www.supplychaindigital.com
July 2018
Best practice procurement drives growth
Reducing complexity in procurement Exclusive interview with Adrian Lorenzin, director of procurement at Delaware North
Shaping the future supply chain
TOP 10 US supply chain management courses
Reimagining the supply chain
Interview with the President of SAP Ariba, Barry Padgett
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APAC’s Procurement Event is BACK & BIGGER than ever!
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Digital Evaluation Focus Day 10 July 2018 Main Conference & Exhibition 11 - 12 July 2018
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KAUSTUBH WADEKAR Group CPO Singtel INFLUENCING BEHAVIOURAL CHANGE
DR. CHRISTINA S. S. OOI Head, Group Procurement Malaysia Airlines WOMEN IN PROCUREMENT
QASIM HUSSAIN CPO, APAC & Africa Kellogg ETHICAL SOURCING
ROB HALSALL CPO Westpac New Zealand ROBOTICS & AI
PENNY CHONG Head of Procurement Maybank Kim Eng DEVELOPING NEW AND EXISTING TALENT
KEITH CARTER TEDx Speaker, Author of Actionable Intelligence & Associate Professor of Computing National University of Singapore BLOCKCHAIN AND DIGITAL TRANSFORMATION
BHAVESH SHAH CPO Firmenich STRATEGIC LEADERSHIP OF SOURCING
TAKUTO UEHA Partner McKinsey & Company INFLUENCING BEHAVIOURAL CHANGE
Why You Can’t Afford to Miss ProcureCon Asia 2018 ProcureCon Asia returns for 2018 with a focus on Digital Transformation and Future Proofing Your Procurement Strategy. Benefits of attending: Expand your professional network while networking with over 200 CPOs and Heads of Procurement from Asia’s leading companies including Maybank, Malaysian Airlines, Telstra and Shell – Twice the size of any other procurement conference in the region! Hear case studies from 50+ CPOs and Heads of Procurement including the CPO of Singtel, CPO, Perfetti Van Melle and the Head of APAC Procurement, eBay
Join dozens of small-group, peer-to-peer learning formats and gain a practical roadmap to everyone of the challenges that you face Get real-world examples on how to lead your team in an era of disruption and the future trends that will shape the procurement landscape and the role of the CPO Learn how Blockchain will enable the digital transformation of procurement
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FOREWORD
elcome to July’s issue of Supply Chain Digital – appointment reading for executives working in the supply chain, procurement and logistics industries. We have another bumper issue for you this month, packed with must-read interviews, insights and reports from companies setting the agenda in the supply chain world. Our cover interview this month comes from Australia, where we take a close look at Delaware North, Australia and New Zealand – a big name in sports hospitality. Supply Chain Digital spoke exclusively with Adraian Lorenzin, Director of Procurement for the company’s Australian and New Zealand operations to find out how an emphasis on partnerships is super-charging the company’s supply chain transformation. It’s a piece not to be missed. Elsewhere, we check in with The College Board to speak with Steve Hughes, Chief Procurement Officer, who explains the important role of procurement in a not-forprofit organisation. And continuing the theme of unmissable interviews, SAP Ariba President, Barry Padgett, discusses the increasing demand for transparency, efficiency and innovation as well as the decision to open up insights on SAP’s supplier risk solution. Our regular top 10 feature this month covers, we run the rule over the world’s leading supply chain universities. As usual, we welcome feedback across all the usual channels – get involved on Twitter and Facebook. Enjoy the issue!
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CONTENTS
10 Delaware North
Procurement perfection at Delaware North REIMAGINING How THE SUPPLY to make CHAIN a sourceto-pay solution take off
28 Leadership
36 Technology
Top 10 US supply chain management courses 48
58 Events
CONTENTS
96 The College Board 66
Cushman & Wakefield
112 Rodan + Fields
86 Kuhn Krause
126 BTG
170 Crown Worldwide Group
186
136 Raben Group
BC Lottery Corporation
150 Petronas Lubricants International
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GENERAL MOTORS
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Procurement perfection at Delaware North
Just over a century old, Delaware North is among the most admired hospitality groups in the world. Its Australian operations are diversifying, and reducing procurement complexity is catalysing that process Written by John O’Hanlon Produced by Glen White
D E L AWA R E N O RT H , AU ST R A L I A A N D N E W Z E A L A N D
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port is big in Australia and Delaware North has been a big name in Australian sport since the foodservice giant entered the ANZ market more than 30 years ago. The global company has remained in the ownership of the Jacobs family right through its history, and that culture of family, entrepreneurship and flexibility continues to shape an ethos which is best summed up by Chairman Jeremy Jacobs’ remarks in the 2017 Annual Report: “Our centennial was a great reminder of the core principles and values-driven approach to business on which our company was founded. Since the early days of peanuts and popcorn, Delaware North has thrived on the strength of our industry and client relationships. Trust, integrity and character are values that we hold dear to our family, and they are the same values we have instilled in our company. We know that the strength of our partnership with clients and colleagues is the key to our continued growth and success.” This emphasis on partnership is the key to the supply chain transformation currently being led within the Australian business by Adrian J U LY 2 0 1 8
Adrian Lorenzin Director of Procurement
Adrian Lorenzin is Director of Procurement of Delaware North’s Australian and New Zealand operations. A career beginning in airlines in the late 2000s it didn’t take Lorenzin long to move from his educational focus of finance into the world of procurement. A number of years were spent working at Qantas, the country’s largest airline, supporting the procurement efforts in the corporate services category. From here he moved into the procurement team at Coles, the nation’s second largest supermarket, specifically focusing on logistics sourcing. This gave rise to a number of moves made whilst at Coles culminating in his role as Head of Central Logistics, overseeing a team of 16 professionals supporting the central operations of Coles’ $1.2bn-plus logistics network. Lorenzin has managed a vast array of procurement activities with values ranging from $5mn to $200mn across the corporate services and supply chain categories. He is an advocate for the procurement profession in Australia and supporting those who see it is a viable career to drive the success of Australian businesses.
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“We expect our revenue will grow significantly in the next three years: procurement will play a major role in that” – Adrian Lorenzin, Director of Procurement
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AUSTRALIA’S MOST LOVED IMPORTED BEER^ BRAND HAS A NEW VARIANT AVAILABLE NOW ^Corona is the #1 imported premium beer and represents 68% of total premium imported pack beer sold in on premise. IRI AU liquor weighted MAT March 11 2017.
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Lorenzin, its (relatively) new Director of Procurement. Lorenzin brought with him extensive experience in the airline and retail industries, most recently with the country’s second largest supermarket chain Coles, but with less knowledge of hospitality. However, he and the leadership that appointed him thought this an advantage rather than a drawback. What was needed was a fresh approach. The Australian business is at an interesting stage. Having established itself firmly as the leader in sports hospitality services, with Melbourne & Olympic Parks (home of the Australian Open), Melbourne’s Etihad Stadium
and the Sydney Cricket Ground in its portfolio, it expanded its travel hospitality services business, with an increased presence at the majority of capital city airports around the region. In 2009 it acquired several iconic Australian resorts including Lizard Island, Kings Canyon Resort and El Questro Resort. Growing critical mass Now the business is in growth mode, having just purchased its first two pubs in Queensland. Thus far Delaware North had not owned any pubs or purely gaming w w w. s u p p l y c h a i n d i g i t a l . c o m
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operations in Australia, though it’s big in gaming in its other markets such as the US, explains Lorenzin. “The pubs and gaming sector is where we see significant growth coming from and we will look to expand our portfolio in the next few years.” He sees his role as to extract value from the A$100mn current annual spend by developing the procurement strategy and applying that to the growth business: “We expect our revenue will grow significantly in the next three years: procurement will play a major role in that.” With pubs set to become a major business unit, Delaware North will be moving into a very closely regulated and compliance-based environment. This is an expansion that will need to be very carefully managed, though it will be a perfect marriage between the food and beverage core business and the gaming market. Exciting times for Adrian Lorenzin and his team, for whom this is about much more than scaling up an existing operation. In August 2017 he joined a business that was prepared for change. “I have always been mindful that my procurement strategy needs to fit J U LY 2 0 1 8
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“One of the best things we can give
this business from a procurement perspective is confidence and commitment in their cost base” – Adrian Lorenzin, Director of Procurement
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into where the business is going rather than have the business fit into my procurement strategy. The basis for the procurement transformation started at the most senior levels with our executive team – they saw some opportunities and green shoots in areas that they scratched in the twelve months before I arrived.” Nevertheless, supply change management was not as mature at Delaware North as he had been used to at Coles or Qantas – multi-billion-dollar companies with a highly advanced procurement function – and very commercial in the way that they go about managing suppliers. But these large ASX companies could also be onerous. “I came in with the view of bringing the best of what I have done previously in bluechip environments while avoiding the things I had identified as slowing those cultures down. The environment that I identified when I came here was a traditional supplier model. We’d engage suppliers without any long-term commitment, negotiating discounts and the like, but with very little true marketing engagement.” The first partnerships Lorenzin forged were internal. After launching
a three-year analysis of value in every corner of the supply chain (the first pillar of his transformation), he looked at how procurement engaged with the operational side of the business. This necessitates a broad cultural change, he believes. Rather than making sourcing decisions centrally and asking the management of sites to live with them, Lorenzin started to invite operations to make their preferences known. “There was an opportunity to increase two-way dialogue and give operators the chance to share input. I was saying to key operational partners, ‘You will have a voice more than you’ve ever had. However, it will be structured.’ We have been very clear as to what we will be sourcing from the market and where we will be seeking their input.” Procurement, he says, is the magnifying glass that draws together the expertise across the business, concentrates it and obtains the best outcome for the business. The Pareto rule applies: 80% of the total spend w w w. s u p p l y c h a i n d i g i t a l . c o m
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LEADING BRANDS WITHIN THE IMPULSE / CONVENIENCE CHANNEL ACROSS ALL SALTY SNACK SEGMENTS PepsiCo Australia & New Zealand, under the operating arm called The Smith's Snackfood Company, is Australia’s largest manufacturer of salty snackfood products. Supplying Australians for more than 85 years, PepsiCo Australia & New Zealand operates nationally with extensive operations rights across Modern and Traditional Trade channels. PepsiCo Australia & New Zealand is able to draw on its scale of operational experience from markets around the world along with the global market presence of a portfolio of internationally recognised brands.
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21 ‘mega-brands’ with total estimated worldwide retail sales in the vicinity of US$100 Billion and Second largest food & beverage business in the world.
DISCOVER MORE
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“I think I know
the route to the summit, but before I tackle that I want to get the business to base camp one” – Adrian Lorenzin, Director of Procurement 21
is on things that do not require local flexibility; 20% may be on things that really need to be locally sourced. Take wines for example: “We run bars in airports across Australia and we always need to have local wines represented. Often we’d look to the nearest winery – but the largest wine supplier that we work with owns 96 Australian wineries! We are working with a strategic national partner that can satisfy local needs but operations don’t know that because they don’t have the bird’s eye view. Procurement’s job is to create a commercial framework
for the management on the ground to satisfy their local requirements with our national partner.” There are of course occasions when nothing beats a local supplier. For instance, El Questro offers barramundi, a popular fish caught in northwest WA at Wyndham. Lorenzin knows he will never replace that with a less expensive frozen alternative, despite the potential cost savings. “We must always empower operations to support local industries. w w w. s u p p l y c h a i n d i g i t a l . c o m
The worst thing we can do is create policies and procedures that stop people from being flexible to the customer base.”
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Founded in
1915
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The future state For now technology is taking a back seat to structural and cultural change. The current stock control management (SCM) ordering system holds all the SKUs pricing information and supplier data. “The system works well and with 100% compliance. It is the only way you can order anything within the business.” Lorenzin says he would like some refinements, but these will be addressed in a later phase of the transformation. For now he wants to reduce the SKU list to a manageable size and reduce its complexity, and at the same time reduce the supplier ‘tail’. At the head of the list of strategic partners are the sponsors of major sporting events. High profile food brands and franchises are represented in the Delaware North portfolio through license arrangements. At this stage the extent of the
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About Delaware North
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procurement relationship is the use of Delaware North’s systems to do the ordering. There is little upside in this arrangement, Lorenzin says, but there could be a lot more. “There’s potential in the future to partner with these companies and make use of the synergies that exist: there is a real case for forming a buying group with others in the market. An alliance of strong brands that are purchasing in comparable volumes to our own would make us a very significant entity for the supplier market to consider.” Starting with the top categories, the team he has been hand-picking will
systematically go through the suppliers, driving value where it can be most easily achieved. “I have made a commitment to the business that we will reduce like-for-like costs by between 5% and 10%. One of the best things we can give this business from a procurement perspective is confidence and commitment in their cost base.” In the second phase, Lorenzin will look to value opportunities in the logistics operation, through collaboration with partners. By far the biggest transport operator w w w. s u p p l y c h a i n d i g i t a l . c o m
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into all operations is their national food distributor, but there are many smaller suppliers, and this can create problems, especially in a city. For example, when there’s a big game at the Etihad Stadium there could be up to 20 deliveries in a day coming through choked streets. “There’s so much room for optimisation here,” says Lorenzin. “The second wave of transformation may well see consolidation in our delivery service with just one temperature-controlled delivery and one ambient delivery each day. That is achievable because we have geographical critical mass – at Melbourne for example where we have the airport, the stadium and the tennis park – to run consolidation into those operations.” The measured approach is very much in accord with the CEO and Lorenzin’s colleagues in the senior leadership. We could look to go more quickly and land this all in the first phase of the strategy, but we’ve been in this market for more
than thirty years and will be around for decades to come. I wanted to take people on the first journey of procurement by which we are rationalising the supplier and SKU bases and forging longer term relations with strategic suppliers: then I want to overlay that with the right technology platform and the right logistics network.” Always fond of colourful analogies, Lorenzin likens the procurement transformation to climbing Everest. “I think I know the route to the summit, but before I tackle that I want to get the business to base camp one. Getting that far has its own rewards and it is achievable. I consider myself lucky to have been able to hire an excellent team and to have the support of an executive team that gives me the autonomy I need.”
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REIMAGINING THE SUPPLY CHAIN SAP ARIBA PRESIDENT, BARRY PADGETT, DISCUSSES THE INCREASING DEMAND FOR TRANSPARENCY, EFFICIENCY AND INNOVATION AS WELL AS THE DECISION TO OPEN UP INSIGHTS ON SAP’S SUPPLIER RISK SOLUTION WRIT TEN BY
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MARK SPENCE
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s the recently appointed President of SAP Ariba, Barry Padgett knows all too well that the changing demands of customers and the effect that has on the supply chain are all crucial elements that need to be met and supported as we head deeper into 2018 and beyond. Following on from its recent SAP Ariba live event in Las Vegas earlier this year, there are some clear and stark expectations regarding the role of procurement and beyond that Padgett refers to throughout our conversation. At the top of the list is transparency, efficiency and innovation. “Not only are our customers looking for transparency in terms of their supply chain, but their customers are also asking for the same thing,” explains Padgett. “As consumers we’re more and more interested in sustainable ethical supply chains, ethical sourcing and trying to figure out who we spend our money with, where are our goods are made and what things are going into our foods etc. So, our customers are feeling it too from their buyers: whether it’s trad B2B buyers who are working towards business with a purpose and making sure they have sustainable business practices, or if they are a direct-toconsumer company and their customers are getting loud and demanding with respect to understanding the supply chain,” he continues. J U LY 2 0 1 8
“ IF YOU TAKE BAD EXISTING MANUAL PROCESSES AND ADD IN TECHNOLOGY OR AUTOMATION, YOU END UP WITH A BAD AUTOMATED PROCESS” — Barry Padgett President, SAP Ariba
in a tech vendor or partner,” he reveals. “If you take bad existing manual processes and add in technology or automation, you end up with a bad automated process. So, a lot of the stuff that came out of the conference around efficiency was about taking a real deep look at our businesses to work out what our best practices are and then we layer in the tech to really drive efficiency.” At the Las Vegas live show, cognitive technology was another facet that was explored, including using IBM Watson to go
SAP Ariba President Barry Padgett Talks Procurement with Purpose at #SAPPHIRENOW
through the Ariba system, as well as looking at blockchain and deep neural networks. “Once you
Elsewhere, driving efficiency is going to
get through the basic blocking
remain key, says Padgett. “There’s no getting
and tackling then you really start
around it, we’re still a software company,
to propel your business forward.
we’re still helping our customers create a
And that’s not just for the individ-
more efficient business and drive costs out,”
ual CPO driving value through
Padgett explains. “Throughout the week at
their office, but also pushing
our event we heard a lot of success stories.
competitor differentiations for
There was also some discussion around this
their company.”
idea that the best projects are the ones that
All of this begs the question:
start with internal house cleaning and looking
where does SAP Ariba fit into this
at current business practices before bringing
landscape? “One of the stats we w w w. s u p p l y c h a i n d i g i t a l . c o m
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LEADERSHIP
don’t talk about a lot at SAP is that there are more than 3.3mn buyers and sellers on our network, and there’s a new one added every 60 seconds. Looking at the volume that goes through the network today it’s just over $1.6trn which, if you add up the volume globally of Alibaba, eBay and Amazon, the Ariba network is significantly bigger than all three of them combined,” says Padgett. As part of SAP’s march into the future one of the key things it has done recently is to open access to insights on its supplier risk solution. In Padgett’s own 32
words this forms part of ‘the key to the future of the company’. So, in a nutshell, you’re bringing increased sophistication to people’s programmes and putting the customer in control? “Yes, the customer gets to be the dreamer instead of waiting for Ariba to come up the next great thing. Maybe it’s risk, maybe it’s environmental or a sophisticated piece of specific IP. Or maybe it’s an oil and gas company that has some
future of procurement look like to
really complex procedures with their
Padgett? “I think you’ll see two things:
suppliers to get their things onto its rig,
one, a lot of cognitive technology being
or whatever it happens to be; it can
applied and I think we’ll talk less and
then go to its existing partners and
less about the technology and more
work with them hand in hand.”
about the business impact and how we
As we glance ahead, what does the J U LY 2 0 1 8
drive transparency in the supply chain.
“ ONE OF THE STATS WE DON’T TALK ABOUT A LOT AT SAP IS THAT THERE ARE MORE THAN 3.3MN BUYERS AND SELLERS ON OUR NETWORK, AND THERE’S A NEW ONE ADDED EVERY 60 SECONDS. LOOKING AT THE VOLUME THAT GOES THROUGH THE NETWORK TODAY IT’S JUST OVER $1.6TRN” — Barry Padgett President, SAP Ariba
that relate specifically to purpose. A lot of companies are weaving a ‘business with a purpose’ story into everything they do. It will no longer be a case of ‘we just procure tech and we go fix a problem’ and more ‘we want to do that, but we want it to have some sort of impact on our ethical and sustainable diversity goals’. How does that relate directly to the role of procurement? “A lot of companies are talking about making the world a better place and the impact they have in their communities. Procurement could have a I think this will be in the next cou-
transformative effect on how they interact in
ple of years and there’ll be huge
their communications and how they drive
changes in these challenges that
transparency in the supply chain. I think we’ll
have traditionally been related
see great advances on both these fronts.
to scale.
We’ll solve a bunch of problems through the
“Secondly, we’ll see a lot of interesting things in innovation
cognitive platforms that are becoming widely available to us today.” w w w. s u p p l y c h a i n d i g i t a l . c o m
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TECHNOLOGY
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How to make a source-to-pay solution take off Supply Chain Digital caught up with Swissport CPO Reiner Orth to learn how the airport services supremo is implementing a source-to-pay system on a global roll out WRIT TEN BY
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DAN BRIGHTMORE
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TECHNOLOGY
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hen global leader in airport ground services and air cargo handling
Swissport needed to implement a new solution to provide a reliable and scalable end to end Source-to-Pay system, a stringent audition process began.
manage all of our needs from
“ We’re seeing a huge step forwards here for Swissport with the transparency and traceability of all actions from the purchase requisition to the payment process in one system. It’s a timely boost for our company as we prepare to go public with our IPO”
supplier selection process and
– Reiner Orth CPO, Swissport
Swissport – powered by a 68,000-strong workforce and active at more than 315 stations in 50 countries across five continents – called on KPMG and PwC to help with the selection 38
headache to deliver a unified suite to meet its global needs and support Sales & Operations Planning (S&OP). “We chose Ivalua because it provides us with a comprehensive suite where we are able to
contract management to sourcing and analytics,” reveals Swissport’s CPO Reiner Orth. “For us it’s a tool that won’t just enhance our performance but help us look into areas of the business we haven’t been able to examine fully before.” J U LY 2 0 1 8
Orth explains that all invoices and purchase orders now go through the system, a vital requirement when considering the company’s choice of tool. “We had to link the Source-toPay tool with our existing SAP landscape,” he recalls. “In SAP we keep all the financial and organisational data – all the activity around Source-to-Contract (S2C), Procureto-Pay (P2P) and all the different volume models we manage in Ivalua (S2C – eSourcing, performance management and contract management. P2P – purchase requisition, purchase order, goods receipt and invoicing). The payment process happens in SAP so we need separate interfaces. To make it more complex, our fleet organisation decided to use another tool called Maximo for stock management and spare parts at the airports. This can also be integrated into Ivalua because Maximo has a procurement function allowing staff at the workshops to avoid switching systems.” Orth explains Source-to-Contract is also used to prepare for new industry standards from 2019 when all leasing and rental contracts have w w w. s u p p l y c h a i n d i g i t a l . c o m
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TECHNOLOGY
Who are Swissport? GLOBAL LEADER IN AIRPORT GROUND SERVICES WITH 68,000 EMPLOYEES. ACTIVE AT MORE THAN 315 STATIONS IN 50 COUNTRIES ACROSS FIVE CONTINENTS. SERVED A RECORD 250MN PASSENGERS, HANDLING 4.7MN TONNES OF CARGO AT 133 WAREHOUSES WORLDWIDE IN 2017.
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WORKING ON BEHALF OF MORE THAN 850 CLIENT-COMPANIES, SWISSPORT INTERNATIONAL LTD GROUP GENERATED CONSOLIDATED OPERATING REVENUE OF €2.8BN IN 2017.
to be in a system. “We’ve decided to use Ivalua modules to collect these contracts alongside another tool, a leasing engine, to generate all the data requested by the technical authority.
CLCIK TO WATCH: A Swissport corporate presentation
In our countries of operation, we will not connect Ivalua with old systems, they will all switch to SAP ready for the introduction of Ivalua” Swissport – which served a record 250mn passengers while handling 4.7mn tonnes of cargo in 2017 – is now fully implementing Ivalua in its top 10 countries of operation following a successful pilot in Brazil, with 40 more countries to follow next year. “Each one will roll out with one big bang, not module by module,” confirms Orth. “Based on
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the Brazil pilot we need six months from
roles and responsibilities. “It’s not
pushing the button to get the system in
just that the tool itself will help you, it
place and functioning smoothly.
can help the organisation focus on its
Departments working with the tool have
development to a more mature posi-
been properly trained with high quality
tion,” he adds.
materials. It’s helping us to ensure that
“Not having enough people or the
there will be no problems getting goods
right set up is a constant issue. Driving
or services into our airports on time.”
adoption and making sure those out in
Orth explains the biggest challenge
the field are following processes is key.
faced in driving such a tool across
We need to educate employees that it’s
an enterprise comes in laying the
no longer just about making a call to
groundwork for change, to ensure all
place an order. Every station has to
processes are up and running with clear
define who is entitled to put a purchase w w w. s u p p l y c h a i n d i g i t a l . c o m
TECHNOLOGY
requisition into the system. To that end, we have implemented ‘no PO no pay’ for paper invoices that bypass the system for procurement.” Orth highlights huge benefits to having the Ivalua system in place and a range of key enablers driving the potential for savings in the Source-to-Pay process and enhancing competitive advantage. “Automation across the entire P2P process reduces inefficiencies. In the past we had 20 people in the finance department processing invoices by hand; now we can avoid this repetition – I’m not talking about laying off staff but using resources 42
in the optimum way,” he says. “Standardisation gives us one tool to use around the globe as we roll out with Ivalua. Transparency is enhanced with a faster end to end process from purchase requisition to payment. Everything is traceable in our system – no chance to bypass.” Orth notes that compliance is enhanced because approval steps are required within the process before a purchase order is issued to both procurement and the budget manager, while Spend Management now has a muchimproved view across categories, even those with a small spend. “Previously we had a system that only offered a historic view via invoices. Now we can see all the borderlines in every purchase order helping us to increase J U LY 2 0 1 8
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“ Based on the Brazil pilot we need six months from pushing the button to get the system in place and functioning smoothly. Departments working with the tool have been properly trained with high quality materials… ensuring that there will be no problems getting goods or services into our airports on time” – Reiner Orth CPO, Swissport
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managed spend from 30% to 90% plus,” he adds. “Allied to this, Duty Segregation allows for the provision of duties to specific roles – requestor, purchaser strategic procurement and approver. Responsibility is enhanced, for people
CLCIK TO WATCH: Ivalua – Procurement Technology, Challenges and Requirements
and functions, across the whole process allowing for ease of auditing with an approvals process that must be followed in order for the system to react.” What trends is Orth seeing in the logistics industry around procurement services and S&OP? “The main development we’re seeing is for the automation of many manual processes in operational procurement such as hammering purchase orders into the system.” Orth maintains these jobs will no longer be required in the future so
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“ [Ivalua] …it’s a comprehensive suite where we are able to manage all of our needs from supplier selection process and contract management to sourcing and analytics” – Reiner Orth CPO, Swissport 45
he can focus staff more on the strategic
in pharma or energy with the likes of
aspects of procurement instead of such
Siemens and ABB. “SAP systems are
onerous operational tasks. “We’re see-
always quite complex and can see
ing a huge step forwards here for
users struggle to achieve best perfor-
Swissport with the transparency and
mance, whereas Ivalua is easy to
traceability of all actions from the pur-
manage,” he confirms.
chase requisition to the payment
“All procurement departments at
process in one system. It’s a timely
Swissport who have experienced the
boost for our company as we prepare
different features are quite excited
to go public with our IPO.”
about its potential. We’re actually get-
Spanning a diverse career, Orth has
ting requests from the smaller countries
experienced different tools and sys-
that we implement this tool ahead of
tems in other companies, whether
schedule.” w w w. s u p p l y c h a i n d i g i t a l . c o m
30+ SPEAKERS
INCLUDE
BENEDICTE CROSNIER Director Global Supply Chain Operations Alstom
ERNESTO SCHROEDER ROSAS Global Supply Chain Director Deoleo
IMAD MANZOOR Supply Chain Director Duracell UK & Ireland
KERSTIN GLINIORZ Vice President Supply Chain EMEAI Archer Daniels Midland Company
MARION MATTHEWMAN Head of Global Logistics Syngenta
DR OLIVER PHILIPP Director Supply Chain Strategy Panasonic Europe Ltd.
PHILIPPE LUSSERT Vice President Supply Chain, Danfoss RAC Danfoss
DR SANDRINE TORANDELL Supply Chain Director L’Oréal
VALERIO DAL MONTE Vice President Procurement & Supply Chain Alitalia
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THE LATEST TECHNOLOGIES & STRATEGIES FOR VISIBILITY, FLEXIBILITY AND SPEED
T O P 10
Top 10 US supply chain management courses W RI T T E N BY
HARRY MENE AR
48
We explore the top 10 undergraduate supply chain programmes in American universities, according to a Gartner study. Programmes are evaluated based on ‘Programme Scope’, a measure of the number of attributes taught by the course; ‘Industry Value’, based on internship participation, starting salaries, and media presence; and ‘Programme Size’, taking into account both the number of students enrolled and the number of full-time professors
J U LY 2 0 1 8
49
w w w. s u p p l y c h a i n d i g i t a l . c o m
T O P 10
09
University of Western Michigan 23,914 Students UWM enrolled 23,914 students in 2014 and its Integrated Supply Chain Man-
10
University of Wisconsin 43,338 Students 50
agement Programme graduates 85-95 students annually. The programme was the first of its kind to integrate business and engineering courses in 1992. Software Advice ranked the programme at second in the United States in 2015 for
Located in Madison, the University
its emphasis on technology, software,
has a total student enrollment of
and quantitative tools. The ISM curricu-
43,338 as of 2016, with 17 enrolled
lum focuses on product assurance,
in the supply chain management pro-
managing and improving supply sys-
gramme. Seven of these students are
tems, and productivity techniques, as
international, with fewer than half
well as offering courses on international
being Wisconsin residents. UWM’s
business law. In 2016, 93% of ISM
course focuses on Logistics, Procure-
graduates achieved full-time employ-
ment, and Marketing courses, with
ment within three months, with salaries
opportunities to specialise further in
ranging from $55,000 to $60,000.
Product Development, Operational
Click here for the course overview
Analytics, and Service Operations Management. The average starting salary for graduates in 2014 averaged $53,000, with the average internship salary was $2,800 per month, placing it below the national average. Click here for the course overview J U LY 2 0 1 8
07
University of South Carolina 33,772 Students The University of South Carolina, in Columbia, enrolled 33,772 students in 2015. USC’s supply chain management programme is ranked joint-second by Gartner for programme scope, and joint-third for programme size. The programme focuses heavily on Lean
08
Ohio State University 66,046 Students
systems, Six Sigma methodologies and business re-engineering process improvement approaches, logistics, and management. Undergraduates also have an opportunity to apply these skills by means of a Capstone consulting
The OSU’s student enrollment in 2016
project. The average graduate earns
was 66,046, with 15.5% majoring in
a salary of $57,070, above the Gartner
Business at the Fisher College of Busi-
average.
ness. OSU’s supply chain management
Click here for the course overview
course is closely linked with logistics, with six available logistics classes out of 15, two of which are mandatory. 85% of supply chain management/ logistics students leave OSU with internship experience. Graduates have an average income of $52,295, putting it slightly below the national average. Click here for the course overview w w w. s u p p l y c h a i n d i g i t a l . c o m
51
T O P 10
05
Rutger’s Business School 68,942 Students Rutger’s Business School enrolled 68,942 students last year, with 726 undergraduates studying supply chain
06
Georgia Institute of Technology 52
26,839 Students
management. The college awards over 150 scholarships a year for supply chain management students. The programme’s participants have also placed first and third in the Rutgers Ten Plus Supply Chain Case Dual Challenge and
Gartner ranks The Georgia Institute
Sam M. Walton College of Business
of Technology, Atlanta, joint first in
International Graduate Logistics Case
the US for programme size, account-
Competition, respectively. Rutger’s sup-
ing for both full-time students and
ply chain management programme has
teaching staff. It is also joint-second
a yearly internship placement rate of
for industry value. GIT’s supply chain
over 95%, and counts IBM, Johnson
management course places empha-
and Johnson, Verizon among its intern-
sis on management, engineering,
ship opportunities. According to a 2012
and logistics. Students participate in
Bureau of Labor study, Rutgers supply
the Capstone project, identifying and
chain management graduates earned
solving real world industry problems
a median salary of $78,000.
in conjunction with external spon-
Click here for the course overview
sors. Upon graduation, Georgia Institute of Technology students earn upwards of $55,000 with a Bachelor’s degree in business. Click here for the course overview J U LY 2 0 1 8
03
University of Tennessee 250 Students
04
Arizona State University 71,946 Students
The University of Tennessee’s supply chain management programme is ranked first in the United States for programme scope, and is joint-second for programme size, graduating over 250 students in 2015. The programme
ASU had an attendance of 71,946 in
maintains its third-place position over-
2016, with 620 studying supply chain
all in the Gartner rankings from the
management in 2013. Gartner’s study
2014 survey. In addition to broad-
ranks ASU joint-second in programme
focus general studies over the first two
size and industry value, and joint-third
years, the UTK course (hosted by the
for programme scope. Arizona state’s
Haslam Business College) specialises
programme is also one of the top three
in Information Management, Human
upward movers on the Gartner list
Resource Management, and Interna-
since 2014. The programme is run
tional Business. Chad Autry, head of
through the W.P. Carey Business
the department of marketing and sup-
school, and emphasises a diverse cur-
ply chain management, claims: “Our
riculum, as well as extracurricular
faculty puts out relevant, innovative
involvement in over 45 business clubs
research and teaches students to
and organisations. Graduates typically
make an impact after graduation.”
earn between $40,000 and $60,000.
Graduates in Supply Chain Manage-
Corporations that commonly recruit
ment earn a mean salary of $52,000
from ASU include: Exxon, Intel, Gen-
per annum, with a comparably low full-
eral Electric and Motorola.
time employment rate of 55%.
Click here for the course overview
Click here for the course overview w w w. s u p p l y c h a i n d i g i t a l . c o m
53
T O P 10
02 54
Michigan State University 39,000 Students
Michigan State University enrolled over 39,000 undergraduates in 2017, with over 8,000 students at the Eli Broad College of Business. Supply Chain Management undergraduates comprise 44% of the student body. The programme is ranked first by Gartner for Industry Value and is joint-first for Programme Size. The MSU Supply Chain Management programme provides a curriculum focused on manufacturing operations, purchasing, transportation, and physical distribution into a unified programme. The Programme achieved a 100% internship placement rate in 2017, with an average base salary of over $6,000 per month. Broad College graduates have an 85% employment rate post-graduation, and the mean salary for Supply Chain Management graduates is over $101,000 per annum, placing the school far above the national average. Click here for the course overview J U LY 2 0 1 8
01
Pennsylvania State University 100,000+ Students
Pennsylvania State University enrolled almost 100,000 students in 2015 and accepted over 600 students into its Supply Chain & Information Systems programme in 2014. Gartner ranks the programme joint-second for Industry Value and Programme Scope, and joint-first in the Programme Size category. Established in the 1950s, PSU has evolved “from a post-World War II focus on the logistics of transportation, warehousing, and inventory management, to a broadened view incorporating sourcing and distribution, to a holistic vision of supply chain as an end-to end collaborative enterprise.� Classes still provide increased focus on logistics frameworks, but also explores statistical analysis and leadership techniques. As of 2016, graduates experienced an 86% employment rate, with an average salary of over $59,000, beating the national average. Click here for the course overview
w w w. s u p p l y c h a i n d i g i t a l . c o m
55
EVENTS & A S S O C I AT I O N S
The biggest industry events and conferences WRITTEN BY ANDREW WOODS from around the world
21-22 AUGUST
ProcureCon Direct 2018
[ RANCHO BERNARDO INN, SAN DIEGO, CA ]
The only dedicated direct procurement conference 58
10—12 JULY
in North America... Pro-
ProcureCon 2018
cureCon Direct is the only
[ SENTOSA ISLAND, SINGAPORE ]
senior-level conference
ProcureCon Asia returns with a focus on Digital Trans-
solely dedicated to the
formation and Future Proofing Your Procurement
unique challenges facing
Strategy.
direct sourcing and pro-
Did you know that more companies register to attend
curement. Building upon
ProcureCon Asia than join any other procurement
the successful 17-year his-
conference in Asia? This July, connect with over 200
tory of ProcureCon
CPOs and Heads of Procurement who are facing the
conferences, ProcureCon
same challenge you are –positioning your company’s
Direct is customised for
procurement team for success. If you can only attend
those handling commodi-
one procurement conference this year why would you
ties, components and raw
attend anything else?
materials.
https://procureconasia.wbresearch.com
www.powergenafrica.com
J U LY 2 0 1 8
59
4-7 SEPTEMBER
Supply Chain Insights Global Summit8 [ CHEMICAL HERITAGE FOUNDATION, PHILADELPHIA, PA, USA ]
This supply chain management conference is a unique event designed for supply chain leaders and features two tracks: Cognitive Computing & Machine Learning Workshop and Blockchain & Bitcoin Workshop on Day 1, with networking, activities, speakers, case studies, and much more woven throughout the four days. Please note, this event is limited to 35 technologists, consultants, and 3PLS. www.supplychaininsightsglobalsummit.com
w w w. s u p p l y c h a i n d i g i t a l . c o m
EVENTS & A S S O C I AT I O N S
11-12 SEPTEMBER
NASCES18 North American Supply Chain Executive Summit [ THE WESTIN CHICAGO NORTH SHORE, USA ]
The North American Supply Chain Executive Summit series has grown to become the most senior and diverse gathering of supply chain executives anywhere in the 60
world. Based on an ever-growing network of referrals and recommendations, the North American Supply Chain Executive Summit is designed and built by Executive Platforms to bring together the right people from across a number of different industries to network, benchmark, learn, and share with one another. The content of the agenda revolves around universal challenges and opportunities relevant to the entire audience as identified by an advisory board drawn from regular attendees. Additional opportunities to engage and connect both formally and informally with peers is facilitated across both days through themed lunchand-learn roundtable discussions, prescheduled one-to-one meetings, sector-specific focus groups, drinks receptions, executive dinners, and more. Executive Platforms is confident all our attendees will find value in taking two days away from their offices to meet in Chicago with executives they would never otherwise have a chance to speak with before returning to their working lives with new ideas, innovations, and inspirations that will help them do what they do best.. https://scl-summit.com
J U LY 2 0 1 8
18—20 SEPTEMBER
Indonesia Transport, Supply Chain & Logistics 2018 [ JAKARTA INTERNATIONAL EXPO, KEMAYORAN, JAKARTA, INDONESIA ]
The North American Supply Chain Executive Summit series has grown to become the most senior and diverse gathering of supply chain executives anywhere in the world. Based on an ever-growing network of referrals and recommendations, the North American
23–25 SEPTEMBER
ple from across a number of different industries to
Gartner Supply Chain Executive Conference
network, benchmark, learn, and share with one another.
[ LONDON ]
The content of the agenda revolves around universal
Gartner Supply Chain
challenges and opportunities relevant to the entire
Executive Conference is
audience as identified by an advisory board drawn from
the world’s most impor-
regular attendees. Additional opportunities to engage
tant gathering of supply
and connect both formally and informally with peers is
chain leaders, discussing
facilitated across both days through themed lunch-
how disruptions large
and-learn roundtable discussions, prescheduled
and small confront
one-to-one meetings, sector-specific focus groups,
today’s supply chains on
drinks receptions, executive dinners, and more.
a daily basis and how
Executive Platforms is confident all our attendees will
‘organisational survival
find value in taking two days away from their offices to
depends on the ability to
meet in Chicago with executives they would never oth-
anticipate, adapt, and
erwise have a chance to speak with before returning to
transform supply chains
their working lives with new ideas, innovations, and
to deliver reliability and
inspirations that will help them do what they do best.
performance’.
www.transport-supplychain-logistics.co.id/
www.gartner.com/events
Supply Chain Executive Summit is designed and built by Executive Platforms to bring together the right peo-
w w w. s u p p l y c h a i n d i g i t a l . c o m
61
EVENTS & A S S O C I AT I O N S
15-17 OCTOBER
MHI Annual Conference [ GRANDE LAKES, FLORIDA, USA ]
30 SEPT–3 OCT
62
MHI Annual Conference will focus on key
CSCMP EDGE 2018
themes identified by the US Roadmap
[ NASHVILLE, USA ]
for Material Handling & Logistics and the
- Discover over 100 forward-thinking
MHI Annual Industry Report including:
sessions covering real world strategies
• Industry 4.0
implemented to maximise and transform
• Building the Future Supply Chain
supply chains and learn from some of the brightest academics and practitioners in supply chain today. ‘The Council
Workforce • The Current and Future State of Distribution Center Technology
of Supply Chain Management Profes-
Marketing in the Supply Chain Industry
sionals (CSCMP) hosts the must-attend
You’ll learn how to incorporate these
supply chain event of the year — CSC-
trends and innovations and seize new
MP’s Annual Global Conference, EDGE.
opportunities that produce tangible
From leading-edge content to cutting-
results. You’ll also have the opportunity
edge supply chain solutions, EDGE
to participate in Product Group and our
reflects the unparalleled resources
Solutions Community meetings that help
CSCMP offers today and symbolises
shape the future of our industry. The con-
our unwavering commitment to supply
ference will feature four keynotes and six
chain in the future.’
conference tracks.
www. cscmp.org
www.mhi.org/conference
J U LY 2 0 1 8
63
31 OCTOBER
CIPS SM AWARDS
[ QUEEN ELIZABETH II CONFERENCE CENTRE, BARBICAN, LONDON ]
Chris Bell FCIPS, Commercial Director – City of London Corporation, one of this year’s judges, and winner of the ‘Procurement and Supply Management professional of the year 2016’, will chair the day while presenters from the various winning organisations will deliver case studies. www.cips.org/en-gb/event
w w w. s u p p l y c h a i n d i g i t a l . c o m
ADDING VALUE OF DIVERSITY & INCLUSION IN SUPPLY CHAINS THE UK’S LARGEST SUPPLIER DIVERSITY CONFERENCE For over 10 years, MSDUK have been dedicated to improving diversity in entrepreneurship and driving inclusive procurement. We believe that supplier diversity is an economic and moral imperative. Innovation comes from a diversity of perspectives, so when we limit who can contribute, we in turn limit what problems we can solve. Diversity within supply chains can not only bring new ideas and solutions to any organisation, but it also brings competitiveness, and boosts market growth. Beyond these commercial benefits, there is the BIG social value supplier diversity brings - reducing socio-economic inequality and creating stronger, more stable communities. MSDUK welcomes a global audience to the 2018 Conference & Awards in Birmingham. The twoday event is a must-attend conference for Ethnic Minority Businesses (EMBs) and Corporations looking to drive inclusive procurement and connect with diverse like-minded businessmen and women. Join our conference of diverse entrepreneurs, supply chain leaders, thinkers and doers and realise the power of differences.
HIGHLIGHTS • Full Day Business Exhibition with break-out meet the buyer and silent workshops by industry experts. • Knowledge Forum with stimulating panel sessions, fire-side chat with inspiring entrepreneurs and interactive workshops around supplier diversity and business growth. • Eagerly awaited finale of MSDUK 2018 Innovation Challenge bringing 10 most innovative entrepreneurs pitching their ideas to investors and supply chain experts • Glittering Business Awards night celebrating supply chain diversity and best of ethnic minority businesses combined with food and entertainment from all across the world proactively look for ways to bring different voices to our team and into our decisions.
Join over 600 delegates from all across the world, including Chief Procurement Offices, senior sourcing professionals, global diversity and inclusion leaders, policy makers, academics and hundreds of inspiring, innovative and successful ethnic minority entrepreneurs!
FIND OUT MORE AND REGISTER AT CONFERENCE.MSDUK.ORG.UK
INNOVATION | KNOWLEDGE | PROCUREMENT | BENCHMARKING BIRMINGHAM 25-26 SEPTEMBER
HOW
BEST PRACTICE PROCUREMENT IS DRIVING GROWTH AT CUSHMAN & WAKEFIELD
Cushman & Wakefield, following a major merger, is reimagining its global business to reflect the depth and reach of its property management portfolio, and supply chain transformation has been crucial to this process Written by John O’Hanlon Produced by Glen White
C U S H M A N & W A K E F I E L D A PA C
T
68
he built environment is a great metaphor for globalisation. It’s getting axiomatic to say that the great cities of the world are becoming more alike, and that if you were to be dumped at random in any one of them the buildings alone would not be a sufficient clue to where you were. Populations are migrating to these environments because this is where the industry, commerce and housing is all concentrated and as a result, cities are getting larger, sometimes exponentially as populations explode. Global businesses have one thing in common – they need premises, offices, factories or shops. Another thing is that, totally dependent as they are on getting the working environment right, securing and maintaining and managing those premises is very unlikely to be their core business. They universally resort to the services of a specialist to source, negotiate and eventually manage their premises, whether these are rented, leased or owned. It was in 1917 that J Clydesdale Cushman and Bernard Wakefield went into the real estate business together in New York. A measure of its success is the number of times it has been acquired by J U LY 2 0 1 8
larger groups – most recently in 2015 merging with another long-established global real estate services provider DTZ, backed by the privateequity giant TPG to create a company in contention to become the world’s largest company in its space. The strength of the Cushman & Wakefield brand is recognised in its adoption as the name of the new entity, which has an annual turnover of more than $6bn and some 45,000 employees. The year following the merger, 2016, saw the company transact over $191bn in deals and today it has a total of around 4.3bn sq ft of commercial property under management. Cushman & Wakefield’s clients include many if not most of the biggest global businesses, including the likes of Unilever, Nokia, Lego, Coca-Cola, Nomura, Zurich Insurance, Rolls-Royce or Shell Oil (for whom Cushman & Wakefield negotiated the largest office space lease in the world in 2011). It’s also a truism to state that companies like this would not place a business-critical asset in the hands of a firm they did not trust implicitly.
ANZ
RAP Video
69
w w w. s u p p l y c h a i n d i g i t a l . c o m
LEADING PROVIDER OF FACILITIES MANAGEMENT ACROSS AUSTRALIA
We take complete ownership of our clients’ projects, with passion and a commitment to excellence. This means meticulously scheduled maintenance checks, with a rapid response team ready for anything that needs attending to: any time, on time. And because integrity is everything, each of our clients has a dedicated account manager, keeping you updated in real time and ensuring you have just one point of contact for your whole portfolio.
Ph: 1300 266 387 | www.modusprojects.com.au • SYDNEY • MELBOURNE • BRISBANE • ADELAIDE
ANZ
TRANSFORMATION FUNDAMENTALS
The firm has a global policy, delivered through offices in 70 countries divided into major regions. Each of these offers nine core services in 21 sectors from airports to technology. Clearly the importance of each of these sectors will vary depending on the region, but all of them are well represented in the Asia/Pacific (APAC) business, which covers the burgeoning aspirations of India and Vietnam as well as the mature markets of Singapore and Australia and New Zealand (ANZ).
Stuart Smith Chief Procurement Officer – APAC
Stuart Smith is an executive manager and project director offering proven success realising strategically important mandates for multibilliondollar businesses. He leverages a diverse, international career history that spans procurement, property and facilities management, organisationwide transformation and large-scale program management to establish and implement effective operating models for future state success.
The merger with DTZ presented an attractive opportunity to Stuart Smith, a procurement professional with more than 15 years’ experience in property supply chain leadership, when he was appointed to the job of Chief Procure-
was also very interested in the own-
ment Officer (CPO) APAC, based at
ership structure,” Smith says.
Cushman & Wakefield’s Melbourne
“Being owned by a private equity
office. His role is to lead ANZ in pro-
firm meant that the whole organisa-
curement capability development as
tion, not just procurement, was
well as integrating APAC opportunities
going through a transformation and
as part of the company’s unified
a culture change. I could see that
regional programme of procurement
procurement would be a big part of
initiatives and maturing category strat-
that: I was keen to see how I could
egies. It was a huge opportunity to
contribute to that journey.”
overlook a very large regional spend. “I
The company’s brand reputation w w w. s u p p l y c h a i n d i g i t a l . c o m
71
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Rentokil Initial’s commitment to protecting people and enhancing lives, is the promise we make to our customers and to our colleagues every day. We protect people from the dangers of pest-borne disease, the risks of poor hygiene or from injury in the workplace. We enhance lives with services that protect the health and wellbeing of people, and the reputation of our customers’ brands.
rentokil-initial.com
ANZ
and relationships depend on the pro-
expectations, transferred up and
cesses and partnerships it manages
down the supply chain, is where I
throughout its supply chain. “We see our
want procurement to go.” Lever-
vendors as strategic partners to our own
aging people, processes and
success,” says Smith, as he introduces
systems, aligned with Cushman &
the transformation he is leading, with
Wakefield corporate policy, is the
enthusiastic support from the APAC
way to achieve this, he says.
leadership and in line with global strategic goals. “This is about more than
DIGITISING CORE
saving money. It is about trying to line up
PROCESSES
functionality with company strategy, as
Technology is the backbone of
an integral part of our clients’ success. If
efficiency in our times. While
we don’t manage our vendors well and
outputs and IP remain in the hands
help them understand what we are trying
of the teams, technology is what
to achieve then the outcome is going to
drives the process. Cushman
be detrimental to us. Seamlessness of
& Wakefield’s global intranet is
w w w. s u p p l y c h a i n d i g i t a l . c o m
73
C U S H M A N & W A K E F I E L D A PA C
Cushman & Wakefield Australia: Be What’s Next
74
a powerful platform that carries all of the
on refining our panel agree-
templates, vendor registration and compli-
ments. To do that we need to
ance documents and other tools that help
give our category leads band-
to automate processes that used to
width. The account procurement
happen manually.
teams can deliver client expec-
Smith obtained permission to replicate that
tations in the field while our
portal, “Advantage” in the Australia network:
category strategy teams man-
“I wanted to find an effective means of com-
age the whole client portfolio /
munication to save our team being disrupted
vendor relationship. The tech-
by phone calls and emails on a regular basis
nology advantage was key to the
with the same question.
separation of roles, allowing our
“The team is now able to focus on the delivery of new outputs and the develop-
people to work more creatively.” Spend cube analysis is
ment of new tools and products and
another key enabling technology.
commercial outcomes. I want them to be
This brings visibility to complex
focused on developing vendor relationships
client requirements and expecta-
J U LY 2 0 1 8
STUART SMITH’S TOP TIPS FOR TRANSFORMATION 1. Discovery and preparation Don’t rush, particularly if you joined an organisation looking for a ‘transformation’. What does the transformation mean to the various staff, team, vendors, executive and other stakeholders. Most likely everyone will refer to outputs or KPIs of the function. These are consequences of transformation, therefore your role must be to identify gaps and address opportunities in the fundamental governances and foundation operating model, that will in-turn result in those desired consequences. If you approach a Transformation transfixed on savings or speed to delivery or client relationship scores, then you will likely have short term achievement but with volatile results, and inability to sustain the change. 2. Balanced and rounded Your transformation Journey, will comprise many initiatives, each one chipping away at the enormity of the project, and providing manageable pieces for each person to Innovate, own and deliver. Most will be inter-related to other initiatives, and so coordination across initiatives by a formal program is critical. When identifying the initiatives, you need to ensure you have captured capability pillars of people, process and systems to have a rounded and holistic transformation journey. 3. People - innovation, ownership and delivery You might be the lead of the transformation Journey, but its success rests in both the people actioning initiatives, and people accepting the change. You will need to achieve both actioning and accepting the journey, by entrusting and empowering the team to be their own drivers of the journey. You must inspire them to innovate. You must encourage them to be brave to own their initiatives of the journey. You must hold to account the delivery to the standards upon which the next/future initiatives are able to rely on for their own success. 4. Simplified objectives, with manageable pieces The objective of your transformation Journey needs to be framed in a way which is universally understood and believed, not just by expertise in your function, but by the entire stakeholder group to the journey and its outcomes. The idea being to agree the objective, but quickly be able to articulate the journey by a series of initiatives that manage the improvements needed in each pillar (people, process, systems), and have a manageable timeframe to each initiative’s completion. 5. Don’t forget BAU All too often the journey is more enticing than business-as-usual (BAU). It’s exciting, innovation, the buzz topic… but BAU cannot suffer. The journey needs to result in an improvement, but not on the basis of losing further ground on BAU performance.
75
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ANZ
tions, allowing effective contract life
ing that objective to the business
cycle management and integration with
and the team, and then breaking
the J D Edwards ERP platform. There’s
that journey down into manageable
plenty of data available fed back from
phases.” Policies and procedure
financial and operational communica-
for APAC were, however, decided
tion in the field, but many systems still sit
in conjunction with the global
in isolation, Smith feels: analytics draw
teams and the executive leaders of
these together. He gives a simple exam-
the business worldwide. Smith’s
ple: “It’s nearly impossible to compare,
leadership role included making
when asked, our rate per square metre
sure that his team had
against a benchmark
ownership of the jour-
figure without linking
ney, were clear about
commercial with opera-
the objectives and
tional performance. No current system does that but without that link you can’t benchmark relia-
Year founded
1917
that each of the three pillars, (People, Process, and Technology / Systems) advanced
bly.” Benchmarking
hand in hand, at the
client commercial per-
same pace.
formance against
The ‘bite-sized’ approach proved
varying scopes of works is an as yet
effective, for example when consid-
uncracked nut but he has it in his sights.
ering procedures: “We took our large procedures document and
THE JOURNEY
broke it down into a user-friendly
When Smith came in to lead APAC in
form both for ourselves and for our
2017, he found a procurement team
stakeholders.” Getting the technol-
with a strong desire to be at the centre
ogy in place to support these
of the change process but without
changes is a work in progress,
a clear idea of the corporate goals. “My
though advances have been made.
role was to bridge the gap by directing
A whole new system whereby ven-
people towards the objective, articulat-
dors manage their improvement w w w. s u p p l y c h a i n d i g i t a l . c o m
77
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ANZ
THE CUSHMAN & WAKEFIELD ADVANTAGE:
• Consistent delivery across multi-market client portfolios • Timely delivery of value conclusions • Compliance with financial regulatory requirements • Valuations based on access to constantly updated market data
and compliance via Rapid Global, an
whose services could be met by our
Adelaide-based partner, is in place.
strategic panel partners.
Compliance monitoring had been a big
The creation of panels made up
issue, with some vendors, particularity
of vendors with whom Cushman &
those used less frequently, not keeping
Wakefield has a strategic relation-
the necessary registrations and licences
ship in each of its 21 major
up to date. “We are looking at new tools
categories has driven further value.
to take up the next evolution of Rapid
Cleaning, for example, is one of the
Global and have reinvigorated our inter-
largest categories. “We have
nal compliance committee,” Smith says.
around 230 cleaning organisations:
The results so far have seen compli-
our strategic category panel for
ance performance improve by 35% over
cleaning now has no more than 15.
the last six months alone. Another posi-
Our panel agreements are more
tive outcome was reducing the entire
than just commercial contracts –
ANZ vendor base by 25% by removing
they focus more on driving value,
those suppliers whose compliance lev-
for us as well as for the clients.”
els had been identified as wanting, and
Standardised service level agreew w w. s u p p l y c h a i n d i g i t a l . c o m
79
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ANZ
ments (SLAs) and KPIs, not focused purely on operations but the breadth of service delivery attributes, (saftety,
As long-term partners of Cushman and Wakefield ARA Indigenous Services and ARA Property Services provide integrated cleaning and property maintenance services.
finance, risk…..), and ensure we have available agreed standardised scopes of work. All C&W staff have access through the Advantage portal to all the templates and standards they need,
Now as part of the ARA Group, we provide reliable solutions for facilities and infrastructure. Our extended service offering includes: Security, Fire, Electrical, Building, Mechanical Services and Products.
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field has their interests at heart.
dures on how to use these resources effectively. This helps ensure that no service parameters are missed, and as a consequence the clients are secure in the knowledge that Cushman & WakeThis drives competitiveness. “Many of our competitors don’t have that fully integrated supply chain procurement model,” explains Smith. “They are expediting the requirements of the client to
We listen, question and act, forging partnerships built on open communication and trust.
the vendor and back again with no real
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sophistication in defining the scope of works, and missing the opportunity each layer in the Supply Chain, including our expert teams and integrated vendors.” Vendors are empowered to suggest improvements, and clients are able to manage their own expectations, he adds. “Some of our clients are large enough to have dedicated procurement w w w. s u p p l y c h a i n d i g i t a l . c o m
81
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ANZ
resources, and at larger clients we have embedded Cushman & Wakefield procurement specialists and managers. But we have an obligation to ensure that our strategy and category value offering works for largest through to the smallest clients. As the client accounts get smaller the need for an individual dedicated resource reduces, so we have a floating team who handle multiple accounts to ensure they have available direct access to our panel vendors for their own procured services.” LOCAL SOURCING TO LARGE CLIENTS
‘Think global and act local’ is
“MY ROLE WAS TO BRIDGE THE GAP BY DIRECTING PEOPLE TOWARDS THE OBJECTIVE, ARTICULATING THAT OBJECTIVE TO THE BUSINESS AND THE TEAM, AND THEN BREAKING THAT JOURNEY DOWN INTO MANAGEABLE PHASES” 83 – Stuart Smith, Chief Procurement Officer – APAC
nowhere more important a mantra than in APAC. It’s a critical part of Cushman & Wakefield strategy to support indigenous businesses. At the end of 2017 the company
approximately $25mn with indige-
launched its Reconciliation Action
nous businesses across its supply
Plan (RAP). This pledged to provide
chain, and now Smith is determined
employment and training opportuni-
to go deeper. In 2017 he made a
ties, build community awareness, and
presentation at the annual confer-
facilitate collaboration with Aboriginal
ence of Supply Nation, Australia’s
and Torres Strait Islander Australians.
leading diversity organisation,
Since 2015, Cushman & Wakefield, in
exploring how indigenous busi-
partnership with its clients, has spent
nesses might evolve and what they w w w. s u p p l y c h a i n d i g i t a l . c o m
C U S H M A N & W A K E F I E L D A PA C
should consider in their tendering pro-
ment category panel, we then
cesses. “Our indigenous procurement
engage with Supply Nation and
policy is a supply chain promise to indig-
those larger industry representative
enous communities nationwide,” he says.
bodies to turn-key solutions in this
At least four of the 15 organisations we mentioned earlier in Cushman &
Smith started by dropping some
Wakefield’s cleaning category panel are
big names. Cushman & Wakefield
certified by Supply Nation as bona fide
has just signed up a major regional
indigenous-owned enterprises. Com-
mining corporation to
panies such as ARA
it’s client portfolio, but
Property Services,
what is different about
founded in 1994, sit alongside equally well-
43,000
established cleaning 84
alignment.”
firms as GJK Facilities
Number of employees at
that is the regional operating model of this client, which before the merger might have
on this panel. His aim is
been difficult to
to achieve an equiva-
accommodate. “We
lent level of
have a procurement
representation on each
manager in Australia who is liaising
of the category panels.
our APAC sister companies in
Firms that are too small to make the
development of the Client pro-
panels on their own still participate
gramme of procurement initiatives
through structured relationships with
to achieve contracting model they
major indigenous business’s and facilita-
want,” Smith explains.
tors like Supply Nation. “We have
“The challenge is to deliver com-
separate indigenous panels,” Smith says.
mercial benefit and consistent
“They are not category specific, but
performance, not just across Aus-
where a client wants to use an indigenous
tralia but across the Asia Pacific
organisation across multiple services or
region. Having an integrated APAC
on a consolidated site model, for which
model is a fundamental benefit of
we can’t quite see a place in a procure-
our transformation journey. We are
J U LY 2 0 1 8
ANZ
“I WANT TO START BUILDING STRONGER RELATIONSHIPS BETWEEN THE SENIOR LEADERSHIP TEAMS ACROSS THE REGION” – Stuart Smith, Chief Procurement Officer – APAC
no longer talking of countries as silos,
30% by increasing the strength of
but engaging with a large client to lever-
strategic relationships. Adoption
age our categories and operating
and engagement of our 220 panel
model.” The deal is setting a benchmark,
vendors is due to grow by 65%, and
he adds. From this year on, more clients
Smith believes this will be
will be coming on board to take advan-
exceeded. “These are the key tar-
tage of Cushman & Wakefield’s APAC
gets for ANZ and more broadly. We
operating model, delivering consistent
have a very good team in ANZ and
services, tools, vendor strategies and
an excellent relationship with the
category strategies.
country procurement leads. I want
In this encouraging environment Smith
to start building stronger relation-
is confident that his teams will be able to
ships between the senior leadership
achieve further savings in the supply
teams across the region and drive
chain over and above the 67% year-on-
consistent integrated operating
year increase they managed last year.
model, standards in scopes of work,
Indigenous engagement will double. The
consistent SLAs and KPIs.”
vendor tail will be reduced by a further w w w. s u p p l y c h a i n d i g i t a l . c o m
85
BRINGING AGRICULTURE into the DIGITAL AGE WRITTEN BY
LAURA MULLAN PRODUCED BY
DENITRA PRICE
With smart machinery and robotics, Kuhn Krause is resolving the agriculture sector’s biggest pain points and meeting the demands of digitisation
KUHN KRAUSE
D
igitisation is transforming businesses across the globe – and the
the time savings, the agronomic
agriculture sector is no exception.
focus that we take in designing
With the world’s population mushrooming, consumer demands changing, and commodity prices becoming more volatile, the
and building our machinery,” he adds. Looking forward, the digital
agriculture sector is being pushed beyond tra-
agriculture market is expected to
ditional business models into the digital age.
triple in size to $15bn by 2021,
With 100 years’ experience in manufactur-
according to PA Consulting.
ing farm machinery, Kuhn Krause is a melting
With this in mind, Director of
pot of traditional agricultural values and tech-
Operations, Eddie Smith, says he
nological innovation.
has seen a seismic shift in the
It is perhaps this unique perspective which has thrust the American firm into the spotlight 88
“It’s all about the profitability,
way farmers operate. “I think we’ve seen a dynamic
as one of the leading agriculture and farm
change in the way farmers
machinery manufacturers in the market today.
approach business,” he explains.
“No matter what segment of the agricultural
“They’re no longer just trying to
industry we’re in, our mission is to build the
make a living for their families but
best equipment and deliver the best customer
are now increasingly looking
experience with that equipment,” explains
towards more technical aspects
Marketing Director Curt Davis.
of farming.
“That really comes from identifying and
“I think they’re better educated.
understanding the customer, understanding
They’re business people and they
their needs and providing the equipment that
run the farm more like a business.
solves the everyday problems many of the
They have expectations that their
farmers face with their operations.
fathers or their grandfathers
“This mindset helps us to create a differenti-
didn’t have, and so they are look-
able product in the marketplace, so that when
ing to derive value. They’re
a customer hears about our equipment they
looking for the latest and greatest
will immediately say to themselves, ‘This is the
technologies that can give them
solution I’ve been looking for’.
profitability.”
J U LY 2 0 1 8
USA
The agriculture sector is a difficult one to be in, but Davis believes technology is key to realising the market’s financial potential. “It’s paramount to have a good experience with the equipment, but it’s also important that customers realise the value and return on their equipment investment,” he says. “In today’s agricultural market, commodity prices are somewhat depressed. This is a worldwide situation, not just in North America, and so it’s very important for our customer to stay profitable. “They want to invest in machinery that is going to improve their profitability and decrease their cost of investment, whether it be through time, fuel or labour.”
“ It’s all about the profitability, the time savings, the agronomic focus that we take in designing and building our machinery.” — Curt Davis, Director of Marketing and Product Management
Whether it’s creating state-of-the-art equipment for livestock feeding and bedding, tillage, planting and seeding, crop protection and more, it seems innovation runs deep at Kuhn Group.
w w w. s u p p l y c h a i n d i g i t a l . c o m
89
KUHN KRAUSE
“The sheer fact that Kuhn Krause has prospered for such a long period of time is a testament to the product and the people at the facility” — Eddie Smith, Director of Operations
90
This is clearly demonstrated by the firm’s cutting-edge manufacturing facility. By investing in smart machines, Kuhn Krause’s technology provides operators with “instant feedback on the performance of
weld cells are helping to provide feedback, speed up operations and produce better quality products. “With all this technology, we
machines,” says Smith, which makes the
haven’t replaced any workers,”
manufacturing process faster and more effi-
Smith continues. “It has actually
cient.
given us more flexibility with our
Meanwhile, the firm’s million-dollar investment in smart machining centres and robotic J U LY 2 0 1 8
workforce and has improved our productivity and efficiency.
USA
Kuhn – Invest in Quality 91
“The integration of technology is
standardising, sustaining and upholding
helping us make the interface
safety – the agricultural equipment firm is
between man and machine more
focusing on what matters: its products.
productive.” Pushing its efficiency further, the
In conjunction with this, Smith also champions the company’s use of Gemba walks, to
team at Kuhn Krause has also
gain insight into what’s happening on the
implemented a clearer, lean way of
shop floor.
working. Adhering to the 6S method of sorting, setting in order, shining,
“One of the main things we’ve done is that we set up a model area in each department,” Smith adds. w w w. s u p p l y c h a i n d i g i t a l . c o m
KUHN KRAUSE
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USA
“When a customer hears about our equipment they will immediately say to themselves, ‘This is the solution I’ve been looking for’” — Curt Davis, Director of Marketing and Product Management
“Once we validated that a process was converted and changed using
the skills and expertise of its team. “The sheer fact that Kuhn Krause
the lean methods, then we would
has prospered for such a long
expand it to other areas in that
period of time is a testament to the
department. When we wanted to
product and the people at the facil-
change something, we always went
ity,” observes Smith.
back to the model area to change it. “We also introduced spaghetti dia-
“I think from a manufacturing standpoint, one of the challenges
grams to reduce the flow or waste of
we’ve had is adapting to the differ-
time of material moving from point A
ent generations of workers
to point B. We had over a 40%
because today we have some
reduction in one department, in one
workers that are celebrating their
area, just by doing that.”
45th year with the firm. In some
Technology and new business
cases, we have taken our sea-
models have undoubtedly trans-
soned workers and placed them
formed the business, but when it
alongside some of the younger
comes to the success of Kuhn
workers to let them learn the new
Krause, the pair both also point to
technology. They’ve been very w w w. s u p p l y c h a i n d i g i t a l . c o m
93
KUHN KRAUSE
receptive to doing that.” “Finding good people is always a challenge,” adds Davis. “It seems like in today’s world if you can find a good foundation of character, work aptitude and knowledge about the business, you can begin to build upon that with the specific things that they need to know for the industry and the company. It’s a constant challenge to find good people and to retain them but we’ve managed to
Over
350
94
employees work at Kuhn Krause.
achieve this.” Tapping into the latest industry knowhow, Kuhn Krause has not only hired the best talent, it is also developing strong industry partnerships to guarantee a superior customer experience. “For instance, one of the companies that we have an alliance with is Montag,” notes Davis. “Montag provides a fertiliser delivery solution which we attach to our strip-till machine called the Gladiator®. Both of those machines work together to really provide good value to the customer. It delivers a whole package to the farmer. That relationship with Montag has been very instrumental in increasing our market
J U LY 2 0 1 8
USA
position with the customers for the
Although the company’s roots lie
strip-till application of fertiliser place-
firmly in America, it seems Kuhn
ment.”
Krause remains optimistic about the
Now, looking forward, the agriculture equipment firm plans to continue the company’s historic leg-
future and is eyeing opportunities further afield. “In the next decade, we plan to
acy by embracing new and
continue to grow in the North Ameri-
revolutionary technologies.
can sector, both in the US and
“In the future, I predict we will con-
Canada,” Davis says. “Globally I see
tinue to increase our technology use
that we have many opportunities,
in all aspects of manufacturing,”
especially in growing and developing
reflects Smith.
countries where agriculture is vital to
“That will allow us to have flexibility.
produce enough food for the grow-
This is important because the agri-
ing population. Continued
culture market is cyclical, which
development in those growing and
means you need to able to flex-up
emerging countries are going to be a
and flex-down your manufacturing
priority for us.”
capability to continue to be profitable.”
w w w. s u p p l y c h a i n d i g i t a l . c o m
95
PROCURING SUCCESS for the STUDENT The College Board is a gateway for students to achieve college and career success, but what role can procurement play in that vision?
WRITTEN BY
DALE BENTON
PRODUCED BY
TOM VENTURO
w w w. s u p p l y c h a i n d i g i t a l . c o m
THE COLLEGE BOARD
A
98
s a not-for-profit mission driven organization focused on connecting more than 7mn students to college success and opportunity, one could be forgiven for asking the question as to how a procurement function can not only support but drive that mission further? At the College Board, which each year helps millions of students across the U.S. prepare for the successful transition to college through the SAT, Advanced Placement and other programs and services, procurement is very much a key component towards delivering on the organization’s promise. Heading up the procurement function is Steve Hughes, Chief Procurement Officer at the College Board. Having forged a career in procurement that spanned a number of for-profit organizations such as the Comcast Corporation and Vertis Communications, Hughes first entered the not-for profit space with the National Geographic Society. It was this experience, working for a mission-driven organization such as National Geographic, that really opened his eyes to seeing just how procurement can enable opportunity to better deliver on that mission. In 2016, Hughes joined the College Board J U LY 2 0 1 8
and he immediately began to recognize the synergy between his previous role and that of the one he was about to embark on. “It’s interesting because, at both Nat Geo and here at the College Board I was hired by someone who understood the benefits of bringing best business practices from for-profit organizations into the not-for-profit space.” As CPO, Hughes works directly with the College Board to align a procurement strategy and the procurement function with that broader organizational goal of delivering educational opportunities for students. Student experience and procurement aren’t exactly two areas that walk hand in hand but for Hughes, he feels that the role that procurement can and will continue to play is actually much clearer to see. “The role that procurement can play manifests itself in a number of different ways, but it boils down to one driving principle and that is the idea
S U P P LY C H A I N
BIO
EDUCATION: BS in Engineering from the United States Military Academy at West Point, MBA from the University of Missouri at Kansas City
“I HAVE THE GREATEST OF CONFIDENCE IN MY TEAM AND IN THIS FUNCTION TO ACHIEVE THAT AND TO EXCEED ALL EXPECTATIONS OF PROCUREMENT” – Steve Hughes, Chief Procurement Officer
CAREER: Over a career spanning more than 30 years, Steve has held senior procurement and operations positions with large and small, public and private, and for-profit as well as non-profit organizations. He joined the College Board in 2016 after serving as Vice President of Global Sourcing at National Geographic Society, and prior to that, as Vice President of Supply Chain Management at Vertis Communications, a national printer of advertising circulars and direct mail promotions. He has also held positions at Comcast as Sr. Director of Resource Management, and Becker Group as Vice President of Operations. Hughes started his purchasing career at Hallmark Cards in Kansas City following five years of military service as a US Army officer at Fort Bragg, NC with the 82nd Airborne Division, where he completed 40 military parachute jumps.
w w w. s u p p l y c h a i n d i g i t a l . c o m
99
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HARNESS TALENT FOR PERFORMANCE
S U P P LY C H A I N
101
Founded in
1909
of applying best practices for stewardship of an organization’s limited resources,” he says. “We go to great lengths to ensure that the additional value procurement can bring through strategic sourcing, contract negotiations and supplier relationship management, frees up additional resources that can be invested back into providing additional opportunities for students, such as exam fee reductions for lowincome students. That’s the mission.”
The very nature of procurement is changing. Where once it was assumed as a compliance function that would support the business needs on a purely indirect level, over the last decade more and more organizations have begun to invest more in procurement to the point where procurement itself can influence strategic thinking. Hughes agrees as such. w w w. s u p p l y c h a i n d i g i t a l . c o m
S U P P LY C H A I N
When he first arrived at the College Board, he was faced with a procurement function that he describes as primarily tactical. The emphasis of the organization’s procurement was based on processing paperwork, i.e. purchase orders and contracts. During the two years Hughes has been with the organization, he has embarked on a journey of changing the perspective of what procurement can do for the College Board to a strategic role. “Procurement can be a window into the marketplace to ensure that we are optimizing the value from the relationships we have with our external suppliers and internal stakeholders. Ultimately, we want to ensure those relationships are leveraged to the greatest advantage of college board through either vendor consolidation, focusing on category management. “The results so far have shown that we been able to drive savings for the organization, and we can bring business and market intelligence to our stakeholders that create better opportunities when working with suppliers.” It is through a refocused approach to working with suppliers that has been one of the biggest components of the procurement transformation. Prior to Hughes’s transformation mission,
the “tactical” approach to procurement saw a large portion of the existing procurement team spend limited time negotiating with and establishing relationships with suppliers and more time spent pushing paperwork through systems. Upon seeing this, Hughes kickstarted this transformation by reorganizing both the department and the way in which the people in procurement worked. Hughes wanted to transition the focus from a transaction by transaction basis to a category management approach, with sourcing team members assigned specific categories that they are responsible for across the entire organization. We reorganized the procurement team by shifting resources out of the operations side over into the sourcing side, providing us with greater bandwidth to handle more sourcing events. We also trained the people w w w. s u p p l y c h a i n d i g i t a l . c o m
103
THE COLLEGE BOARD
104
who had not been exposed to sourcing and category management,” says Hughes. Naturally any transformation, particularly one that looks to redefine the expectations and demands of a role, will bring with it challenges Sometimes change can be difficult. But for Hughes, his ideas were met with incredible enthusiasm both by his procurement team and by the College Board’s leadership team. “For some people, their job wasn’t challenging
J U LY 2 0 1 8
them enough and this in turn meant that they didn’t really see the strategic value that procurement could have on the organization,” he says. “As part of this journey my team has become more engaged at the start of the procurement process and working with stakeholders from the beginning, when project requirements are being defined, right through to the end, when contracts are negotiated and executed. This has empowered them and provided them with a sense of perspective
S U P P LY C H A I N
“TO PUT IT SIMPLY, IT’S ABOUT PROVIDING MY TEAM WITH BETTER TOOLS IN ORDER TO BE MORE EFFECTIVE AND EFFICIENT” – Steve Hughes, Chief Procurement Officer
105
w w w. s u p p l y c h a i n d i g i t a l . c o m
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S U P P LY C H A I N
as to what the true value of procurement can and will be going forward.” As is often the case, a function is defined by its people and processes. Hughes has already worked extensively on the people element, one that can easily be overlooked in the search for greater efficiencies but running alongside this is the process and technology side of procurement. “To put it simply, it’s about providing my team with better tools in order to be more effective and efficient,” says Hughes. “That in turn feeds into the wider goal of making procurement more valued by the organization and more effective in how we can deliver results and savings.” Hughes has already started implementing a new digital procurement suite of tools from Zycus that includes spend analytics as well as e-sourcing, procureto-pay (P2P) and contract management, that will all be fully integrated when they go live before the end of 2018. If a procurement function is defined on an internal level by the people and the process, then the role it plays externally is equally as important. After all, what use is a procurement function without a network of suppliers? This notion is only magnified in the nonprofit sector, as Hughes himself admits that
in some instances organizations are sometimes “married” to their incumbent suppliers. “Why change when stakeholders are happy with the service they are receiving and the price they are paying,” says Hughes. “So, one of my challenges was to convince people that we should look at the marketplace again and determine whether these suppliers are in fact competitive with other options available to us. Often they are not.” Hughes stresses that this was not a process of replacing vendors but rather re-evaluating those supplier relationships in order to identify opportunities for better or more cost-effective service. The ultimate message, for Hughes, is one of greater collaboration moving forward. “We aren’t here to disrupt existing processes or relationships,” he says. “We are here to extract as much value as possible and ensure w w w. s u p p l y c h a i n d i g i t a l . c o m
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THE COLLEGE BOARD
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J U LY 2 0 1 8
S U P P LY C H A I N
our supplier base understands that procurement is now part of the value equation at the College Board.” EMPOWERED BY MANPOWERGROUP AND TAPFIN MSP
Since 2009, The College Board has partnered with ManpowerGroup’s TAPFIN MSP team, which has provided The College Board an enterprise-wide contingent workforce management solution throughout the continental United States and Puerto Rico. The program encompasses all contingent labor management, Statement of Work and Independent Contractor Management. It is a key example of how The College Board leverages its key suppliers in order to extract as much value as possible. TAPFIN delivers outstanding results through the use of its proprietary commercial VMS technology,
“WE ARE HERE TO EXTRACT AS MUCH VALUE AS POSSIBLE AND ENSURE OUR SUPPLIER BASE UNDERSTANDS THAT PROCUREMENT IS NOW PART OF THE VALUE EQUATION AT THE COLLEGE BOARD” – Steve Hughes, Chief Procurement Officer
Econometrix, which provides robust full-service VMS functionality in an intuitive easy to use format. TAPFIN attributes much of its successes as a strategic partner and trusted advisor, especially during the business transformation at The College Board, to the relationships and sponsorship provided, specifically Steve Hughes. Steve has been the executive sponsor since 2016, and has been an integral part of the program’s recent expansion. Two years in, this is still very much the beginning of the transformational journey for Hughes and the College Board. While there already has been a number of notable changes and turning points for w w w. s u p p l y c h a i n d i g i t a l . c o m
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S U P P LY C H A I N
the organization, no journey like this can ever truly end. The procurement industry is changing and be it forprofit or not-for-profit, organizations such as the College Board have to continue to evolve and adapt in order to succeed in its mission. Hughes recognizes as much and he himself admits that the successes that he has overseen to date are in fact only gateways into future opportunity. “There will most definitely be lots of work and lots of opportunities that these new
tools and new processes, and this newly energized team, will be able to tackle in the future,” he says. “Technology will continue to change and so we must continue to change with it. “But, ultimately, in the future I want us to continue to enjoy great success in leveraging our value that we bring to the organization. I want our status as a business partner to continue to rise and that we will have more opportunities to engage in a larger sphere of the organization’s addressable spend. “I have the greatest of confidence in my team to achieve and exceed the College Board’s expectations of procurement.”
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SECURING
double-digit GROWTH through supplyTRANSFORMATION chain The fastest growing beauty and personal care brand in North America in 2017 , Rodan + Fields remains committed to innovating within the premium skincare market WRITTEN BY
CATHERINE STURMAN PRODUCED BY
DENITRA PRICE
RODAN + FIELDS
S
kincare has become big business.
anti-aging, dry, sensitive, or oily
Looking and feeling good, both on
skin, Dr. Katie Rodan and Dr.
the inside and out has become a
Kathy Fields founded Rodan +
significant market and led companies to vie
Fields to support the growing
against one another to not only attract new
gap for dermatological products
customers, but also retain a solid customer
within the adult skincare market.
base in the process. In North America, the
With over 200,000 independent
premium skincare market is set to reach
consultants across the US, Can-
$9.9bn by 2021, with the US accounting for
ada and Australia, Rodan +
15% of global premium skincare sales alone.
Fields has gained over 2mn cus-
However, whilst the majority of adult skin-
tomers, and is projected to
care products focus on areas such as
continue to drive double-digital
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J U LY 2 0 1 8
USA
thenext five years.
Disrupting traditional business models
“This has been a great challenge
Originally selling the business to Estee
for us,” explains Bryan Wayda,
Lauder in 2003, the founders bought back
Chief Supply and Service Officer
the business upon witnessing a number of
at Rodan + Fields.
areas converging together which provided
“When we’re growing at an aver-
a unique opportunity to further disrupt the
age of 60% or more over the
beauty market. The emergence of social
last 10 years, we have worked
media in the mid-2000s led companies to
closely with our supply base
look at transforming traditional business
to address this in a comprehen-
models and address the ongoing chal-
sive way.”
lenges within brick and mortar retail stores.
growth across its operations for
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RODAN + FIELDS
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Diane Dietz, CEO
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“We are continually looking at how to get to the market faster. We have relocated our distribution point from Dallas to Ohio to put us closer to our center of gravity for customers” — Bryan Wayda, Chief Supply Chain Service Officer at Rodan + Fields “The founders saw an opportunity to look at the direct selling model in a very disruptive way, which broke some of the rules of traditional direct selling and created how we operate today with our consumer connected commerce model,” says Wayda. “In a traditional direct selling model, the company would sell to a distributor, and the distributor would collect products, sell to
Break the Cycle of Acne | UNBLEMISH Regimen | Rodan + Fields
customers, collect the money and do the administrative work. “Our model flipped it upside down, where we said, ‘why not let us do a direct to consumer shipment, order management and payment process’. This allows consultants to do what they do best, which is connect to their networks, identify new customers and provide a personalised customer experience by helping them find the right skincare products and grow their business.” w w w. s u p p l y c h a i n d i g i t a l . c o m
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USA
Product innovation By launching a multitude of regimen-based products, Rodan + Fields continues to focus on four key areas: lines and wrinkles, brown spots and discolouration, acne and sensitive
‘The fastest growing beauty and personal care brand in North America in 2017’
skin. However, the so-called ‘Amazon effect’ has significantly impacted its supply chain capabilities and created ever-growing consumer expectations. “We are continually looking at how to get to the market faster. We have relocated our distribution point from Dallas to Ohio to put us closer to our center of gravity for customers,” adds Wayda. “Everybody expects everything faster than
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they ever did before, and so we’ve made a strategic move to put a warehouse in the most strategic location to get products out faster.” Responsible for Rodan + Fields’ end to end supply chain operations, dealing directly with consultants and customers, as well as the product management for new products, Wayda has streamlined the commercialisation and industrialisation of existing products whilst bringing new products to life. “Our plan was to add one new product every couple of years in the first several years, so that we grew organically and both our consultant base, as well as our internal team, gained a good understanding of our core
Active Hydration Bright Eye Complex w w w. s u p p l y c h a i n d i g i t a l . c o m
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products. In the last couple of years, how-
Nonetheless, to enable further
ever, we’ve accelerated this.
growth, it remains imperative
“Our products are fairly technical and highly
for the supply chain to work
effective with the types of ingredients and
with those who can support its
the formulas used. It’s been a change for our
ambitions to further scale.
organisation to introduce new products
“Many of our suppliers were
quickly, bring them to market and commer-
great suppliers when we were
cialise them in a strong way. It’s been part of
a $100mn business. They fit us
the culture shift of how we operate the busi-
really well because they had
ness.”
flexible batch sizes. In many cases, they offered opportuni-
Supplier drive
ties for us to do things that
Partnering with AT Kearney across its con-
were unique as a small player,
tract manufacturer rationalisation, Rodan +
but as we scaled, their fit
Fields has sought to follow a typical strategic
became better suited for play-
sourcing process; starting from a request for
ers who looked like what we
information (RFI), leading the way to award-
used to look like, so we had to
ing the business and transitioning for
make some tough decisions,”
technical transfer.
notes Wayda.
‘In North America, the premium skincare market is set to reach $9.9bn by 2021, with the US accounting for 15% of global premium skincare sales’ Mircro-Dermabrasion Paste - Jar w w w. s u p p l y c h a i n d i g i t a l . c o m
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RODAN + FIELDS
“Through a seven-step process, we
use of technology has strongly
made some decisions to partner
underpinned Rodan + Fields’ sup-
tighter with some players because
ply chain operations. Upgrading its
they had scaled their business with
outdated enterprise resource plan-
us. It was a venture within contract
ning (ERP) system to SAP, the
manufacturing to find the right part-
company has also sought to partner
nerships to produce our product
with a number of new players to
and co-innovate with us for the
provide further visibility, lower costs
future.”
and guarantee high quality outcomes.
Exceptional technologies
By partnering with DHL, Rodan +
Throughout its transformation, the
Fields has not only overhauled its
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USA
contract manufacturing operations,
Fields to gain further expertise,
but also its distribution capabilities.
enhance its order management
“Our partners need to manage high
platform, add value and reduce the
volume of orders alongside our
risk for the business in developing a
ongoing growth. Our partner is DHL
system in house.
in the US, and we’ve also got part-
Additionally, by building effective
ners in Canada and Australia as
relationships with contact center
we’ve opened up those markets,”
providers, the company has
Wayda says.
enhanced its outsourcing pro-
Implementing a state-of-the-art
cesses and improved its customer
warehouse management system
and consultant support.
(WMS) by DHL has allowed Rodan +
“We’ve also partnered with a new
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‘Rodan + Fields has over 200,000 independent consultants across the US, Canada and Australia’ Mineral Peptides Light + Brush
w w w. s u p p l y c h a i n d i g i t a l . c o m
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“Our partners need to manage high volume of orders alongside our ongoing growth. Our partner is DHL in the US, and we’ve also got partners in Canada and Australia as we’ve opened up those markets” — Bryan Wayda, Chief Supply Chain Service Officer at Rodan + Fields
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contact center outsource provider in the last year to make sure that we have someone who can scale with us and offer us global opportunities as we continue to grow, leveraging the knowledge and the input that we receive across multiple geographies,” adds Wayda.
Entrepreneurial spirit As Rodan + Fields continues to expand, the business will continue to explore further global opportunities in markets which fit its strategic skincare portfolio. “The products are fantastic and remain core to our founder’s mission. Customers and consumers love our products, they’re highly
125
efficacious and serve the purpose they’re intended to serve,” acknowledges Wayda. “The future is even more exciting when we think about the opportunity to transform the business to fit a truly global market place. A global supply chain will be a really unique opportunity for our business to grow,” he concludes. “It changes the dynamics of how we look at things when we think of scaling ourselves to be a business that can be double the size or even more than what we are today. “One of our big opportunities to continue to transform the supply chain, which will help the business evolve in the next several years.”
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BIO TECHNOLOGY GENERAL (BTG)
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Transforming the biologic supply chain through digitisation
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TOTAL GLOBAL BIOLOGICS SPENDING HAS GROWN FROM $46BN IN 2002 TO A STAGGERING $221BN IN 2017. BTG’S HEAD OF SUPPLY CHAIN, ALON BEN DROR, DISCUSSES HOW ITS DIGITISED SUPPLY CHAIN WILL ENSURE THE COMPANY REMAINS A KEY PLAYER WORLDWIDE WRIT TEN BY
LAURA MULLAN
PRODUCED BY
JAMES PEPPER
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BIO TECHNOLOGY GENERAL (BTG)
0
ne of the first biologic companies in Israel, Bio Technology General (BTG) has become one of the most
highly respected businesses in the industry. Housing significant expertise, the company supports startups in the country and is responsible for the development, production and marketing of growth hormone Somatropin, EUFLEXXA for osteoarthritis sufferers and Biolon for ophthalmic surgeries. The company also responsible for the production of new API for fertility treatment - Recovelle Driving high quality standards across its operations, BTG has been recognised by the 128
Israeli Ministry of Health for its commitment and unwavering focus on delivering high quality pharmaceuticals, which are commercialised in over 40 countries. The company is also set to see an investment of up to $15mn by its parent company, Ferring Pharmaceuticals, to expand its production capabilities in a mammalian cells operation for the production of fertility medicine. “We are having a lot of audits from different regulatory authorities each year and are passing all of them with ease. We are very proud of our quality, systems and processes,” explains Head of Supply Chain, Alon Ben Dror. Responsible for planning control, logistics, business technology, as well as BTG’s proJ U LY 2 0 1 8
“ We need to ensure medicine supplied in high quality, which means controlled shipment and logistics routes, making sure we have the right safety stock for each market”
— Alon Ben Dror, Head of Supply Chain
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curement activities, encompassing
ble for getting demand from the
direct and indirect costs, Alon has
markets through the ERP system, in
spearheaded the transformation
order to create work plans for produc-
of BTG’s supply chain processes,
tion and quality control. The logistics
placing the patient (or customer)
group manages our warehouses, raw
firmly at the helm.
material, packaging material and our
“Sometimes the customer is the
general technical warehouse. Thirdly,
patient but it can be a hospital or clinic.
the business technology element
We need to ensure medicine is sup-
encompasses two different areas, our
plied in high quality, which means
control system and automation, the
controlled shipment and logistics
other being IT.”
routes, making sure we have the right safety stock for each market,” he says.
IMPLEMENTING LEAN PROCESSES
“Planning and control are responsi-
By combining its IT and supply chain w w w. s u p p l y c h a i n d i g i t a l . c o m
BIO TECHNOLOGY GENERAL (BTG)
operations, BTG has digitised its processes to become not only lean, but responsive to any issues or surges in demand across the supply chain. Implementing a central automation system by Emerson, the company has gained the ability to control many of its production processes and visually look at all data received to better understand various trends. “We’ve connected our quality control system to our production system so processes are interfaced with each other and enable a quicker transformation of information and therefore better coordination and release 130
time,” reflects Alon. “This has allowed us to further plan our logistics: how soon we can ship products, keep less inventory and reduce our cycle time. This is a big advantage for us. Our ERP system is also connected to the global organisation, so the market and global supply chain can see where things are in each point of time.” DEVELOPING NEW PRODUCTS
Such is the company’s growth, its $15mn investment from Ferring will help BTG to expand its production capabilities, utilise new technologies and develop new production lines to promote the growth of its products and services. An area of increased J U LY 2 0 1 8
EUROPE
focus is the manufacturing of fertility treatment Rekovelle, which will cater to ongoing global demands. “This product is going to be manufactured at several sites at Ferring, and we will also have a backup site in Switzerland. This FACT
• One of the first biotechnology companies in Israel • BTG supports the growing number of startups in the country • BTG develops, produces and markets growth hormone Somatropin, EUFLEXXA for osteoarthritis sufferers, Biolin for ophthalmic surgeries and Recovelle for fertility treatment • Recognised by the Israeli Ministry of Health for its commitment and unwavering focus on delivering high quality pharmaceuticals • The company has received a $15mn from its parent company, Ferring Pharmaceuticals to expand its production capabilities
investment will enable us to enhance the biotech process in bio reactors and the product is derived from mammalian cells,” says Ben Dror. However, communication across the organisation will remain a global challenge across the business. Supplying over 40 countries, BTG has worked to build trust and transparency, and regularly meets with all involved parties to guarantee mutually beneficial relationships. “It is important to be clear with our messages and to be very transparent with the information given to highlight that we are in this together,” Ben Dror adds. “Another challenge is that in many cases we have only one supplier. It is therefore important for us to maintain this relationship with suppliers and make them partners. This creates an environment where the supplier will also experience success. The supplier is crucial to the success of our organisation.” METHODOLOGY OF SAFETY
Additionally, in such a high cost, and highly w w w. s u p p l y c h a i n d i g i t a l . c o m
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Your process, our priority.
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EUROPE
133
regulated environment, it is imperative for the business to mitigate
Ben Dror. “We also have an SQDEC meth-
ongoing risks. Processes at BTG
odology, which stands for safety,
have been designed on a methodol-
quality, delivery, employee and cost.
ogy of safety, starting at ground
This is the base of the KPI structure
level.
at the organisation. We start with
“The first thing is to design your
safety as its most important thing,
processes the right way. The sec-
then move to quality. After that, it’s
ond thing is implementing a high
my responsibility to deliver and
awareness of safety culture. We
make sure patients and customers
have a safety programme, named
receive goods on time in full. Last
‘Safety Through Leadership’, where
but definitely not least, we have the
we train our team leaders, all the
employees. It is crucial for the
managers in the organisation and
organisation to make sure we have
also some employees to put safety
the right people in the right posi-
as part of their leadership,” notes
tions with a proper development w w w. s u p p l y c h a i n d i g i t a l . c o m
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“ We’ve connected our quality control system to our production system so processes are interfaced with each other and enable a quicker transformation of information and therefore better coordination and release time” — Alon Ben Dror, Head of Supply Chain
135
plan. If we are able to succeed with the
operations, BTG will continue to house
four elements then the fifth, which is
significant expertise and remain a key
cost, will go down naturally.”
player in the biotechnology market.
Factoring in safety as part of its lean
“I see new ideas every day while we
culture, BTG has significantly reduced
are moving forward. BTG management
the number of risks across its opera-
is also focusing on new opportunities,”
tions and undertakes a number of
he concludes. “And with a strong
activities to protect the environment,
backup that we got from Ferring man-
such as filtering out harmful chemicals
agement, I believe that the future for
and neutralising materials before they
BTG is to keep growing and to be a
are thrown into drainage systems.
leading entity within the Ferring global
Delivering what Ben Dror describes
organisation.”
as “the full package” across its
w w w. s u p p l y c h a i n d i g i t a l . c o m
RABEN GROUP
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WRITTEN BY
BEN MOUNCER PRODUCED BY
LEWIS VAUGHAN
w w w. s u p p l y c h a i n d i g i t a l . c o m
RABEN GROUP
The Raben Group is in the midst of a company wide digital transformation, led by CIO Slawomir Pawlak wenty years measures as an infinitesimally small period of time in the history of mankind but when it comes to technology, the last two decades will go down as an era of extraordinary significance. Throughout this transformative journey from an analogue past to a digital now, Slawomir Pawlak – Chief Information Officer at the pan-European logistics giant Raben Group – has been in the eye of the storm, a first-hand witness to a rapid shift from one comfortable landscape to an inherently different other. Pawlak, who this year will reach his 20th anniversary as the Dutch firm’s technology leader, has embraced this monumental change with open arms and a sharp mind. This adaptability has rewarded him with the authority to steer digital transformation at a €1bn company, an ambition that would have seemed impossible in the days when ‘IT’ was placed firmly in the back office. “That's amazing perspective, isn't it? I've been here 20 years, in IT at Raben Group,” he recalls. “In 19 of those years I have been in
T
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w w w. s u p p l y c h a i n d i g i t a l . c o m
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EUROPE
the leading position and during
now, to the point where it is powering
that time I might have changed,
change.”
141
once or twice, all of our systems
Raben Group’s history stretches to long
in Raben Group to new systems
before Pawlak’s time at the company. A mar-
or new versions and new
ket leader in Europe for over 85 years, its
releases.
efficient and dependable service has
“As the technology has grown,
afforded it the reputation as one of the conti-
so has the company. Twenty
nent’s outstanding logistics and warehousing
years ago, we had roughly 500
providers.
people in in the group in two
Pawlak’s remit in 2018 is to lead technol-
countries. Right now, we have
ogy integration in every area of its
10,000 people in 12 countries.
established business; primarily flowing inno-
We had €50mn of revenues back
vative digital infrastructure through its
then and right now we have more
logistics and warehousing operations but
than €1bn. Through company
also exploring how technology can help
growth and technological
Raben Group face the widening range of
change, IT became more and
challenges presented to a multinational
more important to where we are
organisation in the 21st century. w w w. s u p p l y c h a i n d i g i t a l . c o m
RABEN GROUP
SLICK LOGISTICS With the deployment of over 8,000 modern means of transport to carry cargo across 12 countries from Italy to Lithuania, an optimised tracking function is of paramount importance to Raben Group. Pawlak has overseen the amalgam of technological solutions to meet that demand, creating a service that guarantees ‘mobility and visibility’ for its customers. Delivered in partnership with 142
BlueJay Solutions, the business has adopted a single transport management system that connects its operations through one stream, giving it the required transparency. This information is shared to customers via its MyRaben.com portal, launched under Pawlak’s stewardship in 2015 and powered by Mendix, a low-code platform which enables the simplified management and development of in-house applications. “The flow of information across Raben Group and between countries really is fast J U LY 2 0 1 8
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“ Twenty years ago, we had roughly 500 people in the group in two countries. Right now, we have 10,000 people in 12 countries” — Slawomir Pawlak Chief Information Officer
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w w w. s u p p l y c h a i n d i g i t a l . c o m
Our traffic and logistics software help customers in over 120 countries around the world to optimise the movement of people and goods. Discover how we can help you build the present, to create a better future, ptv.to/mobilitylab
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EUROPE
and very accurate,” explains Pawlak. “Using
Drivers input the information
BlueJay’s software, we're transferring infor-
on mobile terminals through a
mation about transporters’ cargo and
sophisticated application devel-
transporters’ documents really quickly. We
oped by TIS GmbH, the German
present that internally and externally on
telematics provider of logistics
MyRaben, where our customers can see sta-
software. Raben Group, which
tuses, can see documents, can see invoices
has also struck a deal with Pana-
in spite of the location of the cargo.
sonic for the supply of
“This is a really good solution with good
heavy-duty hardware suitable for
performance. Right now, we are migrating
use in transportation, sees thou-
this platform from one cloud to another and
sands of data touch points
on completion of this migration, there will be
across its fleet every day.
the option of automatic scalability of the
This presents a challenge for
infrastructure. This gives me the option to
Pawlak which is a very familiar
grow to offer more services on this platform.”
one for CIOs today – how do you
Slawomir Pawlak - CIO w w w. s u p p l y c h a i n d i g i t a l . c o m
145
RABEN GROUP
“ A day might not seem like a long time, but if a product only has a shelf life of seven to ten days, then it’s a significant percentage, so the system and delivery have to be 100% right” — Slawomir Pawlak Chief Information Officer
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147
make first make sense of that data, then how do you turn it into action points that will make a difference? “We are collecting a lot of information from the truck,” he says. “We also have onboard computers that are providing a lot of information about the engine, about the brakes, about the oil and about the pressure. On top of that, you can see how the driver steers the wheel and how they use the brakes. “Data comes from many devices and many applications. At this moment, we are collect-
Video: Raben Group Company overview
ing some of it, but not all of it, in our data warehouse. One key improvement that in front of us is using that data to power predictive analytics. w w w. s u p p l y c h a i n d i g i t a l . c o m
RABEN GROUP
“We're building some profiles already; the
and outside of Europe. That is
behaviour of customers, the risk of traffic
certainly one of our strengths.
jams or changing the routes of the trucks, all
“We would also consider food
based on historical data. But this is still only
to be a real specialism of ours,
a pilot. Based on information we're already
which is really strictly controlled.
collecting we can build more and more effec-
We have a company called Fresh
tive way of making deliveries and we have
Logistics that is dedicated to the
made investment in this area, but we’re
food logistics, so that’s the sup-
probably still one or two years away.”
ply chain, temperature control, storage, etc. We have to be really
148
WAREHOUSING FIT FOR THE FUTURE
efficient because a lot of food
Raben Group boasts more than 1,150,000
has quite a short product life. A
m2 of diversified warehousing space, which
day might not seem like a long
are adjusted to suit specific requirements.
time, but if a product only has a
Some 83 of its warehouses are designed for
shelf life of seven to 10 days,
food and non-food products, ADR goods,
then it’s a significant percentage,
goods from the automotive sector, electron-
so the system and delivery have
ics (white goods) and oils. The company has
to be 100% right.”
stated that long-term, the objective is to
In the short-term, Pawlak says
implement the RedPrairie software (a JDA
the business and, indeed, the
product) at all its locations
industry faces two-real chal-
On the organisation’s warehousing opera-
lenges – the ongoing effort to
tions, Pawlak says: “Flexibility is hugely
recruit the right talent and adher-
important; we have to be able to control our
ing to new legislation. But with a
warehouses and be able to accommodate a
richly experienced team backed
wide variety of goods. So, for example, we
by a $1bn organisation, Raben
take big consignments of motorbikes from
Group is in a great
BMW in Berlin directly into our warehouses
position to continue to thrive in
and distribute them to customers both inside
the logistics space.
J U LY 2 0 1 8
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Video: Raben Group On the Way
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PETRONAS LUBRICANTS I N T E R N AT I O N A L
PETRONAS LUBRICANTS
150
Redefining the supply chain, shaping the future Through an aggressive supply chain transformation, Petronas Lubricants International gears up for continued growth of its lubricants business. WRITTEN BY
DALE BENTON PRODUCED BY
CHARLOTTE CLARKE
J U LY 2 0 1 8
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PETRONAS LUBRICANTS I N T E R N AT I O N A L
I
n any business, when
a range of high-quality automotive and
stripped down to its
industrial lubricants products in over 100
core, the concept is
markets worldwide.
simple – it’s a case of making a product and being able to deliver
pliers of lubricants, the company has
that product to the customer.
ambitions to continue to grow.
This makes the supply chain
To do so, PLI looked internally at how it can
function of a business a key com-
achieve this vision by generating greater effi-
ponent, and over recent years it
ciencies and looked specifically at redefining
has become a function that is
its supply chain.
spearheading the future growth in many organisations. This is most certainly the case 152
Currently within the top 10 leading sup-
“We’re spending close to 82% of our total outlay as a business on the supply chain,” says Phil
for Petronas Lubricants Interna-
James, Head of Global
tional (PLI), manufacturers of
Supply Chain.
“ WE WANT TO BE SEEN EVEN MORE AS A TECHNOLOGY DRIVEN COMPANY BECAUSE THAT’S THE DIFFERENTIATOR” — Phil James, Head of Global Supply Chain
J U LY 2 0 1 8
ASIA
“It’s a great responsibility to have so we have to be careful how we spend and more importantly, how efficiently we spend.” With a background in chemical engineering, James has worked extensively in refineries and chemicals plants as well as in the corporate centre. James first entered the lubricants supply chain world with BP Lubricants and got a real taste for it. “It’s a business that can really get under your skin” he says. After 7 years with BP Castrol James left to return to refining with BP. “It just wasn’t the same,” he shared. “I found myself
w w w. s u p p l y c h a i n d i g i t a l . c o m
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PETRONAS LUBRICANTS I N T E R N AT I O N A L
missing the lubricants business terribly. So, when after a few years I was asked to head up PLI’s supply chain function I had to check myself not to bite their hand off!” Now he can call upon his extensive experience of working within a large multinational company and, crucially, how the supply chain can support and guide and impact the success of PLI’s vision. “Having worked for BP, it really opened my eyes to how a multinational company operates. It gave me first-hand experience in seeing the procurement of raw materials right through the entire supply chain to cus156
tomer delivery,” he says. “What I believe is an important learning is the need for a company of the size and scale of PLI to be just as fast and nimble as other bigger players. That’s what drives us here at PLI.” As the company looks to generate efficiencies across its supply chain to operate more effectively, James believes that there needs to be the basics of efficient and effective supply chain, and awareness of other opportunities to add value to the relationships that are being built. This, James feels, is key to the supply chain transformation so that, “customers get what they want, when they want it, when they ask for it,” he says. J U LY 2 0 1 8
ASIA
157
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As among the 10 top lubricants providers in the world, James believes that the future of PLI will
collaborations that need not necessarily be centred around raw material or service. As with any journey or any transforma-
consist of supplier relationships
tion, there is a goal. For PLI, it is to grow
that are no longer defined by sale
and become among the Tier Two lubricants
and purchase, but relationships
player globally. James admits that trans-
that are much more collaborative.
forming the supply chain is only one of
“We’re looking beyond the
many pathways towards achieving this and
bases of traditional relation-
that the company must also do more to get
ships,” he says and are looking
to where it wants to be.
at areas for mutually beneficial
This is where the idea of thinking differently comes into play – not only is the company approaching the very nature of supply chain dif161
w w w. s u p p l y c h a i n d i g i t a l . c o m
PETRONAS LUBRICANTS I N T E R N AT I O N A L
162
“ TECHNOLOGY FORCES US TO TAKE SOME RISKS AND WORK WITH SOME SMALLER COMPANIES WHERE TECHNOLOGY MIGHT NOT YET BE PROVEN. IT’S AN IMPORTANT RISK FOR US TO TAKE BECAUSE WE’RE NOT GOING TO FIND THE SOLUTIONS ON OUR OWN.” — Phil James, Head of Global Supply Chain
J U LY 2 0 1 8
You Call, We Deliver Logistics does not have to be complicated. It isn’t. Not to us.
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ASIA
ferently, it is asking its suppliers and even its internal staff to look at supply chain in a newer and different dimension. This, James feels, is the only way in which the company can truly grow and prosper. “Changing the supply chain wasn’t enough,” he says. “It’s about challenging the status quo and drive innovation. And in so doing, changing how others, such as suppliers, customers and the like, see us.” This change starts internally. James is striving to create a much more collaborative ecosystem, connecting the buyers and the sellers and the technology people with the business to drive that innovation.
165
This collaboration is almost a no brainer as the technology teams within PLI are often in contact with suppliers in the same way that the procurement and supply chain teams are. Couple that with the fact that the sales team are in constant contact with the technology and procurement teams, it makes sense to create a unified collaborative dialogue. “It’s been one of the major changes so far in this journey,” says James. “What it has done is enable a far greater mix of conversation. It has helped us create better ideas and greater possibilities as a company.” PLI embarked on this journey of change some years ago and the company can already point to areas in which this vision is starting to bear fruit. w w w. s u p p l y c h a i n d i g i t a l . c o m
For a relationship built on a high level of collaboration
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ASIA
“ WHAT I BELIEVE IS AN IMPORTANT LEARNING IS THE NEED FOR A COMPANY OF THE SIZE AND SCALE OF PLI TO BE JUST AS FAST AND NIMBLE AS OTHER BIGGER PLAYERS. THAT’S WHAT DRIVES US HERE AT PLI.” — Phil James, Head of Global Supply Chain
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P E T R O N A S L U B R I C A N T S I N T E R N AT I O N A L
Through the changing of that buyerseller relationship, PLI has been able
lubricants space demanded by the
to restructure the way that contracts
OEMs.
are formulated with some suppliers,
Another area in which the supply
thus highlighting
chain transformation has shown proven
PLI’s commitment to its growth ambi-
success is in the collaborative relation-
tion, which in turn encourages a
ship with technology. Technology
change mindset in its suppliers.
continues to redefine industry sectors
Another example is the
all over the world and James share,
close collaboration with a PETRONAS
2018 is the Year of Technology for PLI.
refinery in Melaka, which resulted in
168
port the evolution of the high quality
“We want to be seen even more as
the “decommoditising” of its high-
a technology driven company because
quality base oil production Etro, into a
that’s the differentiator,” he says.
higher specification Etro Plus. This
“Technology forces us to take some
has encouraged a mindset of continu-
risks and work with some smaller com-
ally redefining the capability of
panies where technology might not yet
Petronas’s base oil production to sup-
be proven. It's an important risk for us
J U LY 2 0 1 8
ASIA
to take because we're not going to find
to efficiency and effectiveness,” he
the solutions on our own.”
says. “But there will always be more to
This sentiment is highlighted in the
do as the bar continues to get higher.”
construction of a new Research and
“The future is going to be defined by
Technology centre in Turin, which adds
digital space and data. It’s going to be
to the company’s existing satellite R&D
less about looking back on what data
centre portfolio across Brazil, China
has told us but more about what
and Malaysia, for example.
insights and foresights we can gain
These centres represent Petronas’ commitment to technology and attract
about our business. “For us, it’s about being agile and
technology companies to work with
leveraging technology to connect our
PLI to innovate or create new products.
supply chains. We have to be ready
As PLI continues its transformational
today, for what tomorrow will bring.”
journey, James admits that it is a journey that will never truly end. As the
169
industry evolves, so will PLI. “As at now, we are 85% on the route
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BUILDING TRU THROUGH DIGITISATION WRITTEN BY
CATHERINE STURMAN PRODUCED BY
CHARLOTTE CLARKE
J U LY 2 0 1 8
ASIA
UST N
171
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CROWN WORLDWIDE GROUP
Undergoing a significant digital transformation, three leading executives at Crown Worldwide Group discuss how its diverse portfolio and customer-led approach has seen it remain ahead of the curve
I
ncreased globalisation has led individuals to frequently travel, relocate to other countries and explore worldwide employment opportunities. Providing significant momentum for the transport and logistics sector, Hong Kong headquartered logistics company Crown Worldwide Group provides exceptional transportation, mobility, relocation, records and information management, logistics and storage services. Founded in Japan in 1965, Crown now has a global footprint with operations in the key markets. This expansion has come organically and from over 50 acquisitions. Whilst its world mobility business remains its largest, Crown works to support corporate and private customers moving domestically or internationally, designing and implementing tailored solutions in the process. “We help customers find a home or apartment. We provide cross-cultural training to facilitate integration and productivity when
172
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173
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CROWN WORLDWIDE GROUP
they get to the other end. We also have support programmes to help partners integrate into a new location as they often aren't in a position to work right away, as well as provide language training services,” explains Chief Executive Officer, Ken Madrid. “We also help them find the right schools for their children if required, as well as source hospitals and physicians. We provide compensation planning analysis to the transferee’s corporate office so that they understand the cost of living and tax impact of moving employee from A to B.” Additionally, its relocation segment 174
encompasses a one-stop-shop where Crown packs all household goods for customers and then ships, delivers and installs customer goods. The business even helps customers with visa and immigration requirements. “We also provide these services for private individuals, which is increasingly becoming a web-driven service,” adds Madrid. Not one to rest on its laurels, the business often has to pay expense accounts for its corporate customers, particularly those moving to countries with complex currency regulations such as China and Brazil. Setting the highest standards in security, safety and workflow efficiency, its record management capabilities provide storage J U LY 2 0 1 8
ASIA
and destruction solutions for hard copy and digital files for corporations. With over 45mn cubic feet of storage worldwide, customers can reduce office cost by moving their corporate records from a high-cost office building to a professional information management company. “A further element in our portfolio is our fine arts logistics business, where we transport and store precious works of art – we even moved the Mona Lisa once. From auction houses to collectors, to galleries and museums, it fits in very closely with a lot of the other activities that we do,” adds Madrid. “We concentrate our third-party logistics services in the Greater China region. We try to deal not with high-volume/low-margintype goods, but specialise in high value segments such as cosmetics, high fashion and travel retail, all things that require a different level of performance and risk. “In general, we operate in a logistics
“ We concentrate our third-party logistics in the Greater China area. We try to deal not with highvolume/low-margin-type goods, but specialise in high value segments which require a different level of performance” – Ken Madrid, Chief Executive Officer
w w w. s u p p l y c h a i n d i g i t a l . c o m
175
CROWN WORLDWIDE GROUP
niche. We handle complex and difficult projects like hotels and workplaces.
“We hold advisory board ses-
Recently, we have invested in growing
sions with our customers and
the workplace relocations side of our
talk about where we're both
business and it is growing rapidly. We
going. It allows us to create a
have also extended to what we called
better bond and ensures our ser-
'workspace' where we are the overall
vices continue to meet our
project manager of a workplace project
customers’ changing needs.”
including design, construction and fit out." Lastly, the company operates a wine
176
observes Madrid.
Customers expect instant information - from the location of shipments, to the status of their
storage business in Hong Kong. With
visas. Crown has therefore over-
storage located 20m underground in
hauled its systems and processes
World War II ammunitions bunkers, this
with the customer in mind.
operation is dedicated to the meticu-
“Such on-demand, personal-
lous handling, storage, long-term
ised access of information, with
maturation and ultimate enjoyment of
services such as Netflix and
wine.
Amazon, have been translated into the corporate world,”
CUSTOMER DEMANDS
explains Patrick Kenning, Global
Providing real-time information and
Director for Crown Worldwide’s
guaranteeing quality assurance to cus-
Intelligence Hub.
tomers, Crown has invested in a
“Digitisation and innovation is
systematic digitisation programme to
helping us differentiate our-
overcome such complexities.
selves, add more speed, offer
“Customer demands about the
more flexibility and provide a
seamlessness and the quality of these
personalised approach through
processes are evolutionary. It contin-
our various business models.
ues to change and put pressure on us
“The corporate customer
to invest more in the right types of
increasingly expects business-
equipment, technology, facilities etc.,”
to-business integration, for
J U LY 2 0 1 8
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Ken Madrid
Chief Executive Officer Ken Madrid is the CEO for Asia Pacific, the Group CFO and a member of the Executive Board for the Crown Worldwide Group, a private company headquartered in Hong Kong. Madrid is responsible for over 100 operations located throughout Asia, Australia and New Zealand as well as the worldwide financial management of the Group. He is a key driver of the strategic development and overall management of the company. He joined the Crown Worldwide Group in 1991 as CFO and member of the Executive Board. In 1994, he was appointed Executive Vice President and in 2003, CEO of the Asia Pacific region. During Ken’s tenure, Crown has expanded from an Asian based regional company to a global leader with offices in over 50 countries.
177
example. They don't want to
tomers need to do and where their
come to our website and find
shipment is,” says Kenning.
information. They want to see it directly in their own HR system.” For private customers, Crown
“Customers don't want to get home and make a phone call and reach a switchboard to speak to somebody.
has consequently launched its
They want to go on their phone, push a
Online Move Hub, where a portal
button and see everything that they
is provided to enable customers
need.
to upload documents and trans-
“Our struggle is always building a per-
act the entire end-to-end
sonalised solution, linking it with the
process of moving house using
different data sources that are available
their phone, tablet or PC.
and being able to provide this to cus-
“Here, we securely exchange documents with customers on a
tomers on demand,” says Madrid. “We're not just a logistics company.
digital platform. We can look at a
Information is almost more important
dynamic timeline about what cus-
than the actual physical movement of w w w. s u p p l y c h a i n d i g i t a l . c o m
Building Inspiring Spaces • Interior Design • Renovation • Facilities Maintenance • Building Construction
Email : brightway6@yahoo.com.hk Phone : Mr. David Ho at (852) 9324 8600
ASIA
the goods sometimes. The chal-
and corporate mobility business units,
lenge is trying to meet those
Crown has therefore implemented a
technical demands.”
number of digital tools to enhance the customer experience.
BUILDING TRUST
“Previously, when a customer relo-
It’s the global footprint, married
cated from home country to host
with a digital strategy, that has
country, we sent out a consultant. An
made Crown truly unique. Whilst
appointment would be arranged, the
customers expect high-quality
consultant would visit the property and
services, its ultimate aim
survey all household items. This
is to simplify the relocation
required the customer’s availability at
process for both private
their residence between working
and corporate customers.
hours to complete an inventory,”
“The process of relocating is one of the three most stressful
explains Kenning. “We’ve since launched a virtual con-
life events a human can go
sultation service, which is similar to a
through, along with death and
FaceTime conversation. The customer
divorce. It's a very emotional
is using their smart device and enabling
experience. It's one thing to
the consultant to digitally capture their
move a container of televisions.
household goods, offering flexibility by
It's another to move somebody's
providing after-hours appointments
life experiences for them,”
through our regional service centres.”
reflects Madrid. “We have had to look at how to
By fully digitising this process, Crown has reduced carbon emissions
build that level of trust with cus-
and transformed its traditional, paper-
tomers and deliver on their
led process. With all information
expectations, at the same time
captured through video technology,
providing a digital experience
accuracy levels have also risen.
to which we have all become accustomed.” Across its private relocation
“At the end of the pilot for this initiative, we achieved a 5% increase against industry standards for the w w w. s u p p l y c h a i n d i g i t a l . c o m
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CROWN WORLDWIDE GROUP
Patrick Kenning Global Director for Crown Worldwide’s Intelligence Hub
Patrick Kenning heads the global Intelligence Hub function, which is responsible for challenging the status quo and promoting Crown’s innovation culture by encouraging ideation and exploring emerging technology opportunities that enhance the customer experience. Kenning has held several key front-line, customer-orientated roles throughout his 15-year career and has relocated internationally seven times.
180
accuracy of a traditional household
adopted a similar approach
goods survey. We have carried out
within its packing process. By
over 7,000 visual consultations to-
photographing items to guaran-
date,” says Kenning.
tee precision, a multi-language
“There’s environmental, accuracy
electronic inventory and the use
and flexibility benefits, and customers
of barcoding guarantees com-
love it because it is innovative and cre-
plete traceability.
ates a very exciting dynamic.” “We're seeing this grow month-on-
“It’s a really important and exciting proposition to be able to
month as customers appreciate the
digitally capture everything
convenience of this new technology
about a relocation and then be
driven process. It's an exciting part of
able to follow up on any excep-
our journey when we talk about the dig-
tion and feed that back to
italisation of the relocation and mobility
operations on the other side of
business,” supports Madrid.
the world so that we can identify
Furthermore, the company has J U LY 2 0 1 8
where issues might have arisen
ASIA
Chris Davis-Pipe
Group Head of Technology Chris Davis-Pipe joined Crown in 1997 and is currently Group Vice President of Information Technology for Crown Worldwide. With his global team, he manages all aspects of Crown’s information technology, supporting over 5,000 employees in more than 50 countries, across six Crown businesses. He develops and oversees the company’s global I.T. strategy, including the implementation of company standards ranging from infrastructure management, security, business continuity and disaster recovery to procurement, deployment and support of Crown’s core business applications. Davis-Pipe is currently overseeing a 40-member development team split between Hong Kong and Guangzhou, China, driving innovation in Crown’s client-facing solutions and the digital transformation of Crown’s line of business applications and back-office.
181
and allows us to create training exercises,” says Madrid.
Davis-Pipe, Group Head of Technology. “Part of our digitisation journey is to improve that. We utilise two reporting
DATA DRIVE
tools to provide data visualisation.
Leveraging Microsoft Office 365
QlikView is our dashboard solution,
and associated tools to drive col-
and we use SAP’s BusinessObjects for
laboration and communication,
reporting.”
the company continually looks at
“Internally, we use predictive technol-
ongoing trends across its opera-
ogy to forecast our private business and
tions, extending these benefits
our web traffic, for example,” adds
out to customers.
Madrid.
“We have some challenges
“We can use machine learning to
around analytics in terms of data
predict what percentage of web lead
capture and ensuring we've got
inquiries turn into booked business and
all the right data points collected
this allows us to forward plan our utili-
along the journey,” explains Chris
sation and business revenues. The w w w. s u p p l y c h a i n d i g i t a l . c o m
CROWN WORLDWIDE GROUP
other side is how our corporate users use it.” Kenning adds: “We capture a lot of data with respect to our corporate customers as a part of our proposition. We feed back a lot on service delivery and demographic trends. Our clients typically have a selection of assignment policies within their mobility programme. We'll regularly advise and inform them of the trends that are happening within those policies. This can help them with some of their talent and diversity goals whilst keeping their business partners aligned on the activities of their mobility programme. “We look at gender, age, family size, etc. 182
and trend some of the information in terms of what geographies they're going into and map that against assignment duration, any terminations, and repatriation trends. “A really exciting topic is return on investment mobility,” he continues. “Helping our mobility partners to share back to their stakeholders the measured value that the investment in an individual assignment or the mobility programme actually gives back to the individual and/or the business. It’s something that we're actively working on and we’re fueling it with predictive analytics given the increasingly available tools and advancements in this space.” Additionally, within its information management unit, the business has adopted a J U LY 2 0 1 8
“ Customers appreciate the convenience of our new system. It’s an exciting part of our journey when we talk about the digitalisation of our relocation and mobility business” – Ken Madrid, Chief Executive Officer
ASIA
183
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CROWN WORLDWIDE GROUP
number of programmes to further track
With over 10 processes running
information.
through its expense claim
“Our data management systems allow customers to enter keywords that
tion, invoice extraction, and file
will link to indexed boxes or media and
setups, the company has
identify information storage where
brought in a number of partners
those keywords may exist. We’re able
to guarantee best-in-class.
to then deliver those corporate memo-
184
administration, including valida-
“We used a particular vendor
ries back to an authorised customer
for robotics and trained three of
and say, ‘these files or tapes are ones
our staff, accrediting those indi-
that happen to contain those key-
viduals with a certification of RPA
words’. We keep track of who we've
so that they can now build and
delivered them to and when we will get
maintain the robots themselves,”
them back,” says Madrid.
explains Kenning.
“We also have a large programme
“It speaks to the training and
where data can be scanned, digitised
development element, but also
using optical character recognition
helps to cancel out some of that
technologies and indexed for keywords.
fear that's always evoked with
We can also redact data digitally to pro-
new technologies coming in, turn-
vide information, however customers
ing our people into robots, etc.”
might need it. It’s exciting, being able to
Thoroughly enriching the roles
connect back with customers and have
of its people, Crown Worldwide
total linkage as we go through the infor-
Group will continue to unlock fur-
mation journey.”
ther opportunities to transform the business. Situated in over 50
UNLOCKING FURTHER VALUE
countries, all of its segments
Taking its digitisation process one step
encompass different character-
further, Crown has placed significant
istics, delivering a unique edge to
investment in robotic process automa-
its overall business model.
tion (RPA), and honed initial pilots
“In the mobility business, we see
within its financial services activities.
that information is a much bigger
J U LY 2 0 1 8
ASIA
part of the experience than ever
tinue to push more into digitalisation.
before. We're doing this both inter-
From integrating with the client's
nally and externally with customers
records management system, to
and seeing more investment on our
being able to provide digitalisation of
front. It links us with customers in a
records and performing complex
stronger way, especially when we are
transactions on those documents,
integrating with their HR platforms,�
storing or delivering them, we are
concludes Madrid.
meeting expectations that have
“On the records side, we will con-
never been there before.�
w w w. s u p p l y c h a i n d i g i t a l . c o m
185
Exceptional entertainment, exceptional procurement WRITTEN BY
LAURA MULLAN PRODUCED BY
DENITRA PRICE
Every year, BCLC gambling activities generate more than $1 billion to support provincial programs like healthcare, education and much more. In doing so, BCLC also delivers exceptional entertainment to players; however, none of this would be possible without leading procurement practices
B R I T I S H C O L U M B I A L O T T E R Y C O R P O R AT I O N ( B C L C )
BCLC IS A CANADIAN CROWN CORPORATION MANDATED TO CONDUCT AND MANAGE LOTTERY, EGAMING, AND CASINO ENTERTAINMENT ON BEHALF OF THE PROVINCE OF BRITISH COLUMBIA.
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BCLC delivers socially responsible entertainment to customers while delivering important revenue to support healthcare, education, community programs and charitable organisations across British Columbia. Commercial gambling in B.C. is a $3.3bn-a-year industry and in 2016/17 BCLC delivered $1.3bn in net income to the province to support services that British Columbians count on, like healthcare, education and more. To ensure that it achieves best value for money, BCLC has undergone continuous procurement transformation to drive driving cost efficiency, sustain vendor relationships and champion best business practices. “This transformation continues to impact the company in a J U LY 2 0 1 8
“BCLC continues to evolve, and what was considered efficient and acceptable two years ago is being continually questioned as we look to drive efficiency in order to compete with the overall entertainment industry for customers’ discretionary dollars” — Keith Bolen, Director, Corporate Procurement
CANADA
RIHF 2018 Radiothon Sponsor BCLC
big but positive way,” explains Keith Bolen, BCLC’s Director of Corporate Procurement. “It’s helping us deliver products to the customer that are fresh and help keep them entertained.” “BCLC continues to evolve, and what was considered efficient and acceptable two years ago is being continually questioned as we look to drive efficiency in order to compete with the overall entertainment industry for customers’ discretionary dollars,” Bolen adds. “Procurement is an integral part of the organisation’s operations because we interface with all departments across the enterprise, whether it’s at a transactional level, ensuring that orders are placed or invoices are paid, or up to a strategic level, where we’re partnering with business units to source critical services and materials,” he continues. “Therefore, we have to continually question the status quo and look for better ways to deliver our services in a faster, w w w. s u p p l y c h a i n d i g i t a l . c o m
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B R I T I S H C O L U M B I A L O T T E R Y C O R P O R AT I O N ( B C L C )
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‘Every year over $1bn goes back to the province to help fund healthcare, education and much more’ efficient manner.” As a Crown corporation, there are strict rules that BCLC follows on a day-to-day basis. The company is subject to significant oversight, whether it’s through Canadianbased laws and regulations, international trade agreements, audits or the necessity of preserving its integrity and brand. It’s clear that this same integrity and J U LY 2 0 1 8
meticulous approach also applies to BCLC’s procurement practices. As part of its transformation story, BCLC has embraced a centralised procurement model. “This procurement transformation journey started through centralising the procurement process across the enterprise,”
CANADA
says Bolen. “We scale the complexity of the sourcing methods to fit the individual business objectives, within the confines of public procurement practice. For example, the processes that we implemented to justify contract awards within our lottery division are the same for other business divisions across the organisation.” Digitisation is also starting to reshape BCLC’s procurement function, making it more efficient and visible than ever before. Bolen describes his team’s increased engagement and efficiency thanks to the streamlined technology, such as an e-sourcing tool called Bonfire. “Vendors register and sign into the system and download their proposals to Bonfire, and then the system facilitates the evaluation process using an automated scorecard,” Bolen explains. “The Bonfire system has organised the information in such a manner that it’s greatly improved the efficiency of how evaluators access the proposals and greatly enhanced how each evaluator may compare each response to a question across every proposal. It’s provided us with real-time reporting as to which vendors have replied, what stage each evaluator is at in reviewing proposals, and elapsed time taken at each
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1985
Year founded
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“We have to continually question the status quo and look for better ways to deliver our services in a faster, efficient mannerdollars” — Keith Bolen, Director, Corporate Procurement milestone in the review process. “The product is highly scalable, so we’re able to manage a significant number of bid solicitations at any one time, and it’s also highly configurable as we tend to have fairly complex methodologies that we apply to our scoring method.” By reducing the administrative burden of the process, Bolen says that BCLC has warmly received this digital tool. In conjunction with this, the entertainment gaming company has also applied automation to track its internal requests and approvals. “We have another system in place called ServiceNow, which is an enterprise-wide ticketing system that captures and digitises specific requests,” Bolen says. “It supports and tracks communication
between procurement and the requester and it also supports approval workflow. On top of this, it also creates those records that are very helpful for reporting and looking back historically at decisions that were made.” Looking to the future it seems that more technological innovation could be on the cards at BCLC. “I expect we will see exponential adoption of new technologies, such as cloud services,” predicts Bolen. “As an example, we are moving in favour of adopting a service that requires less capital investment and is scalable to fit the peaks and valleys of demand. “I think we will also see a continued, steady adoption of automation in our business process,” he continues. “As we learn how to manage big data, I think we’ll see that our marketing efforts will become more targeted, as opposed to broad approach to marketing.” Like many organisations today, BCLC is also championw w w. s u p p l y c h a i n d i g i t a l . c o m
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B R I T I S H C O L U M B I A L O T T E R Y C O R P O R AT I O N ( B C L C )
BIO
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Keith Boden is a public procurement specialist who has held the position as Director of Corporate Procurement with BCLC since 2009. Prior to that he worked in purchasing with the company, after joining from Fraser Health Authority where he worked initially as a buyer and Purchasing manager.
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ing a lean and agile methodology, which Bolen describes as a “natural progression” to its transformation story. “As we changed and improved on our business processes, we found that there is a constant need to improve business processes,” reflects Bolen. “There’s a real drive to keep our operating costs in check and, in order to do that, we have to become more efficient with the existing resources that we have. One way to do that is to look at lean and agile methods to help us better utilise our resources so we can get more done without existing resources.” Undertaking a companywide transformation is no easy feat and at BCLC, but it seems that the company of 920 employees has been vital in making its vision a reality. With offices in Kamloops and Vancouver as well as field staff across the province, a
CANADA
belief in strong leadership and innovative thinking is apparent throughout the company. “The senior leadership in the organisation continually challenge the status quo,” explains Bolen. “At BCLC, we have a complement of senior leadership expertise that make up our Executive team. The executive team consists of leaders that have joined BCLC from other industries as well as those who have been with the organisation for upwards of 15, who bring a variety of different and fresh perspectives to the business. “The culture of the organisation is described as being very entrepreneurial in that there is a real desire across the organisation to try new things and challenge the status quo,” he adds. On the road ahead, Bolen predicts that there will be increasing legislative requirements and transparency needed by public bodies. “The biggest challenge we have today is really competing at
that private-sector level within the confines of a government entity,” he reflects. “We’re held to a much higher standard through legislative rules and that causes internal conflict in the sense that we want to move quickly and we want to make business decisions rapidly, however, we have rules that we have to follow that actually prevent us from moving as quickly as we might otherwise.” Another core challenge Bolen sees is the need to stay relevant with its customers. “The other challenge is really staying relevant with the population base because as the population ages our main players are ageing as well,” he says. “As a result, we promote innovation so we can stay relevant with our players and remain a viable revenue-generating organisation.” With the continued efforts supporting procurement transformation, a keen eye for innovation and a dynamic team behind it, it seems BCLC is set to continue on its upward trajectory.
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GM
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DELIVERING THE ELECTRIC AND AUTONOMOUS VEHICLE SHIFT IN THE MIDDLE EAST Through electric vehicles, General Motors looks to define the automotive supply chain future of the Middle East WRITTEN BY
DALE BENTON PRODUCED BY
HEYKEL OUNI
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GM
I
n the ever-evolving conversation centred around the autonomous and electric vehicles of the future, one could be easily forgiven for failing to recognise the impact this will
have on the manufacturers and the procurement networks of the automotive and transportation sector. As the eyes of the world focus on when we will see EVs and autonomous vehicles, the question should really be how. For General Motors, one of the world’s leading automotive manufacturers, this conversation is more prescient now than ever before. “Across our entire global footprint GM is evolving to deliver in line with our technological capabilities across the mobility industry and
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that means that we have to work closer
Over the course of his career, Pallak
with our suppliers across our global
has worked all around the world in both
network in order to deliver and support
engineering and procurement and sup-
this direction.� says Sulaiman Pallak,
ply chain roles across multiple industries.
Head of Global Purchasing and Supply Chain. For the last three years Pallak has
It is this experience, working with suppliers from all over the world in different disciplines and different capacities,
been responsible for delivering this new
that Pallak feels provides him with
strategy across the Middle East, with the
a keen understanding on how supplier
vision of establishing GM as the leading
relationships can and will prove key to
automotive brand in the EV space.
defining the future of GM.
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Your life. Our world.
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“With the global footprint that we have at GM, there are suppliers and there are areas in procurement and purchasing that are more complex and in different markets that requires a certain level of understanding,” he says. “My experience provided me with an understanding of how to look at those varying elements and then prioritise the company’s thinking as to how we can make informed decisions that involve sourcing the right materials at the right price and on time.” As the company continues its evolution from a traditional automotive manufacturer, part of this journey will see GM redefine a number of supplier and partner relationships and Pallak firmly believes that procurement as a function has evolved into much more of
“GM is changing its strategy to move into the electric vehicle and autonomous technology space and that means that we have to work closer with our suppliers across our global network in order to deliver and support this direction” — Sulaiman Pallak, Head of Global Purchasing and Supply Chain
an influencer in company strategies all over the world. With manufacturing facilities worldwide, GM has a responsibility to, as Pallak explains, operate the supplier networks surrounding these facilities like a “well-oiled machine”. This is no more apparent than in the Middle East, an w w w. s u p p l y c h a i n d i g i t a l . c o m
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GM
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emerging market in the procurement industry. “It is true that the Middle East is still growing in maturity when it comes to purchasing and procurement,” says
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Pallak. “But that makes it a very good market because companies are investing in people, technology and processes in order to grow the market.” “As the economy of the region grows it compels different areas of industry and different professions to grow alongside it.” Being one of the biggest manufacturers in the world carries with it a level of responsibility that will prove key in pushing the Middle East procurement space towards becoming what CIPS has described as a potential procurement hub of the world.
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GM
This is part of GM’s strategy as the attention turns towards the supply of parts and materials being predominantly sourced from suppliers and manufacturing partners from other parts of the world and then shipped to the region. But how can GM seek out more efficient and more effective ways of getting products to market? Investing in the region and developing a network of suppliers that are local, removing the dependency on sourcing from all around the world, is one answer. “As we push to become the number one 204
automaker in the region we need to push the ability to supply and our supply chain needs to become more forward thinking and more proactive,� Pallak says.
BIO
Sulaiman Pallak is a senior executive with over 10 years of experience managing procurement, supply chain and logistics transformation in Fortune 500 companies. Leading multiple staff responsible for annual $165 million+ global purchasing and supply chain operations with focus on continuous J U LY 2 0 1 8
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“How do we get our products into the region? How do we sell them to our dealer network? How do we reach our consumers? These are the questions we need to ask and in order to become the number one in the region, we need to engage with key 205 partner suppliers” — Sulaiman Pallak, Head of Global Purchasing and Supply Chain
business improvement in a very large global corporate structure. Sulaiman is also a senior leadership member of GM Middle East Operations. Multiple General Motors Leadership award winner for significant contribution to improve corporate performance.
Education: • M BA. Supply Chain & Logistics from S.P. Jain University, Singapore • BSc. Business Administration from Manchester Metropolitan University, United Kingdom w w w. s u p p l y c h a i n d i g i t a l . c o m
YOUR PARTNER IN AUTOMOTIVE RESEARCH in 89 international markets
Celebrating 30 years in the MENA region @IpsosMENA
www.ipsos.com
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“How do we get our products
tion that is defined by its supplier
into the region? How do we sell
capabilities and to this end the
them to our supplier network?
company implements a global
How do we reach our consum-
strategy called the Strategic
ers? These are the questions
Supplier Engagement Program.
we need to ask and in order to
Through this initiative, GM
become the number one in the
creates a transparent supply
region, we need to engage with
chain network by sharing current
key partners.�
designs and blueprints for prod-
The company aspires to manufacture and sell best in class
ucts often years in advance. This, Pallak feels, allows a far
products and automotive vehicles.
more collaborative supplier rela-
Pallak notes that this is an aspira-
tionship that creates tangible w w w. s u p p l y c h a i n d i g i t a l . c o m
MENA
INNOVATING THE WAY BRANDS ARE BUILT
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benefits for both the supplier and
ning to establish a Strategic Supply
for GM.
Council. This council will work with
“We show the suppliers our
GM to identify ways in which the
designs and our blueprints, as
suppliers can generate cost effi-
well as sharing the volume that
ciencies and find greater efficiency
we’d need for these future designs,”
in getting products to market.
he says. “In return, we get information about raw materials and
Supply Excellence Award, in
technology that they can develop
which GM highlights the best of
years in advance. Information that
the best suppliers in regards to
we can use and adopt to our plans.”
their collaboration. These awards
Pallak is currently working to take this supplier engagement further in the Middle East by plan-
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This is supported by an internal
will help define the Strategic Supply Council. “In the future GM will plan to
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“As a company, we learn to ensure that the customer is at the centre of everything we do” — Sulaiman Pallak, Head of Global Purchasing and Supply Chain
form the Supply Council for the Middle East from a wide range of strategic suppliers that we develop as we expand,” Pallak says. “This council will be the acting voice for GM as we seek out and define our future supplier portfolio.” GM’s journey is one of continuous evolution. No journey can ever truly end and Pallak recognises that while this is a journey of transformation for the company internally, there is one key component that cannot be forgotten – the customer. “As a company, we learn to ensure that the customer is at the centre of everything we do,” he says. “Every product, innovative technology or efficiency that we enable is done so through customer focused priorities. “Is the customer getting the right product, at the right time, at the right quality? Is the customer getting the right care of service once the vehicle is sold?
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GM
$166bn Approximate revenue
1908
Year founded
180,000 210
Approximate number of employees
Click to watch: Pioneers Cadillac 2017 Oscars Commercial
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Do we have suppliers to provide the right care? These are the questions we must continue to ask ourselves as we continue to grow.” Technology has redefined the automotive industry and this has forced GM to redefine its entire operations. Pallak believes that the next five years will prove crucial, as we can expect to see more developments in technology than we have over the last 50 years. As it looks to embrace this future, GM will continue to work closely with partners and suppliers to develop solutions and technologies in order to be ready for this changing landscape. That is what will continue to prove key for Pallak- collaboration. “It’s about positioning ourselves to be ready for when this market matures. We can only do this through the relationships we forge with suppliers. We develop long term strategic relationships in order to ensure that these suppliers can process the products so that we can deliver them to market and of course, ultimately, the customer.”
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S . A . TA L K E
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Superior
logistics from A••••to••••B WRITTEN BY
LAURA MULLAN
PRODUCED BY
HEYKEL OUNI
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Standing as one of Saudi Arabia’s leading petrochemical logistics providers, S.A. TALKE shares its strategy for success ith the nation’s ‘Vision 2030’ on the horizon, Saudi Arabia has ramped up its efforts to diversify its economy and reduce its dependence on oil. As such, it has turned its attention to another lucrative commodity – petrochemicals. The Saudi petrochemical industry is critical to the Kingdom’s non-oil economy, with chemical and plastic exports accounting for around $30bn in export revenues in 2015. Saudi Arabia’s efforts to tap into the global petrochemical market is paying off and it seems
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no company understands this better than S.A. TALKE. Earning its stripes as one of the country’s leading logistics service providers, S.A. TALKE offers a range of specialised logistics services such as onsite and off-site operations, packaging, storage, transport as well as value-added services. Established as a joint venture between the German TALKE Group and the Saudi Sisco and Al-Jabr Groups, Managing Director Oliver Klingbeil says that S.A. TALKE has worked hard to cement its position in the region. “I’ve been in the logistics busi-
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“ We’re always defining new ways and new parameters to make safety. This is the culture we uphold and live by every day. You don’t achieve 6mn man hours without LTI without this culture” — Oliver Klingbeil Managing Director
ness for over 30 years,” Klingbeil says. “When I first started at S.A. TALKE in September 2010, I had a team of around 274 staff and we had one project. Now, eight years later, we have close to 1,800 employees and 12 operations in place. “In the beginning, we were not well known in the market, but since we were founded we have consistently developed our expertise and reputation. “We depend on certain parameters, like the oil price, but
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where others haven’t been so successful, we have seen strong growth,” he continues. “We’ve significantly increased our revenue and our net profits. We are always project-driven and have gained awards for our projects. We’ve branched out from our European partners (ALFRED TALKE) and established our brand of S.A. TALKE, which is well-known in Saudi Arabia and the Middle East.” As part of the business, S.A. TALKE handles solids and liquids in the petrochemical sector from J U LY 2 0 1 8
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companies such as SABIC and Chev-
region. Today one of our biggest pro-
ron Phillips – both offsite and onsite.
jects is the Petro Rabigh project phase
The firm can manage entire logistics
II in the western region, which is a joint
centres or individual facilities on its cli-
venture between Saudi Aramco and
ent’s behalf and can also offer offsite
Sumitomo. Through the project, we
multi-user facilities to manage and han-
manage five plants and we have
dle products.
started with 350 staff but we plan to
Last year S.A. TALKE handled
increase the number of staff to up to
around 8.4mn tonnes of products for its
800 people based on how many addi-
customers. Yet, despite its growing
tional projects we see there.
reach, Klingbeil says the firm takes a
“Of course, we also have projects with
project-driven approach to ensure
various SABIC affiliates,” he adds. “We
each project receives the utmost care
manage their Portside Logistics Facil-
and diligence.
ity, which is a 350,000 sqm container
“One of my personal goals was to step into the market in the western
yard where we have the daily movement of around 500 to 700 containers. w w w. s u p p l y c h a i n d i g i t a l . c o m
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We also work with Chevron Phil-
manage their container yards and
lips where we manage the entire
some of their products. Then, not to
site for them with two dust free
forget, in Yanbu in the Western region,
warehouses on the site close to
we have a contract with NATPET where
around 100,000 sqm.
we also manage their onsite opera-
“On top of this, we have the Tasnee project where we now
tions.” With experience in projects stretch-
have five existing operations we
ing across Saudi Arabia, one thing
manage. We also have business
remains constant at S.A. TALKE – the
with Dow Chemicals, where we
company’s drive for efficiency and pro-
have a dedicated warehouse
ductivity. With scrupulous monitoring
which we manage for them.
and technological ingenuity, S.A.
“Additionally, we also have business with Sadara, which is a joint venture between Aramco and Dow Chemical where we
TALKE ensures that it upholds best in class standards. “Every day we measure our operations to see how we can become w w w. s u p p l y c h a i n d i g i t a l . c o m
S . A . TA L K E
better, more efficient and productive.
The future of logistics is one
We have regular meetings about safety,
which is paved with new innova-
operations, optimisation and finance,
tion and technologies and this is
for example, because the business is
also the case at S.A. TALKE.
not standing still. “We manage and monitor every
Using automation and SAP software, for instance, S.A.
product individually. Every project
TALKE is driving efficiency like
stands for itself,” he adds.
never before.
This continuous improvement is also having a knock-on effect on the company’s safety standards. In fact, in January, the Saudi firm achieved 6mn safe man-hours without Lost Time Injury (LTI) across all the company’s 220
projects. It’s a proud achievement, says Klingbeil, and one which he believes wouldn’t be possible without the company’s high safety standards. “We have a very dedicated safety department and a strong safety culture,” he observes. “Our safety standards and procedures are important to the firm. It starts with myself and we live this culture through every single person. “We’re always defining new ways and new parameters to make safety. This is the culture we uphold and live by every day. You don’t achieve 6mn man hours without LTI without this culture.” J U LY 2 0 1 8
“ Our core business always will be in the petrochemical market, that is what we do best. But we are also looking to explore other market segments” — Oliver Klingbeil Managing Director
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“Technology is very important
implemented several new software
as it’s helping us to save time and
solutions in our finance, procurement,
be more efficient,” Klingbeil says.
and HR department.”
“We’re also working on monitor-
With several large-scale logistics con-
ing and managing truck terminals
tracts in its portfolio, S.A. TALKE’s core
so that we can manage these
competency is namely the transporta-
processes and see the entire sup-
tion and handling of liquid chemicals.
ply chain. Internally, we have also
However, keen to keep pace with a
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rapidly changing market, Klingbeil says that the company is preparing a plan B and C, in case of disruption in the market. Leveraging the world-class reputation it has developed in the oil and gas market, the Saudi firm says it is going to combine its core competencies with other market niches to remain ahead of the curve. “Our core business always will be in the petrochemical market, that is what we do best,” says 222
Klingbeil. “But we are also looking to explore other market segments.” “We’re exploring doing trucking in the future for dedicated customers in the chemical market because there is a huge demand for this and we’ve also been looking into managing railway terminals. “We’ve just been awarded a contract from SABIC whereby we will manage their truck terminal in the future, which is a movement of around 750 trucks per day. At the moment we still have a long way to go but, on the J U LY 2 0 1 8
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other hand, you cannot start early
employee accomplishments, pro-
enough if you want to get knowl-
mote open communication and
edge and experience in this field.”
hire a diverse range of people,
It seems that agility is key to
even hiring the company’s first
S.A. TALKE’s day-to-day opera-
female employees.
tions, yet despite its dynamic
“The biggest gift is that we
ethos, the company is keen to
have so many incredible team
uphold its core businesses and
members and leaders who are
retain its existing customers.
supporting the company and our
“The world is changing, the market is changing, and there-
clients every day,” he notes. In keeping with Saudi Arabia’s
fore, we also have to be careful
‘Vision 2030,’ S.A. TALKE has
that we don’t lose existing busi-
also encouraged the employ-
ness,” Klingbeil says.
ment of Saudi workers through
“Like any other industry, we
the Kingdom’s ‘Saudization’ pro-
have competition and we
gramme. However, Klingbeil
shouldn’t underestimate them.
doesn’t underestimate the chal-
Therefore, we are working hard
lenges that this task brings.
to retain our business and we are
“We’ve recently been awarded
continuously making an effort to
two new projects where we will
offer our clients the best service
need to bring in more manpower.
at very competitive rates to make
It’s a challenge because we need
sure that we continue to grow
experienced people, which we
and optimize our business on a
can’t always hire from within the
day to day base.”
country. On the other hand, the
Aside from the company’s
sector is also becoming more
best in class practices and dis-
open and so we have hired our
tinctive strategy, Klingbeil
first female employees which I
believes that the true success of
am proud to see.
the company lies in its people. The Saudi firm strives to reward
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S . A . TA L K E
country’s ‘Vision 2030’. I hope from a midand long-term perspective, it will help the country to move in the right direction.” By offering in-depth training and high-quality accommodation, the Saudi firm has created a work environment that Klingbeil describes as an “S.A. TALKE family”. With an employee turnover of only 3-5%, this closeknit atmosphere has paid off. “In our organisation, an employee isn’t a number; an employee is a respected person who we are glad that we have on board,” notes Klingbeil. "We don't categorise, we treat everyone the same. We say to our peo224
ple, ‘you’re not only an employee, you are more. You have valued assets’. This culture is important to S.A. TALKE.” The road ahead is an exciting one for S.A. TALKE. With a proven strategy for success as a logistics service provider, the firm is also exploring other avenues in the market such as the FMCG and pharmaceutical sector. With Saudi Arabia’s ‘Vision 2030’ ahead, Saudi Arabia is set to continue on its upward trajectory and S.A. TALKE is set to follow suit.
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“ The biggest gift is that we have so many incredible team members and leaders who are supporting the company and our clients every day” — Oliver Klingbeil Managing Director
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UMNIAH
SUPPLY CHAIN MANAGEMENT KEEPS JORDAN CONNECTED 226
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MIDDLE EAST
From WiMax to 4G, Umniah’s supply chain management brings last mile service to homes, businesses and customers across Jordan. WRITTEN BY
OLIVIA MINNOCK
PRODUCED BY
HEYKEL OUNI
227
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UMNIAH
S
ince its launch in June 2005, Umniah has become a leading player in the telecommunications space, offering
high quality mobile, internet ad business solutions and transporting Jordan’s telecommunications services. Umniah, owned by the Bahrain-based telecoms specialist Batelco Group, is the third operating Telecom provider in Jordan. “Umniah isn’t the biggest provider in terms of customers but is the market leader in price. In addition, we maintain a high level of quality,” reveals Head of Supply Chain, Ahmad Almubuslat. Umniah has a commitment to procurement 228
and supply chain management as an integral part to its overall strategy, and this was what first attracted Almubuslat to move to the telco world. His career in procurement began with Royal Jordanian Airlines. “I started with no certificate, following the current policies and
its supply chain and contribute to
procedures of the company, but by 2009 I
networks across the nation,
started following leading practices and gaining
becoming Jordan’s fastest LTE
professional certification.” Almubuslat became
network for 4G and Fixed in 2016.
the first Jordanian to gain the Certified Purchas-
Of the three main markets in Jor-
ing Manager Qualification from the Institute for
dan – voice, mobile data and
Supply Chain Management, following this up
managed data services (MDS) for
with several other certifications. In 2014, he was
business – the third was largely
headhunted by Umniah. “I accepted to join the
developed by Umniah and utilises
company because of Umniah’s belief in pro-
microwave links. “In Jordan,
curement as a strategic function.”
Umniah has a very big market
Since then, Umniah has worked to manage J U LY 2 0 1 8
share for MDS across different
MIDDLE EAST
229
industries and for individuals too,” says
did not stop there. “We have a huge
Almubuslat. “We also have a very com-
market in other governorates which are
petitive share in home internet.”
large concentrated areas. The credit
Within these segments, Umniah
goes to our quality of coverage,
works to not only deliver cost savings
together with a good service at the right
but high quality too, thanks to relation-
price,” Almubuslat explains.
ships with suppliers. “We adopted the concept of the total value of ownership,
GETTING THE PRICE RIGHT
not just cost, in order to deliver the best
Getting this “right price” is a key
value at the best price”. Within the vari-
responsibility of Almubuslat and his
ous governorates of Jordan, Umniah
supply chain team, as it’s all about
expanded in the capital, Amman, but
effectively negotiating with suppliers w w w. s u p p l y c h a i n d i g i t a l . c o m
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“WE HAD TO THINK OUTSIDE THE BOX, AND THIS WAS THE SOLUTION WE FOUND TO BRING BEST VALUE FOR US AND FOR THE MOE”
venture between suppliers and
— Ahmad Almubuslat, Head of Supply Chain
tractors to deliver the best price.
“The competition was tough, but we did something different by developing new ventures and partnerships with suppliers,” says Almubuslat. Umniah developed a manufacturers, utilising local con“We had to think outside the box,
and managing an efficient procurement strat-
and this was the solution we found
egy. “Once I joined, we agreed to develop a
to bring best value for us and for
supply chain function, which we have success-
the MoE. We then provided free
fully managed this year.” Almubuslat heads up
safe internet to all schools through
this new dedicated function, which plays an
the ministry, to support the eleva-
important strategic part for the company.
tion of Jordan’s education system.”
With this in mind, Umniah has already won some important tenders with organisations as large as the Ministry of Education (MoE), with the Connectivity Tender, a five-year contract, having been awarded in May 2016. “The main scope of the MOE Tender was to provide connectivity by establishing links for around 3,000 schools, directorate and administrative buildings in Jordan. This was almost the size of a new network, in addition to other requirements relating to attendw w w. s u p p l y c h a i n d i g i t a l . c o m
231
UMNIAH
“WE BELIEVE IN EVALUATING THE TOTAL VALUE OF OWNERSHIP, NOT JUST COST” —
Ahmad Almubuslat, Head of Supply Chain
an extended value in having a real partnership in place with our suppliers: engaging suppliers at the earliest applicable stages will strengthen our sincere intention of having the ownership of all stakeholders internally and externally. “We also believe in and support our suppliers, most of which are mid-sized and easier to work with and grow. We’ve managed to develop two medium sized suppli-
232
SUPPLIER RELATIONS
ers to become huge, competitive
Maintaining healthy relationships
companies in Jordan. We also
with suppliers and getting them
develop relationships with manu-
behind Umniah’s vision is essen-
facturers. I have the choice
tial. Umniah promotes Early
between buying equipment then
Procurement Involvement (EPI).
awarding another supplier the
“Umniah believes in the value of
installation, versus developing a
procurement and the value our
venture under our supervision.
team brings to the organisation
While the latter can initially be cost-
through gaining better offers,
lier, I choose to manage that
time to market and margins, and
long-term business relationship as
it’s important to engage at an
it works out better overall in terms
early stage,” Almubuslat explains.
of pricing in this specific case.”
“This was also reflected on the supplier side by implementing Early
END-TO-END BENEFITS
Supplier Involvement, specifically
Efficient supply chain manage-
for the strategic projects. There is
ment not only makes savings, but
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233
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ensures consumers get what they want, when they want. “There are
Jordan also has a special geo-
some strategic items like SIM
graphical nature. “We have a lot of
cards and CPE (consumer-prem-
mountains and valleys, which
ise equipment such as routers) for
might limit what one site can cover
example that we need to have
in terms of area, so we’ve
available at all times,” explains
increased our number of sites. We
Almubuslat. A close eye is kept
also changed our CPEs to provide
on quality. “We’re buying the net-
CPEs that deliver the best value by
work equipment at the best price,
having excellent indoor coverage
but the customer will not be able
at the best price. This was initiated
to benefit properly from our net-
by the Supply Chain department,
work unless we have a good CPE
working alongside engineering and
that can deliver the service with
marketing teams.”
such a quality and speed.” J U LY 2 0 1 8
In terms of quality challenges,
New network licences were also
MIDDLE EAST
Click here to watch our video ‘Inspired by you’ 235
introduced to improve CPE cover-
“Adapting the current assets in
age, since different licences
delivering the latest technology
available on the same site may give
guaranteed the best time to mar-
better service to individuals or
ket and the best value. For
companies. “We explored the
instance, we have upgraded
market through our suppliers to
some existing sites to host LTE
check which licences were worth
Fixed Technology.”
investment and found a licence that enhances coverage for the
STRATEGIC FUNCTION
customer. The price was peanuts
Batelco Group has recently
compared to the value of the ser-
revamped the Procurement Poli-
vice delivered to the end user.”
cies in order to assure having the
Service quality has also been
best value for money in an agile
improved with the delivery of a
frame. A collaborative process
new 4G network for Jordan.
within Umniah ensures each conw w w. s u p p l y c h a i n d i g i t a l . c o m
UMNIAH
tract awarded is compliant and shortens the approval process. “We always ensure full compliance with the Policies and Procedures, of both the Batelco Group and Umniah Mobile Company,” says Almubuslat. “Before making any strategic step we get the blessings of the Group and the board. We conduct pre-delivery inspection and on delivery inspection, and after that, we have multiple acceptance levels within a reasonable timeframe to 236
assure that what is delivered is in line with what is requested.” In addition, it is important Umniah ensures compliance with requirements from third parries including government entities. This is mandatory at all stages of the supply chain journey. “Umniah Mobile Company is the first telecom operator to join the Golden list under the Customs Department,” Almubuslat adds. Umniah uses internally approved contract templates which act as framework agreements with key suppliers.
J U LY 2 0 1 8
“WE HAVE A HUGE MARKET IN ZARQA WHICH IS A LARGE, CONCENTRATED AREA. THE CREDIT GOES TO OUR QUALITY COVERAGE, TOGETHER WITH A GOOD SERVICE AT THE RIGHT PRICE” — Ahmad Almubuslat, Head of Supply Chain
MIDDLE EAST
“Awarding has become much more agile than before; this will enable us to enhance the time to market. We place a new annex/ addendum for the new scope with the associated pricing and then issue the Purchase Order.” Strategic sourcing is a key function under Umniah’s Supply Chain department. “We continually scan the market and conduct due diligence of benchmarking, not only in terms of pricing but also value, features and new technologies tobe included.” Umniah Mobile Company is always keen to maintain its position as the price leader in the market, and this can be sustained and accompanied with better quality through a proactive Supply Chain department.
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237
DHL
238
DHL Global Forwarding sets the supply chain standard in Ghana J U LY 2 0 1 8
AFRICA
239
Recently granted both ISO 9001:2015 & 14001:2015 certification, Serigne Ndanck Mbaye discusses how DHL Global Forwarding continues to unlock key opportunities to enhance its supply chain across Ghana WRITTEN BY CATHERINE STURMAN PRODUCED BY JUSTIN BRAND
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DHL
S
ince the 19th century, the logistics industry has undergone significant
transformation. Technology has influenced the way in which we order, transport and store various goods, leading consumers to demand the ability to receive products solely at the click of a button. Since its inception in the late 1960s, DHL, (named after its founders Adrian Dalsey, Larry Hillblom and Robert Lynn), has undergone rapid global expansion, transforming consumer expectations. With an unfaltering promise to deliver goods 240
anytime, anywhere, the company’s core values – passion, entrepreneurship, excellence and teamwork – fully underpin its customer-centric approach across its operations. With group revenues exceeding €55bn
orating across its business units, from DHL Express and DHL Global
($64.3bn), its entrance into the Ghanaian market
Forwarding (DGF), to deliver inte-
in the 1970s led the company to undertake
grated logistics solutions.
considerable growth. Now spanning over
Working in various roles under
200 countries, DHL Global Forwarding
the company’s extensive portfo-
Ghana (DGF), seated under DHL’s umbrella,
lio, Country Head at DHL DGF
has been central to its cross-trade shipment
and Cluster Head for Ghana, Cote
capabilities.
d’Ivoire and Senegal, Serigne
Providing charter solutions for oversize,
Ndanck Mbaye, explains how he
heavyweight cargo, dangerous goods, per-
has brought the company’s strat-
ishables and valuables, the division delivers
egy to life to boost DGF’s visibility
essential freight services across land, road
and bolster financial revenue.
and ocean to all 10 regions in Ghana, collabJ U LY 2 0 1 8
“I started with DHL Express
AFRICA
“ Visibility is key and our vehicles are equipped with tracking devices and drivers with tools which provide real-time visibility on the shipment progress” — Serigne Ndanck Mbaye, DHL DGF and Cluster Head for Ghana, Cote d’Ivoire and Senegal 241
under several management positions in sev-
this part of the world and has not
eral countries. I’ve been promoted by DGF as
been under focus up until recently.”
the Country Head for our Senegal Company in 2011. It was loss-making at that time, but with
TECHNOLOGICAL CAPABILITIES
our team we were able to turn around the busi-
To support its considerable growth,
ness within a year and stay profitable, achieving
DGF continues to invest in new
our key targets throughout the years,” he says.
technologies to enhance its
“Within our environment where succession
solutions and remain the global
planning is a reality, it makes sense for me to
logistics leader as part of its core
also grow in terms of responsibility in a bigger
IT renewal roadmap.
market and sub-cluster. There are many
“Automation is part of the game
untapped opportunities that we are focusing
and throughout the years DGF
on in the region, particularly with commodities
has introduced state-of-the-art
and perishables which need our expertise in
technologies,” explains Mbaye. w w w. s u p p l y c h a i n d i g i t a l . c o m
“Distribution is a key element across
now undertaken in real-time through
the company’s international supply
our ESP solution via GPRS data trans-
chain. We have a manager in charge of
fer. Increased visibility, where we can
not only quality and HSE requirements,
see action happening in the field, as
but also cost and lead time targets.
well as proof of delivery where custom-
Visibility is key and our vehicles are
ers sign on the screen, are all
equipped with tracking devices and
integrated in the reporting and tracking
drivers with tools which provide real-
with the GPS location, which supports
time visibility on the shipment progress.
delivery, pictures, and exception man-
We also have reporting platforms to
agement. Any document related to the
assess performance and develop action
shipment either transport, commercial
platform when required.
and regulatory is also supported by our
“Updating shipment processes are
front-end solution which ultimately
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AFRICA
“ There are many untapped opportunities that we are focusing on in the region, particularly with commodities and perishables which need our expertise” — Serigne Ndanck Mbaye, DHL DGF and Cluster Head for Ghana, Cote d’Ivoire and Senegal
243
eases the life of our customers. We are
pany is not one to rest on its laurels. From
truly at the forefront of digitalisation
a sustainable viewpoint, DGF has also
and logistics innovation,” he continues.
implemented a paperless solution by
“We also have a competitive advan-
installing its electronic document man-
tage through DHL Interactive, which is
agement tool. This has enabled
our front-end tool that offers end-to-end
documents to be dematerialised, as
shipment visibility. Customers can
part of its Go Green Initiative to reduce
access its three functionalities: book-
harmful emissions.
ing online, tracking the shipment process and customised reporting, which is auto-
SUPPORTING LOCAL COMMUNITIES
mated based on customer requirements.”
Whilst the business promotes partner-
Additionally, housing a fully scalable
ships with local companies which are
warehouse management system, as well
trained in data management, tools and
as an app to track shipments, the com-
logistics, DGF also outsources a numw w w. s u p p l y c h a i n d i g i t a l . c o m
DHL
ber of its services, such as haulage. Although it retains a fleet for specific needs, local selected and trained companies are routinely harnessed to support local communities. To give back to local communities, DHL GF Ghana since 2011, supports Operation Smile, which conducts medical programmes across Ghana in cities including Accra, Cape Coast, Tamale, and Tema for children and adults born with cleft lips. The Partnership started in 2011 with DGF Ghana giving free logistics solutions from 244
Accra (capital city) to the various medical stations in the country). In 2018 for the first time DGF Ghana took a trip down to Ho Regional Hospital to interact with the Operation Smile
“We invest in our eLearning
Team, Volunteers and Parents to further
platform with mandatory compli-
understand how DHL’s support is improving
ance courses, as well as many
lives and adding value.
more recommended courses for
There were more than 250 patients from all
the personal development of
over Ghana for screening for the surgeries.
employees. We also develop
Furthermore, internally, DGF seeks to
regional programmes, such as
improve existing processes to drive quality of
Build your Skills, Women to the
service. Its Employee Opinion Survey (EOS)
Top, and our leadership pro-
initiative, as well as its Employee Net Pro-
grammes, TELP, TEC LP and
moter Scores (ENPS) are essential in hearing
much more,” observes Mbaye.
the voice of employees, developing key
“All these courses count for just
action plans and enhancing active leadership
10% of the training and develop-
and engagement at the company.
ment of staff. We believe that our
J U LY 2 0 1 8
AFRICA
FACT
DGF was recently granted both ISO 9001:2015 & 14001:2015 certification DHL has undergone rapid global expansion, transforming consumer expectations. DHL’s core values — passion, entrepreneurship, excellence and team work, fully underpin its customer-centric approach
people learn more through on the job assignments and projects, and 70% on day to day activities, as DHL is a continuous working environment. This is a company where performance and behaviours are recognised and rewarded.” With globally dedicated teams in a number of different industry sectors, DGF seeks to deliver a comprehensive portfolio of integrated, end-to-end products and solutions geared to meet the needs of its customers. “There are still opportunities where we are already providing logistics solutions where we can still grow our market share,” notes Mbaye. “We are an international company that houses a global network with local expertise. We are fully compliant, deliver on our prom-
Group revenues exceed €55bn
ises, and have essential programmes which
DHL entered the Ghanaian market in the 1970s, and now spans over 200 countries
consistently improving with our innovation
help us give back to communities. We are centre and most importantly, we are truly customer-centric.”
DGF delivers essential freight services across land, road and ocean to all 10 regions in Ghana
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MTN SUDAN
246
MTN SUDAN: PROVIDING LEADING MOBILE AND INTERNET SERVICES IN AFRICA MTN Sudan continues to enrich the lives of its customers through innovative service solutions WRITTEN BY
DALE BENTON
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PRODUCED BY
ARRON RAMPLING
AFRICA
247
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MTN SUDAN
248
P
art of the wider MTN Group, MTN
pany that sponsored the 2010
Sudan is the African arm of the lead-
FIFA World Cup in South Africa.
ing provider of communication
But what is it that separates
services, cellular network access and busi-
MTN Sudan from other providers
ness solutions. The company brings together
of communication services? A
more than 230 million subscribers across its
commitment to innovation and a
operators all around the world in Africa, Mid-
continuous drive to enrich the
dle East and Europe.
lives of its customers.
It is the MTN Sudan arm that has taken the
“We are determined to lead the
spotlight over recent years, becoming the first
delivery of a Brave New World in
African telecom company ranked amongst the
the daily mobile communication
top 100 global brands according to Millward-
usage of our customers by inno-
Brown Brandz in 2013. The company also can
vating our friendly used services
boast at being the one and only African com-
and through our consistent provi-
J U LY 2 0 1 8
AFRICA
developing innovative and attractive packages and services that create a far greater customer experience. In today’s world of social media, communications service providers have to be able to allow their customers to access the biggest communication tools in the world in Twitter and Facebook. To this end, MTN has a Facebook Zero initiative. This initiative sees MTN prepaid subscribers being given exclusive access to Facebook through their mobile phones. Better yet, it is entirely free of charge. sion to make MTN customers lives a whole lot
Facebook Zero is a “light-weight,
brighter,” the company promises in its strate-
text based” version of Facebook
gic vision.
Mobile. All customers have to do is
“Customers are at the heart of what we do,
send a message to a designated
we guarantee to deliver the change for good.”
number provided by MTN Sudan
The way in which MTN Sudan achieves this
and they will be granted access to
is key. The company has invested heavily in
the social media platform, enabling
expanding its MTN network to cover more
customers to connect with their
than 500 regions across Sudan and in doing
friends and families at the touch of
so, the responsibility to keep the customers at
a button and on the go.
the heart of the matter expands with it. MTN encourages loyalty and strives for cus-
It is but one example of how the company works extremely hard to
tomer retention through the provision of the
do more than provide a simple ser-
highest quality services and continuously
vice to customer. w w w. s u p p l y c h a i n d i g i t a l . c o m
249
Powering digital customer interactions to transform customer experiences
Digital Content and Streaming Services
A2P Business Messaging Platform
Create compelling customer experience across mobile and digital touchpoints.
Value-added messaging to improve A2P monetization and operational efficiencies.
Video streaming Mobile games (HTML5) Voice services
Managed enterprise messaging layer Intelligent messaging routing Advanced micro-services
Working in partnership with MTN to deliver services across more than 20 countries in The Middle East and Africa.
For more information email: mea.sales@imimobile.com
imimobile.com
AFRICA
Click here to watch one of our lastest videos ‘MTN 4G’
251
Another key trend emerging in the world of communications is the rollout of 4G and 5G. While the maturity of communications and technology in Africa highlights that it is not quite there with regards to 5G, there is one perk for customers of MTN Sudan seeking a 4G connection. In the state of Khartoum, MTN Sudan provides customers with the MTN Start 4G internet service. This enables a “wonderful internet” experience for customers using their existing contract/SIM card setup. Much like its Facebook Zero initiative, customers simply dial a number and are presented with a choice of many packages that range from 1GB of data right up to 100GB of 4G data. But as the company continuously states, its goal is to w w w. s u p p l y c h a i n d i g i t a l . c o m
MTN SUDAN
lead the delivery of a bold new digital world to its customers and make their lives a whole lot brighter. One way in which it delivers on this, is through gifting. For a population of around 40 million people, MTN Sudan recognises that while most of its customer base continues to access its services it cannot forget about those that don’t. As a means of attracting more customers, and connecting them with the existing customer base, MTN Sudan has an incentivised offer of the MTN Freebie. Designed to “make someone’s day”, MTN Freebie allows prepaid customers the oppor252
tunity to invite their friends and family into the MTN Sudan family through gift internet bundles. But of course, the customer of MTN Sudan is not only the people in the street and in their homes. The company also offers communication and internet packages for business and enterprise customers. MTN Sudan provides a number of packages specifically tailored to business customers, whether they be small or medium enterprise, designed to maintain the effectiveness and efficiency of their work performance. As the market continues to grow and the telecommunications network becomes more stable and more mature, MTN Sudan is finely poised to lead the front on adopting and implementing technologies and solutions to J U LY 2 0 1 8
AFRICA
2005 Year founded
Operating in 23 countries in Africa, Middle East and Europe
253
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MTN SUDAN
254
continue to provide the greatest level of
of companies in the region that collabo-
service it can to its customer base.
rated on this pilot scheme, including
This is exemplified by the launching of Mobile Cash a few years ago. Cashless
EBS and the Central Bank of Sudan. While cashless payments are but one
payments are huge across the Western
example of technology innovation that
markets, but in areas like North Africa,
MTN Sudan is investing in, the future will
there is still a lag with regards to adopt-
continue to be defined by this techno-
ing this technology solution.
logical growth.
MTN Sudan successfully piloted a
Speaking at the successful conclu-
Mobile Cash solution as a means of
sion of the pilot scheme, Mr. Malik
highlighting this innovative solution to
Melamo MD, MTN-Sudan noted that the
the citizens of Sudan. In Sub-Saharan
scheme represented everything the
MTN Sudan was part of a conglomerate
company stands for as well as opening
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255
the market’s eyes to the opportunity of Sudan’s market. “The chances for the success of this project in Sudan are very high for the availability of a strong infrastructure of communication, besides that, Sudan is a promising healthy market for such mega-project which represents the top-notch payment and financial transactions system across the globe,” “MTN-Sudan is striving to deliver the highest quality of services and best solutions to its customers based on its vision and core commitment to lead the delivery of a new bold digital world to make their lives a whole lot brighter.”
w w w. s u p p l y c h a i n d i g i t a l . c o m
Supercharging procurement’s business value September 13-14, 2018 Venue Six10, Chicago
150
45
senior procurement professionals
US states represented
40
speakers & facilitators
85
unique companies represented
7+
hours of networking opportunities
A two-day event dedicated to improving stakeholder collaboration, delivering business value and creating competitive advantage Headline Partner
Insight Plus Partners
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