Pura Vida Bracelets: operating an ethical approach in the supply chain
www.supplychaindigital.com
MARCH 2020
MAKING CITIES SMARTER IN HONG KONG Dr Jacob Kam, CEO of MTR Corporation, tells how technology enhances integrated,streamlined and sustainable public transport
Disrupting the education space
Consultancy firms
You see the Windy City. We see an imminent power outage on Michigan Avenue. C3.ai transforms Utilities. Š 2020 C3.ai, Inc. All Rights Reserved. is a mark of C3.ai, Inc.
FOREWORD
W
elcome to the March edition
tainability landscape is transforming.
of Supply Chain Digital!
In a special feature this month, we
In our cover feature this month, we interview Dr. Jacob Kam, CEO of MTR Corporation, about how the organisation is making travel smarter than ever. “We believe that the only
speak with Nandini Basuthakur, CEO of Procurement Leaders, to find out why the upcoming World Procurement Congress (WPC) is the must-attend supply chain event of the year.
T:297 mm
way to push beyond the current high
Elsewhere in the magazine, there
performance is through better digital
are in-depth research features on AI &
technology,” explains Kam.
Data Analytics, Air Freight and Cloud &
Also inside this magazine, we speak with Vincent Moorehead, Senior Director of Strategic Procurement and Supply Chain at Success Academy Charter Schools, to discuss his organisation’s transformation journey in New York City. This issue’s leadership column hears from Gonzalo Salem, Procurement Manager at Volkswagen Australia, as he discusses why a
Cyber that aren’t to be missed! Be sure to also check out interviews with Pure Vida Bracelets, Azerconnect LLC, Logitech and Air France. Lastly, this month’s Top 10 looks at the biggest consulting firms worldwide. Would you like to be featured in the next edition of Supply Chain Digital? Get in touch at sean.galea-pace@bizclikmedia.com
greener approach in procurement is
Enjoy the issue!
key as well as observing how the sus-
Sean Galea-Pace
www.supplychaindigital.com
03
When our clients want to move fast and make things, they turn to us! Nagarro drives technology-led business breakthroughs for industry leaders and challengers. Some of our clients include ASSA ABLOY, the City of New York, DHL, GE, Lufthansa, Siemens and T-Systems. Working with these clients, we continually push the boundaries of what is possible to do through technology, and in what time frame. Today, we are more than 5,000 experts across 21 countries. Together we form Nagarro, the global services division of Munich-based Allgeier SE.
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10 HONG KONG’S MTR CORPORATION MAKES NAVIGATING OUR CITIES SMARTER, MORE EFFICIENT, AND MORE DIGITAL THAN EVER
32
46
58
70
94
CLOUD & CYBER
Events & Associations
80 98 Consultancy Firms
INVALUABLE PROCUREMENT INSIGHTS
110 Azerconnect
122 Success Academy Charter Schools
142 TOTAL Solar
140
154
Pura Vida Bracelets
Logitech
168 Air France
10
HONG KONG’S MTR MAKES NAVIGATING OUR CITIES SMARTER, MORE EFFICIENT, AND MORE DIGITAL THAN EVER WRITTEN BY
RACHAEL DAVIS PRODUCED BY
KRISTOFER PALMER
MARCH 2020
11
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MTR
Renowned for its efficient, reliable and tech-optimised railways, MTR is making travel smarter than ever. CEO Dr Jacob Kam tells how technology enhances integrated, streamlined and sustainable public transport
V
enturing into a new decade, a crucial and pertinent question in urban planning revolves around how to make our cities
smarter. A pivotal aspect of more intelligent city 12
living is public transport, ensuring residents can navigate their daily lives efficiently, reliably, and increasingly more sustainably. MTR operates Hong Kong’s railway services, and is also a key property developer and manager in the city. It additionally invests, or takes part in O&M contracts for rail services in eight other cities globally: Beijing, Hangzhou, Macao, Shenzhen, Melbourne, Sydney, Stockholm and London. In Hong Kong, the railway is the backbone of the city’s transport. Public transit is the most used mode of transport: 90% of citizens use public transport in their daily lives. Train travel is the most efficient way of moving large amounts of people through the compact city, and MTR has made social and environmental friendliness a priority.
MARCH 2020
13
Advanced digital technologies are enhancing MTR’s asset management and customer service. w w w.suppl yc ha i ndi gi ta l. com
Intelligence that perfects travel door to door Countries, cities and transport operators rely on Thales’ ground transportation solutions to adapt to rapid urbanisation and meet new mobility demands – locally, between cities and across national frontiers. Our expertise in signalling, communications, fare collection and cybersecurity gives people and goods the connected journey they need to move safely and efficiently. And no matter how challenging the project, we stay by your side, committed to helping you creating the digital railways of the future.
Learn more
Keep Hong Kong Moving: How Thales and MTR Corporation Drive Digitalisation of Metro Systems Thales and MTR are entering their 25th year of collaboration. Since first cooperation on the Lantau Airport Railway, MTR has trusted Thales to assist in the rapid expansion and digitalisation of its metro systems. As a central contributor to this project, Thales’ systems in the OCC have played a key role in its success. Driven by data, the multiple systems control components of the MTR ranging from power supply, electromechanical equipment, and the environment facilities within the network. This helps to ensure smooth train services and optimizes power consumption, making the network greener and more efficient while consistently providing an excellent passenger experience. Through early localisation of its Hong Kong business, Thales garnered a deep understanding of the customer requirements allowing to quickly support local needs. This has been a crucial step in building trust with local partners and establishing a long-standing and robust relationship with MTR. The partnership now focuses on digitalisation. Thales has been committed to digital technology for many years and has been supporting the MTR’s transformation by advancing the rails’ connectivity and smart capabilities. The Hong Kong MTR will soon employ Thales’ predictive maintenance facilities to anticipate technical faults in trackside equipment. Leveraging Big Data and AI, this warning system can pinpoint in advance exactly when and where equipment failure will occur, enabling corrective maintenance to correct it before its failure. This is critical to the continued improvement of services. MTR is taking its expertise in railway operations worldwide. In 2019, Thales extended the scope of its partnership with MTR to the expansion of the Central Control and Communication Systems for the Sydney Metro to City & Southwest. Thales continues to be proud partners with MTR, supporting their ambitions to provide its exemplary service both at home and abroad, and keep cities across the world moving.
Learn more
See the world from a new perspective At Otis, we’re dedicated to helping you see the world in new ways. Learn more about Otis technology, service and expertise at otis.com.
Made to move you
Digitalisation is at the heart of
“We believe that the only way to
MTR’s drive to enhance public trans-
push beyond the current high perfor-
port for the masses, says CEO Dr
mance is through better digital
Jacob Kam. Utilising smart technology
technology,” says Kam, and utilising
facilitates enhanced customer ser-
this technology in asset management
vice, improved asset management,
is an important step. “One aspect is
and a more efficient and reliable ser-
discovering how best to predict fail-
vice. MTR’s trains already run at an
ure, so that we can act on that failure
on-time performance of 99.94%, but
before it happens. This predictive
customers want better. Through its
maintenance relies on image and
ongoing digital transformation, MTR
data analytics supported by artificial
aims to enhance the reliability, effi-
intelligence and helps us to regularly
ciency and integration of their
inspect our equipment and detect
services, not only in Hong Kong but
any problem early and consistently,”
in its other global cities of operation.
Kam explains.
MARCH 2020
DI D YO U K N OW?
• On-time performance is at 99.94% • 90% of Hong Kong’s residents use public transport
E XE CU T I VE PRO FI LE
Jacob Kam Dr Jacob Kam joined the Company in 1995 and had held various management positions in Operations, Projects and Mainland China and International Business Divisions. He was appointed as the CEO on 1 April 2019, and has been a Member of the Board since then. Before the CEO appointment, Dr Kam was the Operations Director between January 2011 and April 2016 and the Managing Director – Operations and Mainland Business from May 2016. As CEO, Dr Kam is responsible for all performances of the Company and its group companies both in and outside of Hong Kong. w w w.suppl yc ha i ndi gi ta l. com
Your Trusted Digitalization & Automation Experts Roctec Technology Limited was found in 1987 and is a leading solution provider and system supplier in Hong Kong while our footprint covers Asia-Pacific area. We have over 30 years of experience in implementation of large-scale data communications, multimedia, IOT and IT projects in railway & transportation industry. Over the years, we have positioned as a technology leader in delivering multimedia & communications systems, network & security solutions and various communications applications.
Experts at - One - Stop Solutions for Communications, IoT, Networking Security, Public Address, Multimedia Display and Simulation System - IT Infrastructure and ELV Engineering Consultation - Expertise in Cyber Security and Data Network solutions - Tailor-made complex railway and transportation solutions - Hardware design and software development
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Roctec Technology Limited E: info@roctec.com.hk W: roctec.com.hk
Trans.Ad Solutions Co. Limited is a leading digital signage solutions provider in Thailand. Our solutions are specially designed and aims to serve different market to meet their unique business environment. Our Mission is ensuring the effective flow of information throughout all levels of customers and providing the most optimal solutions, innovative technologies and professional services to the best benefits of our customers.
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Shaping connected mobility With a comprehensive and on-demand digital portfolio globally, Siemens Mobility not only creates values for partners sustainably over the entire life cycle, but also enhances people’s seamless travel experience every day
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AI is also used to assist with planned construction and maintenance on MTR’s railways. Using AI to optimise planning, it is possible to maximise the usage of the line when it is not in service to minimise the disruption when unavoidable planned construction or system upgrades are
1975
Year founded
$53.9bn Revenue in HK dollars
necessary, and ensure that ongoing works do not disrupt the functional rail lines. AI-enhanced driving is a tool which goes hand-in-hand with more reliable operations. MTR’s trains already have
47,327 Number of employees
automatic operation, but sometimes the fail-safe principle will slow operations. By introducing artificial intelligence into the driving of trains,
Intelligent Inspection Robot
Big Data Studio
w w w.suppl yc ha i ndi gi ta l. com
21
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“ To use public transport is, in itself, a way of making travelling more efficient and environmentally sustainable — but of course we have ongoing energy saving schemes which we invest a significant amount of money in” — Dr Jacob Kam, CEO, MTR
23
MTR’s state-of-the-art Operations Control Centre is at the heart of Hong Kong’s heavy rail network.
MTR will be able to mitigate this risk
meet a customer demand. Furthermore,
when every second counts in train
MTR is providing real-time service
operations.
information to their customers, such
At the heart of these applications
as when the next train is due to arrive,
of technology is the drive to improve
and plans to expand its offerings to
the customer experience. Advanced
include how crowded trains will be and
data analytics are being used by MTR
which carriages have space available.
to predict customer movements and
This real-time information is even
demands to better plan its service – in
available for very frequent services,
due course, the same technology will
Kam explains. “On many of our lines,
be used even to respond in real-time to
our train service frequency is already w w w.suppl yc ha i ndi gi ta l. com
FOR BETTER RAIL TRANSPORTATION Traffic Control Technology (“TCT”) is the most innovative and customer centric player in the rail transit industry, formed a close partnership with HK MTR – the world’s leading transit rail service provider to develop state-of-the-art systems, including big data analytics in supporting real time track side equipment performance monitoring and analysis, intelligent detection system as “the independent and additional robotic intelligent driver’s eye” to improve operation safety under manual or degraded modes.
LEARN MORE
MTR Global Brand Video CLICK TO WATCH
|
3:30
25 at a few minute intervals. However,
accessible on demand. By investing
our customers still want to know
its assets into the concept of MaaS,
when the next train is coming,” he
MTR is subscribing to the cohesive
says. This use of data not only allows
concept of a door-to-door transport
MTR to help its customers plan their
system, aiming to provide a “total
journeys, but also allows the opera-
solution” to its customers’ transport
tor to assess demand and improve
needs, Kam says.
availability, frequency and reliability in the long term. Reliability and maximum conveni-
In practice, this would mean that when customers need to use a variety of modes of transport — for example
ence are two of the core values of
taking a taxi to a train station, taking
Mobility as a Service (MaaS), an
an MTR train, then taking a bus to
industry-wide initiative which aims to
their final destination — MTR can
integrate various modes of transport
have a hand in arranging every aspect
into a single mobility service,
of this service to make it as consistent w w w.suppl yc ha i ndi gi ta l. com
MTR
C OM PA NY PARTNERS
Kone “The new Kone escalators and lifts are equipped with a digital controller to view a status and fault log for troubleshooting, and to remotely control ON/OFF to pave for smart station operation.”
26
Roctec “Roctec is an Information & Communications Technology solution provider for MTR. They provide Integrated Speed and Position Supervision System (iSPS) in Light Rail, Smart Tunnel for location tracking, and Infotainment & Advertising Systems.”
Traffic Control Technology Co.,Ltd “TCT provide advanced MARCH 2020
technological alternatives to enable a wider spectrum for smart metro operation options in MTR, including the trial of a Train Intelligent Detection System on one of our metro lines.”
Hyundai Rotem “Rotem is currently working on the incorporation of a digital track inspection system onto the new FAO train for a new line, and they are also actively working on the technical proposal on automatic wheelset maintenance centre using robots.”
Siemens “There are several asset condition monitoring data analytics projects which MTR is conducting Proof of Concepts together with Siemens. These systems include Platform Screen Doors, Signalling system, Main Control System, etc.”
OTIS
Arup
“OTIS has provided strong support to MTRCL in conducting studies on innovation initiatives for escalators, including Escalator Comb Object Identification, Escalator Step Vibration Monitoring and Automatic Speed Change Systems. These aim to enhance passenger safety, escalator reliability and customer service.”
“We have worked with Arup on some initial concepts of applying technologies to our Smart City initiatives, focusing on sustainability initiatives such as driverless modes of transport, use of drones and innovations in operation of shopping malls and initiatives on energy saving concepts. We are also looking at possible collaboration on applying more digital technologies for project and construction management.”
Thales “Thales started early collaboration with MTR on smart operation in pilot implementation of full automatic control in Disneyland Resort Line. They continued various provision of advanced train control systems in our network for both greenfield and brownfield application.”
w w w.suppl yc ha i ndi gi ta l. com
27
Transforming connectivity Combining our deep technical expertise with advanced digital technology, Arup helps to realise the vision for next generation urban rails that connect people and places, improve lives and enables sustainable growth.
We shape a better world | www.arup.com
“ Our on-time performance is already one of the highest in the world — but our customers want even better” — Dr Jacob Kam, CEO, MTR
as possible. Its analysts will gain access to enhanced user and demand data, leading to new opportunities to serve unmet demand. MTR is able to take this concept a step further, as its ventures include a property business run under the same umbrella as its railway. MTR properties, which incorporate not only railway stations but residential and commercial buildings as well as luxury, regional and neighbourhood shopping malls, “creates a better, 29
MTR has achieved financial and environmental sustainability by integrating rail and property. w w w.suppl yc ha i ndi gi ta l. com
more integrated living and travelling
together. Consolidating the supply
environment for our customers,”
chain of multiple industries, and
Kam says.
thinking macroscopically about soci-
“Theoretically, customers could
ety as a whole gives MTR an edge
travel from their home — a property
in building customer trust and retain-
managed by us, to an MTR railway,
ing loyalty across different markets.
to their office block which is man-
Naturally, the various innovations
aged by us, have lunch or meet
and initiatives are supported by a
friends in a shopping mall managed
range of partnerships. MTR works
by us,” he expands. This synergy
closely with Kone, Rotec, Beijing
not only retains custom and builds
Traffic Control Technology, Hyundai
trust within the market, but creates
Rotem, Siemens, OTIS, Thales and
an integrated society where loosely-
Arup to deliver its services efficiently
related aspects of daily life are
and sustainably by employing pio-
connected to run seamlessly
neering technology.
“ The only way to push beyond the current high performance is through better digital technology” — Dr Jacob Kam, CEO, MTR
MTR actively encourages the use
analytics to push efficiency to a new
of public transport by making the
level, MTR fulfills its mission to “Keep
process streamlined, efficient and high-
Cities Moving” with a sustainable finan-
functioning: an essential stance not
cial model, upgraded assets, and an
only as the world’s cities become more
intelligent approach to public transport.
populated, but also as a defence against unsustainable, environmentallyhazardous travel habits. Using electric trains and energy-saving schemes, reducing waste and employing data w w w.suppl yc ha i ndi gi ta l. com
31
LEADERSHIP
32
MARCH 2020
Why harnessing a greener approach in procurement is key 33
Gonzalo Salem, Procurement Manager at Volkswagen Group Australia, discusses the importance of operating with a greener approach in the supply chain WRITTEN BY
SEAN GALEA-PACE
w w w.suppl yc ha i ndi gi ta l. com
LEADERSHIP
A RECOGNISED SUSTAINABLE SUPPLY CHAIN ISN’T A NEW CONCEPT However, over the past few years, the true value of a greener approach has become increasingly apparent. And with good reason. Not only does ethical procurement have a positive effect on the environment, as you might imagine, it could also mean cost savings and increased efficiency for companies all over the world. By adopting a more sustainable approach, it also protects against reputational damage and could ultimately mean more business, if 34
backed with an accreditation to support a greener supply chain. Supply Chain Digital speaks with Gonzalo Salem, Procurement Manager at Volkswagen Group Australia, as he discusses the importance of a sustainable procurement approach in supply chains.
CAN YOU START OFF BY TELLING US A BIT ABOUT YOURSELF AND YOUR CAREER TOWARDS FINDING YOURSELF WITH VOLKSWAGEN GROUP AUSTRALIA? I’m an Argentinian engineer living in Sydney, and am passionate about cars and the environment. My first job was at Volkswagen Group Argentina and I worked there for over seven years. When I moved to Australia, my goal was to keep developing my career within the Volkswagen Group due to my attachment to the brand and attraction to cars. In November 2019, the opportunity to join Volkswagen Group Australia emerged and MARCH 2020
35
w w w.suppl yc ha i ndi gi ta l. com
LEADERSHIP
“ The digitalisation and Big Data era is creating undeniable advances towards optimisation and improvement” — Gonzalo Salem, Procurement Manager, Volkswagen Group Australia
I felt it was an exciting time to join due to the Group’s global re-branding and the introduction of electric vehicles. In the procurement space, this means there are stimulating years ahead.
HOW IMPORTANT IS A GREENER APPROACH? WHAT KIND OF IMPACT HAVE YOU NOTICED DURING YOUR CAREER?
36
Sustainability is something that has been knocking on the door for at least the last 10 years. However, the concept of “green” has been changing as we realise that the natural environment is only one piece of the puzzle. Companies are now more concerned about their social, economic, and cultural impact while aligning their sustainability strategies. An example was the focus on paper recycling. A long time ago, placing recycling MARCH 2020
bins in the workplace was considered
valuation criteria, and this is evidenced
enough commitment. Companies now
by companies issuing their sustaina-
look broader, buying from sustainable
bility reports annually. On top of that,
sources and monitoring the amount of
this increases transparency to the
printing. There is obviously the cost sav-
public as well as the confidence of
ing factor as well, but this is also about
company stakeholders which contrib-
the new approach by companies, the
utes to growth.
triple bottom line approach: people, tions develop sustainability policies
IN WHAT WAYS CAN COMPANIES OPERATE WITH A GREENER APPROACH?
where the scope goes beyond the
There are a range of actions that can be
organisation to business partners, sup-
undertaken. However, what makes the
pliers, consumers and even competitors.
difference is how companies align their
Sustainability is now considered amongst
policies, score cards and achievements
planet and profits. As a result, corpora-
Volkswagen Group Australia: More than the sum of its parts CLICK TO WATCH
|
3:23
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37
LEADERSHIP
38
to create the space to explore opportuni-
and Torres Strait Islander people or a
ties when they’re available. For instance,
review of their modern slavery compli-
while some companies are focused
ance and best practices. Procurement
strictly on minimising their impact
professionals, at the moment, are quite
through resources rationalisation, others
focused on exploring this space to find
are building a wider sustainable supply
opportunities to incorporate strategic
chain that explores the social compo-
business partners that could add value
nent as well. This may introduce, for
to both disadvantaged communities
instance, the inclusion of social enter-
and their emerging enterprises.
prises, businesses owned by Aboriginal
Historically, corporate contributions
MARCH 2020
39
to these communities, in most of the
risk mitigation, valuation and positioning
cases, didn’t improve their quality of life.
when companies have systems in place
However, the feeling of inclusion and
that can integrate, analyse, monitor and
being part of the workforce does help.
forecast business and market results. This also becomes part of the value
IN YOUR OPINION, HOW MUCH OF AN IMPACT IS NEW TECHNOLOGY HAVING ON COMPANIES’ OPERATIONS?
is challenging these days, among all the
I believe that technology brings the ben-
different options in the market, to choose
efit of anticipation. Anticipation promotes
the technological alternatives that suit
proposition to customers and strategic business partners. On the other hand, it
w w w.suppl yc ha i ndi gi ta l. com
LEADERSHIP
businesses the most. It is true that implementation could bring extraordinary benefits in the long-run, however, companies could also face serious difficulties during transition periods if the appropriate system or a skilled project management provider are not chosen carefully. When a project is successful and a streamlined digital platform is in place, automation and integration reduce the operating costs considerably, creates consistency on processes, builds trust 40
among the business, and also introduces opportunities to interact with business partners and partners to strengthen relationships. We’re also only looking at the tip of the iceberg at the moment, and the true scope of technologies such as artificial intelligence (AI) has of course
In the initial stages, SRM programmes
not yet been realised.
are challenging to implement due to the viability assessments required and the
WHAT IS THE KEY TO BEST PRACTICE IN THE SUPPLY CHAIN SPACE?
ties. However, when SRM programme
As a part of the advances in the era of
frameworks are well architected, compa-
communication and digitalisation, there
nies can share their long-term strategic
is an opportunity to empower our rela-
plans with key suppliers, creating oppor-
tionships with stakeholders. I believe
tunities to develop better products and
that Supplier Relationship Management
services and gain a competitive advan-
(SRM) is quite important these days.
tage. Additionally, it can maximise
MARCH 2020
need for commitment from different par-
41
suppliers’ performance through the man-
be very busy developing these pro-
agement of key performance indicators
grammes over the next few years
(KPIs), governance compliance and the
because of the integration between
alignment of their capabilities with the
contract management and supplier
organisational growth strategy.
performance and development.
At the moment, there are only a few
ships, leveraging the commitment to the
WHAT DO YOU EXPECT THE FUTURE OF THE SUPPLY CHAIN INDUSTRY TO LOOK LIKE IN AUSTRALIA?
programme and the difficulty in defining
The digitalisation and Big Data era is
success. Procurement professionals will
creating undeniable advances towards
organisations that excel in this area due to the challenges in establishing relation-
w w w.suppl yc ha i ndi gi ta l. com
LEADERSHIP
“ Companies are now more concerned about their social, economic, and cultural impact while aligning their sustainability strategies”
42
— Gonzalo Salem, Procurement Manager, Volkswagen Group Australia
MARCH 2020
optimisation and improvement. There is also a new generation of young professionals who are more familiar with the current technology and, at the same time, are more concerned about the environment than previous generations. I look forward to this combination of creating disruptive initiatives to challenge existing practices and devising innovative ways to accelerate sustainable processes across the business. The Australian government needs to honour the environmental agreements that are in place for the next 30 years. The supply chain industry requires more sophisticated and integrated solutions to make this happen, but it also needs more commitment from corporations with regards to business strategy and the level of investment. For the industry, the main challenges will be leveraging the sourcing of strategic partners for data management and data protection as well as the implementation of best practices to meet sustainability targets in the short and long-term.
w w w.suppl yc ha i ndi gi ta l. com
43
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D I G I TA L I S AT I O N
46
NAVIGATING SUPPLY CHAINS WITH AI AND DATA ANALYTICS MARCH 2020
47
Supply Chain Digital explores the utilisation of AI and analytics with experts in the sector, particularly in regard to how it is shaping corporate attitudes to data WRITTEN BY
WILL GIRLING
w w w.suppl yc ha i ndi gi ta l. com
D I G I TA L I S AT I O N
I
n an era calling for latency-sensitive applications, where the emergence of edge
computing, 5G and artificial intelligence (AI) powered analytics are ushering in the pos-
sibility of real-time solutions, companies, now more than ever, are looking for the most efficient ways to make use of their data. The sheer volumes of information that can be gathered from every aspect of a business are overwhelming: with so much data available, where do you start when examining it? The 48
challenge for modern supply chains is knowing where to place a strategic focus and not becoming paralysed by information overload, whilst also not excluding details that could increase efficiency, allow for better forecasts or enhance customer experience (CX). Grant Millard, Director of Technology at Vendigital, says that, prior to the advent of Big Data and analytics, companies struggled to deliver clear or credible data-based insights. “More often than not companies are operating in a data vacuum, continuously manipulating the data to get the insight they are after and repeating this process every time they want to get that insight.� However, the data produced by emails, live chat, social media, sales reports, etc, can often be too MARCH 2020
49
w w w.suppl yc ha i ndi gi ta l. com
D I G I TA L I S AT I O N
vast to administrate manually. Once
well as leverage machine learning tools,
analytical software began collating
will empower a business to be able to
information from multiple areas, algo-
highlight risk quickly and efficiently.”
rithms developed for machine learning
However, before these advantages can
programmes liberated companies by
properly manifest themselves, com-
allowing them to take action on the
panies must employ an intelligent and
collected data, as opposed to simply
well-thought-out strategy to make the
managing it. Automating the collection
most out of the data collected.
and management process means that
50
Big Data represents a double-edged
procedures can be faster and more
sword: more information is available,
accurate. With businesses able to pin-
yet it is amorphous and representative
point problems and resolve them in
of nothing if not sufficiently harnessed.
real-time, the possibilities are nothing
“As data generation continues to
short of transformational.
grow, the amount of ‘useful’ data
This evolution is a necessity both for supply chains and modern business generally. Data no longer comes from standard sources; in an increasingly digital world, it is woven into practically every facet, including customer interaction. Jonathan Clarke, Manager of Statistical Modelling at LexisNexis Risk Solutions, believes any supply chain without strong analytical capabilities will fail to be competitive. “Analytics has, therefore, become a key necessity in any business process to sufficiently review data in order to make informed business decisions,” he explains. “Using bespoke Big Data architecture that can process vast data assets, as MARCH 2020
Risk management solutions at every stage of the customer journey CLICK TO WATCH
|
2:56
51
“ COMPANIES, NOW MORE THAN EVER, ARE LOOKING FOR THE MOST EFFICIENT WAYS TO MAKE USE OF THEIR DATA” — Jonathan Clarke Manager of Statistical Modelling LexisNexis Risk Solutions w w w.suppl yc ha i ndi gi ta l. com
D I G I TA L I S AT I O N
decreases,” says Nikul Amin, Director
essential data can be ascertained
of Consulting and Analytics at
more easily and inconsequential infor-
Acxiom. Therefore, setting measur-
mation disregarded.
able goals and establishing desirable
The enhanced level of scrutiny and
outcomes will help facilitate the
diligence that this improved level of
productive analysis of informa-
speed and reliability can bring a sup-
tion. Employing ‘edge computing’
ply chain is significant. “Data from
—wherein data analysis is conducted
differentiated sources can provide
on a device directly, as opposed to
a comprehensive, balanced view as
being sent to a server first - enables
opposed to relying on one single
supply chains to concentrate on a
source,” Clarke says. A focused analy-
particular problem quickly and accu-
sis will flag areas containing inherent
rately. This has the additional benefit
risk and offer “a wider view of entities
of making data analysis more efficient:
within the chain and potential data
52
MARCH 2020
points that may be a cause for concern.”
Real-time analysis of data also
Kirsty Braines, COO at Oliver Wight
affords a far more dynamic and fluid
EAME, concurs with this view, opining
customer experience, wherein feed-
that increasingly elaborate supply chains
back is used to modify services on
- containing, amongst other elements,
the fly. Combined with a streamlined
procurement, logistics, sales, etc - are
machine learning algorithm, supply
difficult to transparently track from
chains could deliver an almost autono-
start to finish. “By strengthening trace-
mous level of self-improvement and
ability in situations such as product
be able to anticipate future trends,
recalls or quality problems, organisa-
thus enabling companies to turn fore-
tions can isolate the issue efficiently
casted difficulties into opportunities.
and accurately, minimising the cost of
As Millard puts it, “The holy grail is to
locating the root of the problem and
use Big Data and analytics to deliver
limiting damage to a brand’s reputation.”
action-oriented insights.” To reach 53
“ ANALYTICS HAS, THEREFORE, BECOME A KEY NECESSITY IN ANY BUSINESS PROCESS TO SUFFICIENTLY REVIEW DATA IN ORDER TO MAKE INFORMED BUSINESS DECISIONS” — Jonathan Clarke Manager of Statistical Modelling LexisNexis Risk Solutions
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D I G I TA L I S AT I O N
54
this stage, he considers automatisation via AI analytics and blockchain and the removal of manual administrative procedures to be the way forward. Successfully doing this, however, may require larger companies to take notice of the more agile working methods of startups and SMEs. “Those making the biggest impact are niche operators that are able to blend technology, data science, SME and industry expertise to deliver data-based insights that provide MARCH 2020
“ THE HOLY GRAIL IS TO USE BIG DATA AND ANALYTICS TO DELIVER ACTION-ORIENTED INSIGHTS” — Grant Millard Director of Technology Vendigital
55
answers to critical business questions
reached the maturity to completely
and enhance enterprise value.”
handle data, with the technology not
The possibilities for supply chain
fully understood, let alone success-
optimisation are exciting, but Braines
fully implemented.” It is therefore
is hesitant to say that the transi-
imperative that companies incor-
tion to this new way of operating
porate these technologies into their
will be easy. “Big Data and analytics
supply chains strategically and
are game-changers for businesses.
thoughtfully. The insights provided
However, it’s all advanced technol-
by data and analytics can be enlight-
ogy and the clue is very much in the
ening, but, without a plan or vision for
name: advanced,” she says. “A huge
how it will be utilised, a supply chain will
proportion of companies haven’t
not ultimately benefit from it. w w w.suppl yc ha i ndi gi ta l. com
Global Women Supply Chain Leaders Awards Ceremony 2020 REGISTER NOW
MAY 28 | PARIS, FRANCE
This is a night of celebration not to be missed in 2020! Join international business and supply chain leaders at the Global Women Supply Chain Leaders Awards 2020. GWSCL 2020 is the first global event to honour and shine the spotlight on the dedication, passion and incredible success stories of women within the supply chain industry – cross-domain and from around the world! “GWSCL 2020 is open to anyone with an interest in the truly diverse and rapidly evolving world of women in supply chain. The gala ceremony is free to attend, with VIP tickets for cocktail dinner.
2020 Award Categories Our jury, consisting of top global business leaders, will make their recommendations in various categories, and the final nominees will be announced on April 3 • Global SC Leader 2020 • Young Professional 2020 • SC Innovation Excellence 2020
• SC Transformation Excellence 2020 • SC Academic 2020 • SC Social Media Influencer 2020
Our Jury
Lebogang Letsoalo
Heather Sheehan
Sandrine Annebicque
Founder, African Women In Supply Chain Association
Executive Director, AWESOME (Achieving Women’s Excellence in Supply Chain Operations, Management and Education)
Deputy Director of Transformation & Cofounder, WoMen @ Eramet
Chamariq Jamal
Francisco García Fornaro
Frederick Gomer
Senior Vice President Global Supply Chain – APAC, Estée Lauder Companies Inc.
Supply Chain Group Director L’Oreal
Partner B2G Consulting
Why Attend? • Network with global women leaders from various industry verticals • Promote inclusion and diversity in supply chain • Become a part of the first global initiative to celebrate women achievements in supply chain For registration or more information, please contact Jay Kostos at jay.kostos@b2g-consulting.com
About the Organiser B2G is an implementation-focused consulting firm, trusted by business leaders to drive significant economic returns for their supply chain organizations globally. We at B2G are committed to diversity and collaboration to build, support and celebrate extraordinary teams, and promote diverse perspectives to help our clients, our firm and our partners achieve overwhelming results in EBITDA, revenue and cash.
OFFICIAL MEDIA PARTNERS
CONTRACT MANAGEMENT
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MARCH 2020
WRITTEN BY
SE AN GA LE A-PACE 59
With technology’s influence on the logistics sector growing, Supply Chain Digital examines the current state of air freight and the impact of digitisation w w w.suppl yc ha i ndi gi ta l. com
CONTRACT MANAGEMENT
T
he effect that technology has had on industries all over the world cannot be understated. Its influence is prev-
alent and has transformed the way in
which companies operate, as artificial intelligence (AI), automation and Big Data begin to take hold. The air freight industry is certainly no exception. However, despite the influx of technology, 60
the air freight space has felt demand for its services weaken over the past year, following the International Air Transport Association’s (IATA) findings which examined 2019’s full year data. The research showed that demand fell by 3.3% in comparison to 2018, while capacity increased by 2.1%. It is the first year of declining freight volumes since 2012, and the worst performance since 2009, where figures were significantly affected by the global financial crisis in 2008. These findings contrast with McKinsey & Company’s analysis in 2018 which anticipated that air freight volumes would continue to increase by around 3% every year until 2025, and likely 2030 thereafter. Although land and ship cargo transportation remain the most MARCH 2020
61
popular methods of transporting goods, air freight is regarded as the quickest and least hindered avenue of transport. While still considered a costlier method of transportation, the increasing demand for perishables, chemicals and valuables has provided a timely boost to the industry amidst the shortfall in demand. Due to the widespread adoption of technology, traditional air freight forwarders are under more pressure than ever to digitise. This is primarily from three places: digital forwarding w w w.suppl yc ha i ndi gi ta l. com
CONTRACT MANAGEMENT
62
specialists providing solutions for one or two elements of the value chain, digital forwarders offering a range of transport services and a better customer experience at a low cost and, lastly, carriers building and improving their digital channels to better serve customers. Amanda King, VP & General Manager of Connectivity Hardware at Honeywell Connected Enterprise, believes that the air freight industry is on the verge of vast digital change, driven primarily by the shifts in consumer and supplier demands. MARCH 2020
“ AIR FREIGHT IS REGARDED AS THE QUICKEST AND LEAST HINDERED AVENUE OF TRANSPORT�
CLICK TO WATCH : ‘VISION OF THE WORLD’S BEST CARGO TERMINAL’ 63
“Everyone is demanding more of logis-
the logistics industry still has some
tics providers, especially with regard
catching up to do in comparison to its
to the speed and frequency of deliver-
counterparts. “The logistics sector on
ies,” says King. “As a result, air cargo
the whole has been relatively slow to
companies are expected to deliver
embrace innovation, and arguably the
packages faster – and with more accu-
last big, industry-defining leap for-
racy – while keeping costs to a new
ward in logistics came in the middle
competitive low.” Technology is help-
of the 20th century with the arrival of
ing to transform freight forwarding in
the standardised shipping container,”
several different ways, from robotics
explains Inshutin. “Many processes in
and automated systems to augmented
the freight-forwarding industry remain
reality, drones, Big Data and AI. Anton
very inefficient and traditional LSPs
Inshutin, partner at technology venture
are struggling to, or failing to, innovate.
capital firm RTP Global, believes that
The shippers, their clients, are still w w w.suppl yc ha i ndi gi ta l. com
CONTRACT MANAGEMENT
heavily reliant on emails, phone calls and Excel spreadsheets to run their logistics procurement processes. It’s estimated that currently less than 10% of the logistics industry uses electronic procurement and just 1% of worldwide freight volume is purchased digitally.” Spencer Davern, Director of Air and Ocean at Rhenus Logistics UK, believes the air freight industry is going through a period of modernisation, with digitisation leading the way. “Many who work in the logistics industry will have experienced the painful hours spent in 64
line at airport sheds during peak times, waiting to collect or deliver cargo shipments,” explains Davern. “Thankfully, due to technological advancements and the fast-paced nature in which the logistics industry adapts, this no longer has to be the case. Through the implementation of E-AWB (electronic Air Waybill), the logistics industry has seen significant improvements in efficiency. Removing the need for paper documentation has proven instrumental in streamlining the process of handling air cargo shipments. In addition to this, E-AWB enables information to be provided electronically to the airline before delivery, with some forwarders able to MARCH 2020
“TECHNOLOGY IS HELPING TO TRANSFORM FREIGHT FORWARDING IN SEVERAL DIFFERENT WAYS, FROM ROBOTICS AND AUTOMATED SYSTEMS TO AUGMENTED REALITY, DRONES, BIG DATA AND AI” 65
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CONTRACT MANAGEMENT
66
book in their E-AWB shipments using
they’re in control and, by providing
a smartphone direct to the carrier’s
customers with the ability to track
warehouse shed without the need for
their orders from the warehouse to
queuing at reception. This new pro-
their front door in real-time, it allows
cess ensures that cargo shipments are
continuous visibility and an element of
processed in the most efficient manner,
control which ultimately means a more
saving not only time and money but
fulfilling delivery experience and return
also the environment.”
business. “One key to consumer satis-
Customer-centricity is widely con-
faction is the ability to trace packaged
sidered key to long-term success
goods throughout the delivery pro-
worldwide, particularly in the logistics
cess – even when in the air,” adds King.
space. Customers want to feel like
“While this might seem like a challenge
MARCH 2020
67
– particularly for air cargo companies
root of the worst year for air cargo
that have been slow to digitalise – it is
since the end of the global financial
also an opportunity to give customers
crisis,” said Juniac in a press release.
a better delivery experience.”
“While these are easing, there is little
Despite the slow year, there are
relief in that good news as we are in
positive signs that confidence and
unknown territory with respect to the
orders in air freight will bounce back in
eventual impact of the coronavirus on
2020 and beyond. However, Alexandre
the global economy. With all the restric-
de Juniac, IATA’s Director General
tions being put in place, it will certainly
and CEO is under no illusions about
be a drag on economic growth. 2020
the challenge ahead for the air freight
will be another challenging year for the
industry. “Trade tensions are at the
air cargo business.” w w w.suppl yc ha i ndi gi ta l. com
AUSTRALIA’S LARGEST FREIGHT AND LOGISTICS EXHIBTION AND CONFERENCE MEG ATRAN S .CO M.AU
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TECHNOLOGY
CLOUD & CYBER
70
BENEFITS AND CHALLENGES FOR SUPPLY CHAINS WRITTEN BY
MARCH 2020
GEORGIA WIL SON
Supply Chain Digital sits down with cloud and cyber experts to discuss the adoption of these technologies in the supply chain industry
71
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TECHNOLOGY
D
isruptions within supply chains are becoming more common,” says Tim Mackey, Senior Principal Consultant at Synopsys
CyRC. “Suppliers at every level need to understand not only what the risk of attack they might bear is, but also how any disruption in their opera-
tions will impact their consumers. When it comes to cyber attacks, it is the attacker who defines the rules. They decide the timing and the nature of their efforts. If successful, they also define what 72
type of disruptive activity they perform. Some might attempt a ransomware attack, others might attempt to modify plant operations or seek to download data. This requires a level of cyber awareness to become part of overall business operations and an increased level of transparency between partners.” Paul Williams, Director of Highstream Solutions and Saryu Nayyar, CEO of Gurucul agree with Mackey that it is important for the supply chain industry to invest in data and data security to remain safe and competitive. “One of the key benefits is real-time visibility of stock levels for firms,” says Williams. “Having data stored in the cloud means that it can be accessed from a single source, providing real-time visibility of stock levels. A strong cloud technology system, paired with a robust MARCH 2020
73
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TECHNOLOGY
approach to cyber security, will ensure
external forces is real. Cyber security
that ‘just-in-time’ supply of materi-
practices seek to first quantify those
als can be managed to the point of
risks, and then apply strategies to miti-
requirement, keeping the supply chain
gate or minimise the risk. For example,
running smoothly.”
a common starting point for many
“Software is a core component of
cyber security efforts is to compile
almost any deliverable with supply
a complete inventory of all software
chains,” continues Mackey. “It ranges
assets used and produced by a busi-
from the design of the component to
ness. Armed with this inventory, a bill of
the logistics solutions used to manage
materials can be created which identi-
inventories. With software present at
fies the origin for each component.”
each stage of the assembly and delivery chain, the risk of compromise by 74
“ Software is a core component of almost any deliverable with supply chains” — Tim Mackey Senior Principal Consultant, Synopsys CyRC
MARCH 2020
To combat these threats, Raj Bawa, Operations Director at JBi Digital has
The convergence of blockchain, machine learning, and the cloud – Steve Lund – TEDxBYU CLICK TO WATCH
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12:38
75 seen an increase in organisations looking to be smarter about data, by using multi-factor authentication. “Five years ago, businesses dealing with two or multi-factor authentication were uncommon, but it has become much more prevalent recently as the need for providing something beyond a username and password arises. Companies are utilising things like biometrics and facial recognition, and there are more and more ways to authenticate now.” “Although the cloud presents a variety of business benefits,” says Nathan w w w.suppl yc ha i ndi gi ta l. com
TECHNOLOGY
Britton, Application and Cloud Security Practice Lead at NTT Ltd. “ it does not provide a one-size-fits-all solution and presents some risks which are different to traditional IT systems.”
UNDERSTANDING THE CLOUD AND ITS CHALLENGES FOR EFFECTIVE ADOPTION “Before you consider the cloud, you need to understand your business strategy and goals for using this resource,” says Britton. “Organisations must carefully consider and articulate what the 76
business reasons are for moving to the cloud before building the strategy to get there. Understanding your business strategy helps to define the base level security controls expected from your cloud service provider (CSP), and any additional security controls the organisation may need to meet the business requirements. With more and more businesses migrating to cloud services as part of their digital transformation there is an increased likelihood of cloud related breaches. The Department for Digital, Culture, Media and Sport reported in its Cyber Security Breaches Survey 2018 that businesses using cloud computing were more MARCH 2020
“ Organisations must carefully consider and articulate what the business reasons are for moving to thecloud before building the strategy to get there” — Nathan Britton Application and Cloud Security Practice Lead, NTT Ltd.
77
likely to have faced breaches than
and capabilities. Therefore, businesses
those who do not – 52% versus 43%.”
need to create policies that make sure
“Achieving this is as much a human
employees use trusted services and
goal as it is a technical one,” adds Dave
vendors, and that they involve IT from
Locke, EMEA Chief Technology Advi-
the outset of any new venture. Laying
sor at World Wide Technology (WWT).
solid foundations is important for good
“Naturally, cyber must come hand in
practice as secure cloud usage needs
hand with the cloud - industry leaders
strong governance protocols.” Agree-
need to be aware of the risks posed by
ing with Locke, Mackey adds that “one
an increasingly connected environment
of the biggest challenges is applying
and plan accordingly. It’s estimated
existing best practices to cloud solu-
that the average large enterprise uses
tions. These practices may have been
around 730 individual cloud services
adequate when they were created, but w w w.suppl yc ha i ndi gi ta l. com
TECHNOLOGY
“ Naturally, cyber must come hand in hand with the cloud” — Dave Locke EMEA Chief Technology Advisor World Wide Technology (WWT) 78 when adopting a cloud solution, it’s important to ask how that cloud solution improves business security and then look at what changes in policy or process are required to maximise the potential. If this isn’t performed, there is a risk that the pre-existing best practice could make the cloud solution significantly less secure.” Ultimately, “the most important mission for companies working in the supply chain industry is to organise an uninterrupted, optimal movement of goods and services. This means reducing the cost of delivery by optimal loading of delivery capacities and sending MARCH 2020
these capacities in the right direction and at the right time. The challenge is to make technologies support this flow of goods, rather than bring potential technological failures which could create delivery delays,” comments Andriy Lysyuk, Head of Cyber Security at Ciklum, which Niamh Muldoon, senior director of Trust and Security, EMEA at OneLogin agrees cloud and cyber technology can help deliver. “The cloud can be a great resource for the supply chain industry,” says Nayyar. However, “a joined up cohesive approach is impetirive,” adds Britton. “The scalability and flexibility offered by the cloud provides great opportunities for organisations to accomplish their business goals. However, this brings extra responsibilities to an organisation to ensure it is secure.” Locke recommends that “a good cloud adoption strategy consists of four steps: a technology transition plan, testing, an internal adoption strategy and standardisation.” Locke emphasises that this will help to “ensure that the new technology works as expected and that security is embedded within the culture of the organisation.” w w w.suppl yc ha i ndi gi ta l. com
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T O P 10
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Consultancy Firms Supply Chain Digital takes a closer look at 10 of the biggest consulting companies worldwide WRITTEN BY
SEAN GALEA-PACE
MARCH 2020
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T O P 10
WATCH NOW: CHANGE THAT MATTERS
82
10
McKinsey & Company [ USA ]
US-based consulting organisation McKinsey & Company has been in operation for over 90 years. Delivering expert advice to a range of industries such as the automotive, chemicals and oil and gas sectors, McKinsey & Company helps customers accelerate their digital transformation journeys. Since its founding in 1926, the firm has grown significantly and today operates in 65 different countries while employing approximately 30,000 people worldwide.
MARCH 2020
HQ
NEW YORK
$10.5bn APPROXIMATE REVENUE
30,000 NUMBER OF EMPLOYEES
WATCH NOW: NAVIGATE YOUR NEXT, WITH INFOSYS
09
83
Infosys [ INDIA ]
Founded in 1981, Infosys empowers companies to digitalise their offerings. With customers in 46 countries, the firm provides services in blockchain, cloud, data analytics and mainframe modernisation. The India-based organisation employs over 243,000 people worldwide and helps its clients to harness and embrace change through its AI-powered core. From humble beginnings consisting of just capital US$250 of capital to the $12.3bn it generated in revenue during 2019, Infosys has been on quite the journey over the past four decades.
HQ
BENGALURU
$12.3bn APPROXIMATE REVENUE
243,000 NUMBER OF EMPLOYEES
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T O P 10
WATCH NOW: CEPGEMINI BUSINESS SERVICES AT A GLANCE 84
08
Capgemini [ FRANCE ]
As a leading consulting, technology services and digital transformation company, Capgemini is at the forefront of the latest industry trends. Offering an array of services centred around technology, Capgemini serves several different industries such as aerospace and defence, telecoms and manufacturing. With over 200,000 employees in more than 40 countries, the company prides itself on its human-centric approach to technology, placing people at the heart of its strategy.
MARCH 2020
HQ PARIS
$14.6bn APPROXIMATE REVENUE
225,000 NUMBER OF EMPLOYEES
WATCH NOW: THE FUTURE OF TRANSPORT & LOGISTICS
07
85
Cognizant [ FRANCE ]
Also helping companies accelerate their digital transfor-
HQ
mation journeys, Cognizant Technology Services serves
NEW JERSEY
a range of industries such as banking, manufacturing and
$14.8bn
logistics. The organisation recognises that speed is critical to all successful supply chains, and combines human insights with advanced technologies in order to create greater efficiency and provide quicker time to market at a reduced cost. The firm primarily has three key practice areas that cover its business — digital business, digital operations, and digital systems and technology.
APPROXIMATE REVENUE
290,000 NUMBER OF EMPLOYEES
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T O P 10
WATCH NOW: EXPERIENCE CERTAINTY WITH TCS 86
06
Tata Consultancy Services [ INDIA ]
India-based IT and consultancy company, Tata Consultancy Services, combines digital expertise and business intelligence to catalyse change and deliver results. Through innovative, technology-focused consultancy, TCS strives to help businesses achieve their objectives. With more than 446,000 employees from 146 different countries, its services include expert advice on artificial intelligence (AI), cybersecurity and blockchain, among others. In 2016, TCS was one of just eight organisations worldwide to be recognised as a “Global Top Employer� and it has retained that title over the past four years. MARCH 2020
HQ MUMBAI
$20.9bn APPROXIMATE REVENUE
446,000 NUMBER OF EMPLOYEES
WATCH NOW: NEW APPLIED NOW — DISRUPTION
05
87
Accenture [ IRELAND ]
One of the largest global professional services organisations, Accenture employs over 500,000 people in more than 120 countries. Operating with primarily a tech-focused approach, Accenture provides a range of services and solutions such as consulting, digital, technology, strategy and operations. Working across over 40 industries, Accenture is versatile and diverse, and its consultants guide the world’s biggest companies through digital transformations while helping them to achieve significant growth.
HQ DUBLIN
$43.2bn APPROXIMATE REVENUE
505,000 NUMBER OF EMPLOYEES
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T O P 10
WATCH NOW: EXTRAORDINARY PEOPLE 88
04
KPMG [ NETHERLANDS ]
KPMG is a member of the Big Four, alongside EY, PwC and Deloitte. With a mantra to strive for quality and service excellence in all that it does, KPMG helps its clients to deal with rapid transformations in their respective industries. Its services include audit and assurance, tax and legal, advisory and enterprise. While promoting change is a clear priority for the firm, KPMG also has a robust sustainability strategy and its network invested over $110mn in local communities during 2018.
MARCH 2020
HQ
AMSTELVEEN
$29.7bn APPROXIMATE REVENUE
219,000 NUMBER OF EMPLOYEES
WATCH NOW: WHERE DO YOU START IF YOU WANT TO SAVE THE WORLD
03
89
EY [ UK ]
One of the largest global professional services organisations, Accenture employs over 500,000 people in more than 120 countries. Operating with primarily a tech-focused approach, Accenture provides a range of services and solutions such as consulting, digital, technology, strategy and operations. Working across over 40 industries, Accenture is versatile and diverse, and its consultants guide the world’s biggest companies through digital transformations while helping them to achieve significant growth.
HQ LONDON
$36.4bn APPROXIMATE REVENUE
270,000 NUMBER OF EMPLOYEES
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T O P 10
02 PwC [ UK ] Officially known as PricewaterhouseCoopers, the company operates in 157 different countries and employs over 276,000 people. PwC is renowned as one of the leading consulting 90
0000 YEAR FOUNDED
$0.0bn REVENUE IN XXXXXXXXX DOLLARS
0,000 NUMBER OF EMPLOYEES
firms worldwide and serves 26 industries. Its services in the fields of assurance, tax, human resources, transactions, performance improvement and crisis management has helped to solve global client and stakeholders issues. PwC has a number of targets it wants to achieve before 2022. Some of these include increasing the proportion of new women hires to 50%, providing paid work experience to 1,000 young people from disadvantaged backgrounds and to collectively volunteer 250,000 hours in total.
HQ LONDON
$29.7bn APPROXIMATE REVENUE
219,000 NUMBER OF EMPLOYEES
MARCH 2020
91
One network, one PwC CLICK TO WATCH
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2:51
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T O P 10
01
Deloitte [ UK ] Founded in 1845 by William Deloitte, the firm transformed from an initial accounting office in London to the well-renowned name it is today. The final member of the Big Four, Deloitte pro-
92
vides four core services - audit and enterprise risk services, consulting, tax, and financial advisory. The company has particularly high revenue streams in the US, having made $6.4bn more in revenue in the region than the second largest of the Big Four, PwC, and twice as much as KPMG during 2019. Deloitte operates in more than 150 countries and employs 312,000 people worldwide.
HQ LONDON
$46.2bn APPROXIMATE REVENUE
312,000 NUMBER OF EMPLOYEES
MARCH 2020
93
The future of controls CLICK TO WATCH
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EVENTS & A S S O C I AT I O N S
The biggest industry events and conferences WRITTEN BY SEAN GALEA-PACE from around the world
17–18 MAR 2020
94
17–19 MAR 2020
Supply Chain Conference
Logichem 2020
[ LONDON, UNITED KINGDOM ]
Bringing more than 350 supply chain
Now in its 17th year, the event welcomes
leaders from the world’s leading chem-
over 200 professionals and provides
ical companies together, LogiChem
the opportunity to network, learn and
2020 provides the opportunity for
connect fellow supply chain and logistics
practical insights on how to increase
professionals together under one roof.
end-to-end visibility, drive customer-
The Supply Chain Conference will zone
centricity and achieve integrated
in on how to maximise efficiency, reduce
digitalisation. The three-day event will
costs and future proof supply chain
play host to 120 senior procurement
operations in the industry. Thought
executives, 50 thought-leading speak-
leaders like Laura Bacon, Integrated
ers and provide eight hours of
Business Planning & Operations
networking. Considered the “most
Manager of Nando’s, and Tom Rose,
interactive LogiChem to date,” the
Head of International Operations at
event will showcase solutions to sup-
SPAR International, are scheduled
ply chain challenges through over 60
to speak at the event.
interactive case studies.
MARCH 2020
[ ROTTERDAM, NETHERLANDS ]
24–26 MAR 2020
Women in Procurement & Supply Chain 2020 [ SYDNEY, AUSTRALIA ] Providing an inclusive, supportive environment, Women in Procurement & Supply Chain 2020 is a highlyanticipated event. With a mantra to
1–2 APR 2020
Pharma Supply Chain & Security World 2020 [ LONDON, UK ]
95
empower women to advance their
Now in its third year, the event focuses
careers and transform the procurement
on optimising supply chain challenges
function, the three-day meeting is
to ensure an agile, responsive,
renowned for the high level speakers,
streamlined and secure supply chain.
relevant content and networking
The exhibition will allow pharma
opportunities on offer. This year’s event
industry experts to work together and
is expected to cover hot topics in the
share new strategies, case studies and
supply chain space, such as: social and
innovative ideas with fellow attendees.
sustainable procurement, diversity
The conference will also provide the
measures in the supply chain, technology
ideal platform for collaboration and will
for more efficient and agile transactions
allow for innovative technologies,
and collaboration, as well as how to
transformation strategies and
develop and improve leadership and
collaboration methods to be discussed
people skills.
over the two-day event.
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EVENTS & A S S O C I AT I O N S
1–3 APR
MegaTrans 2020 [ MELBOURNE, AUSTRALIA ] MegaTrans facilitates cross-industry collaboration in a multi-dimensional and 96
integrated conference and exhibition for the freight and logistics industry. For the
11–14 MAY
Gartner Supply Chain Symposium
very first time, MegaTrans2020 will be
[ ORLANDO, FLORIDA ]
held in conjunction with the specialised
The event offers insights from over 45
bulk handling expo, Australian Bulk Han-
Gartner experts behind the latest sup-
dling Expo 2020, side-by-side with a one
ply chain research. Set over four days,
ticket entry into both exhibitions. With
the conference will provide research-
technology continuing to transform the
backed sessions, expert advice on
industry, MegaTrans2020 is set to show-
specific challenges and also allow net-
case the latest in artificial intelligence
working opportunities with over 2,500
(AI), robotics, automated racking, telem-
fellow industry professionals. A num-
atics and route optimisation, warehouse
ber of topics are set to be discussed,
automation, intelligent fleet systems,
such as supply chain strategy, supply
blockchain, internet of things, big data
chain planning, sourcing and procure-
and advanced analytics.
ment, digitalisation and more.
MARCH 2020
13–14 MAY
14–15 MAY
World Procurement Congress (WPC)
Digital Supply Chain & Logistics 4.0 Summit
[ LONDON, UK ]
[ AMSTERDAM, NETHERLANDS ]
As the industry’s biggest gathering of
The two-day event will provide a venue
procurement professionals, the World
for professionals from a range of
Procurement Congress will focus
industries and companies to meet and
around visionary, forward-looking
partake in presentations, panel
trends that are set to shape the long-
discussions, workshops, breakout
term success and impact of the
sessions and more. The role of
procurement function. The two-day
technology in the supply chain is
event will provide attendees with
anticipated to be heavily featured, with
knowledge, real life case studies and
supply chain risk management and
offer solutions for business success.
intelligent supply chain for a
There is set to be a range of industry-
connected world all set to be
leading speakers at the event, including
discussed. The exhibition will also
Sylvie Noel, CPO of Covéa; Qasim Hus-
showcase AI and robotic process
sain, CPO of Kellogs; and Bob Murphy,
automation and how it can be
CPO of IBM, among others.
successfully utilised into operations.
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IN FOCUS
98
INVALUABLE PROCUREMENT INSIGHTS Nandini Basuthakur, CEO of Procurement Leaders, discusses why World Procurement Congress is the must-attend supply chain event of the year WRITTEN BY
MARCH 2020
SE AN GA LE A-PACE
99
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IN FOCUS
T
he procurement landscape is continuously evolv-
ing. In order to stay ahead in a highly dynamic
and competitive industry, the importance of adopting a lean and agile mindset is fundamental to long-
term success in the supply chain space. Providing attendees with the advice and knowledge required to achieve their goals, the World Procurement Congress (WPC) focuses on the visionary, forward-looking trends that shape the long-term success and impact of the procurement function. It is considered the 100
industry’s largest global gathering of senior procurement executives and will take place from 13-14 May 2020, at the InterContinental London - The O2. Overseeing the two-day event is Nandini Basuthakur, CEO of Procurement Leaders. Basuthakur originally joined Procurement Leaders in September 2015 as Chief Operating Officer before moving into her current position in March 2017. In an exclusive interview with Supply Chain Digital, Basuthakur discusses her organisation and why WPC is regarded as an unmissable event for procurement executives in 2020.
COULD YOU START BY GIVING US AN OVERVIEW ON PROCUREMENT LEADERS AND WHAT YOU SEEK TO ACHIEVE? Procurement Leaders is the world’s largest and most valued procurement network and intelligence MARCH 2020
101
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IN FOCUS
“ PROCUREMENT LEADERS IS THE WORLD’S LARGEST AND MOST VALUED PROCUREMENT NETWORK AND INTELLIGENCE PLATFORM” 102
— Nandini Basuthakur CEO, Procurement Leaders
MARCH 2020
platform. Powered by a syndicated member and partner community of over 750 leading global companies, Procurement Leaders inspires more than 33,000 senior leaders to make faster, more informed decisions and follow proven paths to success. Through next-practice insights, practical tools, expert guidance and industry connections, Procurement Leaders accelerates the transformation journey to greater value creation and procurement excellence.
World Procurement Congress 2019 — Highlights CLICK TO WATCH
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1:44
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IN WHAT WAYS CAN YOU HELP TO ACCELERATE THE PROCUREMENT FUNCTION? PL is committed to divergent and next generation thinking around the future facing topics of talent, innovation, digitalisation, sustainability, risk and operating models. How can we collectively use our strengths to solve some of the world’s greatest problems? How can we implement dynamic solutions at a multiple member level? To support this, Procurement Leaders offers insights, applications and expert networking opportunities that w w w.suppl yc ha i ndi gi ta l. com
IN FOCUS
can be consumed in a multi-channel way to maximise our customers’ experience. To compliment the digital, advisory and one-to-one offerings, our large-scale congresses, member hosted exchanges and supplier innovation accelerators offer a wide range of in person networking experiences.
WHAT DOES PROCUREMENT LOOK LIKE FOR BUSINESSES IN 2020? I strongly believe that procurement will become far more strategic to the 104
business, continuing the trajectory it
“ I STRONGLY BELIEVE THAT PROCUREMENT WILL BECOME FAR MORE STRATEGIC TO THE BUSINESS, CONTINUING THE TRAJECTORY IT HAS BEEN ON FOR 20 YEARS” — Nandini Basuthakur CEO, Procurement Leaders MARCH 2020
has been on for 20 years from its legacy as a back-office function. However, many of the current tasks will become automated and digitalised, leaving procurement professionals to focus on the management of complex, reciprocal relationships in the supply network; supplier-collaboration initiatives for the collective good of the value chain and harnessing data to inform better business decisions. There is a risk that those procurement functions that don’t evolve quickly become obsolete.
105
IN WHAT WAYS CAN PROCUREMENT DELIVER STRATEGIC VALUE IN RISK, INNOVATION, SUSTAINABILITY, TALENT AND DIGITALISATION?
proportion of any company’s sustainability footprint. By deploying nextgeneration talent and new digital capabilities, procurement leaders can
Procurement is in the perfect position
harness these opportunities and
to deliver value in these areas. While
bring real value to their organisations.
enterprise risk management comprises many things, supplier and supply-chain risk is a large component. Similarly, the collective innovation capability of a company’s strategic
WORLD PROCUREMENT WEEK IS BACK FOR ITS SECOND YEAR - HOW SUCCESSFUL WAS LAST YEAR? Last year was a real success - it was
supply base far outstrips that of any
the first year we catered to the ultimate
single organisation, while the supply
procurement team experience. This
base also accounts for a significant
provided a dedicated content track w w w.suppl yc ha i ndi gi ta l. com
IN FOCUS
for the CPO and senior management,
CEO and board despite a backdrop
alongside further curated content and
of market uncertainty and external
activities for their wider teams. The
factors that could dampen growth
World Procurement Congress (for
prospects. This year’s Congress will
CPOs), running concurrently with the
equip delegates with the knowledge,
Indirect Category Leadership Forum
real life case studies and solutions to
(for team members), provided a valu-
pivot for business success.
able week for all, ending in the World Procurement Awards hosting a night of celebration for over 1000 delegates. For 2020, we will tailor that
106
WHAT MAKES WPC STAND OUT AND DIFFERENT FROM OTHER EVENTS? The World Procurement Congress
experience even further, allowing for
is exactly what the name suggests,
detailed content and impactful peer
a truly global gathering of senior
to peer networking suitable to all lev-
procurement professionals from the
els and roles.
CAN YOU TALK US THROUGH THE WORLD PROCUREMENT CONGRESS (WPC) AND WHAT THE EVENT OFFERS? The World Procurement Congress is the industry’s largest global gathering of senior procurement executives. The two-day event focuses on the visionary, forwardlooking trends that will shape the long-term success and impact of the procurement function. In 2020, procurement must evolve to support the C-suite agenda and, in doing so, become permanently relevant to the MARCH 2020
“ THIS HOLISTIC OPPORTUNITY TO NETWORK, LEARN,
world’s largest organisations as far reaching as Australia, UAE, the Latin and North Americas as well as from
BENCHMARK AND IDEATE
throughout Europe. While the nature
WITH A TRULY GLOBAL
CPO led, (Unilever, Cisco, Heineken,
SENIOR AUDIENCE SETS WPC
differs by showcasing leading authori-
ABOVE THE REST” — Nandini Basuthakur CEO, Procurement Leaders
of the speaker line-up is largely global IBM & IKEA to name a few), WPC ties from a multitude of different industries and vocations with cross functional C-suite insights, academics and business leaders providing a holistic learning offering as part of the programme to develop attendees to be the best business leaders they can possibly be. This year’s event will see the CEO of Givaudan join his Chief Procurement & Sustainability Officer to add unique insights around successful CEO to CPO partnering for business growth, while out of industry experts such as Matthew Syed, (Author of “Rebel Ideas: The Power of Diverse Thinking”) will challenge executives around conventional mindsets and avenues for innovation and ideation. This holistic opportunity to network, learn, benchmark and ideate with a truly global senior audience sets WPC above the rest. w w w.suppl yc ha i ndi gi ta l. com
107
IN FOCUS
WHAT IS IN STORE AT WPC 2020? WHY ATTEND? This year’s agenda will focus on the key challenges currently faced by the global procurement community: digitalisation, risk, sustainability and talent, but all through the lens of how these can help achieve business objectives and deliver impact to the C-suite agenda. The Congress aims to provide a roadmap for the modern CPO of how to develop their function, ensure the function’s value proposition is fit for a 108
new world and reach procurement and
MARCH 2020
“ THIS YEAR’S AGENDA WILL FOCUS ON THE KEY CHALLENGES CURRENTLY FACED BY THE GLOBAL PROCUREMENT COMMUNITY: DIGITALISATION, RISK, SUSTAINABILITY AND TALENT, BUT ALL THROUGH THE LENS OF HOW THESE CAN HELP ACHIEVE BUSINESS OBJECTIVES AND DELIVER IMPACT TO THE C-SUITE AGENDA” — Nandini Basuthakur CEO, Procurement Leaders
business overall goals through value
curement ecosystem to help develop
creation and sustainable growth in ever
practical and tangible strategy to exe-
changing and volatile environments.
cute the CEO agenda and deliver to
WPC is the perfect opportunity to meet
C-suite priorities, today.Â
with a global community of the most senior, progressive procurement lead-
Interested in attending? Click here for
ers from around the world. With time
more information about signing up!
set aside for formal and informal networking to expand personal and professional networks, content to inspire and aspire to, and an array of the most innovative technology and solution providers to help execute strategy, WPC 109
2020 brings together the entire pro-
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110
The telecommunications market in Azerbaijan WRITTEN BY
MARCUS LAWRENCE PRODUCED BY
CAROLINE WHITELEY
MARCH 2020
111
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AZERCONNECT LLC
Azerbaijan presents an interesting, dynamic, and growing telecommunications landscape
A
zerbaijan is a country of rich history and intrigue. Situated south of Russia, east of Georgia and Armenia, and north of Iran
with the Caspian Sea to its east, the former member of the Soviet Union has become a key figure in the 112
global oil trade and a potential focal point for transcontinental communications systems. Second only to its world-leading oil industry, Azerbaijan’s telecommunications sector is undergoing a period of steady growth and regulatory transformation. The space is shared between three core players: Azercell, Bakcell and Nar, the latter being the commercial brand of Azerfon. Other telcos operating across the Land of Fire include Aztelekom, AzQtel (SAZZ), Catel, BakTelekom, Vimpelcom (Beeline), Eurasiacom, and Fintur. In a study conducted by Research and Markets, Azerbaijan was included in 34 Asian markets assessed against its Telecoms Maturity Index, ranking 13th and indicating strong performance against world-leading markets such as Japan, China, South Korea, Taiwan and Singapore. MARCH 2020
113
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AZERCONNECT LLC
“ Situated at the axis between Central Asia and Eastern Europe, Azerbaijan is a key strategic location of the TransEurasian Information Superhighway (TASIM) project” 114
The country enjoys a strong 4G presence, with firms such as Bakcell continuously improving their coverage. In July 2019, the company reported that it had established 700 new base stations since the beginning of the year, pushing its number to over 2,300 at the time and its coverage to 78% of the population and 52% of Azerbaijan’s land area. Azernews reported in November 2019 that top Bakcell competitor Azercell’s 4G coverage had expanded by a staggering 364% over the course
MARCH 2020
Azercell 5G CLICK TO WATCH
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0:12
115 of the year, with the firm holding 49% of
fastest mobile internet and bringing
the country’s mobile market at the time
our network to the cutting-edge level.
across 99.8% population coverage
The 5G network that was recently
and 99.2% geographical coverage.
introduced by Azercell in a test mode
“Azercell has expanded its 4G
is a logical result of our initiatives
network aiming to make high speed
aimed at digitalization and connected
mobile internet available and con-
society of the future.”
venient for the population in the
Along with holding an enormous
capital city and the regions,” said
chunk of Azerbaijan’s telecoms sector,
Marat Hamidov, Director of Network
it stands as the country’s largest tax-
Technologies Department at Azercell
payer and investor from outside the oil
Telecom, in the Azernews report. “We
industry, Azernews added.
can declare our readiness to step into
Having already partnered for the
the next technological level as we are
delivery of Azercell’s test 5G network
getting our customers used to the
in Baku, the capital of Azerbaijan, w w w.suppl yc ha i ndi gi ta l. com
AZERCONNECT LLC
116
Ericsson recently announced that
project in Baku was Azerbaijan’s first
the companies had expanded their
foray into commercial 5G technology,
work together through a 2020-22
with the initial test beginning suc-
Memorandum of Understanding
cessfully in November 2019.
(MoU) to build the 5G pilot zone fur-
“Together with Ericsson, Azercell
ther and introduce internet of things
has launched the first 5G pilot net-
(IoT) technology to Azerbaijan’s min-
work in the country and this fact
ing, agriculture, manufacturing and
puts our company on a par with the
housing industries. The primary 5G
world leaders of the mobile market,”
MARCH 2020
“The primary 5G project in Baku was Azerbaijan’s first foray into commercial 5G technology, with the initial test beginning successfully in November 2019”
said Vahid Mursaliyev, President at
Sebastian Tolstoy, Head of Customer
Azercell, in Ericsson’s press release.
Unit Eastern Europe and Central Asia
“We believe that 5G along with being
at Ericsson, added: “Together with
a major step forward for mobile inter-
our key partner in Azerbaijan, Azercell,
net connectivity, will also open new
we are happy to open doors to wider
possibilities for enterprises
opportunities, innovative solutions, and
and industries to deliver greater effi-
applications that 5G can bring.’’
ciencies, productivity and empower user experiences.”
Situated at the axis between Central Asia and Eastern Europe, Azerbaijan w w w.suppl yc ha i ndi gi ta l. com
117
C O M PA N Y FACT S
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MARCH 2020
is a key strategic location of the Trans-
“ Together with Ericsson, Azercell has launched the first 5G pilot network in the country and this fact puts our company on a par with the world leaders of the mobile market”
Eurasian Information Superhighway (TASIM) project. The initiative seeks to connect Western Europe, Eurasia and Eastern Asia with a transnational fibre optic line from Frankfurt, Germany to Hong Kong, crossing China, Kazakhstan, Azerbaijan, Georgia and Turkey along the way. First put forward by Azerbaijan’s Ministry of Communications and Information Technology in 2008, the proposal was adopted by the UN General Assembly in 2009 which has 119
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AZERCONNECT LLC
120
MARCH 2020
since provided support in the creation of the Eurasian Connectivity Alliance to foster transnational cooperation. At present, the project is supported by China Telecom, KazTransCom, Rostelecom, and Turk Telekom. Serving the development of strong, robust telecoms in Azerbaijan are a plethora of service providers, one such example being ICT solutions and services specialist Azerconnect. As Azerbaijan’s first B2B ICT company, Azerconnect leads the way as a facilitator of the telecommunications sector’s growth and technological capabilities. Supporting such firms are organisations such as WeDo Technologies, now under the Mobileum umbrella, which provides its analytics platform, RAID, for datadriven risk management housed in a singular platform. Solutions such as this form the basis for compliance, trust and counter-fraud operations in the world’s increasingly data-focused business landscapes, with Azerbaijan being no exception.
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121
122
SUCCESS ACAD EMY D I S RUP T I NG THE E DUCAT I ON SPACE WRITTEN BY
SEAN GALEA-PACE PRODUCED BY
DENITRA PRICE
MARCH 2020
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SUCCESS ACADEMY CHARTER SCHOOLS
Vincent Moorehead, Senior Director of Strategic Procurement and Supply Chain at Success Academy Charter Schools, discusses his organisation’s transformation journey in New York City
124
S
Success Academy Charter Schools is the largest and highest-performing free public charter school network in New
York State. It’s the size of the seventh largest school district in the state. Founded in Harlem in 2006 by former New York City Council Member Eva Moskowitz, the organisation now operates 45 schools, enrolling 18,000 students in grades K-12, most of them low-income children of colour, in Manhattan, Brooklyn, Queens, and the Bronx. In a city where only one in three children of colour can read or do math at grade level, Success Academy’s scholars have excelled. On the most recent state exams, 99% of Success students passed mathematics and 90% passed English Language Arts. With ambitions to operate 100 schools and enroll 50,000 students over the next decade, Success Academy is driven to innovate in the realm of pedagogy as well as procurement. MARCH 2020
125
2006
Year founded
HQ
New York, NY USA
2,500 Number of employees
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We Can Build It: Success Academy Charter Schools CLICK TO WATCH
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3:48
127 Overseeing the organisation’s procurement arm, Vincent Moorehead, Senior Director of Strategic Procurement and Supply Chain, believes that Success Academy is differentiated by a culture of excellence: “Excellence is ingrained in our culture. Our customers are our scholars and their families,” explains Moorehead. “Our work is extremely high stakes. To us, it’s all about consistently raising the bar for what is possible in public education. We need to always be thinking about how we can deliver a great education to our
“ Our work is extremely high stakes. To us, it’s all about consistently raising the bar for what is possible in public education” — Vincent Moorehead, Senior Director of Strategic Procurement and Supply Chain, Success Academy Charter Schools w w w.suppl yc ha i ndi gi ta l. com
SUCCESS ACADEMY CHARTER SCHOOLS
128
“ If you look at charter schools generally, we are one of the few that has a procurement team” — Vincent Moorehead, Senior Director of Strategic Procurement and Supply Chain, Success Academy Charter Schools MARCH 2020
scholars and how we can use each dollar to make the biggest impact in our classrooms.” Operating efficiencies are critical to Success Academy. With public funding that’s about $5,000 less per student than what district schools spend each year, the network prioritises strong management of its resources. Moorehead has been instrumental in delivering savings. “The role of management is undervalued in public schooling,” says
129
Moskowitz. “Educators everywhere
A graduate from Howard University in
acknowledge the impact of effec-
Washington, D.C, Moorehead worked
tive teachers, but what is less often
for several different companies such
recognised—yet essential to creating
as United Technologies Corporation,
and sustaining excellent schools—is
Kearney, and the FBI before joining
the need for operational excellence.
Success Academy in August 2018.
When the administrative and business
Upon his arrival, the organisation
aspects of schools are well managed,
decided to centralise the entire
teachers and principals are freed up
purchasing area across the board.
to focus entirely on student learning.
“When I first started, we had so many
Vince has been important in helping
conversations about what a central-
us achieve this.”
ised procurement model would look w w w.suppl yc ha i ndi gi ta l. com
Move to a GREENER, more efficient SUPPLY CHAIN Increase process automation, save energy and lower your carbon footprint OpenText enables organizations to build green, ethical supply chains and reduce paper for a new and dynamic experience that helps save the planet
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like,” he says. “If you look at charter
processes, which led to the imple-
schools generally, we are one of the
mentation of Coupa and a centralised
few that has a procurement team. The
approach. He focused on making the
first thing we had to do was map out
programme as streamlined as pos-
an ideal purchasing process for our
sible. “I wanted something that was
network of schools. It was vital that we
very user-friendly because our users
had the right tools, systems, and pro-
are educators, not procurement spe-
cesses in place for our team to be able
cialists. They should be able to focus
to imagine how streamlined this new
on their scholars, not on purchasing
process could be for our school staff.”
orders,” says Moorehead. “I wanted
Subsequently, Moorehead set about updating several outdated and broken
a system in place where they could make requests for classroom supplies 131
E XE CU T I VE PRO FI LE
Vincent Moorehead Vincent Moorehead currently leads procurement at Success Academy Charter Schools, the largest and highest-performing free public charter school network in New York City. He leads a team that manages contract negotiations, supply chain, tactical and strategic sourcing in order to secure every thinkable material (from chapter books, furniture, to interactive whiteboards) for 18,000+ students in the NYC area. Vincent’s background is primarily within Supply Chain Management focusing on Operations and Procurement. Prior to joining SACS in 2018, he worked in management consulting at Efficio Consulting and A.T. Kearney, global sourcing at United Technologies, with unique experience in government contracting at the Federal Bureau of Investigation (FBI).
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SUCCESS ACADEMY CHARTER SCHOOLS
“ Educators everywhere acknowledge the impact of effective teachers, but what is less often recognised — yet essential to creating and sustaining excellent schools — is the need for operational excellence” 132
— Eva Moskowitz, Founder and CEO, Success Academy Charter Schools
MARCH 2020
in a way that they’re used to, similar to buying something on Amazon. On the backend, our procurement team still has the control, and we can now see what the needs of each classroom are in real time, as our teachers and school leaders make purchase requests. With this knowledge, we’re better prepared for our next school year. We better anticipate what we’ll need to stock in all of our classrooms based on what our educators request this year.” Having overseen many ERP implementations over the years, Moorehead affirms that this was one of the least troublesome he’s dealt with. “It was one of the smoothest transitions that I’ve ever been through and we implemented the system in just eight months,” he explains. “We phased out the launch and were able to trial the system before implementing it fully across our network. I’m pleased to say that after the initial hurdle of learning a new system, Success Academy staff members regularly stop me in the hallway and tell me how much easier the new platform is to use.” Success Academy places significant value on its partnerships. The network w w w.suppl yc ha i ndi gi ta l. com
133
Accelerating Digital Transformation Agilant, a Lenovo Gold Partner, is a global digital transformation company providing leading IT services and solutions in the education sector and beyond. We offer strategic design, proven IT technologies, and world-class support backed by more than three decades of industry experience.
LEARN MORE GoAgilant.com
Take a Look Inside a Success Academy School CLICK TO WATCH
|
1:47
135
“ I’m looking for a partner that understands the mission and wants to help us get there” — Vincent Moorehead, Senior Director of Strategic Procurement and Supply Chain, Success Academy Charter Schools
has formed several key strategic relationships, such as with The Advance Group, CrossCountry Consulting, KI, and OpenText. Moorehead believes that any prospective partnership must have the right drive and mentality to succeed from the start. “I’m looking for a partner that understands the mission and wants to help us get there,” says Moorehead. “The suppliers that we currently work with understand the challenges that we go through. However, it’s important that there’s mutual benefit and I’m constantly w w w.suppl yc ha i ndi gi ta l. com
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KI is proud to have been a partner with Success Academy since their start in 2006.
ki.com/ruckus
thinking about ways we can help make
including working with our internal
our suppliers’ jobs easier. By doing this,
and external technical teams, and was
we can support them not just for the
able to help reduce the change man-
immediate future, but long term too.”
agement impact on the organisation,”
Moorehead affirms that each
he explains. “OpenText has a digital
partnership plays a critical role in
platform that helps us protect our
ensuring Success Academy runs
data — which is critical for us because
efficiently. “CrossCountry Consulting
we’re protecting student privacy. All
was brought on board as our imple-
of our integrations use a partner for
mentation partner to help us roll out
error management and manage data
our new purchasing system, and they
as it flows from system to system.
have been outstanding. The team,
OpenText is at the heart of that and
led by Harpreet Narula, Partner at
has data that flows through it from our
CrossCountry, had in-depth knowl-
Human Resource Information Systems
edge of the purchasing system,
(HRIS) to our financial systems and
managed the entire implementation
to our purchasing platform.”
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137
SUCCESS ACADEMY CHARTER SCHOOLS
C O M PA N Y FACT S
• Last summer, Success delivered over 300,000 items per classroom across our 45 schools. • On the most recent state exams, 99% of Success students passed mathematics and 90% passed English Language Arts.
138
• For the 2019-20 academic year, Success Academy schools received more than 17,000 applications for about 4,000 open seats.
MARCH 2020
“KI has helped with providing innovative furniture and has been suggesting and updating products to ensure that our school design is as efficient as possible,” says Moorehead. “The Advance Group is our logistics partner. They deliver and install all the furniture in each classroom. Last summer, Success delivered over 300,000 items per classroom across our 45 schools. The Advance Group truly understands the critical nature of our mission and they are a reliable partner in making sure each of our classrooms is ready for scholars on the first day of school.” With a vision to operate 100 schools in New York City, Moorehead has a clear idea of how to achieve such ambitions. “I’m very optimistic and I believe we will get to 100 schools comfortably. By then, we’ll likely be serving over 50,000 students across New York,” says Moorehead. “That’s the size of the Boston or Atlanta school system.”
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PURA VIDA BRACELETS
ARTISANAL SUPPLY CHAINS
140
WRITTEN BY
WILLIAM SMITH PRODUCED BY
DENITRA PRICE
MARCH 2020
141
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PURA VIDA BRACELETS
ERIKO BAILEY, VICE PRESIDENT, SUPPLY CHAIN AT PURA VIDA BRACELETS, DISCUSSES HOW AN ETHICAL APPROACH TO THE SUPPLY CHAIN DEFINES THE BRAND
P
ura Vida Bracelets was founded by Griffin Thall and Paul Goodman after a trip to Costa Rica and an encounter with two
artisan bracelet makers by the name of Jorge and Joaquin. After originally requesting 400 bracelets to take back to San Diego, 10 years later the com142
pany is now worth over $100mn dollars. As Eriko Bailey, Vice President, Supply Chain, explains, the artisanal connection has not been lost along the way. “Our artisans have been able to scale with the brand and, today, Jorge and Joaquin are the sole owners of the manufacturer that produces 75% of the products which we offer to the marketplace.” That connection is an important part of the company’s identity and attracts the demographic with which it is most successful. “Where we really hit it off is with that millennial, Gen Z core customer,” she explains. “Being socially and charitably conscious is the life vein of the brand. We’ve also been able to highlight that through things like Instagram and Facebook where we use the social media aspect to really showcase Pura Vida as a lifestyle brand outside of just being a product.” In pursuit of this MARCH 2020
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PURA VIDA BRACELETS
“ BEING SOCIALLY AND CHARITABLY CONSCIOUS IS THE LIFE VEIN OF THE BRAND” — Eriko Bailey, Vice President, Supply Chain, Pura Vida 144
and alongside supporting artisans, Pura Vida partners with select charities. “We’re creating products that an end consumer can purchase and know that a portion of that dollar amount is given to charity. As a brand, our biggest focuses right now are mental health issues, animals and anything that has to do with the environment. Those are the three key things that our customers are demanding.” Of course, a focus on sustainability runs far deeper than just burnishing the company’s reputation. As Pura
MARCH 2020
Pura Vida — Live Free CLICK TO WATCH
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3:16
145 Vida expands the product categories in which it is active, it is ensuring that an ethical approach is built into its operations, and the operations of those with which it works. “We try to stay as authentic as possible to the artisan and charitable messaging that we have,” Bailey explains, “whether that be working with manufacturers that are Fairtrade certified, finding the cotton farmers that are working in organic fields, all the way through to the mills that are producing the fabrics that we’re going to be using.” Bailey has had a personal hand in ensuring w w w.suppl yc ha i ndi gi ta l. com
PURA VIDA BRACELETS
146
that such intentions are translated into
artisan means, but in essence anything
reality. “I’ve been spearheading our
that’s being made with two hands is
overall sustainability initiative. It started
artisanal. The biggest thing is focus-
with social compliance auditing of the
ing on transparency within all of our
factories of our vendors and manufac-
artisans and vendors. We work with
turing partners, then getting them up
them with regards to capacity planning
to a baseline; ensuring that fair wages
and what our demands are going to
are being extended to individuals at the
be. That helps them to scale up as the
ground level, that these facilities are at
business continues to grow.” In many
code, and that there’s a safe working
other ways, however, dealing with
environment overall.”
artisans is not so different from con-
The reliance on artisanal products
ventional mass production. “Just like
does present its own problems.
regular manufacturing, communication
“Everybody has this idea of what
and transparency are the two biggest
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147
E XE CU T I VE PRO FI LE
Eriko Bailey Eriko Bailey is Pura Vida Bracelets’ Vice President, Supply Chain. An innovative supply chain leader, she has proven success in transforming both forward and reverse supply chain operations to Best-in-Class, while reducing expense and improving customer satisfaction. With over 10 years of supply chain experience, Eriko also possesses a BS in Retail Management / Marketing and a Minor in Entrepreneurial and Emerging Enterprises from Syracuse University and a Professional Designation AA focused in Merchandise Product Development from Fashion Institute of Design & Merchandising. w w w.suppl yc ha i ndi gi ta l. com
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149
things that help production overall,” Bailey says. “You have to provide foresight on those annual plans you are looking to produce and also work with the teams that you have in terms of where they are today and where you need them to get to in six months, or a year from now. That visibility and transparency ignites the possibilities and the production capabilities of any manufacturer, whether they’re artisans or mass producers.” Culture is another important consideration. “Culture’s a big thing for our
“ CREATIVITY AND COLLABORATION ARE THE TWO BIGGEST COMPONENTS TO OUR CULTURE OVERALL” — Eriko Bailey, Vice President, Supply Chain, Pura Vida w w w.suppl yc ha i ndi gi ta l. com
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150
MARCH 2020
2010
Year founded
$108mn Revenue in US dollars
35
Number of employees communities, but also in the supply chain as well. This is made up of the people that are working for our brand: the individuals in the team. But then it’s also the wider supply chain. They’re an extension of our team - they may not have Pura Vida in the name, but they are still a part of us.” To a certain extent, that culture has been guided by the relative youth of its workforce. “Within the department specifically, and in the wider team as well as our vendor partners, creativity and collaboration are the two biggest components to our overall culture. I think the beauty of w w w.suppl yc ha i ndi gi ta l. com
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PURA VIDA BRACELETS
“ VISIBILITY AND TRANSPARENCY IGNITES THE POSSIBILITIES AND THE PRODUCTION CAPABILITIES OF ANY MANUFACTURER, WHETHER THEY’RE ARTISANS OR MASS PRODUCERS” 152
— Eriko Bailey, Vice President, Supply Chain, Pura Vida working with a company that is very
says. “Now that we’re growing into
young from an employee standpoint -
these additional categories we need
probably 85% millennial to Gen Z - is
to bring all of our vendors into one
the thought process of: ‘I’m going to
centralised database of information.
take this process, but I’m also going
Being able to have a partner plug
to try to improve it.’”
into a software program that can
Processes are also being improved
then provide information in real time
by technological means. “We’re
means we don’t have to wait a full
bringing in a product lifecycle man-
day for the information to come back.”
agement (PLM) system this year from
Pura Vida also relies on partners for
Visual Next, which is going to help
distribution, with different third-party
centralise our design and develop-
logistics (3PL) firms in domestic and
ment processes overall,” Bailey
international markets.
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153
Those international markets are just
first branded Pura Vida retail store,
one of many focuses for this rapidly
opening in May 2020, with more on
growing business. “We’ve just opened
our radar,” Bailey explains. “We’re fir-
a fulfillment center in Canada to help
ing on all cylinders to ensure that we
facilitate that growth as well as in
have a footprint on multiple levels so
Hong Kong for the APAC region over-
that the customer can really experi-
all,” says Bailey. “We’re very excited
ence the Pura Vida brand.”
about our international growth.” Traditionally both a direct to consumer and B2B brand, Pura Vida is bolstering those relationships while also exploring new methods of reaching customers. “We’re embarking on our w w w.suppl yc ha i ndi gi ta l. com
154
Logitech: streamlining the business of innovation WRITTEN BY
WILL GIRLING PRODUCED BY
CHARLOTTE CLARKE
MARCH 2020
155
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LOGITECH
Founded in the city of Lausanne, Switzerland in 1981, Logitech is a world-leading manufacturer of computer peripherals and associated software, dedicated to providing its customers with an organic digital experience
F 156
ounded in the city of Lausanne, Switzerland in 1981, Logitech is a market leading manufacturer of computer
peripherals and associated software. With a product range that includes computer mice, keyboards, headsets, speakers, smartphone/ tablet accessories and home security cameras, the company is dedicated to providing its customers with an intuitive and organic digital experience. Mindful that each product must be ergonomically developed in such a way as to make it feel natural to the user, the company has made product design a core aspect of its business and philosophy. Logitech can claim, amongst other products, to have released the first infrared cordless mouse, the thumb-operated trackball (the LogitechÂŽ TrackManÂŽ), and the first webcam to feature an integrated microphone.
MARCH 2020
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Customer Experience Experts Top-line talent Digital transformation Omnichannel technology
We design, build and operate exceptional customer experiences. TTEC Holdings, Inc. (NASDAQ: TTEC) is a leading global customer experience services provider focused on the design, implementation and delivery of tech-enabled transformative solutions for many of Europe’s most iconic and disruptive brands. The Company’s TTEC Digital business provides insight-driven, outcomebased and AI-enabled omnichannel cloud platforms and CX consulting solutions and its TTEC Engage business delivers operational excellence through customer care, acquisition, retention, fraud prevention and detection, and content moderation services. Founded in 1982, the Company’s 48,000 employees operate on six continents across the globe and live by a set of customer-focused values that guide relationships with clients, their customers, and each other. For more information on how TTEC is driving digital transformation and omnichannel customer experiences in EMEA, visit www.ttec.com/emea/what-we-do
LOGITECH
“ The company is dedicated to providing its customers with an intuitive and organic digital experience” Like many companies in the tech From these rudimental beginnings
160
sector, Logitech is attempting to
at the dawn of widespread personal
rejuvenate the ‘legacy’ aspects of its
computer use, Logitech has gone
operations and develop a more pro-
on to build a brand that encompasses
active team. Logitech’s relationships
the modern digital landscape’s key
with its suppliers are highly important,
entertainment areas: music, gam-
particularly as the company looks to
ing and video. Widely recognised in
streamline aspects of business, such
the tech community for its portfolio
as transactional procurement using
of innovative products and solutions,
Robotic Process Automation (RPA).
the company has received over 250
A cutting-edge supply chain infra-
industry awards/commendations in
structure can make all the difference,
appreciation of its work. Recent prod-
and building bridges with its main
ucts of note include the Logitech Rally
partners is how the company plans
conference camera, MEGABOOM 3
to achieve this goal, as each supplier
digital speaker, and Logitech G PRO
brings a separate, crucial component
mouse designed in collaboration with
to the overall effort. Some of the
the company’s e-sports partners.
essential companies partnered with Logitech include:
MARCH 2020
Choose the Right Logitech ConferenceCam for Your Video Meeting CLICK TO WATCH
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BCD TRAVEL
is a pioneering creator of point-of-pur-
Founded in 2006, BCD Travel helps
chase (POP) retail displays. Recognising
Logitech to optimise its travel costs
that good project management is a criti-
using innovative management tools.
cal element of a product’s success,
An expert in simplifying the complexities
the company makes sure that everything
of corporate travel, BCD is committed
stays on schedule and on budget,
to helping businesses achieve their
whilst also maximising visibility and
individual goals. A recognised market
brand awareness.
leader in the travel industry, BCD has offices in 109 countries and employs
TTEC
over 13,800 experienced people.
Colorado-based TTEC is Logitech’s main provider of business process
INESCO
outsourcing (BPO) — liaising with
Essential to previous products like
third-party providers to contract out
the Logitech Pro Mouse, Inesco
operations and responsibilities for w w w.suppl yc ha i ndi gi ta l. com
1981
Year founded
$1bn+ Revenue in US dollars
7,000 Number of employees
case for the products. With over eight decades of industry experience and 500 employees, the company provides exceptional solutions in the retail merchandising sector. Making sustainability a core element in the company’s culture, Logitech prides itself both on its corporate agility and large-scale commercial reach. Efficient in its operations, Logitech considers itself small enough to give every one of its 7,000 employees the chance to impact the future company’s
bespoke processes. Originally known under the name ‘TeleTech’ until 2018, TTEC now handles over 3.5 million customer interactions on a daily basis. With its specially formulated ‘CX strategy’ and data analytics capabilities, the company is a global leader in consulting, automation, and digital transformation.
RAPID DISPLAYS Taking onboard Logitech’s challenge to construct a bespoke promotional display for its iPad keyboards and cases, Rapid Displays managed to create a rugged, flexible and appealing w w w.suppl yc ha i ndi gi ta l. com
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LOGITECH
164
C O M PA N Y FACT S
• 250 industry awards • 7,000 employees • Logitech’s manufacturing plant in Suzhou, China uses 100% renewable energy • 75% of the company’s global energy demand is currently met by renewable sources
MARCH 2020
“ Logitech is attempting to rejuvenate the ‘legacy’ aspects of its operations and develop a more proactive team”
165
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CAPTURE YOUR AUDIENCE We create smart, innovative, attention-grabbing point-of-purchase (POP) retail displays. From initial concept to f inal delivery and installation, we can showcase your brand like never before. LEARN MORE
330.247.2209
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www.bcdtravel.com
“ Logitech prides itself both on its corporate agility and large-scale commercial reach” future, whilst also maintaining a global
its use of environmentally unfriendly
portfolio across 60 locations and
chemicals since 2010, along with
five continents that enables its
ensuring that companies supplying
choices to have a widespread impact.
it with minerals have sourced them
As such, Logitech has taken the
from conflict-free zones. This dedi-
reigns of commitment and responsi-
cation and insistence of ethical
bility towards the environment that
conduct from its partners has led
business in the modern era requires.
to the company auditing its Core
To this end, the company has
Suppliers to ensure 100% compli-
started global recycling initiatives,
ance with the Responsible Business
switched to renewable energy
Alliance’s Code of Conduct.
sources where possible, and estab-
“As a company, we want to leave
lished an ‘Ecodesign’ framework
our mark,” says President and CEO
to reduce carbon and plastic use
Bracken P. Darrell on Logitech’s web-
in the production of its products.
site. “We know that mark can be
Logitech’s manufacturing plant in
positive or negative, depending on
Suzhou, China uses 100% renewable
the decisions we make every day.
energy and received CarbonNeutral
Our commitment to shaping a better
accreditation from the Carbon Trust
world is a core value that we care
in 2019. Meanwhile, 75% of the com-
deeply about.”
pany’s global energy demand is currently met by renewable sources, a percentage which is rapidly increasing. Logitech has also managed to achieve a 71% reduction in w w w.suppl yc ha i ndi gi ta l. com
167
AIR FRANCE
168
INNOVATING FOR A SUPERIOR EXPERIENCE WRITTEN BY
WILL GIRLING
MARCH 2020
PRODUCED BY
MANUEL NAVARRO
169
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AIR FRANCE
CURRENTLY HEADQUARTERED IN TREMBLAY-EN-FRANCE, AIR FRANCE WAS FOUNDED IN 1933 AS A MERGER BETWEEN FIVE SEPARATE AIRLINES
A
joint venture between Air Orient, Air Union, Compagnie Générale Aéropostale, Compagnie Internationale de Navigation
Aérienne (CIDNA) and Société Générale des Transports Aériens - the latter of which was the first commercial airline in France - Air France began 170
offering small passenger flights of roughly 15 people in French-made aircraft, such as the Potez 62, Bloch 220 and Dewoitine 338. Utilising the extensive flight networks established by each of its constituent founding companies, Air France had a breadth of service which stretched to London, North Africa, South America and Asia-Pacific. Halted during the years of the Second World War, Air France was nationalised in 1945 and by 1948 covered over 160,000km - making it the largest flight network on Earth. Marking itself early on as an adopter of the latest technology, the airline embraced the jet age in 1953 with the introduction of the de Havilland Comet - the world’s first commercial jet airliner, with a cruising speed of 640km/h (390km/h faster than the company’s old workhorse Potez 62 models). The MARCH 2020
171
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AIR FRANCE
172
“ MARKING ITSELF EARLY ON AS AN ADOPTER OF THE LATEST TECHNOLOGY, THE AIRLINE EMBRACED THE JET AGE IN 1953 WITH THE INTRODUCTION OF THE DE HAVILLAND COMET”
company also made history from 1976 to 2003 as one of the two primary users of the first supersonic passenger aircraft: Concorde (top speed 2,370km/h). Air France’s passion for providing its passengers with a truly modern flying experience has been augmented recently with the introduction of stateof-the-art technologies, such as the Li-Fi (Light Fidelity) system added to the airline’s Airbus A321s. Able to function as a high-speed, low-latency multimedia hub for passengers, Li-Fi is also much less heavy than out-going tech due to its usage of fibre optic cabling rather than copper, reducing the aircraft’s weight and therefore increasing fuel efficiency. Artificial intelligence (AI) has come to play an important role in the airline’s customer service experience: chatbots are able to solve basic problems and answer questions relating to travel times, flight plans, destination details, and so on, therefore allowing the company to more adequately address its huge intake of daily enquiries. Also active in the startup world, Air France has launched a seed fund subsidiary called BigBlank, which offers promising entrepreneurs the
MARCH 2020
In-flight images of the Air France Boeing 787 Dreamliner CLICK TO WATCH
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1:47
173 finance, expertise and technology nec-
approximately 2,300 flights per day from
essary to fully develop innovative ideas
its primary hubs at Amsterdam-Schiphol
and introduce them to the industry.
and Paris-Charles de Gaulle. Employing
In 2004, Air France merged with
88,000 people around the world and
Dutch airline KLM to create Air France-
receiving revenues of more than â‚Ź27bn
KLM (AF-KLM). Focusing on passenger
in 2019, AF-KLM is dedicated to deliver-
transport, cargo transport and aeronau-
ing the highest quality service to 101.4mn
tical maintenance (via its Air France-KLM
travellers each year.
Engineering & Maintenance subsidiary),
The company’s air cargo subsidi-
Air France-KLM is dedicated to unsur-
ary - Air France-KLM Martinair - is one
passable excellence within the aviation
of the strongest in the sector. A flexible
sector. Offering passengers the oppor-
and purposefully-designed service, the
tunity of flying to 318 destinations spread
company makes use of 172 long haul air-
over 118 countries, utilising a fleet of
craft and six full freighter models to offer
548 aircraft, the company operates
the market a wide spectrum of solutions. w w w.suppl yc ha i ndi gi ta l. com
WHAT DOES REAL AVIATION MRO OPTIMIZATION LOOK LIKE?
DOWNLOAD THE WHITE PAPER
Staffed by over 4,000 people, Martinair
maintenance to approximately 3,000
has so far managed to transport over
aircraft so far. The company prides
1.2mn tonnes of cargo (worth â‚Ź2.3bn) to
itself on a four-way approach to busi-
457 destinations in 152 countries.
ness: innovation, global networking,
Not just offering a superior passen-
agility and airline-MRO. AFI KLM E&M
ger and logistics experience but also
also has a defined sustainability strat-
technical knowledge, Air France-KLM
egy, which includes increasing energy
Engineering & Maintenance (AFI KLM
efficiency by 20% by the end of 2020,
E&M) is a global leader in mainte-
researching the application of renew-
nance, repair and overhaul (MRO)
able energy within its operations and
services. With 14,000 staff assisting
designing its buildings and hangers
200 customers daily, the company
with low environmental impact in mind.
has provided best-in-class technical
Some of its sustainability achieve-
support, engine repair and structural
ments include recycling 400 tonnes of
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175
AIR FRANCE
176
MARCH 2020
177
2004
Year founded
$29.5bn Revenue in US dollars
88,000 Number of employees
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AIR FRANCE
178
“ THE COMPANY PRIDES ITSELF ON A FOURWAY APPROACH TO BUSINESS: INNOVATION, GLOBAL NETWORKING, AGILITY AND AIRLINE-MRO”
MARCH 2020
aircraft parts and using only 150 litres of water to clean a Boeing 777 - the largest twinjet model - instead of the previously required 12,000 litres. Over the course of its history, Air France has been dedicated to innovation that increases both operational efficiencies and the quality of customer service. From its hub airport Paris-Charles de Gaulle, the airline has managed to create a broad flight network utilising an optimised and modern fleet. Rated consistently in the top 25 of Skytrax’s World Airline Awards list and with strong capabilities in three crucial aspects of aviation, Air France’s commitment to excellence is evidently being recognised by the industry. “With these ambitions for the Air France-KLM Group and the exceptional commitment of our teams,” said Benjamin Smith, CEO of AF-KLM, in a press release, “I am convinced that we can become an industry leader in Europe, to the benefit of our employees, our customers, our shareholders and indeed all stakeholders.”
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