SupplyChain Magazine – August 2023

Page 33

THE FUTURE OF 3PL +

4PL

IN A POST-PANDEMIC WORLD

More firms than ever are collaborating with outsourced logistics providers to minimise supply chain disruption

August 2023 | supplychaindigital.com SUPPLY CHAIN BUSINESSES
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The SupplyChain Team

EDITOR-IN-CHIEF

SEAN ASHCROFT

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SCOTT BIRCH

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NEIL PERRY

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MATT JOHNSON

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ANDY WOOLLACOTT

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SUPPLIER COLLABORATION GIVES FIRMS A COMPETITIVE EDGE

AS AUTOMATION LIBERATES PEOPLE FROM TRANSACTIONAL SUPPLY CHAIN ROLES, FIRMS ARE NOW TARGETING STRATEGIC SUPPLIER COLLABORATION

McKinsey research shows that organisations that regularly innovate in partnership with suppliers are more likely to see the biggest earnings growthsometimes up to 10% more.

In this issue, we explore how organisations are seeking to make procurement and supply chain more strategic in nature as they seek competitive advantage in a tough market. Tapping into supplier innovation is pivotal to this.

We learn how digitalisation is changing the profile of procurement teams, for example. In the past transactional areas procurement – such as contracts – were people-heavy, but automation is freeing-up people’s time in these areas, giving scope for people to be strategic, and collaborative.

“The point of supplier programmes is collaboration,” CPO consultant and coach Elvire Regnier Lussier tells us. “You need strategic buyers and an entrepreneur mindset.”

Read on, for these and many other insights across logistics and procurement, as well as supply chain sustainability and tech. SEAN

SUPPLYCHAIN DIGITAL MAGAZINE IS PUBLISHED BY © 2023 | ALL RIGHTS RESERVED supplychaindigital.com 7
FOREWORD
ASHCROFT sean.ashcroft@bizclikmedia.com
“The point of supplier programmes is collaboration”
ELVIRE REGNIER LUSSIER, CPO CONSULTANT & COACH
CHAIN 014 016 020 SUPPLY CHAIN BUSINESSES 088 CONTENTS UP FRONT 014 BIG PICTURE Global crowds flock to shell out for lobster 016 LIFETIME OF ACHIEVEMENT Sven Markert, CSCO of Smart Infrastructure at Siemens, 020 INTERVIEW WITH Áine Fanning, Managing Director of the Cpl Talent Evolution Group
026 072 046 056 supplychaindigital.com 9 026 RHI MAGNESITA How refractories specialist RHI Magnesita transformed its supply chain and mindset 046 SUPPLY CHAIN Supplier innovation shaping the future of procurement 056 LOGISTICS Outsourced logistics in a post-pandemic world AUGUST 2 023 FEATURES

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066 078 AUGUST 2 023 supplychaindigital.com 11 066 SUSTAINABILITY Renewable energy supply chains under pressure 078 TECHNOLOGY Rich data is shaping supply chain stories 088 TOP 10 Supply chain businesses
Events Programme GET INVOLVED GET INVOLVED GET INVOLVED 6 - 7 Sept 2023 26 - 27 Sept 2023 11 - 12 Oct 2023 Business Design Centre London Business Design Centre London Online CONFERENCE & EXHIBITION CONFERENCE & EXHIBITION VIRTUAL EVENT
Adam Elman Head of Sustainability EMEA Google Musidora Jorgensen Chief Sustainability Officer Microsoft Nick Jenkinson Managing Director Verto Solutions Ltd Susan Spence VP, Sourcing Procurement & Accounts FedEx VP,
2023 GET INVOLVED GET INVOLVED GET INVOLVED 8 - 9 Nov 2023 18 - 19 Nov 2023 6 - 7 Dec 2023 QEII Centre London Online Online CONFERENCE & EXHIBITION VIRTUAL EVENT VIRTUAL EVENT
Geraint John VP, Interos Resilience Lab Interos Kate Rosenshine Director - Global Azure Technology Sales Microsoft Aravind Narayan Global Director - Sales Strategy & Execution Refinitiv (LSEG) Sam Clarke Chief Vehicle Officer Gridserve

BIG PICTURE

14 August 2023

Global crowds flock to shell out for lobster

Maine, USA

In the Northern Hemisphere, August is a prime month for food production – both from land and sea – and there’s no shortage of festivals to mark this abundance.

One is the Maine Lobster Festival, on the furthest reaches of the north-east coast in the US. American lobster – also known as Maine lobster – is the heaviest crustacean in the world, which Maine’s citizens, and thousands of tourists from across the globe, celebrate every year.

Maine’s lobster supply chain extends from trap to table, with the state handling catching, processing and distributing an estimated 3.2 million kilograms of lobster every year.

supplychaindigital.com 15

Siemens’ healthy supply chain is Markert’s value

Sven Markert has served Siemens with distinction for almost a quarter of a century. Siemens is a German multinational conglomerate and is the largest industrial manufacturing company in Europe.

The company specialises in intelligent infrastructure for buildings and decentralised energy systems, on automation and digitalisation in the process and manufacturing industries, and on smart mobility solutions for rail and road transport.

Markert’s first role with the company was as a consultant, when he was a lead on various projects for internal Siemens divisions.

He worked his way up to Senior VP Supply Chain Logistics, a position he held for a decade. Based in Switzerland and Germany, he was responsible for supply chain

– planning, sourcing, delivering, returning and enabling processes – in the Solution, Service & Product areas of the business.

He was direct lead for more than 1,500 employees in Switzerland, Germany and Asia, and had responsibility for a budget of €400mn (US$440m).

Various success stories building resilient supply chains

In his current role, he is responsible for the supply chain management of logistics, heading up more than 4,000 employees across multiple business units. He also manages and develops shared-service operations for customer services and logistics, as well as overseeing the digitalisation of SCM, including benchmark oriented processes.

Sven Markert, CSCO of Smart Infrastructure at Siemens, has seen a great deal in his long career, yet has never stopped learning
16 August 2023
LIFETIME OF ACHIEVEMENT
supplychaindigital.com 17
“All stakeholders and business units in supply chain and logistics are subject to continuous change”

“My belief is that the supply chain of the future must not only be robust but must also focus on the environment and the customer,” says Markert. “This requires smart, digitally supported decisions, especially in our dynamic world.

He adds: “The digital transformation helps us to do more with less, being more sustainable in our actions. This drives and motivates me.

“I aim for learning, and strive to improve every day, to have a positive impact – on customers, stakeholders, people, our environment and myself.”

Markert says he is “deeply rooted” in supply chain management, operations and finance, and declares his “passion for leadership”.

“Inspiring people to follow a vision, and seeing people grow and develop makes me happy,” he says, adding: “During my professional journey I have had the pleasure to try different things – from start-ups to global enterprises, and from managing an individual contribution to leading thousands of people. This has shaped me and it is not the end – it is just the beginning.”

Sustainability is also core to Markert’s work at Siemens.

“At Siemens, the topic of sustainability has been relevant since the 1970s,” he says. “But since then we’ve significantly expanded our approach.

“Today we’re working with a holistic framework that we defined ourselves and are taking our commitment to a new level,” says Markert.

“For us, there are many projects that are relevant in terms of sustainability –from small pilot projects in e-mobility through to intelligent transport control, and the entire planning of the supply chain. Here, the most important lever is overall network planning.”

Siemens currently has an estimated 500,000 products in the field, each with a unique product footprints – which Markert says means “we cannot rely on normal evolution to achieve our set goals”.

He adds: “All stakeholders and business units are currently subject to continuous change, and this also applies to supply chains and logistics. In the future, sustainability will be an equally important issue alongside those of costs, liquidity and performance.”

Markert feels business must act now on sustainability. “Just do it,” he says. “Don’t get stuck with discussions and analyses. These can also be smaller projects within a defined framework, for example from product development. But of course, there are also examples of this kind in logistics, such as the switch to electric vehicles with guaranteed green electricity.”

18 August 2023
SVEN MARKERT HAS BEEN WITH SIEMENS FOR 22 years and ten months
WATCH NOW LIFETIME OF ACHIEVEMENT supplychaindigital.com 19
“With sustainability, just do it. Don’t get stuck in discussions and analyses”

ÁINE FANNING

Áine Fanning, Managing Director of the Cpl Talent Evolution Group, on managing the skills revolution in procurement

INTRODUCE YOURSELF AND YOUR ROLE

» Cpl is a global provider of workforce solutions to organisations, with clients ranging from startup companies to multinational corporations. Cpl’s Talent Evolution Group is built from our need to not just provide, but evolve, solutions to meet our clients’ changing needs. Procurement leaders in our client organisations are often partners on these journeys. Our solutions range from contingent workforce programmes, through to crafting innovative solutions to new talent challenges.

BIGGEST SUPPLY CHAIN SKILLS GAPS?

» Supply chain functions have changed significantly in recent years; the right talent can be challenging to find at all levels across these teams. The biggest

skills gaps are at the operational level. This is most notable in the manufacturing and pharmaceutical industries in the warehouse and logistics spaces. There are also gaps in technology and business-intelligence supply chain roles.

Procurement is also going through its own revolution, requiring varied skill sets. It’s no longer just about suppliers and cost management, but also about supplier ecosystem development, and how this can bring value and innovation to organisations (while also driving ESG strategic agendas). This has led to the need for new procurement skill sets, in the areas of sustainability and diversity. We are seeing an increasing demand for technology-driven skills – from data analytics and automation to technology enablement across all supply chain functions.

INTERVIEW WITH...
20 August 2023
“Procurement is no longer just about suppliers and cost management but also supplier ecosystem development”

ÁINE FANNING

TITLE: MANAGING DIRECTOR

COMPANY: CPL

TALENT EVOLUTION GROUP

WHAT’S CAUSING THESE SKILLS GAPS?

» Technology transformation has meant supply chain and procurement professionals have had to review the skills needed in their teams, both today and for the digitally transformed future they’re working towards.

We have seen a rise in the skills requirements for agility, sustainability and resilience. This has led to new ways of working. Both traditional and new roles now require newer skills.

WHAT’S THE ANSWER TO SUPPLY CHAIN SKILLS SHORTAGES?

» As many ‘new’ skills are not part of current or traditional role requirements within supply chain and procurement, we have partnered with our clients to support their talent strategies. This might mean looking at a skills assessment in their organisation, and identifying future talent needs. Such partnerships can often lead to a multi-

INTERVIEW WITH...
“Tech transformation has meant supply chain and procurement professionals have had to review the skills needed in their teams”
“I believe embracing diversity in a talent environment enables companies to thrive,” says Fanning. “Recognising talent does not fit a singular mould.”
22 August 2023

tiered strategy, including components such as investing in upskilling the current workforce, as well as identifying and hiring new role-types.

There is greater emphasis now on how to screen and assess candidates based on transferable skills, aptitude and attitude over linear work and sector experience.

This might mean partnering with clients to develop talent-attraction strategies and bespoke recruitment marketing strategies, to target candidates who might have transferable skills sets but lack industry experience. Such people might not have considered careers in supply chain.

WHO INSPIRES YOU?

» My teams inspire me every day. Their focus on our clients and commitment to finding innovative ways to deliver the best solutions to meet our client needs creates an invigorating environment of both collaboration

and innovation. Even when times are challenging, and we must react quickly to clients ramping up or scaling down, the attitude, approach, and positivity of the team can make a challenging job much easier.

On a personal note, my mother has always been an inspiration for me, in her positive and respectful approach to everyone she encounters. This quality has enabled me to be a positive female leader, and to have authentic and meaningful partnerships with our clients.

BEST ADVICE EVER RECEIVED?

» To embrace change and find solutions to challenges, even if at first they seem out of the box. The value of this was demonstrated during the pandemic, when we all had to show adaptability and agility. We embraced ways of working that may have once seemed improbable, and major projects were able to be completed overnight.

WATCH NOW
supplychaindigital.com 23

The Portfolio

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RHI Magnesita’s pandemic problems: a catalyst for change

26 August 2023
supplychaindigital.com 27 RHI MAGNESITA
28 August 2023 RHI MAGNESITA
Simone Oremovic Executive VP People, Projects & SCM, RHI Magnesita

SIMONE OREMOVIC EXECUTIVE VP PEOPLE, PROJECTS & SCM, RHI MAGNESITA

“Asking for help is a sign of strength, not weakness”
30 August 2023 RHI MAGNESITA

33 Main production sites (incl. raw material sites)

100+ Countries shipped to worldwide

5 R&D hubs and centres

Overseeing RHI Magnesita’s supply chain – and much else besides – is Simone Oremovic, whose three-pillared title is EVP, People & Culture, Supply Chain Projects, and Integrations.

“Ours are not well-known products most of the time but are essential for our modern lives,” says Oremovic. “They’re needed in the production of steel, cement and glass. So the construction industry needs us. The car industry needs us. In mobile phones, there are components that couldn’t be produced without refractory.”

“If we stopped production,” she says, with a serious look, “we would stop steel-making production worldwide within a few weeks.”

Dolomite and magnesite are the core product the company uses, and these are extracted via mining activities.

“We have some mines ourselves,” says Oremovic, “but sometimes we need to buy raw material on the market.

supplychaindigital.com 31
Inspection during maintenance of a rotary kiln

The company’s biggest mine is in Brazil, and it also has mines in the US, China, Turkey and smaller ones in Europe, including Austria. “We obviously also try to match our production footprint to the existence of the raw materials,” she explains.

The pandemic was a huge challenge, and was the catalyst for RHI Magnesita to transform its supply chain, particularly around logistics.

The company has shifted from a very centralised global model to a much more regionalised model.

“We can say we’re a very reliable partner again for our customers, and that’s what counts”
SIMONE OREMOVIC EXECUTIVE VP PEOPLE, PROJECTS & SCM, RHI MAGNESITA
32 August 2023 RHI MAGNESITA
Mining at RHI Magnesita’s plant in Breitenau, Austria

EXECUTIVE BIO

SIMONE OREMOVIC

TITLE: EXECUTIVE VP PEOPLE, PROJECTS & SCM

COMPANY: RHI MAGNESITA

INDUSTRY: SUPPLY CHAIN

LOCATION: VIENNA, AUSTRIA

Senior Executive with 25 years of experience in the field of People & Culture, Communication, Project Management and Supply Chain. Experience gained in various industries as well as in consulting environment. Strategic partner with strong execution focus, roles in corporate and line function operations established a wide professional network thereby. Cultural sensitivity and language capabilities through multiple assignments and studies in different countries

worldwide. Strong external orientation through Board Member role with guest speaking at conferences and publications.

Specialties: HR Strategy, Leadership Development, Talent Management, Compensation & Benefit, Recruiting, Learning, Coaching, works council interface, Strategic portfolio management, Six Sigma Master Black Belt, agile project methodology, Internal communication, PR strategy, Supply Chain strategy, Logistics, IBP Cycle.

supplychaindigital.com 33
RHI Magnesita’s pandemic
catalyst
WATCH NOW 34 August 2023
problems a
for change

“Today it’s about being closer to our markets and customers – giving them the confidence we are here, and that the accessibility to our products is here.”

Such a transformation required that the company ask some fundamental questions of itself.

“The choice we faced is whether we wanted to be a transportation company in addition to being a refractory company? We asked this question because we were so disrupted by the pandemic, and this left us feeling so suddenly dependent on our transportation and logistics providers.” In the end, the company decided that

it did not wish to be a logistics company but that it did need to change its approach to transportation.

“We realised we could no longer be opportunistic, buying a container here, a container there, and cancelling one here or there. We needed partnerships.”

She adds: “We made a conscious choice to strike strategic alliances with transportation and freight forwarding companies. We needed them to commit to volumes, but also to a sustainability roadmap that we could embark on together. Data sharing was another important part of it.”

SIMONE OREMOVIC EXECUTIVE VP PEOPLE, PROJECTS & SCM, RHI MAGNESITA
“We made a conscious choice to strike strategic alliances with transportation and freight forwarding companies”
supplychaindigital.com 35 RHI MAGNESITA
RHI Magnesita sustainability

Setting itself down the route of partnerships also meant the company had to adapt its processes.

“With the processes, we opted for a transportation management system. We have invested in software but also new skills, capabilities and ways of working – because such things only work when you work holistically, from top to bottom.”

So what difference has the transformation made – both to RHI Magnesita and its customers?

“Before, things were very operational,” says Oremovic, “Once we had products to ship we looked at the best options to transport. We bought the transportation, and we shipped it. Now, three things are very different.”

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36 August 2023 RHI MAGNESITA

The first, she says, is the company’s data intelligence: “We know much better in advance how much we need, from where, to where, and what the best routes are. Our approach to quality and professionalism has changed.”

She adds: “It was a big investment, not just in tech, but also people. We’ve upgraded the team, and have invested in headcount. You need the right people with the right mindset and skills. Of course, you also need processes to help them.”

The second big change is its investment in information technology.

“Visibility is something we now have more and more in our company, not just in supply chain”
SIMONE OREMOVIC EXECUTIVE VP PEOPLE, PROJECTS & SCM, RHI MAGNESITA
supplychaindigital.com 37
RHI Magnesita’s plant in Veitsch, Austria
38 August 2023 RHI MAGNESITA
RHI Magnesita rotary kiln, Hochfilzen, Austria

“We have partners on the IT and system side, who have helped provide end-toend visibility,” she explains. “Visibility is something we now have more and more in our company, not just in supply chain.”

The third pillar of change is the company’s new-found partner ecosystem. JAS Freight Forwarding is one such partner. “They’re now an exclusive partner for us in certain regions,” says Oremovic.

RHI Magnesita’s partners have helped it shorten its supply chain in technology terms, even if physically it is the same size.

“Mines are mines,” says Oremovic. “They are where they are; you can’t move them. So the production footprint has not changed, but the demand planning has.”

SIMONE OREMOVIC EXECUTIVE VP PEOPLE, PROJECTS & SCM, RHI MAGNESITA supplychaindigital.com 39
“We knew we needed better transparency on inventory. How much coverage do we need? How regional can inventory be?”

She adds: “In the past we had a simplistic view. Sales tells you what you need to produce, make a demand plan, translate this into production, and that was it.

“But now, we challenge this much more. How much safety buffer is in the demand plan? How reliable is it? How good is the data? This is now the starting point.”

“A supply chain is optimised only when input data is reliable. This wasn’t any big system implementation. There was no big capital expenditure. It was a mindset change, and that’s often the hardest. It’s hard to tell every single salesperson to do things differently, but this is where we started.”

A big focus in the transformation process was on inventory.

“We knew we needed better transparency on inventory,” Oremovic says. “How much coverage do we need? How regional can the inventory be? How can we optimise the warehousing strategy? These were the kind of answers

we needed, so this is really optimising the core part of the supply chain, and it’s hugely important as it’s linked to working capital.”

Optimising transport was another area of focus. To do this, the company looked at a regional-for-regional model.

Oremovic says: “We rearranged our footprint, which was very complex for us, by looking at what production could be done somewhere else by product transfers. Product transfers can take months but we have done this in certain instances to regionalise things more.

“This is a learning out of the pandemic, because we saw how dependent we were on transportation, and how painful it was to see ports closed, borders closed and workforces being unavailable.”

This all means the company is also more resilient.

“We’re better prepared in terms of data, knowledge,

“We’re better prepared in terms of data, knowledge, transparency, and forecasting capabilities, which cannot be underestimated”
SIMONE OREMOVIC EXECUTIVE VP PEOPLE, PROJECTS & SCM, RHI MAGNESITA
40 August 2023 RHI MAGNESITA
RHI Magnesita quality control

transparency, and forecasting capabilities, which cannot be underestimated. We are better prepared because we have strategic partners but also because we are much more regional.”

So much for the benefits to RHI Magnesita of the transformation; what about the benefits to its customers?

“The biggest benefit for our customers is the reliability of our products,” says Oremovic. “At the end of the day, what’s a customer’s biggest need? They want products on time – so the big plus for them is that everything arrives in full and on time.“

But she concedes that certain customers prize other things just as highly as reliability.

“It’s also the service we give in addition,” says Oremovic. “Sometimes it’s the price component, or it’s also the fact that we are flexible in how we adapt certain products

13.5K+ Employees €3.3bn 2022 revenue €77mn Investment in R&D and Technical Marketing including low-CO2emission products

1.5K+ Active patents

RHI Magnesita sustainability
42 August 2023 RHI MAGNESITA

for customers. But ultimately, once you have an agreement with a customer they all want what they have ordered in time.”

“We have improved our delivery massively. We had moments where we had a very low-score percentage on deliveries, due to all these disruptions. Non-availability of raw material. Nonavailability of labour, due to COVID. Shifts that we had to shut down. Transportation that wasn’t available. Energy prices that were crazy.

“This is why we had to rethink. And now we can say we are a very reliable partner again for our customers. And that’s at the end of the day what counts.”

But amid all the changes, the biggest challenge was taking its people along with it on the transformation journey – something for which Oremovic was uniquely qualified.

“I came with 20 years’ experience of people and culture, particularly on leadership and integration work,” she explains. “This was the reason I was hired. I joined at a time when RHI and Magnesita merged – the numbers one and two in the market. They brought me in because of my people-management experience.”

She adds: “as well as people management, supply chain is a big part of my job. Some might say supply chain is very different to a people-and-culture job but I don’t think so, particularly when you get to executive level. You need a vision, you need to inspire, and to give guidance and clarity. You also need the right people with the right mindset and skills.”

supplychaindigital.com 43

COMING SOON AWARDS

2024

The Global Supply Chain Awards 2024 will be celebrating the very best in Procurement & Supply Chain with the following categories:

Procurement Transformation Award

–Digital Supply Chain Award –Global Logistics Award –Supplier Diversity Award –Supply Chain Innovation Award –Supply Chain Sustainability Award –Procurement Technology Award

Procurement Consultancy Award –Future Leader Award –Executive of the Year Award –Project of the Year Award –Lifetime Achievement Award

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SUPPLIER INNOVATION SHAPING THE FUTURE OF PROCUREMENT

Mere cost control can no longer be the sole focus for procurement, which now has to leverage supplier innovation to drive competitive advantage

McKinsey research shows that organisations that regularly innovate in partnership with suppliers are more likely to see the biggest earnings growth – sometimes up to 10% more.

Supply chain leaders, especially in procurement, already know this, because 88% of respondents to the survey – called Reimagining Procurement for the Next Normal – said they were already running joint-innovation initiatives with suppliers, or were planning to do so.

That report was published back in 2020, in the midst of a pandemic that was a catalyst for supplier innovation, as organisations sought to make procurement and supply chain more-strategic in nature. In the three years since, leveraging supplier innovation

has become pivotal to achieving competitive advantage.

Here, we share insight on the subject of supplier innovation, from three people extremely well-placed to comment. All were speaking as members of panel on a virtual event held by Digital Procurement World.

Elvire Regnier Lussier (ERL) is a former CPO with the L’OCCITANE Group and is now a CPO consultant and coach.

Mark Perera, (MP) is Chairman & Founder of Visibl, a supplier relationship management platform.

Alexandra Tarmo, (AT) is the newly named VP of Procurement Center of Excellence with American consumer health company, Kenvue, having previously been Head of Partnerships & Social Procurement with Unilever.

46 August 2023 SUPPLY CHAIN

Elvire Regnier Lussier

CPO CONSULTANT AND COACH

INDUSTRY: PROFESSIONAL SERVICES

Lussier is a former CPO with the L’OCCITANE Group, a French luxury retailer of personal care products and home products. “My vision is that regenerative procurement is the future of procurement,” she says.

Mark Perera

CHAIRMAN & FOUNDER

COMPANY: VISIBL INDUSTRY: SUPPLIER RELATIONSHIP MANAGEMENT

Perera founded Vizibl to support supply chain decarbonisation through effective supplier collaboration and innovation. “I am committed to driving sustainable and responsible procurement,” he says

Alexandra Tarmo

VP, PROCUREMENT CENTER OF EXCELLENCE

COMPANY: KENVUE INDUSTRY: HEALTHCARE

Before joining American consumer health company Kenvue, Tarmo was previously Head of Partnerships & Social Procurement with Unilever.

“I am a passionate procurement leader, embracing DE&I every day, and aiming to make the world a better place,” she says.

supplychaindigital.com 47

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How important is supplier collaboration?

MP: McKinsey’s statistics show that 70% of innovation comes externally, and also that those companies with mature, deep supply collaboration can increase the speed of commercialising innovation by 40%. So if you add those two numbers together – leaning in on the suppliers for innovation and the ability to commercialise it – it’s kind of a magic combination for organisations.

AT: At Unilever, during Covid, we were totally taken by the need for innovation. Our business totally changed.

We were not really doing hand sanitiser before but in a short space of time we had sanitiser products available in every country,

PROCUREMENT LEADERS PROCUREMENT FOLLOWERS

Following the global financial crisis (GFC), Procurement Leaders significantly outperformed Followers

42% higher cumulative TRS in the 5 years post crisis

~3 years faster recovery to pre GFC TRS

and this happened only because we had extremely high levels of collaboration. We had to learn how to do this in weeks –not months, as would be usual. We had to rethink processes internally and how we managed innovation, including how we onboarded many new suppliers.

How does digitalisation help supplier innovation?

MP: Innovation projects allow communications to flow in the right way across cross-functional teams. So digital helps break down the internal silos, but you’re also trying to optimise the relationship management side, and not just with big suppliers, but startups as well.

140 120 100 80 60 40 2007 ECONOMIC DOWNTURN RECOVERY GROWTH 2013
supplychaindigital.com 49 SUPPLY CHAIN
CUMULATIVE TRS PERFORMANCE, INDEXED TO 100 (FY2007)

Supplier-Enabled Innovation: Critical Success Factors

It’s important to engage with startups and understand their proof of concept (POC) and why they want to work with you, because that’s their livelihood, and they’ve invested a huge amount in that. So you need to know how that POC works, and then scale that up in your organisation.

ERL: Digitalisation is changing the profile of procurement teams. You had many people in charge of transactions but fewer in charge of supply relationship, or strategy. This is changing, as automation is helping free-up time on the transactional side, leaving more scope for people on the strategic side – the collaboration side.

How important are partnerships to innovation?

AT: At Unilever, the partnership strategy was built around three pillars, one of which was

innovation, but innovation that is responsible and transparent. And it’s also about being agile, using data analytics, because that’s how you continue to deliver value.

MP: Unilever is a great example of a company with purpose in how it works with its suppliers. Its commitments around stepping away from non-virgin plastics involves a huge amount of work with its suppliers, who are basically rebuilding its supply chain in order for it to do this.

It’s all about procurement with purpose –it’s about measuring the environmental, and economic impact.

In procurement, is it about getting the deal done, or innovation?

ERL: In the past, this is what happened, and it still happens. But we are all pushing hard to change this approach. There is a lot of

WATCH NOW
50 August 2023

% OF ASIA-PACIFIC PROCUREMENT LEADERS WHO SELECTED THESE AS THE TOP CHALLENGES THEY FACE BECAUSE OF THE COVID-19 CRISIS

34% Region specific shutdowns and supply disruptions

27% Impact on cash flow and P&L

17% Shifting market dynamics and value pools

15% Changing ways of working

7% Shortages created by volatile demand

supplychaindigital.com 51 SUPPLY CHAIN

room for procurement to improve, and to move towards what Mark calls ‘procurement with purpose’, what Alex was saying about transparency and trust. Unfortunately, buyers have been pushed to focus on price because this produces immediate savings, but long term this is not sustainable, and it destroys value – value in your supply chain and value on your own site.

MP: What we find is that organisations have to create a centre of excellence in terms of how they work with suppliers, and also startups. This can sit anywhere within the organisation; it doesn’t have to sit in procurement.

What we’re seeing in organisations with progressive procurement is they’re automating the transactional side, to free-up resources around business strategy, such as how organisations partner with their supplier

This is always linked into the CTO, the CMO or other commercial leads, depending on whether it’s on the growth, innovation or sustainability agenda.

So procurement is very much the facilitator of the innovation process, but it is not the owner of innovation.

Should you procure products, or product ecosystems?

ERL: It’s important a company has an overall strategic vision and that this is aligned with the approach of their procurement team. The team cannot by itself do anything.

Also, with regard to supplier programmes, the point of them is collaboration, because you need strategic buyers – you need an entrepreneur mindset. So this is the basis on which you should select suppliers to include in your programme, and digital is really going to help on this side.

LEADERS CAN RE-IMAGINE PROCUREMENT IN FIVE KEY AREAS
STRENGTHEN
SUPPLY CHAIN
RESILIENCE ZEROBASE CATEGORYSTRATEGIESAND VALUE CREATION DEVELOP PARTNERSHIPSSUPPLIER AND COINNOVATION
ACCELERATEDIGITAL ANDANALYTICS ADOPTION
52 August 2023 SUPPLY CHAIN
TRANSFORMTO AFUTURE-READY OPERATINGMODEL

MP: If you look in the pharma space, you’ve got new ecosystems around precision medicines [that look at the genetics, environment and lifestyle of a person in order to select treatment that could work best for them]. That’s a whole new value chain, and that’s what we’re seeing around ecosystems.

So if you take Unilever’s Home Care division, it has to create new value chains in the way it brings such products to market. So it’s not just one product to one surface –it’s the overall product line it’s delivering and it’s all about optimising these value chains.

Companies are taking a more holistic approach now to ecosystems and value chains’ they’re not merely managing them. All of which is driven by consumer needs, the need for personalisation and the need for speed of delivery.

With innovation, what’s in it for suppliers?

ET: It’s like getting married; you have to want to do it. It’s important when entering a partnership that you are clear about what your strategy is, and why you want to partner with someone.

Be clear on the objective, the KPI, and also be clear that sometimes we all need to adapt to a world that nobody can predict. It’s important we are very open about this, and that we transform around this.

So although you might have long-term agreements with suppliers, it’s good to aim for simplicity and flexibility. Life can get very complicated for suppliers, especially if they are a startup or a small company.

Strategy sharing ‘key to supplier relations’

New Vizibl CEO Richard Hogg says supply chain strategy sharing helps form “the fundamental basis for all other supplier engagement initiatives”.

He adds: “It serves to drive transparency and alignment between your organisation and its suppliers by clearly stating your strategic aims as a business.

“Strategy sharing should include short, medium, and longer term plans, and include a sense of the pains your business is responding to.

“This begins to give suppliers an idea of how they can strengthen their relationship with you based on your organisation’s priorities, and better meet and understand your needs.

“Ir should also be reciprocal, with suppliers invited to share their strategic plans for their own businesses.”

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OUTSOURCED LOGISTICS

IN A POST-PANDEMIC WORLD

More companies than ever are turning to 3PL and 4PL services as they seek to collaborate on logistics to avoid supply chain disruption

56 August 2023
supplychaindigital.com 57 LOGISTICS

an Myers is MD UK & I, for XPO Logistics, which provides innovative transportation solutions for some of the most demanding supply chains in the world.

Myers has been with the company for over 20 years and in that time has seen many changes, not least since the pandemic struck.

“Immediately after the pandemic, closedbook fixed-lane rates were the sought-after solution as businesses sought to control costs,” he says. “The pandemic drove brands to analyse expenses across the board due to shifts in supply and demand volume and the associated costs of each.”

But he says that since the start of 2023 “brands are thinking more strategically”, by “creating strategic alliances with partners to avoid any repeat of supply chain difficulties”.

“They are supplementing this approach with short-term bridging solutions and contracts,” he adds, going on to explain that in today’s market, logistics suppliers must give options in:

• Commitment

• Costs

• Sustainable solutions

• Multi-modal logistics

• Phased investment planning

• Flexible fleet types

• A 'dynamically balanced core' with a 4PL provision

In terms of what XPO Logistics has to offer as a 3PL provider, Myers says “we have enormous flexibility in the framework options we offer”, and adds that it also “matches the cost element management to the client’s objectives”.

He continues: “So we could manage capital expenditure investment to suit the client’s needs, for example but we also have a rounded capability to offer hybrid, core, and flexible solutions within the networks, allowing us to move with the client's journey, whatever that may be.”

Outsourced logistics on the rise

There is no doubt more firms today are outsourcing logistics than in pre-pandemic times, and Myers expects this trend to accelerate. “There are seismic changes taking place,” he says. “Some companies in specific

“Brands have understandable concerns when letting a partner control any aspect of their business”
supplychaindigital.com 59 LOGISTICS
DAN MYERS, MD, UK & I, XPO LOGISTICS
D

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sectors are investigating the cost differences between doing their own logistics and outsourcing them.

Fuel transition a point of focus Myers explains that the factor driving this is the push to outsource fuel transition, as businesses look to cut carbon emissions in their supply chains by turning from fossil fuels to greener alternatives, such as hydrotreated vegetable oil (HVO) and electric vehicles.

“Companies want the added resilience that working with a logistics specialist can offer a business,” he says “As sustainability

Dan Myers

TITLE: MD, UK & I

COMPANY: XPO LOGISTICS

INDUSTRY: LOGISTICS

Myers has a long history in the logistics and supply chain industry, and is skilled in operations management, warehouse operations, management, acquisition integration and business development.

becomes more important for every business, they are investigating options around this, by doing cost analysis and also gleaning ideas from third-party providers.”

He adds: “Businesses are considering handing sustainability challenges to a partner, along with cost challenges but are trying to cherry-pick parts of the supply chain.

“Rather than fully outsourcing to one provider, brands seek more partners and benchmarking. I see those already outsourcing, perhaps broadening the 4PL solution they are using.” Asked what determines if a firm needs a 3PL or a 4PL provider, Myers questions if there is really

supplychaindigital.com 61 LOGISTICS

3rd & 4th party logistics – what’s the difference?

Fourth Party Logistics (4PL) is the model of logistics whereby manufacturers outsource the organisation and oversight of their supply chain and logistics to a single external provider.

That provider is responsible for every aspect of supply chain management. The partner controls and manages warehouses, shipping companies, freight and agents.

4PL differs from 3PL in terms of the level of control over assets in the supply chain. In 3PL, there is a higher degree of dedicated assets to an operation. In 4PL, all assets are subcontracted, meaning the business buys capacity on the market as it is required.

This can lead to cost benefits, as the outsourcer does not carry the same fixed costs as operating in a 3PL environment. It also means they are more exposed to the market forces that impact pricing, and with capacity constraints, that could result in.

any meaningful distinction between the two.

“What makes a difference is having a logistics partner that can adapt to the needs of the business,” he says. “It’s about deploying whatever resources are needed – whether they are those of the company or of subcontract partners. “Ultimately, it’s all about moving goods from where they are to where they are needed, and by when they are required.

In terms of the benefit of outsourcing logistics to a single provider, Myers says this allows a business to receive “consistent consultancy support and informed decisionmaking from data and outputs in one place”.

“We recommend a single logistics group oversees all aspects of the 4PL solution”
DAN MYERS, MD, UK & I, XPO LOGISTICS

“There are several benefits to this,” he adds. “For example, it is possible to benefit from shared risk and scale to dilute stake – often with cost and capital expenditure support. Outsourcing is a partnership.”

Start point key in 3PL relationship

But as with any partnership, starting from the right point is crucial. “Finding an accurate start point is essential to ensuring the partnership is effective for all parties,” says Myers. “The start point needs to be precise, or it will get lost in blue-sky thinking.” He adds that another challenge is making sure that multiple voices don’t result in

information being mistranslated by the time it gets to suppliers. “Too many cooks really do spoil the broth,” says Myers. “As a result, essential and all associated in-house cost elements are often forgotten, and this is a significant task for the organisation paying the bill.”

He adds: “We always recommend a single logistics group overseeing all aspects of the 4PL solution, so the most significant cost savings can be identified through a thorough and rigorous cost-and-needs analysis.”

Of course, not every business feels comfortable outsourcing its logistics

supplychaindigital.com 63 LOGISTICS

The Future Is Bright | XPO

function. “Brands have understandable concerns when it comes to letting a partner control any aspect of their business,” Myers says. “For example, the impact of poor service or incomplete deliveries resulting in customer complaints is a valid issue if a company chooses the wrong logistics partner.

“This is why it’s vital to properly vet any

company you plan to work with before signing any contracts. At XPO, we are acutely aware of how the decision to outsource –that loss of accountability and perceived loss of control – can be worrying for companies.”

This is why, he says, XPO goes “beyond the norm” to ensure its customers are “fully integrated into the XPO Logistics family.” He adds that the company also ensures its staff are fully aware of all its customers’ needs and expectations.

Omnichannel

by 2030

“It can be challenging if a framework does not suit a customer’s needs or if the commercial comparison is inaccurate,” says Myers. “The other issue can be that sometimes brands glean the expertise and then try to put it into practice themselves. They have ex-3PL people operating their in-house logistics function, so they may feel no outsourced 3PL can do it better.”

WATCH NOW
retail is driving growth in the 4PL market, which is expected to hit US$89.95bn
64 August 2023 LOGISTICS
“We can manage capital expenditure investment to suit the client’s needs”
DAN MYERS, MD, UK & I, XPO LOGISTICS

RENEWABLE SUPPLY UNDER

66 August 2023 SUSTAINABILITY

RENEWABLE ENERGY SUPPLY CHAINS UNDER PRESSURE

Renewable energy is crucial to the global move to net zero but supply chain issues around clean energy are placing serious obstacles in the road

supplychaindigital.com 67
68 August 2023

Renewable energy is a key plank of decarbonisation, and the move to the net zero goals laid out by world leaders during the Cop26 conference.

With supply chains accounting for up to 80% of an organisation’s carbon footprint, the shift away from fossil fuels towards renewable energies, such as solar, wind and green hydrogen, will be pivotal.

Such a global undertaking was always going to encounter significant challenges, and it seems one of these is the supply chain itself of the renewable energy projects needed to drive our net zero ambitions.

A recent WTW report shows how the adoption of more renewable energies is being hampered by supply chain problems.

Willis Towers Watson (WTW) is a global advisory company that provides datadriven solutions around risk and capital that are designed to make organisations more resilient.

Its 2023 Renewable Energy Supply Chain Risk Report says that the rising price of raw materials, combined with supply chain shortages, bottlenecks and delays, are putting the future of many renewable energy plans at risk.

WTW surveyed 100 risk and supply chain leaders in companies providing technology, infrastructure and power generation in areas including hydro, solar, wind, biofuels, geothermal, battery storage and heat pumps.

supplychaindigital.com 69 SUSTAINABILITY
EXCLUSIVE WHITEPAPER How to Achieve Sustainability in the Global Electronic Supply Chain KEY THEMES: The Elements of a Sustainable Global Electronics Supply Chain How Companies Fall Short in Supply Chain Sustainability Solutions to Help Solve Supply Base Sustainability 1 2 3 DOWNLOAD NOW

Volatile energy costs a problem

Respondents say the rising cost of materials and labour – coupled with volatile energy prices – is impacting income and growth, potentially reducing the scope for future investment in the sector.

Difficulties in attracting and retaining talent (32%) also figures prominently as a supplier problem, as the industry faces major workforce challenges, as demand for green jobs outpaces the availability of qualified workers across the supply chain.

Other problems mentioned include shortages, delays, economic issues and geopolitical instability, while sustainability and cybersecurity are also concerns.

Contractors, suppliers and equipment manufacturers working on major renewable energy projects frequently share systems, adding potential entry points for malware into sensitive equipment.

TITLE: GLOBAL RENEWABLE ENERGY LEAD

COMPANY: WTW

INDUSTRY: ADVISORY SERVICES

Munday has been with WTW for seven-and-half-years, prior to which he was Renewable Energy & Power International Practice Leader for risk-management specialist, Marsh.

Steven Munday
supplychaindigital.com 71 SUSTAINABILITY

Darcy MacClaren

TITLE: CHIEF REVENUE OFFICER, DIGITAL SUPPLY CHAIN

COMPANY: SAP

INDUSTRY: PROFESSIONAL SERVICES

Darcy MacClaren is a strategic global leader who has spent 30 years growing, differentiating, and improving businesses through technology transformation with a focus on supply chain.

Cybercrime threat to clean energy

Solar farms and wind turbines are also typically in isolated locations and are controlled remotely by centralised computer systems, which increases their exposure to cybercrime.

On the subject of wind power, SAP Chief Revenue Officer for Digital Supply Chain, Darcy MacClaren, warns that complex logistics and regulations are hampering uptake of wind energy.

“The complexity of what needs to be done is what folks are struggling with,” says MacClaren. “The supply chain to do this is extremely complicated.”

“Complex logistics and regulations are hampering uptake of wind energy”
DARCY MACCLAREN, , CHIEF REVENUE OFFICER FOR DIGITAL SUPPLY CHAIN, SAP

MacClaren says the issue is that specialised materials are required to make the turbine blades, and adds that the logistics of transporting the blades – which can be as long as a football field – is also hugely challenging.

“Then you have to construct something in the middle of the ocean, which requires special ports and harbours,” she says, adding: “There’s also a lot of uncertainty about the scope of such a supply chain and the development time-frames needed to build these critical resources.”

MacClaren also cites as complicating factors the level of investment required,

that there are “gaps in manufacturing” and that “ports and vessels remain uncertain”.

Regulation is another sticking point, she says.

“It’s not just regulations from the federal government, but also from myriad local municipalities that have a say,” she explains. “This can impede production, which adds risk and impacts the investment needed to bring these projects to fruition.”

She adds: “You’ve got to break down those barriers. You’ve got to get all these organisations working together.”

MacClaren stresses that technology can help, from a design, procurement,

supplychaindigital.com 73 SUSTAINABILITY

Transforming the Clean Energy Supply Chain

supply chain, logistics and manufacturing perspective.

“We can help set up a sustainable, resilient intelligent supply chain with all these involved parties,” MacClaren said. “If we can solve the uncertainty of the regulation issues people are concerned with, then we establish a strong foundation to help create a supply chain for offshore and the wind energy industry.”

MacClaren calls for “a catalyst, an industry proponent” to “blast through obstacles” and to “bring disparate parties together, to get a viable industry off the ground”.

“We need an Elon Musk,” she added, referring to Tesla’s ability to successfully mass produce and sell electric cars. “We need a change agent, and I’m not seeing that.”

Returning to the big picture concerning renewable energy supply chain problems, the WTW report underlines the sector’s

WATCH NOW SUSTAINABILITY
“Renewable energy is no longer a power sector but a technology sector”
STEVEN MUNDAY, GLOBAL RENEWABLE ENERGY LEAD, WTW

EC amends clean energy regulations

An important European Commission (EC) clean energy regulation has been widened to encourage EU member states to roll-out clean energy infrastructure on the rail network.

The EC’s Alternative Fuels Infrastructure Regulation (AFIR) originally targeted electric recharging and hydrogen refuelling infrastructure for the road, maritime and inland ports detectors, as well as electricity supply to stationary aircraft. Now, it also includes rail.

The move will speed progress on EU Green Deal objectives, a set of EC policy initiatives whose aim is to make the EU climate neutral by 2050.

Under the regulation change, EU member states can assess the development of alternative fuel technologies and propulsion systems for rail sections that cannot be fully electrified for technical or costefficiency reasons.

At present, 80% of train-kilometres in Europe run on electric energy, a growing part of which comes from renewable sources. However, just 54% of the European rail network is currently electrified.

dependence on critical supplies, where the lack of even one essential item can hold up work on an entire project, which can be costly at a time of high demand.

Clean energy ‘all about the tech’

One of the report’s co-authors, Global Renewable Energy Lead, Steven Munday, says the key thing to bear in mind about renewable energy is that “it’s no longer a power sector but a technology sector”.

Speaking as part of a WTW podcast on renewable energy, he adds: “Renewable energy technology is moving ahead incredibly quickly. That does impact throughout its lifecycle in terms of origination, procurement, construction, and operations.”

He adds that, as well as new technologies emerging around renewable energy, there is also an “upscaling of existing technologies”, including hydrogen, battery storage and wind technologies.

“All of this equipment has to come from somewhere,” he points out, “and we are seeing that the original equipment manufacturers of all technologies are trying to produce sufficient amounts for what is required globally.”

He adds: “That is very difficult, and it is challenging the supply chain, particularly after the pandemic, and we are seeing that there is a major impact on projects’ timelines.” Munday adds that pre-pandemic, renewable energy companies were “in a race to deliver as quickly as possible”, and that

sometimes this impacted quality, “especially if there were challenges with the workforce not having the right experience”.

He says post-pandemic, there is now “a move away from less experienced workforces” around renewable energy and also a shift away from ‘just-in-time’ delivery of projects.

He says lessons have been learned from the pandemic, with regard to supply chain interruption and availability issues, and that this is prompting organisations “to be more considered about renewable energy projects and to make sure power transformers, wind turbines or electrolysers are available at an earlier stage “to mitigate potential supply chain delivery and to avoid delay damages”.

“As well as new technology around renewable energy there’s also an upscaling of existing tech”
supplychaindigital.com 77 SUSTAINABILITY
STEVEN MUNDAY, GLOBAL RENEWABLE ENERGY LEAD, WTW

RICH DATA IS SHAPING SUPPLY CHAIN STORIES

78 August 2023 TECH & AI

Software company Epicor is using datarich solutions to help customers build responsive and resilient supply chains

supplychaindigital.com 79

The fourth industrial revolution –Industry 4.0 – is all about interconnectivity. It marries physical production and operations with smart technology, and the goal is to help businesses improve quality, reduce risk and minimise cost. It’s a mix of software (AI and ML) and hardware (RFID devices that feed into the Internet of Things).

But the true currency of Industry 4.0 is data, which properly managed, allows unprecedented levels of transparency, automation, insight and control. One business that has placed data at the centre

of its operations is Epicor, an IT company whose specialist areas include supply chain, inventory, distribution, and manufacturing production management.

Epicor says it wants to ‘tell stories’ with data, which is why it has changed tack on its hiring strategy, and is now building a data scientist team.

Tim Hardin is SVP Global Data & Extend Services with Epicor, and has been with the company for three years.

“When I first joined I didn’t think that 10 months in, we’d have hired a data science

80 August 2023 TECH & AI
supplychaindigital.com 81

290 million VEHICLES ARE REGISTERED IN THE INDUSTRY THAT ARE TARGETED BY EPICOR CUSTOMERS

team that includes people with PhDs in data analytics,” he says in an interview with ITS data partner company, Microstrategy. “It’s exciting, and I think the results are going to bear themselves out soon.”

Hardin references the automotive space as one in which Epicor is focused on using data to “inform on inventory volumes” and making sure that its customers can “make sure they have the right part at the right place at the right time”.

Working towards this, Epicor is focused on taking the entire value chain from the manufacturer, distributors, and all repair shops, and giving them a daily reading, on-demand. To this end it has built a realtime online picture of all inventory across all channels. Analytics ties its entire supply chain together.

Tim Hardin

TITLE: VP GLOBAL DATA & EXTEND SERVICES

COMPANY: EPICOR

INDUSTRY: IT

LOCATION: USA

Hardin has been SVP Global Data & Extend Services for nine months.

Before that he was Senior Vice President & GM, Auto & Vista Analytics with the company.

The company’s next move is to take this to the next level, to the point where it is behaving prescriptively and predictively – anticipating and managing demand for its customers.

Industry 4.0-enabled data solutions mean Epicor is evolving quickly.

“Over the years, we’ve provided a lot of value to the automotive aftermarket, but the natural gravity of the marketplace has pulled us in directions we might not have thought about a couple of years ago.”

He adds: “For example, we have organisations in extended-service warranty asking us for information that can help them understand how they can deliver that product to market.

“We have organisations on Wall Street coming to us, for KPI data that tells them where the market is going.

“So that has shifted our thinking around the products we deliver. And that’s really more of a pull from the marketplace, not necessarily something that we’re pushing.”

The forces of change mean Epicor now has the ability to measure failure rates for car parts, which means that information can be shared with any company that has a stake in the owner-experience of a vehicle.

“The data we provide is opening up new opportunities and new channels”
TIM HARDIN, SVP GLOBAL DATA & EXTEND SERVICES, EPICOR
supplychaindigital.com 83 TECH & AI

The shifting concept of car ownership is also changing the way Epicor looks at its markets.

“Who is really going to own the cars of the future?” asks Hardin. “Is it a fleet? Is the fleet going to be basically shared ownership of cars? So we’re looking at the value proposition of how repair is going to be managed in terms of the service to end consumers.

“It all starts with knowing just one piece of information, and telling different stories with it, and going in different directions. If you can predict demand for a part on any one vehicle, that story can be told in different ways.”

As for the future, data will play an evergrowing role in what Epicor is able to offer customers.

“There are about 290 million vehicles registered in the industry that are targeted by our customers, and around 100 million repair events every single year,” says Hardin.

He says the company captures multiple “touchpoints” around every single repair event, examining choices made by the repair

shops around the ordering of one branded part over another.

“The aim is to add value to these choices,” he says, “so we our can track the purchase of expensive parts, less-expensive parts and economy parts, and help supply chain vendors properly price and position products based on where they see behaviour and choices going.”

In short, Epicor has a picture of every item of inventory in every location every single day, with data analytics painting pictures everyone in the industry can reference and work from. Ultimately, Epicor is looking to coordinate, optimise and build-out efficiency across an entire industry.

EPICOR LOGS AROUND 100 million
supplychaindigital.com 85 TECH & AI
AUTOMOTIVE ‘REPAIR EVENTS’ EVERY YEAR

Why Market Leaders are Transforming to Industry 4.0

Manufacturing ‘still at Industry 4.0 pilot stage’ – SAP

A SAP-commissioned global supply chain survey shows that manufacturing chiefs recognise the need for Industry 4.0 technology to increase supply chain resiliency, but that many are yet to progress beyond the piloting stage.

It found that manufacturing leaders are more likely than those

ONLY 36% HAVE DEPLOYED PREDICTIVE ANALYTICS

in other functions to deploy intelligent technologies at scale to improve predictive analytics capabilities. Predictive analytics is the use of algorithms, machine learning and data mining to analyse historical data and make predictions about future events or trends. It gives organisations insight into customer behaviour and market trends. This feeds moreinformed decisions, improves customer satisfaction, reduces risks and increases profitability.

Despite this, just 36% of the 1,000 survey respondents said they have deployed predictive analytics in any part of their enterprise.

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TECH & AI

To help it handle such huge volumes of data, the company has turned to data specialists MicroStrategy, who collect the data and make it visible to everyone in the supply chain, which facilitates collaboration between manufacturers and distribution groups

“We have 1,700 customers,” says Hardin. “These are independent shops that leverage our customer-relationship management (CRM) platform, and this is the endgame for everything that we’re doing.

“As much as we focus on understanding patterns with parts, the supply chain and failure rates, ultimately what matters is the relationship with the consumer.”

Hardin says the data Epicor has today, when made visible at every level of supply chain, will create a channel-level CRM.

“Everybody in the value chain – from manufacturers all the way down – will want to influence a relationship of some sort with the end consumer,” he says.

He adds: “The connectivity we provide via data at all levels has created a sub-vertical for us, whereby marketing organisations within manufacturers are asking us to help them understand better how they can drive a better customer experience.

“It’s opening up new opportunities and new channels. We’re now having conversations at the C-suite level with marketing officers and those are responsible for customer experience” which is detrimental in a risk scenario.”

“Ultimately everything always comes back to the relationship with the consumer”
TIM HARDIN, SVP GLOBAL DATA & EXTEND SERVICES, EPICOR
supplychaindigital.com 87

SUPPLY CHAIN BUSINESSES

The world’s leading businesses either working directly in supply chain, supporting the supply chain industry and whose supply chains help shape our daily work and home lives

Supply chains shape and serve consumers and businesses alike. Multinational organisations in the B2C and B2B spaces keep our home and work lives ticking over. Other businesses – specialists in logistics, cloud technology, AI & ML and software services – make sure that the world’s supply chains are resilient and efficient.

TOP 10
88 August 2023
WATCH NOW supplychaindigital.com 89

Johnson & Johnson

Johnson & Johnson (J&J) is one of the world’s largest healthcare and life sciences companies. Sectors it serves include pharmaceuticals, medical devices and consumer healthcare products. Globally, J&J employs an estimated 135,100 employees worldwide.

Its pharma offerings see it develop and manufacture an array of prescription drugs, including treatments for oncology, immunology, cardiovascular diseases and infectious diseases.

Its medical devices division produces products, such as surgical equipment, orthopaedic devices, diagnostic tools and contact lenses. J&J’s consumer health division, meanwhile, manufactures and sells wellknown brands such as Band-Aid, Listerine, Neutrogena, and Tylenol (in the US).

Oracle 09

Oracle is a multinational technology company develops and provides enterprise software products and services. “Our mission is to help people see data in new ways, discover insights, unlock endless possibilities,” it says.

The company is best known for its widely used relational database management system, Oracle Database, which helps organisations efficiently manage and store large amounts of structured data.

It also offers consulting and support services, to help customers implement, customise and maintain their software solutions.

10
90 August 2023

Accenture

Employing an estimated 624,000 people in 200 cities across 50 countries, Accenture provides solutions in strategy, consulting and operations in the space between business and technology.

Its expertise spans 40 industries and all business functions. To expand the scope of its knowledge across the areas it covers, Accenture acquires specialist consultancies, with Avieco and Greenfish in the sustainability space just two among many examples.

On logistics, Accenture helps client companies design 4PL operating models, typically featuring a network of control towers that coordinate regional and global transport that are orchestrated by 4PL providers.

Deloitte

Deloitte is an umbrella brand for several global independent firms, comprising tens of thousands of dedicated professionals specialising in audit, consulting, financial advisory, and tax.

One of the Big Four accounting organisations, it offers financial accounting and regulatory services, including those around sustainability requirements. Deloitte works collaboratively and dynamically by bringing together multidisciplinary teams of people with diverse perspectives, skills, and expertise.

The firm, founded in London in 1845, serves a number of industries including energy, life sciences and technology. It currently employs an estimated 330,000 people across 150 countries.

08 07 TOP 10 supplychaindigital.com 91 WATCH NOW
TOP 10 26 - 27 September 2023
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Business

Nestlé

Nestlé is one of the world’s largest food and beverage companies. It operates in 190 countries and its product portfolio includes householdname brands such as Nescafé, KitKat, Maggi and Purina, among many others.

It has invested heavily in its global supply chain, with key areas of focus being ESG leadership, reducing packaging waste and new business models to improve end-to-end supply chain.

Switzerland-based Nestlé has a ‘Creating Shared Value’ strategy that drives sustainability through partnerships with suppliers and environmental organisations, as well as with other corporations. The company says its supply chain professionals “play a critical role in ensuring quality and sustainable products reach our customers and consumers”.

IBM

IBM describes itself as a company that “brings together all the necessary technology and services – regardless of where those solutions come from – to help clients solve the most pressing business problems”.

IBM integrates technology and expertise, providing infrastructure, software – including market-leading Red Hat – and consulting services for clients as it “pursues the digital transformation of the world’s mission-critical businesses”.

“Our clients’ systems support modern society,” says IBM Chairman and CEO Arvind Krishna. “In making them faster, more productive and more secure we don’t just make business work better. We make the world work better.”

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Apple 04

Consumer tech giant Apple is one of the world’s most valuable companies. Its iconic and hugely popular product line includes the iPhone, iPad, Mac desktop and laptop computers, the Apple Watch, Apple TV, as well as numerous software apps, such as GarageBand.

In August 2021, Apple became the first publicly traded US company to reach a market capitalisation of $2 trillion.

Outside of its core product range, Apple also runs a global chain of Apple Stores, and in recent years it has expanded its offerings to include content and entertainment services around music, TV, gaming and fitness.

Unilever 03

Unilever is a multinational consumer goods operation with a rich heritage that dates back to the 19th century. Its purpose is “to make sustainable living commonplace by offering products that enhance people’s well-being and contribute to a more sustainable future”, it says.

Unilever operates in three main areas: Beauty & Personal Care, Home Care, and Foods & Refreshment. Within these categories, the company offers a diverse portfolio of wellknown brands including Dove, Lifebuoy, Omo, Cif, Domestos, Knorr, Lipton, Magnum, Ben & Jerry’s, Hellmann’s, and Wall’s ice cream.

Unilever says it “strives to be a responsible and trusted company that contributes to a more sustainable and equitable world”.

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Amazon

Founded in 1994 by Jeff Bezos, Amazon started as an online marketplace for books but today is a global leader in e-commerce, cloud computing, digital streaming, and AI.

Beyond retail, Amazon has diversified into B2B services. Amazon Web Services (AWS) is a cloud computing platform offering cloud services, including computing power, storage, database management and AI.

It has also built a vast logistics infrastructure, to ensure fast and efficient product delivery, operating fulfilment centres worldwide. It also employs its own last-mile network, and has introduced innovative delivery methods such as Amazon Prime Air, an unmanned drone delivery system.

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Microsoft

Microsoft’s mission is “to empower every person and organisation on the planet to achieve more”. To this end, it creates innovative tech solutions that enable individuals, businesses, and communities to realise their full potential.

Microsoft is known for its flagship operating system, Windows, which powers a majority of PCs worldwide. It also develops and distributes

software including the Office Suite, Azure cloud platform, and Visual Studio development tools.

Microsoft Azure, meanwhile, is a cloud computing platform that provides infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS) solutions to businesses in sectors including computing, storage, networking, analytics and AI.

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