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ACCELERATING AUTOMATION IN THE SUPPLY CHAIN Abhy Maharaj, Global Chief Commercial Officer & Chief Operating Officer, discusses how inf luential automation has become to his firm’s operations
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FOREWORD
W
elcome to the November issue
In addition, we also speak with
of Supply Chain Digital!
Eric Thorsen, GVP Technology Presales, Field CTO of JDA Software,
In our cover feature this month, we
as he discusses the influence that
travel to Wakefield to interview Abhy
artificial intelligence and machine
Maharaj, Global Chief Commercial
learning is having on his company’s
Officer & Chief Operating Officer of
operations and the wider supply chain.
NewCold, to discuss how automation is transforming his company’s
There are also in-depth features with
operations. “At the heart of NewCold
Covéa, REC Solar USA and Dubai
is technology and we always operate
World Trade Centre that you won’t
with the customer in mind,” he says.
want to miss!
“What makes us different is the way in which we leverage technology to
Lastly, our top 10 counts down the
deliver solutions for our customers.”
most luxurious car supply chains worldwide.
Our leadership piece zones in on Amazon to question whether the
Would you like to be featured in the
e-commerce giant can now be
next edition of Supply Chain Digital?
considered a logistics company.
Get in touch at sean.galea-pace@
Elsewhere in the magazine, we take
bizclikmedia.com
a closer look at the machine learning services available and how they are
Enjoy the issue!
being adopted within supply chains.
Sean Galea-Pace
www.supplychaindigital.com
03
The Pathway to a Sustainable Supply Chain
About Avetta Avetta delivers a SaaS-based platform that mitigates the unseen risks of outsourcing, fostering sustainable growth throughout the supply chain. Through a proven vetting and evaluation process, Avetta is able to create dependable connections between clients, vendors and contractors. With real results in reducing incidents, our highly configurable solutions elevate safety and sustainability in workplaces around the world.
Centralize Core Values Change starts from within, and global supply chains are no dierent. Make the commitment internally to source ethically and sustainably with every business decision.
Find Like-Minded Partners Your supply chain is only as strong as it’s weakest link. Reduce your vulnerability by only working with contractors who hold the same safety and sustainability values as you.
Trust but Verify You are responsible for the incidents in your supply chain, regardless of the cause: employee or contractor. Trust your suppliers but verify with real-time contractor management solutions.
Grow to New Heights Eliminate unnecessary expenses and instead put that capital to work in new projects. Avetta clients average an ROI between 265% and 350% and a reduction in administrative costs of 75%.
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Click the home icon (top right of page) to return to contents page at anytime EDITOR-IN-CHIEF
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CONTENTS
12 ACCELERATING AUTOMATION IN THE SUPPLY CHAIN
38
50
60
68
78 Luxury Car Supply Chains
94
Events & Associations
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CONTENTS
98 CovĂŠa
116 REC Solar
132 Dubai World Trade Centre
12
ACCELERATING AUTOMATION IN THE SUPPLY CHAIN WRITTEN BY
PRODUCED BY
SEAN GALEA-PACE CAITLYN COLE
NOVEMBER 2019
13
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NEWCOLD
14
Speaking to Supply Chain Digital in Wakefield, Abhy Maharaj, Global Chief Commercial Officer & Chief Operating Officer, discusses how influential automation has become to his firm’s operations
T
he industry is changing — automation has become king. The influence of technology on how businesses operate shows
no signs of slowing down and its now become paramount that companies are agile or risk getting left behind. In the case of NewCold, the latest industry trends have been embraced and instilled into four key pillars: innovation, trust, agility and automation. NewCold is recognised as a leader in the development and operation of highly automated cold stores. The firm has a global network with eight locations in three continents and is still growing.
NOVEMBER 2019
15
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LIVING LOGISTICS
REALIZING VISIONS
TGW is your reliable partner for intralogistics solutions: We deliver complete integrated solutions for our customers, realize and service mechatronical subsystems or products adapted to the specific needs of our distributors. TGW Distributor Business is proud of the successful long-term cooperation with NewCold, which includes most areas of intralogistics.
www.tgw-group.com
CLICK TO WATCH : ‘INNOVATION AT THE HEART - ABHY MAHARAJ, NEWCOLDS GLOBAL CCO & COO’ 17 Speaking to Supply Chain Digital
the data, its value and how to build the
at the company’s Wakefield site, Abhy
logistical business around it. All of our
Maharaj, Global Chief Commercial
sites are 80-90% automated and you
Officer & Chief Operating Officer,
won’t find anything else close to that
stresses just how vital technology
all over the world.”
has become to NewCold. “At the heart
Maharaj lives and works at NewCold’s
of NewCold is technology and we
Asia Pacific headquarters in Melbourne.
always operate with the customer in
Still relatively fresh into the role having
mind. What makes us different is the
joined in July 2019, Maharaj believes
way in which we leverage technology
that NewCold’s key focus on customer-
to deliver solutions for our customers,”
centricity was an important factor on his
he explains. “Take Big Data for instance,
decision to join the firm. “When I looked
when NewCold thinks about automa-
at the model, it was breath-taking
tion or about its customers and services
because it centered around automation
— that starts with data. We understand
and getting large volumes of product w w w.suppl yc ha i ndi gi ta l. com
Degrees Beyond. Founded in 1997 on the principles of sound construction, exceptional customer service, financial responsibility and personnel management, we are a structurally dynamic organization dedicated to outperforming our competition and exceeding the expectations of the cold storage industry. Most importantly, we are here to help our clients succeed. As an employee-owned company, each member of our team is empowered and vested in the success of our clients. We commit 100% to each detail, big and small. We dismiss the idea of cutting corners and we aim to provide the best for our clients in every aspect. We pledge to complete your job safely, efficiently, on-time and within budget. The partnership with Newcold and their construction team highlights our commitment to listen to our clients and tailor solutions that fit their particular needs. SubZero is your partner from concept to completion. 949 216 9506 subzeroconstructors.com
LEARN MORE
in and out,” affirms Maharaj. “I developed
I feel like it’s a great time to be joining
a strong relationship with NewCold’s
NewCold and also for us to realise our
founder, Bram Hage, who I felt was
potential beyond the three continents
a great visionary and always had the
that we’ve just entered.”
customer at heart. I truly believed it
With automation at the forefront of
was a business model that suited me
operations, NewCold leverages ware-
very well and it’s tremendously scalable
house management software (WMS)
across the world. It’s rare that a
in its automated facilities, which has
European-based business can enter
proven highly successful at the compa-
the US and Australian markets so quickly
ny’s eight facilities worldwide. The WMS,
and we’re only just scratching the surface.
developed by Davanti Warehousing,
E XE CU T I VE PRO FI LE
19
Abhy Maharaj Abhy Maharaj is the Global Chief Commercial Officer & Chief Operating Officer for NewCold. Maharaj is from New Zealand and graduated with a Bachelor of Commerce from The University of Auckland. In his previous roles Maharaj was Head of Strategy & Investor Relations for Air New Zealand, Director of Equity Markets and Strategy for Fonterra Co-operative Group and CFO for Fonterra Australia. During this time, he was responsible for a number of significant transformation initiatives ranging from establishment of new business ventures, re-engineering of customer engagement models, technology and online innovations and complex financial restructuring including leading a $13bn IPO. Maharaj also studied at Harvard Business School and is married to Ashika Maharaj. He has three children.
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INDUSTRIAL
COOLING
SOLUTIONS Potyzestraat 42 B-8900 IEPER BELGIUM Tel.+32 57 21 86 21 www.skt.be info@skt.be
- Major refrigeration contractor to the European frozen food industry - Specialist in the design of large industrial ammonia plants - Manufacturer and installer of large modular IQF freezing tunnels - Authorised installer of Howden, Grasso & Bitzer - Up to 40 tons/hour - More than 50 years of experience - Service 24/24 - 7/7
CLICK TO WATCH : ‘CCO AND COO ABHY MAHARAJ ON THE NEWCOLD FAMILY SYSTEM’ 21
“ I feel like it’s a great time to be joining NewCold and also for us to realise our potential beyond the three continents that we’ve just entered” — Abhy Maharaj, Global Chief Commercial Officer & Chief Operating Officer
delivers its own state-of-the-art product — the innovative cloud-based management system CORAX. Having been developed using the latest Microsoft technologies, the SaaS (Software as a Service) allows NewCold to control the software design to meet its requirements and fulfil the needs of its customers. Through the assessment of these customer needs, NewCold provides tailor made solutions for the specific transport requests of its customers. The company possesses a range of different solutions to execute the transport of its customers, which w w w.suppl yc ha i ndi gi ta l. com
NEWCOLD
22
NOVEMBER 2019
includes a fleet of 200 own managed trucks and a diversity of partnerships which enables a full network optimisation. From operating a large-scale own transport fleet to a 3PL managed transport solution with dedicated partners, Maharaj’s customer-centric approach comes from understanding the drive behind his customers’ requirements. Despite the influx of new technology, Maharaj believes that it is vital that all incoming technology serves a purpose and enhances existing processes to ensure technology is not embraced for the sake of it. “Our sites are developed with sustainability in mind because customers want less energy use. Typically, NewCold’s sites are 50% more energy efficient than conventional cold storages,” he explains. “We make it easy for our customers to understand exactly where their products are in order to enable them to track it in real-time. Our systems are very smart so if a product arrives and is in the warehouse only for a few hours, it is placed in the most optimal position so that it can be moved in and out efficiently. There’s already quite a degree of AI already built into our software system.” w w w.suppl yc ha i ndi gi ta l. com
23
HIGH-BAY WAREHOUSE FOR DEEP FREEZE INTRALOGISTICS AT ITS BEST
In Burley, Idaho, NewCold celebrated the grand opening of one of the largest frozen storage facilities of its kind. This impressive project includes a high bay warehouse with 90,000 pallet positions supplied by SSI Schaefer. Additional high bay warehouses for NewCold have been built in Tacoma, Washington, as well as Wakefield, UK and Rheine, Germany. SSI Schaefer has a longstanding partnership with NewCold. As a leading provider of modular warehouse solutions – especially rack clad storage systems, SSI Schaefer has provided several deep-freeze high bay warehouses for NewCold. The latest automated deep-freeze warehouse project is currently underway in Rennes, France. The demand for deep-freeze products continues to grow. As volumes increase, requirements placed upon deep-freeze logistics are getting more complex. SSI Schaefer offers flexible, modular, and scalable solutions that optimize storage, picking processes, and profitability within cold storage facilities. Along with complex logistics solutions, SSI Schaefer also provides rack structures as a standalone business.
ssi-schaefer.com
The long-term success of all businesses lies with the relationships that is developed with its customers. By operating with an agile approach, it allows NewCold to be lean and easily adapt its processes. “Engagement with our customers is key,” he explains. “We need to be constantly aware of the latest industry trends and the needs of our customers. For example, an increasing number of people are eating out of their homes, or using innovations like UberEats or DoorDash, so you need to consider the impact that this is having on our customer’s
“ At the heart of NewCold is technology and we always operate with the customer in mind” — Abhy Maharaj, Global Chief Commercial Officer & Chief Operating Officer
businesses.” With customer demands frequently changing, Maharaj believes it’s important to keep up-to-date with the latest trends in order to retain its position as a leader in the market. “It’s all about understanding those requirements from our customers to enable us to think ahead,” says Maharaj. “Our software is not just about warehouse management; it also revolves around starting to integrate more into the customer channels. We’re in multiple markets with some of our major customers and it’s important to recognise that supply chain and logistics aren’t w w w.suppl yc ha i ndi gi ta l. com
25
Building the Future
At Kingspan Insulated Panels, we are pioneering better technologies and methods of building for a low carbon world. Improving building performance, construction methods and ultimately people’s lives – that’s what drives our people across the world. Energy efficiency is at the heart of our innovation, from making the industry’s most thermally efficient core for our insulated panels, to producing the most airtight interfaces, to providing technical and fieldservice support on how to build optimally. As the world demands more from buildings in terms of energy efficiency, fire safety, weather resilience, health and aesthetics, Kingspan envelopes will take our built environment to the next era of efficiency and wellbeing.
kingspanpanels.com.au
Aesthetics
Build Ease
Energy
Fire
27
the same in every market. It’s really
Kinspan, SSI Schager, Deweerdt,
about acknowledging how we can
S-Zero. Maharaj believes the ability
apply the learning across not only one
to develop mutual trust and under-
country but multiple ones and then
standing is vital to all successful
bring that to our customers and say
partnerships that NewCold estab-
‘you could potentially improve your
lishes. “Partnerships are essential
business if you adopt these changes,’
to us. We have a co-competence that
and that’s really how we work together.”
relies heavily on our partners. At the
Highlighting the importance of devel-
core, we need to grow together and
oping strategic partnerships to help
learn from one another, so trust plays
accelerate operations, NewCold has
an important role in that,” explains
developed key partnerships with a
Maharaj. “Partnerships also help
number of companies such as; TGW
us with innovation too. If they’ve got
Group, SKT, B-Built, Ancra, Fisher CGI,
thoughts and ideas on the latest w w w.suppl yc ha i ndi gi ta l. com
NEWCOLD
OUR PARTNERS NewCold values the impact its partners have on its success and collaborates with TGW Logistics Group, SKT, B-Built, Ancra, Celonis, Fisher Construction Group, CGI, Kingspan, SSI Schaefer, Masterveil/De Weerdt BVBA and Subzero Constructors. This affirms why each of these partnerships are critical to driving success at NewCold. 28
TGW Logistics Group TGW Group is NewCold’s partner for the conveyors and lifts in the cold storages, which takes care of pallet transport within the warehouse. It is a global, preferred supplier of NewCold, the two firms have worked in partnership for a considerable amount of time. www.tgw-group.com SKT SKT is NewCold’s supplier of industrial cooling solutions for the European market. SKT delivers the industrial equipment to control the freezing temperatures in the cold storages. It’s a Belgian family-owned company which NewCold has a long-term partnership with. www.skt.be NOVEMBER 2019
B-Built B-Built is a general contractor of NewCold for the European market. B-Built takes care of the actual construction of a NewCold facility. It is a family-owned, small scale company with a lot of flexibility. www.b-built.com Ancra Ancra is NewCold’s preferred partner in the innovative application of Automatic Loading and Unloading systems for warehouses and trailers. With this system, no human hands touch the food products from loading at the producer to in- and outbound at the NewCold warehouse. Ancra is a Dutch company with a global playfield. www.ancra.nl Fisher Construction Group Fisher Construction Group is a preferred general contractor of NewCold in the USA. Fisher built the NewCold facilities in Tacoma (WA) and Burley (ID). Fisher has long-term experience in the construction of cold storages which is of great value in its projects. www.fishercgi.com CGI CGI is a global IT and consultancy services provider that helps maximise the technologies that transform the business of
its customers. CGI supported NewCold in Melbourne to define KPI’s and test protocols for the start-up of a crucial functionality. Their knowledge of Business Intelligence and Testing Methodology helped NewCold to optimise its operation. www.cgi.com.au Kingspan Kingspan is NewCold’s global supplier of insulation panels; they form the external, high insulating cover of NewCold’s facilities. Its high-quality panels are always at the forefront of innovation, which is – in relation to fire safety and insulation value – a high-impact value for NewCold. www.kingspan.com
It’s a Belgian based company with a a high innovative drive and flexibility. www.masterveil-eu.com Subzero Constructors Subzero Constructors is NewCold’s supplier of industrial cooling solutions for the Northern-American market. Subzero Constructors, a US-based company, delivers the industrial equipment to control the freezing temperatures in the cold storages. www.subzeroconstructors.com
29
SSI Schaefer SSI Schaefer is NewCold’s preferred supplier of pallet racking. The racking in the high bay construction of NewCold’s facilities takes care of the huge storage capacity. SSI Schaefer is a global, solid company, originated in Germany, with which NewCold has a long-term partnership. www.ssi-schaefer.com Masterveil/De Weerdt BVBA Masterveil is the designer and supplier of NewCold’s aircurtains and dehumification systems. These systems take care of a solid closure of external openings in NewCold’s cold storage, for instance at train docks. w w w.suppl yc ha i ndi gi ta l. com
CLICK TO WATCH : ‘STAYING CUSTOMER CENTRIC WITH NEWCOLDS GLOBAL CCO & COO’ 31 incoming technology, then they share
measuring risk when looking to imple-
that information and we collaborate
ment new software and processes.
together to develop new solutions for
“With any technology and innovation,
our customers or improve efficiencies.
there’s a risk attached. We tend to
I also believe that due to the pace of
develop our own systems and technol-
which NewCold is growing; execution
ogies because we’ve got existing sites
and agility is also critical. As we con-
that we can test and if it’s not working,
tinue to incorporate new customers
we also have mechanisms in place
and enter new markets, we need to
where we can quickly stop the pro-
be fully informed of the trends that
cess.” Maharaj believes in a ‘fail fast’
are out there as well as the challenges
process that if something isn’t going
that we might face.”
to work, then the process can be
With innovation recognised as one
moved into an environment that can
of NewCold’s key pillars, Maharaj
be tested more easily. “We don’t take
understands the importance of
massive risks where we will implement w w w.suppl yc ha i ndi gi ta l. com
Outside door (protection)
THE SOLUTION PROVIDER FOR THE END-USER More than 30 years of experience in creating the ideal product and production environment, that is Masterveil. In the field of separating climates, air humidification and air dehumidification we deliver tailor-made solutions with a focus on the production process, the nature of the process, the product and the people in the process.
Design (for entrances)
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For Masterveil creating and separating different conditions is more than just developing and installing equipment. We set ourselves up as a sparring partner and devote ourselves to achieving an integral solution. Whether it concerns cool cells, freezer cells, logistics, production or storage, Masterveil thinks along with you. Outside Doors and conditioned cells Design and entrances of shopping centres Comfort and wind control Freezer and shockfroster Advice & Commercial Project check Energy Simulations & Measurements Project Coordination Montage & Maintenance Qualitycontrol & Startprotocol
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new untested processes on a full site
our customers need to believe in and
all at once. We’ll take an approach where
be educated on the automation we
we collaborate with our customers,
have. When you look at the advance-
our people and understand what the
ments of technology, we have spent
risks are. We manage the risks and if
a considerable amount of time educating
the worst happens then we always
and making sure that people fully
have a back-up plan.” Another vital part
understand what it’s all about — there
of NewCold’s mantra is trust. Maharaj
has to be the trust there.”
believes this to be essential to NewCold’s
With an intent to reduce the impact
strategy. “Due to the way our logistics
its operations have on the environment,
and cold storage business is set up,
NewCold has begun to optimise the cold supply chain and introduce innovating concepts. Due to its facilities being tall, it allows the buildings to embrace storage technology with a high stock density. The company’s stacker cranes in the cold store operates in the dark, with
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33
NEWCOLD
“ We have a strong philosophy around sustainability and we want to help bring a greener 34 future. There’s still more to do — we aren’t finished yet” — Abhy Maharaj, Global Chief Commercial Officer & Chief Operating Officer only LED lighting used for maintenance. This approach has enabled NewCold to use 50% less energy per pallet position in comparison with traditional cold storage facilities. “There’s a substantial focus on sustainability NOVEMBER 2019
35
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The specialist in automatic truck (un)loading. Ancra Systems is the specialist in the field of automatic truck loading and unloading systems, from standard system to customer specific solution. Tailored to your industry and calculated based on your logistics requirements. Ancra Systems has been streamlining loading and unloading worldwide for more than twenty years.
Learn More
+31 (0)880 247 150 ancra.nl
COLD AS ICE A fast-growing specialized construction company, B-Built has extensive experience in building large-scale cold store warehouses in Western Europe. Acquired knowledge that we continuously and successfully apply in the building of new logistics facilities. LEARN MORE
+31-(0)164-271660
2012
Year founded
years and beyond. “We’ve got substantial projects already underway and our existing sites are filling up. Across Europe, most of our sites are full so
730,000 Pallet positions
1,000
Approximate number of employees
there’s extension work to be done on our sites in order for us to increase our capacity,” he explains. “We’ve already entered Australia and the US, with both our sites becoming busier, I believe there’s also possibility for new builds coming into those regions. Our immediate focus is to ensure that we bring in new business as we look to enter new markets. We’re always looking to grow and it’s a big part of
worldwide and we like to think we focus
our focus by scaling up our software
heavily on helping to bring that change
developers, operations people and
too,” affirms Maharaj. “In the early days
management team to ensure we deliver
of NewCold’s model, we dramatically
on our commitments and successful
reduced energy consumption and with
implementation of projects on-time
our customers becoming increasingly
and on-budget.”
more focused on sustainability, it has led to it becoming an important driver for us. We have a strong philosophy around sustainability and we want to help bring a greener future. There’s still more to do — we aren’t finished yet.” Looking to the future, Maharaj has a clear vision of the position he hopes NewCold to be in over the next few w w w.suppl yc ha i ndi gi ta l. com
37
P R O C U R E M E N T T R A N S F O R M AT I O N
38
CAN AMAZON BE CONSIDERED A LOGISTICS COMPANY? With the e-commerce giant Amazon offering a diverse range of services, Supply Chain Digital delves deeper into Amazon’s heightened interest in the logistics space WRITTEN BY
NOVEMBER 2019
SEAN GALEA-PACE
39
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P R O C U R E M E N T T R A N S F O R M AT I O N
C
ombining a host of services, Amazon is lots of things to different people. The company is unique and there’s nothing quite like it. Focusing on providing a varied range of
services such as e-commerce, cloud computing, digital streaming and artificial intelligence (AI), the US-based company’s influence is felt worldwide. With approximately 647,500 employees, 288.4 sq.ft of real estate and consisting of almost half of the online retail in the US, Amazon is considered one of the “Big Four” alongside Google, Facebook and Apple. However, now, it seems Amazon is adding another string to its extensive bow as the global giant enters the third-party logistics
40
carrier (3PL) market. Originally founded in 1994 by CEO Jeff Bezos, Amazon has significantly transformed its services throughout the years, from its early beginnings as an online bookshop in Seattle to becoming the global powerhouse it is today. It conducts business in a number of different areas and ways. These are: Amazon Logistics — its fulfilment and logistics platform, Amazon Web Services (AWS) — its cloud computing infrastructure, Amazon Prime — its loyalty programme and Amazon Retail — its online shopping function. However, the key question remains: can Amazon primarily be considered a logistics company? Following TJI Research’s report in April which revealed that select shippers in Chicago, Los Angeles and New York were invited to use Amazon Shipping, the service began offering 50% cheaper shipping rates NOVEMBER 2019
“AMAZON IS CONSIDERED ONE OF THE “BIG FOUR” ALONGSIDE GOOGLE, FACEBOOK AND APPLE” than UPS for some sellers. As a company that is versatile and seemingly transforms at will, Amazon made the decision to directly compete with third-party shipping companies and reduce sellers’ reliance on firms such as FedEx and UPS. Previously, UPS handled 62% of Amazon’s total traffic, with Amazon just dealing with 10% of its own shipping traffic, however, change is afoot as the tech giant seeks to support its own Prime fast-shipping programme. w w w.suppl yc ha i ndi gi ta l. com
41
P R O C U R E M E N T T R A N S F O R M AT I O N
CLICK TO WATCH : ‘HOW TO GROW YOUR SALES — GO GLOBAL: EXPAND TO EUROPE’
42
In the US alone, Amazon’s warehouse and distribution centres total 386 facilities, in addition to 159 fulfilment centres, 47 inbound and outbound sortation hubs as well as 52 Prime Now hubs and 115 local delivery stations, according to data by MWPVL International. Taking this figure worldwide, Amazon boasts 850 facilities in 22 countries, consisting of 220mn sq.ft, while comparatively speaking, UPS has around 1,000 package handling facilities with approximately 68mn sq.ft. NOVEMBER 2019
Amazon’s fulfilment process begins
containers that holds hundreds of
when products arrive on tractor trailers
boxes in slotted stacks. With each
and travel inside on conveyer belts
plane having the space to carry over
as they start the process of reaching
30 containers, Amazon has the
the all-important final destination:
capacity to back up any influx of
the customer. Following the product’s
orders. To handle this, Amazon now
journey along the conveyer belts for
offers a one-day delivery option for
packaging, the box is packed and
Prime members, in a bid to deal with
weighed before then being loaded
the quick turnaround and process
onto Amazon trucks to bring the orders
orders more efficiently.
from fulfilment centers to sortation
However, despite this one-day deliv-
centers. Amazon’s planes take to the
ery service, Amazon still didn’t feel this
air from 20 airports across the country,
was quick enough. At the re:MARS
packages are loaded onto metal
conference (Machine Learning, Auto-
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43
P R O C U R E M E N T T R A N S F O R M AT I O N
mation, Robotics and Space) in Las Vegas earlier this year, Amazon unveiled its latest Prime Air innovation: drones that deliver straight to customers’ doors. The drones, which are fully electric and can fly up to 15 miles to deliver packages under five pounds to customers in less than 30 minutes, are the latest example of Amazon’s determination to push what is possible. But, despite the implementation of new technology such as AI and machine 44
learning (ML), Amazon does also consider its sustainability drive as it seeks to achieve “Shipment Zero” and aims to ensure all of its shipments become zero carbon, as the company harbours the ambition of achieving 50% of all shipments net zero by 2030. Speaking exclusively to Supply Chain Digital, Kiri Masters, Founder & CEO of Bobsled Marketing, a digital agency that helps consumer product brands grow and protect their Amazon marketplace channels, believes it’s become clear that Amazon has become a major player in the logistics space. “Five years ago, NOVEMBER 2019
“AMAZON’S WAREHOUSE AND DISTRIBUTION CENTRES TOTAL 386 FACILITIES, AS WELL AS 159 FULFILMENT CENTRES, 47 INBOUND AND OUTBOUND SORTATION HUBS AS WELL AS 52 PRIME NOW HUBS AND 115 LOCAL DELIVERY STATIONS”
UPS and FedEx didn’t consider Amazon to be a competitor to them. However, during that time it has become obvious that Amazon is a fulfilment competitor, both at the high-level logistics level as well as getting packages into the hands of customers,” explains Masters. “Amazon has invested a lot of money into their fulfilment network starting with their warehouses and now have over a 100 warehouses or fulfilment centres in the US, as well as dozens more internationally too.” Having authored books on Amazon, such as ‘The Amazon Expansion Plan’ and ‘Amazon for CMOs’ as well as regularly contributing to Forbes, Masters is well-placed to provide insight into how Amazon conducts operations. “Amazon’s stores purchase inventory from the brand, hold it at their fulfilment centres and then complete each order as they come in,” she says. “Then, when they’re running low on inventory, they’ll repurchase from the brand. Over the last 10 years, Amazon’s unit sales have shifted from being largely sales from these retail w w w.suppl yc ha i ndi gi ta l. com
45
P R O C U R E M E N T T R A N S F O R M AT I O N
relationships with brands to a market-
that they not only fulfil their own items
place model where today over 50% of
purchased from brands as a first party,
units sold on Amazon are actually sold
they also open up their fulfilment
by third party merchants on
centre network to third party merchants
Amazon’s marketplace. I believe that
and allow these merchants to leverage
part of the reason for a big shift in the
Amazon’s fulfilment infrastructure.
makeup of third-party sales versus
It’s very similar to what they did with
first party retail sales is Amazon’s
AWS, which is an enormous and very
fulfilment capabilities.”
profitable part of their business.
“In short, I believe that Amazon
They created their own cloud com-
is definitely a fulfilment company,”
puting infrastructure to be used
she summarises. “Based on the fact
internally within Amazon. This then
46
“ AMAZON NOW OFFERS A ONE-DAY DELIVERY OPTION FOR PRIME MEMBERS, IN A BID TO DEAL WITH THE QUICK TURNAROUND AND PROCESS ORDERS MORE EFFICIENTLY”
NOVEMBER 2019
led to them selling that to other busi-
carriers and independent local delivery
nesses and enterprises and is how
companies. Amazon Logistics is com-
its fulfilment and logistics division
prised of small and medium sized
originally began too.”
businesses that enable us to supple-
So, with all this considered, can
ment capacity to serve our growing
Amazon ultimately be considered not
customer base as well as enable
just any logistics company, but one
faster delivery options such as one-
of the biggest globally? When asked
day, same-day and even one-hour
for comment, an Amazon spokesper-
delivery for customers.”
son said: “Amazon uses a variety of
Whatever the future for Amazon,
operational models to get packages
it’s clear the giants are showing
to customers, including traditional
no signs of slowing down. 47
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D I G I TA L I S AT I O N
50
innovative technology within supply chains WRITTEN BY GEORGIA
NOVEMBER 2019
WILSON
51
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D I G I TA L I S AT I O N
Supply Chain Digital takes a look at the machine learning services available and how they are being adopted within supply chains IBM WATSON Watson is IBM’s suite of artificial intelligence (AI) services, applications and tools. Watson aims to help businesses unlock the value of data in new ways and remove repetitive tasks from employees to shift 52
the focus to high-value work. This is in addition to allowing companies to predict and shape business outcomes in order to rethink practices and workflow. A part of IBM Watson’s AI services is machine learning. Watson’s software has been developed to help data scientists and developers integrate AI into company applications. Watson Machine Learning enables cross-functional teams to deploy, monitor and optimise models quickly and easily.
BASF: BUILDING A SMART SUPPLY CHAIN BASF Nutrition and Health – a division of chemical group BASF – partnered with IBM in early 2019 as part of its wider vision NOVEMBER 2019
53
to make digitalisation an integral part of the business. BASF requires high delivery performance for its products with end-to-end coordination across suppliers, manufacturers, logistics partners and distribution centres as well as the ability to manage dysfunctional inventory. Partnering with IBM, BASF explored how AI and machine learning could create smarter inventory decisions and ensure products arrive in the right place at the right time. w w w.suppl yc ha i ndi gi ta l. com
D I G I TA L I S AT I O N
54
With the help of IBM Watson’s cognitive intelligence BASF and IBM first built a proof of concept (PoC) to
was built to predict future replenishment requirements. After completing just 10 training
evaluate how AI and machine learning
cycles, the software provided
could be utilised to build a more
accurate, early warnings for stock
powerful Replenishment Advisor tool.
replenishment and the optimal time
Following the evaluation, IBM Watson
for minimal disruption.
and BASF designed a model based on
“IBM Cloud and Watson AI services
transactional order data and future
gave us access to a wide range of
orders from the company’s ERP
machine learning models with IBM
system as well as sales pattern reports,
experience built in, right out of the box,”
volume strategy, inventory levels and
says Dr. Bernd Lohe, Director Supply
shipping times. Using open-source
Chain Operational Excellence &
machine learning, a custom solution
Digitization at BASF Nutrition & Health.
NOVEMBER 2019
55
“This meant that we could start analysing our data and training the Replenishment Advisor immediately. The solution also includes data visualizations. During the training phase, this helped our planners to understand system recommendations and to execute effective training loops for machine learning. An integrated chatbot functionality is built into the Replenishment Advisor, allowing staff to interact with the solution using natural language. Based on our successful PoC, we are very
“ Weight measurement is a very simple example, but it proves that integrating AI and smart factory technology can have a genuine impact on production-line efficiency and quality management” — Dr. Jongwoon Hwang, Group Leader, KIST Europe
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D I G I TA L I S AT I O N
56
satisfied with the IBM Watson portfolio,
evolution of technology from centralised
both in terms of the powerful cognitive
systems governed by human intelligence
capabilities and ease of use.”
to decentralised machines that can operate independently.
KIST EUROPE: MAKING FACTORIES SMARTER
‘Industry 4.0’ can add to the manufac-
KIST Europe – the first overseas
turing industry, KIST Europe partnered
branch of Korea Institute of Science
with SmartFactory and IBM Watson
and Technology (KIST) – aims to build
to improve weight measurements,
open innovation platforms for leading
an integral part of quality management.
Korean and European research
“The technology behind SmartFactory
institutes and industry partners.
is impressive, but manufacturers are
One of KIST’s key research areas
not interested in technology for its
is the concept of ‘Industry 4.0’, the
own sake. To prove the value of the
NOVEMBER 2019
To test and demonstrate the value
“IBM Cloud and Watson AI services gave us access to a wide range of machine learning models with IBM experience built in, right out of the box” — Dr. Bernd Lohe, Director Supply Chain Operational Excellence & Digitization at BASF Nutrition & Health
example, but it proves that integrating AI and smart factory technology can have a genuine impact on productionline efficiency and quality management,” comments Dr. Jongwoon Hwang, Group Leader, KIST Europe. “With IBM’s help, we are showing the industry how decentralized AI can help to deliver greater flexibility, optimize process management and predict the performance of production resources. As we continue to move towards
‘Industry 4.0’ approach, we need
a fourth industrial revolution, these
to show how the factory can solve
capabilities will help pioneering
real-world manufacturing problems,”
manufacturers transform the industry
says Marco Hüster, Business Lead
and create new value for themselves
AI Implementation at KIST Europe.
and their customers.”
In manufacturing, the smallest deviation from the expected weight
AMAZON
can signify a fault in either the
Amazon Web Services (AWS) is
component, product or production
Amazon’s comprehensive cloud
line machinery. As a result, the
platform for businesses. A service
three companies combined existing
of AWS is Machine Learning, where
SmartFactory technology, data
customers have the ability to build,
science solutions and a data set
train and deploy models, apply and
of 1,000 real world measurements with machine learning technology to produce a model that can now predict with 98.1% reliable measurement accuracy. “Weight measurement is a very simple w w w.suppl yc ha i ndi gi ta l. com
57
D I G I TA L I S AT I O N
integrated pre-trained AI applications
of miles completed by empty trucks,
such as recommendations and
which in turn will have a positive impact
forecasting, utilise flexible frameworks
on the environment.
for custom algorithms and broad
“As we work with more shippers and
compute options as well as harness
carriers, we get a better understanding
deep learning technology, analytics
of how much capacity is available and
and security.
how much demand is coming in on specific lanes,” says Casey Olives,
58
CONVOY: EFFICIENCY AND THE ENVIRONMENT
“Being able to have a contextual view
In recent months, Convoy partnered
of the entire network will enable us
with AWS to utilise its machine learning
to drive efficiencies in utilisation
services developing a solution to make
and costs, benefiting both carriers
trucking more efficient and environ-
and shippers.”
Head of Data Science at Convoy.
mentally friendly. 40% of miles per year logged by
TUSIMPLE: AUTONOMOUS TRUCKS
truck drivers are completed with empty
TuSimple, one of the world’s largest
trucks. A part of the problem is the
self-driving truck companies, has
industry infrastructure combined with
partnered with AWS to develop
the use of traditional methods. Using AI Convoy looked to automate the process with the help of AWS. By utilising Amazon SageMaker, Convoy developed a machine learning model that can analyse millions of shipping jobs and trucker availability, resulting in recommended matches that are cost and time efficient. In addition to this, the model will also recommend matches for the journey back, which reduces the number NOVEMBER 2019
“Watson aims to help businesses unlock the value of data in the new ways and remove repetitve tasks from employees to shift the foucs to high-value work” — Dr. Bernd Lohe, Director Supply Chain Operational Excellence & Digitization at BASF Nutrition & Health
autonomous vehicles. Built primarily
With the help of AWS’s massive comput-
using the Apache MXNet deep
ing power, this process takes hours
learning framework on AWS, TuSimple
rather than weeks.
vehicles have built in servers loaded
Currently TuSimple’s trucks are at
with up to 100 different AI modules.
a ‘level 4’ autonomous vehicle classifi-
These modules distinguish the types
cation and have a 5cm accuracy at
of cars on the road and the speed
65 mph with a loaded trailer. By 2020,
of other objects around the truck
Xiaodi Hou, president and CTO of
providing a steady stream of data from
TuSimple, wants to remove human
cameras, LiDAR, and radar equipment
‘fail-safes’ from the vehicles.
to build a live 3D model of the road that
With firms worldwide at the begin-
is constantly updated as the truck
ning of an exciting future in the leveraging
moves. After completing a successful
of new technology in the supply chain
delivery, the results are updated to the
space, machine learning is set to feature
modules on every trucks server after
even more prominently in company’s
completing safety test and simulations
operations over the coming years.
to ensure it will behave as expected. w w w.suppl yc ha i ndi gi ta l. com
59
TECHNOLOGY
60
DRIVING SMARTER DIGITAL SOLUTIONS AT JDA SOFTWARE Eric Thorsen, GVP Technology Presales, Field CTO at JDA Software, discusses the influence of artificial intelligence and machine learning on his company’s operations and the wider supply chain WRITTEN BY
SE AN GA LE A-PACE
NOVEMBER 2019
61
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TECHNOLOGY
62
S
howcasing one of the most
the speed at which the supply chain
renowned AI-driven supply
industry is leveraging new technology,
chain management (SCM)
such as AI and machine learning (ML),
platforms in the industry, JDA Software
has been extremely rapid. “The effect
empowers and enables companies to
that ML and AI is having is amazing.
make smarter decisions in order to
Although they’re both relatively new in
deliver exactly what its customers need.
the industry, their power is growing so
Recognised by Gartner as a leader
fast,” he enthuses. “We’re proud to be
in all four of its supply chain magic
driving innovation and pushing that trend
quadrants, JDA provides a more
forward.” With digital transformation
autonomous supply chain for 4,000
significantly shaking up the supply
of the biggest companies globally.
chain industry in ways never seen before,
Eric Thorsen, GVP Technology Presales,
all companies in the sector are undergo-
Field CTO at JDA Software, believes
ing reviews into how technology can
NOVEMBER 2019
63
be positively embraced and utilised. In the case of JDA, its supply chain platform centres around navigating complicated, end-to-end supply chain challenges by leveraging the power of AI and ML optimisation. “The goal of an autonomous supply chain is to be self-tuning, self-learning and self-managing. What this allows us to do as administrators and participants is to manage by exception,” says Thorsen. “We’re doing that by exploring APIs to allow our application footprint to
“The effect that ML and AI is having is amazing. Although they’re both relatively new in the industry, their power is growing so fast” — Eric Thorsen, GVP Technology Presales, Field CTO at JDA Software
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TECHNOLOGY
“The goal of an autonomous supply chain is to be self-tuning, self-learning and self-managing” 64
— Eric Thorsen, GVP Technology Presales, Field CTO at JDA Software
other applications and systems in a very clean and efficient manner. We’re all very excited about that.” Through its JDA Luminate solution, the company offers its customers a more intelligent way to predict and shape demand, fulfil faster and provide seamless customer experiences. Its Luminate solution embraces the cloud, Internet of Things (IoT) and advanced analytics, as well as harbouring cross-platform integration with AI and ML. This blend allows JDA to deliver full supply chain visibility and prescriptive recommendations that allow for more accurate and profitable
NOVEMBER 2019
CLICK TO WATCH : ‘JDA’S SONORAN SPIRIT’ 65 business decisions. “We decided
With a firm customer-centric
to take a hybrid approach to both
approach, JDA Software ensures
revolution and evolution as we
that all decisions are made with
continued to evolve our current
the customer at the forefront of its
platform and applications using
thoughts. Thorsen paid tribute to Girish
microservices and APIs,” explains
Rishi, JDA’s Chief Executive Officer
Thorsen. “Our customers are re-
(CEO), as the key driver behind JDA’s
questing that they deploy at their
culture of customer-centricity. “After
own pace to accelerate innovation
he joined the company, the first thing
but also ensure we don’t lose that
that Girish did was immediately focus
rich heritage of depth and breadth.
on how our corporate values revolve
Through Luminate, we can make
around customer success,” he recalls.
that a reality. To us, it’s not a replace-
“Our corporate values must be focused
ment but an addition to our very
on innovation, customer success and
deep portfolio.”
collaboration. I truly believe that Girish w w w.suppl yc ha i ndi gi ta l. com
TECHNOLOGY
450+
Patents granted and pending
1985
Year founded
4000+ JDA customers globally
66 has done a wonderful job instilling that culture here at JDA because everyone understands that we’re here because customer demands change and technology is wonderful, so it’s up to us to embody those corporate values.” In a bid to drive operations forward through collaboration with other firms, JDA has developed key strategic partnerships with Microsoft and MuleSoft. Thorsen affirms that these alliances remain a key area of focus for his company. “We can’t do this alone and partnerships are critical to our success,” he explains. “Our most NOVEMBER 2019
visible partnership is our work with Microsoft. Azure is our strategy for cloud and is where our Luminate solution runs. We also chose to partner with MuleSoft due to their best of breed integration platform that allows us to enable APIs and provide enterprise-class integration.” Thorsen has clear ideas of what he anticipates the future to look like at JDA Software over the next few years and beyond. “In order to stay ahead, we have to listen to our customers
“We can’t do this alone and partnerships are critical to our success” — Eric Thorsen, GVP Technology Presales, Field CTO at JDA Software
and pay attention to changing market demands,” he says. “We have our own concept of a crystal ball and what we expect the future to look like. We hold an annual event for everyone at JDA to come together and collaborate on ideas of things to try out. It’s a wonderful venue for teams to get together and build something, mock up a prototype and show the commitment to a certain element of the supply chain or customer demand. It’s a great opportunity to think about what’s possible. We should always be thinking about what we should implement next.”
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S U S TA I N A B I L I T Y
68
NOVEMBER 2019
69
PROVIDING A CUSTOMER-CENTRIC APPROACH AT CGS Ajay Chidrawar, Vice President, Global Product Management & Customer Success, discusses the value of putting customers first amidst digital transformation in the supply chain space WRITTEN BY
SE AN GA LE A-PACE
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S U S TA I N A B I L I T Y
T
he importance of providing a customercentric approach is key to the success of all companies in the supply chain space.
By understanding customer’s needs and responding in kind to the latest industry trends, Computer Generated Solutions (CGS), is well-versed on the ever-changing demands of the sector. With technology becoming a prominent component that needs to be constantly considered and nurtured, CGS is observing the place that artificial intelligence (AI) and machine learning (ML) has in the future of the supply chain. Seeking to support clients’ most important business activities, CGS provides 70
a complete end-to-end supply chain solution that consists of ERP, PLM, planning, manufacturing, logistics, B2B eCommerce, shop floor control, warehousing and collaborative supply chain management. Ajay Chidrawar, Vice President, Global Product Management & Customer Success, discusses the ways his firm helps to equip companies with solutions to enable significant improvement to operations as well as reflecting on technology’s impact in the supply chain space. As a way of introducing yourself, can you start off by telling me a bit about your career and your journey to finding yourself with CGS? I came to CGS in 2016 to lead the product management of our global applications division. Under the NOVEMBER 2019
71
“ OUR COMPANY IS COMMITTED TO PROVIDING OUR CUSTOMERS WITH THE BEST EXPERIENCE, WHICH MEANS CONTINUING TO INNOVATE WITH THEM” — Ajay Chidrawar, Vice President, Global Product Management & Customer Success w w w.suppl yc ha i ndi gi ta l. com
S U S TA I N A B I L I T Y
72
applications umbrella, we have our
How would you describe CGS?
supply chain end-to-end solution,
What gives it an edge over
BlueCherry®. Prior to joining CGS, I spent
competitors?
15 years working with or leading customer
CGS is a global provider of business
success or product management
applications, enterprise learning
divisions of software solutions compa-
and outsourcing services, supporting
nies. Harnessing that experience – sell-
clients’ most fundamental business
ing to, deploying and supporting global
activities. The BlueCherry Suite
customers – at CGS, I lead the product
addresses the needs of the end-
management and customer success
to-end supply chain, from planning
teams of our applications business to
and product development to manufac-
ensure successful and profitable growth.
turing and sales.
NOVEMBER 2019
“ AI AND MACHINE LEARNING ARE VITAL TO THE FUTURE OF THE SUPPLY CHAIN, BUT HUMANS WILL ALWAYS PLAY A CRUCIAL ROLE IN SUPPLY CHAIN MANAGEMENT” — Ajay Chidrawar, Vice President, Global Product Management & Customer Success
73
Having experienced significant
garment district through apparel
growth since your founding in 1984,
software services. Phil Friedman,
CGS now conducts operations
CGS Founder and CEO, was deter-
across a range of territories such
mined from early on to create a diversi-
as North America, Latin America,
fied company where CGS would not
Europe, Middle East and Asia.
be limited to one service, or one product,
How challenging was the process
but be able to provide many different
of expanding?
services under one umbrella. Over
CGS opened its doors in April 1984
the last 35 years, the company added
as an IT consulting business dedicated
learning and outsourcing (IT and
to the apparel industry at the heart of
business process outsourcing) to
New York City, primarily serving the city’s
its offerings. w w w.suppl yc ha i ndi gi ta l. com
S U S TA I N A B I L I T Y
CLICK TO WATCH : ‘CGS | DRIVING FUNDAMENTALS’
74
In your own words, can you talk
In what ways do you provide
me through the platforms and
companies with solutions that
services that CGS provides?
helps them improve and synchronize
CGS has three business divisions:
their processes throughout the
business applications, enterprise
supply chain?
learning and outsourcing services.
CGS provides a number of different
I work with the applications division,
solutions to our customers to help
which provides a complete end-
them improve their supply chain
to-end supply chain solution,
processes. Our BlueCherry Enterprise
encompassing ERP, PLM, planning,
Solution offers end-to-end solutions
manufacturing, logistics, B2B
(including ERP, PLM and EDI system
eCommerce, shop floor control,
capabilities) for wholesale brands
warehousing and collaborative
and apparel manufacturers.
supply chain management. NOVEMBER 2019
When we say end-to-end solutions,
it means that we are truly tackling
is committed to providing our custom-
everything from planning to execution
ers with the best experience, which
to analytics. In addition to the solutions
means continuing to innovate with
we currently offer, we are also using
them. Big Data is the lifeblood of many
and integrating new technologies such
of our solutions. For manufacturers,
as robotic process automation (RPA)
the ability to manage data and analyse
and augmented reality (AR) to continu-
it in real-time is vital to stay competitive.
ously innovate and improve our customers’ processes.
We are also constantly looking for ways to simplify existing processes. RPA solutions can help alleviate
With digital transformation affecting
manual and repetitive tasks and up-level
all industries worldwide, in what
the employee’s role. Across the apparel
ways is new technology such as
industry, we are also seeing more
Big Data and AI utilised at CGS?
manufacturers adopting AR as a way
CGS is exploring a variety of next-gen
to help designers and manufacturers
technology initiatives. Our company
collaborate in real-time.
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S U S TA I N A B I L I T Y
76
Technology is often considered
With a high value placed on enabling
a vital tool industry-wide, however,
companies to make better decisions,
how do you avoid potential problems
how important is keeping up with
arising in AI and machine learning?
the latest trends to ensure you are
AI and machine learning are vital to the
delivering exactly what your
future of the supply chain, but humans
customers need?
will always play a crucial role in supply
At CGS, we take a customer-first
chain management. We view technol-
approach to all of our digital transfor-
ogy as a tool to empower humans,
mation initiatives. We partner with our
allowing them to take on more strate-
customers, examine any issues that
gic management roles. Take Big Data
may be causing headaches and identify
for example, the insights we are able
the appropriate solution, including
to garner from our solutions are helping
technology, to address those needs.
humans make more timely, strategic and impactful decisions. With the amount
How do you ensure you always
of data available today, it would be
deliver on customer-centricity?
impossible for humans to manually sort
The key to delivering on customer-
through all that information. The same
centricity is focusing on the customer
goes for AI and machine learning.
needs and tailoring your product
These technologies are allowing
plans to meet these needs. For
humans to do their jobs better, rather
example, our customers recently
than completely disrupting industries.
expressed the need for better measurement technology, so we added these capabilities to our product roadmap. We regularly meet with and survey our customers about their ‘wish-list technology initiatives’ and pain points to get a better understanding of their business needs.
NOVEMBER 2019
“ AT CGS, WE TAKE A CUSTOMER-FIRST APPROACH TO ALL OF OUR DIGITAL TRANSFORMATION INITIATIVES”
Without a crystal ball, what do you anticipate the future of the supply chain to look like? One major trend we are seeing throughout the industry is the increased use of 3D software. Historically, when designers would send through ideas, there
— Ajay Chidrawar, Vice President, Global Product Management & Customer Success
was a lot of back and forth as to product
Are there any companies that you
the market more quickly.
design. 3D solutions allow for real-time collaboration, speeding up the design process and enabling products to enter
partner with that help drive operations? How is this relationship
Can you talk me through any plans
mutually beneficial and important?
for the future?
A good example is our partnership with
In May 2019, our organisation acquired
Juki, the largest supplier of industrial
Visual Next, a provider of end-to-end
sewing machines. BlueCherry Shop
software to apparel, footwear, uniform
Floor Control is a real-time application
and fashion accessory companies.
that automates the collection and re-
The integration of Visual Next’s solutions
porting of production activities with smart
is our immediate focus, incorporating
devices on the factory floor. Integrating
the latest technology to create a
with Juki, we offer “smart solutions” via
unified next generation offering that
sewing terminals, allowing manufactur-
supports the rapidly evolving needs
ers to track and collect data throughout
and accelerated growth of apparel,
the production process. This integration
fashion and lifestyle brands.
is allowing factory floor managers to be more proactive, addressing issues as they arise to improve overall efficiency and productivity. w w w.suppl yc ha i ndi gi ta l. com
77
T O P 10
78
NOVEMBER 2019
Luxury Car Supply Chains With supply chain operations becoming increasingly complex worldwide, all industries are in a state of transformation, including the automotive sector. The introduction of new technology has changed the parameters of what a luxury car can offer and has propelled leading automotive manufacturers to seek innovative ways to differentiate their vehicles. According to EY’s Confederation of Indian Industry report, “automakers must balance one foot in today and one foot in the future to maintain a leadership position in the new mobility landscape.” As a result, Supply Chain Digital looks at the most luxurious cars in the world and observes what makes their manufacturers and their supply chains different. WRITTEN BY
SEAN GALEA-PACE w w w.suppl yc ha i ndi gi ta l. com
79
T O P 10
80
10
Jaguar XJ
[ HQ: COVENTRY, ENGLAND ]
The Jaguar XJ is a different proposition to previous models despite still being a saloon. The rear-wheel drive XJ is one of the lightest cars in its class and is instantly recognisable by its black-clad C-pillars, designed to blend seamlessly with the rear screen, giving the façade of one, wrap-around window. There are automatic LED headlights and revised daylight running lights that are standardised on all models. The vehicle’s wheelbase is extended by 125mm over the standard-length car. With previous versions lacking space, the latest XJ doesn’t have that same issue as it possesses significant rear legroom and generous headroom. The vehicle can be purchased for around £60,550.
NOVEMBER 2019
1935
YEAR FOUNDED
$32bn APPROXIMATE REVENUE
43,224 NUMBER OF EMPLOYEES
09
81
BMW 7 Series [ HQ: MUNICH, GERMANY ]
The German automaker is renowned for producing highly regarded cars with the BMW 7 Series no exception. Considered a well-rounded car to drive, its luxurious Nappa leather interior helps it look the part too. The brand’s iconic kidney grille is 50% larger than previous models and sits perfectly with the elevated bonnet and redesigned front and rear bumpers. The vehicle offers BMW Adaptive LED Lights as standard, new sculptured 3D rear lights as well as 20” M light-alloy wheels with new eye-catching multi-spoke design. BMW is headquartered in Munich, Germany,
1916
YEAR FOUNDED
$107.6bn APPROXIMATE REVENUE
134,682 NUMBER OF EMPLOYEES
and the car retails at a price of around £68,130.
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Destination: Cloud
Added value through innovation The cloud is the future! We’re opening up entirely new opportunities for our clients by migrating applications to the cloud and transforming them there, with the option of cloud-native development. As one of the world’s largest independent provider of IT and business services, we’ve also racked up many years of experience in cloud architecture, security, governance, and operations. Independent experts have confirmed our industry-leading expertise: the ISG Provider Lens™ has awarded us “leader” status in the “Public Cloud Transformation” and “IaaS – Enterprise Cloud” categories in 2019. Let us help you make your cloud enterprise-ready, too!
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Audi A8 [ HQ: INGOLSTADT, GERMANY ] The four-door luxury saloon with Audi Virtual Cockpit, Audi Sound System, rear-view camera and LED headlights with high beam assist is available for around
1909
YEAR FOUNDED
$65.1bn
£70,125. With Audi already boasting an extensive portfolio of vehicles, the Audi A8 offers a different
APPROXIMATE REVENUE
experience of the brand. The vehicle possesses state-of-the-art technology like “Traffic Jam Pilot”,
91,674
which offers conditional level three autonomy and takes complete control of the steering, brakes and
NUMBER OF EMPLOYEES
accelerator on motorways and dual-carriageways. The vehicle provides rear-seat passengers with a phone-sized screen in the armrest with the rear cabin considered as comfortable as the front. Widely considered an impressive limo, the Audi A8 comes with fuel-efficient engines, a superb minimalist interior design and extensive kit.
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T O P 10
Porsche Panamera
[ HQ: STUTTGART, GERMANY ] The German automotive manufacturing giant, Porsche, has a total production output of approximately 246,375 vehicles (2017). The Panamera is
YEAR FOUNDED
memorable to sit in, with a large, form-fitting cabin
$23.2bn
that resembles the Porsche Cayenne. However, what sets the vehicle apart is its technology. Porsche has embraced digitalisation via two 7.0in of highresolution displays in the instrument cluster, the left-hand side delivering “Speed and Assist”, while the right provides “Car and Info”. The Panamera 84
1931
has a main touchscreen of the PCM infotainment system that has a 12.3 display that extends the entire width of the centre console, transforming the vehicle to become one of the leading cars with state-of-the-art tech. The vehicle retails at a price of around £72,890. Despite Porsche’s headquarters and main factory being located in Stuttgart, the firm’s Cayenne and Panamera models are manufactured in Leipzig, Germany.
NOVEMBER 2019
APPROXIMATE REVENUE
30,500 NUMBER OF EMPLOYEES
Mercedes-Benz S-Class
85
[ HQ: STUTTGART, GERMANY ]
Providing all of the ambience, workmanship and materials of a luxury car, the S-Class Saloon is a highly sought-after vehicle. Its Saloon model offers multibeam LED lighting, a panoramic sliding sunroof with magic sky control as well as ambient lightening to help set the mood. Leveraging
1926
YEAR FOUNDED
$184.9bn APPROXIMATE REVENUE
the latest semi-autonomous driving technology such as Remote Parking Assist, Active Lane Change Assist and Active Speed Limit Assist, the S-Class is certainly eating at the table among other major players in the luxury car market. Retailing at a price of ÂŁ73,740, the car can go from
145,400 NUMBER OF EMPLOYEES
0-62mph in six seconds. It holds its assembly operations in Germany, India, Thailand, Malaysia and Indonesia.
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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.
“We need partners like Nagarro who help innovatively and technologically to take place in the digital transformation.” Dr. Roland Schütz, CIO of the Lufthansa Group, talks about the secret sauce of this successful and trusted partnership.
LEARN MORE
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nagarro.com
Range Rover
87
[ HQ: COVENTRY, ENGLAND ]
1970
As one of Land Rover’s flagship vehicles, the Range Rover is a luxury SUV that encompasses the latest
YEAR FOUNDED
technology such as pixel-laser LED headlights and
$32.6bn
adaptive cruise control. Owned by Jaguar, The Land Rover Range Rover costs around £75,940 and is con-
APPROXIMATE REVENUE
sidered the ideal vehicle for off-road driving due to the higher seating position of the driver compared to other vehicles. The car possesses an executive class seating option for rear-seat passengers that provides 40° degrees of recline and a powered rear centre console.
43,224 NUMBER OF EMPLOYEES
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T O P 10
88
04
Bentley Continental GT [ HQ: CREWE, WALES ]
Offering a brand-new 6.0 litre, twin-turbocharged W12 engine, the Continental GT is a popular vehicle among luxury car fans. The car features clean, superformed lines and a wide, low body which emphasizes a sense of speed and presence. Having been created to provide effortless, exhilarating driving, Bentley’s new vehicle can go from 0-60mph within 3.6 seconds. Recognised as the most advanced Bentley ever, the GT features innovations throughout the drivetrain and holds its assembly line in Crewe in the United Kingdom. Bentley’s Continental GT retails for around £159,900.
NOVEMBER 2019
1919
YEAR FOUNDED
$1.6bn APPROXIMATE REVENUE
3,600
NUMBER OF EMPLOYEES
Aston Martin Vantage [ HQ: GAYDON, ENGLAND ]
Truly a high-end car manufacturer, Aston Martin’s Vantage model is one of Britain’s most highly-thought of vehicles. Known for its appearances in popular spy-film franchise James Bond, the Aston Martin has a high powered 4.0 litre twin-turbocharged V8 that produces that recognisable Aston Martin roar. In 2018, Aston Martin released a press release announcing revenues of £876mn ($1.1bn) which demonstrated a profit of £87mn - £250mn more than the £163mn loss sustained in 2016. The sales were the
1913
YEAR FOUNDED
$1.2bn APPROXIMATE REVENUE
3,400+ NUMBER OF EMPLOYEES
highest that the automotive giants achieved since 2008, with the company expanding to producing more than 5,000 cars from 3,600 annually. With its assembly in Gaydon, Warwickshire, it really is considered a British great.
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T O P 10
Ferrari GTC4Lusso [ HQ: MARANELLO, ITALY ]
Offering its drivers a completely different experience, Ferrari’s flagship vehicle is “powerful, yet sophisticated, sporty yet luxurious.” The vehicle’s interior is sporty 90
luxury with a beautifully balanced Dual Cockpit architecture which significantly enhances the driving experience. The GTC4Lusso offers a dash design that incorporates a 10-inch integrated central screen as well as an alternative display for the passenger, in addition to the ability to control music, tweak the sat nav and make phone calls from the passenger side. At a cost of over £200,000, it’s one for those prepared to dig deep for a touch of luxury, but then, the Ferrari GTC4 Lusso sets the bar very high.
NOVEMBER 2019
1940
YEAR FOUNDED
$3.7bn APPROXIMATE REVENUE
3,336
NUMBER OF EMPLOYEES
91
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T O P 10
Rolls-Royce Phantom [ HQ: DERBY, ENGLAND ]
The definition of luxury, the Rolls-Royce Phantom is high-end at a price of £363,600. However, for that sum, Phantom boasts unrivalled space and a truly unique design which makes it one 92
of the most luxurious cars around. RollsRoyce remarks on its website: “Phantom is the original, a unique work of art. Your Phantom is one of one.” With a new spaceframe structure 30% more rigid than its previous model and a 2,560kg kerbweight, Phantom can handle all types of roads with ease through the assistance of fully electric power steering and is considered the pinnacle of luxury engineering. The England-based manufacturer holds its assembly line at the Goodwood Home of Rolls-Royce Motor Cars in Chichester, West Sussex.
NOVEMBER 2019
93
1906
YEAR FOUNDED
$19.7bn APPROXIMATE REVENUE
50,000 NUMBER OF EMPLOYEES
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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
12–14 NOV 2019
Procurement Week Offering four distinct events in one loca-
Madrid Logistics and Distribution
tion, Procurement Week allows
[ MADRID, SPAIN ]
attendees to choose from attending
The event provides visitors with the
GovProcure, HealthProcure, Indirect
latest commercially available products
Procurement Leaders Forum and Con-
and services in the logistics field.
struction Mining and Energy
Showcasing the main innovations, latest
Procurement, ensuring the second
developments and trends, as well as the
annual event offers something for every-
ideas that are transforming the industry,
one. The conference allows attendees
the Spanish event provides gathered
to pick and choose the most relevant
professionals a combination of technol-
event in order to gain the latest insights
ogy, top suppliers and educational
from CPOs that are leading the way. The
content to enjoy. With 11,500 people set
event also offers the opportunity to
to attend along with 400 exhibitors, the
engage with potential suppliers and col-
popular annual event provides a plat-
laborate, network and share best
form to show potential buyers how their
practices with fellow industry experts.
business needs could be fulfilled.
[ SYDNEY, AUSTRALIA ]
94
13–14 NOV 2019
NOVEMBER 2019
18–22 NOV 2019
Australian Airports Association [ GOLD COAST, AUSTRALIA ] With over 700 people in attendance, more than 85 exhibition booths and no less than 70 speakers set across
19–20 NOV 2019
Supply Chain Innovation Summit 2019 [ CLARKE QUAY, SINGAPORE ]
three networking functions, the con-
Set to be one of the supply chain
ference provides a strong programme
industry’s most interactive networking
that includes a mix of Australian and
forums for companies across all areas
international presenters. Considered
of the market, the event will provide
the largest airport event in the Asia-
a platform to spark debate and
Pacific region, the event provides the
encourage the sharing of practical
latest developments and innovations
ideas. There is expected to be over
in the aviation industry and is expected
350 high-level attending professionals,
to be one of the region’s most hotly-
with exhibiting companies showcasing
anticipated conferences.
the latest innovations.
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95
EVENTS & A S S O C I AT I O N S
26–27 NOV 2019
96
27–28 NOV 2019
Procurement Leaders Data, Intelligence and Technology Forum 2019
Asia Pacific Procurement Congress 2019
[ LONDON, UNITED KINGDOM ]
With more than 200 of Asia’s most
The Data, Intelligence and Technology
senior procurement executives in
Forum is a two-day event focused on
attendance, this conference will pro-
improving the end-to-end digital strat-
vide talks on overcoming the latest
egy for procurement professionals the
challenges in the industry. The Con-
world over. Attendees will break down
gress is set to see over 100 unique
the challenge of talent acquisition and
companies represented, 24 countries
retention, as well as the changing skill-
in attendance, more than 40 expert
sets required to be a procurement
speakers and over nine hours of net-
professional both today and in the
working opportunities with the 50+
future. With technology continuing to
CPOs and Regional Heads at the
redefine the procurement landscape,
event. The event’s speakers will
industry professionals will share exam-
include; Dan Bartel, CPO of Schneider
ples of best practice and how to
Electric; Jolly Yeung, Head of Greater
leverage data and technology to
China Procurement at Microsoft; and
streamline and accelerate the digital
Brady Walz, VP of Procurement for
transformation of procurement.
Asia Pacific at Ecolab.
NOVEMBER 2019
[ PAN PACIFIC, SINGAPORE ]
9–10 DEC 2019
27 NOV 2019
SCLG Summit [ DUBAI, UAE ]
International Conference on Supply Chain Planning in Uncertain Environments [ LONDON, UNITED KINGDOM ] The conference is a federated organisation that aims to provide a
The twelfth global supply chain and
range of diverse scholarly events for
logistics summit is expected to be one
presentation within the conference
of the Middle East’s biggest and most
programme. The event will bring leading
informative conferencing events in the
academic scientists, researchers and
supply chain and logistics space. With
research scholars together to exchange
a key focus on the latest insights and
their experiences and enable research
trends of global trade, economics,
results on a range of different aspects
logistics, manufacturing, transportation
of Supply Chain Planning in Uncertain
and distribution, discussions are also
Environments. The meetup will enable
set to uncover the latest innovations
a platform for premier interdisciplinary
to sustainability, digital transformation
to be created in order to discuss the
and the use of artificial intelligence
most recent innovations, trends and
in the supply chain space.
concerns in the supply chain field.
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98
Covéa: Working better. Together. WRITTEN BY
AMBER DONOVAN-STEVENS PRODUCED BY
CHARLOTTE CLARKE
NOVEMBER 2019
99
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COVÉA INSURANCE GROUP
Sylvie Noel, Chief Procurement Officer, Covéa Insurance Group, details the company’s drive for transparency amidst its digital transformation in order to truly professionalise procurement 100
C
ovéa Insurance has built an excellent reputation over the last 20 years for its customer service and products. The
insurance company was formed by the merger of three brands: Garantie Mutuelle des Fonctionnaires (GMF), Mutuelle d’assurance des artisans de France (MAAF) and Mutuelle du Mans Assurance (MMA). Today, the company holds a number of awards, including Personal Lines Claims Excellence of the Year 2019 (Insurance Times Claims Excellence Awards); and Best Use of Customer Service Technology 2019 (Modern Insurance Customer Service Excellence Awards) among others.
NOVEMBER 2019
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COVÉA GROUP
As the company has grown, so has the need for a more seamless procurement process. “I initially came to the company to assist with the professionalisation of procurement at Covéa,” says Sylvie Noel, Chief Procurement Officer. “I created a proposal on how to improve procurement, called EMA: ensemble pour mieux acheter, which means ‘together to work better.’” Noel has been with Covéa for almost nine years, starting out as a consultant, before taking the role of CPO, which was created for her in July 2012.
102
“In 2012 Covéa had over 12 members of staff specialised in procurement, working across different levels within our three brands and in our French subsidiary on procurement, internal procurement and IT.” Noel’s
“The unification of procurement through this platform enables us to speak with one voice” — Sylvie Noel, Chief Procurement Officer, Covéa Group NOVEMBER 2019
CLICK TO WATCH : ‘COVÉA EN BREF’ 103 responsibility was to streamline this
on segmentation, building common
into a connected, standardised net-
language and legal. “Having worked
work with added value. She achieved
across different parts of the company,
this by digitising the entire process.
we realised that we could make the process more sustainable, and so we
DIGITISING PROCUREMENT
took to the market to search for an
“The process is now really slick. The
appropriate tool that would help us
digitalisation of procurement ena-
achieve our goals of transparency and
bles easy work cover in the event
added value,” recalls Noel. She then
of sickness, but also the platform is
began conversing with over 60 stake-
wholly compliant. It provides a new
holders about their views and fears
perspective to procurement.” Noel
regarding procurement, and began to
and her team created the procure-
build the platform from there.
ment function from scratch. Initially, she had worked across the process,
The platform was initially rolled out in 2013 to internal stakeholders and w w w.suppl yc ha i ndi gi ta l. com
When optimized opera employee satisfaction s Experience the Capgemini Effect www.Capgemini.com
ations simplify work, soars Discover now
COVÉA GROUP
“We were proactive with our stakeholders and responded to their suggestions, which were present in the version of the platform we later rolled out” — Sylvie Noel, Chief Procurement Officer, Covéa Group
106
NOVEMBER 2019
procurement before rollout to wider users. According to Noel, there were naturally some challenges during the 2013 rollout, which have since been overcome following the platform expansion. “We started with the procurement request, the workflow associated and a first wave of model of contracts. What we’re doing now is very different: we start with the budgets imported to the platform; any procurement request needs to have a budget line. Then, it either goes to the creation of a tender, or into catalogs.”
E XE CU T I VE PRO FI LE
Sylvie Noel, Chief Procurement Officer Sylvie Noel is the Chief Procurement Officer at Covéa and has been with the insurance company for nine years. She started with the company in 2010 as a Principal Consultant, working across process and legal, before moving to becoming Chief Procurement Officer in 2012. In this role she is in charge of heading up the program EMA (Ensemble pour Mieux Acheter) which is an initiative designed to professionalise procurement.
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107
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109
Noel goes on to explain that if a tender is chosen, a group comprising all the required individuals — including procurement and legal — forms in order to process the tender’s dispatch to suppliers via the platform. “All the exchanges with parties occur solely within the platform, so we all have a very good view of the activity and it’s impossible now for anyone to be out of the loop,” she says. “We were proactive with our stakeholders and responded
“The process is now really slick. The digitisation of procurement enables easy work cover in the event of sickness, but also the platform is wholly compliant. It also provides a new perspective to procurement” — Sylvie Noel, Chief Procurement Officer, Covéa Group
to their suggestions, which were w w w.suppl yc ha i ndi gi ta l. com
COVEA deploys SAP S/4 HANA as part of its financial transformation plan. To achieve its objective of aligning financial processes for all its subsidiaries, the COVEA group relies on SAP S/4 HANA.
COVEA is composed of the three mutuals MAAF, MMA and GMF, leaders in property insurance and responsibility in France. The key figures for 2017 are: - 26,000 employees: 21,000 in France and 5,000 abroad - Nearly 2,700 points of sale - In France, 11.5 million members and customers - Premiums earned (France & International): €16.3 billion - Combined net income (group share): €818m - Equity: €14.7 billion The financial function at the heart of the strategic plan COVEA’s strategy is to mutualize the central and backoffice functions while keeping the customer relationship with their different markets to the brands. In this context, the COMEX of the COVEA group decided, in July 2018, to align the financial processes of the various subsidiaries and to respond to the obsolescence of the existing accounting tools. In September 2018, COVEA launched a consultation for its “Convergence Finance” program. The project’s roadmap aims to achieve the following objectives. First objective is to improve the efficiency of business and operational processes between its three brands. This requires the definition of a common language for the entire group, as well as the harmonization of financial processes and reporting, the reduction of low valueadded activities and the automation of repetitive tasks. The second objective is to simplify and rationalize the information system in order to reduce the operational risk of multiple systems and their obsolescence. In addition to optimizing the standardization of tools, COVEA also needs to define a norm of integration, build a transactional data source for the entire group in order to facilitate future transformations. The construction of this new platform will ensure that changes in regulatory requirements are met more quickly and at a lower cost. Last but not least, to make economic management more reliable and faster. The transformations generated by technology are leading to profound changes in insurance. The ability to manage the Group more consistently will bring efficiency, responsiveness and strategic agility to COVEA.
SAP wins for its state-of-the-art financial solutions To choose the solution and the service provider, the bidding is organized in two phases: choice of the tool, and choice of the integrator. The selection process has been conducted by the COVEA group between September 2018 and March 2019. After a pre-selection of several solutions, COVEA opted for SAP. On the one hand, the publisher already had references in insurance; and on the other hand, the technologies on which the SAP solution is based (“in memory” technology) opens up the world of possibilities in terms of reporting and data exploitation. The core of the selected solution will be based on the SAP HANA database combined with the S/4 HANA ERP (Finance modules). This will be complemented, for budget management, by SAP Analytics Cloud Planning. Finally, SAP Profitabilty and Performance Management will manage the cost management. The choice of deploying on the private Cloud of SAP has been made to benefit from more flexible technical platforms, and from the latest innovations of the software publisher more quickly. A progressive deployment The project was therefore launched in early July 2019. The design phase of the target model is expected to be completed by mid-2020. In parallel, a prototyping environment will allow to share with users to make the new processes and tool more concrete. These workshops promote a customization closer to user needs, as well as the sharing of a common vocabulary for all brands. The development and configuration phase will be carried out by Accenture. A first integration and testing phase has been planned for 2021, and the first wave of operational deployment of the project is scheduled for January 1, 2022. Ultimately, 500 users will be involved in this project.
Learn More
CLICK TO WATCH : ‘COVÉA CÉLÈBRE LES 200 ANS D’ASSURANCES MUTUELLES DE FRANCE’ 111 present in the version of the platform
eliminated through the creation of the
we later rolled out.”
platform. It is also important to lead by
From a change management perspective, this digitisation has been largely welcomed, as it has created
example with confidence and reassurance,” she says. In addition to this, big data is an
clarity and ease of access to vital
integral component to the quality that
information at Covéa. But this may
Covéa strives for: “We are also still try-
not always be the case and Noel
ing to ensure that all who are involved
asserts the need to listen to employee
with the procurement process are
concerns and to work through them.
aware of the importance of big data.
“This is why we built the program in
We are constantly evaluating the qual-
response to our stakeholders: not only
ity of the overall process and upscaling
to show them that this is a serious pro-
it often to meet expectations.” Noel
gression, but to ensure that any of their
shares that the company that
fears regarding the industry could be
assisted in the implementation of this w w w.suppl yc ha i ndi gi ta l. com
113
1999
Year founded
transformation was Evalua, which has been “the core skeleton to the process at Covéa,” and assisted in the streamlining of the function. The digitisation
$1bn
of procurement has had many benefits, “the unification of procurement through
Approximate revenue
this platform enables us to speak with
2,500
and improved relations with our stake-
Approximate number of employees
one voice,” Noel says, adding that “this allows for a greater market presence holders and vendors.” Not only has the process added value and been well received by w w w.suppl yc ha i ndi gi ta l. com
COVÉA GROUP
Bring your Change Management to the next level to make your transformation a success! InsideBoard is the first AI platform for change management dedicated to encourage user adoption, ongoing team performance and transformation success.
insideboard.com
115 employees and stakeholders alike,
will continue to be aligned with the
but it has had excellent benefits in
business strategy of the group.”
terms of sustainability: “In terms of our
She is confident that both customers
vision for sustainability, we are almost
and employees will continue to see
paperless and it’s compliant with reg-
a growing level of transparency that
ulation and auditable. Sustainability
will bring the business and stakehold-
isn’t underlined as much as it should
ers closer, while consolidating the
be,” Noel asserts.
valuable role that procurement plays within the company.
A TRANSPARENT FUTURE “As Covéa moves forward, customers will be at the center of all we do, and this is evident in our huge project transformation with added value and productivity,” she adds. “Procurement w w w.suppl yc ha i ndi gi ta l. com
116
supply chain strategies in the energy sector WRITTEN BY
SEAN GALEA-PACE PRODUCED BY
CRAIG KILLINGBACK
NOVEMBER 2019
117
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REC SOLAR
Josie Broome, Director of Procurement and Operational Excellence, discusses the success of her projects from an operational excellence standpoint
A
s a renowned leader in enabling complete commercial, public sector and utility-scale solar solutions, REC Solar has been in
operation for over 20 years and provided more 118
than 300MW of successful projects. Following its acquisition by Duke Energy in 2017, Josie Broome, Director of Procurement and Operational Excellence, believes there are a number of key factors that differentiate REC Solar from its rivals. “Duke Energy has brought stability and financial backing. There are several solar companies that don’t exist anymore, but Duke has been around for more than 100 years and I believe customers really appreciate the stability that Duke provides,” explains Broome. “The type of projects that we go after, in combination with the customers that we look for and how we implement those projects and source materials is very strategic and focused. We’re certainly not new to the game.”
NOVEMBER 2019
119
1997
Year founded
150
Approximate number of employees
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The Right Partner for Your Project We focus on the North American Solar Industry with an emphasis on general contractors, subcontractors and facilities managers working on energy, commercial, industrial, residential and institutional project development. Our solar energy staffing experts understand your demand for proven industrial experience in every tradesperson we provide you, which is why we have been recruiting and hiring only the best people, matching them to your specific project needs. And if the tradespeople aren’t already located near your site, we’ll find local solutions or deploy travelers, no matter where you need them.
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512-819-6200
CLICK TO WATCH : ‘REC SOLAR CUSTOMER STORIES – CAL POLY SAN LUIS OBISPO’ 121 Having come from an oil-oriented
observe how hard the work actually
background, Broome’s family owns
was and how difficult it is to earn money
a number of oil reserves, with part
that way. I believe that because of these
of its portfolio situated in the largest
early experiences, I learned that being
oil reserves in Utah within the Uintah
out in the elements, physical labor
Basin. “Not only did I grow up with
through the seasons, and being away
my dad and all of his siblings as they
from family is a tough job. The appre-
made a living in the oil and gas indus-
ciation I have for the men and women
try, our family history is also rooted for
out there building America has shaped
generations back to one of the largest
my view, work ethic, and approach to
oil reserves in the US,” she explains.
projects while always keeping the field
“I watched my dad and his brothers
in the forefront of my mind.”
work on mainline pipelines, and when
Having overseen dozens of projects
I was 20, I decided to work with them.
during her time at REC Solar, Broome
From this experience, I was able to
is specifically proud of a recent project w w w.suppl yc ha i ndi gi ta l. com
REC SOLAR
122
NOVEMBER 2019
in Colorado which is the largest rooftop in the state. The project saw the installation of 17,000 panels spanning 19 acres and boasting a capacity of 6MW. “It was a real team effort. We worked together to secure the products that were used, found ways to reduce costs and achieve higher productivity in the field,” she explains. “Our typical approach is defined prior to the beginning of the project working directly with the field on setting up workstations, collaborating with them
“ Duke has been around for more than 100 years and I believe customers really appreciate the stability that Duke provides” — Josie Broome, Director of Procurement & Operational Excellence, REC Solar
on their instructions and providing guidance on the sequence of work. Every project is unique, it’s up to us to look for ways to maximize efficiency in material handling, loading the roof, and how the crews move throughout the site. We track all of that.” Broome has worked on a diverse and broad range of projects and her role is to influence them from a supply chain and operational excellence perspective. “In my previous roles at REC, I managed projects and project teams directly; from schools to hotels, cash to financed, on carports, roof, and the ground. The variety, volumes and regions are vast, however there are still opportunities to learn and improve.” w w w.suppl yc ha i ndi gi ta l. com
123
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With technology becoming influ-
it into a sequel database, and mix it
ential to the way businesses conduct
into Microsoft Power BI to display,
operations worldwide, REC Solar
dig and analyze,” says Broome. “On
has implemented platforms such as
the supply chain side, we create our
Procore, the world’s leading construc-
commodity position frequently and
tion management software, as well
look at supply and demand by utilising
as drawing on the help of Salesforce
Salesforce for pipeline and Procore
for its CRM and JDE Oracle for its
for active projects. From the opera-
financials. “We leverage all the data
tional excellence perspective, we’re
from those platforms and combine
using the field data that’s coming
E XE CU T I VE PRO FI LE
Josie Broome As part of her role as Director of Procurement & Operational Excellence, Broome provides dual strategic direction for the innovation, development and implementation of business applications, intelligence, processes, and other business initiatives to support culture growth around supply chain and continuous improvement. Having begun her career in the architecture, planning and engineering industry in 2003 as a Planner at RRM Design Group, she managed various development projects that ranged in complexity and size. In 2010, Broome joined REC Solar’s project management team and went on to lead the company’s mid-market and Hawaii Business Units. Moving into the procurement space in 2017, it has allowed Broome to leverage her considerable experience leading teams through technology.
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REC SOLAR
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NOVEMBER 2019
“ From the operational excellence perspective, we’re using the field data that’s coming from Procore to measure productivity and how and where we need to help the teams improve in the field” — Josie Broome, Director of Procurement & Operational Excellence, REC Solar from Procore to measure productivity and how and where we need to help the teams improve in the field.” However, Broome understands that new technology such as Big Data should be treated with caution to circumvent the risk of overreliance. “Too much data can be really overwhelming, and you have to dig deep to figure out what the data is trying to tell you,” she warns. “For us, it’s about being very specific on what data we’re looking for and what we want the field to collect w w w.suppl yc ha i ndi gi ta l. com
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129 for productivity. We’re very specific
buys together,” she explains. “The
on what we want to achieve with cost
other strategy is the process of buying
reduction, and then we leverage that
different types of equipment and going
data to drive our supply chain forward.”
direct, they’re in the large-scale utility
With the industry constantly
space where we are a distributed
changing, Broome believes that by
generation. We have high transac-
working closely with Duke Energy’s
tional volume and communicate with
supply chain team, REC Solar can
our vendors weekly — it’s important
easily adapt to the sector’s changing
everyone’s on the same page.”
demands and has subsequently
Broome points to the importance
established two firm supply chain
of communication with other supply
strategies. “When there are any
chain professionals in the space, and
changes, both teams come together
key partners as a crucial component
to make decisions on the best ways to
for success. “We recently attended
leverage our volumes and make bulk
the annual Solar Power International w w w.suppl yc ha i ndi gi ta l. com
REC SOLAR
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tradeshow in Utah. I believe that talking to other like-minded individuals in the industry is so important because it allows you to get a good idea of what the latest trends in the sector are as well as forming new connections and building lasting partnerships. It’s important to acknowledge our partners share our overall goals and help to ensure that we keep costs low for the customer, while maintaining quality on time.� Pointing to her upbringing, Broome dwells on how her early life and career NOVEMBER 2019
“ I’m inspired by innovation and visionaries, and I now understand that I need to be the leader that I want to see” — Josie Broome, Director of Procurement & Operational Excellence, REC Solar
131
has shaped the influence she wants
is going to be based on how fast we
to have on others in the field. “I’m
can continue to adapt to the market
inspired by innovation and visionaries,
changes,” she notes. “Old ways of
and I now understand that I need to be
thinking, doing and being are not
the leader that I want to see. I’ve been
going to survive. We must stay ahead,
fortunate enough to have had some
act quickly and remain agile. I believe
pretty incredible leadership mentors
that being, nimble, performing quality
on my journey, and overcoming the
work and continuing to drive improve-
challenge of leadership is done by
ments will ensure we remain a leader
ensuring I’m the leader that I would
in the space.”
like and need.” With the future in mind, Broome has a clear vision of what she hopes her firm can achieve over the next few years. “Our future success w w w.suppl yc ha i ndi gi ta l. com
Dubai World Trade Centre
132
CHANGING THE PERCEPTION OF PROCUREMENT WRITTEN BY
AMBER DONOVAN-STEVENS PRODUCED BY
ALEX BARRON NOVEMBER 2019
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DUBAI WORLD TRADE CENTRE
Jason Tranter, Contracts Director, Dubai World Trade Centre, shares the details of the digital transformation of its contracts and procurement department in order to create a truly transparent, productive function
T
he Dubai World Trade Centre (DWTC) has been a landmark since the construction of the iconic Sheikh Rashid Tower (SRT) in
1979. Not only was it one of the first skyscrapers in Dubai, but it also held the title of the tallest in the 134
Middle East until 1999. Following its vision to make Dubai the world’s leading destination for all major exhibitions and events, DWTC has seen significant expansion to over 121,000 square meters of event space. Operating such a substantial multi-purpose facility is a ceaseless and demanding task, requiring a dedicated and experienced team to work constantly. To clarify the way DWTC functions, Jason Tranter, Director of Contracts, shares the role that Procurement and Contracts (P&C) plays in ensuring the facility is always efficient and run an innovative manner. Tranter’s career began in construction, where he became a chartered surveyor working in the UK and the Cayman Islands before moving to Dubai in 2005. This experience saw him join DWTC in 2008 and made him the perfect candidate for Director of Contracts, a job NOVEMBER 2019
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The DWTC Authority is established by His Highness, Sheikh Mohammed Bin Rashid Al Maktoum, Vice President of the UAE and Ruler of Dubai w w w.suppl yc ha i ndi gi ta l. com
DUBAI WORLD TRADE CENTRE
“ The Dubai World Trade Centre is essentially like having five or six companies in one”
136
— Jason Tranter, Contracts Director, Dubai World Trade Center
CONTRACTS AT DWTC Though the DWTC is known largely for its exhibition space, there are a number of key operational focus areas, according to Tranter. He goes on to share some of the major areas of business that P&C services: Events: • Event and Exhibition Management • Experiential Event Production Venue Services Management: • Hospitality and Event Catering Services (“DWTC has one of the largest catering operations in the UAE,” adds Tranter, “with kitchen space that is second only to Emirates Airlines.”) • Wedding Services
which he started in 2014. “In the last ten years, the number of DWTC annual visi-
• Facilities Management and Engineering
tors to events has grown from around
• Housekeeping
1mn to 3.4mn in 2018,” he begins. “My
• Protocol and Security
role is to help ensure that the P&C team is able to constantly innovate
Real Estate Development and
and evolve to stay ahead to meet the
Asset Management:
demands of what is a pretty challeng-
• One Central: an award-winning,
ing, but of course exciting, working
mixed-use development fea-
environment here in Dubai.”
turing five LEED Gold-certified
NOVEMBER 2019
CLICK TO WATCH : ‘24/7, 365 DAYS A YEAR: DUBAI WORLD TRADE CENTRE’
commercial buildings and pedestrian-friendly retail at the heart of Dubai’s Central Business District • The Apartments – Dubai World Trade Centre’s Hotel Apartments Free Zone Operations: • As a designated Free Zone the
Departments: • Corporate Strategy, Corporate Marketing, Legal etc • Corporate Support services (Finance, IT, HR) This list is not exhaustive, notes Tranter, and all of these departments
DWTC Authority offers both
require procurement to be conducted
onshore and offshore operations
by DWTC’s P&C department. “Dubai
licensing and operations across
World Trade Centre is essentially like
a wide range of industries
having five or six companies in one; we have a vast number of products
Support (Shared) Services
and services that need to be acquired w w w.suppl yc ha i ndi gi ta l. com
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DUBAI WORLD TRADE CENTRE
“The migration has been met with tremendous acceptance by our suppliers” — Jason Tranter, Contracts Director, Dubai World Trade Center
138
across several different timelines
into the company, but also have a real
for a variety of clients, both in-house
impact on its bottom line. As we have
and offsite.” Despite the complexity
progressed through our digital trans-
of the operations at DWTC, Tranter
formation, this is beginning to become
emphasises that the company is con-
a reality,” says Tranter.
stantly striving for transparency and innovation in the hope of promoting a
DIGITALISATION OF PROCUREMENT
new perception of procurement, at a
There are two major projects that
time when the department can often
assisted in the digitisation of DWTC’s
be considered a “roadblock” to busi-
procurement process. The first was
ness functions. “We want to remove
the company’s migration to the Oracle
this concept of P&C being a roadblock,
ERP system in 2012 and the second
and not only become fully integrated
was the implementation of the new
NOVEMBER 2019
e-procurement system in 2017. “The
was an extreme benefit across the
migration to Oracle ERP was seismic,”
board, for finance and HR in particu-
reflects Tranter. “It was the first major
lar,” recalls Tranter. Once the platform
move in our digital transformation.”
was embedded in the system, DWTC
Previously, the procurement division
began to focus on how procurement
had been using a variety of platforms,
could drive efficiencies, concluding
from Excel to Great Plains which was
that a personalised e-procurement
disjointed and disorganised. “Oracle
solution – now known as Tejari
E XE CU T I VE PRO FI LE
Jason Tranter Jason Tranter studied Commercial Management & Quantity Surveying at the University of Manchester in the UK and has an Executive MBA from the University of Bradford. He is a member of both the Royal Institute of Chartered Surveyors (MRICS) and The Chartered Institute of Arbitrators (MCIArb). In addition to Dubai, he has also lived and worked in both the UK and the Cayman Islands, where he has gained extensive experience in main contracting and construction cost consultancy, as well as in the procurement and management of both corporate and real estate development contracts. Working closely with the VP-P&C and the wider Executive Management Team, Jason is responsible for managing all of DWTC’s corporate procurement and contract requirements. In addition, the role includes responsibility for overseeing Supplier Relationship Management (SRM), procurement policy compliance, and supervising the Procurement and Contracts (P&C) team. Jason is also the designated management representative responsible for DWTC’s Quality Management System (QMS).
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DUBAI WORLD TRADE CENTRE
1979
Year founded
2mn+
Square foot of premium office space
1,400
140
Approximate number of employees
NOVEMBER 2019
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C O M PA N Y FACT S
• In 2008, the Dubai World Trade Centre received around 1mn visitors. Last year saw 3.4 mn attendees to 363 business events hosted at its venues. • DWTC has 5,000 suppliers registered on its e-procurement system • DWTC’s e-procurement system has reduced the sourcing cycle for high value tenders significantly by as much as 20%, and as much as 50% for higher volume procurement based items
Solutions – would be the best fit. “Though the initial integration pro-
143
provides hands-on-experience, without compromising company
vided challenges, and we needed to
data.” In conjunction with the train-
customise it to suit our internal poli-
ing of staff, Tranter goes on to share
cies, we have now enjoyed a number
that they have taken a number of
of benefits, such as: reduced sourcing
actions to ease the migration to
costs; ease of access via the app to
the platform. “We implemented the
create a level of transparency not had
new system in stages: following the
before; and the completion of ten-
offline design with the developers, we
ders remotely, saving management’s
ran hypothetical scenarios within the
time.” Tranter adds that the platform
P&C department and responded to
can also be used as a training tool.
the alterations needed to better suit
“Using the e-sourcing application
the team. We moved the trial from w w w.suppl yc ha i ndi gi ta l. com
DUBAI WORLD TRADE CENTRE
“We want to remove this concept of P&C being a roadblock” — Jason Tranter, Contracts Director, Dubai World Trade Center
144
department to department, build-
drive to change the perception of
ing upon feedback from each team.”
procurement. As a result, “the migra-
Externally, there were measures put in
tion has been met with tremendous
place, particularly to assist with smaller
acceptance by our suppliers and the
companies who were not familiar with
positive feedback has only continued
Oracle and Tejari Solutions in general.
to grow, both internally and externally.”
DWTC provided a 24-hour helpline to support the 5,000 suppliers registered
THE NEXT LEVEL
on the platform. Tranter enthuses
As the e-procurement platform con-
that this is based on the motto of ‘here
tinues to set down roots at DWTC,
to help’, as a part of the department’s
Tranter trusts that relationships with
NOVEMBER 2019
145
suppliers will evolve based on the
is a 40-year-old government-related
core values shared, values that have
entity, and we have a responsibility
been made transparent through the
to contribute to the growth of Dubai.
centralisation of the platform. “We are
Through technology and innovation
now also beginning to build historical
we will continue to do this.�
data into the system, which will enable us to enhance spend analysis, in depth reporting, planning capabilities and contract management. Creating a dashboard from this will truly take us to the next level,� he says. DWTC w w w.suppl yc ha i ndi gi ta l. com
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