Supply Chain - February 2022 by Supply Chain Digital

February 2022 | supplychaindigital.com

VISA Payments, procurement, and the great pandemic pivot

Global logistics providers

Logistics: How global logistics chiefs are overcoming a world of pain Supply Chain: Taking stock of inventory management

Hitting

‘super aggressive targets’ is paramount Zach Greenberger, Head of Strategic Business Development & Global Supply Management, Lyft

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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 VIDEO PRODUCTION MANAGER

DIGITAL VIDEO PRODUCERS

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

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MARKETING MANAGER

KIERAN WAITE SAM KEMP

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PROJECT DIRECTORS

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FOREWORD

The future isn’t about technology - it’s about people “Change is not a function of technology, or strategy. It is a function of people, and businesses are fast waking up to this reality”

The world is changing, maybe faster than at any time in living memory, and for this we shouldn’t be thanking technology, but people Ours is a world in flux. Very little is the same as it was two and a-half-years ago, when a zoonotic virus made its way from bat to man in a Wuhan wet market. Furlough. WFH. Top dressing. Waiting lists for toilet roll. None of this was part of our daily lives in early 2020. No one was talking about robust and agile supply chains, either. But they are now. There is also one other very important thing we weren’t quite as focused on as we are today: people. Change is not a function of technology, or strategy. It is a function of people, and businesses are fast waking up to this reality. In this issue, you’ll find experts from across supply, logistics, procurement and technology saying the same thing: businesses must put people first if they are to succeed in today’s changing world.

SEAN ASHCROFT SUPPLYCHAIN DIGITAL MAGAZINE IS PUBLISHED BY

sean.ashcroft@bizclikmedia.com

supplychaindigital.com

CONTENTS

Our Regular Upfront Section: 10 Big Picture 12 The Brief 14 Timeline: The history of advanced technology in supply chain 16 Trailblazer: Tim Cook 20 Five Minutes With: Dennis Unkovic

Supply Chain

Taking stock of inventory management

The universe and the internet of everything

Driving Diversity, Equity, and Inclusion

Lyft

JPMorgan Chase

How global logistics chiefs are overcoming a world of pain

Broadening access to biologic medicines

Logistics

Alvotech

106

Increasing diversity and inclusion in the supply chain

Visa – payments, procurement, and the great pandemic pivot

Diversity and Inclusion

126

Tech & AI

What is driving CPOs to modernise and digitise S2P?

Visa

134 Top 10

Global logistics providers

COMING SOON FO LLOW N OW

EDU C ATE • M OT IVAT E • E LE VAT E

About March8

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A BizClik Media Group Brand

FO LLOW N OW

BIG PICTURE

Rod Ramsell Unsplash.com

February 2022

The underlying supply chain challenges of Chinese New Year China

Every year, those in China gather from far and wide to celebrate Chinese New Year (also known as Lunar New Year or Spring Festival). With this significant Chinese celebration falling on February 1 this year (2022), a seven-day public holiday falls between January 31 and February 6. But what does this mean for the supply chain industry? Over the celebration period, production in factories more or less comes to a standstill, and capacity is significantly reduced across all transport. Regular consequences of the celebration include longer transit times, flight cancellations, and blank sailings, resulting in a significant impact on global freight markets for many weeks. Other factors that are expected to have an impact for not only Chinese but global supply chains in 2022 include COVID-19, supply chain congestion, power curbs, and the Beijing Winter Olympics. Global transport and logistics specialist DSV recommends that supply chains ensure that they plan ahead and consider alternatives.

supplychaindigital.com

THE BRIEF "We shouldn't be shy of trying new ideas, new ways of doing things, new strategies – especially in regions like Asia Pacific” Mano Manikkam

Senior Director, Head of Global Sourcing – Asia Pacific, VISA  READ MORE

“The pandemic hasn’t been easy but we’ve taken it as a opportunity to rethink our ways of working, and to increase our supply chain resilience” Gerhard Helmerich

Head of Global Supply Chain, Alvotech 

BY THE NUMBERS EY report on how the future of work will change the digital supply chain

80%

49%

Say their workforce needs new digital skills to maintain competitiveness

Are already deploying cloud solutions at scale

46%

33%

Are planning to adopt machine learning and AI

Are not planning to use drones

18%

Are piloting the use of Internet of Things (IoT) technology

"I believe as IoT develops we are going to the offerings we've built become crisper and easier to consume” Zach Greenberger

Head of Strategic Business Development, Lyft  READ MORE

February 2022

Digital twin framework is boost for supply chain agility

Businesses looking to increase supply chain agility via digital transformation have been boosted by news that digital twin technology will now be easier to adopt and scale, following the approval of a new common framework. The framework defines all areas of interoperability to make it easier for businesses to use these highly complex digital systems at scale, and with interoperability. Find out more 

MCKINSEY

Green corridors: Lanes for zero-carbon shipping Shipping’s bid to become net zero by 2050 would be significantly boosted by the introduction of green shipping lanes, according to a new report from McKinsey. The shipping sector accounts for an estimated 80% of all trade, and about 3% of total carbon emissions, which - unchecked - could rise by as much as half again by 2050. The report - called The next wave: Green corridors - was produced by The Getting to Zero Coalition, a partnership between the Global Maritime Forum, the Friends of Ocean action, and the World Economic Forum. Analytical support was provided by McKinsey. The report says one way to accelerate decarbonisation is to introduce ‘green corridors’ - specific trade routes between major port hubs where zero-emission solutions are supported. Green corridors, says the report, would allow policy makers to create an “enabling ecosystem with targeted regulatory measures, financial incentives, and safety regulations.” The report includes a “pre-feasibility” study on two routes that it says have potential to become green corridors: the Australia-Japan iron ore route and the Asia-Europe container ship route.

 MORRISONS

Angela Johnson, supply chain manager at Morrisons, received an MBE (Member of the British Empire) medal for services to the food supply chain in the New Year Honours List.

 TESLA

Tesla defied the supply chain problems affecting much of the automotive industry, to deliver a record number of vehicles in Q4 2021. The e-vehicle manufacturer produced 305,840 vehicles and delivered 308,600, beating a record it set in the third quarter.

 GENERAL MOTORS

For the past 23 years General Motors has been the top-selling US automaker. But no longer - Toyota has risen to the position, but it was close. Toyota sold 688,813 vehicles during the second quarter 2021, topping GM’s sales of 688,236 vehicles. GM was pipped by a mere 577 vehicles.

 US POULTRY SUPPLIERS

Winter tornados cut a 200-mile swathe of death and destruction through the south-east of the US. Worse hit was Kentucky, where poultry is the state’s top agricultural commodity.

W I N N E R S FEB 22

L O S E R S

supplychaindigital.com

TIMELINE THE HISTORY

OF ADVANCED TECHNOLOGY

IN SUPPLY CHAIN 1935

1951

1956

Drones

Robots

While the unmanned aerial vehicle (UAV) can be dated back to the 1700s, the first modern drone didn’t come into play until 1935 as part of the Royal Air Force’s training for pilots. Fast forward to today, drone usage in logistics has rapidly increased particularly in the healthcare industry following the outbreak of COVID-19.

While artificial intelligence (AI) is another technology that can be seen in many crude forms throughout multiple centuries, the first working AI programs were written for chess games in 1951. When it comes to supply chains, AI can be used to further warehouse efficiencies, enhance safety, reduce operations costs, and improve on-time delivery.

The first robot to enter the supply chain, came from the manufacturing industry. George Devol patented the first robot in 1954. Since then, robotics have advanced significantly, today, one of the most common robots being used in supply chains are Automated Guided Vehicles (AGV) in the warehouse.

February 2022

We take a look at the use of advanced technology in supply chain, from drones in the 1950s to blockchain today

1990s

1999

2002

2008

Big Data

IoT

Digital Twins

Blockchain

While it is unclear who coined the term big data, it is a phrase that has been in use since the early 1990s. Big data in today’s supply chains used for inventory predictions, product quality, temperature control, order fulfilment, realtime tracking, and machine maintenance.

While one of the first early examples of the internet of things (IoT) can be dated to Coca-Cola in the 1980s, IoT was not a meaningful concept until 1999. Today, IoT in supply chains is used for location tracking, environment sensing, fleet management, equipment maintenance, and demand assessment.

Despite being first coined as a term in 1991 by David Felernter, it wasn’t until 2002 that the concept of digital twins was applied in manufacturing by Dr Michael Grieves. Digital twins are used today in supply chains to optimise processes and inventory, identify bottlenecks, and plan transportation and facilities.

Dating back to 1982, David Chaum first proposed a blockchain-type protocol in a college dissertation.However, it wasn’t until 2008 that the first blockchain concept was brought to fruition by Satoshi Nakamoto. Today, those in supply chains use blockchain to increase automation, improve collaboration, drive traceability and transparency, and to optimise security.

" Early examples of the internet of things can be dated to Coca-Cola in the 1980s"

supplychaindigital.com

TRAILBLAZER

TIM COOK JOB TITLE: CEO COMPANY: APPLE

WRITTEN BY: SEAN ASHCROFT

Cook supplied magic ingredients that allowed for Apple to grow

robably more than any multinational company in history, Apple is the corporate incarnation of its owner. Steve Jobs was Apple, and Apple was Steve Jobs. So back in 2011, when the world learned that Jobs was terminally ill with pancreatic cancer, analysts predicted a rocky road ahead for the company. They weren’t alone; few could envisage the company without its inspired, iconic and occasionally tyrannical leader. But Jobs himself had no such fears. Long before his death he knew that his Chief Operating Officer, Tim Cook, was the best person to take the company forward. It was Cook who served as interim CEO in 2009 when Jobs was on medical leave. Why did Jobs choose Cook? Because more than anyone, it was Cook who had ensured Apple’s phenomenal growth by never allowing the supply of its products

February 2022

to be outstripped by demand, even when demand was stratospheric. Cook joined Apple in 1998, having been recruited by Jobs. “I knew it was a once in a lifetime opportunity to work for a creative genius,” Cook said at the time. With a degree in industrial engineering, he spent 12 years at IBM, and had a short stint at Compaq, before joining Apple as senior VP of worldwide operating,

“Inventory is inherently evil. It’s like dairy produce, and who wants to buy spoilt milk?” supplychaindigital.com

going on to serve as executive VP for worldwide sales and operations. But when Cook joined Apple it was a very different company to today’s behemoth. It was in decline. There was no iMac, iPod, iPhone or iPad, nor streaming services. Its product range was jaded and unfocused. Yet less than a year after Cook joined, Apple was reporting profits. As the visionary Jobs came up with one eradefining product after another, Cook made sure they were always available, and in huge numbers. An early Cook ploy was to buy US$100mn of holiday season air freight, months in advance. This cut out competitors, and left them scrambling to ship products during the holiday season. But he realised very early in his Apple 18

February 2022

career that the company’s supply chain was unwieldy, over-complex and unresponsive, and so he moved Apple to a just-in-time (JIT) manufacturing model - a process he had overseen in his time at IBM. Cook pared back the number of supply chain vendors from more than 100 to 24, reduced the number of warehouses by half and established relationships with contract manufacturers.Cook loathes inventory, telling Forbes he finds it “fundamentally evil”. “Inventory is like dairy products,” he has also said. “No one wants to buy spoiled milk.” Thanks to his JIT supply model Apple is able to turn over its inventory once every five days. Apple’s ability to launch, manufacture, and ship millions of iPhones globally like clockwork - with virtually no inventory surplus - is held to be a miracle of the JIT model. Cook’s supply model may have been severely tested by the global pandemic, but then what supply chain hasn’t been? On a personal level, one thing Cook shares with Jobs is a fierce work ethic; he starts work at 4am every day. “It’s the one time of the day when I’m in control,” he has said. “Things happen throughout the day that kind of blow you off course. The morning is yours.” As CEO he also stays in touch with Apple’s customers. “I read an extraordinary number of customer emails,” he says. “It keeps my hands on the pulse of what customers are feeling, thinking and doing.” Little wonder that during his tenure as CEO, Cook has doubled the company's revenue and profit, and the company's market value has increased from US$348bn to $1.9tn. Steve Jobs may have built Apple, but it is Cook who has extended it.

supplychaindigital.com

FIVE MINUTES WITH...

DENNIS UNKOVIC: DENNIS UNKOVIC IS A LAWYER AND AUTHOR, WHO SPECIALISES IN SUPPLY CHAIN. HIS LATEST BOOK IS CALLED ‘TRANSFORMING THE GLOBAL SUPPLY CHAIN: CYBER WARFARE, TECHNOLOGY, AND POLITICS'

Q. TELL US A LITTLE OF YOURSELF

» Early in my career, I worked in the US

Senate as legislative counsel to Senator Hugh D Scott. For the past 35 years I have been in private practice with the law firm, Meyer, Unkovic & Scott. I’ve appeared in the top 20 of the Best Lawyers in America list for the past 20 years.

Q. AS A LAWYER, WHAT DREW YOU TO SUPPLY CHAIN?

» Over the past 35 years I’ve travelled

to Asia more than one-hundred times, handling international business transactions. Much of this work involved both inbound and outbound foreign direct investment between the US and primarily China and Japan. As time went on, I began to understand these transactions were part of an intertwined network, with many involving the global supply chain. It was this realisation that led to me writing my book.

Q. WHAT IS THE THRUST OF THE BOOK?

» That the global supply chain is broken.

Many assume the pandemic is the reason for the collapse. It’s not. Instead, four trends are largely responsible for the transformations already underway. In the book I describe these as ‘Max Trends’. 20

February 2022

“ ONE THING IS CLEAR – THE WORLD ECONOMY AS WE ONCE KNEW IT WILL NEVER RETURN”

These are: • The growing threat of cyber attacks on supply chains around the world. • The revolutionary impact of 3D printing on manufacturing. • The rapid and disruptive adoption of robotics and AI. • Nations protecting their domestic economies from aggressive foreign competitors. I think the biggest casualty of this over the next five years will be China. Some companies have already begun the process of relocating their supply chains out of China to other sites in Southeast Asia, India and the Americas.

Q. WHAT ARE THE TAKE-HOME MESSAGES FROM YOUR BOOK?

» The book contains practical advice and

strategies for C-suite execs, boards of directors, senior managers, and anyone else involved in directing and monitoring supply chain activities. The trends I describe in the book are impacting companies globally, and ignoring them comes with a high price. One thing is clear: the world economy as we once knew it will never return. The challenge now is for companies to figure out how to adapt their activities and operations to a quickly changing landscape.Companies that are responding to economic and political pressures by reshoring supply supplychaindigital.com

FIVE MINUTES WITH...

On the news Dennis Unkovic is a staple on US news channels, where he speaks on a variety of business issues. A recent appearance was on CNBC, where he discussed the impact of 3D printing on the supply chain.

chains are poised to be the most successful over the long run.

consumer economy - that it needs to depend on its own resources and technologies.

Q. WHO INSPIRES YOU, PROFESSIONALLY?

Q. WHERE WILL SUPPLY CHAINS BE IN FIVE YEARS' TIME?

George Washington. Aside from being the most important political figure in American history, Washington was the first to recognise that America needed to develop a selfsufficient manufacturing base to avoid being subject to foreign control and influences. It’s ironic Washington foresaw America’s future, by demanding it be more than just a

resemble what America has relied on for the past 30 years. Companies insightful enough to adapt their operations will survive and prosper. Those that fail to reform how they conduct international business will face possible collapse, and this will be an opportunity for more innovative companies to take their place.

» The first President of the United States,

February 2022

» The global supply chain will not at all

“ SEEING COMPANIES THAT HAVE BEEN BATTERED OVER RECENT YEARS BEGIN TO RESTRUCTURE AND STRENGTHEN IS TRULY REWARDING” Q. WHAT’S TODAY’S BIGGEST CHALLENGE FOR SUPPLY CHAINS?

» The major challenge I see is getting top

corporate executives to recognise that having a secure and reliable supply chain is absolutely critical to a corporation’s survival. Too many C-level executives and boards of directors simply do not get it. They wrongly assume that supply chain problems are merely something that can be fixed by lower-level company employees. Frankly, those CEOs and executives who do not understand what is going on need to be replaced by boards of

directors run by individuals who prioritise the long-term future of their companies by securing their supply chains.

Q. WHAT’S THE MOST REWARDING ASPECT OF YOUR WORK?

» Seeing companies that have been battered over recent years begin to restructure and strengthen is truly rewarding. Companies, regardless of their size, now have the chance to reorganise and come out stronger on the other side. As a lawyer advising these companies, I take great pleasure in being a part of that process. supplychaindigital.com

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Lyft, the universe and the internet of everything

WRITTEN BY: SIMON HOWSON-GREEN PRODUCED BY: MIKE SADR

February 2022

LYFT

supplychaindigital.com

LYFT

Zach Greenberger explains Lyft’s growing ‘rideshare’ business and how it is hitting super aggressive targets, in partnership with Oracle

o digital enterprise is an island entirely of itself. They need strong, well-suited partnerships, realistic but ambitious targets, and some creative “beyond the box thinking.” That’s how Zach Greenberger approaches his pivotal role at Lyft. Greenberger is a supply chain guy. He knows it link by link. He hails from an impressive background. IBM and Tesla. He’s been with Lyft for three years. “My focus is delivering value to the endto-end supply chain for our broader business and then fostering partnerships that drive incrementality and loyalty to our customer base,” he says. In other words: growing a business step-by-step and ensuring you don’t lose your loyal customers along the way. To do that Greenberger says he needs working relationships with suppliers who become long term partners, with similar goals and a matching culture. “I’ve always been one who believes mature supply chain organisations play critical roles, not only driving efficiencies to the business through its supply base, but also becoming trusted advisors, operators and problem-solvers for our stakeholders. “Most people know Lyft as a rideshare company. But, we are focused on a broader mission improving people's lives with the world's best transportation,” says Greenberger.

February 2022

Example of an image caption supplychaindigital.com

When your usual course is blocked, how do you find new streams?

ey.com/tmt

HOW EY IS HELPING LYFT RAISE ITS POST IPO GAME

designing their internal controls, redesigning the chart of accounts to scale with their targeted growth, and supporting the company’s financial transformation.

Lyft raised more than two billion dollars in its 2019 IPO. Timing these events is often a hit or miss affair. Lyft nailed it with huge success. But keeping up that growth momentum and spending the money wisely while steering a route through the new regulatory constraints going public took serious teamwork.

‘Sanjay is spot on,’ says Greenberger. EY brings a ton of expertise to support and augment our team and make sure we are building that proper foundation for long term success.’

And if that wasn’t enough, Lyft and EY had to exploit the benefits of a successful funding round just as the global pandemic took hold.

According to Khunti, with so many separate business lines and units being developed under the Lyft banner – from rideshare to scooter hire to product delivery to name just three – EY needed to take a holistic approach.

‘The IPO was a super exciting time for us,’ says Greenberger. ‘It necessitated a level of maturity and growth we needed to properly scale business operations.’ He says this is where Lyft’s relationship with EY became so critical. Khunti agrees. ‘Absolutely. Lyft being in hyper-growth mode…but then having to face the requirements of being a public company meant it found itself in an interesting position. Working with EY at the Speed of Lyft, as we call it, meant they had a successful IPO and built a strong partnership.’ ‘Operating in the public domain with a host of new regulations, laws and expectations from investors was just the tip of the iceberg.’ ‘EY helped them through setting up their internal audit and SOX functions,

‘One major step was to implement Oracle Financial Accounting Hub (FAH)’, he says. This gave Lyft a more scalable accounting system which was auditable, traceable and provides a complete and accurate picture of their financials and the data they need to make the right business decisions. ‘That was really the first step in getting this transformation journey started and it’s providing successful outcomes for our ongoing work together,’ says Khunti.

Learn more

LYFT

How Lyft Is Raising The Stakes In The Supply Chain

Sounds good? But what does that mean? “We are developing and innovating products that address the end-toend value chain of all of our customers' transportation needs. From our core rideshare business to micro-mobility, we offer everything from on-demand vehicles, bikes and scooter solutions, and even vehicle servicing and rentals. Ultimately, our goal is to create products that effectively eliminate any barriers to transportation and make them accessible and enjoyable for everyone.” This may sound like a well-rehearsed mission statement, but behind these words is a culture where providing the best services is deeply engrained. “At its core, we need a supply chain that delivers the best experience to our customers and stakeholders, so we are, in fact, able to focus on how we progress against our mission.” 32

February 2022

“ Mature supply chain organisations play a critical role, not only driving efficiencies to the business through a world class supply base but also becoming trusted advisors, operators and problem solvers for our stakeholders” ZACH GREENBERGER

HEAD OF STRATEGIC BUSINESS DEVELOPMENT & GLOBAL SUPPLY MANAGEMENT, LYFT BUSINESS

LYFT

“This vision really ‘jives’ perfectly with Lyft’s mentality as a broader company. We have an exceptional culture that promotes healthy debate,” he says. Greenberger expands on this and what he means when it comes to setting goals: “I take significant pride in the trust and reputation that we have built with our internal team members, and to me, that defines the power of our team's ability to deliver against super aggressive targets.” “Super Aggressive Targets?” That sounds impressive but what does that mean? Greenberger explains: “Data-driven decision making and focusing on our core competencies is priority thinking. It’s that mentality that is really a supply chain team’s dream, and helps us focus on hitting aggressive goals we set for ourselves.” Greenberger is driven to ensure his teams at Lyft are undeniably ‘best in class’. “They really differentiate themselves from other supply chain teams in the industry,” he says. “Not only does that play out in our results as a supply chain team, but I also see how we support our internal stakeholders has unlocked efficiencies for the business to deliver against the company’s core mission without distraction.” The upshot of this, according to Greenberger, is allowing his people to ‘hyper focus’ on customers and make sure they are being delivered the best products day-to-day.

TITLE: H EAD OF STRATEGIC BUSINESS DEVELOPMENT & GLOBAL SUPPLY MANAGEMENT INDUSTRY: TRANSPORTATION LOCATION: SAN FRANCISCO Zach Greenberger is the Head of Strategic Business Development & Global Supply Management at Lyft, where he leads efforts on Lyft’s growth partnership strategies and delivering value to the end-to-end supply chain. Zach has not only brought a strong procurement background to the role, but he’s also always had a passion for emerging technologies and prioritised a customer-centric approach. Prior to joining Lyft, Zach was integral to the Global Supply Management and Operations team at the Tesla Corporation and before that, he spent 3 years at IBM as a Strategic Sourcing Consultant. With an impressive list of over 20 technology patents under his belt, Zach stays committed to driving loyalty to Lyft's customer base while continuing the company’s mission to improve people’s lives with the world’s best transportation.

EXECUTIVE BIO

2012

Year founded

ZACH GREENBERGER

LYFT

“ It was critical that we took every step we could to effectively run our business, while also building a foundation that would allow them to scale, and this is precisely where Oracle came in” ZACH GREENBERGER

HEAD OF STRATEGIC BUSINESS DEVELOPMENT & GLOBAL SUPPLY MANAGEMENT, LYFT BUSINESS

February 2022

Consulting with Oracle Greenberger says he wants the driving force behind Lyft’s supply chain to always be its ability to influence decision making and truly partner with stakeholders to help drive the best results for Lyft. “Growing businesses survive and prosper by nurturing the right working culture and innovative thinking.” At this point, it is clear Greenberger can’t take this narrative any further until he talks about Oracle. The two businesses ‘hitched a ride’ together some time ago and the journey has become more comfortable and successful with each passing year. “Oracle was the foundational solution that was able to solve our end-to-end needs

LYFT

and really give us the tooling that we needed to scale business operations long term,” says Greenberger. “So, one of the main things that we've really enjoyed by having a very strategic partnership is the ability to discuss and roadmap solutions that historically haven’t been offered in the market.” “Oracle is very focused on helping unlock infrastructure efficiencies for Lyft every day. The partnership overall has been fantastic and I do believe a lot of that is because we see so many similarities within our cultures.” Greenberger says Oracle was a fundamental element of Lyft’s Enterprise Resource Planning (ERP) journey. supplychaindigital.com

LYFT

“ Ultimately, I believe as IoT develops, we are going to see the offerings that we've built become crisper and easier to consume” ZACH GREENBERGER

HEAD OF STRATEGIC BUSINESS DEVELOPMENT & GLOBAL SUPPLY MANAGEMENT, LYFT BUSINESS

“It was critical that we took every step we could to effectively run [the] business, while also building a foundation that would allow it to scale, and this is precisely where Oracle came in.” “Implementing Oracle's ERP infrastructure really unlocked access to data that our finance and supply chain teams needed while simultaneously providing leadership a more holistic view of how we conduct resource planning and execute strategies through our evaluation of the market.’ Focus, focus, focus Zach Greenberger attributes Lyft’s ability to step up several gears to the company’s successful IPO just before the pandemic. He also believes Lyft had a head start over its competitors by originating as a digital platform. supplychaindigital.com

Oracle Native Applications on Oracle Cloud Infrastructure (OCI) Oracle’s cloud native services driven modern application development by using standards-based technologies giving developers a comprehensive, standards-based platform for a building, deploying, and managing applications.

CONSULTING THE ORACLE Lyft Reimagines the Future of Transportation with Oracle “Oracle’s culture is all about innovation - It has been from the beginning. Forty years on and it is still leading the way.” That’s according to Trey Parsons, Group VP at Oracle’s Cloud Infrastructure Group. “Our mission statement is to help people, our clients and partners, see data in new ways, gain valuable insights and discover endless possibilities” says Parsons. Oracle Cloud Infrastructure (OCI) has created a platform for companies to innovate and Oracle’s own culture of innovation translates to the accounts that our Cloud Venture team covers: ‘Unicorn’, cloud native, high growth accounts. Oracle’s four-year relationship with the ride share business, Lyft Inc. is a

perfect example of how this brand of collaboration and partnership works. “Lyft is a ‘cloud first’ company,” says Parsons. “Oracle’s Enterprise Fusion ERP application is one of the best in the business. It is an integrated, scalable suite. Lyft has gone from running hundreds of thousands of transactions to billions. Oracle’s scalable platform played a fundamental role in achieving this.” Lyft’s first collaboration with Oracle was by adopting its Fusion Accounting Hub. This was implemented in a record 4 months. They then successfully implemented Oracle Cloud Applications, Oracle Autonomous Data Warehouse and Oracle Analytics Cloud. When Lyft successfully implemented Oracle Cloud it had the capability to close its books in half the time and to significantly improve relevant processes.

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“ One of the unique things that Lyft provides is building is the fleet management capability to be able to maintain and operate autonomous vehicles in a way that most effectively utilises them, given the daily supply and demand signals in the marketplace” ZACH GREENBERGER

HEAD OF STRATEGIC BUSINESS DEVELOPMENT & GLOBAL SUPPLY MANAGEMENT, LYFT BUSINESS

“The initial public offering has certainly benefited us,” he says. “One of our differentiators in the market is that we are hyper-focused on our mission. We don't get distracted with other things that aren't directly tied to that mission of improving people's lives with the world's best transportation. Every day, we are ruthlessly prioritising projects and products that continue to bring us closer to our goals.” To infinity and beyond So, that was then. We’ve covered now what of the future? No interview with a leading supply chain ‘guy’ is complete these days without drilling down where they see their business going in the future, especially in the Covid age. So, where does Zach Greenberger expect Lyft 40

February 2022

DID YOU KNOW...

LYFT

LYFT MARKET SHARE AND GROWTH SINCE IPO Ride-hailing startup Lyft Inc raised US$2.2bn in its initial public offering on T pricing 30.77 million shares at US$72, the top of its already elevated US$70 to US$72 per share target range.

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LYFT

to lead the charge in innovation, particularly in the Internet of Things (IoT) and artificial intelligence (AI) as driving forces? Greenberger claims Lyft is uniquely placed to take the market into uncharted territory here and can overcome perhaps the biggest obstacle to the expansion of automated transportation: Economics, not technology which will hold the market back. “We've seen a tonne of progress in the acceleration of autonomy within vehicles, right?” he says. “One of the unique things

February 2022

that Lyft provides is the fleet management capability to be able to maintain and operate autonomous vehicles in a way that most effectively utilises them, given the daily supply and demand signals in the marketplace.” “We see that with the vehicles that are operated on the platform today. Even though the vehicles are progressing towards full autonomy, there is also a lingering question on how the economics will pencil out long term.” This is where Greenberger thinks Lyft comes into its own. Creating demand is one

thing. Turning that demand into a viable business is another. The two don’t always travel together. “Not only do we have millions of customers looking to connect to transportation needs daily, but we are also providing the necessary fleet management capabilities that are ultimately required for a vehicle to be able to operate at maximum efficiency in the marketplace.” “This is probably one of the most interesting parts of where we're headed with autonomy, but of course, it's a long road to get there.” Greenberger brings this narrative back down to earth at this point. He’s back to his key skills in supply chains. “These are natural progressions of technologies [referring to AI and IoT] that are going to be incredibly critical to every business' strategy, but I think more specifically as it relates to supply chain,” he says. “I have a very strong conviction that evolving tech such as IoT and AI will play a key role in upskilling supply chain professionals to be more strategic and less transactional than they've historically been. We've seen a transformation on the impact that supply chain organisations can drive to an enterprise over the past decade.” “I believe IoT and AI in the supply chain can give businesses the tools they need to execute against transactional needs without too much intervention. They are critical factors in how we think about long term product offerings - whether that is simply through connectivity, or the role played in autonomous vehicles.” “My mentality on these technologies is that, as they develop, they expand the art of the possible. We’re cultivating what can be offered both in the supply chain and from a broader business innovation perspective.

That includes embedded systems that are providing better telematics to our owned and operated fleet or IoT devices deep within the heart of our supply chain hardware – our vehicles – making it easier to assess and predict optimal vehicle positioning, asset utilisation, more accurate ETA estimates and so on.” “Ultimately, I believe as IoT develops, we are going to see the innovative offerings that we've built, become crisper and easier to consume.”

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SUPPLY CHAIN

February 2022

TAKING STOCK OF

INVENTORY

MANAGEMENT With supply disruption and a shift in customer behaviour, retailers face a tough landscape, meaning smart inventory management has never been more important WRITTEN BY: SEAN ASHCROFT

he supply chain landscape is changing at a greater pace than at any other time in history, and nowhere more than retail. Not only is digital transformation changing the fabric of supply but the way consumers are behaving has also shifted. Thanks to the pandemic, e-commerce, rather than store-bought, is people’s preferred means of shopping. This shift in behaviour was prompted by lockdown, but shows few signs of reverting back to the prepandemic state of affairs. Layered on top of all this, of course, are the ongoing and serious supply chain disruptions. It’s a tough world out there for retailers, and particularly when it comes to managing inventory. supplychaindigital.com

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SUPPLY CHAIN

“ What worked a few years ago might not work as well in today’s purchasing environment” JOELLE DOVE

DIRECTOR OF BUSINESS DEVELOPMENT, DAYMON WORLDWIDE

Let’s stay with the shift from high-street shopping to e-commerce. How are retailers making sure that online customers are getting what they need, when they need it? Joelle Dove, Director of Business Development at Daymon Worldwide says the ones who are coping best are those who understand what is driving sales, and then shift their inventory accordingly. “Retailers have to support online purchases,” she says. “Online consumers may be opting for click and collect, in-store

or home delivery, and it’s important retailers factor-in these details for inventory planning, so they can get goods to consumers when they need them.” Miguel Duarte, Consumer Health Leader at EY, feels that the shift to e-commerce is something of a “data dream” for retailers. He says: “Online, inventory can answer business questions at the most specific level – transactions and stock-keeping unit numbers, for example. Data can also be collected at multiple moments in the journey, and at different times of the day.” Dove feels online inventory data is valuable only if retailers’ systems are up to scratch. “What may have worked a few years ago may not be working as efficiently in today’s purchasing environment,” she says. “The supplychaindigital.com

SUPPLY CHAIN

“People and strong partnerships will always be the key to strong inventory management” JOELLE DOVE

DIRECTOR OF BUSINESS DEVELOPMENT, DAYMON WORLDWIDE

ability of a retailer to accurately report that inventory will dictate the trust consumers have with that retailer.” Duarte agrees, saying the key is whether retailers are ready to invest in leadingedge inventory capabilities. “This is the big question right now. Companies have a unique opportunity to transform inventory planning with a customer-back approach.” But it’s not just the e-commerce boom that has shaken things up - the forces that once drove band loyalty are no longer the same. In the past, branded goods - also known as ‘private brands’ - are what made a retailer unique, and traditionally, they were what 48

February 2022

drove brand loyalty. Now, though, loyalty is being driven by another factor: availability. So how do businesses factor this kind of thing into inventory management? Miguel Duarte, a consumer health leader with EY, feels retailers are only just beginning to recognise the role inventory can play in generating competitive advantages. “Retailers have always used the past as the best explanation of the future,” says Duarte. “They project demand and supply based on existing, limited and aggregated data.” But he says in future, retailers will have to predict buying patterns based on data that will include behavioral factors.

Supply problems killing brand loyalty

“This will deliver a detailed understanding of what’s the best product, inventory level and location and channel, at the right time for the right consumer. It will change the inventory accuracy discussion in a dramatic way.” Joelle Dove agrees that it has never been more important for retailers to guarantee consumers’ favorites are in stock. “Around 86% of consumers bought private brands for Christmas gifts this year, so it’s important retailers meet this demand,” she

Supply problems are having a profound effect on brand loyalty and customer behaviour, research from McKinsey reveals, with product availability the single most important purchasing factor. Just 13% of respondents who faced outof-stock products in the past three month say they waited for an item to come back in stock, the report shows. About 70% switched retailers or brands. For its US Holiday Shopping Report 2021, McKinsey surveyed 2,095 shoppers on their spending habits during the pandemic, and combined this with third-party data showing actual spending behaviour. The twin-prong approach provides a fascinating picture of consumers’ evolving attitudes and behavior. The report shows shoppers’ biggest concern is stock running out, and that this means they are more willing than ever to switch brands or retailers, especially when items are unavailable. McKinsey says overstretched supply chains, inventory shortages, and a lack of available labour all pose significant problems for retailers looking to meet demand and maintain profitability. “For short-term inventory surprises, retailers should prioritise procuring the most essential items,” McKinsey advises. supplychaindigital.com

GAP protects brand loyalty through air freight Fashion brand Gap is just one of many clothing companies to have seen supply problems hit sales. Company’s CEO Sonia Syngal says Q3 saw “acute supply chain headwinds affect our ability to fully meet strong customer demand.” She added that GAP had counteracted supply problems by investing heavily in air freight to service pre-Christmas demand, and so prevent brand loyalty from being eroded. Fashion retailers across the board are experiencing similar problems. Speaking to Vogue Business, Nikki Baird retail innovation VP at retail tech firm Aptos - said: “Everyone is telling the same story: ‘We can't get products’.” In the US, booming consumer demand has put pressure on port and warehouse capacity, while labour shortages have meant fewer drivers on the road and fewer products being delivered in a timely fashion. According to a recent National Retail Federation report, journeys that previously took 25 days are taking up to 60. And 70% of respondents said they have had to add two to three weeks to their supply chain timetables.

February 2022

says. “You’ve got to keep them coming back for more.” One way they can achieve this - other than spend a fortune on air freight - is to be strategic about inventory, says Dove. “Retailers can allow stocks of low-demand or low-margin products to run low, in order to keep traffic drivers in stock 100% of the time.”

SUPPLY CHAIN

The pandemic exposed a major fault in supply chains: a lack of agility. Today, dynamic supply chains able to match supply to demand are vitally important. But how is agility achieved through inventory management? Dove feels an agile inventory strategy is possible only when there is close partnership between retailers and their suppliers. An example of this is the way

“ Retailers can no longer use the past as the best explanation of the future” MIGUEL DUARTE

CONSUMER HEALTH LEADER, EY

Microsoft works in tandem with its retailers on sales-inventory strategy for its Xbox. Microsoft gives point-of-sale data from its biggest customers to retailers, who then combine this with their knowledge of what's on shelf, what's back of house and what's inbound. This combined data allows retailers to use algorithms to predict what will sell, and they are even able to legislate for ecosystem factors, such as weather. “Demand is dynamic and changes constantly, and so communication between retailer and supplier allows them to be in sync, and to minimise costs and maximise availability,” says Dove. Duarte agrees that advanced consumer analytics can drive agility, but only if like Microsoft - retailers “put behaviors, processes, technologies, data banks and algorithms in place that can make those capabilities a reality”. So far, we’ve explored the immediate and near-term challenges being faced by retail inventory managers. But what of the future? What might that hold? “Omnichannel,” says Duarte, without hesitation. “Consumers will navigate shopping in a seamless way on interconnected channels,” he says. “They will be able to make real-time decisions according to their needs and convenience.” He explains that retailers must be ready to provide all manner of information – quantity, supplychaindigital.com

SUPPLY CHAIN

February 2022

“The shift to e-commerce is a data dream for retailers” MIGUEL DUARTE

CONSUMER HEALTH LEADER, EY

price, other products of interest - that improves the omnichannel journey “in a personalised way, and also provides the possibility to buy anything, anytime, anywhere.” Duarte is certain that inventory estimates will soon be driven by predictive analytics, and that inventory location will not be as important as the ability to move inventory in very short time frames.

“It doesn’t really matter where the inventory exists at a particular moment,” he explains. “What matters is how long the item takes to reach the retail point a particular consumer wants, according to their omnichannel journey.” While agreeing that technology will be vital, Dove believes it can take companies only so far if the right people are not in place. “People and strong partnerships will continue to be the key factor in managing strong inventory management,” she says. Having the right people in the right roles to manage inventory, solve problems and communicate with stakeholders is a necessity. “So too are the relationships companies keep with one another. The ability of retailers to collaborate will set them apart in how they navigate challenges within the supply chain.” supplychaindigital.com

DRIVING

DIVERSITY, EQUITY, AND

INCLUSION WRITTEN BY: ELISE LEISE PRODUCED BY: MIKE SADR

February 2022

JPMORGAN CHASE & CO.

JPMorgan Chase & Co. is using the power of its supply chain and lowering the barriers to opportunity for Black, Hispanic, and Latino suppliers

e have a real opportunity through procurement to impact our global communities by generating revenue, creating jobs and driving inclusive growth, says Eric Smith, Global Head of Supplier Assurance Services at JPMorgan Chase. “And an important component of procurement is supplier diversity, one of the most direct ways to address economic inequality.” For almost three decades, the firm has been committed to engaging with diverse suppliers. But, with JPMorgan’s recent US$30bn commitment to help close the racial wealth gap, the firm is focusing on key drivers of wealth that help drive equity, and inclusion — providing additional small business loans, improving access to lowcost savings accounts, financing affordable housing units, and supporting diverse suppliers, including spending US$750mn more with Black, Hispanic and Latino-owned businesses by 2025. Increasing Diverse Supplier Spend by US$6bn Above and beyond its US$30bn commitment, JPMorgan Chase is developing creative approaches to scaling its support for supplier diversity. First, the firm is working with its top suppliers to drive a combined increase in spend with diverse businesses by more than US$6bn, with US$1.2bn going to Black, 56

February 2022

Example of an image caption supplychaindigital.com

JPMORGAN CHASE & CO.

The Gold Standard in Diverse Spend

Hispanic and Latino-owned companies. While the goal is to reach these spend increases over the next three years, the larger purpose is to have other corporations develop sustainable diversity programmes that will generate new revenue for diverse businesses for decades into the future. Meeting a mission to support diversity, equity and inclusion will involve forging new paths and encouraging a shift in the overall culture of the business community. But, Smith and his team understand that one company can’t drive impact alone. It takes a commitment from large and small companies across all industries. Today, if a supplier wants to do business with JPMorgan Chase, it must demonstrate that it has established a diversity, equity and inclusion infrastructure and culture. According to Smith, that means engaging in active conversations with existing suppliers and building diversity, equity and inclusion into the firm’s minimum control 58

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requirements. For example, JPMorgan Chase now asks its suppliers annual diversity, equity, and inclusion questions to ensure that their diversity programmes align with the firm’s values. Diversity is now a finding on the firm’s overall annual assessment that may require remediation and conversation. “Our suppliers need to embrace the need for diversity”, Smith says. “We conduct

ERIC SMITH TITLE: MANAGING DIRECTOR, GLOBAL HEAD OF SUPPLIER ASSURANCE SERVICES INDUSTRY: BANKING

business with suppliers that have similar values, that have a similar culture, that have a similar drive for inclusion.” Cyber-Readiness for Black and Hispanic Suppliers Supplier spend isn’t the only aspect of JPMorgan Chase’s push for greater inclusion. Diverse business owners often need other forms of support. For instance, they may

EXECUTIVE BIO

LOCATION: USA Eric Smith joined JPMorgan Chase & Co. (JPMC) in January 2016 and is currently the Global Head of Supplier Assurance Services (SAS). He is accountable for driving the third-party risk management assessment activities across the entire JPMC global footprint. This includes on-site assessments, virtual assessments, application control assessments, third-party information security, and supplier continuous monitoring. Prior to assuming this role in April 2018, Smith was the Head of Cybersecurity for Consumer and Community Banking (CCB). As part of Smith's responsibilities, he represents the firm and the Financial Services Sector on the Delaware Cybersecurity Advisory Council, and is on the Board of Directors of the Delaware Community Reinvestment Action Council. He also supports JPMC Diversity, Equity and Inclusion (DE&I) programme by leading the DE&I Council for Global Supplier Services, and is a member of JPMC’s LGBT+ Executive Forum.

Born entrepreneur? Made entrepreneur? Finding the right deal. Negotiating the right price. Delivering on time. At EY, we know how choosing the right suppliers can help to achieve strategic goals. Our Environmental Social Governance Service team is creating a diverse ecosystem for diversity-owned businesses to reach their potential and make a difference. © 2022 Ernst & Young LLP. All Rights Reserved. ED None.

Visit ey.com/supplierdiversity

EY Collaborations: Banking on diversity How EY is helping to create a culture that values diversity both inside and outside our doors EY is one of the world’s leading professional services firms and like JP Morgan has a long commitment to increasing diversity in its suppliers, and helping clients do the same. Theresa Harrison, EY’s Environmental Social Governance Services Leader, says the first foundation for EY’s strategy comes from an overall commitment to diversity, equality, and inclusiveness (DEI) within its overall organisation and culture. This is then followed by the leadership within its supply chain services. Diverse supply chains Making sure EY suppliers have aligned goals within their own supply chains is also imperative. To those ends, EY created its own evaluation criteria that examine RFPs, overall ongoing assessments, its vendor management scope, and how organisations can team together to really make a difference and an impact from an ESG perspective. Harrison notes, “We’re giving it high weighting in all of our specific RFPs, as well as our clients and those who we are actually developing from a client perspective on what their strategy should be, how should they evaluate their

supply chain and what things should they look for in setting goals through our climate change and sustainable services practice.” Catering to client demand ESG has become a mandatory exercise across the industry, but it’s complicated and confusing – and making sure the right outcomes prevail is essential, says Michael Giarrusso, whose team works with EY clients to develop their thirdparty risk management framework, processes, methodologies ,and technology enablement. He explains that helping clients learn how to break down barriers in terms of differing methodologies, is often the answer. “We’ve started to consult with our clients on helping to break down those barriers. It’s something that motivates a lot of our people to work with our clients.” Supply Chain Services goals EY considers diversity as part of its DNA as an organisation. Harrison concludes, “Our Supply Chain Services goals are tied to our performance and participation within supplier diversity. It is really important for us to build this diverse ecosystem, not only for EY, but also from a client-serving perspective.”

Learn more

DOUG ROGINSON TITLE: E XECUTIVE DIRECTOR, SUPPLIER RELATIONSHIP MANAGEMENT Doug Roginson, Executive Director and Relationship Manager at JPMorgan Chase, is the Grant Officer and head of racial equity for its Diverse Supplier Grant initiative. The Firm issued a US$5mn grant to certified nonprofit Community Development Financial Institution (CDFI), called Local Initiatives Support Corporation (LISC), which will manage the grant initiative end-to-end. JPMorgan Chase has invited other corporations to voluntarily contribute funds that it will match. The firm’s nearterm aspiration is to grow this grant, increasing the available funds over the next several years. Roginson says meeting industry requirements like cyber security and insurance can be a costly investment for small and diverse businesses, creating a very real barrier to contract opportunities with corporations: “Our primary objective is to increase the number of qualified Black and Hispanic suppliers prepared to serve corporations across multiple industries by helping to eliminate common barriers.”

February 2022

JPMORGAN CHASE & CO.

“WE HAVE A REAL OPPORTUNITY THROUGH PROCUREMENT TO IMPACT OUR GLOBAL COMMUNITIES BY GENERATING REVENUE, CREATING JOBS AND DRIVING INCLUSIVE GROWTH” ERIC SMITH

MANAGING DIRECTOR, GLOBAL HEAD OF SUPPLIER ASSURANCE SERVICES JPMORGAN CHASE & CO.

not have a clear picture of gaps in their technology infrastructure, which could potentially disqualify them for work with financial institutions. Additionally, the coronavirus pandemic highlighted new vulnerabilities that emerged from suppliers having to work remotely. “The pandemic revealed new cybersecurity risks to the firm”, Smith explains. “We realised that many of our suppliers, when forced to send their employees home, weren’t ready to execute their resiliency plans. We saw suppliers being impacted by ransomware. And that reshaped the minimum control requirements we have around cybersecurity.” To assist diverse suppliers in getting their businesses secure and cyber-ready for financial industry clients, JPMorgan Chase recently partnered with TruSight, a risk management utility co-founded by JPMorgan Chase, American Express, Bank of America, Bank of New York Mellon, and Wells Fargo. The firm is using this utility to provide Black- and Hispanic-owned companies with a detailed view of their cybersecurity status. TruSight reviews several best-practice areas across a company’s operations, collects observations about their control environment and generates a report or assessment of their level of security. JPMorgan Chase’s TruSight partnership programme aims to eliminate a common barrier to opportunity with financial industry firms by making cyber-readiness more accessible for diverse suppliers. So far, TruSight has provided 25 diverse suppliers in JPMorgan Chase’s pilot programme with complimentary assessments. These assessments provide each diverse supplier with direct feedback on which cybersecurity controls they must increase to improve their industry positioning. supplychaindigital.com

Transforming Investments, Forwarding Humanity. Learn More

LENOX PARK BUILDS ASSET MANAGER DIVERSITY BY DEMOCRATISING CAPITAL Lenox Park gives asset managers techenabled route to diversity and inclusion with benchmarking insights and collaborative networks that democratise capital Asset managers as a corporate cohort have seen very little diversity over the years, reporting in a study that only 1.4% of total USbased assets under management is managed by diverse-owned firms, and patience with such a glaring disparity is running out. Lenox Park Solutions lets asset allocators assess the diversity, equity, and inclusion (DEI) impact of their capital. The platform has over 2,200 registered organisations, 1,200 asset managers, and represents US$6 trillion in assets under management. “If you ask the average allocator of capital ‘How did you find your best managers?’” says Founder and CEO Jason Lamin, “The likelihood is they found that manager through their peer group.” So, Lamin made an unbiased solution for potential partners to find each other. Part of that solution is collaborative dealmaking platform RoundTables. Lamin says “RoundTables was built on a premise that like-minded decision-makers tend to

collaborate with each other and prefer to knowledge-share among their peers. So we created a tech-enabled platform that empowers those individuals to collaborate efficiently in a safe space.” DRIVING DEI THROUGH KEY PARTNERSHIPS One key partner has been JPMorgan Chase, which joined as a Founding Member as part of its own DEI initiatives. “We are generating value for them,” says Chief Operating Officer Amber Kizilbash. “But we are also leveraging the broad spectrum of services and partnerships they can provide to a company like ours, at this phase in our growth cycle; and the phases ahead of us.” For Lenox Park, the intentionality of seeking out diversity will be crucial to future business. “At the U.S. National level there’s about US$70 trillion of wealth that is going to be transferred to the next generation by 2045,” says Kizilbash. “When you think about the next generation of leaders that are coming from this diverse millennial economic power, research suggests no other generation has been more focused on impact, and inclusion is one of the single most important values for them.”

EXPLORE MORE

JPMORGAN CHASE & CO.

“WHEN IT COMES TO SUPPLIER DIVERSITY, THE BEST PRACTICE IS TO PRIORITISE IT” ERIC SMITH

MANAGING DIRECTOR, GLOBAL HEAD OF SUPPLIER ASSURANCE SERVICES JPMORGAN CHASE & CO.

February 2022

After these suppliers receive their TruSight assessment results, they have an opportunity to work with several consulting organisations, including Deloitte, Ernst & Young, and Protiviti — to navigate steps towards remediation. This is a service they can receive free-of-charge. Remediation complete, diverse suppliers are more prepared to take contract opportunities with JPMorgan Chase as well as other financial institutions. However, this programme provides additional benefits to participants that go

JPMORGAN CHASE & CO.

beyond generating reports and remediation plans. It surrounds the supplier with a network of new relationships — both with other diverse business owners, and also with all of TruSight’s founding banks. Throughout the programme, cohort members are given the opportunity to present their capabilities to several financial institutions they can potentially work with. Though JPMorgan Chase’s TruSight cybersecurity programme may expand in the future, Smith's division is currently set on

PETER VAN ALLSBURG TITLE: H EAD OF DIVERSE SUPPLIER SOURCING Peter Van Allsburg is the Head of Diverse Supplier Sourcing at JPMorgan Chase and works with sourcing specialists to align diverse suppliers against opportunities. As part of its Racial Equity Commitment, the firm is committed to spending an extra US$750mn over 5 years with Black- and Hispanic-owned suppliers. Van Allsburg’s team works with Category Sourcing and business stakeholders to find opportunities and create go-to-market strategies. “We take a category-aligned strategy when matching prospective, diverse suppliers with opportunities,” says Van Allsburg. “In partnership with our Global Supplier Diversity team, we conduct significant supplier due diligence up-front to ensure that when diverse firms are being positioned for opportunities, there is a strong chance of success. We position diverse firms with intent to partner with them. We have support from our senior stakeholders and are transparent about our successes as well as when we may need assistance.”

supplychaindigital.com

WWW.OVERLANDTANDBERG.COM

Empowering Organizations to Securely Manage and Protect Their Digital Assets • Leading global technology solution provider for 40+ years • Customers include global Fortune 500, Enterprise,

SME and SMBs in 100+ countries • Data Management and Security Solutions: • Hybrid Cloud Infrastructure, Business Continuity, Data Protection • Crypto-currency, IT Integration and Manufacturing

Tackling diversity through data and technology Overland-Tandberg is a global technology company serving over 100 countries. We spoke to its Chairman and CEO, Eric Kelly. As Chairman and CEO, Eric Kelly takes a dynamic role in leading the company in its global growth strategy. This has involved an important collaboration with one of the world’s leading banking corporations, JP Morgan Chase, that is expanding the company’s mandate of improving global diversity in the corporate and technology sectors. Kelly says Overland-Tandberg was on the lookout for a partnership with a bank to fit the company’s growing, global footprint. “We actually started off discussing the banking relationship, and then it quickly moved into a symbiotic partnership—they became our corporate sponsor. The collaboration has gained momentum and velocity, with Overland-Tandberg carrying out business with JPMC on the supplier diversity side, working with their chief procurement officer and their supplier diversity group. Established trust and success Kelly points to Overland-Tandberg’s long history when he speaks about the company’s robust reputation in the marketplace. As one of the longest

established black-owned global technology companies, it has built up a respected position. Our vision of “Global Intellect and Inclusiveness” is the ethos that drives the organization – this vision allows us to have a comprehensive understanding of diversity and inclusion. Diversity and data challenges Multinationals and foreign companies face the same challenges as US companies when trying to find black-owned businesses, says Kelly, it comes down to a lack of access, availability and awareness. “There are organizations here in the US that showcase specifically black-owned businesses, and diverse companies,” he elaborates. “But I think that from a multinational standpoint of foreign companies, it’s one of access and availability and awareness. How do you find and develop partnerships at scale with diverse companies when there’s no technology platform that’s designed to provide that information?” Kelly continues, “The world is digital and getting smaller. If you’re a US company you’re directly or indirectly doing business globally. This challenge has been constant, which led me to leveraging my history in technology to focus on creating a platform that could align these resources across industry and essentially play a key role in closing the digital and diversity divide.” It’s called Bridge 2 Technologies. Learn more

INCREASING SPEND ON DIVERSE SUPPLIERS: THE STATS • US$750mn in new spend with Black, Hispanic, and Latino suppliers – part of commitment to spend US$30bn by the end of 2025 to advance economic growth and opportunity • Top suppliers to JPMorgan Chase committed to spend US$6bn with diverse suppliers — US$1.2bn specifically for Black Hispanic and Latino suppliers

February 2022

“WHEN WE ARE FOCUSED

JPMORGAN CHASE & CO.

AND INTENTIONAL, THE PROCUREMENT ORGANIZATION CAN SERVE AS A VERY EFFECTIVE TOOL IN FURTHERING DIVERSITY, EQUITY AND INCLUSION” ERIC SMITH

MANAGING DIRECTOR, GLOBAL HEAD OF SUPPLIER ASSURANCE SERVICES JPMORGAN CHASE & CO.

championing its initial cohort of 25 Black and Hispanic suppliers. 60% of the way through the first set of assessments, JPMorgan Chase is seeing the results it expected: some suppliers are wellpositioned to start working with financial institutions; others may benefit from working with a top consulting firm. Breaking Down Barriers to Inclusion Access to capital is a common challenge faced by diverse businesses, so meeting industry requirements like cyber security, insurance, and bonding is often costprohibitive. Satisfying these requirements can cost a typical small business over US$100,000, creating another barrier to entry into the financial services industry. To address this issue, the firm is launching a grant programme for Black, Hispanic and Latino-owned companies to provide financial assistance in meeting minimum requirements for doing business with large corporations. At the start of this new year, Eric will be focused on supporting the initial supplier cohort as they complete the assessment and consulting process. The TruSight programme aims to act as a stepping stone for diverse

suppliers to gain more contracting options within the financial services industry. “The programme is about opening doors for diverse suppliers,” Smith explains. “About eliminating barriers to opportunity.” The Future of DEI in Finance Eric’s division aims to lead the path forward. “We all know that we need to do better in diversity, equity, and inclusion," he says. Financial institutions have realised that they need to expand their view of services and contractors, companies and businesses— and that the old ways will need to change for them to thrive in the future. “Diversity should be ingrained in the culture of not just the procurement organisation, but the company as a whole," Smith says. “When we are focused and intentional, the procurement organisation can serve as a very effective tool in furthering diversity, equity and inclusion throughout the firm and the wider business community. When it comes to supplier diversity, the best practice is to prioritise it”.

supplychaindigital.com

HOW GLOBAL LOGISTICS CHIEFS ARE OVERCOMING A WORLD OF PAIN Today’s global logistics challenges have never been more serious, and businesses of all sizes are turning to increasingly clever strategies to keep supply chains moving WRITTEN BY: SEAN ASHCROFT

lobal logistics has always been a balancing act between long-term forward planning and on-the-ground problem resolution, and the COVID-19 pandemic has not changed this. But what it has done is amplified the logistical challenges businesses are facing - many times over. Port congestion, labour shortages and spiralling freight costs are serious problems that have been layered on top of those that global supply chains have always faced, such as political instability, extreme weather events and major traffic incidents.

SO IN TERMS OF GLOBAL LOGISTICS, HOW ARE BUSINESSES RESPONDING TO THIS BLIZZARD OF CHALLENGES? On a strategic level, thanks to the pandemic, many are seeking to mitigate risk through shrinking their supply chain, making it less global and more regional (near-shoring), domestic (reshoring) or a combination of the two. According to a McKinsey survey into ways COVID-19 has shaped the supply chain, different industries have responded in distinct ways. Healthcare players stand out as resilience leaders, with 60% of

February 2022

LOGISTICS

“ Anticipating both spikes in demand and container shortages is key if businesses aren’t to be left wanting at crucial moments” ROB WRIGHT

EXECUTIVE DIRECTOR, SCALA

supplychaindigital.com

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.

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LOGISTICS

“ Anecdotally, it appears smaller firms are feeling the significant brunt of container price increases” ROB WRIGHT

EXECUTIVE DIRECTOR, SCALA

respondents in this sector saying they have regionalised their supply chains. Although the figure is lower for other sectors, including automotive, aerospace and defence, almost 90% of respondents said they expect to pursue some degree of regionalisation over the next three years. Samsung the poster child of reshoring Samsung US is the poster child of reshoring, having announced a new US$17bn microchip manufacturing plant in Texas,

part of its long-term move to nullify any future shortages of microprocessors. The logic is sound enough: reduce the scope of the supply chain, reduce the logistical challenges. But reshoring is something of a nuclear option when it comes to mitigating risk. There are other approaches - such as that of Microsoft. In an average year, Microsoft ships between 60 and 70 million units into 122 countries. Everything is outsourced, including manufacturing and distribution centres, meaning it has to manage in excess of 250 tier-one, -two, and three suppliers in around 40 territories. It’s a multifaceted supply chain, across different channels, including not only enterprise but also big-box retail. supplychaindigital.com

LOGISTICS

“ The beauty of small tech companies is you can talk on a Friday afternoon and they’ll have a proof of concept on a Tuesday morning” DAVID WARRICK

GENERAL MANAGER, MICROSOFT GLOBAL SUPPLY CHAIN

Over the past seven years Microsoft has been undergoing a digital transformation. “It all started with an awareness statement, not a mission statement,” Microsoft global supply chain GM David Warrick told Procurement & Supply Chain Live in September 2021.That statement was: that the supply chains of the future will have the interdependency, interconnectedness and the intelligence to predict disruption before it occurs. Which is pretty much the silver bullet of global logistics. 76

February 2022

Logistics helped by ‘beautiful ecosystem’ of solutions Warrick maintains that this goal is not as ambitious as may first appear, thanks to the “beautiful ecosystem of bespoke solutions that target key problems within the supply chain.” He added: “We've partnered with some incredibly smart companies with wonderful solutions, and have evolved our supply chain at an incredible rate. It’s all about visibility and automation.”

Scope 3 emissions: A big challenge for logistics

An example of this is Microsoft’s dynamic transportation management system. (TMS). Pre-digitalisation, the company had seven TMS systems, none of which talked to each other. So Microsoft partnered with a third-party logistic company, CH Robinson. “We told them we would still negotiate freight rates with FedEx, UPS, AMCO, Maersk and so on, but that we’d hand over the rate cards to them and have them manage the TMS, end to end.”

A big challenge in global logistics is the need to better map and measure Scope 3 emissions, which are indirect emissions generated by a business through sources outside its control. McKinsey research suggests as much as 90% of businesses’ emissions are generated throughout their supply networks. Rob Wright, executive director of supply chain management services firm, SCALA, says that despite this, most businesses currently have no plans in place to measure the environmental impact of their value chain. Wright says technology is the solution here, because it allows businesses to map their carbon footprint with far greater accuracy than ever before. He advises companies to use tools such as Compare Your Footprint (CYF). This is a free carbon-footprint calculator created by a team of sustainability consultants. “This allows businesses not only to measure their carbon footprint but also to benchmark it against competitors and similar businesses,” says Wright. He adds: “CYF allows organisations to gain an accurate reading of where they stand from a sustainability standpoint, as well as what they should target in future.” supplychaindigital.com

LOGISTICS

The result was a product called Navisphere Vision. “We're now tracking ships using FleetMonitor, a third-party aggregator,” says Warrick. “We use FlightAware for airlines and Bing Maps for road traffic, and can use all this information to predict estimated times of arrival for goods.” This, he says, allows Microsoft’s logistics teams to focus on cargo that is late and that will impact customers, all of whom are informed of delays. Smaller firms get buffeted more by disruption But of course, global logistics isn’t just the concern of multinational leviathans such as Samsung and Microsoft, with mountains

Global logistics: market value According to German market and consumer data company, Statista, the global logistics industry was worth around US$6.48trn in 2020. It expects that by 2024 this figure will exceed US$7.7trn, as the effects of the global pandemic subside. Statista says that in 2020, the most valuable logistics market was the Asia-Pacific region (worth roughly US$3.9trn ). The second most valuable was North America (US$2trn ).It says Asia-Pacific is the logistics capital of the world mostly because it supplies more trade goods than any other region, thanks to western companies basing much of their manufacturing capacity there. The region also has the world’s largest ports, many of which are in China. 78

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of cash to throw at logistics challenges. Countless small manufacturing and retail businesses also rely on the global shipments of parts and products. Indeed, in many ways, the logistical problems facing such companies are even more severe, as not only do many lack the finances to adopt Industry 4.0 and 5.0 solutions, but they also get buffeted by even small disruptions to supply. Driver shortages, for example, which have affected the UK, swathes of Europe and the US.

Rob Wright, executive director of SCALA a provider of management services for the supply chain and logistics sector - says the companies coping best with driver shortages are those with either well established in-house logistics functions, or those with long-term fixed contractual arrangements with logistics providers. Wright says the companies who have been hardest hit are those that are reliant on spotmarket transport, or who use temporary labour. “It’s a seller’s market,” he says.

“ Our digital transformation began not with a mission statement, but an awareness statement” DAVID WARRICK

GENERAL MANAGER, MICROSOFT GLOBAL SUPPLY CHAIN

supplychaindigital.com

February 2022

LOGISTICS

Collaboration the key on many challenges Wright’s advice to smaller businesses is to collaborate with competitors on road transport. “Organisations need to work together across the supply chain,” he says. “Manufacturers should share their supply chain assets for mutual benefit. In our experience, very often a company’s best collaborative partner is its competitor, because they face the same challenges, share the same customers and often the same suppliers.” Wright says collaboration can also help smaller companies cope with problems concerning container shipping, which is currently seeing global delays and inflation on an unprecedented scale. The cost of shipping goods between China and the UK has risen threefold in the past year alone, for example. And this is no short-term headache; many experts predict these problems will run well into 2023. “In terms of what businesses can do on containers, shipping in bulk is prudent because it increases volume per shipment,” advises Wright. “Businesses might even think about sharing shipping deliveries with similar or partner businesses, allowing goods to be shipped in fewer journeys.” In some sectors, Wright says, companies are moving from sea freight to air freight, which although more expensive, is much faster.“It’s mainly companies with high-value and lowervolume goods,” he explains. “Air freight results in guaranteed availability and inventory. So for smaller businesses it seems that it’s very much a case of ‘stronger together than apart’. But large or small, companies are having to plot a strategically smart path through the onerous global logistical challenges they face. Anything less, and they know they might not emerge from the other side. supplychaindigital.com

February 2022

ALVOTECH

BROADENING

ACCESS TO

BIOLOGIC

MEDICINES WRITTEN BY: SEAN ASHCROFT

PRODUCED BY: TOM LIVERMORE

supplychaindigital.com

ALVOTECH

From insulin to vaccines and cancer therapies, biologic medicines have a huge impact on healthcare, and it’s Alvotech’s mission to make such medicines more affordable and more widely available

ost businesses have a mission, but not all missions are equal. Alvotech’s mission is to improve patient lives through broadened access to biosimilars. The company was founded in Iceland in 2013 and it employs an integrated business model, from research and development (R&D) through production. Alvotech is fully integrated and fully focused on biosimilars. For the non-biochemists among us, let’s turn to an expert to learn what a biosimilar is: Gerhard Helmerich, Head of Global Supply Chain at Alvotech. “To understand biosimilars you first have to understand biologic medicines. These are generally large, complex molecules that are produced through biotechnology in a living system, such as a microorganism, plant or animal cell.” These medicines differ from smallmolecule drugs, which are chemically synthesised. Examples of small molecule drugs include typical ‘medicine cabinet’ treatments, such as aspirin and paracetamol. “Biosimilars are more difficult to characterise than small molecule drugs,” says Helmerich, “because of inherent variations present in biological products.” This natural variation is why it is not possible to create an exact copy, or a generic version, of a biologic, as is the case for smallmolecule drugs. But what can be created is a highly similar version of a licensed biologic

February 2022

Example of an image caption supplychaindigital.com

ALVOTECH

Broadening access to biologic medicines that save

with no clinically meaningful differences in terms of safety and effectiveness from the reference product. Biosimilar drugs have a pivotal role to play in public health, as they offer additional treatment options that are typically more affordable than their branded counterparts. This is positive news for key therapeutic areas such as autoimmune diseases and cancer, which already have approved biosimilars on the market. Little wonder, then, that the global biosimilar market was valued at US$30bn in 2020, and that it is expected to grow to approximately US$80bn over the next six years. It’s one thing for Alvotech to aim to improve patient lives through broadened access to biosimilars, but how exactly can the company achieve this? “By making sound, strategic decisions,” explains Helmerich. One such decision includes Alvotech’s commercial strategy. Early in its life, Alvotech was debating if it should seek a global partner or go with ‘local champions’. 86

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“Ultimately, we chose a local approach,” says Helmerich. “Since that decision was made, we have partnered with top firms who are leaders in their markets. Being able to rely on the scale and expertise of our partners allows us to focus on what we do best development and manufacturing.” Another important decision is Alvotech’s differentiated portfolio. “Each market is

GERHARD HELMERICH TITLE: HEAD OF GLOBAL SUPPLY CHAIN INDUSTRY: BIOSIMILAR MEDICINES LOCATION: ICELAND

unique and requires a different approach,” says Helmerich. “We believe a company can differentiate through its portfolio strategy.” The third strategy has been to fully integrate, from R&D to manufacturing. To date, large pharmaceutical companies have dominated the biosimilar space in part because of their scale and capital. Alvotech is fully committed to biosimilars and has

EXECUTIVE BIO

Gerhard Helmerich is an accomplished supply chain executive with over 17 years of experience in the pharmaceutical industry directing global, crossfunctional teams, leading complex projects, and delivering high impact initiatives across commercial supply chain and various technical development functions. At Alvotech, Gerhard Helmerich leads Global Supply Chain, overseeing supply logistics for multiple commercial and development products. His mandate also includes site operations, warehouse activities, procurement of materials and devices, external supply operations, integrated business planning and life cycle management activities. Gerhard Helmerich holds a PhD in Chemistry from the Technical University in Munich, Germany.

Make the move to networked manufacturing Make theandmove toglobal Access a reliable harmonized supply chain for single-use products networked manufacturing With the continued adoption of single-use technologies, specifically in cGMP

Accessconsistent a reliable global manufacturing, product supply and and qualityharmonized are very important. Our global network of single-use manufacturing sites has expanded and is supply chain for single-use harmonized to provide equivalent processes and procedures that products produce products of consistent quality, form, fit, and function. With the continued adoption ofabout single-use technologies, specifically in cGMP Reach out to us today to learn the value of multisite qualification to manufacturing, consistent product supply and quality are very important. take advantage of the benefits of networked manufacturing. Our global network of single-use manufacturing sites has expanded and is harmonized to provide equivalent processes and procedures that produce products of consistent quality, form, fit, and function.

more ReachLearn out to us todayat to thermofisher.com/flexiblecontainment learn about the value of multisite qualification to take advantage of the benefits of networked manufacturing.

Learn more at thermofisher.com/flexiblecontainment

For Research Use or Further Manufacturing. Not for diagnostic use or direct administration into humans or animals. © 2021 Thermo Fisher Scientific Inc. All rights reserved. All trademarks are the property of Thermo Fisher Scientific and its subsidiaries unless otherwise specified. EXT1755 1121

Thermo Fisher: Supplying a Healthier, Cleaner, Safer World Thermo Fisher has transformed its supply chain to emerge more agile, resilient and collaborative from a period of acute industrywide disruption With a mission to “make the world healthier, cleaner and safer”, Thermo Fisher is a key supplier to the life sciences industry and a close collaborator with the field’s leading organisations. Christine Callahan, Vice President of Global Supply Chain, Life Science Solutions, who joined Thermo Fisher amid the early waves of COVID-19, is spearheading a transformation of the firm’s supply chain. “We are moving away from PO-based and transactional relationships to true partnerships, true collaboration with more transparency,” says Callahan. Pharmaceutical innovator Alvotech is a key customer and close partner that epitomises this new mindset for Thermo Fisher, says Callahan: “Alvotech is a very key customer and partner for us, and we want to continue to earn their business and grow with them as they grow.” During the turbulence caused not just by COVID-19, but by extreme weather and geopolitical uncertainty, “there have been some real challenges,” Callahan adds. “It has not been simple and straightforward, so we’ve been working extremely collaboratively with Alvotech.

I’m really proud of our teams’ commitment to them, and our urgency with solving their problems,” she says. “And given that they’re such a great partner, innovating and collaborating with someone so receptive and supportive helps the overall synergy in the solution.” Lessons learned and innovation borne out of the pandemic have galvanised a more resilient and agile Thermo Fisher. It is an organisation that has been strengthened by solving problems during this period of acute demand, and which will emerge stronger for it. Callahan says it has been the “silver lining” of the past two years. Thermo Fisher will continue to innovate to meet the growing demands of its partners. “We’re undergoing a real paradigm shift in the thinking, and we’ve always been conscious of supply chain continuity and resiliency,” Callahan says. “In this space, you have to be caring about that in a growth environment, but most importantly, our end customers are patients and we need to be there for them. We can’t ever let our customers down.”

Learn more

ALVOTECH

invested in a scale that it believes will be necessary for the next ten years of its life cycle. These three strategies give Alvotech the focus, scale and speed needed to achieve its mission. It’s been quite a journey for Alvotech since it was founded in Reykjavik, Iceland by current Chairman, Róbert Wessman. Alvotech isn’t alone in its journey; Helmerich, too, has had an eventful and varied career. He first studied food chemistry at the Technical University of Munich, later also completing a PhD in chemistry there. “I have been overseeing the global supply chain at Alvotech for almost a year now,” says Helmerich. “I am responsible for supply logistics across multiple commercial and development products including site operations, warehouse activities, procurement, external supply operations, integrated business planning and life cycle management activities.” Beyond Alvotech, he has 17 years of experience in the pharmaceutical industry, most recently at Novartis Pharma in Basel, Switzerland. Although Alvotech is based in Iceland, Helmerich himself is in Zürich, and travels frequently to the company’s headquarters in Reykjavik. “I enjoy it every time I go there,” he says. “It’s a beautiful country with wonderful people.” Helmerich says that in the year he has been with Alvotech he’s witnessed “great leadership, energised teams and the passion of an entire organisation working towards the same mission”. “I could feel how proud people are to work for Alvotech from day one,” he adds, continuing: “We are passionate people, working to bring more affordable and accessible biologic medicines to patients around the world, and this purpose drives our daily work. We have a strong 90

February 2022

ALVOTECH Alvotech has its HQ in Reykjavik, Iceland, a location that plays a key part in the company’s sustainability strategy, says Gerhard Helmerich, Head of Global Supply Chain at Alvotech. “Environmental footprint is very important to us and being in Iceland means we have access to sustainable energy resources. Nearly all the energy produced in Iceland comes from renewable sources, either hydro, geothermal or wind.” There are other benefits to being based in Iceland. The company’s founder, Róbert Wessman, is Icelandic, and he recognized the potential for locating a biopharmaceutical in his homeland.Iceland has a flourishing biotech industry and a strong talent pool of pharmaceutical specialists. The facility is based in the University Science Park in Reykjavik, and there is close collaboration with the University of Iceland. “Iceland is the cornerstone in our path to success,” says Gerhard Helmerich. “Being here helps attract talent to the company.” It also helps that Iceland is right in the middle of global time zones, making it easier for Alvotech’s multinational team and partners to communicate.

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World’s First Virus Removal Filter Eﬃcient global network enables reliable supply chain and excellent customer support

ALVOTECH

“ Iceland is the cornerstone in our path to success,” says Gerhard Helmerich. Being here helps attract talent to the company” GERHARD HELMERICH

HEAD OF GLOBAL SUPPLY CHAIN, ALVOTECH

emphasis on excellence, collaboration and ingenuity.” Helmerich says he’s also been impressed by how progressive and diverse Alvotech is. “We work in a very diverse environment. It’s been great seeing how inclusive the culture is. These characteristics will get us through any challenging times. I strongly believe diversity generates stronger strategy and better risk management, debates and outcomes.”

It may have been a rewarding ten months for Helmerich, but it’s also been turbulent, as it has for most businesses in biotech and beyond. “We’ve faced supply chain problems, just as every other pharmaceutical company has,” says Helmerich. “Manufacturing and distribution are perhaps the most obvious problems of the past two years, and most disruptions on materials and consumables have come with short notice.” He adds: “Although the past two years have not been easy, we’ve taken this as an opportunity to rethink our ways of working and to increase our supply chain resilience. Unexpected delivery shortages gave us a clear view on the areas we needed to focus on.” Helmerich believes all problems end up being resolved in the same way - by people. “Everything always comes down to people supplychaindigital.com

Proud to partner with Alvotech Purolite is the world leader in resin-based separation, purification and extraction technology

Discover more at www.purolite.com

February 2022

ALVOTECH

“ We have a strong supplier network and are ready and excited to transition to the commercial phase.” GERHARD HELMERICH

HEAD OF GLOBAL SUPPLY CHAIN, ALVOTECH

in the end. We got through it because our people worked together to find the best way of collaborating with suppliers.” Among its suppliers are Thermo Fisher, Purolite and Asahi Kasei Bioprocess. “They have been supporting us since the start of our journey and are key suppliers to Alvotech,” says Helmerich. “Thermo Fisher supplies a variety of different materials and equipment, Purolite is one of our resin

suppliers and Asahi Kasei delivers different kinds of filters.” “We are very thankful to have them on board, supporting our mission. All our partners go the extra mile to address the needs we have. They think out of the box, are very proactive and focused on continuous improvement.” As well as supportive suppliers, Helmerich says he has an outstanding supply chain team, “eager to solve problems and meet challenges”. “I can say we are grateful for the pandemic experience because it’s allowed us to strengthen our relationships with many key partners, who of course have also been facing their own challenges. Extraordinary commitment and support from both sides is what made the difference.” Although Alvotech has biosimilar candidates under development and regulatory review, so far it has none on the market. So, is its supply chain ready to swing into action when needed? “Absolutely,” says Helmerich. “Throughout 2021 we finalised the blueprint for our supply chain organisation. We have a strong supplier network and are ready and excited to transition to the commercial phase.” The company’s product pipeline contains several biosimilars aimed at treating a mix of autoimmune, oncology and inflammatory conditions. The most advanced asset in its pipeline is AVT02 - a proposed biosimilar for high-concentration adalimumab. Adalimumab is an anti-TNF drug that is sold under the brand name Humira®. In November 2021, AVT02 was approved by the European Medicines Agency. The company’s other disclosed biosimilar candidates include additional targets in immunology, ophthalmology, oncology and bone disease, specifically Stelara® (ustekinumab) and Simponi®/Simponi supplychaindigital.com

February 2022

ALVOTECH

“ I believe diversity generates stronger strategy and better risk management, debates, and outcomes” GERHARD HELMERICH

HEAD OF GLOBAL SUPPLY CHAIN, ALVOTECH

ARIA® (golimumab), Eylea® (aflibercept) and Prolia®/Xgeva® (denosumab). “We have commercialisation agreements with multiple regional partners and have plans to market our biosimilars in at least 90 countries,” says Helmerich. So, what about the future? Where will the company be in five years’ time? “Our vision is to build a leading global biopharmaceutical company,” says Helmerich. “By then we will hopefully have multiple products on the market through our partnerships and will be closer to bringing a robust pipeline of affordable biosimilars to patients around the world.” Helmerich says Alvotech will continue to pursue its diverse pipeline of biosimilar programmes. “Our integrated platform and network of world-class partners will allow us to reach patients with more affordable biosimilars, while positively impacting the global healthcare ecosystem.” He says that when the company succeeds in increasing access to these important biologic medicines for patients “then all our efforts will have been worth it”.

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IINNCC REEAA R DDIIVVE SSIINN G ERRSS G IITTYYA A NNDD

N I N I N N I N N I O A I O A I S H S H C U C U L Y L C Y L C L IINN SUUPPPP S E E H H T T

February 2022

DIVERSITY AND INCLUSION

There is room for greater diversity and inclusion in the supply chain sector. Supply Chain spoke to two key women in the industry about their experiences on the issue

WRITTEN BY: HELEN ADAMS

Sarah Barnes-Humphrey co-founder, Shipz

Divya Demato CEO and co-founder, GoodOps

n 2021, many businesses made popularist vows to become more diverse. As an international industry, supply chain is one sector that offers great potential for change. Supply Chain spoke to two prominent women in the business. Here, they explain their roles, their experiences and their hopes for a diverse and inclusive future in the sector. Sarah Barnes-Humphrey, who is based in Ontario, Canada, has been in supply chain and logistics her whole career. She is the co-founder of Shipz, a company that brings shippers and forwarders together and streamlines the quoting, booking, and shipment process. She is also the co-founder of Blended, a nonprofit organisation whose mission is further diversity, equity and inclusion (DEI) goals. As well as this, she hosts two popular podcasts one for Blended and another called Let’s Talk Supply Chain. “The Blended podcast started after the success of our Women in Supply Chain series,” says Barnes-Humphries. “I knew the conversation needed to be bigger but I didn’t want to just be another podcast.” Divya Demato is the CEO & Co-Founder of supply chain and sustainability consultancy GoodOps, based in San Francisco. “I bring 19 years of experience in the supply chain stratosphere, across food, fashion, and home goods. I've worked as a buyer and operator, so I understand how procurement and sourcing works. supplychaindigital.com

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.

DIVERSITY AND INCLUSION

“ If you want to work with a diverse group of people, what could be better than the supply chain?” DIVYA DEMATO

CEO AND CO-FOUNDER, GoodOps

Divya has worked with Walmart, Danone, Martin Brower/McDonald’s, Madison Reed and Pricesmart. At GoodOps, she partners with senior leaders to scale responsible operations. In 2021, she was named one of the Top 100 Women in Supply Chain globally by Supply Chain Digital. 2022 challenges to diversity With decades of experience, both women have seen the consequences of a lack of diversity and resistance to inclusion.

“There are a number of challenges,” says Barnes-Humphrey, “and to be fair it’s not just in the supply chain industry.” She adds: “One is that DEI is not only gender based - it is about accepting all and being open to all perspectives. Second is that we really need to see representation of everyone at all levels of the supply chain. One way we can do that is by sponsoring diverse speakers and audience members, as well as sponsoring minority-owned business to have the same access to promotional activities. “Speaking as a woman of colour, there's very few such women in the sector”, says Demato. “When I started, there were gender-specific positions. You saw a lot of female buyers, but not necessarily a lot of females in logistics, transportation or in the warehouse. “The head of the team or the department was usually a man. In terms of diversity, I think women have an opportunity to innovate and bring their knowledge into the supply chain space.” supplychaindigital.com

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Barnes-Humphreys says she is not suggesting it's only women who care about sustainability “because that's not true”. But she does feel the way women think can benefit the supply chain. “Women are more likely to ask about the impact of the work they are doing beyond just time and transit and the cost of moving products. They are more likely to ask how their work is connected to the entire supply chain.” Demato believes there can never be enough diversification in any work environment. “We know that more-diverse workforces perform better,” she says. “I think that in terms of inclusion it's really about power, right? Do you have the ability to make the changes that you want? I was very fortunate to have amazing mentors and bosses that really shepherded me along the way.” Demato can remember instances in the pre-LinkedIn business world where her presence as an Indian woman surprised people. “I definitely know that it was sometimes shocking for people to meet me, because we might communicate over email and then we’d meet in person and they would be surprised that I was an Indian woman. Nowadays, you can search online and have a sense of who you're talking to.” So in 2022, what hurdles does Demato feel people of colour deal with in the supply chain? “To begin with,” she says, “the phrase ‘people of colour’ - that's a massive group of people, so who are we talking about exactly?” She adds: “There's racism and bias in general but I would bring it down to education. That's something I think is really interesting about supply chain. For example, do you need a college degree to work in 102

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the supply chain? Not necessarily. So much is based on experience. And this isn’t just about people of colour. There are a lot of socio-economic challenges.” So what opposition do women meet in the industry, exactly? “It depends on the environment,” says Barnes-Humphrey. “Women have many more allies than we used to - allies who stand up to conference organisers and

refuse to be on a panel that is not diverse. I am hoping this will expand into not just being gender focused. Women do still face very male-dominated thinking in some aspects of the industry. It is very frustrating that we are still dealing with this kind of thinking.” As for Demato, she feels the brand of workplace opposition many women face is people doubting their ability. She says she has had colleagues and associates

“ With inclusion, it's about power. Can you make the changes that you want?” DIVYA DEMATO

CEO AND CO-FOUNDER, SHIPZ

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“ The more we know the better we can be. That’s the power of communication and data” SARAH BARNES-HUMPHREY CO-FOUNDER, GoodOps

questioning her position, and asking how much experience she really has. “I was lucky to join such big-name companies early in my career,” she admits. “That gave me a lot of credibility.” Demato also points out that just because hers is a numbers-driven type of job “performance metrics, KPIs and so on” - that does not mean the job is not for women. Quite the reverse, she insists. “I'd say it’s an exciting space to get into, if you're someone who likes direct assessment of your performance.” Learning life lessons in supply chain Anyone who has earned a degree and been fortunate enough to go straight into that career field knows that workplace reality rarely follows textbook theory. Most of what we learn in our careers is on the job. So what have Demato and BarnesHumphrey learned? “I think it's understanding there is an impact to everything we create and make. The reason I'm focusing on the sustainability

side of supply chain is based on that lesson. These things all come at a cost, whether it's to the people or to the planet”, says Demato. She adds: “The supply chain gives jobs; it is a livelihood. It is a current that runs around the world and it can give life to communities. The supply chain actually has a lot of power. “And we western countries - how much waste are we creating? What are we buying? What is actually happening to the communities where all this landfill is going?” Barnes-Humphreys reveals the most important lesson she’s learned is that it’s only with mutual respect “that the magic happens”. “When we come together, work together, and understand and respect each other’s roles, that's where the magic happens. Communication and data are the other big components, because the more we know the better we can be.” Both Demato and Barnes-Humphreys want to see diversity reign - from head office to warehouse floor, especially after two years of social distancing as a result of the pandemic. “In the global supply chain you will interact with people from all over the world,” says Demato. “If you want to work with a diverse group of people what could be better than this?” supplychaindigital.com

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VISA – PAYMENTS, PROCUREMENT, AND THE GREAT PANDEMIC PIVOT WRITTEN BY: SCOTT BIRCH

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PRODUCED BY: GLEN WHITE

VISA

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VISA

Mano Manikkam , Senior Director, Head of Global Sourcing – APAC at VISA on the payment giant’s digital transformation and procurement pivot

ew functions have received more recognition in global organisations since 2020 than procurement. Alongside IT, procurement professionals have weathered the many storms produced by the pandemic and steered companies to safe harbours. More than one leading executive has said that procurement has cemented its position and proven its importance, while making CPOs the “rock stars” of the C-suite. Mano Manikkam is far too humble to describe himself in such terms. Like so many procurement leaders, he seems more comfortable quietly getting on with his job, ensuring that the function stays in the shadows for all the right reasons. On a visit to the UK from his base in Singapore, the Senior Director of Global Sourcing, Asia Pacific, Visa, takes time from his busy schedule to visit BizClik’s HQ in Norwich. This is worth mentioning as it speaks volumes about his modus operandi – he is on leave yet still makes the time to share the Visa success story as they navigated the procurement challenges of the COVID-19 pandemic, accelerated their digital transformation and all the while keeping a close eye on their suppliers and key partners.

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MANO MANIKKAM TITLE: SENIOR DIRECTOR, HEAD OF GLOBAL SOURCING – ASIA PACIFIC COMPANY: VISA

“Digital transformation is not just a onetime initiative – it is a long-term investment”

INDUSTRY: INFORMATION TECHNOLOGY & SERVICES LOCATION: SINGAPORE

Mano Manikkam is a procurement leader with an extensive track record of building and transforming procurement teams into world-class functions for Corporates across US, Europe and Asia Pacific. He joined Visa in June 2014 and consistently leads and delivers high-value procurement services in Strategic Sourcing and Category Management – achieving significant ROI and generating sustainable cost savings through driving best practice and continuous improvements initiatives.

MANO MANIKKAM

EXECUTIVE BIO

SENIOR DIRECTOR, HEAD OF GLOBAL SOURCING – ASIA PACIFIC, VISA

Manikkam has many areas of expertise built in a 25-year career, enabling him to master complex and demanding procurement and program management activities. Specialities include Operational Transformation, Procurement Processes Modeling, Data Analysis & Reporting, Category Planning and Management, Vendor Relationship Management, and Change Management.

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VISA

He beams a warm smile as he reaches for his smartphone and shares photos of his recent visit to Anfield, home of his beloved Liverpool Football Club – football being a universal, global language and reference. Equally ubiquitous is Visa, or as their latest strapline puts it, “everywhere you want to be”. The payments giant has faced unprecedented change, as the world transitioned to more digital payments, while also having to manage its own reaction to remote working, supply chain disruption and global shortages. All in a day’s work for a procurement leader? “Over the 20-plus years of my career, I've seen procurement change vastly from initially just being a processing function for most companies,” says Manikkam. “Now more of what we see in the industry is procurement functions being closer to the business, and even to the clients, to drive better business value to reach business goals.” Manikkam’s scope covers the whole spectrum of procurement in 22 markets in Asia Pacific across all spend categories, working with diverse suppliers at a localised level. Manikkam’s career started as a consultant and he worked his way towards middle management in consulting and then switched over to the corporate world on the client side. That has seen him work across multiple regions – in the US, in Europe and also in Asia – and in global companies across multiple industries and sectors. It has been a solid career path, with foundations formed while performing military National Service duties in Singapore. “I spent three years in the Singapore army as a commissioned army officer within the Ist 112

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Commando Battalion,” he recalls. “It taught me a lot of things, especially leadership skills, self-discipline and development in my mental and physical endurance. I was put in situations where I had to react quickly, thinking out of the box and also overcoming challenges to deliver outcomes. So now when I'm in the corporate world and face similar challenges – people challenges, organisational and transformational challenges, operational challenges – what I have gained from those learnings has been very helpful for me.”

1958

Year founded

20,500

Number of employees worldwide (2020)

On the subject of Singapore, a renowned hub for trade and financial services seen as the gateway to Asia for many Global and Western organisations, how important is it in a digital world to have a physical presence in market? As more organisations transition to remote and digital, does location even matter anymore or has that concept become redundant? Manikkam admits that we live in a digital, borderless world today, but believes

certain businesses cannot be successful unless they are localised. “Location is absolutely still important for physical impact on specific markets and industries, especially in a region like Asia Pacific,” he says. “It's a multicultural environment with fragmentation of rich culture and traditions and how business is done in those markets is unique compared to other regions. So companies with ambitions to grow in the region have to be present rather than work virtually.” supplychaindigital.com

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We have recently partnered with Simfoni and went Live with a new spend analytics tool. This allows us to make necessary advancements in consolidated automated data feeds, enriched data and more user friendly data visualization capabilities. It also allows us to create comprehensive analysis of all main spend categories and sub-categories along with supplier fragmentation and the ability to generate reports on high-level overview of spend and volumetric profile by different parameters. The tool allows us as an organization to mature in our reporting capabilities with enriched data and help drive better informed category management and discussions with our business partners.

February 2022

VISA

“Our focus hasn't changed. We have learned a lot from this past 12-18 months and we are ready and prepared to apply those learnings as we move forward” MANO MANIKKAM

SENIOR DIRECTOR, HEAD OF GLOBAL SOURCING – ASIA PACIFIC, VISA

Meet Visa

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VISA DEVELOPS NEW, SOCIALLY RESPONSIBLE SPEND DEPARTMENT WITH SIMFONI When Simfoni analyzes data for its clients, they leave nothing unchecked. The Californian-based startup’s top priority is to provide “the complete picture” on how companies spend money, and how they can spend it more effectively, profitably, and responsibly. Simfoni is designed to make the spending processes of the supply chain as efficient and effective as possible by bringing together all relevant data, no matter the type, size or source. Jason Stern, CEO Simfoni Spend Intelligence, explains, “We provide a suite of applications with spend analytics at the core. Those applications help customers drive better cost savings, identify risks within their supply chain, and create greater procurement efficiencies.” Stern continued, “But that’s just the tip of the iceberg. What’s becoming increasingly important to our customers is focusing on CSR initiatives. They’re looking to use Simfoni to help customers find ways to ensure their spending is as socially responsible as possible,’ he says.

Simfoni’s four-year relationship with Visa is a prime example of this shift in the focus of organizations’ spend management. “Visa wanted a clearer picture of its global spending, that’s why they came to us,” says Stern. “Initially, we were able to give Visa that detailed vision to enhance efficiencies and reduce risk.” But it was the next stage that took Visa to the next level. “We were able to help Visa really step up in terms of its CSR,” says Stern. “Just by drilling down into their spend we were able to help them create a Supplier Diversity Department. With Simfoni, Visa can now calculate the impact they have across a multitude of communities through their supply chain. This data provides huge amounts of quantifiable and valuable Environmental, Social & Governance (ESG).”

VISA

Creating a Digital roadmap for Sourcing success Mannikam says that Visa has a road map for digital transformation that is part of their continuous improvement to benchmark themselves against the industry and where they should be heading. The pandemic came along and, in an unexpected way, actually supported Visa’s transformation, as it did with many companies that were prepared for the move towards digitalisation of their operations. Manikkam says the pandemic “almost enhanced the necessity of why we should be transforming digitally”. Most communities transformed digitally in the last two years, certainly when it came to making payments. Visa already had multiple payment flows and the shift to more focus on digital and contactless

procurement? How is that impacted by this digital roadmap? “We are looking at it right from the ground up – from the baseline P2P platform that will allow us to build on other modules beyond that,” says Manikkam. “We're not just stopping with the initial requirements coming from the business but also handling category management activities on that platform, contractual authoring, and also review – all the way up to payments and settlement. That will be the foundation and eventually, it will grow to look at Supplier Risk review, Supplier Relationship Management, and Supplier Performance Management and possibly Supplier diversity too. “We've tried to look at it from an end-toend process improvement standpoint, as an opportunity to bring it all together.”

was already part of the digitalisation of the payments industry. The pandemic actually encouraged Visa to drive its third-party supplier partnerships to enhance growth in digitalisation and digital payments. But what about when it comes to

Importance of partnerships We discuss the topic that refuses to go away – the pandemic – and the inevitable digital transformation that it obviously accelerated. Manikkam, like so many forward-thinking global executives, acknowledges that the terrible virus has also delivered some positive change. Not least, it has galvanised relationships with key partners. “We work with a lot of key partners within our digital transformation initiatives,” he says. “The partners we work with are absolutely key because they provide us with a lot of knowledge, intelligence and more industry-standard ways of working and benchmarking ourselves to delivery our transformation goals successfully. “Digital transformation is not just a onetime initiative – it is a long-term investment and it should be a way to build and grow the operations forward rather than a plug-the-gap kind of solution.

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MANO ON SUSTAINABILITY “Sustainability is a big topic that we are working with our businesses to get closer to and address. We have corporate goals on sustainability and we do see our clients asking for it too. When we work with our suppliers, they have to ensure they are also compliant and adhering to these sustainability goals.”

“In our procurement function, we focus on the partnership with third-party providers and vendors and they are the ones that provide the critical services that allow us to deliver value to our clients so we have to ensure that we select the right partners, we create the right relationship, capture the right delivery and commercial mechanisms and contractual structure so that they can deliver great value for Visa’s clients.” The changes forced by the pandemic are not just limited to an increased reliance on digital solutions or new processes – there was also a significant shift in business supplychaindigital.com

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VISA

“ Supplier diversity enables and supports innovation” MANO MANIKKAM

SENIOR DIRECTOR, HEAD OF GLOBAL SOURCING – ASIA PACIFIC, VISA

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attitude and behaviour towards the procurement function. Manikkam says procurement has traditionally been perceived in different ways by different companies but procurement is the “main artery to the financial spine of every company”. “From being viewed as just processing backend operations, the procurement function is now elevated closer to the business, and they look at us as trusted advisers and enablers of driving the business forward rather than being a roadblock. “That's a cultural change which a lot of companies struggled with. So when you're leading a procurement function you’ve got to also factor that in to ensure that it is a cultural change. It is not just about changing the procurement function, but also changing the behaviour of the entire company to accept that change.” supplychaindigital.com

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VISA

payments, procurement, and the great pandemic pivot

“We shouldn't be shy of trying new ideas, new ways of doing things, new strategies – especially in regions like Asia Pacific” MANO MANIKKAM

SENIOR DIRECTOR, HEAD OF GLOBAL SOURCING – ASIA PACIFIC, VISA

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It has been a turbulent time for Visa, as it has for all global organisations, coping with an unexpected crisis and accelerated change, and Manikkam admits his team has learned a lot from the experience as they have adapted to a new way of working. “Our focus hasn't changed,” says Manikkam. “We have learned a lot from

the past 12-18 months and we are ready and prepared to apply those learnings as we move forward”. “We shouldn't be shy of trying new ideas, new ways of doing things, new strategies – especially in regions like Asia Pacific where it is very fragmented and government and regulatory guidances are changing on a regular basis. We need supplychaindigital.com

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VISA

INSIGHT...

MANO ON CATEGORY MANAGEMENT

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“Category management is absolutely a critical part of the procurement spectrum and some companies do not invest enough in it or do not understand the great value that they can deliver. Category management builds the relationship with the strategic end and also helps to drive the implementation, ensuring activities and initiatives are delivered to align with those sourcing strategies. Category management is also important to manage relationships – not only with our internal stakeholders but also with our supply market so it is an absolutely critical function.”

February 2022

VISA

to ensure that we stay close to our supply market, understand them, understand how they are impacted by regulatory changes and react accordingly to get the best for VISA.” Looking ahead, Manikkam says innovation is absolutely critical for VISA and being integrated into thought processes within the procurement function.

“Supplier diversity enables and supports innovation,” he says. “The key suppliers are always there but a lot of smaller suppliers are coming up with cutting-edge technology and ideas that take things further, and that's worth exploring.”

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WHAT IS DRIVING CPOS TO MODERNISE AND DIGITISE S2P? Alan Holland, CEO and Founder of Keelvar, and Fabian Lampe, Head of Procurement and Marketing at Archlet, answer this question WRITTEN BY: GEORGIA WILSON

TECH & AI

Alan Holland TITLE: CEO AND FOUNDER COMPANY: KEELVAR My name is Alan Holland. I'm the Founder and CEO of Keelvar, an SaaS vendor focused on sourcing optimisation and sourcing automation.

he peaks and troughs of COVID19 have affected procurement and supply chains in many ways, “At various times we have seen shortages of goods and services, procurement has been time-pressed in a market setting where the long term norms we’ve witnessed around contract negotiations are being torn up. Suppliers are not always honouring contracted prices agreed prior to the pandemic, and they are reluctant to agree to any new long-term contracts, which means that the frequency of sourcing is increasing, yet the staffing numbers remain the same,” says Alan Holland, Founder and CEO of Keelvar.

Fabian Lampe TITLE: HEAD OF PROCUREMENT AND MARKETING COMPANY: ARCHLET My name is Fabian Lampe. At Archlet I am Head of Procurement and Marketing. My background is in category management for marketing procurement, with a strong focus on sourcing capabilities, eSourcing auctions, advanced sourcing, and technology. In my role now, I support and educate people on those capabilities.

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TECH & AI

“I think that this ever-increasing workload is quite stressful for procurement functions as a whole. They are experiencing a difficult period and they need help within their organisations, but they need help from technology vendors as well to help reduce that workload.” Adding to Holland’s comments, Fabian Lampe, Head of Procurement and Marketing at Archlet, says: “Speaking from a vendor perspective, we’ve definitely seen that potential customers are a lot more focused on ensuring the security of supply rather than investing in innovation or new solutions. Everyone is talking about procurement digitalisation, but when it comes down to it, businesses are screaming to ensure that factories continue to run and to improve process efficiency.

“There has never been more awareness of the opportunities offered to procurement and supply chain, by optimising or digitalising source-to-pay (S2P). The market has been shifting tremendously over the last two to three years leaving procurement and supply chain in a state of flux where customers are not 100% sure how to deal with this.” What is driving CPOs to push for modernisation and digitalisation? “Market forces are driving this change to a large extent because suppliers perceive risks in the volatility of the input prices for materials to produce goods so they're reluctant to commit to long-term contracts,” says Holland. “And so, due to the reluctance of suppliers to commit to long-term contracts, supplychaindigital.com

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workloads are increasing for procurement teams that need to go to market more frequently. CPOs are seeing their teams becoming quite stressed, causing a talent retention problem, so they're seeking to reduce that workload and leverage more modern technology to do so.” Agreeing with Holland, Lampe reflects on the overall resource pressures and the cost of operating. “Technology is one way to deal with this. Technology can help to increase the impact of the people you can have at your disposal and improve return on investment (ROI) in procurement. I think that's really where the value of technology comes in.” Where can S2P solutions provide the most value? When it comes to deriving value from S2P solutions, Holland expresses that “upstream

Being more sustainable with S2P “This is where the majority of the industry falls short today. When it comes to sustainability in procurement, sustainable sourcing we find that this is mostly something that is done by a small team, it's not really embedded into an organisation particularly when it comes to there being clear benefits and incentives to make sustainable decisions. Tool providers have realised that bringing sustainability information into their offerings is great for marketing and decision-making.” Fabian Lampe, Head of Procurement and Marketing 130

February 2022

activities and sourcing are where the biggest gains can be made, the strategic tasks are around negotiating with suppliers, being able to go to market faster and the ability to take a broader view of the market capacity. If you can do that, then you have a key competitive advantage. So, using best of breed e-sourcing is the biggest lever available to CPOs today.”

TECH & AI

Adding to Holland’s comments, Lampe sees smart automation as a valuable asset for the supply chain and procurement industry. “This smart automation of tasks that can be done across S2P right now, there are a lot of opportunities for the process to be automated where no manual intervention is really needed. Those are no brainers, which provides

opportunities for organisations to decrease their costs. “There is also decision support, today people need to make sense of data, there is a lot of talk that procurement professionals of the future need to be data analysts, but this doesn’t make sense with the current talent market, so an area of opportunity is for technology to be used in data analysis with

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structured information, changing the way that people work but in a helpful way, so it’s really a decision support tool.” The foundations for effective S2P solution adoption When it comes to the foundations for effective S2P, Holland starts by discussing Keelvar’s recent research surveying sourcing managers. Holland explains that the report found evidence of procurement and supply chain teams needing to be upskilled when it comes to their knowledge and understanding of advanced automation and what AI can do to help. “That training can be provided by vendors as well, Keelvar has created a new training programme called Keelvarsity where it trains up users in advanced techniques. So, we believe that's an important foundation stone for progress.” Holland also recognises the importance of data. “Data is critically important if it is structured in the right way. Few vendors, once they've built their solutions, really appreciated the importance of structured data. Keelvar emerged from an AI research laboratory, so we understand the foundational importance of tagging data and taxonomies and more, so that we can learn and make inferences.” Agreeing with Holland, Lampe discusses the importance of building a data foundation. “A lot of times people use data as an excuse for not getting started. They say: ’we don’t have the right data available’. But our response would be ‘start producing the right data’, because if you delay even further, just because you don’t have the historically good data, you will never stop creating information in a format that isn’t useful. Transformation starts with accepting this and building out the data foundation that you need rather than looking at the past and trying to make sense of that. The key is to just make a start.” supplychaindigital.com

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TOP 10

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Global logistics providers Third party logistics (3PL) providers are the specialists who keep goods moving around the world, no matter what WRITTEN BY: SEAN ASHCROFT

mong the things 3PL providers handle are outsourced distribution, warehousing and fulfillment services, to name but a few services. The best 3PL providers scale and customise their solutions to meet customers' needs. Many also offer value-added services around the production or procurement of goods. In a world at present riven with supply difficulties, 3PL providers are the dependable enablers of global supply chains, helping to keep goods moving. The companies listed here are the biggest by both revenues and reputation, with some of the brands so ever-present they have become woven into popular culture (think FedEx and the film, Cast Away)..

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TOP 10

CJ Logistics CJ Logistics is a South Korean logistics firm headquartered in Seoul. It started out as Chosun Rice Warehousing in 1930, during the Japanese colonial era in Korea. The company was later renamed Korea Express. Its main operations today are contract logistics, freight forwarding, port logistics, courier services, and global transportation. CJ Logistics was purchased in 2012 and merged into CJ GLS as the logistics arm. CJ Logistics’ revenue in 2019 was US$13.42bn.

“ CJ Logistics’ revenue in 2019 was US$13.42bn”

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DSV Panalpina DSV Panalpina is a Danish logistics company that provides services in road, rail, sea, and air transportation. It was founded in 1976 by nine Danish haulage companies, who merged to form DSV. Its most recent acquisition is Panalpina Welttransport AG, which it purchased in 2019. It has its headquarters in Hedehusene, near Copenhagen, and offices in 80 countries. DSV Panalpina's big strength is its trucking network in Europe, North America, and South Africa.

TOP 10

“The company's global network spans 794 sites in 60 countries. Its revenues in 2020 were US$19.42bn”

Nippon Yusen Kaisha (NYK) Japanese shipping company Nippon Yusen is owned by the Mitsubishi Corporation. It was founded in 1870 as Tsukumo Shokai Shipping, and transported passengers between the port cities of Yokohama and Shanghai. Alongside its main shipping operations, the company provides end-to-end logistics solutions. Now based in Tokyo, it owns and operates 800 shipping vessels, making it one of the world's largest shipping firms. Its revenue in 2020 was US$16.5bn.

DB Schenker Logistics DB Schenker is the logistics division of Deutsche Bahn AG, a German rail group. Based in Essen, Germany, DB Schenker manages the supply chains of global corporations such as Apple, Proctor and Gamble, Dell, BMW, and Ford, with divisions dedicated to ground transport, ocean freight, air freight, contract logistics, and supply chain management. The company's global network spans 794 sites in 60 countries. Its revenues in 2020 were US $19.42bn. supplychaindigital.com

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Kuehne + Nagel Inc

XPO Logistics US global shipping and contract logistics services organisation XPO Logistics boasts 1,530 sites in 30 countries. It is responsible for the supply chains of 69% of Fortune 100 firms. Specialty areas include freight brokerage, intermodal and drayage (short-distance logistics), last-mile distribution, and global forwarding. KN Integrated Logistics is its supply chain arm, and areas it handles include supplier and inventory management, aftermarket management and supply chain Technology. XPO’s headquarters are in Greenwich, Connecticut.

Kuehne + Nagel Inc. began life as a forwarding agency for cotton, in Bremen, Germany, in 1890. Today, it is a Swissowned holding company with interests in sea freight, air freight, contract logistics, and overland transportation. It is also a specialist in IT-based logistics solutions. Kuehne + Nagel operates in 65 countries, and employs around 82,000 people. In 2013, Kuehne + Nagel merged its railfreight business with VTG to form VTG Rail Logistics, now Europe's largest private rail freight business.

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TOP 10

Nippon Express Japanese logistics firm Nippon Express operates in 40 countries, and has 744 branches in 48 countries and territories. It was founded in 1937, in Tokyo, with the Japanese government providing additional support, making it a semi-governmental body. It was fully privatised in the 1950s. In 2013 Nippon Express bought 67% of Panasonic Logistics, which is owned by Japanese electronics group, Panasonic Corp. In 2017, its revenues were US$16bn.

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03 Deutsche Post DHL Group Deutsche Post DHL Group is a business of two parts. Deutsche Post delivers 61 million letters each day in Germany, making it Europe's largest company of this type. DHL began in 1969 as a US company, DHL Air Cargo, and by the late 1970s was providing services globally. Deutsche Post bought it in 2002, and DHL is now its express division, operating out of 430 warehouses. Deutsche Post DHL has its HQ in Bonn, Germany.

TOP 10

FedEx Corporation Based in Memphis, Tennessee, FedEx is a US global freight company. It was founded in 1971 as Federal Express, and was a specialist in expedited deliveries. FedEx is the world's largest cargo carrier in terms of scheduled freight tonne kilometers, and the fourth largest in terms of fleet size. The company has operations in 220 countries and has 3,000 metres squared of warehouse space. Its revenue in 2020 was US$69mn. FedEx Supply Chain, is a 3PL provider in the US and Canada. Industries it serves include: technology and electronics, retail and e-commerce, consumer and industrial goods, and healthcare industries. FedEx today, is best known for its air delivery service, FedEx Express. It was one of the first major shipping companies to offer overnight delivery as a flagship service. .

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

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UPS Express Critical When Fast isn’t Fast Enough

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“ In 2021 - following a shift to smaller customers during the Covid-19 pandemic, UPS reported a 21% jump in Q$ sales, to US$24.9bn”

UPS US-based parcel delivery service UPS (United Parcel Service) has been around for more than a century, having been founded in 1907 as a messenger service operating out of Seattle. The company specialises in shipping, air freight, trucking, last-mile distribution, and drone delivery. It now has its HQ in Atlanta, Georgia. UPS has more than 35 million sq ft of distribution and warehousing facilities in 1,000 locations that are based in 120 countries. In all, it serves 220 countries and territories. It is the largest courier company in the world by revenue, with US$85bn in 2020, ahead of competitors DHL and FedEx.

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Timeline The history of advanced technology in supply chain

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