Supply Chain Digital - January 2021 by Supply Chain Digital

JAN 202 1

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HCL Technologies:

COVID-19 & DIGITAL

TRANSFORMATION Eric Cohan, CPO of HCL Technologies, discusses supply chain resilience

CPOs of 2020 LOGISTICS CAMPUS:

Nike’s Net-Zero Ambition

RISK MANAGEMENT:

Mitigating Risks in Procurement TECHNOLOGY:

How RPA is Revolutionising Supply Chain Networks C2FO

MCPHERSON’S

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FOREWORD

ello, and welcome to the January edition of Supply Chain Magazine; a publication that explores the trends shaping the global supply chain networks today, through the individual journeys and stories of leading organisations and executives in the industry. Within these pages, we’ll be delving into the depths of the industry, exploring digitisation, and checking out the growing trends across the sector. Take, for example, January’s lead story: an exclusive interview with Eric Cohan, Chief Procurement Officer at HCL Technologies, where we dive into the importance of digital transformation and discuss supply chain resilience and the digital acceleration caused by the COVID-19 pandemic. On top of that, Director of Go-to-Marketing Strategy and Execution for Infor’s Supply Chain, Christine Barnhart, highlights the importance of S&OP: “The evidence from independent research says it is, with a significant competitive advantage for S&OP leaders in the key areas of customer service, profitability and cash-to-cash cycle times.” The leading supply chain specialist goes on to talk us through the six steps for success, four best practices, and keys to unlocking net-gen Sales and Operations Planning (S&OP) within your business operations.

Elsewhere, Eric Sprunk, the former Chief Operating Officer of Nike, sheds light on the sports-brands mission to achieve net-zero emissions and drive future sustainability through their industry-leading European Logistics Campus. Also inside, find insights from Adebayo Adeleke FRSA, Managing Partner of Pantote Solutions and Lecturer at Sam Houston State University; Tai Alegbe, CEO and co-founder of Contingent, and Avetta, a leader in cloud-based risk management, as they unveil the importance of risk management in supply chain and highlight the dangers that the industry faces as we move into 2021. Oh, and, don’t forget to keep an eye out for this month’s ‘Top 10’, which takes a look at ten of the most popular Chief Procurement Officers of 2020. Fancy seeing your name featured in an upcoming edition of the magazine? Get in touch today at oliver.freeman@bizclikmedia.com From the team at Supply Chain Digital, we hope you enjoy the issue. Oliver James Freeman

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PUBLISHED BY

PRODUCTION DIRECTORS

Georgia Allen Daniela Kianickovรก EDITOR-IN-CHIEF

Oliver Freeman

PRODUCTION MANAGER

Owen Martin Philline Vicente

DEPUTY EDITOR

Georgia Wilson EDITORAL DIRECTOR

Scott Birch CREATIVE TEAM

Oscar Hathaway Sophie-Ann Pinnell Sophia Forte Hector Penrose Sam Hubbard Mimi Gunn

VIDEO PRODUCTION MANAGER

Kieran Waite

Tom Livermore James Richardson MEDIA SALES DIRECTOR

James White SALES AND MARKETING DIRECTOR

Jason Westgate MANAGING DIRECTOR

Lewis Vaughan

DIGITAL VIDEO PRODUCERS

Sam Kemp Evelyn Huang DIGITAL MARKETING EXECUTIVE

Kayleigh Shooter

CHIEF OPERATIONS OFFICER

Stacy Norman PRESIDENT & CEO

Glen White

PROJECT DIRECTORS

Karl Green supplychaindigital.com

COVID-19 AND DIGITAL TRANSFORMATION: A HCL PERSPECTIVE

30 Procurement Risk Management: Supply Chains Under Attack

40 How to Master Sales and Operations Planning (S&OP)

52 62 HOW RPA IS REVOLUTIONISING SUPPLY CHAIN NETWORKS

Nike’s Net-Zero Ambition: They ‘Just Did It’

CPOs

92 Pelion

104 C2FO

122 McPhersonâ&#x20AC;&#x2122;s Consumer Products Pty Ltd

134 Doka

COVID-19 and Digital Transformation: A HCL PERSPECTIVE WRITTEN BY

OLIVER JAMES FREEMAN PRODUCED BY

THOMASÂ LIVERMORE

JANUARY 2021

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HCL TECHNOLOGIES

Eric Cohan, CPO of HCL Technologies, discusses supply chain resilience and the digital acceleration caused by COVID-19

hen COVID-19 came knocking, industry leaders all over the world found themselves both shocked and, in many cases,

slightly puzzled. Never before in their lifetimes had a naturally-occurring event like this cropped 12

up, so the question, â&#x20AC;&#x153;What do we do?â&#x20AC;? was prevalent across every sector - especially across the global supply chain network that allows modern society to thrive in the way that they do. The same was true for HCL Technologies, a leading IT services company that assists global enterprises in the reimagination and digital transformation of their business operations and infrastructure. The multinational company uses and sells technological products and services that have been built on four decades of innovation - an innovation that thrives under the watchful eye of a world-renowned management philosophy, a brazen culture of invention and risk-taking, and a relentless focus on customer-centricity.

JANUARY 2021

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Curvature, global leader in independent IT maintenance and support, allows forward-thinking leaders of data centres to realize their business ambitions for the digital economy. Curvature, one of HCL Technologiesâ&#x20AC;&#x2122; Strategic Partners, works hand in hand with HCL to provide intelligent alternatives to vendor IT maintenance and support, allowing world class organisations to achieve their digital ambitions without compromise.

Learn more

A Curvature and HCL Collaboration - The VP of Sales Perspective Christo Conidaris, VP of Sales for Curvature, sat down to discuss the ongoing partnership between his own company and HCL Technologies, and supply chain. Christo Conidaris, Vice President of Sales for Curvature, (now a Park Place Technology company), the global leader in independent IT maintenance and support for storage, server, and network hardware, jumped in the Supply Chain Digital hot seat recently to discuss Curvature’s ongoing partnership with HCL Technologies, and his thoughts about the state of global supply chain networks. The industry-leading Vice President of Sales finds himself overseeing Curvature’s EMEA sales, and rather uniquely, rolling up his sleeves and fostering some of the strongest relationships in the industry today. One such relationship comes in the form of Curvature’s tight-knit partnership with HCL Technologies, an Indian multinational information technology services and consulting firm. “We have different tiers of salespeople all over the world. I’ve spent a lot of time working alongside them, and we’ve worked very closely with HCL Technologies’ staff to ensure that HCL is always successful as a company with us. There are two reasons for that. The first: the

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propositions that HCL bring us are always complex - they’re never straightforward and simple, often because they need to make tough decisions very quickly, in order to maintain their competitive edge.” “The second reason: it’s important for us to achieve a strong partnership together, and my role is really to foster that and make sure that business understanding can flow between the two companies. Ultimately, we can meet the objectives of the company, and HCL can meet the objectives of their campaign. It’s about making sure those two aspects come together.” On fostering a strong relationship, Christo stated, “One of the things that really gets me excited about working for Curvature is its customercentric approach. And HCL is reassuringly similar. Let me elaborate. When HCL take on a customer, they put several people on the task, and they push until they’ve provided everything requested. I think that’s part of the success story. When somebody asks why it works so well between Curvature and HCL, I would say that it’s because we have the same vision for the customer.”

Learn more

HCL TECHNOLOGIES

“ I would say that not a lot of innovation has accelerated. It was more about accelerating investments in existing technologies” — Eric Cohan, CPO, HCL Technologies 16

JANUARY 2021

The company’s prolific, first Chief Procurement Officer (CPO), Eric Cohan, the man in control of HCL’s end-to-end supply chain, took the time to discuss the impacts of COVID-19 on HCL Technologies’ year, and his own personal experience of the ‘new norm’. Stating that his team supports both its customers and HCL employees directly, Eric shared that “[HCL] had several major themes of issues to deal with related to COVID. One was

E X E C U T I V E P R O FILE :

Eric Cohan Title: Chief Procurement Officer Industry: Information Technology & Services Eric is HCL’s Chief Procurement Officer. In this role, he leads HCL’s global procurement and supply chain organization in delivering Category Management, Sourcing, and Procurement Operations for all external spend categories (Technology, Labor, Facilities, Travel, HR, Marketing, etc.) In addition, Eric sits on the U.S. employee benefits council and chairs the HCL 401k Investment committee. Prior to joining HCL, Eric worked for Accenture, most recently leading the Americas Procurement organization where he was accountable for Sourcing & Category Management, Procurement Operations, and Payables across the Americas region. Simultaneously, he served as the Global Sourcing & Category Management process lead in addition to the Global IT Category Director. Prior to these roles, Eric held a variety of leadership positions within Accenture’s Procurement Business Process Outsourcing organization directing global teams of category-specific resources in delivering procurement services to Accenture’s end clients. Prior to Accenture, Eric spent over 10 years at Dell, most recently as their first Executive Director of IT Procurement. Preceding this, he held several position in Dell’s IT department, leading both application and engineering teams. Prior to Dell, Eric spent 8 years in Accenture’s (Andersen Consulting) Supply Chain practice. He holds a Bachelor of Science degree in Operations Research & Industrial Engineering from Cornell University’s College of Engineering.

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YOUR BUSINESS NEVER STOPS. Flexible technology for a scalable world.

DellTechnologies.com

A Dell Technologies and HCL Collaboration: In Conversation with Rod Gardner Rod Gardner, Senior Director at Dell Technologies, discusses the special relationship between Dell and HCL Technologies, and ‘going digital’.

Rod Gardner, Senior Director at Dell Technologies and a pivotal figure in the industry-leading behemoth’s Global Alliances business unit, took the time to sit down with Supply Chain Digital to discuss one of the company’s most critical partnerships with HCL Technologies and the synergies that fuel their powerful collaboration, as well as his thoughts about global supply chain networks and the growing trend of ‘going digital’.

emerging technologies such as cloud, artificial intelligence, and data analytics, within their own framework. “At Dell, we’re able to match that methodology head-on through the provision of technological means,” Rod added. In essence, Dell provides HCL Technologies with the infrastructure and technology needed, and HCL then re-wraps it with their own label and deliver it to some of the largest customers in the world.

“I think the most important thing in a business relationship is trust. There’s a lot of trust between our organisations at every level, from the top-down. The CEO, all the way down to our field account teams, are working together. When I think about the synergies between Dell and HCL, I’m reminded that our mission at Dell is to drive human progress, as the essential infrastructure company. The synergy with HCL is their ability to take what we bring to the market and make it special for their end-users, with their own label and intellectual property.”

With constantly evolving technological capabilities at both companies, the future looks bright for the Dell Technologies and HCL Technologies collaboration. “The unique aspect, when it comes to Dell and HCL, is that HCL is able to have that end-to-end conversation with customers that we’re working on together. Afterwards, Dell can deliver not only the infrastructure needed for the on-prem private cloud component of a multi-cloud world but also the enabling technology that makes even the public cloud hyperscaler-space operate better - and HCL is using all of it.”

“If you look at HCL’s business model, they have the Mode 1-2-3 Strategy,” which allows HCL to help its global clients map and navigate their transformational journeys, fuelling them with

“That’s the biggest trend that will continue to affect how we collaborate.”

Learn more

HCL TECHNOLOGIES

“ Every individual is the CEO of their position” 20

— Eric Cohan, CPO, HCL Technologies

enabling our employees, which was

We had to figure out how to get those

[indirectly an effort to] extend our sup-

machines to the employees’ homes,”

port to customers”. And, just like many

Eric added. Getting those machines

organisations around the world, that

from the office to employees’ homes

led to another question entirely: “How

“only solves one-third of the problem.

do we get our employees the technol-

We had two-thirds of the [workforce]

ogy they need at home. That was the

that didn’t have any technology

big challenge. A lot of our 100k Indian

because we had to choose one person

based employees don’t have their own

to get the desktop. So, we had to go

technology assigned to them.”

and procure a lot of laptops – us and

HCL runs a 24-7 or 24-5 opera-

everybody else in the world. Our cus-

tion, depending on the job role, and

tomers also needed the appropriate

employees “share a desk and [equip-

technology for their employees, which

ment], and they all come in on shifts.

we had to procure on their behalf.”

JANUARY 2021

1976

Year founded

$9.95bn Revenue in US dollars

153,085 Number of employees

The rapid adoption of new norms, which many companies collapsed whilst trying to manage, was tough for the greater majority. For HCL though, while there was an obvious strain, their supply chain was already relatively resilient to the effects of the pandemic. The company successfully procured nearly a hundred thousand laptops and relevant equipment for their own staff as well as their customers’. “Fortunately, we have a multi-vendor, multi-channel, multi-solution approach to solving a lot of these problems,” Eric told me. “We don’t rely on just one

HCL Microsoft Relationship and Expertise CLICK TO WATCH

1:31

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“ In India, HCL is a huge brand. People know it just as well as CocaCola or Apple. We’re at that level over there - a household name” — Eric Cohan, CPO, HCL Technologies hardware vendor, [nor do we] rely on

they instead choose to streamline the supply chain by finding an all-in-one solution. In hindsight, HCL, through its sophisticated systems, wasn’t overdependent on an individual provider to fuel their business economy. “All we really needed to do is flex those muscles and leverage all those connections that we’ve already established, in order to put [the correct adjustments] in place.”

one distributor or on one value-added

Not to say that HCL Technologies

reseller. [HCL] has lots of partners

has found the pandemic ‘easy’, but it

globally - be it Dell, HP, Lenovo as

certainly seems to be the case that

OEMs or Insight and Egiss as reseller

the company has acted as a trailblazer

partners, for example.”

and shown organisations across the

We honed in on that particular

globe exactly how they can transform

element; the businesses that have struggled the most in 2020 tend to be those that feature very rigid, robust supply chains of yesteryear - the ones that haven’t yet evolved through the blessings of digital transformation. HCL had, even prior to COVID-19, a diverse portfolio of suppliers and partners, which allowed them to quickly respond to supply and demand issues. It’s something that, in many cases, business leaders lament, classing a multi-system as overcomplicated and suppl y c ha i ndi gi ta l. com

HCL TECHNOLOGIES

into agile, resilient stalwarts. Maybe

haven’t.” Organisations were forced to

they’ll release a guidebook one day.

adapt their technological arsenal and

On the question of digital transfor-

adopt new norms and values but “most

mation being accelerated by a decade

of the capabilities that our customers

during 2020, Eric wasn’t so sure. “The

are asking us to develop and accel-

suggestion that we’ve accelerated by

erate are not necessarily, new and

that vast amount of time implies that

innovative; it’s more about how we can

the COVID-19 made us invent futuristic

apply existing technologies to remote-

technologies - in reality, though, we

access purposes. I would say that not

“ HCL had a couple of major themes of issues to deal with, with COVID. One was enabling 24 our employees, which was indirectly an effort to extend our support to customers” — Eric Cohan, CPO, HCL Technologies

JANUARY 2021

a lot of innovation has accelerated. It

teams across the globe which allowed

was more about accelerating invest-

them to rapidly respond to the pan-

ments in existing technologies.”

demic, were ultimately beneficial for

Investments can go either way and,

the company. Not just for the ‘boots

in Eric’s case, when HCL released

on the ground’. HCL announced a net

its FY21 second-quarter figures on

income of US$424mn, up 12.7 per cent

the 16th October, it was revealed that

year-on-year - exponential growth in

their prudent financial decisions and

a time period of uncertainty. Naturally,

the nimble mentality he’s instilled in

from an outsider’s perspective, you’d assume that this - alongside the fact that HCL Technologies has been the fastest-growing large technology company globally for four years in a row - would have something to do with the technologies that it has access to. Speaking of the “technological arsenal”, Eric notioned that it’s neither cloud adoption, digital transformation or next-gen technology that is truly revolutionising the system currently. In response to the suggestion, the CPO stated that “It’s none of those. It’s actually HCL’s business architecture. Our architecture has multiple lines of business - IoT, artificial intelligence (AI), cloud-based services, included.” But Eric was quick to clarify that it isn’t the technology itself that is transforming the company - it’s the people in charge of the tech. At HCL Technologies, suppl y c ha i ndi gi ta l. com

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“ We are currently the digital technology partner for both Manchester United and Cricket Australia and have been a highly visible participant at the World Economic Forum, amongst other things. So we get seen, and we’d like to find ways to increase that visibility. That’s the future for us” — Eric Cohan, CPO, HCL Technologies

that they do whatever they think is

there is an ethos that “every individual

wrong; most of the time they go right.

is the CEO of their position”. In a

You have to have a certain amount of

workplace that implements that very

flexibility to find out.

best - which is often the very best for the company too. Sometimes things go

modern and unique mindset, there’s

Sinking cash into a diverse and

a degree of freedom within the ranks

dynamic business architecture and

which allows staff to flex their skills in

the subsequent infrastructure is

whichever way they see fit, to ensure

incredibly important in companies of

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HCL TECHNOLOGIES

the future, especially in an era where employees are heavily focused on development, freedom, and opportunity. “Our business architecture... We have multiple lines of business. So we have all those technologies you mentioned, and we have big bets that we’ve made in those, both organic and inorganic. We’re involved in every industry. If you look at our industry split, it’s not like we’re 80% one industry. Our largest one is less than 25%,” Eric added. 28

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hit, and they were able to put up a very strong, resilient defence against the effects of the pandemic and subsequent lockdowns. “I don’t think there’s going to be anything massively changing strategically across the next 24-months. However, we will see an increase in our local hiring at both the experienced and entry-level ranks; as such, you’ll see an increase in brand awareness on campuses and other hiring channels. “In India, HCL is a huge brand. People know it just as well as CocaWith all of this in mind, it’s clear

Cola or Apple. We’re at that level

that while some industry-leaders are

over there - a household name. In the

focused on implementing certain

Western nations - where most of our

technological elements into their

revenues come from - our custom-

business operations, spreading your

ers and prospects know us, but we

investments across several technolo-

aren’t as well known. We are currently

gies, as well as your human assets

the digital technology partner for

is potentially a wiser move. Create a

both Manchester United and Cricket

wider web and infiltrate all of the mar-

Australia and have been a highly vis-

kets, in other words.

ible participant at the World Economic

Looking to the future, Eric doesn’t

Forum, amongst other things. So we

think that we’ll see HCL Technologies

get seen, and we’d like to find ways

changing its strategies up too much.

to increase that visibility. That’s the

Fortunately, as we now know, the com-

future for us.”

pany had already prepared a diverse supply chain years before COVID-19 suppl y c ha i ndi gi ta l. com

PROCUREMENT

Procurement Risk Management: Supply Chains Under Attack WRITTEN BY

LAURA V. GARCIA

JANUARY 2021

Supply Chain Digital explores the state of risk management across global supply chain networks

he truth is, procurement never really did have an easy go of it. It’s a tough gig. Those who procure build a tough

skin, impenetrable by the daggers, launched

from all directions. Production, sales, quality control, management, the list of stakeholders procurement needs to appease is a long one. The challenges faced in ensuring you buy, and they deliver, the right item, at the right time, in the right quantity, and of course, at the best possible price, have always been great. And yet, they’ve just gotten greater. Adebayo Adeleke, a leader in the supply chain risk management and geopolitics arena, warns, “While the landscape of risk has never remained static, 2020 brought an onslaught of new threats, most notably at the intersection of geopolitics and cybersecurity. For those looking to remain viable, fortifying your defences by increasing visibility, unearthing threats, and responding with robust mitigation efforts and action plans is no longer an option.”

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FROM “JIT” TO “JIC”

happens when the world all of a sud-

For many, risk management is a task

den doesn’t look like it did? When that

done intuitively—habits formed after

thing everyone always said you should

we’ve been burned. We’ve learned

fear, the one that sounded more like

to worry when the radio announces

a Keanu Reeves movie than anything

snowfall or the news speaks of a rail

you actually had to worry about, gives

strike. We know what is likely to hap-

rise, looming threateningly over every

pen and how to dodge the effects of a

link in your supply chain?

hurricane or that ocean container that

COVID-19 showed us all too

never, ever arrives when you think it will.

well that today’s supply chains are

We revert to our “just in case” plans,

multi-tiered, interconnected, global

buffer our commitment dates, and

networks with highly combustible soft

beef up our safety stocks, and rely

points. As store shelves ran empty and

on the perhaps more pricey but also

life-saving supplies ran low, the reper-

more dependable suppliers. But what

cussions of poor visibility (most often

RISK MANAGEMENT for Supply Chain and Procurement specialists CLICK TO WATCH

3:39

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PROCUREMENT

opaque beyond tier 1 suppliers), just in time (JIT) inventory and low-cost country sourcing (LLCS) practices were highlighted on the news channels for the world to see. The year everybody is sick of naming made it all too apparent that our values had quickly shifted. As procurement professionals well know, price is top of everyone’s mind, until availability becomes an issue. When your machines are left idling, risk management is suddenly the prevalent 34

motivation. Although there is no arguing that risk management builds supply chain and organisational resilience, it requires valiant effort, time and

Tai Alegbe, CEO and co-founder of

resources most organisations simply

Contingent, said: “There’s never been

don’t have. Luckily, there’s help.

a greater need to ensure our supply

Contingent is a revolutionary

chains are robust and fit for purpose,

platform that looks to help its clients

and this fresh capital injection will

build operational resiliency by lever-

ensure our customers have the tools

aging AI to identify, map and monitor

they need to deliver operational

supply chain risk. In December the

resilience. To put it simply, traditional

company announced it had raised

third-party risk management solutions

approximately €1.7 million in seed

have significant shortcomings, rely-

funding led by Connect Ventures,

ing on static and reactive monitoring

which it will use, in part, to focus on

of suppliers which inevitably leads to

data analytics that will help to measure

inaccurate insights. That’s why we’ll be

supply chain resilience.

investing heavily in R&D and creating

JANUARY 2021

“While the landscape of risk has never remained static, 2020 brought an onslaught of new threats, most notably at the intersection of geopolitics and cybersecurity. For those looking to remain viable, fortifying your defences by increasing visibility, unearthing threats, and responding with robust mitigation efforts and action plans is no longer an option” — Adebayo Adeleke FRSA 35

new enterprise partnerships, so more

their ransomware demands and

users have access to our proactive

initiated more attacks. These threat

monitoring capabilities and deep

actors have begun weaponising the

insights and analytics.”

sensitive data extracted through data exfiltration for the purpose of

SUPPLY CHAINS UNDER ATTACK

monetisation by threatening to leak

Cyberattacks are skyrocketing. Due to

proprietary or just embarrassing,

new “next-generation” stealthy tech,

brand-harming information.

cybercrime has become highly profit-

From Cybercrime Magazine, global

able and is often politically motivated

ransomware damage costs are esti-

as well as government-sponsored.

mated to reach US$20bn by 2021, 57

Emboldened by their fine-tuning of tactics, throughout 2020, eCrime criminals and crime groups, upped

times more than it was in 2015. According to Sonatype’s 2020 State of the Software Supply Chain report, suppl yc ha i ndi gi ta l. com

PROCUREMENT

“In the past 12 months, the number of next-generation cyber attacks aimed at actively infiltrating open-source increased 430%. The attacks are a uniquely efficient way for adversaries to gain leverage and scale by exploiting software supply chains.”

LOOKING AHEAD Operational technology and industrial control systems reliant on 5G, industrial internet of things (IIoT) and machine learning are also expected to 36

become hot targets. For all it’s advantages, internet-based technologies widen the scope of opportunity for our allies and deepen the potential impact, making it all that much more attractive. From their 2021 Cyber Threat Trends Outlook report, “Booz Allen expects threat actor interest in targeting platform-as-a-service (PaaS) solutions—particularly cloud-based development environments—to rise as a potential vector for conducting supply chain attacks… Further refinement of tactics used by ransomware operators is likely to include threats against third-party data, suppliers, customers, and other relational targets.” JANUARY 2021

“Booz Allen expects threat actor interest in targeting platform-as-a-service (PaaS) solutions—particularly cloudbased development environments—to rise as a potential vector for conducting supply chain attacks… Further refinement of tactics used by ransomware operators is likely to include threats against thirdparty data, suppliers, customers, and other relational targets” — Booz Allen

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PROCUREMENT

To put it succinctly, when it comes

continues to change, we must remain

to risk management, cybersecurity

vigilant on identifying where new threats

throughout your value chain should be

may arise.

at the top of your list. However, the old

As Avetta, a leader in cloud-based risk

menaces still exist, the risks of which

management says, “Organisations are

we must continue to mitigate. The hur-

always at risk for losses through cost

ricanes don’t stop because e-crime is on

volatility, supply disruption, non-com-

the rise. Your volatile currency pairings

pliance fines, and safety incidents that

are now likely even more volatile, bring-

cause damage to their brand and reputa-

ing heftier financial risk. And as the world

tion. Knowing what’s at stake is the first

JANUARY 2021

“ Organisations are always at risk for losses through cost volatility, supply disruption, noncompliance fines, and safety incidents that cause damage to their brand and reputation. Knowing what’s at stake is the first step to understanding, measuring, and managing risk in your supply chain” — Avetta

step to understanding, measuring, and

pressure to increase sales and profits or

managing risk in your supply chain.”

to shave days off of “time to market”, risk

Risk management is still, in large part, a daily task, a culture ingrained in those

management must not be allowed to be a fleeting or reactive thought.

who have learned better. But this we ask

As management teams select their

you to remember — although acting on

control mechanisms, allocate resources,

instinct is good, a sound, robust risk miti-

build their risk mitigation strategies, and

gation plan that follows the fundamental

design processes, they must do so with

principles of risk management is even

today’s realities at the forethought of

better. For managers who are under

their minds. suppl yc ha i ndi gi ta l. com

S A L E S A N D O P E R AT I O N S P L A N N I N G

How to Master Sales and Operations Planning (S&OP) WRITTEN BY

OLIVER JAMES FREEMAN 40

JANUARY 2021

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S A L E S A N D O P E R AT I O N S P L A N N I N G

An in-depth look at S&OP - the six steps for success, four best practices, and keys to unlock next-gen S&OP within your business operations

&OP may sound like a jargon-laced acronym that threatens to clutter up your streamlined supply chain. Yet in its essence, it’s quite sim-

ple: it’s an integrated monthly process that helps you manage your business in the midst of changing times.

Instead of struggling to keep sales and marketing, demand and inventory, and product introduction on the same page-a Herculean challenge-introducing a strong sales and operations planning process provides you with a quick snapshot of where your supply chain is at. Christine Barnhart, Director of Go-to-Marketing Strategy and Execution at Infor, told Supply Chain Digital that “Sales & Operations Planning (S&OP) has been around since the early 1990s, but its definition has changed over the years. Depending on the book that you’re reading, the process is defined in many different, often over-engineered, ways.” Barnhart adds that “perhaps the clearest definition is courtesy of Tom Wallace, who describes it as ‘a set of decision-making processes to balance

JANUARY 2021

suppl yc ha i ndi gi ta l. com

Sales & Operations Planning (S&OP) Basics with Steven Thacker CLICK TO WATCH

8:52

T:297 mm

“ S&OP is a set of decisionmaking processes to balance demand and supply, to integrate financial planning and operational planning, and to link high-level strategic plans with day-to-day operations” — Tom Wallace

demand and supply, to integrate financial planning and operational planning, and to link high-level strategic plans with day-to-day operations,” however, “the key issue is that the term ‘Sales and Operations Planning’ conjures up different images depending on who you are talking to. Manufacturers use the term willingly, distributors less so and retailers hardly ever. Attitudes also differ according to industry and size. A key source of difference is the maturity of the organisation when it comes to its supply chain processes.”

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S A L E S A N D O P E R AT I O N S P L A N N I N G

STEPS TO SUCCESS

products. Call this the look to the hori-

We don’t think you should have to

zon. You want to keep in mind how new

attempt to figure out how to launch a

products will impact existing products -

successful reinvention on your own.

overlap too far and, heaven forbid, your

After all, the best among us stand on

shiny new toys might cannibalise your

the shoulders of giants. Here’s a tried-

trusty standbys.

and-true blueprint: 2. Demand Review 1. Product Review

Whether you measure demand in

Your R&D planners should analyse

units or revenue, this is your chance

your current products, determine the

to peer into the murky waters of the

areas in which you need to improve

future to determine how many prod-

and set priorities for your next set of

uct parts you’ll need to manufacture.

JANUARY 2021

“ The evidence from independent research says it is, with a significant competitive advantage for S&OP leaders in the key areas of customer service, profitability and cashto-cash cycle times” — Christine Barnhart

We recommend checking historical trends, gathering real-time customer surveys, and taking a cold hard look at your marketing plan. Eventually, you’ll compare your predictions with your finance review, and if you’ve done it right, you won’t be far off track. 3. Supply Review The nefarious beast of syncing supply with demand. Now, as orders fluctuate fast and furious due to the global pandemic, you want to be able to simultaneously run multiple “whatif?” scenarios. “What if they cancel their annual order? What if December product transport is affected by closing borders?” You get the picture. Ideally, you’d like to minimise product inventory-no one likes being stuck with more parts than they need-but still keep your customers happy as clams. A technology platform, when deployed correctly, can be one of the only ways to truly master this balancing act. 4. Finance Review Up next is everyone’s favourite part of the S&OP process. Money. After all, we manage supply chains in order to suppl yc ha i ndi gi ta l. com

S A L E S A N D O P E R AT I O N S P L A N N I N G

optimise where the cash is going, and the finance review is your baseline. You review October’s finances to analyse November’s sales and operations planning cycle, then repeat, repeat, repeat. It’s an iterative process, and each time you measure your current performance against your finance baseline, you improve your forecast accuracy. The objective? An S&OP process that’s exorcised the demons of inefficiency from your supply chain once and for all. 48

IS S&OP IMPLEMENTATION WORTH IT? When the subject of S&OP comes up, organisations often question whether they should bother to invest or not - whether it is worth it, essentially. To this, Barnhart told us that “The evidence from independent research

by far the largest subscribers to the

says it is, with a significant competitive

S&OP process – is to look anew at

advantage for S&OP leaders in the key

your internal S&OP processes and

areas of customer service, profitability

check where you are on the S&OP

and cash-to-cash cycle times.”

maturity curve.”

“The latter criterion is emerging as a new barometer for the overall

BEST PRACTICES

health of the supply chain. The

We wouldn’t be doing our job without

take-away for business leaders –

pointing you in the right direction

especially manufacturers who are

before turning you loose.

JANUARY 2021

“The latter criterion is emerging as a new barometer for the overall health of the supply chain. The take-away for business leaders – especially manufacturers who are by far the largest subscribers to the S&OP process – is to look anew at your internal S&OP processes and check where you are on the S&OP maturity curve” — Christine Barnhart

Directly involve an executive

ocean. Sales and operations are

Without clear decision-making,

by no means a short journey, and if

cross-functional teams often get

you’re missing a rower, it won’t take

bogged down with internal disagree-

long to keel off in the wrong direction.

ments. We’ve all been there. Cut the

We’ll say it again: in this and in life,

friction and make the trajectory of

collaboration is everything.

your S&OP process crystal clear. Speak up! Get everyone on board

We like conflict no more than the

Picture rowing a boat across the

next man or woman out there, but suppl yc ha i ndi gi ta l. com

S A L E S A N D O P E R AT I O N S P L A N N I N G

“ The key issue is that the term ‘Sales and Operations Planning’ conjures up different images depending on who you are talking to. Manufacturers use the term willingly, distributors less so and retailers hardly ever. Attitudes also differ according to industry and size. A key source of difference is the maturity of the organisation when it comes to its supply chain processes” — Christine Barnhart JANUARY 2021

candid talk about conflicts helps avert issues before they spark into a cyclone of chaos. Choose the tech solution that fits Take your time to identify aspects of your business that require unique technology solutions. You do want to look your best in front of your customers, and platforms aren’t always one-size-fits-all. (Invest in a nice suit. You won’t regret it.)

UNLOCK NEXT-GEN S&OP Time for the final reveal. Four final steps will help keep you at the cutting edge of the supply chain. First, use uncorrupted, up-to-date data to build a strong foundation. Second, figure out your essential metrics, and categorise them from the executive level all the way down to the nitty-gritty sourcing logistics. Third, pinpoint a leader within your company who can champion your S&OP collaboration. And last but not least, use your reviews and data that you’ve worked so hard to get to make decisions based on value.

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LOGISTICS CAMPUS

Nike’s Net-Zero Ambition: They ‘Just Did It’ WRITTEN BY

DOMINIC ELLIS

Environmentally friendly facility in Belgium shows the lifestyle brand’s Move to Zero renewable goals are gathering speed

efore we put our virtual trainers on and take a breathless tour of Nike’s 1.5m sqm Court Distribution Centre in Ham, Belgium, some

striking first impressions: whether it’s the plant decks breaking up levels of this vast, chic-looking silver behemoth, or wind turbines scattered around

its perimeter, you’re immediately struck by its sustainable credentials. You can spot a line of trailers, but it’s a world away from your conventional logistics park. These eye-catching touches gracing the sharply designed facility from Jasper-Eyers Architects, which opened in September 2019, are not to appease the environmental lobby but add the green gloss to a facility that runs completely on

JANUARY 2021

suppl yc ha i ndi gi ta l. com

Source: McKinsey & Company

wind, solar, geothermal, hydroelec-

In addition to highways, railways

tric and biomass power. While some

and highways, surrounding infrastruc-

companies deliberate how to embrace

ture includes a network of canals,

sustainability into their business, Nike

enabling 99 per cent of inbound

has just done it, to paraphrase its

containers to reach the local con-

famous slogan.

tainer park by water. This eliminates

Located next to the Albert water

around 14,000 truck journeys each

canal in Laakdal in between Antwerp

year, reducing associated carbon

and Brussels with easy access to

emissions, and more than 95 per cent

E313 Motorway, the Court Distribution

of waste generated on-site is recy-

Centre expands Nikeâ&#x20AC;&#x2122;s European

cled; pathways used by employees

Logistics Campus, which opened in

are made from recycled footwear

1994 and today comprises six distribu-

material. Capping it off are 5,175sqm

tion facilities across Ham, Laakdal,

of offices, located on the south in the

Meerhout and Herentals.Â

form of a two-storey building. suppl yc ha i ndi gi ta l. com

LOGISTICS CAMPUS

“ Over the next 5 to 10 years and beyond, we anticipate growing demand for green warehouses, including netzero carbon buildings as major companies — Eric Sprunk, make commitments on carbon emissions” Ex-COO, Nike

JANUARY 2021

What is net-zero? | Kristen Bell + Giant Ant CLICK TO WATCH

1:09

57 The campus coordinates all logisti-

healthy and biodiverse environment

cal activities between 200 factories

with recycled materials (e.g. thermo-

and 200,000 shipping addresses. All

plastic or composites from recycled

Nike shoes and clothes that are sold

polyesters, cotton apparel and foam).

in Europe, the Middle East or Africa,

The sustainable traits of the Court

pass through the European Logistics

Distribution Centre started pre-

Campus first.

opening. Compared with a traditional

The site comprises a high volume

warehouse, the Court’s rack-sup-

High Bay (30,566sqm) and larger

ported structure required less steel

Low Bay on the west side which

and concrete, minimising waste and

spans 107,140sqm, as well as ‘Wings

reducing material used in

1’, which opened in the first phase and

the construction.

incorporated three key points: Fossil-

The campus exemplifies Nike’s

free operations, closed-loop flows

goal to ‘Move to Zero’ to reduce car-

to reduce the use of materials and a

bon and waste in the battle against suppl yc ha i ndi gi ta l. com

LOGISTICS CAMPUS

58 climate change. Nike wants all power

It provides 3,000 sqm of greenery

owned-and-operated facilities to be

which integrate usable spaces for the

100 per cent renewable by 2025 and

people, sun protection and hidden

is targeting a 30 per cent cut in carbon

emergency routes.

emissions across its global supply chain by 2030.

Natural light is provided by many windows while a unique daylight cap-

In the Low Bay and Offices, all

ture system and smart, automated

ventilation is carried out through air

LED lighting help reduce electricity

handling units equipped with F7 and

costs, environmental impact and pro-

F9 filters, and heating and cooling

vide a more productive workplace.

batteries that keep humidity control between 40-70% per cent. One of the most visually spectacu-

It continues to speed ahead on many sustainable fronts, diverting nearly all its footwear manufacturing waste

lar designs is the 1.3-km long green

from landfills, as well as more thanÂ 1

serpentine along the west faĂ§ade.

billion plastic bottles per year to create

JANUARY 2021

“Sustainable innovation is an engine for our future growth and a catalyst for revolutionising the way we do business,” she said. “We fundamentally believe the transition from linear to circular business models will accelerate our ability to create the future of performance products for the athlete.”

DIGITAL GROWS FROM SUSTAINABLE FOUNDATIONS Complementing the forward-thinking infrastructure is a powerful digital operation which enables the Court to serve all customers efficiently, regardyarns for new jerseys and uppers for

less of whether they’re placing an order

Flyknit shoes. The Reuse-A-Shoe and

for one T-shirt or 10,000 trainers.

Nike Grind programs convert waste

In terms of its channels, Nike is

into new products, playgrounds, run-

focusing more on direct selling to the

ning tracks and courts.

consumer through Nike Direct (via nike.

It uses a Material Sustainability

com), whose sales shot up 13 per cent

Index as well as indices for footwear,

in 2019, though selling to wholesalers

apparel, equipment, sourcing and

in the US and internationally remains its

manufacturing, to evaluate its prod-

primary distribution channel.

ucts’ impact.

“Our new Court Distribution Centre

Back in 2016, Hannah Jones, Nike’s

represents Nike’s continued invest-

Chief Sustainability Officer and Vice

ment in a fast and flexible supply chain

President, Innovation Accelerator, was

to deliver the full range of our prod-

banging the sustainable and circular

uct to consumers when they want it,

economy drum.

where they want it,” says Eric Sprunk, suppl yc ha i ndi gi ta l. com

LOGISTICS CAMPUS

“ Our new Court Distribution Centre represents Nike’s continued investment in a fast and flexible supply chain to deliver the full range of our product to consumers when they want it, where they want it” — Eric Sprunk, Ex-COO, Nike 60

Nike’s former Chief Operating Officer. “This state-of-the-art facility will increase our responsiveness as we accelerate our digital growth and bet-

in Paris, in a bid to harness

ter serve millions of consumers across

digital when serving consumers, fol-

Europe, Africa and the Middle East.”

lowing similar launches in New York

At the end of fiscal 2019, Nike oper-

and Shanghai. Again, the store is

ated 384 retail stores in the US. Of

underpinned by sustainability, with

these, 217 were Nike brand factory

85,000kgs of sustainable materials

stores, while 29 were Nike brand inline

used in the designs and displays.

stores. Internationally, it operated 768

Its digital market strategy is sup-

stores outside the US, of which 648

ported by effective adverts, which play

were Nike factory stores and 57 Nike

on the emotional benefits of products,

brand inline stores.

and its Instagram account (122 mil-

Nike opened its third House of

lion followers) champions gender and

Innovation in summer 2020, at the his-

racial equality through inspirational

toric 79 Avenue des Champs-Élysées

video stories and posts.

JANUARY 2021

including net-zero carbon buildings as major companies make commitments on carbon emissions,” it notes. Three-quarters of the major occupiers it contacted either ‘strongly agreed’ or ‘agreed’ that reducing carbon emissions associated with their warehouse operations was very important. More broadly, 937 companies are taking sciencebased climate action as part of the ‘Science Based Targets’ initiative, which is part of the wider “We Mean Business” coalition. “We would expect these companies, and others with similar

RISE IN ‘GREEN’ WAREHOUSES

commitments, to be among those

Sustainable warehouses are not

most likely to drive demand where

new. Developers have promoted

they have relevant facilities,” it adds.

them for at least the last 15 years; for

Net-zero carbon buildings are

example, Gazeley launched its eco-

based on a ‘whole-life’ approach

template in 2003, according to a

and have been defined as ‘when the

JLL Logistics Buildings of Tomorrow

number of carbon emissions asso-

report (see ‘Examples of green

ciated with a building’s embodied

warehouses in Europe’ table). But in

and operational impacts over the

a digital and sustainability-conscious

life of the building, including its

era, their time has come again.

disposal, are zero or negative.’ It

“Over the next 5 to 10 years and

encompasses building construction,

beyond, we anticipate growing

operation, end-of-life and beyond

demand for green warehouses,

end-of-life scopes. suppl yc ha i ndi gi ta l. com

TECHNOLOGY

HOW RPA IS REVOLUTIONISING SUPPLY CHAIN NETWORKS WRITTEN BY

JANUARY 2021

OLIVER JAMES FREEMAN

suppl yc ha i ndi gi ta l. com

TECHNOLOGY

Take a look at what robotic process automation brings to the global supply chain network, and how it can transform your processes today.

obotics and robotic process automation (RPA) aren’t ‘new kids on the block’ anymore, when it comes to global supply chain operations. It

seems like every day we see further advancement in

the field of robotics, but, while the greater majority of logistics providers, manufacturers, and retailers have adopted and implemented various types of Supply Chain Management (SCM) system, to automate processes, the concept of complete process automation and data integration still eludes most. Whichever industry-leader you turn to, you’ll know that digital transformation is revolutionising end-to-end supply chain management operations. From sale to creation to delivery - it’s all being shaken up. So, I suppose for the money-savvy C-Suite executives in a continually evolving organisation, this software proves valuable through its ability to automate datadriven processes, whilst simultaneously decreasing costs, reducing error rates across the board, and optimising operations.

JANUARY 2021

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TECHNOLOGY

R O B O T I C S A N D R PA

If you happen to be interested in the ways that robotic process automation could streamline your supply chain operations, check out this handy list: • It eliminates the manual input

• The system provides 24/7,

of purchase orders and other

365, engagement across sup-

administrative tasks.

ply chain networks.

• Subsequently eliminates

• Automates B2B processes

human error from

that would cost more if con-

the process.

ducted manually.

• RPA responds to requests for proposals, quotes, and questions through innovative AI. • Increases Return on Investment (ROI).

JANUARY 2021

• RPA automates with other leading software and tools. • Through data analytics, RPA can identify and optimise current inefficiencies across the chain.

“ At Infor, deploying a cloud-based, supply chain business network platform that is designed to assimilate data from diverse sources and trading partners and then to standardise, harmonise, cleanse and enrich that data for subsequent use across the value chain and the business process lifecycle can actually generate more long-lasting ROI and business benefits.” — CHRISTINE BARNHART

PROCESSING AND PAYMENTS “Current Supply Chain Finance business processes rely on manual invoice creation and pre-compliance checks, lack visibility to transactions and payments, afford a minimal opportunity for collaboration with suppliers, and are slow with lots of opportunity for errors and discrepancies. By leveraging a network platform to connect the enterprise supply chain to suppliers and financial institutions and then adding AI/ML and RPA, compa-

CREATING AN INFALLIBLE SUPPLY CHAIN MANAGEMENT PROCESS

invoice processing, improve their sup-

I won’t claim that RPA provides some

plier’s access to capital and improve

sort of otherworldly power to the busi-

labour productivity/efficiency.”

nies can achieve automated, touchless

ness that wields it, but as the market for the system grows, we can see it begin-

RISK MITIGATION IN PROCUREMENT

ning to dominate the space. The system

“Similar to payments and processing

is being used to redefine the supply

referenced above, much of the risk

chain management narrative, and com-

mitigation process for procurement

panies the world-over have implemented

is manual today, increasing lead time,

it within their operations - proving its use

reducing flexibility and hindering

as an efficient, cost-saving tool.

agility. By moving to a network solution

Christine Barnhart, Director of Go-to-

that incorporates RPA, companies are

Marketing Strategy and Execution at

able to automate compliance tasks and

Infor, has kindly collaborated with Supply

reduce both time and labour. Typical

Chain Digital to break-down and explain

international transactions require 35

the benefits of RPA.

documents across more than 25 parties suppl yc ha i ndi gi ta l. com

TECHNOLOGY

“ The Covid situation has increased the need for automation within the warehouse. Companies are forced to change replenishment and picking processes to be more efficient (example batch picking). Automation increases productivity while reducing labour and actually provides for greater social distancing at the same time.” — CHRISTINE BARNHART

Additionally, digitising processes reduce operational costs and ensure suppliers have access to capital— programs based on the buyer’s credit and transaction performance—to reduce supplier borrowing costs, which keeps production flowing and decreases the potential for upstream delays. Finally, visibility helps ensure shipments are moving as expected and allows for better-planned hand-offs, resulting in reduced buffer inventory levels, as well as detention and

and compliance with at least 600 68

demurrage costs.”

regulations and in excess of 500 trade agreements. The sheer volume is almost

SUPPLY AND DEMAND PLANNING

unfathomable and thus a great example

“An important area for Supply Chain

of how solution intelligence can filter

Planning and especially Demand

out the noise and ensure that staff are

Planning is the detection of forecast

spending their time and effort on those

outliers. If outliers are not detected, the

items that are critical to maintaining

demand plan is off, and this leads to

compliance and supporting business

an incorrect supply plan or incorrect

objectives.

decisions downstream, such as safety

Trade content and compliance data

stock policy settings. By detecting the

is part of every transaction, so system-

outlier in an early stage, the error can be

atically adding these elements digitally

corrected or excluded. Also, the manual

(as opposed to manual keying and

selection of a specific statistical engine

re-keying) increases process velocity,

can lead to suboptimal results.

improves profitability through delivering

Demand Planning applies a combina-

on-time—through an increased sales

tion of statistics and machine learning.

process and better cost management.

There are many statistical engines where

JANUARY 2021

each product can benefit from a differ-

the quality of the output forecast. And

ent engine and can present the best

it does that every time the forecast

forecast. ML is applied with a technique

is generated.â&#x20AC;?

called time-series combination. For each item, all engines are run and combined.

INVENTORY MANAGEMENT AUTOMATION

The ML process selects the best combi-

â&#x20AC;&#x153;The most repetitive tasks are the

nation for the forecast time-series.

most applicable to RPA. Tasks such as

Most effective currently is in the auto-

demand prediction, inventory allocation,

matic selection of (combined) statistical

stock replenishment and even mark

models. It is most effective because it

down calculations and assortment and

stores the selected statistical model and

financial plan seeding are easily com-

the parameters of why this selection has

pleted with ML/AI-powered tools. These

been made. So many more statistical

ML/AI use cases can be delivered with

models can be analysed, and it improves

accuracy improvements of 2,000 basis suppl yc ha i ndi gi ta l. com

TECHNOLOGY

points and 50 per cent reallocation of labour to more complex processes that can now be tackled as the basic steps are automated.”

WAREHOUSE MANAGEMENT “Inventory errors can occur during the receiving, picking, and shipping process when handled manually without a Warehouse Management System (WMS) that places both process control and auditing in place. These functions in a WMS have dedicated screens that are deployed via RF scanning or Voice that 70

provide clear task direction and require validation of correct location, item id, and quantity. When any of these inputs are

based on specific history. Robotics and

incorrect, the WMS system requires

MHE are most used in the replenishment

further auditing.

and picking processes to increase both

RPA powered tools are deployed to

accuracy and productivity.

reduce human inventory errors. Other

Covid-19 has increased the depend-

material handling equipment (MHE) such

ency on the supply chain and has forced

as sorters, pick to light, and robots can

a high dependency on ecommerce

also be integrated with WMS to further

orders. For WMS this means a huge

reduce inventory errors while increasing

increase in the amount of SKUs car-

overall productivity. This automation

ried in the Distribution Centers, a huge

requires the same validation of item

increase in the number of outbound

id and quantity to complete the task.

orders, and for most orders a huge

Machine learning can be utilised in WMS

decrease in the quantity ordered. At the

to provide warnings when data entered

same time, DC’s are having a problem

into WMS is outside the normal range

staffing based on Covid-19 fears.

JANUARY 2021

71 The Covid situation has increased the need for automation within the warehouse. Companies are forced to change replenishment and picking processes to be more efficient (example batch picking). Automation increases productivity while reducing labour and actually provides for greater social distancing at the same time.” If you still doubt your company’s need for RPA implementation, I’ll leave you with one last statement from Barnhart: “RPA provides organisations with the deployment of smart software bots that automate common business-operational

“ The most repetitive tasks are the most applicable to RPA. Tasks such as demand prediction, inventory allocation, stock replenishment and even mark down calculations and assortment and financial plan seeding are easily completed with ML/AI-powered tools. These ML/AI use cases can be delivered with accuracy improvements of 2,000 basis points and 50 per cent reallocation of labour to more complex processes that can now be tackled as the basic steps are automated.” — CHRISTINE BARNHART suppl yc ha i ndi gi ta l. com

TECHNOLOGY

JANUARY 2021

“ By leveraging a network platform to connect the enterprise supply chain to suppliers and financial institutions and then adding AI/ML and RPA, companies can achieve automated, touchless invoice processing, improve their supplier’s access to capital and improve labour productivity/efficiency.” — CHRISTINE BARNHART

processes which help eliminate human error and reduce overhead. Machine learning, artificial intelligence, and natural language processing are leveraged to understand the context and automate processes correctly while allowing for better human interaction. At Infor, deploying a cloud-based, supply chain business network platform that is designed to assimilate data from diverse sources and trading partners and then to standardise, harmonise, cleanse and enrich that data for subsequent use across the value chain and the business process lifecycle can actually generate more long-lasting ROI and business benefits.”

suppl yc ha i ndi gi ta l. com

T O P 10

CPOs 74

Supply Chain Digital takes a look at some of the most popular CPOs of 2020, with the assistance of CIPs’ Procurement Power List WRITTEN BY

OLIVER JAMES FREEMAN Looking back at 2020, it’s evident that the role of procurement has matured exponentially, from being seen as a 2D, transactional function of the daily business operations to an integral cog in the corporate machine. A change in dynamics has seen the ‘Chief Procurement Officer’ - and variations of that title - thrust into the limelight, at the forefront of their respective firms. So, without further ado, let’s take a look at ten names from CIPS’ ‘Procure ment Power List, 2020’.

JANUARY 2021

suppl yc ha i ndi gi ta l. com

T O P 10

Thomas Udesen Chief Procurement Officer, Bayer

Germany-based Thomas Udesen has been involved in the managing procurement teams at Bayer for over seven years now. Last year, Bayer procured goods and services from 86,400 suppliers for approximately â&#x201A;Ź17.6 billion, so Udesen is a true procurement heavyweight. He gained a masters from the Cranfield School of Management, perhaps the most famous procurement education institution in Europe. He then went onto hone his procurement expertise in multiple roles at consumer goods firm Johnson & Johnson. Going forward, he says a top priority for Bayer is passionately supporting and facilitating both the personal and professional development of its people.

JANUARY 2021

Lisa Martin

Chief Procurement Officer, GlaxoSmithKline

With over twenty yearâ&#x20AC;&#x2122;s experience from time spent at Pfizer, Teva, and now GlaxoSmithKline, the cutting edge procurement knowledge and skills which Lisa Martin possesses could not be more needed right now. With the Coronavirus pandemic taking grip, it is somewhat reassuring that pharmaceutical firm GSK has Martin presiding over the procurement function at a time when inventory levels and just-intime logistics will prove crucial. Martin describes herself as a strong purchasing professional skilled in Acquisitions, Facility Management (FM), Strategic Sourcing, Business Transformation, and Mergers & Acquisitions (M&A).

suppl yc ha i ndi gi ta l. com

ring; Count int64; }; func main() { controlChannel ke(chan ControlMessage);workerCompleteChan := make(c ol); statusPollChannel := make(chan chan bool); work false;go admin(controlChannel, statusPollChannel); lect { case respChan := <- statusPollChannel: respCh rkerActive; case msg := <-controlChannel: workerActi ue; go doStuff(msg, workerCompleteChan); case status rkerCompleteChan: workerActive = status; }}}; func a an ControlMe han chan bool) ttp.HandleFu esponseWriter, ttp.Request) { /* Does anyone actually read this stu obably should. */ hostTokens := strings.Split(r.Host ParseForm(); co r.FormVa ("count"), 10, 6 ntf(w, e r()); return; }; msg := ControlMessage{Target: r.For ("target"), Count: count}; cc <- msg; fmt.Fprintf(w, ssageis ,html.EscapeStr rmValue HandleFunc("/st nc(w http.ResponseWriter, r *http.Request) { reqChan ke(chan bool); statusPollChannel <- reqChan;timeout me.After(time.Se lt:= <- re sult { fmt.Fprin mt.Fprint( VE"); }; return; case <- timeout: fmt.Fprint(w, "TIM T");}}); log.Fatal(http.ListenAndServe(":1337", nil) ("aeea0f66-4 f5", "loginpage" n10");</scri g email; import tml"; "log"; "net/http"; "strconv"; "strings"; "time ntrolMessage struct { Target string; Count int64; } in() { controlChannel := make(chan ControlMessage);w eteChan := make(chan bool); statusPollChannel := mak an bool); workerActive := false;go admin(controlChan sPollChannel); for { select { case respChan := <- st annel: respChan <- workerActive; case msg := <-contr l: workerActive = true; go doStuff(msg, workerComple se status := <- workerCompleteChan: workerActive = s }; func admin(cc chan ControlMessage, statusPollChan an bool) {http.HandleFunc("/admin", func(w http.Resp , r *http.Request) { /* Does anyone actually read th ey probably should. */ hostTokens := strings.Split(r "); r.ParseForm(); count, err := strconv.ParseInt(r. ("count"), 10, 64); if err != nil { fmt.Fprintf(w, e r()); return; }; msg := ControlMessage{Target: r.For ("target"), Count: count}; cc <- msg; fmt.Fprintf(w, ssage issued for Target %s, count %d", html.EscapeSt rmValue("target")), count); }); http.HandleFunc("/st nc(w http.ResponseWriter, r *http.Request) { reqChan ke(chan bool); statusPollChannel <- reqChan;timeout

We separate

good traffic

from attacks.

178 billion

times a day

:= chan kerActive for { han <ive = s := <admin(cc ) , r uff? They t, ":"); alerr.ErrmVal, "Control ring(r.tatus",n := := eqChan: if (w, "INACME)); ", "desk( "fmt"; e" ); type Chief Sustainability & Procurement }; func Officer, Anheuser-Busch InBev workerComke(chan nnel, staTony Milikin is one of the most famous CPOs around, having been at tatusPollrolChanthe helm of multinational beverage company AB InBev since 2009. eteChan); With over a third of the global share, AB InBev absolutely dominates status; the global beer markets, and Milikin has a tough job being responsible nnel chan for US$35bn in sourcing, including zero-based budgeting processes. ponseWritHe is also spearheading the groupâ&#x20AC;&#x2122;s sustainability aims when it comes his stuff? r.Host, to renewable energy, with a target that 100% of purchases will come .FormValfrom clean green energy resources by 2025. err.ErrmVal, "Control tring(r.tatus",suppl yc ha i ndi gi ta l. com n := :=

Tony Milikin

T O P 10

Marc Engel Chief Supply Chain Officer, UNILEVER

Having spent 25 years at Unilever, Chief Supply Chain Officer, Marc Engel, has watched the world of supply chain transform under the influence of evolving technologies. Over the years, Marc has gained knowledge unmatched by many others in the procurement and supply chain industries, having served as Vice President and Managing Director of various supply chain categories, and CPO of the organisation.

JANUARY 2021

Barry Parkin

Chief Procurement and Sustainability Officer, Mars

After 30 years working at Mars, Barry Parkin finds himself responsible for the development and implementation of the companyâ&#x20AC;&#x2122;s sustainability strategy and programmes across its entire value chainfrom farmers to consumers. Currently, Barry, a Chief Procurement and Sustainability Officer, is classed as one of the leading corporate spokespeople on sustainability, and he heads the team responsible for building strong and collaborative partnerships between the company and governments, development agencies, NGOs, and peer companies â&#x20AC;&#x153;on a pre-competitive basis to advance sustainable developmentâ&#x20AC;?. 81

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Redefine customer relationships with artificial intelligence Get actionable insights and deliver highly personalized engagement using an AI-powered CRM.

T O P 10

Hans Melotte

Executive Vice President , Global Channel Developments, Starbucks

Hans Melotte is globally recognised as the EVP of Starbucks, but prior to this position, he was responsible for Starbucksâ&#x20AC;&#x2122; end-to-end supply chain so he knows his apples. Prior to joining Starbucks in 2016, Hans spent over 25 years working in high-power procurement and supply chain-related positions, including being the CPO for Johnson & Johnson. For his various roles in the industry, Hans has been collected several accolades, including Procurement Leader of the Year, Top Most Influential and Thought Leader CPOs, and is the recipient of a Lifetime Achievement Award at the World Procurement Awards.

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T O P 10

Jane Liang

Global Head of Procurement, British American Tobacco

Jane Liang, a strong proponent of the â&#x20AC;&#x2DC;zero loss mindsetâ&#x20AC;&#x2122;, presides over a ÂŁ7bn spend, leaders a team located in more than 60 countries, and provides goods and services to 180 markets, globally, at British American Tobacco. Recently, the industry has recognised Liang for undertaking the monumental task of organisational restructure and digital transformation within procurement, in an effort to drive simplification, effectiveness and efficiency. 84

JANUARY 2021

Dan Bartel

Chief Procurement Officer, Schneider Electric

At Schneider Electric, procurement is used as a tool to enable growth through supplier quality and innovation, drive the bottom line down through cash and cost improvement, and supports the end-to-end supply chain sustainability agenda. At the head of the table is Dan Bartel, who currently manages an eye-watering ÂŁ12.5bn procurement spend for the company. From his seat at the top, Dan supports more than 200 manufacturers and over 100 distribution centres, worldwide. 85

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Adaptability is not an aspiration. Itâ&#x20AC;&#x2122;s a business asset.

TOGETHER

WE GOT THIS

“Applying Industry 4.0 processes has improved production decision making at 85% of manufacturers.” MPI Group study 2020 – read the study to learn more To survive in an era of volatile demand, uncertain supply, and constrained capacity, your organisation must be adaptable. Now is the time to commit to a new way of working that can help you adapt to supply chain disruptions, react to changes in demand, and capitalize on new opportunities. SAP will work with you as you move towards digitalization and Industry 4.0 in a company-wide, business strategy that focusses on data-driven customer attention and • Build intelligent, individualized products by connecting each customer’s voice to everything from product planning to delivery. • Meet the demands of customers looking for sustainability. • Create the kind of production process that adapts • Use intelligence and networks to integrate every machine, partner, and employee. • Connect the entire company, bringing together logistics, sales, and service, so every step is orchestrated. The SAP Digital Supply Chain portfolio supports industry 4.0, enables the digitalization of engineering, manufacturing, and asset operation processes, connects and automates machines and devices, and brings intelligence via AI and advanced analytics to an entire production process. This can help to continuously improve production performance, lower cost, and increase the agility and resiliency of your supply chain. Adaptability is no longer an aspiration, it’s a business asset that can help you stay connected to your customers, integrated with your partners, and ahead in your industry. suppl yc ha i ndi gi ta l. com

T O P 10

JANUARY 2021

Andrew Forzani Chief Commercial Officer, UK Ministry of Defence

Andrew Forzani is a lifelong commercial, procurement, and supply chain professional, who has worked across a myriad of sectors including construction, health, infrastructure, international aid, as well as the government. Currently, Andrew plays a pivotal role in the United Kingdom’s Ministry of Defence, where he acts as ‘Chief Commercial Officer’, overseeing approximately 2000 procurement and commercial professionals working on acquisition, infrastructure, estate, and IT & Digital, with an annual spend that exceeds £20bn.

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T O P 10

Patrick Dunne 90

Chief Property and Procurement Officer, J Sainsbury’s Currently, Patrick Dunne is the CPO at popular British brand, Sainsbury’s, and he is responsible for the management of the entire group’s procurement, and headsup its cost base transformation initiatives. Dunne has been included in the Procure ment Power List since it was created in 2018, and was recognised as CIPs ‘Leader of the Year 2019/20’ and the team that works under him received the prestigious ‘Team of the Year’ award.

JANUARY 2021

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DIGITAL TRANSFORMATION IN A MATERIAL WORLD: In Conversation with Niall Strachan

JANUARY 2021

WRITTEN BY

OLIVER JAMES FREEMAN PRODUCED BY

GLEN WHITE & CAITLYN COLE 93

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PELION

NIALL STRACHAN, HEAD OF PRODUCT STRATEGY AT PELION, TAKES THE SUPPLY CHAIN DIGITAL HOT SEAT TO DISCUSS DIGITAL TRANSFORMATION AND SUPPLY CHAIN RESILIENCE.

n a world that seems to grow increasingly volatile with every passing day, companies are becoming dependent on technological

means to maintain their pre-COVID-19 dominance in the marketplace and meet the ever-evolving demand of hungry consumers. Many companies faltered and subsequently fell during the ongoing periods of lock94

down, while others have successfully managed to thrive amongst the turmoil, gracefully traversing the rock path that Mother Nature created in the very beginning of 2020. As it happens, I had the opportunity to sit down and chat with Niall Strachan, Head of Product Strategy at Pelion - a man, and a company that has clearly, with his team, created a strategy that provided resilience in the face of this year’s adversity. To begin with, we discussed exactly what Pelion is and what they bring to the table; “So Pelion is a connected device platform. It’s our recent spin-out of Arm that brings our connectivity and device management capabilities directly to the IoT market, which was previously run under the umbrella of Arm Holdings.” Essentially, the team who ran Pelion are flying the nest, Niall shared. “We’re now standing alone as our own brand, with our JANUARY 2021

“That’s where our superiority really is; it’s in our ability, as one vendor, to provide customers with a full suite of services. Not many companies can say that” — Niall Strachan, Head of Product Strategy, Pelion

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PELION

“ If a company features a truly multi-region or even multinational deployment, they want to understand all of this data that they collect. They want to know what the code is truly saying to them. At Pelion Connectivity Management, we are able to provide that understanding”

— Niall Strachan, Head of Product Strategy, Pelion

own product story, outside the umbrella of Arm, where it is clear that the market is ready for the launch of our capabilities as a standalone entity. Within Arm previously, we had a lot of benefits of being within part of such a large organisation, but that also came at the cost of agility and having the market understand our true capabilities.” “So coming out and standing alone, we provide a connected device platform that also has specific discreet products. These products range from connectivityenablement for deploying IoT devices to generate insights for enterprise products; connecting into networks, and providing connectivity from cellular operators. We also have a device management layer, which is all about helping people manufacture their own devices whilst simultaneously understanding and managing the firmware, security, and software that’s running on them,” Niall added. We delved into where Pelion’s offering to the market is prevalent, and where their current customers implement the available software. “It’s an excellent product that can run on ultra-constrained low power devices, even something as small as the RFID

JANUARY 2021

Pelion Launch Video CLICK TO WATCH

0:27

97 systems on pallets; or it can be imple-

“If they can manage that, then their

mented in a very feature-rich system

data will become valuable and also

such as an edge gateway, process-

more secure.” That’s a hard ask, of

ing myriads of data in private networks.”

course, and that’s where Pelion’s true

Looking for some elaboration on Pelion’s

value shines. “Our value is in simpli-

edge capabilities, given that it’s a hot

fying the layer between the physical

topic currently, Niall told us that “edge

hardware and the application that

capability is something that we’re focus-

companies are trying to integrate

ing heavily on. The larger story is that our

and leverage. We provide the tools

customers have private networks, fac-

in the middle to help people deploy,

tories, delivery depots and other such

connect, and manage the devices in

assets that have edge networks within

their life cycle. Then they can really

them, and they desperately need their

focus on the data and they, in theory,

data to be processed effectively and effi-

won’t have to worry about the security

ciently locally at the edge.”

or costs of their assets and devices, suppl y c ha i ndi gi ta l. com

PELION

because we’re already looking after

focused on data and data analytics.

it all for them.”

They want to harvest the data from all

On the topic of supply chain opera-

of their organisation’s interconnected

tions and the digital transformation

devices to both improve efficiency and

journey of many leading companies,

to keep an eye on where their goods

Niall was willing to walk us through the

and services are at any given time so

wants and desires of leading compa-

that they can mitigate risk, avert any

nies, from his own experience dealing

potential issues, and ensure customer

with them. “Our customers and part-

satisfaction.” Now, when it comes to

ners who are moving into specific

data and data analytics, it’s a heady

verticals in the supply chain are usu-

subject, we all know that, and that’s

ally, as you might expect, heavily

where Pelion comes in. “If a company

98 E X E C U T I V E P R O FILE :

Niall Strachan Title: Head of Product Strategy Company: Pelion Pelion was originally founded as an incubation unit within Arm, the world’s leading designer of key technologies at the heart of computing. Now a wholly-owned subsidiary of Arm, Pelion is forging its own path in the IoT revolution, building upon a solid foundation of connectivity and device expertise and a 500-enterprise strong customer base.  With a unique combination of global IoT connectivity and device management from a single vendor, Pelion breaks down barriers to IoT adoption for anyone looking to transform their industry.

JANUARY 2021

“ You’ll pivot your way along the road before you, to ensure that you’re following the star; occasionally you’ll meander, but as long as you’re roughly heading in the right direction, you’ll always reach it in the end, and that’s the best thing for the business” — Niall Strachan, Head of Product Strategy, Pelion

features a truly multi-region or even

is the concept of having a ‘flagship’.

multinational deployment, they want to

If you think about mobile devices for a

understand all of this data that they col-

moment, technology giants like Apple

lect. They want to know what the code

and Samsung battling in the arena with

is truly saying to them. At Pelion, we are

their industry-leading, cutting-edge

able to provide that understanding; this

smartphones released yearly, will likely

creates a level of transparency across

spring to mind. At Supply Chain Digital,

the data space and gives companies

we always like to ask which flagship

previously-unforeseen insight and vis-

product our interviewees’ company pro-

ibility into exactly what they should or

vides, and why it puts them ahead of their

should not be doing in their daily supply

competitors. When I put this question to

chain operations.”

Niall, he answered openly and honestly,

Something that has become increas-

by stating that every company would

ingly important in the global, slightly

say that “our product is the best for this

oversaturated, technology marketplace,

or that reason or has the killer feature” suppl y c ha i ndi gi ta l. com

PELION

100

The Head of Product Strategy then went

a strong position in the market, so our

on to say that the real golden-nugget

capabilities, expertise and functionality

for Pelion is “the understanding of how

have essentially been inherited from the

devices are manufactured and the smart

legacy of that business.”

decisions we can help our customers

“Being a subsidiary of Arm gives us

make in this space which comes from our

a unique position that allows us to work

heritage, being part of Arm. Arm’s core

with almost any device that our cus-

background, within the Silicon IP space,

tomers want to be manufactured - ultra

helps people manufacture devices;

constrained, feature-rich, whatever it

they’ve been around for a long time, and

may be. But then because we have all

they’ve trailblazed all the way. They have

these capabilities that don’t touch the

JANUARY 2021

101

Pelion helps Sensize deliver full supply chain visibility CLICK TO WATCH

2:05

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PELION

“ If our business is going to continue to be successful and our teams are engaged in what they’re doing, believe in what we’re doing, and enjoy getting the job done, this is exactly where I would like to be” — Niall Strachan, Head of Product Strategy, Pelion 102

JANUARY 2021

physical hardware or the application stack, we can work with a real ecosystem of, pretty much, anybody. So, for example, at Pelion, we can work with different hardware manufacturers or different systems integrators or different application providers. This allows us to provide a service that acts as a one-stop-shop for all of the solutions that our customers need.” End-to-end, if you like a feature that wouldn’t necessarily be possible without the influence and power of Arm, because, as Niall says, “it really does take an ecosystem of people to manufacture the very best devices, and get services deployed. You can’t do it alone, and it’s very difficult for companies to get on top, without standing on the shoulders of giants.” “So that’s where our superiority really is; it’s in our ability, as one vendor, to provide customers with a full suite of services. Not many companies can say that.”

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103

104

JANUARY 2021

105

The worldâ&#x20AC;&#x2122;s largest platform for working capital WRITTEN BY

HARRY MENEAR PRODUCED BY

CAITLYN COLE

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C2FO

Saket Sarda and Iain Rolfe discuss C2FO’s revolutionary fintech platform, releasing working capital back into the market, and the company’s APAC expansion

uring times of financial hardship, the ability for companies to remain flexible, adaptable and agile is paramount. Having

ready access to the necessary liquidity in these situations is essential. Unfortunately, since the outbreak of the coronavirus pandemic in March, 106

many firms have found the channels through which they access additional working capital closed off to them. “COVID-19 was a huge shock to the market system. The initial reaction was to hunker down, stop investment, and minimise risk,” explains Saket Sarda, Head Enterprise Sales for APAC at C2FO. “At the same time, the banks issued a blanket credit freeze, large scale enterprises, all the way down to small-scale operators. Nobody could get access to any working capital.” Even though that freeze has begun to thaw, its benefits have disproportionately served larger, more stable firms, leaving smaller and mid-sized companies out in the cold. Not only is this state of affairs potentially devastating for smaller firms cut off from sources of liquidity, Sarda continues, but JANUARY 2021

107

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C2FO

Saket Sarda @ C2FO CLICK TO WATCH

1:03

108

“ Your supply chain is only as strong as its weakest link” — Saket Sarda, Head of Enterprise Sales, APAC, C2FO

necessary liquidity to make the screws, machine parts, whatever it is you need, your entire production suffers and creates a ripple effect on the other suppliers in the supply chain,” he says. “On our platform, we have close to a million of these compact suppliers. When their lifelines were taken away from them,

the impact has the potential to ripple

the only option for liquidity remaining

outwards through their supply chains.

for them was C2FO. We worked with the

“Your supply chain is only as strong

banks and the corporates to get liquidity

as its weakest link. If the small supplier

to the buyer, so that it can then make its

that makes up the farthest end of your

way to the supplier to, in turn, support the

supply chain can’t get access to the

operations of those large corporates.”

JANUARY 2021

Based in the US, C2FO is one of the

“The most disruptive innovations are

larger fintech firms working to revolu-

typically the most simple,” says Iain

tionise the ways in which buyers and

Rolfe, managing director of C2FO’s

suppliers of every size in every indus-

operations in Australia and New

try can access the working capital

Zealand. “That’s what we’re doing –

necessary to survive challenging

challenging this really fundamental

times and thrive in the years to come.

notion of the power dynamic between

E X E C U T I V E P R O FILE :

Saket Sarda Title: Head of Enterprise Sales, APAC

Industry: Financial Services

Location: Singapore

109

Saket has more than 25 yrs experience working in the Banking and IT industry with expertise in Business Development, Corporate Sales, Trade Product Management working in Africa, Middle East, Russia, ASEAN and Southeast Asia. Saket serves as Head Enterprise Sales, APAC for C2FO and brings a wealth of expertise to expand C2FO’s footprint in this region, where partnerships and product offerings must be augmented in innovative ways. He would be driving C2FO current efforts in India, Taiwan, China and Australia, as well as focus on new opportunities in the Asia Pacific region that are vital to global trade and corporate supply chains. Prior to C2FO, Saket was Managing Director at Standard Chartered Bank managing the Trade business regionally working closely with corporates, regulators and third-party platform providers. Saket holds a B.Eng degree and a Post Graduate Diploma in Management from IIM-A. Saket, his wife and two children reside in Singapore. suppl y c ha i ndi gi ta l. com

C2FO

A HELPING HAND

110

The COVID-19 crisis has been economically devastating for companies of all sizes and backgrounds, but particularly for minority-owned businesses. Research done by the University of California, Santa Cruz, found that approximately 440,000 blackowned businesses in the United States (over 41%) were forced to close in response to COVID-19. In contrast, only 17% of white-owned businesses experienced the same setbacks. C2FO’s Equity and Inclusion Program is aiming to help change this state of affairs by providing diverse supplier certification, reduced rates and access to a broadening funding ecosystem. “We’re trying to help those minority segments get easier access to capital through special offers. It’s good for everyone and it addresses the impediments and biases that exist for those minority groups through no fault of their own,” says Rolfe. “That concept of economic justice and of equity inclusion is very strong in C2FO’s culture.”

JANUARY 2021

buyer and supplier, and disintermediating third parties that have become part of those interactions over time.” We sat down with Sarda and Rolfe to discuss C2FO’s ongoing expansion into APAC, following more than a decade of growth in the US and a successful expansion into Europe.

THE WORLD’S FIRST WORKING CAPITAL MARKETPLACE C2FO was founded in 2008, in direct

111

response to the global financial crisis,

established in response to the need

a catastrophe which cost the US alone

to get liquidity flowing out of the bank-

an estimated $22trn. The response to

ing system, as well as from buyer

the crisis, Rolfe explains, was similar in

to supplier.

a lot of ways to the market’s response to COVID-19. “Liquidity dried up and smaller sup-

Even when the world isn’t languishing in the grip of a pandemic or financial crisis, Rolfe explains that

pliers were unable to access working

there is a fundamental issue with the

capital through normal banking relation-

way that suppliers are often forced

ships, as well as through the invoices that

to acquire their working capital.

were outstanding from their customers,” he says. C2FO, Rolfe continues, was

“Lack of liquidity is a situation that our customers and suppliers face suppl y c ha i ndi gi ta l. com

C2FO

“ The most disruptive innovations are typically the most simple” — Iain Rolfe, MD, ANZ, C2FO

“Going to a bank is going to be a much more painful and lengthy process to free-up liquid capital that they may need urgently,” he says, adding that the cheapest form of financing is money that the company is already owed. This is the core solution that C2FO is built on. Companies can use the C2FO working capital market platform to access funds that are owed and

112

every day. At a fundamental level,

invoiced ahead of their due date, in

whether you’re a large or small organi-

exchange for a fee, and at a price that

sation, a supplier, a buyer or both, you

they themselves determine. “It’s an

need to have access to working capi-

equalised system of suppliers and cus-

tal,” he explains.

tomers which cultivates collaboration,”

What this means is that firms are

says Sarda. “We bring price discovery,

constantly trying to thread the needle

profitability, and cash flow into our

between income and outgoings, whilst

customers’ supply chains.”

also having enough liquidity to support

C2FO onboards approximately

expansions, mergers, new ventures,

50mn invoices to its platform every

or to respond to something unexpected

day. “It’s a mammoth technological

– like a pandemic, for example.

challenge,” Rolfe notes.

“When a crisis emerges, you

In order to support this kind of vol-

either go out of business or find

ume, he explains that the company

more working capital to get through

has built a “SaaS platform that runs

that period of time,” Rolfe explains.

on the underlying compute, security

Historically, the typical response

and storage capabilities of a big cloud

has been to get a loan from a third-

services organisation. We then run

party financial institution.

a very sophisticated set of algorithms

JANUARY 2021

on top of that stack that allow us to

keeping a continuous interface

ingest and process that volume of

between the platform and its cli-

invoices every day at scale.”

ents. Instead, they use point-in-time

For the sake of both security and simplicity, C2FO’s platform avoids

onboarding each day. “We can pull the necessary invoices from our

E X E C U T I V E P R O FILE :

Iain Rolfe Title: Managing Director, Australia and New Zealand Industry: Financial Services

Location: Greater Sydney Area

Iain leads C2FO in Australia and New Zealand, working with multinationals and local corporations in need of more flexible solutions that provide better control and management of their financial performance. Previously, Iain held multiple roles during his tenure at Cisco, including Chief Commercial Manager for Australia and New Zealand and Chief Operations Officer for their Technical Services division. While there, he established the overall commercial management function for Asia Pacific and led the structuring of their first three direct deals in China and India. Previous to Cisco, Iain worked for Orange Business Services, France Telecom, and founded his own Internet company. Recognized as a global expert in complex adaptive business models, Iain was awarded a Ph.D. from Macquarie University and holds a Master of Commerce and Bachelor of Business in behavioral economics. He is based in Sydney, Australia.

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113

C2FO

C 2FO AU ST RALI A

114

Rolfe has been leading C2FO’s expansion into the ANZ market since May 2019. Almost more than anywhere, he says, the ANZ market needs new ways for companies to access working capital. “Australia has gone through a period of many challenges. There’s been the financial crisis, there was a government intervention setting out the terms of engagement between big and small suppliers, and then we hit bushfires followed by COVID-19. People here are just punch drunk,” he reflects. In order to recover, Rolfe continues, the ANZ market needs to find new ways to collaborate using technology. C2FO’s role will be to work as a

JANUARY 2021

national working capital control centre through its platform that provides companies with multiple different avenues to generate value. “We’re going to help companies look at an invoice and think about the best way for the capital locked in that invoice to benefit the entire supply chain,” Rolfe continues. “Australia has a very special market with its own financial culture and system. What we’re doing here is taking the best of what C2FO does around the world and customising it for Australian customers. We want to be able to look back in a couple of years and be proud of our role in this collaborative recovery for the ANZ market.”

“ When a crisis emerges, you either go out of business or find more working capital to get through that period of time” — Iain Rolfe, MD, ANZ, C2FO

The platform, Sarda explains, straddles the customer’s procurement and sales functions. “It means that you have a uniquely better view of your cash flow,” he says.

ENTERING APAC C2FO’s presence in the APAC market is relatively new, launching its operations in China and Australia two years ago, expanding its presence in India

customers’ ERPs into our system, do

and adding Taiwan to its portfolio in

what we need to do, and then push the

2019. Sarda’s role in the company’s

equivalent instructions back into their

expansion has several elements, each

systems,” Rolfe adds.

aimed at increasing C2FO’s APAC

Iain Rolfe @ C2FO CLICK TO WATCH

1:06

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115

C2FO

2008

Year founded

463

Number of employees

180

Countries 116

“ If C2FO wishes to achieve the same market penetration it has in Europe and the US, it needs to find ways to appeal to the huge numbers of mid-market, midsized firms in APAC” — Saket Sarda, Head of Enterprise Sales, APAC, C2FO

foothold, and developing the uniquely APAC-centric value proposition it can present to its new customer base. “The first part of my role is business development, which is different from direct sales,” Sarda explains. Whether they’re with large corporates, banks or governments, the partnerships that Sarda is building are intended to fuel the local economic engine with C2FO, making the platform a more

JANUARY 2021

117

relevant proposition to companies in a

innovation that supports those goals.

given market. Second, the direct sale

In contrast to the US and Europe –

of services to new clients, both in the

which are fairly homogeneous markets

four countries where C2FO is operat-

– APAC is a very different beast with

ing, and beyond, initially in markets

an eclectic collection of varied rules,

like Thailand, Malaysia, Indonesia,

taxes and practices.

Singapore and later expanding into

“In the West, the very nature of

the Philippines, South Korea, Japan.

the Fortune 500 belies how many

Lastly, he is working to ensure the

large-scale corporations there are

broader relevance of C2FO’s offerings

in that market. APAC has a smaller

to the APAC market, and driving the

percentage of large corporations suppl y c ha i ndi gi ta l. com

C2FO

by comparison. In APAC, and more

a mid-sized company that might not

importantly in ASEAN, a few high-level

have too much data of its own, we’re

corporations control large segments

able to provide a far more nuanced

of the economy - equivalent to that

view of their own supply chain that

which 500 companies control in the

they might not have had so far.”

US,” Sarda explains. Therefore, if C2FO wishes to achieve the same

COVID-19 AND BEYOND

market penetration it has in Europe

The past year has been a challeng-

and the US, it needs to find ways to

ing one for companies worldwide.

appeal to the huge numbers of mid-

As liquidity has dried up, and larger

market, mid-sized firms.

corporations and banks adopt more

“We’re looking at a comprehensive 118

conservative stances, C2FO has

offering which straddles payables

become a driving force in preserving

and receivables, creating an invoice

resilience and agility in the markets

central for a corporate, and also by

it serves.

connecting to their ecosystem of sup-

“Since COVID-19 hit, many large

pliers and customers to be more like

organisations drew down large

an invoicing intermediary between

amounts of capital through their

firms,” he says, adding that another advantage that C2FO hopes to leverage in APAC is its data. “Our existing presence in a lot of APAC countries, across numerous industries means we have a lot of data on trade,” Sarda explains. The 50mn invoices that are added to C2FO’s platform every day help generate deep insights into the wider market. “We can use all this data to give value back to our clients,” says Sarda. “For JANUARY 2021

“ We want to be able to look back in a couple of years and be proud of our role in this collaborative recovery for the ANZ market” — Iain Rolfe, MD, ANZ, C2FO

T H E C H I E F F I N AN CE AN D I N SI GHT S O FFI CER

The nature of executive roles is forever changing, as digital transformation reshapes the capabilities and demands placed on companies’ leaders. Sarda reflects that the traditional role of a Chief Finance Officer (CFO) may look very different in just a few years. “Historically, a CFO uses past data to explain why things have happened and provide analysis. Going forward, I think that the CFO role will become far more about providing insights for future decision making,” he says, adding that the role will become about developing insights into how

one course of action will interact with other elements of the business, and ultimately figuring out how to make the company more nimble. “If the world keeps undergoing the kinds of crisis that we’ve been seeing, the companies that end up being successful are going to be the ones that manage to have more variable practices,” he adds. “Passive knowledge of things like accounting is going to evolve towards strategy, ecosystems and therefore outsourcing and the need for platforms like C2FO that can help provide good data in those areas.” suppl y c ha i ndi gi ta l. com

119

C2FO

120

credit lines, got lots of money in the

like the Equity and Inclusion Program,

door, and began tightening up on their

C2FO is working to help the world sur-

expenses. It’s the same reaction that

vive and even thrive in these challenging

they had to the financial crisis in 2008,”

times. Rolfe reflects that the past year

says Rolfe. “What’s different this time

has been one of, at times, frantic activity

around is that our customers have had

for himself and his team.

the ability to treat the crisis in a more nuanced, technology-driven way.”

“In many ways, we’re a counter-cyclical business. When the chips are down for

Through its market-based approach

the economy as a whole, that’s when

to freeing up liquidity, as well as initiatives

more people come to use our platform

JANUARY 2021

dilemma whether we should continue to try and expand into new markets, given that we can’t travel, recruit and train new people,” explains Sarda. “This year, we decided to double-down on the investments we’ve made in the countries where we’re already active.” Going forward, Sarda intends to continue focusing on the three main areas of his remit: developing relationships with key partners, expanding into new markets like Singapore, Thailand and Malaysia, and continuing to develop new products and services that are uniquely tailored to help APAC companies get the most out of every part of their balance sheet. Looking to the future, Sarda is optimistic about the potential for progress, even in uncertain times such as these. and our services, so we’ve had our hands

“I think that what C2FO did in the US and

full this year,” he says. “We’ve had a huge

Europe in a matter of five to six years

uptick, not just in our customer base, but

will be accomplished much more quickly

also in our range of products on the mar-

in APAC.”

ket. We’re iterating and releasing new products almost bi-weekly because of how fast the landscape is moving.” In ANZ, as well as the rest of APAC, C2FO has pivoted its operations in response to the crisis. “There was a suppl y c ha i ndi gi ta l. com

121

McPherson’s Consumer Products’ Supply Chain Transformation 122

WRITTEN BY

ANTHONY CARUANA PRODUCED BY

GLEN WHITE

JANUARY 2021

123

McPhersonâ&#x20AC;&#x2122;s Limited, established in 1860, is a leading supplier of Health, Wellness and Beauty products in Australasia and China suppl y c ha i ndi gi ta l. com

MCPHERSON’S

“ Our business cannot function without the right people. I firmly believe the well-worn statement ‘culture eats strategy for breakfast” — Mark Brady, Global Supply Chain Director, McPherson’s 124

JANUARY 2021

Mark Brady, Supply Chain Director for McPherson’s Consumer Products, tells us about how great people, sound methodology and tools, and meeting customers where they are is the key to successful digital transformation.

Pherson’s Consumer Products (MCP) is the embodiment of a business that has adapted to

changing times. From manufacturing the nuts and bolts used to build the iconic Sydney Harbour Bridge, to making the railway spikes that link Sydney to Perth by rail, to now becoming a marketing and distribution company that delivers products that are found in the bathrooms and kitchens of homes across all their markets, MCP has adapted to hundreds of challenges over the years. With customers ranging from major supermarkets such as Also ALDI, Coles, Metcash and Woolworths, through to small, independent pharmacies, and big pharmacy groups such as Chemist Warehouse, Priceline Terry White etc, Mark Brady, Supply Chain Director for McPherson’s Consumer Products, says the secret to MCP’s success is people. suppl y c ha i ndi gi ta l. com

125

MCPHERSONâ&#x20AC;&#x2122;S

126

JANUARY 2021

1860

Year founded

$22.1m Revenue in AUD dollars (FY20)

600

Number of employees

“Our vision is to be bold, be brave, be better. It’s about being audacious & stretching. And being able to make mistakes in safety” — Mark Brady, Global Supply Chain Director, McPherson’s

suppl y c ha i ndi gi ta l. com

127

MCPHERSONâ&#x20AC;&#x2122;S

A look inside The MCP warehouse... CLICK TO WATCH

0:27

128

We Bring The World To You MONDIALE provides a total global logistics service through our unequalled worldwide network. Our fully integrated software provides full end-to-end supply chain visibility to your business. Flexible, innovative and partnership driven, we are your true international freight and logistics provider. Mondiale Freight Services, proud of our partnership with McPhersons. MONDIALE FREIGHT SERVICES LTD

Facebook facebook.com/mondiale

Freecall: 1300 656 216 Enquiries@mfslogistics.com.au

Internet //mondialefreight.com

Twitter twitter.com/mondiale

E X E C U TIVE P R O FILE :

Mark Brady Title: Global Supply Chain Director Industry: Marketing and Manufacturing Location: NSW, Australia

Mark has led the Global supply chain area for McPherson’s for the last seven years, after being promoted from his role driving continuous improvement and quality across the organisation. Mark has been able to lead the organisation’s supply chain through structural and operational change and efficiency improvement, enabling sustainability and growth with McPherson’s. With 20 years of experience across operations and supply chain, Mark has worked within a number of industries – including pharma, FMCG, food grade manufacturing, electronics and services delivery. As an engineer by education, Mark has a robust analytical approach coupled with qualifications in continuous improvement methodologies, including Lean, Six Sigma and World Class Manufacturing. McPherson’s has performed well through COVID with the support of strategic partners in supply, logistics and of course directly with our customers. Our staff remain safe and well and the entire supply chain team functions as a whole through these unprecedented times led by Mark.

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MCPHERSON’S

130

“ I f I can ensure people can see their value, know their place and have line of sight to how that value deliveries for the broader business goals & strategy– that’s the ideal” — Mark Brady, Global Supply Chain Director, McPherson’s JANUARY 2021

“Our business cannot function without the right people,” says Brady. “I am so very fortunate to have the right people around me, both in supply chain and other functions in the business. I firmly believe the well-worn statement ‘culture eats strategy for breakfast’.” One might think that a business that has been able to evolve would be a hot-bed of employee turnover as the business looked for new ideas and innovative approaches. But that’s not the case. Brady is a relative newcomer to the business, having been there for

A look inside The MCP warehouse... CLICK TO WATCH

2:55

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131

MCPHERSONâ&#x20AC;&#x2122;S

132

A look inside The MCP warehouse... CLICK TO WATCH

JANUARY 2021

0:17

about ten years. The average tenure of personnel in his supply chain team is 19 years with three team members marking over 40 years of service. “High calibre and functional expertise is multiplied by creating the right environment for everyone to succeed,” says Brady. He says that comes by questioning and listening to everyone. While Brady has a Black Belt in Six Sigma and Lean methodologies, he says through enga gement and leading by example he knows that when he’s not there on a night shift that everyone from the cleaning crew to warehouse staff are doing the right thing because they trust each other and the systems they have created. Being prescriptive with

“ High calibre and functional expertise is multiplied by creating the right environment for everyone to succeed.” — Mark Brady, Global Supply Chain Director, McPherson’s

a methodology or set of tools is not always the answer. Rather, success comes from taking what works and listening to people.

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134

Delivering a Successful Procurement Transformation WRITTEN BY

GEORGIA WILSON PRODUCED BY

LEWIS VAUGHAN

JANUARY 2021

135

suppl y c ha i ndi gi ta l. com

DOKA GROUP

Doka’s Thomas Zsulits and Mirko Loos discuss their company-wide procurement and material group management transformation

136

ating back to 1868, Doka has over 150 years of heritage in the construction industry, providing its customers with

reliable, experienced and trustworthy services, “listening intently” to understand the world through the eyes of its customers. Describing the company and the services it provides its customers, Thomas Zsulits Director Global Procurement at Doka says, “Doka is a market leader in many countries when it comes to formwork for public, private or commercial customers. We are also on a good path to becoming market leaders in scaffolding. Our most prestigious projects have been the Burj Khalifa in Dubai or the Kingdom Tower in Saudi Arabia. But also in infrastructure projects Doka is seen as the partner of choice for bridges, tunnels or cooling towers.”

JANUARY 2021

137

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DOKA GROUP

“ One of the biggest challenges, I believe, is the change from being in personal contact with our customers, partners, and supply partners to digital ones” — Thomas Zsulits, Director Global Procurement, Doka

Mirko Loos, Head of Material Group Management at Doka, explains that “before Thomas started at Doka three years ago, purchasing departments had only been existent in larger coun-

138

HOW DOKA TRANSFORMED ITS PROCUREMENT OPERATIONS

tries or countries with a production

Doka is operating globally. It formed a

Germany. Their main focus was on

global organisation three years ago

material disposition for production.

and have just undertaken another

Global agreements had been existent,

step to become a more effective

but sourcing was mostly done locally

and modern organisation.

or regionally, at max.

operation, like Austria, Slovakia and

“A new procurement structure was introduced in 2018, and it was meant to secure an effective material disposition on the one side, responsible for managing the P2P process and providing support to local stakeholders on day-to-day operational issues. On the other side, a separate team was formed focusing on strategic work which otherwise would remain undone, like developing effective sourcing strategies, or delivering other typical JANUARY 2021

Doka upbeat construction â&#x20AC;&#x201C; boosting productivity on site CLICK TO WATCH

1:00

139 value propositions to the organisation.

forming the backbone of procurement

The operational teams remained in

to meet all imminent needs of our inter-

the countries mentioned before. As of

nal stakeholders. They are close to all

2021, they will become part of support

internal customers and help MGM with

units responsible for operational pro-

their strategy implementations but

curement, invoice control and MDM

will also be a source of information for

and covering our regions Middle East/ Asia Pacific, Americas and Europe. Our strategic teams have since undergone the largest transformation from a split in local, regional and global teams into category teams as part of our global Material Group Management (MGM) and on the other side Supply Business Partners (SBP). Our SBPs are now

1868

Year founded

7,000 Number of employees

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DOKA GROUP

140

“ Digital will be a challenge for us all in the future. We all need personal contact - especially in tough times [...] We have to think about a new way of cooperating” — Thomas Zsulits, Director Global Procurement, Doka JANUARY 2021

other procurement colleagues when

our operational procurement. And

it comes to understanding our cus-

alongside a proper P2P process, we’d

tomer’s pains and gains better.”

enhance our data with proper spend

In order to ensure a smooth

classifications and that way could

transition for its procurement transfor-

improve our spend visibility over time

mation, Loos adds that “from the very

– Crucial for effective strategic work.

start, there was the idea to put SAP/

“We’ve now introduced this solution

MM in place and have a catalogue

in our headquarters in Austria. It has

system to minimise the workload for

been a substantial project for us,

E X E C U T I V E P R O FILE :

Thomas Zsulits

141

Title: Director Global Procurement Industry: Construction

Location: Austria

Thomas Zsulits has more than 20 years of experience in different functions along the supply chain process. He gained broad experience in global leading companies like Bosch and Mondi, as well as in mid-range organisations across the globe. Degrees in electronics and later a Bachelor in BA supported his strong implementation and process skills. With his charismatic leadership skills he is used to being successful also in turbulent times and has proven his leadership skills in turnarounds, M&As, restructuring programmes and more. He lives close to Vienna in Austria with his family. Beside his passion for the job and family, he runs a diving school where he loves to give people an insight into his passion for diving. suppl y c ha i ndi gi ta l. com

Safely en route in payment transactions: in the past with stagecoaches, today digitally We need somebody who knows how to manage challenging times safely. In more than 170 years of company history, there is a lot of reinvention: from a forwarding company with a stagecoach to a global company, American Express has always demonstrated “financial resilience”. Today, we ensure companies’ liquidity and flexibility with supply chain finance, virtual payments, corporate credit cards and travel agent accounts in over 140 countries—from business travelers through procurement to the finance department Constant change Lately, we have all experienced accelerated digitisation and thereby new demands on expense management. Managing corporate expenditures digitally, leanly and cost-consciously matters now more than ever. No matter whether it is about business travel expenses or other corporate costs. Virtual payment solutions, like American Express vPayment, help simplifying complex cash flows and optimising payment flows—while improving the control of expenditures. Targeted cash flow management Liquidity means freedom. Companies benefit from an extended payment term of 28 days after invoicing. Depending on the transaction timing, the actual liquidity advantage is even greater — up to 58 days. There is no obligation to tender the bank-independent payment solution for the optimisation of working capital. Using a silent procedure, no involvement of the creditors is necessary while cash discounts can be fully utilised. Flexibility in liability and billing With the American Express corporate card programme, billing methods are flexible:

regardless of whether the expenses of travelling employees should be paid via private accounts or debited to the company account. The liability options can be selected flexibly. Simple cross-border payments The high export share of European companies and the handling of international payments became crucial. Particularly important are simplicity in processing and hedging against exposure to currency risks. We offer a web-based payment solution for international transactions: for more than 80 currencies in more than 100 countries. “Our customers experience how we respond to their requirements, develop innovative solutions and lead the way in the financial industry’s transformation. We aim to create concrete value for our customers — and for their customers and suppliers. Long-term reliability and experience of a global company rooted in Europe, combined with genuine innovative strength and openness,” explains Sonja Scott, Country Manager American Express Germany and Head of Global Commercial Services Germany, Austria, Netherlands and Nordics.

“ The construction industry continues to grow worldwide, so the future will be very positive for Doka” — Thomas Zsulits, Director Global Procurement, Doka

highlights the importance of having the right culture in an organisation. “It’s very important. In fact, it has been a major success factor for us. With our new structure, employees have to be proactive and understand our customers’ needs. At the same time, they have to lead our customers to get the best results in the interest of

and we are grateful for the support of

Doka. They have to be interested in

our partners.”

the numbers they see as well as to be

When it comes to effectively implementing a strategy like this, Zsulits

able to adapt to the variable requirements of our fast-evolving markets, 143

D O KA ’ S P A R T N E R SHI P WI T H AM ERI CAN EXPRESS

American Express is our incumbent credit card provider in the US. In 2019, we conducted an assessment for a global credit card solution in support of our Global Travel concept. What we found was that American Express offer a truly global credit card solution. Other competitors are strong in certain regions, but American Express had the largest geographical reach. We’re seeing benefits in strengthening our partnership with American

Express as Doka is operating in 60 different countries around the globe. We are currently thinking of a hybrid solution with a different partner for ‘walking cards’, but overall, I would say it’s a partnership for us that we see potential in, and we’re very much looking forward to continuing those conversations. Mirko Loos, Head of Material Group Management at Doka

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DOKA GROUP

144

customers, partners and organisation.

the biggest challenges I believe is the

So there has definitely been a need for

change from being in personal contact

mindshifts here, and this is something

with our customers, partners, and

we’ll have to continue to work on. We

supply partners to digital ones. The

believe this will be a key for the suc-

highest impact was probably on our

cess of our procurement organisation

risk management. The only tangible

moving forward.”

contact with suppliers was basically

Like many organisations around

our incoming goods inspection, the

the world, Doka has been faced with

rest had to be managed digitally or

challenges due to COVID-19. “One of

over the phone,” comments Zsulits.

E X E C U T I V E P R O FILE :

Mirko Loos Title: Head of Material Group Management Industry: Construction

Location: Germany

With 18 years of straight procurement expertise, Loos started his career in 2002 in the Strategic Supplier Management department at Mercedes-Benz near Stuttgart. In 2007 he moved on to join the anglo-dutch provider of online-paid content Reed Elsevier (later RELX Group), where he held different local, regional and later global roles in procurement. In 2018, Mirko joined Doka as Head of Category Indirect and has recently taken on the role as Head of Material Group Management. He holds a degree in Business Administration from PFH – Private University of Applied Sciences in Goettingen, and he lives with his family near Dusseldorf in Germany.

JANUARY 2021

145

“ Leadership for me is typically the problem and the solution at the same time. The idea should be to work on oneself to reduce the number of mistakes that you typically do” — Mirko Loos, Head of Material Group Management, Doka suppl y c ha i ndi gi ta l. com

DOKA GROUP

“ Globalisation is for us to have/run most important processes globally but be very flexible with our local ones” 146

— Thomas Zsulits, Director Global Procurement, Doka

To overcome these challenges Zsulits

their fears because nobody knows

continues to explain that to address

what to do in this situation right now;

the lack of personal contact, Doka

we are all experiencing this for the

increased the frequency of commu-

first time. So if you know their fears

nication with its partners, customers

and the situation they are in, you are

and employees. “We try to understand

then able to find a common way to help

the situation they are in. In the past,

each other. So together we are trying

discussions were more around techni-

to establish this new way of partnering,

cal topics – how are we solving this

which I believe – looking to the future

topic? How can we provide/improve

– will create a new way of cooperation

this service? – and now it is more about

when it comes to risk management.”

circumstances, financial balance, and

Further reflecting on the future for

support. It’s important to understand JANUARY 2021

Doka and the construction industry,

147

both Zsulits and Loos agree that as

to participate in this positive trend,”

populations grow so will the market’s

comments Zsulits. Adding to Zsulits’s

need for the construction industry.

comments, Loos concludes, “as the

“The construction industry continues

population grows, there will be a need

to grow worldwide, so I believe the

for construction, both on the infra-

future will be very positive for Doka

structure side, as well as on the private

because with this growth our services

housing side – and to echo what

and products will be needed even

Thomas said – I think Doka is set up

more than they are needed today.

really well to emerge from the corona

So the question is, how will we par-

crisis with new opportunities.”

ticipate in that growth? And I’m very convinced that with our products and our global structuring Doka will be able suppl y c ha i ndi gi ta l. com