Supply Chain Digital – June 2019

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FOREWORD

W

elcome to the June edition listeners, and we’re great at multitasking of Supply Chain Digital!

– these are skills that are highly valued.”

This month’s issue brings us to Elsewhere, we interviewed Sandeep Toronto, where we attended Arora, VP Global Sourcing and ProcureCon Canada and rubbed Strategy at SPX Transformer shoulders with business leaders to Solutions, about the process of create some exclusive implementing a Sourcing features and video content.

Excellence Framework as For our cover feature, we part of its digitisation spoke to Sheri Spinks, a journey. prominent member of You also won’t want to Sheri Spinks, the Global Council for miss features with World GCAWP the Advancement of Vision, SEG Automotive, Women in Procurement, Turkcell, Applus, about how diversity has UnitingCare Queensland and become increasingly important in the Deloitte in what is another fully-loaded procurement space. edition! This month’s Top 10 looks at “I would encourage more women to the leading SCM Software Companies get into this space, to educate in the market today. themselves and to be vocal about the Would you like to be featured in value they can add to organisations,” the next issue of Supply Chain Digital? says Spinks. “Women really do have a Get in touch at different perspective on things like sean.galea-pace@bizclikmedia.com negotiation and relationship building.

Generally, we are more empathetic and Enjoy the issue! tuned in with others, we’re good Sean Galea-Pace

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CONTENTS

12

Exploring the changing role of procurement‌

24 Diversity is key to the evolving procurement function

34 Bringing ProcureCon Canada to life

54 Creating shared value, the right way

TOP 10

SCM software providers

70 42

Events & Associations

CONTENTS

74 SPX

112 SEG Automotive

94 World Vision

140 Applus

126 Turkcell

168 Deloitte

154 UnitingCare Queensland

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

Exploring the changing role of procurement… As the procurement function becomes increasingly prominent, we spoke to ProcureCon Canada attendees from IBM, Black & McDonald, JamesWay and CSA Group about what this means for the future of supply chains

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WRITTEN BY

JUNE 2019

OLIVIA MINNOCK

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

T

his April, Supply Chain Digital attended ProcureCon Canada to get the inside scoop on the latest advancements and challenges facing

the world of procurement.

The event’s sheer size and scope was testament to how the procurement function has grown and developed in just a few short years.

“If we reflect back two decades, we were seeing more of the back office support function: process-

14

ing and providing some support in terms of order issuance and invoice resolution management,” says Crithica Parthasarathy, IBM Procurement Services Practice Lead. “Today, we’re on the frontline with the C-suite team and it’s increasingly influencing the bottom line.”

Ankur Thakur, Director of Strategic Procurement at JamesWay Incubator Company Inc, echoes this sentiment. “Within my organisation, we now have a seat at the table – supply chain isn’t just under the operations umbrella,” he explains. “I believe supply chain and procurement is like the foundation of a building: if the foundation is wobbly, the building can collapse. The supply chain and procurement department manages a high proportion of the raw material costs and negotiates with key stakeholders.”

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“Supply chain and procurement is like the foundation of a building: if the foundation is wobbly, the building can collapse” — Ankur Thakur, Director of Strategic Procurement at JamesWay Incubator Company Inc

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

“Accepting diversity allows different perspectives within a business” — Wael Safwat, Procurement Director at Black & McDonald and Chairman of CIPS Canada

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Despite this progress, bringing

As businesses take steps to really

procurement to the C-suite remains a

invest in procurement, how can the

work in progress worldwide. “Different

case for this be pushed? “You need to

organisations are going through

understand what the objectives of the

different maturity journeys,” explains

organisations are and what the goals at

Wael Safwat, Procurement Director

the top level are,” says Parthasarathy.

at Black & McDonald and Chairman

“You need to be able to sit with each

of CIPS Canada. “For some, it’s about

C-suite member and understand

cost savings and getting the lowest

what challenges they are facing – what

cost, but for a lot of medium and

is the roadmap? How can you remove

larger organisations it’s more about

pain points for others in the organisa-

focusing on value creation and

tion? That’s really a unique ability

business enablement.”

because procurement is able to see

JUNE 2019

things from both sides of the lens –

cally and work with those numbers.

from inside the organisation and what’s

My approach is taking data and then

happening in the marketplace. It’s

elevating the poor of procurement.

important to think about how you can

When you’re sitting at a table with the

drive and foster change.”

CIO, CFO and operational leaders and

Manny Satija, Strategic Sourcing

you understand their business at the

Director at CSA Group, says that cold,

same or higher level than them, you

hard facts are key when making the

suddenly become significant – I would

case for procurement. “I’m a big

encourage everyone to spend time

believer in numbers, so when I think

listening and learning the business.”

about organisations I always like to

The next big thing to impact procure-

look at how spend ties in with the

ment will be new technology, says

procurement function. If you start

Safwat. “AI, IoT, Big Data and robotics…

talking numbers, you get a lot of

the digital transformation era is coming,

attention when you can relate strategi-

and we as procurement professionals

CLICK TO WATCH : JAMESWAY‘S ANKUR THAKUR ON TODAY’S PROCUREMENT PROFESSIONALS

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

“Today, we’re at the frontline with the C suite team, really influencing the bottom line” — Crithica Parthasarathy, IBM Procurement Services Practice Lead

18 need to be on top of this trend to

edge of the sector but also to develop

enable our organisations,” he explains,

softer skills to achieve success. “To me,

adding that this will mean a more

relationship building is the core,” says

connected approach. “Working

Satija. “There’s the traditional idea of

independently isn’t the way forward in

having a strong IQ, but you also have to

my view. Collaboration and the ability

have a very strong EQ to be successful.

to engage with other organisations

It’s all about connecting.”

within procurement as well as other

“To be a successful procurement

industries will enable both parties to

practitioner first of all requires the right

elevate and explore different things.”

soft skills, in terms of stakeholder

With evolution of the procurement

engagement, ability to positively

professionals vital to ensure the ability

manage conflict, enabling and

to cope with the ever-changing

influencing teams,” adds Safwat.

procurement sector, it’s become

“This goes hand in hand with technical

important to not only harness knowl-

skillsets. CIPS, for example, offers a

JUNE 2019

CLICK TO WATCH : NETWORKING ACROSS THE SUPPLY CHAIN AT PROCURECON CANADA

number of learning opportunities

market. In terms of the main procure-

through qualifications even online

ment skills, I always believe you can be

courses and online content that helps

book smart but you also have to be

professionals to stay up to date with

street smart. The key thing is not to shy

what’s going on in industries across

away from negotiations. Knock on

the globe.”

every door. Don’t worry what people

A big challenge, but Thakur is

will think; just try. When I see the pool

confident in the supply chain profes-

of people coming in, there’s no dearth

sionals of tomorrow. “You’ll be sur-

of good people,” he adds. “You just

prised how many talented people are

have to find the right people who know

involved in supply chain,” he says.

the principles of procurement.”

“People are coming from different fields

One key element of talent manage-

and diverse industries and they

ment echoed across the event has

understand how procurement works

been diversity, and Thakur cites

and how to negotiate across a global

Canada as a diverse country: “You see w w w.suppl yc ha i ndi gi ta l. com

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

people with experience from across the globe which can be an advantage.”

Safwat sums up the advantage to conducting operations in Canada. “The great thing about the Canadian market is inclusion and diversity,” adds Safwat.

“You tend to work across a massive variety of cultures and you need to be sensitive about approaching these cultures, but it’s a really great opportunity to build new relationships and leverage those in driving successful business results.

“Accepting diversity allows different 20

perspectives within a business. People will be able to share different experiences from different places. It also opens up a collaborative culture within the organisation in terms of being willing to accept others and collaboratively work toward common goals. This is an opportunity for organisations to tap into new areas that they have never thought about.”

The final aspect which rang true for each professional was the success of ProcureCon Canada not just as an event, but as a reflection of the region’s culture and commitment to supply chain excellence. “Part of the reason I come is to network with my peers,” JUNE 2019

says Parthasarathy. “It’s about sharing best practices, learning what other organisations are doing, and creating camaraderie amongst us in the profession. Share stories,” she advises her fellow attendees. “Share pain points. Understand from others what theirs are and what capabilities they can offer to help with the challenges you face.”

“For me, ProcureCon is a great opportunity to connect,” adds Safwat.

“ProcureCon has been really successful in Canada, we’ve seen a tremendous number of registrations particularly this year – it’s a reflection of how businesses tend to understand the value of procurement and the importance of the function.” However, the size and attendance of this year’s event has not just happened by chance.

“It’s a well-managed event,” adds Thakur.

“People have a learning appetite and the presentations cover a variety of topics. I will be back next year!”

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DIVERSITY

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Diversity is key to the evolving procurement function Sheri Spinks, a prominent member of the Global Council for the Advancement of Women in Procurement, explains how the procurement function has changed and why diversity is more important than ever WRITTEN BY

JUNE 2019

OLIVIA MINNOCK

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DIVERSITY

T

he Global Council for the Advancement of Women in Procurement was founded as a forum to promote the involvement of

women involved in the procurement, sourcing and supply chain professions. “We are a global group of over 2,500 members and counting, with a focus on both attracting and retaining women in procurement and supply chain.

We also provide a forum for discussion and mentorship and offer the skills and tools women need to empower themselves and advance their careers,” says Executive Secretary & Director Sheri Spinks.

Spinks caught up with Supply Chain Digital at

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ProcureCon Canada, which she has attended for three years. She argues that’s it’s a great platform for making long term connections. “I think it’s important now more than ever to give a voice to women in procurement. We need to talk about the enhancements and value we deliver as well as the soft skills we possess that contributes to our success in this area,” she comments.

A CHANGING FUNCTION “Historically, procurement used to be seen as administrative, process driven, reactive and policy focused – now, we are finally being seen as strategic business partners,” says Spinks. As the function has changed and evolved, so have the requirements of those JUNE 2019

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DIVERSITY

28

“ Historically, procurement used to be seen as administrative, process driven, reactive and policy focused – now, we are finally being seen as strategic business partners” — Sheri Spinks, Executive Secretary & Director of Global Council for the Advancement of Women in Procurement

working in the space. “It’s important now more than ever that procurement professionals have a broad business acumen, both from an understanding and skill perspective,” she comments.

Now, it’s not just qualifications and knowledge, but soft skills such as negotiation and innovation that are key to winning in the procurement sphere.

“Innovation leads to cost savings if you can find a better way of doing something,” says Spinks. “An effective procurement or supply chain professional is going to be constantly looking at engaging new suppliers. They’re going to be bringing innovative solutions to the table.”

The key for today’s procurement professionals, says Spinks, is open communication and true partnership with suppliers – “talking about the goals that each organisation has and working together to come up with solutions”. Now, she argues, supply chains can be seen as true generators of revenue by engaging new partners that bring business opportunities. “It’s not just cost,” she emphasises, having just delivered a talk at ProcureCon about total value ownership.

“The onus is on procurement

JUNE 2019

CLICK TO WATCH : ‘GLOBAL COUNCIL FOR THE ADVANCEMENT OF WOMEN IN PROCUREMENT’ 29

professionals within the organisation

DIVERSE SKILLSETS

to make that shift,” she explains.

When it comes to the procurement

“It’s about value, and when you look

function of today, engaging the right

at value you have to consider innova-

professionals means a commitment to

tion, quality and diversity. It’s really

diversity, and Spinks has various

understanding the needs of your

commitments to promoting the role of

business, the individual needs of your

women in procurement. “The reality is

stakeholders, and making sure you’re

that there is still a gender gap,” she

meeting that need. If you consistently

says. “I would encourage more women

meet or exceed those needs, and

to get into this space, to educate

deliver value based on their terms and

themselves and to be vocal about the

definitions, the business is going to

value they can add to organisations.

want to keep engaging procurement

Women really do have a different

and supply chain.”

perspective on things like negotiation w w w.suppl yc ha i ndi gi ta l. com

DIVERSITY

and relationship building. Generally, we are more empathetic and tuned in with others, we’re good listeners, and we’re great at multitasking – these are skills that are highly valued when looking at a supply chain or procurement role.”

The Global Council, says Spinks, provides mentorship which is vital to women wishing to make their mark in the procurement space. “They can see other women that have been successful in climbing the corporate ladder, taking on more senior roles. We’re also 30

going to provide a forum and database to allow members to utilise best practices from other women – and men, in the spirit of diversity and inclusion!”

“ I think it’s important now more than ever to give a voice to women in procurement” — Sheri Spinks, Executive Secretary & Director of Global Council for the Advancement of Women in Procurement JUNE 2019

Sheri Spinks discusses her experience at this year’s event.

“I was really interested in the session on AI in procurement, because that’s something I need to sharpen up on myself. It’s not something I’ve had a lot of experience with on the corporate side. For those who want to make the most out of coming to ProcureCon events, I would say take advantage of the networking opportunities. Use the app because that’s a quick way of understanding who’s here and what they do. It’s about getting out of that comfort zone. You’re not going to get any value out of a conference like this if you just come and sit down, go to sessions, then hide in a corner and do some work. You’ve got to get out there and network, meet as many people as you possibly can and enjoy it. I’ve made some great connections here and always keep coming back.”

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DIVERSITY

“ Women really do have a different perspective on things like negotiation and relationship building” — Sheri Spinks, Executive Secretary & Director of Global Council for the Advancement of Women in Procurement 32

CLICK TO WATCH : ‘SHERI SPINKS ON GENDER DIVERSITY IN PROCUREMENT’

JUNE 2019

33

she laughs. “It’s not just a women’s

and beyond, we are starting to see

group. We’re open and both welcome

more employee resource groups and

and encourage anyone who is passion-

I think those are really effective within

ate about advancing women in supply

organisations so women have a place

chain and procurement to join us.”

to go, a platform, and an opportunity

A key issue, Spinks feels, is that

to network or gain a mentor.”

women are not perceived as ‘powerful’ enough to take on leading procurement roles involving high level negotiations.

“It’s really up to women to own their space, be confident in their skills and not let their gender get in the way of them being able to really excel in what they do,” she concludes. “Within procurement w w w.suppl yc ha i ndi gi ta l. com

CONTRACT MANAGEMENT

34

Bringing Proc Canada to life We caught up with Alex Chard and Frank Musero from Worldwide Business Research (WBR), a business events firm which organizes ProcureCon Canada, to find out what goes into an event of this scale WRITTEN BY

JUNE 2019

OLIVIA MINNOCK

cureCon fe

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CONTRACT MANAGEMENT

What is the aim of ProcureCon

they can air their grievances, and share

Canada?

different ideas, best practices and

Frank Musero: We’re aiming to bring

lessons learned.”

together leading practitioners and

36

senior level procurement professionals

What was the key focus in organizing

from Canada’s largest companies for

this event?

two days of learning, networking and

Alex Chard: First things first, make

strategy sharing.

it Canadian-driven and Canadian-led.

Alex Chard: It’s a one-stop shop for

The idea is to really engage the

procurement professionals across the

Canadian market and the people doing

Canadian market. The idea is not only

the work on the ground. All of the major

to bring peers together to address the

companies that are based here in

challenges they face day in, day out,

Canada, whether Canadian companies

but also to provide them a forum where

or multinationals that work here, as

“ It’s a one-stop shop for procurement professionals across the Canadian market” — Alex Chard, Senior Program Director, WBR

JUNE 2019

CLICK TO WATCH : WBR’S ALEX CHARD ON MAKING PROCURECON HAPPEN 37 long as we’re bringing those players in,

the right players here in Canada.

we can really find success.

Oftentimes, individuals can be a little siloed within their industries or

What challenges were involved?

markets, or even their geographies.

Frank Musero: The biggest challenge

So really trying to engage them and

is trying to figure out the topics that

bring them in was probably the biggest

are more important to the practitioners,

challenge – but that wasn’t a big hurdle

because when we build an event, we

to jump over. There’s quite a bit of

build it eight months before the event

recognition for ProcureCon here in

starts, so we need to plan to make sure

Canada which really helped.

that the topics will be relevant eight months in the future and not just when

Why was it important to get the right

we’re doing our research.

speakers on board?

Alex Chard: For me, the biggest

Frank Musero: This is the one time of

challenge was probably identifying

year that all of these practitioners can w w w.suppl yc ha i ndi gi ta l. com

CONTRACT MANAGEMENT

“ Being a wallflower at these events does not serve you at all. Learn from your peers and make some friends” — Alex Chard, Senior Program Director, WBR 38

be in the same room together and learn

comes to succession planning and

from leading minds. It is good to have

ensuring you have continuity. Often,

a variety of industries here because

with new employees taking on roles

these people don’t interact with each

and the old guard starting to retire, you

other on a daily basis – some are

lose a lot of that knowledge base that

competitors, some are in industries

perhaps hasn’t been digitized, for

that may not interact day to day. Having

example, or isn’t in a format that is

that variety of companies allows them

readily available to new employees.

to share and exchange ideas.

Another key topic is change management: really driving that internally

What have been some hot topics

and ensuring that you have buy-in at

at this year’s event?

all levels of the organization in order to

Alex Chard: One is talent: that seems

ensure that you’re making headway.

to be a big issue, especially when it JUNE 2019

One of the biggest challenges that

and bounds as more people know about us.

Alex Chard: One of the big things we’ve noticed is not only the breadth of the audience, but breadth in terms of industries represented: we’re seeing more heavy industry, mining, oil and gas as well as a broader geographic spread across Canada.

Does this reflect the increasing importance of procurement?

Frank Musero: One of our speakers said that procurement has changed more in the past five years than the last 100, and it’s totally true. Some of the we have seen has been about supplier

sessions we hold today weren’t even

diversity. We had two conversations

a concept five years ago when we

about that at this event: companies are

started this event. Procurement has

trying to build out supplier diversity

moved from a tactical purchasing

programs where previously they may

operation to really being a strategic

not have considered that as an

part of the organization.

important aspect in their supply chain.

Why attend ProcureCon Canada?

How has the event grown since

Frank Musero: Across the 10 events

it started?

in our portfolio, ProcureCon is one of

Frank Musero: This is the sixth year

the only events that is peer-led. You’re

we’ve done ProcureCon Canada and

hearing from other practitioners that

we have doubled the attendance from

have shared the same problems you

when we started – it has grown leaps

have, and they’re on stage talking w w w.suppl yc ha i ndi gi ta l. com

39

CONTRACT MANAGEMENT

“ ProcureCon is one of the only events that is peer-led. You’re hearing from other practitioners that have shared the same problems you have” — Frank Musero, Finance Events, WBR

40

about those problems and how they’ve

It’s about building a community at the

solved them. You can then come back

end of the day.

with a nugget of good advice which you

Frank Musero: Our mobile app has

can implement back in the office.

the most up-to-date agenda and lists all speakers and attendees who you

How can attendees make the most

can message. The best way to take

of ProcureCon?

advantage of that is onsite: build your

Alex Chard: Engage. Be engaged.

custom agenda, look at who is here…

Participate. If you are sharing ideas and

take advantage of everything in that

asking panelists questions, you’ll walk

app because that will help you

away with a ton more information that

customize your experience and make

you would otherwise. Being a wallflow-

the most of the event.

er at these events does not serve you at all. Learn from your peers and make some friends. You can call them up when you go home and really try to understand how they can help you out.

JUNE 2019

ProcureCon Canada is definitely going to be bigger next year.

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

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Creating shared value, the right way Suranga Herath, CEO of the English Tea Shop, discusses the importance of sustainability, transparency and creating shared value at every level of the supply chain WRITTEN BY

JUNE 2019

HARRY MENE AR

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

I

t’s rare to see a successful company, operating a tried and tested business model, turn around and completely reinvent itself.

The old adage “If it ain’t broke, don’t fix it,” comes to mind; why subject your business to radical upheaval and the risks therein? Because it’s the right thing to do. “We wanted to find a model that empowered people,” recalls Suranga Herath, CEO of English Tea Shop.

“We were a production house before English Tea Shop was born, a very ordinary tea business that packed all sorts of brands. It was that kind of a company because we thought business was simply about capability 44

and maximising resources.”

In 2008, Herath’s company was packing 70 different brands of tea for exportation to the US, UK and Europe. In 2010, the company made the move from Sri Lanka to the UK. “That was the moment of truth for us,” says Herath. “Coming from Sri Lanka, a nation famed for its tea and spices, we had this huge passion for people, naturally, because it’s a very labour-intensive industry. We realised that the traditional tea industry didn’t empower the people at the bottom of the pyramid. That needed to change.” The right course of action was, for Herath, obvious and imperative, regardless of its challenges.

“The shift was very risky. It was a huge transformation from being an ordinary, conventional JUNE 2019

45

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

“ We enhance transparency and fairness along our value chain by creating shared value” — Suranga Herath, CEO, English Tea Shop

business, to leaving the auction system, leaving the large plantation companies that supplied us and moving to a very small number of small-scale suppliers of tea and ingredients, with the goal of becoming 100% organic, which we accomplished within two years,” says Herath. Nine years later, English Tea Shop has grown 65% annually over the past seven years, and last year reported revenues in excess of US$28mn across more than 50 markets. We spoke to Herath about his quest to empower people at every point in the supply chain, guarantee transparency and fairness,

46

JUNE 2019

47

and transform the lives of thousands

help our business to grow sustainably,”

of small-scale farmers across Sri

says Herath in an interview with the

Lanka, India, New Zealand, South

Soil Association. He continues: “Which

Africa and beyond.

is why we work closely with the farmers

“We enhance transparency and

who grow our organic tea, they provide

fairness along our value chain by creating

constant inspiration as we see the

shared value,” explains Herath. English

challenges they face on a daily basis.

Tea Shop’s model stems from the work

Their hard work and dedication make

of Harvard Business School Professor,

us strive for success because as we

Michael Porter. “This is the principle on

succeed, they succeed.” Porter himself

which we run our business. In essence,

notes that “Shared value is not social

this means that by being an ethically-

responsibility, philanthropy, or sustain-

minded business, we not only help

ability, but a new way for companies to

improve the world around us but also

achieve economic success.” w w w.suppl yc ha i ndi gi ta l. com

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

“ The market is demanding prominence, authenticity and transparency from the supply chain” — Suranga Herath, CEO, English Tea Shop

48

English Tea Shop’s next step in

Herath sees the increased transpar-

creating shared value across its supply

ency in his supply chain as an opportu-

chain involves a partnership with the

nity to simultaneously operate in a more

Soil Association, a certification non-

ethical way and create value for the

profit based in Bristol. “They’re leading

company. He notes that the rest of the

from the front and we’re helping fund

market is taking note. “The rise of the

their efforts to build a platform,” says

CPO role, as well as the dramatically

Herath. “English Tea Shop is one of the

increased focus on supply chain

pioneer brands that is going to be

management and the entire procure to

tested on the model. All our supplies,

pay process, has been elevated.

the entire value chain will be a guinea

And it’s in response to market demand,

pig for a process that, hopefully,

because the market is demanding

creates transactional transparency

prominence, authenticity, transparency.

from farm to cup.”

That’s what’s elevated the procurement

JUNE 2019

function as a whole,” Herath posits. “Of course, for our business, it was just natural. We are, I think, a perfect example of how the procurement process has evolved.” Thinking back to the auction method that English Tea Shop used to use, Herath reflects “Nine years down the line, what we now have is a very complex supply chain management system, a big team led by master blenders and procurement specialists, adopting new technology. I think the requirement was clearly for a process, leadership and people that create winwin solutions. It’s no longer just about going to the sources and buying tea.

E XE CU T I VE PRO FI LE

Suranga Herath A global expert on the tea industry, Suranga Herath is CEO of English Tea Shop, one of the world’s leading organic tea businesses which brings high quality, ethically-sourced tea to customers all over the world.

His business has grown 65% annually over the past seven years whilst continuing to instill sustainable practices that enrich the brand’s community. By doing so, Herath’s visionary leadership has led the way in sustainable practices, inspiring other forward-thinking ethical food and drink companies to follow.

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49

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

This is about finding better yields for both parties, achieving better quality, better efficiency, saving in every possible way for both sides, and knowing very well that we’re entering into long-term relationships.”

From the very beginning, English Tea Shop has cultivated its small network of growers by investing in technology and sharing knowledge, working to convince other growers to take up organic farming practices. “We had to inspire other people to buy into organic small farming to expand our supply 50

base,” says Herath. “From the simplest things, like giving suppliers a long-term contract, to building big storage facilities to hold stocks because we didn’t have the luxury of working off an auction that gave us weekly demand.” The process worked, and English Tea Shop’s positive

schools.” Herath maintains that this sort

impact on its growers’ lives has contin-

of investment at the base of the pyramid

ued to spread. “In 2018, we launched

is essential to the creation of shared

a sustainability impact report. The

value. “If you don’t do these things, then

results showed that we had impacted

our kind of model cannot be a success,

over 1,352 farmer families, in terms of

because how do you expect small

investing in them, paying for their organic

farmers to be planning or taking risks

and Fairtrade certifications, paying for

without that support? It so unfair,” he

their new technologies, supplying them

says. “We had to take the risk, we had

with irrigation solutions, and building

to take the burden, and we had to build

and helping them develop regional

those growers’ capabilities to ensure

JUNE 2019

“ We are, I think, a perfect example of how the procurement process has evolved” — Suranga Herath, CEO, English Tea Shop

51

they could be sustainable and the

non-GMO.” Herath concludes: “We

brand is sustainable.”

want to be the leading independent tea

Looking to the future, Herath and

brand, and be known for our own

English Tea Shop aren’t content to rest

unique creating shared value model.

on their laurels. “We’re on a mission to

We’ve just entered China, we got into

improve upon our energy use and reduce

Chile last year and we’re working on

waste. For 2020, we’ve set ourselves

Brazil now. We want to keep expanding,

the goal of being completely free from

but we want to do it the right way.”

single-use plastic. This year we’ve already completely revamped our core ranges; they’re now plastic free and w w w.suppl yc ha i ndi gi ta l. com

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54

JUNE 2019

TOP 10

Supply chain management software providers Streamlining the f low of a product or service from its initial raw materials to when it hits the retail shelves was once seen as a Herculean task but now supply chain management (SCM) software is simplifying the process.

We take a look at the top 10 SCM software providers in the market

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55

T O P 10

56

10

Coupa Software

San Mateo, California, USA

Founded in 2006, this relative newcomer to the SCM landscape has made significant gains under the leadership of CEO Rob Bernshteyn.

Coupa’s revenue from SCM endeavours generated more than $114mn in 2016, and the company anticipates revenues to exceed $253mn by the end of the 2019 fiscal year. Among the brand’s software wins is its Business Spend Management Platform which offers software options spanning procurement, invoicing, sourcing and analytics among others. Coupa enjoys more than 400 customers across 40 countries and employs more than 1,300 people.

JUNE 2019

57

09

HighJump

Minneapolis, Minnesota, USA

Ranked among Forbes’ Most Promising American Companies in 2015, HighJump has raised more than $140mn in revenue while employing a modest team of under 1,000 people. Headquartered in Minneapolis, Minnesota, it reportedly emerged from a concept in 1983 to an outfit that has offices throughout North America, Europe, and even Shanghai.

Servicing upwards of 4,200 clients, HighJump earned recognition on the Inbound Logistics’ Top 100 Logistics IT Providers in 2017 and was honoured as one of the 2017 Food Logistics’ Champions: Rock Stars of the Supply Chain.

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T O P 10

58

08

Basware

Espoo, Finland

Finland, Basware puts a high emphasis on automated solutions and has earned honours that include Innovative Procurement Technology of the Year at the Innovate Awards, and recognition on the Global Finance’s list of Best Web-Based Supply Chain Financing Solutions. Founded in 1985, the outfit generated revenue of more than $166mn in 2017 while reducing operating costs. Under the interim leadership of CEO Klaus Andersen, Basware employs more than 1,800 people across more than 50 countries. To its credit, Basware has worked with household name clients that include Toshiba and McDonald’s among others.

JUNE 2019

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T O P 10

60

07

Descartes Systems Group Ontario, Canada

Headquartered in Ontario, Canada, this global software company employs more than 1,360 people with a focus on logistics and supply chain management. Founded in 1981 and led by CEO Edward J. Ryan, Descartes Systems has aggressively made key acquisitions each year since 2006. The company established an early reputation for logistics technology and the forethought to offer customers on-demand software as a service (SaaS). This type of predictive innovation has earned it more than 13,000 customers across 160 countries and revenue exceeding $275mn in its 2019 fiscal year.

JUNE 2019

61

06

JDA Software Group Arizona, USA

Founded in 1985 by James Armstrong and Frederick Pakis, this SCM business has emerged as a global leader, employing more than 4,300 people. The American-based company enjoys 40 offices globally and serves upwards of 4,000 clients with a focus on supply chain management. It ranks on the Forbes list of Top 200 Small Businesses and posts sales above $387mn, coupled with 16% growth. Led by CEO Girish Rishi, its innovative logistics provides “inventory optimisation,” and “omnichannel fulfilment” to sectors that include manufacturing, hospitality, travel, and retail among others.

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T O P 10

62

05

Manhattan Associates Atlanta, Georgia, USA

Manhattan Associates was founded by Deepak Raghavan in 1990 with a focus on designing, engineering and making good on supply chain solutions. Led by CEO Eddie Capel, the organisation exceeded $549mn in 2018 revenue while reinvesting $72mn into R&D. Altogether, the organisation has directed nearly $500mn towards R&D while remaining debt-free for nearly three decades. The SCM software trailblazer works with more than 1,200 customers worldwide, employing more than 3,000 people and has earned notoriety on Forbes’ America’s 100 Most Trustworthy Companies.

JUNE 2019

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63

T O P 10

64

04

Epicor Software Corporation Texas, USA

Founded in 1972 as Triad Systems Corporation, this Texas-based firm was called Activant Solutions Inc. before it was acquired by Apax Partners and merged under the current moniker in 2001. Led by CEO Steve Murphy, Epicor provides SCM services to more than 20,000 customers spanning 150 countries across sectors that include manufacturing, retail and distribution. Employing approximately 4,000 people, Epicor has generated revenue approaching the $1bn mark. The company has deftly pursued acquisitions that include SPECTRUM Human Resources Systems Corp in 2010 and Solarsoft Business Systems in 2012.

JUNE 2019

65

03

Infor Global Solutions New York, USA

With sales topping $3.1bn, this New York City company was previously known as Agilisys. Infor Global Solutions reportedly engages with more than 90,000 organisations globally including direct support for supply chains. Founded in 2002 and led by CEO Charles Phillips, Infor reportedly employs upwards of 17,000 people including 1,200 support professionals. Its has reportedly produced 176 new products, serving more than 71mn customers via the cloud. Its brick and mortar locations have expanded to 168 facilities worldwide and earned recognition on Forbes’ America’s Largest Private Companies 2018.

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T O P 10

02

SAP

Waldorf, Germany

Widely considered to be a leader in supply chain management software, SAP was founded in 1972 and enjoyed total sales exceeding $27.4bn internationally.

66

The corporation has offices in upwards of 180 countries and reportedly has more than 425,000 customers. Under the direction of CEO Bill McDermott, SAP employs more than 88,000 people and was ranked on the Forbes 2019 lists that include America’s Best Employers, Canada’s Best Employers, Block Chain 50, as well as the World’s Best Employer on 2018. Its cutting-edge software includes Product Lifecycle Management, SAP Supplier Relationship Management, and SAP Supply Chain Management applications as well as mobile platforms.

JUNE 2019

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T O P 10

01

Oracle

California, USA

This American software leader was reportedly founded in 1977 in Santa Clara, California, by Larry Ellison, Bob Miner and Ed Oates. The operation is currently head-

68

quartered in Redwood Shores, California, where Ellison holds the position of Executive Chairman & CTO. Safra Catz heads Oracle’s efforts as CEO. Oracle reportedly posted sales in excess of $39.5bn and employs more than 138,000 people. It ranked in the top 200 of the Fortune 500 list in 2018 in terms of revenue and employees reportedly enjoy a median annual salary of approximately $90,000. The rank and file at Oracle include 40,000 engineers and developers, 19,000 consultants with implementation responsibilities and 16,000 support professionals serving 430,000 clients. Oracle provides SCM services such as product life cycle management, order management, and supply chain logistics among others.

JUNE 2019

69

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

The biggest industry events and conferences WRITTEN BY SEAN GALEA-PACE from around the world

70

10–12 JUNE

Supply Chain Summit 2019: Atlanta [ THE WESTIN PEACHTREE PLAZA, ATLANTA ] The Supply Chain Summit 2019 is the meeting place for the forces of innovation, transformation and connectivity that will fundamentally reshape the supply chain industry over the coming years. Over 800 supply chain and procurement representatives will meet to discuss digital transformation strategies and look at the supply chain of the future. Supply Chain Summit: Atlanta will look to enable companies from all over the world to discover a truly global perspective on the current supply chain landscape.

JUNE 2019

24 JUNE

50 WORDS 17–19 JUNE

Gartner Supply Chain Executive Conference 00–00 MONTH [ BARCELONA, SPAIN ] Event Name Here 2019

CIPS Middle East Supply Management 50 WORDS Awards 2019 [ DUBAI ] Respected as a benchmark for excellence, a CIPS Middle East Supply Management Award is the most pres-

[ALOCATION ] aimed at helping supply conference

tigious recognition an organisation or

Learnand chain the procurement latest and best professionals practices for

individual in the procurement and

improved the “redefine supply concept chainofand what logistics a supply

supply chain profession can receive.

performance chain should do in Japan. to driveIn value”, just one theday,

Winners and attendees will take to the

acquire the Gartner Supply latest Chain knowledge Executive and the

stage and receive recognition for their 00–00 MONTH

most effective Conference 2019 techniques looks at the to grow futureyour of

vision, hard work and collaborative Event Name Here 2019

supply More digital. chain,than manufacturing, 900 professionals logistics

[leadership LOCATION ]in procurement and supply

and distribution from all over the capabilities world will bein in attend-

Ucias nis eturitAward qui toresto blamusam management. categories

Japan. This ance, as thesummit conference will draw looksupon to cover the

quas et Best ent enit, siminctatur? include Contribution to Corporate

experience Strategy andofTransformation, leading companies Demand to

Aque consequ Best isimenita num etur,toinus Responsibility, Contribution

explore how Reimagining Forecasting, a cross-functional Supplier supply Risk,

consecaesResponsibility, is dolupta consequi ut veriCorporate Best Supplier

chain teamTalent Innovation, can enhance and Leadership companyand

ons equundaManagement ecatiatem dene Relationship as well as

results in Japan.

Customer Fulfillment Along and top Service experts, as well

repratetur, qui del imin CIPS Procurement andcomnist Supply ionem-

high-profile as other keyspeakers areas of discussion. and top practiHear

poritis nobis dolorpo repello rrorepu Professional of the Year, CIPS Young

tioners from some will of beGartner’s invited toleading share their resear-

dantia que duciet eritasProfessional consequo Procurement and ut Supply

views as chers on the managing firm welcomes supply chain, the supply pro-

voluptatiur, escimax imperferor sum of the Year and the overall winning

curement chain professional and logistics to a new in Japan. era: converg-

conse moof eaquation pedipsam and quiam. category CIPS Procurement

www.eventurl.com ing the physical and digital supply chain.

www.eventurl.com Supply Team of the Year.

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71

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

09–11 JULY

ProcureCon Asia [ SINGAPORE ] 72

Asia’s premier gathering for global and regional CPOs and Asian heads

11–12 JULY

Ovation: The World’s Most Exclusive and Renowned CPO Think Tank [ CHANTILLY, FRANCE ]

of procurement. Procurecon Asia

Created to look “far beyond the tradi-

2019 brings over 200 attendees and

tions of procurement”, Ovation looks to

more than 100 CPO’s and Heads of

the future of supply chain and the key

Procurement to access and explore

trends that will directly impact the

interactive case studies, broad discus-

group-level CPO. Over the course of

sion on industry challenges and

two days, 50 exclusively invited CPOs

trends and network with some of the

from around the world will attend work-

biggest names in the procurement

shops designed to drive divergent

space. Procurecon asks profession-

thinking, challenge and enlighten fellow

als in both direct and indirect

thought leaders and learn how to

procurement to ‘maximise learning

better harness the complexity of global

and optimise your organisation’s

supply networks and ecosystems in the

supply chain strategy.’

digital world.

JUNE 2019

73

3-5 SEPTEMBER

Transport Compleet [ GORINCHEM, NETHERLANDS ] Now in its 15th year, the Transport

24–26 SEPTEMBER

Supply Chain & Logistics Summit and Expo 2019 [ HILTON ANTWERP, BELGIUM ]

Complete Gorinchem is a networking

The EMEA Supply Chain & Logistics

event which brings the entire road

Summit & Expo is one of the most

transport industry together.

established events of its kind in Europe.

Welcoming 12,000 visitors annually,

Now in its 21st year, it is a highlight in

the event will enable both international

the calendar where world-class organ-

and regional providers to showcase

isations meet to maximise efficiency

their latest products and solutions to

and minimise costs through supply

a professional audience.

chain strategies of the future.

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74

USING SOURCING EXCELLENCE FR AMEWORK TO DRIVE OPER ATIONS FORWARD WRITTEN BY

SOPHIE CHAPMAN PRODUCED BY

DENITRA PRICE

JUNE 2019

75

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S P X C O R P O R AT I O N

FOR SPX TRANSFORMER SOLUTIONS, SCM STRATEGY IS ABOUT IMPLEMENTING SOURCING EXCELLENCE FRAMEWORK AND DIGITIZATION TO IMPROVE SPEND VISIBILITY AND OPERATIONAL EFFICIENCY

A 76

s a key aspect of the SPX Corporation’s value creation roadmap, strategic sourcing is expanding from a back-office function

to an integral efficiency improvement operation.

“SPX Transformer Solutions’ value creation roadmaps target operational excellence and margin expansions through continuous improvements and excellence initiatives in Engineering, Sourcing and Manufacturing,” notes Sandeep Arora, Vice President of Global Sourcing and Strategy at SPX Transformer Solutions. “In that way, strategic sourcing and supply chain management remains one of the core functions of transformer business and thereby becomes a part of the value creation roadmap for SPX Corporation as a whole.”

SPX Transformer Solutions operates medium and large power transformer manufacturing plants in Waukesha, WI and Goldsboro, NC as well as components division manufacturing Transformer Health Products® in Dallas, TX. JUNE 2019

77

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S P X C O R P O R AT I O N

Arora joined SPX Transformer Solutions in 2014 and has more than 25 years of transformer and switchgear industry experience in the Transmission and Distribution energy sector.

Arora has held positions as Managing Director at Schneider Electric’s Distribution Transformer business in the India Region, as well as VP of Business Development and Supply Chain at Schneider Electric’s US-based Distribution Transformer division. Arora has also held the position of Plant Manager at CG Power within the Medium 78

Power Transformer business in the

E X ECU T I VE P RO FI LE

Sandeep Arora Sandeep joined SPX in 2014 as VP of Global Sourcing and Strategy. From 2008 Sandeep spent 5 years with Schneider Electric, India as the Managing Director of Transformers (India region) and in 2012 moved to Schneider Electric, USA as the VP of Supply Chain & Business Development. Prior to 2008, Sandeep worked with CG Power in India and the USA for over 15 years in various roles within manufacturing, supply chain, project management, business development, M&A and Information Technology. During his 25+ years of business and operational excellence expertise he has set up and strategically grown global organization in Asia, Europe and the US region with Supply chain optimization and business development. Sandeep earned his Bachelor of Electrical Engineering and an MBA in Marketing from Nagpur University, India.

JUNE 2019

“THE SCM STRATEGY IS DRIVING OUR SUPPLY CHAIN TO BE SMOOTH AND EFFECTIVE” — Sandeep Arora, VP Global Sourcing & Strategy, SPX Transformer Solutions

79

E XE CU T I VE PRO FI LE

Brian Mason Brian joined SPX in 2015 and was appointed as an Executive Officer in 2017. Brian spent 14 years with Emerson Electric, most recently as the President of Emerson Connectivity Solutions.

He started his career with General Electric and graduated from its Manufacturing Management Program. He worked in multiple businesses with roles in engineering, operations and product leadership. Brian has obtained expertise in global manufacturing, operational excellence, M&A and business turnarounds through 25+ years of leadership experience across multiple continents and industries. Brian earned his MBA from Northwestern University and his B.S. in Electrical Engineering from Michigan Technological University.

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S P X C O R P O R AT I O N

“ I WORK CLOSELY WITH THE BUSINESS FUNCTIONS TO CREATE A CULTURE OF EXECUTING CUSTOMER SATISFACTION” — Sandeep Arora, VP Global Sourcing & Strategy, SPX Transformer Solutions

US and Deputy General Manager of Operations, Supply Chain and Projects at the same firm, working in the Large Power Transformers unit in India. He is a proven international leader skilled in flexing global operations to meet changes in customer cost and spend requirements.

Arora explains “My role is essentially to work closely with the business functions to create a culture of executing customer satisfaction, focused on cost, efficiency improvements, and supplier performance.” Arora adds, “one key step for me as a supply chain and

80

JUNE 2019

CLICK TO WATCH : ‘SPX TRANSFORMER SOLUTIONS OVERVIEW’ 81

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departments and suppliers to identify

STRATEGIC SOURCING: WHAT DOES GOOD LOOK LIKE?

the pain points and improve opera-

The Sourcing Excellence Framework

tional efficiency.” He further states that

(SEF) helps the business drive opera-

by having open conversations with key

tional efficiency and margin stability

suppliers and partners, the company

when price volatility and supply chain

has turned its supply chain into a net-

risk on commodities exist. For example,

work where information is shared in

commodities like steel and aluminum

trust to have a win-win strategy.

– mainly driven by section 232 tariffs –

sourcing leader is to meet with internal

Since 2015, the SPX Transformer Solu-

continue to be unfavorable to trans-

tions team has driven the supply chain

former original equipment manufactur-

methodology using sourcing excellence

ers (OEMs) in the US.

framework which is now well established and followed within the business.

“Since 2018, our proactive approach in implementing the Sourcing Excel-

SOURCING EXCELLENCE FRAMEWORK – “SIMPLIFY THE WAY WE WORK”

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83

S P X C O R P O R AT I O N

C O M PA N Y FACT S

At SPX Transformer Solutions we strive to improve operational efficiencies and margins through • Continuous improvement • Strategic sourcing: Risk mitigation through dual sourcing, vendor consolidation and insourcing to leverage synergies across SPX businesses • Sustainability 84

JUNE 2019

$1.5bn+ Approximate revenue

1912

Year founded

5,000+

Approximate number of employees

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85

S P X C O R P O R AT I O N

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JUNE 2019

87 lence Framework has helped us miti-

vendor consolidation we get better

gate some supply chain risks mainly

reliability and repeatability. Arora says:

driven by trade actions on steel and

“The sourcing excellence framework,

aluminum. This in large power trans-

as it is based on Total Cost of Owner-

formers has made US Transformer

ship (TCO), also addresses vendor

manufacturers non-competitive due

consolidation and in-sourcing, thereby

to imports coming from other regions,”

leveraging synergies across other

Arora notes.

SPX Corporation businesses. It has

The sourcing framework was put

also helped the procurement function

in place to ensure our supply chain is

to be “Future Proof” through “Balanced

smooth and effective, as it enables us to

Enforcement and Enablement”.

manage our top suppliers using 80/20

In SPX Transformer Solutions, the

rule. The 80/20 rule focuses on 80% of

latest transformation is the digitization

our overall direct spend which is man-

of its procurement operations. “With

aged by 20% of suppliers. By having

supplier spend data analytics, we’re

long-term dual sourcing contracts and

aiming to further improve supplier w w w.suppl yc ha i ndi gi ta l. com

S P X C O R P O R AT I O N

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JUNE 2019

89

performance on Quality, Cost and

former Solutions continuous improve-

Delivery (QCD) through digitization.

ment and performance management

We’re currently using the software

culture in terms of “what does good

interface-Qlik which talks to our

look like in sourcing” Arora collaborates

Enterprise Resource Planning (ERP)

with his peers and team members

system and other softwares for real-

by asking questions which helps the

time analysis of data. Along with

business to remain competitive:,

this, we have integrated a contract

• Do we have a long-term contract with

management tool to manage Master

our top suppliers to control 80% of

Procurement Agreements and drive

our total spend?

business process improvements” says

• Do we have a firm price contract

Arora. The mantra here is to “simplify

using the ‘should cost’ model to avoid

the way we work”.

price increase risks?

To further strengthen the SPX Trans-

• Do we have dual sourcing? w w w.suppl yc ha i ndi gi ta l. com

S P X C O R P O R AT I O N

• Do we have the right payment terms

elements to its approach other than

with our suppliers to support our

sourcing. “When we talk about the

operating working capital?

SCM strategy we start with sourcing,

• Do we have the right Incoterms® with our vendors?

which is made up of two parts:strategic, which includes risk mitigation

• Do we have the right inventory carrying

strategy through dual sourcing using

cost and turns ratio?

should cost model and operational,

The company’s tools address these

which includes transactional day-to-

uncertainties.

day buying,” states Arora.

The other major contributor towards our transformation is the Supply Chain

SUPPLY CHAIN MANAGEMENT STRATEGY

Management (SCM) strategy. The

“Besides sourcing, supplier manage-

SCM strategy has five intrinsic

ment is the other important piece of

90

SUPPLY CHAIN MANAGEMENT STRATEGY

“Master excellence thru repeatability” JUNE 2019

“ C ONTINUOUS IMPROVEMENT SHOULD BE EMBEDED IN THE CULTURE OF ORGANIZATION” — Sandeep Arora, VP Global Sourcing & Strategy, SPX Transformer Solutions

staff by providing carrier paths through functional development. Finally, we look at organization structure and business intelligence to get optimum benefits by aligning SCM strategy to our business strategy.

For SPX Transformer Solutions, SCM strategy is more than just a buzz word – it’s a habit that defines the business’ culture and enables continuous improvement. According to Arora to drive sourcing excellence initiatives, “continuous improvement should be embeded in the culture of organization.”

SCM strategy, in which we assess

Ultimately, the business aims to

how we qualify, evaluate and classify

improve operational efficiency, which

our suppliers. We also ensure that we

Arora claims can be achieved within

have dual sourcing in place, so that we

these three functions in an organiza-

are not caught unaware when a single

tion: one is through redesign to cost,

source supplier is no longer viable on

which is led by engineering, the other

QCD” says Arora.

is productivity improvement, which is

Then we must talk about people –

driven by manufacturing and the final

to implement any strategy, we need

one is sourcing efficiencies driven

engagement of our employees. People

through a sourcing excellence frame-

can become a major challenge if not

work. In regards to the financial impact,

involved at the right time as before in-

as Cost Of Goods Sold (COGS) is

troducing new suppliers manufacturing

the largest contributor to transformer

employees need to be ready to accept

operational cost, and therefore the big-

and manage the change effectively.

gest opportunity to improve COGS lies

For achieving this, first and foremost

in the sourcing bucket.

we need to select and upskill the right

To implement a successful SCM w w w.suppl yc ha i ndi gi ta l. com

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S P X C O R P O R AT I O N

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JUNE 2019

strategy with highest value creation, the firm has aligned a sourcing excellence framework to internal manufacturing and engineering capabilities.

Arora adds that the company’s supply chain transformation journey in 2015 would not have started without the support of suppliers and partners.

“These long-term strategic partnerships encourage SPX Transformer Solutions team and its suppliers, to focus less on immediate fluctuations in the market and more on value creation types of opportunities together outside of the daily buyer and seller arrangement. Companies committed to one another are better positioned to share the impact of price fluctuations together resulting in more stability over the long run.”

Arora concludes by echoing SPX Transformer Solutions’ President-Brian Mason’s belief, “As SPX puts its business system strategy using operational excellence in place, it aims to leverage synergies between its portfolio of products to drive company growth in an ‘efficient and organic’ way.”

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94

World Vision: procuring aid for the world’s most fragile communities WRITTEN BY

HARRY MENEAR PRODUCED BY

DENITRA PRICE

JUNE 2019

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WORLD VISION

Tim Covell, Supply Chain Director of World Vision’s Gift in Kind operation, discusses the ways in which his team pushes itself to continually provide aid more efficiently to deprived communities

I

n 1947, Reverend Bob Pierce gave the last five dollars from his pocket to help care for an orphaned girl from China named White

Jade. Three years later, Pierce founded an organi96

zation dedicated to helping children in dire need of care around the world. Over the next 65 years, World Vision has grown into a powerful and tenacious non-governmental organisation (NGO), striving for the elevation of deprived communities out of poverty. Today, it works in nearly 100 countries and in just five years, together with partners and donors, has impacted the lives of over 200mn vulnerable children by tackling the root causes of poverty. “Our strategic vision is to step into the most fragile countries, in the most fragile contexts, to help people and communities out of poverty,” says Tim Covell, Supply Chain Director at World Vision. “World Vision is focused on the twin pillars of humanitarian community development and disaster relief. There are a host of programs that work together under those two JUNE 2019

97

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WORLD VISION

pillars, including sanitation, bringing

“ We’ve grown from 30,000 pallets to 84,000 pallets over the last three years” 98

— Tim Covell, Supply Chain Director, GIK, World Vision

clean water to communities, health, education, agriculture – helping a community break the cycle of poverty over the course of a 15-year program.”

Covell spent the two decades preceding his move to World Vision in the private healthcare technology sector. “I loved the technology, loved the teams – I really had no intention of moving on,” he recalls. “As I was thinking about my life, I realized it was time to use those skills I’d learned over the years serving in a humanitarian organization.” In December 2016, Covell jumped at the opportunity to work for World Vision and has since led the company’s Gift-in-Kind (GIK) operation. “A GIK is where a corporation will donate products instead of cash,” he explains.

Every year, Covell and his three major teams work tirelessly to process, allocate and distribute tens of thousands of pallets of donated goods – ranging from bicycles and wheelchairs to clothing and school supplies – to some of the world’s most isolated and fragile communities. “We’ve grown from 30,000 pallets to 84,000 pallets over the last three years,” Covell says.

JUNE 2019

CLICK TO WATCH : ‘WORLD VISION USA – REACH OUT WITH US’ 99 “It would be impossible to handle that

excess inventory, reverse logistics,

degree of growth without continuous

or whatever their business challenge

improvement and change to the way

might be,” says Covell. Dealing with this

that we operate and drive our process-

influx of donations is the role of the first

es.” Covell sat down with us to discuss

of Covell’s three teams: Capacity &

World Vision’s GIK operations, and the

Integration. The team interacts with

ways in which he and his team push

the various local operatives around the

themselves to continually improve and

world in order to establish what each

better serve those in need.

community needs to better progress

Unlike a traditional procurement role,

towards becoming self-sustaining.

the GIK supply chain operates in

“Each year they reach out to countries

response to donated items from large

around the world in order to understand

corporations around the world. “We

what kind of products they can use to

position ourselves as a business

facilitate their ministry. Then we create a

solution to corporations to deal with

global demand plan that predicts how w w w.suppl yc ha i ndi gi ta l. com

WORLD VISION

100

JUNE 2019

$2.76bn+ Approximate revenue

1950

Year founded

40,000

Approximate number of employees

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101

WORLD VISION

102 many containers will ship to each

logistics, Covell notes that the donation

country and which product types they

process makes for more efficient

need to contain,” explains Covell.

“acquisition” power on behalf of World

“In the world of GIK, as opposed to

Vision. “We want to make sure that every

the world of procurement, it’s distinct in

product that we ship and spend freight

that we can’t predict 100% what kind of

dollars on is going to help a community

product we’re going to get,” he

and facilitate ministry in whatever

continues. “We start with a demand

capacity it’s being used for,” he explains.

plan and then, as we receive donations

“GIK is a powerful element of the overall

over the course of the year, this team

ministry, because it’s such a magnifier.”

will do their best to align the products

Covell’s department ensures the value

that were donated with the demand

of donated items is efficiently distributed,

that was placed on them by the various

allowing for even more aid to be

countries.” While the GIK model

provided to those who require it than

creates unique challenges in terms of

through traditional procurement NGO

JUNE 2019

practice. “For every dollar we spend in freight, there’s almost $20 worth of product that we’re shipping and being able to bring into play for ministry utilization,” he maintains.

The second team handles logistics, both domestically and internationally.

Covell praises this team for its role in overcoming geographic hurdles during the ‘last-mile’ before delivery.

“This team has a very challenging role, because the countries where we

“ Missionary Expediters are a fantastic asset to us in being able to crack the code of accessing some of these very challenging countries” — Tim Covell, Supply Chain Director, GIK, World Vision

operate typically have inadequate infrastructure, and trying to get products to communities in need

103

E XE CU T I VE PRO FI LE

Tim Covell, Supply Chain Director Tim has a BS in Operations Research/Systems Analysis from West Point Military Academy, and a MS in Engineering Management from Milwaukee School of Engineering. After some time serving in the Army and then leading operations in transportation services, he spent over 21 years at GE Healthcare in Milwaukee, WI. During that time, he had experience in a variety of roles from Mfg and Materials leadership to New Product Development and Advanced Mfg Engineering.

He recently joined World Vision in Seattle, WA to lead the GIK Supply Chain operation and has been serving there for two and a half years.

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

WORLD VISION

SERVING THOSE W H O S E RVE H I M

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105

“ GIK is a powerful element of the overall ministry, because it’s such a magnifier” — Tim Covell, Supply Chain Director, GIK, World Vision

means you’re typically required to go far off the beaten path.” In order to aid in the delivery of supplies to the farthest corners of the planet, World Vision has established a decade-long partnership with freight forwarding business Missionary Expediters. “They are a fantastic asset to us in being able to crack the code of accessing some of these very challenging countries,” says Covell. “As an NGO, we’re obviously looking to be very frugal, but a relationship with a trusted partner that knows its way around getting freight into challenging areas is also essential. w w w.suppl yc ha i ndi gi ta l. com

WORLD VISION

Missionary Expediters just ticks all the boxes; we’re very pleased with our partnership with them.”

The third team Covell oversees is the GIK division’s distribution center in Pittsburgh, Pennsylvania. “They have a significant space there where we store and then sort products. That’s where the magic happens,” Covell explains.

The center uses numerous volunteers to sort, package and dispatch items to World Vision’s entire network. Given that the workforce is largely made up of volunteers, the Pittsburgh center is 106

the perfect demonstration of the need for clear, unified processes in order to produce consistent results. “One of the things that I’m really passionate about is having good documentation, as well as work instructions that really establish a foundation for what we do and how we do it. Every day you have a different group coming in, so we need to have a standard mechanism,” says Covell. “Having a consistent process is really the foundation for continuous improvement. If we’re all working the same way and with the same output, we can build upon that platform to create and implement changes and then improve our working structure; JUNE 2019

107

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WORLD VISION

108

JUNE 2019

WO RLD VI SI O N I N 20 17

• Treated 118,000 children for acute malnutrition • Distributed over 10.9mn malaria treated mosquito nets • Responded to 170 emergencies in 56 countries • Trained over 58,000 teachers • Provided more than 1.4mn small loans • Sponsored over 3mn children.

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109

WORLD VISION

110

“ For every dollar we spend in freight, there’s almost $20 of product that we’re shipping and being able to bring into play for ministry utilization” — Tim Covell, Supply Chain Director, GIK, World Vision

so process control documentation creates the foundation for future continuous improvement.”

Continuous consistent improvement is reliant on clear communication and coordination, and Covell stresses that technological advancements over the past decade have been essential to that process. “Recently we invested in the Microsoft Dynamics Enterprise Resource Planning system,” he says.

“It’s been a powerful tool to be able to synchronize different portions of the team, in the US and internationally.”

JUNE 2019

111

Covell describes this, along with a new

GIK team will continue to leverage every

Transportation Management System,

tool at its disposal in order to continually

as “a real game-changer”. “Being able

improve its ability to deliver vital supplies

to manage large donors, having the

to improve the quality of life of the

transparency and the communication

people who need it most. “Our journey

efficiency between the logistics teams

ahead is continuing to figure out how to

and the various warehouses around

be good stewards of the freight dollars

the country, has been a real asset,”

that are donated to us and support

he reflects.

World Vision’s ministry operations.”

Looking to the future, the GIK operation has cause for celebration.

“In June, we’ll be shipping our 5,000th container,” Covell says with pride. The project is far from over though, and the w w w.suppl yc ha i ndi gi ta l. com

112

SEG AUTOMOTIVE: AGILITY AND AUTONOMY IN THE SUPPLY CHAIN

WRITTEN BY

HARRY MENEAR PRODUCED BY

JUSTIN BRAND

JUNE 2019

113

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SEG AUTOMOTIVE

NINA BOMBERG, GLOBAL LEAD BUYER AT SEG AUTOMOTIVE, DISCUSSES COLLABORATION, COMMUNICATION AND THE COMPANY’S INCREASED AGILITY FOLLOWING ITS CARVE-OUT FROM BOSCH

C

onventional wisdom dictates that, when leveraging bargaining power, the bigger the company, the better the deal. In

January 2018, the Starter Motors and Generators division of multinational engineering and electron114

ics company, Bosch, completed its transition to become an independent organisation. Trading under the name SEG Automotive, now owned by Chinese consortium Zhengzhou Coal Mining Machinery Group (ZMJ) and China Renaissance Capital Investment (CRCI), the company is continuing to push the envelope of powertrain solutions for combustion engines and electrification in the automotive sector. “Our new advantages include being more flexible, faster and more able to incorporate supplier innovation,” explains Nina Bomberg, Global Lead Buyer at SEG Automotive.

Bomberg was hired by SEG in 2017 before the company’s carve-out was completed, taking the reins of a global procurement network readying itself to step into the future. She sat down to discuss SEG’s sourcing, procurement and supply JUNE 2019

115

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SEG AUTOMOTIVE

“ YOU CAN BE TOUGH WHEN YOU NEGOTIATE, BUT YOU SHOULD ALWAYS BE FAIR AND TREAT PEOPLE WITH DIGNITY AND RESPECT” — Nina Bomberg, Global Lead Buyer, SEG Automotive

chain strategy going forward, the company’s plans to become a world leading provider of electrification solutions, and why bigger doesn’t always equal better.

Bomberg has always enjoyed the unpredictable nature of a career in sourcing. “One day you need to rent an elephant and the next you’re finding a financial auditor,” she laughs. “I’ve always enjoyed the diversity.” Change in the procurement industry isn’t restricted to the day-to-day: over the

116

JUNE 2019

CLICK TO WATCH : ‘SEG AUTOMOTIVE CORPORATE VIDEO’ 117 past decade, Bomberg notes, the role

acknowledges that a large portion

of the supply chain executive and their

of the industry still has a long way to

department has evolved dramatically.

go in terms of supply chain evolution.

“We’ve moved from being a purely

“I joined a company in 2012 that was

cost-driven money saver to becoming

turning over multiple billions of dollars

internal consultants on a mission

every year – yet they didn’t have an

to create value for the organisa-

indirect sourcing department. The

tion,” she says. “Cost saving is

role of procurement is changing, but

definitely still a part of our role,

some companies have a longer way to

but we also focus on supply

go than others,” she says. With SEG,

security, innovation and more.”

Bomberg’s excitement continues, not

The opportunity to join a company

only to be working in a growth sourcing

that was preparing to cross

industry, but also to be part of a team

such a monumental threshold was

that is at the forefront of the supply

an enticing one for Bomberg, who

chain industry’s evolution. w w w.suppl yc ha i ndi gi ta l. com

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“The biggest lesson I’ve learned at

essential to fully leverage employees’

SEG is that what goes around comes

expertise. “As global lead buyers, we are

around,” says Bomberg. “How you treat

responsible for the overall purchasing

the other side of the table is crucial. You

strategy. We’re also the ones coordinat-

can be tough when you negotiate, but

ing the commodity buyers that SEG has

you should always be fair and treat

spread around the world. We have

people with dignity and respect.”

local people doing the purchasing in

Establishing respectful, mutually-ben-

the specific countries, as they are

eficial, long term relationships between

much closer to our internal business

SEG and its suppliers is a vital aspect

partners, as well as local legislation,

of Bomberg’s role in managing the

regulations, taxation, local suppliers

company’s buying strategy. Communica-

etc. If everything was done from the

tion between the company’s high-level

central office, we would not be able to

decision makers and local buyers is

operate with the same amount of

E XE CU T I VE PRO FI LE

Nina Bomberg Nina Bomberg has a background in various Indirect roles in multi-national companies operating in different industries. Today she is the Global Lead Buyer in the Indirect Sourcing division of SEG Automotive. Their capex sourcing team is a team of seven people, spread across all regions. Currently she focuses on right-sizing processes after the company’s carve out from Robert Bosch. Her experience in multi-cultural change management and stakeholder management, as well as a motivator prove to be beneficial for this task. Bomberg is a business graduate and holds an MBA from ESCP Europe.

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119

SEG AUTOMOTIVE

flexibility and insights,” explains Bomberg. “It’s very important that, when we implement our strategies, we align closely with our specialist departments so they understand why we do or don’t do certain things. In the sourcing space, a lot of things live and die by whether the internal business partners align with a strategy.”

SEG Automotive’s strategy of communication and collaboration also applies to their suppliers. “We’ve had extensive discussions with our supply base which 120

allowed us to explain our mission of reducing global CO2 emissions, our new structures and showcase the

“ THE AUTONOMY WE HAVE NOW MEANS WE SET OUR OWN TARGETS – AND ELECTRIFICATION IS A KEY AREA OF GROWTH FOR US” — Nina Bomberg, Global Lead Buyer, SEG Automotive

JUNE 2019

additional benefits that we now bring to the table. In the past, we had many suppliers that were a good fit for the huge organization that is Bosch. Now, we develop suppliers that are perfect for SEG and our new size and speed.

Very often that is a supplier we have worked with for many years, and in some cases it’s a new organisation,” she says.

One of the new companies working with SEG is CHG Meridian, an IT services and leasing company from Weingarten, Germany. “Since the carve-out, we’ve had a very good relationship with CHG using their IT solutions,” Bomberg says.

“Our next project will be to streamline our forklift fleet. CHG will definitely help us to align and organise it better.”

Bomberg notes that SEG’s more agile business profile is conducive to both increased levels of communication and adaptability. “Instead of the complex organization of Bosch, we now have a dedicated sourcing team that serves only SEG. With increased focus, process knowledge and more direct communication, intercultural and inter-disciplinary teamwork has become much easier.

This includes regular visits of the global lead buyers to the local buyers around w w w.suppl yc ha i ndi gi ta l. com

121

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“ IN THE SOURCING SPACE, A LOT OF THINGS LIVE AND DIE BY WHETHER THE INTERNAL BUSINESS PARTNERS ALIGN WITH A STRATEGY” — Nina Bomberg, Global Lead Buyer, SEG Automotive

my we have now means we set our own targets – and electrification is a key area of growth for us,” emphasises Bomberg. “We have the clear goal of being a technology leader in that field as well.” SEG’s new Chinese owners reflect the increasing maturity of the electric vehicle market in the Asia Pacific region. Bomberg asserts: “China has established itself as the largest car market in the world and is driving the change towards electrification.”

European demand for solutions that

the world ,” says Bomberg, adding that

reduce CO2 emissions is rising rapidly

the reduction in organizational complex-

too and SEG is anticipating a continued

ity has allowed SEG’s team to cater

surge in a market where it is already the

its sourcing practices to the unique

key player. “48V mild-hybridization in

challenges of different markets. “Now

particular will be a key technology in

it’s possible to have a supplier that only

Europe, which is set to even outpace EVs

works in Brazil but is exactly right for

in terms of market penetration. Just as

that market, whilst for the other six

with starter motors and generators

countries where we produce, we buy

before, we are a technology leader for

from someone else.”

48V, which transforms any conventional

More focused, adaptable sourcing is

internal combustion engine into an

giving SEG the ability to hone in on its

efficient mild-hybrid with minimal effort.”

long term goals: to further increase its

The company is looking to expand its

contribution to reducing CO2 emissions

portfolio and improve upon existing

from passenger cars and commercial

products at its new R&D centre under

vehicles, while also becoming a leader

construction in Changsha, China, which

in electrification solutions. “The autono-

is collaborating across continents with w w w.suppl yc ha i ndi gi ta l. com

123

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“ ONE DAY YOU NEED TO RENT AN ELEPHANT AND THE NEXT YOU’RE FINDING A FINANCIAL AUDITOR” — Nina Bomberg, Global Lead Buyer, SEG Automotive

vehicles,” says Bomberg. At the same time, the company also expands its product portfolio to answer regional mobility needs. SEG’s Indian division is set to introduce an electric motor designed to power e-rickshaws. The 2kW electric motor, christened the EM 1.2-HR (high range), has been developed to cater to the growing demand for e-rickshaws across many cities in India.

the German R&D centre. “With this new

“With the capabilities and collaboration

facility, we’re able to further expand our

of our Indian and German engineering

research into powertrain solutions for the

teams, we have been able to bring the

future, especially high-voltage compo-

product from conceptualisation to reality

nents in preparation for fully electric

in a record time of one year,” said Anil

JUNE 2019

125 Kumar MR, Managing Director, SEG

confident that the company has lost

Automotive India in an interview with

none of its bargaining power when

Autocar Professional earlier this year.

it comes to its relationships with a com-

Looking to the future, Bomberg

plex supplier network. “We are a smaller

expects to be at the heart of an increas-

company now, no question. However,

ingly diverse procurement network,

we are still a US$2bn multinational

as SEG further expands its product

corporation and a global player in our

portfolio. “The automotive industry is

segment. Despite the fact that it is

facing a transformation – and SEG

not the size of Bosch anymore, SEG

Automotive will actively shape this

Automotive is still a market leader in

transition towards more efficient

its business fields and will continue

combustion engines, 48V hybrids and

to leave its mark.”

electrification,” she says. As an independent company, SEG may be more agile and focused, but Bomberg is w w w.suppl yc ha i ndi gi ta l. com

126

TURKCELL: DRIVING SUPPLY CHAIN MANAGEMENT EFFICACY THROUGH TECHNOLOGY AND

COMMUNICATION WRITTEN BY

MARCUS LAWRENCE PRODUCED BY

JUSTIN BRAND

JUNE 2019

127

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TURKCELL

Ali Türk, Executive Vice President of Supply Chain Management at Turkcell, discusses how Turkey’s largest mobile operator is driving efficiency with customers at the forefront

T 128

urkcell, the largest mobile operator in Turkey, has undergone a significant shift in its procurement and supply chain

operations driven by a radical ideological change to the business itself. “Turkcell is a unique company, a digital operator,” says Ali Türk, Executive Vice President of Supply Chain Management at the firm.

“We are dealing not only with the mobile part, but also the commerce part: it’s one entity.”

With a focus on establishing a high quality internal infrastructure, technology and network infrastructure, and meaningful, functional digital services, Turkcell has undergone a structural change that highlights the importance of procurement to its wider strategy. As part of supply chain management’s realignment as a strategic function, Turkcell established a dedicated procurement committee to drive positive change. Meeting every week alongside the CEO, Murat Erkan, the committee makes key JUNE 2019

129

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TURKCELL

decisions on the company’s biggest purchases. While these make up 3% of

130

follow throughout the organisation.

These structural adaptations are

the firm’s purchases at large, their

bolstered by the application of

combined volume equates to 80% of

disruptive technologies, driving

the total made by Turkcell. “All of the

efficiency and transparency at Turkcell.

company’s top executives are fully

However, Türk stresses that digital

involved in these processes, and they

transformation is, to Turkcell, a tool

acknowledge and evaluate all of the

rather than a goal. “Digital transforma-

aspects of procurement investments

tion is a must to survive in our era,” he

and strategy.” Not only that, but a

says. “It enables us to focus on optimis-

unification of operations between

ing costs in a sustainable structure, to

teams has been achieved through the

increase revenues, and to increase the

adoption of agile management method-

level of quality we offer our customers.”

ologies, enabling a consistent thread for

A particular area of interest for Türk is

supply chain management strategy to

robotic process automation (RPA) and

“ Turkcell is a unique company, a digital operator” — Ali Türk, EVP Supply Chain Management, Turkcell

JUNE 2019

CLICK TO WATCH : ‘TURKCELL: RAMAZAN’A ÖZEL SALLA KAZAN PAYLAS!’ 131

the benefits it could have for internal

ICT department to drive the gradual

teams. He adds that the application of

rollout of RPA through specific

this technology will be based on what

digitalisation departments. “For

those teams themselves view as the

example, supply registration, fee

areas that would benefit most from

operation, calculation of monthly

automation, and the freeing up of staff

payments, operation of the tender

from repetitive tasks that it would

process, opening site acquisition and

enable. “We have procurement

scrap sales orders; they’re all opera-

departments, logistics departments,

tional issues and ritual issues,” says

real estate, construction and site

Türk. “Right now, we are developing

acquisition departments, and they are

some use cases and we will forward

each highlighting their requirements,”

those tasks to RPA.”

he says. Once those needs are defined, they each collaborate with Turkcell’s

In addition to its RPA ambitions, Turkcell has deployed artificial w w w.suppl yc ha i ndi gi ta l. com

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TURKCELL

CLICK TO WATCH : ‘TURKCELL: RTÜRKIYE’NIN ARAMA MOTORU YAANI BIR YASINDA’ 134

intelligence (AI) technology to enable

that will streamline communications

price estimations for services and

between internal departments.

network site acquisitions. “Right now,

The chatbot stands to mitigate time spent

we are managing approximately 20,000

chasing answers to various questions

value sites and we have a huge site

across multiple teams, particularly when

acquisition team that oversees the hiring

it isn’t clear who might be best placed

of those sites,” says Türk. With AI,

to provide those answers. “We will

Turkcell is using Big Data and analytics

eliminate these unproductive elements”

to drive intelligent land acquisition,

says Türk, “and we will address our

selecting sites that offer the best value

teams to focus more on strategic

to the company: maximising efficiency

business operations.” He adds that

whilst simultaneously cutting costs. The

digitalised contracts and digital

company is also developing a supply

signatures will significantly streamline its

chain management chatbot

dealings with contractors and landlords.

JUNE 2019

Türk’s team manages around 20,000

approval from the regulators to go

contracts with landlords which, until

digital and, thanks to mobile and

now, has been done through physical

biometric signatures, the completion

copies, meaning turnaround times are

time for contract signatures will be

protracted, cargo and courier costs

decreased from 10 days to between

mount up, and there is significantly

six and 10 hours. No cargo costs,

increased risk of delays caused by lost

no courier costs, no lost documents.

or damaged paperwork. “In Turkey

The processes will be fully optimised.”

there are regulations that limited us to

Across its supply chain, Turkcell’s

using hard copies for contractual

application of disruptive technologies

documents,” says Türk. “We got

is supported by a meaningful, hands-

E XE CU T I VE PRO FI LE

135

Ali Türk Ali Türk joined Turkcell as the Senior Vice President of Supply Chain Management in May 2016 and was appointed as the Executive Vice President of Supply Chain Management in March 2017. After graduating from the Industrial Engineering Department of Istanbul Technical University in 1999, Türk completed the Istanbul Technical University Executive MBA program in 2001. Between 2002 and 2007, Türk held various management positions responsible for logistics planning, warehouse and supply chain management processes at Ülker Group Companies. He worked at Ceva Lojistik between 2007 and 2011 as Warehouse and Value Added Operations group manager. Joining Turkish Airlines in 2011 as Cargo Operations Vice President, Mr. Türk has served as its President since 2012.

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TURKCELL

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CLICK TO WATCH : ‘TURKCELL: TEKNOLOJININ DÜNYAYI DEGISTIREBILECEGINE INANIYORUZ’ 137

on approach to vendor management that ensures their respective offerings meet Turkcell’s needs in the fullest capacity. “We regularly evaluate our suppliers’ operational, commercial and quality perspective capabilities,” says Türk. “Also, for effective vendor management, meeting regularly is crucial. I don’t expect the vendors to only come to us, but we also visit them at their own premises and facilities to help us understand how they operate.”

With the added insight provided by

“ You have to change people’s perspectives.

Change means that it’s changing to good, not bad” — Ali Türk, EVP Supply Chain Management, Turkcell

Turkcell, Türk notes that the key driver w w w.suppl yc ha i ndi gi ta l. com

TURKCELL

of this approach is encouraging its vendors to evaluate their processes and inspire innovation. Not only that, but operational stability is also supported by this focus on establishing effective lines of communication.

“At times we generate new projects which impact our business methods and processes, and every time that happens it’s known by all parties,” Türk adds. Furthermore, supplier-enabled innovation has been defined as a key performance target for each procurement specialist at the firm, ensuring that 138

innovative opportunities are actively sought whilst working with suppliers.

“ For effective vendor management, meeting regularly is crucial” — Ali Türk, EVP Supply Chain Management, Turkcell JUNE 2019

Tying everything together is an unerring commitment to effective change management. “If you want to be successful on this transformation journey, change management is the most crucial part,” enthuses Türk.

“You have to change people’s perspectives. Change means changing to good, not bad. The next era should be better than before.” To drive this positive attitude to shifts in operations and the application of new technologies,

48.9mn Group subscribers in five countries

178mn

Downloads globally

85.8mn Digital subscribers globally

139

Turkcell operates what Türk calls

already been approved by our boss

Supply Chain Management Boot-

to take forward,” says Türk. “We tell our

camps that bring together the talents

staff that, as we’re changing everything,

of different teams across the SCM

they have to adapt quickly, but we

spectrum at the firm. The focus is

emphasise that they are managing

primarily on generating innovative

these innovative projects. They’re

ideas and making employees a part

driving the change, and that’s crucial.”

of the transformation process, with the additional benefit of cross-functional collaboration at these events and establishing strong lines of communication between different teams. “The bootcamps have generated a lot of projects so far, and some of those have w w w.suppl yc ha i ndi gi ta l. com

UILDING A ROCUREMENT EPARTMENT ROM THE ROUND UP WRITTEN BY

HARRY MENEAR PRODUCED BY

JUSTIN BRAND

140

141

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APPLUS+

MONTSE EMPEZ, CHIEF PURCHASING OFFICER AT APPLUS+, TELLS THE STORY OF BUILDING THE COMPANY’S PROCUREMENT DEPARTMENT FROM THE GROUND UP, AND OF THE DIGITAL TRANSFORMATION OF ITS SUPPLY CHAIN

A

decade ago, the role of a procurement department and its Chief Purchasing Officer (if the role existed at all) was often

relegated to a monthly meeting of the accounting 142

department in order to briefly discuss the cheapest possible way to acquire products and services.

Today, the business community has “moved on from the idea that procurement is just a cost cutting department. Now, it’s a department that adds value to the company and is capable of driving change inside the organisation,” says Montse Empez, Chief Purchasing Officer at Applus+. Founded in 1996 and headquartered in Madrid, Applus+ is one of the world’s leading testing, inspection and certification companies. It provides solutions for customers in multiple industries to ensure that their assets and products meet health and safety, quality and environmental standards and regulations.

Applus+ operates in more than 70 countries and employs 22,800 people.

JUNE 2019

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APPLUS+

“ IT’S THE HOT TOPIC RIGHT NOW. EVERYONE IS TALKING ABOUT PROCUREMENT DIGITAL TRANSFORMATION” — Montse Empez, CPO, Applus+

Joining the company in 2011, Empez was tasked with a unique and engaging challenge: building Applus+’ procurement department from the ground up.

“Since I joined the company, I have seen tremendous change in the perception of procurement and the involvement that we now have in strategic decisions. It has not been an easy path; we have had to show we’re adding value to gain that confidence,” Empez recalls. Touching on the long-term digital transformation of Applus+ procurement department, Empez discusses her journey so far,

144

how the growing importance of the procurement department has led to increased challenges, and the ways in which digital transformation is instrumental in overcoming them.

The pervasive digital transformation of the business landscape is, Empez asserts, the touchstone by which every procurement department will be judged by history. “It’s the hot topic right now. Everyone is talking about procurement digital transformation,” she notes. “We are trying to integrate all the companies to access data via either API or web services, so that we can gain access to information JUNE 2019

CLICK TO WATCH : ‘APPLUS+ BRANDCLIP VIDEO’ 145 incredibly quickly. That sort of imple-

made was to internalise that function,”

mentation will hopefully allow us to

Empez recounts.

be proactive rather than reactive.”

Outside of Spain, she quickly

Gathering data from the 70 countries

discovered that Applus+ operations in

across which Applus+ operates has

most countries lacked a procurement

been no mean feat for Empez, who

process, and those that did have one

faced initial challenges at home and

weren’t standardised. “We had no

abroad. “When I joined Applus+, the

spend visibility and no global deal or

first thing I found out was that there

agreement in place for our fleet.

were no procurement specialists in

Applus+ has over 5,000 vehicles,

Spain. The company had an external

which represent one of the most

procurement department that was just

important requests for proposal (RFPs)

processing local purchase orders and

in the company, so that was the first

invoices, not doing any procurement as

thing I tackled,” says Empez. After

such. So, one of the first decisions I

reworking Applus+ fleet management, w w w.suppl yc ha i ndi gi ta l. com

APPLUS+

146

“ I’D LIKE APPLUS TO BE AHEAD OF THE MARKET, NO MATTER WHAT KIND OF CHANGES ARISE” — Montse Empez, CPO, Applus+

JUNE 2019

147

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“ WITH THE NEW SYSTEM, I STARTED GETTING INFORMATION THAT MEANT WE COULD MAKE SMARTER DECISIONS AND ENSURE COMPLIANCE” — Montse Empez, CPO, Applus+

ensure compliance.” Now, Applus+ is in the process of migrating its procurement department again, this time to SAP Ariba’s service. “Ariba is a much more robust system than our previous deployment,” Empez explains. “It gives us additional advantages with regards to our procure-to-pay process, and it allows us to implement rules with procurement to be more consistently compliant. We are very satisfied with the Ariba deployment and what we can get out of the system.”

Empez maintains that, regardless of the solutions in use, one of the greatest challenges of the digital transformation of procurement is an increased focus

Empez worked on developing procure-

on compliance. “Procurement is

ment policies to demonstrate which

coming under more and more scrutiny,”

software solutions system would best

she says. “There are increased controls

suit the company’s needs. “A year after

and compliance standards on the

I joined the company, I raised the

procurement process now, especially

department’s needs with the board of

relating to things like Corporate Social

directors, and they agreed to launch an

Responsibility (CSR). Procurement is

RFP. I’m proud to say that six years

something that can, if done poorly,

after the first implementation, we now

really hurt a company’s reputation.”

have 13 countries using it. It’s not

Sustainable practice across the

complete, but it’s a great start,” says

procurement department is another

Empez. “With the new system, I started

avenue through which responsibility

getting information that meant we

increases alongside importance.

could make smarter decisions and

“Sustainability in the supply chain w w w.suppl yc ha i ndi gi ta l. com

149

APPLUS+

150

is taken much more seriously than 10 years ago,” says Empez. “We’re doing a lot of things: we want to make sure that we work with suppliers that are

€1,676mn Approximate revenue

sustainable in the way they operate, so we have a pretty strict evaluation and qualification process. The same goes for our products.”

Looking to the future, Empez sees emerging technologies like Big Data, prescriptive analytics and the Internet of Things (IoT) as key to overcoming the challenges facing procurement departments. However, she observes, JUNE 2019

1996

Year founded

22,800 Approximate number of employees

APPLUS+ DIVISIONS

•E NERGY & INDUSTRY DIVISION: leading global provider of non-destructive testing, inspection, quality assurance and quality control, project management, vendor surveillance, certification, asset integrity services and technical staffing services.

•L ABORATORIES DIVISION: testing, certification and engineering services to improve product competitiveness and promote innovation. The Division operates a network of multidisciplinary laboratories in Europe, Asia and North America •A UTOMOTIVE DIVISION: global leading provider of statutory vehicle inspection services in several markets in which the periodic vehicle inspection is mandatory for the compliance of safety and environmental standards.

•D IADA DIVISION: IDIADA A.T. (80% owned by Applus+ and 20% by the Generalitat of Catalonia) has since 1999 been operating under an exclusive contract at the 331-hectare technology centre near Barcelona (owned by the Generalitat of Catalonia), which includes the most comprehensive independent proving ground, testing laboratories and vehicle development centre for motor vehicles in Europe. The contract runs until 2024 and is renewable until 2049.

The Division provides services to the world’s leading vehicle manufacturers for new product development activities in design, engineering, testing and homologation.

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APPLUS+

152

“ ARIBA GIVES US ADDITIONAL ADVANTAGES WITH REGARDS TO OUR PROCURE-TO-PAY PROCESS” — Montse Empez, CPO, Applus+

while the majority of companies are, in some way, adopting artificial intelligence (AI) and predictive analytics, this investment is not being seen enough in the supply chain and procurement departments. “These technologies will play a significant role in procurement.

My question is ‘when?’ I don’t think the market is ready yet. Applus+ has implemented AI tools in its systems for checking things like the procure-to-pay process. But the reality is that only maybe 1% of our suppliers are ready for

JUNE 2019

153

an AI integration.” This is something

transformation. Of course, there will

that Applus+ is putting a great deal

always be new things,” she laughs.

of emphasis on going forward. “In all

“I’d like Applus+ to be ahead of the

our new RFPs we’re looking for digital

market, no matter what kind of changes

players,” Empez explains. “Through this

arise. By next year, I hope we have a

intelligence, we can definitely improve

consolidated structure and are ready to

efficiency and cost.”

take on new challenges and projects.”

Empez relishes the ongoing challenge and dynamic nature of her role.

“Right now is a fantastic time, because my role and department are changing the organisation. By 2020, I hope we will finish our department’s digital w w w.suppl yc ha i ndi gi ta l. com

154

JUNE 2019

UNITINGCARE ENCOURAGING INNOVATION THROUGH THE SUPPLY CHAIN WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

STUART IRVING

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155

UNITINGCARE QUEENSLAND

Michael Gillin, General Manager Procurement and Services at UnitingCare discusses the supply chain strategies UnitingCare is utilising amidst rapid industry changes

A

s an organisation that puts its people and the community at the forefront of its decisions, UnitingCare understands

the importance of leveraging modern technology and innovation to achieve success in the healthcare industry.

156

Michael Gillin, General Manager Procurement and Services, has overseen how UnitingCare has established and maintained a well-managed strategic function across the business. Having previously worked in management consulting roles at KPMG which took Gillin to Brisbane, Australia, from the UK in 2011, he joined UnitingCare in April 2017. Gillin believes that his previous experience truly laid the groundwork for success in his role with UnitingCare. “A lot of the work I did with KPMG was large-scale global business transformations and most of it was focused around procurement, supply chain and cost reduction,� says Gillin. “In a procurement role, one of the major things that you need to do is engage with suppliers and business stakeholders. With major reform occurring in the aged, health and community JUNE 2019

157

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UNITINGCARE QUEENSLAND

“ I believe a good partner is one that’s aligned to your values and your objectives. It’s a company that’s proactive with you and not just providing a service”

158

— Michael Gillin, General Manager Procurement and Services, Unitingcare Queensland

JUNE 2019

sectors, UnitingCare has had to innovate and make the necessary changes to respond to change. I think my experience in supporting the organisation through that change has afforded me a better understanding of what works and what doesn’t.”

INNOVATION IN THE CARE SECTOR Earlier this year, UnitingCare held a successful Supplier Innovation Tradeshow and Showcase in Queensland, led by Daniela Kerr, Procurement Specialist at UnitingCare. The event exceeded expectations, with over 50

CLICK TO WATCH : ‘CAROLINE’S STORY: I WANT TO MAKE A DIFFERENCE IN PEOPLE’S LIVES’ 159 of UnitingCare’s key suppliers attend-

UnitingCare’s network of hospitals

ing the trade show. “The theme of the

continue to excel in being recognised

show was sustainability and innovation

for their clinical expertise and use of

and there were lots of advanced technol-

cutting-edge medical technology.

ogies from different suppliers show-

Last year, UnitingCare’s Wesley Hospital

casing new, innovative products and

was internationally recognised as

services,” explains Gillin. “The feed-

Australia’s first Centre of Excellence in

back from everyone in attendance has

Robotic Surgery, one of only 10 hospitals

been fantastic and it made all the hard

worldwide at the time and recently

work worthwhile.”

opened a new Emergency Centre at

Having centred its expo around innovation, Gillin affirms how important it is to

Buderim Private on the Sunshine Coast.

“In our aged, community and disability

continue to develop its services and

business units we have developed

facilities. “Innovation is absolutely critical

an affordable housing strategy and

to us and was a key focus of our expo.”

implementation plan, designed and w w w.suppl yc ha i ndi gi ta l. com

UNITINGCARE QUEENSLAND

160

JUNE 2019

implemented innovative programs to

to support people to life a full life

support children and families in foster

regardless of their circumstance.

and kinship care,” explains Gillin. “We

“I believe we’re an organisation with

have continued to provide expertise

a heart. I love that we’re an organisa-

to support clients transitioning to the

tion with a social purpose and it gives

National Disability Insurance Scheme

me a sense of pride to know what I’m

(NDIS) including the roll-out of digital

doing is contributing to something

applications to assist clients with their

very meaningful.”

NDIS plan management. From a pro-

With technology transforming the

curement and supply chain aspect,

way companies worldwide conduct

we’re interested in the innovation our

business, Gillin understands the value

suppliers can bring into our organisation.”

of implementing it into UnitingCare’s procurement strategy. “I think it’s really

MAKING A DIFFERENCE

important that we try to get an end-

As a not-for-profit organisation, Gillin

to-end solution from our sourcing

affirms UnitingCare’s operations are

platform to our contract and supplier

underpinned and guided by its mission

management platforms. We’ve currently

E XE CU T I VE PRO FI LE

Michael Gillin Michael Gillin is a General Manager, Procurement and Services at UnitingCare and has over 18 years’ experience in driving operational efficiencies. Before starting at UnitingCare, Michael spent ten years as a Management Consultant for KPMG in Australia and the UK helping businesses transform operations and reduce costs. Michael also spent seven years in as an Engineer in the automotive industry with Jaguar Land Rover and MG Rover.

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161

“ I believe we’re an organisation with a heart” — Michael Gillin, General Manager Procurement and Services, Unitingcare Queensland

163

got about three or four different solutions

success, Gillin reflects on what his

that work across processes and they’re

organisation looks for when deciding

not all integrated,” he says. “Data is

to embark on a new venture. “I believe

a bit of a challenge at the moment and

a good partner is one that’s aligned to

is critical for us to understand demand

your values and your objectives. It’s

so that we can support the business to

a company that’s proactive with you

be more operationally efficient and

and not just providing a service; it’s

competitive because the industries in

coming to you with ideas and chal-

which we operate are continuing to go

lenging the way that you do things to

through large changes so it’s vital that

help you improve.”

we work out where we fit into that.”

Having formed mutually beneficial

After establishing important partnerships with Accenture and Bunzl, Gillin

partnerships with a range of compa-

affirms UnitingCare’s collaboration

nies in order to achieve and sustain

with the two companies are very w w w.suppl yc ha i ndi gi ta l. com

UNITINGCARE QUEENSLAND

165

“ Innovation is absolutely critical implemented a procurement hub, which consists of eight Uniting entities across to us and was Australia working collaboratively together a key focus of to deliver procurement benefits,” our expo” explains Gillin. “Accenture are our beneficial. “Led by our Chief Financial

Officer Peter Gunn, we have recently

partner and are responsible for running the hub for us. They’ve been brought on board to bring the organisations together and to run procurement and supply

— Michael Gillin, General Manager Procurement and Services, Unitingcare Queensland

chain initiatives with the goal of reducing costs,” he says. “Bunzl is also a strategic partner to the Uniting Care business; it supports us as one of our major w w w.suppl yc ha i ndi gi ta l. com

UNITINGCARE QUEENSLAND

2000

Year founded

17,000

Approximate number of employees

166

JUNE 2019

distributers that services around 500 sites across all of Queensland and the Northern Territory. It’s important that we partner with a supplier that understands our needs and the importance of getting product to our residents, patients and clients in a timely matter to help support their needs.”

LOOKING FORWARD Looking to the future, Gillin has a clear idea of where he anticipates UnitingCare to be over the coming years. “UnitingCare have devised a 2030 strategy which has given us direction around our key focus areas. We’ve got a clear direction of where we want to be, but to be successful it really comes down to people. It’s great to have strategies and become more digital, but it’s important that we don’t lose sight of the fact that we provide care, support and health services to people in need,” says Gillin.

“The key is to keep the people we look after at the forefront of everything we’re doing. We are driven to making sure any investment provides the most benefit to our front-line staff and the people that we serve.”

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168

Deloitte: delivering strategic sourcing transformation empowered by digital analytics WRITTEN BY

OLIVIA MINNOCK

JUNE 2019

PRODUCED BY

ARRON RAMPLING

169

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DELOITTE

With procurement increasingly gaining a seat at the executive table, Deloitte consultant Natascha Schijven says having the right digital analytics and diverse talent in place is key to transforming sourcing operations

M

anagement consultant Natascha Schijven has witnessed the changing procurement landscape for around

two decades. Now a Partner for Supply Chain 170

& Manufacturing Operations at Deloitte, she began her career in manufacturing for a multinational packaging company in the Netherlands. Even though the local manufacturing environment was exciting, Natascha wanted to make use of a background in international business and language studies. “I wanted to make sure I would work on projects that were more complex, spanned geographies and leveraged my languages and international business background so I moved from manufacturing into strategic sourcing,� she recalls.

Schijven sourced direct materials in packaging across Europe and indirects for a global specialty chemicals company, but started to feel her work lacked challenge. “At some point I got bored with the repetitive nature of my nine to five job and wanted to find something more challenging JUNE 2019

171

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DELOITTE

“ Next generation sourcing managers need to be trained in advanced analytics and be knowledgeable of the technologies empowering them”

172

— Natascha Schijven, Partner, Supply Chain & Manufacturing Operations, Deloitte

and versatile”, she says. Schijven moved into consultancy, first with A.T. Kearney and then for Deloitte. Having previously worked with consultants herself, she was ideally placed to understand the situation from both sides. “Having been on the receiving end, working with several consulting firms, allowed me to understand where the client is coming from. It’s a very different world as a client: you effectively have your own day job, plus then all of a sudden you need to manage a consultant coming in.”

Assisting some of the world’s largest organizations in Fast Moving Consumer Goods, Retail, Pharmaceuticals and Industrial Products to transform the way they source and manage costs, Schijven argues that what makes Deloitte different is the way it works as a true partner for its clients. “We are there hands on from A to Z. We’re in the trenches with you – we’re not here to tell you how to do something and then leave you to go ahead and do it,” she explains. The global consultancy’s methodology, and indeed Schijven’s experience to put herself in the clients’ shoes, has proven to resonate well with clients the world over. “It comes down

JUNE 2019

NATASCHA SCHIJVEN, PARTNER SUPPLY CHAIN & MANUFACTURING OPERATIONS AT DELOITTE. ‘DELOITTE AS A PARTNER’

to being authentic and truthful, speak-

Indeed, Deloitte’s AI practice,

ing from one human to another. That

Deloitte Omnia, is armed with next

helps clients not to just see consultants

generation, disruptive solutions from

as guns for hire, or cyborgs coming

Internet of Things (IoT) to Deep

to take jobs away from them.”

Learning, Machine Learning solutions

Deloitte, Schijven adds, is more than

and many more. “We can offer clients

just consulting. “We have a variety of

ways to take cost out through strategic

critical business lines. We have breadth

sourcing sustainably – to accelerate

and depth. We have a lot of technology

time to value and truly optimize on

empowering us and a bench strength

total cost of ownership for our clients

in advanced, digital analytics that I had

– across departmental silos. After

previously never come across. Deloitte

we’ve transformed an organization,

has a whole practice built around

Procurement is no longer just seen

digital and digital disruption.”

as a cost cutter.” w w w.suppl yc ha i ndi gi ta l. com

173

DELOITTE

NATASCHA SCHIJVEN, PARTNER SUPPLY CHAIN & MANUFACTURING OPERATIONS AT DELOITTE ‘DIVERSITY OF THOUGHT’

174

PROCUREMENT CHANGES

been one of the best ways in which you

As industries become more competi-

can rapidly control costs,” Schijven

tive, the way procurement is viewed is

continues. “We’re seeing a shift from

indeed shifting, with businesses

not having to worry about cost to that

understanding a greater focus on cost

being the principle concern – there is

management is needed in order to

less flying below the radar in high-mar-

succeed: “Focus is very much shifting

gin environments, so you need to get it

in the CFO space toward cost control.

under control. The past decade or so

The world is rapidly becoming more

has seen the shift from procurement

competitive and there’s a lot of

being a back office, cost-cutting

disruption fueling mergers and

function, to a function that truly delivers

acquisitions. If you don’t get ahead

value cross-functionally and increas-

of that, you’re not going to be able

ingly has a seat at the C-level table.”

to monetize. You’ll miss the boat.

“Strategic procurement has always JUNE 2019

As the function shifts however, there will inevitably be those organizations

which are further ahead, and the

WHAT IS DIGITAL?

landscape has yet to smooth out and

A key challenge Schijven sees procure-

catch up. “It’s a journey,” says Schijven.

ment professionals face is the shift to

“That’s what makes this space so

digital, with one simple question on

interesting. You’re always pushing the

their minds: “What is digital? What is

envelope because you’re working with

this all about? I’m hearing this buzzword

clients who are starting out in the

flying around, but I don’t have a clue

‘beginner’ phase, as well as clients who

what it is. I’m Googling it and getting

are absolute leaders in the space – you

around 400 definitions.” According to

have to have the exhaustive content

the consultant: “The key challenges are

and disruptive innovation capability to

really around how to capitalize on a

show both of them how to reach the

world where everything is connected

next level, and get the next double-

through different levels of technology,

digit cost reduction or multiple base

as well as understanding advanced

point value enhancement.”

analytics that allow you to harness

E XE CU T I VE PRO FI LE

Natascha Schijven is a senior leader with deep experience in large scale cost and strategic procurement transformation across food & beverage, retail, pharma, chemicals and oil & gas in Europe, North America and Asia. She was recently recognized

by SCMA as one of Canada’s 100 Inf luential Women in Supply Chain. Schijven is considered a thought leader in analytics-empowered/digital cost transformation and is an experienced panelist and public speaker.

She is passionate about enhancing workplace diversity, mentoring and advancing women leaders. Schijven currently leads the Direct Materials Management offering for Deloitte Canada.

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DELOITTE

176

JUNE 2019

$43.2bn Approximate revenue

1845

Year founded

286,200

Approximate number of employees

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177

Eliminate empty miles

“ Strategic procurement has always been one of the best ways in which you can rapidly control costs” — Natascha Schijven, Partner, Supply Chain & Manufacturing Operations, Deloitte

long-term sourcing decisions. This is how we help produce insights clients never dreamt were possible before, because all the data that was decentralized across hundreds of laptops, different enterprise systems and thousands of bits of paper is now in one centralized database or stack.

That’s what it means to me.”

Looking at strategic sourcing more specifically, digital means “having everything from your PDF material and artwork specs, through to your policies, contractual and operational procure-

and effectively deduce the core gist

ment data centralized”. “Putting

required for more accurate and

statistical, optimization and other

accelerated decision making. That’s

digital analytics to work within a

what’s needed to survive in the new

rigorous strategic sourcing process on

Industry 4.0 era.”

all that combined to rapidly produce

For Schijven, then, what does digital

exhaustive insights human intelligence

mean? “To me, it’s all about the

never could – that’s how I would explain

conversion of data into key ‘nuggets’ of

the benefits of analytics empowered

information, so inherently it’s all about

strategic sourcing to a CPO,” says

the analytics, harnessing the ability to

Schijven. In order to effectively

have everything that used to be on

capitalize on digital in strategic

paper digitized, empowering central-

sourcing, a key priority is to have the

ized cross-functional analysis. It means

right talent in place. “There’s a big shift

leveraging Big Data technology and

in capability; the skillset required to

having the latest advanced analytics

extract value is vastly different. Next

get to work on all those petabytes of

generation sourcing managers need

data to inform short-, mid-, and

to be trained in advanced analytics and w w w.suppl yc ha i ndi gi ta l. com

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be knowledgeable of the technologies empowering them. This is key next to other critical enablers such as transformation enabling governance and change management.”

DIVERSITY OF THOUGHT When it comes to getting the right talent, Schijven comments: “I would advise organizations to look broadly, step outside of your comfort zone.

What has surprised me is that it’s not always necessarily folks with a business or engineering background 180

who’ve got the right stuff. I’ve been pleasantly surprised by people with completely diverse backgrounds, from microbiologists to historians.

Have a healthy mix of diversely thinking people,” she advises.

Diversity of personal experience, such as having a mix of genders, will also be useful. “Women and men see things inherently differently – we’re just wired differently. Again, in the end what you should strive for is diversity of thought which is fueled by diversity across multiple dimensions; different genders, racial backgrounds, educational backgrounds, sexual orientations, etc. People who have walked life JUNE 2019

differently have different ways of viewing problems and coming up with solutions. You will not be able to build a high-performing team equipped to excel in the digital age with only engineers or only business folks. We’re all myopic because we’re all ‘molded’ to be who we are today through our gender, culture, upbringing, education and so on. Businesses should ensure a diverse pack if they don’t wish to keep coming up with the same answers.”

A WELL-ROUNDED ECOSYSTEM Another way Deloitte achieves diversity of thought is by leveraging its network of carefully selected partners – and this comes down to Schijven’s key philosophy of being authentic.

“We’re never going to be everything to everybody,” she says. “If you try to run a business like that, it’s sub-optimal and it would be excruciatingly costly.

Being true to yourself and saying ‘this is something we don’t do, but we have a really good partner that can offer this, and we will help drive it’ is the right way to go about it. No person or company is omniscient; being humble and self-aware enough to recognize this is key to success.” w w w.suppl yc ha i ndi gi ta l. com

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“We have a broad range of consulting capabilities but there are always areas we don’t want to invest in or dive deep into. It’s a symbiotic ecosystem really, for example we have a network of software partners that provide the enabling, empowering technologies below some of our core capabilities. In the end, we want to authentically do what’s best for our clients so it’s critical to know which partners to work with and how best to leverage each other’s skills.”

ENABLING TRANSFORMATION “Some clients, and even some consultants quite frankly, believe cost transformation means a consultant comes in and like a tornado or ‘gun for hire’, goes around taking all the costs out with bare bones left and then leaves,” Schijven comments – but this isn’t the Deloitte way. “The problem with that approach is that it’s not sustainable – cost will creep back in. So, if you truly want to do strategic sourcing transformation, holistic cost transformation – or any transformation for that matter – you need to embrace the fact that it truly is a transformation. It’s not something you do to an organization; it’s something you do collaboratively w w w.suppl yc ha i ndi gi ta l. com

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NATASCHA SCHIJVEN, PARTNER SUPPLY CHAIN & MANUFACTURING OPERATIONS AT DELOITTE ‘PROCUREMENT HAS CHANGED’

184

“ I believe procurement will gain more and more of a seat at the executive table – and that’s the way it should be” — Natascha Schijven, Partner, Supply Chain & Manufacturing Operations, Deloitte

JUNE 2019

with an organization. Transformation enabling change management is critical or it will not ‘stick’ and people will revert back to the way they used to do things. You need a carefully orchestrated communication and issue mitigation plan, agreed upon, visible executive sponsorship and clear transformation governance set up to help people through it. Interestingly enough many times it’s merely about treating each other as humans: actively listen with your undivided attention, repeatedly engage and communicate,

185

involve and ask advice from those most

executive table – and that’s the way it

affected. People want to be valued,

should be. If you want to take control

acknowledged, heard and recognized.”

of something – not just your own costs

With this commitment to change

but those of your suppliers and the full

management, Deloitte guides its

interconnected value chain, which

clients through transformations that

is what we’re dealing with in a digital

last – and as the importance of

world – you need to empower those

procurement continues to increase,

you put in charge with the appropriate

this will remain key to each one of

level of decision-making authority.”

its clients. “Cost pressure is going to keep increasing,” Schijven says. “As strategic procurement is one of the key direct influencers to that cost, I believe it will gain a more important seat at the w w w.suppl yc ha i ndi gi ta l. com

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