Supply Chain Digital – April 2020

Building the best innovative startup ecosystem

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AND THE

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EDUCATION Y L P P U S G N I T DISRUP S L O O H C S N I CHA

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We see the missing container that will shut down production.

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FOREWORD

W

elcome to the April edition

Elsewhere, we examine what the

of Supply Chain Digital!

future for automation in logistics

In our cover feature this month, we look at the biggest consulting companies worldwide and observe how digital transformation is shaping the future of procurement.

T:297 mm

Also inside the magazine, we speak with Sebatian Chua, Head of Procurement at Health Promotion Board, to discuss the changing landscape of procurement and the supply chain space. In order to drive change, Chua believes there is no one way to innovate. “There is no golden rule for innovation, we just have to try, learn, change and try again,” he says. “To innovate, we also have to accept that all things are difficult before they become easy.

holds. In a special report, we look at McKinsey’s “Automation in logistics: Big opportunity, bigger uncertainty” report, and explore some of the key ways automation is transforming the industry.

03

There are also in-depth interviews with Henkel, MasterCard, IMI Critical Engineering and Volvo Cars that you won’t want to miss!

Lastly, don’t miss our global Top 10 Supply Chain Schools.

Would you like to be featured in the next edition of Supply Chain Digital? Get in touch at sean.galea-pace@bizclikmedia.com

Innovation does not necessarily

Enjoy the issue!

mean we have to achieve big things.

Sean Galea-Pace

It can start with this simple principle: think big, start small and act fast.” www.supplychaindigital.com

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THE JOURNEY TO DIGITALISATION IN SUPPLY CHAIN

10

CONSULTING COMPANIES DRIVING PROCUREMENT TRANSFORMATION

38

58

Navigating supply chains with AI and data analytics

74

McKinsey: what is the future of automation?

86 ERP SYSTEMS

THE FUTURE OF SUPPLY CHAIN EFFICIENCY

98 Supply chain schools

116 Events & Associations

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120 MasterCard

138 IMI Critical Engineering

154 Volvo Cars

10

THE JOURNEY TO DIGITALISATION IN SUPPLY CHAIN WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

MANUEL NAVARRO

APRIL 2020

11

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HENKEL

Dirk Holbach, Corporate Senior Vice President and CSCO of Laundry and Home Care, Managing Director of Henkel, discusses the effect technology has had on the supply chain

T

he Fourth Industrial Revolution is here.

Technology is an enabler and it is having an increasingly prominent effect on how

manufacturing companies and their supply chains operate. Henkel is a leading solutions provider in 12

three core areas: Adhesive Technologies, Beauty Care, and Laundry and Home Care. Over the past few years, the firm has experienced rapid transformation and has its finger on the pulse of the latest technological innovations.

Overseeing the company’s worldwide supply chain for Laundry and Home Care is Dirk Holbach, Corporate Senior Vice President Global Supply Chain. Holbach has worked for Henkel in a variety of roles for almost his entire working life.

Having joined the company as Junior Manager of Corporate Purchasing in 1996, he became responsible for purchasing at Laundry and Home Care in 2004 before transitioning into several different roles prior to moving into his current position in July 2015. As part of Holbach’s current role, he is responsible for the end-to-end supply chain APRIL 2020

13

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Empowering Industrial Workers With Modern Digital Tools Improve productivity, quality and safety with the Parsable Connected Worker Platform.

Transform static, paper-based standard operating procedures into mobile, interactive work instructions.

Enable workers to leverage multimedia formats and collaborate in real time.

With Parsable, companies gain unprecedented insight into human work by capturing essential data to improve their operations at scale. www.parsable.com

Increasing Productivity, Quality and Safety at Henkel – at Scale A key partner to Henkel’s digital transformation is Parsable, the leading Connected Worker Platform for enterprise industrial companies.

Parsable is a software platform that helps the world’s largest industrial and manufacturing companies arm their frontline workers with the necessary tools to thrive in today’s digital-first world. In addition to Henkel, its customers are top global companies in the manufacturing and energy industries, including consumer packaged goods, resources and chemicals, packaging and building materials, and automotive and aerospace.

Parsable is one of Henkel’s partners to help digitise Henkel’s operations. The Parsable Connected Worker Platform transforms static, paper-based standard operating procedures into dynamic work instructions, including multimedia voice, text, video and photos, as well as real-time team collaboration. Given that 72% of tasks at a factory are still performed by humans, according to a recent study by research firm A.T. Kearney, Parsable provides companies with new data and insight into human work so they can improve productivity, quality and safety – at scale.

“They’re primarily focused on supporting companies through digitalisation on the shopfloor. Although a relatively new partner, we’re currently evaluating various opportunities to build on their preconfigured platform,” said Dirk Holbach, Corporate Senior Vice President Global Supply Chain Laundry & Home Care, Henkel.

Parsable underwent an intense deployment at Henkel during 2019. “We’ve been pioneering this new market, called connected work, which provides modern digital tools to industrial workers,” says Lawrence Whittle, CEO of Parsable. “The consumer packaged goods market is an increasingly active area for us and it ultimately led us to Henkel, who is clearly one of the biggest players in this space on the global stage.”

In order to establish a mutually beneficial and longlasting partnership, Whittle believes transparency is

Overview of Connected Work and the Parsable Platform

essential in order to achieve success with some of the world’s biggest companies. “You have to be able to align with each other; otherwise, technology companies can’t survive,” he says. “We’ve invested a ton to ensure that we’re not only delivering an easy-to-use, softwarebased platform to help frontline industrial workers do their jobs better and more efficiently, but also that we support and even drive the key business objectives of our customers.”

“Ultimately, our goal is to improve the overall operations at Henkel,” explains Whittle. “In order to achieve that, there is a clear objective around productivity, safety and quality. At the moment, there’s a demographic shift in the industry. It’s vital that you capture the knowledge of employees that are at retiring age and leaving the company, and transferring that knowledge to the new generation. While there’s a real necessity to drive efficiency, quality and safety, there is also a requirement to understand a new way of working and recognise a new type of worker that really needs these modern, digital tools.”

The Parsable Connected Worker Platform currently has users in more than 130 countries, and is available in 14 languages.

LEARN MORE

HENKEL

for Laundry and Home Care, and in 2018 the business unit accounted for

“ Introducing digital for digital’s sake doesn’t make any sense”

€6.4mn sales. Within Holbach’s business unit, Henkel has six regional hubs, as well as 33 factories and 47 warehouses under his remit. Despite being founded in 1876, the DAX company is still majority owned by the Henkel family, and Holbach believes this really sets his

— Dirk Holbach, Corporate Senior Vice President, CSCO of Laundry and Home Care, Managing Director, Henkel 16

organisation apart from its competitors.

“It provides us with a different strategy: the Henkel family has shown its continued commitment to the company, enabling us to operate with a long-term perspective. We have a strong company

APRIL 2020

Henkel: Operating a long-term approach in manufacturing CLICK TO WATCH

|

1:28

17 culture, and our shared values help us to create sustainable value for future generations,” he explains. “Our portfolio is diversified because we have two consumer goods businesses and one that’s focused on industrial markets. It’s certainly a unique mix.”

Holbach understands that the journey to achieving digitalisation is a continuous one and not something that can be accomplished overnight. “In 2013, we began to invest in our digital backbone, which led to us connecting all our factories together through a standardised approach,” explains w w w.suppl yc ha i ndi gi ta l. com

Changing the way you think about data LEARN MORE

More and more companies collect huge amounts of data and want to turn them into money. But where are the obstacles to achieving that?

When it comes to data monetization, most companies only scratch the surface. This is because the use of data can only be imposed to a limited extent. Instead, companies need to get as many people as possible excited about using data. Analytical competence is often confined to the IT or BI department, employees are not trained in working with data or do not have the right tools to use data easily and sensibly in their daily work. The fact is, the more employees and managers are used to working with data, making decisions based on facts and playfully drawing new insights from data analysis, the more likely it is that companies will develop ideas on how to make money with data - be it in the form of services or even entirely new business models.

In other words, it is necessary to build a data-driven corporate culture. But what does the path to this end look like?

A culture of analysis begins with empowerment.

Employees must be empowered to explore data themselves and answer their own questions. This also includes a certain degree of trust managers must have in their teams when dealing with data. Modern BI tools also help to curate and purposefully manage data.

This way, everyone gets access to the data they need without jeopardizing sensitive data and governance regulations.

What role do technologies like AI play here?

If companies want more employees to work with data, they need to make access as easy as possible. Technologies such as Natural Language Processing (NLP) and AI can help.

NLP - the ability of computers to understand human language - lowers the entry barrier for professional analytics. With our Ask Data feature, users can formulate questions about

Henrik Jorgensen Country Manager DACH at Tableau Software.

their data in natural language. When people can interact with a data visualization like a personal assistant, it allows more people across all disciplines to ask deeper questions about their data, thus increasing the overall acceptance of data analysis. With the use of AI-based data analysis, we are now going one step further and making statistical knowledge more accessible. For example, the new Explain Data feature can be used to explain statistical outliers. This allows users without specialist knowledge to quickly expose the 'why' behind their data by simply clicking on the data point in a visualization. Explain Data evaluates hundreds of patterns and explanations within seconds, taking all available data into account.

Innovations such as these foster a culture of curiosity and strongly promote a data-driven corporate culture.

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HENKEL

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Holbach. “I’m always looking at the

consumer goods (FMCG) business, we

business benefit for implementing

primarily think in relatively short cycles,”

technology because introducing digital

explains Holbach. “If the end user has

for digital’s sake doesn’t make any

no benefit from a specific technology

sense. It’s important that new technol-

then they’ll stop using it. You can’t intro-

ogy helps solve business challenges,

duce new technology for the sake of it

such as ensuring that processes

— there’s no point. We’re still adopting a

become faster, cheaper and more

vertical approach and are continuously

agile.” Implementing technology that

trialling new technology in several

serves a purpose is a key pillar to

different pilot locations.” However,

Holbach, and he believes that harness-

Holbach understands the challenge of

ing new processes and systems that

change management and the process

aren’t sustainable has no long-term

involved for a successful culture shift.

value to Henkel. “As a fast-moving

“There’s a whole transformation of the

APRIL 2020

21

E XE CU T I VE PRO FI LE

Dirk Holbach With more than 20 years of experience in Supply Chain, Operations, Purchasing and Sales, Holbach has held various roles on a local, regional and global level at Henkel.

His special focus has been on supply chain strategy and organization development, network optimisation, continuous improvement and post-merger integrations.

Holbach holds a Master’s degree in Business and Mechanical Engineering and a PhD in Information Science. w w w.suppl yc ha i ndi gi ta l. com

HANDLING YOUR SUCCESS CLEVERTECH, founded 1987, is a leader in the automation sector, able to design and manufacture customized systems for Front and End of Lines Automation.

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Henkel: Connecting factories together through a standardised approach CLICK TO WATCH

|

1:40

23

business to consider and it’s vital that

last ten years. “It’s become part of our

you give employees the time to under-

DNA and is anchored into our mind-

stand and embrace new technologies

set,” explains Holbach. “Our products

and provide targeted support and

are used millions of times every day

trainings,” he affirms.

around the world, and we recognise

Henkel has five core values that it

the potential impact we can have by

centres operations around: customers

developing sustainable innovations.

and consumers, financial perfor-

We’re designing more and more of

mance, sustainability, people, and the

our packaging to ensure it’s 100%

foundation as a family business. As a

recyclable, reusable or compostable

result of the company’s sustainability

as well as using recycled materials to

drive, Henkel has reduced its specific

produce it.” The company was one

energy consumption by more than

of the first organisations to publish

50% in its Laundry division over the

a formal sustainability report more w w w.suppl yc ha i ndi gi ta l. com

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says. “This means that you then have less resource consumption to produce

“ We’re designing our packaging to ensure its 100% recyclable as well as only using recyclable materials to produce it”

it, ship it, and it subsequently allows the consumer in the final phase to use our products in a more sustainable way.”

Another one of Henkel’s core values is people. The importance of having a team in place that is aligned to a common objective is at the heart of the company’s drive. Henkel places considerable value on its recruitment drive,

— Dirk Holbach, Corporate Senior Vice President, CSCO of Laundry and Home Care, Managing Director, Henkel

as well as ensuring it retains the talent it already has. “People are key. As part of our digital journey, I’ve built up a small, centralised regional team that

than 28 years ago and has a clear forward-going ambition: to triple the value it creates through business activities relating to its environmental footprint by 2030 – compared to the base year 2010. With a more sustainable approach at the forefront of Holbach’s strategy, he maintains that his company is continuously seeking to reduce the amount of packaging in its products. “Compaction is a major trend in our industry at the moment.

By taking certain chemicals out of a product, it makes it more compact,” he w w w.suppl yc ha i ndi gi ta l. com

25

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Henkel, has achieved substantial savings in energy consumption, waste reduction and improved Overall Equipment Effectiveness (OEE) through the adoption of technology from our Operations and Optimisation Management and Monitoring and Control portfolio.

AVEVA delivers software solutions to about 80 sites globally at Henkel successfully today.

Read about Henkel’s sustainability success here or contact us eursa@aveva.com to learn more. aveva.com linkedin.com/company/aveva @avevagroup

27

works on a range of pilot use cases as

learnings that will enable training on

well as the implementation across all

the capabilities that are relevant today

our sites,” says Holbach. “Our recruit-

and in the future.”

ment strategy is to ensure we have a

Following the influx of technology

solid mix between data scientists and

such as data analytics, artificial intel-

traditional engineers with an under-

ligence (AI) and machine learning

standing of our businesses. We must

(ML), Holbach believes in operating

ensure that all of Henkel’s employees

proactively rather than reactively in

have the opportunity to upskill them-

a bid to differentiate from its peers.

selves, by having access to digital

“Technology has helped to redefine w w w.suppl yc ha i ndi gi ta l. com

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Henkel: Developing trust essential to success CLICK TO WATCH

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1:03

29 the business frame that we operate

systematically started to collect an

in,” he says. “We’re only now starting

increasing level of real-time data.

to embrace AI and ML but it’s an area

A member of Holbach’s team,

we’re looking to do more in. We’re still

Sergey Afanasyev, International Digital

in the testing stage with a lot of new

Transformation Manager at Henkel, is

technology and it’s important that

focusing on two key pillars: connected

we’re continuously looking for new

workers and digital upskilling. “I like

opportunities that will accelerate our

to encourage digital collaboration

current processes. We have to always

between the people using mobile

see how far we can push the bar.” With

technologies as well as helping build

technology’s influence on the manu-

and develop the skills that employees

facturing sector showing no signs of

need today because of the digital

slowing, the plethora of data at com-

technologies already in place,” explains

panies’ fingertips should be embraced.

Afanasyev. He believes that new

Over the past few years, Henkel has

technologies such as AI, ML and Big w w w.suppl yc ha i ndi gi ta l. com

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H E N KE L PART N ER Q U O T ES Clevertech: “We’ve worked with Clevertech for many years. It’s a well-established business in packaging our goods and making them ready for shipment. It has a real drive to add digital capabilities into its products and is an important partner to us.”

Micro-Biolytics: “The partnership focuses on chemistry analytics.

We’ve been working together for a number of years and we are continuously trying out new ideas and concepts.”

Aveva Solutions: “The company is part of Schneider Electric and the home of Wonderware. It’s a special and long-term partner. Wonderware is the platform we use to connect all of our IOT together and the partnership is crucial to us.”

Parsable: “It’s primarily focused on supporting companies through digitalisation. Although a relatively new partner, we’re currently evaluating various opportunities to build on their preconfigured platform.”

Tableau Software UK: “Tableau is now owned by Salesforce and is an important piece of our digital infrastructure. It’s our visualisation and analytics tool and enables us to review all our data in supply chain and manufacturing.”

O9 Solutions: “It’s a very fast growing company and we’re checking how it can support us in our end to end planning process.”

Zaptic: “It’s a newer player on the market with a no code platform to connect the shop f loor workforce with digital instructions and daily management workf lows. We’re now testing Zaptic’s solutions in

TEMBO: “TEMBO is more of a traditional technology supplier and we’re collaborating in the complexion of our product.

It helps supply machinery for unit dose and is based in the Netherlands so we can work very closely together to

our operations.”

expand our capabilities.”

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Together creating the next

Data should be embraced to achieve a competitive advantage. “These tech-

“ I like to encourage digital collaboration between the workers and paperless operations”

nologies allow us to unlock values and data that we acquire through our digital backbone technology that ultimately brings us a competitive advantage,” says Afanasyev. “Technology itself is agnostic. It’s important to us that we only leverage technology that is true to our vision and strategy.”

Henkel has developed key, strategic

— Sergej Afanasyev, International Digital Transformation Manager, Henkel

partnerships with a range of firms including Clevertech, Micro-Biolytics, Aveva Solutions, Zaptic, Parsable, Tableau Software UK, o9 Solutions

Henkel: Zaptic and Tembo CLICK TO WATCH

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1:58

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HENKEL

34

1876

Year founded

€20bn+ Revenue in euros

53,000 Number of employees

APRIL 2020

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HENKEL

and TEMBO. Holbach has a clear idea of what he looks for when seeking to establish a mutually beneficial collaboration. “There must be long-term and sustainable benefits on both sides of the partnership for it to be successful,” he explains. “It’s important that there is a level of openness that develops trust over time. This is especially true when times are volatile, and it is where you see the true value in dedicated partners.”

With the manufacturing space set to continue to transform as the digital age continues to take shape, it’s vital 36

that companies adopt an agile and lean approach to ensure they don’t get left behind in a competitive and dynamic

“ It’s important that there is a level of openness that develops trust over time” — Dirk Holbach, Corporate Senior Vice President, CSCO of Laundry and Home Care, Managing Director, Henkel

APRIL 2020

37

market. Holbach is confident of what he anticipates the supply chain space to look like over the next few years. “It’s clear that we’re only at the beginning because I believe that data relevance is only going to increase further,” he says. “There will be greater visibility and transparency in the supply chain over the next few years and we must be ready.”

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LEADERSHIP

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CONSULTING COMPANIES DRIVING PROCUREMENT TRANSFORMATION The Big Question: Digital transformation is changing the face of procurement but which consulting firm would you choose to advise you on your next steps?

WRITTEN BY

GLEN WHITE

APRIL 2020

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LEADERSHIP

P

rocurement consulting is big business and it certainly isn’t cheap but it can be invaluable when it comes to making decisions in

numerous areas of procurement, supply chain &

logistics - direct & indirect procurement, sourcing strategies, sustainability, technology platforms, risk management, contract management - they are all core parts of the procurement strategy and it’s a procurement leader’s job to figure them all out.

Procurement’s role in the enterprise has evolved.

Today, CPO’s & procurement leaders are expected 40

to work strategically as part of the c-suite to form a strategy to mitigate risk, create competitive advantage and help drive enterprise growth.

When it comes to choosing a procurement consultancy firm to help for this strategy, you need to look for a company that can help to build and manage high-performance procurement departments, develop and then deploy clear strategy and vision to become more effective and efficient as an organisation.

Now, we take a look at some of the leading procurement consulting companies vying for your consulting dollars.

In no particular order, here’s some of the global players you could easily call upon:

APRIL 2020

FACTS

Six key aspects in procurement strategy: 1. Digital Transformation 2. Cloud & Cyber 3. Data & Data Analytics 4. AI 5. Sustainability 6. Culture Shift

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LEADERSHIP

BAIN & COMPANY

SERVICES

Bain & Company helps companies

• Strategic Procurement Planning

develop sourcing strategies for a sus-

• Buy Better + Spend Better

tainable future.

• Closed Loop Savings Capture

Bain & Company works closely with procurement teams to identify

• Capability Building • Digital Foundation and Enablers

and realise savings across all spend categories and procurement levers

CLIENT RESULTS

and they can help organisations build

• 1000+ procurement projects across

capabilities to make long term savings and procurement gains.

42 KEY PEOPLE

Caperton Flood —New York David Schannon — Silicon Valley Chuck Miller — Boston Borja Tramazaygues ­­­— Madrid Gerry Mattios — Singapore Tessa Bysong — Chicago Kelly Liu — Beijing Phil Barton — Sydney

APRIL 2020

a broad range of industries • Digital Foundation and Enablers

Bain Procurement CLICK TO WATCH

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3:25

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LEADERSHIP

ACCENTURE Accenture is a global powerhouse

• Procurement strategy

consulting company that helps organi-

• Procurement value targeting

sations with cost-reduction and growth

• Procurement operating model

opportunities associated with all

blueprint

forms of sourcing and procurement.

• Supply base management

Accenture’s goal is to transform sourc-

• Risk strategy

ing and procurement from a business

• Strategic planning & sourcing for core

service to a ‘High Performance Driver’ in the business strategy.

Accenture’s procurement consulting practise focuses on the following areas: 44 KEY PEOPLE

Kai Nowosel ­— Accenture’s CPO Watch his exclusive video: Ken White — Chicago Sean Mckeogh ­­­— NCR, Philippines Daan Koetsier — Brisbane

APRIL 2020

categories • Demand management / zero-based budgeting (ZBB)

Digital Procurement Is Now CLICK TO WATCH

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1:28

45

Today, CPOs and procurement leaders are expected to work strategically as part of the c-suite to form a strategy to mitigate risk, create competitive advantage and help drive enterprise growth

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LEADERSHIP

DELOITTE Deloitte’s procurement consulting prac-

low cost countries for cost-saving

tice helps organisations reduce their cost

opportunities

base and increase efficiencies by imple-

• Coordination of global logistics & distri-

menting fit-for-purpose solutions that are

bution networks

practical, affordable and results-driven.

Deloitte’s Sourcing and Procurement

• Planning & forecasting data • Quantifying Risk

Strategy services include: • Direct & Indirect Materials Sourcing

TECHNOLOGY CHALLENGES:

• Technology Enabled Transformation

• Multiple ERP Systems across

• M & A Related Services • Extended Business Relationship 46

organisations • Poor Data visibility

Management

• Poor Data quality

• Managed Services

• Limited ability to quantify data

• Talent Development Deloitte helps companies overcome the challenges of effectiveness and efficiency by looking at three key aspects:

PEOPLE CHALLENGES: • High turnover rates • Limited supply of skilled labour and service providers • Attracting people to remote locations globally

PROCESS CHALLENGES: • Limited procurement negotiating power • Balancing legislation with sourcing from

APRIL 2020

KEY PEOPLE

Michael Dahler— New York Merril Skyring ­­­— Sydney Zak von Gordon — Johannesburg

Sourcing and Procurement: Maximize efficiency to deliver optimal performance CLICK TO WATCH

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LEADERSHIP

EY EY’s procurement practice has the

• IT & technology sourcing

vision to be recognised as a ‘global

• Professional services, procurement

leader’ in procurement, sourcing

and contract management

and supply chain consulting and to

• Talent management

be regarded as the trusted business

• Facilities & services

advisor in all levels of the organisation.

• Brand, marketing & communications

Their goal to do this is as follows: • Manage connected stakeholder relationships.

• Provide thought leadership, experience and innovation by collaborating with stakeholders and 48

suppliers.

• Challenging the normal, challenging the status quo.

• Offering transparency into the procurement process.

Providing services that can be repeated and leveraged.

EY’s procurement services provide strategic purchasing options for materials and services based on a high level of services and competitive cost, with specific skills in the following areas: • Real estate services • Workforce management • Travel, meeting & event services

APRIL 2020

KEY PEOPLE

Ahmit Mehta —Bangalore Glenn Coppinger — Sydney Amanda Spencer — London Stacy Musho — Texas

EY Supply Chain Smart Mapsâ„¢ CLICK TO WATCH

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3:05

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LEADERSHIP

GEP GEP is known to help Global Fortune

Other procurement & supply chain

500 & Fortune 2000 enterprises to

services include:

build and manage high-performance

• Procurement transformation

strategies with the goal of increased

• Opportunity assessment

efficiency, more effective opera-

• Strategic cost management

tions, greater strategic reach and

• M&A services

increased impact of the businesses

• Supply risk management

they work with.

GEP works with its client to map the future of procurement with a specific focus on ‘digital transformation’ as they look to embrace new and 50

emerging digital technologies.

GEP helps its client look at ways to dramatically reorganise the procure-

KEY PEOPLE

ment strategy, the procurement processes, the people, the required skill sets and all support systems.

Key goals in their record for continual digital innovation are: • Cloud Deployment • Mobile & Touch Technologies • Consumerized Applications Environment • User-specific workflows and interfaces • Unified Source-to-Pay Software Platform

APRIL 2020

Jamie Ogilvie-Smals Sébastien Lecas Saraswathy Kizhakkanchery Gareth Thomas ­­­

This 2020, discover how you can make procurement transformation a success CLICK TO WATCH

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3:45

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“GEP works with its client to map the future of procurement with a specific focus on ‘digital transformation”

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LEADERSHIP

BCG BCG (Boston Consulting Group) has

• Digital procurement transformation

a pedigree in all areas of consulting,

• Supercharge savings with close

not just procurement but in the area of purchasing. Their goal is to deliver procurement solutions that don’t sacrifice quality and service.

The BCS procurement strategy is that it’s not just about cutting costs, a core procurement strategy requires a deeper look at internal needs and

supplier relationships • Procurement & supply chain data data analytics • Empowering the people in digital procurement transformation • Focus on quality - mitigate supplier risk management • Online collaboration platforms

supply market capabilities as well as better collaboration with suppliers 52

and internal functions.

BCG helps businesses understand how to manage fluctuating prices, volatile markets, changing technolo-

KEY PEOPLE

gies and globalisation through

Daniel Weise — Dusseldorf

sustainable and efficient procure-

Wolfgang Schnellbacher Stuttgart

ment solutions that don’t sacrifice quality or service.

Inside BCG, they have their own separate consulting business called Inverto, which is an international supply chain & procurement consulting company that specialises in industry, trade and the service sector.

BCG’s latest thinking on procurement transformation:

APRIL 2020

Rafael Desi — Paris Robert Tevelson — Philadelphia ­­­

BCG’s Robert Tevelson on Procurement CLICK TO WATCH

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3:13

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LEADERSHIP

MCKINSEY & COMPANY

30% quality improvement through life-

McKinsey & Company is a global man-

cycle management.

agement consultancy that is trusted by

20x ROI (Return on Investment) from

the world’s leading businesses, gov-

next-gen operating-model

ernments & institutions.

implementation.

Inside McKinsey, they have a signifi-

spective but it is delivered in a slightly

MCKINSEY & ORPHEUS MERGE TOGETHER FOR A DIGITAL PROCUREMENT DRIVE.

different way. McKinsey helps enter-

McKinsey and Orpheas have joined

prises unlock the full potential of their

together to launch ‘Spend Intelligence

portfolios through product and service

by McKinsey’, a service that will enable

design and transformation.

spend transparency, spend and cost

cant capacity of working inside companies from a procurement per-

54

analytics, and value-capital manage-

MCKINSEY’S ROADMAP TO CLIENT SUPPORT:

ment. This new offering combines

• Guide the creation of exciting product

ogy with McKinsey’s industry expertise

and service portfolios

Orpheus’s advanced platform technolin Digital Procurement.

• Increase profitability through product and service life-cycle optimisation • Improve agility and effectiveness through development • Optimise spend categories • Drive productivity and innovation with suppliers • Maximise procurement impact through agile digital operating model 20%+ improved margins from portfolio realignment.

APRIL 2020

KEY PEOPLE

Bjorn-Uwe Mercker — Munich Andre Rocha — Tokyo Roman Belotserkovskiy — Texas Riccardo Drentin — London­­­

Introducing: Spend Intelligence

by McKinsey CLICK TO WATCH

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3:14

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LEADERSHIP

EFFICIO Efficio has the strapline as the world’s

Efficio’s key differentiator is their

largest global procurement consultancy

proprietary procurement technology

so we take a look at who they really are

and knowledge platform called eFlow.

and what gives them the right to hang out

eFlow automates data insight genera-

with the other major players.

tion, supports saving delivery,

Efficio has 10 offices across Europe, North America and the Middle East and

facilitates strong supplier relationships and manages supply chain risk.

they support a range of clients including

56

blue-chip multinationals, private equity

KEY ASPECTS OF EFLOW

and SME’s for all around the globe. Efficio

• Cost-saving identification

aims to help its clients reduce costs,

• Higher savings delivery

improve internal processing and upskill

• Sustainable procurement savings

procurement teams so that they can real-

• Upskilling the procurement team

ise faster cost savings.

KEY PEOPLE

Jens Pedersen — London Alex Klein — London Tim von der Decken — Dusseldorf Patrick Traynor — Philadelphia­­

APRIL 2020

Efficio-strategic procurement and the leaders of tomorrow CLICK TO WATCH

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D I G I TA L I S AT I O N

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Navigating supply chains with AI and data analytics Award-winning procurement leader, Sebastian Chua, Head of Procurement at Health Promotion Board (HPB), discusses how to achieve success in procurement amidst significant transformation in the industry WRITTEN BY

APRIL 2020

SEAN GALEA-PACE

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D I G I TA L I S AT I O N

T

he procurement landscape is changing. Gone are the days of procurement being considered a back-office func-

tion in an old-fashioned, dimly lit room. Now, it’s front and centre and everyone’s talking about it.

Sebastian Chua is an experienced procurement professional. With over 20 years of experience within the Indirect Procurement and Project Sourcing domains, he has held several different roles in Asia Pacific over the past two decades. Currently the

60

Head of Procurement at Health Promotion Board, Chua featured in Supply Chain Digital’s Top 10 Procurement Executives Worldwide in January’s magazine, and here we speak with him in-depth to uncover his insights on how to succeed in the everevolving supply chain space.

TELL US A BIT ABOUT YOU AND YOUR CAREER TOWARDS FINDING YOURSELF WITH THE HEALTH PROMOTION BOARD I started my procurement career with Hewlett Packard/Agilent Technologies as the Country Manager for India, Singapore, Thailand and Philippines before I took on the portfolio as the Regional Procurement Manager. I then moved on to join Microsoft and APRIL 2020

61

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The Leading Enterprise Contract Management Platform in the Cloud Icertis, the leading enterprise contract management platform in the cloud, solves the hardest contract management problems on the easiest to use platform. With Icertis, companies accelerate their business by increasing contract velocity, protect against risk by ensuring regulatory and policy compliance, and optimize their commercial relationships by maximizing revenue and reducing costs. The AI-infused Icertis Contract Management (ICM) platform is used by companies like 3M, Airbus, Cognizant, Daimler, Microsoft and Roche to manage 5.7 million contracts in 40+ languages across 90+ countries.

LEARN MORE

www.icertis.com | manisha.khadge@icertis.com

D I G I TA L I S AT I O N

Alcatel Lucent as Head of Procurement

From 2017 to 2019, I was awarded

to transform their procurement organi-

the titles of APAC Procurement Leader,

sation in the Asia Pacific region. In 2014,

CIPS Asia Professional of the Year

I accepted a new challenge to transform

and Supply Chain Professional of the

public procurement at Health Promo-

Year by Supply Chain Asia. In 2019, I

tion Board (HPB), a statutory board

led my team to win three Asia Awards

under the Ministry of Health. I believe

under the ‘Most Improved Procure-

that procurement is a new platform for

ment Operation’, ‘Transformation’ and

change and innovation, and it enables

‘Best Public Procurement Project’

you to lead with intense passion. My

categories. I am the Chairman for

belief that “procurement is really awe-

the Procurement Council in Supply

some!” has helped drive the 180-degree

Chain Asia and an advisory member

change that I’m striving towards.

to the Association for International 63

“ Procurement leaders need to be bold and act as enablers, on top of being drivers. We must lead with the head, hands, heart and guts” — Sebastian Chua, Head of Procurement, Health Promotion Board w w w.suppl yc ha i ndi gi ta l. com

D I G I TA L I S AT I O N

also conduct lectures for the MBA

EXECUTIVES, CAN YOU TALK US THROUGH YOUR PROCUREMENT STRATEGIES?

students at the National University of

In both the public and private sectors,

Singapore, Nanyang Technological

we face tightening fiscal and man-

University, Singapore Management

power constraints, yet are expected to

University and Singapore University of

deliver our jobs faster, cheaper and even

Social Sciences.

better. To achieve this, we need to find

Procurement Technology and Standards (AIPTS). In addition, I

new ways of doing things, not relying

HAVING BEEN RECOGNISED WITH A NUMBER OF AWARDS OVER THE YEARS, INCLUDING BEING FEATURED IN THIS MAGAZINE’S TOP 10 PROCUREMENT 64

APRIL 2020

only on the tested solutions, including how we innovate in procurement. When faced with a challenge, we may not realise that the solution is already present,

but it is somehow not seen. We already have the keys to innovate, not the tools and technology, just a change in our attitudes. We really have to ask ourselves these two basic questions: Are we too busy to innovate? Is innovation really easier said than done?

There is no golden rule for innovation, we just have to try, learn, change and try again. To innovate, we also have to accept that all things are difficult before they become easy.

Innovation does not necessarily mean

“ There is no golden rule for innovation, we just have to try, learn, change and try again” — Sebastian Chua, Head of Procurement, Health Promotion Board 65

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D I G I TA L I S AT I O N

66

we have to achieve big things. It can

that that we can learn more and prove

start with this simple principle: think

what works and what does not

big, start small and act fast. Most

• Alignment – The solutions to our

importantly, we need to be clear of

problems today cut across the

the objectives to be achieved, plan in

domains of different stakeholders. We

advance and understand the trade-off.

need to draw connections between

The three As of innovation are: • Ambition – We must have a strong sense of ambition, believing in a better

different areas of work, and between the buyers and sellers.

We also need to find out what actu-

future for ourselves and wanting to

ally defines a procurement success.

build that future together.

To me, the theory of success refers to

• Action – We must move to act and not

the quality of our business conversa-

be paralysed by overthinking or the

tions. Often, a quality conversation

fear of failure. It is only through doing

would determine the quality of our

APRIL 2020

67

procurement decision or action. Every successful procurement partnership starts with a quality conversation. On the other hand, a disappointing conversation creates the wrong perception of procurement. Oftentimes, it is our response that drives people’s perception of us. It’s vital to be very sensitive in managing people’s perception of procurement as it can become a reality and kill our reputation.

Procurement needs to embed a service culture into our way of working, and this can begin from a proactive

“ Digitalisation alone cannot transform any business. We need both human skills and digitalisation to transform our jobs” — Sebastian Chua, Head of Procurement, Health Promotion Board

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D I G I TA L I S AT I O N

conversation with an end objective of a true partnership. To transform, we must proactively show that we CARE and are willing to get involved. CARE to us means: C – Collaboration – It can be improved by changing the way we interact with people. The change only happens when we make an impact to people’s needs.

A – Accountability – To be accountable, we need to understand the motivations and drivers of the people 68

around us, and these are critical when it comes to unlocking their powers in the organisation.

R – Relationships – To take our relationships from compliance and savings to be a critical business enabler, it needs to be built outside of work. We need to show that we are now doing things differently, rather than doing different things. To remain relevant, we should not manage the processes to meet functional objectives. It is more critical for us to manage relationships to meet business strategy.

E – Empathy – This is so important, but hardly mentioned. We don’t necessarily need to be able to help in reality, APRIL 2020

but our empathy matters to the business. Paying a little careful attention, attending a question with sincerity and exchanging some positive words are ways of showing our empathy. Relating with others is just as important as working with others.

I see procurement as a complete business role. Procurement leaders need to be bold and act as enablers, on top of being drivers. We must lead with the head, hands, heart and guts.

WITH DIGITAL TRANSFORMATION HAVING A MASSIVE EFFECT ON THE SUPPLY CHAIN INDUSTRY AND BEYOND, WHAT ARE THE KEY ATTRIBUTES NEEDED TO ADEQUATELY EMBRACE AND DRIVE DIGITAL TRANSFORMATION? The greatest danger now is not digital disruption – it’s to act with yesterday’s logic.

Digital transformation is reinventing the ways many businesses operate. Across several industries, the common denominator remains the same: startups that harness automation, AI, cloud platforms and other new technologies to deliver digital services are proving to be more efficient than less nimble incumbents. w w w.suppl yc ha i ndi gi ta l. com

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D I G I TA L I S AT I O N

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As such, the role of procurement has evolved and digital technology has reshaped the way we source. We should capitalise on digital technology to transform the business strategy, optimise business performance and discover the game-changing innovations. It offers us an opportunity to make procurement awesome. I see the importance of these four key attributes to adequately embrace and drive digital transformation.

1. Intellectual curiosity – To deliver faster insights for business decisions, analytical skills will be in APRIL 2020

function, procurement needs to have a thorough understanding of the company’s operations, value drivers and competitive environment.

4. Storytelling skills – Data is the mechanism that makes digital business possible, but the delivery mechanism is a story. Even the best digital technology might not be able to change the mind of the CEO unless the outcome can be expressed in the form of a story, business problem or solution.

If you have yet to embark on your digital journey, do not worry. Like most disruptive technologies, benefits do not necessarily go to the early adopters. Success goes to companies high demand. Procurement needs

who know how to absorb, adapt and

to know how to ask the right “why”

manage change. At the end of the day,

questions, detect patterns in data,

digitalisation alone cannot transform

find cause-and-effect relationships

any business. We need both human

and challenge the status quo.

skills and digitalisation to transform our

2. Technological savvy – Procure-

jobs. Digitalisation is not the target, but

ment professionals do not need

an enabler. We need to focus on how it

to become data scientists, but we

drives values and results.

need to be, at least, familiar with new technologies. With that, we can have intelligent conversations with IT personnel and quickly adopt new tools that do not require IT intervention.

3. Business acumen – As a business w w w.suppl yc ha i ndi gi ta l. com

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A U T O M AT I O N

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McKinsey: what is the future of automation?

What does the future hold for automation in logistics? Let’s find out APRIL 2020

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WRITTEN BY

SE AN GA LE A-PACE

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A U T O M AT I O N

A

n ever-growing number of logistics and parcel companies are turning to automation to meet the demand of

e-commerce. Supply Chain Digital explores

McKinsey’s report, “Automation in logistics: Big opportunity, bigger uncertainty” and looks at some of the key reasons why automation is transforming the industry.

Machine learning is becoming an essential new technology for many logis76

tics organisations as they seek greater efficiency and evaluate the quickest and most effective routes to market. Many key trends are pushing automation to the top of the logistics CEO’s agenda, according to McKinsey, based on three factors: a growing shortage of labour, increasing demand from online retailers and intriguing technical advances. McKinsey Global Institute believes that the transportation and warehouse industry possesses the third highest automation potential of any sector.

McKinsey found over 50 technologies that could further automate some part of the supply chain, such as advanced robotics in warehousing, analytics for transport and IoT/smart-sensor applications. Logistics APRIL 2020

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companies face one crucial question: which technology will produce the greatest return on investment?

Automation and robotics is one area of McKinsey’s three “game-changing supply chain technologies.”

According to this research, today’s automation systems are more flexible than ever before. Fast-picking systems can now handle 1,000 to 2,400 picks every hour, due to advanced vision technology that enables them to handle objects presented in arbitrary positions. w w w.suppl yc ha i ndi gi ta l. com

Automated warehouse: Inside Ocado’s Andover CFC3 CLICK TO WATCH

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2:05

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Technology empowers warehouses

reality (AR)-glasses, companies

to handle fast-changing multichannel

will enable full visibility over the

and omnichannel requirements and

entire operation and the coordina-

accelerate service levels to support

tion of people and robots together.

same-day and next-day delivery.

Warehouse-management systems

It is estimated that by 2030, most

will keep track of inventory in real-

operations could be automated

time and ensure it is linked up with

as AI takes over the more simple

the ordering system. McKinsey

and repetitive tasks that humans

believes there are 10 technologies

previously performed. McKinsey

that could change how a warehouse

anticipates fully automated high-rack

conducts operations.

warehouses that see autonomous

McKinsey’s 10 prominent tech-

vehicles patrolling the aisles. By

nologies that could transform

equipping managers with augmented

warehouse operations: w w w.suppl yc ha i ndi gi ta l. com

A U T O M AT I O N

MULTISHUTTLE SYSTEM This is often used with an automated storage and retrieval system (AS/RS) that transfers goods, usually on pallets, in three dimensions to store and retrieve items without human intervention.

ANALYTICS TOOL Algorithms that enable operators to analyse performance, identify trends and make pre80

dictions that inform operating decisions, as well as using machine learning to improve over time.

OPTICAL RECOGNITION This is a sensor that scans items to apply sortation and

• Fast-picking systems can now handle 1,000 to 2,400 picks every hour • Around four million Americans work in warehouses as supervisors, material handlers or packers • Out of every $100 in e-commerce sales, e-tailers’ in-house logistics units are collecting $12 to $20, a considerable increase from the $3 and $5 spent on logistics in a traditional brick-andmortar retail operation • By 2030, most operations could be automated as AI takes over mundane and repetitive tasks that humans were used to performing • If Amazon’s logistics unit was its own separate company, it would be considered the fifth largest 3PL firm worldwide

other logistics. This includes a conveyer’s laser-guided vehicles and camera-based movement of drones.

CONVEYOR CONNECTION A connection between two disparate conveyor systems that utilises decision logic to influence item flow.

APRIL 2020

“ Technology empowers warehouses to handle fast-changing multichannel and omnichannel requirements and accelerate service levels to support same-day and next-day delivery�

MANAGEMENT SYSTEM Analytic and digital systems that merge analytics, performance reporting and forecasting tools to allow managers to easily control a full system, such as a warehouse.

SMART STORAGE This allows advanced analytics and digital tools to place and retrieve items in the most efficient way, adjusting storage media based on the product, picking and order characteristics.

3D PRINTING This process creates parts by adding layers of a material (usually metal or w w w.suppl yc ha i ndi gi ta l. com

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A U T O M AT I O N

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In 2017, the US Bureau of Labour Statistics estimated that four million Americans work in warehouses as supervisors, material handlers or packers. In total, that number comprises around 3% of the total labour force and earns over US$100bn in annual wages.

E-commerce will redefine this statistic, and the entire logistics industry. McKinsey estimates that out of every $100 in e-commerce sales, e-tailers’ in-house logistics units are collecting $12 to $20, a considerable increase from the $3 and $5 spent on logistics in a traditional brick-and-mortar retail operation. McKinsey believes e-tailers are saving approximately $12 to $16 out of every $100 of sales in comparison to their brick and mortar counterparts.

APRIL 2020

Logistics automation technology has developed rapidly in a short period of time. In 2018, Ocado opened a fully robotic warehouse. Spanning 18 acres (784,080 sq.ft), 1,100 waist-high robots move along a grid system and collect groceries from beneath them to drop off at a packing station. The plant in Andover, England, processes around 65,000 orders per week.

BBC News said at the time: “From the moment a customer places an online order to the moment the product arrives at your door (via a driverless van) there will be no human interaction.�

83 plastic) to develop a shape. 3D print-

PICKING ROBOT

ing is also called additive

This is a system with robotic arms that

manufacturing.

replicates a human picking motion.

To achieve success in logistics, all

SWARM AGV ROBOTS

companies in the sector must meet

These are autonomous vehicles that

two critical areas: speed and variety. In

operate freely and on digital tracks

order to meet same-day delivery

to bring items to a picking station

requirements, more automation in pick-

based on instructions from the

ing, packing and sorting is necessary.

order-flow software.

Large e-commerce giants such as Amazon and JD.com have established

SMART GLASSES

their own logistics credentials over the

These are glasses that augment and

past few years. In 2019, Amazon intro-

assist reality of the users. Smart

duced one-day delivery and has

glasses help reduce the inefficiencies

accelerated its interest in the logistics

of searching.

space, as featured in Supply Chain w w w.suppl yc ha i ndi gi ta l. com

A U T O M AT I O N

84

McKinsey's 10 prominent technologies that could transform warehouse automation:

APRIL 2020

85

Digital’s article in November’s maga-

well as expanding other areas. This

zine. McKinsey believes that if

drive by the major organisations is to

Amazon’s logistics unit was its own sep-

create more warehouses in the last mile

arate company, it would be considered

and provide same-day delivery means

the fifth largest 3PL firm worldwide.

logistics companies have to remain lean

JD.com launched a logistics park pow-

and agile to keep up with the competi-

ered by 5G networks that it says will

tion, particularly due to the speed of

enhance site operations and drive its

deployment amidst a digital transforma-

IIOT strategy. Amazon and JD.com

tion industry-wide.

deploy their own in-house logistics first through several lucrative niches, like parcel delivery in dense urban areas, as w w w.suppl yc ha i ndi gi ta l. com

TECHNOLOGY

ERP SYSTEMS

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THE FUTURE OF SUPPLY CHAIN EFFICIENCY WRITTEN BY

APRIL 2020

GEORGIA WIL SON

87

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TECHNOLOGY

ERP experts from Epicor, Infor and Sage discuss the adoption of ERP systems within the supply chain industry in order to drive efficient operations

O

ver the last few years, “ERP has evolved hugely,” comments Phil Lewis, Vice President, Solution Consulting EMEA at Infor,

“previously it was seen as a static system of record, it has now become the basis of digital transformation

88

- a backbone for increased agility and responsiveness. These are vital concerns in the supply chain industry, which is facing an almost perfect storm of increased regulation, huge customer demands and intense competition.” Both Robert Sinfield, Vice President Product Sage Business Cloud X3 at Sage, and Mark Hughes, regional vice president, UK and Ireland at Epicor Software, agree with Lewis. “Ultimately, supply chains can benefit from ERP technologies because it allows for consolidation of data and business applications, giving IT the capability to deliver their services in building block form. ERP allows management of purchasing, inventory, sales and finance, resulting in better productivity, efficiency and a great customer experience,” says Sinfield. “This is the only way supply chains can face the current industry challenges, is with an efficient APRIL 2020

89

ERP system and an efficient electronic exchange of data throughout that provides visibility and instant updating,� adds Hughes. “What are the benefits of ERP for the supply chain? This is a question that could lead to an essay of an answer.

Modern ERP is all about driving a business forward, be it faster and leaner processes, lower costs, better customer service or even developing new business and revenue streams. It sounds like a bit of a cop out, but it really does depend on the business that is implew w w.suppl yc ha i ndi gi ta l. com

Trusted Digital Advisor We help insurers connect the dots across the globe and region – becoming customer-led, operationally smart Connected Enterprises

Anticipate tomorrow.

Deliver today. kpmg.com/cn

Š 2019 KPMG Advisory (Hong Kong) Limited, a Hong Kong limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. Printed in Hong Kong.

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“ A lot of the innovations happening at the moment are centered around the user experience.

The fundamentals won’t change but the way organisations use and interact with these tools is changing dramatically” — Mark Hughes, Regional Vice President, UK and Ireland, Epicor Software

menting the technology - which means that the very first step must always be a thorough evaluation of the desired benefits and the creation of a strong business case,” says Lewis. “Introducing an ERP system to your business can improve efficiency considerably. Some of the benefits for businesses include enabling better departmental collaboration and gaining a single overview of the business that helps with insights for improvements.” adds Sinfield.

“If you went back 10 years, the trends were ‘just-in-time’ and ‘minimising your w w w.suppl yc ha i ndi gi ta l. com

TECHNOLOGY

inventory’, it was all about reducing your

comments Hughes. Agreeing with

costs. Today, key trends have shifted,

Hughes, Lewis adds that “if you look at

focusing on customer experience and

the main trends in supply chain - be it

customer satisfaction. There are very

handling disruptions better, being more

few supply chains today that have a

agile, or the advent of digitalisation and

one-to-one relationship with their sup-

the need for ever increasing customer

pliers, a lot of people have multiple

responsiveness - all of these chal-

sources of supply so you need to be

lenges are being brought to bear on

able to satisfy your customers require-

the ERP and wider enterprise software

ments. Therefore, there has been a

space,” and there isn’t a one size fits all

shift from minimising stock, to holding

approach comments Sinfield, “A recent

the right stock and making the right

report found that existing ERP solu-

products that will satisfy demands,”

tion challenges are split between the

92

“ Modern ERP is all about driving a business forward, be it faster and leaner processes, lower costs, better customer service or even developing new business and revenue streams” — Phil Lewis, Vice President, Solution Consulting EMEA, Infor

APRIL 2020

The convergence of blockchain, machine learning, and the cloud – Steve Lund – TEDxBYU CLICK TO WATCH

|

2:17

93 obsolete technology foundation or infrastructure of ERP system (43%), lack of features (41%), cost of maintenance and support (27%), inability to tailor ERP solutions to integrate changes to the business (22%), lack of qualified resources to maintain and support current system (12%). The business benefits of ERP are clear to see but, when it comes to picking the right type of deployment, things aren’t quite as straightforward. From hosted and on-premise to public cloud and private cloud, there are a whole host of options for organisations to consider amidst a w w w.suppl yc ha i ndi gi ta l. com

TECHNOLOGY

changing market landscape. Choosing the right option takes an investment of time and money, as well as effort in overhauling any legacy systems.”

Another challenge Hughes, Lewis and Sinfield discussed was data security. “The main issue is how do you secure the cloud. A cloud environment is only as secure as its weakest link in the cloud security chain. At Infor we employ a “defence-in-depth” strategy.

Multiple layers of overlapping security to safeguard customer data through 94

each link of the chain. These security controls are enforced by a team of specialists who continuously monitor and improve Infor Cloud security posture to stay ahead of threats and vulnerabilities,” comments Lewis.

Some of the most topical discussions at the moment, is the use of artificial intelligence and machine learning, “something which the industry has been quite slow to understand the power of,” comments Hughes, “with the use of innovative technology in ERP systems, companies can make improved business decisions via insights and analysis drawn from patterns, trends and behaviours.” Lewis adds that he too has APRIL 2020

seen this use of ERP in the supply chain industry change as a result of artificial intelligence (AI), “the algorithms in decision making and planning are already there, especially in supply chain planning. AI is vital in processing such huge attempts of data and has already begun developing predictive work flows and movement patterns for goods and even entire vessels.” Sinfield also comments that “with Big Data, you can get all sorts of devices to interact, from tablets and smartphones to robot assembly lines.

Data-driven insights are key in ERP systems because they let businesses identify problem areas and build on those for operational improvement.”

Looking to the future, Lewis emphasises that “the IoT explosion is already underway but it is far from finished. The impact of the cloud will continue to reduce the impact and risk of software rollouts, which is especially relevant to ERP as it is often a large, potentially disruptive project.” But it is not only the cloud that companies should be keeping an eye out for, “you are going to see a profuse amount of new technologies driving the experience of ERP. Mobile ERP is emerging and features heavily w w w.suppl yc ha i ndi gi ta l. com

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TECHNOLOGY

“ Ultimately, supply chains can benefit from ERP technologies because it allows for consolidation of data and business applications, giving IT the capability to deliver their services in building block form” — Robert Sinfield, Vice President, Product Sage Business Cloud X3, Sage

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APRIL 2020

in most business cases that we see.”

Agreeing with Lewis, Hughes acknowledges the rise of mobile ERP systems as ERP’s become smaller and end-toend solutions. “A lot of the innovations happening at the moment are centered around the user experience. The fundamentals won’t change but the way organisations use and interact with these tools is changing dramatically.” Reflecting on innovations he would like to see in the future, Sinfield highlights, “I’d like to see more green applications of ERP. The world today is suffering from far too much waste and pollution. The rise in public awareness and understanding of the problems has had a dramatic impact on human behaviour. As a result, ERP systems must be implemented to reflect this end goal and consumer need,” concludes Sinfield.

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T O P 10

98

Supply chain schools Supply Chain Digital takes a closer look at 10 of the biggest supply chain schools globally WRITTEN BY

SEAN GALEA-PACE

APRIL 2020

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T O P 10

CAMPUS RIO DE JANEIRO, BRAZIL

1944

YEAR FOUNDED

100

10

undação Getúlio F Vargas EXECUTIVE MASTER’S IN SUPPLY CHAIN

The school was founded in 1944 with the ambition of training people to qualify for the public administrations as well as for the private sectors in Brazil. Fundação Getúlio Vargas (FGV) has exceeded the scope of higher education to include academic research and information technology and become recognised as centre of quality and excellence. FGV has a vast and diverse education portfolio and offers undergraduate, professional Master’s, academic Master’s and PhD courses in public and business administration, economics, law, the social sciences and applied mathematics.

APRIL 2020

CAMPUS COVENTRY, UK

1965

YEAR FOUNDED

Photo: Š University of Warwick

09

MG, University of W Warwick

MSC IN SUPPLY CHAIN AND LOGISTICS MANAGEMENT

The University of Warwick’s supply chain programme is designed for graduates with a drive to work in logistics and supply chain management across several different industries. After completing the course, students will be provided with the skills to evaluate, manage and improve operational and supply chain processes, as well as be capable of undertaking market analysis. Through enterprise resource planning systems, it will enable a core understanding of the operational functions of a business as well as provide attendees with knowledge of strategy development and design.

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Photo: © University of Sydney

T O P 10

CAMPUS SYDNEY, AUSTRALIA

1850

YEAR FOUNDED

103

08

niversity of Sydney U Business School MASTER'S OF COMMERCE IN LOGISTICS AND SUPPLY CHAIN MANAGEMENT

Founded in 1850, The University of Sydney was Australia’s first university and is renowned as one of the world’s leading education facilities. The campus is ranked among the top 10 most beautiful universities worldwide. Its Master’s of Commerce in Logistics and Supply Chain Management course is designed for students who want to develop careers in the industry. The course provides students with an understanding in concepts, techniques and principles that are built for success in logistics and supply chain management.

T O P 10

CAMPUS SINGAPORE

1905

YEAR FOUNDED

104

07

ational University N of Singapore MSC SUPPLY CHAIN MANAGEMENT

With a drive to be a leading global university that shapes the future, the National University of Singapore values innovation and focuses on talent. Its supply chain management programme is jointly hosted by the Department of Industrial Systems Engineering and Management from Faculty of Engineering and the Department of Analytics and Operations from NUS Business School. The course is designed to ensure individuals have an in-depth skill-set for planning and operating modern supply chains in Asia within a global context. Originally founded in 1905 with 23 students, it is now considered Singapore’s flagship university.

APRIL 2020

CAMPUS SHANGHAI, CHINA

1907

YEAR FOUNDED

06

Tongji University

SCHOOL OF ECONOMICS AND MANAGEMENT, MASTER'S PROGRAMME FOR SUPPLY CHAIN & LOGISTICS

Founded in 1907, Tongji University is one of the oldest and most highly-regarded universities in China. The university offers a Master’s degree in supply chain management and logistics, bringing theoretical-practical knowledge to professionals who perform

their functions in different types of companies that have the management of the supply chain and in logistics. Overall, there are almost 19,000 full-time undergraduates, along with 15 professional Master’s courses and three professional PhD programmes. Tongji University has a total of five campuses across its site.

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T O P 10

CAMPUS VANCOUVER, CANADA

1908

YEAR FOUNDED

05

niversity of British U Columbia MSC IN BUSINESS ADMINISTRATION, TRANSPORT & LOGISTICS

The UBC Sauder School of Business is a faculty at the University of British Columbia. Having opened in 1956, the school offers a range of different programmes. Its business administration, transport and logistics course provides attendees with analytical skills and in-depth knowledge in a range of different areas of transportation and logistics. The facility is located in Vancouver on UBC’s Point Grey campus, and also has a secondary teaching facility at UBC Robson Square.

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T O P 10

CAMPUS TALENCE, FRANCE

1874

YEAR FOUNDED

108

04

EDGE Business K School MSC IN SUPPLY CHAIN MANAGEMENT

KEDGE’s Centre of Excellence in supply chain aims to develop new methods, techniques and concepts of organisation and decision-making in the areas of supply chain management. The course prepares students to meet the challenges of a new era in business management head-on. The successful managers are the ones who demonstrate a global approach to their analysis and understand how to create supply chain architecture for worldwide networks.

APRIL 2020

CAMPUS MILAN, ITALY

1979

YEAR FOUNDED

03

IP Politecnico di M Milano MASTER'S IN SUPPLY CHAIN AND PURCHASING MANAGAMENT

The course has been designed to provide all the necessary skills to young graduates seeking a successful international career in supply chain and procurement management. The 12-month masters programme is taught primarily in English and seeks to instruct students on the latest topics in the supply chain and procurement field. The Milan-based school provides an end-to-end portfolio of services in research, education and high-level consultancy within the field of management, economic and industrial engineering.

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AMERICAS | APAC | EMEA FIND OUT MORE

T O P 10

CAMPUS Centrum PUCP Business School INTERNATIONAL CORPORATE MASTER’S IN OPERATIONS As the only business school in Peru to be 112

awarded the Triple Crown, Peru’s business school offers best-in-class training as well as professional excellence and personal ethics.

Its supply chain management programme trains leaders to strategically direct efficient supply chains through high levels of service.

The school also has a partnership with EADA Business School in Barcelona and MIP Politecnico di Milano School of Business, and students will attend two-week and one-week long trips respectively, during the course.

APRIL 2020

SURCO, PERU

2000

YEAR FOUNDED

113

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T O P 10

CAMPUS MIT Sloan School of Management MASTER’S IN SUPPLY CHAIN MANAGEMENT Founded in 1914, MIT Sloan provides bachelors, masters, and doctoral degrees and its 114

programmes are amongst the most selective worldwide. Its supply chain course is led by industry experts and provides an understanding on how to thrive in today’s supply chain.

Participants in the course will gain a deeper understanding of supply chain integration, technology sourcing, make-buy decisions, strategic partnering, IT and decision-support systems. The course prides itself on its innovative approach and will provide a platform to teach attendees how to manage the evolving supply chain space.

APRIL 2020

MASSACHUSETTS USA

1914

YEAR FOUNDED

Photo: © MIT 115

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

The biggest industry events and conferences WRITTEN BY SEAN GALEA-PACE from around the world

4–5 MAY 2020

ProcureCon Canada [ TORONTO, CANADA ] Having started as a single event in 2001, ProcureCon has grown significantly over the past 19 years and now hosts 11 events in North America every year. With the procurement landscape 116

transforming enormously during that time, ProcureCon has grown in tandem

11–14 MAY

Gartner Supply Chain Symposium

and sits alongside the industry to

[ ORLANDO, FLORIDA ]

address the latest challenges and

The event offers insights from over 45

monitor upcoming trends. The event

Gartner experts behind the latest sup-

attracts more than 200 strategy-level

ply chain research. Set over four days,

procurement executives in corporate

the conference will provide research-

services. There is set to be a range of

backed sessions, expert advice on

high-level speakers at the event,

specific challenges and also allow net-

including Stefane Belleau, Executive

working opportunities with over 2,500

Director, Supply Management of CBC,

fellow industry professionals. A num-

Shauna Gamble, Chief Procurement

ber of topics are set to be discussed,

Officer, at Bombardier Aviation and Wael

such as supply chain strategy, supply

Safwat, Head of Procurement, North

chain planning, sourcing and procure-

America, at Black & McDonald.

ment, digitalisation and more.

APRIL 2020

NEW DATE: TBA

14–15 MAY

World Procurement Congress (WPC)

Digital Supply Chain & Logistics 4.0 Summit

[ LONDON, UK ]

[ AMSTERDAM, NETHERLANDS ]

As the industry’s biggest gathering of

The two-day event will provide a venue

procurement professionals, the World

for professionals from a range of

Procurement Congress will focus

industries and companies to meet and

around visionary, forward-looking

partake in presentations, panel

trends that are set to shape the long-

discussions, workshops, breakout

term success and impact of the

sessions and more. The role of

procurement function. The two-day

technology in the supply chain is

event will provide attendees with

anticipated to be heavily featured, with

knowledge, real life case studies and

supply chain risk management and

offer solutions for business success.

intelligent supply chain for a

There is set to be a range of industry-

connected world all set to be

leading speakers at the event, including

discussed. The exhibition will also

Sylvie Noel, CPO of Covéa; Qasim Hus-

showcase AI and robotic process

sain, CPO of Kellogs; and Bob Murphy,

automation and how it can be

CPO of IBM, among others.

successfully utilised into operations.

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

16–18 JUNE 2020

118

9–11 JUNE 2020

ProcureCon IT Sourcing

TOC Europe

[ DENVER, COLORADO ]

[ ROTTERDAM, NETHERLANDS ]

ProcureCon IT Sourcing is recognised as

Considered the best-in-class by con-

the only peer-led, senior-level procure-

tainer terminal operators and their

ment event solely dedicated to the

suppliers, TOC Europe has evolved into

unique challenges of the IT sourcing

the complete container supply chain

community. For over two decades, Pro-

gathering. The exhibition is a showcase

cureCon has enabled companies to

for port and terminal technology and

develop and introduce state-of-the-art

operations as well as offering free tech-

sourcing programmes through interac-

nical seminars. There is also the

tive workshops, innovative keynotes and

high-level Container Supply Chain Con-

close networking sessions for each spe-

ference, which is co-located with each

cific company. There is set to be a host of

TOC event, and is aimed at C-Suite stra-

high-profile speakers in attendance,

tegic personnel including shippers,

including: Amy Barnes, Senior Manager,

carriers and 3PLs, in addition to the

IT Sourcing at Walmart, Eric Carlson,

global operators and port authorities.

Manager, Sourcing & Supplier Manage-

The event will offer over 100 hours of

ment at Mastercard and Yatzibet Avila,

seminars, invaluable insight into the lat-

Director of Procurement for HW/SW and

est trends and more networking

Telco at Fannie Mae.

opportunities than ever before.

APRIL 2020

14–16 JULY 2020

ProcureCon Asia [ SINGAPORE, ASIA ] ProcureCon Asia provides the venue for

16–17 SEPTEMBER

Digital Procurement [ AMSTERDAM, NETHERLANDS ]

the biggest and most senior community

With over 600 attendees, 50 speakers

of Asian procurement professionals -

and 40 startups set to attend, the two-

direct and indirect - from across

day conference brings together a large

industries to share best practice. The

community of digital procurement lead-

three-day event will offer interactive

ers. There will be a range of different

learning and the opportunity to form valu-

topics set to be discussed from Big Data

able connections in Singapore.

and analytics, robotics and artificial intel-

ProcureCon Asia will provide insight from

ligence (AI), blockchain, talent and

a range of industry professionals and will

supplier innovation. Digital Procurement

provide lots of actionable strategies to

World will play host to keynotes, real-

define the future of your business. With

world case studies, learning labs, demos

over 30 hours of intimate discussion

and a hackathon. Speakers include Ber-

groups, creative think tanks, interactive

trand Conqueret, President Global

case studies, category and industry

Supply Chain and CPO at Henkel, Angela

focused roundtables, technology round-

Qu, SVP, Head of Group Procurement at

tables, shark tanks and more,

Lufthansa Group and Maarten Stamrood,

ProcureCon Asia 2020 caters to all.

Chief Digital Officer at Brenntag Group.

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120

EVOLVING SUPPLY CHAIN WRITTEN BY

AMBER DONOVAN-STEVENS PRODUCED BY

CHARLOTTE CLARKE

APRIL 2020

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MASTERCARD

Mark Bromley, Director, Sourcing and Supplier Management, Mastercard, details the pivotal role of supply chain in driving the financial giant as a world leader

M

astercard is a name that is synonymous with the global financial services sector; a payment network that financially

unites countries on a global scale through its partnerships with merchants, consumers and government entities. With over 2.5 billion cards 122

embossed with Mastercard’s logo, it remains one of the most recognised brands today.

The secret to the provider’s success may be in part attributed to its market tenure, having been around for half a century, but in an ever-changing industry increasingly populated by disruptive startups, unicorns and innovators, the giant has also taken considerable steps to remain relevant. From the nurturing of startups through to its sustainable initiatives, Mastercard has proven time and again that it is ethically and practically invaluable to its customers, and every year, the cooperation receives numerous accolades. So far in 2020, it has already been awarded Fortune’s Blue Ribbon Companies 2020, it has been recognised as one of the World’s Most Admired Companies by APRIL 2020

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MASTERCARD

“ I don’t like the thought of procurement just being seen as a process that uses rubber stamps to get something done” — Mark Bromley, Director, Sourcing and Supplier Management, Mastercard

Fortune and ranked in Bloomberg’s 2020 Gender Equality Index. As well as receiving a perfect score on the Human Rights Campaign’s 2020 Corporate Equality Index, Mastercard is listed

as one of America’s Most Responsible Companies

by Newsweek.

124

Mark Bromley, Director, Sourcing and Supplier Management, Mastercard, provides an insight into the way in which the company is innovating its processes to be more accessible to startups. Bromley has worked with Mastercard for a little over four years, having previously worked with Barclays Investment Bank as a Global Sourcing Manager and Head of Transactional Sourcing, and as a Procurement Analyst for American Express previous to that.

As Director of Sourcing and Supplier Management, he is responsible for building sourcing strategies that align with the corporate vision, and Bromley and his team were recently awarded APRIL 2020

Debit Mastercard – Everyday Priceless CLICK TO WATCH

|

0:30

125 the Bias For Speed award from

process from several months down

Mastercard’s Head of Legal for the

to just two weeks.

implementation of a process that

The onboarding process took

allows the seamless onboarding of

Bromley and his teams six months

startups into the Mastercard ecosys-

to create, and was culminated from

tem, The Mastercard Start Path.

numerous workshops and meetings

“We see the value of startups and want

that gathered a number of departments

to be a partner to these companies,”

across the organisation, including

says Bromley, “and we wanted to

finance, supply chain, risk, business

create a process that did not control

and legal. “To get all these departments

design for startups, but more speed

together with one goal in a global com-

to market.” It is from this goal that

pany is quite an achievement, and

Bromley and his teams moved to

something I am personally proud of.”

create a process that allowed for a

The new on-boarding process

startup to complete the onboarding

platform added a great amount of w w w. s up p l y c h ain digi t a l . c o m

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MASTERCARD

128

efficiency to a once timely process,

says Bromley. He enthuses that this

allowing for a faster cataloging and

is overcome by taking a more consul-

shortlisting of fintech and startup

tative role, where those in supply chain

applicants. Bromley shares that once

reach out across the company and

these companies apply through the

suggest processes based on their

aforementioned portal, they are

extensive knowledge of Mastercard’s

manually reviewed by Mastercard,

partners and processes. “So much of

and around six are taken into the

our work with fintechs, startups and

Mastercard ecosystem, giving them

SMEs is about revenue generation,

access to it’s diverse network, as well

and with that, speed to market prod-

as six months of mentoring. “I don’t like

ucts. As a result the supply chain

the thought of procurement just being

teams work closely with product

seen as a process that uses rubber

teams to ensure that each startup

stamps to get something done,”

entering our ecosystem is

APRIL 2020

receiving the best support and con-

received by stakeholders, without

nected with the best-matched

whom, the success of the new process

companies in the network.” Start Path

would not have been possible. “The

was recently named The Best

process is only as good as the support

Innovation Program in 2020 by

you receive for it. Our senior stakehold-

Tearsheet, a testament to Mastercard’s

ers understand that supply chains are

collaborative approach to innovation.

diversifying and as a result have been

One of Bromley’s favourite aspects of Mastercard is the culture. “It’s very

exceptionally supportive,” he says.

This work that Bromley has led is a part

inclusive,” he shares. “It’s great to be

of Mastercard Labs (R&D innovation

a part of a company that talks the talk

team), of which there are eight globally.

and walks the walk.” He commends

The labs specialise in VR, AI, AR and

the work of president and CEO, Ajay

blockchain, with an exploration into how

Banga, who works tirelessly to ensure

these technologies can drive company

diversity and inclusion. Bromley shares

value while also providing new innova-

that the new process was well

tions to the 20,000 banks and 60 million

E XE CU T I VE PRO FI LE

Mark Bromley Mark Bromley has global exposure and experience of sourcing in international locations mostly focused in EMEA, APAC and the US, and more than 14 years’ experience in the Procurement sector across multiple categories including Software, Hardware, IT Services, Marketing & Advertising, Payment Solutions and Data. With more than two and a half years of team management based in Singapore, a proven track record of delivering savings and implementing various contractual frameworks and procurement processes. He also has international experience with four years based in Singapore. w w w. s up p l y c h ain digi t a l . c o m

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EXPERT EXECUTION

FACT BOX

Driving diversity through procurement “Our supply chain is diverse, and it is essential that we embrace it as a company, both in our own company and through our partnerships.” One partner of particular note is Gibbs Hybrid.

“Farida Gibbs is from a womenowned business, and a business woman whose approach I greatly respect,” shares Bromley. “After a number of meetings with Mastercard, we onboarded Gibbs Hybrid into our ecosystem, and they have been working with our New York labs team.” Bromley explains that Gibbs Hybrid understands Mastercard’s brand

and compliments the company well. He also shares that there are a number of initiatives that Mastercard champions, from the Women Leadership Workshop, through to its burgeoning LGBT+ group. “We want our own people within the company to feel comfortable, so that they can accelerate with full support, and this is embodied from our CEO, right through to our most recent onboarded startup. It’s great to see such diversity; it nurtures culture and builds a strong company with people that enjoy what they do.”

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Mark Bromley, Mastercard Director, Sourcing & Supplier Management © Creation Agency 2020. All rights reserved. All third party logos mentioned herein may be the registered trademarks of their respective owners.

“ So much of our work with fintechs, startups and SMEs is about revenue generation, and with that, speed to market products” — Mark Bromley, Director, Sourcing and Supplier Management, Mastercard

merchants it supports. In addition to his work with the innovation labs, Bromley has two other areas of responsibility within

the remit of the supply chain: cyber and intelligence solutions, and card products.

“Looking at what our cybersecurity team is doing is both amazing and challenging,” Bromley says. “One bad experience can lose a customer permanently, and larger companies are constantly the target of cyberattacks, so we need to ensure that our customers and their assets are protected at all times.” The cyber group specifically focuses on securing the payments in Mastercard’s ecosystem and leveraging the suppliers that enter into the ecosystem in strengthening the company’s cybersecurity. Bromley shares that Mastercard is also looking to expand it’s Artificial Intelligence Academy to drive its cybersecurity capabilities. w w w. s up p l y c h ain digi t a l . c o m

133

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Partnership spotlight SHI One long standing partner within the technology space is SHI. “SHI are a strategic partner to Mastercard in the technology space, says Bromley, “they provide a reliable and important service to our business over a number of years, a trusted partner who we look forward to working with on our journey into the digital age.”

Creation Agency ”All companies are a key part of our success and Creation Agency is one of our more recent

additions to our partnership portfolio. Creation Agency understands the Mastercard brand well; they are a hungry, responsive and dedicated team that always looks at the bigger picture.”

Freestyle IT “Freestyle IT have been a trusted VAR partner to Mastercard for several years now. Albeit a small company, they punch above their weight and no task is too difficult for them to handle. They are reliable and trusted by our stakeholders.”

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MASTERCARD

1966

Year founded

$12.5bn+ Revenue in US dollars (2017)

16,000 Number of employees

“ It’s great to be a part of a company that talks the talk and walks the walk” — Mark Bromley, Director, Sourcing and Supplier Management, Mastercard APRIL 2020

As well as keeping payments safe, Mastercard needs to ensure that its vast number of products are well tailored to customers and competitive in the marketplace. “There are 2.5 billion Mastercards out there. Our teams are working on those products and working with partners, particularly within the

but I have every faith that with their support we will continue to really drive change at Mastercard.” He asserts that the future for supply chain and procurement will continue to change. “We will no longer be a retrospective outfit within the company, but a proactive partner across the board that will innovate and collaborate both internally and externally, to deliver the company’s strategic objectives.”

“Industry-wide, supply chain has the chance to do a lot more than just be a paper-pushing function. Push yourselves and lead your team through change to make procurement a go-to partner within the organisation.” Though many companies have yet to adopt this mentality with regards to procurement, it is loyalty space, to create a better expe-

evident that this approach is deeply

rience for our users.”

embedded in Mastercard’s culture,

Bromley acknowledges that there

which will undoubtedly continue to

is still a long way to go in streamlining

position it as a global leader in the

the procurement process, but he

payment’s industry.

looks ahead with anticipation. “I’ve had great support from both the leadership team and the wider Mastercard team; it hasn’t been easy, w w w. s up p l y c h ain digi t a l . c o m

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APRIL 2020

Unifying its global supply chain WRITTEN BY

GEORGIA WILSON

139

PRODUCED BY

CHARLOTTE CLARKE

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IMI CRITICAL ENGINEERING

Aidir Parizzi, Director of Global Supply Chain at IMI Critical Engineering, discusses the consolidation of its global supply chain and digital transformation

W

ith over 25 years in engineering and operations, Aidir Parizzi, Director of Global Supply Chain at IMI Critical

Engineering, has held various strategic sourcing roles within supply chain. “I started my journey in the automotive industry as a purchasing engineer 140

for Volkswagen after completing my bachelors and postgraduate degree. As a result, I was soon attracted to the supply chain sector,” reflects Parizzi. “After 10 years in the automotive industry I moved to oil and gas where I worked for FMC Technologies and General Electric in global strategic sourcing roles. In 2017, I joined IMI Critical Engineering with one clear mission - to consolidate the global supply chain operations of the company which is spread across 18 sites, in 12 countries worldwide.”

Dating back to 1862, IMI Critical Engineering is part of IMI plc “a major player in the energy and industrial process sector,” comments Parizzi.

“Our focus is to provide technically superior and cost effective flow control solutions, with every valve, actuator or control system we design and APRIL 2020

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IMI CRITICAL ENGINEERING

“ Our focus is to provide technically superior and cost-effective flow control solutions, with every valve actuator or control system we design and manufacture meeting our vision – breakthrough engineering for a better world”

142

— Aidir Parizzi, Director of Global Supply Chain, IMI Critical Engineering

manufacture meeting our vision - breakthrough engineering for a better world.” Parizzi believes that what makes the company different from its competitors is the talent and diversity across its entire operations. “We are relentless in our focus on customers and our dynamic collaboration with supply chain engineering and commercial teams to ensure we are quick, reliable and long term partners in the market.” Since his time at the company, Parizzi has seen IMI Critical Engineering experience the same challenges as others in the industry. “We have obviously felt the impact of the sharp market decline in the last couple of years. However, as a leader in the power generation sector, we must evolve at the same pace as the market by quickly reacting to new trends such as LNG, natural gas and petrochemicals. In addition to this we are also investing in adjacent sectors such as our recent acquisition of American company PBM, which gives us market leadership in pharmaceuticals and sanitary valves. While we need to adapt in order to remain industry leaders, our values and mission remain the same.”

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143 Over the last two years, Parizzi has

significant effort and manual inter-

been involved in multiple operations to

vention, we established reliable and

achieve his mission of consolidating

usable data that we could combine

IMI Critical Engineering’s global supply

with pragmatic and effective analytics

chain operations. “The initial activi-

tools. With this organised supply base

ties involved the basic fundamentals

and spend information, we estab-

of modern supply chain procurement

lished a category management team,

strategies. We started by putting our

a global standard strategic sourc-

efforts into organising, understand-

ing process and a unified Approved

ing and analysing the data of our 18

Vendor List.� In consolidating its global

business units. However, we did not

supply chain, Parizzi highlights the

expect our consolidated data from dif-

benefits IMI Critical Engineering has

ferent ERP systems and procurement

seen as a result, such as: diversity of

practices to automatically pull through

thought and experience, collaboration,

system reports. Therefore, with

consolidation of materials suppliers w w w. s up p l y c h ain digi t a l . c o m

Ridderflex’s outstanding quality and delivery performance, associated with extensive technical and commercial collaboration, enabled a true long-term strategic partnership with IMI Critical Engineering.

AIDIR PARIZZI, IMI PCL

Ridderflex is proud to be a valve parts key supplier to IMI View Ridderflex’s valve parts

I’m proud to be part of IMI’s supply chain and to contribute to their high product standard.

ERIK NEKEMAN, RIDDERFLEX

I love working for IMI Truflo because of the great cooperation.

I feel a valued partner, not just a supplier.

ALEX OPPENTOCHT, RIDDERFLEX

We keep our stocks of exotic metals, high-end engineering plastics and carbon graphites for seat assemblies closely aligned with IMI Truflo’s valve production schedules.

At Ridderflex we believe in empowering our customers by aligning our business methods closely with our customers to

Our efforts to align with our customers were rewarded with IMI Truflo Marine’s Supplier of the Year Award!

ensure close cooperation.

Our facilities were designed with production of high quality valve parts and short lead times in mind.

Long term relations with IMI Truflo

within hours of production of the valve

Ridderflex have been providing us with high quality bespoke parts for over 25 years. Good knowledge of various products and materials coupled with brilliant service has made Ridderflex one of our key strategic suppliers for the seals category.

parts.

ATIF HUSSAIN, BUYER IMI TRUFLO MARINE

Marine and IMI Truflo Rona have taught us that when it comes to customer relations, service level is everything.

With that in mind, we ensure short lead times and flexibility by moulding PTFE compounds and PCTFE in house. Our laboratory can issue test certificates

IMI CRITICAL ENGINEERING

146

to develop strategic partnerships,

benefits and collaboration with

hands on experiences and improved

our suppliers,” comments Parizzi.

use of time to increase efficiency.

For example “CF Booth’s flexibility,

Succeeding in this transformation

expertise and understanding of our

might sound daunting, but Parizzi

product requirements, has been a

highlights that the key to achieving

key factor in sustaining a long term

the consolidation of its global opera-

relationship of over 20 years at IMI

tions was not to radically change the

Truflo Marine,” says Parizzi, “While

way its teams were operating, but to

Ridderflex’s outstanding quality and

structure every step of the process

delivery performance, associated with

the same way, with the use of KPIs

extensive technical and commercial

and common supply chain language.

collaboration, enabled a true long-

“Today we are more focused on a

term strategic partnership with IMI

lean supply chain to allow for mutual

Critical Engineering’.

APRIL 2020

Alongside the consolidation of

digitisation projects. “The teams are

its global supply chain operations,

working on short to medium term solu-

Parizzi reflects on the company’s

tions that will make our supply chain

drive to digitally transform the com-

more efficient, competitive and more

pany to remove its legacy systems.

supportive of customers. We do not

“Digitalisation is a major trend in our

embark on any project that will not

industry. However, like it is in most

meet these three objectives.”

industries, there is still a lot of confu-

During his time at the company,

sion and uncertainty surrounding

Parizzi has seen the company trans-

the meaning of digitalisation and

form its ERP systems, data and

the actions required,” comments

analytics. “We are gradually transi-

Parizzi. To combat this challenge,

tioning our sites to a single system

the company has developed several

with the help of IFS. Since 2017, we

cross-functional teams working on

have moved half our sites onto one

E XE CU T I VE PRO FI LE

Aidir Parizzi Aidir Parizzi has over 25 years of extensive experience in Engineering and Supply Chain Management, with a strong track record of Supply Chain performance improvement in global businesses. He has worked internationally with global leaders in Automotive and Oil & Gas industries, always focused on building and consolidating Global Procurement & Supply Chain effective teams and processes. w w w. s up p l y c h ain digi t a l . c o m

147

“ While we need to adapt in order to remain industry leaders, our values and missions remain the same” — Aidir Parizzi, Director of Global Supply Chain, IMI Critical Engineering

system, which can produce automatic reports and data analysis, to streamline and facilitate best practices and solutions within the division. In addition to IFS, we also use Cedar Bay, a comprehensive data capture solution that allows us to track our materials across the whole production cycle.”

When it comes to innovative technology, Parizzi explains the company’s adoption of digital twins. “In early 2019, driven by the potential impact of Brexit, we developed a rudimentary digital twin for our supply chain. Since

w w w. s up p l y c h ain digi t a l . c o m

149

IMI CRITICAL ENGINEERING

1862

Year founded

£682mn Revenue

5,000 Number of employees

150

APRIL 2020

151

e ur o p e . b u s in e s s c hie f. c o m

IMI CRITICAL ENGINEERING

its initial development, it has evolved to incorporate design to cost methodology and cost models, to name a few. This allows us to quickly evaluate risk and opportunities using different scenarios and market trends.” In addition to digital twins, IMI Critical Engineering has been investing into artificial intelligence (AI) and machine learning. “We are currently investing in this technology to help our customers become more efficient and agile. We are harnessing AI, machine learning 152

and big data - in collaboration with our human workforce - to enhance our well recognised Valve Doctor®

“ Today we are more focused on a lean supply chain to allow for mutual benefits and collaboration with our suppliers” — Aidir Parizzi, Director of Global Supply Chain, IMI Critical Engineering

program to increase plant’s availability and production performance.”

With transformation and innovation comes a lot of disruption and change. At IMI Critical Engineering, Parizzi explains that a good change management strategy starts with making sure all stakeholders are part of any decisions and contribute to finding the right solutions. “We follow a change management strategy that continues well into execution, keeping everyone engaged and focused

APRIL 2020

153

on the outcomes. We’ve also invested

and positioning for the rapid evolution

in a growth acceleration program

of industries we serve. By continually

methodology that is embedded into

investing in our people, our solutions

all areas of the company, helping us

and our service we’ve maintained a

to achieve fast solutions, minimise

reputation for excellence that is crucial

costs and find inefficiencies.”

to our continuing success. The inter-

Reflecting on the company as a whole, Parizzi believes IMI Critical

ests of our customers will always be central to that approach.”

Engineering has been investing in a high-level transformation journey that will bring many benefits to the company. “IMI Critical Engineering has an excellent track record in anticipating w w w. s up p l y c h ain digi t a l . c o m

154

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155

VOLVO CARS: A NEW APPROACH TO STRATEGIC PARTNERSHIPS WRITTEN BY

GEORGIA WILSON PRODUCED BY

CHARLOTTE CLARKE w w w. s up p l y c h ain digi t a l . c o m

V O LV O C A R S

Michael Perkins, Director of IDP Global Procurement at Volvo Car Group, discusses the evolution of the company’s holistic approach to strategic partnerships

S

tarting his career in the procurement industry in the early 90s, Michael Perkins has roughly 30 years experience in the sector.

Currently, Perkins is a Director at Volvo Cars in charge of the EMEA region, as well as setting the structure globally for the company’s digital and IT services, 156

marketing and sales, and professional services in procurement. “In 2016, following a 26 year career in procurement I was looking for new opportunities.

Whilst looking, I was contacted by a recruiter on behalf of Volvo Cars, who were looking to establish the company in South Carolina. I’d never worked in the automotive industry and saw this as an incredible opportunity - the thought of bringing a Swedish automaker owned by a Chinese holding company to the US intrigued me,” says Perkins.

“Volvo Cars is an amazing company,” comments Perkins. “We are a very progressive automotive manufacturer; we are agile, creative and extremely people-driven. We also have the ability to adjust our paths faster than other premium automotive manufacturers due to our size, however we are still big enough that people are taking notice of what we are doing APRIL 2020

157

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V O LV O C A R S

“ We are a very progressive automotive manufacturer; we are agile, creative and extremely people-driven” Michael Perkins, Director of IDP Global Procurement, Volvo Car Group

and wanting to be a part of it. Ultimately at Volvo Cars we strive to provide people with the tools to move in a sustainable and responsible way.” Further discussing sustainability, Perkins emphasises that this is something which to this day is at the core of Volvo Cars’ operations dating back to its founders. In order to drive sustainability within its operations, Volvo Cars has set what Perkins believes to be one of the most ambitious climate plans in the automotive industry. “We aim to reduce our CO2 emissions by 25%

158

per car by 2025, with a long-term goal of becoming climate neutral by 2040 across the full value chain.”

When it comes to sourcing and procurement trends within the automotive industry, Perkins has seen the expectation of greater margins emerging as a challenge. “With this in mind it is critical for us to create strong partnerships with our suppliers, when we work together it’s not just about cutting costs, it’s also about improving our cross collaboration between internal stakeholders and procurement,” comments Perkins. “It all starts with collaboration. For our sourcing and procurement strategy we need to establish trust between each other APRIL 2020

Volvo – Recharged

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159 and determine what is needed, in order

talking about is strategic, not favoured,

to ensure we source the right partners to

sometimes this can get blurred. I am

fulfil the requirements. We also have to

talking about someone that has our

be comfortable with the realisation that

interest in mind, but they will also chal-

we don’t know everything, and look to

lenge us and the status quo. We work

our suppliers to help improve cost opti-

jointly with our partners not only in the

misation and operational efficiency.”

successes but in the failures too,” com-

When searching for a strategic partner,

ments Perkins. When it comes to Volvo

Volvo Cars looks for companies that not

Cars’ approach to partnerships, Perkins

only have a proven track record within

describes it as holistic, “similar to what

the industry, but companies that also

I have previously discussed, when we

align with Volvo Cars’ beliefs and values.

look to source our suppliers we have a

“I think when we are looking for strategic

common target, something which we

partners - firstly they’re critical to our

are looking to achieve. Taking a holistic

success - but let me be clear what I am

approach creates a group of suppliers w w w. s up p l y c h ain digi t a l . c o m

Building

technology-driven businesses of the future, today.

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V O LV O C A R S

162

that we can rely on and innovate with in

on this new approach, Perkins has

the hopes to deliver ‘best-in-class’ plans,

seen Volvo Cars’ landscape supplier

processes and products.”

landscape change. “When we started

With this approach in mind, Volvo

this project we had hundreds and

Cars established a cross functional

hundreds of suppliers covering our

team. “I would say this was the first

11 areas that we were dependent on,

time in the organisation where we

creating dependency issues, lack of

approached mega sourcing in the

efficiencies, governance and supplier

proper way by establishing a cross

management tools. With this change

functional team of decision-makers,

of approach we were able to reduce

project leaders and subject matter

the majority of our supplier base to four

experts. This allows us to be flex-

main suppliers, which are helping us

ible and adjustable to meet desired

to remove dependency, improve effi-

results,” comments Perkins. Reflecting

ciency, and implement governance and

APRIL 2020

performance management tools.

holistic approach and collaborating with

This was a huge transformation for us.”

our partners will drive ‘best-in-class’

Volvo Cars’ four strategic partners

outcomes if we utilise each of them to

include Capgemini, HCL, Cognizant and

their strengths. Capgemini was selected

Infosys. “As a whole, any one of them

for our manufacturing, logistics, finance,

could have taken on the entire transfor-

hosting, HR, facility, legal and security,

mation project. However, like I previously

while HCL is our partner for product cre-

mentioned, we believe that taking a

ation, research development, IP assets,

E XE CU T I VE PRO FI LE

Michael Perkins Michael has a wealth of experience in expense management within a multitude of industries, including insurance, real estate, technology, legal, human capital, and private equity, to name a few. For over 15 years, Michael was a partner with Profit Recovery Partners, a professional services firm that develops, implements, and manages cost-reduction solutions.

Michael joined Volvo Car Corporation in April 2016 to help establish and launch its first manufacturing plant being built in the US. This included the overall responsibility of Machinery & Tooling, Logistics, Facilities Management, IT, Marketing & Sales, Professional Services, etc. After two years in the US, and completing the launch, Michael moved to Sweden to join the indirect procurement management team.

In his current role, Michael is responsible for the EMEA region as well as driving global direction in the areas of Marketing & Sales, CED (IT), and Professional Services. w w w. s up p l y c h ain digi t a l . c o m

163

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end user and collaboration environments, Cognizant is our partner for data management, analytics, monetisation and automation, and finally Infosys to support the delivery and transformation in our commercial operations.”

In addition to transforming its strategic partnership strategy, Volvo Cars has been digitally transforming its business functions and operations to become more agile. “Currently within the automotive industry, I would say there is a huge

“With this change of approach we were able to reduce the majority of our supplier base to four main suppliers, this was a huge transformation for us” Michael Perkins, Director of IDP Global Procurement, Volvo Car Group

focus on electrification, autonomous 165

driving, customer relationships and

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V O LV O C A R S

CAPGEMINI

166

Capgemini is a global leader in consulting, technology services and digital transformation, at the forefront of innovation to address the entire breadth of our clients opportunities in the evolving world of cloud, digital and platforms.

Building on its strong 50-year heritage and deep industry-specific expertise, Capgemini enables organisations to realise their business ambitions through an array of services from strategy to operations.

We have been working for more than 40 years with Volvo Cars, in different programs, supporting both the IT organisation as well as the Business side of Volvo Cars.

Since last year we have been chosen as the main Digital transformation partner for Enterprise Digital.

Our Motto for the partnership is “Guide – Enable – Deliver”. We guide Volvo Cars by leveraging our industry knowledge and expertise to provide insights to Volvo Cars on some of their strategic topics, we help enable Volvo Cars’ strategies

APRIL 2020

to make sure implementations can accelerate, and we strive to deliver current services as well help in transforming its IT landscape into a future proof and agile IT environment.

As part of the new agreement, Capgemini will deliver a wide range of transformation services including product orientation, DevOps and cloud. In addition, Capgemini will be a main provider of end-to-end SAP consulting and technology services (including new SAP S/4HANA® implementation projects, application management and support, and infrastructure/ platform services).

In the last few years the intensity of the relationship has started to change. Rather than just delivering IT services, our relationship with Volvo Cars has started to focus more on the business impact both parties could deliver through the IT services provided to the business.

— Frank Wammes, Global Account Executive, Capgemini

HCL

HCL Technologies (HCL), is a leading next generation global technology company that helps enterprises reimagine their businesses for the digital age. Our technology products, services and engineering are built on four decades of innovation, with a world-renowned management philosophy, a strong culture of invention, risk-taking, and a relentless focus on customer relationships.

HCL’s engagement with Volvo Cars is the expansion of a partnership that began in 2016 and will see HCL continue to support the global premium car company through its ongoing digital transformation initiatives. This large-scale transformation exercise includes organization-wide technology shifts that will help Volvo Cars capitalize on new opportunities to improve internal business processes and customer experiences.

The relationship between the two organizations is driven by the key tenets of trust-transparency-flexibility, value centricity and is based on HCL’s philosophy of relationship beyond the

contract™. The partnership is now expanding to the next level and is moving into digital transformation, including product orientation, DevOps and application integration.

As an industry-leading global engineering services provider, HCL Technologies will also help Volvo Cars strengthen their competitive advantage, through an integrated transformational strategy that facilitates continuous quality & cost improvement across the product creation value stream, while accelerating revenue growth t hrough innovation.

Leveraging HCL’s combined strengths in PLM and electronics and engineering IT, we are bringing together a blend of traditional and next generation global engineering services and global engineering solutions, enabling Volvo Cars to achieve productivity targets in coming days and race ahead of the competition.

— Anirban Dutta,, Client Partner, HCL Technologies, Sweden

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167

V O LV O C A R S

vehicle communication. With these fast growing trends it is crucial for us to develop strategic partners with the expertise to develop and utilise innovative technologies such as artificial intelligence, machine learning, big data and analytics in order to stay ahead of these evolving trends.”

Reflecting on the company, Perkins has seen Volvo Cars since 2018 evolve from manufacturing cars in Europe and China, into an auto manufacturer with systems and governance in global 168

positions. Perkins believes that Volvo Cars’ biggest strengths are its line-up of vehicles which have been completely

“ Taking a holistic approach creates a group of suppliers that we can rely on and innovate with in the hopes to deliver ‘best-in-class’ plans, processes and products” Michael Perkins, Director of IDP Global Procurement, Volvo Car Group

APRIL 2020

169

redesigned to remain competitive and lead the premium car market, as well as its commitments to sustainability with its electrification lineup and its leadership team that isn’t afraid to cause a disruption in the industry. “I would also say our biggest success is our strong presence within the industry maintaining our ability to sell over 700,00 cars in 2019 in a declining market, which I think is pretty incredible,� concludes Perkins.

w w w. s up p l y c h ain digi t a l . c o m

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