttelmann. “There will always be

momentum. Although it’s a standard

a physical flow. Shipments will be

product, they are still highly willing to

trucked from the shipper to the airport,

invest in further product development.”

flown from Europe to Asia or America

Another important partner for the

etc., and then need to be trucked again

digital transformation is Nagarro,

from the airport to the consignee. This

a software and business consulting

won’t change as long as physical

firm headquartered in Munich. Göttel-

goods are being shipped.” However,

mann describes Nagarro as “the main

alongside the movement of physical

providers for our internet portal, and

goods is a flow of information, tradi-

one of the two leading providers of our

tionally taking the form of “some paper”

booking engine”. But Lufthansa Cargo

attached to the shipment. By moving

doesn’t need to rely on external

away from analogue record-keeping

vendors only. With Lufthansa Industry

and other paperwork, Lufthansa Cargo

Solutions they have a strong captive

is accelerating the process through w w w.suppl yc ha i ndi gi ta l. com

111

112

which its clients can “request and receive quotes, confirm capacity and prices online”, Göttelmann notes.

“Here, spot pricing is one of the important factors. Clients receive a quote according to shipment dimensions, weight, loadability checks, embargoes, regulations – whatever is necessary to fly that shipment.” With Lufthansa’s new online portal, customers will receive all relevant information in a matter of seconds. Hueske says: “The whole development from this analog business – this manual transfer APRIL 2019

CLICK TO WATCH : ‘HORSES AT THE LUFTHANSA CARGO ANIMAL LOUNGE’ 113

of information, paper and documents between all parties involved – to a digital one, is a severe change. It’s an evolution, but it is happening at an everincreasing speed, and that makes it so significant.” At the core of Lufthansa Cargo’s front-end transformation is the drive to be convenient and efficient for customers. “We have to be efficient on the B2B side with lean, digital, automatic processes, and being convenient for human beings booking our services,” says Hueske.

In addition to Lufthansa Cargo’s w w w.suppl yc ha i ndi gi ta l. com

Lufthansa Industry Solutions: Your Partner for Digital Transformation Whether you need to develop a company-wide digitization strategy, connect machines using IT services or provide mobile platforms for cross-company collaboration: If it is a matter of company digitization, Lufthansa Industry Solutions is the right partner.

Our customers come from a wide range of different areas. These include air travel, logistics, transport, manufacturing and automotive industries. But no matter their industry, they all face the same, huge challenge of our time: They have to structure their IT all along the value chain in such a way that it reduces costs and simultaneously increases revenues and efficiency in the long run.

Lufthansa Industry Solutions helps companies to digitize and automate their business processes – from medium-sized to listed companies. In doing so, we do not just focus on the IT needed, but on our customer’s business as a whole, including its internal and external challenges. This is because digital transformation affects a company’s entire structure and culture, and reaches beyond company borders to collaboration with partners, customers and suppliers.

Our project experience and industry expertise.

We have been working with many of our customers for numerous years. We combine the project experience and industry expertise we have gained with our com-

prehensive services and technology portfolio. Especially, Lufthansa Industry Solutions has many years of expertise in the field of air cargo and, in particular, supports its sister company Lufthansa Cargo in the digitization of sales, handling and financial processes. We work together in agile interdisciplinary teams. Whether your need is Internet of Things, Data Analytics or to bring your IT systems into the Cloud – as an IT consultancy and systems integrator, Lufthansa Industry Solutions covers the entire spectrum of IT services. We always make the highest demands on security and quality – especially because our roots are in aviation, a highly digitized, security-sensitive industry.

Take advantage of the growth opportunities offered by automation and digitization.

Lufthansa Industry Solutions division has been steadily growing since 1998. In the spring of 2015, the company was spun off from the former Lufthansa Systems AG and now does business as an independent company within the LUFTHANSA GROUP. As we are a full-service provider, we can help our customers take advantage of the growth opportunities offered by automation and digitization.

Learn More Contact Us

Visit us and follow us:

redesigned customer experience, the company is digitally transforming behind the scenes. “The whole Lufthansa Group, not just Lufthansa Cargo, is adopting a future-proof IT strategy”, says Göttelmann. “We’re moving from a dedicated, on-premises data centre to a multi-cloud environment. With this we can scale up performance instead of running through lengthy ordering processes, installing servers in the rack and de-installing again. We’ll be using IT infrastructure resources as we need

115

them. It’s capable and elastic, and it goes hand in hand with the introduc-

weak point in the system is not the

tion of Office 365 and Dynamics 365

computer or the network; too often it’s

as web-based workplace environment

a user who falls into a tech trap,” says

and CRM tool.” CGI, a Canada-based

Göttelmann. “We’re investing on all

software and service company with

levels,” he confirms.

global delivery capabilities, is one of

In all cases, a transformation of

Lufthansa’s partners for the cloud

the technology used by a company

transformation.

equates to a transformation of the

Lufthansa Group is also updating

culture within that company. At

its cybersecurity measures in order

Lufthansa Cargo, both Hueske and

to match the emerging threats of a

Göttelmann agree this is the case.

digitalising industry. “We’re investing

“There is a cultural shift necessary,”

a lot in processes, hardware and

says Hueske. “One important thing is

software protection, and, particularly,

to really instill the idea of IT as a

training and awareness. Usually, the

production factor. It is important that w w w.suppl yc ha i ndi gi ta l. com

LUFTHANSA CARGO AG

116

we as a company understand the value generation through software in a digital world.” After the introduction of agile project methods in the last two years, now Göttelmann and his leadership

to top flight talent in the tech sector. “If

team are taking the next steps. An

you look at universities, hardly anybody

adoption of DevOps principles will help

knows about the air freight business,”

to make internal processes leaner,

says Göttelmann. “Hardly any other

increase software quality and shorten

industry has such challenging prob-

release cycles.

lems to solve in the coming years.

Lufthansa Cargo’s digital transfor-

Every potential candidate should be

mation will carry the company forward

keen to knock on our door and ask to

into the next three years with an eye to

work for us. We want to be acknowl-

becoming a more attractive employer

edged and perceived as one of the

APRIL 2019

117

most attractive employers in the industry.” As for Lufthansa’s technological future beyond 2022, Hueske laughs: “I think, considering the dynamic world we live in, we shouldn’t be doing perspectives more than three years in advance.”

w w w.suppl yc ha i ndi gi ta l. com

EXTERRAN:

118

TRANSFORMING THE OIL AND GAS SECTOR WITH AN INNOVATIVE SUPPLY CHAIN TRANSFORMATION WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

GLEN WHITE

APRIL 2019

119

w w w.suppl yc ha i ndi gi ta l. com

EXTERRAN

Suraj Devadiga, Director of Supply Chain of Middle East & Asia at Exterran, discusses how his company is beginning to digitise its services in the oil and gas sector.

F

or manufacturers today, digitisation is vital if they want to remain one step ahead of the competition and perhaps nowhere

can this be seen better than in the oil and gas industry.

Regarded as a proactive solutions provider to a 120

range of global and regional oil and gas customers, Exterran is now embarking on the first phase of its digital transformation plan. Suraj Devadiga, Director of Supply Chain of Middle East & Asia at Exterran, highlights how the company’s procurement function has become a key part of Exterran’s operations. “In the past, procurement used to be where purchase orders were made. The company would say ‘I need this, go and buy it’ and it would be the job of purchasing to buy and provide it,” explains Devadiga. “What’s different now is that we ask lots of questions to drive value. Are we buying at the best price and is it in our plan? If so, are we buying it from suppliers who are qualified? Is this supplier consistent? Are we going to create a museum of suppliers and then end up having to spend more on maintaining parts and services? It’s APRIL 2019

121

w w w.suppl yc ha i ndi gi ta l. com

Project management Praj’s project management team consists of qualified, experienced and PMI certified professionals well versed with the global standards and practices.

Engineering Engineering is the backbone of Praj’sintegrated offerings.

More than 70% of the employee strength consists of engineers of various disciplines – Chemical, Mechanical, Civil & Structural, Electrical & Instrumentation etc. Praj has successfully leveraged their capability to provide modular solution to range of industries.

www.praj.net

Over the last few years, Praj has successfully supplied M industries such as Oil&Gas, Refineries, PetroChemicals and C engineering capability for designing modules and equipment clients and till date we have reference base in more than 75 been appreciated by our global clients. Leveraging our man highly price competitive solutions to the industry. Praj with more challenging projects in spirit of partnership with custo

Manufacturing Praj’s business lines are supported by its world-class manufacturing infrastructure. Praj has 4 manufacturing facilities in India. All the facilities have the capability to manufacture equipment in compliance with the most stringent requirements of various countries across the globe.

All the facilities are accredited with ASME U&U2 stamps and have also successfully manufactured equipment with CE, EN, GOST, DOSH certifications etc.

Supply Chain Management A strong backbone of SCM team supports the complexities involved in Praj’s business. With around 50 qualified professionals, the team handles procurement of over 100 categories of commodities, metals, equipment, electrical, automation, piping, structural, rotary equipment like pumps and compressors.

Modular Plants and Static Equipment to various process Chemical industries.This is enabled by our multi-disciplinary t. Our team has very good experience of working with global 5 countries. The quality systems are world-class and have nufacturing locations in India, we have been able to provide h its demonstrated capabilities is geared-up to take-up far omers.

FIND OUT MORE HERE

EXTERRAN

important to figure out exactly what we’re enabling.”

IMPLEMENTING DIGITISATION Having previously worked in India at General Electric Oil & Gas in a variety of different roles such as Senior Product Manager, Business Manager and then Head of Supply Chain Integration, Devadiga is well-positioned to oversee the beginning of Exterran’s digital transformation as it begins to digitise its operations. “We’re in the process of digitising our supply 124

chain operations in order to implement the same ERP globally and we’re also introducing the necessary digitisation platforms to enable engineering teams to work seamlessly across our locations in Houston, the UAE and Singapore. It also allows us to connect with the supply chain team which, similarly, is on a platform that allows us to collaborate as a global supply chain organisation,” he explains. “We’re very much in the nascent stages of digitisation and I believe our approach of low investment, high return is vital.”

“At our current stage of digitisation, we have invested in two key things.

Firstly, we have remote monitoring and APRIL 2019

“ We’re very much in the nascent stages of digitisation and I believe our approach of low investment, high return is vital” — Suraj Devadiga Director of Supply Chain MEA & APAC Exterran

diagnostics equipment that allows us to collect, collate, synthesise and then analyse information from equipment across various sites worldwide. Once we have refined our operations in one area, we can then implement this approach across our various locations which have the same operating dataset,” he says. “Digitisation is also enabling to us reduce our operating expenditure and better manage our finances.”

Devadiga believes the transition of three enterprise resource planning (ERP) systems to two has been key to his company as it looks to implement phase one of its digital transformation.

“In the third quarter, we’re targeting for all our pilots to be completed and launched to the platforms. We must be very judicious, take the feedback and refine it because you need a strategically significant dataset,” says Devadiga. “One of the big hurdles has been that we don’t have a contract operations site in the US where we just sell products.

However, in terms of the rest of the world, we have more of a 360- degree solution approach because we don’t just sell products but we also build, own, operate, and maintain them over five to 10 years. Ultimately, it’s the big global w w w.suppl yc ha i ndi gi ta l. com

125

Handle the Pressure We know you’re no stranger to pressure. At Atlas Copco Gas and Process, we strive to transform industrial ideas into solutions that help you thrive under pressure. That’s why Exterran has trusted Atlas Copco Gas and Process for over a decade to supply the critical turbomachinery they need. With solutions developed to ensure on-time completion of gas processing plants across the globe, we are a connected, accessible partner when the pressure is on and delivery timelines are tight.

Working with Atlas Copco Gas and Process ensures that you have a partner every step of the way, helping you handle today’s pressures while creating a sustainable future.

Find out how Atlas Copco Gas and Process can help you handle the pressure at atlascopco-gap.com

CLICK TO WATCH : ‘EXTERRAN OVERVIEW’ 127 sites in Argentina, Oman and Thailand

During the past year, our Middle East

where the first phase of our digital

operations in Oman and Bahrain as

transformation plan will be launched.”

well as our manufacturing facility in the UAE and Dubai are all on Oracle. But,

FORMING KEY PARTNERSHIPS

Pakistan, Nigeria, Thailand, Indonesia

Exterran has begun to work with

and the entire Asia-Pacific region still

Oracle across all its sites in North

use Sage Accpac as an ERP. That’s

America and Latin America. Through

why we’re rolling out these pilots only in

the company’s collaboration with

the Oracle ERP areas.”

Oracle, Devadiga believes his company

The importance of establishing and

has utilised ERP to introduce pilots

maintaining key partnerships is

successfully. “In the western hemi-

fundamental to all successful busi-

sphere, all our sites in places such as

nesses. Exterran has collaborated with

North America and Latin America with

industry leaders such as General

the exception of Peru are on Oracle.

Electric, Ariel Compressors, Caterpillar w w w.suppl yc ha i ndi gi ta l. com

Intelligence Automation

Solutions for the Oil & Gas Industry Visit us at: www.intechww.com

USA

UAE

Saudi Arabia

LEARN MORE

Nigeria

Singapore

Pakistan

Agencies in:

Kuwait

Oman

Kazakhstan Qatar

Peru

North Africa

Angola

China

Indonesia

“ It’s up to us to select the compressor that Ariel may be manufacturing and marry it to the engine that Caterpillar might be manufacturing” — Suraj Devadiga Director of Supply Chain MEA & APAC Exterran

129

Engines and Atlas Copco. Devadiga

However, these two units don’t do

affirms that a good working relation-

anything by themselves. The engine

ship with partners is vital to success.

and compressor must be together

“Our partners are extremely impor-

and installed with the associated

tant,” he says. “From our perspective,

piping and other components in a

there’s a very high degree of depend-

manner that fulfils the purpose for

ency on these original equipment

which that compressor has been

manufacturers (OEMs). We need

designed. That capability exists with

them to value our association as a

us because we develop the solution in

delivery model for their products into

order to process and treat that gas.

the oil and gas industry because

It’s up to us to select the compressor

we’re packagers of their machines

that Ariel may be manufacturing and

and we buy the engine and compres-

marry it to the engine that Caterpillar

sor from the engine manufacturer.

might be manufacturing.” w w w.suppl yc ha i ndi gi ta l. com

EXTERRAN

“ Ultimately, it’s the big global sites in Argentina, Oman and Thailand where the first phase of our digital transformation plan will be launched” — Suraj Devadiga Director of Supply Chain MEA & APAC Exterran

The bigger the challenge, the greater our energy CHTR

RPH

We, at KSB believe that engineering and manufacturing quality and environment friendly centrifugal pumps and industrial valves is not a virtue, but a way of life.

Today, a KSB user takes for granted not only our product quality and performance, but also prompt customer support-nationwide. This approach wherein the customer experience service levels that far exceed his expectations, has led to KSB being the most preferred brand, both in India and worldwide. Come, experience and enjoy KSB KSB Limited • Mumbai-Pune Raod, Pimpri, Pune - 411 018 (India) • Tel.- +91-20-27101000 • www.ksbindia.co.in

131

LOOKING TO THE FUTURE

explains Devadiga. “We’re in the first

Looking forward, Exterran is set to

stage of collecting data and transform-

remain acutely focused on its digital

ing that data into information. But if we

transformation strategy. Valuing a

can implement tools where the informa-

mentality of “knowledge is power”,

tion can be gleaned from the data and

Devadiga believes it’s important to

made available to managers both at a

remain vigilant when gathering data in

high and mid-level, it will create a

the digital space. “We can’t improve

knowledge base that will allow us to

when we don’t know what we need

scale up from being this $1-3bn

improve on. The journey to knowledge

company and hit the $5bn mark. That

starts with three simple words which

has to be the goal.”

are extremely difficult for most people to say: ‘I don’t know’. But the moment we admit that we don’t know, that’s when we can start our journey,” w w w.suppl yc ha i ndi gi ta l. com

132

The vision for procurement transformation and supply chain digitalisation at the Department of Culture and Tourism WRIT TEN BY

DA LE BENTON PRODUCED BY

GLEN WHITE

APRIL 2019

133

w w w.suppl yc ha i ndi gi ta l. com

D E PA R T M E N T O F C U LT U R E A N D T O U R I S M

Waleed AlSaeedi, Director of Procurement at the Department of Culture and Tourism — Abu Dhabi, outlines the vision for procurement transformation and the digitalisation of the department’s supply chain

A

s a government agency, the Department of Culture and Tourism – Abu Dhabi (DCT Abu Dhabi) is tasked with a major goal: to

further the development of Abu Dhabi as a dynamic 134

and fast-evolving global destination of distinction through diverse leisure, business, culture and entertainment experiences for residents and international tourists. With a responsibility driven by government, achieving this places greater scrutiny on the organisation’s resources, budget and in turn its procurement function. Waleed AlSaeedi, Director of Procurement at DCT Abu Dhabi, recognises this responsibility. “In order for the organisation to best serve the people of the UAE, my procurement department has to consistently innovate and operate with agility and foresight in order to ensure that our operations have the goods, services and materials that it needs, and that the most cost-effective resources in the market are procured,” he says.

DCT Abu Dhabi’s departments uwalse a variety APRIL 2019

135

w w w.suppl yc ha i ndi gi ta l. com

THE ART OF HANDLING VALUES IN THE MIDDLE EAST Fine Art Transports | Fine Art Storage | Airport Services | Relocation Services

EXCELLENT QUALITY, HIGH SAFETY STANDARDS, ABSOLUTE DISCRETION AND ENVIRONMENTAL AWARENESS. Whether individual transports or complex movements, national and international – our trained and certified employees worldwide manage new and demanding tasks with their long-term experience and the greatest deal of engagement. Paintings, sculptures, installations or cultural assets of all kinds – each object is handled individually as hasenkamp provides both the development of innovative and customized packaging solutions and special transportation vehicles and handling equipment. We make each transport unique and extraordinary.

www.hasenkamp-middle-east.ae | Hermann Pertzborn | h.pertzborn@hasenkamp-middle-east.ae P.O. Box 391410, Dubai, U.A.E. | + 971/4/33 88 435

D E PA R T M E N T O F C U LT U R E A N D T O U R I S M

“ As an employer of choice for the profession we were able to attract industry experts and enhance our internal capabilities” 138

— Waleed AlSaeedi Director of Procurement DCT Abu Dhabi

APRIL 2019

of inputs, ranging from ‘common types’ such as training, facilities management contracts, computers, furniture and other standard items, to ‘rare services’ such as the transportation and handling of antiquities, hiring performing artists and the refurbishment of historic buildings. As a result of this, the organisation’s supplier base is extensive, complex and requires procurement to “cast its net far and wide in order to find the right solutions to the organisation’s needs”. Since 2015, the organisation’s strategy has focused on cost minimisation and the

CLICK TO WATCH : ‘ABU DHABI CULTURE MOBILE APPLICATION’ 139 implementation of a more business-

for ways in which it could rationalise

oriented approach. While previously

purchasing in order to be ready for the

DCT Abu Dhabi was tasked with just

2015 agenda. “We put an emphasis on

providing services, today its various

supporting DCT’s strategy in develop-

departments are also required to make

ing Abu Dhabi’s supplier base with

business cases for their initiatives and

three core purposes: to support local

look for ways in which they can pay for

businesses, particularly the SME

the services that they offer to the

sector; to help to develop local

public and to other government

capabilities – which will benefit us in

entities. Following his appointment as

terms of costs and simpler supply

Procurement Director in 2013, AlSaee-

chains; and to reduce the risk of

di was required to undertake a

depending on just one or two major

complete review of the spend under

suppliers.” Over time, AlSaeedi has

management against DCT Abu Dhabi’s

seen these approaches deliver on DCT

five-year corporate objectives and look

Abu Dhabi’s ambitious goals and w w w.suppl yc ha i ndi gi ta l. com

JCDecaux, the number one outdoor and airport advertising company worldwide, delivers unparalleled communication opportunities for advertisers seeking to build meaningful interaction with valuable audiences in over 80 countries. JCDecaux holds advertising concessions across the world’s leading hubs, in more than 200 airport platforms including Abu Dhabi Airports, targeting the highly influential airport audience.

www.jcdecauxme.com/abu-dhabi | abudhabi@jcdecaux.com | Tel: +971 4 4398404

“By devolving responsibility to our end-users, we have freed up resources to look at more strategic activities” — Waleed AlSaeedi Director of Procurement DCT Abu Dhabi

This has seen an internal restructuring over the past five years, to create three units focused on spend: Procurement Operations (Buyers), Strategic Sourcing (Business Partners), which manages all the pretender work, and a section that looks after Performance Management, which develops and manages information systems and identifies improvement areas. “As an employer of choice for the profession we were able to attract industry experts and enhance our internal capabilities,” says AlSaeedi. “As part of our efforts to streamline, all the low-value direct purchasing has been

ultimately deliver success in serving

devolved to end user departments. By

the organisation’s agenda. This, he

no means do we ignore this important

feels, has resulted in the procurement

aspect of DCT Abu Dhabi’s operations,

department becoming a critical and

but we are primarily focused on and

influential department within the

responsible for setting up blanket

organisation, recognised across the

purchase agreements (BPAs) and

board as a key player driving the

managing Purchase Orders (POs). By

organisation forward.

devolving responsibility to our end-

DCT Abu Dhabi is a merger of three

users, we have freed up resources to

authorities: the Abu Dhabi Authority for

look at more strategic activities such

Culture and Heritage, Abu Dhabi

as performance sourcing and contract

Tourism Authority and the cultural

management improvements.”

department of the Tourism Development & Investment Company (TDIC).

DCT Abu Dhabi has also redefined how it manages and approaches its w w w.suppl yc ha i ndi gi ta l. com

141

D E PA R T M E N T O F C U LT U R E A N D T O U R I S M

142

business in order to maximise its

Dhabi has had to undergo a digital

resources and avoid unnecessary

transformation of procurement in order

costs; achieved not only by finding the

to truly embrace the digital age.

cheapest suppliers for a project but in

AlSaeedi notes that implementing new

assessing total cost of ownership of

technologies and digital processes has

assets and the long-term impacts of

been a key method to increasing eff-

BPAs and contracts. “Ultimately, our

iciency in the department’s systems

market knowledge enables us to

and processes while also enhancing

advise the organisation’s departments

transparency, accountability and data

on the most financially efficient way

analysis. Some of the projects that fall

they can achieve their goals,” adds

under digitalisation include a new

AlSaeedi.

Contract Management System that

With technology redefining the procurement function globally, DCT Abu APRIL 2019

allows DCT Abu Dhabi to capture risk, implement digital signatures to reduce

cycle time analysis. DCT also imple-

improving individual employee metrics.

mented a procurement dashboard,

It’s fair to say also that the use of our

which has enabled, and will continue to

digital cloud systems enables us to

enable, the company to make evi-

capture meaningful data from opera-

dence-based decisions using accurate

tions in real time; for example, I can see

data. “By implementing these along

the status of our tenders on our

with a few other projects there have

dashboard or review supplier perfor-

been considerable improvements

mance reports as soon as they are

made to processing time, oversight

uploaded. It enhances tactical decision

and accountability,” he says. “Our

making but also allows for evidence

procurement dashboard, for instance,

based strategic planning,”

gives us the ability to analyse data and

With technology comes a demand

supports DCT Abu Dhabi in its compet-

for agility and flexibility and so procure-

itive analysis of the market, strategic

ment managers, buyers, sourcing spec- 143

insights on spend as well as with

ialists, category managers and others

E XE CU T I VE PRO FI LE

Waleed AlSaeedi In close collaboration with the Executive Management Team, Waleed AlSaeedi is responsible for managing, monitoring and oversight of procurement, contracts, contracts administration and Supplier Relationship Management (SRM) for the TCA’s corporate requirements. In addition the role encompasses responsibility for the coordination of procurement activities across the organisation, policy compliance, coordinating procurement and contracts activities, and supervising procurement and contracts employees.

w w w.suppl yc ha i ndi gi ta l. com

D E PA R T M E N T O F C U LT U R E A N D T O U R I S M

144

APRIL 2019

CO M PAN Y FACT S

The Department of Culture and Tourism — Abu Dhabi manages the Emirate’s tourism sector and markets it internationally through a wide range of activities and major events, aimed at attracting both culturally sensitive visitors and increased investment.

As part of its priorities, the Department also ensures the preservation of Abu Dhabi’s cultural heritage, especially its historic and archaeological sites.

However, its focus is not solely on the past: it is also responsible for overseeing the development of the landmark museums in Abu Dhabi’s Saadiyat Island Cultural District, including the Louvre Abu Dhabi as well as the upcoming Zayed National Museum and Guggenheim Abu Dhabi.

w w w.suppl yc ha i ndi gi ta l. com

145

D E PA R T M E N T O F C U LT U R E A N D T O U R I S M

have to be able to adjust to meet an

Abu Dhabi can use. One area of

ever-evolving digital landscape.

particular interest to AlSaeedi is the

AlSaeedi expects to see disruptive

ever-increasing ability of smart

technologies take a stronger hold of

systems to accrue expanding data sets

procurement as computing capacity

and consequently, the methods and

and generational forces push digital

approaches to interpreting said data.

and technological approaches even

“It will create new challenges for

more into the mainstream, such as the

procurement that we’ll need to

use of machine learning and AI in

respond to,” he says. “Overall though,

contracts management and the greater

it’s clear to me that despite these

use of online and automated tools for

changes we are not replacing the

inspection and performance manage-

ability of people to make procurement

ment, creating more data that DCT

decisions. The difference, in fact, will

146

APRIL 2019

be the strength of evidence, backed by

dalone systems are already in place

smart data and tools, to make and

e.g. Oracle, Dashboard and a Contract

execute those decisions.”

Management System (CMS), and the

Key to this has been the implementa-

company is currently working on

tion of automation software in the

integrating all of these into one

source-to-pay process. DCT Abu

combined system. “The benefits of this

Dhabi has automated most of the low

are pretty obvious: the amount of time

value, less complex engagements and

this saves to my team in terms of

works intensively on creating solutions

closing communication gaps and

and models to accommodate high

avoiding endless paper trails is

value complex engagements which

exceptionally high and as a result we

require multiple different stakeholders

focus on adding more complexity to

being included in the process. Stan-

our requirements of suppliers for 147

“Technological and digital transformation is at an advanced stage where now the questions are: how do we make this better and how do we take it to the next level?”

— Waleed AlSaeedi Director of Procurement DCT Abu Dhabi w w w.suppl yc ha i ndi gi ta l. com

D E PA R T M E N T O F C U LT U R E A N D T O U R I S M

instance, by requesting environmental or social responsibility data,” he says.

“We’ve also looked at Strategic Category Management (SCM) under the Business Partnering roles, which has enhanced the focus on analytics as an increasingly critical new approach to procurement best practice. As a first step, we have developed an advanced dashboard which provides data points from our procurement operations covering all aspects i.e. spend tracking and management for instance. The 148

next phase will be to start using data analytics reports, manage the spend performance and visualise the data.”

A supply chain and procurement function can only be as strong as its supplier and vendor network and as DCT Abu Dhabi has streamlined its procurement and embraced technology, it has been able to reassess the way it categorises and measures its suppliers of choice. “Our supplier relationship management framework is designed to match risk and value with supplier capabilities,” says AlSaeedi. “It is a question of strategic clarity and building trust through fair and open tendering and working closely with APRIL 2019

suppliers during contract implementation.” Supplier relationships can change and DCT’s core strategy is to leverage its data to measure and track performance, so relationship strength assessments are based on evidence.

“Technology will help us to manage these relationships: for example, data from supply histories can be used to identify the share of spend under management that goes to each major firm, and we will then be able to look at areas where we need to work on widening the base.”

With technology continuing to evolve, digital transformations never end but simply evolve alongside the technology.

AlSaeedi notes that DCT Abu Dhabi’s immediate digital future will see the roll-out of a central, digital procurement portal; DCT is one of nine government entities involved in piloting the portal. “We will need, naturally, to review and change certain things as we see how they work in practice but I’m confident in the job the steering committee has done over the past few years having witnessed the work first hand. The second phase will be launched later this year, by which time w w w.suppl yc ha i ndi gi ta l. com

149

D E PA R T M E N T O F C U LT U R E A N D T O U R I S M

the portal’s functionality should be at 100% and we use can it to its full capacity.”

The portal implementation will involve training for DCT Abu Dhabi’s procurement team as well as increased work with suppliers to accommodate digital procurement processes. “In the coming year we will most likely review the procurement and supply management strategy with reference to DCT Abu Dhabi’s corporate strategy and will no doubt 150

revise our category management approach as to better leverage the capabilities of the portal,” says AlSaeedi.

Whatever the future holds for digital procurement, DCT Abu Dhabi’s efforts to streamline and to further embrace technology and innovation has created a foundation that it can build on.

AlSaeedi is keen to stress that as an organisation, DCT Abu Dhabi is consistently looking for new ways to innovate in the digital and technological area. “Technological and digital transformation is at an advanced stage where now the questions are: how do we make this better and how do we APRIL 2019

151

take it to the next level?” he says. “And thankfully, I’m confident that my young, skilled but also very experienced team has the answers to those questions and will continue setting the high standards I’m accustomed to.”

w w w.suppl yc ha i ndi gi ta l. com

152

Proactive supply chain management and procurement principles WRIT TEN BY

HARRY MENE AR PRODUCED BY

CHARLOT TE CL ARK E

APRIL 2019

153

w w w.suppl yc ha i ndi gi ta l. com

VA L M E T O YJ

We talk to Manish Sharma, Director of Supply Chain, Asia Pacific, at Valmet, about ensuring sustainability principles are maintained across the company’s global supply chain

S 154

panning more than 130,000 miles of impenetrable coniferous forest, rugged coastal fjords and over 160,000 lakes,

the country of Finland is among the most northerly nations in the world. The entire country lies within the boreal zone, characterised by its brief, warm, balmy summers and its dark, snow-blanketed winters. Its capital, Helsinki, is the second most northerly capital city on Earth, and 78% of its land is blanketed in forest. It is no surprise then that the nation’s economy is intrinsically linked with the production of lumber, pulp and paper.

In the 1970s, pulp and paper production accounted for over half of Finland’s total exports. Although the industry’s share has decreased over the past 50 years, as the nation’s economy has diversified and highskill industrial, chemical and engineering jobs have gained prominence in the workforce, the manufacture of pulp and paper still accounts for over 22,000 jobs in the country, according to a Statista report.

APRIL 2019

155

w w w.suppl yc ha i ndi gi ta l. com

VA L M E T O YJ

156

APRIL 2019

“We often receive very positive comments from suppliers, who say something we’ve put in place has improved their productivity and performance” — Manish Sharma, Director of Supply Chain, Asia, Valmet

w w w.suppl yc ha i ndi gi ta l. com

157

LOGISTICS MADE EASY

Martin Bencher

PAPER MILL In 2018, Martin Bencher delivered equipment for a paper mill from South China to a place deep inside Siberia, Russia.

The biggest units were four heat body units measuring 56 tons each.

The project was successfully executed and delivered under extreme weather conditions; a temperature difference of 70 Celsius degrees from the warm factory in China to the cold site in Russia.

www.martin-bencher.com

CLICK TO WATCH : ‘EXPLORE SUSTAINABILITY AT VALMET’ 159

With industrial roots reaching back

South East Asia, Korea, Japan,

as far as the 1750s, Valmet is synony-

Australia and New Zealand. We sat

mous with sectors like manufacturing,

down with Director of Supply Chain,

energy and the production of paper

Asia Pacific Area, Manish Sharma, to

and pulp. Its offerings include pulp

explore the expanse of supply chain

mills, tissue, board and paper produc-

operations and the ways in which

tion lines, as well as power plants for

these operations ensure high stand-

bioenergy production. In 2017, the

ards of sustainability in the area. . “We

company reported net sales of

are always looking at ways to design

US$3.5bn and employs over 12,000

our operations to be cost competitive,”

people across more than 30 countries

says Sharma, “as well as working to

and 150 locations. The company has a

improve our suppliers’ operational

significant presence across the Asia

excellence, while ensuring that health,

Pacific region, with operations in India,

safety, environment & quality occupy w w w.suppl yc ha i ndi gi ta l. com

VA L M E T O YJ

“ Health, safety, environment and quality occupy the top spot of our agenda” — Manish Sharma, Director of Supply Chain, Asia, Valmet

ISO 9001:2015 AND OHSAS 18001: 2007”CERTIFIED COMPANY

Constructing Industries since 1954...

Successfully installed these machines and they are in commissioning stage now Corp Office: T 418-423, 3rd Floor, ‘A’ Block, Palam Corporate Plaza, Rezang-la Marg, Gurgaon – 122017, HR, INDIA. www.sfeinfia.com

161 the top spot on our agenda.” Sharma

cuses, Sharma explains, is ensuring

has been in the procurement space

that, across all its operating regions,

for over 23 years, and has spent a

its products and methodology adhere

large portion of that time in the paper

to global standards. “Whatever we

production supply chain. He joined

do, we do it to the degree of quality

Valmet four years ago and works to

that Valmet is known for, which is ac-

ensure that Valmet’s Asia Pacific

cepted globally. We ensure that our

business interests operate in accord-

best practices are in-line with global

ance with the company’s industry-

quality standards and are followed in

leading practices. “My core responsib-

spirit,” he reiterates. For a global indus-

lity is to ensure the implementation of

trial firm, Valmet places great impor-

Valmet’s core principles and practices

tance on agility in an ever-changing

throughout the company’s value chain,”

marketplace. Sharma’s role is also

he explains.

focused around the goal of keep-

One of the company’s main fo-

ing Valmet’s Asia Pacific operations w w w.suppl yc ha i ndi gi ta l. com

VA L M E T O YJ

proactive. “We are a very proactive organization and a lot of good work is being done from the view of strategic, operational and tactical procurement,” he says. Valmet’s forward-looking approach focuses on identifying upcoming changes in the market: “What are the mega-trends? What are the upcoming environmental regulations that will require us to make changes to the way we run production? That’s one of the reasons the company is investing so heavily in R&D.” Currently, Sharma notes, the trends Valmet is 162

working on, to address range from the increasing digitisation of media to the growth of e-commerce. “Printing is disappearing, but e-commerce companies, which use large amounts of boards for packaging, are on the rise,” Sharma says. “Also, in Asia there’s a lot of urbanization, so more people are going to college, which creates demand for things like textbooks.

Furthermore, the growing population in the Asian sub-continent provides demographic dividends for such industries to thrive. Nonetheless, there are always prevailing market dynamics or needs that we must be privy to, to strategize our supply chain operations.

APRIL 2019

The need to adapt, while maintaining a global standard of product and sustainability practice is also “embedded in our supplier selection, evaluation and management process,” says Sharma. Over the course of his role at Valmet, Sharma has worked with “basically three types of supplier: suppliers who manufacture standard commercial items, suppliers who manufacture their own designs, and those that produce Valmet-designed products and technology. That’s the supplier segmentation that we’re looking at. However, the top spot goes to suppliers who manufacture according to our designs and work as per our practices,” he says, due to the fact Valmet’s products are manufactured to that global standard and can therefore be sourced globally.

“When we select a supplier, we evaluate their social, economic and environmental strength. Where do they stand on social best practice? Do they have quality management systems?

How about safe working environments that keep their workforce intact?

Basically, do they adhere to their principals?” Sharma continues, noting that “there are mature countries, there w w w.suppl yc ha i ndi gi ta l. com

163

VA L M E T O YJ

are medium-risk countries and there are high risk countries”. A supplier from a mature country, like Finland or Sweden, Sharma says, can be evaluated for compliance via a self-assessment questionnaire. “It’s an exhaustive questionnaire that covers every aspect of our sustainability guidelines. As for a medium or high-risk country, we do a physical audit through a third party who inspects the supplier based on our sustainability guidelines. If we’re buying something from Thailand or Vietnam for example, we make sure that we do 164

a physical audit.” Potential suppliers who do not meet Valmet’s standards are provided with feedback to improve workplace practices, safety and efficiency. “We help our suppliers improve their operations, which they very much appreciate. We often receive very positive comments from suppliers,

“ You definitely have to have to respect one another and understand one another’s cultural role to be successful when working across borders” — Manish Sharma, Director of Supply Chain, Asia, Valmet

APRIL 2019

$3.1bn+ Approximate revenue

2013

Year founded

12,000

Approximate number of employees 165

who say something we’ve put in place

expectations and can’t be successful

has improved their productivity and

in that region if we’re not meeting their

performance,” Sharma says. “They

expectations. So, when we approach

realise that sustainability is not merely

things like delivery at Valmet, we need

an exercise in compliance.”

global acceptance.” He maintains that

The cultural diversity between the

the key to meeting these challenges is

different Asian regions presents a

having good communication within the

unique challenge for Valmet’s supply

Valmet team to ensure standardisation.

chain. Offering standardized global

He continues, “you definitely have to

services can become challenging

have to respect one another and

when dealing with a disparate roster of

understand one another’s cultural role

clients and suppliers. “You have Japan,

to be successful when working across

which is very conscious about on-time

borders”. Given the diversity across

delivery, and we need to match their

Asia Pacific markets, Sharma is w w w.suppl yc ha i ndi gi ta l. com

VA L M E T O YJ

166

APRIL 2019

confident that things have progressed very well. “Definitely with every supplier you’re going to find gaps, and the number of noncompliances is higher in Asia, but with fewer “serious” violations. Things are improving a lot and one of the reasons for that is that we are continuously educating and engaging in a dialogue with our suppliers.”

Valmet’s procurement journey in the Asia Pacific region is one of constant adjustment and improvement. “We are always looking at the mega trends of the market,” says Sharma. “We constantly renew our products and technology, while putting emphasis on operational excellence and the people we work with and serve. Those pillars allow us to constantly improve.” On the future of his role and that of Valmet in the region, Sharma says: “I see a great future for Valmet. Since we are one of the leading companies in the world, we have a lot of responsibilities when it comes to maintaining a level of excellence.

That’s why we have high standards and the need to constantly improve. That’s the key to success.”

w w w.suppl yc ha i ndi gi ta l. com

167

168

APRIL 2019

169

Coupa Software: Empowering businesses to spend smarter with Value-as-a-Service WRIT TEN BY

L AUR A MULL AN PRODUCED BY

CHARLOT TE CL ARK E w w w.suppl yc ha i ndi gi ta l. com

C O U PA S O F T W A R E

Customers including Unilever, Salesforce, and Airbus look to Coupa’s business spend management platform to empower their businesses with visibility, control their spend, and unlock measurable value

170

F

or businesses striving to win in the global marketplace today, every competi-

tive advantage matters. More and more

businesses are looking internally to drive value,

starting with their spend strategy. From procurement to expenses, organizations are trying to spend smarter and realize value from every investment, as well as mitigate critical risks across the supply chain. Business leaders know that profitability and growth are achieved not only by increasing revenues, but also by looking inside their organizations to cut waste and deliver value.

To ensure that value is delivered, business leaders are turning to the latest technology that empowers them with the visibility and control they need when it comes to business spend. These technologies, grouped under the category Business Spend Management (BSM), offer comprehensive cloudAPRIL 2019

171

based spend solutions for companies and organizations of all sizes. Unlike spend management technologies of the past, these solutions not only centralize all spend in one place, enabling unprecedented insights, they also address business software’s age-old issue of usability—after all, software, however great its feature set, cannot deliver value if it’s not used.

Additionally, for finance leaders in regions where tax compliance is complex, modern BSM technology implementation offers an easy and w w w.suppl yc ha i ndi gi ta l. com

Transform Procurement with Contract-Centric Sourcing Accelerate

www.icertis.com

Protect

Optimize

streamlined solution to an increas-

and financial services organization

ingly difficult challenge. Along every

based in Singapore, selected Coupa’s

step of the supply chain and across

procurement and compliance invoic-

the globe, software should automate

ing solutions and digitized 92% of

tax compliance and keep up with

$400mn. The company also reduced

ever-changing regulations and

the time spent on procurement by

policies at scale.

employees by 70% to increase

Coupa’s Business Spend Management Platform delivers a comprehen-

operational efficiency.

The value Coupa delivers for its

sive, open, and user-centric solution

customers – including leading

for source-to-pay, travel and expense

businesses such as; Airbus, Unilever,

and risk management, offering value

and Sanofi – has earned the company

from day one. For example, Coupa

top recognition from leading analyst

customer DBS, a multinational banking

groups who frequently place Coupa

E XE CU T I VE PRO FI LE

Gabe Perez Gabe Perez, Vice President, Asia-Pacific, has been an instrumental player in Coupa’s rapid growth for almost nine years. From being a key speaker at Coupa’s first-ever Analyst Day at Nasdaq to a presenter at mainstream industry events to the leader of Coupa’s strategy in the Asia-Pacific region, Perez is a forward-thinking SaaS evangelist, advocating for how Value-as-a-Service is changing the way companies do business. Before Coupa, Perez was a business consultant and earned an MBA in global supply chain management.

w w w.suppl yc ha i ndi gi ta l. com

173

C O U PA S O F T W A R E

“What Salesforce is to sales, Coupa is to spend” — Gabe Perez Vice President Asia-Pacific, Coupa Software

into the ‘top right’ for procure-to-pay, expense management, contract management and other BSM processes. The company also achieved a coveted spot on Deloitte’s Technology Fast 500 ranking list and the Great Place to Work list by Fortune magazine. Gabe Perez, Vice President Asia-Pacific, shares more about Coupa and the company’s focus on delivering “Value-as-a-Service” as it works to ensure customer success.

“Regardless of size, every company in the world manages spend. Your

174

APRIL 2019

CLICK TO WATCH : ‘COUPA INSPIRE ‘19 – SPEND SMARTER TOGETHER’ 175 end-users, or employees, may need to

point in time, you can show how the

spend money in order to get the

service, people, platform and the

products and services they need to do

partners Coupa provides have driven

their job and companies will also have

measurable outcomes – something

procurement teams working strategi-

that is unique for a technology offering.”

cally with suppliers,” observes Perez.

Coupa has made a name for itself

“Today, business leaders are continu-

in the Software-as-a-Service (SaaS)

ally looking for ways to drive value, to

space, becoming a ubiquitous tool in

move faster on mergers and acquisi-

any CFO and CEOs toolkit. Indeed,

tions, to scale their companies and to

Perez enthuses that “what Salesforce

get greater visibility regarding spend,

is to sales, Coupa is to spend,” allow-

and Coupa helps fill this need. The

ing customers to gain greater visibility

reality is that Coupa, unlike other

and control of their finances. One

business software, gives a measurable

such client that has benefitted from

return on investment (ROI). At any

this approach is global financial w w w.suppl yc ha i ndi gi ta l. com

C O U PA S O F T W A R E

“Since day one, Coupa has always focused on customer success and delivering value” — Gabe Perez Vice President Asia-Pacific, Coupa Software 176

APRIL 2019

services company Aon. During one of its earnings calls, Perez notes how Aon’s CFO talked “about the US$30mn marginal expansion they were able to increase with Coupa.”

Similarly, Rolls-Royce has been an advocate of the software firm. On one of its market days last year, Perez highlights how the automotive giant “exceeded the 5% industry benchmark for savings by bringing its spend down from $2.7bn to $2.3bn, all with 23% less resources” in a cost control initiative supported by the Coupa BSM Platform.

The past few years have represented an exciting chapter in Coupa’s history.

Having launched its IPO in 2016, the firm now stands as a billion-dollar unicorn. “For us, going public just showed the start of what we could do,” reflects Perez. “It was a great point in my career and an exciting moment for the firm because it brought us into the open market with a level of credibility that has allowed us to work with some of the largest companies in the world.”

Now, headquartered in the heart of Silicon Valley, the company offers its cloud-based business spend managew w w.suppl yc ha i ndi gi ta l. com

177

C O U PA S O F T W A R E

ment platform to hundreds of organisa-

Mondelēz and Procter and Gamble

tions globally.

start to use this platform across APAC,

As it extends its reach across the Americas, EMEA and APAC, Perez

their heads and realise the value that

says the firm has its eyes set firmly on

their peers are getting from managing

up-and-coming geographies. “Emerg-

their spend effectively.”

ing markets are seen as a key growth

178

local companies are beginning to turn

As software tools saturate the

driver for us,” Perez says, highlighting

market, it’s easy to get swept on up in

how, in his current role, he’s “trying to

the tide that is digital transformation.

bring that same level of acceleration

Instead of focusing solely on technol-

and value to customers in the Asia-

ogy, Perez urges businesses to really

Pacific.” “I think there’s a really big

think about the business outcomes

opportunity to create value,” he adds.

they hope to achieve. “Digitalisation

“As well-known Coupa customers like

and transformation are a critical part

APRIL 2019

of any modern business but at times,

but numbers and measurable out-

people may resist change. If you make

comes are a global language. That’s

the process one that adds value for

what Coupa has done – we’ve been

them as a stakeholder and is simple

able to make it simple for end users

and easy to use, they’re more likely to

and suppliers to engage with a

engage,” he says. It’s a simple concept.

digitized business.”

He contends that businesses should

As a cloud-based platform, Perez

start with a measurable outcome that

contends that Coupa can enable

they hope to achieve and work

customers to “move quicker, bring

backwards, striking partnerships with

acquisitions into the platform easily

firms that can deliver demonstrable

and add more functionalities.” With this

results. “The business outcome should

speed, Perez says that the Silicon

be the focus of your conversation,” he

Valley-based company has been able

adds. “Change can be hard for people,

to create a “trillion-dollar data set that

“The value you can drive for a customer’s business should be the focus of your conversation” — Gabe Perez Vice President Asia-Pacific, Coupa Software

w w w.suppl yc ha i ndi gi ta l. com

179

C O U PA S O F T W A R E

2006

Year founded

1,300

Approximate number of employees

180

APRIL 2019

181

w w w.suppl yc ha i ndi gi ta l. com

C O U PA S O F T W A R E

is growing rapidly every quarter.” It’s this community data – Coupa Community Intelligence – that has enabled the company to launch innovative, AIbased capabilities across its platform, including risk mitigation and fraud prevention.

“We can use this community data and apply machine learning and artificial intelligence (AI) to it to deliver meaningful, prescriptive insights that empower businesses to make smarter spend decisions,” adds Perez. “We 182

can also provide benchmarking that enables businesses to look at what peers are doing, and what you could be doing to reach your goals.”

User centricity and continuous innovation are key values at Coupa.

For example, Perez points out how “between 30-50% of our releases are features that were requested by the Coupa Community.” As well as having a community of enthusiastic customers to rely on, Coupa has formed a rich ecosystem of partners to help business adopt Coupa to deliver business value.

“Early on, we looked to build a team of subject matter experts who would enable and co-implement spend APRIL 2019

“Coupa gives a measurable return on investment” — Gabe Perez Vice President Asia-Pacific, Coupa Software

management solutions. We have global leaders like KPMG, Accenture and Deloitte and we also have regional partners that help users across the globe.”

A robust financial function is the backbone of any successful business.

Recognising this, Perez says Coupa will remain laser-focused on driving business value for its customers over the coming years. “Since day one, Coupa has always focused on ensuring customer success and delivering outcomes – that’s never going to change. I see our technology continuing to play a greater role in driving even more strategic spend decisions that deliver something many other software solutions can’t: measurable return on investment.”

w w w.suppl yc ha i ndi gi ta l. com

183

02

CIRQUE DU SOLEIL: BREAKING THE SILOS WITH DIGITAL TRANSFORMATION WRIT TEN BY

SOPHIE CHAPM AN PRODUCED BY

ARRON R A MPLING

185

w w w.suppl yc ha i ndi gi ta l. com

CIRQUE DU SOLEIL

With her team of costumers and operational buyers, Fulya Oguz reveals to Business Chief how Cirque du Soleil manages unique procurement on its digital transformation journey

W

hat we do is very unique,” reveals Fulya Oguz Operational Procurement Manager, Supply Chain at Cirque

du Soleil. “On a day-to-day basis I might be talking with an operational buyer about a lift 186

that will pull up a 25-ton tent in one corner of the world, and then move on to discussing the lingerie required for our Zumanity show.”

The Canadian entertainment company was established in Montreal, Quebec, in 1984.

In the past 35 years the business has expanded on a global-scale, having offered shows to more than - 200mn viewers globally across 450 cities.

Due to the colorful nature of the performances, the procurement team is often required to source non-conventional products in order to achieve the high-quality productions promised in its reputation.

“Our goal is to invoke imagination, provoke fantasies, and evoke emotions. In order to enable that APRIL 2019

187

w w w.suppl yc ha i ndi gi ta l. com

CIRQUE DU SOLEIL

“ Operationally we have to be efficient and operationally we have to be on time” — Fulya Oguz, Operational Procurement Manager, Supply Chain at Cirque du Soleil

188

APRIL 2019

CLICK TO WATCH : ‘BEAUTIFUL, INTRICATE COSTUME DESIGNS AND MATERIALS OF CIRQUE DU SOLEIL’ 189 we buy extremely specialized and

is to ensure all internal business units

unique, custom-made products,” says

are supported with solid contracts,

Fulya.

efficient procurement processes, and

Fulya manages the operational pro-

good risk management. For Cirque du

curement team within the company’s

Soleil, efficiency is important in ensuring

supply chain operations, which focuses

all the customer-facing aspects of the

on strategic sourcing, travel manage-

company function perfectly. “Operation-

ment, customs and logistics. “My team

ally we have to be efficient and we have

consists of project managers and oper-

to be on time,” Fulya explains. The live

ational buyers that specialize in different

shows require reliable equipment and

commodities. Essentially, my team sup-

bold sets and costumes, and without

ports all the Cirque units, including

efficiency from the procurement team

studios, buildings, IT, touring shows,

these may not be readily available.

production and of course costumes

Innovation is a key driving force behind

workshops,” she states. Her mandate

functions. With growth influencing operw w w.suppl yc ha i ndi gi ta l. com

CIRQUE DU SOLEIL

190

ations, the team is introducing new

do we have to do it even more efficient-

technologies to manage procurement

ly and effectively,” explains Fulya. With

and ensure vital efficiency. “As our

growing demand, the team is focusing

President Daniel Lamarre has said ‘At

on introducing new, creative solutions:

Cirque du Soleil we don’t talk about

“It’s a creativity-driven business. We try

diversity, we live it every day with diff-

to acquire the best and brightest talent

erent nationalities influencing our

in the field of procurement, while capit-

growth.’ I think it is very important as

alizing on the highest technological

we’re a worldwide company and our

advancement and tools available.”

global presence has increased con-

In order to introduce new technolo-

siderably over the years. And, of

gies, Cirque du Soleil began by ques-

course, this growth influences and

tioning how it conducted business. By

impacts all of its business units and

addressing what could be eliminated

their operations. So, everything we

from everyday operations, it could then

APRIL 2019

191

E XE CU T I VE PRO FI LE

Fulya Oguz Fulya Oguz joined Cirque du Soleil Entertainment Group in May 2011 as the Operational and Costume Procurement Manager.

Fulya leverages her more than 20 years of industry knowledge and experience to lead the charge on countless projects across the world. As a leader within the rapidly growing company, she manages critical relationships throughout all internal divisions of the business, in support of operational procurement. Fulya helps support many of Cirque’s largest shows, handling pivotal enterprise processes for negotiation, budgeting, purchasing, inventory logistics, operation management and vendor intelligence. Having worked within the IT, retail and online spaces like Oracle, Ice.com and Diamond.com, she brings a unique and vital business and technological perspective to Cirque’s continued growth.

w w w.suppl yc ha i ndi gi ta l. com

Integrated Print At PDI, we are passionate about printing and we take your total satisfaction to heart. We demand nothing but the best from ourselves and our partners. With a multitude of services under one roof, PDI is committed to delivering quality products, on time and within budget.

GRAPHIC ADAPTATION SERVICES ELECTRONIC PREPRESS PRINT PRODUCTION SIGN AND DISPLAY MAILING, FULFILLMENT AND DISTRIBUTION

VISIT OUR SITE

decide where to start investing. “To

also found that the solutions enabled

support our supply chain transformation,

statistic tracking, analysis and trace-

we invested in an e-sourcing cloud

ability, while connecting different

platform, shortly followed by an e-pro-

departments. “We can invite different

curement cloud platform. The e-sourc-

partners within the same tool – it breaks

ing platform was introduced with the

the silos. Everyone can participate,”

intention of streamlining our communi-

Fulya continues.

cations. As a buyer, we receive requests

Innovation is not the only priority for

in all forms – from emails to verbal.”

Fulya, with Cirque du Soleil also ensuring

Cirque du Soleil has been able to process

it sources its products in the most sust-

an increased volume without increasing

ainable ways. “As a citizen of the world

the team. The cloud has enabled time-

we have to value sustainable methods

efficient operations, allowing Cirque

and watch our footprint. We have to

du Soleil to communicate globally and

integrate these principles in our procur-

shorten its response time. The team

ement practices,” says Fulya. “Today

1984

Year founded

4,500

Approximate number of employees

193

w w w.suppl yc ha i ndi gi ta l. com

CIRQUE DU SOLEIL

194

“ As a citizen of the world we have to value sustainable methods and watch our footprint.We have to integrate these principles in our procurement practices” — Fulya Oguz, Operational Procurement Manager, Supply Chain at Cirque du Soleil

Photo © Cirque du Soleil – Suspended Pole act from the show CORTEOD APRIL 2019

195

Photo © Cirque du Soleil – Hoop Diving from LUZIA Photographer © Matt Beard

w w w.suppl yc ha i ndi gi ta l. com

CIRQUE DU SOLEIL

CLICK TO WATCH : ‘A BOOST OF ENERGY WITH...VOLTA | OFFICIAL 2018 CIRQUE DU SOLEIL SHOW TRAILER’ 196 we have performances all over the world and we have to showcase unique products, meaning the fabrics and props we use are not readily available or reachable.” In 2017, the company transported fabrics from France to Canada on the Avontuur sailboat. The successful journey emitted zero carbon as the engineless boat required no fuel.

This led to the firm committing to making at least five journeys through this method by 2020 in order to reduce its environmental damage when acquiring its specialized materials. When creating the LUZIA show, the firm used 6,000 litres APRIL 2019

of water per performance. In order to offset the huge quantities used, Cirque du Soleil would ensure that every liter would be recycled during the duration of a stay in a given city. “When we say sustainability and the environment are very important to Cirque, we really mean it,” Fulya adds.

Since joining the company eight years ago, Fulya has helped transform the operational procurement team. As she continues to break the silos and be a part in ensuring the company’s shows

Photo © Cirque du Soleil

are staged on time, the head of the operational department aims to ensure the solutions – allowing this to happen – are implemented across the world. “In regards to technology, we have already decided what we’re going to use and we’re working on it. The next step is making sure the cloud platforms are accessible all over the world,” states Fulya.

“That’s an extraordinary responsibility in a magical environment.”

w w w.suppl yc ha i ndi gi ta l. com

197

198

Words of Wisdom from Women at WERC

APRIL 2019

199

w w w.suppl yc ha i ndi gi ta l. com

WA R E H O U S I N G E D U C AT I O N A N D R E S E A R C H C O U N C I L

IN AN INDUSTRY THAT IS MADE UP ALMOST ENTIRELY OF MEN, ONE ORGANIZATION IS WORKING TO IMPROVE GENDER DIVERSITY AND BOOST THE BOTTOM LINE

T

he Warehousing Research and Education Council’s Women @ WERC program was designed to meet the unique needs

of women pursuing a career in the warehousing, 200

logistics and supply chain industries. Through networking, mentoring and educational opportunities, they aim to make it easier for women to build their careers while at the same time promoting the bottom-line benefits of increased gender diversity in the supply chain workforce.

“I would love to see more women at the leadership level throughout our industry; one way to do that is to make sure we attract more women to the field at the college level, as these young people are the ones with the potential to be our next leaders,” said Kristi Montgomery, Vice President of Innovation, Research and Development at the Kenco Group and one of the newest members of the WERC Board of Directors.

Montgomery is encouraged to see WERC’s increasing diversity on the Board and among APRIL 2019

1977

Year founded

1,700+

Approximate number of employees

w w w.suppl yc ha i ndi gi ta l. com

201

Nimble.

You need to learn fast, stay lean and be gutsy to remain competitive in this brave new world.

WERC has an unrivalled education program. We’ve got an in-depth online training, live webinars and self-guided learning choices to fit every schedule.

Our annual conference offers exceptional peer-driven learning opportunities.

You won’t find better education anywhere. werc.org

Better Everywhere.

CLICK TO WATCH : WERC’S ANNUAL CONFERENCE 2019

the membership as a whole, “but, I

more women in leadership roles

still think the industry has room to

markedly outperform those without.

grow and improve, and one of the

Still, most supply chain organizations

best ways women can do that is to

do not have gender diversity goals.

network with each other,” she said. “If

As the program has developed, both

you’re new to the industry, find a men-

female and male members of WERC

tor; if you’re like me and have been

have identified four priorities to help

around for a while, find those people

increase diversity and inclusivity within

that you can help to grow in their ca-

the logistics workforce. These include

reers and become industry leaders.”

offering resources and strategies for

Studies show that gender diver-

building allies within the industry, en-

sity in the supply chain boosts com-

hancing equality within the workplace,

petitiveness, productivity and finan-

advancing careers and growing leader-

cial returns, and that companies with

ship opportunities, and fostering organiw w w.suppl yc ha i ndi gi ta l. com

203

WA R E H O U S I N G E D U C AT I O N A N D R E S E A R C H C O U N C I L

“ At the heart of the research is a conversation between warhousing professionals and the researchers. We want to answer questions that are relevant and provide real benefits to the industry” — Karl Manrodt, Professor of Logistic

204

zational cultures that support healthy

specifically tried to step out of my

and productive work-life blending.

comfort zone and always sit with new

When it comes to building professional relationships, Gwendolyn

people at every session and meal.”

Former WERC Board President

(Gwen) W. Rogers says being an ac-

(2010-2011) Catherine Cooper, Founder

tive member of WERC (for 25 years)

and CEO of World Connections, credits

was key. Rogers volunteered at the

her time on the Board as offering her

Conference registration desk for the

a chance to develop skills outside her

several years and she recommends

profession that she would not have

it as a fantastic way to meet a lot of

otherwise. “For example, public speak-

people in a very short period of time.

ing in front of 1,000 people—you don’t

“I tend to be a reserved person,” she adds, “so at every Conference I have APRIL 2019

often get to do that in a company, but you do at WERC,” she explains, add-

warehouse and it’s all men, and they use bad language. And, if you walk into a warehouse in heels and a mini skirt, don’t be surprised when you get cat called,’” she says, noting that her advice is rooted in her own experience.

At her first job in the field, she had two revelations within her first week: “There truly were practically no women in the field at that time. I’d heard people say 98% men in the industry, but it was closer to 99.8% men,” she chuckles. “And, I realized very quickly that, as a woman, I had to know twice as much to gain respect and credibility in the industry.”

“I strongly encourage women who are new to the industry to tap into the ing she also mastered financial state-

women who have been here a while.

ments while working with WERC.

We’re all here to help each other, and we

Many of WERC’s veteran women said relationships and mentoring

want to,” she said. “WERC is a perfect resource for making those contacts.”

is key, and several opportunities to provide mentorship to young women have come to former WERC Board President (2004-2005) Susan Rider, President of Rider & Associates, through her WERC connections.

“The first thing I would tell them is, ‘you have to develop a thick skin. You can’t get insulted when you’re at a w w w.suppl yc ha i ndi gi ta l. com

205

Well-Sourced You want to base your business decisions on objective research and rock-solid information.

WERC publishes original reports and authoritative guides written by warehousing and logistics experts. Our publications are current, comprehensive and industry-specific.

You won’t find better information anywhere. werc.org

Better Everywhere.