Supply Chain Digital magazine – Magazine 2019

The ethical approach to powering sustainable supply chains

S E P T E MB E R 2 0 1 9

www.supplychaindigital.com

BUILDING A GLOBAL PREMIUM BEER POWERHOUSE

Becoming a logistics titan

AUTOMATION AND THE TEAM BEHIND THE TECHNOLOGY New technologies to ensure its supply chain operations are nimble

Largest sustainable supply chains worldwide

NEW ONE-DAY IBP WORKSHOP

Integrated Business Planning for Business Leaders and Senior Executives EARLY BIRD OFFER

20% OFF

“An investment in knowledge pays the best interest.”

CODE: PL20

BENJAMIN FRANKLIN

Start your journey to increased revenue, reduced costs and cultural transformation.

Book now Oliverwight-eame.com/IBPworkshop  +44 (0) 1452 397200

 hello@oliverwight.com







We have a 50 year track record of helping some of the world’s best-known organisations reach and sustain excellent business performance.

1. Early bird offer is only applicable to our public workshop offering across our new 2019 workshops. 2. This offer will expire on 30th September 2019. 3. Must be used on a paidfor-booking and attended by March 2020. 4. The discount can only be used once by an individual but can be used to book multiple courses if used in one transaction. 5.This offer has no monetary value and cannot be applied to any other Oliver Wight services or products. 6. The discount applies only to the actual course itself, not accommodation.

FOREWORD

W

elcome to the September issue of Supply Chain Digital!

In our cover issue this month, we take a closer look into how Nando’s is adopting technology to ensure its

Jungheinrich is aiming to take warehouse efficiency to a whole new level, and the company maintains a real drive to embrace digitisation in its supply chain. “The pressure is

supply chain operations become more efficient. “Digital transformation will herald a new era for us – with the business growth we have experienced it would be counterproductive to merely throw bodies at the increase in activity,” says Deon Pillay, Head of Supply Chain – Nando’s Grocery International. “We commenced our technology journey 18 months ago and it has already yielded benefits.”

on to drive productivity, increase efficiency, improve accuracy and reduce costs at every stage of the process,” affirms Richmond.

Our leadership piece zones in on Jungheinrich as Steve Richmond, Director of Logistics UK, and Michael Von Forstner, Head of Jungheinrich’s lithium-ion division, discusses the impact of lithium-ion battery technology on their firm’s digitisation in the supply chain space.

Would you like to be featured in the next issue of Supply Chain Digital?

Get in touch at sean.galea-pace@

There are also in-depth features with Allegis, Asahi Europe, Staples, DECATHLON, Corning Incorporated and PepsiCo that you won’t want to miss!

Lastly, this month’s Top 10 counts down the largest sustainable supply chains worldwide.

bizclikmedia.com

Enjoy the issue!

Sean Galea-Pace

www.supplychaindigital.com

03

Click the home icon (top right of page) to return to contents page at anytime EDITOR-IN-CHIEF

SEAN GALEA–PACE EDITORAL DIRECTOR

MATT HIGH CREATIVE DIRECTORS

DANIEL CRAWFORD STEVE SHIPLEY

PRESS PLAY! WHEN YOU SEE THE PLAY BUTTON ICON, CLICK TO WATCH OUR VIDEO CONTENT

CREATIVE TEAM

OSCAR HATHAWAY ERIN HANCOX SOPHIA FORTE SOPHIE–ANN PINNELL PRODUCTION DIRECTOR

DANIELA KIANICKOVA PRODUCTION MANAGER

OWEN MARTIN

Wherever you see these icons in the magazine click to be directly connected via social media

DIGITAL VIDEO DIRECTOR

JOSH TRETT DIGITAL VIDEO PRODUCERS

JOSHUA S. PECK EMILY McNAMARA

05

SOCIAL MEDIA PRODUCERS

JACK GRIMSHAW DANIEL WEATHERLEY EVELYN HOWAT PROJECT DIRECTORS

CHARLOTTE CLARKE STUART IRVING JUSTIN BRAND KANE WELLER DENITRA PRICE RICHARD DEANE MANUEL NAVARRO TOM VENTURO

CLICK NOW TO SUBSCRIBE FOR FREE

DIGITAL MEDIA DIRECTORS

ARRON RAMPLING JASON WESTGATE OPERATIONS DIRECTOR

ALEX BARRON GROUP MANAGING DIRECTOR

JAMES PEPPER CHIEF OPERATIONS OFFICER

ANDY TURNER

Visit the supplychaindigital.com website and sign up to receive exclusive access to one of the world’s fastest growing business news platforms.

PRESIDENT & CEO

GLEN WHITE PUBLISHED BY

IF YOU LIKE US FOLLOW US!

CONTENTS

12

NANDO’S: BEYOND AUTOMATION – THE TEAM BEHIND THE TECHNOLOGY

34

44 SourceDay:

unlocking the potential of the buyer-supplier ecosystem

DIGITISATION IN THE SUPPLY CHAIN SPACE

54 CUSTOMER DEMAND DRIVING THE AUTOMATED WAREHOUSE

06

72

62

90

WAYS TO ACHIEVE SUPPLY CHAIN SUSTAINABILITY

Largest sustainable supply chains worldwide

Events & Associations

96

106

Allegis

Asahi Europe

120 Staples

130 CONTENTS

Decathlon

162 PepsiCo

148 Corning

176 Sealed Air Corporation

12

NANDO’S: – N IO T A M O T U A BEYOND D IN H E B M A E T E H T Y G O L O N H C E T E TH WR ITT EN BY

SO PH IE CH AP M AN PR OD UC ED BY

CH AR LO TT E CL AR KE

SEPTEMBER 2019

13

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

NANDO’S

AS NANDO’S ADOPTS NEW INNOVATIVE TECHNOLOGIES TO ENSURE ITS SUPPLY CHAIN OPERATIONS ARE NIMBLE IN LINE WITH ITS GROWTH, THE HEAD OF SUPPLY CHAIN ALSO HAS A STRONG FOCUS ON PEOPLE TO ENSURE THE TEAM IS UPSKILLED, ENGAGED AND ARE THE FOCAL POINT BEHIND AUTOMATION

N 14

ando’s was built on the solid foundations of family, integrity, pride, passion and courage. When Deon Pillay, Head of

Supply Chain – Nando’s Grocery International, joined the company in 2014, he was also introduced to the motto “Have fun and make money” – in that order. In 2016, Pillay become Nando’s Head of Supply Chain, and has always endeavoured to ensure this motto is included in everything he does, and is passed on to his team and to business partners.

“My role has evolved over the time I have been at Nando’s – it has been the most exciting evolution I have ever experienced. I started in the role of Logistics Manager, handling export shipments out of South Africa with one person in my team.

Today, in my role, I look after the wider supply chain which is strongly focused on four primary and overarching areas: Global Production,

SEPTEMBER 2019

15

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

NANDO’S

New Product Development, Operations & Integrated Business Planning,

16

“ THE SUPPLY CHAIN AND PROCUREMENT ROLES HAVE BEEN EDGING CLOSER AND CLOSER TO CENTRE STAGE – MOVING CLOSER TO TAKING THEIR RIGHTFUL PL ACE ON THE BUSINESS PODIUM” — Deon Pillay, Head of Supply Chain, Nando’s

and Product Integrity.” Despite being only nine members strong, the grocery supply chain team manages a huge portfolio of products and activities that it is incredibly proud of. “I am often guilty of making some ridiculous asks of my team and pushing them well beyond their perceived limits. Fortunately, (I believe) this has helped grow them even more than just playing safe in any comfort zone would,” adds Pillay.

As supply chain and procurement operations gain momentum across a range of industries globally, no longer being viewed as back-office functions, their role at Nando’s is changing too.

“The supply chain and procurement roles have been edging closer and closer to centre stage – moving closer to taking their rightful place on the mainstream business podium.

We are continuing to integrate across all functions to bring business equilibrium to an ever-turbulent commercial world,” he says. Pillay is still concerned that supply chain does not always receive the appropriate recognition it deserves:

SEPTEMBER 2019

CLICK TO WATCH : ‘WHITEBOARD ANIMATION: THE NANDO’S SUPPLY CHAIN STORY’ 17 “We are fortunate that at Nando’s the

“Even as a young, small team

supply chain is seen as a critical cog

we have achieved so much,” Pillay

in the company’s well-oiled machine.

notes. “The team has managed

When I joined, supply chain – or rather

to be so nimble to adapt and react

logistics – was viewed as a peripheral

to changes in our ecosystem, both

and basic function that got containers

macro and micro. We have moved

out the door. It was a functional depart-

entire production capabilities and

ment tasked with handling order adminis-

expertise across continents, we have

tration,” he adds. Since then the business

researched, developed and imple-

has seen steady growth and the supply

mented new packaging substrates

chain operations have transitioned to

and formats at break-neck speeds

a key business discipline consisting

without compromising quality whilst

of order administration and customer

staying current and abreast of

supply, logistics, packaging development,

regulations and the happenings

regulatory, compliance and food integrity.

in the industry.” w w w.suppl yc ha i ndi gi ta l. com

By using digital as a catalyst to handle growth, Nando’s is able to achieve more without being resource-heavy, as well as becoming more time efficient.

TION “ DIGITAL TRANSFORMA RA WILL HERALD A NEW E FOR US – WITH THE E BUSINESS GROWTH W HAVE EXPERIENCED IT WOULD BE COUNTERLY PRODUCTIVE TO MERE THROW BODIES AT THE ” INCREASE IN ACTIVITY — Deon Pillay, Head of Supply Chain, Nando’s

“It allows the team to free up their time spent doing the mundane activities and focus on the value adding actions,” Pillay notes. “This has been particularly refreshing for our supply chain – so much so that we were able to extract superfluous costs out of our value chain and bring immense, sustainable value to our processes and continue to deliver these cost-saving efficiencies to the business.

“I quite often say to my team that technology is not the future, but

With supply chain having significant

technology is now,” enthuses Pillay.

touch points to every part of the business

Nando’s endeavours to be a strong

and fully integrating into all Nando’s

player in the fields of Internet of Things

functions, the department is firmly on

(IoT), Robotic Process Automation

its way through its digital transforma-

(RPA) and Blockchain. Crucial to

tion journey. “Digital transformation

transparency and efficiency, these

will herald a new era for us – with the

technologies have caught the attention

business growth we have experienced

of the firm. But it is also important for

it would be counter-productive to

Nando’s that these initiatives are fit

merely throw bodies at the increase

for purpose for their business. The

in activity. We commenced our technol-

company is looking to introduce RPA

ogy journey a year and a half ago and

to reduce the time associated with

it has already yielded benefits.”

repetitive tasks – Nando’s made w w w.suppl yc ha i ndi gi ta l. com

19

NANDO’S

Leading to Better Kerry is a leader in taste and nutrition for the global food, beverage & pharmaceutical industries, creating sustainable value for our customers, employees, environment and community.

We continuously strive to make it easier and more valuable for customers to do business with us.

Visit our site

Our baking papers give food professionals and home cooks a natural way to prepare food with the honor that cuisine deserves.

Get in touch: food@ahlstrom-munksjo.com

SEPTEMBER 2019

Contact Us

previous attempts to integrate electronic data interchange (EDI) services to tackle these issues, but found RPA more adaptable and impactful with a quicker implementation timeline. “With more focus on creating transparency in the supply chain, I firmly believe every professional in the sector will need to step up to technology or get left behind. Once you see it in action you get inspired as to how supply chain digitalisation is such a real and relatively easy win for any company,” he adds.

“ WITH MORE FOCUS ON CREATING TRANSPARE NCY IN SUPPLY CHAIN, I FIRMLY BELIEVE EVE RY PROFESSIONAL IN THE SECTOR WILL NEED TO STEP UP TO TECHNOLO GY OR GET LEFT BEHIND” — Deon Pillay, Head of Supply Chain, Nando’s

In December 2016, Nando’s transitioned to a new enterprise resource planning (ERP). “Our new ERP added the next layer of value to our business by providing easy access to information and allowing the team to plan and perform better. We are at the stage now where we are engaging with our partners to unlock their next level of value by developing the current workspaces or opening up new ones,” says Pillay. He remarks upon the resilience of his team for dealing with any changes introduced to their operations: “They have an incomparable drive, discipline and enquiring mind w w w.suppl yc ha i ndi gi ta l. com

21

NANDO’S

22

which compliments my management

to streamline operations. “The team

style. The team have embraced all

took on more commercially functional

the changes and take continuous

roles which played an important part

improvement firmly in their stride.

in reprioritisation as well as shifting

“To adapt a Nando’s adage that

the focus to a more strategic mindset

‘it is the people behind the chicken’,

and way of thinking,” explains Pillay.

I firmly believe it is the team behind

Following the change, more focus

the processes, and more recently

was placed on planning, action-oriented

behind the technology. Technology

meetings and partner engagement.

is only as good as the team that are

“The people part is what most compa-

firmly rooted behind it and that support

nies neglect or omit, which leads

it. The supply chain team at Nando’s

to inappropriate processes that do

recently took a decision to reengineer

not support the technology in place.”

it’s supply chain portfolios in order SEPTEMBER 2019

As well as its focus on technology

as a driver to handle growth, Nando’s

the talk on this purpose and has

recognises the importance of sustain-

already delivered on several initiatives

ability. Pillay remarks that the team is

to prove it. “The humbling part

dedicated to ensuring a decrease in

of Nando’s purpose for me is that

carbon emissions and the incorpora-

Nando’s chooses not to publicise

tion of recyclability and recycled

these initiatives, which shows genuine

materials. Currently, Nando’s retail

heart to live the purpose.”

products’ packaging is 99.3%

Pillay has also undertaken his own,

recyclable, with the goal to raise the

personal project. With his passion for

figure to 100% well underway. Nando’s

his job so apparent, he wants to encour-

has also adopted ‘Changing Lives…

age younger generations to join the

Together’ as its company-wide purpose

industry: “I want to make supply chain

statement. The business really walks

a profession of choice for school 23

E XE CU T I VE PRO FI LE

Deon Pillay Deon is the Head of Supply Chain at Nando’s. A very experienced, dynamic leader, he is able to engage and develop highly motivated teams to achieve sustained company growth and profitability. An energetic visionary with a proven history of delivering excellence across the enterprise, Pillay as regarded as a consummate professional by his peers for consistently exceeding expectations in supply chain for more than 20 years, spanning from senior strategic roles in the FMCG, Electronics, Telecommunications, Paper & Pulp, Food & Beverage and Management Consulting. Innovation and ‘disruption’ in problem solving is his driving force, but developing leaders is his true passion. w w w.suppl yc ha i ndi gi ta l. com

NANDO’S

24

35,000+ Grocery stores that globally sell the bottled sauce

1987

Year founded

1,440

Farmers growing chillies for PERi-PERi sauce SEPTEMBER 2019

25

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

NANDO’S

Makers of good taste

Remia, your family-owned partner for high-quality sauces, dressings, margarines, and frying-oils. We deliver our www.remia.com

products to more than 100 countries around the world.

We are proud to be part of the Nando’s family!

Want to learn more about our company? Visit www.nedcargo.com

SEPTEMBER 2019

leavers. Many people merely wash up on the shores of supply chain, but I want to make sure school leavers buy a ticket to board the supply chain luxury cruise. I want them to under-

“ DEON, FOR ME PERSONALLY, HAS ALWAYS BEEN NIST A FANTASTIC SOLUTIO GUY…THERE ARE NO PROBLEMS, ONLY SOLUTIONS…WE CAN !!

ALWAYS MAKE A PL AN ERE AND I, LOVE THAT… TH AS IS ALWAYS A WAY… IT H E TO BE RIGHT, IT HAS TH BE THE NANDO’S WAY… ND BUT BEING POSITIVE A O INSPIRED IS THE WAY T …

MAKE THINGS HAPPEN BEING PART OF THE SOLUTION, NOT THE PROBLEM! LOVE HIM!!”

— Robbie Brozin, Founder of Nandos

stand from the beginning what they are subscribing to, and more importantly be excited to get on board when they learn how magnanimous supply chain can be. The supply chain professional has just as much, if not more, commercial leverage within business than any other C-suite executive. The personal project I have embarked on will see complete integration of the supply chain fraternity, making talent enrichment a priority for business through a collaborative network of professionals. I’m very excited about this.”

As the proliferation of technology adoption in the supply chain sector continues, Nando’s is keen to be a key player. In food supply chains, digitalising is an absolute must to enhance the way activities are processed and executed. Getting partner buy-in is not always easy, but is always a real bonus. “Our partner companies have their own strategy on where to take their automation, but we have been w w w.suppl yc ha i ndi gi ta l. com

27

NANDO’S

fortunate to partner with companies who understand our needs as well, even though they themselves may not be ready for it in their own businesses,” Pillay explains. “In some cases, we have had our partners learn from us and implement our processes into their business; we have supported and assisted them in doing this as part of our partner engagement and development programme.

“Forming relationships and connections between partners through digital 28

platforms is high up on our agenda.

Supply chain technologies are evolving at a rapid rate and the important thing is to think of the big picture, start relatively small but try and scale up as quickly as possible. Integrated platforms allow for real time-data sharing and live updates. If you are not working towards building relationships in digital space, your reaction time to new information will slowly but surely take longer than your competitors who are becoming increasingly focused on this. Again, I cannot emphasis enough that people are more important that the technology you implement.”

SEPTEMBER 2019

29

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

NANDO’S

WE NEVER

Domestic and Cross-Border transport by road and rail

Tel: +27 31 536 8060 Fax: 086 662 5815 E-mail: jvc@ispace.co.za www.jvcfreight.co.za

WE HELP YOU SUCCEED World Net Logistics is your South African partner for comprehensive, international freight forwarding, logistics and distribution services, offering tailormade solutions for your supply chain requirements.

As a member or the Rhenus Group, World Net Logistics is part of an extensive international network which comprises more than 660 offices with over 31 000 logistics experts.

World Net Logistics has been the freight forwarding and logistics partner of Nando’s for the past five years. We are proud to be part of the Nando’s success story.

LEARN MORE SEPTEMBER 2019

CONTACT US

“The future is bright for the business, but we will have to face the usual industry challenges with the added complexity

“ NEVER LET THE FEAR OF STRIKING OUT PREVENT YOU FROM STEPPING UP TO THE PL ATE” — Deon Pillay, Head of Supply Chain, Nando’s

of our involvement in over 30 countries.

Product integrity, which is a Nando’s supply chain responsibility, continues to be firmly under our watchful eye – we want the best product with the best ingredients. We always want the best for our consumers. To achieve this, it is important we have transparency and traceability from farm to fork.” Whilst upgrading its digital offerings to ensure these challenges are met, Nando’s will never sacrifice product integrity in any way. Pillay still maintains the most important part of achieving all of this is an engaged team. We also have part of the supply chain team that is based in South Africa, the spiritual home of Nando’s. Being 10,000km away, or anywhere in the world, is not

Based in South Africa. Left to right: Robert Du Preez, Alpheus Muchini & Jesse Thaver

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

31

NANDO’S

32

SEPTEMBER 2019

a challenge anymore with technology but there is always a vested interest by all of us to make these Nandocas feel inclusive in everything we do. Again signifying the importance of people even if they are not physically in sight.

Giving an engaged team the leverage, trust and respect to act on their own and try things they can justify is key to innovation and controlled disruption. And he encourages his team to take a page from Babe Ruth who said, ‘Never let the fear of striking out, prevent you for stepping up to the plate’. Apt words from the Nando’s grocery supply chain team, which has, and continues to have, successes

Left to right: Catarina Nascimento, Deon Pillay, Laura Bacon, Eliza Hall, Gareth Griffith-Swain & Nick Gundersen

of hitting many out the park!

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

33

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

34

DIGITISATION IN THE SUPPLY CHAIN SPACE Steve Richmond, Director of Logistics UK at Jungheinrich, and Michael Von Forstner, Head of Jungheinrich’s Lithium-ion division, discusses the impact of lithiumion battery technology on their firm’s digital transformation WRITTEN BY

SEAN GALEA-PACE

SEPTEMBER 2019

35

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

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

W

ith a drive to redefine the manufacturing sector, Jungheinrich plans to leverage

the latest trends in order to remain

a leader in the industry.

Through the implementation of lithium-ion batteries, Jungheinrich introduced new forklift trucks such as the EKS 412s and EFG series in 2019. Lithium-ion provides a compelling alternative to diesel or liquefied petroleum gas (LPG) and batteries also enable new charging models that not only provide a chance to reduce downtime,

36

but also enable businesses to introduce more employee welfare policies that are becoming increasingly important in a labour starved market.

Boasting the largest range of lithium-ion powered trucks available on the market, it’s clear Jungheinrich is continuing to set the bar for the opposition to follow. Steve Richmond, Director of Logistics UK at Jungheinrich, affirms the importance of this new technology to his company. “On average, trucks are charged for more than four hours each day. Lithium-ion’s longer life cycle delivers a complete shift from a single charge, removing the need for operatives to take time out to change batteries,” says Richmond. “In addition to the reduced charging time, using an intelligent Battery Management System, lithium-ion technology can be repeatedly topped up without suffering any SEPTEMBER 2019

37

“ We’re a premium supplier and we have to differentiate, but it’s not engineering for the sake of it. It has to benefit the customer because otherwise, we can’t sell it” Michael Von Forstner, Head of Jungheinrich’s Lithium-ion division

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

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

CLICK TO WATCH : ‘WAREHOUSE SOLUTIONS’ 38 degradation, which means operators

better-placed to talk than Michael Von

can embrace opportunity charging –

Forstner, Head of Jungheinrich’s Lithi-

such as during a tea-break or over

um-ion division. He stresses the

lunch – further reducing the need for

importance of differentiating from in-

time-consuming battery changes.

dustry rivals by launching new tech-

Looking ahead, this technology can

nologies. “We’re a premium supplier

provide a platform for significant

and we have to differentiate, but it’s not

cultural changes within a warehouse

engineering for the sake of it. It has to

– changes that can further reduce

benefit the customer because other-

the need for operatives to understand,

wise, we can’t sell it,” explains Von

even consider, the battery, and ease

Forstner. “I recently spoke with a Span-

the introduction of new staff into the

ish salesperson, and they informed me

operation.”

that an increasing number of Spanish

In terms of what the lithium-ion batteries provide, there is no person SEPTEMBER 2019

customers are buying lithium-ion batteries. If you calculate the total cost of

“ The pressure is on to drive productivity, increase efficiency, improve accuracy and reduce costs at every stage of the process” Steve Richmond, Director of Logistics UK at Jungheinrich

ownership and look into the lifetime maintenance-free arguments and so on, you enable the customer to say ‘over the lifespan, I saved money through the new technology so it makes sense to purchase the new technology.’”

On the road ahead, Jungheinrich is seeking to take warehouse efficiency to a whole new level. Richmond affirms his ambition to embrace digitisation in the supply chain. “The pressure is on to drive productivity, increase efficiency, improve accuracy and reduce costs at 39

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

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

every stage of the process,” explains Richmond. “This means that it’s never been more important for organisations to ensure that they are moving beyond siloed operations, and that logistics and supply chain managers are adopting a holistic approach, where man, machine and software work in harmony. The importance of fully integrating solutions into business operations, digitalisation and connectivity are key.

Whether a global player, mid-sized company or small business, organisations of 40

“ It matters to us that we ensure we remain the best-in-class and create a sustainable competitive advantage for our customers. I believe this makes us the envy of the industry” Steve Richmond, Director of Logistics UK at Jungheinrich

all sizes must look to digitalise and connect their processes to become more profitable and more competitive.”

mated warehouses all over the UK and

Operating with a firm customer-

in Europe across a variety of different

centric approach, Jungheinrich is an

industries. “When it comes to automa-

innovative, fast-growing company at

tion, many organisations will have

the forefront of the automation indus-

similar goals and challenges, but each

try. The company is recognised as the

is different in numerous aspects of

only single brand organisation that

their setup and as a result, there is no

provides a complete solution which in-

one-size-fits-all automation solution,”

cludes trucks, racking, warehouse

affirms Richmond. “Expanding Jun-

design, systems integration and cus-

gheinrich’s portfolio of automated and

tomer service. Offering a business-led

networked intralogistics solutions is an

approach to intralogistics, Junghein-

important focus for the business, as re-

rich understands customers’

flected in the acquisition this year of ISI

challenges and deploys automation

Automation. This move is one of many

in order to create value with fully auto-

and is enabling Jungheinrich to strength-

SEPTEMBER 2019

en its end-to-end offering to customers and tailor the exact solution to each individual business. One of our key objectives is to continue to add to our range of core automation products.”

With the future in mind, Richmond has a clear vision of how his company can continue to thrive over the next few years and beyond. “Our culture and energy are so important. Great products are vital but it’s the people that make the difference and determine success.

We talk of “yellow blood” and our passion for being the market leader in all aspects of intralogistics. It matters to us that we ensure we remain the bestin-class and create a sustainable competitive advantage for our customers.

I believe this makes us the envy of the industry,” summarises Richmond. “Our aim is to shift from an integrator into a manufacturing integrator. We hope to expand our own manufacturing product portfolio, which will mean the vast majority of products in the portfolio will be manufactured, delivered, installed and integrated by Jungheinrich.”

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

41

Covering every angle in the digital age The Business Chief platforms offer insight on the trends influencing C and V-level executives, telling the stories that matter

CLICK TO SUBSCRIBE FOR FREE

w w w.bu si nessch ief.com

TECHNOLOGY

SourceDay: 44

unlocking the potential of the buyer-supplier ecosystem Tom Kieley, co-founder and CEO of SourceDay, discusses the ways in which his company provides its customers with visibility, and therefore trust, in their ERPs, allowing them to unlock the power of the modern supply chain ecosystem WRITTEN BY

HARRY MENEAR

SEPTEMBER 2019

45

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

TECHNOLOGY

T

he role of the supply chain and the supply chain professional is changing. As

the global business landscape evolves

in response to megatrends like increased customer centricity, closer buyer-supplier relationships and the staggering technological

advancements of the fourth Industrial Revolution, an ever expanding number of the old silos and attitudes have come crashing down.

Founded in 2013, procurement and logistics platform company SourceDay entered the space at exactly the right time. “It’s down to 46

luck, hard work and timing. I think you can make your own luck to an extent, but the fortuitous timing of when we came to market has contributed significantly to our success,” says Tom Kieley, Co-Founder and CEO of SourceDay. “The digital transformation of the supply chain is real, and it’s creating roles that never existed before: the Digital Transformation Officer, the Chief Supply Chain Officer and the Chief Procurement Officer, that are specific to the discipline.”

Kieley founded SourceDay alongside manufacturing veteran Clint McRee, who became the company’s COO. “When he was in manufacturing, he used an ERP system,” explains Kieley. “That ERP system was continually telling the team their schedule, their SEPTEMBER 2019

— Tom Kieley, co-founder and CEO, SourceDay plan, what they were going to build and when, but the challenge was that their supply chain was completely disconnected from that process.” With an education centered around supply chain management and logistics as

“ We’re still seeing mid-sized companies tiptoeing into new technologies” — Tom Kieley, co-founder and CEO, SourceDay

well as experience working on software for companies like Dell, Kieley and McRee are well aware of the need for harmony on top of structurally firm foundations in order for the complex symphony that is the enterprise supply chain to operate smoothly.

The increased and ongoing integration of enterprise supply chains, both w w w.suppl yc ha i ndi gi ta l. com

47

TECHNOLOGY

48

internally into their respective busi-

use of their supply chain management

nesses and externally, with increas-

and procurement systems, to help-

ingly interconnected ecosystems

ing them build and maintain supplier

of suppliers, buyers and customers is

relationships, the company is working

only serving to highlight the critical role

tirelessly to be the value-creating glue

that the discipline will play in driving

that holds the supply chain ecosystem

profits and increasingly the sustain-

together.

ability of digital enterprises. In 2019,

“With his vision and our shared

every enterprise expecting to survive

knowledge of those everyday pain

past 2025 is digital. It is this intercon-

points, we came together and built

nectedness that Kieley and Source-

SourceDay,” recalls Kieley. “We boot-

Day are aiming to help foster. From

strapped it from the ground up. It’s

empowering companies to make full

been a long, exciting journey watch-

SEPTEMBER 2019

CLICK TO WATCH : ‘SOURCEDAY CUSTOMER – BENEFITS OF USING SOURCEDAY’

ing the platform grow into the original

source Planning (ERP) platforms, but

vision over the past few years.” Now,

the data that powers them. “We’re still

SourceDay provides a digital interface

seeing mid-sized companies tiptoe-

between a manufacturer’s ERP system

ing into new technologies. Part of that

and its suppliers, using proprietary

is probably caused by the fact when

software to automatically update the

they bought their ERP system – which

system in response to delivery dates,

probably cost millions of dollars – they

pricing, and quantity changes.

expected it to solve all their prob-

Currently though, Kieley notes, it

lems. That’s just simply not the case,”

is all too common for adoption to lag

explains Kieley. While all ERPs contain

behind innovation. He believes that

some elements of a mature resource

many of the pain points are created by

planning engine, which informs pro-

a lack of trust in not only Enterprise Re-

curement professionals what to buy w w w.suppl yc ha i ndi gi ta l. com

49

TECHNOLOGY

“ The digital transformation of the supply chain is real, and it’s creating roles that never existed before” — Tom Kieley, co-founder and CEO, SourceDay

companies visibility into their suppliers’ processes through trustworthy data that can then allow their ERP to function correctly. “By doing that, we’re enabling the suppliers to perform at a higher level and be better suppliers to their customers,” says Kieley.

At the heart of SourceDay is an idea that, Kieley admits, the company often undersells. “We are a true multi-tenant platform. We’re basically an ecosystem of all suppliers that service the customers that use SourceDay,” he says. “We enable a buyer to be more strategic.

50 based on stock level, inventory, cus-

The actual role of buying in a manufac-

tomer sales, orders, building materials

turing distribution organisation is really

etc., Kieley maintains that, all too often,

to find and contract and manage lead

a key element is missing. “Your ERP is

times from their supply chain and get

only as trustworthy or as accurate as

the best prices, lead times and quality.

the data you feed into it,” he says.

Those things all too often fall by the

This is where SourceDay comes in.

wayside because buyers are chasing

“We’re enabling the procurement team,

their tails trying to get suppliers to ship

the supply chain organisation and oth-

what they need to ship on time, which

ers, to get real-time data from suppli-

rarely happens.”

ers on their performance, from large

By bringing visibility to the buyer-

scale orders down to a single part,”

supplier relationship, which creates

says Kieley. In elaborate manufactur-

trust in companies’ ERPs and added

ing projects, the absence or delay of a

value, SourceDay is further grow-

single piece of metal can derail million

ing and supporting the ecosystem of

dollar deals. SourceDay works to give

interdependencies that represents

SEPTEMBER 2019

51

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

TECHNOLOGY

the modern supply chain. “Without visibility into your supply chain’s ability to meet its targets, you’re just guessing

$18bn

Total Processed Spend

and hoping,” says Kieley. “Hope is not a strategy that’s very effective in the manufacturing world; you need to have a platform and data quality that is collaborative outside of the organisation with your supply chain.”

While manufacturing is currently SourceDay’s mainstay vertical, the company has plans to continue its impressive growth record, spreading 52

out into other regions. After all, the digitisation of the supply chain isn’t restricted to any one industry or market.

“Last year, we grew our customer count by 56%. What we continue to see is that manufacturing really is our sweet spot. We’re currently focused on North America, but we have customers in Europe and Asia, and I see those as markets where we’re going to go more strategically in the next 18 months,” Kieley says. SourceDay focuses primarily on mid-market companies ($50mn to $1bn in revenue) and serves manufacturers across a multitude of industries, including aerospace, oil and gas, automotive, transportation, packaging, food SEPTEMBER 2019

2015 Year founded

100

Sites Deployed Globally

and e-commerce retailers. “Anyone with a supply chain that is creating pain for their organisation is a perfect fit for SourceDay,” he affirms.

Coming off the back of a $6.5mn funding round, Kieley reveals the plan moving forward will be to grow the company’s leadership team, hire new engineers to work on production design and refine its go-to-market strategy. Looking to the future, he is confident in the role SourceDay has to play in the future of the global supply chain ecosystem. “In 2020, I see us continuing to expand in other markets in North America. Then, towards the end of 2020, we’ll focus on some global markets, as well. Most certainly, the company’s staff size will have doubled by this time next year.

By 2025, we’ll absolutely be in Europe and Asia as a go-to-market strategy,” he concludes. “Part of our core values is that we put our customers first, listen to them and build our roadmap according to their needs. The modern supply chain is inherently global, so we need to be where our customers and

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

53

TECHNOLOGY

54

CUSTOMER DEMAND DRIVING THE AUTOMATED WAREHOUSE Richard Seel, Managing Director, Supply Chain & Logistics (UK & US) of Delaware, discusses the impact consumer expectations have on automation in manufacturing warehouses in the modern world WRITTEN BY

SEPTEMBER 2019

RICHARD SEEL

55

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

TECHNOLOGY

I

n today’s fast paced world, consumer expecta-

tions on receiving products and services is higher than ever as we want it all instantly. Customer

demand is one of the clear leading factors driving

uptake of automation in manufacturing warehouses today, as customers expect next-day delivery or at the very least ever-shorter delivery lead times. In order to achieve this, manufacturers are under pressure to muster resources at short notice to satisfy demand.

Adding to that pressure is the fact that demand 56

often fluctuates over time, due to seasonality, weather conditions or unexpected events that result in spikes in interest in a particular product line. It is difficult for manufacturers to pull people in for short periods, and train and them up quickly, so that they can respond to these demand spikes in a timely manner.

Given all this, it is not surprising that we are seeing an ever-growing range of automated systems being put to use in warehouses today: from cranes and conveyors to automatic guided vehicles (AGVs); automatic sorters; palletisers and RFID tags.

Automated equipment such as cranes, conveyors and sorters can be used to support better space utilisation, decrease error rates, and deliver faster and more accurate picking – and by enabling task SEPTEMBER 2019

‘ I N TODAY’S FAST PACED WORLD, CONSUMER EXPECTATIONS ON RECEIVING PRODUCTS AND SERVICES IS HIGHER THAN EVER AS WE WANT IT ALL INSTANTLY’

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

57

TECHNOLOGY

‘ A UTOMATING WAREHOUSE PROCESSES SPEEDS UP THE PICKING, SCANNING AND MOVING OF GOODS’

interleaving and slotting can further optimise time consuming picking processes. AGVs can be used to follow operators around the warehouse handling goods, thereby decreasing the walking distance required and the time spent by the operator on each specific task. Finally, RFID tags help track the flow of stock through the warehouse and minimise the need for human intervention when automatically checking stock during the receipt and issue of unopened handling units such as boxes.

58

SEPTEMBER 2019

CLICK TO WATCH : ‘THE WAREHOUSE OF THE FUTURE – WITRON’S OPM TECHNOLOGY AT MEIJER IN WISCONSIN’ 59

Manufacturers will be able to tap into many benefits as a result of this growing use of automated systems

ers significant cost savings and drives sustainable growth.

Finally, warehouse automation also

as technology increases accuracy by

helps manufacturers leapfrog their

avoiding the errors inevitably made

competitors. A smart automated

by human operators, in addition to

warehouse boosts efficiency, produc-

boosting productivity by aiding work-

tivity and helps accelerate the entire

ers. Automating warehouse processes

supply chain and giving manufacturers

speeds up the picking, scanning and

an edge over their rivals.

moving of goods. It helps ensure satis-

Many of the largest manufacturers

fied customers through the fast and

across the world are now automating

efficient delivery of undamaged goods.

their warehouse processes. However,

Improved productivity, fewer errors

for the foreseeable future, there will

and improved customer service deliv-

continue to be a place for people and w w w.suppl yc ha i ndi gi ta l. com

TECHNOLOGY

manual work, even in highly automated environments.

Today, the focus for most automation

sations rely on zero-hour contracts and employment agencies specialising

is centered around picking larger bulk

in short-term temporary staff to supply

items such as pallets and boxes. Piece

resources into the warehouse at times

picking single items, such consumer

of peak demand and to meet seasonal

sales or within the spare parts industry

changes. As automation gets more

for example, is difficult for automated

sophisticated and enabled throughout

systems and still typically requires

warehouses, this requirement will

a great deal of human intervention.

decline. However, in parallel with this,

Manual pickers and packers will still be needed to carry out this kind of intricate task for some time.

Coupled with this, we see a growing 60

Today, many manufacturing organi-

need for resources that understand these more complex systems and are able to operate them, as opposed to warehouse operatives who are simply following a defined unoptimised series of warehouse instructions.

SEPTEMBER 2019

‘ M ANY OF THE LARGEST MANUFACTURERS ACROSS THE WORLD ARE NOW AUTOMATING THEIR WAREHOUSE PROCESSES’

the requirement for more skilled workers is likely to increase. There will be a growing need for employees who can understand these sophisticated automated warehouse systems and be able to apply creative thinking to make the systems even more efficient to drive productivity and improve customer services.

To summarise, manufacturers want their warehouses to work in an optimised, efficient and accurate way to meet and exceed customer demand.

As a result, manufacturers are increasingly looking to automation to help them achieve this due to unskilled resources alone not being able to provide this. That said, there will still be need for people to work in the warehouse but increasingly they will not need to be the traditional pickers and packers on short-term contracts, but instead experts in automated solutions who can help ‘supervise’ and optimise the technology, ensuring effective operations to improve the overall contribution to the business.

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

61

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

06 62

WAYS TO ACHIEVE SUPPLY CHAIN SUSTAINABILITY Mike Hachtman, CEO of Relogistics, lists his six best ways to accomplish supply chain sustainability WRITTEN BY

MIK E HACHT M AN

SEPTEMBER 2019

63

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

T

he sustainable supply chain has become a vital – and ever more visible – element of social corporate responsibility. Fueled

by consumer demands, increasing regulations

and a mounting business case, steering supply chains in a more sustainable direction has grown from laudable ambition to requisite for long-term preservation.

A sustainable supply chain is about far more than the environment, though that’s where consumers might focus their attention. Sustainability is a confluence of social, ecological and economic environments.A sustainable supply chain must avoidcompromising both the environment 64

and the business itself.

It’s also important to recognise that a “responsible” supply chain isn’t necessarily the same thing as a “sustainable” supply chain. A responsible supply chain typically ensures it operates within all legal and ethical parameters. This doesn’t affirm sustainability, however. A sustainable supply chain takes into account environmental and societal reference points. The sustainable chain requires that all partners consider how their processes and actions can be supported by nature and society over the long term.

There’s no quick and easy path to sustainability, but the right supply chain solutions can help your business strive toward,and eventually achieve, a bottom line defined by not just profit but also by people and the planet.

SEPTEMBER 2019

65

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

“MANY COMPETING COMPANIES SHARE PORTIONS OF SUPPLY CHAINS,AND COLLABORATING ON EFFORTSTO DEVELOP AND ESTABLISH SUSTAINABLE PRACTICES CAN BENEFIT ALL” — Mike Hachtman, CEO of Relogistics 66

CREATE A DETAILED MAP

help you understand environmental,

Little, if nothing, can be accomplished

economic and social challenges

within your supply chain if you don’t

faced by suppliers. These can be

have useful visibility of it. Shockingly

extremely variable based on your

few companies actually have detailed

industry, but a thorough map of the

views of their entire supply chains,

chain accounts for how human and

which are more complex and global

natural resources are used along

than ever. Mapping your entire supply

each step of operational and

chain is the starting point. A quality

production process.

map of your supply chain will allow you to identify impacts, risks and

EDUCATE AND CHANGE THE CULTURE

drivers of waste.

Some measures to sustainability

This “aerial” view of the chain can SEPTEMBER 2019

require not only procedural changes,

67

but behavioral and cultural changes.

ENCOURAGE AND ASSIST UPSTREAM

An important step to achieving

Sustainability can’t be accomplished

sustainability is earning buy-in from

unilaterally. You’ll need support

your own staff and that of suppliers.

and co-operation all the way back

Education and training resources can

upstream. Though you may not have

help align everyone with the mission.

the kind of persuasive power over

Showcase success stories and

your chain like a Walmart or Amazon,

leverage successful case studies

you do have the ability to influence

to build momentum within your

supplier practices. Performing audits

organisation and throughout the chain.

and/or enacting codes of conduct

Develop training programs that instill

can encourage suppliers to promote

the mission from the time new

your sustainability efforts.

employees are onboarded.

Furthermore, be willing to assist 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

CLICK TO WATCH : ‘RELOGISTICS: FASTER,BETTER, SMARTER’ 68 them when possible. Helping them

to analyze, tweak, measure and

with best practices design and imple-

optimise operational processes like

mentation advances your sustainability

inventory management, order and

efforts while furthering the overall

distribution management and

goals. It might be necessary to apply

transportation management. Insights

pressure in some instances, but don’t

gained through data and machine

be afraid to do so if the ultimate

learning can be leveraged to find

objectives are important to you.

and exploit opportunities for sustainable processes.

LEVERAGE TECHNOLOGY Technology has taken supply chain

COLLABORATE

management from art to science.

Individual efforts don’t solve complex

Continued advances in technology

supply chain issues, at a personal

are providing organisations with

level or even a company level. Many

once-unconceivable abilities

competing companies share portions

SEPTEMBER 2019

you can’t measure, so develop

“ULTIMATELY, A SUSTAINABLE APPROACH TO SUPPLY CHAINS WILL BE THE ONLY VIABLE CHOICE FOR ANY COMPANY’S LONGTERM SUCCESS” — Mike Hachtman, CEO of Relogistics

sustainability objectives and track their successes. Then, build on these successes and use them as springboards to further your efforts.

The road to sustainability can’t be accomplished overnight, and it won’t be done with shortsighted or apathetic efforts. It might also require initial investment to facilitate the necessary procedural and cultural changes. By starting your efforts now and building on each small success, innovation will breed throughout the process and strengthen the business case to work in conjunction with the social case.

of supply chains, and collaborating

Consumer demands and changing

on efforts to develop and establish

regulations have pushed environmental

sustainable practices can benefit all.

concerns into the discussion for busi-

While it may feel counterintuitive to

nesses across the globe. Ultimately, a

work with rivals, combining efforts

sustainable approach to supply chains

on sustainability practices not only

will be the only viable choice for any

advances the objectives, but offers

company’s long-term success.

an opportunity for positive public perception and to build credibility with industry and consumers.

BUILD ON SUCCESS You track financial objectives, such as revenue and profit, of course.

It’s said you can’t improve what w w w.suppl yc ha i ndi gi ta l. com

69

EUROSTARS HOTEL BERLIN September 10th - 11th, 2019 Berlin, Germany

72

SEPTEMBER 2019

Largest sustainable supply chains worldwide Supply Chain Digital counts down the top 10 largest supply chains based on the company’s individual supply chain initiatives, according to CDP Global Supply Chain report WRITTEN BY

SEAN GALEA-PACE

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

73

T O P 10

74

10

TSMC [ TAIWAN ]

Founded in 1987, TSMC has become a leading manufacturer of discrete semiconductor components and is the world’s first dedicated semiconductor foundry. With the aim of becoming a practitioner in green power, TSMC carried out 667 projects in energy and water conservation to achieve a long-term target of 20% renewable energy for the entire company. In 2018, TSMC purchased 880GWh of renewable energy which was the largest amount bought in the Taiwan semiconductor industry. As part of its continued sustainability drive, all overseas sites now use 100% renewable energy as of the end of 2018.

$33bn Approximate revenue

SEPTEMBER 2019

48,000

Approximate number of employees

HQ

Hsinchu, Taiwan

J.K. Lin Senior Vice President —

09

Sodexo

75

[ FRANCE ]

Sodexo, the international food services and facilities management company, serves more than 100mn consumers every day and provides more than 100 different services to 72 countries.

The company’s solutions include food and catering, property and

Francois Blanckaert CPO —

technical services, benefits and rewards as well as home care services. Having established a “Better Tomorrow 2025” roadmap, Sodexo has made a commitment to reducing all carbon emissions produced in the UK and Ireland by 2025. This promise is in collaboration with a continued review of how to improve its approach to energy and observing the impact of its use.

$24bn Approximate revenue

460,000

Approximate number of employees

HQ

Issy-lesMoulineaux, France w w w.suppl yc ha i ndi gi ta l. com

THE DIGITAL PROCUREMENT EVENT OF THE YEAR.

300

20

Startups

40

Attendees

Speakers

2

1

Days

Hackathon

08

Microsoft

77

[ USA ]

The technology giant develops, manufactures, licenses, supports and sells computer software, consumer electronics, personal computers, and related services. Microsoft aspires

Mike Simms CPO —

to create a sustainable future by empowering every person and organisation in the world to thrive in a resource-constrained world. Microsoft is focused on four critical areas, with artificial intelligence projects underway in the areas of climate, agriculture, biodiversity and water. The company aims to reduce carbon emissions by 75% through continued carbon neutrality and energy investments and commitments.

$110bn Approximate revenue

144,000

Approximate number of employees

HQ

Washington, USA w w w.suppl yc ha i ndi gi ta l. com

T O P 10

78

07

NRG Energy [ USA ]

Considered the US’s leading integrated competitive power generator, NRG Energy has a broad sustainability strategy that features five key pillars, sustainable: business, operations, customers, suppliers and workplace. NRG Energy embeds

Chris Haas, VP Supply Chain, RG Energy —

sustainability into the culture and fabric of the business to ensure that it becomes a core function of how the firm operates. Serving around 3.1mn customers, the company is 73% of the way to its 2030 greenhouse gas reduction target and has reduced 7% of its revenue carbon intensity since 2014.

$10bn Approximate revenue

SEPTEMBER 2019

4,900

Approximate number of employees

HQ

Houston, Texas, USA

06

Sky

79

[ UK ]

As one of Europe’s leading entertainment and communications companies, Sky serves more than 22mn customers across five countries. Through its Responsible Business Sky strategy, the company considers the environment in every initiative it

Giles Harvey Group Supply Chain Director —

undertakes. Focusing its attention on energy, travel, waste and water, it has worked in the UK & Ireland to achieve nine key goals for 2020. Having already accomplished a 55% reduction in its carbon intensity, Sky has met its target for fuel efficiency across its fleet and now seeks to achieve zero carbon across its value chain by 2050.

£13.6bn Approximate revenue

31,000

Approximate number of employees

HQ

Osterley, London, UK w w w.suppl yc ha i ndi gi ta l. com

Pullman Melbourne on the Park | 17 - 18 September 2019

Developed by UNLEASHING HUMAN EXCELLENCE TO DELIVER VALUE ACROSS THE SUPPLY CHAIN

Hear global case studies and innovations from supply chain leaders

Harness the power of tech in your supply chain

Network with supply chain leaders from diverse backgrounds

Compete for ASCI’s Leadership Challenge Cup

Celebrate supply chain excellence at the ASCI Awards

60+ speakers | 20+ hours of content | 3 days | 3 streams

Mike Chaffins Sr. Director of Supply Chain & Purchasing Nikola Motor Company

Jaun Paul Rebola Sanjay Mukherjee Chief Procurement & Supply Senior Director Logistics Officer Supply Chain Management St John of God Health Care Whirlpool

Tony Broughton Honourable Vice President Melissa Horne Operations Minister for Ports and Freight & Thales Minister for Public Transport Victorian State Government

Adel Salman Head of Supply Chain Bega Cheese

Thomas Debandt Advisor - Supply Chain UN World Food Programme

Honourable Sandra Indramohan Martin Pakula Supply Chain Director Minister for Jobs, Oceania Innovation and Trade Xylem Victoria State Government

Guarantee your spot today at asci2019.com Platinum Sponsor

Silver Sponsors

Exhibitors

Media Partner

61 2 9247 6000

registration@akolade.co

61 2 9247 6333

asci2019.com

Interactive Roundtable Leaders

Supported by

Proudly brought to you by

In partnership with

05

Tokyo Gas

81

[ JAPAN ]

Established over 130 years ago, Tokyo Gas is recognised as the largest gas utility company in Japan and serves over 11mn gas customers. The firm is used to setting an example for rivals to follow as it became the first organisation in Japan to introduce and propagate the use of liquefied natural gas (LNG), integrate large-scale combined heat and power (CHP) and advertise the development and use of residential fuel cells.

$2bn

Approximate revenue

17,000

Approximate number of employees

HQ Tokyo, Japan

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

T O P 10

82

04

Rolls-Royce [ UK ]

Rolls-Royce designs, manufactures and distributes power systems for aviation and other industries. The company operates with the mantra “pioneering the power that matters” and is

Pernille Boisen CPO, Rolls-Royce —

committed to a strong sustainability approach. By minimising the impact of its products, it seeks to unlock new business opportunities and deliver more efficient products and services to accelerate the transition to a low carbon global economy. RollsRoyce invests £1.3bn (US$1.5bn) in research and development annually, a high proportion of that fund is dedicated to environmental improvement and the reduction of its engine impact.

$16bn Approximate revenue

SEPTEMBER 2019

50,000

Approximate number of employees

HQ Derby, UK

03

Coca-Cola

83

[ USA ]

The beverage giant provides more than 500 brands in over

Mark Westfall CPO, Coca Cola —

200 countries. With clear 2020 sustainability goals in mind, the company in collaboration with its 250 bottling partners has devised targets to drive change beyond small operational upgrades. Coca-Cola targets key areas in: agriculture, climate protection, giving back, human & workplace rights, packaging & recycling, water stewardship and women’s economic empowerment. Since beginning this strategy in 2010, the company has achieved a 19% reduction on its carbon footprint, with the aim of achieving a 25% reduction in 2020.

$31.85bn Approximate revenue

62,000

Approximate number of employees

HQ

Atlanta, Georgia, USA w w w.suppl yc ha i ndi gi ta l. com

T O P 10

02

Apple [ USA ]

Global electronics company, Apple, is considered one of the big four technology organisations alongside Facebook, Amazon and Google. With its products manufactured all over the world, Apple recognises that sustainability is just as important as innovation.

84

With new products such as the MacBook Air and Mac mini made from 100% recycled aluminum, sustainability is firmly at the forefront of Apple’s decision-making. With a core ambition to create products without taking from the Earth, Apple focuses on three key areas: climate change, resources and smarter chemistry. It has overseen a 70% decrease in average product energy use in 10 years, 35% reduction in its overall carbon footprint compared to 2015, as well as ensuring that 100% of all its global facilities are generated by 100% renewable energy.

SEPTEMBER 2019

Paul Curtin Director Procurement —

$265bn Approximate revenue

123,000

Approximate number of employees

HQ

Cupertino, California

CLICK TO WATCH : ‘APPLE – OPENING FILM’ 85

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

T O P 10

01

Accenture [ IRELAND ]

Topping the list is the leading global professional services firm, Accenture, specialising in consulting, strategy, technology, digital and operations. A Fortune 500 company, Accenture has a multi-billion-dollar supply chain and leverages its purchasing power to drive positive 86

change on a global scale. Accenture has a deep understanding of sustainability and innovation across the value chain which identifies how sustainability topics impact the bottom line and society overall. With the importance of accelerating business value to deliver sustainable growth and profitability in a digitally disrupted world, Accenture provides support to businesses to achieve their sustainability goals and create sustainable value.

READ THE EXCLUSIVE DIGITAL REPORT WITH SUPLY CHAIN DIGITAL

SEPTEMBER 2019

Kai Nowosel CPO, Accenture —

$41.6bn Approximate revenue

482,000

Approximate number of employees

HQ Dublin, Ireland

Kai Nowosel, Chief Procurement Officer: “With a multi-billion-dollar supply chain, Accenture has the purchasing power to drive positive change on a global scale, creating a more economically inclusive world and helping to shape the future of procurement. Our ambition is to shift the culture of buying both inside and outside Accenture, while generating long-term value for our clients, suppliers and communities. By improving the efficiency of our operations, harnessing the innovative spirit of our people and developing new sustainability solutions, we aim

to accelerate the global shift to a lowcarbon economy and to lessen the effects of climate change. Accenture is using the power of new technologies such as AI, blockchain and extended reality to address a variety of complex societal challenges in areas including health, human rights, inclusion and environmental sustainability. We believe through these technologies we can create solutions that make a positive, lasting impact for people and communities in ways that were not previously possible. We are going beyond responsible buying.”

CLICK TO WATCH : ‘KAI NOWOSEL, CPO OF ACCENTURE, TALKS EXCLUSIVELY WITH SUPPLY CHAIN DIGITAL’

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

87

JOIN US!

& R

FU OF

PANEL DISCUSSIONS START UP PITCH COMPETITION

KEYNOTE SPEECHES NETWORKING COCKTAIL RECEPTIO

futureoflogistics.miami • #FOLTECH2

R EDEFIN E THE

UTURE F LOGISTICS OCTOBER 22, 2019

9:00 AM-6:00 PM

@MIRACLE THEATRE

ON

PRODUCED BY

2019

LAB VENTURES

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

15–18 SEPT 2019

90

3–5 SEPT 2019

Transport Compleet [ GORINCHEM, NETHERLANDS ]

InterModal Expo [ LONG BEACH, CALIFORNIA ] Tackling the key issues which face the intermodal supply chain, the Expo is

Now in its 15th year, the Transport

the intermodal’s platform for products,

Complete Gorinchem is a networking

services and solutions and provides

event which brings the entire road

a classroom for new skills and knowl-

transport industry together. Welcom-

edge to be shared. With more than

ing 12,000 visitors annually, the event

125 exhibitors showcasing the latest

will enable both international and

products and services that is driving

regional providers to showcase

the supply chain industry forward,

their latest products and solutions

there is also set to be over 60 industry

to a professional audience.

experts in attendance.

SEPTEMBER 2019

24–26 SEPT 2019

15–18 SEPT 2019

CSCMP Edge 2019

Supply Chain & Logistics Summit and Expo 2019

[ ANAHEIM, CALIFORNIA ]

[ HILTON ANTWERP, BELGIUM ]

The Council of Supply Chain Manage-

The EMEA Supply Chain & Logistics

ment Professionals is gathering at

Summit & Expo is one of the most

CSCMP Edge over three and a half

established events of its kind in

days to share insight from a range of

Europe. Now in its 21st year, it is

supply chain executives. Providing

a highlight in the calendar where

valuable insight into new, cutting-edge

world-class organisations meet to

solutions and the latest updates in

maximise efficiency and minimise

the supply chain space, this event is

costs through supply chain

certainly one for the calendar.

strategies of the future.

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

91

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

1–3 OCT 2019

Post-Expo 2019 92

[ AMSTERDAM, NETHERLANDS ] The three-day event at the beginning of

14–16 OCT 2019

3PL & Supply Chain Summit: Europe [ BRUSSELS, BELGIUM ]

October will show off products such as

With 400 attendees and 70 leading

security solutions and safety products,

speakers in attendance, the Belgium

consultancy and management strate-

event is set to be full of interactive

gies, post-office counter solutions,

sessions such as coaching sessions,

automation, e-commerce technology

live interviews and 1-2-1 meetings.

and digital marketing in the Automotive,

Supply chain executives from a range

Logistics and Transportation industries.

of manufacturers, retailers and

The event will play host to global visi-

Consumer Packaged Goods are

tors and will be used as a platform to

expected to attend. The event will be

present new innovations and products

centered around four core themes

to a professional audience of business

which are: Agility, Visibility, Respon-

leaders and directors from the postal,

sive and Growth.

parcel and logistics industry.

SEPTEMBER 2019

16–17 OCT 2019

The Responsible Supply Chain Summit 2019 [ AMSTERDAM, NETHERLANDS ] Following its largest and most successful conference to-date, The esponsible Supply Chain Summit is set to return in 2019, bringing together more than 250 CEOs and sustainability and supply

23–25 OCT 2019

36th International Supply Chain Conference [ BERLIN, GERMANY ]

chain practitioners to discuss and

In one of Europe’s top annual business

shape the future of responsible supply

gatherings to discuss logistics and

chains. Previous speakers include Ste-

supply chain management, the three-

ven Stone, Chief Resources & Market

day event brings industry leaders

Branch at the United Nations Environ-

together to tackle the current issues

ment, David De Schutter, Innovation

and future themes in the supply chain

& Technology Officer for AB InBev and

management sector. On average, the

Joe Franses, Vice-President, Sustain-

event attracts over 3,500 attendees

ability at Coca-Cola. With speakers yet

from over 40 countries, 120 speakers

to be announced for 2019, it looks set

and welcomes more than 200

to be another unmissable event on the

exhibitors every year.

global calendar.

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

93

SA’S LARGEST LINK FOR BUYERS A SPONSORED BY

8TH ANNUAL

18 SEPTEMBER 2019 Gallagher Convention Centre, Midrand

SOURCE

LINK &

From Over 300 local, verified suppliers

Network with sen professionals from pu

CONNEC ®

REGISTER ONLINE FOR YOUR FR @ESDexpo

Smart Procurement Worl

KAGE PROGRAMME AND SELLERS

& MEET

LEARN

nior procurement blic & private sectors

Attend free procurement training workshop

CT WITH

SCAN TO PRE-REGISTER ONLINE NOW!

REE EXPO VISITOR ENTRY

ld

visit www.smartprocurementworld.com/indaba

96

ALLEGIS GLOBAL SOLUTIONS CONTINUES TO BUILD STRONG RELATIONSHIPS THROUGHOUT ITS SUPPLY CHAIN

WRITTEN BY

SOPHIE CHAPMAN PRODUCED BY

CHARLOTTE CLARKE

SEPTEMBER 2019

97

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

ALLEGIS

Allegis Global Solutions’ Supply Chain Manager for EMEA, Amy Fitzwarine-Smith, discusses how the company is maintaining trust with suppliers and staff

A

llegis Global Solutions (AGS) is a global leader in the talent solutions industry, providing client-focused strategies

for securing top talent. “We employ a variety of recruitment methods, including managed service provider (MSP) solutions, recruitment process outsourcing (RPO) solutions and procurement 98

solutions. My role is centred around the MSP area of the business within supply chain”, says Amy Fitzwarine-Smith, Supply Chain Manager of the EMEA region at AGS. “The supply chain team are responsible for ensuring we have the right programme delivery suppliers supporting each of our accounts and that they’re getting the same experience from AGS as a partner”.

The company regards open communication, relationships, serving others and commitment to excellence as its core values, interlacing these standards into all of its operations. “One of the most important values for me is building relationships with all parties with whom we work.

The respectful and trusting partnerships we have with our suppliers are the key to our business success,” remarks Fitzwarine-Smith. Having SEPTEMBER 2019

99

“ AGS has a huge focus on technology.

We understand that investment in technology is what is setting companies apart in the industry” — Amy Fitzwarine-Smith, Supply Chain Manager, EMEA, Allegis Global Solutions

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

ALLEGIS

“ One of the most important values for me is building relationships, with all parties with whom we work” 100

— Amy Fitzwarine-Smith, Supply Chain Manager, EMEA, Allegis Global Solutions

previously worked on the operations side of MSP, Fitzwarine-Smith highlights how crucial these relationships are to all aspects of delivery to AGS’ clients.

“My experience working with a specific client account made me realise just how important suppliers and the supply chain function are to a company.

I became really passionate about getting it right, putting more processes in place to ensure consistency and good communication and getting the team in a better position for us to deliver a great service, not only to the clients but to our supply chain as well.”

Reaffirming strong relationships as fundamental to the company’s legacy, Fitzwarine-Smith reveals that coopera-

SEPTEMBER 2019

CLICK TO WATCH : ‘WORKING AT ALLEGIS GLOBAL SOLUTIONS’ 101 tion is a required trait from suppliers.

Over the past several years, AGS

“We ask all of our agencies to work

has invested in a proprietary business

together with us regarding all aspects

intelligence platform to capture data

of the end-to-end process so that both

from its vendor management tools.

parties are still getting their desired

AGS has branded the platform as

outcome whilst giving the client the

ACUMEN Workforce Intelligence,

most efficient and effective experience

which displays and monitors key

working with us”. AGS wants to establish

performance indicators across the

a mutually beneficial dynamic with

entire AGS ecosystem of suppliers,

suppliers – it wants agencies to feel

clients and the firm’s internal teams.

comfortable asking for information

This system collects and combines

about the business whilst also using

data from a range of vendor manage-

their strong supply chain to learn

ment tools, enabling the firm to

more about the market and potential

heighten its visibility of suppliers.

upcoming challenges or opportunities.

“We have the data from the MSP w wew.suppl uro pe .busi yc hane i ndi sscgihief. ta l. com

Enabling

your future workforce

CXC helps clients to optimise their non-permanent workforce programs. True to our name, CXC are represented in 30+ global locations across Australasia, Asia, Europe, North America and Latin America delivering borderless talent solutions to our clients around the world.

Contact Us

Learn More

The future of work. Today.

Volt is one of the longest established global recruitment groups with a proven history of supplying specialist contract, permanent and SoW candidates into Global Managed Service Programmes. Volt are proud to have been awarded ‘Best New Strategic Supplier’

by Allegis Global Solutions.

Alongside IT, Engineering, Life Sciences and Finance, Volt has a fast growing Procurement and Supply Chain team, placing professionals across a range of sub-disciplines.

69

years history

1219

global employees

20,000

workers on assignment

80+

global offices

Contact us to find out why some of the world’s largest MSPs rely on Volt for their resourcing needs.

Click here to learn more SEPTEMBER 2019

Contact us

accounts we hold globally and are able

benefits. “As strategic suppliers, they

to filter that down to specific categories,

have access to the Strategic Supplier

such as location, industry and skill set.

Portal and recently released Supplier

AGS has a huge focus on technology.

Scorecards. This access gives them

We understand that investment in

visibility to all the accounts that they

technology is what is setting compa-

support. The strategic suppliers have

nies apart in the industry. It’s enabling

access to key statistics, which allow

us to remove administrative tasks and

them to benchmark their performance

make our operations more efficient,”

in comparison to their competitors

says Fitzwarine-Smith.

within a particular program,” she adds.

The company runs a strategic supplier

“We’re being completely transparent

programme which recognises the top

with them and using this to motivate

1% of its global suppliers, offering full

improved performances whilst

access to ACUMEN as one of the

maintaining the quality of candidates.

E XE CU T I VE PRO FI LE

Amy Fitzwarine-Smith Amy took the role of Supply Chain Manager for EMEA in April 2019, following seven years of experience working in MSP operations, two of which were at AGS. During that time, Fitzwarine-Smith managed recruitment in challenging locations, including Azerbaijan and Iraq.

Working with agencies in these countries sparked her passion for building strong relationships and ensuring that AGS gives them the same experience given to our UK partners. Fitzwarine-Smith also leads the MySelf EMEA employee resource group, which provides colleagues with guidance and support in looking after their mental health in and out of the workplace.

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

103

ALLEGIS

£12.3bn+ Approximate revenue

2001

Year founded

3,100

Approximate number of employees

This effort has been very well received

with the best suppliers for our clients,

by our partners.”

and I think by putting visibility on our

Another benefit to being part of

strategic suppliers it helps us to

the Strategic Supplier Program is

achieve that goal,” notes Fitzwarine-

an invitation to AGS’ annual regional

Smith.

summit, which brings together profes-

Although AGS is dedicated to its

sionals from the business to discuss

relationships with outside partners,

the market and opportunities that are

the organisation ultimately considers

important to the attendees. “Some

its people to be its biggest asset.

of the feedback we’ve had from our

In order to ensure its staff are highly

strategic partners is that this is some-

engaged with the company, AGS has

thing quite unique to AGS and proves

launched employee resource groups

to them how much we value their

(ERGs), which allow people to suggest

partnership. We want to be working

ideas that they feel will provide extra

SEPTEMBER 2019

“We know that if we don’t invest in and show our people that we are growing with the industry and that we really care about them, then our company wouldn’t be anywhere near as successful as it is” — Amy Fitzwarine-Smith, Supply Chain Manager, EMEA, Allegis Global Solutions support to them and their peers.

success – both with suppliers and its

“I think our ERGs prove how we feel

own staff. “We know that if we don’t

about our employees – they demon-

invest in and show our people that

strate how much time and willingness

we are growing with the industry and

we put in to make sure they feel they

that we really care about them, then

are part of the group and the society

our company wouldn’t be anywhere

beyond their usual work team,”

near as successful as it is,” says

Fitzwarine-Smith says. The firm also

Fitzwarine-Smith. “We ensure that

offers its employees access to an

we take the time to really look after

online learning platform called

our team members and our industry

Degreed. This system provides online

colleagues.” As it continues to strength-

articles supplied by the learning and

en its reputation and relationships

development team. “It’s a self-learning

within the industry, the firm is also

tool that can help staff develop their

seizing opportunities in terms of

soft skills and grow their knowledge

technology, innovation and transforma-

around all parts of the business,”

tion – enabling it to grow its supply

she explains.

chain and team.

For AGS, building and maintaining strong relationships is vital to its w w w.suppl yc ha i ndi gi ta l. com

105

106

WRITTEN BY

WILLIAM SMITH

PRODUCED BY

JUSTIN BRAND

SEPTEMBER 2019

107

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

A S A H I E U R O P E LT D

IAN BRENTON, HEAD OF PROCUREMENT AT ASAHI EUROPE, DETAILS PROCUREMENT’S ROLE IN REINFORCING THE PREMIUMISATION OF ASAHI’S BRANDS

108

J

apanese beverage company Asahi is internationally known for products such as its eponymous Super Dry lager. More

recently, it has acquired several European brands such as Peroni and Grolsch under its Asahi Europe subsidiary. Asahi Europe was indirectly formed following the acquisition of SABMiller by AB InBev, with one of the conditions being to divest part of its European business. Ian Brenton is Head of Procurement at Asahi Europe, having formerly been at SABMiller. “I was responsible for a number of the packaging categories globally. When Asahi acquired the Western European Business Unit from SABMiller they needed a procurement team. They kindly offered me the opportunity to move from running a packaging specific agenda to managing the entire procurement agenda. As such, we’re a team of 23 people, working from the UK, Italy, Holland and Switzerland.”

SEPTEMBER 2019

109

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

A S A H I E U R O P E LT D

110

Brenton’s procurement department has been key to supporting the growth aims of Asahi Europe’s purchases. “Asahi bought the businesses because it wanted a footprint with global premium brands” says Brenton. “The procurement function’s primary aim is to support the growth of the business through competitive, predictable costs, improved working capital, assured supply and suppliersourced innovation, all generated in an environmentally and socially sustainable manner.” As part of that SEPTEMBER 2019

CLICK TO WATCH : ‘ASAHI EUROPE CORPORATE VIDEO’ 111

journey, the company acquired the

that used to focus solely on Indirect

beverage, brewing and distribution

Procurement and very quickly intro-

business of Fuller, Smith & Turner

duce some experience in procure-

PLC in 2019, which brought its own

ment of brewing and packaging.”

challenges in terms of procurement.

A number of partnerships have

“In the UK we used to be a predomi-

been crucial to maintaining and

nantly import-focused business. We

accelerating that level of growth.

had little manufacturing of scale,

Aside from gleaning market informa-

but almost overnight we acquired

tion from a valuable source of trusted

half a million hectoliters worth of

suppliers, Asahi Europe has also

manufacturing in three different

partnered with procurement intel-

production locations – in London,

ligence firm Beroe. “We retained a

Cornwall and West Sussex. We’ve

strong relationship with Beroe after

had to take a procurement team

working with them previously. From w w w.suppl yc ha i ndi gi ta l. com

a market intelligence standpoint,

our primary aim, significantly increas-

Beroe offers a great deal. Whether

ing our hop yields and developing

we need it for budgeting or sourc-

innovative downstream products

ing activities, they give really good

for use in our premium portfolio .

insight that we’ve found very benefi-

One of the key tasks procurement

cial.” Other partnerships have come

fulfils is in providing packaging, to

into play across the company. “On

contain products as well as empha-

the agricultural side of the business,

sising their premium nature. “Part of

staying close to our farmers and

the challenge is ensuring that we can

cooperatives is really important to

readily respond to business requests

us. These relationships have led to

overcoming the specific challenges

the development of proprietary maize.

unique to each packaging type.

Similarly, by working with agricultural

Primary packaging, in most cases,

development companies we have met

is quite a capital intensive business

SEPTEMBER 2019

“PROCUREMENT ENABLES THE CONTINUED GROWTH OF THE BUSINESS THROUGH COMPETITIVE, PREDICTABLE COSTS, IMPROVED WORKING CAPITAL, ASSURED SUPPLY AND SUPPLIER-SOURCED INNOVATION, ALL GENERATED IN AN ENVIRONMENTALLY & SOCIALLY SUSTAINABLE MANNER” — Ian Brenton, Head of Procurement, Asahi Europe

113

E XE CU T I VE PRO FI LE

Ian Brenton, Asahi Europe Ian joined Asahi Europe on its very first day on Wednesday 11 October 2016 as Head of Procurement, based in Switzerland. He previously worked at SABMiller and before that PepsiCo, in roles spanning manufacturing, change management and procurement.

Outside of work, a keen cyclist & climber, he is well on his way to becoming a Munro ‘compleater’ with 18 peaks left to climb of the total 284. Ian anticipates that by the time he reaches his final summit, it will have taken 20 years of dedication.

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

A S A H I E U R O P E LT D

114

SEPTEMBER 2019

2016

Year founded

â‚Ź2bn

Approximate revenue

2,000+

Approximate number of employees

w wew.suppl uro pe .busi yc hane i ndi sscgihief. ta l. com

115

A S A H I E U R O P E LT D

“WHEN WE WORK WITH SUPPLIERS WE DELIBERATELY LOOK FOR PROGRAMMES WHICH WILL HELP TO REDUCE OUR CO2 FOOTPRINT, IMPROVE RECYCLING RATES, REDUCE WASTAGE, INCREASE RECYCLED CONTENT AND AID OUR TRANSITION TO GREENER ENERGY” 116

— Ian Brenton, Head of Procurement, Asahi Europe – there’s quite a large capital investment before you bring on stream new capacity.” For cans, Asahi Europe partnered with a new entrant in the market. Their mutual relationship helped the upcoming company to establish itself, while Asahi gained a partner aligned with its strategy.

“Supporting growth in glass or aluminium, or stainless steel for kegs, are not quick decisions to implement,” says Brenton. “You have to plan for the long term, and we often see five year plus contracts. If it’s corrugated or cardboard, typically used for conSEPTEMBER 2019

CO MPAN Y FACT S

• Procurement team working out of the UK, Italy, Holland and Switzerland • Acquired the UK beverage, brewing and distribution business of Fuller, Smith & Turner PLC in 2019

sumer facing secondary packaging multi-packs, there are many suppliers and therefore more competition. This means that change can be implemented more quickly and contracts therefore tend to be a lot shorter.”

Field Sales Distribution Units (FSDUs), Point of Sale Materials (POSMs) and glassware are examples of how we interact with consumers in the off trade. To meet the glassware needs of a relaunched Asahi Super Dry and updated Peroni, it was crucial to find suppliers who could act as both glassmakers and decorators to produce a premium product, which the company duly w w w.suppl yc ha i ndi gi ta l. com

117

A S A H I E U R O P E LT D

accomplished. For FSDUs, these are in-store display units and key opportunities to emphasise the premium nature of products. A tender for suppliers resulted in a 50% reduction in lead times as well as a move to higher quality printing, whilst paying significantly less than before. POSMs, meanwhile, were previously delivered by a number of different suppliers.

Following a tender, Asahi Europe has been able to consolidate orders for fewer shipments, streamlining the 118

process and having the knock-on effect of reducing the carbon footprint stemming from reducing its need to ship goods around the planet.

For Asahi, sustainability is always a consideration in the process of procurement. “From a sustainability standpoint, when we work with suppliers we deliberately look for programmes which will help to reduce our CO2 footprint, improve recycling rates, reduce wastage, increase recycled content and aid our transition to greener energy,” says Brenton.

For Brenton, Asahi Europe’s aim for the future is simple: “to become a premium beer powerhouse.”

SEPTEMBER 2019

“ALMOST OVERNIGHT WE ACQUIRED HALF A MILLION HECTOLITERS WORTH OF MANUFACTURING IN THE UK” — Ian Brenton, Head of Procurement, Asahi Europe

119

To achieve this target will require the contribution of every part of the business, but it is clear that procurement has an important role to play. From its packaging efforts supporting premiumisation to integrating its latest UK acquisition, the work of procurement means that Asahi Europe is indeed becoming a premium beer powerhouse.

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

120

FROM OFFICE SUPPLIES GIANT TO LOGISTICS CHALLENGER WRITTEN BY

LAURA MULLAN PRODUCED BY

JUSTIN BRAND

SEPTEMBER 2019

121

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

S TA P L E S

Kevin Lewis, Supply Chain Director at Staples UK, outlines how the office supply behemoth is proving to be a world-class contender in the logistics market

W

hen consumers think of Staples, they might recall the company’s famous office essentials. From its ink and toner to its

office furniture, the firm is renowned as a worldclass, multi-channel retailer. However, after selling off its retail business in the UK, Staples is pivoting towards a new market: the world of third-party logistics (3PL).

122

Kevin Lewis, Supply Chain Director at Staples UK, has helped to steer the firm’s supply chain transformation, consolidating its six warehouses across the UK and Ireland into one cutting-edge facility. “We’ve moved into a state-of-the-art distribution centre in Corby, Northamptonshire.

In retrospect, it was much larger than we needed and it pushed us to look at how we could better utilise this asset. Now, we have some large-scale brands that have closed their own warehouses and made use of ours as a shared-user facility.”

Winning business from traditional 3PL providers, Lewis contends that around 60% of the activity on the site now revolves around 3PL. “Our expertise has been focused on consolidated deliveries, consolidated invoices and the ability to mix our core product with actually almost any other product,” he adds.

SEPTEMBER 2019

123

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

S TA P L E S

“ THERE ARE FEWER ABSENCES, MORE EFFICIENCY AND A LOWER TURNOVER OF PEOPLE BECAUSE WE’RE INVESTING IN OUR TEAM” 124

— Kevin Lewis, Supply Chain Director, Staples UK

The distribution facility is an impressive feat but perhaps the most exciting aspect of the facility is its ingenious use of technology and automation.

“About 70% of our operations are automated so we use Pick to Belt and Pick to Light solutions. On top of this, we also have implemented an order, storage and retrieval (OSR) system

by Kanpp” explains Lewis. “It was a £9mn investment just for the picking tower alone, but by using the full height of the building we can be much more efficient.” It also allows people to pick economically; adjustable platforms mean that people don’t have to reach or bend down to pick up items. Instead, they can pick from a height that’s comfortable for them. On top of this, Staples has also experimented with weighing technology that adds an additional layer of protection. “It’s an extra safety net,” observes Lewis.

“We know the weight and dimensions of every single product so if there is any weight deviation, we would be able to see that and alert the team.”

SEPTEMBER 2019

CLICK TO WATCH : ‘STAPLES SUPPLY CHAIN: A PARTNERSHIP OF EMPLOYEES AND TECHNOLOGY’ 125 With this state-of-the-art facility,

an investment in technology and

Staples is well equipped to tackle any

automation unless they can recoup

logistical challenge. It’s also worth

that investment within the lifetime

noting that in recent years the com-

of the contract,” he explains. “The

pany has closed many of its brick-and-

difference with Staples is that we have

mortar stores and pivoted towards

already made that investment. We want

ecommerce. This means it has first-hand

to make shared use of our assets and

experience of the challenges of

we can also offer competitive contracts.”

efulfilment. Furthermore, having

Indeed, Staples has already won

already made significant capital

over big-name clients like Adidas,

investments in automation, Lewis

and car servicing and repair company

contends that Staples can offer its

Kwik Fit. “If a Kwik Fit branch needs

clients more competitive contracts.

some brake cleaner or if an Adidas

“When you go to a traditional third-party

store wants to order some carrier bags,

provider, they’re not going to make

they can only get it from this warehouse,” w w w.suppl yc ha i ndi gi ta l. com

S TA P L E S

“ WE WANT TO MAKE SHARED USE OF OUR ASSETS AND WE CAN ALSO OFFER COMPETITIVE CONTRACTS” — Kevin Lewis, Supply Chain Director, Staples UK

making complexity simple KNAPP is a leading global supplier of warehouse automation solutions, with over 1700 active systems worldwide.

The group’s advanced conveying, storage and fulfilment technologies are combined in solutions that feature seamless integration and intelligent software. Successful projects in the UK recently include systems for Staples, John Lewis, Boots, M&S, Clarks, British Gas, Debenhams and Well.

energy-efficient

shuttle storage

Visit us on stand

20 D128

KNAPP UK Ltd Unit 60, Monument Business Park Warpsgrove Lane, Chalgrove Oxfordshire OX44 7RW Tel: 01865 965 000 | sales.uk@knapp.com www.knapp.com

127

E XE CU T I VE PRO FI LE

Kevin Lewis An experienced, commercially driven supply chain professional with a successful background in online fulfilment, large-scale parcel operations and multi carrier management. Strategic approach to successful business leadership and delivery, engaging with key business stakeholders and third parties alike, delivering effective supply chain solutions through managing People, Technology, Relationships and Processes.

Extensive experience outsourcing, new site start up and muti-site consolidation both in the UK and internationally.

PRINCE2 qualified, with experience of introducing practices and processes tailored to business requirements that enable and facilitate the wider strategic goals of the organisation. w w w.suppl yc ha i ndi gi ta l. com

“ Staples may have sold its retail business but we’re very much thriving in terms of e-commerce and third-party logistics” — Kevin Lewis, Supply Chain Director, Staples UK

70%

of operations are automated

1986

Year founded

bespoke, tailored solutions exclusively for Staples,” says Lewis. This strong sense of collaboration can also be seen within the company too.

By paying competitive, living wages rather than a minimum wage and investing in its team, Staples has worked hard to build a dynamic logistics business. “In the past,

10,000+

Approximate number of employees

we relied on agency workers and temporary labourers, whereas now it’s predominantly a permanently employed workforce,” says Lewis.

“There are fewer absences, more efficiency and a lower turnover of people

Lewis notes. “Elsewhere, our biggest third-party client is Saint-Gobain,

because we’re investing in our team.”

With this strategy in mind, Staples

which owns businesses such as glass

is ready to continue on its upward

companies and Graham heating and

trajectory, running more and more

plumbing. For this customer alone

supply chains on behalf of customers.

we have over 9,500 bespoke SKUs.”

“Staples may have sold its retail

Staples may be known for its retail

business in the UK, but we’re very

business but the firm is quickly making

much thriving in terms of e-commerce

waves in the logistics sphere. This

and third-party logistics,” affirms Lewis.

is partly thanks to its tech-savvy operations and global experience, but also its successful strategic partnerships. “We work with last-mile partners including TNT Fed Ex Group and Pallex. Both partnerships offer w w w.suppl yc ha i ndi gi ta l. com

129

130

SEPTEMBER 2019

131

SUSTAINABLE SUPPLY CHAINS FOR GROWTH WRITTEN BY WILLIAM SMITH PRODUCED BY CAROLINE WHITELEY

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

D E C AT H L O N

THAO NGUYEN, HEAD OF PROCUREMENT & LOGISTICS FOR DECATHLON VIETNAM, AND NUNO TINOCO, HEAD OF FOOTWEAR, EXPLAIN THE ETHICAL APPROACH TO SUPPLY CHAINS POWERING THE COMPANY’S SUSTAINABLE GROWTH IN SOUTH EAST ASIA

S

porting goods company Decathlon has in recent years found new avenues for expansion in South East Asia (SEA).

Identifying its potential, the company’s first store in the region was opened in Thailand in 2015. Since 132

then, openings in SEA include a further nine stores in Thailand, six in Singapore, two in Vietnam, four in Malaysia, three in Indonesia, three in the Philippines and one in Cambodia. Nuno Tinoco is Head of Footwear for Decathlon Vietnam, and explains the company’s vision in this area. “Decathlon has changed a lot, both externally and internally over the past 10 years. We’ve expanded to more countries in the past decade than in the previous 33 years. This challenged us to re-think our product offering and our organisation. The main idea is to go faster by giving our teams power to decide locally, in each country, in each city, where the consequences have the most impact. We’ve gone for smaller teams, passionate about sport, who can better connect with their users and design more relevant products.”

SEPTEMBER 2019

133

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

D E C AT H L O N

134

“ By being usercentric, we can involve our sport users in the creation of the products of tomorrow” — Nuno Tinoco, Head of Footwear, Decathlon Vietnam

SEPTEMBER 2019

The fulfilment of Decathlon’s plans is being aided by the procurement function, as Thao Nguyen, Head Of Supply & Logistics for Decathlon Vietnam, explains. “Procurement is an important part of making sport accessible to the many. Local teams based in manufacturing countries are responsible for sourcing and managing the suppliers that produce Decathlon products. Once they are manufactured, Decathlon products are shipped by transport providers right into warehouses, then allocated to stores or

CLICK TO WATCH : ‘DECATHLON VIÊT NAM – XIN CHÀO TP. HÔ CHÍ MINH’

directly supplied to customers and

right people at the right place in a long

users after an online order.” This

term sustainable environment. We

vertical structure is vital for the

must preserve our planet and its

business as it expands its operations.

people to protect our purpose. Profit

“Our fully integrated chain which

will be a consequence of that, but that

stretches from retail to production

is not our first goal.” More than just

allows us to better master our costs,

words, the ‘three Ps’ guide and inform

the quality of our products and our

the company’s operations, for instance

supply chain,” says Tinoco.

ensuring it goes above and beyond in

Decathlon is clear that the character

its interactions with suppliers. “For

of its expansion is always conscientious.

many years now, we have had our own

“‘People, Planet, Profit’ are our watch-

requirements to assess the level of

words,'' says Tinoco. “For Decathlon,

our suppliers,” says Tinoco. “These

profit is a consequence of having the

requirements are more demanding w w w.suppl yc ha i ndi gi ta l. com

135

D E C AT H L O N

136

than local laws and aligned with best

creating teams organised by sport

international standards. These assess-

three years ago, whether that’s

ments are done regularly through

volleyball, trail, boxing or more,” says

official audits but critical points are

Tinoco. “These sports teams work

checked daily by our compliance team

closely with retail, production and

with suppliers in the field. We are able

more importantly with our sport users.

to do this by having offices inside

For example, we have one team-mate

our factories with a daily Decathlon

currently based in Vietnam who is a

presence and by building close relation-

high level road runner and also part of

ships with our suppliers’ teams.”

the road running team at Decathlon.

This inclusive, personal, sustainable

He develops the products of the

approach extends throughout the

sport he practices every day,

company, and even into the creation

collecting feedback from the

of products themselves. “We started

community of runners he is part of.

SEPTEMBER 2019

“More than 96,000 people in Decathlon are working every day to realise our purpose: sustainably make the pleasure and benefits of sports accessible to the many” — Thao Nguyen, Head Of Supply & Logistics, Decathlon Vietnam

137

E XE CU T I VE PRO FI LE

Thao Nguyen Thao Nguyen is a specialist with a decade of successful experience and comprehensive understanding of supply chains. Her experience widely covers activities including procurement, international freight, customs clearance, warehousing, ecommerce fulfilment and last mile delivery. She is a leader with proven skills of recruitment, team development and project management, with a commitment to identifying and implementing continuous improvement. She believes that the responsibility of companies and individuals should be in the ‘3 Ps’: Planet, People and Profit. Nguyen works to build effective, caring and environmentally friendly supply chain solutions, implemented in a human focused way. She is also passionate about healthy living and travelling.

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

YOU DON’T BUILD A BUSINESS, YOU BUILD PEOPLE WHO BUILD YOUR BUSINESS AND INTUITIVELY CLIENT SATISFACTION TNG manufactures high quality garments, specializing in outer and sportswear since 1979. TNG is one of the top 10 multi factory apparel manufacturers in Vietnam and one of the most transparent companies in the Hanoi Stock Exchange.

LEARN MORE

TNG is very well certified by third party compliance firms, major brands and retailers.

TNG has the capacity to handle high-volume projects in a timely fashion with 11 sewing factories and several support facilities.

DESIGN Our Design Team is conscious of current trends and has the ability to provide creative and commercial designs across various categories.

COMPLETE IN HOUSE SERVICING TNG has 7 support facilities.

We offer all services, from design to printing, quilting, padding, washing, packaging and shipping. This ensures complete control and effective communication.

SOURCING TNG Ě s wide ranging and year long experience in the industry established professional and reliable relationships with top suppliers all over the world.

LEARN MORE

By being user-centric, we can involve

innovation and digitalisation of the

our sport users in the creation of the

supply chain. Once per year we

products of tomorrow to better fit

organise a forum during which each

better their expectations.”

supplier can present to others.” Such

As well as ensuring its own opera-

a consideration dovetails with

tions have this culture, Decathlon

Decathlon’s extensive sustainability

extends its reach to influence those

goals targeting risks across human

around it. “We have established

rights, health and safety and the

numerous examples of good industry

environment, which are backed by

partnerships with suppliers all over

concrete targets. For instance,

the world,” says Tinoco. “Each of them

Decathlon is aiming for 100%

is skilled in some of the specific key

renewably-sourced electricity for

strategies and challenges of tomorrow

all of its distribution and logistics

such as automation, continuous

activities by 2026, and as of

improvement, big data management,

now, 82% of its suppliers are

SEPTEMBER 2019

receiving A, B or C rating for working conditions, up 28% from 2017. By 2021, the company is targeting a 20% decrease in CO2 emissions thanks to energy consumption and renewables investment.

One specific example of Decathlon’s behaviour inspiring transformative change in others comes from its work with manufacturing partner Dovitec.

“Dovitec was inspired by our sustainable development strategy,” says Nguyen.

“One of their Decathlon exclusive sites has instituted an energy saving project

“ Profit is a consequence of having the right people at the right place in a long term sustainable environment” — Nuno Tinoco, Head of Footwear, Decathlon Vietnam

E XE CU T I VE PRO FI LE

Nuno Tinoco Nuno Tinoco studied sport sciences and shoe engineering in France. Following his passion, Tinoco has 11 years of successful experience in the Footwear industry, ranging from Lab Research, Quality, Strategic Purchasing, and management.

Living in different countries such as Portugal, Switzerland, France, Romania, Bangladesh and Vietnam, he has built strong skills in cultural adaptation, learnt six languages and is able to make decisions in challenging environments. Through all of his experiences he has been driven by his passion for sports and footwear going through business management and team development. He is also a family oriented person and a player of basketball and guitar.

w w w.suppl a si a .busi yc hane i ndi sscgihta ief. l. com

141

D E C AT H L O N

1976 Year founded 96,000 Approximate number of employees globally

+ €1 1.bn Turnover (excluding taxes) end of 2017

142

SEPTEMBER 2019

143

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

D E C AT H L O N

C O M PA N Y FACT S

• Decathlon is aiming for 100% renewably-sourced electricity for all of its distribution and logistics activities by 2026 • Recently opened ten stores in Thailand, six in Singapore, two in Vietnam, four in Malaysia, three in Indonesia, three in the Philippines and one in Cambodia.

144

• The company is targeting a 20% decrease in CO2 emissions by 2021

which has resulted in a number of improvements. Solar panels now provide 56.9% of the office’s energy consumption, they’re using daylighting and walls are being made from non-baked bricks to reduce heat gain and save the CO2 emissions produced by the baking process. Thanks to these and other solutions they’re reduced their energy costs by 50%. They’ve also put in place wastewater treatment and rainwater harvesting systems.

SEPTEMBER 2019

“ We are working on implementing cloud-based transportation management systems with AI optimisation tools, as well as a green project to reduce CO2 emissions” — Thao Nguyen, Head Of Supply & Logistics, Decathlon Vietnam

Free sport facilities are provided for workers, and facilities for disabled people have also been set up.”

Another comprehensive collaboration comes in the form of Decathlon’s work with DHL. “DHL International Supply Chain (DHL ISC) runs a dedicated DHL control tower which provides a single point of contact in Vietnam and Taiwan for Decathlon's operations,” says Nguyen.

“The control tower

oversees Decathlon's air, sea and road shipments from factories in Vietnam and Taiwan to the world. DHL's ISC services offer comprehensive solution design and project management backed by a global governance structure that guarantees consistency across operations. The collaboration we set up involved a high level of coordination, understanding and continuous improvement mindset for the mutual benefit of both w w w.suppl yc ha i ndi gi ta l. com

145

D E C AT H L O N

companies. The results were very satisfying. We achieved 91% container optimisation, 100% data on-time and 100% document on-time. We believe this partnership can go even further, and we are working on implementing cloud-based transportation management systems with AI optimisation tools, as well as a green project to reduce CO2 emissions.”

Decathlon is not planning to rest on its laurels as it follows its plans for growth. “Over the next 10 years, we will 146

regularly re-write our vision,” says Tinoco. “Doing that helps us to identify the main challenges of tomorrow, whether that’s the environment, data management, digitalisation, industry 4.0 and beyond. We want to connect with our sport users and make sure our products are accessible as fast as possible through physical stores or online.” Ultimately, Decathlon is confident in the resilience of its strategy going forwards, with rewards on offer not just for itself but for customers and the world at large.

“More than 96,000 people in Decathlon are working every day to realise our purpose: sustainably SEPTEMBER 2019

147

make the pleasure and benefits of sport accessible to the many,� says Nguyen. “Going into the future, our strategy of empowering people, decentralisation, user centricity and digitalisation will help Decathlon become more agile and better able to adapt to fluctuating environments and answer to the increasingly complex requirements of our customers.

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

C O R N I N G I N C O R P O R AT E D 148

leveraging supply chain collaboration and procurement consortiums for a successful supply chain WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

CHARLOTTE CLARKE

SEPTEMBER 2019

149

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

C O R N I N G I N C O R P O R AT E D

Tom Kruse, Global Head, Supply Chain Collaboration & Consortiums, Global Supply Chain Management at Corning Incorporated, discusses the importance of supply chain collaboration amidst its transformation journey in the manufacturing industry

A 150

s one of the leading innovators in materials science worldwide, Corning Incorporated is used to being in the

ascendency. Established in 1851, Corning has become a major heavyweight in the glass manufacturing space, with its products used in applications including smartphones, automotive interiors, large-size televisions and displays, and even pharmaceutical packaging. Tom Kruse, Global Head, Supply Chain Collaboration & Consortiums of Corning, understands the importance of procurement to his firm’s operations and believes it is considered a vital priority. “As a manufacturing company, supply chain and procurement are front and center of everything that we do,” says Kruse. “It’s an old adage, but every dollar that we save contributes directly to the bottom line of the company and reduces our adjusted manufacturing costs.”

SEPTEMBER 2019

151

“ As a materials science and technology manufacturing company, supply chain and procurement is front and center to everything that we do” — Tom Kruse, Global Head, Supply Chain Collaboration & Consortiums, Corning Incorporated

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

C O R N I N G I N C O R P O R AT E D

152

Corning has a range of business

the suppliers via e-auctions and nego-

lines including products that serve and

tiations,” he says. “You can do value

enable the latest trends in the optical

engineering, optimize and manufacture

communications, mobile consumer

products more effectively, but what

electronics, life sciences vessels, auto-

we’ve found is the next threshold is

motive, and display markets. “Overall,

really to work with other like-minded

we manufacture a really mixed product

organizations and highlight the impor-

line with our clients, customers and

tance of supply chain collaboration

other multinational companies in mind,”

and to leverage procurement consor-

Kruse explains.

tiums where applicable. We can look

He stresses that the key to success is

at it from two ways in our collabora-

a clear procurement strategy. “There’s

tion: either combine our volumes if

only so many times you can keep going

our products align and go to market

to the well and reducing costs from

together or approach it from a suppli-

SEPTEMBER 2019

153

E XE CU T I VE PRO FI LE

Tom Kruse Kruse is currently based in Singapore where he is the Global Head of Supply Chain Collaboration & Consortiums within the Global Supply Management organization at Corning. Mr. Kruse has over 20 years of strategic procurement and supply chain management experience in high-tech, manufacturing and service environments. He has lived and worked in three geographies, has established new Procurement organizations and developed and implemented Procurement transformation strategies.

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

FREE Guide: Strategically Manage Spend and Increase Speed to Savings How Leveraging a GPO Will Bring Long-Standing Value to Your Business Purchasing professionals are constantly being tasked to do more with less. A few key items on the CPO's agenda are: 1. Uncover double-digit savings in unmanaged areas of spend.

2. Improve upon long-standing contract savings and service-levels 3. Benchmark results both current contracts and overall market trends 4. Satisfy end-user stakeholders’ priorities needs and goals.

Procurement is tasked to do all of the above (and more) while operating in an ever-evolving business environment. Group purchasing organizations (GPOs) can narrow the scope of priorities for procurement as they take on and deliver on the most important value drivers. In our guide, “Reshaping the Future of Purchasing,” you’ll discover the benefits and value-added drivers that you'll gain through GPO membership.

GPO 101 & FAQS

POWER

ACCESS

TRUST

Reshaping the Future o Purchasing f

Find out how an OMNIA Partn immense value ers membership to your organ can provide ization and procuremen will enhance t world. your

VIEW GUIDE

CLICK TO WATCH : WHERE IS CORNING? 155 er’s perspective and say: ‘We’re buying

seeking out new consortiums or Group

these 10 cubes of packaging from the

Purchasing Organizations (GPO’s), in

same suppliers that you’re buying from,

different markets to understand what

it’s just that you’re buying different

they’re doing and how we can benefit

products – but by combining our spend

by joining them,” explains Kruse.

together, we’re making it more attrac-

“Ultimately, we measure the savings by

tive to the suppliers’.”

evaluating the contribution to operat-

Corning has overseen a rapid trans-

ing margins (COMs) and decide how

formation in the number of consortia it

we can make them perform. Other than

has become involved in over the past

savings we need to ask ourselves: what

few years. Having participated in just

other value can we gain from them? For

one consortium two and a half years

example, we’re pursuing market intel-

ago, the company has experienced a

ligence, understanding best practices

major surge, with the figure increasing

and working with other organizations

to 11 in a short space of time. “We’re

to exchange information.” Some of w w w.suppl yc ha i ndi gi ta l. com

C O R N I N G I N C O R P O R AT E D

156

1851

Year founded

$11.4bn+ Approximate revenue

50,000

Approximate number of employees

SEPTEMBER 2019

157

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

C O R N I N G I N C O R P O R AT E D

Intelligent | Connected | Predictive

WELCOME TO THE FUTURE OF PROCUREMENT WELCOME TO CHAIN IQ Cognitive Computing & AI

Predictive & Advanced Analytics

Distributed Ledger (Blockchain)

Smart Joint Sourcing

Robotic Process Automation

Cyber Tracking

LEARN MORE

CONTACT US

Corning’s key supply chain collabora-

manufacturing sector, companies must

tion partners include Chain IQ, who

adopt and embrace new technologies

is a leading global Sourcing Service

in order to remain a leader in the field.

Provider (SSP) and OMNIA Partners,

Kruse affirms how crucial digital trans-

the largest GPO in the US. “Both

formation is to Corning’s decision-

organizations have proven to be vitally

making processes moving forward.

important in our collaboration journey

“We have different internet platforms

and we work closely with them to

where we exchange information

seek out new opportunities across

externally with collaboration partners,

different markets and categories,”

suppliers, like-minded organizations

Kruse explains.

and customers,” he explains. “We’re

With the introduction of Industry 4.0

working on this with a great sense of

and the Industrial Internet of Things

urgency because we recognize that

(IIoT) over the past few years becom-

digitalization and digital transforma-

ing increasingly prevalent in the

tion are becoming vitally important to

SEPTEMBER 2019

us.” Whilst the implementation of new technology can often seem like a good idea, there is no value in introducing new systems that do not enhance the current processes already utilized by companies. Kruse affirms that the only way to achieve his company’s goals is by learning from mistakes. “You’re never going to

“You have to make technology useful for you in order to shape the direction you want it to go in” — Tom Kruse, Global Head, Supply Chain Collaboration & Consortiums, Corning Incorporated

159

than the current one you already have – you just have to use trial and error. You have to seek this new technology, try it, incubate it and keep what works for you as well as understanding how you can be consistently successful with all of

improve it to enable better practices.”

the different technological and supply

With sustainability in mind, Kruse rec-

chain collaboration elements,” he says.

ognizes how important recruitment

“It’s not a given that the new technology

is to ensuring long-term success at

you’re introducing is going to be better

Corning. “In my particular area, it all w w w.suppl yc ha i ndi gi ta l. com

C O R N I N G I N C O R P O R AT E D

Breakthrough Innovations 1879: Light Bulb Glass Corning developed the glass encasement for Thomas Edison’s lightbulb and a mass-production process that made them more widely available.

160

1947: Cathode Ray Tubes Corning revolutionized the television industry by inventing a process to mass-produce TV picture tubes.

1970: Optical Fiber Corning developed the very first opticle fiber capable of maintaining laser light signals over significant distances, paving the way for fiber optics in telecommunication.

2007: Corning ® Gorilla® Glass Corning developed a revolutionary glass that’s thin, light, and damage resistant, making it an ideal cover material for consumer electronics.

SEPTEMBER 2019

boils down to people. I have to

few years. “I think we just need to con-

constantly find the right peo-

stantly seek out new innovations and

ple in my organization to help

understand them as much as we can in

drive our collaboration and

order to help embed them into Corning

consortium interests forward,”

and make them work for us,” Kruse

he says. “I will then help to find

concludes. “You have to make technol-

and shape a successor who will

ogy useful for you in order to shape the

continue to drive this forward, adapt

direction you want it to go in.”

to change and modify when required to be changed.” Looking to the future, Kruse harbors clear goals of where he wants his supply chain and collaboration function to be over the next

161

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

162

PEPSICO LATAM: DRIVING INNOVATIVE SUPPLY CHAIN OPERATIONS IN A HIGH PERFORMANCE MARKET WRITTEN BY

MARCUS LAWRENCE PRODUCED BY

DENITRA PRICE

SEPTEMBER 2019

163

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

PEPSICO

PEPSICO LATAM HAS BEEN UNDERGOING A SIGNIFICANT SUPPLY CHAIN TRANSFORMATION AS THE COMPANY AT LARGE CONTINUES TO STREAMLINE AND OPTIMIZE THE EFFICIENCY OF ITS OPERATIONS

P

epsiCo’s portfolio of evocative household names has a foothold in every major market around the world, and delivering

those products to consumers in the most effective manner possible has become a company-wide 164

strategic imperative. For PepsiCo’s operations in Latin America (LATAM), the centralization of procurement has been an ongoing endeavor for the past several years and the transformation is reaping dividends. As a key region for PepsiCo’s wider balance sheet, optimization of procurement and logistics in the region stands to have a significant impact on success at large. The procurement function is, in effect, essential to the company’s wider growth strategy. When new CEO, Ramon Laguarta, came in last year, there was a refinement in the company’s vision focused on how PepsiCo can become the leader in convenience food and beverages by winning with purpose rather than just performing – and this mentality is central to the company’s supply chain transformation.

SEPTEMBER 2019

$64.6bn Approximate revenue

1898

Year founded

250,000+ Number of employees worldwide

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

165

PEPSICO

“ THE FIRM’S STRONG PARTNERSHIP MANAGEMENT IS TIED INTO THE SUCCESS OF ITS NEW FLEET MANAGEMENT CAPABILITIES”

With its LATAM operations accounting for around 11% of PepsiCo’s global revenues, optimizing supply chain and procurement operations in the region is essential for continued growth at both a national and global level.

Leveraging relationships with suppliers worldwide is key, along with the capacity to negotiate on a global scale whilst simultaneously servicing and supporting local markets. In 2012, previous CEO Indra Nooyi set a goal of securing $1.5bn in cost savings through streamlining and incrementally upgrading the company’s productivity,

166

SEPTEMBER 2019

CLICK TO WATCH : ‘PEPSICO SUPPORTS RECYCLING IN LATIN AMERICA WITH INNOVATIVE PROGRAMS’ 167 citing the firm’s positive performance

of this ambitious goal. By combining

in the five volatile preceding years

procurement and operations, both

for world economies. “Our goal is to

delivering more cost-effective ways

continue on that earnings trajectory

of purchasing and enabling the supply

over the next five to 10 years, fully

chain with new technologies – such

recognizing that we need to make

as the new fleet management system

changes to the way we operate to

– quarterly productivity has been

address the challenges identified in the

enhanced significantly both on a local

review process,” said Nooyi in a press

and wider level.

statement at the time. “2012 will be

Partnerships have been particularly

a transition year, in which we will be

crucial to the cost-saving strategy, as

taking the appropriate steps to build

more effective relationships can yield

a stronger, more successful company

higher quality solutions at cheaper

going forward.” Latin America, as a

rates. Not only that, but the complex

region, has been vital to the realization

nature of Latin America’s established w w w.suppl yc ha i ndi gi ta l. com

www.volkswagen-commercial-vehicles.com

We transport your future.

Tomorrow’s mobility is what drives us today.

Electricity is the fuel of the future – not just because switching to electric vehicles is good for both your business and the environment. Thanks to compact batteries, short charging times and unrestricted access to ultra-low emission zones, you will have a head start in urban mobility.

Where will your cars take you in the coming years? Let us be part of your journey.

About Volkswagen Commercial Vehicles: As an independent brand within the Volkswagen Group, Volkswagen Commercial Vehicles (based in Hanover, Germany) is responsible for the Group’s worldwide activities in the area of light commercial vehicles, people carriers and camper vans. This includes the systematic further development, the production and the sale of the successful Transporter, Caddy, Crafter and Amarok model ranges (almost 500,000 sold units in 2018) as well as the development of new vehicle types, (digital) services and (electric) mobility solutions.

By doing so, Volkswagen Commercial Vehicles focuses on the individual transport and mobility needs of its commercial and private customers and contributes decisively to their economic success by offering added value for their work, their business models and their everyday lives.

Beyond that, the brand is responsible and will set the pace for the strategic future field of autonomous driving for the entire Volkswagen Group, aiming to become the leading company for individual mobility and interconnectedness by 2025.

Mission: we transport success.

Volkswagen Commercial Vehicles is fully concentrating its activities on the fundamental changes taking place in the industry and to the changing customer requirements. Therefore, we pursue a clear strategy for our future business – called GRIP 2025+ (Growth, Responsibility, Innovation, People) – allowing us to design the necessary transformation, to stay competitive and to secure the long-term success of our brand.

For all our products and mobility solutions, we aspire to minimize environmental impact along the entire life cycle – from raw material extraction until end-of-life disposal – in order to keep ecosystems intact and to create positive impacts on society.

Compliance with environmental regulations, standards and voluntary commitments is a basic prerequisite of our actions.

Facing the task of shaping mobility in a cleaner, safer and more efficient way with our vehicles and services, Volkswagen Commercial Vehicles, too, just like the other brands of the Volkswagen Group, is committed to the target of the Paris Summit on Climate Protection, which aims to restrict global warming and to target a fully CO2-neutral balance by 2050, for example.

The opinion and feedback of our customers is very important to us. That is why we always work closely together with them when developing new products. In addition, a huge capital employment enables us to consistently push the transformation towards zero-emission mobility. With the all-electric e-Crafter, ABT e-Caddy and ABT e-Transporter (the last two developed together with our strategic partner ABT), our portfolio contains solutions for urban traffic that are already sustainable now.

Expected in 2022, the fully electric ID. BUZZ, which has entirely developed anew, will be one of our most important products for the future and is our technology carrier for autonomous driving.

In the end, working together responsibly in all areas of the organization, developing and involving enthusiastic and talented employees, and working together as one team with the best partners of the industry are the crucial things that enable us to live up to our promise: we transport success.

For more info on Volkswagen Commercial Vehicle’s Fleet solutions, visit: www.volkswagen-nutzfahrzeuge.de/de/geschaeftskunden/grosskunden/kontakt-international.html

PEPSICO

170

and varied markets necessitates

source locations. The aforementioned

a high degree of expertise on the

regional and intra-regional quirks are

business side to initiate and maintain

similarly vital to consider when it

such relationships. Every country

comes to both partner selection and

has its particularities, so having the

the application of innovative techno-

necessary talent and capability

logical solutions. Driverless vehicles,

to connect with the correct partners,

for example, are not currently viable in

provide the right efficiencies and

places like Sao Paolo and Lima due to

scale relative to different countries

both infrastructural and technological

is essential for PepsiCo’s delivery

limitations. However, these limitations

of its supply chain objectives.

have not prevented the company from

PepsiCo proactively and regularly

establishing a new fleet management

assesses its partners and ensures it

solution in the region replete with

is leveraging the most cost-effective

benefits to productivity, efficiency,

SEPTEMBER 2019

171

logistics, sustainability, driver safety

implications for enhanced sustainability

and more. Focusing on safety and

are a particular boon as consumers

making sure hard braking, hard

around the globe become more

cornering, inefficient acceleration

conscious of the environmental

and so forth are reduced has reaped

impacts of the products they buy.

myriad benefits, improving the

The firm’s strong partnership

employee experience along with wider

management is tied into the success of

ranging results. Beyond safety, the new

its new fleet management capabilities,

fleet management system has a much

too. Leveraging key relationships with

broader reach: the platform pilot is

expert fleet managers to augment its

seeing a reduction of 10% in both

ability to build and deploy customized

idling and travel distance, significantly

systems has enabled PepsiCo to boost

reducing fuel consumption and

efficiency, automatic dispatching,

greenhouse gas emissions. The

roadside assistance, and more. w w w.suppl yc ha i ndi gi ta l. com

PEPSICO

172

“ IT’S CLEAR THAT THE POTENT INTEGRATION OF TECHNOLOGIES AND BLENDING OF THEIR CAPABILITIES HAS BEEN KEY TO PEPSICO LATAM’S SUCCESS”

SEPTEMBER 2019

173

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

PEPSICO

174

“ PEPSICO PROACTIVELY AND REGULARLY ASSESSES ITS PARTNERS AND ENSURES IT IS LEVERAGING THE MOST COSTEFFECTIVE SOURCE LOCATION” SEPTEMBER 2019

These efforts have resulted in a 90% reduction in associated administrative work, enabling employees to focus on more fulfilling value-added activities. No single technological solution or platform is responsible for or capable of securing such successes, however, it’s clear that the potent integration of technologies and blending of their capabilities has been key to PepsiCo LATAM’s success.

The transport management system is tied into the telematics system, the last mile system, the route planning systems and so on, enabling the best qualities of each solution to be available in the same place.

Taking a broader view of business operations, growth of the company at a global level, and the focus on a clear strategic vision are collectively bringing PepsiCo ever further forward as an example of procurement and supply chain operations done right.

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

175

176

SIGNED,SEALED & DELIVERED WITH SEALED AIR WRITTEN BY

DAN BRIGHTMORE PRODUCED BY

STUART IRVING

SEPTEMBER 2019

177

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

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

HOW SEALED AIR IS AIMING TO BALANCE ITS USE OF TECHNOLOGY TO INCORPORATE SUSTAINABILITY, COST EFFECTIVENESS, SPEED AND PROTECTION FROM WAREHOUSE TO DOORSTEP

S

ealed Air’s genesis came in a moment of accidental innovation back in 1957.

Two engineers, Alfred Fielding and Marc

Chavannes, in Hawthorne, New Jersey, attempted to create a new wall covering by laminating 178

two plastic sheets with air bubbles in between.

Although their invention never caught on as interior decoration, it was later discovered as the perfect material for protecting items, starting the pop culture legacy commonly known as bubble wrap.

Fast forward to the present day, and Sealed Air’s mission has grown to help businesses succeed across the packaging space in both the food and brand protection markets.

“The underlying theme for Sealed Air today is to pick up on the sustainability pillars within the industries we serve,” explains Michael Basagre, NZ 3PL and Fulfilment Sector Leader. Our team specialises in reducing damages, cube optimisation, fulfilment velocity and enhancing the overall customer experience through better packaging design. Our innovation has always been driven SEPTEMBER 2019

179

$4.5bn+ Approximate revenue

1960

Year founded

15,000

Approximate number of employees w w w.suppl yc ha i ndi gi ta l. com

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

“ THE UNDERLYING THEME FOR SEALED AIR TODAY IS TO PICK UP ON THE SUSTAINABILITY PILLARS WITHIN THE INDUSTRIES WE SERVE”

by the market and the customers.

As a result, today’s technology has evolved around those key drivers, challenging us to re-invent how we interact with packaging, whether that be ensuring products of all shapes and sizes arrive safely to its destination or reducing food waste such as meat, fish and produce to achieve a longer shelf life.” Basagre says these innovations range from tabletop devices capable of making packaging on demand such as bubblewrap, to large, fully automated, IoT-enabled machines that require little to no human interaction. “It’s a wide

180

Michael Basagre, NZ 3PL and Fulfilment Sector Leader

spectrum, depending on the industry and the particular customer that it might be appealing to,” he adds.

The big challenge for Sealed Air is to continue to meet the changing needs of customers. “With the continued rise of e-commerce, the consumer is now demanding, if not already conditioned to more convenience, such as same day delivery, free shipping and more eco-friendly or sustainable packaging,” says Basagre. “That wave of customer influence is driving us back to the heart of the supply chain to reinvent how retailers and warehouses package their orders with the customer in mind.

SEPTEMBER 2019

CLICK TO WATCH : ‘NEW AIR I.B .® NANO PACKING APPLICATIONS’ 181 We’re trying to break the traditional

share the same forward-thinking ethos.

mentality of the warehousing and

“In particular, the solutions we are

fulfilment centres we deal with. There

seeing today, that are really taking off

has been a focus on traditional

are in that sustainability area.” he says.

processes when it comes to packag-

“Businesses choose Sealed Air

ing, especially in the logistics industry

because our solutions match their

here in New Zealand. However, as the

values as a company. My role has

demands of customers increase such

traditionally been focused on the

as same day delivery, so too does the

backend of that supply chain where

pressure to fulfil those orders, which

packaging meets a person packing an

means non-value-added activity in the

order, but with the rise of sustainability,

supply chain must be carefully reviewed

e-commerce and enhanced customer

with a more customer centric approach.”

experience, my role has very much

Basagre believes customers are now choosing retailers and brands who

shifted towards a more holistic view, a view that connects the person packing w w w.suppl yc ha i ndi gi ta l. com

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

182

the order with the customer receiving

wrap. The process may look like this:

the order.

the packer goes to a bulky storage

“I now focus on ensuring that the

area to cut and collect this traditional

packaging benefits everyone across

bubble wrap before taking it back to

the supply chain process, and that

the pack bench to wrap around three

means being responsible for communi-

to four times around the fragile order

cating all the health and safety benefits

before taping and placing into a carton.

of our solutions as well as how it will

However, this process can be im-

help drive brand awareness and loyalty

proved by one of our machines that

for a retailer,� Basagre continues. “For

produces bubble wrap on demand,

example, say a customer orders a

called New Air iB. This means it can

fragile item that is prone to getting

easily eliminate the unnecessary

damaged, a packer will aim to protect

process of walking to cut and collect

that order by using traditional bubble

bulky bubble wrap, and because our

SEPTEMBER 2019

film is perforated there is no need for

sufficient for the product it is protect-

a knife, add to the fact that this

ing, meaning it’s not over packed. And,

on-demand Bubblewrap is much

because it was packed much more

stronger than traditional bubble wrap

quickly, the customer has a better

meaning less layers are required to

chance of getting their order in time,

achieve the same amount of protection.

enhancing the unboxing experience

“Overall this improved process

and the overall customer experience

reduces the manual aspect found in

with the retailer.” Such streamlining

traditional bubble wrap, by improving

strikes the right note for sustainability

the packer’s performance and

targets as, from a purely packaging

eliminating the potential health and

perspective, Sealed Air’s innovation is

safety risks such as knife cuts or

focused on helping businesses reduce

fatigue,” says Basagre. “Now, when the

the amount of packaging they use

customer receives their order, they are

without compromising on integrity as

now receiving packaging that is

per the example provided by Basagre.

E XE CU T I VE PRO FI LE

Michael Basagre Michael Basagre prides himself on being able to help others succeed. “Packaging is just a by-product of that conversation,” he says. “If I can have a conversation with a person that allows them to become better versions of themselves, whether that’s using our packaging more efficiently, or providing insights to a better approach to recycling, then that’s what success looks like in this space. If you are genuinely interested in helping others succeed by enabling them to unearth their potential, then the chances that you will succeed becomes greater.”

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

183

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

Sealed Air’s approach to reverse logistics is also addressing the waste hierarchy, while keeping the company on target to meet its sustainability goals with materials used on demand.

“Many of our protective packaging materials can be reused,” confirms Basagre, highlighting the ability to use the same packaging for product returns via the supply chain or re-forwarding orders to other destinations.

“What we’re also seeing in the B2B supply chain is this active awareness to reuse our packaging materials

It’s how businesses get along.

Leading the revolution in Distribution Centres to create world class automated warehouse conveyor systems.

185 instead of disposing them. Most of

“ I’VE EXPERIENCED THAT PEOPLE ARE MOTIVATED TO DO THE RIGHT THING, IF ITS ACCESSIBLE AND EASY TO DO”

these solutions are strong enough to be used multiple times in that supply chain whether that is return logistics or reusing for new order.”

This commitment to reuse is echoed in Sealed Air’s partnership with Soft Plastics, a New Zealand recycling initiative. “We provide financial assistance around drop-off points so that they can recycle a lot of our soft plastics – our clear mailer bags, bubble

Michael Basagre, NZ 3PL and Fulfilment Sector Leader

wrap bags and protective packaging plastics can be put back through the system to be regrinded, reprocessed, w w w.suppl yc ha i ndi gi ta l. com

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

and reused to make other plastics.

In this particular case, here in New Zealand, it’s being transformed into plastic fence posts by an innovative company called Future Post” says Basagre. “Future post in particular is aiming to replace traditional timber fence posts found in the agriculture industry by converting the plastics into post, which means they minimise plastics ending up in landfill.” Sealed Air also works with Astron Plastics, which regrinds plastic material for much of the New Zealand market. “We send our 186

off cuts to Astron and they reprocess it for us to purchase back, in which we are then able to re-use in our own processing plant here in Auckland,” he says. “We’re trying to ensure we have that closed-loop process as we aim for a more circular economy.”

Sealed Air carried out a survey back in 2014 around ecommerce and online orders, and found that 58% of consumers are more conscious about packaging materials than they were five years previously. Meanwhile, 77% of consumers believe that packaging should reflect a retailer’s environmental values.

Basagre says the study’s insights drove many back-of-house changes.

SEPTEMBER 2019

“Part of my role is to link, the front-ofhouse with the back-of-house operations and make sure retailers are aware of what their packaging is reflecting to their customers and market. I’m finding more and more that retailers are looking for environmentally friendly or more sustainable packaging to meet the growing concern of their customers and the market they serve. Along with helping connect packaging with people, my role is to also help educate and ensure that decisions on packaging materials or processes involving packaging are made with as much information as possible, and that often includes advising decision makers on the trade-offs such as any extra costs, changes to packing process, performance of the packaging materials and of course the environmental impact.

I believe it is equally important to understand these trade-offs as much as it is about choosing the right packaging material. What I am finding more and more of is - if the packaging material is too hard to recycle, or the packaging is perceived to not be environmentally friendly, then the chances of it being put through the correct recycling system becomes less w w w.suppl yc ha i ndi gi ta l. com

187

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

TECHNOLOGY

188

“Our technology is seen more as a value add to the entire supply chain as opposed to one element, which is traditionally focused on getting the orders out the door quicker,” says Sealed Air’s Michael Basagre, NZ 3PL and Fulfilment Sector Leader. The company’s e-Cube void-reduction system automatically creates rightsized packaging for a variety of industries – ideal for businesses shipping between 300 and 3,000 boxes per day. The system measures the height of the contents, scores and folds excess corrugated material and then seals the carton. “It takes the guesswork out of the equation for our customers, while reducing the amount of labour required in the packing

SEPTEMBER 2019

process,” adds Basagre. Sealed Air also offers a powerful solution for the high-volume e-commerce market. The FloWrap system produces customised, ready-to-ship, rightsized polybags. The FloWrap automated platform can produce packs at up to 30 bags per minute, “It eliminates human error as the packer doesn’t have to calculate which size bag should I use, the FloWrap enables that for them,” says Basagre. Customers can choose their best match from options including film length, width and height, and length.

A powerful solution for the high-volume e-commerce market, the FloWrap system produces customised, ready-toship, rightsized polybags.

likely. I’ve experienced that people are

supply chain, then there will be no raw

motivated to do the right thing, if its

materials for us to recycle.”

accessible and easy to do.”

Sealed Air’s 2025 Sustainability and

Collaboration is key to drive educational awareness in the sustainability

Plastics Pledge sets ambitious goals for

area, he believes. “The everyday

recycling, showing the company is keen

consumer is wanting to do their part to

to lead by working towards innovative

help reduce waste, let alone eliminate

packaging solutions that are 100%

plastics waste. So, it’s important that

recyclable or reusable. The challenge is

we also focus on recycling and

to eliminate plastic waste and achieve a

reducing as well continuing to investi-

target of 50% average recycled content

gate and develop more alternative

across all packaging solutions, 60% of

options. We need to bring to light that

which is post-consumer recycled

not all plastics are evil and not one

content. Stressing the difficulty of this,

packaging material is best fit for every

Basagre warns: “If we can’t get

application. For example, if we can

post-consumer plastics through the

extend the shelf life of red meat using

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

189

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

Sealed Air’s proven Cryovac packaging material, and enable that piece of meat to see another day and increase its chances of being purchased and consumed rather than thrown away, then that to me is being more sustainable. Or, if we can prevent fragile items from getting damaged by focusing on packaging performance, such as stronger protective bubble wrap, then the chances of that order turning up in one piece improves drastically, whereas if the wrong packaging material was used and it ended up 190

getting damaged then that’s the worst sustainable outcome that could happen because now you have to re-send, re-deliver and re-package

is protective paper packaging was

that order which is then contributing

once thought of as a dying breed.

to the carbon footprint.

It’s great that they are trending now

“Yes, the rise of more eco-friendly

because it means consumers are more

packaging is increasing and currently

likely to recycle paper, which means

it tends to gravitate towards paper-

our paper-based solutions are

based options, but it is also important

empowering consumers to recycle

to remember the purpose of the

more often. At the end of the day

packaging material and the applica-

sustainable packaging doesn’t have

tion,” Basagre states. “The great thing

a silver bullet, but it does have good

is we have both plastic and paper

intentions and we are for discussing,

alternatives to help provide brands and

informing and collaborating on the

customers the choice based on values

best packaging solutions”.

and purpose. What’s really interesting SEPTEMBER 2019

Looking to the future, Basagre can

191

see automation becoming more

mental hump that they can transform

accessible to the New Zealand market,

their business using this technology

and not just for the big guys. “SMEs are

without the burden of having to be the

reaching out to us to try and future

a large player to access this technol-

proof their businesses. We’re having

ogy, instead, they can see that our

more conversations now around how

technology could actually help enable

to use technology to build their

them to become the next large retailer,

business, grow their customer base

which is great to see.”

by getting orders out the door more quickly, and become more sustainable.

I’m seeing a breakdown in the mindset that automation in the packaging space is exclusive to larger customers. It’s great to see they are getting over the w w w.suppl yc ha i ndi gi ta l. com

Spot the red flags and you won’t need a white one.

We believe technology has the power to do wonders.

It can put eyes in places yours can’t see.

Alert you to potential catastrophes, make you feel like someone’s got your back.

And when you know your assets are protected you can focus on doing amazing things with your business.

With an army of experts, state of the art security operation centres, and world leading partners, no one sees security like we do. That’s why we are the Frost and Sullivan Managed Security Services provider of the year.

With your vision and our expertise, together we’ll do wonders.

Find out how Telstra can help: telstra.com/secureyourbusiness