Supply Chain Digital Magazine – November 2019

Delivering successful projects in the energy industry with REC Solar

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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

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

SEAN GALEA–PACE EDITORAL DIRECTOR

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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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98 CovĂŠa

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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.

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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.

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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.

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+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.

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+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

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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

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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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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Covering every angle in the digital age The Business Chief platforms offer insight on the trends influencing C and V-level executives, telling the stories that matter

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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.

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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

be consumed and inter-operate with w w w.suppl yc ha i ndi gi ta l. com

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

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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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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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83

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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Dr. Roland Schütz, CIO of the Lufthansa Group, talks about the secret sauce of this successful and trusted partnership.

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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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89

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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97

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

101

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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.

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

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

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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

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

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

126

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

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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

135

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

137

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

141

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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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