SupplyChain Digital Magazine – October 2019 by Supply Chain Digital

How Procurement is set up to deliver business objectives

www.supplychaindigital.com

O C T OB E R 2 0 19

INNOVATION IN SUPPLY CHAIN

THINK BIG. START SMALL. SCALE FAST. Deloitteâ&#x20AC;&#x2122;s Kevin Overdulve on how the disruptive power of AI is shaping the autonomous supply chains of tomorrow SUSTAINABILITY IN PACKAGING

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FOREWORD

elcome to the October issue

We also feature Dilip Dubey, Founder

of Supply Chain Digital!

and CEO of Xeeva, as he talks about

In our cover feature this month, we speak with Kevin Overdulve, Director in Logistics & Distribution at Deloitte Belgium, about how the disruptive power of AI is shaping the autonomous

how artificial intelligence (AI) is influencing the supply chain sector. “AI is going to create jobs in procurement which we haven’t even heard of yet,” affirms Dubey.

supply chains of tomorrow. “We see

Elsewhere in the magazine, there’s

that companies are moving much more

in-depth features with Elemica, Zurich

towards figuring out how to make their

Insurance, Schur Flexibles Group,

supply network an integral part of their

American Tower, Leumit HMO and

value proposition to customers,

UNSW Australia that you won’t want

by taking a differentiated approach

to miss!

towards new ways of competitive advantage,” says Overdulve. Our leadership feature is an interview with Komatsu, as Daphyne Woodard, Manager of the Order & Distribution (O&D) Continued Improvement of Komatsu America Corp, discusses how new technology is accelerating

Lastly, our top 10 counts down the biggest software companies worldwide. Would you like to be featured in the next edition of Supply Chain Digital? Get in touch at sean.galea-pace@ bizclikmedia.com

her firm’s operations in the

Enjoy the issue!

manufacturing sector.

Sean Galea-Pace

www.supplychaindigital.com

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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DANIEL CRAWFORD STEVE SHIPLEY

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CONTENTS

Leverages cognitive technology to help companies think big, start small and scale fast

12 42 30

Everything Commerce: the past, present and future of business on the internet

54 ACCELERATING PROCUREMENT RESULTS WITH AI MAINTAINING A SUSTAINABLE APPROACH AMIDST A DIGITAL TRANSFORMATION

72 Software companies worldwide

Events & Associations

106 Zurich Insurance

94 Elemica

122 Schur Flexibles Group

CONTENTS

150 Leumit Health Services

132 American Tower

174 UNSW Sydney

162 Higher Colleges of Technology

188 TransForm Shared Service Organization

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Deloitte Belgium leverages cognitive technology to help companies think big, start small and scale fast WRITTEN BY

HARRY MENEAR PRODUCED BY

CHARLOTTE CLARKE

OCTOBER 2019

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DELOITTE BELGIUM

Kevin Overdulve, Director in Logistics & Distribution at Deloitte Belgium, shares his insight into how the disruptive power of AI is shaping the autonomous supply chains of tomorrow

rom the invention of the steam engine and new ironworking processes to the microchip and the nuclear reactor, the

first three industrial revolutions have each recast the world in a new mould. Now, as the world 14

plunges into a fourth transformation, driven by disruptive technologies, hyper-connectivity and customer-centric new business models, looking back across the past 260 years can grant valuable direction into the shape of tomorrow. The trends defining Industry 4.0 are reflected in the impetus that fuelled the First Industrial Revolution at the close of the 18th century: harnessing new innovations in order to increasingly improve and automate the work carried out by human labour. Previously, digitisation was a process that focused on automating manual tasks, “transactions” if you will, but according to Kevin Overdulve, Director in Supply Chain & Network Operations at Deloitte Belgium, technological advances are on track to take automation to the next stage. “Since the beginning of the 1990s, we’ve seen companies OCTOBER 2019

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DELOITTE BELGIUM

“ We’re seeing a shift towards more cognitive automation and artificial intelligence” 16

— Kevin Overdulve, Director in Logistics & Distribution, Deloitte Belgium

explore the realm of transactional automation, which led to the increased adoption of Enterprise Resource Planning (ERP) systems, basically to do the things that human beings were doing on a piece of paper, but then better, faster and more cost-effective,” he says. “Now, we’re seeing a shift towards cognitive automation leveraging artificial intelligence (AI), where today’s human decision-making processes are automated.” Ultimately, Overdulve sees this trend resulting in the genesis of the autonomous digital supply network, whereby the siloed supply chain functions of today will evolve towards a network of connections between plan, source, make and deliver, as well as adjacent business functions, all enabled by a digital core. We sat down with him to discuss this evolution: “We see that companies are moving much more towards figuring out how to make their supply network an integral part of their value proposition to customers, by taking a differentiated approach towards new ways of competitive advantage,” he notes. Overdulve’s fascination with the delicate interplay of factors in the

OCTOBER 2019

CLICK TO WATCH : ‘DIGITAL SUPPLY NETWORKS: THE DIGITAL TRANSFORMATION OF SUPPLY CHAINS’ 17 modern supply network began years

it’s so dependent on business strategy

before his career at Deloitte Belgium.

and choice of differentiation,” he

He recalls being captivated while

explains. “Because supply chains are

walking around warehouses and

complex systems in which optimisation

visiting harbours, observing how goods

across all angles is a true challenge –

flowed in coordinated (or not so coordi-

if even possible – you typically need

nated) ways from A to B. Always on

to look into making several trade-offs:

the leading edge of optimisation

‘do you prefer to hold onto stock

and innovation, the dynamic world

to maximise operational efficiencies

of consulting had Overdulve hooked

or do you follow a lean, small batch

from the start, quickly realising that

approach? Do you value service at

his passion resides in supply chain

additional supply chain cost? How do

management. “There’s no one-size-

we choose what we want our supply

fits-all answer to finding the right

chain to look like?’ That complexity

supply chain for a company, because

was very interesting to me.” w w w.suppl yc ha i ndi gi ta l. com

LISTEN TO OUR PODCASTS

TRANSPORTATION DISRUPTION Transportation and supply chain leaders are feeling the pressure to evolve. We have to be more efficient, even as customers demand everything shipped for free yesterday. We have to be more environmentally sustainable, while protecting profitability at the same time. In short, we have to disrupt our own processes before our competitors disrupt us out of business.

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DELOITTE BELGIUM

CLICK TO WATCH : ‘MANUFACTURING PROCESS INDUSTRIES CAPITALIZE ON DIGITAL SUPPLY NETWORKS’ 20

Helping Deloitte’s customers

we advise clients on how to adopt

navigate that complexity is at the heart

more of a pull perspective and listen

of Overdulve’s current role, a quest he

to the customer’s needs and wants.”

believes is fundamentally guided by

By listening to what Deloitte’s clients’

the need to put the customer at the

customers truly value in the supply

epicentre of the question. “For a lot of

chain service they receive, which

companies, their supply chain is the

eventually drives (part of) their buying

final connection point to the customer,”

decision, Overdulve maintains

he points out. “What I find intriguing is

companies can tune and reconfigure

the idea that, instead of taking a ‘push’

their supply chains – plural – in order

perspective from a supply chain point

to turn it into a source of competitive

of view and saying ‘this is our supply

advantage. He notes that, with

chain, these are our capabilities: this is

increasingly demanding customers,

the service we offer our customers’,

there are three major conclusions from

OCTOBER 2019

the customer studies performed by

gain greater insight in the way how their

Deloitte across several industries:

supply chain actually operates, giving

“In a lot of the B2B, or B2B2C environ-

rise to opportunities related to

ments, reliability is really the number

efficiency, rapid responsiveness and

one service expectation and, if you

lower amounts of capital employed.

can excel at that, it really gives you

Digital transformation is supporting

a competitive edge; the second one

all three of these observations, but

is flexibility, with customers wanting

particularly the third factor. Adding

to be able to change orders or service

the AI component to the equation, the

requirements depending on the

ability to analyse and create actionable

situation at hand; and the third one is

insights from disparate and sizeable

the visibility and transparency element.”

data sets drives a new wave of

This visibility component is not only

designing, planning and operating the

a customer demand. For most of

supply network of tomorrow. Overdulve

Deloitte’s clients it is a key enabler to

sees AI as an enabler of a future where

E XE CU T I VE PRO FI LE

Kevin Overdulve Kevin is a leader in Deloitte’s global Supply Chain practice, with 13 years of experience advising multinational clients on supply chain strategy, Logistics & Distribution, and Digital Supply Networks. He works across industries, with the majority of his clients residing in the CPG and manufacturing industry. Before his current tenure of eight years at Deloitte, he worked for other global consultancies, always with a focus on supply chain management. Kevin holds a M.Sc. Business Engineering and an MBA in Supply Chain Management.

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DELOITTE BELGIUM

€565mn Approximate revenue

1845

Year founded

4,400

Approximate number of employees 24 the supply network ceases to be a linear, siloed, one–size–fits– all structure, and becomes an interconnected, collaborative, customer-centric, and above all responsive network running across an industry’s value chain. “Where I see major advances at this point in time is clients having established the ability to retrieve real-time data from internal and external source systems, to provide user-centric visibility and the ability to identify exceptions at the spot, and to offer supply chain improvement suggestions to supply chain professionals – which OCTOBER 2019

improve over time as machine learning helps to perfect courses of action to avoid the negative consequences of supply chain deviations, eventually enabling an autonomous supply chain function,” Overdulve explains. “ERPs tend to be set up in a customised manner, creating hundreds of reports to manage execution, still transactional in nature, with supply chain professionals needing to plough their way through them in order to gain insights. By the time the insight, let alone the remediation action to be undertaken, is found you’re most likely too late and the negative effect of the disruption has already happened.” Overdulve believes in platform technologies that combine crawler technology – extracting and indexing large supply chain data sets to build your company’s supply network “memory” – and the power of AI – breaking silos in favour of the best supply chain response to exceptions – to augment the supply chain workforce of the future. “Let’s take the robot out of the human and allow supply chain professionals to focus on value-adding activities,” he says. “It’s the reason I’m working alongside w w w.suppl yc ha i ndi gi ta l. com

DELOITTE BELGIUM

several promising startups, which are developing technology I believe does this very well, making real-time copies of our company’s data, which is constantly and incrementally updated to ensure a supply chain professional can receive always retrieve the most current visibility on supply chain operations.” Of course, applying cutting-edge technology with a modern, digital transformation mindset means adopting an approach that is at odds with those that businesses have traditionally employed. “At Deloitte, our 26

tagline on how to do digital transformation is to ‘think big, start small and scale

CLICK TO WATCH : ‘DIGITAL SUPPLY NETWORKS TRANSFORMING OPERATIONS FOR OIL, GAS, AND CHEMICALS’

OCTOBER 2019

changing at an increasing pace, is much more agile, acknowledging the lessons learned from failure and the need for rapid adoption and adaptation. “The ‘think big’ phase is about envisioning the art of the possible of what a company’s future supply network could look like, which technologies it needs to explore to realise this vision and which are the most apparent supply chain areas to tackle in light of continuous business challenges. We create a constantly evolving roadmap for the company. Then, the ‘start small’ element involves us solving a specific business issue, rather than trying to boil the ocean. We take one of the core fast’,” Overdulve explains. “It’s a

use cases that could drive benefit for a

different mentality compared to the

company, we match that with the right

waterfall mentality that was prevalent

technology to solve the challenge, and

before. Previously, when you went

we do a pilot. Finally, the ‘scale fast’

through large scale-supply chain

part is about finding other areas where

transformations, you went off for a year

the solution prototype can be leveraged

to design the solution, then two years

to create momentum at scale and start

to build it, another year to test it. Then,

expanding the technology for adoption

four or five years later, it actually went

across the company.”

live. By the time you put it live, everything

Overdulve sees AI as the defining

has changed so much that you might

characteristic of the supply networks

wonder whether the solution is even

of the future. “It’s completely changing

still relevant.” Deloitte’s approach to

the way we can manage supply chains

digital innovation, in a world that is

in the realm of moving towards w w w.suppl yc ha i ndi gi ta l. com

DELOITTE BELGIUM

autonomous supply networks,” he explains. He further argues that “the autonomous supply network trend has the ability to turn how we define supply chain, or network, upside down. Do you still need periodic planning capabilities if your supply network self-regulates itself? Which organisation and skills are needed to operate the autonomous supply network? “I have two top priorities right now: one is helping companies understand the potential of cognitive automation

“ Think big, start small and scale fast” — Kevin Overdulve, Director in Logistics & Distribution, Deloitte Belgium

and available technologies in the 28

supply network, to help them gradually enter the world of the cognitive – and by extension, autonomous – supply PA R T N E R S

Valued relationships Deloitte has been acknowledged consecutively by Manhattan Associates as Global Partner of the Year, and has been working across 100+ implementations globally to deliver best of breed WMS, TMS and OMS solutions across industries and sectors.

OCTOBER 2019

Llamasoft is a leading provider of Supply Chain Design software. Deloitte has been leveraging its technology for years to bring the latest customer-centric supply chain designs to its most respected clients.

network. I think thatâ&#x20AC;&#x2122;s probably the

identify and adopt the new attitudes

biggest thing that will happen in the

and methodologies that will allow them

next couple of years in terms of

to remain agile and thrive in an

transformation in my field of expertise.

ecosystem that changes more rapidly

The second is more around strategic

with each passing day.

supply chain design, and how you evaluate different supply chain archetypes in light of continuously evolving customer needs.â&#x20AC;? To maximise the benefits of the Fourth Industrial Revolution, companies will need to not only make the most of the emerging technologies in the field, but to explore, w w w.suppl yc ha i ndi gi ta l. com

P R O C U R E M E N T T R A N S F O R M AT I O N

INCREASING SUPPLY CHAIN EFFICIENCY THROUGH A DIGITAL TRANSFORMATION Daphyne Woodard, Manager of the Order & Distribution (O&D) Continued Improvement of Komatsu America Corp, discusses how new technology is accelerating her firm’s operations in the manufacturing sector WRITTEN BY

OCTOBER 2019

SEAN GALEA-PACE

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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

omatsu, the leading construction equipment manufacturer, has transformed the way it conducts business through the introduction of new technology. Traditionally renowned

for its unique and unrivaled products, Komatsu had outdated processes and urgently required a system to help speed up its orders. This led to the company partnering with SAP two years ago, in a collaboration which saw the software giant create Komatsu a tailored system called K-View — an automated portal that streamlines processes and provides real-time visibility into inventory and order status. Through this system, it allowed the time it takes Komatsu’s orders to be completed within 30 seconds in a move that significantly

enhanced efficiency and customer service. Daphyne Woodard, Manager of the Order & Distribution (O&D) Continued Improvement of Komatsu America Corp, speaks to Supply Chain Digital about the process behind the firm’s implementation of K-View and how operations have become more straightforward. How does Komatsu differentiate itself from its peers And reinforce its competitive advantage? The “Komatsu Way” stands for safety, law, quality, delivery and cost. Paramount to our mission is the safety of our employees, which also includes their families. It’s also important to us that we ensure compliance comes before anything else that we do. The “Komatsu Way” drives our corporate governance and manufacturing competitiveness across our network of distributors. OCTOBER 2019

“ The K-View portal enables us to be better partners to our dealers by making it easier for them to conduct business with us” — Daphyne Woodard, Manager of the Order & Distribution (O&D) Continued Improvement, Komatsu America Corp w w w.suppl yc ha i ndi gi ta l. com

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 : ‘KOMATSU IN 30 SECONDS’ 34

In what ways does your new SAP-built solution K-View help increase supply chain efficiency? The K-View portal has increased our supply chain efficiency in multiple ways. The automated portal streamlines our processes and also provides real-time visibility into our inventory and order status. Most importantly, K-View has cut the amount of time it takes to create orders from hours to 30 seconds, improving productivity and customer service.

OCTOBER 2019

How does increased efficiency

timely updates. Currently 2,000 external

improve Komatsu’s relationships

and internal team members use K-View.

with its clients and partners?

Dealer feedback to the portal has been

The K-View portal enables us to be

so positive that we’ve already introduced

better partners to our dealers by

it across our supply chain teams.

making it easier for them to conduct business with us. It has decreased

In terms of Komatsu’s relationship

the time they have to invest in non-

with SAP, why was it chosen as part

value-added tasks, like reviewing

of your digital transformation?

our catalogue and submitting orders,

SAP has been part of Komatsu’s

so they can serve their customers more

core applications for many years.

quickly. Additionally, because the

Since it was already our trusted

system is mobile ready and provides

partner, we reached out when the

updates in real-time, our dealers are

opportunity arose to expand our

able to provide their customers with

digital transformation.

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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

Is K-View just the first step in an extended transformation? What other technological innovations do you plan on implementing in your manufacturing, supply chain and logistics processes? The current deployment of K-View is our first step in an extended transformation. We initially wanted to develop a portal that supported our distributors and end-customers. After its launch, we realised how beneficial the portal was for our 36

business, so we expanded it to our departments and entire supply chain. We plan to grow this digital transformation and begin launching the portal throughout Komatsu America’s network globally. Additionally, Komatsu Limited has noticed the positive impact the portal has had on our business. As such, it has been enquiring about how they could potentially integrate K-View into its supply chain. Our team will continue to grow and evolve the technology we utilise in North America and throughout our global network.

OCTOBER 2019

“ Our team will continue to grow and evolve the technology we utilise in North America and throughout our global network” — Daphyne Woodard, Manager of the Order & Distribution (O&D) Continued Improvement, Komatsu America Corp

How do you manage the cultural shift and potential workforce disruption that accompanies technological adoption? We ensured we communicated early and often, in order to put our teams at ease. Before we developed the portal, we first engaged five distributors and made them a part of the testing process. Additionally, we continuously shared updates about the digital transformation across our network so that other distributors would not be surprised when we launched K-View. Through this constant communication, our dealersâ&#x20AC;&#x2122; mindsets changed. Everyone became excited about the system and wanted access to it quicker than anticipated. When the portal went live in October 2017, our goal was to have all our distributors on K-View by March 2018. However, because everyone was aware of the benefits of the portal, they wanted to be able to use it right away. As such, all of our distributors were added to K-View within three months.

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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

“ K-View has cut the amount of time it takes to create orders from hours to 30 seconds, improving productivity and customer service” — Daphyne Woodard, Manager of the Order & Distribution (O&D) Continued Improvement, Komatsu America Corp

OCTOBER 2019

How do you continue to ensure that

What are your plans over the next

safety is a top priority?

year or so? What’s the next top

At the core of Komatsu’s ethos is our

priority for Komatsu?

continuous improvement cycle: PDCA

For the next six to 18 months, we will

— Plan, Do, Check and Act. We develop

continue to deploy K-View across

a plan, execute it, continually check on

our network. We are currently testing

its effectiveness and act on feedback

phase four and deploying it in October.

from our employees. If we need to

This phase entails integrating three

make a change, we will do so and start

different systems that our floor plan

the PDCA cycle anew.

machines management teams utilise into our streamlined system. In November, we will kick-off phase five: integrating our forklift business line into the portal. Once this line is part of the system in April 2020, all of our North America business will be a part of K-View. Starting in August 2020, we will integrate our four U.S. stockyards to K-View as part of phase six. Once we are live in November 2020, this will enable distributors to pick up machines faster, which ultimately helps their customers. Furthermore, we will launch four additional phases from 2020 – 2022. This thorough digital transformation is part of our continued commitment to our customers and employees to maximise our corporate value through quality and reliability.

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TECHNOLOGY

Everything Commerce: the past, present and future of business on the internet Supply Chain Digital examines the past, present and future of e-commerce, the top three trends currently raising the stakes in global supply chain, and how businesses can react, adapt and profit from themÂ WRITTEN BY

OCTOBER 2019

HARRY MENEAR

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TECHNOLOGY

iven that, statistically, you share

your birthday with around 21mn people, it’s fair to say that, in

almost all of history, not a single day has passed that wasn’t special to someone. However, not all days are equally special:

14 July, Bastille Day, matters more to the people of France than 4 July, the most important day of the year for many Americans. On 25 January 2020, around 1.4bn people will celebrate the advent of the new Chinese lunar year, Scots the world over will celebrate the life of famed poet Robert 44

Burns, and I will celebrate my own birthday - most likely with a plate of haggis and egg rolls. Aside from the roughly 15mn North Africans living in the Republic of Chad, who celebrate their independence from France, 11 August is a day that typically rolls around each year without much fanfare. Given that 11 August is the anniversary of the first in a chain of events that have shaped the modern world in which we live, arguably more than the moon landing, its anonymity is a gross oversight. It all started with a credit card, a Sting CD and - as most things in the digital age were wont to start - a group of young software engineers in an unassuming house in Nashua, New Hampshire. OCTOBER 2019

“Attention shoppers: the internet is open” — The New York Times, August 12, 1994

“Attention shoppers: the internet is open,’’ read the headline on the 12 August 1994 issue of the New York Times. “At noon yesterday, Phil Brandenberger of Philadelphia went shopping for a compact audio disk, paid for it with his credit card and made history. Moments later, the champagne corks were popping in a small two-story frame house in Nashua, NH. There, a team of young cyberspace entrepreneurs celebrated what was apparently the first retail transaction on the internet,” wrote the Times. Brandenberger paid $12.48 (plus shipping and handling) for the CD copy of Sting’s “Ten Summoners’ Tales”. NetMarket - described by its 21-year old CEO Daniel M Kohn as the equivalent of a shopping mall in cyberspace - had just taken the first step on the road to a revolution in commerce that has completely changed the way that the modern world operates. w w w.suppl yc ha i ndi gi ta l. com

TECHNOLOGY

If the world recognises the anniversa-

GDP of Italy, by the way), representing

ries of the events that shaped it the

a cumulative growth of 18% year on

most, the celebration of e-commerce

year. Its impact on the global supply

day should be recognised with a

chain has been epoch-defining.

parade and a free download of Sting’s latest album. The e-commerce market has had an

Almost 60% of interviewees in a recent Shopify report stated that they frequently make purchases from

unprecedented impact on the way in

overseas retailers, a trend driven

which retailers interact with consum-

by online marketplaces like Wish

ers across the globe, and its presence

(which enable sellers to internationally

in our collective lives is only becoming

market and sell their products to

more pervasive. In 2018, global

consumers - the sellers are typically

e-commerce sales totalled $2.86trn

Chinese consumer goods manufactur-

(that’s over $200bn more than the

ers and the consumers are typically

OCTOBER 2019

bored students in South London apartment blocks who only just realised that they need a safety harness for their hamster). With the sheer number of consumer goods rising and rising, and the increasingly disruptive effect of “peak shopping” events like Alibaba’s Singles Day or Amazon’s Prime Day, the pressure placed on the global supply chain has never been more apparent. Here are Supply Chain Digital’s top

“We are entering a new freight era powered by intelligent data” — Richard Howells, Vice President of Solution Management at Digital Supply Chain, SAP

three e-commerce trends that are raising the stakes in global supply w w w.suppl yc ha i ndi gi ta l. com

TECHNOLOGY

“It’s clear that customer experience is the battleground for brands to take victory in their respective markets” — Glen Hartman, Senior Managing Director, Accenture Interactive North America and Global Digital Marketing

chain operations and how businesses 48

can overcome them.

PEAK DAYS Amazon reported revenues of $4.2bn on Prime Day 2018, an increase of 33% year on year, and 2019’s Prime Day only built on that trend. The frequency and scale of major ecommerce events is only growing. Such events place enormous strain on national logistics networks. Richard Howells, Vice President of Solution Management at Digital Supply Chain, SAP, thinks we should look to the king of e-commerce: Amazon. “We are entering a new freight era powered by intelligent data, enabling OCTOBER 2019

real-time decision-making for both shippers and carriers,” he says. “To stay competitive, organisations need to take a page from Amazon’s book, by working to maximize worker utilization, and efficiency, see more sentiment analysis, market data on demand, make informed decisions about their operations, and ultimately grow their businesses in smart, strategic ways.”

THE AI-POWERED SUPPLY CHAIN This need for impeccable data, gathered both internally and externally from companies and consumers, is the challenge that supply chain and logistics are going to have to fight to overcome if they want to take advantage of the $2.8trn e-commerce industry. Alex Kerswill, Supply Chain Customer Success Manager at Peak, thinks that the industry has a sizeable mountain to climb. “Increasingly, that last piece of the process is growing in importance. And while this should be unsurprising, given that more and more goods and services are bought online – either through retailers, ‘box businesses’ like HelloFresh and Harry’s Razors, w w w.suppl yc ha i ndi gi ta l. com

TECHNOLOGY

or to-your-door services like Deliveroo – it does mean that logistics companies are transitioning from being a functional part of the customer experience to the star that will make or break it,” he says.

INCREASED CUSTOMER CENTRICITY Back in February, Glen Hartman, Senior Managing Director, Accenture Interactive North America and Global Digital Marketing, wrote that: “by now, it’s clear that customer experience 50

is the battleground for brands to take victory in their respective markets. As we enter 2019, this philosophy is truer than ever.” The rising convenience and range of options available to e-commerce shoppers means that the margin for error on the seller’s part will continue to shrink. Derek Bryan, Vice President of EMEA at Verizon Connect, agrees: “These innovations have largely focusedon empowering customers to take control of their own delivery experience… In a climate characterised by rising expectations of customer service, lower tolerance of the OCTOBER 2019

failure to meet these expectations and the use of social media as a platform to voice customer complaints in the public forum, itâ&#x20AC;&#x2122;s more important now than ever for businesses to deliver upon their promises.â&#x20AC;?Â Whatever the solution, and whatever the shape and size of the next problem that the burgeoning online shopping space throws at its supply chain operators, there is no going back. A new type of interaction between company and customer, first seen on 11 August 1994 in a small house in Nashua, has woven itself into the very fabric of modern life and business. Supply chains will adapt, new technologies will be adopted and, in the meantime - alongside the people of Chad - we should all take note of the day that changed the global supply chain forever.

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CONTRACT MANAGEMENT

ACCELERATING PROCUREMENT RESULTS WITH AI Dilip Dubey, Founder and CEO of Xeeva, discusses how AI is disrupting the way procurement operates and the wider effect new technology is having in the supply chain sector WRITTEN BY

OCTOBER 2019

SE AN GA LE A-PACE

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CONTRACT MANAGEMENT

ith a focus on simplifying

of procurement. As a cloud-based,

the source-to-settle process,

full suite procurement and sourcing

Xeeva seeks to shake up

software, Xeeva is flexible and adaptable

the supply chain industry with its

in order to meet its customerâ&#x20AC;&#x2122;s needs.

patented artificial intelligence (AI).

Established in 2014, Xeeva is recognised

Due to the increasing influence

as a global provider of AI-powered

technology has had on the way

source-to-pay software and was named

business is conducted worldwide,

a Gartner Cool Vendor for Procure-to-

it has never been so important to

Pay Applications in 2018. Operating

leverage new processes and applica-

in over 45 different countries and 18

tions to set organisations apart from

languages, its platform works in all

competitors, particularly in the supply

major currencies and units of measure.

chain space. Xeeva prides itself

Dilip Dubey, Founder and CEO of

on accelerating the advancement

Xeeva, believes that most procurement

OCTOBER 2019

today is outdated and is in need of a significant overhaul. “As amazing as the talent has been in procurement, there hasn’t been any real innovation recently,” affirms Dubey. “People do procurement the same way as they have always done it for the last 20-25 years. If someone needs something; they call or email their buyers, or buyers get a request from a workflow system.” With an ambition to make procurement more strategic, Xeeva is re-evaluating how to make procurement more efficient. With an amplified dependence on

“AI is going to create jobs in procurement which we haven’t even heard of yet” — Dilip Dubey, Founder and CEO, Xeeva w w w.suppl yc ha i ndi gi ta l. com

CONTRACT MANAGEMENT

“There has to be value in what you’re trying to achieve, otherwise what’s the point?” 58

— Dilip Dubey, Founder and CEO, Xeeva

technology tools to drive operations, Dubey believes AI should be considered because of its potential to help businesses grow. “There’s so many different benefits to AI,” says Dubey. “In some cases, it’s enabling us to do things that humans simply couldn’t do. It’s allowing us to speed up manual tasks that would otherwise have taken much longer if performed by a person.” Xeeva’s patented AI goes beyond just basic tasks such as picking suppliers, automating tasks, and providing recommendations. Its technology can cleanse, classify, and enrich data down to the line-item level in just minutes,

OCTOBER 2019

CLICK TO WATCH : ‘XEEVA’ 59 versus the hours or days it would take

replace human’s jobs, Dubey believes

to do manually. Xeeva’s procurement

it is actually quite the opposite. “The

technology also has domain context

worry that AI will eliminate jobs in

built into its core. Because of this,

procurement is misplaced. In fact,

Xeeva is able to provide unprecedent-

I actually believe AI will create a lot

ed savings, hyper-efficiency, and real

more jobs than it will displace but the

bottom-line impact. “In procurement,

only caution is that the job just won’t

I’m looking for hard results,” affirms

be the same,” he explains. “Take the

Dubey. “This remains the single biggest

evolution of computers, for instance.

challenge that all companies have to

There’s a lot more jobs now than there

face with their AI initiatives. There has

were previously because of the accelera-

to be value in what you’re trying to

tion of computers, and there is every

achieve, otherwise what’s the point?”

chance that AI will follow the same path.

While there is a growing fear in the industry that the adoption of AI could

AI is going to create jobs in procurement which we haven’t even heard w w w.suppl yc ha i ndi gi ta l. com

CONTRACT MANAGEMENT

45+

Locations globally

2014

Year founded

200+

Approximate number of employees of yet. There is the possibility that the definition of current job roles might change, but that’s just evolving with the times. Of course, there’ll be some upheaval. However, to think that humans could be replaced completely is very linear thinking and I don’t subscribe to it.” With the procurement world constantly transforming, it’s clear that technology has become king. For businesses to succeed long-term, it’s vital to adapt and respond to the latest trends in order to remain agile. Looking to the future, Dubey has clear ideas on how Xeeva can continue OCTOBER 2019

to leverage AI to provide value over the next few years and beyond. “I believe that in the future, data which is imperfect and hard to get to in procurement today will become perfect and abundant,” he notes. “What used to take six months and 100 different people to solve can now be done overnight through AI. Procurement in five years won’t look like the procurement of today – that much is guaranteed. Most of the transactional work and lots of the heavy lifting will

“Procurement in five years won’t look like the procurement of today – that much is guaranteed”

be done by new technology such as AI and blockchain. I expect it to become extremely strategic in the continuum of the world of business because it’s no longer one company supplying to another or one firm buying from the other. The world is transforming.”

— Dilip Dubey, Founder and CEO, Xeeva w w w.suppl yc ha i ndi gi ta l. com

IN ASSOCIATION WITH

OUR LE

KEYNOTE S MARK ADAMS

VICE PRESIDENT & GENERAL MANAGER, EUROPE AT BIGCOMMERCE

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S U S TA I N A B I L I T Y

MAINTAINING A SUSTAINABLE APPROACH AMIDST A DIGITAL TRANSFORMATION With technology transforming the way businesses conduct operations worldwide, itâ&#x20AC;&#x2122;s vital to ensure that companies maintain a sustainable drive in the supply chain sector and beyond WRITTEN BY

OCTOBER 2019

SE AN GA LE A-PACE

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

ue to the rate that technology develops, businesses have a requirement to be lean and adaptable now more than ever

before. Technology has become the right-hand man to companies worldwide and you will be hardpressed to find an organisation in the supply chain

space that doesn’t see the value in the implementation of new technology. However, while the introduction of Big Data and artificial intelligence (AI) has been felt industry-wide and further, there remains a responsibility to ensure that sustainability is also considered. Antony Bourne, Industries President of the Insti66

tute for Fiscal Studies (IFS), believes customer pressure has meant that companies’ hands have been forced into adopting a more sustainable approach. “Sustainability in procurement, manufacturing, and all across the supply chain has been driven by consumers – there’s no doubt about it,” says Bourne. “Companies have had to adopt a far more sustainable approach to their businesses due to this pressure. However, it is sometimes difficult to get the right historic data to see where sustainable practices could be brought in. But, nowadays, with the greater connectivity that new technologies afford the entire supply chain, companies have access to much more data to draw upon to make data-driven sustainability decisions. Unfortunately, a lot of this is still in siloed spreadsheets, but it is improving.” OCTOBER 2019

“SUSTAINABILITY IN PROCUREMENT, MANUFACTURING, AND ALL ACROSS THE SUPPLY CHAIN HAS BEEN DRIVEN BY CONSUMERS – THERE’S NO DOUBT ABOUT IT” — Anthony Bourne, Industries President of the Institute for Fiscal Studies (IFS),

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S U S TA I N A B I L I T Y

From the outside looking in, it could

to allow sustainability decisions to

seem that both sustainability and

be made,” affirms Bourne. “In a world

technology couldn’t be further apart.

moving towards a more sustainable

However, the whole point of sustain-

future, those companies which don’t

able technologies is to reduce waste

adopt new technologies now risk fall-

while maintaining efficiency. Without

ing by the wayside and missing out

leveraging technology and introduc-

on the benefits from a shift towards

ing new processes, how can compa-

greener business practices.”

nies expect to reduce their carbon

Through technology, companies

footprint? “All new manufacturing and

have been granted the opportunity

procurement purchases can be inte-

to utilise new tech to promote sustain-

grated and have complete traceability

ability initiatives. In a number of US cit-

OCTOBER 2019

“WITHOUT DIGITAL TECHNOLOGY, IT’S HARD FOR COMPANIES TO EASE THEIR POLLUTION FOOTPRINT OR MANAGE WASTE”

ies, including Washington DC and New

the collaboration can be successful

York City, an app called Greenease,

for businesses and the environment,

which directs its users towards green

if executed correctly. Another exam-

eateries and encourages consum-

ple of green technology is solar cell,

ers to make environmentally healthier

which converts energy from natural

choices, has been introduced.

light into electrical energy through the

The app only shows restaurants that

process of photovoltaics. By generating

source food from local, ethical and

electricity from solar energy, it equals

sustainable suppliers and allows its

less consumption of fossil fuels, in ad-

users to consciously make greener

dition to the reduction of pollution and

decisions. The blend of technology

greenhouse gas emissions.

and sustainable interests shows that

In a strategy+business article on 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

technology and sustainability, authors Nils Naujok, Henry Le Fleming and Naveen Srivatsav reiterated the importance to businesses of marrying innovation with sustainability. It was explained that: “Digital technology and environmental sustainability are often mutually reinforcing. Without digital technology, it’s hard for companies to ease their pollution footprint or manage waste. Without a full understanding of sustainability, the energy drawn by computers can be wasted. 70

Bringing digital prowess and sustainable practices together should be at the forefront of strategic thinking for any business — as a way to differentiate itself and gain long-term viability among customers, regulators, and the communities where businesses operate. In fact, it may even be essential.” Following the introduction of the corporate social responsibility (CSR) strategy, companies now play an integral part in giving back to society as firms seek to implement sustainable strategies and target a greener future for its own respective operations and the environment as a whole.

OCTOBER 2019

“WITHOUT LEVERAGING TECHNOLOGY AND INTRODUCING NEW PROCESSES, HOW CAN COMPANIES EXPECT TO REDUCE THEIR CARBON FOOTPRINT?”

“Sustainability is about delivering on our promise and purpose to the wider community, while embracing and adapting to uncertainties,” says Yeoh Oon Jin, Executive Chairman of PwC Singapore. “During the year, we have taken a multi-pronged approach through technology and digitalisation to not only create a workplace for the future, but also a workforce of the future made up of individuals who are able to continue giving back to the economy and drive positive change.” With climate change affecting everyone, all companies have a responsibility to do their part and review how operations are conducted to see if positive changes can be embraced. The overall aim is simple: lessen the impact of climate change for future generations and technology can act as a catalyst. With more thought clearly going into how technology can be used as an accompanying tool for sustainability for businesses, the hope is that the future can become a greener place.

OCTOBER 2019

Software companies worldwide Supply Chain Digital counts down the top 10 software companies all over the world WRITTEN BY

SEAN GALEA-PACE

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T O P 10

Epicor [ USA ]

Founded in 1972, Epicor provides industryspecific business software centered around manufacturing, distribution, retail and services businesses. Serving more than 20,000 customers in 150 countries worldwide, Epicor operates with a firm mission statement: to drive growth for customers having been recognised as the leading provider of industry-specific software solutions and services. Offering a range of cloud platforms, Epicorâ&#x20AC;&#x2122;s cloud solutions power growth without limits.

Steve Murphy, CEO â&#x20AC;&#x201D;

$800mn Approximate revenue

3,900

Approximate number of employees

Austin, Texas OCTOBER 2019

Kinaxis

[ CANADA ]

Kinaxis specialises in streamlining processes, breaking down silos and planning for all parts of the supply chain. Founded in 1995, the company operates with the mantra; know sooner, act faster and make more profitable decisions. Kinaxisâ&#x20AC;&#x2122; integrated supply chain planning platform combines human and machine intelligence to enable its clients to make joint business decisions faster. Through this, the benefits are an increase in revenue, reduced costs and less risks.

John Sicard, CEO â&#x20AC;&#x201D;

$117mn Approximate revenue

500

Approximate number of employees

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

Destination: Cloud

Added value through innovation The cloud is the future! We’re opening up entirely new opportunities for our clients by migrating applications to the cloud and transforming them there, with the option of cloud-native development. As one of the world’s largest independent provider of IT and business services, we’ve also racked up many years of experience in cloud architecture, security, governance, and operations. Independent experts have confirmed our industry-leading expertise: the ISG Provider Lens™ has awarded us “leader” status in the “Public Cloud Transformation” and “IaaS – Enterprise Cloud” categories in 2019. Let us help you make your cloud enterprise-ready, too!

For more information, go to: de.cgi.com

Ivalua

[ USA ]

The Procurement Empowerment Platform, Ivalua, is recognised as a Leader by Gartner in the 2019 firm’s Procure-to-Pay Magic Quadrant. Ivalua has a leading 98% customer retention rate and combines its flexibility to grow, rapid time to value, best of breed capabilities to establish a complete, unified suite. Ivalua empowers supply chain leaders to fully digitise all procurement and supply chain processes, manage spend categories as well as improving transparency and data quality. Founded in 2000, Ivalua’s Source-to-Pay suite is utilised by more than 300 leading companies globally.

David Khuat-Duy, CEO —

$100mn Approximate revenue

300

Approximate number of employees

Redwood City, CA w w w.suppl yc ha i ndi gi ta l. com

T O P 10

Jaggaer [ USA ]

With the goal of providing a simpler and more rewarding experience to all stakeholders in the procurement process from source to pay, Jaggaer seeks to simplify the procurement process. By enabling a full digital transformation across the entire procurement spectrum from source to pay for a range of spending in a variety of industry sectors, JAGGAER ONE enables modular solutions on a unified, digital platform that integrates companiesâ&#x20AC;&#x2122; ERP and accounting systems efficiently.

Zia Zahiri, CTO â&#x20AC;&#x201D;

$280mn Approximate revenue

1,100

Approximate number of employees

Morrisville, North Carolina OCTOBER 2019

IBM Watson

[ USA ]

IBM Watson allows companies to avoid repetitive tasks by allowing teams to focus on more creative, higher-value work. IBM Watson is helping to shape the future of AI and aims to transform industries and society through leveraging disruptive technologies. IBM Watson offers six, powerful ways to enhance how businesses operate. These are: accelerating research and discovery, enriching interactions, anticipating and preempting disruptions, recommending with confidence, scaling expertise & learning and detecting liabilities and mitigating risk.

Hilary Kerner, CMO â&#x20AC;&#x201D;

$79.5bn Approximate revenue

350,600

Approximate number of employees

Armonk, New York w w w.suppl yc ha i ndi gi ta l. com

When our clients want to move fast and make things, they turn to us! Nagarro drives technology-led business breakthroughs for industry leaders and challengers. Some of our clients include ASSA ABLOY, the City of New York, DHL, GE, Lufthansa, Siemens and T-Systems. Working with these clients, we continually push the boundaries of what is possible to do through technology, and in what time frame. Today, we are more than 5,000 experts across 21 countries. Together we form Nagarro, the global services division of Munich-based Allgeier SE.

“We need partners like Nagarro who help innovatively and technologically to take place in the digital transformation.” Dr. Roland Schütz, CIO of the Lufthansa Group, talks about the secret sauce of this successful and trusted partnership.

LEARN MORE

/company/nagarro

/nagarro

/nagarroinc

nagarro.com

Coupa Software

[ USA ]

Founded in 2006, Coupa Software provides a unified, cloud-based spend management that connects hundreds of businesses that represent the Americas, EMEA and APAC with millions of suppliers worldwide. Coupa is recognised as the only Business Spend Management platform that empowers companies to spend smarter to maximise the value of every dollar that organisations spend. Using the five initials in its name, Coupa prides itself on providing services that are: Comprehensive, Open, User-centric, Prescriptive and Accelerated.

Chandar Pattabhiram, CMO â&#x20AC;&#x201D;

$260mn Approximate revenue

1,300

Approximate number of employees

San Mateo, California w w w.suppl yc ha i ndi gi ta l. com

T O P 10

Infor [ USA ]

As a global enterprise firm that provides software products for all aspects of a business, Infor develops complete industry suites in the cloud and efficiently deploys technology that puts the user experience first. Infor is versatile and can cater to a variety of different industries to seek in-depth solutions that achieve significant results. With 168 offices worldwide, Infor serves over 68,000 organisations and helps them to overcome market disruptions and realise a business-wide digital transformation.

Kevin Samuelson, CEO â&#x20AC;&#x201D;

$2.8bn Approximate revenue

15,000

Approximate number of employees

New York, NY OCTOBER 2019

JDA Software

[ USA ]

With a mission to empower companies to better predict, make and deliver exactly what its customers require, JDA delivers a more autonomous supply chain for 4,000 of the world’s leading companies, including 75 of the top 100 retailers. Through the JDA SCM Platform, it is infused with AI and machine learning (ML) optimization technology in collaboration with an intelligent, efficient API-led architecture powered by MuleSoft. The platform is built to deliver innovation to the world’s largest businesses and runs on Microsoft Azure to provide tested scalability, maturity and security.

Desikan Madhavanur, EVP —

$133mn Approximate revenue

5,000

Approximate number of employees

Scottsdale, Arizona w w w.suppl yc ha i ndi gi ta l. com

T O P 10

02 Oracle SCM Cloud [ USA ] With more than 25,000 customers using Oracle’s cloud every day, the firm offers a trusted cloud platform that oversees 57bn daily transactions. Oracle Cloud has been 84

developed for the entire business, with applications that can be consumed as an organisation grows. Oracle’s complete suite is built on a single data model that connects end-to-end business processes and enables customers to transform their organisations with intelligence. Oracle seeks to empower all companies, from startups to global enterprises, and provides over 1,000 cloud applications that can be translated in 35 different languages and used in 175 countries.

OCTOBER 2019

Mark Hurd, CEO —

$40bn Approximate revenue

137,000

Approximate number of employees

Redwood Shores, California

CLICK TO WATCH : ‘ORACLE SUPPLY CHAIN MANAGEMENT CLOUD’ 85

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T O P 10

SAP Ariba [ USA ] Topping the list is SAP Ariba, the leading global Spend Management Network, that allows companies to monitor spending and cut costs by enabling buyers and suppliers to work together. Originally acquired by SAP in 2012, SAP Ariba is recognised as the go-to place for companies to connect to get

Darren Koch, Chief Product Officer â&#x20AC;&#x201D;

$27.3bn Approximate revenue

business done. Through its Ariba Network, 4.2mn companies in over 190 countries are 86

connected, unlocking new opportunities and collaborating on transactions to further its business relationships. Transacting $2.9trn costs in business commerce every year, the Ariba Network controls costs, manages spend and minimizes risks through data-driven insights to streamline the user experience. More than on the Ariba Network to uncover new opportunities and work together on transactions with the view to further their relationships. With over $7.9bn of goods and services traded every day, SAP Ariba is considered the largest business-to-business network worldwide.

OCTOBER 2019

3,636

Approximate number of employees

Palo Alto, California

CLICK TO WATCH : ‘A DAY IN THE LIFE: PROCUREMENT WITH SAP ARIBA’ 87

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LAB VENTURES

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

1â&#x20AC;&#x201C;3 OCT 2019

Post-Expo 2019 90

[ AMSTERDAM, NETHERLANDS ] The three-day event at the beginning of

14â&#x20AC;&#x201C;16 OCT 2019

3PL & Supply Chain Summit: Europe [ BRUSSELS, BELGIUM ]

October will show off products such as

With 400 attendees and 70 leading

security solutions and safety products,

speakers in attendance, the Belgium

consultancy and management strate-

event is set to be full of interactive

gies, post-office counter solutions,

sessions such as coaching sessions,

automation, e-commerce technology

live interviews and 1-2-1 meetings.

and digital marketing in the Automotive,

Supply chain executives from a range

Logistics and Transportation industries.

of manufacturers, retailers and

The event will play host to global visi-

Consumer Packaged Goods are

tors and will be used as a platform to

expected to attend. The event will be

present new innovations and products

centered around four core themes

to a professional audience of business

which are: Agility, Visibility, Respon-

leaders and directors from the postal,

sive and Growth.

parcel and logistics industry.

OCTOBER 2019

16–17 OCT 2019

The Responsible Supply Chain Summit 2019 [ AMSTERDAM, NETHERLANDS ] Following its largest and most successful conference to-date, The esponsible Supply Chain Summit is set to return in 2019, bringing together more than 250 CEOs and sustainability and supply

23–25 OCT 2019

36th International Supply Chain Conference [ BERLIN, GERMANY ]

chain practitioners to discuss and

In one of Europe’s top annual business

shape the future of responsible supply

gatherings to discuss logistics and

chains. Previous speakers include Ste-

supply chain management, the three-

ven Stone, Chief Resources & Market

day event brings industry leaders

Branch at the United Nations Environ-

together to tackle the current issues

ment, David De Schutter, Innovation

and future themes in the supply chain

& Technology Officer for AB InBev and

management sector. On average, the

Joe Franses, Vice-President, Sustain-

event attracts over 3,500 attendees

ability at Coca-Cola. With speakers yet

from over 40 countries, 120 speakers

to be announced for 2019, it looks set

and welcomes more than 200

to be another unmissable event on the

exhibitors every year.

global calendar.

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

26-27 NOV 2019

29-30 OCT 2019

Robotics & Automation Exhibition 2019 [ COVENTRY, UK ]

Data, Intelligence & Technology Forum 2019 [ LONDON, UK ] The Data, Intelligence & Technology Forum is a two-day event focused on improving the end-to-end digital strat-

Spread across two days, the Robotics

egy for procurement professionals the

and Automation Conference provides

world over. Attendees will break down

attendees with free educational con-

the challenge of talent acquisition and

tent by industry experts and leading

retention, as well as the changing skill

suppliers. As the most in-depth pro-

sets required to be a procurement pro-

gramme with fresh insights on the latest

fessional both today and in the future.

cutting-edge technology, the event has

With technology continuing to rede-

previously included speakers such as

fine the procurement landscape,

Andrew Southgate, General Manager

peers will share examples of best

of EMEA and Richard Foster, Robotics

practice and how to leverage data and

Development Manager at DHL Supply

technology to streamline and acceler-

Chain, UK & Ireland.

ate the digital transformation journey of procurement.

OCTOBER 2019

9-10 DEC 2019

International Conference on Supply Chain Planning in Uncertain Environments [ LONDON, UNITED KINGDOM ]

3-4 DEC 2019

Supply Chain Event [ PARIS, FRANCE ]

The conference is a federated organisation that aims to provide a range of diverse scholarly events for presenta-

With 98 exhibitors, 3,875 participants

tion within the conference programme.

and 38 conference sessions and

With the event set to bring leading aca-

workshops underway, it is hoped that

demic scientists, researchers and

the Supply Chain Event will become

research scholars together to exchange

the European meeting place for Supply

their experiences and enable research

Chain Managers. There are set to be

results on a range of different aspects

exhibitors from five fields of expertise

of Supply Chain Planning in Uncertain

including; information systems &

Environments. The meetup will enable a

traceability, steering & planning solutions,

platform for premier interdisciplinary to

transport & logistics solutions,

be created in order to discuss the most

automation & robotics solutions and

recent innovations, trends and concerns

consulting & services.

in the supply chain field.

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ELEMICA

OCTOBER 2019

DRIVING DIGITAL TRANSFORMATION IN SUPPLY CHAINS With the importance of remaining agile and lean fundamental to the success of all companies in the supply chain space, the influence that new technology is having on firms is clear. In a bid to help companies achieve a full digital transformation, Elemica connects systems to automate supply chain transactions and facilitate collaboration among its network of trading partners. As the leading cloud-based digital supply network for the global process industries, the firm operates with a mission statement of providing visibility into companiesâ&#x20AC;&#x2122; supply chains. Offering an end-to-end digital supply network that processes manufacturing enterprises and their trading partners to digitally transform supply chains, Elemica integrates processes and harvests visibility in the supply chain as it helps companies accomplish their digital transformation ambitions through a full suite of Elemica applications. w w w.suppl yc ha i ndi gi ta l. com

ELEMICA

Rich Katz, Chief Executive Officer (CEO) of Elemica, has been working at Elemica for 16 years, having started as Senior VP Product Management before becoming Chief Technology Officer and ultimately moving onto his current role as President in 2018. Katz reflects on his firmâ&#x20AC;&#x2122;s digital transformation strategy and discusses the benefits that it provides to not only Elemica, but to its customers too. How important is procurement 96

and supply chain transformation to Elemica? Digital transformation is fundamental to Elemica and our customers. We

to reduce errors, improve compliance,

facilitate their digital transformation

lower admin time, reduce expedited

within the supply chain by automating

freight costs, and much more.

business processes from end-to-end, helping businesses to gain efficien-

With digital transformation of the

cies within their procurement, produc-

supply chain vital, in what ways does

tion, transportation, manufacturing,

Elemica incorporate its platform?

and other business operations.

Our platform has been implemented

By removing paper-based business

by major process manufacturers, and

processes, our customers can

we have thousands of suppliers and

balance inventory, working capital,

logistics service providers that

and customer service levels while

connect to it. Our platform helps

improving the Total Cost of Ownership

businesses accelerate their digital

(TCO). Automating processes helps

transformation. The network digitises

OCTOBER 2019

“ The network digitises transactions with all network partners, taps into modern data sources, and integrates external data to internal operating systems” — Rich Katz, CEO, Elemica 97

transactions with all network partners,

The Elemica team has years of

taps into modern data sources, and

experience in design, engineering,

integrates external data to internal

implementation, and service. We have

operating systems. Companies

visionaries on our team. It is essential

establish a connection to Elemica’s

to drive these visions to relate to

platform and reuse that connection to

customer issues and at the same time

access all other partners on the

address challenges in the industry as

network, automate various processes

a whole.

across those partners and gain visibility into their supply chain.

How did Elemica begin and what is the vision for the next few years?

How instrumental are your leader-

Elemica started when 20 top global

ship skills to the future success of

chemical companies got together to

your team?

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ELEMICA

these companies to buy and sell to/

and data sharing so that critical

from each other. About a decade ago,

business decisions could be made

we redeveloped our network, in

by well-informed participants.

response to what the customer wants,

For the future, Elemica will continue

in order to incorporate new technolo-

to add functionality to the network

gies that made the network become a

that will improve interoperability

platform that would make it easier for

between disparate systems and

companies to conduct commerce with

networks. Next-generation technolo-

each other while addressing other

gies like blockchain, machine learning,

business processes. We made it

IoT, supply chain quality, and others

easier for business trading partners

are being tested, implemented, and

to connect to the network and added

integrated into the network and

more intelligence to the transactions

Elemica offerings.

98 E X ECU T I VE P RO FI LE

Rich Katz Rich Katz, a 1990 graduate in Electrical Engineering from Georgia Tech has been with Elemica for over 16 years in roles as President, Chief Technology Officer, Senior Vice-President of Product Management, and Vice-President of Research and Development. Rich is responsible for setting the overall direction of Elemica’s Technology Roadmap, Market Positioning, and will oversee Corporate and Product Marketing. Prior to Elemica, Mr. Katz was the Director of Implementation Services for ATT’s Enterprise’s Ariba Practice (formerly USI) and has held Senior Manager positions in Arthur Andersen’s Advanced Technology and ERP practices.

OCTOBER 2019

CLICK TO WATCH : ‘ELEMICA ACCELERATES YOUR DIGITAL TRANSFORMATION’ 99 What does Risk Management mean

data, correlating incidents with a

to you, and how can Elemica assist?

customer’s network assets, orders

Companies today are hit with supply

and shipments to detect and under-

chain disruptions from all angles

stand the impact of disruptive events.

including bad weather, late payments,

Elemica customers can discern which

loss of transport mode, socio-econom-

orders and products are impacted

ic, political issues, and more. Enterpris-

by location, what alternative shipping

es need to be prepared to address and

methods exist and the economic

mitigate supply chain risks to continue

impact if orders are delayed. Elemica

providing value, to exceed customers

Risk is a visibility application incorpo-

and partners expectations, and

rating supply chain threat detection,

maintain brand integrity.

qualification, early warning, and

Elemica provides a Risk Management

network assessment. Understanding

solution called Elemica Risk. It integrates

events that disrupte their ability to

with weather and global risk event

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ELEMICA

to mitigate before interrupting service saves Elemica’s customers from losing significant revenue. What do you feel are the major trends you are observing in the supply chain industry and how is Elemica responding to them? Companies are always looking for ways to increase revenues, sustain growth, and improve the customer experience. This can happen when the supply chain is digitally trans100

formed, providing greater visibility into what is happening across the enterprise. We are seeing companies wanting to integrate outside of their four walls. This can be done with a collaborative network that digitally connects all trading partners within a company’s ecosystem quickly, easily and cost effectively. Global supply chains are continually being regulated by government regulations and compliance requirements. To help manage compliance, supply chain and quality management leaders organise material and shipment information with appropriate certifications. Through Elemica OCTOBER 2019

“ Elemica Quality’s proactive alerts help to prevent non-conformance and save monies while ensuring customer satisfaction” — Rich Katz, CEO, Elemica

Quality, alerts can also be set up to know well in advance if certifications are about to expire or deviations in material are occurring during the transportation process. Elemica Qualityâ&#x20AC;&#x2122;s proactive alerts help to prevent non-conformance and save monies while ensuring customer satisfaction. We are seeing trends in the integration of emerging technologies (Blockchain, Machine Learning, and AI) within the supply chain, from pilot projects to full production. In a Blockchain pilot programme, Elemica and crossinx, a network for financial business collaboration solution, exist as nodes on a public blockchain, connecting structured data with unstructured data, such as documents, to enable multi-tier payment. In the pilot, two large global chemical companies facilitate document and data transfer of invoices, purchase orders, delivery tenders and proof-ofdelivery posts. With the ability to connect to a digital network, blockchain functionality can be made accessible to support a many-tomany connection of companies, facilitating payment processing. w w w.suppl yc ha i ndi gi ta l. com

101

ELEMICA

Do you have any involvement in

do you manage to continue to

award programmes either internally

innovate and set the trends?

or externally or both?

Elemica continues to drive innovation

Elemica applies for numerous awards

in its digital supply network and supply

for executives, for the business, for our

chain applications to bring improve-

technology, and for the supply chain

ments in efficiency and productivity

industry. We have won a significant

across the supply chains of our

number of awards in these categories.

customers. We continually strive to drive value for clients by bringing

In terms of innovation, how impor-

greater efficiencies to their organisa-

tant is that to Elemica? In what ways

tions through improved collaboration

102

OCTOBER 2019

and lower supply chain spend. As part of continued innovation,

the big drivers in transformation are at the moment?

Elemica participates in leading

In today’s competitive world, businesses

industry trends and forums, listens to

undergo a digital transformation of their

customers, and follows social and

supply chains to sense, respond and act

business market trends that drive our

more effectively with the ultimate driver

product roadmaps across vertical

to improve efficiencies, bottom-line

industries and geographical markets.

profits and customer satisfaction. Companies join Elemica’s Digital

If you had to look at the supply chain

Supply Network (DSN) because it

industry overall, what do you feel

captures event and transaction data across the entire supply chain. This creates a critical mass of real-time

“ We continually strive to drive value for clients by bringing greater efficiencies to their organisations through improved collaboration and lower supply chain spend” — Rich Katz, CEO, Elemica

business information that allows partners to collectively sense and react properly to supply and demand changes and risks in the market. Participants gain a comprehensive picture of business performance both inside and outside their four walls, which allows them to generate strategic and actionable insights from their supply chain network, leading to more mutually beneficial relationships and a clear competitive edge. Companies also want to eliminate silos within their own four-walls to enable interoperability and integration between other departments’ systems using open APIs, which makes the integration easier and more cost-effective. w w w.suppl yc ha i ndi gi ta l. com

103

ELEMICA

Finally, many companies are seeking technology that helps increase revenue by connecting the longtail of the supply chain for complete visibility and greatest agility. The Elemica Digital Supply Network allows businesses to easily buy and sell from each other via automated processes. With the future in mind, how do you ensure Elemica continues to grow? We strive to continually shape our products to include both new technologies and also address changing 104

market demands. Elemica â&#x20AC;&#x2DC;s network and supply chain solutions are built with cloud technologies, making integration, support and maintenance much easier. With cloud technologies,

supply chain network by offering

most customers can easily upgrade

greater self-service tools allowing

their software without having to use

companies to more easily connect

any IT support. The new develop-

with their trading partners. Our tools

ments are constantly incorporated

clean and enrich the data shared

into our network platform and the

across the network.

application suites we provide are able

We are also working on incorporating

to adapt and be flexible in support of

more next-generation technologies

industry initiatives.

into our solutions, such as artificial

Elemica is committed to providing

intelligence, IoT and machine learning.

solutions and a platform that is easy,

We offer smart contract development

cost-effective, and enables quick

to address specific industry and

connectivity. We have extended our

geographical needs.

OCTOBER 2019

â&#x20AC;&#x153; We strive to continually shape our products to include both new technologies and also address changing market demandsâ&#x20AC;? â&#x20AC;&#x201D; Rich Katz, CEO, Elemica

Our innovations also connect to

105

food or as part of processing it. These

larger societal issues. For example,

methods and the execution of their

Elemica Quality improves customer

processes are invisible to consumers

satisfaction, corporate profits, and

but are driven by a focus on quality, i.e.,

product quality. Morton Salt uses

the performance of their products for

Elemica Quality to reduce the cost

which they are intended.

and time associated with the production of customer-bound certificates. As consumers, we are generally most familiar with the salt we use in food, but even here, the story is not as simple as it sounds. Different methods are employed to incorporate salt into our w w w.suppl yc ha i ndi gi ta l. com

Zurich Insurance 106

HOW PROCUREMENT IS SET UP TO DELIVER BUSINESS OBJECTIVES, TODAY AND TOMORROW Jaime Paiva, Regional Head of Sourcing and Procurement EMEA, shares how Zurich Insurance has transformed its Sourcing and Procurement function from an order taker to a recognised business partner WRITTEN BY

AMBER DONOVAN-STEVENS PRODUCED BY

JUSTIN BRAND

OCTOBER 2019

107

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ZURICH INSURANCE GROUP

n many large organisations, the sourcing and procurement function is often overlooked.

At Zurich Insurance, however, sourcing and procurement is becoming a driving force for innovation, customer value and sustainability, while playing a key role in enabling the business to fulfil its strategic objectives. When Jaime Paiva, Regional Head of Sourcing and Procurement EMEA, first joined Zurich in 2012, the company was 108

in the midst of outsourcing its procurement function. He explains: “The retained procurement organisation was down-sized and predominantly responsible for managing the service delivery from our BPO partner. The model with the BPO was based on the services being delivered out of hubs and so we lost the proximity to our internal stakeholders.” However, by the end of 2016, the procurement team at Zurich started a full review of the model. “Zurich was about to start a new strategic cycle and we wanted to ensure we were prepared to support our new objectives,” recalls Paiva. Zurich’s Sourcing and Procurement leadership team decided to enhance the function’s capabilities in order to provide more support to the local business OCTOBER 2019

109

“ Our vision is for our procurement practices to drive positive societal, environmental and ethical outcomes” — Jaime Paiva, Regional Head of Sourcing & Procurement EMEA, Zurich

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110

CLICK TO WATCH : ‘ZURICH INNOVATION CHAMPIONSHIP 2020’

units as part of the new strategy. “We

internal stakeholders, with people that

did not want to give up the learnings

would understand their needs and be

and successes that the outsourcing

able to provide specialist knowledge,”

model gave us, but we knew from dis-

says Paiva. “Ultimately, we wanted to

cussions with our internal stakeholders

have our own resources focused where

that they were expecting more than

they were needed and give the business

cost-cutting; they wanted improved

the necessary agility to make decisions

capabilities,” says Paiva.

according to their needs.”

To meet these expectations and to position the function more strategically within the organisation, Zurich started to build its sourcing and contracting

THE TRANSITION TO IN-HOUSE PROCUREMENT: “As we started discussing our plans

capabilities internally. “Our goal was

with our business stakeholders,

to offer better services closer to our

we identified recurring ‘pain points’

OCTOBER 2019

regarding the outsourced model.” Paiva

measurement has evolved since early

goes on to list the most frequent ones:

2016, increasing from a score of -22

• The BPO had limited understanding

to +74 in 2019,” says Paiva. From the

of the insurance industry and business

previous operational model, Zurich

needs from Zurich.

kept the Procure-to-Pay (P2P) lifecycle

• Excessive handovers for end-to-end sourcing and contracting lifecycles.

• Lack of dedicated human resources from the BPO.

outsourced. “We contracted Genpact for operational procurement and accounts payable for a slightly-altered, cost effective Procure-to-Pay (P2P)

To measure customer satisfaction,

lifecycle. Zurich also worked on

the Sourcing and Procurement function

improving the relationship with the

also introduced the Net Promoter Score

BPO partner. “The partnership with

methodology (NPS) to gather immedi-

Genpact allows us to focus on strate-

ate and specific feedback from internal

gic or business critical topics instead

stakeholders. “It’s very rewarding to

of having resources burned with oper-

see how our customer satisfaction

ational or tactical aspects of the

E XE CU T I VE PRO FI LE

Jaime Paiva Jaime Paiva heads Sourcing and Procurement for the EMEA region at the insurance giant Zurich. Paiva is a seasoned sourcing leader with extensive experience in direct and indirect sourcing, as well as procurement operations. Before joining Zurich Insurance, Paiva held different leadership roles with multinationals such as Siemens and Nokia in Latin America, Europe or globally. Originally from Brazil, he’s been living in Germany since 2007.

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111

Stop avoiding change. Start embracing it. Take the compromise out of procurement with KPMG Powered Enterprise | Procurement. Access leading procurement practices already trusted by many organizations around the world.

Change is critical for staying ahead. It is especially so for procurement steeped in old habits that could slow valuable progress. To transform to a more modern way of working goes beyond technology. It requires a much wider, strategic conversation, recognized at board level. That’s achievable with KPMG Powered Procurement, which is a cloudbased transformation approach designed to go beyond simple cost savings, to help you better manage internal and external ecosystems, as well as the networks and alliances that add value.

Stop planning for today. Start getting future-ready. These five steps could help make your procurement transformation a success.

1. Know what success means

Everyone has a different view of success – whether that’s increased efficiency or improved customer experience. It’s important to have a common vision of the business outcomes that are wanted.

2. Flex to political and business change

Procurement is becoming more complex – thanks to greater regulation, political change, and rising consumer expectations. The temptation is to avoid change and simply cut costs. That misses a big opportunity to modernize procurement and use that change to drive business value.

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US risk management and insurance services company saw the following results.3

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tripled spend under management in first two months

of manual invoicing moved to e-invoicing

of users adopted in first month

© 2019 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

3. Make the most of the cloud

You’re on the cloud, but that is only a first step. You need to get more from this new platform. So, decide what systems you can migrate to the cloud and how to use them to spin up new services and procedures, rapidly.

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Without the necessary digital skill sets it might be difficult for procurement to take advantage of new systems and technologies. Specialists are required. As they are in short supply, consider encouraging existing staff to retrain.

5. Love your data

How good is your data? Unfortunately, problems are often only discovered when it’s too late to do anything. Given the myriad of data sources within a complex supply chain, it’s critical to clean your data before any major change.

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of CEOs want to transform their organization’s operating model radically4

of CEOs see technological disruption as an opportunity not a threat4

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…like Zurich. Global insurer Zurich worked with KPMG member firms to transform its procurement processes. Central to the success of our collaborative approach was a three-day, interactive ‘U-Collaborate’ project launch event. This meeting established core design principles and challenges, so everybody involved was up to speed with the key aims of the program that still steer it today.

KPMG Powered Procurement Advisory – Case Study, 2018

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Harvey Nash/KPMG CIO Survey, KPMG International 2018

80%

of CIOs say their digital strategy is not yet effective enough to manage this5

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“ U-Collaborate was a tremendous success. It quickly brought everybody involved up to speed and aligned on some principles that still steer the programme today” — Jaime Paiva, Regional Head of Sourcing & Procurement EMEA, Zurich

hindered getting accurate MI on some very basic levels and spend analysis for our category strategies,” says Paiva. Zurich analysed the marketplace and selected Coupa, predominantly for its user-friendly interface. To compliment this new P2P platform, Zurich also partnered with KPMG to assist with the design and implementation of Coupa in 2017. “It was important for us to have access to best practices from other organisations as well as the technical expertise to help during the multi-year transition to Coupa, and they offered that through KPMG’s Powered Procurement assets and tools,” says Paiva.

Source-to-Pay (S2P) lifecycle in a costefficient way.”

Zurich initially focused on deploying the sourcing and contracting modules, phasing out the P2P and employee

TRANSITION TO A NEW IT PLATFORM:

expenses modules in early 2018.

Zurich were using an outdated P2P

“Moving from an on-premise system

platform. This platform was implemented

to a cloud-based solution required

in eight different countries more than

alignment on some fundamental

a decade previously and was custom-

principles,” recalls Paiva.

ised locally. “In 2017, we ran a bench-

In January 2018, KPMG hosted

mark and the conclusion was the

a 3-day event in London called

maintenance of our P2P platform was

‘U-Collaborate’ designed to increase

very complex and expensive. The

understanding of the platform, share

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ZURICH INSURANCE GROUP

and to address design and programme

The UK was the first country to

challenges. “U-Collaborate was a tre-

implement Coupa, which went live in

mendous success. It quickly brought

November 2018, followed by Switzerland

everybody involved up to speed and

in May 2019. Spain and Italy are

aligned us on some principles that still

scheduled to migrate to Coupa in

steer the programme today.”

early 2020, along with North America,

Some of the key principles agreed upon at U-Collaborate included:

• The internal customer and employee

Germany and Austria later in that year. “Coupa is the Group’s standard platform for S2P and employee expenses and

experience is paramount to the design.

we’re expecting the work to continue

• The entirety of the company would

for some time after the original coun-

function under one standardised design.

tries in this rollout are completed.”

• No customisation of technology: 116

‘Adopt not Adapt’.

• The platform must be fit for purpose across all business units. “The success of U-Collaborate con-

THE CONTINUATION OF THE JOURNEY: “We’ve set the building blocks for the function to play a much more important role in enabling the business to fulfil its

firmed the need for excellent change

strategic objectives, evolving to a place

management and communication

where procurement is recognised

strategies,” says Paiva, “Changing an

internally as a driver of the company

IT platform for indirect spend impacts

agenda.” Evidence of this materialising

the full organisation and our supply

is the role that the procurement team

base. To add to this challenge, our end

plays in relation to Zurich’s sustainabil-

users have been using the same pro-

ity agenda. In April 2019, the company

cesses and tools for over 10 years,

announced its aspiration to be known

and were accustomed to a high degree

as one of the most sustainable busi-

of customisation and functionality. We

nesses in the world. It followed this

appreciate how difficult it is for end users

up in June by becoming the first insurer

to migrate to a SaaS application and the

to sign up to the United Nations’

need to adopt new ways of working.”

business pledge to limit the global

OCTOBER 2019

“ We did not want to give up the learnings and successes that the outsourcing model gave us, but we knew from discussions with our internal stakeholders that they were expecting more than cost-cutting; they wanted improved capabilities”

temperature’s rise to 1.5°C above preindustrial levels. Then, it set a new Operational Sustainability target to drastically reduce paper and plastic consumption, while also committing to use 100% renewable power in its global operations by the end of 2022. In early 2016, Zurich UK became the first insurance company to sign

117

— Jaime Paiva, Regional Head of Sourcing & Procurement EMEA, Zurich

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ZURICH INSURANCE GROUP

$51.6bn Approximate revenue

1872

Year founded

54,000+ number of employees

118

OCTOBER 2019

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ZURICH INSURANCE GROUP

up to Social Enterprise UK’s ‘Buy Social Corporate Challenge’, which committed 10 large UK companies from diverse industries to increase their spend with social enterprise firms. The ‘Buy Social’ ethos is completely aligned with Zurich’s Purpose and Values. Since then, Zurich has been working directly with organisations like Wildhearts, a stationary producer which uses its profits to fund microloans in the developing world and entrepreneurial training in UK schools; 120

Ninety, an innovation consultancy that gives 90% of its distributable profits back to charity; and From Babies with Love, a promotional items provider that gives 100% of its profit to orphaned and abandoned children around the world. “It’s important to clarify that social enterprises are not charities, but companies with primarily social objectives whose surpluses are principally reinvested in the business or in the community, rather than being driven by the need to maximise profit for shareholders and owners,” says Paiva. “Most of the companies we work with are providing career development OCTOBER 2019

opportunities to people who otherwise have limited prospects for formal employment or reinvesting a substantial part of their profits into social initiatives or charity.” Zurich’s goal is to embed this practice in the way it does business with its supply base and its supplier’s suppliers. “We have a commitment to ensure fair business opportunities and, in our experience, this is what these companies are asking us for. They don’t want special treatment, just the chance to prove their value, quality and ability to compete on equal terms with profit-oriented companies,” adds Paiva. “Our vision is for our procurement practices to drive positive societal, environmental and ethical outcomes, while playing a key role as an enabler of Zurich’s objectives. It will do this by making sustainability one of the key criteria in our sourcing decision making process.”

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122

Accelerating a sustainability drive with Schur Flexibles Group WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

CAITLYN COLE

OCTOBER 2019

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SCHUR FLEXIBLES

Martin Berlekamp, Head of Sustainability at Schur Flexibles Group, discusses the sustainability initiatives his firm is undertaking to help achieve a greener future

howcasing that actions speak louder than words, Schur Flexibles Group has proven how much of a priority sustainability is for

the firm. Having backed up claims that sustainability is at the forefront of decision-making following its recognition as the winner of FlexiClose’s 2018 German Packaging Award in Sustainability, Schur 124

Flexibles has established the 5R approach to a greener future: Recycling, Replace, Reduction, Renewal and Responsibility. To help achieve this goal, Martin Berlekamp, Head of Sustainability at Schur Flexibles Group, believes his company’s determination to transform the handling of plastics has been key. “We see our current sustainability transformation as a challenge because society is keen to change the treatment of plastics,” says Berlekamp. “As packaging takes up a high percentage of plastics being produced, we have to find a responsible way to handle sustainability along the value chain. As Schur Flexibles is well prepared with its current and new product portfolio, we can help our customers fulfil their sustainability goals which are often much more demanding than the ones requested by the legislation.” OCTOBER 2019

“ We see our current sustainability transformation as a challenge because society is keen to change the treatment of plastics” — Martin Berlekamp, Head of Sustainability of Schur Flexibles Group

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SCHUR FLEXIBLES

“ In addition to our 2025 target, we also have one for 2020 — we want to provide a recyclable solution to all markets” 126

— Martin Berlekamp, Head of Sustainability of Schur Flexibles Group

Schur Flexibles aims to make the majority of its products recyclable before 2025 and already possesses an array of recyclable products in its portfolio, with the company looking to ensure its product materials are responsibly sourced. Schur Flexibles is considered the best in the market in raw material consumption along with producing primarily recyclable packaging. “Sustainability is a clear management target and the company provides the resources to follow up,” affirms Berlekamp. “In addition to our 2025 target, we also have one for 2020 — we want to provide a recyclable solution to all markets. The aim now is to meet our short-term target and devise a strategy, project plan and ensure resources are in place for the 2025 one.” Although Martin Berlekamp admits that his firm’s 2025 sustainability targets are challenging, the firm is determined to align to the requirements of large supermarket chains. “There’s a lot of work to do. If you look at Carrefour, Tesco, Aldi or Lidl, they have their own sustainability programmes,” he says. “These are the

OCTOBER 2019

CLICK TO WATCH : ‘SCHUR - OUR MISSION’ 127 targets that customers would like to

– the proven concepts and estab-

see in their own shops. As a flexible

lished materials, the R&D pipeline,

film supplier, if you’re not capable of

management and entire staff of Schur

delivering recyclable solutions, then

Flexibles will lead us to being the

you won’t be in operation for very long.”

number one supplier of sustainable

Fritz Humer, Chief Sales Officer

packaging solutions. This is the most

(CSO) at Schur Flexibles Group, states

important part of the growth strategy

the company’s growth over the past

of the company.”

few years has been significant, and

“Everyone has become a lot more

the future is even more encouraging.

aware of what’s going on in the oceans,”

“We’re on an exciting journey with

says Berlekamp. “Since that time,

customers, markets and society having

customers are more sensitive about

a new way of looking at packaging

packaging materials, particularly

materials,” says Humer. “As a responsible

plastic ones. It’s become a key reason

company, sustainability is in our DNA

why the whole community is now w w w.suppl yc ha i ndi gi ta l. com

NIPPON GOHSEI offers eco-friendly and recyclable resins, SOARNOL™ (EVOH) and Nichigo G-POLYMER™ (BVOH), and provide a high level of technical support to create tailor-made product solutions. www.nippon-gohsei.com

We look forward to meeting you! Building 4.01

looking for sustainable alternatives.

With a clear idea of how to reduce

They’re coming into a circular economy

plastics consumption, Berlekamp

and it has been one of the biggest chal-

believes the best way to tackle

lenges because, in the past, the flexible

reduction is to utilise the thinnest

films industry was really developing

film to help reduce harmful emissions.

thin films using multiple polymers.

“The carbon footprint impact of packed

Recyclability is not a given if you have

foods is around 97%, with the addition-

different polymers, and this is why

al 3% coming from the packaging film,”

we’re trying to do more for less.”

says Berlekamp. “Nevertheless, we

OCTOBER 2019

have to take care of that 3% because

companies and associations that

if we reduce that to the sustainable

represents the entire flexible packag-

and even recyclable possible solution,

ing supply chain. “CEFLEX is very

then it enables us to decrease the

important and has an influence on

carbon footprint in the easiest way.”

European legislation because people

As a member of the CEFLEX and

are now listening,” he says. “I believe

Save Food initiatives, Schur Flexibles

it’s good that we have something

is accelerating its sustainability drive

independent coming from the industry

through these organisations. CEFLEX

and the value chain of packaging to

is the collaborative initiative that

examine how we can change the future

features a consortium of European

of packaging.” With one third of all food

E XE CU T I VE PRO FI LE

129

Martin Berlekamp Berlekamp studied chemistry at the university of Münster Germany. After finishing his doctoral thesis, he became a postdoctoral fellow to Finland. His first industry position was in a SME as “Head of Application Technology.” In 1999, he changed to a manufacturer of rigid films. During the following 12 years he had different roles in the company – always in the food packaging area. As the company expanded, he was responsible for the integration of the sites for food packaging films in Finland. Further projects called for additional expat periods in Spain and Portugal. Berlekamp joined Schur Flexibles Group as the Head of Sustainability for the entire Group in 2018 and began the challenge of facing the new Plastics Packaging Waste Directive as well as the high awareness of customers and the society regarding plastic packaging.

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SCHUR FLEXIBLES

wasted or lost, Save Food exists to drive innovations, promote interdisciplinary conversations and generate solutions to debates across the supply chain. In a joint effort with industry members, politics and civil society, the organisation seeks to collaboratively solve food wastage. “We can help to reduce food waste by ensuring that food is packed with a suitable and recyclable packaging film because it will have a bigger impact on cutting our carbon footprint than just reducing 130

plastic use,” notes Berlekamp. In order to ensure that food is packed correctly,

€520mn Approximate revenue

2012 Year founded 1,750 Approximate number of employees

OCTOBER 2019

Schur Flexibles has established a key partnership with Nippon Gohsei, a group company of Mitsubishi Chemicals and a producer of EVOH and PVOH providing an appropriate barrier between the product, oxygen and substances such as odd flavors that could contaminate the product. “You need a barrier against oxygen in order to protect valuable proteins like in fish, cheese and meat. We’re working closely with Nippon Gohsei - also a member of CEFLEX - in order to

“As a responsible company, sustainability is in our DNA” — Fritz Humer, Chief Sales Officer (CSO) of Schur Flexibles Group

131

develop tailor-made barriers and

bigger companies and two smaller

integrate them into our films.”

ones. We’re ambitious — the target

With a drive to grow through acquisi-

is for Schur Flexibles to be among the

tion as well as promoting growth

top five players in Europe. We have

organically, Berlekamp affirms the

to try and balance our growth in packag-

company’s target is to become one

ing materials and look at how we can

of the biggest companies in its field

gain market share from the competition

in Europe. “We positioned ourselves

following the launch of new products

in the market environment with our

in the market.”

sustainable and recyclable solutions early and have become – we’re proud to say – the best-in-class,” he affirms. “Since I joined, we’ve purchased two w w w.suppl yc ha i ndi gi ta l. com

132

American Tower: transforming supply chain into the digital era WRITTEN BY

GEORGIA WILSON PRODUCED BY

K ANE WELLER

OCTOBER 2019

133

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AMERICAN TOWER

Business Chief speaks to Collin Mugisha, Head of Supply Chain, American Tower, to discover how the business is digitally transforming its supply chain

A 134

merican Towerâ&#x20AC;&#x2122;s global portfolio of approximately 171,000 sites is composed of towers in advanced, evolving and

developing wireless markets, in various stages of wireless network deployment. It has selectively expanded internationally to complement its core US operations, as it believes that the network development trajectory seen in the US will ultimately be replicated overseas. Established in 1995, American Tower is one of the largest global Real Estate Investment Trusts (REITs) that operates and develops wireless and broadcast communications. Its portfolio includes: 171,000 communications sites with 41,000 properties in the US and 130,000 properties internationally. American Tower does not think in the short-term, it is here for the long haul, with ambitions to make wireless communication possible everywhere through its innovation, efficiency, growth and leadership.

OCTOBER 2019

135

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AMERICAN TOWER

“We’re still way behind to digitalise the systems and this isn’t good because lack of digitalisation causes a lot of inefficacy and increases cost” — Collin Mugisha, Head of Supply Chain EMEA, American Tower

136

Collin Mugisha, Head of Supply Chain (EMEA), American Tower, has worked in the Supply Chain industry for almost 20 years. In that time, he has had a broad scope of experience across procurement, logistics, warehousing, P2P processes, management of contractors, contracts, relationships, partnership building and use of technology in supply chains. After seven years of working at American Tower, Mugisha still loves his work with the company. He believes that American Tower’s “unique processes and systems” are key to its comOCTOBER 2019

E XE CU T I VE PRO FI LE

Collin Mugisha Mugisha is a self-motivated individual currently working with American Tower Cooperation as Head of Supply Chain (EMEA) in charge of procurement, logistics and warehousing and facilities. By the time of this appointment, Mugisha worked with ATC Uganda as the Head of Supply Chain Manager, Airtel Uganda Limited (Bharti Group) as the Head of Procurement, Hima Cement limited (Lafarge group) as Procurement Manager, Shell Uganda Limited, now VIVO Energy (Royal Dutch Shell group), in the roles of Logistics Coordinator, Secondary distribution manager and Project Team Head, VMI (Vendor Management Inventory) responsible for country distribution, planning, forecasting, reporting and performance management and monitoring, with a special focus in Strategic Planning and distribution. Previously, Mugisha had worked with British American Tobacco (BAT) as a Management Trainee, Procurement Officer and Leaf Export Supplier Account Manager in charge of all leaf planning, sales, outbound logistics and exports to various BAT sister companies and other clients in the international tobacco industry. Mugisha has 19 yearsâ&#x20AC;&#x2122; experience in supply chain. He has a masterâ&#x20AC;&#x2122;s degree in supply chain management, is a member of the Chartered Institute of Supplies and Procurement and a Certified International Procurement Professional CIPP.

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137

CLICK TO WATCH : ‘AMERICAN TOWER - 24/7 COMMUNICATIONS INFRASTRUCTURE’ 139

petitive edge, along with its process

break into new markets to “double its

across multiple cultures, its ambition

portfolio and double its possibility,” he

to expand into new markets and its

continues. “With this expansion,

long-term vision.

American Tower aims to give back to the African community by developing

VISION FOR AFRICA

community initiatives.” Nigeria is

American Tower – headquartered in

American Tower’s largest market in

Boston, Massachusetts – “has always

Africa and although there is significant

had the strategy to grow over a period

potential within the African market, it

of time,” says Mugisha. The company

is a sector that is not without its

now operates in countries such as

challenges. For example, current

India, Mexico, France, Germany and

power availability in Africa remains a

Brazil. In 2015, it opened its office in

limiting factor, due to technical sites

Nigeria, Africa, with the ambition to

needing 24/7 power. As a result, says w w w.suppl yc ha i ndi gi ta l. com

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“ I would like to have a scenario where we don’t even have to come into the office and are able to do all tasks from wherever” — Collin Mugisha, Head of Supply Chain EMEA, American Tower

form in order to integrate its targets into one platform for performance management, and has since been modifying its capabilities to best suit the company. “Performance management helps you identify goals, attributes and characters that you need to improve on. This is an incredibly important process,” explains Mugisha. “Whether its digitally or manually, performance management helps you become better at what you do, so if you do not evaluate your performance against what you are doing it becomes difficult to improve.” Mugisha asserts that the business continuously looks to digitise any inefficient processes: “The manual

Mugisha, “management of this side of

process of who does what, when they

the business is required at all times to

did it and why they did it is inefficient,”

ensure the company is in line with its

he explains. “Digitalisation of this

service level agreements.”

process will streamline operations in Africa and leave a trail to track for

DIGITALLY TRANSFORMING AMERICAN TOWER’S SUPPLY CHAIN

analysis of outcomes to help further

At American Tower, analysis and

far, Mugisha has implemented the

performance management is an

supply chain functions of the ERP

integral part of the supply chain

system to help with this process, with

process. From inception, the company

further changes being implemented

has rolled out the Oracle ERP plat-

when required to help foster improve-

develop and grow the business.” So

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141

$1,813mn+ Approximate revenue

ficient for cost management. To further digitalise supply chain, Mugisha wants to eliminate office space entirely for tasks that can be done from any location, such as mak-

1995

Year founded

5,200

Approximate number of employees

ing approvals for orders. “I would like to have a scenario where we don’t even have to come into the office and are able to do all these tasks from anywhere. I don’t have to be in the office to make approvals about an order or a purchasing position for example,” says Mugisha. Additionally, he wants to “be able to automate each and every process” that is in supply chain, not only just in performance evalua-

ment, development and growth. With

tion. Over the years, American Tower

the help of technology such as Oracle,

has worked with a number of valuable

American Tower has standardised its

partners such as Galooli POWER,

processes across the world, imple-

which has assisted American Tower to

menting guidelines and policies that

develop software for site monitoring:

are cost-effective and efficient. “If you

“Working together in the last seven

go to Nigeria, you’ll find that it is the

years, Galooli brings a true value and a

same process as in Uganda as op-

strong relationship to American Tower

posed to making it different for every

and emphasises the importance of

supplier everywhere.” Without a doubt,

us as a real partner,” Says Leehu

Mugisha believes American Tower

Hacohen. Other companies American

will 100% benefit from the company’s

Tower has worked with include Incell

efforts towards digitalisation, but only

Engineering, which provides American

if all processes and systems are ef-

Tower with batteries, and iEngineering w w w.suppl yc ha i ndi gi ta l. com

143

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+972 3 565 6900 www.galooli.com

“Comprehensive procurement process plus improved technology and innovation will give you enhanced value and potential savings” — Collin Mugisha, Head of Supply Chain EMEA, American Tower

145

Group, which assists with developing

to implement the best security and

prototypes and upgrading commu-

productivity practices towards both

nication towers. These partnerships

remote assets and workforce man-

are mutually beneficial for American

agement.

Tower and its partners as they work

Acsys hardware along with its web-

to grow with each other, and evolve

based software, gives us a holistic

solutions to help other businesses in

view of the entire remote infrastruc-

Africa in the future.

ture’s security status, both during

A sturdy locking solution and a

planned servicing and idle hours. This

smart autonomous access control is

has enabled us to reduce the theft of

the first line of defence to protect cell

sought-after commodities like bat-

towers critical infrastructure. ATC, has

teries, fuel, starters and other critical

strategically partnered with Acsys

telecom installations. Its OTP-enabled w w w.suppl yc ha i ndi gi ta l. com

“ If you go to Nigeria, you’ll find that it is the same process as in Uganda as opposed to making it different for every supplier everywhere” — Collin Mugisha, Head of Supply Chain EMEA, American Tower

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Always checked, always chargedTM

147 smart keys & mobile apps allow ATC

currently in the process of acquiring

to assign access privileges in real-

Eaton Towers in an approximately

time, thereby reducing the number

US$1.85bn deal. The signing is yet to

of round trips in field necessary to

take place, however, due diligence is

retrieve and return access keys result-

being carried out to assess Eaton

ing in substantial OPEX reductions‘’.

Tower’s portfolio prior to the takeover, focused on five key areas: Uganda,

THE FUTURE OF AMERICAN TOWER

Kenya, Ghana, Burkina Faso and

Looking to the future, Mugisha sees

Niger. The merging of American Tower

digitalisation and standardisation as

and Eaton Towers is a response to

being a key trend in the African

American Tower’s mission to “get into

market, “we’re still way behind to

new markets and new operations.”

digitalise operational systems and this

Merging with Eaton Towers will help

isn’t good because it creates a lot of

expand its site portfolio in Africa, grow

inefficiency and increase cost.” In

its experience of different markets,

addition to this, American Tower is

and offer new technologies. As a w w w.suppl yc ha i ndi gi ta l. com

AMERICAN TOWER

“ Innovation will continue to be a very important aspect for our business moving forwards” — Collin Mugisha, Head of Supply Chain EMEA, American Tower 148 PA R T N E R S

EnerSys, the global leader in stored energy solutions for industrial applications, is a key supplier to American Towers. EnerSys supplies American Towers with state-of-the-art energy systems (batteries, enclosures and rectifiers) that provide a secure thermally managed environment for its backup battery systems. They ensure very low energy consumption, providing for

OCTOBER 2019

OPEX savings. The enclosures are custom-designed for use in rugged and harsh environments and fully integrate with the solar panels on its towers. In addition to enclosures, EnerSys offers an extensive portfolio of premium f looded and sealed batteries for the telecommunications market. They offer exceptional performance, long life, compact footprint, high energy density and ease of installation.

result, these benefits will help with American Tower’s goal to be even more cost effective and efficient. Alongside the benefits of the company’s merger with Eaton Towers, Mugisha does foresee that there will be challenges such as software integration of the two companies, receptive customers to each other’s products, standardising company processes and training employees on new system changes. For Mugisha, American Tower’s capacity to maintain relationships with network operators, ability to provide high quality products and its focus on providing real estate wireless and broadband solutions is paramount. “Innovation will continue to be a very important aspect for our business moving forwards,” he says. As American Tower aims to continuously evaluate its processes and develop innovative solutions for its customers, it seems certain that these goals will be achieved.

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149

150

How Leumit Health Services is harnessing digital transformation to provide unmatched service to its patients WRITTEN BY

HARRY MENEAR PRODUCED BY

K ANE WELLER

OCTOBER 2019

151

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L E U M I T H E A LT H S E R V I C E S

Eli Zimels, Director of Purchasing and Logistics at Leumit Health Services, explores the ways in which the Israeli HMO is harnessing the power of digital transformation to provide peerless patient service

n a business landscape increasingly defined by hyperscale conglomerates and

multi-billion dollar mergers, it’s easy 152

to forget the advantages that come with being small. Founded in 1933, Leumit Health Services is the smallest of Israel’s four health management organisations (HMOs). While it may not be able to provide treatment to the largest number of patients in the country, by leveraging technology, its employees’ extensive experience and its innate agility, Leumit is dedicated to ensuring that it consistently delivers the best possible service to the people in its care. Leumit operates under the motto: “Taking care of your future health today,” a nod to its commitment to preventative health care as an integral part of the community service it delivers. OCTOBER 2019

153

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L E U M I T H E A LT H S E R V I C E S

“ We may be the smallest HMO, but we like to think we’re the best in terms of the service we provide our patients” — Eli Zimels, Director of Purchasing and Logistics, Leumit Health

Leumit operates 350 clinics and around 170 pharmacies across Israel. Ensuring that essential medicine arrives on time and in the correct quantities is a mission critical priority for the organisation’s supply chain. “The medication that we’re purchasing can be life saving and if, for some reason, there’s a shortage, that’s my problem,” says Leumit’s Director of Purchasing and Logistics, Eli Zimels, who has served in his current role at the organisation for 11 years. We sat down with Zimels to explore his role

154

in Leumit’s ongoing digital transformation – a process which is seeing the HMO harness technology to further enhance its exemplary standard of patient care. “We may be the smallest HMO, but we like to think we’re the best in terms of the service we provide our patients,” says Zimels. “We’re a ‘family HMO’: our doctors, nurses and pharmacists know each of their patients personally and can give them individual care. We put a great deal of money and energy into being the HMO with the best service.” In order to pursue this goal, Leumit has OCTOBER 2019

CLICK TO WATCH : ‘LEUMIT HEALTH CARE’ 155 developed a ‘one-stop-shop’ model

one of the best standards of care in

at its clinics. “You can see the doctor,

the country.

then if you need something from the

Of course, Zimels explains, with

laboratory, you can go downstairs

a goal like this, the drive to improve

and take your blood test or your urine

and innovate is continuous. In support

test. If you need an x-ray, you can get

of improving patient service, Leumit is

one at the same clinic and, as you

pursuing three projects as part of its

leave, you can pick up your prescrip-

ongoing digital transformation.

tion from the pharmacy,” explains Zimels. This combination of diverse

MEDICATION ON DEMAND

medical services in one location, and

The project at the front of mind for

an emphasis on developing personal

Zimels and his logistics team is a

relationships between patients and

new initiative through which patients

medical staff, is the core driver be-

will – in the next few months – be

hind Leumit’s reputation of having

able to begin ordering their prescripw w w.suppl yc ha i ndi gi ta l. com

L E U M I T H E A LT H S E R V I C E S

156

tions online and have them delivered

and which regulations they have to

to their homes. “We’re going to be

change so that we will be able to be-

the first HMO to do this,” he ex-

gin making deliveries.”

plains. Breaking ground in this way isn’t without its challenges, Zimels

DIGITAL SUPPLY CHAIN

admits. “In Israel, the regulations on

At a time when Leumit is embarking on

something like this are very strict, so

an expansion of its logistics respon-

until now nobody was able to offer a

sibilities as significant as prescription

prescription delivery service. When

deliveries, Zimels and his team have

you innovate like this, you have to

needed to harness every tool at their

start from scratch and that leads to

disposal to improve the consistency

challenges. We’ve had to have a lot of

and quality of the HMO’s back end

sessions with the Ministry of Health

supply chain function. “We’ve just

to explain what kind of help we need

finished implementing SAP across

OCTOBER 2019

our logistics and purchasing models,

of B2B interactions moving more

finance, budgeting and our mainte-

towards an all-digital format, and we

nance model for all the equipment in

think that SAP will get us part of the

the HMO,” he says. The implementa-

way towards closing that circle, but

tion of an industry-leading ERP solu-

we’re also going to need to collabo-

tion will, Zimels believes, go a long way

rate with our suppliers in a way that

towards increasing transparency and

results in an improved experience for

decreasing disruptions in Leumit’s

the patient.”

supply chain, but the organisation’s reneed to be an object of focus. “Often,

IMPROVING PATIENT CARE AND CUSTOMER EXPERIENCE

our suppliers don’t volunteer the fact

“One of the most common requests

that there’s going to be a problem or

from our cardiologists is that, when

a shortage,” he says. “Mostly, we find

they take an EKG of a patient, they

out after we send an order through –

are able to easily access that pa-

that’s the most common disruptor of

tient’s previous EKGs for comparison,”

our supply chain. We’re seeing a trend

Zimels explains. Digitalising patient

lationships with its suppliers will also

E XE CU T I VE PRO FI LE

Eli Zimels A veteran supply chain executive, with over 25 years in operations, logistics and procurement, Zimels has worked as the the Director of Logistics and Purchasing for Leumit HMO since 2008. Previously, he held executive roles at BEZEQ, and Donna. He is a member of the National Council for Logistics in the Healthcare System and a guest lecturer in procurement and logistics.

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157

TIME IS A GREAT STORYTELLER The story of DYN has 30 years of experience as a leading medical devices distributor in Israel. Together we can write the next chapter. Learn More

+972-4-6175300 www.dyn.co.il/en-home

data for the sake of easy access, dis-

where it will then be available to rele-

tribution and backup is the third major

vant doctors, and even to the patients

project that Zimels is working on cur-

themselves. This will further support

rently. In the end, he hopes medical

Leumit’s current digital diagnostic and

data will be transferred directly from

support services, which allow patients

the equipment to the HMO’s database,

to schedule appointments, consult with physicians via video conference, access their medical records and receive their lab results, all from the comfort of their homes. “You’ll be able to have a video appointment with your doctor, who will be able to send your lab results to your computer, recommend medication and arrange to have it sent directly to your home,” says

OCTOBER 2019

159

â&#x20AC;&#x201D; Name of Person, Position and company w w w.suppl yc ha i ndi gi ta l. com

L E U M I T H E A LT H S E R V I C E S

LE U M I T O N L I N E S E RV I C E S

Leumit offers a large array of medical and administrative services via the internet and smartphone without having the patient having to physically go to a medical center. The service allows patients to:

160

• Make appointments for primary care doctors and specialists

Zimels. “We’re closing a circle so you, as a patient, don’t even have to leave your home.”

THE FUTURE With plans for the first home deliveries of medication to begin around the end of October, before fully rolling out in 2020, and increased digitalisation of both the organisation’s strategic purchasing strategies and patient documentation, Zimel’s is confident that the coming years will see Leumit and its supply chain go from strength

• Consult with physicians • Obtain laboratory results • Receive information on allergies to medications and much more • See the medical record on line • See all x-rays that are done in our medical centers

$1.47bn+ Approximate revenue

1933

Year founded

3,200

Approximate number of employees OCTOBER 2019

to strength. Reflecting on those

“By giving us a low price, we provide

strengths, he reflects that “first of all,

them with early entry to the market,

“We have great workers. Our work-

sometimes ahead of the National

ers are highly-educated, have a lot of

Basket. A small HMO has an advan-

experience, and are innovative and

tage doing this,” Zimels explains.

willing to learn. Secondly, we are very

This combination of agility, flex-

flexible as an organisation: our stra-

ibility and ongoing digitalisation will,

tegic purchasing department is very

Zimels is confident, continue to see

autonomous. We don’t need to have

Leumit provide a standard of ser-

lots of committees to approve things

vice to its patients that is unmatched

internally.” Externally, Leumit’s size

among its competitors.

also contributes to its flexibility, particularly when negotiating with pharmaceutical companies for purchases.

161

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162

PROCUREMENT TRANSFORMATION AT THE HIGHER COLLEGES OF TECHNOLOGY WRITTEN BY

WILLIAM SMITH PRODUCED BY

K ANE WELLER

OCTOBER 2019

163

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HIGHER COLLEGES OF TECHNOLOGY

MAHMOUD ALALAWI, DIRECTOR OF PROCUREMENT AND CONTRACTS AT THE UAE’S HIGHER COLLEGES OF TECHNOLOGY, DETAILS THE PROCUREMENT TRANSFORMATION UNDERWAY AT THE ORGANISATION

ith 23,000 students and 16 campuses spread across the United Arab Emirates, the Higher Colleges of Technology (HCT) is

one of the largest applied higher learning institutions in the country. Facing the supply chain challenges 164

presented by such a sizeable institution is Mahmoud Al Alawi, Director of Procurement and Contracts. Since joining the organisation in November 2018, Al Alawi has renewed the focus on having a dedicated and streamlined strategy underpinning HCT’s procurement function. “We’ve discussed how to best ensure procurement is engaged with the strategy of HCT,” says Al Alawi. “Now, we are part of the strategic decision making of HCT, and I am involved in committees responsible for strategic initiatives.” With the strategic structure clarified, HCT has embarked on a number of progressive and transformative initiatives involving the procurement department. “We are applying international standards, and we have plans to be part of the new Fourth Industrial Revolution, implementing a strategic plan, known as ‘HCT 4.0 Employability & Beyond’. We are OCTOBER 2019

165

1988

Year founded

Campuses

23,000 Students

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HIGHER COLLEGES OF TECHNOLOGY

“WE HAVE PLANS TO BE PART OF THE NEW FOURTH INDUSTRIAL REVOLUTION”

involved in the management of strategy, from the academic side to the technical or technological side, and we also provide the facilities and the equipment.” Technology has played a part in ensuring that the procurement department can achieve its goals. Existing systems are undergoing enhancement, with Al Alawi targeting a new enterprise resource planning (ERP) platform. “We are floating a tender in the market

166

Mahmoud Alalawi, Director of Procurement and Contracts, Higher Colleges of Technology

OCTOBER 2019

for a new ERP system that’s integrated between procurement, finance, HR and our SIS. This was one of the decisions

CLICK TO WATCH : ‘HIGHER COLLEGES OF TECHNOLOGY – HCT’ 167 that we took after I joined and we’re

having our team check all the activities

expecting the tender to be closed by

and the trade licenses, the system

the end of the year.” Currently, HCT

does it instead. It will do the necessary

is undergoing a programme of digital

matching before advising us whether

transformation to decrease existing

the company in question complies with

manual efforts. “As of now, we handle

the requirements and with the activities

about 50% of our processes manually,

that they have mentioned in the

with the other 50% automated – but that

registration form.”

is not enough for us.” HCT is also engaging with emerging

Such innovations have required a change in culture, and Al Alawi has

technologies to improve its capabilities,

taken a considered approach to getting

with a particular focus on artificial

stakeholders on board with the changes.

intelligence, which is being put to work

“I believe that engaging the end users

with an AI system able to register and

with us in the process is the best way to

categorise suppliers. “Instead of

overcome any in-built resistance that w w w.suppl yc ha i ndi gi ta l. com

they might have. We expected a certain amount of resistance, so we thought that we’d involve them with making the changes, instead of just having them apply it.” Obtaining HCT management approval for the changes wasn’t an issue for Al Alawi. “The leadership was very helpful and supportive. They really believe in what we are doing to

“I BELIEVE THAT ENGAGING THE END USERS WITH US IN THE PROCESS IS THE BEST WAY TO OVERCOME ANY CULTURAL RESISTANCE”

transform procurement, and with their support, we’ve managed to change. For example, we’ve reduced the vendors’ payment term from 60 days to 30 days,

Mahmoud Alalawi, Director of Procurement and Contracts, Higher Colleges of Technology 169

E XE CU T I VE PRO FI LE

Mahmoud Al Alawi Mahmoud Al Alawi holds the Procurement Transformation file at the Higher Colleges of Technology in line with the national agenda of the UAE and the HCT 4.0 Strategy. He has held various positions as Contracts Manager at the IAT, then Director of Operations, and has overseen the IT Department as well as acting as the Director of Support Services in ADVETI. Al Alawi is a member of several international committees and associations such as the CIPS, the IFMA and the BSI. Al Alawi has received awards from organisations such as: “Rashid Award for Scientific Excellence” in 2007, “Best Supervisor Award” from ACTVET 2017 and “Best Employee” from the UAE Armed Forces in 2006 and 2008. He holds an MBA in International Business from the UOWD and a Degree in e-commerce from the HCT. Currently, he is a candidate for the DBA programme in Derby University in the UK.

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HIGHER COLLEGES OF TECHNOLOGY

170

C O M PA N Y FACT S

• Reduced the vendors payment from 60 days to 30 days • 50% of processes are automated, with the percentage increasing

OCTOBER 2019

which was much appreciated by our vendors.” The change in approach has reaped tangible rewards. “The traditional, paperwork-based process of procurement used to take a long time,” says Al Alawi. “We used to float some tenders and out of the 50 or 60 invited, we would have two or three participants. Now we have more than 70% participation in our floated tenders. Since our partners are part of our success, we are inviting them for an open forum next month to be part of our planning for our 2020 Annual Procurement Plan”. To reinforce the culture, HCT has systematised what might previously have been a verbally-based approach. “We’ve established four sections to the department,” says Al Alawi. “We have the procurement section, contracts, procurement operations, and vendor management. The whole team knows their responsibilities both within their section, and between the sections within procurement. In this digital age we don’t want to purely depend on people, so we’ve built a system and gained approval of all the policies and procedures from senior management. w w w.suppl yc ha i ndi gi ta l. com

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HIGHER COLLEGES OF TECHNOLOGY

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“WE’VE DISCUSSED HOW TO BEST ENSURE PROCUREMENT IS ENGAGED WITH THE STRATEGY OF HCT”

Everything is documented and clear – we even made them illustrated via presentations to make them very easy for anyone to understand.” The future for HCT holds plenty of promise. Aside from the aforementioned HCT 4.0 strategic plan, the ‘InnCuVation’ spaces project has seen the creation of state-of-the-art innovation

Mahmoud Alalawi, Director of Procurement and Contracts, Higher Colleges of Technology

labs in three campuses, with more to come. New approaches to procurement are being developed, with a move to leasing and managed services instead

OCTOBER 2019

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of purchasing. Students are also

working on putting in place a two-year

benefiting from the new approach,

plan, then a three-year plan, then a

with private sector procurement

five-year plan. That’s going to make the

partnerships leading to employment

implementation of our strategy much

post-graduation, as well as being able

easier and more controllable in terms

to open companies licensed by HCT,

of budgeting – it’s among the biggest

which is aligned to the HCT 4.0

initiatives and projects that we are

foundational pillar of Graduating

working on.”

Companies. Al Alawi, meanwhile, is looking to add more rigour to HCT’s planning in order to unlock the potential in the procurement function. “Instead of an annual plan, we’re w w w.suppl yc ha i ndi gi ta l. com

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OCTOBER 2019

HOW SUSTAINABLE PROCUREMENT IS “JUST SMART BUSINESS” 175

WRITTEN BY

GEORGIA WILSON PRODUCED BY

CAITLYN COLE

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UNSW SYDNEY

In an exclusive interview with the Head of Estate Management Procurement at UNSW, Paul Royds discusses how sustainable procurement is “just smart business”

STABLISHED IN 1949, UNSW IS a diverse university with over 60,000 students, with more than

23,000 international students. UNSW has set its 2025 Strategy to become 176

a “global university improving and transforming lives through excellence in research, outstanding education and a commitment to advancing a just society” – UNSW 2025 Strategy. Strategic priorities for the university include: academic excellence, social engagement and global impact. Paul Royds, Head of Estate Management Procurement, has had a broad career of over 14 years across procurement, consulting and business development; he began his career at UNSW in 2018. The University’s vision, broader altruistic objectives and large pipeline of new developments across the estate management portfolio attracted Paul to the University, giving him the chance to be a part of “something bigger than the usual corporate environment.” OCTOBER 2019

177

SUSTAINABILITY AT UNSW Underpinning much of what Paul does for procurement at the University is driving commercial value across the value chain. This includes supporting the implementation of sustainable practices across the estate management portfolio “to promote goods and services with the lowest environmental impact, but ultimately with the greatest economic and social benefits” says Paul, “it’s just w w w.suppl yc ha i ndi gi ta l. com

UNSW SYDNEY

“ Everything that we do in construction has 40/50-year timeframes. It’s that whole of life perspective that is key; yes you might pay higher capital costs today, but if you can 178 pay a bit more now, you’re going to save on your operational costs over the life of that building; which ultimately leads to more efficient and flexible buildings” — Paul Royds, Head of Estate Management Procurement

OCTOBER 2019

smart business […] It’s about driving long-term commercial value.” Fundamentally, Paul sees sustainable procurement being about longterm risk management and supplier partnering. Sustainability, he adds, is “a business imperative rather than something nice to have.” In order to drive sustainable outcomes, organisations need to understand cost drivers and be able to identify critical costs and risks to the supply chain. Paul goes on to say that, ultimately, for UNSW it’s about focusing on “understanding those factors and cutting practical

CLICK TO WATCH : ‘SHAPE YOUR EXPERIENCE AT UNSW – OPEN DAY 2019’

deals that drive long-term economic, social, and environmental benefits”. For example, by 2020, “UNSW will become the first university in the world to have 100% of its energy powered by photovoltaic solar energy,” with its solar panel farm located in regional NSW nearing completion. The tripartite arrangement of bringing together a retailer, developer and corporate will allow UNSW to achieve its goal of becoming carbon neutral. Since 2018 Paul has overseen the development of a new category framew w w.suppl yc ha i ndi gi ta l. com

179

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Xerox, Xerox and Design, as well as Fuji Xerox and Design are registered trademarks or trademarks of Xerox Corporation in Japan and/or other countries and are used under license.

work for construction and facilities

fit for purpose contracting models and

management which focuses on ‘whole

promote outcome-based procurement.

of life perspectives’. By promoting

Paul has also established new panels

category management, procurement

and partnerships with architects,

is attuned to industry cost drivers

engineers, builders and consultants

and is able to drive sustainable com-

that are aligned with the University’s

mercial value across the value chain to

sustainability objectives

promote sustainable outcomes within

For UNSW, technology plays a key

estate management. This includes

role in driving sustainability narratives.

developing and implementing “agile

“Ultimately technology is really about

sourcing strategies, evaluation plans

removing waste, improving time, and

and negotiation approaches that, […]

driving project efficiencies,” says

focus on sustainable procurement

Paul, with advancements in augmented

practices” to challenge architect

and virtual reality and building

specifications, review materials, apply

information modelling (BIM), these

E XE CU T I VE PRO FI LE

Paul Royds Paul Royds, Head of Estate Management Procurement at UNSW Sydney, has had a broad career of over 14 years across, procurement, consulting and business development. Paul began his career at UNSW in 2018, during his time at the university so far Paul has implemented a number of changes including category management rollout, supplier relationship management implementation, business-fit sourcing strategies and targeted evaluation plans, to deliver sustainable commercial value.

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UNSW SYDNEY

$2.2bn

Revenue in Australian dollars

182

1949

Year founded

2,000

Approximate number of employees

OCTOBER 2019

183

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UNSW SYDNEY

technologies drive collaboration and support sustainable design and preconstruction visualisation. Paul believes the biggest challenge for sustainable procurement is the view that it is a ’greenwashing’ exercise that is impractical and costs more. To overcome these challenges, businesses need to pivot their projects towards ‘whole of life perspectives,” says Paul. “Everything that we do in construction has 40/50-year timeframes. It’s that whole of life perspective that is key; 184

yes you might pay higher capital costs today, but if you can pay a bit more now, you’re going to save on your operational costs over the life of that building; which ultimately leads to more efficient and flexible buildings.”

WORKING WITH PARTNERS AT UNSW When it comes to working with partners, UNSW looks to organisations that will add commercial value to the University as well as drive value across social and environmental factors. “Working with other ethical and sustainable companies that are committed towards the same things that we are committed to,” will drive sustainability OCTOBER 2019

and efficiency says Paul. Such partners include Fuji Xerox Australia who work across a number of areas at the University, but “ultimately from a partner perspective, it’s their foundations, which are focused on sustainability, that align to our own. Even simple things, like all the printer cartridges that we use at the University are fully 100% recyclable,” says Paul.

KEY TRENDS AND BIG DISRUPTORS IN PROCUREMENT To remain relevant Procurement must continue to evolve as strategic partner. If it cannot deliver ‘cost benefits to an organisation and harvest those benefits, emerging technologies and ‘buzzword’ strategies will not save it. Key trends in estate management procurement will be ensuring that whole of life consideration is embedded into building designs and technology leveraged to drive construction and operational efficiencies. Other trends that procurement functions will need to remain on top of is emerging technologies (automation & AI), modern slavery reporting, Indigenous procurement and ‘true supplier partnering’ where co-creation w w w.suppl yc ha i ndi gi ta l. com

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UNSW SYDNEY

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supports and enhances supply chains. Over the coming decade Paul sees “a massive move towards localisation rather than globalisation,” for procurement. “With the advancement of robotics increasing disruption of labour costs will restructure many supply chains.” Additionally, Paul sees subscription models and the circular economy playing a big role in disrupting supply chains, as well as skill shortages and natural resource depletion impacting many industries.

OCTOBER 2019

“ We’ve got a unique opportunity to change the supply chains and drive those improvements” — Paul Royds, Head of Estate Management Procurement

THE FUTURE OF UNSW Looking to the future, UNSW aims to align its procurement with international ISO 20400 standards by 2022 and stay on track for its 2025 Strategy by continuing to generate new ideas and apply its innovations practically. “We’ve got a unique opportunity to change supply chains and drive those improvements,” says Paul. Procurement, he says “plays a vital role in articulating what sustainability means for suppliers and how it might impact their bottom line.” In order to stay relevant in procurement, “you’ve got to foster that culture of innovation, it’s got to be agile, and it’s got to be around continuous improvement to deliver ongoing value,” concludes Paul.

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188

WRITTEN BY

MATT HIGH PRODUCED BY

JUSTIN BRAND

OCTOBER 2019

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T R A N S F O R M S H A R E D S E R V I C E O R G A N I Z AT I O N

TransForm SSO is taking a pioneering approach to healthcare supply chain innovation, driven by the desire to offer exceptional patient care across Ontario

ransForm Shared Service Organization (TransForm SSO) provides an innovative, end-to-end supply chain service driven

by one vital goal: offering healthcare employees the support they need in order to provide exceptional patient care across Ontario. TransForm SSO was 190

established in 2013, following the amalgamation of two shared service organisations and, since then, has embarked on a journey of consolidation and digital innovation that has seen its approach to managing healthcare supply chains evolve. Director of Supply Chain, Renée McIntyre, has been instrumental in this journey. Today, she is responsible for overseeing all day to day operations of TransForm SSO’s supply chain division, as she explains: “We provide a true end-to-end service covering everything from market research and procurement, through to strategic sourcing, contract and vendor management, capital procurement, and value analysis. We support five multi-site hospital organisations across the Erie-St. Clair region in southwest Ontario, as well as third party customers such as the Local Health Integration OCTOBER 2019

191

2013

Year founded

190

Approximate number of employees

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T R A N S F O R M S H A R E D S E R V I C E O R G A N I Z AT I O N

“ We provide a true end-to-end service covering everything from market research and procurement, through to strategic sourcing, contract and vendor management, capital procurement, and value analysis” 192

— Renée McIntyre, Director of Supply Chain, TransForm SSO

Network Home and Community Care. Alongside those services listed, we also support the hospitals’ internal logistics and provide value by maximising savings and coordinating product conversions and recalls.” Since its establishment, TransForm SSO has implemented innovative and digitally-driven methods of improving its services, in line with the wider digitalisation of the supply chain sector. “With our organisation and the structure that we have in place, we’ve been able to take great steps to automate our supply chain operations, to implement

Derek Robertson, Vice President, Business Development speaks to TransForm staff during one of the organisation’s Town Hall events.

OCTOBER 2019

CLICK TO WATCH : ‘TRANSFORM SSO – 2019 CEO AWARD NOMINATIONS’ 193 new data analytics systems and

entity working in an industry primarily

provide significantly more value for

focused on providing the best value

money in healthcare – which is an

services – operates. “I would say that

absolutely key goal,” says McIntyre.

healthcare lags behind other industries

“For example, we’ve migrated all our

when it comes to supply chain,”

hospitals onto a single ERP platform

McIntyre states. “Historically, processes

with a single item master file that we

like barcoding scanning and the

manage for them; while that alone may

appropriate and direct supply chain

not be new to the supply chain industry,

principles that you would apply to the

it has established the foundation to

private or retail sectors have taken a

achieve significant savings and create

back seat when it comes to healthcare.

efficiencies for our members.”

In Ontario, the health sector represents

This evolution has occurred despite

41% of overall programme spending,

the more challenging conditions in

with ever increasing pressures to

which TransForm SSO – a public sector

reduce costs and find efficiencies. w w w.suppl yc ha i ndi gi ta l. com

T R A N S F O R M S H A R E D S E R V I C E O R G A N I Z AT I O N

194

However, we’ve seen significant

sector. This really epitomises our vision

movement more recently as these

of expanding our services to cover the

supply chain principles take more

entire patient care continuum. For that

of a precedent in healthcare.”

reason, we are leaders in defining the

TransForm SSO has become a

direction that public procurement can

frontrunner in implementing some

go in Ontario, and we’re providing the

of those changes, particularly, says

game plan to other shared service

McIntyre, with regards to expanding

organisations in the province.”

beyond acute care and hospitals.

While technology has facilitated

“We’re the only shared service organi-

TransForm SSO’s development, McIntyre

sation in Ontario that has integrated

is also keen to highlight the importance

the Home and Community Care supply

of the collaborative approach to

chains into what we do, whereas most

providing healthcare supply chain in

others focus solely on the hospital

Ontario. On a broader level, legislative

OCTOBER 2019

changes in the province have led to

and operational perspective, it’s a huge

a more coordinated healthcare offering,

benefit to the way we work.”

but TransForm SSO has also worked

TransForm SSO places a strong focus

closely with its member hospitals and

on collaboration and partnerships to

other shared service organisations to

continuously improve its operations.

drive efficiencies. “The strategic

“The ability to work closely with our

direction in the early stages really did

vendor partners and leverage our

come from the hospitals with which we

relationships to help achieve value for

work,” she says. “Our member hospi-

the healthcare system is a team priority.

tals comprise our board of directors,

One such example is a partnership

and so we had that leadership buy-in

with Scotiabank, which has been able

very early on. This led to, in my opinion,

to directly reduce our costs of delivery

one of our biggest differentiators – that

and enable reinvestment to further

all our hospitals share information

improve our digitisation goals.

across a single platform. From a data

“Our ERP system is a multi-solutions

E XE CU T I VE PRO FI LE

Renée McIntyre Renée McIntyre is the Director of Supply Chain for TransForm Shared Service Organization, responsible for the operations of the supply chain division including strategic sourcing, procurement, value analysis, logistics and innovation procurement for the hospitals and customers in the Erie St. Clair LHIN. Renée has been with TransForm since 2009, and played an integral role in the development and implementation of the shared service organization. Prior to TransForm’s inception, Reneé has provided supply chain leadership to the region’s hospitals since 2003; she has achieved millions of dollars in savings through operational and performance efficiencies for Erie St. Clair’s hospitals.

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197

platform that is backed by GHXâ&#x20AC;&#x2122;s

order being sent, through to being

robust ecommerce platform. This is

digitally acknowledged by the vendor,

the centrepiece of our supply chain

matched and then paid, with no human

operation: it validates transactions

intervention. Having a talented and

against our contracts and validates

dedicated team and leveraging our

orders in real time against vendor

technology has allowed us to offer

catalogue and description data to

a very strong supply chain operation

minimise order exceptions and is

that, in turn, allows everyone to focus

layered upon a BI tool to support our

on how we can achieve the best value

data analysis in a seamless manner.

for hospitals so they can save lives.â&#x20AC;?

Weâ&#x20AC;&#x2122;ve put significant focus on automa-

Despite these achievements,

tion into the supply chain. A large

McIntyre is keen that the strategic

portion of our business is fully auto-

focus of the business continues. She

mated from the point of the purchase

cites two key areas for the foreseeable w w w.suppl yc ha i ndi gi ta l. com

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“ We’re the only shared service organisation in Ontario that has integrated the Home and Community Care supply chains into what we do” — Renée McIntyre, Director of Supply Chain, TransForm SSO

OCTOBER 2019

future: growing TransForm SSOâ&#x20AC;&#x2122;s Home and Community care business, including closer collaboration and sharing with other health service providers, as well as continuing to implement technology to tie in supply chain data to clinical outcomes. The latter, she says, â&#x20AC;&#x153;is a growing need in healthcare: the ability for us to evaluate how we can tie in clinical patient outcomes and utilisation data to our own supply chain in an automated way to bring even greater value to our organisation. Looking further ahead, I see the ability to implement our supply chain model across the broader public sector as a significant focus moving forward. Ideally, that would involve finding all those other public sector entities within our region and collaborating to develop a sustainable model that allows us to scale it right across the province. I think that could bring tremendous value to the public sector in the whole of Ontario, and it would be great to lead that drive.â&#x20AC;?

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