Supply Chain Digital Magazine – January 2020

Supply chain management strategy the key to global expansion

J A NU A R Y 2 0 2 0

www.supplychaindigital.com

COCA- COLA AMATIL TRANSFORMING THE PNG SUPPLY CHAIN Simon Robinson, Head of Supply Chain, PNG, details the transformation that has returned Coca-Cola Amatil’s supply chain to growth in the country

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FOREWORD

W

elcome to the January edition of Supply Chain Digital!

Our cover feature this month zones in on Coca-Cola Amatil as we speak with Simon Robinson, Head of Supply Chain, to discuss the supply chain growth achieved at the organisation. “A lot of the growth came through the improvement of what we call OEE, which is the plant efficiency,” says Robinson. “Basically we can sell every case we can make, so sales are not an issue.

Every 1% improvement in operational efficiency went straight to volume and straight to revenue.

Improving the efficiency of those lines was the major driver of the growth in 2019.

This month’s leadership column hears from Corinne Goldberg, Man-

Elsewhere in the magazine, Nic Walden, UK procurement programme leader at The Hackett Group, talks digital transformation in procurement and Georgia Wilson travels to Germany to speak with DHL and tour the company’s Innovation Center.

You also won’t want to miss in-depth features with Five Guys Enterprises, McPherson’s Consumer Products, OCS Group UK, G4S and Sensient Technologies Corporation.

Finally, this issue’s Top 10 takes a closer look at the industry’s leading procurement executives.

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

ager at Deloitte, to discuss the

Enjoy the issue!

impact of digitisation in the supply

Sean Galea-Pace

chain space. www.supplychaindigital.com

03

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Click the home icon (top right of page) to return to contents page at anytime EDITOR-IN-CHIEF

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CONTENTS

30

42 54 64 78 Events & Associations

CONTENTS

84

Five Guys Enterprises

98 McPherson’s Consumer Products

CONTENTS

112 OCS Group UK

124

166

G4S

PepsiCo

138 Sensient Technologies

COCA-COL 12

TRANSFORMI SUPPLY WRITTEN BY

WILLIAM SMITH

PRODUCED BY

CAROLINE WHITELY

JANUARY 2020

LA AMATIL 13

ING THE PNG Y CHAIN w w w.suppl yc ha i ndi gi ta l. com

C O C A - C O L A A M AT I L

SIMON ROBINSON, HEAD OF SUPPLY CHAIN, PNG, DETAILS THE TRANSFORMATION THAT HAS RETURNED COCA-COLA AMATIL TO GROWTH IN THE COUNTRY

O

ne of the world’s major Coca-Cola bottling companies, Coca-Cola Amatil (CCA) serves the Oceania region, incor-

porating Australia, New Zealand, Indonesia, Fiji, Papua New Guinea (PNG) and Samoa. Simon Robinson is Head of Supply Chain in PNG, operating across production, planning, logistics, quality, safety, environment, engineering and capital pro14

jects, and previously served as National Logistics Manager in Indonesia. It’s an experience Robinson brought to his current role, where, with support from the Indonesian team and local suppliers, he has transformed the Supply Chain and returned CCA PNG to double digit growth.

CCA has been operating in PNG for 28 years with a Supply Chain network consisting of two plants, five production lines, six distribution centres, 40 products and over 800 customers. Despite strong consumer demand and high market share, volume growth stalled primarily due to an inability to supply. Internal process issues across manufacturing efficiency, inventory accuracy, planning and logistics were affecting growth and the supply chain had become a growth inhibitor.

JANUARY 2020

15

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C O C A - C O L A A M AT I L

16

To resolve these issues, the busi-

“Implementing daily stand up meetings,

ness implemented a back to basics

control boards and disciplined routines

operational excellence framework.

was an important part of the program.

Supported by a team of subject matter

Implementing controls around raw

experts from Indonesia, sponsored

materials ordering, demand planning,

by Gigy Philip, Supply Chain Director

procurement and inventory man-

(Indonesia) and led by Agus Salim,

agement, was important to stop the

Technical Manager (Indonesia), who

leakage of profit out of the business.”

focused on optimising the end-to-end

A major focus for the team was on

supply chain. “One issue was just

operational excellence within manufac-

around process and control, trying

turing. “There was a dedicated team

to give some structure to all of the

working on building local capability,

basic processes that are required to

optimising the equipment and upgrad-

run a supply chain,” says Robinson.

ing utilities within manufacturing to

JANUARY 2020

CLICK TO WATCH : ‘COCA-COLA AMATIL BRAND VIDEO’ 17

get the lines operating at the speeds

guys could see, on a week-to-week

that they’re capable of running at,”

basis, the improvements that they were

says Robinson. “That was the real

making, and it wasn’t led by manage-

crux of the way we’ve changed the

ment, it was led by this small group

business around. In a business where,

of subject matter experts.” In the end,

historically, demand exceeds supply,

he says, “it was about collaboration.

every 1% improvement in operational

Each function had been working in

efficiency goes straight to volume and

a silo and we had poor relationships

revenue. Improving the efficiency of

with suppliers. The creation of that

those lines was the major driver of the

collaboration and interdependence of

growth in 2019.”

all the functions as well as improving

Robinson credits the introduction

partner supply agreements enabled

of the small team with injecting a new

a business turnaround. Now, almost

level of energy and enthusiasm. “The

12 months later, operational efficiency w w w.suppl yc ha i ndi gi ta l. com

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20

has improved around 15%, driving an

about regaining respect and pride in

even higher growth in volume and reve-

the business from both our suppliers

nue in a relatively flat economic market.”

and our people. The process also

Operations weren’t the only piece

involved reaching out to engage those

of the puzzle, however, with a focus on

who had previously been ignored. “We

culture also prevailing. “We did a lot of

started to conduct town-halls where

work around engagement in a bid to

we listened to the people in order to

bring people together,” says Robinson.

understand what they were trying to

“We had a philosophy of ‘one team,

tell us. We have groups in each region,

one goal, no limits’, and that became

at a local level, understanding what the

a theme which was able to galvanise

team and the people are telling us, and

everyone in the organisation. We were

then building that back into the initia-

obviously trying to achieve volume

tives that we’re doing in those regions.”

and revenue targets, but it was also

Aside from listening, Coca-Cola Amatil

JANUARY 2020

also endeavoured to educate. “Another initiative originally from Indonesia was our Supply Chain Training Academy.

It’s about building technical capability at the base operator level right up to supervisors, and up-skilling the entire workforce over a 12 to 18 month period.”

In July 2019, PNG was awarded the

“ WE HAD A PHILOSOPHY OF ‘ONE TEAM, ONE GOAL, NO LIMITS’” — Simon Robinson, Head of Supply Chain, PNG, Coca-Cola Amatil

Supply Chain Best Practise Award at

E XE CU T I VE PRO FI LE

Simon Robinson Simon Robinson is an experienced Supply Chain Manager with more than twenty years’ experience across global FMCG businesses, including Coca Cola Amatil (CCA), Lion Nathan and Mitsubishi Motors. He has specific expertise across Sales and Operations Planning, Logistics and Route to Market, Business Transformation, Digital Supply Chain and Customer Service. Before joining the PNG business in 2019, he recently completed a major transformation of Route to Market and Logistics for the Coca Cola Amatil Indonesia business resulting in significant savings and customer service improvements. He is an advocate for digital supply chain transformation having initiated and managed several major SAP implementations across warehouse, transport and asset management systems, and sees technology as a core enabler for delivering both sustainable process change across large organisations and breakthrough improvements in efficiency and customer service.

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21

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23 the Coca Cola Asian Supply Chain

system which tracks line performance

Conference, in recognition of the

by the hour,” explains Robinson. “If we

transformation achieved in the first half

should have made 2000 cases, but

of 2019, beating out over 20 others

we only made 1000, it will report the

including large bottlers from Japan,

issues behind that on an hourly basis

China and Australia.

and allow us to track and address it.”

Despite the challenges in a country

Quinsys, meanwhile, is about auditing

such as PNG, technology has had a

good manufacturing practice. “People

significant part to play in the transfor-

can go around the plant and put into

mation. Two complementary systems

the system any hazards or issues

originally introduced in Indonesia

that they find. It gives us a really good

were brought in, the Electronic Short

tool to manage our safety and quality.”

Interval Control (ESIC), and the Quality

Going live in January 2020 is a new

Information System (Quinsys). “ESIC

ERP, Microsoft Dynamics. Replacing

is a homegrown production control

existing legacy systems, Robinson is w w w.suppl yc ha i ndi gi ta l. com

C O C A - C O L A A M AT I L

“ IT’S HARD TO DESCRIBE HOW IMPORTANT THE COCA-COLA BRAND IS TO THIS MARKET” — Simon Robinson, Head of Supply Chain, PNG, Coca-Cola Amatil

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JANUARY 2020

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At Orora, we believe packaging touches lives, together we deliver on the promise of what’s inside.

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EastWest Transport (EWT) is one of Papua New Guinea’s largest multifaceted transport and logistics companies. Based in Port Moresby, with a significant presence in Lae, Wewak, Madang, Rabaul, Kavieng, Kimbe and Alotau. EWT operates across a wide spectrum of transport-related activities including bulk fuel, containerised freight, break bulk cargo and offers depot services such as equipment hire, warehousing and yard storage. EWT also offers a licensed customs cargo clearance service in Lae & Port Moresby. The company makes use of its close relationships with sister companies in shipping & stevedoring and offers specialised project solutions for the mining, oil & gas sectors.

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27

confident that “the new ERP system

bills to the shipping companies,” says

will make sure that everybody is work-

Robinson. “Now we’ve put trackers

ing off of the same plan. By putting

on all the containers so that we know

in Microsoft Dynamics we’ll give our-

whether they have reached the desti-

selves an ERP system that will enable

nation, which also enables us to track

us to integrate all our data onto one

them all the way back.”

platform, manage process compliance and sustainable change.”

There are also a few technologies

Another initiative was based around transforming relations with suppliers from transactional relationships to

with region-specific utility, particularly

business partners. “Good examples of

GPS trackers. “We essentially deliver

those improving supplier relationships

everything in shipping containers, but

are demonstrated by key suppliers such

after delivery, we tended to lose track

as Orora (cans) and BOC (Carbon

of them and end up paying detention

Dioxide), where we were able to move w w w.suppl yc ha i ndi gi ta l. com

C O C A - C O L A A M AT I L

1960

Year founded (PNG)

22

Provinces reached in PNG

670

Number of employees

28

from regular supply issues, due to poor

consolidated our transport and ship-

planning and communication, to value

ping suppliers into companies such

added relationships where we are

as Bismark (a local vessel cargo sup-

proactively working together to drive

plier) and East West Transport which

shared growth and cost efficiency

is giving us better control, capacity

through design innovation and joint

and scaled efficiency to support our

long term planning,” says Robinson.

growth. On the production side we

“Labelmakers Group is our new label

engaged our plant suppliers such as

supplier, and brings innovative ecom-

Krones to provide technical and engi-

merce and design capabilities, such as

neering support to maximise output.

digital printing, which we are looking to

These relationships were all instrumen-

exploit for our 2020 consumer promo-

tal in turning around performance.”

tional programs. In logistics we have JANUARY 2020

“In summary, what we learnt is that

29

frameworks like operational excel-

chain improvements and investments

lence can still drive total business

to ensure its supply matches the vora-

performance,” says Robinson. “They

cious demand in the region. “It’s hard

are proven methodologies, replica-

to describe how important the Coca-

ble and low cost. Engagement and

Cola brand is to this market. Right

capability building, internally and

now, we can sell every can of Coke

externally, with suppliers was key to

we can make for the foreseeable future

delivering sustainable improvement

– it’s just an amazingly popular PNG-

and using digitalisation and technology

made product.”

is important to deliver compliance and sustainability to the change.”

As for the future, the company is planning its next phase of supply w w w.suppl yc ha i ndi gi ta l. com

LEADERSHIP

30

Embracing change in the supply chain space Corinne Goldberg, Manager at Deloitte LLP, discusses the impacts of digitisation in the supply chain industry WRITTEN BY

JANUARY 2020

SEAN GALEA-PACE

31

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LEADERSHIP

C

hange. It’s a word that’s been frequently used in the supply chain space over the past few years.

With digitisation having an ever-increasing effect

on how businesses conduct operations, it is more important than ever before to evolve with the latest trends. Empowering companies to do just that is Corinne Goldberg, Manager at Deloitte LLP. Deloitte is considered one of the world’s “Big Four” 32

professional services networks alongside PwC, EY and KPMG and serves four out of five Fortune Global 500 companies. Goldberg is a technology implementation enthusiast with cross-industry experience. As part of Goldberg’s role, she advises global organisations on the design and delivery of best-in-class risk management programmes through technology adoption, supporting businesses to streamline efficiency, reduce costs, and mitigate exposure to supply chain risk. In an exclusive interview with Supply Chain Digital, Goldberg discusses the influence new technology is having on the supply chain industry.

JANUARY 2020

33

“The introduction of AI-enabled technology has changed the landscape for organisations” — Corinne Goldberg Manager, Deloitte LLP

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LEADERSHIP

34

What are the biggest challenges

reputational damage, and opera-

companies face to manage their

tional disruption. Without adequate

supply chain effectively?

visibility over a supply chain, an

Although organisations are aware of

organisation is unable to build resil-

the importance of maintaining visibility

ience by putting in place appropriate

over their supply chain, the reality is

controls and governance to manage

that there tends to be limited transpar-

and monitor its network of partners.

ency due to the complex and disparate

Furthermore, many organisations

network of partners that perform a

lack customised technology plat-

variety of activities on behalf of an

forms that would enable a deliberate

organisation. Businesses that operate

and structured approach to assess-

in this environment adopt a reactive

ing the risk profile of their supply

approach to managing risk, which

chain partners and tracking control

exposes a business to vulnerabilities

gaps over the contracting lifecycle.

including regulatory non-compliance,

These limitations create challenges

JANUARY 2020

CLICK TO WATCH : ‘THE FUTURE OF CONTROLS’ 35 for organisations to validate that

globalised and interconnected mar-

they are working with the right

ketplace, many organisations operate

ecosystem of partners and can pro-

a complex supply chain that requires

actively identify and manage risk.

engagement with hundreds of outsourced providers to bring goods or

With digital transformation having

services to consumers. This dynamic

such a major impact on the supply

presents challenges for organisations

chain industry, how vital have

to effectively monitor their extended

technologies such as AI become

enterprise. Prior to the develop-

to businesses?

ment of AI-enabled technologies,

The introduction of AI-enabled tech-

organisations struggled to develop

nology has changed the landscape

a sophisticated mechanism to detect

for organisations to manage, monitor

patterns and leverage enriched data

and track the movement of goods and

sources to derive actionable insights

services in a supply chain. In today’s

about their supply chain network. With w w w.suppl yc ha i ndi gi ta l. com

LEADERSHIP

AI-enabled technology, organisations can develop deeper and more predictive insights about their business partners to inform their sourcing strategy and risk management activities.

This ability generates unprecedented opportunities for organisations to optimise their approach to supply chain management in ways that were not possible before.

Although AI and other technologies can be an important tool for companies, do you envisage any risks 36

arising through their introduction into business operations?

Disruptive technologies generate value for businesses in many important ways.

B2B technology platforms enable an organisation to streamline activities and enhance collaboration through the automation of routine tasks, the digitisation of manual processes and the consolidation and centralisation of information. As a result, organisations are becoming more efficient, transparent and collaborative. This shift is enabling a realignment of resources to prioritise the customer experience in ways that were not possible before.

But despite the positive benefits of JANUARY 2020

“ AI-enabled technology presents a learning curve as effective adoption requires alignment and training across multiple business areas� — Corinne Goldberg Manager, Deloitte LLP

technology adoption, organisations should be mindful of risk. Technology products can be cumbersome to integrate into an organisation’s operations if their purpose and use is not well-understood. For many organisations, AI-enabled technology presents a learning curve as effective adoption requires alignment and training across multiple business areas, including deeper linkages with data scientists and technologists. Furthermore, integration of AI presents ethical challenges for organisations with respect to ensuring ethical compliance, mitigating bias when developing algorithms and creating standards to ensure trustworthy AI programmes.

What considerations need to be taken into account when introducing a new technology into an organisation’s routine business processes?

Effective technology adoption requires a comprehensive understanding of an organisation’s pain points in order to introduce a technology solution that is fit for purpose. This understanding can be achieved by identifying an organisation’s existing level of maturity with respect to technology adoption. w w w.suppl yc ha i ndi gi ta l. com

37

LEADERSHIP

“ I ’m excited to see the

“ I ’m excited to see the plethora plethora of tools that of tools that organisations organisations will have will have at their at their disposal todisposal to modernise operations and modernise operations increase their understanding and increase their of the extended enterprise” understanding of the extended enterprise”

— Corinne Goldberg — Manager, Deloitte LLP Corinne Goldberg Manager, Deloitte LLP 38

Understanding the current maturity

non-technical teams can create fric-

is vital to designing an appropriate

tion and confusion. A targeted change

technology-enabled future state oper-

management programme should be

ating model. Furthermore, a robust

established to ensure that technology

change management programme

is understood across the organisation

should also be considered to facilitate

and that the buy-in is received from key

seamless adoption through education

stakeholders to facilitate adoption.

and training. Without a robust change management programme in place to

What do you envision the future of

facilitate organisation-wide adoption,

the supply chain industry to look like?

usage can be fragmented and dispa-

As technology products continue to

rate, making technology a hindrance

become more sophisticated and new

rather than an enabler. Lack of align-

use cases are developed to address

ment on adoption across technical and

gaps in supply chain management, I’m

JANUARY 2020

39

excited to see the plethora of tools that

quality. AI capabilities will provide

organisations will have at their disposal

more precise, predictive capabilities to

to modernise operations and increase

enable organisations to optimise sup-

their understanding of the extended

ply chain spend and detect risk earlier

enterprise. I’m looking forward to see-

in the contracting lifecycle. There is

ing technology products that leverage

lots of innovation in this space that has

blockchain to enable product track-

tremendous potential to transform the

ing from the source to the consumer,

way organisations manage their supply

as they will continue to add value by

chain network.

bringing increased transparency to the manufacturing and distribution process, providing both organisations and consumers with greater assurance over aspects such as product w w w.suppl yc ha i ndi gi ta l. com

COVERING EVERY ANGLE IN T HE D I G I TA L A G E The Business Chief platforms offer insight on the trends inf luencing C and V-level executives, telling the stories that matter

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H AV E Y O U S E E N O U R O T H E R T I T L E S ?

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

42

EMBRACING DIGITISATION IN PROCUREMENT WRITTEN BY

SE AN GA LE A-PACE

Nic Walden, UK procurement leader at The Hackett Group, discusses the influence digital transformation is having on the modern procurement landscape

JANUARY 2020

43

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

W

ith digitisation beginning to take hold over

the supply chain world, many companies

are turning to consultancy and advisory services for support. That’s where The Hackett Group comes in.

Offering intellectual property-based strategic consultancy, leading enterprise benchmarking and best practices in digital transformation, the Hackett Group provides firms with expert advice to succeed in the space amidst significant technological change in the industry.

44

Nic Walden, UK procurement programme leader at The Hackett Group, specialises in helping companies transform their procurement functions into becoming true strategic business enabling functions. “I’m working with many well known and large multinational companies on a continuous basis through our membership programmes,” says Walden. “We’re utilising our best practice research and thought leadership to support procurement leadership teams, to help them better understand what’s changing in the business environment and what that means for the world-class future procurement function. We provide that external perspective and help guide their procurement function and transformation strategy to ultimately enable better decision making towards greater effectiveness, efficiency and experience.”

JANUARY 2020

45

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

“ We utilise our experience and knowledge of proven best practices and emerging practices to help companies drive change and transform successfully at pace” 46

— Nic Walden, UK procurement programme leader, The Hackett Group

The Hackett Group empowers companies to accelerate their digital output in a range of different areas in procurement. “We utilise our experience and knowledge of proven best practices and emerging practices to help companies drive change and transform successfully at pace,” explains Walden. “It could be that procurement teams are being asked to take on new responsibilities or bring in new talent to shift their focus from pure cost savings to becoming more oriented around the supplier lifecycle.

It’s up to us to ensure we’re providing

JANUARY 2020

CLICK TO WATCH : ‘THE HACKETT GROUP – DIGITAL TRANSFORMATION PLATFORM OVERVIEW’

the best advice on the latest trends in the marketplace, including the opportunities from new digital technology solutions.”

With a plethora of information available at companies’ fingertips, the importance of leveraging Big Data correctly is paramount to ensure businesses remain agile and lean towards the latest market conditions.

“Big Data in procurement is a huge opportunity and, to a certain extent, remains largely untapped,” explains Walden. “One of the most pressing w w w.suppl yc ha i ndi gi ta l. com

47

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

challenges we face is risk or disruption

48

The Hackett Group has introduced

from the supply chain. It’s also important

“Digital Excelleration”, a digital

to evaluate whether we’re at risk from

gateway to measure performance

reputational damage or fraud. We

excellence, accelerate business

should see how we’re able to use Big

transformation and uncover

Data sources like validation, risk and

breakthrough business insights.

intelligence services. If we do, it will

Along with this, the firm has outlined

allow us to efficiently and effectively

three steps to achieving digital

blend together external and internal

excellence; benchmarking and best

market data to serve our category

practices, strategic alignment and

teams and supply managers delivered

a transformation plan. The Hackett

on a streamlined digital platform.

Group believes that its benchmarking

From there, they can better manage

and performance data can provide

supplier relationships and identify

companies with a competitive

valuable opportunities.”

advantage and highlights five digital

JANUARY 2020

capabilities that firms must master to succeed in the space: customer engagement, workforce enablement, service optimisation, a digital ecosystem and analytics-driven insights. With customer-centricity a key pillar for The Hackett Group, Walden stresses the importance of staying relevant to customers.

“It’s vital that we continue to innovate and invest to further develop our services,” he explains. “We’re currently undergoing our own transformation internally within Hackett called

“ It’s up to us to ensure we’re providing the best advice on the latest trends in the marketplace including the opportunities from new digital technology solutions” — Nic Walden, UK procurement programme leader, The Hackett Group

‘reimagining advisory.’ We’re always

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49

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

“ Big Data in procurement is a huge opportunity and, to a certain extent, remains largely untapped” — Nic Walden, UK procurement programme leader, The Hackett Group 50 looking for ways to become even more customer-centric and ensure we keep an eye on what’s important to them.”

Due to the rapidly changing nature of the supply chain industry, it can be difficult for companies to manage change effectively amidst constant upheaval. To combat this, Walden believes it’s important to assess the value that new technology brings and decide whether there is also the option to enhance existing processes and service offerings. “When we talk about digital, it’s not just technology. We also need to think very carefully about the talent side,” explains Walden. “We JANUARY 2020

know change management and skills development is important. However, there’s also a massive opportunity within procurement today to benefit from modernising our technology landscape. Many even have a hidden opportunity to further extend existing technology to suppliers or to train on functionality.” Having witnessed the shift to digital first-hand over the past few years, Walden believes he has a clear idea of what the supply chain space will look like in the near future.

“I noticed how influential technology was becoming three or four years ago in our field,” he says. “At the start, we were all very curious to better understand what the opportunities were and perhaps got caught up with the hype around AI, robots and blockchain. However, in order for industry to fully embrace all this new tech in a positive way, we must recognise that it might take longer than originally thought.”

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Women in Procurement & Supply Chain 2020

“A great opportunity to meet likeminded ladies, discuss relevant issues and trends in the profession and be comfortable with the supportive network around you.”

Taylor Pearce Procurement Specialist MLC Life Insurance

“Like many industries, the procurement and supply chain industry has been traditionally male dominated and it is time to address this.

This conference is incredibly important as a way for females to lean on and learn from each other as they navigate their way to being stronger, better and more able to take on the challenges of their industry.”

Kath Blackham Chief Executive Officer Versa

“Having a conference that encourages and enhances the connections between professionals in procurement is vital to advancing the profession. The Women in Procurement & Supply Chain conference always reinforces the importance of diverse thought and is incredible to hear from such inspirational speakers.”

Chontelle Kelly Procurement Specialist Nestlé

WHY YOU NEED TO COME TO WOMEN IN PROCUREMENT & SUPPLY CHAIN 2020!

Don’t be left behind – identify the gaps in your thinking and develop new procurement and supply chain competencies and abilities in an era of digital disruption and technology Be at the forefront of your profession – learn from award winning domestic and international speakers In a function where people are key – learn how to create a remarkable team by identifying, developing, mentoring and retaining your best people Grow your networks – be part of a community who will lift you up, point you in the right direction, enable, empower and inspire you Ensure procurement and supply chain has you on the right path – either as a means to rise through the ranks or to understand how it prepares you for your next step Engage with potential solution providers in a meaningful way

KEY THEMES INCLUDE: Procurement policy and governance in 2020 Maintaining healthy stakeholder partnerships Lean Agile Procurement E-procurement and digitalisation Improving business ethics and implementing sustainability Leadership, mentorship, retaining and growing talent

WHO SHOULD ATTEND? Women in Procurement & Supply Chain is for senior and emerging procurement and supply chain executives from across industry sectors including: General Managers & Heads of Procurement Heads of Risk Management Heads of Supply Chain Contract Managers Purchasing Managers Supply Chain & Logistics Managers Vendor Managers

Heads of Corporate & Social Responsibility Procurement Managers Supply Chain Managers Category Managers Sourcing Managers Commercial & Business Development Managers

24-26 March 2020 | Sydney | Australia LEADING THE FUTURE OF PROCUREMENT AND SUPPLY CHAIN THROUGH CONTENT, COMMUNITY AND EMPOWERMENT Use VIP code ‘SCD10’ to qualify for 10% off the registration fee!

The only event in Australia dedicated to advancing women in procurement and supply chain while addressing specific industry issues

Speakers include:

Saija Kuusisto-Lancaster Chief Procurement Officer Sandvik Mining and Rock Technology

Coretta Bessi Chief Procurement Officer Westpac

Sharyn County Head of Procurement Jemena

Karin Ragel Head of Supply Chain Risk Lendlease

Chontelle Kelly Procurement Specialist Nestlé

Naomi Lloyd Director Procurement and External Manufacturing Partnerships APAC Campbell Arnott’s

James Bartle Founding Chief Executive Officer Outland Denim

Sharon Morris General Manager for Australia and New Zealand CIPS Australasia

Laura Berry Chief Executive Officer Supply Nation

Anna Lindsay National Supply Chain Manager Ruralco Holdings

Marjolein Dijkshoorn Head of Procurement QBE

Angela Van Eekelen Global Policy and Compliance Manager - Procurement ANZ

Gwen Inglis Chief Procurement Officer Veolia Australia & New Zealand

Taylor Pearce Procurement Specialist MLC Life Insurance

Jennifer Jarrard Director, Corporate Member Services IACCM

“A very welcome celebration of fabulous women, innovation and practical procurement approaches, in a respectful, inclusive & engaging forum - what’s not to love?” 2019 WIPSC attendee REGISTER TODAY! T +61 (0)2 9977 0565 E info@questevents.com.au Partners:

www.womeninprocurement.com.au Organised by:

LOGISTICS & DISTRIBUTION

54

DRIVING GLOBAL STANDARDISATION OF OPERATIONS WITH ROBOTICS Following a visit to DHL’s innovation center - Troisdorf Bonn - Supply Chain Digital looks at how robotics and RPA can help standardise logistics WRITTEN BY

JANUARY 2020

GEORGIA WIL SON

55

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LOGISTICS & DISTRIBUTION

W

hen it comes to standardisation and optimisation Oscar de Bok, CEO of DHL Supply Chain, high-

lights the need for flexible solutions when battling today’s supply chains that continue to grow in complexity. De Bok emphasises

that with a large global company such as DHL, the importance of having a strategy that utilises digitalisation and collaborative robotics is crucial for enhancing value, and ensuring its workforce is unified and connected. “Standardisation of our processes 56

is how we improve and is therefore a very important part. It starts with having the best people, then having standardised processes around the globe, to then making our customers aware and want to grow with us.

Because the more we grow with our customers, the more opportunities we can provide,” notes de Bok. DHL has recently come to the end of its 2020 strategy, but has long-term strategies that look to as far as 2050. DHL is currently driving its 2025 strategy that focuses on ‘delivering excellence in a digital world’, as part of its strategy the company plans to invest US$2.2bn into digitalisation and robotics.

“The future is exciting. The future is about innovation and making sure we continuously JANUARY 2020

57

1969

Year founded

HQ

Bonn Germany

360,000+ Number of employees

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LOGISTICS & DISTRIBUTION

improve. We believe to be truly inno-

this industry at this moment in time,

vative, an idea has to be rolled out

because we can shape the future.”

throughout the entire organisation,” says de Bok. To accelerate growth

and Trend Research at DHL, also

and drive disruption, “we are not

adds that in a McKinsey study it was

going to wait for customers to tell us

highlighted that “60% of potential

what will happen tomorrow, we will

digitalisation revenue is coming from

tell our customers.”

the supply chain industry.” With this in

“Flow is everything in a supply chain

58

Markus Kückelhaus, VP Innovation

mind, DHL has been striving to change

environment,” comments Markus

their whole paradigm, investing in a

Voss, CIO and COO of DHL Supply

central team to drive productisation of

Chain. “When you look at supply chain

technologies relevant for all sites.

and logistics, we are at the brink of a

“We have identified the key charac-

major disruption. It is exciting to be in

teristics of innovative technologies and

JANUARY 2020

CLICK TO WATCH : ‘DHL SUPPLY CHAIN ROBOTIC PROCESS AUTOMATION RPA’ 59

“ ALL THE AMAZING INNOVATIONS THAT YOU SEE IN TERMS OF ROBOTICS IS NOTHING WITHOUT THE INTELLIGENCE AND THE SOFTWARE THAT IS DRIVING THE DECISION MAKING” — Markus Voss CIO & COO, DHL Supply Chain

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LOGISTICS & DISTRIBUTION

“ WHEN YOU LOOK AT SUPPLY CHAIN AND LOGISTICS, WE ARE AT THE BRINK OF A MAJOR DISRUPTION. IT IS EXCITING TO BE IN THIS INDUSTRY AT THIS MOMENT IN TIME, BECAUSE WE CAN SHAPE THE FUTURE” — Markus Voss CIO & COO, DHL Supply Chain 60 how they fit into our 2,000 sites globally,” says Voss, with this method DHL has developed a standardised and structured process that drives optimised innovation, “right now, we have more than 2,000 initiatives which we feel are ready to be rolled out.”

ROBOTIC AND RPA INNOVATIONS DHL has currently implemented to standardise its processes and increase productivity and efficiency include, ‘goods to person robots’ and ‘follow me robots’ to assist with the picking and transporting of products to reduce the miles covered by JANUARY 2020

associates. In addition, DHL has also implemented wrapping robots reducing physical work; wearable devices to replace traditional barcode readers and picking devices; autonomous forklifts for moving pallets in warehouses; Neo Avidbots (cleaning robots) reducing unsociable and repetitive tasks and Sawyer robots (robotic arms) to reduce repetitive packing tasks. Inside these innovations is intuitive software, developed by DHL and its partners, which Voss believes will help to drive efficiency when it comes to the adoption of innovative technology.

Ultimately, DHL aims to substitute its manual and repetitive tasks that add limited value to the company and to its associates satisfaction, with algorithms and robotics to improve the flow within its warehouses.“We want every site, customer and employee to feel that a digital supply chain is actually a reality and that we’re driving this very hard,� comments Voss.

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LOGISTICS & DISTRIBUTION

62

“ WE WANT EVERY SITE, EVERY CUSTOMER AND EVERY EMPLOYEE TO FEEL THAT A DIGITAL SUPPLY CHAIN IS ACTUALLY A REALITY AND THAT WE’RE DRIVING THIS VERY HARD” — Markus Voss CIO & COO, DHL Supply Chain

JANUARY 2020

within warehousing and logistics, but equally in order to achieve this standardisation of warehouse operations, backend software needs to also be standardised in order to truly see the benefits. “All the amazing innovations that you see in terms of robotics is nothing without the intelligence and the software that is driving the decision making and that is innovating robots to where we need them to be,” says Voss. “This industry has been known to be a cottage industry, with each side of an operation being slightly different and running on slightly different systems. With the advancement of innovative technology such as robotics and automation it is very clear that the more standardised you are the easier it is to drive innovation through your operations. We have been putting a lot of effort in the last five years into the standardisation of our backend systems so that all sites are running on the same software and processes, making it much easier to connect robotic platforms and other innovative technologies,” concludes Voss.

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63

T O P 10

Procurement Executives Worldwide

64

Supply Chain Digital looks at ten of the leading procurement executives from around the world, in no particular order WRITTEN BY

SEAN GALEA-PACE

JANUARY 2020

65

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T O P 10

66

10

Rob Halsall

Halsall became the youngest Fellow of the Chartered Institute of Procurement & Supply (FCIPS) in 2011.

Managing Director The Executive Athlete

An experienced procurement professional, he previously managed procurement at Commonwealth Bank and was the CPO of Westpac New Zealand until July 2019. Halsall led the transformation of the procurement function at the company with a strategic focus on embedding business partner engagement, improving value creation and forming trusted advisor status.

Although no longer a current procurement executive, Halsall won multiple procurement awards over the years and is still well-regarded in the industry.

JANUARY 2020

RECOGNITION:

09

Waleed Al Saeedi

As part of his role as Director of Procurement at Abu Dhabi Tourism & Culture Authority (TCA), Al Saeedi manages, monitors and oversees procurement, contracts and Supplier Relationship Management for TCA’s corporate requirements. He looks after the

67

Director of Procurement Abu Dhabi Tourism & Culture Authority

RECOGNITION:

entire procurement function across the organisation and looks to deliver value where possible. With over 17 years’ experience in the procurement space, Al Saeedi is the former Chairman of the CIPS MENA Strategic Advisory Board and remains committed to Abu Dhabi’s 2030 Economic Vision.

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T O P 10

Photo: © viZZual 68

08

Hervé Le Faou

An experienced procurement professional, Le Faou

Chief Procurement Officer, Heineken

has been at Heineken since 2016. He leads Heineken’s procurement transformation and helps his firm create a world-class strategic sourcing community. He manages a €13bn ($14.3bn) spend with a team of 1,000 across 75 markets. Heineken was announced as the winner of The GEP Procurement Team Award at the World Procurement Awards 2019 and Le Faou has also made CIPS Procurement Power List 2019.

RECOGNITION:

07

69

Bob Murphy Chief Procurement Officer, IBM

The recipient of the Procurement Leader Award in 2018, Murphy has been the Chief Procurement Officer at IBM

RECOGNITION:

since 2014. Having been with the company his whole career, Murphy helps oversee the firm’s Watson computer to analyse suppliers, rate contracts and manage risk. “The first day I joined procurement I knew I wanted to be the CPO,” comments Murphy. “For me procurement is awesome, procurement is fun. We all have a job and a role in convincing the millennials and the talent coming in how awesome and impactful procurement is.”

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T O P 10

70

06

Wael Safwat

Since becoming the Director of Procurement (North

Director of Procurement (North America) Black & McDonald responsible for transforming the company’s procurement America) at Black & McDonald in 2017, Safwat has been

function. As part of his role, he has helped drive the development of a centre-led procurement organisation to support 12 companies across construction, facilities management, power generation, nuclear and renewable energy. Safwat is focused around accelerating procurement across Black & McDonald in a bid to enhance value creation through effective category management, strategic sourcing, supplier relationship management, operational excellence, technology enablement and people development.

JANUARY 2020

RECOGNITION:

05

Gordon Tytler

71

Tytler’s firm were announced as the overall winners

Director of Procurement Rolls-Royce

of CIPS Supply Management Awards 2019. Tytler is responsible for administrating Rolls-Royce’s $9bn

RECOGNITION:

annual spend ethically and sustainably. He acts as the strategic and functional leader across all three of RollsRoyce’s divisions: civil aerospace, defence aerospace and power systems, as well as the group for indirect purchases. “Procurement is very much a people and knowledge-based organisation,” says Tytler. “The tools allow us to operate more efficiently, effectively and to enable us to link with our suppliers. But, the key differentiator for successful procurement is its people.”

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T O P 10

72

04

Karen Dawson

An experienced professional in the industry, Dawson was announced as EY’s Procurement Professional of the Year in 2019. Having joined the Ministry of Education in 2015, she previously worked for Inland Revenue and the Department for Work and Pensions.

She is a member of several professional procurement groups, is in charge of an internal procurement network group and a mentor in the MBIE’s developing procurement leaders programme.

JANUARY 2020

Chief Procurement Officer, Ministry of Education of New Zealand

RECOGNITION:

03

Sebastian Chua

73

With over 20 years of experience in the procurement space within the indirect procurement and project sourcing

Head of Procurement Health Promotion Board

domains, Chua worked for Agilent Technologies, Microsoft

RECOGNITION:

and Alcatel-Lucent Enterprise before joining Health Promotion Board in 2013. Over the past several years, Chua has helped transform public procurement to become the best-in-class procurement practice. He helped shift the procurement influence from an ad-hoc business relationship to a strategic partner and problem solver in achieving business success. He is also an industrial speaker at the National University of Singapore, The Logistics Institute - Asia Pacific and Nanyang Business School.

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T O P 10

Gary Foster

It’s been quite the year for Foster. In 2019, he picked up three awards: The World Procurement Leader Award, The Americas Procurement Leader Award 74

Photo: © Brent Moore

02

0000 YEAR FOUNDED

$0.0bn REVENUE IN XXXXXXXXX DOLLARS

0,000 NUMBER OF EMPLOYEES

and also won the Best Procurement Team Performance. A highly experienced supply chain professional, Foster spent 22 years at Anheuser-Busch in several procurement roles before moving onto RELX and then subsequently Highmark Health in 2016. Over the past few years, Foster has helped overhaul the company’s existing structure to make it as efficient as possible and created a team that consistently performs in cost savings, cycle times and supplier diversity.

JANUARY 2020

Vice President Procurement Highmark Health

RECOGNITION:

75

CLICK TO WATCH : ‘GARY FOSTER, HIGHMARK HEALTH – COUPA INSP!RE19’

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T O P 10

01 Patrick Dunne

Crowned Leader of the Year at the prestigious CIPS Supply Management Awards 2019, Dunne is responsible for all of Sainsbury’s’ procurement, as well as leading its cost base transformation. A graduate 76

from the University of Ulster, Dunne spent almost 10 years as the Senior Vice President, Chief Property and Procurement Officer at Walgreens Boots Alliance prior to joining Sainsbury’s. As part of his role with the latter, Dunne challenges the traditional role of the company’s procurement department from a service provider into a major value-adding contributor to the bottom-line and realises ambitious targets for procurement synergies and savings, in addition to leading an end-to-end review of the group’s cost base

JANUARY 2020

Director of Group Property, Procurement & Cost Transformation, Sainsbury’s

RECOGNITION:

Photo: © Elliott Brown

77

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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

21–22 JAN 2020

5th Annual Strategic Sourcing and Procurement MENA Summit [ DUBAI, UAE ]

ship and digital procurement solutions

Temperature Control & Logistics 2020

from top cross-industry players,

[ DUSSELDORF, GERMANY ]

Dubai’s event will focus on the impor-

Recognised as the industry’s foremost

tance and future of digital procurement

operational and hands on conference,

in the supply chain industry. Repre-

the event centres around logistics,

sentatives from leading banking, retail,

supply chain and temperature controlled

pharmaceutical, aviation and other

for the pharmaceutical industry. Now

international firms will discuss how

in its 19th year, there are expected

to gain a leading position on the

to be over 400 attendees, 60 expert

market. Offering attendees great

speakers and 60 sponsors from solution

networking opportunities and the

providers across the entire supply chain

opportunity to partake in important

industry spread across the three-day

discussions with senior-level decision

event. There is set to be logistics giants

makers, the event is expected to be

such as FedEx, DHL and Kuehne &

well attended.

Nagle all in attendance.

Providing cost saving, supplier relation78

27–30 JAN 2020

JANUARY 2020

21 FEB 2020

IRU Logistics and Innovation Forum [ LONDON HEATHROW, UNITED KINGDOM ] Offering road transport companies

30–31 JAN 2020

Supply Chain Finance Summit

and stakeholders the opportunity to network with like-minded professionals in the industry, the event will play

[ AMSTERDAM, NETHERLANDS ]

host to experts in the transport and

Now in its fifth year, the Supply Chain

logistics industry. Recognised as “the

Finance Summit provides a great

new networking hub for innovative

opportunity to learn about the latest

road transport solutions,” the meetup

trends, ideas and developments in the

will provide attendees with insight

industry. The event showcases the lat-

into the newest solutions driving the

est innovations in the supply chain

industry forward. There are a number

space for both domestic and cross-bor-

of key themes set to be discussed this

der financing, examines the future of

year, such as fleet management and

technology-enabled supply chain mod-

the digitalisation of the supply chain,

els and increases the access to supply

which includes distribution and ware-

chain finance for emerging markets.

house systems.

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

17–18 MAR 2020

26–27 FEB 2020

80

Defence Supply Chain and Logistics [ LONDON, UNITED KINGDOM ]

Supply Chain Conference

[ LONDON, UNITED KINGDOM ] Now in its 17th year, the event welcomes over 200 professionals and provides the opportunity to network, learn and

The event is set to address the

connect fellow supply chain and logistics

challenges to both logistics and

professionals together under one roof.

engineering commanders to ensure

The Supply Chain Conference will zone

mobility and capability is maintained

in on how to maximise efficiency, reduce

within the combat force. The two-

costs and future proof supply chain

day conference will centre around

operations in the industry. Thought

enabling mobility, momentum and

leaders like Laura Bacon, Integrated

capability through identifying

Business Planning & Operations

innovative, cost-efficient solutions

Manager of Nando’s, and Tom Rose,

to modernise operational capabilities

Head of International Operations at

such as robotic and autonomous sys-

SPAR International, are scheduled

tems in the supply chain.

to speak at the event.

JANUARY 2020

24–26 MAR 2020

Women in Procurement & Supply Chain 2020 17–19 MAR 2020

[ SYDNEY, AUSTRALIA ]

Logichem 2020

Providing an inclusive, supportive

[ ROTTERDAM, NETHERLANDS ]

environment, Women in Procurement &

Bringing more than 350 supply chain

Supply Chain 2020 is a highly-

leaders from the world’s leading chem-

anticipated event. With a mantra to

ical companies together, LogiChem

empower women to advance their

2020 provides the opportunity for

careers and transform the procurement

practical insights on how to increase

function, the three-day meeting is

end-to-end visibility, drive customer-

renowned for the high level speakers,

centricity and achieve integrated

relevant content and networking

digitalisation. The three-day event will

opportunities on offer. This year’s event

play host to 120 senior procurement

is expected to cover hot topics in the

executives, 50 thought-leading speak-

supply chain space, such as: social and

ers and provide eight hours of

sustainable procurement, diversity

networking. Considered the “most

measures in the supply chain, technology

interactive LogiChem to date,” the

for more efficient and agile transactions

event will showcase solutions to sup-

and collaboration, as well as how to

ply chain challenges through over 60

develop and improve leadership and

interactive case studies.

people skills.

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81

March 19-20, 2020 | Eden Roc, Miami USA

DRIVING THE PACE OF BUSINESS IMPACT 300

130

50

30

Senior Procurement Attendees

Unique Organizations

Expert Speakers & Facilitators

Industries

FIND OUT MORE AMERICASPROCUREMENTCONGRESS.COM

AN AGENDA BUILT TO HELP YOU DELIVER

Increasing the rate of business change Continuous innovation for continuous result ReconďŹ guring the whole value chain

@procurementLeaders #PLAPC

84

JANUARY 2020

A RAPID GLOBAL EXPANSION WRITTEN BY

RACHAEL DAVIS PRODUCED BY

DENITRA PRICE

Five Guys Enterprises rose from humble beginnings in Arlington, Virginia in 1986 to a globally recognised brand. Jason Lee, Sr. Director, International Supply Chain at Five Guys, discusses its globalisation and logistical challenges

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85

FIVE GUYS ENTERPRISES

F

ive Guys Enterprises is not your average fast food corporation. Founded in 1986 by the Murrell family and named after its

five sons, the Five Guys family members still meet at the corporate office every Tuesday, and have continued to play key roles in the business. It offers a basic menu of burgers, fries, hotdogs and milkshakes with a range of toppings – keeping it simple but without making it boring: “you’d need to eat 86

here every day for 684 years if you wanted to try all possible combinations of our toppings”, its website states. Five Guys also does not market its brand.

It has achieved a cult following through word-ofmouth advertising, meaning every customer feels valued and part of a unique dining experience.

From its origin as a takeaway burger joint in Arlington, Virginia, Five Guys now has 1,600 locations in 19 countries across the world – and is still expanding. “We want to enter six to eight new countries every single year,” says Jason Lee, Sr. Director, International Supply Chain. The challenge Five Guys has set itself is that its menu is the same in every global location, and where possible, it will use the same ingredients and products.

“One unique thing about our international strategy is that Five Guys controls the supply chain,” JANUARY 2020

87

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FIVE GUYS ENTERPRISES

“ THE MURRELL FAMILY JUST WANT THE WHOLE EXPERIENCE TO BE THE SAME, WHETHER YOU’RE IN LONDON, HONG KONG OR WASHINGTON DC” 88

— Jason Lee Sr. Director, International Supply Chain, Five Guys

JANUARY 2020

Lee explains. “Purchasing, logistics, distribution – we take full control of this instead of the franchisee.”

Five Guys is very strict on sourcing.

In order to make the experience as authentically American – as authentically Five Guys – as possible, there are no substitutions to be made. “That’s not just on food, that’s even on disposables – napkins, bags, cups – we have a specification that every market needs to follow,” says Lee. Five Guys plays the long game in this regard.

By being strict and controlling supply chain and distribution itself, the

CLICK TO WATCH : ‘FIVE GUYS – PICKLES’ 89 company ensures the highest quality

these products, which are largely

while ultimately saving money, as

produced in Asia, back across the

there is less exposure to wastage,

Pacific to serve Five Guys’ Asian

excess product, and mismanagement

market, for example.

by third parties or franchisees.

Even peripheral products such as

“We spend $8mn a year on napkins here in the US, so our buying power is

napkins, toilet paper, bags and cups

tremendous,” says Lee. “When ship-

are, where possible, shipped interna-

ping a full ocean container, it costs

tionally from the United States. While

a few dollars per case of napkins, so

it is admirable that Five Guys wants

actually it is cheaper than going locally

to provide the same, high-quality

and trying to source for the one store

experience to all of its customers, no

we have in a country.”

matter where it is in the world, critics

For markets such as the UK, where

would question how much financial

Five Guys has more than 100 stores,

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FIVE GUYS ENTERPRISES

90

it to deliver non-food items at the qual-

American products as possible. “We

ity customers expect, because it has

try to ship everything from the United

a higher volume requirement. “As we

States that we can, and for Europe we

expand, not only do we want the expe-

have established new suppliers to ser-

rience to be consistent, but it actually

vice that region,” Lee explains. “Every

makes financial sense to ship from the

time we ship orders, there are local

US to smaller markets,” Lee explains.

regulations which we have to adhere

As Five Guys looks forward to

to, and it is very tricky when it comes to

extending its global expansion, one of

food items. Having dual sources in the

the biggest issues it faces logistically

US and Europe provides us options.”

is compliance. In order to provide that

Five Guys takes an ‘all hands on

authentic, simple and standardised

deck’ approach to addressing com-

experience internationally, Five Guys

pliance, and leans on its third party

tries to use as many of its original

suppliers and compliance companies

JANUARY 2020

1986

to help ensure it can deliver the authentic Five Guys experience while adhering

Year founded

to food standard laws across the world.

Finding the right partnerships, fran-

$2bn

chisees and technology solutions is essential to Five Guys’ growth, particularly as it expands into new markets,

Revenue in US dollars

with little brand recognition but considerable opportunity. Consequently, stock

30,000+ Number of employees

management and demand planning is a focus as the business expands into any new market.

Five Guys offers fresh food to its customers, meaning its stock has a

E XE CU T I VE PRO FI LE

Jason Lee Jason has experience managing all aspects of supply chain for a wide variety of different industries including CPG, industrial, automotive, healthcare, and food service. Specifically at Five Guys, he has led in the establishment of materials management processes, strategic distributor networks, sourcing initiatives, and global logistics programmes. Jason has executed many successful transportation cost reduction projects through cost unbundling initiatives, negotiations, and shipment optimisation methods. His current role includes the management of teams in Europe, the Middle East, and Asia-Pacific, and will lead the growth into all future International markets for Supply Chain.

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FIVE GUYS ENTERPRISES

“ WE WANT TO GO INTO SIX TO EIGHT NEW COUNTRIES EVERY SINGLE YEAR” 92

­­— Jason Lee Sr. Director, International Supply Chain, Five Guys

*Photo © Ashley Camryn JANUARY 2020

short shelf life and initial sales are a ‘best guess’. Accordingly, technology is integral to stock management and to ensuring the supply chain is maintained globally. To achieve this level of quality, Five Guys uses Sensitech for supply chain visibility and to moderate the shipping of its products, and FoodLogiQ to connect the store level with distributors and suppliers.

“We use Sensitech on all of our ocean containers and select trucks, and it gives us live GPS location tracking so we can see where our containers are at all times,” says Lee. “It also gives us the temperature of the container at all times. This is essential for our perishable items so we can keep track of both temperature and location.”

With FoodLogiQ, Five Guys can connect its store level with its distribution level, and then with its suppliers, so that “any time there is a delivery issue, whether that’s quality, damage, short stock, the wrong product, the store store will fill out a report and it will automatically go to the appropriate party,” notes Lee. “It is a centralised platform that all of w w w.suppl yc ha i ndi gi ta l. com

93

Simply picklicious since 1926.

Mt. Olive is the #1 Selling brand of Pickles, Peppers and Relishes in the US. 200M Jars sold per year 920,000 jars supplied to Five guys annually American made and Privately held.

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the critical stakeholders have access and visibility to. The Five Guys corporate supply chain team is copied in on everything.”

Five Guys does not just use FoodLogiQ for day-to-day functioning.

The technology also enables the team to run reports to establish the root cause of supply chain issues, whether that is with a particular store or a product, allowing them to take corrective action.

Concluding, Lee makes it abundantly clear that supply chain management,

“ ONE THING THAT IS UNIQUE ABOUT OUR INTERNATIONAL DISTRIBUTION IS THAT FIVE GUYS CONTROLS THE SUPPLY CHAIN” — Jason Lee Sr. Director, International Supply Chain, Five Guys w w w.suppl yc ha i ndi gi ta l. com

FIVE GUYS ENTERPRISES

97

“ INVESTING IN THE TEAM AND THE SYSTEMS TO SUPPORT THAT IS SO IMPORTANT TO OUR SUCCESS” — Jason Lee Sr. Director, International Supply Chain, Five Guys

including partnerships with suppliers and distributors and making use of technology, is critical to the international expansion of Five Guys Enterprises. “Once you get into a new market, it’s about managing the day-today stock management. What do you have on hand? What do you have coming in the pipeline? You truly cannot blink, so investing in the team and the systems to support that is so important to our success.”

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JA N UA RY 2020

ON LONG -TERM RELATIONSHIPS WRITTEN BY

SHANNON LEWIS PRODUCED BY

CAITLYN COLE

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99

McPHERSON’S CONSUMER PRODUCTS

WE SPEAK TO MARK BRADY, SUPPLY CHAIN DIRECTOR AT MCPHERSON’S ABOUT HOW THE COMPANY LEVERAGES LONG-TERM POSITIVE RELATIONSHIPS WITH BOTH EMPLOYEES AND PARTNERS TO ACHIEVE SUSTAINABLE GROWTH

M

cPherson’s Consumer Products (MCP) is an Australian Health Wellness and

Beauty brand with a legacy that dates to 1860.

100

MCP is a global company, distributing across Australia and New Zealand as well as in China, Singapore, the UK, Germany, and the Middle East.

Aside from marketing and distributing its own brands, it also engages with agency work. MCP is a category leader for several of its brands; Lady Jane and Manicare lead in pharmacy while Multix is the number one brand in the Australian grocery channel. Its company mission is to “create better ways for people and communities to thrive.”

According to Brady, “at MCP, we want to challenge the norm.”

Mark Brady has worked at MCP for eight years as the Supply Chain Director. By MCP standards, he is relatively new. His team consists of 90-100 people, subject matter experts in a variety of fields.

The average tenure within supply chain at MCP JA N UA RY 2020

101

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McPHERSON’S CONSUMER PRODUCTS

is 18 years. According to Brady: “We

Valuing employees has been key

leverage off this every single day. The

to MCP’s success. In its canteen

adaptability, learnedness and calm

area hang photos of employees who

temperament of this group means that

have 10+ years of tenure. Leadership

whenever we have new challenges,

and accountability are at the core of

we have experience to fall back on.”

creating a positive atmosphere. MCP

Brady’s background in operations

holds long-service award dinners.

has been key to his success in his

Hosted by Laurie McAllister, manag-

role at MCP. He is trained in Lean and

ing director at MCP, they are attended

Six Sigma. The two pillars of success,

by senior leadership, board members,

according to Brady, are the clear abil-

partners, and long-stay employees

ity to define processes and reliable

in milestone years of employment:

collaborative teamwork.

10, 15, 20, 25 years. “The ability for a

102

“ WE HAVE TRIED TO ALIGN OURSELVES WITH KEY STRATEGIC PARTNERS WITH WHOM WE CAN DEVELOP A LONGSTANDING RELATIONSHIP” — Mark Brady Supply Chain Director McPherson’s Consumer Products

JA N UA RY 2020

CLICK TO WATCH : ‘MCPHERSON’S CORPORATE VIDEO’ 103

company to find and retain staff is so important,” Brady affirms. Being an Australian-business based in Australia means employees are empowered to make decisions that affect the wider company. With 75 people working in the warehouse, safety is another priority at MCP. Its Occupational Health and Safety committee is led by employees. “It is key to us that our employees drive our safety culture,” Brady says, “we want people to go home as happy and safe as they came to work.” w w w.suppl yc ha i ndi gi ta l. com

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“ THE ABILITY FOR A COMPANY TO FIND AND RETAIN STAFF IS SO IMPORTANT” — Mark Brady Supply Chain Director McPherson’s Consumer Products

MCP has been in a process of balanced growth. It is looking to enhance its primary Beauty branch while growing its Health and Wellness arm. In so doing, it aims to maintain its status locally while looking overseas for opportunities. China provides a massive potential market for MCP. There are 24 million people in Australia; there are 240 million people in the Chinese middle class alone. “This growing

E XE CU T I VE PRO FI LE

105

Mark Brady Mark has lead the global supply chain area at McPherson’s for the last five years, after being promoted from his role driving continuous improvement and quality across the organisation. Mark has been able to lead the organisation’s supply chain through structural and operational change and efficiency improvement, enabling sustainability and growth within McPherson’s. With 20 years’ experience across operations and supply chain, Mark has worked within a number of industries including pharma, FMCG, food grade manufacturing, electronics and services delivery.

As an engineer by education, Mark has a robust, analytical approach coupled with qualifications in continuous improvement methodologies, including Lean, Six Sigma and World Class Manufacturing. w w w.suppl yc ha i ndi gi ta l. com

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107

domestic market and the overlaid China volatility brings forecasting challenges,” Brady notes. “We can have a 12,000 forecast for a given month and then get a purchase order for 90,000 with no warning.” As a solution, MCP turns to partnership with Access Brand Management (ABM), a reseller in China. Its direct-selling app has 3.2mn people registered. MCP also bought a small share in skincare contract manufacturers Aware Group, to help provide the continuous supply required thanks to its new links to China. The growth

“ DEALING WITH THESE MANY TYPES OF SUPPLIERS ALLOWS THE ADAPTABILITY AND FLEXIBILITY THE MARKET DEMANDS” — Mark Brady Supply Chain Director McPherson’s Consumer Products w w w.suppl yc ha i ndi gi ta l. com

McPHERSON’S CONSUMER PRODUCTS

1860

Year founded

$4mn Revenue in US dollars

750

Number of employees 108

JA N UA RY 2020

has been phenomenal. MCP brand, Dr. LeWinn’s, has gone from selling AU$300,000 three years ago to AU$16mn last year, with projections of making AU$25mn this year. With the help of Aware Group and ABM, MCP manufactured and sold as much product in the months of May and June as it had in the prior 10 months.

“We have tried to align ourselves with key strategic partners with whom we can develop a long-standing relationship,” Brady explains. “Like our staff tenure, we have many relationships that are 10-15 years old.” For shipping, MCP has a 15-year relationship with Mondiale freight. For warehouses, it turns to its 15-year partnership with Concept Warehousing. New partners that join supply chain are heavily vetted, with an eye on a long-term future.

Partners range from larger companies that can scale to leaner companies that are agile. “Dealing with these many types of suppliers allows the adaptability and flexibility the market demands,” Brady affirms.

The launch of Dr. LeWinn’s R4 collage, Surge was the fastest and most successful launch in the pharmacy w w w.suppl yc ha i ndi gi ta l. com

109

McPHERSON’S CONSUMER PRODUCTS

channel to date, brought about thanks to partnerships with domestic partners such as Chemist Warehouse, Priceline and the virtuous cycle created with ABM and manufacturing partners Pharma Cosmetics. MCP has also recently started engaging in jointventure partnerships, buying 51% of a company’s shares and growing it until it is financially viable enough to be bought out. It acquired a stake in skincare brand Kotia, in tanning brand Sugarbaby, and in wellness company 110

Soulful. “The advantage of joint-venture platforms is that they allow MCP to go from a standing start,” Brady says.

“ IF I LOOK AT OUR SHARE PRICE TODAY STANDING AT MID $2.00. FOUR MONTHS AGO, WE WERE AT $0.75” — Mark Brady Supply Chain Director McPherson’s Consumer Products

JA N UA RY 2020

“We leverage all our strategic partnerships across a number of key suppliers to enhance the product offering capability in our brands.”

MCP comes from a history of change. Its origins in 1860 as a hardware and tools store saw it participating in the construction of the iconic Harbour Bridge. Although now operating in a different sphere, this legacy of adaptability continues. Four years ago, MCP was $68mn in debt. It has shrunk that debt to a tenth the size.

111

In the last five years, MCP has exited

at our share price today standing at

eight different brands and business

mid $2.00, four months ago, we were

arms while inbounding 18 new ones. “It

at $0.75. That’s a phenomenal story

really hearkens to that flexibility,” Brady

and I feel proud, as all the supply chain

comments, “to take something that’s

team should, that we can add to that

new and be able to move forward with

outcome. It’s a great place to work and

it.” Looking to the future, MCP sees

I am glad to be here.”

growth, balancing domestic and new external customers. It is also in the early stages of considering machine learning and AI as tools for forecasting.

“We continue to be on the journey for further success,” Brady says, “if I look w w w.suppl yc ha i ndi gi ta l. com

GROUP UK

112

Embracing change management in the supply chain WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

CHARLOTTE CLARKE

JANUARY 2020

113

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O C S G R O U P U K LT D

Steve Caddell, Group Procurement Director at OCS Group UK, discusses the importance of operating with an agile approach in the supply chain space

T

he world’s largest privately owned facilities management services company, OCS Group, is renowned for being a progres-

sive business with a strong heritage. Serving a diverse customer base spanning across a broad 114

range of industries such as aviation, healthcare, business and industry, sports, leisure and entertainment, OCS Group UK showcases its versatility to meet each customer’s specific needs.

With the supply chain world in a state of transition following the introduction of new technology industry-wide, Steve Caddell, Group Procurement Director at the company, believes adopting a flexible approach is key to embracing change management. “We try to be agile and lean. Our approach to change management is based on incremental gains,” he explains. “Being agile is a state of mind and if your mindset is conservative and slow, then you can’t be agile.” Caddell recognises the importance of innovation and trialling new things. “We’ve created a culture in the procurement team at OCS Group UK where it’s okay JANUARY 2020

115

1900

Year founded

£450mn

Revenue in the UK, Ireland and Middle East

19,800 Employees

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O C S G R O U P U K LT D

116

to try and fail fast in the pursuit of finding new ways of working,” he says.

Change is an area that Caddell values. Having switched from an outsourced procurement model to one that operates in-house several years ago, he understands that supply chain performance not just cost saving, it is crucial. “The commercial approach of the outsourced provider was not consistent with the values of OCS Group and awarded very long term contracts and guaranteed unrealistic levels of spend,” says Caddell. “This JANUARY 2020

“ Being agile is a state of mind and if your mindset is conservative and slow, then you can’t be agile” — Steve Caddell, Group Procurement Director, OCS Group UK

CLICK TO WATCH : ‘THE OCS WAY’ 117

approach is not sustainable and there-

With a robust supplier relationship

fore not good business.” With over

management (SRM) strategy in place,

2,000 customers in the UK and each

Caddell recognises his company’s

using its supply chain, Caddell believes

strategy primarily revolves around

procurement is vitally important for

portfolio management instead of cat-

overall company success. “Each of our

egory management. “We organise our

customers use part of our supply chain,

procurement team around similarities

whether that’s the machines we deploy

of commodity, rather than just spend,”

on-site, uniforms given to our employ-

he explains. “For example, one of

ees or materials cleaning operatives

our portfolio managers looks after

use,” he affirms. “We have a very high

the wholesaler portfolio of suppliers,

reliance on our supply chain, which

ranging from catering consumables

is why our procurement function is

through to cleaning equipment. These

so well regarded within OCS.”

are vastly different areas of spend, w w w.suppl yc ha i ndi gi ta l. com

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but share a common operating model

reliance on our supply chain, the

of delivering to our customer sites

OCS proposition is dependent on

every day. Each portfolio manager

high performance,” he explains.

has an SRM toolkit based around

Having formed a key strategic busi-

incremental improvement. We actively

ness relationship with Tabbers and

engage with our suppliers regularly

Recomony, Caddell believes in the

and have open conversations about

value of true collaboration within the

where they can help us develop.”

supply chain and feels it is vital for

Caddell has a range of high per-

success. “Tabbers produces all of

forming suppliers at his disposal,

our marketing material and we’ve

believing that success in the indus-

worked with them for a considerable

try simply wouldn’t be possible

amount of time. In my opinion, they’re

without them. “We have a heavy

very innovative and share our values 119

E XE CU T I VE PRO FI LE

Steve Caddell Steve joined OCS, Europe’s largest private-owned facilities management organisation, as Group Procurement Director in April 2017. His work involves managing the supply of goods and services worth around £165m.

He is also responsible for a global Centre of Excellence sharing and the UK property estate. Immediately prior to this, he spent two years as a freelance consultant at a C-Suite level in some of the world’s leading property and construction businesses, successfully delivering career savings in excess of £150m, and is seen as a transformation expert within the industry specialising in strategy and high performance.

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121

“ T he OCS often go way beyond what is normally proposition expected. We see them as an integral part of the team,” says Caddell. is dependent “Reconomy is our waste broker and on high helps us manage over 400 local waste providers all around the UK, performance” around care, expertise and trust and

and provides industry leading exper-

tise and advice about how to reduce waste consumption and increase our level of recycling. Reconomy’s technology platform is also of great use to us and collates all of the statutory

— Steve Caddell, Group Procurement Director, OCS Group UK

documents associated with waste compliance in one place.” w w w.suppl yc ha i ndi gi ta l. com

O C S G R O U P U K LT D

122

JANUARY 2020

Looking to the future, Caddell has a clear understanding of the direction

“ Procurement is a process; not a function”

he anticipates his company to take over the next few years. “We’re in the final stages of the last few remaining legacy contracts that were created as part of the outsourced arrangements,” he says. “Once we’re free of those, we will rebuild the supply chain and restructure it significantly. We want to

— Steve Caddell, Group Procurement Director, OCS Group UK

build the highest performing supply chain within our industry and be seen as a beacon of best practice. We want to reduce our vehicle emissions, which in turn, would decrease delivery costs. It’s important that we look strategically at what we have to do in the supply chain and find the most efficient way of moving products from a manufacturer to the end user.

Procurement is a process, not a function and something that should be done by the business, not done to the business. I hope in the future that it can be seen as a normal part of what we do, enabled by a small, expert team, not necessarily a function that stands on its own.”

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123

124

JANUARY 2020

DELIVERING A STRATEGIC PROCUREMENT FUNCTION IN SECURITY WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

CHARLOTTE CLARKE

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125

G4S

Robert Copeland, Group Procurement Director at G4S, discusses the importance of embracing change management in the supply chain space

A

s the world’s leading integrated security company, G4S is renowned for providing a broad range of security services in an

increasingly connected and complex world.

With 45,000 suppliers across 90 countries supporting 540,000 employees, G4S operates an 126

extensive supply chain that is truly global. Helping to ensure G4S’ supply chain runs efficiently, Robert Copeland, Group Procurement Director at the company, believes he has the right procurement strategy in place to deliver sustained value creation and supply chain performance. “It’s critical that you have a procurement function able to not only present clear solutions, but also have the willingness to lead the proposed improvements to embed effective change” explains Copeland. “In the security industry, where margins can be tight and high operating standards are a must, it’s essential to operate a supply chain that delivers the right blend of cost, quality and performance to underpin the growth.”

Over the past two years, G4S has invested in transforming procurement from being a tactical JANUARY 2020

127

cost reduction function to becoming an effective supply chain advisory, able to conceptualise, develop and implement true supply chain performance betterment with a bottom-line impact. Copeland highlights the importance of procurement providing more than just a route to market. “We can’t just be a one trick pony. It’s critical we create a wideband value proposition which offers more than a way to finding suppliers and negotiations,” he affirms. “Otherwise, procurement as a function runs the serious risk of w w w.suppl yc ha i ndi gi ta l. com

G4S

“ There is a clear appetite and need for a truly strategic procurement function in every region” — Robert Copeland Group Procurement Director, G4S

extinction, as traditional procurement tasks become increasingly automated in the coming years.”

Supply chain value is often measured through the bias lens of supplier cost vs. performance. However, Copeland believes that leadership must ensure the supply base is also fit for purpose from an ESG (Environmental, Social and Corporate Governance) angle. “A complex global security business demands a supply chain which satisfies the company’s ESG obligations, as this can provide great comfort

128

to a progressive customer or socially

JANUARY 2020

CLICK TO WATCH : ‘G4S SECURE SOLUTIONS: SECURITY SYSTEMS’ 129 responsible investor and thus become

(EMEA) in 2019, followed by North

a competitive advantage for the busi-

America in 2020 and the Asia Pacific

ness,” he explains. “For example, of

and Latin America regions a year later.

the top 50 asset managers globally,

“There is a clear appetite and need for

90% are signatories to the United

a truly strategic procurement function

Nations Principles for Responsible

in every region,” affirms Copeland. “My

Investment. This means that investors

vision of procurement is to demon-

are increasingly looking at the ESG

strate how our experience, leadership

health of a business when making

and work ethic will drive improvement

investment decisions.”

to the company’s bottom-line. The

Having devised a three-year priori-

key to our success is ensuring that

tised plan for procurement, Copeland

we focus on three core aspects:

has a clear vision on how he sees this

Does this procurement solution make

being introduced worldwide, starting

things better for the end customer?

with Europe, the Middle East and Africa

How does the solution improve the w w w.suppl yc ha i ndi gi ta l. com

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2004

Year founded

90

Countries of operation

business, I’ve scaled the procurement headcount on the pipeline of identified activities. This has yielded a 10:1 Return on Investment (ROI) over the past two years. This resourcing approach can be tough for the team; however, everyone has found the dynamic environment to be a great development opportunity and this has allowed us to attract some

540k+ Number of employees

of the best candidates in the industry to work in our procurement team.”

Copeland believes that having the capabilities to lead and manage change is critical to achieving success. “If we don’t master the change

operating cash flow and profit? Does

agenda, we’ll always be framed by

the business have the capacity and

those who see procurement as no

the capability to implement these

more than a dressed up purchasing

changes? Without fully understanding

function, ripe for outsourcing or auto-

these three elements, the chance of

mation.” Becoming a leader in its field

success is greatly reduced and can

is a difficult feat for any business to

result in a poor change outcome, as

accomplish, however, retaining that

well as weakening the business per-

position of market leadership has

ception of procurement.”

become even more challenging in

Another challenge facing G4S is

recent years. As a result of this, it

to provide high-quality procurement

is essential that G4S avoids com-

capabilities in a lean environment

placency and remains on top of the

where there isn’t the luxury of resource

latest supply market solutions to fuel

overcapacity. “To ensure we’re able

continued growth. “To achieve suc-

to meet the evolving needs of the

cess, procurement not only needs w w w.suppl yc ha i ndi gi ta l. com

131

G4S

“ It’s the ability to influence change that really sets us apart” — Robert Copeland Group Procurement Director G4S 132

commercial acumen, but to secure

he explains. “The key to embracing

the trust of the business to implement

change management is to recruit the

ideas,” says Copeland. “To highlight

right people with the correct skill sets.

the scale of the supply chain, 25% of

It’s the ability to influence change that

G4S revenues are spent with its sup-

really sets us apart. It’s vital that our

pliers and subcontractors. Supplier

procurement team is agile, curious and

performance does impact customer

mentally prepared for change because

experience and any supplier shortfall

if we aren’t, we’ll have put ourselves

would ultimately be a G4S failure in

at a huge disadvantage.”

the eyes of the customer. Businesses

With companies beginning to

are looking to drive change, but they

accelerate the digitisation of their

often don’t know the best way so it’s

business plans, technology is

a fantastic opportunity for procure-

becoming an increasingly prominent

ment to take leadership in the space,”

component to successful operation.

JANUARY 2020

133

E XE CU T I VE PRO FI LE

Robert Copeland Robert Copeland is the Group Procurement Director (CPO) for G4S, the global outsourcing and security company, responsible for global procurement operations across 90 countries. Joining G4S back in 2015, Copeland is based in London, United Kingdom. He was appointed to turn procurement into a business competitive advantage, through cost leadership, supplier risk management and supply chain innovation. Prior to G4S, he headed up Non-IT procurement at the Post Office and in this capacity was heavily involved in the establishment of the newly created Post Office procurement function and the divestment of Post Office from the Royal Mail.

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

G4S

135 However, Copeland believes in a lean

Do I know the true value that I’m trying

business and explains that it’s impor-

to deliver? In what ways can I reduce

tant to strike a balance. “We tend to be

risk and cut costs? Can I increase prof-

patient and not rush into introducing

itability? Because more often than not,

new innovations for the sake of it.” He

projects that should be halted become

affirms that it’s vital to continuously

vanity projects, centred more around

question exactly what value technolog- technology for the sake of it rather ical innovations will bring. “You should be cautious and insightful over any

than the value they bring.”

G4S is currently rolling out a global

proposal. There are numerous systems

ERP system with Oracle to enable it to

and technologies that promise the

use a series of worldwide buying chan-

earth, but many are unlikely to deliver

nels to reduce the complexity of local

on what it says on the tin,” he explains.

supply chains. “It’s set to give buyers

“It’s important to consider and question: greater visibility and control over what, what is the problem I am trying to solve? where and when something’s been w w w.suppl yc ha i ndi gi ta l. com

G4S

bought,” explains Copeland. “We’re technology agnostic, having formed several relationships with agile companies such as Provalido and Market Dojo, along with a newly developed inhouse supplier contract management eco-system. The adoption of Market Dojo’s eSourcing platform has empowered the G4S team to accelerate large and complex tenders, as well as run competitive on-demand eAuctions. In addition to the obvious benefit of cost savings, these tools have helped the 136

JANUARY 2020

“ The key to embracing change management is to recruit the right people with the correct skill sets” — Robert Copeland Group Procurement Director, G4S

team greatly reduce the time to market.”

Copeland recognises the true value in establishing mutually beneficial business relationships across all spend categories. “We already have a number of strategic partnerships in place for telecoms, fleet and workwear and we’re in the process of developing others across a wide spectrum of goods and services. Success revolves around working with our suppliers to deliver and embed critical business change.” With the security market showing no signs of slowing down in future years, Copeland affirms the future for G4S and the wider industry is extremely bright. “We’re in a great position to benefit from the growing but rapidly changing security market,” summarises Copeland. “It’s estimated that the global security market will be worth $245bn by 2020 — it’s an exciting place to be.”

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137

138

WRITTEN BY

SEAN GALEA-PACE

JANUARY 2020

PRODUCED BY

JUSTIN BRAND

139

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SENSIENT COLORS

Gian Carlo Leocata, Supply Chain Director at Sensient Food Colors Latin America, discusses the importance of a firm change management strategy in the supply chain industry

V

ersatility is key. Operating with an agile approach provides companies with the opportunity to switch up operations in a bid

to drive efficiency. As a leading global manufacturer and supplier of natural and synthetic colour solutions for a range of different markets, within Sensient 140

Colors, Sensient Colors Latin America certainly understands the value in what it means to be versatile.

A unit of Sensient Technologies Corporation, Sensient Colors revolves around the following segments: Food and Beverage Colors , Industrial Colors , Pharmaceutical excipients, Digital Inks and Cosmetic Colors. Gian Carlo Leocata, Supply Chain Director at Sensient Food Colors Latin America, affirms his company’s diverse selection of solutions sets the organisation apart. “We pride ourselves on being number one because we cover a vast array of market segments,” explains Leocata.

“We stand alone — none of our competitors cater to as many segments as we do. We also don’t compromise on quality because if anything happens that means we have to reduce the quality of a sale, then we will happily lose that transaction. I would JANUARY 2020

141

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SENSIENT COLORS

“ We stand alone – none of our competitors cater to as many industries as us” — Gian Carlo Leocata, Supply Chain Director, Sensient Food Colors Latin America

describe Sensient as a company that is everywhere but no one knows about it. Our colours are present in almost every other product that you find in the beauty store or supermarket.

We’re everywhere.”

Sensient Colors Latin America operates in 20 different countries all over Latin America, with the exception of Brazil that has its own business unit. This brings the challenge of diversifying its services to tailor to the needs of each specific country.

However, it is something that Leocata

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believes his firm manages effectively. “Each country has its own regulations and standards,” he says. “Everything we ship must meet customer specifications, cost and country regulations. Juggling these three components isn’t always a simple task because there’s a lot of regulatory movement that has to happen.” Leocata believes in the value of being “emotionally intelligent” to the demands of each individual country.

“If you want to be successful in a global world, you have to know how to handle different cultures. I’m fortunate enough that I’ve worked and lived in JANUARY 2020

CLICK TO WATCH : ‘SENSIENT’S UNIQUE MICROFINE™ TECHNOLOGY’ 143 four different countries. It has enabled

part of that strategy, Leocata believes

me an understanding of the subtleties

establishing a clear goal ensures

of managing culturally different people.”

every employee is aligned to a com-

With change management some-

mon objective. “It’s important to have

times considered a challenging hurdle

an ambition and stick to it,” he affirms.

to overcome, Leocata has transformed

“In order to achieve the level of suc-

the way Sensient Colors Latin America

cess we envision, it’s vital that every

conducts business by introducing new

employee embraces change and wants

systems. “Process, process, process.

to be a part of it. Fortunately for us, the

It was a relentless push for processes

majority of them do.”

because we had an ERP system that

Leocata stresses the importance of

was grossly underutilised. Ever since I

mitigating risks and thinking strategi-

joined, I pushed for all our processes to

cally in order to get the best out of his

become standardised as we set about

company’s procurement approach.

undergoing change management.” As

“It’s crucial to have a plan in place w w w.suppl yc ha i ndi gi ta l. com

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“ If you want to be successful in a global world, you have to know how to handle different cultures” — Gian Carlo Leocata, Supply Chain Director, Sensient Food Colors Latin America

because there’s so many factors to consider. For example, I might have three suppliers all in the same geographic space,” he explains. “What does it mean to our business when Syria and Turkey are under trade embargo? In terms of our vendor base, how are they located geopolitically and what is their status? How big of a company are they? Because these days, everyone is trying to push for longer payment terms and if I try for 120 days, 145

E XE CU T I VE PRO FI LE

Gian Carlo Leocata Gian joined Sensient in 2012 and has held various supply chain roles in the US and Canada. In 2015 he managed the implementation of a global supply chain management software at the color headquarter in St Louis, MO and continues to oversee the global rollout process across the company. Since 2018 he is responsible for orchestrating Sensient Colors Latin America overall supply chain operations, including purchasing, customer service, demand and production planning, inventory management and logistics, as well as to coordinate activities aimed at improving productivity and efficiency of operations and a faster response

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SENSIENT COLORS

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“ It’s up to us to adapt and be versatile” — Gian Carlo Leocata, Supply Chain Director, Sensient Food Colors Latin America

JANUARY 2020

am I taking my vendor out of business?

It’s a massive balancing act.” With customer-centricity considered the key to most companies’ success, Leocata sees similarities between his business and the transactional customer relationship of a supermarket. “When you buy food, you go to the cashier and pay and the chances are you’ll visit the same supermarket every time. It’s not necessarily because it’s the closest, but because you’ve established a relationship,” he explains. “It’s the exact same thing in the B2B space. You need to throw yourself into the organisation you’re conducting business with and make them not want to go anywhere else.”

Sensient Colors Latin America has established two strategic relationships in a bid to drive operations. Having formed partnerships with CFS and PIM Mexico, Leocata believes in the true value of a mutually beneficial collaboration. “Both partnerships are very different, however, strategic in their own way. CFS is a global producer and supports us in every market. If we have a need in Europe, they have a plant that can help us. It’s the same in Asia and Latin America. They, like us, have that w w w.suppl yc ha i ndi gi ta l. com

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SENSIENT COLORS

global footprint and are able to work with us all over the globe regardless of where we are,” he explains. “We also have a very local partnership with PIM Mexico. During the chemical crisis last year in China, they were instrumental.

They worked with us and have the people on the ground in China and India to help us through the sourcing process, validation and approval of new vendors.

After such a crisis, you have to reshape and remodel a very complex, intricate supply chain. PIM Mexico was the part148

ner we needed to help us through that.”

Leocata believes that partnerships with companies such as CFS and PIM

Mexico require cooperation and common values to sustain. “In order to have a reliable, secure supply chain, you have to maintain good partnerships with organisations you can trust and work with,” affirms Leocata. “Take PIM for example, we started with one product and now our portfolio with them has grown significantly. We’ve started to use some of their other products JANUARY 2020

149

that we traditionally wouldn’t buy but

will start to reach us,” he summarises.

because they proved their worth,

“B2B commerce is becoming more and

we’ve switched a lot of our procurement

more centered around service from an

through them too.”

app or a chat box because of the way

Looking to the future, Leocata believes the industry is set to become

technology is developing. It’s up to us to adapt and be versatile.”

more reliant on new technology and recognises the importance of being lean and agile in order to succeed in the space. “In the next five years, I believe the so-called ‘Amazon effect’ w w w.suppl yc ha i ndi gi ta l. com