Supply Chain Digital June 2020

J UNE 2 0 2 0

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Rapid innovation in supply chain

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FOREWORD

W

elcome to the June edition of Supply Chain Digital!

distribution in a regulated environment.

Elsewhere in the magazine, we

This month’s cover features Michele

speak to Colby Mayberry, Director

Palumbo, Head of Supply Chain

of Logistics APAC at Terex, about

Management at Bayer, who discusses

the company’s digital transformation

the transformation of the supply chain

journey in the supply chain space.

industry and how the company is

Alberto Simongini, Head of Product

driving innovation. “It is impressive, I

Engineering at Australia Post Identity

have to say how reactive the supply

Services, details how the company

chain has been in particular to cope

helps Australians simply and

with this disease, certainly in relation

securely prove who they are.

to transporting the medical supplies that are required worldwide, as well as the level of collaboration between colleagues from all around the world.”

Other leaders that feature in the magazine include Tara Merry, Industry and Solution Strategy Director at Infor, on rapid innovation in supply chain and manufacturing and the impact of COVID-19, as well as Matthew Sly, Logistics Director at Canopy Growth Corporation, who tells us about

Additionally, in this month’s Top 10 we take a look at 10 of the finest leaders within the logistics industry globally.

Do you have a story to share? If you would like to be featured in an upcoming issue of Supply Chain Digital, please get in touch at georgia.wilson@bizclikmedia.com.

Enjoy the read!

Georgia Wilson

the post-legalisation challenge of

www.supplychaindigital.com

03

Is supply chain the weakest link in your global strategy?

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

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

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PUBLISHED BY

Sophia Forte Sophie-Ann Pinnell PRODUCTION DIRECTORS

EDITOR-IN-CHIEF

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DIGITAL MARKETING EXECUTIVE

Jack Grimshaw PROJECT DIRECTORS

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DIGITAL MEDIA DIRECTOR

Georgia Wilson

Owen Martin

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EDITORAL DIRECTOR

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Matt High

Joshua S Peck

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CREATIVE DIRECTOR

DIGITAL VIDEO PRODUCERS

PRESIDENT & CEO

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Glen White

CREATIVE TEAM

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DIGITAL MARKETING MANAGER

Shirin Sadr www.supplychaindigital.com

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10 Bayer

RAPID INNOVATION IN SUPPLY CHAIN AND MANUFACTURING

32

46

Logistics Leaders

64 Canopy Growth

80 Terex Corporation

94 Australia Post

110 Ninja Van

120 Motisun Group

10

Creating the supply chain of tomorrow WRITTEN BY

WILLIAM GIRLING AND GEORGIA WILSON PRODUCED BY

CHARLOTTE CLARKE

JUNE 2020

11

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

B AY E R

Bayer’s Head of Supply Chain Management, Michele Palumbo, discusses the transformation of supply chain and how Bayer is driving innovation

W

ith over 20 years’ experience within the supply chain and logistics industry, Michele Palumbo is currently the Head of Supply

Chain Management at Bayer S.p.A. (Italy). Palumbo has worked at a number of companies during his career. Prior to joining Bayer in 2010, he worked 12

at SDA Bocconi School of Management, Hoechst Italia S.p.A., Gruppo COMIFAR and various pharmaceutical companies as a consultant in operations and supply chain management. Currently, Palumbo is a member of the Scientific Committee of Il Sole 24 ORE Formazione|Eventi and Adjunct Professor at Università Cattolica del Sacro Cuore in Milan.

With his broad range of experience within the industry, Palumbo is well placed to discuss the evolution of supply chain and logistics, and the impact that Coronavirus (COVID-19) is having on the industry. He also has an acute understanding of the technologies – such as cloud computing, advanced radio-frequency identification (RFID), and more – that have both contributed to Bayer’s own digital transformation journey, and are driving the supply chain of the future. He joined us to discuss both areas.

JUNE 2020

“ It is possible to streamline processes and to project systems that are able to resist predictable events, not black swans” — Michele Palumbo, Head of Supply Chain Management Italy 13

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

B AY E R

“ In the future, customers and all the actors involved in the supply chain processes will be interested in having full visibility on the distribution processes” — Michele Palumbo, Head of Supply Chain Management Italy

PRE-COVID-19: OLD PERSPECTIVES Palumbo describes the transformation of the industry as a Copernican revolution that we are in the middle of.

However, he believes that the onset of the global pandemic is only accelerating the effects of this revolution. He says: “The impact on industries we are seeing today, I believe, were already rooted a long time ago in the first economical crisis back in the 1930s. Many have previously tried to explain and provide solutions for this revolution, from

14

economists and politicians, through to tycoons, ideologists and more, each one putting profit, capital, the workers or the environment at the centre of this economic universe. However, none had a comprehensive perspective.

“Deming and Juran, for example, tried to put the customer at the centre of the system, but found an audience only in the post second world war Japan,” he reflects. “This disruptive culture reached its peak in the 1980s, with the development of new computing power and the emerging internet allowing the world to connect and forever diminishing the boundaries between countries. Companies that JUNE 2020

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

Michele Palumbo Title: Head of Supply Chain Management Italy Location: Milano, Lombardy, Italy Palumbo has been Head of Supply Chain Management Italy in Bayer S.p.A. since 2017. He started working for Bayer in 2010 to source logistics and distributive services for the group in Italy, implementing important strategic and more operational projects in the ambit of the life science industry.

Palumbo is a Summa graduate from Bocconi with a research empirical thesis on circular economy and majored at Polytechnics of Milan in industrial management. He joined the SDA Bocconi faculty where he designed and coordinated managerial logistics training for the technology and production department. After collaborating with some management consulting companies, he took on the role of innovation and logistics manager in the business services department of the pharma-chemical group, Hoechst, in Italy. Then he was responsible for central logistics services in one of the leading pharma wholesalers in Italy, Comifar-Phoenix Group. Palumbo is an Adjunct Professor in Operations and Supply Chain Management at the Catholic University of Milan and faculty member of Il Sole 24 Ore Business School.

A serial innovator, as a manager and academic, he offers a multifaceted perspective and is able to create value in different contexts thanks to technologically advanced, sustainable and efficient solutions.

Empathic and altruistic, intellectually curious and a visionary, he has a large family and is involved in caritative initiatives.

He is a board member of the Italian Food Aid Foundation and of the Observatory on Transport Compliance Rating.

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

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17

started to connect at that point began

reduced to certifications, audits and

to compete to gather the best core

procedures designed to mitigate the

competences.

main risks. The spirit of progressing

Palumbo explains that growing pres-

towards zero defects became the spirit

sure on margins as a result of global

of greater ‘resilience’. However, I believe

competition was problematic for the

it is possible to streamline processes

long-term sustainability of the entire

and to project systems that are able

system. As a result, the perspective

to resist predictable events, not ‘black

became increasingly short term and

swans’. And, we have to admit that the

short sighted, based around a quarterly

more over-structured the systems are,

ROI. “The new rules were fixed to com-

the more fragile they reveal to be.”

pete, survive and prosper,” he states.

Reflecting on this, he muses:

“But, at the end of 1990s, the concept

“Compare this financial short-sighted

of continuous improvement was mainly

perspective with the ones of Cristoforo w w w. s up p l y c h ain digi t a l . c o m

B AY E R

18

Colombo, Leonardo da Vinci, Galileo

exposed to natural threads struggles

Galilei, and many other visionaries who

to develop antibodies that become part

changed the world with their long-term

of its survival assets. Resilience stands

perspectives. Or, consider those who

to immunity like a snail to a seed – a

built cathedrals without knowing if

snail relies on his shell to cope with

they could have seen them completed

threads. A seed falls to the ground and

or not. In my experience, we have a

is immediately attacked by microor-

great opportunity today to change our

ganisms that try to eat it. But, in doing

perspective very easily. If we change

that they free the vital energy impris-

it to immunity, we can switch to a more

oned in the rind and life starts rooting

natural and sustainable concept:

and, as a paradox, eating the same

threads, after all, are opportunities.

microorganisms. Life takes advantage

We are meant for that, every organism

of threads.�

JUNE 2020

account the concept of ‘Personal, Automate, Local (PAL)’, as described by transformation expert S.A. Culey.

“Personalisation and customer centricity is increasingly important.

Amazon calls it ‘customer obsession’, and it’s something that we have all experienced – it’s set the modern benchmark,” he explains. “Working in the pharmaceutical industry, where customers are often patients and drugs are called ethical products, it is not difficult to get the concept.”

Automation, he notes, is driving collaboration and visibility. “It is the end of invisible supply chains where no news means good news,” he explains. “In the

PERSONAL, AUTOMATE, LOCAL

future, customers and all the actors

Reflecting on challenges and opportu-

involved in the supply chain processes

nities in more general terms, Palumbo

will be interested in having full visibility

considers the impact of the global

on the distribution processes.” Finally,

COVID-19 pandemic. It is, he says,

Plaumbo notes, the idea of Local is

“only the latest disruptive event that is

driven by the concept of density of

accelerating the evolution of supply

value. In terms of volumes, in the last

chains towards collaborative ecosys-

30 years the miniaturisation of elec-

tems able to cope with big challenges

tronic components has enabled both

and take advantage of them by improv-

a noticeable technological enrichment

ing their response capabilities.”

and a reduction in size or dimensions

Supply chains in the future, says Palumbo, will have to take into

of products. This would immediately drive a higher density of value, if it were w w w. s up p l y c h ain digi t a l . c o m

19

B AY E R

not for the more than proportional cost decrease of the technological developments.

“The final result is counterintuitive, a general decrease of the density of value,” says Palumbo. “In logistics, this is one of the most basic but important elements to consider in the engineering of a distributive network: decreasing density of value allows higher stocks to be distributed and an increase of the service level possible for the customers. This is exactly what 20

we are experiencing with ecommerce during the current lockdown situation.”

THE IMPACT OF COVID-19 ON THE PHARMACEUTICAL SUPPLY CHAIN AND LOGISTICS INDUSTRY Considering the current state of supply chain and logistics amidst the COVID-19 pandemic, Palumbo is impressed by the response of the industry. “COVID19 emerged in late February with the first three cases of coronavirus in Lodi, where our LSP Silvano Chiapparoli Logistica principal warehouse is located.

We immediately engaged the second warehouse, located in the center of the country, to switch roles in the JUNE 2020

distributive network and minimise the impact of quarantined areas, where it was difficult to enter or get out. Special medical assistance was immediately settled, and a specific COVID-19 protocol was implemented to grant safety conditions for the active workers.

Redundancy in the distributive network and distributed stock in two warehouses allowed an exceptional result.

“It is impressive,” he continues.

“I have to say how reactive the supply chain has been in particular to cope with this disease, certainly in relation to transporting the medical supplies that are required worldwide, as well as the level of collaboration between colleagues from all around the world.

I would have never imagined having meetings in the middle of the night, 24-hours a day, seven days a week.

That’s really impressive and something that we’ll never forget.”

Palumbo, who believes that the future for supply chains will change as a result of the virus, explains that “the logistic system will become extremely local and decentralised as a result of COVID-19, which will be a huge challenge for the future for organisations w w w. s up p l y c h ain digi t a l . c o m

21

B AY E R

22

“ The logistic system will become extremely local and decentralised as a result of COVID-19, which will be a huge challenge for the future for organisations to compete with a completely different shift in approach” — Michele Palumbo, Head of Supply Chain Management Italy

JUNE 2020

to compete with a completely different shift in approach. As I mentioned before, COVID-19 is accelerating the trends of the Personalised, Automated and Local approach. From my perspective, it’s very important that in the future there will be local abilities to serve the customers in an extremely agile, reactive and proactive approach.

It will be a fundamental change.”

BAYER: DIGITAL TRANSFORMATION AND PREPAREDNESS Bayer has, for the past 156 years, used science and technology to provide a better life for all. Innovation, as a consequence, lies at the heart of the organisation. With that in mind, it should come as little surprise that Palumbo recounts a more than positive response to the COVID-19 crisis.

To understand that response, and the wider ambition for technological innovation in the company, he explained in more detail Bayer’s transformation journey. “Today the competitive advantage has changed to competing as ‘systems’ rather than as companies. Technology provides the industry with the ability to escalate, therefore companies need to w w w. s up p l y c h ain digi t a l . c o m

23

B AY E R

24

be interconnected with their systems.

“It spends more than €5bn on R&D every

At Bayer we have implemented multiple

year, meaning that we can experiment

technologies to escalate our operations

freely and treat any failures as simply

over the years, including RFID trackers

the necessary steps towards success.”

across the supply chain to monitor the

This creatively fertile atmosphere has

flow of goods and Blockchain in the

allowed Palumbo to develop a range

near future to increase accessibility,

of different ideas and projects over

traceability and reliability.” he concludes.

the past 10 years. Serving over 17,000

Bayer is no stranger to frontier-

customers across Italy, Bayer S.p.A.

pushing innovation; its research team

maintains a complex flow of supply

discovered and later distributed

channels, yet the company is able to bal-

Prontosil, the world’s first prominent

ance the myriad elements within it with

antibiotic, which won the 1939 Nobel

transparency, traceability, efficiency and

Prize in Medicine and went on to save

flexibility. The origins of the system that

countless lives. The company’s pres-

make this possible, Palumbo says, can

ence in Italy consists of three divisions:

be traced back to 2010.

Bayer S.p.A. (human and animal), Bayer CropScience (botanical) and Bayer Healthcare Manufacturing (production, packaging and distribution). With a regional revenue of €1.02bn, three state-of-the-art production sites and approximately 2,000 local collaborators, the company is representative of the professionalism, dedication and transformational creativity that has defined Bayer for over a century. Palumbo tells us that it is this spirit that first drew him to the company. “Bayer is really pursuing research and development,” he explains.

JUNE 2020

BUILDING A COLLABORATIVE ECOSYSTEM

Palumbo. Doing so was no easy task,

At that time, Bayer had the vision for

as marrying old systems with new

a digital transformation that would

software proved to be highly challeng-

see the inception of a ‘collaborative

ing. However, he continues, pursuing

ecosystem’, combining TMS (transpor-

100% automation in these aspects

tation management systems), cloud

was a practical necessity, not just

and advanced analytics capabilities.

because it increased the efficiency

This was to be a ‘from the ground up’

of transport costs but also to ensure

journey, starting with system automa-

business continuity in an increasingly

tion via the integration of software

complex environment. “Bayer moved

with legacy technical structures and

to a cloud platform, a pilot project for

then progressing onto more qualita-

the company worldwide. We were the

tive developments. “Phase one was

first to move outside the boundaries

to move from the focus on processes,

of Bayer’s IT system and use a new,

such as pre invoicing, contract man-

unique platform in order to monitor and

agement and so on,” elaborates

track deliveries.”

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“ We were the first to move outside the boundaries of Bayer’s IT system and use a new, unique platform in order to monitor and track deliveries” — Michele Palumbo, Head of Supply Chain Management Italy

company also required a way to leverage this new resource in a method that would allow the supply chain to continually adapt and stay ahead of trends.

This is where data analytics and simulation software come in: “They are very important when re-engineering the distributive network in a country,” says Palumbo. “With this software, I have the ability to redesign it and find out the exact consequences of doing so. I can project; I can have a clear understanding of the effects on cost and service level of the new distributive asset.”

Added to this is the usage of RFID (radio-frequency identification) in a way which Palumbo calls “unique within the pharmaceuticals industry”. RFID is a

TECHNOLOGY TRANSFORMATION

form of identification technology that can

A shift towards cloud computing edged

enable the unique identification of large

Bayer towards the overall goal for its

volumes of products, assets, people,

transformation: increased collabora-

animals and much more. For a relatively

tive capability. Now with a centralised

low cost, special RFID labels can be

platform from which to share and

added to items or logistics supports

store information, various elements

(e.g. cartons, pallets, etc,) which give

of the supply chain (warehouses, car-

off a readable signal. Each tag has an

riers, agents and customer service

extensive operational lifetime and emits

representatives) could pool strands of

a unique identifier that can be transmit-

information in a flexible manner. Even so,

ted over a long distance at a very fast

with new data streams now open, the

rate, enabling massive and simultaneous w w w. s up p l y c h ain digi t a l . c o m

27

B AY E R

28

readings that provide a huge increase

its diverse applicability, from Brand

in accuracy, speed and productivity

Protection to production control

compared to barcode readings.

and Industry 4.0 applications, asset

Using this relatively cheap method,

management, hospital processes

billions of items can be accurately

optimisation and many others. However,

tracked during all parts of the logistics

despite the fantastic opportunities that

process, thus granting customers

RFID technology presents to supply

peace of mind through enhanced trans-

chains, very few industries have been

parency which illustrates every step

proactive in integrating it; Palumbo

of their distributive journey throughout

notes that retail, airlines and conveni-

LSP warehouses, carriers’ hubs and

ence stores could all benefit from the

subsidiaries, up to destination.

cost-saving and enhanced stock

Moreover, RFID technology can provide value to companies thanks to JUNE 2020

control implications, yet single-digit percentages of companies opt to do so.

“ We’ve collectively realised how fragile our supply chains are; as a result of coronavirus, it’s become clear how important it is to have reliable digital systems that show us the reality of the whole supply chain” — Michele Palumbo, Head of Supply Chain Management Italy

handling unit arrangement, shipping, receiving and inventory, with an average of 10 to 15 readings per box. All this data generates added value through real-time information and a dedicated BI web dashboard that provides full supply chain visibility, detailed and accurate traceability, perfect recall capability and operational KPI monitoring.

“Increasing the level of service means a general improvement not only in operational efficiency,” Palumbo clarifies, “but also an improvement in turnover.

The benefit that we expect from this project is an increase in our ability to review errors, customer complaints

In Bayer Italy’s deployment, every

and returns. Bayer will be able to have a

single box of product and every

real-time visibility throughout the entire

GreenPallet is uniquely identified by

supply chain.” This will go hand-in-hand

an RFID label and tracked individually

with a significantly increased rate of

throughout the whole supply chain,

productivity and logistical accuracy

starting from LSP facilities up to final

from a relatively small investment in

delivery to customers. More than 30

RFID technology. “In the future, all of

facilities of Bayer’s LSP and transporta-

this shipping information could be certi-

tion partners are equipped with RFID

fied by each and every single actor on a

readers and stations, managed by

shared blockchain,” he continues. “We

middleware that collects and sends all

will also be able to trace information like

data to a remote server. Products and

ambient temperature with embedded

GreenPallets are read during relevant

temperature sensors in order to get

processes such as picking, palletised

data from a cold-chain perspective.” w w w. s up p l y c h ain digi t a l . c o m

29

B AY E R

THE SUPPLY CHAIN OF THE FUTURE Bayer’s developments and vision for the supply chain’s future are truly futuristic and the company’s focus on solutions for contemporary problems doesn’t stop at RFID. Increasing the level of sustainability in the company’s operations has been over 20 years

1863

Year founded

$43mn+ Revenue in US dollars

in the making, starting with the 1997 ‘Ronchi Decree’, which redefined corporate waste as anything a company discards, intends or is required to throw away, and is consequently taxed 30

for. This has given way to ‘circular eco-

107,824 Number of employees

nomic’ thinking, wherein a company seeks to reduce production ‘inputs’ and reuse materials in a cost-effective

the waste. As a result we have saved,

and environmentally friendly manner.

more or less, €1mn per year.”

It was this restructuring of priorities

The effective evolution of Bayer’s

that resulted in Bayer’s ‘GreenPallet’.

supply chain is a model example

Realising that 75,000 new wooden pal-

of why innovative and bold thinking

lets were being produced every year,

aren’t just ornaments for successful

the company realised that it could save

companies, they are the reasons for

large amounts of money by manufac-

that success.

turing reusable pallets from (recycled)

Referring back to those challenges

plastic. “Instead of being wasted, the

outlined previously, Palumbo claims

pallets return to the warehouse,” says

that the company’s attitude towards

Palumbo. “This has allowed us to avoid

investment in R&D could be more

a huge amount of wasted wooden

valuable now than ever before.

packaging, as well as tax payments for

“We’ve collectively realised how fragile

JUNE 2020

31

our supply chains are; as a result of

“As I have previously stated, threats

coronavirus, it’s become clear how

like coronavirus will make us stronger,

important it is to have reliable digital

because our supply chain will be able

systems that show us the reality of the

to meet the challenge,” Palumbo con-

whole supply chain. Imagine a world

cludes. “This is the story of the supply

where you can really trust in your

chain of tomorrow, where everything is

partners because of the tools that

interconnected, everything is feasible

you have enabled, which provide

and a digital ecosystem is able to cope

information in real time via different

with threats that we can’t predict today.”

platforms.” It is through these systems that a new standard of best-practice for customer service in the industry can be reached, and it is this that Bayer is working towards. w w w. s up p l y c h ain digi t a l . c o m

32

JUNE 2020

Rapid innovation in supply chain and manufacturing 33 WRITTEN BY

GEORGIA WILSON

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

TECHNOLOGY

Tara Merry, Industry and Solution Strategy Director, Infor, discusses rapid innovation in supply chain and manufacturing and the impact of COVID-19

T

HE EVOLUTION OF TRENDS WITHIN MANUFACTURING AND SUPPLY CHAIN

“In conversations with our industrial manufacturing customers, along with our industry strategists, 34

the key challenges that we’ve been discussing are very much focused around industry 4.0,” says Tara Merry, Industry and Solution Strategy Director at Infor. “It’s about finding new ways to increase productivity; driving business model innovation; a shift to servitisation where we’re seeing more subscription-based sales; smart manufacturing, shifting to the cloud, which can enable so many things relating to data visibility, and using that data in bigger ways.

We have also had discussions around the next generation workforce; and the demand for new products and customisation from consumers.”

With the recent disruption caused by COVID-19 in mind, Merry reflects on her career, explaining that for most of it, she has spent close to half of her time on the process side and half on the discrete side of manufacturing. “At the top of emerging trends as a JUNE 2020

35

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

TECHNOLOGY

“ At the top of emerging trends as a result of COVID-19 are safety and security, although these are typical core priorities for manufacturers, they are obviously even more critical in any crisis or disruption” — Tara Merry, Industry and Solution Strategy Director, Infor 36

result of COVID-19 are safety and security. Although these are typical core priorities for manufacturers, they are obviously even more critical in any crisis or disruption. So now, more than ever, reducing risk while maintaining safety and as much efficiency as possible is key for survival. In light of any black swan type event, the main challenges are around trying to remain productive with constrained resources and a resilient supply chain to weather the storm.”

THE BEST STRATEGY FOR RAPID INNOVATION For manufacturers looking to rapidly innovate, Merry details the best strategy to drive results. “Rapid innovation is such an interesting topic for me,” she explains.

“Whether you’re a manufacturer of consumer products, part systems or supplies for other manufacturers, there’s always a significant need for speed and innovation.

“A rapid innovation strategy involves having a strong cross functional team, pilot programs, well-defined goals, and corporate buy-in to be successful. There are several components that build on a strategy in this area, but at the heart of it lies a flexible yet trusted supply chain.

So, when a new product introduction is

JUNE 2020

Companies build best on Infor CLICK TO WATCH

|

0:34

37 ready to scale, manufacturers need to be

integrated business plans can analyse

able to maintain the highest level of qual-

their network continuously and adapt

ity while containing costs and delivering

their plans in real time. When it comes to

on time,” Merry continues.

black swan events, the goal temporarily

However, in light of any black swan event that causes disruption to supply

shifts from innovation and optimisation to getting the basic right for survival.”

chains and innovation, “the strategy shifts from a goal of optimisation, to one focused on getting the basics right

THE TECHNOLOGY BEHIND RAPID INNOVATION

to remain productive with constrained resources,” she notes. “This type of

• END-TO-END VISIBILITY

strategy focuses on achieving agil-

When it comes to end-to-end visibility,

ity and resilience across the supply

both manufacturing and supply chains

chain, enabled by end-to-end visibility.

can benefit from minimised informa-

Manufacturers that operate collaborative,

tion latency, with information shared w w w.suppl yc ha i ndi gi ta l. com

TECHNOLOGY

38

across the network in almost real time.

and that we’re focused on. So, for

To achieve this, Merry explains that

manufacturing, the key components

“adopting cloud-based, digitally ena-

are connectivity, IoT, machine learning

bled solutions can be the foundation

and the cloud to rapidly innovate the

for end-to-end visibility.”

effectiveness of global manufacturing.

She adds that “manufacturers must

All of the business systems we’ve dis-

be able to work with a wide variety of

cussed must support a diverse range

systems such as ERP, WMS, supply

of IoT technology. Once that data is

planning, transportation manage-

harnessed into the cloud, it creates

ment and DMS to actually achieve

visibility and can be used in advanced

end to end visibility. This takes me

or even predictive analytics to drive

back to elements of industry 4.0.

process optimisation, create and act

End-to-end visibility really encom-

on alerts and predict when, or even

passes the trends that we’re seeing

before an issue occurs.”

JUNE 2020

• ADVANCED PLANNING AND LEADING-EDGE TECHNOLOGY Once a product has completed its design and testing process, manufacturers look to scale the prototype for mass production while maintaining high quality standards, containing costs and delivering products at the right time.

When it comes to implementing and achieving the desired outcomes of leading-edge technology, supply chain technologies, advanced planning and multi enterprise business networks, Merry explains that it’s “simply about improving service levels which ultimately leads to potential revenue growth, decreased costs and decreased working capital - core goals of supply chain and manufacturers.

This kind of technology is about driving

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

Tara Merry

Title: Director of Industry & Solution Strategy Company: Infor Industry: Computer software Tara Merry began her career 20 years ago in the chemical industry, focused on leading strategic supply chain initiatives for high-profile companies. Currently the Director of Industry & Solution Strategy at Infor, Merry is a curious, lifelong learner and leader, passionate about exploring diverse customer needs, solving problems and challenging the status quo.

better fulfillment capabilities to match supply and demand, optimise inventory and optimise warehouse operations.”

Leading-edge planning tools can provide a more accurate picture for supply chains and manufacturers by harnessing advanced algorithms that allow planning teams to capture a clearer projection of future demand.

Combining this technology with w w w.suppl yc ha i ndi gi ta l. com

39

40 solutions that configure statistical fore-

paired with a strong strategic sourcing

casting allows the end user to identify

program and a multi enterprise solution

shifts and anomalies in demand sooner

to gain visibility to suppliers.

to drive the bottom-line impact, as well

“A streamlined adaptable production

as the ability to examine distribution,

schedule enables a new product to

production, and procurement alterna-

seamlessly transition from a proto-

tives when needed.

type to mass production, to bring new products to market faster,” explains

• OPTIMISING AND STREAMING PRODUCTION

Merry. “A strong ERP can create lean,

Influenced by improving the supply

are resilient to disruptions and build on

chain management and shop floor

their advanced supply chain practices,

visibility, production optimisation and

thus driving speed and innovation.

streamlining is driven by the combina-

Ultimately, it’s all about increasing

tion of having the right ERP solution

asset utilisation, increasing efficiency,

JUNE 2020

demand-driven supply networks that

41 and increasing service levels. It allows an organisation to reap the benefits of a synchronised supply chain.”

Critical to the streamlining process, Infor explains that “it’s important for manufacturers to utilise global, multisite enterprise planning capabilities to synchronise supply processes, allowing them to lower inventory, optimise resource utilisation, and improve customer service. Integration of a manufacturer’s supplier network with advanced supply chain collaboration capabilities that include functionality for vendor managed inventory (VMI),

“ Suppliers are essential to any manufacturer and the supplier relationship doesn’t need to be painful or risky, so creating a flexible connected supplier network built on trust is key and can enable innovation” — Tara Merry, Industry and Solution Strategy Director, Infor

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

TECHNOLOGY

42

JUNE 2020

supplier managed inventory, consignment, kanban scheduling, just in time (JIT), and supply in line sequence (SILS).”

OPTIMISING WAREHOUSE MANAGEMENT With manufacturers and distributors continuously facing the challenges of rising costs, increased supply chain complexity, changing business models and changing customer demands, Merry explains that as a result “they may reevaluate their warehouse management practices, processes and systems to improve warehouse productivity. Strategies that can be deployed to address these hurdles include investing in advanced warehouse manufacturing systems (WMS).

One of the most commonly cited use cases for industry 4.0 is connectivity, so in this case, the use of IoT and warehouse operations for smart warehousing to connect every item, employee and device for real time visibility across the supply chain.”

Investing in WMS solutions and IoT for warehouses can drive a variety of benefits within manufacturing and supply chain operations, “the technology can strengthen order management, w w w.suppl yc ha i ndi gi ta l. com

43

TECHNOLOGY

increase labor productivity, and maximise the use of warehouse assets,” says Merry. “Ultimately this will drive costs down and create an opportunity for greater warehouse visibility, agility, and productivity. This will build the foundations for profitable growth and improve customer experience.”

Merry states that “ultimately efficient distribution drives speed, which allows companies to maximise their product placement strategies, better prioritise their tasks, implement productivity standards and increase logistics effi44

ciency, which all could be considered drivers of rapid innovation.”

“ Adopting cloud based digitally enabled solutions can be the foundation for endto-end visibility” — Tara Merry, Industry and Solution Strategy Director, Infor

THE IMPORTANCE OF SUPPLIERS FOR RAPID INNOVATION Whether it’s simple parts or complex systems, Merry emphasises that “suppliers are essential to any manufacturer, and the supplier relationship doesn’t need to be painful or risky.

Creating a flexible connected supplier network built on trust is key and can enable innovation.”

In the minds of a high-tech manufacturer, maintaining a competitive advantage is being the first to market

JUNE 2020

2002

Year founded

10,000 Number of employees

45

with differentiated, high-quality products.

an example might include leaning on

“Having the right supplier network that

the expertise that resides in your supply

is optimised to reduce complexity and

base to enable mass customisation of

increase speed and visibility through

goods. Customisation requires signifi-

component standardisation is a key ena-

cant changes to design, supply chain,

bler of rapid innovation,” Merry notes.

sales, manufacturing and delivery. If

Another driver of rapid innovation

these aspects are not working together,

when it comes to suppliers is collabora-

the entire business model falls apart.

tion and co-innovation. In this instance,

Therefore, collaboration with suppli-

Merry explains that one follows the

ers can enable manufacturers to stay

other. “Collaborating with suppliers can

focused on their core competencies.”

lead to co-innovation and can act as an extension of a manufacturer’s brand. So, w w w.suppl yc ha i ndi gi ta l. com

T O P 10

46

JUNE 2020

Logistics Leaders Supply Chain Digital takes a look at 10 of the finest leaders in logistics globally WRITTEN BY

SEAN GALEA-PACE

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

47

T O P 10

HQ

SEATTLE, USA

575,700 NUMBER OF EMPLOYEES

$280.5bn REVENUE IN US DOLLARS (2019)

48

10

Tim Collins [ VP, WORLDWIDE AMAZON LOGISTICS ]

Collins began his career with Amazon in 1999, and worked in a variety of different roles before taking on the position of Vice President, Global Community Operations, in 2015. Collins rejoined Amazon a year later in 2016 and stepped into the role of Vice President, Worldwide Amazon Logistics. Collins is a graduate of the University of Washington.

JUNE 2020

HQ

EDEN PRAIRIE,USA

15,262 NUMBER OF EMPLOYEES

$16.6bn REVENUE IN US DOLLARS

49

09

Bob Biesterfeld [ PRESIDENT AND CEO, C.H. ROBINSON ]

Biesterfeld has worked at CH Robinson in a variety of positions for more than 20 years. In his role as President and CEO, Biesterfeld develops innovative solutions to move freight better, faster and more cost effectively than ever before. Biesterfeld strives to foster a culture of innovation where his team puts the success of its customers and contract carriers at the heart of operations. Biesterfeld is a graduate of Winona State University.

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T O P 10

HQ

LOWELL, USA

24,681 NUMBER OF EMPLOYEES

$7.1bn

REVENUE IN US DOLLARS (2017) 51

08

John N. Roberts

[ PRESIDENT & CEO, J.B. HUNT TRANSPORT SERVICES ]

Roberts has been President and CEO of J.B. Hunt since 2011. Having graduated with a BSBA degree in Marketing at the University of Arkansas in 1988, he is on the board of Federal Reserve Bank of St. Louis. Roberts’ company, J.B. Hunt, is renowned as one of the largest transportation logistics firms in North America and prides itself on providing safe and reliable transportation services to a diverse group of customers across the United States, Canada and Mexico.

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

T O P 10

HQ

OMAHA, USA

41,967 NUMBER OF EMPLOYEES

$22.8bn REVENUE IN US DOLLARS

52

07

Clark Ponthier [ SVP, SUPPLY CHAIN AT UNION PACIFIC ]

Ponthier is an experienced executive with broad supply chain, manufacturing and engineering experience at Fortune 500 companies.

He is a respected global leader with a proven ability to drive sustained change across organisational boundaries. In his role as Senior Vice President, Supply Chain, at Union Pacific, Ponthier is responsible for overall leadership on strategic sourcing, warehousing, planning, supplier quality, fueling operations and wastewater treatment operations. Prior to joining Union Pacific in 2018, Ponthier previously worked at Ingersoll Rand and Dell.

JUNE 2020

HQ

ESSEN, GERMANY

72,000 NUMBER OF EMPLOYEES

$18.3bn REVENUE IN US DOLLARS

06

53

Jochen Thewes [ CEO, DB SCHENKER ]

Thewes is an internationally recognised logistics expert with over 20 years of senior management expertise and experience in both regional and global positions. Prior to joining DB Schenker, Thewes held several senior management roles within the global logistics group Kuehne + Nagel. He has worked in a range of different countries, including Brazil, China, Vietnam, Hong Kong and the United States before moving back to Germany.

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

HQ

SCHINDELLEGI, SWITZERLAND

75,876 NUMBER OF EMPLOYEES

$19.3bn REVENUE IN US DOLLARS (2017)

55

05

Detlef Trefzger [ CEO, KUEHNE + NAGEL INTERNATIONAL AG ]

Trefzger has been CEO at Kuehne + Nagel since 2013. He has previously worked at DB Schenker for 14 years in several different roles, and joined the Board of Directors of the Swiss-American Chamber of Commerce in Zurich, Switzerland, in 2019. Trefzger has a mission to enable his customers to convert technological challenges into fruitful business opportunities. He understands that every customer is unique and strives to deliver solutions that meet specific customer needs and provide tailor-made solutions.

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

T O P 10

HQ

GREENWICH, USA

100,000 NUMBER OF EMPLOYEES

$17.2bn REVENUE IN US DOLLARS (2017)

56

04

Bradley Jacobs [ CHAIRMAN AND CEO, XPO LOGISTICS ]

Jacobs is the Chairman and CEO of XPO Logistics. He has helped build five companies from scratch, with all five becoming billion dollar and multi-billion dollar industry leaders. Since joining XPO Logistics in 2011, Jacobs has achieved several big accomplishments, with the company recognised as the seventh highest performing stock of the last decade on the Fortune 500, based on Bloomberg market data.

Under Jacobs’ leadership, XPO conducts business with over 50,000 customers in 30 countries.

JUNE 2020

HQ

MEMPHIS, USA

425,000 NUMBER OF EMPLOYEES

$65.4bn REVENUE IN US DOLLARS

57

03

Dr. Udo Lange [ PRESIDENT AND CEO, FEDEX LOGISTICS ]

Dr. Udo Lange is president and chief executive officer of Memphis-based FedEx Logistics, an integrated global logistics organization providing a wide variety of supply chain, fulfillment, air and ocean cargo, customs brokerage and trade services, managed trade solutions and repair services. Dr. Lange is responsible for the leadership and strategic direction of FedEx Logistics.

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

E M E A | A P A C | | APAC N O R T H | A EMEA MERICA AMERICAS FIND OUT MORE

FIND OUT MORE

T O P 10

60

Philippe Gilbert [ PRESIDENT AT UPS SUPPLY CHAIN SOLUTIONS ] Having joined UPS in early January 2019, Gilbert is responsible for Global Logistics and Distribution, Global Freight Forwarding, UPS freight and the technologydriven truckload freight brokerage business at Coyote.

Prior to joining UPS, Gilbert worked at DB Schenker and GEODIS Wilson, the freight management division of international logistics provider, the GEODIS Group. Gilbert earned a degree in Finance from Institut Superieur de Gestion (ISG) in Paris, France, and is fluent in English, Spanish, French and Portuguese.

HQ

ATLANTA, USA

481,000 NUMBER OF EMPLOYEES

$71.8bn REVENUE IN US DOLLARS

JUNE 2020

61

The UPS Movement CLICK TO WATCH

|

1:33

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T O P 10

62

Oscar de Bok [ CHIEF EXECUTIVE OFFICER, DHL SUPPLY CHAIN ] De Bok is the CEO of DHL Supply Chain, the world’s leading contract logistics specialist, and is a Member

HQ

of the Board of Deutsche Post DHL Group. De Bok

BONN, GERMANY

is passionate about his company’s people and the

200,000

potential technology has to transform the world.

Having worked at DHL in several different leadership roles for 20 years, De Bok has been the CEO since October 2019. He is also a graduate of the University of Groningen and a passionate sailor.

JUNE 2020

NUMBER OF EMPLOYEES

$15.1bn REVENUE IN US DOLLARS

63

Is a Customer Centric Supply Chain Feasible?

CLICK TO WATCH

|

2:44

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CANOPY GROWTH: WORLD’S LARGEST CANNABIS DISTRIBUTION NETWORK

64

WRITTEN BY

JOHN O’HANLON PRODUCED BY

ARRON RAMPLING

JUNE 2020

65

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

C A N O P Y G R O W T H C O R P O R AT I O N

CANOPY GROWTH CORPORATION’S LOGISTICS DIRECTOR MATTHEW SLY TALKS ABOUT THE POST-LEGALISATION CHALLENGE OF DISTRIBUTION IN A REGULATED ENVIRONMENT

C

anopy Growth Corporation (Canopy) was established in 2013 at Smiths Falls, Ontario as a grower, processor and

producer of medical cannabis. Cannabis originates from India and Asia, where it’s been used for many thousands of years and is so widely 66

used today that a history review is unnecessary.

It’s only recently though that western medical science has started to accept the efficacy of cannabis in alleviating illnesses such as epilepsy, multiple sclerosis (MS) and muscular spasms as well as a host of other conditions, both physical and mental. Research and trialling will doubtless isolate and validate many new cannabinoidbased remedies.

The debate about legalising cannabis has rumbled on for decades, those in favour pointing out that it is less addictive or physically harmful than either tobacco or alcohol, those against arguing that it is a gateway to hard drugs. However that argument is pretty much lost: legalisation in many countries has generally been welcomed

JUNE 2020

“ THERE WAS NOBODY TO FOLLOW, NO REARVIEW MIRROR: WE WERE THE LEADERS!” — Matthew Sly, Logistics Director, Canopy Growth

67

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C A N O P Y G R O W T H C O R P O R AT I O N

“ THE RECREATIONAL MARKET IS WHERE THE MAJOR PART OF OUR BUSINESS NOW COMES FROM” — Matthew Sly, Logistics Director, Canopy Growth

by enforcement agencies because it decoupled pot from the illegal drug trade controlled by criminals.

Cannabis for recreational use was legalised by the Canadian government in October 2018, opening a completely new market opportunity to the already well-established industry leader Canopy Growth and its subsidiaries, Tweed Inc (which grows the plants) and Spectrum Therapeutics (which supplies medical formulations).

Today, Canopy is the world’s biggest

68

producer and distributor of cannabis and employs some 3,500 people.

From growing sites all around Canada, some under glass producing up to five harvests a year, some in open fields yielding a single harvest, the bulk product is brought in armoured trailers to the processing and packing plant at Smiths Falls.

It was in the run-up to legalisation that Matthew Sly was appointed Logistics Director of the company.

At that point the company employed just 150 people, he recalls, and had no formal logistics department. Until then it had been comparatively simple as all operations were out of a single site at JUNE 2020

Canopy Growth: Regional Distribution Center CLICK TO WATCH

|

2:19

69 Smiths Falls. But as acquisitions were

concentrates, had yet to be formulated

made in other provinces, licensing and

for a completely new market. One

moving the cannabis became more

big unknown was how large this new

complex and a supply chain profes-

retail market might become: Canopy

sional was needed.

increased production and growing

For him, the challenge facing Canopy

capacity at this time to meet expected

called to mind how the first settlers

demand but has since modified its

moving westward across Canada must

approach. It aims to maintain its posi-

have felt over a century ago. “There

tion as the world’s leading cannabis

was nobody to follow, no rear-view mir-

company but growth is being carefully

ror: we were the leaders!” Legalisation

matched to market demand as that

presented so many unknowns, and

becomes clearer.

though the core product was now

Recreational shipments outstrip

legal, today’s product portfolio, includ-

medical by a factor of around 10:1

ing edibles, vapes, beverages and

in units, says Sly. “That is where the w w w. s up p l y c h ain digi t a l . c o m

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hing from small amounts of cash to some of the world’s most valuable

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ace software lets you just sit back and watch your business move.

C A N O P Y G R O W T H C O R P O R AT I O N

The Great Clone Transfer: Moving over 120,000 cannabis plants from Smiths Falls to BC CLICK TO WATCH

|

4:51

72

major part of our business now comes

they provide, has made for a very

from.” And remember that this is a

successful partnership. We can have

high value, rigidly regulated product

goods to the value of anything from

requiring specialised handling. Brinks

CAD$5mn to CAD$20mn on a trailer,

is the global leader in security bulk

and this needs very specialised treat-

transfer of cash and securities for

ment because it not only has to be

banks. Within a month of legalisation,

secure but also in temperature con-

Canopy signed an ongoing agree-

trolled and pharma-grade transports.”

ment with Brinks Canada to provide

Brinks continues to be a key partner,

logistics for its domestic recreational

and it’s not hard to understand why.

distribution network. “We have a fleet

Its CEO Douglas Pertz was excited by

of armoured tractor trailers that we

the tie-in with Canopy, he estimates

use for all our deliveries. The value

the global cannabis industry to be

Brinks brings to us, and the network

worth around US$160bn. As finance

JUNE 2020

is increasingly traded electronically, it’s not just producers like Canopy who will be the winners.

The recreational product is confined to Canada, the medical distribution

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

Matthew Sly Title: Director of Logistics Location: Ottawa, Canada

is destined for Europe, Australia, and South America. Starting to export cannabis was quite challenging, Sly admits.

“One of my first challenges was figuring out how to move cloned plants and cultures to other continents. Navigating the regulations around the movement of agricultural products is one thing, doing that with a controlled substance is another!” His first international shipment was to Germany to open up the Europe market. His second international shipment was to Australia, which required special temperature and humidity-controlled shippers that were custom designed to make sure the cloned seedlings and cultures would not flower or come to harm in up to 36 hours of transit.

Part of Sly’s original brief was to set up a Canada-wide warehousing operation and he continues to help design all Canadian and global storage loca-

After a decade in the pharmaceutical and high-tech industries, Matthew turned his attention to logistics.

During his 20 years in the field, he has managed one of the largest auto parts fulfillment centers in North America and has also managed Walmart’s Eastern Canada Distribution Center. Now as the Director of Logistics at Canopy Growth Corporation, Matthew oversees all logistics and worldwide distribution of medical and recreational cannabis out of the world’s largest cannabis distribution center in Smiths Falls, ON. In 2018, Matthew piloted the design of Canopy’s Regional Distribution Center and continues to improve efficiencies with state-of-the-art technologies and innovative solutions.

tions. Here the experience he’d had of running Walmart’s massive Canadian w w w. s up p l y c h ain digi t a l . c o m

73

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75 distribution facility equipped him for the daunting challenge. At the beginning of 2018 he was asked to plan and implement a recreational distribution network ready to capture a new and quite unknown demand. He had five months to buy a distribution center, set it up, work out the excise stamp requirements, and put contracts in place with carriers.

This called for him to be very creative to cater for as yet unknown quantities, products and even destinations.

Back at the Smiths Falls distribution center, Canada’s rigorous excise

2013

Year founded

$226mn Revenue in US dollars

3,500 Number of employees

stamp requirements were a further w w w. s up p l y c h ain digi t a l . c o m

C A N O P Y G R O W T H C O R P O R AT I O N

76

Canopy Growth: Corporation Culture CLICK TO WATCH

JUNE 2020

|

5:33

challenge – and in this case an opportunity to implement the reliability, flexibility, speed and data capture that only automated packing can really ensure. As with tobacco, cannabis producers have to obtain a licence from the Canada Revenue Agency (CRA) permitting them to buy excise stamps – and each province and territory’s stamp is differently coloured “Every unit we ship out has to carry an excise stamp; and they come without adhesive. So I worked with a partner called Plan Automation LP to develop custom excise stamping equipment and high speed packaging lines that allow us to

“ THE VALUE BRINKS BRINGS TO US, AND THE NETWORK THEY PROVIDE, HAS MADE FOR A VERY SUCCESSFUL PARTNERSHIP” — Matthew Sly, Logistics Director, Canopy Growth

pick and place these stamps, at rates from 100-300 units per minute, with the flexibility to accommodate all our different product types.”

There’s been a big automation programme at Canopy, he says, placing it ahead of its competitors in being able to respond to customer orders flexibly and fast. An order can be received, packaged, stamped with an excise stamp and dispatched within four hours for delivery anywhere in Canada by 8am the following morning. Digital transformation is not achieved in w w w. s up p l y c h ain digi t a l . c o m

77

C A N O P Y G R O W T H C O R P O R AT I O N

78

isolation of course. Brinks for example

to eliminate paperwork and transac-

has custom-designed its own systems

tional errors. We simply can’t have

so that Canopy can track exactly

errors because we are required by

where its trucks are, what orders are

Health Canada to account for every

on them and when they are delivered,

single gram. And we are introduc-

with proof of delivery (POD) instantly

ing more production automation, for

relayed to Canopy and triggering

example robotic picking and packing

an automated bill. “Because of the

of orders. The digital transformation

complicated regulatory environment

of our industry is the one key thing that

we work in we’ve had to automate a

will enable us to grow and be more

lot of our internal processes including

cost efficient.”

documentation controls and transfer processes, JUNE 2020

Flexibility and agility are qualities Sly has learned from experience, he says.

79

He could have added a great deal of

reach their potential to deliver value

confidence, since many would have

for themselves and the organisation

fled from some of the challenges he

– it is, he says, a fun environment for

describes. With a CV verging on the

someone who thrives on change.

picaresque, he has worked with con-

“Logistics is the heart of the company;

struction equipment, high-tech PCB

if the heart is not pumping properly

manufacture, pharmaceutical products,

everything will shut down.”

English teaching, auto parts fulfillment (at a rate of 20,000 products a day) and large retail distribution. Now, he is truly working in a culture that suits his personality. Canopy, he notes, gives its people the autonomy they need to w w w. s up p l y c h ain digi t a l . c o m

80

JUNE 2020

81

Terex’s supply chain digitalisation approach WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

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

T E R E X C O R P O R AT I O N

Colby Mayberry, Director of Logistics APAC at Terex, discusses Terex’s digital transformation journey in the supply chain space

C

olby Mayberry is Director of Logistics APAC at Terex. He has experience working in several different markets such

as North America, Europe and now Asia. Mayberry recognises that each market poses a different challenge. “One of the biggest things that I’ve learned is that if you had a strategy six months ago 82

in China then it’s no longer valid,” says Mayberry.

“This is due to the speed that the market changes.

You have to be quick, dynamic and on your feet to adapt to the requirements of the market. You can’t afford to just assume it’s a phase and will go away like in other markets.” That proactive and agile approach is a key pillar to Mayberry as he and his team comes up with all sorts of creative solutions to adapt to the ever changing environment.

“We could have a simple problem such as the wifi being down but within 20 minutes everyone has their phones out hot-spotting,” explains Mayberry.

“I find that kind of thing extremely encouraging because it shows you don’t need to have a bar chart on everything. Sometimes, the best solutions are determining what needs to be fixed, testing the solution and making it all work out.”

JUNE 2020

83

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

T E R E X C O R P O R AT I O N

“ You have to be quick, dynamic and on your feet to adapt to the requirements of the market” — Colby Mayberry, Director of Logistics APAC, Terex

Over the past few years, Terex has made great strides in its digital transformation journey. “Two years ago, I’d have just said that we were trying.

But now, it’s becoming an absolute necessity,” says Mayberry. “The biggest thing we’re centered around is IoT and it’s a massive part of our journey as we look to innovate and drive change in the marketplace. Most of our major product lines are equipped with telematics systems.” Terex’s telematic systems are not only providing

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Genie *Lift Connect Launch CLICK TO WATCH

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1:54

85 information to the users but also giving

looks cool. It’s all about defining the

Terex access to the usage data to pro-

problem that we’re going to solve.”

vide new opportunities for supporting

The value of partnerships are a key

our customers. Mayberry understands

area of interest to Mayberry. Terex

the importance of leveraging technol-

has formed strategic relationships

ogy that makes a difference rather

with Hoegh Autoliners, UECC and

than utilising it for technology’s sake.

Land Transport. “We really went

“We can always tell how well received

through a transformational journey of

any of our technology is because of

what we would consider a strategic

customer feedback,” affirms Mayberry.

sourcing initiative,” says Mayberry.

“Before introducing any new systems,

“Through that, we’ve launched a series

we must work out why. We have to

of bids for different markets and types

always ask ourselves: ‘what problem

of freight to choose not only provid-

are we trying to solve?’ We can’t just

ers that will offer us good value, but

implement technology because it

will also compliment our business. w w w. s up p l y c h ain digi t a l . c o m

T E R E X C O R P O R AT I O N

86

JUNE 2020

“ Sometimes, the best solutions are working out what needs to be fixed and trying whatever you can to see if it works” — Colby Mayberry, Director of Logistics APAC, Terex

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

87

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Over the past few years, we’ve put

same customer urgency that we do as

an increased focus on aligning our

well as treat customers the same way,”

values with our partners. These part-

says Mayberry. “Whereas locally, it’s

nerships are the next level of what

all about adaptation. Take Australia

is needed in the logistics industry,

for instance, that’s a very customer-

whether that’s on the inbound side

focused market. If you have someone

to get raw materials to the factory

driving a truck and they’re upset or not

or the outbound side to get the unit to

in a good mood, then it could impact

the customer.” Mayberry understands

your next sale. So, when we’re looking

the importance of differentiating global

for partners we’re looking at how they

and local providers and believes both

train their staff, run their day to day

are influential. “With a global provider,

operations and solve problems. It’s key

it’s about having the ability to react in

that any potential partnership stands

all of the markets. They must have the

up and doesn’t just look good on paper

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

Colby Mayberry Title: Director of Logistics

Company: Terex

Industry: Lifting equipment Location: Asia Pacific region He currently leads the APAC region, optimising supply chain routings and selecting carriers to support business growth and stability globally. He has worked across supply chain functions for Terex on three continents, leading system implementations as well as aftermarket purchasing departments for their Aerial division. He is an active member on the Western Washington University supply chain board. w w w. s up p l y c h ain digi t a l . c o m

89

T E R E X C O R P O R AT I O N

90

“ The biggest thing we’re centered around is IoT and it’s a massive part of our journey as we look to innovate and drive change in the marketplace” — Colby Mayberry, Director of Logistics APAC, Terex

but that they can actually perform the business too.”

Mayberry is well aware of the latest trends in the logistics industry, particularly from an environmental point of view. “New environmental standards are affecting a range of different markets. We must always ensure we’re transparent with our partners; we know there are new structures that are being put in place but how are they planning for it? Are they ignoring the changes and hoping it goes

JUNE 2020

91

away? Are they investing in technol-

initiatives such as one-day delivery,”

ogy to combat it? That is really where

he explains. “We know that’s not eco-

strategic discussions are important

nomical, however, it might be what the

because it encourages collabora-

market is demanding. We’re working

tion.” Sustainability is a key topic area

on solutions that satisfy the customer,

for Mayberry and he recognises the

environment, and cost.”

challenge of competing with giants

Looking to the future, Mayberry has

such as Amazon and staying true to

an idea of what the future will hold

Terex’s sustainability drive. “Emissions

for the logistics industry over the

from ships and airlines are one of the

next few years. “I believe there will

biggest contributors to air pollution

be increased pressure for real-time

so we must be conscious of that,

information,” says Mayberry. “You do

particularly when Amazon introduces

have that Amazon-esque experience w w w. s up p l y c h ain digi t a l . c o m

T E R E X C O R P O R AT I O N

92

JUNE 2020

where you can track packages, however, the shipping industry is still quite far behind. Digitalisation will start to become more transparent; whether that be standardising our radio frequency identification (RFID) tracking on the ocean freight side or clearances becoming more efficient by utilising new technology like blockchain. We’re also starting to see more creative solutions, particularly in terms of reverse logistics. It’s all centered around how we can reuse and recycle more because logistics can be quite wasteful. Being carbon neutral will be a huge thing and I expect the logistics industry to be under increased pressure which will likely drive prices up to a degree as well. However, it’s up to us and our partners to work together and strategise a way to prepare for the upcoming future. Increasing efficiency while being more environmentally friendly remains the biggest challenge but something we continually work towards.”

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AUSTRALIA POST

94

Delivering digital transformation WRITTEN BY

DAN BRIGHTMORE

JUNE 2020

PRODUCED BY

STUART IRVING

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AUSTRALIA POST

How Australia Post is supporting security and e-commerce with identity checks for anti-money laundering, passport applications, police checks and more

A

ustralia Post processes eight million identity transactions every year, supporting consumers, businesses and government

with the implementation of products and solutions which require identity checks: from identity verification to support financial services organisations’ 96

anti-money laundering obligations, to property transfers, passport applications, aviation and maritime security identity checks, and police checks for everyone. “Our mission is to simplify identity moments for everyone,” pledges Alberto Simongini, Head of Technology & Engineering. “Identity products and services are actually one of the key growth areas for Australia Post over and above our core mail and parcel services.”

Simongini joined Australia Post in 2017 in the midst of its digital transformation and notes this transition is allowing the postal organisation’s Business & Government clients to directly interact with their customers. “In regulated markets where a face-to-face identity verification is required, Australia Post can play to its strengths, because we run the largest retail network with trained people in JUNE 2020

97

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AUSTRALIA POST

98

the country, with nearly three times the number of retail outlets of the second largest retailer. With our vast range of services to connect Australians in every corner of the country, there is no reason why we cannot become the front door of Australia for important services that require identity verification.”

Australia Post is behind Digital iD™, the first form of digital identity in the country to be accredited by the federal government’s Digital Transformation Agency. In a full online experience, Digital iD™ combines back-to-source JUNE 2020

“ Now, we’re establishing new ways of working and it’s more about our passion towards continuous improvement and growing our products - that’s when engineering becomes product engineering” — Alberto Simongini, Head of Technology & Engineering, Australia Post

Digital iD™ – a simpler way to verify CLICK TO WATCH

|

1:29

99

document verification and facial biom-

explains Simongini. “Our business

etric binding, which offers communities

transformation triggered a large invest-

access to both government and private

ment into the latest technologies from

sector services. Simongini’s team is

cloud infrastructure to automation (e.g.

responsible for the execution of this

Continuous Integration/Continuous

product roadmap in terms of engineer-

Delivery), from Big Data to machine

ing and operation.

learning and from cyber security to

Technology plays an important role

compliance (ISM and PCI). Now that

in attracting and retaining the talent

we’ve established new ways of work-

required to continue the work started

ing and integrated this with a new

with the organisation’s digital transfor-

technology ecosystem, our team’s

mation. “Our workforce is very diverse,

engagement is more about our passion

from customer experience design to

towards continuous improvement and

development, security and operation,”

growing our products in the market.” w w w. s up p l y c h ain digi t a l . c o m

AUSTRALIA POST

“ We need vendors that keep feeding us with ideas and innovative capabilities that we can leverage, now and in the future, to evolve our level of compliance and digital maturity in what we do.”

— Alberto Simongini, Head of Technology & Engineering, Australia Post

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JUNE 2020

101

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AUSTRALIA POST

102

Simongini believes a tight integra-

the subject matter expert of the prod-

tion between product management

uct in itself, and pushing its area of

and engineering is a must. “At

influence towards sales and cus-

Australia Post, we follow the scaled

tomer engagement rather than being

agile methodology. Most impor-

inward facing; that’s when engineer-

tantly, it’s a collaboration to allow

ing becomes product engineering.”

people to understand why things are

“We’re at an exciting point where we

needed, so you can all rally behind

can see the fruits of our labor and the

the challenges ahead to deliver a

real business benefits of our trans-

customer-focused solution. The team

formation,” affirms Simongini. “It’s

becomes owners of the product and

fantastic to engage customers directly,

we see a shift from engineering being

collect feedback, and continue to work

about execution to actually becoming

on our products, because even with

JUNE 2020

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

“ Corporations, like Western economies, are often impatient, and moving from innovation to growth takes time and perseverance so we can’t just invest in innovation hoping to find the unicorn” — Alberto Simongini, Head of Technology & Engineering, Australia Post

small changes we can make a very big impact. It’s actually become a part of the lifecycle of our products and the way we take them to the next level, which makes the potential for what we can achieve in the future very exciting.”

Creating the right culture to develop new ways of working and an ability to constantly adapt across the organisa-

Alberto Simongini Title: Head of Technology & Engineering Location: Melbourne, Victoria Alberto Simongini is an award-winning organisational leadership expert with over 15 years’ experience in the Information, Communication and Technology industry. A dedicated 103 program manager Simongini works to overcome obstacles and consistently achieve complex, large-scale program goals within tight timeframes and budgetary and compliance requirements. His experience in previous consulting roles in system integration, network operation and media - have helped him navigate the challenges of Australia Post’s digital transformation.

tion has been integral to the success of the transformation. “Ideally, you want to build your team from the very beginning and scale it so the culture w w w. s up p l y c h ain digi t a l . c o m

AUSTRALIA POST

FACT BOX

How digital is transforming IT roles at Australia Post

104

Digital transformation is everywhere, believes Alberto Simongini, Head of Technology & Engineering at Australia Post.

“Technology is at the heart of everything we do and what every modern company does.

Therefore, its development and a better understanding of what it can achieve, can help all areas of a business, including sales,” he says. “It’s not all about transactional sales; it’s about understanding what the technology, its environment, and how our solutions, can promote integration.”

grows with it,” reasons Simongini.

“This is not always possible, so we have to find ways to support other parts of the organisation by inheriting the resources of different teams.

Often, each team brings their own technology and culture, so we’ve had to break down the old ways and encourage a new esprit de corps a JUNE 2020

“There is a shift in the industry where the product engineer becomes the expert in that product and can support sales and move up in the chain. So, when it comes to digital transformation of the traditional model the more your skill develops, the more your worth in the organisation is changing.

To some extent it is about selecting the right person or the right skills for the outcome required. It means the traditional model of HR is transforming across the ICT industry.”

few times.”

This approach has been vital for Simongini when faced with resistance to change. “It’s been a barrier to overcome because ultimately we are accountable for the end-to-end results and delivering the benefits to the business and customers.”

Building the alliances and partnerships required to sustain Australia Post’s digital transformation has led Simongini and his team to source field contractors to ensure they keep control of the outcome. “The traditional ways of sourcing contractors didn’t fit our purpose, so we are enriching our approach with different ways of recruiting the right people,” he says. “Not just in terms of what they know and the way they execute, but also in the way they engage and operate within the business. That’s why we have started prototyping different ways of engaging consulting companies in the market.”

Simongini notes, “we’re working successfully in this way as our suppliers are deeply engaged in our delivery rhythm and provide us the flexibility to make sure we find talent that is the right fit in our teams. They are w w w. s up p l y c h ain digi t a l . c o m

105

AUSTRALIA POST

in a relationship with solid and international companies providing specific, extremely reliable and secure software for our products. We need vendors that keep feeding us with ideas and innovative capabilities that we can leverage, now and in the future, to evolve our level of compliance and digital maturity in what we do.”

Simongini sees a place for startups in the ecosystem, viewing them as offering “cherry on top” potential.

“They’re not necessarily at the core of our ecosystems, but we definitely see the value in specific and innovainvested in developing and maintain-

tive tools in software lifecycle to help

ing with us the right people within

us better build, operate and moni-

the teams’ culture and Australia Post

tor our applications. At Australia Post,

delivery framework.”

we’ve learned how to select and groom

Australia Post collaborates with

opportunities with our innovation pro-

key providers in the identity products

gramme to select ideas to accelerate

and services space and innovators in

and incubate before we actually start

developing and deploying biometric

to invest considerably. Corporations,

authentication and identity assurance

like Western economies, are often

solutions worldwide, like Daon with a

impatient, and moving from innovation

long history of product development

to growth takes time and persever-

to enable high quality and international

ance. We can’t just invest in innovation

standard photo capture. Simongini

hoping to find the unicorn; we must

notes that the business is very careful

carefully analyse the potential and the

in its vendor selection: “We’ve invested

timing of the commercial return.” w w w. s up p l y c h ain digi t a l . c o m

107

AUSTRALIA POST

“For example, we’ve been working with the National Australia Bank on a joint venture for identity fraud prevention called TrustCheck,” reveals Simongini. Essentially, TrustCheck is a service aiming to build a positive reputation and strong engagement across all functional areas - particularly risk, legal, privacy, sales, governance, corporate development and partnerships, and data service owners. “This new e-commerce fraud detection product came through our innovation 108

programmes, and allows for applied machine learning to offer merchants a high degree of confidence that

“ Now the market is ready to embrace the SaaS concept, we’ve also signed an agreement with Mastercard to enable the digital ID to be a form of identification in the credit card application process” — Alberto Simongini, Head of Technology & Engineering, Australia Post JUNE 2020

to automate pre-employment identity verification checks, removing the burden of manual processing for HR departments. “It’s been a great success,” confirms Simongini. “In just six months we already have 30 customers on board. They’re attracted by the fact that our digital services are ISM and PCI compliant, accredited by the Australian federal government’s Digital Transformation Agency as a provider of the identity exchange to be rolled out across government services. Now, the market is ready to embrace our solution, which gives consumers the choice of face-to-face or digital identity verification and puts consumers in control customers they are interacting with are

of their identity. We’ve also signed an

not using stolen or synthetic identities.”

agreement with Mastercard to use

Australia Post understands the

Digital iD™ as a form of identification

complexities of transforming a vast

in its trial of a broader digital identity

network of legacy systems, pro-

service for customers when interact-

cesses and people and has been

ing with other businesses and private

focused on utilising its own digital

organisations.”

solutions. In 2019, it launched its own Workforce Verification product, enabling businesses and government departments to utilise a SaaS offering. This enabled a re-use function in Digital iD™, which has the ability w w w. s up p l y c h ain digi t a l . c o m

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Ninja Van: preserving the startup spirit WRITTEN BY

WILLIAM SMITH

PRODUCED BY

CAROLINE WHITELEY

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

N I N J A VA N

Vin Perez, COO, Philippines, discusses how Ninja Van is maintaining its position as the vanguard of ecommerce logistics in Southeast Asia

L 112

ogistics technology company Ninja Van is one of a number of high tech startups in Southeast Asia, a region ripe for

disruption. That’s precisely what attracted COO, Philippines, Vin Perez back to the region after studying for an MBA at Harvard Business School.

“There’s explosive growth happening here in Southeast Asia, following what happened in the West maybe 15 years ago and China 10 years ago.

Because of that, I was really quite keen on going back. I happened upon this opportunity at Ninja Van, where the company was really looking to establish the regional ecommerce logistics industry.”

While the region brings enormous opportunities, it also has its own challenges. “Ecommerce markets in the West develop straightforwardly. There’s existing infrastructure, there are regulations, technology is quite advanced. Customer adoption of ecommerce is therefore really direct. In Southeast Asia, the infrastructure is not as good. There are JUNE 2020

2014

Year founded

10,000 Number of employees

113

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N I N J A VA N

“ We believe in a virtuous cycle of technology helping us to be lean, which allows us to adapt new technologies that in turn allows us to become leaner, and so on” — Vin Perez, COO, Philippines, Ninja Van

a lot of logistical challenges to make sure that the parcels arrive on time.

Some of the challenges are to do with events like typhoons and the disruption they cause.” Overcoming such issues requires a certain flexibility. “We really have to be creative,” says Perez. “The percentage of the population that uses credit cards is very low, so a large chunk of our deliveries go through as what we call cash on delivery or COD. That’s not so common in the West, but it makes up more than 90% of our

114

deliveries here.”

JUNE 2020

Ninja Van: On the Record with CEO Lai Chang Wen CLICK TO WATCH

|

3:04

115 Ninja Van’s success has also required the intelligent application of technology. “Trying to address the complicated last mile problem here in Southeast Asia starts with technology. We have a talented development team that constantly thinks about these problems and how we can address them. We use a lot of different proprietary technologies in our internal platform, which allows us to provide the quality of service we do.” It is thanks to technology that Ninja Van can take an evidence-based approach to the decisions it makes. “I’m a firm believer w w w. s up p l y c h ain digi t a l . c o m

Your window to endless sourcing possibilites.

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in data. It’s essential to understand

a certain culture and demographic to

how you’re performing, how the

be able to adapt to this kind of tech-

market is reacting and how we can

nology,” says Perez. “In order to have

be more proactive in addressing the

the objective in mind and to be able to

market’s needs. But working with data

reach it, it’s key that everyone is going

is easier said than done. A lot of it’s

for the same goal and has that com-

about making sure you have the right

mon purpose. More often than not, we

database tools and understanding

find the younger demographic to have

who has the ability to deal with such

the ability to operate in this environ-

an infrastructure. You have to adapt

ment.” That emphasis on youth led to

your organisation to be able to address,

new and unexpected solutions to logis-

handle and then really trust the data.”

tics issues. “Especially early on in our

Technology means little without the

tenure, we really looked into the young

proper culture in place, however. “We

problem solvers who may not have

discovered along the way that it takes

had the most experience in logistics,

JUNE 2020

but were willing to explore different

we’d be stuck with an organisation una-

problems in order to solve logistics

ble to adapt. A startup has to always

problems in a very different way.”

be aware of where it is investing its

That startup spirit is not just present

resources, making sure that it doesn’t

in the younger members of the team,

grow wasteful. I think that’s essential,

however, having instead suffused the

and it feeds back into how we use

entire organisation from the very start,

technology. We believe that, because

as Perez explains: “Over the past sev-

of technology and how we deploy it,

eral years we’ve been growing more

we are able to scale while remaining

than 10-fold over the span of a year,

lean. We believe in a virtuous cycle of

and in certain periods even quicker.

technology helping us to be lean, which

If we hadn’t kept the team lean and

allows us to adapt new technologies

agile and willing to explore new ways

that in turn allows us to become leaner,

of serving our clients and operating,

and so on.”

117

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

Vin Perez

Vin Perez graduated with a Bachelor of Science in Industrial Engineering from the University of the Philippines, and a Master of Business Administration from Harvard University. Prior to Ninja Van Philippines, he has acquired operations management experience as a Demand and Supply Planning Executive for Nestlé. His vision for Ninja Van Philippines is to connect every Filipino to the parcels and products they want one delightful delivery at a time. In his spare time, Vin plays basketball and is working to finish the latest role playing video game on his PlayStation. w w w. s up p l y c h ain digi t a l . c o m

N I N J A VA N

118

“ We really looked into the young problem solvers who may not have had the most experience in logistics, but were willing to explore different problems in order to solve logistics problems in a very different way” — Vin Perez, COO, Philippines, Ninja Van JUNE 2020

Ninja Van partners with some of the biggest ecommerce operators in the region in the form of Shopee and Lazada. “We have a mutually beneficial relationship with them, where we essentially serve their logistics needs.

So we integrate with their platforms, we speak the same language in terms of technology and customer experience, and that allows both parties to provide a solid experience.” The super app Grab is another key synergistic partner. “Grab offers many different services in many different areas, including delivery, and

119

that’s where Ninja Van comes in, provid-

of the big ticket items. Operationally,

ing delivery outside of the main metro

I see it just getting more and more opti-

areas,” Perez explains. “At the same

mised.” Such improvements are all in

time, we’re cognizant that a big chunk of

the service of improving the customer

business in the market is still happen-

experience. “At the end of the day, being

ing in the physical retail space. Smaller

able to provide a solid, reliable experi-

SMEs haven’t been well served - that’s

ence to the people who ship with us and

a very underserved part of the market

the people we deliver to is key.”

that we really want to serve a lot better.”

Going forwards, Perez still sees room for improvement, particularly when it comes to automation. “Right now we’re looking at fully automated facilities that can process parcels for us. That’s one w w w. s up p l y c h ain digi t a l . c o m

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Motisun: supplying a diverse business portfolio in Africa WRITTEN BY

JOHN O’HANLON PRODUCED BY

JUSTIN BRAND

JUNE 2020

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MOTISUN GROUP

Motisun Group has grown to become one of Tanzania and Africa’s dominant conglomerates, achieving stellar growth and diversification

T 122

he port of Dar es Salaam, the ‘haven of peace’, is the gateway to eastern, central and southern Africa. The former Tanzanian

capital has an international airport, and rail links to the landlocked nations, including the Chinesefunded TAZARA linking it with Zambia’s Copper Belt and a planned 2,190-km railway to Rwanda, Burundi and the DRC. It is expanding to rival Mombasa and Djibouti as the country develops its industry and the port acclimatizes with the demand for container and bulk mineral export capacity.

Tanzania is not being left behind in Africa’s internet transformation. Dar es Salaam is connected to the rest of the world by all the major undersea cables that have been laid in recent years, including SEACOM and the Eastern Africa Submarine Cable System (EASSy). Other deepwater ports such as Pangani, Mtwara and Bagamoyo are being developed to take the pressure from Dar es Salaam and provide access for Panamax vessels.

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MOTISUN GROUP

Motisun CLICK TO WATCH

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6:03

124

This vibrant city has been home

Sayona brand, as well as cabling and

to the Motisun Group since it was

plastic products of all kinds, distribut-

founded in 1992 by Subhash Patel. And,

ing them throughout Tanzania and

though it has grown to rank among

exporting them to all African markets.

the strongest business groups on the

It manufactures locally in some of those

continent, it remains a family concern.

markets. More recently, Motisun Group

It started with a small-scale steel plant

has been able to diversify into hospital-

with a single induction furnace and

ity, hotels, resorts and real estate.

rolling mill, but today MMI Steel Mills

A glance at the diversity of interests

produces more than 200,000MT of

reveals a complex logistics and sup-

steel a year. However, steel is only one

ply chain network. Key to the smooth

of many products the group produces.

running and cost management of this

It also manufactures paints, pipe,

network is the procurement depart-

beverages and juices sold under the

ment. Manoj Kumar is Head of Global

JUNE 2020

Procurement for Motisun, oversees

fruit juices, which are produced at

this vital part of the business from his

state of the art a new plant on a

office in Dar es Salaam and manages

40-acre site in the Mboga area,

a team of procurement professionals

Bagamoyo, which is 150 km from Dar

there in each of the businesses.

es Salaam.� The juices are prepared

The businesses are very diverse,

using fresh fruit sourced from Tanzania,

he says. “Under the Sayona brand,

and the beauty of this product is that

we diverse range of juices, carbonated

fresh fruit of the highest quality, such

soft drinks and packaged drinking

as mangos, pineapple, Guava and

water, and we started going into pure

Orange is available across Africa.

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

Manoj Kumar

125

A global leader, Manoj Kumar, has a successful history in supply chain management involving procurement, vendor management, material requirements planning & continuous process improvements in diverse industries like paint, chemical, steel, plastic, hospitality (food & beverage) in India, Tanzania and Africa. In a career spanning more than 15 years, he has collaborated with teams to manage a wide range of procurement and supply chain processes consisting of assessment & transformation, warehouse management, vendor management/sourcing, risk management, value management/ Value engineering, financial management, and been a key contributor to the development and implementation of continuous improvement initiatives. He has acquired expertise in analysing market activities to build into category strategies to minimise supply risk, drive competitive market advantage, augment productivity & increase operational efficiencies via implementation of standardised processes across all procurement areas. w w w. s up p l y c h ain digi t a l . c o m

If raw materials for Sayona products

supply chain relies upon stockists with

are comparatively simple and reliable

warehouses all over Tanzania, from Dar

to source, the supply chain for the

es Salaam to Mwanza and Arusha to

paints produced under the Kiboko

Mtwara. No area is too remote.

brand is somewhat more complex.

“We have over 5,000 global suppliers

Only 30% of finished goods are

in our supply chain,” Kumar contin-

imported, the rest is manufactured in

ues. Chemicals for the factories are

high-capacity factories, backed by an

sourced via Dubai,South Africa, the

in-house resin & emulsion manufac-

USA and Europe, while much of the

turing plant. The Kiboko division can

steel required by MIIT’s plants comes

produce 50 tons of top-quality paint

from India. Accurate forecasting is

a day to satisfy the 60% share of the

required to keep costs in check and

Tanzanian market that Kiboko holds.

avoid waste. In the context of Africa it

Packaging and labelling are manufac-

is often not possible to achieve just-in-

tured at a separate facility. The onward

time sequencing of materials.

JUNE 2020

Sometime delays at the port con-

on the freeway. However, forecasting

gestion, fluctuations in availability and

gives manufacturing companies a

disruptions to the road and rail systems

leg-up on these elements of planning

have to be factored in with the rise and

and production cycles, companies can

fall of demand, making it necessary

operate with more agility, transparency,

to store enough raw materials at the

and flexibility to adapt to changing pro-

plants to ensure continuity of produc-

duction environments or schemes.”

tion. “Forecasting and planning always

Lead times are dependent on the

depend on market conditions,” says

location of the suppliers, he continues.

Kumar. “It’s a kind of rear-view mirror

Goods from Canada can take 90 days

approach, in that where you’ve been

by sea, whereas from Mumbai the time

can often help determine where you’re

from dispatch to clearance would be

going; but that does not necessarily

around 40 days. With reliable road and

help you avoid a multiple car accident

rail links, importing from South Africa is

“ Many of our vendors have been in place since the company was founded” — Manoj Kumar, Head of Global Procurement, Motisun

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

127

MOTISUN GROUP

128

“ With wide experience and forecasting business planning exposure, we can manage our accounts, warehouse management inventory management and other key procurement functions” — Manoj Kumar, Head of Global Procurement, Motisun

much easier. “Coordinating supply to a

becomes more diverse as the product

particular plant requires a backup plan

portfolio is extended, which happens

that includes a number of pre-approved

almost daily.” The core software plat-

suppliers. Any disruption in availability

forms in use within the group are SAP

will disrupt the entire supply chain.”

and the versatile Tally ERP, originating

Kumar stresses that there’s real

in India. A phased programme of migra-

partnership between Motisun Group

tion is in place as individual businesses

and its suppliers. “Many of our vendors

integrate legacy programmes and

have been in place since the company

Excel-based practices. “With Tally’s

was founded, however the supply chain

accounting application we can manage

JUNE 2020

It is very exciting, though challenging, to be part of a continually expanding group that dominates the East African market in a number of key verticals, says Kumar. “Our Chairman, Subhash Patel, has a simple mantra: there are three ‘Ms’ at the core of any successful business, Money, Mindset and Manpower. Our people find this a great way to focus our minds on our work. Clearly no business can survive without having a firm hand on its finances; then it has to have a clear vision and finally a committed and competent workforce.” Patel is a person of vision, retaining his humility and empathy, despite being a figure of huge influence in Tanzania and the wider African business world, Kumar acknowledges. Under his leadership our accounts, warehouse management

the group is constantly diversifying

inventory management and other key

and adding new products to the exist-

procurement functions,” explains Kumar,

ing divisions. Kumar and his team are

adding that parts of the business are still

fully equipped to accept the challenge

used to the familiar Excel for budget-

of keeping these supplied with the

ing, preparing financial statements and

materials they need.

creating balance sheets. During the migration period, it is easy to import and export cash management information and financial data to and from Tally. w w w. s up p l y c h ain digi t a l . c o m

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