Supply Chain - March 2022

March 2022 | supplychaindigital.com

T-Mobile: ‘Changing Procurement for Good’ as the 5G leader BioPlus: Fast pharmacy service BioPlus grows with new technology

UST:

LEADING THE

GAME-CHANGING

CLOUD ADOPTION Jonathan Colehower of UST, explains how adopting technology can increase visibility and resilience in the supply chain

The ‘Risk & Resilience’ Conference

2022 27th - 28th April

STREAMED & IN PERSON TOBACCO DOCK LONDON

Buy tickets

Sponsor opportunities

Watch our 2021 Showreel

Previous Speakers Include:

Aurelien Faucheux

Senior Director, Procurement Performance, Systems & Excellence

Charlotte de Brabandt Technology and Negotiation Keynote Speaker & Host

Aston Martin

Lufthansa

AMAZON

Ninian Wilson

James Westgarth

Group Procurement Director Vodafone Procurement

CPO

Never miss an issue!

+ Discover the latest news and insights about Global SupplyChain...

JOIN THE COMMUNITY

The SupplyChain Team EDITOR-IN-CHIEF

SEAN ASHCROFT EDITORIAL DIRECTOR

SCOTT BIRCH

PRODUCTION DIRECTORS

GEORGIA ALLEN DANIELA KIANICKOVÁ PRODUCTION MANAGERS

PHILLINE VICENTE JANE ARNETA ELLA CHADNEY PRODUCTION EDITOR

JANET BRICE

CREATIVE TEAM

OSCAR HATHAWAY SOPHIE-ANN PINNELL HECTOR PENROSE SAM HUBBARD MIMI GUNN JUSTIN SMITH REBEKAH BIRLESON JORDAN WOOD CALLUM HOOD VIDEO PRODUCTION MANAGER

KIERAN WAITE SAM KEMP

MOTION DESIGNER

TYLER LIVINGSTONE

DIGITAL VIDEO PRODUCERS

EVELYN HUANG JACK NICHOLLS MARTA EUGENIO ERNEST DE NEVE THOMAS EASTERFORD DREW HARDMAN MARKETING DIRECTOR

ROSS GARRIGAN

MARKETING MANAGER

KAYLEIGH SHOOTER PROJECT DIRECTORS

TOM LIVERMORE MIKE SADR CRAIG KILLINGBACK

MEDIA SALES DIRECTOR

JAMES WHITE

SALES AND MARKETING DIRECTOR

JASON WESTGATE MANAGING DIRECTOR

LEWIS VAUGHAN

CHIEF OPERATIONS OFFICER

STACY NORMAN CEO

GLEN WHITE

FOREWORD

The ‘Great Resignation’ is supply chain’s greatest challenge An end to working from home has seen millions of people quit their jobs the world over. So what can supply chain managers do to keep and attract talent?

“Returning to the office after home working made me feel the same as coming back from tours of duty to Iraq and Afghanistan” ADRIA HORN US ARMY VETERAN AND BUSINESSPERSON

US Army veteran turned businessperson, Adria Horn, told McKinsey that returning to the office after home working made her feel the same as coming back from tours of duty to Iraq and Afghanistan.

She feels this could be why millions of workers across the world have been left feeling restless, unsettled and dissatisfied upon returning to the office, after two years of working from home.

She could be right, but whatever the truth of it the fact is that businesses are experiencing unprecedented levels of churn. Losing good people is hard, especially if you can’t attract replacements.

It’s a huge challenge for all companies, but especially for those undergoing digital transformation, which is just about anyone who has a large supply chain.

So what’s the solution? Training - and lots of it.

Automation too, to remove tedious workplace tasks, so staff can draw satisfaction from having time to be more strategic.

But what of Horn? What does she think? Treat workers like your children, she urges bosses. “People need the professional equivalent of a long, strong hug,” she insists.

Right, where’s my boss? He owes me a hug.

SEAN ASHCROFT SUPPLYCHAIN DIGITAL MAGAZINE IS PUBLISHED BY

sean.ashcroft@bizclikmedia.com

© 2021 | ALL RIGHTS RESERVED

supplychaindigital.com

5

CONTENTS

Our Regular Upfront Section: 10 Big Picture 12 The Brief 14 Timeline: A history of the evolution of modern sea trade 16 Trailblaizer: Dennis Mullahy 20 Five Minutes With: Angela Johnson MBE

34

Supply Chain

Overcoming barriers to change in procurement

24

42

Digital transformation for supply chain solutions

‘Changing Procurement for Good’ as the 5G leader

UST

T-Mobile

80

98

Supply chain is dead. Long live Demand Response Network

Being seen to be green is no longer enough - you need proof

Logistics

Sustainability

88

106

Fast pharmacy service BioPlus grows with new technology

Man and machine in perfect harmony?

BioPlus Specialty Pharmacy

Technology & Ai

M A RCH8.COM

IS HERE Telling the stories of driven, ambitious women in business and society...

V I SIT NOW

E D U C AT E • M OT IVAT E • E L E VAT E

VI SI T N OW

BIG PICTURE Meltdown: The Easter Egg supply chain Ghana and Ivory Coast Easter is not until mid-April but the shops are already full of chocolate eggs and bunnies. It’s big business. In the UK alone the Easter chocolate market is worth around £220mn.

The supply chain cycle for chocolate Easter eggs begins roughly eight months before Easter Sunday.

Cocoa pods are transported from farms and plantations in South America and West Africa to be dried and fermented, ground and roasted. By far the biggest cocoa producing countries are Ghana and Ivory coast, who between them harvest almost half the world’s cocoa.

Once graded, cocoa beans are transported around the world by airfreight. The chocolate is then manufactured, palletised and transported in refrigerated lorries, which protects it from humidity, moisture and odour.

After moulding, finishing, decorating and packaging, eggs are stored in refrigerated warehouses, ready to be distributed to shops and supermarkets.

10

March 2022

supplychaindigital.com

11

THE BRIEF "We are the first and only independent, national speciality pharmacy to come up with a fast and easy approach, with our 2-hour service” Fred Gagle

VP of Technology and CSO, Bioplus  READ MORE

“Training and education is an important part of the sustainability process” Martin Townsend

Global Head of Sustainability and Circular Economy, BSI 

READ MORE

“What worked well a few years ago might not work well in today’s purchasing environment” Joelle Dove

Director of Business Development Daymon Worldwide  READ MORE

12

March 2022

BY THE NUMBERS Gartner 2021 Supply Chain Diversity, Equity and Inclusion (DEI) Survey

83%

23%

Of organisations in Gartner’s Top 25 have DEI objectives

Of global companies have DEI objectives

63%

48%

Of firms say pressure to be sustainable is coming from customers

Of firms say pressure to be sustainable is coming from investors

Return to the office ‘like coming home from war’’

As working from home (WFH) begins to die back, and people return to the office, an unprecedented number of people globally are seeking fresh challenges. It’s the so-called ‘Great Resignation’.

In an interview with McKinsey, US Army veteran turned businesswoman Adria Horn, says she thinks she knows why this is happening.

Horn says returning to the US from deployment in Iraq and Afghanistan, and returning to the office, left her feeling the same way.

Find out more 

READ MORE

Ukraine war would be oil-price hell for supply chain If Russia invades Ukraine, oil prices are expected to double, leaving 90% of the world's businesses facing further huge increases in sea freight costs.

JP Morgan warns that, were Russia to invade, Brent crude oil prices could rise as high as US$150 per barrel, which would be double the US$75 average price in Q4 2021.

Shipping companies will then be likely to pass this extra cost on to customers who are already facing shipping container charges that, on some routes, are nine times higher than the pre-pandemic norm.

These already sky-high costs are not likely to settle down any time soon, with port congestion continuing to be a problem the world over.

Given 90% of the world's merchandise is shipped by sea, a Russian invasion would be a perfect storm for most businesses.

 CHIP MAKERS

According to preliminary results by Gartner, worldwide, semiconductor revenue in 2021 increased by more than a quarter (25.1%), hitting US$583.5bn, and passing the US$500bn mark for the first time.

If chip makers were to transport their 2021 profits to the bank by road they would need a convoy of 166 18-wheeler jugganauts.

 AP MOLLER MAERSK

Danish shipping giant Maersk upgraded its full-year guidance, and now expects to report a further US$1.8bn in its 2022 Q4 earnings, taking the projected total for the year to US$19.8bn.

 UNILEVER STAFF

Unilever announced plans to axe 1,500 jobs globally. It’s reducing senior management roles by around 15% and junior ones by 5%. The restructuring follows Unilever’s unsuccessful attempt to buy GlaxoSmithKline’s consumer healthcare division, which prompted unrest among investors.

 JUST-IN-TIME SUPPLY

A survey says ongoing disruption might be the death knell for ‘just-intime’ (JIT) supply chain models.

W I N N E R S MAR 22

L O S E R S

supplychaindigital.com

13

TIMELINE A HISTORY OF THE EVOLUTION OF MODERN SEA TRADE The world economy runs on sea trade. We trace ocean shipping from the first ever container vessels to today’s super bulk-carriers

1929

1931

First sea containerisation In 1929, Seatrain Lines carried railroad boxcars on its sea vessels, to transport goods between New York and Cuba.

Although containers had been used before on locomotives, ships allowed them to be hauled over much further distances, far more economically.

First container ship The first ever container ship — the Autocarrier, owned by Southern Railway UK — was launched. It had 21 slots for railway containers.

From the late 1940s, T2-class oil tankers were converted into container ships, because there was a surplus of tankers following the end of World War II.

14

March 2022

1956

2006

Shipping container patented In 1956, US logistician Malcolm McLean patented his ‘intermodal shipping container’.

McLean’s invention would go on to revolutionise sea, road and rail transport, as well as international trade. Containerisation led to massive savings on freight transport, by removing the need for multi-staged handling of individual cargo items, and cut inventory costs by shortening transit time.

Maersk Triple E Class This remains the world’s biggest container ship. Triple E stands for Economy of scale, Energy efficiency, and Environmentally improved. It has a capacity of 18,000 twentyfoot equivalent unit (TEU), which is a unit of cargo capacity used for container ships based on a typical 20-foot container.

2010

Largest bulk carrier launched A bulk carrier — or bulker — is a merchant ship designed to transport unpackaged bulk cargo, such as grains, coal, ore, steel coils or cement.

The first super-bulker was MS Vale Brasil, which was launched in 2010. It can carry 440,000 tons of dead-weight cargo.

supplychaindigital.com

15

TRAILBLAZER

Dennis Mullahy JOB TITLE: CHIEF SUPPLY CHAIN OFFICER COMPANY: MACY’S

The Macy’s man with the magic touch

M

acy's is one of the iconic American retail brands. It was founded in 1858

by Rowland Hussey Macy.

Headquartered in New York City, the company comprises three retail brands: Macy’s, Bloomingdale’s and Bluemercury.

On the back of two years of pandemic, it has gone on to become one of America’s leading omnichannel fashion retailers.

This is in no small part thanks to Dennis Mullahy, who has been Chief Supply Chain Officer at Macy’s for a shade under three years.

Mullahy has always been results driven Mullahy is a proven leader in retail operations and management, and has built his reputation by driving results and building strong leadership teams and culture.

It was the five years he spent at Michaels Stores that brought Mullahy to the attention of Macy’s. Michaels is North America's largest speciality provider of arts and crafts products. It has 1,200 stores in 49 states, as well as in Canada. For over three-and-half years, he was Executive VP of Supply Chain and IT, before which he was Senior VP of Growth Strategies. Mullahy has put in the hard yards.

At Macy’s he has helped build an end-toend omnichannel supply chain, and never has anything less than a tight rein on the inventory processes, controls, and systems that ensure Macy’s shelves and racks have everything their customers would expect to find.

Pre-pandemic, Macy’s announced a rather ominous-sounding corporate strategy called

“Our priority is to make as much product available to our consumers as we can” supplychaindigital.com

17

TRAILBLAZER

Polaris, which was a three-year plan to position itself for growth. The plan included a supply chain redesign. The pandemic accelerated its adoption.

In an interview with Accenture, Mullahy revealed that the key to overhauling Macy’s supply chain has been “meeting customer demand in an omnichannel model”.

He said: “Our supply chain must support the different ways customers shop, whether that’s inside the store, picking up a package at the store or ordering an item from our website into their home.”

By overseeing a supply chain that takes in-store and warehouse inventory as a whole, Mullahy has helped the retailer strengthen its margins, and not only get items to customers quicker but also in the ways they prefer.

Old Macy’s supply model was multichannel It’s a far cry from Macy’s old supply chain, which was designed to meet customers where they shopped — either in store, or online. The so-called ‘multichannel’ model.

"Our legacy supply chain separatedout store and digital inventory and distribution," Mullahy explains. "Our new model improves customer satisfaction by increasing speed of delivery, as well as generating operational efficiency.”

Macy’s is using data and analytics not just to get items to customers faster, but also to improve inventory forecasting, and allocation and package consolidation.

Customers receive fewer packages for one order if they opt to shop online.

"We believe we can improve on the return experience, making it more seamless for the customer and providing faster re-shipment and replacement," said Mullahy. That also includes launching a new return process within their app.”

18

March 2022

“Increased demand during the pandemic made us focus more on fulfilment strategies”

He continues: “Increased demand during the pandemic prompted us to focus more on fulfilment strategies, which includes in-store pick up, same-day delivery, and faster delivery to customers’ homes.”

The pandemic may have cranked up demand for Macy’s’ goods, but it has also dished out some major challenges — such as overcoming port congestion, to get goods where they’re needed, when they’re needed — especially at crunch times, like Christmas.Mullahy says the key to riding out the ongoing supply chain storm lies not in a single approach, but a multitude of them.

Brand partnerships ‘crucial for inventory availability’ “We have great relationships with our brand partners and we're working really closely with them on inventory availability,” he says.

“We buy things early.”

Mullahy also made sure the company diversified the ports it used. Prepandemic, it mainly used Long Beach on the Califorian coast.

“But now we've diversified across multiple ports, even bringing stuff in via the East Coast,” Mullahy says. “It’s a longer sailing time but it’s faster to get off the boats.”

Through it all, Mullahy has kept one thing firmly in mind: “Our priority is to make as much product available to our consumers as we possibly can. This really is our sole focus.”

Who said blinkered vision was a bad thing? supplychaindigital.com

19

FIVE MINUTES WITH...

ANGELA JOHNSON MBE ANGELA JOHNSON HAS NEARLY 30 YEARS’ RETAIL MANAGEMENT EXPERIENCE, THE PAST TWO OF WHICH SHE'S SPENT OVERCOMING BREXIT TO KEEP MORRISONS GIBRALTAR STOCKED - FOR WHICH SHE WAS AWARDED AN MBE

Q. WHAT DOES YOUR ROLE AT MORRISONS ENTAIL?

» As Supply Development Manager,

I work within the team who are upgrading our Supply Chain Systems, to meet the ever-changing retail sector. My priority is to reduce costs, and improve both sales and product availability.

Q. TELL US ABOUT BREXIT AND THE GIBRALTAR STORE

»There were two key issues to resolve,

to ensure we could maintain supply to the store.

The first was a transport issue, because the road border from Spain into Gibraltar at La Linea is not certified as an export crossing for items which contain Products of Animal Origin.

Prior to Brexit this wasn't an issue.

However, now these products must be sent via Algeciras Border Control Post.

This meant we had to set up a ferry service across the bay of Gibraltar.

Although only a 15-minute journey, it can add up to two days on product lead times, due to the additional checks required.

It meant we had to reduce the range of products available in store, because of out-of-date issues. For longerlife products of animal origin, we’ve developed a sea freight route direct from the UK. 20

March 2022

Q. HOW DOES IT FEEL TO BE AN MBE?

» I’m very honoured. I work as part of

a broader team, and nothing would have been achieved without the effort of head office, the exports team at our Sittingbourne depot, and obviously the store itself, and our suppliers.

Q. WHAT’S THE MOST CHALLENGING ASPECT OF YOUR JOB?

» Not being able to provide quick fixes for the store when things go wrong.

As someone who started my career working in a store, I feel their pain.

.

Q. AND THE MOST REWARDING?

» There have been many people

» Every day is different. This is the

reason I love my job. Being involved in developing new systems and processes is also gratifying, especially when they’re well received by the end user.

Q. WHAT’S THE BEST PIECE OF ADVICE YOU’VE EVER BEEN GIVEN?

» That you don’t need to give people

answers all the time. It sounds simple but there was a time when I’d tie myself in knots trying to give people answers that I didn't have. I’m now comfortable telling people, "I don't do that any more."

Q. WHO INSPIRES YOU?

who have guided me throughout my 27 years with Morrisons, but I think the person who has been the biggest influence on my career was Sylvia Jones, who was Retail Programme Director.

Sylvia is retired now. She was an old school retailer. Like me, she doesn't have a degree, and she worked her way up from the shop floor to director level.

She did this by always doing her absolute best to make things better for the end user, and she worked collaboratively across teams. She also never built expectations that couldn't be delivered. I always try to follow her approach. supplychaindigital.com

21

DISCOVER WHO MADE THE CUT. Top 100 Companies in Supply Chain Read Now

A BizClik Media Group Brand

Creating Digital Communities

DIGITAL TRANSFORMATION FOR SUPPLY CHAIN SOLUTIONS

AD FEATURE WRITTEN BY: SCOTT BIRCH PRODUCED BY: GLEN WHITE

24

March 2022

UST

supplychaindigital.com

25

26

March 2022

UST

Jonathan Colehower, Global Supply Chain Strategy Practice Lead at UST, on how adopting technology can increase visibility and resilience in the supply chain

S

exy is a word you don’t often associate with supply chain, even from the most ardent devotee of the industry. But if the last two years have taught us anything, it’s that things change – often with unexpected consequences.

“I've been in supply chain for 25 years and it's never been sexier than it is right now,” says Jonathan Colehower, Global Supply Chain Strategy Practice Lead at UST. “Everybody wants to talk about it, so I think it's up to people like me to say great, let's make sure we don't stop this conversation.”

Colehower will be the first to admit that if you’ve never heard of UST and don’t know “the best-kept secret in IT”, you’re not alone. He was in a similar position when a recruiter called him in 2021 to discuss joining the global IT service provider after a career working for leading consulting firms Accenture and McKinsey.

Despite its low profile, UST has been established for more than 20 years, has a billion-dollar-plus valuation and employs some 28,000 experts worldwide.

“I have spent my entire career in supply chain management either into one or

two areas in management consulting or in technology, “ explains Colehower. “I spent seven years with Accenture in the supply chain strategy practice, and I also spent time at McKinsey & Company doing supply chain and operations strategy formulation. I also spent about five years at Oracle running the supply chain applications line of business and, most recently, was the chief marketing officer at Manhattan Associates.”

It’s an impressive track record, so what made Colehower take the plunge and decide to move to UST? Like so many consultants who are leaving the industry, Colehower wanted to be more involved in an organisation and have the chance to implement the ideas he came up with.

With a family to consider, it was also a challenge having clients around the world – at one time spread across London, Hong Kong, Johannesburg and Brazil.

“I've always wanted to build and manage a supply chain management practice, and so when UST came along I thought ‘wow!’ – maybe this is my opportunity,” he says. supplychaindigital.com

27

UST

UST – Delivering innovative digital transformation solutions

Opportunity came knocking and Colehower joined UST in September 2021, at a time when, frankly, global supply chains were in a mess. After decades of focus on global sourcing and successfully improvising efficiencies and driving down costs, COVID happened. And that shockwave continues to reverberate. The question is, did we push our luck, and was a shock like this inevitable, and the fallout avoidable?

“When I look at the work that we've done in supply chain over the last 20 or 25 years, we've done some really, really good work, and created very lean, efficient supply chains – almost ridiculously efficient. What I don't think we really considered along the way was are they resilient? Can they withstand a shock?” says Colehower.

“We became so fascinated with lean Six Sigma black belt, so on and so forth, that we lost sight of the fact that these things 28

March 2022

could take shocks and what are we going to do when that happens? I think that the unimaginable happened and the lean supply chains were not able to respond.

“It worries me, because of all that great work we did, I don't want it to go away. I don't want manufacturers to overreact and just drop offshore manufacturing and all the great things that we've done to return to domestic manufacturing and building up inventories. I just don't think that those are going to be beneficial in the long term.”

Colehower believes that global supply chains will rebound but that executives are going to be looking beyond lean and also demanding resilience. Technology will provide more simulation and game theory to test resiliency, using digital twin tech to model and see what happens “when you throw a rock at it”.

And that is often when organisations turn to UST, to solve their most complex problems.

Jonathan Colehower TITLE: G LOBAL SUPPLY CHAIN STRATEGY PRACTICE LEAD INDUSTRY: I NFORMATION TECHNOLOGY & SERVICES

EXECUTIVE BIO

LOCATION: UNITED STATES Jonathan Colehower is UST’s Global Supply Chain Practice Lead, where he brings deep supply chain functional expertise and extensive strategy consulting experience. For over 20 years, Jonathan has focused his career on management consulting, with McKinsey & Company and Accenture. In addition, Jonathan has deep experience in application software.

At Oracle Corporation, he led its supply chain sales and marketing organisation.

His core functional experience includes product design, sourcing, supply chain planning, network design, warehouse management and transportation management.

“ I'VE BEEN IN SUPPLY CHAIN FOR 25 YEARS AND IT'S NEVER BEEN SEXIER THAN IT IS RIGHT NOW” JONATHAN COLEHOWER

GLOBAL SUPPLY CHAIN ` STRATEGY PRACTICE LEAD, UST supplychaindigital.com

29

US$1bn of value created for clients

140+

clients in the global 1,000

12+

years average client tenure

28,000+ employees in 25 countries

30

March 2022

“UST has a very good position in the market and very strong relationships, particularly with the IT organisation,” says Colehower. “We take a bit of a different view on it and we build those relationships with the business.

“I'm talking to senior executives about the business strategy, about the business processes, and eventually what that leads us to is technology enablement. I have an IT organisation that I can turn to and build

UST

“ I DON'T WANT MANUFACTURERS TO OVERREACT AND JUST DROP OFFSHORE MANUFACTURING AND ALL THE GREAT THINGS THAT WE'VE DONE” JONATHAN COLEHOWER

GLOBAL SUPPLY CHAIN ` STRATEGY PRACTICE LEAD, UST

not just create the technology, it guides the organisation every step of the way and provides ongoing support.

“I think that's one of the reasons why UST has such long relationships with its customers, “says Colehower. “I think the average relationship is about 13 years with a client and there's a reason for that – it’s because we're able to continue that level of nurturing and support and adding value to the business.”

Operational planning As well all know, you can’t operate a global supply chain without proper planning.

Colehower’s approach is to address each problem by getting to know each client

architecture and an environment that supports this strategy. That's what I consider to be a 360-degree view of our customers.

We're not just looking at it through a strategy lens or a technology lens – were able to complete the whole picture.”

Something perhaps unique to UST – and certainly one of the many reasons for the organisation having a loyal band of long-term clients – is that they go on an end-to-end journey with clients. UST does supplychaindigital.com

31

INSIGHT

VISIBILITY – OMNI CHANNEL RETAIL

32

“If you just walk into a distribution centre and you compared it to 10 years ago, it'll be completely different.

Instead of moving pallets of shoes, you're now moving individual boxes of shoes. That has a substantial impact from a distribution standpoint. What we're seeing now is more and more automation. I think it's had a major impact on brick and mortar stores.

Omni channel has challenged retailers to rethink how they use their stores as customers have become more demanding. From a supply chain standpoint, you better be prepared to meet that consumer need. That means things like network-wide inventory visibility. If you've got 200 stores, can you look into every one of those 200 stores and tell me exactly what you have an inventory?”

March 2022

better – not just who they are, but who they want to be. He begins by discovering the core value proposition and then building around that as a cornerstone.

“The focus might be on transportation, it might be on manufacturing. At the end of the day, it requires one critical skill and that's listening – Being able to listen to your client, understand what they're saying, and then get to work on the problem solving,” says Colehower.

More often than not, those problems have a common factor – visibility. Being able to see into your supply chain is one of the most important and significant benefits of the digital supply chain. Traditionally, Colehower admits that most customers, around 90%, are still at the stage where they only look one

UST

“ THE SITUATION THAT WE'RE IN RIGHT NOW IS GOING TO HAVE A LASTING IMPACT ON SUPPLY CHAIN” JONATHAN COLEHOWER

GLOBAL SUPPLY CHAIN ` STRATEGY PRACTICE LEAD, UST

stage up or down. The reality in 2022 is that they need to be looking four, five, or even six tiers deep to have eyes on disruption.

“In the digital supply chain in tomorrow's world, I will actually be able to know if something happens long before it becomes a problem,” says Colehower.

“If I’m moving perishable or valuable items long distances, for instance, now I have IoT devices that can track humidity, vibration, temperature and give me live feedback. I think visibility is probably the biggest thing that I'm looking forward to with digital transformation.”

Talking of looking forward, Colehower relishes the opportunities that technology can and will bring to supply chains. Not only will the cost of technology continue

to fall, but the adoption of cloud as a way of life will also be a game-changer for organisations. He says that this will speed up the research and development process and the ability to transform at pace, and really innovate on the technology.

“You know, like it or not, the situation that we're in right now is going to have a lasting impact on supply chain,” concludes Colehower.

That is without a doubt, and it’s reassuring to know that UST’s talented tech teams are ready to solve the toughest problems in an industry that has never seemed sexier.

supplychaindigital.com

33

Overcoming barriers to change in procurement When it comes to procurement transformation, there are seven barriers to change. Here, two experts offer advice on how to overcome them.

WRITTEN BY: SEAN ASHCROFT

G

enerally speaking, us humans aren’t massive fans of change. A 2009 study in the European Journal of Social Psychology suggests it takes 66 days for a new behaviour to become automatic.

So when it comes to instituting enterprise-wide change across an entire function - such as procurement - it’s easy to see why it can be difficult to embed new initiatives and ways of working.

Yet change has rarely been more necessary in procurement, thanks to ongoing disruption caused by the Covid pandemic.

There are seven generally recognised obstacles procurement teams face when looking to make strategic or operational changes. We sought out two procurement specialists, for their advice on how procurement teams should approach transformation projects.

One is Nic Walden (NW) Senior Advisor, Procurement Advisory Membership Programme, for the Hackett Group, a digital transformation consultancy. The other is Chris Chadwick (CC), Senior VP Procurement and Customer Engagement with Tada, a company that offers an enterprise-wide tech platform connecting people, products and processes.

Below are the seven barriers, and Chris and Nic’s insight on ways to overcome them.

34

March 2022

SUPPLY CHAIN

Nic Walden Senior Advisor, Procurement Advisory Programme, The Hackett Group

Chris Chadwick Senior VP, Procurement & Customer Engagement, Tada supplychaindigital.com

35

LogiChem Europe @LogiChem

De Doelen ICC Rotterdam, The Netherlands

29 - 31 March, 2022

Europe’s Only Chemical Supply Chain Conference: Back In Person Your only opportunity to benchmark your strategies and technology with heads of chemical supply chains at the world’s largest chemical companies.

350+ Chemical Supply Chain Leaders to Network With 50+ Experts Sharing Their Practical Insights 12+ Hours of Invaluable Networking Time 3 Days of Insightful Content Take advantage of the early bird prices. Get your tickets before March 4th and save €100.

Going as a group of 3+?

Discover our special group prices.

GET a 15% off using code

SCD15LC

Visit: logichemeurope.com Or simply scan the QR code below

SUPPLY CHAIN

STAKEHOLDER RESISTANCE TO CHANGE NW: I regularly run events, round-tables and workshops where executives say they have a vision but that they struggle to make change happen.

The question is, do the people working on change projects have the skills and training around change practises and certifications, and the psychological process of change?

Resistance is also common when there’s a lack of clear communication around that change. Every business needs ‘change champions’, and they must use them properly.”

CC: No one likes change forced on them, so it’s essential to have goal alignment before the process begins. You have to know what’s most important? Is it assurance of supply?

“ It’s much easier to ask for funding or resources when you have some points on the board” CHRIS CHADWICK

SENIOR VP PROCUREMENT AND CUSTOMER ENGAGEMENT, TADA

Cost reduction? Cost mitigation? Reduction in lead times?

“The C-suite also has a big role to play in holding the entire business accountable for delivering on those goals. It can’t just be procurement led.”

DEFICIENCY OF CRITICAL SKILLS NW: Procurement can be very strategic.

There’s third-party risk management, collaboration with suppliers, sustainability objectives. Where does all that knowledge supplychaindigital.com

37

SUPPLY CHAIN

“ I often hear procurement execs say they have a vision but struggle to make change happen” NIC WALDEN

SENIOR ADVISOR, PROCUREMENT ADVISORY MEMBERSHIP PROGRAMME, HACKETT GROUP

come from? Quite quite often people are just told to get on with it.

Businesses need a blended approach to training: move people around, build skills internally and bring skilled people in from outside.

External bodies can provide training, such as The World Commerce And Contracting Association in the UK, and the Institute of Supply Management in the US. CC: Automation has eliminated a lot of routine operational work,and this can leave skills gaps. Mostly, staff want to learn new skills. I’ve often been surprised how people blossom when given more-strategic work.

Also, hire staff who are digital natives, and hire both for current and future needs.

ORGANISATIONAL COMPLEXITY NW: We have one procurement client that has 2,000 people, and they work with thousands of suppliers across different regions. There are also geographic and cultural boundaries. One way to overcome such complexity is to use an agreed operating model, and manage any deviations against that standard. So it's one size fits all, and you only allow the most critical deviation.

CC: Procurement is both a team sport and a contact sport. You’ve got to get in front of 38

March 2022

business leaders - ideally face to face. Meet the team’s key stakeholders and understand their frustrations.

Walk the production line, go into the storerooms, meet the departmental leaders and understand the business challenges from their viewpoint. You can simplify organisational complexity by doing this.

PROCESS COMPLEXITY NW: It’s important to simplify processes, to maximise value and minimise complexity.

An example might be a business looking to have a new supplier approved. The

delegation authority on something like that might be 15 levels deep, meaning they’ll need sign-off from 15 people. Slim that down to six or seven approvers. It saves time and frustration, and makes the approvals more meaningful.

CC: Rather than seeing complexity as a barrier to transformation, see it as an enabler. Map the process. Identify areas of non-value and bottlenecks. Figure out how to simplify and automate. Use this to build a case for tech investment, and demonstrate the payback.”

Data analytics and brand consulting company Kantar does more than one billion dollars of digital transaction measurement for its clients on a daily basis. But internally it is also driving change, in the way it brings together its procurement data.

Stephen Day is Kantar’s global chief procurement officer, and he says that one barrier to procurement transformation is a lack of rigour when it comes to data.

Speaking at Procurement and Supply Chain Live last year, Day said: “A mistake a lot of organisations make is they do a lot of stuff offline in Excel spreadsheets. It passes the audit, and then they forget about it.

“I've seen many data initiatives fail because people see it as a binary process.

They've met a deadline, they've achieved an audit criteria, they've ticked a box.

“Data is a fluid resource. You've got to keep nurturing and developing and investing in it. You've got to make sure you engage with people, so they understand that the use of that data needs to be installed in your management system, so you use it all the time. Not just before an audit.” supplychaindigital.com

39

SUPPLY CHAIN

OVER-COMMITMENT OF INITIATIVES NW: Instead of spreading yourself thinly across ten projects, focus on, say, three, and make sure they are delivered to a very high standard. Less is more -and be patient. A technology project in a large company might take two years, and be multi-phased. Even when it’s implemented, training needs to be ongoing, because people are always joining or leaving.

CC: Over-commitment is easy to do and difficult to step back from. No leader wants to fall short of what they promised the board or, worse, Wall Street. Under-promise and over-deliver, but without appearing to have set soft goals.

INADEQUATE FUNDING OR RESOURCES? NW: Procurement is never top of the shopping list. Sales, Marketing, Business Development and R&D are always top.

So recognise that, and take the time to make your business case as persuasive as possible.

Bring in the hard data, the benchmarks, the external perspectives on what everyone else is doing, and you should be doing the same. We live in a world of shortages and cost inflation, so procurement has never been more important. Right now, procurement managers should be driving transformation initiatives harder than ever.

SUPPLY CHAIN

INADEQUATE USE OF FUNDING OR RESOURCES CC: It’s much easier to ask for funding or resources when you’ve some points on the board, so identify and deliver some quick wins. Seek out more-progressive business partners who may be able to fund the kind of innovation that can be used as a proof of concept for a bigger ask.

LACK OF C-SUITE BACKING NW: Any significant project needs buy-in from the CFO and other board members, and that has not always been the case with procurement. But I’d say the past two years of supply chain challenges has shone a light

on the procurement function. Third-party risk management, balancing efficiency with resilience, making sure there’s enough stock in the warehouse. These things are front-ofmind right now. Strike while the iron’s hot.

CC: This slows down the flywheel of change more than anything. To avoid it, you’ve got to build an understanding of what procurement can bring to the table, and demonstrate the ability to deliver bottom-line value. You’re going to have to invest time and energy into building relationships and finding allies.

Look beyond your organisation for mutual peers in similar companies who can help you build a best-practice story and communicate the value you can deliver.

“ It’s important to simplify processes, to maximise value and minimise complexity” NIC WALDEN

SENIOR ADVISOR, PROCUREMENT ADVISORY MEMBERSHIP PROGRAMME, HACKETT GROUP

supplychaindigital.com

41

‘Changing Procurement for Good’as the 5G leader WRITTEN BY: ALEX TUCK PRODUCED BY: GLEN WHITE

42

March 2022

supplychaindigital.com

43

T - MOBILE

Chief Procurement Officer Mike Simpson is making a positive impact in procurement at T-Mobile through leadership, partnerships and cutting-edge tech

T

-Mobile consider themselves the ‘Un-carrier’ –a non-traditional wireless network operator born not from traditional landlinebased companies, but out of the wireless ether that has recently launched the world's first nationwide standalone 5G network (and still the only one in the U.S).

The company has deployed the largest and fastest 5G network and the reach is growing on a daily basis.

This ‘Un-carrier’ ethos originated as a marketing campaign in 2013 to introduce a streamlined plan structure for new customers, dropping years-long contracts with subsidised phones, coverage fees for data, and early termination fees. As former CEO John Legere said in testimony before Congress in June 2018, “We set out to fix a stupid, broken, arrogant industry.”

Since then, the ‘Un-carrier’ has become synonymous with the entire organisation's attitude, shaking up standard practice in telecommunications by boldly reaching new heights like becoming the first telecom to commit to –and achieve –the goal of sourcing 100% of its total electricity usage with renewable energy by the end of 2021.

By listening to customers, taking actions that remove pain points, and breaking free from the old way of working in the cellular industry, T-Mobile is leading the industry. Years ago, it scrapped contracts and transformed its customer care teams –

44

March 2022

T - MOBILE

Mike Example of an imageSimpson caption supplychaindigital.com

45

T - MOBILE

getting inspiration for every new initiative by listening to what was coming out of the consumer base. The business listens to its own people and it’s suppliers too, which are as diverse as the workforce.

People, ownership and alignment At T-Mobile, the Procurement teams are crucial to the business running efficiently, profitably and in times of scarcity, getting those countless and crucial buying decisions right. Examples of this include the Procurement team’s massive network supply chain operations, the company’s focus on sourcing 100% of its total electricity usage with renewable energy, multi-billion-dollar agreements with cell site/tower companies, and a focus on working with diverse suppliers.

46

March 2022

Part of a relatively small team, Mike Simpson, Chief Procurement Officer, reports into the President of Technology, Neville Ray. It’s this entire Technology organisation that has helped lead 2019’s momentous launch of T-Mobile’s 5G network. Mike Simpson has the lion's share of the organisation’s expenses within his scope, as he explains: “Everything sourced by T-Mobile outside of handsets runs through my shop: Cell tower leases and real estate portfolios.

Anything involving really sensitive technology.

Our computers, office equipment, marketing agreements, consulting, and more. My team drives value and return on investment out of the right purchasing decisions and this often gets down to technology choices”.

Simpson’s leadership teams are structured into business units, with full responsibility for their function, their budget and their

T - MOBILE

MIKE SIMPSON TITLE: CHIEF PROCUREMENT OFFICER INDUSTRY: TELECOMMUNICATIONS LOCATION: GREATER SEATTLE AREA

EXECUTIVE BIO

people: “We have three tenets that we feature in our Procurement & Supply team: people, ownership and alignment. We have some lofty goals every single year. One thing you always have to think through is: how do you invest in your people and provide consistent leadership?

We’re inclusive, diverse and people-first, so our people drive our business forward.”

According to Simpson, T-Mobile’s core values help to empower the procurement teams, allowing people to make decisions and encouraging ownership of their respective functions.

“We're all owners of this company.

We're all here to delight our customers.

Purposeful alignment across employee teams is vital to achieving great results – for our wireless customers as well as for our internal business units.

Mike Simpson’s Procurement & Supply team at T-Mobile handles all Enterprise, Technology and Network sourcing while also driving the company’s supplier diversity programs, managing its world-class spectrum assets, and leading award-winning energy sustainability programs. His team supports synergy attainment through enterprise-wide sourcing initiatives that have helped pave the way to T-Mobile’s national 5G leadership. His career includes positions in finance, business planning and operations with Nokia Siemens Network as well as Clearwire Corporation. A graduate of Washington State University, Simpson is a sports enthusiast who has even climbed Mt. Rainier – the most prominent peak in the continental United States.

A partner you can count on to deliver the service excellence you cannot live without.

www.aimsplus.com

www.tellworks.com

www.makttrans.com

T-Mobile partners with Tellworks for Network Supply Chain Christo Makrides, Owner and Managing Partner at Tellworks Logistics, discusses the company’s long-standing partnership with T-Mobile

Tellworks partners with T-Mobile In 2007, Tellworks began its partnership with T-Mobile. “We have had a relationship with T-Mobile since the inception of reverse logistics,” says Christo Makrides, Owner and Managing Partner, Tellworks Logistics.

“At Tellworks, we believe that our customers are part of our DNA, and as a result, we have developed an intimate relationship with our customers to provide them with full transparency,” continues Makrides.

When it comes to Tellworks’ partnership with T-Mobile Makrides highlights that one of the major attributes that it brings to the table for T-Mobile is its technology and data analytics. “We were very instrumental in bringing AIMSPlus+ together with other solutions as part of our partnership,” says Makrides. As an enabler of Tellworks operations, AIMSPlus+ produces insight which is used to optimize the supply chain.

“In addition, we developed our own transportation company to give us more intimacy into the supply chain, allowing us

to offer real estate, warehouse management technology and a transportation solution in one package,” he adds.

How does Tellworks plan to work with T-Mobile in the future?

When it comes to Tellworks’ partnership with T-Mobile, Makrides hopes that it is one that is long-lasting. “We hope to continue to provide T-Mobile with analytics and artificial intelligence (AI) in a way that provides cost savings and effective production at a high level,” comments Makrides.

He adds: “Overall, I’m very thankful and very happy to be a part of such a great relationship with T-Mobile. It’s an opportunity of a lifetime to be integrated with the development and build-out of 5G. My team, from the executives all the way down to the associates who live and breathe this every day, try to provide whatever it takes on behalf of the customer to make this a success.”

CONTACT US

The :o9 Digital Brain is the ultimate platform to transform planning and decision-making.

The digital brain of your enterprise.

Planning and decision-making for digitalage speed, scale, and complexity.

The telecom industry is going through a massive transformation: 5G promises ubiquitous high-speed data, enabling many new use cases. Yet many are still to be imagined, so it’s hard to predict future demand for 5G services. If you combine this uncertain demand picture with the many current supply chain disruptions, it becomes clear why rolling out the infrastructure for these new 5G networks becomes a highlycomplex undertaking.

Network operators are not the only one with these challenges: All industries are facing high variability of both demand and supply, while having to manage increasingly complex operations, not least because of the increasing number of outside partners (e.g., suppliers, contract manufacturers, service and distribution partners, etc.) involved in global supply chains.

The paradox is that there is so much information available today to make better decisions—everything from market trends, detailed consumer data, real-time IoT

streams, and many more. Most companies recognize this, yet very few are able to leverage all this information for better planning and decision-making. One of the key roadblocks is the inability of traditional enterprise software to process these vast amounts of data, let alone derive knowledge and improved outcomes with the help of modern software algorithms. :o9’s mission is to leverage the power of data and artificial intelligence to help companies make better decisions. With the :o9 Digital Brain platform, companies are able to forecast demand more accurately, detect demand and supply risks and opportunities earlier, evaluate what-if scenarios in real-time, match demand and supply intelligently, and drive alignment across their entire value chain—across customers, internal stakeholders, suppliers, contract manufacturers, and other supply partners.

We believe the :o9 Digital Brain is the most valuable platform for enterprises to help drive supply chain agility, revenue growth, and optimal financial performance, and that better decisions for companies equal a better outcome for our planet.

For more information, visit us at o9solutions.com

Accelerating the Digital Revolution We are the Infrastructure Partner to the Digital Economy

GET IN TOUCH

DigitalBridge & T-Mobile partner to develop next-gen 5G Marc Ganzi, President and Chief Executive Officer (CEO), describes DigitalBridge as: “a real estate investment trust, focused globally on the construction, ownership and management of digital infrastructure companies across five key verticals: data centres, macro cell towers, fibre networks and edge infrastructure. We work with our telecommunication partners to help enable their next-generation networks.”

DigitalBridge partners with T-Mobile Being one of DigitalBridge’s most important relationships in the Northern Hemisphere, the company has been “working with T-Mobile for over two decades facilitating the build-out of their next-generation 5G networks, which is a privilege and an honour for us,” he adds.

“T-Mobile has an absolute eye on the future and understands that to deploy 5G effectively, you not only need to focus on the physical layer of the network, but also understand the metaphysical part of the network as well — the software defined layer,” says Ganzi.

Aligning DigitalBridge’s ESG initiatives with T-Mobile “In alignment with T-Mobile’s ESG strategy and their focus on being the most environmentally conscious mobile carrier in the United States, DigitalBridge has made a pledge to have all of our portfolio companies carbon neutral by 2030,” says Ganzi.

DigitalBridge’s unique architecture of subsidiaries Our unique architecture of over 20 portfolio companies allows us to work with T-Mobile, where we can talk to them in a holistic manner when it comes to the future of their network,” he adds.

Today’s challenges in the telecommunications space really come down to the software-defined layer of the network that will play out at the edge.

GET IN TOUCH

T - MOBILE

Consistent communication of objectives, expectations, corporate-wide initiatives, cost savings initiatives and risk management – these are a few areas where my leadership team and I place attention.”

You won’t find Simpson and his team resting on their laurels either, even if they complete their goals or hit targets in midyear. “We always strive for more,” said Simpson.

54

March 2022

Leadership in ways that are unexpected Simpson was inspired by informal lunch meetings that CEO Mike Sievert held with colleagues, so ‘Coffee With Mike’ became his chance to engage regularly with people he wouldn’t usually see or work closely with.

Simpson saw this as a valuable mentoring opportunity and also a way to gain valuable feedback from all levels of the organisation.

It also birthed some great initiatives such

T - MOBILE

“ Pretty much everything outside of retail and handsets runs through my shop” MIKE SIMPSON

CHIEF PROCUREMENT OFFICER, T-MOBILE

as the case of an industry-wide job training and career placement program – NextTech Diversity – that emerged from the shadows of the pandemic in mid-2020.

“I was challenged about how we could do more at T-Mobile, from the diversity of our supply base while buying and spending more with diverse companies. How could we double-down and actually create jobs in such difficult times?” said Simpson.

Launched in early-2021, the NextTech diversity program has supported the training of 50 women and men of color during its inaugural year – with a success rate at 100% for placing those 50 graduates into career opportunities with multiple companies in the wireless industry.

Simpson and his team have raised awareness about programs that support veterans, women and men of color – as well as supported financial assistance to family members of severely injured, permanently disabled or deceased tower workers. That awareness has an impact across the entire T-Mobile enterprise as the

company recently announced a USD $2.5mn donation supporting the Thurgood Marshall College Fund’s scholarships and aimed at opening doors to equitable economic and educational opportunities for young adults.

Simpson added: “We had our first NextTech Diversity graduating classes, for field technicians and tower climbers, up and running within six months. From a grassroots campaign, we've actually grown this initiative; during the fourth quarter of 2021 we expanded the program to train candidates interested in getting licensed as commercially-licensed truck drivers – a huge supply chain need in the U.S. right now.”

“As leaders, we need to actively listen to our teams on a regular basis because some of the best ideas come from throughout the organisation,” said Simpson. “Creating NextTech was a prime example of that,” he said.

supplychaindigital.com

55

Remarkable outcomes start with a remarkable network.

Powering remarkable telecom Learn more now

Dell drives innovation in a 5G world.

Dell Technologies’ deep relationship with T-Mobile is heralding the way for an even stronger 5G future.

Dell Technologies is striding into a dynamic, collaborative 5G future, as it continues to move way beyond its traditional role as a provider of enterprise IT. The company is now an established strategic partner to a number of telecom firms, helping them modernise their networks, and also to monetise them, by generating new revenue streams.

One of Dell’s customers is T-Mobile, with whom it has been engaged in an innovationdriven relationship for many years.

Historically, Dell’s focus has been on supporting T-Mobile’s IT and network requirements, through its storage, server and client solutions.

“But we’ve now elevated our strategic partnership above this,” says Dell’s Telco Global Sales Leader, Scott Cohen.

“We’re now also collaborating on monetising 5G in the market, as well as on network innovations,” Cohen adds.

Key among these is the 5G Innovation Lab, which launched early in January 2022.

This has seen Dell and T-Mobile partner to unlock 5G capabilities for enterprises and consumers.

“5G has the ability to change the world,” says Cohen. “But use-cases around higher bandwidth, lower latency, and IoT have yet to be flushed out. The 5G Innovation Lab will accelerate this innovation.”

With the transition from 4G (closed architecture) to 5G (open architecture) Dell is well placed to apply its 5G know-how to the wider telecom market.

“We’re a US$100bn company with 165,000 employees,” says Cohen. “For this transformation to happen it takes a business with scale and commitment to enter the ecosystem. The market is coming towards our core competencies, and we plan to respond.”

Learn more now

T - MOBILE

Engineering, Deploying and Maintaining Next Generation Networks We help carriers, OEMS and enterprises maintain critical communications infrastructure and deploy next generation networks, including fully project managed engineering, deployment, integration and maintenance services.

Trusted by the largest communication companies, we provide services for cell sites, small cells, central offices and data centers.

Our dedicated self-perform professionals support wireless and wireline infrastructure programs through our metric-based approach, transparent operations and commitment to safety.

LEARN MORE

62

March 2022

T - MOBILE

Procuring telco success through technology

This is nothing new for T-Mobile. As part of Simpson’s focus on ‘changing procurement for good’ he is the executive advocate of an annual golf tournament that has raised more than USD $3M over eight years for two wireless industry charitable organisations: Warriors4Wireless and the Tower Family Foundation.

It’s a cause dear to Simpson’s heart: “This is a very dangerous, complicated business that tower climbing companies are in. We make sure proper training is provided to veterans seeking a career after their military service.

And, through the Tower Family Foundation we work to make sure financial support is in place for their families

and themselves should an accident occur,” he added.

The pandemic causes massive supply chain constraints When T-Mobile US merged with Sprint Corporation in 2020, in an all shares deal worth USD$26bn, it completely moved the needle for the organisation. But days before the merger was finalized, the pandemic hit and with it, massive global supply chain constraints became reality:

“My team focuses our employees on three tenets: people, ownership and alignment” MIKE SIMPSON

CHIEF PROCUREMENT OFFICER, T-MOBILE supplychaindigital.com

63

Connecting Digital Communities

Our mission is to promote education, digital literacy and employability in underserved communities. Together with our partners, we’re building Digital Communities that improve quality of life through access to broadband connectivity supported by our wireless infrastructure solutions. Join us, as we work to fulfill a commitment to build 2,000 Digital Communities over the next five years.

americantower.com/digitalcommunities © 2022 ATC IP LLC. All rights reserved.

T - MOBILE

“I remember the first calls to our task force.

Do we have enough toilet paper and medical supplies for our retail and customer care and technology teams? They never went home! They stayed on the front lines. We shifted focus to our front lines so they could help our customers.”

Simpson and his team were relentless in their pursuit of the right products; so their crews and personnel in the field, in stores and in call centers had what they needed to build the network and continue to serve customers during such a critical time.

Their actions were a true reflection of what President of Technology Neville Ray, calls the ‘always on’ approach.

“We turned our suppliers into partners at that point in time. We depended on each other and figured things out together. It's changed our culture and how we handle our partnerships with our key providers on a day-to-day basis,” he added.

According to Simpson, the response to the pandemic was a triumph over adversity

also due to more than 30 original equipment manufacturers (OEMs) that really stepped up and delivered.

“We invested in our supply tool suite and advancements in technology, such as using drones for inventory management.

Our network supply chain partner, Tellworks, invested to streamline our supply chain warehouse and distribution programs.

With more than 2,000 diverse suppliers – there's tremendous opportunity to do more in this area – and many others to thank,” said Simpson.

Guiding procurement in a non-traditional telco Simpson is an advocate of doing things the right way, especially in a company that is proud of its differences from its competitors and its Un-carrier brand.

supplychaindigital.com

65

The largest private wireless infrastructure company in the US As the only private, at-scale tower company in the US with a permanent capital base, we are a flexible partner with the capacity to help customers grow their networks with ease.

Learn more

T - MOBILE

“The way we procure and manage our backhaul is different as we aren’t a wire line company. We also have our network supply chain that falls under my organisation, which is pretty massive and the engine that runs our network builds”, says Simpson.

“We are also closely engaged with our national and regional teams, who are building cell sites. That’s likely a bit unique.”

Simpson also raises the way they handle asset management, and in particular, the largest asset the company owns: Spectrum.

“Spectrum is the lifeblood of wireless networks. It’s what we are licensed to use from the U.S. Federal Communications Commission (FCC) to benefit our consumers. That asset management sits under my organisation. Our spectrum assets – worth tens of billions of dollars – are a big

differentiator in how we provide this 5G experience that’s well ahead of the curve in this space”, he added.

Spectrum mastery key to market gains T-Mobile has assets in low-, mid- and high-band spectrum. The layer cake strategy was devised by Neville Ray and is a good visual indication of how coverage works. The low band works on achieving nationwide coverage, the mid band is driving widespread 5G adoption and the high band is for more powerful uses requiring massive capacity, such as augmented reality.

Simpson’s spectrum asset management team has done a deep dive into the company’s spectrum and cell sites, resulting in self-built applications that visualize spectrum assets across the

Taking Our 5G Network to the Next Level

supplychaindigital.com

67

The network infrastructure for what’s next.

Through ever-increasing data consumption, predictive analytics, AI and edge-to-edge connectivity, the Cloud and the future - runs on Zayo.

Video

Learn More

T - MOBILE

T-MOBILE MOST AWARDED WIRELESS PROVIDER IN HISTORY T-Mobile received the top spot in the J.D. Power 2022 report, marking the ninth consecutive win and the 23rd time T-Mobile has taken the top spot among mobile network operators.

The company has the most wins of any other wireless provider in the history of the study with a score of 823 — a full 26 points above the segment average and the highest scores in all categories including phone, store, app, web, social media and text services. T-Mobile has taken the top spot consecutively in their segment in the J.D. Power study ever since the Un-carrier launched Team of Experts in 2018, which was a case study in the Harvard Business Review.

country. This allows deployment teams to pinpoint spectrum assets at any cell site location and maximize the use of available radio waves.

Simpson states that: “Spectrum frequencies are not always the same across geographies and markets. You have to make the right investment choices and use advanced analytics and workflow engines to bring them to cell site network planning.

From a cost perspective, it’s also vital information we can use.”

Simpson credits his Spectrum team for revolutionising digital license management and aiding operational control, while also making certain our spectrum use is compliant with the FCC. Our tools also provide an understanding of the licenses of their competition, which means field technicians can readily see, in advance, who owns bandwidth at any given cell site. supplychaindigital.com

69

T - MOBILE

70

March 2022

T - MOBILE

“We're all owners of this company. We're all here to delight our customers” MIKE SIMPSON

CHIEF PROCUREMENT OFFICER, T-MOBILE

supplychaindigital.com

71

T - MOBILE

A good example of the effect of these technologies on cell site strategy was seen with the expanded partnership with some of our largest cell tower landlords: “That was really foundational for us to rapidly start deploying our 5G network. Great shout out to Crown Castle and American Tower for working through very complex engagements with us and signing new agreements during 2021. Both sides saw that as a partnership as a win and it fuels our ability to actually access more locations,” said Simpson.

From disruptors to market leadership Part of the organisation for almost ten years, things were very different when Simpson first joined T-Mobile – the wireless provider was in fourth place in the competitive pecking order. That was just about the time that T-Mobile adopted a challenger mindset that manifested the Un-carrier spirit.

The acquisition of Sprint was significant both for the value of its customers and people – as well as the breadth and depth of mid-band spectrum brought to T-Mobile that they so vitally needed. With coverage supplychaindigital.com

73

Level-up supplier collaboration Connect with all your suppliers, regardless of type or size with a flexible and scalable network.

Learn more

#TogetherWorks

T - MOBILE

“ Our nationwide 5G network is way ahead of our chief competitors – and we are driven to maintain that leadership” MIKE SIMPSON

CHIEF PROCUREMENT OFFICER, T-MOBILE

the key issue in comparison with big rivals such as Verizon, the acquisition was a gamechanger in both reach and speed.

Now the company is the dominant player in 5G, T-Mobile’s next challenge is to maintain the same drive they had when they were starting out. Simpson adds: “For us to get to number one and stay number one, you have to have a maniacal focus on the customer base. If that ever changes, then we’ll probably not be number one at the end of the day. For us, the wireless consumer is our rallying cry and that's what we get behind every day.”

Simpson is bullish about the achievements: “We are way ahead of the competition in providing a true 5G experience. When considering our locations and the advanced network services we can provide an enterprise business, having a standalone 5G core already created, developed and deployed – all this gives us an edge”, he said.

supplychaindigital.com

75

The above is a sample of Talon's AI stressed connector model that provides tower crews instantaneous reviews of connections.

GLOBAL SOLUTIONS THAT WORK FOR YOU Talon’s Artificial Intelligence tools are designed to automate both simple and complex tasks. Customers now can further maximize their workflow efficiency by saving resources, time, and adding value through Talon’s enhanced AI Automation feedback tool.

CONTACT TALON

SCHEDULE A DEMO

T - MOBILE

THE LAYER CAKE 5G STRATEGY

DID YOU KNOW...

T-Mobile had a record high of 108.7 million customers, with its low-band, Extended Range 5G network covering nearly everyone in the United States with 310 million people across 1.7 million square miles (and growing). The carrier’s even faster Ultra Capacity mid-band network, covers 210 million people.

High-Band: Super-fast speeds with a limited distance. Does not penetrate indoors directly. Ideal for dense urban areas.

Mid-Band: Considered the 'sweet spot' of 5G spectrum. Faster speeds than low-band with wider georgraphic reach than high-band. Ideal for large urban and suburban regions. Also used for LTE. Low-Band: Travels far and wide, but at speeds comparable to 4G LTE. Great for indoor use and rural areas. Also used for LTE.

Looking to the horizon with technology investments Navigating through the pandemic successfully required sensible investment in T-Mobile's internal systems and the investment choices its suppliers made to transform the ecosystem. On the investing side, Simpson said: “Within procurement, we're adding analytics engines and category management functions and tools to really fuel the right decision making and procurement buys. We're making some great strides and I’m excited to see where we go from here.”

In the network supply chain, automated drones are ensuring inventory is accurate and the business is complying with audit functions and well as delivering greater efficiencies. When it comes to cell site audits, Talon’s flying drones bring more precise inputs into cell site builds. For site maintenance and disaster recovery, they can survey the areas before sending in crews.

Simpson said: “It's amazing to see how you can up-level your game regarding the precision and accuracy that technology can supplychaindigital.com

77

T - MOBILE

T-Mobile Home Internet: Reliable Service Beyond Big Cities | T-Mobile

bring, as far as combining drones, advanced analytics and all those learning capabilities.”

When quizzed on how to revolutionise the buying experience in 2022 and beyond, Simpson says it’s about getting further up the chain with business partners to align on core initiatives and key areas, and to enable a more streamlined buying process from their experience.

“We've started this transformation with the analytics and process controls. I think the next steps are the implementation of NextGen tool suites. We have big plans there and more to share with some significant partners, so there's tremendous value in getting things even faster, to fuel growth for the business.” he said.

supplychaindigital.com

79

Supply chain is dead.

Long live Demand Response Network

LOGISTICS

The notion of supply being chain-like is changing, with the pandemic forcing businesses to adopt a more dynamic, response and network-driven approach WRITTEN BY: SEAN ASHCROFT

W

hen British logistician Keith Oliver coined the term ‘supply chain’ back in the 1980s the world was unconnected in ways younger people today might struggle to believe.

PCs were yet to be mass-produced, and those who owned one tended to be male teenage coders who spent way too much time in their bedrooms. There was no internet of course. The closest most people got to virtually connecting to strangers was when they got a crossed line on their finger-dial analogue phone, and could hear strange conversations in the ether.

So when Oliver mentioned supply ‘chains’ people were genuinely astonished, because very little about daily life suggested the world might be an interconnected place.

Now, 40 years on, Oliver’s definition of how supply works is itself in danger of becoming a museum piece, as the world moves away from the linear connections of the past 40 years to a network of evershifting inter-connected nodes. There is nothing even remotely chain-like about it.

Business is moving from linear to networked supply “The challenge is to move from the concept of a linear chain to the dynamic configuration supplychaindigital.com

81

Interos maps supply chain in 3D and real time.

You can know every single thing about how all your partners do business.

Or you can read it in papers.

LOGISTICS

“ Inventory availability has become a powerful tool, as it’s now capable of shaping demand” MARIA REY-MARSTON

GLOBAL SUPPLY CHAIN INNOVATION, ACCENTURE

of a network of companies and locations,” explains Maria Rey-Marston, Global Supply Chain Innovation at Accenture.

Rey-Marston might even be in the frame to don Oliver’s crown, as the person responsible for coining the phrase to describe the next 40 years of supply: the Demand Response Network.

“What we're seeing is a network of companies and points for delivery,” Rey-Marston explains. “This network comprises smart suppliers, plants, and

transportation companies, as well as intelligent locations for placing products.”

The goal of DRNs, she says, is to respond to omnichannel demand that can arise at any moment, with any kind of request. Omnichannel describes the multiple methods of shopping that are available to consumers, such as online, in a physical shop, or by phone. Most usually omnichannel is associated with retail and consumer goods, but Rey-Marston says this is a misnomer.

“DRNs are required in plenty of areas outside of retail,” she says.” You need it in oil and gas, for example. People in oil fields and on drilling platforms require services, so that’s your demand, right there.”

Demand Response Networks gained traction in the pandemic She says DRNs were tempered by the heat brought about by the pandemic: “There was so much disruption to both supply and supplychaindigital.com

83

LOGISTICS

“ Demand Response Networks are all about being able to harvest and read demand signals” MARIA REY-MARSTON

GLOBAL SUPPLY CHAIN INNOVATION, ACCENTURE

Dynamic Response Network: read the signals Maria Rey-Marston, Global Supply Chain Innovation at Accenture, says that businesses looking to transition from old-school chain-like supply models to a Demand Response Network (DRN) must master one thing above all else: demand signals.

“DRN is all about being able to harvest demand signals, about what consumers want, where they're located, what they're doing,” she says. “And just as importantly is knowing the context of those signals.

She continues: “The key thing is to identify which signals to harvest, because otherwise you get swamped in data.”

The first step, she says, is to understand what signals are relevant for the business, “and what actions need to be taken to reduce the latency of the signal”.

By latency, she means how much time has elapsed between the signal being created and someone in the business taking a decision based on that data.

“DRN data can tell companies in real time if an out-of-stock item at a particular outlet or point is impacting negatively.”

demand, which we've not had before in modern times. This prompted companies to start bringing sources of supply closer to the points of consumption, and manage demand at those points so that it matches available inventory.

This, she says, means that inventory availability has become a powerful tool, because it’s now capable of shaping demand.

She explains: “There's so much scarcity in some things that having a product available can make people decide to substitute things that in the past they would never have

substituted, because they had both options, or many options, available.”

It’s a profoundly different approach to inventory management in chain-type supply.

“In a chain,” she says, “the role of inventory is to close the gap between supply lead times and customer service lead times. If a company’s demand is in central London but it’s bringing goods in from Poland then the job of inventory is to close the gap between delivery and consumers’ expectation that they’ll get their product immediately”.

Rey-Marston stresses that in a DRN, companies must be disciplined about

harnessing demand signals from the market.

“They must align in closer and better ways with their sales and marketing functions.

Supply can no longer operate in isolation if it wants to respond to demand. They must connect with the elements of the network that are able to support demand response.”

Does just-in-time inventory fit the dynamic supply approach?

So where does all of this leave the two main approaches to inventory management - Just In Time (JIT) and Just In Case (JIC)? How do these fit into the DRN model. Do they fit in at all? supplychaindigital.com

85

LOGISTICS

Under JIT, a business makes only what it needs, draining and replenishing inventory as required. Apple CEO Tim Cook turned Apple into a globall beast using the JIT model. With JIC, companies keep large inventories on hand, to minimise the likelihood a product

86

March 2022

will go out of stock. Jörg Schafer, EY Global Retail Supply Chain Leader, feels inventory models are determined more by sector, than whether supply is chain- or network-driven.

“In an industry like retail or consumer, where people have immediate demands,

either a company has a product or it doesn’t,” he says.” There's just no way you have a perfect just-in-time infrastructure.”

He adds: “Obviously, to optimise cost structures you’ll strive not to have too much inventory in your network. if you're

good at demand forecasting you can get as close as possible to just-in-time, but it’s not the same thing.”

A much better fit for JIT is the automotive sector, says Schafer.

“You order a car, they give you a date when you’ll get it and then they organise supply around that,” he says.

“The sourcing of parts, warehousing, everything. It’s an almost perfect just-intime industry.”

It’s ‘make to order’, rather than ‘just in time’ As for Rey-Marston, she feels that rather than talking about ‘just-in-time’ and ‘just-in-case’ it’s more meaningful to talk in terms of maketo-stock and make-to-order.

“If I'm a make-to-stock company I build my own inventory of things. But within this model you have companies that hold on to inventory.

Staying with Schafer’s example of the automotive industry, she says that some automakers hold on to inventory “because the cost of holding a finished car is much higher than holding components" Others, though, won’t.

“They say, ‘I'm confident of selling these cars, so I'd rather not have an inventory of anything’. But both approaches are still make-to-stock.”

Make-to-order is different, she says.

“Take Tesla,” she says. “Tesla is a maketo-order company. They start collecting pre-orders even before making a product available to the public, They’re capturing demand signals. With make-to-order your inventory policies on components have to be very different, because you have far more certainty that you’ll get revenue from them.”

The language of supply has changed a great deal in 40 years, but then so has the nature of supply itself.

supplychaindigital.com

87

FAST

PHARMACY SERVICE

BioPlus

GROWS

WITH NEW TECHNOLOGY WRITTEN BY: LEILA HAWKINS

88

March 2022

PRODUCED BY: JAMES BERRY

supplychaindigital.com

89

BIOPLUS

Fred Gagle, VP of Technology & CSO, BioPlus, discusses the pharmacy’s growth and how technology supported their services even in the challenges of COVID-19

B

ioPlus Specialty Pharmacy knows that timely care is critical, especially in the treatment of cancer, multiple sclerosis, hepatitis C, and the other complex conditions served by this speciality pharmacy.

Unlike a retail pharmacy, the speciality medications that BioPlus supplies are specialist medicines for chronic conditions.

Founded in 1989, the company services patients nationwide and currently has brickand-mortar locations in six states. "We have a motto of ‘BioPlus, Where Healing Begins in 2 Hours’" Fred Gagle, the VP of Technology and CSO explains. "We are committed to being faster than other pharmacies and are proud to be the first and only independent, national speciality pharmacy to develop processes that quickly move through the steps from diagnosis to prescription fulfilment, within two hours, two days, and two Click operational processes.”

As Gagle explains: "We call this the ‘Power of 2’ and it starts with our ‘2 Hour Patient Acceptance Guarantee’ that notifies physician offices in less than two hours whether a referred patient is accepted for treatment or not. Prescriptions then move through the ‘2 Day Ready 2 Ship’ process.

In addition, patients with qualifying prescriptions can refill online with two simple clicks.”

90

March 2022

Example of an image caption supplychaindigital.com

91

BIOPLUS

More recently, BioPlus also announced its advanced operational processes that allow accelerated delivery of certain generic oncology medications, guaranteeing that they are ready to ship within 24 hours of the pharmacy receiving a complete referral.

“Until now, no other pharmacy has ever eliminated the excess waiting period — the time from diagnosis to starting therapy — that cancer patients have historically experienced when prescribed treatment.

We think of it as ‘hope delivered in 24 hours,’” notes Gagle.

The organisation has experienced rapid growth over the past nine years, increasing its workforce of 80 to over 500 today, and generating US$1.5bn in revenue.

"I think the growth has been a combination of many different factors," Gagle says. "It starts with our patient focus and our commitment to be the premier speciality pharmacy in the nation.

92

March 2022

"I also think BioPlus has valued the role of technology and how our technology investments have helped us maintain a competitive advantage in the marketplace.

Our speciality pharmacy has always focused on being ‘fast & easy’ for our doctors and patients, and technology is essential to meeting that goal."

Gagle also explains that BioPlus has dedicated staff across every department, with a strong culture that has been built over the years, which includes giving back to the greater community. Playing off the ‘Power of 2’ theme at BioPlus, there’s a ‘2gether program’ that provides a lifesaving antibiotic through a partnership with OneWorld Health for every referral received at BioPlus. It’s part of BioPlus’ global vision to ‘heal the world 2gether’, helping to ensure patients across town and around the world have access to lifesaving and lifesustaining medications.

FREDERICK GAGLE TITLE: VP OF TECHNOLOGY AND CHIEF SECURITY OFFICER INDUSTRY: PHARMACEUTICAL LOCATION: UNITED STATES Fred Gagle, as the Executive Vice President of IT, ensures that the IT infrastructure at BioPlus is reliable, cost effective, secure, and easy to support. His department is responsible for making sure patient health information is secure and protected. Gagle deeply understands IT’s potential for making things easier for patients, doctors, pharmacists, business partners, and employees.

Gagle earned a Master of Business Administration from the University of Central Florida, as well as a Bachelor of Science in Business Administration– Information Systems from the University of Florida.

500+ Number of employees

$1.5bn Revenue

1989

Year founded

“ Our pharmacy makes sure that the patient therapy and treatment plan are going well and this is managed through a very comprehensive clinical assessment system”

BIOPLUS

Like so many other organisations, this workforce was suddenly faced with the challenge of COVID-19, which necessitated a quick pivot to a new style of working.

"Having almost 10 times more employees working from home was a real challenge," Gagle explains.

"This introduced many variables like troubleshooting issues at employees’ homes with their internet connection and speed and all sorts of other issues that were previously in a well-controlled environment when people worked in the office. But it's also helped us become a better company," Gagle says.

Pandemic restrictions meant BioPlus had to improve remote access to the network.

"We implemented soft phones, introduced

“ Our speciality pharmacy has always focused on being ‘fast & easy’ for our doctors and patients, and technology is essential to meeting that goal” FREDERICK GAGLE

VP OF TECHNOLOGY AND CHIEF SECURITY OFFICER, BIOPLUS SPECIALTY PHARMACY

COLLABORATE. CONNECT. CONVERGE.

Converge Technology Solutions Corp. is a Software-Enabled IT & Cloud Solutions Provider Focused on Delivering Industry-Leading Soutions and Services.

www.convergetp.com | info@convergetp.com

94

March 2022

Microsoft Teams, and had to quickly increase the capacity of our remote desktop servers.

We changed all of our in-person meetings to virtual meetings, and even our sales team had to learn a different way of selling because many doctor’s offices only allowed patients and not visitors."

By making these adaptations, Gagle says the company has experienced growth of 20% throughout the pandemic, which he calls "remarkable." In part, this is because BioPlus was already equipped to handle the pandemic challenges due to the nature of how a speciality pharmacy operates. "We've always been somewhat virtual. Speciality pharmacies manage very expensive drugs, and it takes a while for health plans to approve the treatment, so we store everything centrally, conduct patient consults over the phone and then ship the medication.

"From that standpoint, we haven't really changed our business model that much.

Years ago we implemented Interactive Voice Response (IVR) technology which made it easier to onboard new patients and fulfil medication refills for existing patients. We also added what we called the digital ‘Patient Journey’ which provides a comprehensive patient management system that includes a web-based patient portal, emails, text messaging, and educational videos that support patients by providing information about both the patient’s condition and their therapy, including potential side effects and how to manage that challenge.

"Then we introduced our self-service ‘2 Click system’ for patients to refill qualifying medications in a much easier and faster way, and in 2021, we introduced multiple online forms of payments for patients." supplychaindigital.com

95

These digital experiences have led to accolades such as a spot among the Five Best Online Pharmacies from Money.com in 2020 and a 4.8 Google ranking from hundreds of patients.

In the future, Gagle says virtual services will be essential. "I think that telepharmacy and telemedicine have always been the future of pharmacy and healthcare, but the pandemic has greatly accelerated the need for this. In most aspects, BioPlus has already been providing telepharmacy for patients since we do consultations, billing, and patient care all through telecommunications and other virtual technologies.

"We may look into doing some kind of live video chat with our patients next, to give a more personal touch to patients.

96

March 2022

We have made large investments in online technology that can provide the best patient care and adherence to their medication and therapy. Our pharmacy makes sure that the patient therapy and treatment plan is going well and this is managed through a very comprehensive clinical assessment system.

The assessment systems use the technology we developed and have refined to suit the unique needs of a speciality pharmacy."

Over the years BioPlus has also shifted toward the cloud. "When we choose software and technology we always make sure that it is mobile-friendly and can be easily accessed from anywhere. Remote access is key for our current and future success and it is an area we spend a lot of time on. In fact, we are fully transitioning to

BIOPLUS

“ We made an impact and revolutionised the speciality pharmacy industry by becoming the fastest pharmacy with our ‘Power of 2’ promises”

the cloud with Amazon Web Services (AWS) along with using Citrix Cloud," Gagle says.

BioPlus also uses a suite of Microsoft products, including Microsoft 365, Teams, SQL Servers, Power BI, and Great Plains.

"Microsoft Teams has been an effective way to allow all our teams to communicate in this highly virtual world that we operate in today," he says.

"We use Biscom which is a cloud-based fax system, and Salesforce CRM which is our cloud-based CRM system for sales. Our strategy is also to introduce virtual desktop infrastructure in 2022."

Converge Technology Solutions is a key technology partner and has been supporting BioPlus' growth for over seven years. "They have always been there for us and provided technologies including load balancers, disaster recovery solutions, storage area networks, firewalls, Cisco switches, servers and other IT equipment. I can’t say enough about this company and I would highly recommend them as a technology solutions partner and vendor.”

Gagle says that for the next two to three years, BioPlus' top goals will centre around connectivity. "This means that by using people, process and technology we will be deeply connected to the doctor’s offices and to our patients.

"We set higher quality standards for the speciality pharmacy industry by becoming the fastest pharmacy with our ‘Power of 2’ promises. Moving to the cloud and being able to work virtually gives us flexibility as we expand and grow into other markets.

We're licenced in all 50 states, and in the future, we aim to be the most connected speciality pharmacy in the US."

FREDERICK GAGLE

VP OF TECHNOLOGY AND CHIEF SECURITY OFFICER, BIOPLUS SPECIALTY PHARMACY supplychaindigital.com

97

BEING SEEN TO BE

GREEN IS NO LONGER ENOUGH -

YOU NEED PROOF

Sustainability certification and ratings are increasingly important, as businesses strive to meet net zero carbon targets WRITTEN BY: SEAN ASHCROFT

S

ustainability is near the top of virtually every agenda these days. COP26, held in Glasgow in October 2021, served to confirm that the global move to net-zero carbon emissions by 2050 is no mere goal, but an operational reality at governmental and boardroom level.

But of course, aiming for net zero and knowing how to achieve it are discrete things. What we do know for sure is supply chains have a huge role to play in the sustainability bid. According to McKinsey, supply chains account for more than 80% of greenhouse gas (GHG) emissions.

The pressing need for sustainable supply chains means that there is now an urgent need for businesses to be sure that their supply chain vendors are on-point when it comes to net zero goals. This can be a problem for multinational businesses, who can have thousands of thirdparty vendors, upstream and downstream.

98

March 2022

Certification helps prevent ‘greenwashing’ But how can a business know if a supplier is truly green, or merely ‘greenwashing’ — by talking the sustainability talk, but not walking the walk? In a word — certification. Supply chain managers who want assurances their vendors are pukka green then they can demand proof of the fact.

“ Businesses must provide recent and credible evidence of their sustainability management systems” DAVID MCCLINTOCK

MARKETING DIRECTOR, ECOVADIS

SUSTAINABILITY

supplychaindigital.com

99

We are Procurement.

Sustainability in supply chains is our responsibilty.

We will build a sustainable future for people and our planet.

Join our grassroots initiative and community of more than 4,000 change agents who want to ensure that all supply chains across the world have embedded sustainable procurement practices by 2030.

Pledge now at spp.earth Sustainable Procurement Pledge Let‘s drive change together

SUSTAINABILITY

“ Our evidence-based ratings are validated by a global team of experts” DAVID MCCLINTOCK

MARKETING DIRECTOR, ECOVADIS

Proof that quite possibly has been issued

by EcoVadis, one of the world's largest providers of business sustainability ratings.

Since being founded in 2007, it has gone on to create a global network of more than 85,000 green-rated companies.

Global supply chains, financial institutions and public organisations rely on EcoVadis to monitor and improve the sustainability of their business and trading partners.

“Our evidence-based ratings are validated by a global team of experts, and

are adapted to more than 200 industry categories, 160 countries, and companies of all sizes,” says EcoVadis Marketing Director, David McClintock. “We’re also backed by a powerful technology platform.”

Ecovadis ratings based on international standards EcoVadis ratings cover seven indicators across 21 sustainability criteria that are grouped into four themes: Environment, Labour and Human Rights, Ethics, and Sustainable Procurement.

McClintock says the criteria are based on international sustainability standards, including the Principles of the UN Global Compact (a voluntary initiative based on CEO sustainability commitments), International Labour Organisation supplychaindigital.com

101

“ It’s important organisations don’t see certification as the main goal but rather, the change that comes from it” MARTIN TOWNSEND

GLOBAL HEAD OF SUSTAINABILITY AND CIRCULAR ECONOMY, BSI

conventions, and the UN Guiding Principles on Business and Human Rights.

Basing sustainability ratings on globally recognised standards such as these are important because, as McClintock admits “there are thousands of ecolabels and certifications, across industries, commodities and products and countries.”

For any form of green accreditation or rating to be useful it must be credible, which is why EcoVadis is rigorous in the demands it makes on businesses who are seeking a rating.

“During the assessment process, our sustainability analysts consider the criteria relevant to the company’s size, industry, and location and also take into account the information provided in the company’s questionnaire and any supporting documents,” says McClintock.

He adds that participating companies must provide “formal, recent, and credible documentation that serves as a reliable element of the company’s sustainability management system.”

Just 30 years ago Nike was using slave labour Such rigour is a far cry from the situation 30 years ago, when Nike was called102

March 2022

out for using slave labour. More recently there was the 2013 Dhaka garment factory collapse, which claimed 1,123 lives, and left 2,500 injured, many seriously. The factory manufactured garments for brands, including Benetton, Prada, Gucci, Versace, Matalan and Primark.

In the wake of these and other supply chain controversies, companies began

SUSTAINABILITY

DHL rolls out new greencarriers programme

addressing the issue by auditing supplier factories and facilities.

“It spawned a new industry segment, doing ‘social audits’, or ‘environmental audits’,” says McClintock. “Companies also began remote assessment, by building their own supplier sustainability selfassessment questionnaires (SAQs) with checkbox-type questions.”

DHL has announced the roll-out of Green Carrier Certification through its primary UK subcontractor DigiHaul. The green carrier certification programme helps to identify sub-contractors that are already contributing to sustainable logistics, while encouraging even more investment in green technologies to reduce carbon output.

DigiHaul manages a network of 750 carriers on behalf of DHL, who will all be invited to take part in the certification programme. DigiHaul will be responsible for encouraging participation, conducting the assessments and managing the certification process.

Carriers will be assessed on whether they have an environmental or sustainability strategy in place, as well as their ability to measure their carbon footprint and share their data. In addition, the assessment will look at features of their fleet —from basic technologies such as low rolling resistance tyres, aerodynamic enhancements and idle cut-off, to advanced green technologies such as sustainable fuels and alternative drivetrains.

The process will result in carriers being awarded one of four levels of certification: 'Pass', 'Good', 'Excellent’ and ‘Outstanding’. The categorisation will enable DHL and its customers to choose greener services and create an additional decision point for future transport tenders and assignments. supplychaindigital.com

103

SUSTAINABILITY

But, he says, to reach their multinational supplier base, some tried to translate the SAQs, and then had to collate responses on spreadsheets. It led to a backlash from suppliers, says McClintock.

“Assessments were generic and contained irrelevant questions, and it required a lot of work for suppliers to fill in a questionnaire for every customer or industry served — all with no feedback in return.”

Ecovadis founded on principle of reliable methodology It was on the back of this situation that EcoVadis was founded, its aim being to create sustainability ratings with benchmarks based on a reliable methodology.

“And it’s all underpinned by diverse data sources, validated by experts and delivered in a scorecard with rich feedback and 104

March 2022

insight to help drive improvements and create value.”

As well as ventures such as EcoVadis, national standards-setting bodies are also helping embed sustainability practises in business.

The British Standards Institute (BSI) is the UK’s national standards body. As well as producing technical standards on a wide range of products and services, it also supplies certification and standards-related services to business, including on sustainability.

Like all national standards bodies, the BSI is a representative of the International Organisation for Standardisation (ISO). It’s the ISO that defines sustainability standards, and the BSI that facilitates their uptake.

These standards include ISO14000 (a family of environmental management standards) and ISO26000 (social responsibility).

SUSTAINABILITY

ISOs helping change sustainability mindsets So how much help are ISOs in helping businesses green up supply chains?

“Standards capture consensus best practice, because they are developed by leading experts in their field,” says Martin Townsend, the BSI’s Global Head of Sustainability and Circular Economy.

Townsend adds that iIt’s important organisations don’t see certification as the main goal, but rather the change that results in their company applying the knowledge that comes from gaining the standard.

“Training and education is an important part of the process, so that everyone in a company understands the wider objective that is being achieved and the role they play in the process,” says Townsend.

This, he says, is one of the defining differences between the sustainability

standards of today and those of the recent past.

“The focus was once on measures such as pollution control and the management of risks to the environment,” says Townsend, “but the standard has developed to include more criteria regarding compliance requirements.”

He adds: “Those that use the standard today have to differentiate between activities they can directly control and those they can influence. This encourages organisations to become agents of change,. which has resulted in improvements in supply chains. When used in relation to regulation, businesses are driven to develop a more comprehensive environmental strategy and action plan.”

Sustainability standards and ratings alone will not see the world hit its net zero targets by the 2050 deadline, but they are helping keep us on track. supplychaindigital.com

105

MAN AND

IN PERFECT HARMONY?

TECHNOLOGY & AI

As warehouses continue to struggle with staffing issues, an increasing number of businesses are turning to robotics and AI for solutions.

WRITTEN BY: SEAN ASHCROFT

T

he pandemic has posed many new problems for businesses, but it has also amplified a raft of issues that were already in evidence. Such as the shortage of warehouse staff.

Gavin Harrison is UK Sales Manager of Element Logic, which has been optimising warehouse performance for 30 years, offering robotics, software and consulting services.

Harrison says warehouse labour issues are so widespread he has “not spoken to a single customer who has not raised it as an issue within the past 12 months”. He quickly adds the issue “has been looming for some time”.

Part of the problem, he explains, is that an ever-increasing number of employees have realised warehouses can be a stressful and intensive working environment. “The wages on offer aren’t really worth all of the hard graft involved,” he says.

Warehouse location can be another issue, says Rick Faulk, CEO of Locus Robotics, a US-based business that offers warehouse robots to increase productivity and order-accuracy.

“They’re often in semi-rural areas, making it difficult to recruit from the local community,” says Faulk. supplychaindigital.com

107

Unify Systems.

Optimize Suppliers.

Empower People.

Follow us @TealBook

TECHNOLOGY & AI

“ ROBOTS CAN TAKE ON JOBS THAT ARE REPETITIVE AND LOW-SKILLED, WHICH HELPS WITH STAFF RETENTION” AKASH GUPTA

CO-FOUNDER & CTO, GREY ORANGE

Then of course there is Covid, and the problem of staff shortages due to illness and self-isolation.

Staffing issues have hit businesses of all sizes Such staffing issues aren’t just affecting smaller retailers either, because industry giants such as Amazon are also struggling to hire warehouse workers. In a bid to compete for a limited labour pool, many companies have increased their hourly warehouse rates, and are also offering signing-on bonuses, flexible working and even transport-to-work schemes.

But is it enough? No, says Harrison, who explains the problem has been compounded by the pandemic-fuelled growth in e-commerce, which has seen businesses increase the size of their warehouse operations.

“Because these warehouse processes are largely manual, rather than automated, warehouses need more workers than ever, and there simply aren’t enough to go around.”

Although the labour problem is widespread, its severity varies from country to country, something Harrison says can be explained by differences in “warehouse culture”.

“In the UK for instance we don’t always treat warehouse workers with the respect they deserve. supplychaindigital.com

109

TECHNOLOGY & AI

Many of them come from temp agencies, and are on zero-hour contracts, because companies employ changing numbers of people every day. Coupled with the issue of poor wages this has seen the UK struggle a lot more than other countries.”

Scandinavia a boom area for warehouse automation By way of comparison, Harrison points to Scandinavia, where far more warehouse staff are on permanent contracts and work consistent hours. More trust is also placed in them by managers, which alongside a higher base-salary means they enjoy much better staff retention.

Harrison says: “Also due to the higher cost of labour, Scandinavian businesses can’t afford to have huge numbers of warehouse staff. It’s not a valid business model for them.”

Because of this, he says, they look to implement automated processes much earlier in their growth cycle, which means that the use of warehouse automation in these countries is far more developed than in the UK. Traditional automation technology has included the likes of conveyor wave-picking and mini-load or shuttle systems. Harrison says such systems “are very expensive, inflexible and gigantic”, and that this makes them unsuitable for the fast, highly reactive world of ecommerce.

“Over the past few years we’ve started to see a huge shift in the types of automation available,” Harrison says.

Common warehouse automation technologies include: • Autonomous Mobile Robots (AMRs).

This type of robot has an independent understanding of its environment, and can and move through it independently.

110

March 2022

“ ROBOTS MAKE PEOPLE’S JOBS EASIER AND MORE SATISFYING. PEOPLE ARE NEARLY ALWAYS POSITIVE ABOUT THEM” RICK FAULK

CEO, LOCUS ROBOTICS

Five showcase automated warehouses Nike’s ‘Distribuzione’ is an automated Eurozone warehouse that holds more than 25,000 stock-keeping units and that handles 43 million items annually. The heart of the system is a 280-metre long-loop sorter, which handles both inbound and outbound orders.

The Swedish international home products manufacturer uses automated warehouse services to distribute flat-packed goods to locations around the world. IKEA grossed more than 11bn euros in 2020, and the significant costs driven out by its automated warehouse solutions contribute fully to that figure.

Worldport is the worldwide hub for United Parcel Service, and it’s located in Kentucky’s Louisville International Airport. The

automated services hub helps UPS handle 416,000 packages per hour.

The SuperHub boasts 300 miles of conveyor belts, which help support the nearly 3.3 million packages that come through Memphis International Airport each day, with parking slots for up to 175 aircraft. It boasts a digital sorting and processing system for domestic and international small packages.

The US-based online shoe and clothing retailer was the first retailer to deliver items within 24 hours of purchase.

Zappos deploys fully automated warehouse services from KIVA Systems in its operation hub in Shepherdsville, Kentucky. The company is able to maintain free shipping, a 365-day return policy and a full-time call centre with the help of its automated warehouse. supplychaindigital.com

111

What does the future hold for warehouse automation?

“As automation becomes more widely used, retailers will begin to buy the best technology for a particular task, regardless of the solutions on offer from different vendors. This might be for packing, picking or moving inventory around. However, integrating such systems will be complicated.”

Akash Gupta, Co-founder & CTO, Grey Orange “Volume will continue to grow, and automation will be the only way to stay ahead of demand. I think labour will still be an issue, and optimising existing workforces with automation resources will become more valuable to businesses.”

Rick Faulk, CEO Locus Robotics “Warehouse automation will be the core of all successful businesses’ operations. Solutions that are flexible enough to meet complex requirements will dominate, as will those that are scalable, and able to deal with the potential for massive growth.”

Gavin Harrison, UK Sales Manager, Element Logic 112

March 2022

TECHNOLOGY & AI

AMRs work collaboratively with warehouse staff, whether that’s moving stock during picking, retrieving or replenishing. “They are an easy, cheap first step into automation,” says Harrison.

• Automated Storage and Retrieval Systems (ASRS). These are driven by computer-controlled systems, and deposit and retrieve loads from defined areas. An example of an ASRS is AutoStore, which, says Harrison, is popular across Europe and is beginning to be embraced by UK businesses “because it meets the requirements of the modern ecommerce business”.

Increasingly, supply chain chiefs are looking to automation as a long-term answer to ongoing warehouse labour issues.

Safety and worker engagement two pluses of automation The benefits of automation are varied and often compelling. Safety and worker engagement are two of them, says Akash Gupta, co-founder and CTO of Grey Orange, an AI firm specialising in warehouse automation. It was founded in India but now has offices worldwide.

Gupta says that AI and robots can take on warehouse jobs that are less safe for people, as well as tasks that are repetitive and low-skilled.

Harrison agrees. “A system like AutoStore has order-picking robots, meaning there’s no need for people to walk miles and miles every day, up and down aisles, retrieving the right products.”

Cutting out these and other timeconsuming and repetitive tasks allows employees “to focus on more sophisticated, nuanced tasks that require human judgement and supervision”, says Gupta. He adds this enriches people’s time at work, which in turn helps with staff retention.

Faulk also echoes these views. “AMRs help workers become more productive, and improve ergonomics and workplace quality.”

He says his customers are positive about working with the company’s LocusBots “because they make their job easier and more satisfying”. He adds that one customer reported a 77% reduction in workplace injuries after deploying LocusBots, as well as fewer no-shows.

Gupta also points out that another area in which AI can help is with upskilling staff.

“Instead of replacing workers, businesses can use AI and robots to train employees in the digital skills they need to prepare for the future,” he says.

It seems the future of warehouses might well be built on man and machine, working in perfect harmony. supplychaindigital.com

113

EXPO

7th & 8th September

Register now

›

Sponsor

›

STREAMED & IN PERSON BUSINESS DESIGN CENTRE