Supply Chain - May 2022 by Supply Chain Digital

May 2022 | supplychaindigital.com

THE STANDARD: Achieving financial wellbeing and peace of mind ASAHI: Leading the way in sustainable beverage production

SUPPLY CHAIN TRANSFORMATION is about the journey, not the destination SAP: Going the extra mile on sustainability

How EY teams deliver

visibility and agility for resilient Supply Chains Supply chain influencers

EY Global Supply Chain Leader

GLENN STEINBERG

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Join us at SUPPLYCHAIN LIVE LONDON Showcase your values, products and services to your partners and customers at SUPPLYCHAIN LIVE LONDON 2022. Brought to you by BizClik Media Group SUPPLYCHAIN LIVE LONDON, the hybrid event held between 12th-13th October is broadcast live to the world and incorporates two zone areas of SupplyChain LIVE, Procurement LIVE in to one event. With a comprehensive content programme featuring senior industry leaders and expert analysts, this is an opportunity to put yourself and your brand in front of key industry decision makers.

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The SupplyChain Team EDITOR-IN-CHIEF

SEAN ASHCROFT EDITORIAL DIRECTOR

SCOTT BIRCH

PRODUCTION DIRECTORS

GEORGIA ALLEN DANIELA KIANICKOVÁ PRODUCTION MANAGERS

PHILLINE VICENTE JANE ARNETA ELLA CHADNEY

CREATIVE TEAM

DIGITAL VIDEO PRODUCERS

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

EVELYN HUANG MARTA EUGENIO ERNEST DE NEVE THOMAS EASTERFORD DREW HARDMAN

VIDEO PRODUCTION MANAGER

MIKE SADR CRAIG KILLINGBACK

KIERAN WAITE SAM KEMP

MOTION DESIGNER

TYLER LIVINGSTONE

MEDIA SALES DIRECTOR

JAMES WHITE

SALES AND MARKETING DIRECTOR

JASON WESTGATE MANAGING DIRECTOR

LEWIS VAUGHAN

MARKETING MANAGER

CHIEF OPERATIONS OFFICER

PROJECT DIRECTORS

GLEN WHITE

KAYLEIGH SHOOTER

STACY NORMAN CEO

FOREWORD

It’s green for ‘go’ on sustainability The days when businesses could pay lip service to sustainability have long gone, with organisations now having to make it part of their core DNA

“Sustainability must become part of what a business does and who they are, otherwise customers will simply head elsewhere”

Across most of the content in this issue – whether the features focus on supply, logistics or technology – there is a strong sustainability element. I am sure this will likely continue to be the case, as the world continues to push towards the goal of reaching net zero carbon emissions by 2050. Businesses are now having to design sustainability into their products, processes, manufacturing and logistics. Even that’s not enough, though, because today’s consumers are also coming to expect products to be recyclable – the last link in a circular supply chain. Our cover feature this month focuses on Andy Hancock, who is Global Vice President of SAP’s Centre of Excellence, Digital Supply Chain. Hancock and his supply chain colleagues are at the forefront of helping businesses code sustainability into their corporate DNA. If businesses are serious about meeting their net zero commitments then there really is no other way. Sustainability must become part of what they do and who they are. If they don’t, then the customers of tomorrow will simply head elsewhere.

SEAN ASHCROFT

sean.ashcroft@bizclikmedia.com SUPPLYCHAIN DIGITAL MAGAZINE IS PUBLISHED BY

supplychaindigital.com

CONTENTS

Our Regular Upfront Section: 12 Big Picture 14 The Brief 16 Timeline: A brief history of warehouse automation 18 Trailblazer: Kevin Brown 22 Five Minutes With: Keith Fortson

44 EY

How to build autonomous and sustainable supply chains

The Risk & Resilience Conference

Digitalisation is a journey, not a destination

Event Review

Supply Chain

Logistics

Predictive maintenance key for green, profitable and safe businesses

68 SAP

Going the extra mile on sustainability

102

Sustainability

Will fashion obey the letter of the law on sustainability?

The Standard

Achieving financial wellbeing and peace of mind

110 Werfen

The importance of suppliers in the medical industry

Performance. Accelerated. ▶Role-based, practical eLearning for procurement and supply chain teams. Created by experts and powered by science for you to apply in everyday workplace situations. Visit Skill Dynamics

150 Top 10

Supply Chain Influencers

126

Tech & AI

Warehouse management systems, GO!

162 Visa

Visa Europe’s ESG on a roll in Procurement and Supply Chain

134

182

Harnessing eCommerce in Procurement

With enterprise resource planning, less is more

Scottish Government

Asahi Beverages

Meet who runs the world. A BizClik Media Group Brand

In Association with:

TOP 100

Women

SUPPLYCHAIN

NEW ISSUE OUT NOW Read now

Creating Digital Communities

BIG PICTURE

May 2022

The greetings-card giant who loves Mother’s Day more than any mother Kansas City, Missouri

International Mother’s Day is on the second Sunday of May (with the exception of the UK). Naturally, it’s one of the biggest days for the greetings card industry – and for one company in particular: Hallmark. The world’s largest manufacturer of greetings cards, Hallmark has two Kansas-based manufacturing

plants to produce them. With 10,000 cards in its line at any given time, it has a thousands-strong worldwide network of suppliers, including paper mills (pictured), ink distributors and glitter manufacturers. Its upstream supply chain involves thousands of independent retailers and Hallmarkbranded stores.

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THE BRIEF "Supply chains are headed towards digitally networked ecosystems with shared data in the cloud”

BY THE NUMBERS A nice spread: Top 6 IT systems in use (McKinsey)

Glenn Steinberg

Global Supply Chain Leader, EY  READ MORE

“SAP’s Transport Management System helps businesses optimise loads and reduce distances across last-mile operations” Mindy Davis

Digital Supply Chain Global Marketing VP, SAP  READ MORE

“Procurement is not my profession – it is my passion!”

53%

20%

17%

13%

Spreadsheets

E2Open

SAP APO

Blue Yonder/JDA

SAP IBP

In-house

EDITOR'S CHOICE TOP TEN FOOD & DRINK SHORTAGES FROM ALCOHOL TO BABY MILK

With news McDonalds doesn't have enough tomatoes for its burgers, we look at some eye-catching supply chain problems that have affected the food & drinks sector. READ MORE

UKRAINE & SUPPLY CHAIN: ENERGY, FOOD OILS, MICROPROCESSORS

ALISA BORNSTEIN

US pledges to ramp-up liquefied natural gas imports to EU; Poland cuts energy imports from Russia; sunflower oil shortage fuels palm oil ESG concerns.

CPO, Visa Europe 

73%

May 2022

Biden makes it easier to fund supply infrastructure programmes The Biden administration has announced US$2.9bn in funds for freight projects that will draw from three major grant programmes authorised by the Bipartisan Infrastructure Law signed last year. The funding opportunity includes US$1bn from the National Infrastructure Project Assistance (MEGA) programme, US$1.55bn from the Infrastructure for Rebuilding America (INFRA) programme, and US$300mn from the Rural Surface Transportation Grant programme (RURAL). The US Department of Transportation (DOT) says combining the programmes into one, multimodal application process will make it easier for state and local applicants to apply for discretionary grants. “Under this approach, we have the capacity to greenlight more transformational projects that will grow the economy, as well as make our transportation system safer and more resilient,” said US Transportation Secretary Pete Buttigieg.

 SHIPPING LINES Global shipping lines made an operating profit of over US$110bn in 2021, according to analysis by SeaIntelligence - more than the total between 2010 and 2020.

 SPREADSHEETS Despite the growing pace of digital transformation, a McKinsey report found that, for 73% of businesses, spreadsheet programmes are their IT system of choice.

 RUSSIAN GAS The US has offered a major expansion of natural gas shipments to European Union countries - with exports due to triple in coming years - so that the EU can be rid of imported Russian gas within five years.

 CHINA’S ECONOMY China's zero-tolerance approach to COVID-19 meant that just 60 cases was enough to shut down much of Shenzhen - a manufacturing metropolis that’s vital for keeping global supply chains moving. The entirety of Shanghai has been hit with a lockdown.

W I N N E R S MAY 22

L O S E R S

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TIMELINE F O Y R O T S I A BRIEF H

WAREHOUSE AUTOMATION Today’s warehouses can look like something from a sci-fi film, such is the high-tech automation at play these days – yet, warehouse tech began emerging over 120 years ago.

1901

1917

1950s

Steel conveyor belt invented

The forklift truck

Automated Storage and Retrieval System (ASRS) invented

The Swedish (now multinational) engineering company Sandvik invented the steel conveyor belt at the turn of the last century. Belt conveyors proved to be durable and reliable, and became a fixture in automated distribution and warehousing, massively increasing productivity.

May 2022

Australia-based Clark Equipment Company is credited with creating the first forklift truck way back in 1917. They were known as 'Clark Tructractors', and resembled a tractor rather than what we see today. Until the 1950s, warehouses were full of forklifts, with goods typically stored at ground level in huge buildings.

The first ASRS was designed and built by German heavy equipment manufacturer Demag, whose system consisted of racking mounted from the ceiling. ASRSs at this time were giant cranes that traversed large columns of shelves to store and retrieve raw materials. These are still used today by some manufacturers.

1962

1980s

First commercial ARSR goes into operation

Computer controlled ARSRs

The first ARSR machine went into operation in 1962, installed at a Bertelsmann book-club warehouse in Gütersloh, Germany. Though it was manually controlled from a cabin on the mast, it did offer some semblance of automation… via punch-card control.

Computer and IT solutions expanded significantly in the ‘80s, alongside softwarecontrolled warehouse technologies. Sensors, magnets and lasers were brought in to measure distance and position. Stepless drive systems required less energy and new load-handling equipment went deeper into racks, enabling different container and pallet systems to serve new markets.

2000present Automated guided vehicles (AGV) Also called an autonomous mobile robot (AMR), this is a portable robot that follows along marked lines or wires on the floor, or uses radio waves, vision cameras, magnets, or lasers for navigation. They are used to transport heavy materials around warehouses and factories.

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TRAILBLAZER

Kevin Brown

JOB TITLE: EXECUTIVE VICE PRESIDENT, GLOBAL OPERATIONS, & CHIEF SUPPLY CHAIN OFFICER COMPANY: DELL TECHNOLOGIES

Sustainability fixed firmly in his sights

evin Brown is a global Supply Chain Executive with three decades of leadership under his belt across operations, technology, and procurement. Throughout his professional career, Brown has focused on strategic and transformative initiatives, innovations and partnerships to increase efficiencies, savings, and effectiveness.

May 2022

As Executive Vice President of Global Operations and Chief Supply Chain Officer for Dell Technologies, Brown leads an organisation of 7,700 team members across 23 countries with a procurement budget of US$67bn. Brown a lean manufacturing expert During his two decades at Dell, Brown has held leadership positions in several of Dell’s business units, including Chief Procurement Officer. Earlier in his career, he also set up lean manufacturing organisations in the US and Malaysia. Before Dell, Brown spent 10 years in the shipbuilding industry, working on US Department of Defence projects. He holds a BSc in Mechanical Engineering from the University of Massachusetts and an MSc in Engineering Management from George Washington University. Brown was selected as a member of the Council on Foreign Relations, where he serves on the National Committee. He is also a member of the Board of Directors of the Congressional Black Caucus Foundation and a member of the Executive Leadership Council.

“The circular economy is about being a good steward of the environment and a good business practitioner”

supplychaindigital.com

TRAILBLAZER

Sustainability a key area for Brown One key area of professional concern for Brown is sustainability, a subject he has spoken on with passion and knowledge. “Today we mostly operate a linear economy,” he says. “We use raw materials to make goods that get used and then are disposed of as waste. It’s a one-way conveyor belt that pulls resources out of the economy. “Estimates by McKinsey suggest that savings in materials alone could exceed US$1tn a year by 2025, while potentially creating more jobs and innovation. Chief Supply Chain Officers like myself spend the majority of our time at this convergence of supply, cost savings, talent development, and competitive differentiation.” Brown says that changing the way the world approaches the economy “is no small undertaking”. He adds: “There is a lot of built-in inertia that favours our existing linear model. As pressures mount, disruptive leaders are going to find the ways to design, source and build to this circular method. I believe technology will lead the charge.” Tech ‘has way more potential for supply beyond manufacturing’ Brown feels that mobile technology and the Internet of Things (IoT) present great opportunities for the supply chains of the future to be more sustainable. “IoT has long been a part of the manufacturing process,” he says. “From sensors used to monitor environmental conditions to adjusting processes to maintain optimal inventory.” But Brown says the tech has the power to reach way beyond manufacturing, to revolutionise any supply chain. He says: “In agriculture, sensors and edge computing can help farmers optimise 20

May 2022

watering, increase yields, and identify which crops are ready for harvest and reduce spoilage. “That same type of technology, applied to smart traffic solutions, can give drivers realtime access to better routes, while giving planners and managers greater control over traffic flow to assist emergency personnel and reduce congestion. “These same smart solutions yield an even more important means of transitioning to a circular economy.”

“Tech has the power to reach way beyond manufacturing, to revolutionise any supply chain”

Data analytics helps supply collaborate and reduce risk Brown cites big data analytics as another important tool for uncovering inefficiencies and finding hidden opportunities. “Data insights help procurement commodity managers and supply chain managers plan resources, drive collaboration and reduce risks,” he points out. “On the logistics side, moving materials and goods around happens more efficiently, when tapping into weather data, traffic density and

GPS-enabled telematics for route planning and inventory manipulation. He adds: “Data and other geospatial analytics, combined with demand forecasts, taps into the power of the sharing economy’s ability to crowd-source pickup and delivery. “Ultimately, embracing the principles of a circular economy should not be viewed as a choice between being a good steward of the environment and a good business practitioner. It’s both.” supplychaindigital.com

FIVE MINUTES WITH...

KEITH FORTSON

Global Head of ESG at Riskonnect WITH SUPPLY CHAIN RISK MANAGEMENT TEACHING ORGANISATIONS SOME HARSH LESSONS, KEITH FORTSON OF RISKONNECT EXPLAINS WHY IT’S NEVER BEEN MORE MISSION-CRITICAL

Q. TELL US ABOUT YOUR ROLE AT RISKONNECT

» I work as part of our strategy and

innovation team. My primary role is to talk with companies across various industries and help connect the dots in terms of how regulations, compliance issues, and more can all be applicable to ESG.

Q. WHAT SUPPLY CHAIN RISKS DO YOU HELP CUSTOMERS MANAGE?

» Supply chains have become more

global and incredibly complex over the past decade. There was a mass optimisation movement, whereby many companies moved their supply chains overseas to cut costs. Then COVID-19 hit and highlighted the drawbacks of that approach. Many businesses did not have the resilience they once had. If a business focuses its manufacturing operations out of a single location or port, the entire supply chain can be interrupted if there is even just one incident. Organisations also face ESG issues such as forced labour in their supply chains, which can lead to reputational issues. There are also new regulations and compliance considerations, and geopolitical tensions. We help organisations anticipate and manage all these risks. 22

May 2022

Q. CAN YOU HELP AVERT RISK ARISING FROM THE WAR IN UKRAINE?

» A big part of what we do is help

organisations improve transparency across third parties and the supply chain. This is key in situations such as what is going on in Ukraine right now. Most companies have a clear sense of where their tier one suppliers operate, but tiers two and three suppliers are virtually unknown. Our solution provides deep analytics that identify where risks and dependencies lie so organisations can make the best decisions possible. Companies that had a large supplier presence in Ukraine, for example, would have been better prepared to optimise their supply base and select new suppliers, to ensure continuity when the crisis hit.

Q. CAN YOU HELP GAUGE THE RISK OF SCOPE 3 EMISSIONS?

» Gauging the risk of Scope 3

emissions comes back to supply chain transparency and understanding the multiple supplier tiers deep in a supply chain. Our platform gives businesses the functionality to look at their supply base, identify the amount of energy that is going into a facility, and calculate an emissions intensity.

Q. HOW DO YOU HELP BUSINESSES MANAGE ESG COMPLIANCE?

» The Riskonnect platform helps

companies manage all elements of ESG. Many organisations have started pushing for greater supplier diversity and have increased spending with third-party businesses owned by marginalised groups. supplychaindigital.com

FIVE MINUTES WITH...

May 2022

Q. WHAT WILL BE THE RISKS OF THE FUTURE TO SUPPLY

» Geopolitical risk is becoming

more complicated to manage by the day, and I think this will be the source of the biggest risks facing organisations in the future. For the past 30 years, we’ve optimised supply chains based on cost and quality. We’ve given less value to the continuity of supply. This is causing problems from an economic standpoint, given political tensions, pandemics, and other risk events that could pop up at any moment. I expect organisations to continue to build resilience in the face of major geopolitical issues.

Q. BEST BIT OF ADVICE EVER GIVEN?

» That the most important skill you

can learn in life is storytelling. This is what connects us as humans. You could have the best ideas in the world, but if you can’t communicate those ideas in a way others can understand, then your ideas won’t take off.

Q. WHO INSPIRES YOU?

» Admiral Grace Hopper. She

joined the Navy Reserve during WWII and was a pioneer in early computing. There’s one quote of hers I think is so important for companies to consider: The most dangerous phrase in the English language is, ‘We’ve always done it that way’. Such a mentality today for an organisation is a recipe for disaster, and can inhibit growth and performance. supplychaindigital.com

23 - 24 JUNE 2022 STREAMED & IN PERSON TOBACCO DOCK, LONDON

SHAPING THE BUSINESS OF TECHNOLOGY 3,000+

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Join us at TECH LIVE LONDON Showcase your values, products and services to your partners and customers at TECH LIVE LONDON 2022. Brought to you by BizClik Media Group TECH LIVE LONDON, the hybrid event held between 23rd-24th June is broadcast live to the world and incorporates four zone areas of Technology & AI LIVE, Cloud & 5G LIVE, Cyber LIVE plus March8 LIVE in to one event. With a comprehensive content programme featuring senior industry leaders and expert analysts, this is an opportunity to put yourself and your brand in front of key industry decision makers.

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23 - 24 June 2022

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EVENT REVIEW

LIVE

The ‘Risk & Resilience’ Conference WRITTEN BY: SEAN ASHCROFT

BizClik Media Group hosted the Procurement & Supply Chain LIVE show from April 27-28. The hybrid digital event brought global procurement and supply chain leaders together, to share their expertise on mitigating risk and building resilience. 28

May 2022

irst it was the COVID-19 pandemic. Then came the Suez Canal blockage, followed by the Great Resignation. And now there is war in Europe, with Russia’s invasion of Ukraine seeing struggling supply chains take another hit. As if this weren’t enough, inflation is now also running riot. There is a lot of risk in today’s business world, and the need for resilience has rarely been greater. And so it was that some of the world’s leading figures from procurement

and supply chain gathered at London’s iconic Tobacco Dock from April 27-28, to share their experiences and knowledge of how to navigate today’s volatile and unpredictable world. Technology played a significant role in helping save lives during the pandemic, and attendees heard how it continues to play a vital part in mitigating risk and building resilience, as businesses continue to adopt technological change to manage supplier relationships, mitigate risks of cyber attack, encourage seamless and lucrative

procurement processes, and ensure that commerce continues in a sustainable, uninterrupted fashion. The event included two in-person stages and two digital stages for the hundreds of attendees to enjoy. Thousands of virtual attendees were also able to watch remotely. Speakers fielded questions both from their live and remote audiences, with digital viewers posting questions via the event-networking app, Brella. Here is summary of highlights from across the two days. supplychaindigital.com

DIAMOND SPONSOR

TACKLING THE RESILIENT AND SUSTAINABLE SUPPLY CHAIN IMPERATIVE With organisations striving to build resilient and sustainable supply chains after a seemingly endless stream of black swan events, many turn to SAP for their knowledge and expertise.

ohn McNiff is Vice President, Global Center of Excellence focusing on Sustainable Supply Chains and Operations at SAP. He believes these topics are more challenging and in-demand than ever. “Now is the time to become sustainable,” he says. “There is a need to adapt the processes, systems and methods to become more resilient in a time of digitalisation. “Historically supply chains were optimised for cost and customer service, without considering carbon footprint or circularity of products. It is encouraging to see that today there is an increasing focus around sustainability.” McNiff says ultimately organisations recognise that, in an increasingly networked and digitalised environment, visibility and collaboration are key. There are solutions and capabilities that can help – tools like AI, 30

May 2022

Blockchain and IoT become vital enablers for an autonomous supply chain. The challenge is understanding where and how to adopt.

“Right now there's a drive towards the cloud, we can deploy faster, we can set up more agile environments and landscapes, enabling companies to be more responsive. However, interoperability enabled by a consistent business technology platform through the supply chain process remains vital.” John McNiff, Vice President, Global Center of Excellence, Supply Chain

SAP

Bringing Visibility and Agility to Supply Chains

SAP is rightly proud of the solutions that it has brought to the market for a number of years in the supply chain arena. The strategy is to deliver best-of-breed components that are modular and cloudbased, an example being SAP Integrated Business Planning for Supply Chain, a solution adopted by over 1,000 companies globally. “Also, it's super important that it's not just about having one big, integrated stack of products,” he says. “It's about bringing the right capabilities to the right users.” Looking ahead, McNiff believes there will be continued disruption to the supply chain and fresh challenges, such as inflationary pressure, but access to quality data can help mitigate these risks and make the organisation more resilient. “These disruptions will continue and so resilience becomes an imperative and an

operating model. If your information flow is slower than your physical product, you've got a problem. And for me, that's one thing that I think we are trying to help address,” says McNiff. “We need to make sure that the information gets to the right people in a timely fashion so they can make accurate decisions and deliver against dynamic business outcomes.”

SAP CEO: CHRISTIAN KLEIN INDUSTRY: SOFTWARE & TECHNOLOGY HQ: WALLDORF, GERMANY

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EVENT REVIEW

12 - 13 OCT 2022 STREAMED & IN PERSON QEII CENTRE, LONDON

SHAPING THE BUSINESS OF SUPPLY CHAIN

Watch our 2021 Showreel Get tickets

Sponsor opportunities

A BizClik Media Group Event:

EVENT REVIEW

Jonathan Colehower, UST

Risk & Resilience Conference: Day 1 Frank Soudan, SAP SAP’s Head of Digital Supply Chain Industry 4.0 Frank Soudan spoke about the importance of technology in building a resilient supply chain and procurement network “There is no time to lose,” he said. “Organisations will have to invest in order to grow, and the journey to resilience starts with technology.” But he warns: “Beware a quick win. Don’t create a Frankenstein enterprise. Platforms need to integrate with the wider organisation.” Daniel Weise, BCG Daniel Weise, MD and Partner at BCG, spoke about a book he has co-authored with other BCG colleagues, called Profit from the Source. “The world is fundamentally changing,” said Weise.“While the cost of procurement

will be the same, teams will be smaller and much more effective as a result, driving greater value from the investment made.” He said procurement can offer benefits to organisations beyond cost savings which can be derived from three building blocks to maximise value: the CEO, the company, and the company’s ecosystem. Risk & Resilience Panel The panel comprised Daniel Weise of BCG, Interos Resilience Lab VP Geraint John, and David Shepherd, Global Head of Strategic Partners Director and Risk at LSEG, with BizClik Chief Content Officer Scott Birch putting the questions. The panel was asked if risk and resilience is ‘the only story in town’, to which Shepherd said: “No but it is the highest priority now. It is definitely the main story.” “The spotlight is on supply chains as a profession, which presents an opportunity for us to step up,” added John. supplychaindigital.com

UST Diamond Editorial International retail group focused on fast fashion adopts supply chain digitization

The retail group recognized the need to evolve its supply chain to keep pace with the rapidly changing preferences and demands of the contemporary shopper. The retail group soon realized that it was jeopardizing customer loyalty and retention by being unable to react to its customers' needs quickly enough.

THE CHALLENGE Lack of visibility and coordination among partners.

SOLUTION UST Omni™ provided clear visibility into the group's global end-to-end supply chain operations by connecting all trading partners on a single network and removing the manual processes inhibiting the retailer's ability to speed up its supply chain.

RESULTS Following the implementation of UST Omni™, the company was able to demonstrate some significant improvements to key operational measures:

UST 30% Diamond Editorial

Since the company's team could collaborate in real-time on one digitized platform with product vendors, agents, and logistics providers, it could to make more insightful decisions on where and how it bought and moved its products to meet its customers' expectations.

Reduction in lead time from product concept to store (25 weeks)

91% Full sell-through of seasonal ranges (increased from 88% to 91%)

32% Reduction in cash conversion cycle ust.com

EVENT REVIEW

NHS supplier panel

May 2022

David Loseby, Aquitaine

EVENT REVIEW

Asked if sustainability was taking a back seat to risk and resilience, Shepherd disagreed, saying the ESG story “is incredibly strong” and that sustainability “is becoming a mature topic.” George Laurie, Forrester Research Laurie - VP and Principal Analyst at Forrester Research - took to the Main Stage to deliver his keynote on how smart manufacturing technology is reshaping global trade patterns. He said: “Rigid supply chains must become adaptable and collaborative supply networks. Smart organisations build test responses to risk into their operations to drive resilience and maintain a competitive advantage when they occur.” Jonathan Colehower, UST Colehower is Global Supply Chain Strategy Practice Lead at UST, and he discussed the importance of private trading networks. He asked why the world was so shocked by major events, such as the pandemic and the Suez blockage. “We’ve had pandemics before, and the Suez has been blocked five times before.” The best response to such disruption, he said, was private trading networks, in which all tiers of the value chain have visibility of one another Risk & Resilience Conference: Day 2 Sheri Hinish, IBM Opening the second day on the main stage was Sheri Hinish, Executive Partner, IBM Sustainable Supply Chain, Finance and Circularity. Hinish - widely known as ‘The Supply Chain Queen’ discussed how businesses can break down barriers to environmental sustainability.

Sheri Hinish, IBM “Sustainability is not someone else's problem,” she said. “Over half of CEOs believe that business leaders must take responsibility for the business impact on communities in which they operate.” She said: “Sustainability trailblazers and strivers are breaking the barriers, and with digitalisation, organisations can make sustainability visible, actionable and operational.” Panel discussion: Risk mitigation in the supply chain BizClik’s Scott Birch was joined by: Richard Jowers, Director at SAP; PwC Partner Tom Woodham; and Andrea Ricciarelli, SAP Domain Advisor of Supply Chain Logistics and Sustainability. supplychaindigital.com

DIAMOND SPONSOR

BUILD RESILIENCE WITH GEP As a global leader in supply chain and procurement technology and consulting, GEP helps Fortune 500 and Global 2000 enterprises worldwide create and manage agile, resilient supply chains that drive sustainable growth.

gile, flexible, resilient — today’s supply chain and procurement organizations must be all this and more to adapt to disruptions such as inflation, supply shortages, political instability and climaterelated risks. Add to that the pressures of delivering amid rapidly changing market dynamics and supply chain and procurement leaders have their work cut out for them.

IS YOUR ENTERPRISE PREPARED FOR THE NEXT DISRUPTION?

Today’s enterprises need highly responsive and flexible supply chains to create and maintain competitive advantage amid an increasingly volatile, risk-prone business environment. With strategic insights from subject matter experts and a low-code, AI-powered unified platform, GEP enables 38

May 2022

companies to develop high-performance, intelligent supply chains that can adapt to changing business needs and help meet critical ESG goals.

KEY CAPABILITIES FOR RESILIENCE

A resilient supply chain can not only help enterprises respond swiftly and effectively to economic, technological and market disruptions, but also gain a competitive advantage. The goal of a resilient supply chain is to minimize the negative impacts of these disruptions on revenues, costs and customers. GEP’s unified end-to-end platform helps build resilience by offering realtime visibility; AI-informed insights and intelligence; and multi-tier collaboration. GEP SOFTWARE integrates supply chain and procurement to seamlessly connect

GEP

GEP: SMART Technology at GEP

your data, processes and partners across your supply network. GEP helps enterprises create and manage high-performing procurement and supply chain organizations that can mitigate risks and drive sustainable and profitable growth.

GEP sustainability team is well-positioned to accelerate climate-related reporting, particularly for Scope 3 GHG emissions.

TURN IDEAS INTO ACTION. TALK TO GEP.

As the world leaders and governing bodies pivot toward a more sustainable planet, business leaders, pressured by their investors and boards and policy changes, are adopting specific ESG strategies and deadlines to achieve net-zero and supply chain sustainability goals. Having analyzed trillions of spend dollars and hundreds of billions of supplier contracts on behalf of our customers, the

GEP CEO: SUBHASH MAKHIJA INDUSTRY: SOFTWARE, MANAGEMENT & CONSULTING HQ: NEW JERSEY, USA

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EVENT REVIEW

L-R: Tom Woodham, PwC; Andrea Ricciarelli, SAP; Richard Jowers, SAP; Scott Birch, BizClik

Asked how technology can help to mitigate risk, Woodham stressed that “technology is not the only answer”. He added: “People, processes and data are also key, but technology can certainly help with the identification of issues before they exist.” Modern procurement has a key role in mitigating risk, said Jowers. “With procurement sitting on vast quantities of data the function will be crucial to help suppliers tackle the pressures to meet requirements,” he said. 40

May 2022

Looking to the future, Ricciarelli said: “Everything that has happened in the past three years was unexpected, so emphasis will be placed on whether an organisation has enough speed and agility to react to the future challenges.” Mark Perera, Vizibl Speaking about how supplier collaboration can help solve procurement's ‘carbon crisis’ Vizibl CEO Perera said: “There is no greater crisis than climate. We’re not far enough along

EVENT REVIEW

the journey to achieve 2030 goals. We need to make a more of a collective effort to increase the pace of change. “Pressures are rising to address value chain impact. We don’t have time to wait for the perfect data or to construct a perfect baseline. Control the controllable, and prioritise around what you do know.” Stephany Lapierre, TealBook Wrapping up the two-day event was Lapierre, CEO and Founder of supplier-data specialist

Tealbook. She discussed how to transform procurement with dynamic supplier data. “We all have a data problem,” she began. “Just because you have implemented a technology doesn’t mean you will have clean data. It’s poor data quality that leads to failed digital transformation.” She added: “The supplier base is the biggest untapped asset. If optimised properly, it can deliver hundreds of millions of dollars in value, provided that supplier data is dynamic and available across systems and people.” supplychaindigital.com

DIAMOND SPONSOR

VISUALISING YOUR SUPPLY CHAIN See Threats Before They Become Real

VISUALISING RISK

Interos is leading a revolution to reinvent and recharge the world of global commerce and trade. Its breakthrough SaaS platform leverages the power of artificial intelligence and the world’s largest database of supplier relationships to provide unprecedented visibility into global supply chains, down to the nth tier. By utilising AI, Interos helps reduce months of backward-looking manual spreadsheets that are still too often used to track supplier relationships. While it once was normal to check in with suppliers once a year, organisations now are looking for more enhanced tools to map, monitor and model supply chain relationships continuously and in real time. Interos creates instant visualisations with continuous mapping, monitoring and modelling tools. It ingests and analyses 42

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tens of thousands of public and proprietary sources to pre-emptively identify and eliminate risks before they occur. The company’s platform monitors for both physical and digital supply chain issues and assesses supply chain risk factors across six critical areas– finance, operations, regulatory, geopolitical, ESG, and cyber.

MAKING THE SUB-TIER VISIBLE

Interos has eliminated last-mile issues by using the same profiling criteria for all 345mn entities on its platform and the billions of inter-relationships among those entities. Never has the need for greater visibility been such an imperative. Today, supply chain disruptions cost large companies, on average, US $184M annually and among 83% of those affected report material reputational damage. Demand for Interos’ breakthrough solution

INTEROS

Jennifer Bisceglie, CEO & Founder Interos

is soaring (300%+ growth in the past two years) and comes at a time when billions of consumers around the world are feeling the effects of a severely strained global supply chain firsthand. We need intelligent tools to build agility and resilience into supply chains to achieve trust and transparency, and to prevent the

next crisis. Interos has cracked the code for protecting the supply chains of the world’s largest companies and governments with its first-in-class, AI-powered, multi-factor, multitier, third-party risk management platform.

Interos CEO: JENNIFER BISCEGLIE INDUSTRY: INFORMATION TECHNOLOGY & SERVICES HQ: WASHINGTON, USA is the average annual revenue loss companies face from supply chain disruption

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How to build autonomous and sustainable supply chains WRITTEN BY: SEAN ASHCROFT PRODUCED BY: GLEN WHITE 44

May 2022

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Glenn Steinberg shares insight into how EY teams are building the next generation of resilient, sustainable and autonomous supply chains

he pandemic has forever rewritten the rulebook for the global supply-and-demand economy, a delicate ecosystem that, until early 2020, was predicated on efficiency and productivity above all else. Every industry has had to come to terms with titanic shifts during the pandemic: finance now faces a touch-and-go cashless future, while retail has become omnichannelled and next-day-delivery by default. Underpinning each of these pivots is the supply chain, where the only constant is adaptation. Ask any chief supply chain officer (CSCO) how the pandemic has impacted their day-to-day life and, unprecedented demand aside, they’ll tell you it’s been largely business as usual, but with a significant twist. “What’s interesting is that the pandemic hasn’t necessarily created any new challenges for supply chains; it’s just magnified the problems that already existed,” says Glenn A. Steinberg, EY Global Supply Chain Leader. “In the US, for example, some estimates say we are short by about 80,000 truck drivers at this time. But three years ago, we were also short, just by about 61,000.” Adaptation has been a career-defining concept for Steinberg, a former executive at GE, IBM and another Big Four who for more than 30 years has helped organizations evolve and thrive throughout periods of boom and bust.

May 2022

Example of an image caption supplychaindigital.com

“If you want to be successful in this industry, you have to have a thirst for learning – and that doesn’t end. Just continually stay out of your comfort zone,” he says. “If I look back on my career, all the critical turning points came when I got out of my comfort zone and took on something new. From the early days of process and strategy, to the rise of digital and ERP [enterprise resource planning] implementation, I still leverage those learnings, 20 years later.” It is a mindset and lifestyle that Steinberg fully embraces, shared with thousands of professionals and students each year. He is a frequent and in-demand guest lecturer of MBA students at Columbia University. In conjunction with Columbia Business School, he helps lead a quarterly roundtable for CSCOs to share insights and experiences of the biggest 48

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issues they face, from global tax and tariffs to sustainability, digital supply chain and the future of work. He also sits on the advisory board of Columbia Business School’s W. Edwards Deming center for Quality, Productivity, and Competitiveness, whose mission is to train the next generation of managers, upskill the senior executives of today and support vital research. Steinberg’s commitment to learning and sharing knowledge have also earned him a reputation as a trusted and valued advisor to the world’s biggest economies. When the pandemic broadsided governments around the world, Steinberg and his team were contacted by governments in Germany, the UK, the US and Australia. The assistance provided by Steinberg and EY teams was vital in one of the most acute periods of disruption in living memory.

“ EY TEAMS, AT A GLOBAL LEVEL, ARE VERY FOCUSED ON DOING CUTTING-EDGE WORK WITH EMERGING TECHNOLOGIES. WE’RE DOING INNOVATIVE ENGAGEMENTS WITH AI AND BLOCKCHAIN, DIGITAL TWINS AND SMART FACTORIES” GLENN STEINBERG

GLOBAL SUPPLY CHAIN LEADER, EY

Today, Steinberg leads more than 5,000 supply chain consultants across the globe, guiding clients by offering supply chain strategy, procurement, manufacturing, logistics and fulfilment, as well as planning and technology solutions. It is a broad remit that demands collaboration, and he’s proud of the “collegial” culture he’s helped shape to foster an environment where it flourishes. “We are focused on taking care of each other, collaborating and doing what’s right for our clients,” he says. “I want this to be a place where everyone can say, ‘I feel valued I feel understood. I belong. I feel cared for and I can grow.’ This is the culture we have developed.” “EY teams at a global level are very focused on doing cutting-edge work with emerging technologies,” Steinberg adds. "We’re doing innovative engagements with AI and blockchain, digital twins and smart factories.” He adds that his team is “doing some of the most purposeful work on the planet”, carrying out shop floor digital manufacturing work at a global pharmaceutical company delivering lifesaving medicines and providing a trusted data-exchange platform and suite of applications that links all key players in the cell and gene therapy ecosystem. “We are also working with one of the largest consumer products companies in the world, helping to decarbonise their value chain,” he adds. “This is really purposeful work that our people can be proud of.” As much of the world begins to rediscover some form of regular cadence, Steinberg and his global team are turning their focus to defining the future of the supply chain. It's the start of what Steinberg refers to as an "investment supercycle", which has enormous potential for positive change. supplychaindigital.com

ey.com/supplychain

What if operational disruptions became growth inspirations?

“Supply chain reinvention is in vogue. It’s an exciting time for C-suites and CSCOs. The multiplicity of demands that are facing CSCOs is incredible. It used to be enough just to balance cost, service, quality and speed. Now you need to add resilience and sustainability into your supply chain.” As global powers continue to vie for cultural and economic influence, tariffs, incentives and sabre-rattling will continue to impact supply chains. Sustainability, visibility and resilience will come to define the new standard for supply chain excellence in a world where, Steinberg thinks, “something broader is at play”. “The world order is changing from a unipolar economic order to a multipolar one,” Steinberg continues. “This has a tremendous impact on the strategic architectures of the world’s supply chains. As a result, virtually every company in the world is re-evaluating their supply chain 52

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“ THE PANDEMIC HASN’T NECESSARILY CREATED ANY NEW CHALLENGES FOR SUPPLY CHAINS; IT’S JUST MAGNIFIED THE PROBLEMS THAT ALREADY EXISTED” GLENN STEINBERG

GLOBAL SUPPLY CHAIN LEADER, EY

GLENN STEINBERG TITLE: GLOBAL SUPPLY CHAIN LEADER INDUSTRY: CONSULTING LOCATION: UNITED STATES

EXECUTIVE BIO

Glenn serves as EY Global Supply Chain and Operations Leader. In his role, he helps drive high-impact strategies and business execution across the Fortune 500. He is a seasoned professional with extensive supply chain and operations experience. Prior to joining EY, he led many supply chain transformations in several leadership roles. He received an MBA in Finance and Operations Management from Columbia University and an Electrical Engineering degree from Union College. How Glenn is building a better working world: “I am focused on helping clients and internal teams navigate complexity with confidence. I am purposefully creating a safe place where our people can ask questions and collaborate – where our people become business consultants moving beyond functional professionals. I am supporting a new generation of leader equipped with digital competencies and focused on innovation.”

footprint, determining where best to place their physical assets such as manufacturing facilities, warehouses and more.” Five key themes for resilient supply chains “Resilience is a concept that is multifaceted, with most people not understanding how broad and deep it really is,” he says. “End-toend visibility is foundational to a resilient supply chain, with agility built into the extended chain to enable action.” Steinberg says five key themes of resilience have emerged in the course of stress testing clients’ supply chains to uncover both vulnerability and opportunity: • Embedding end-to-end visibility by leveraging technologies such as internet of things, digital twins, simulation software, analytics, AI (including machine learning) and alerts for risk monitoring. • Creating agile networks by re-evaluating the geographical and strategic architecture of the supply chain. “It is a simple question to ask what should be local, regional or global, but in a complex partner ecosystem, reconciling a network of warehouses, manufacturing plants, logistics, procurement and the other pillars of the supply chain is never easy.” • Securing alternative sources of supply. “This means not only spreading your bets among additional suppliers, but also including diversity, equity and inclusiveness (DEI) commitments in your sourcing efforts.” • Developing a resilient workforce “by preparing employees to have the skills required in the next five years and embedding a problem-solving mindset into the ways of working right down to the shop floor machine operators. 54

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• Building a trusted, secure supply network. “In an era where everything is interconnected by technology, cybersecurity is paramount if a supply chain is going to be resilient.” Steinberg’s other focus is supply chain sustainability, and he says innovation around this important topic goes hand-in-hand with the fundamentals of resilient supply chains. “A resilient supply chain requires that you embed end-to-end visibility, simulation and risk monitoring into your business, while a sustainable supply chain requires traceability, visibility and disclosure. These are two different, but related, topics that are being worked on in earnest by companies across the globe. Similarly, resilience requires that a company secure alternative sources of supply to be ready for the next

disruption, while sustainable supply chain management requires sustainable and diverse sourcing strategies.” Supply chain in the C-suite The final major post-pandemic shift in supply chain is the rise of the CSCO and the elevation of supply chain as a constant boardroom agenda item. Some draw parallels to the rise of the chief information officer in the mid-2000s: once a nice-to-have advantage that is now an imperative skill set for every growing business. “The best CEOs are fully versed in the importance of technology,” Steinberg says. “They have to stay abreast of it as it’s moving very fast, and, otherwise, they can miss a pivot and easily be disrupted. Now CEOs, frankly, need to understand supply chains as well. It used to be a cost of doing business, but now it’s in the boardroom, and if you do it

right, it can be a competitive advantage and a revenue growth driver. For example, think about the largest online retailer, they can get you the product the next day, maybe even the same day. That’s all about using the supply chain as an engine for growth by quickly meeting customer needs. That is a differential competitive advantage.” Supply chain expertise can also come from sources beyond your company’s four walls, Steinberg points out, through a partner ecosystem where companies can collaborate and gain scale by accessing the talent of thousands of talented supply chain professionals globally. This, he says, is why the EY organization collaborates with best-of-breed innovators: industry solutions providers such as SAP and Blue Yonder, and technology giant like Microsoft. supplychaindigital.com

ey.com/supplychain

What if resiliency isn’t about withstanding today but envisioning tomorrow?

May 2022

“ SUPPLY CHAINS ARE HEADED TOWARDS DIGITALLY NETWORKED ECOSYSTEMS WITH SHARED DATA IN THE CLOUD” GLENN STEINBERG

GLOBAL SUPPLY CHAIN LEADER, EY

Typical of this spirit of collaboration is the EY teams collaboration with Nottingham-Spirk, a Cleveland, Ohio, innovation specialist that acts as its supply chain innovation hub. It has a center to demonstrate how its own technologies and EY assets work together to solve client business problems. “But I have to say, above all in the supply chain space, Proctor & Gamble (P&G), is a very important collaborator for us,” Steinberg says. “They are annually rated one of the top five supply chains in the industry by leading analysts. We formed a global arrangement with P&G, so while our competitors can tell you what great looks like, we can show you what great looks like. “We bring EY clients to P&G sites; we walk the factory and talk to the machine operators. We can embed P&G leaders on our projects, and we have access to their IP [intellectual property]. It’s been wildly successful in helping EY clients see into the future and what the art of the possible really is.”

Where is this all headed? Which leads Steinberg to the question he’s asked most often by clients: what is possible in the future, and where is this all headed? “There’s all this disruption,” he says. “We’ve got geopolitics shaping supply chains for years to come. We’ve got industry 4.0, and the interconnected society we’re living in. Consumer buying patterns are uneven and shifting, providing the opportunity for some companies to tap into analyzing real-time data to match supply and demand. And there is disruption from events ranging from weather to global semiconductor shortages. It is no wonder why CSCOs and the C-suite want to know how all these things will converge.” EY teams research points to the rise of digital and fully autonomous supply chains. EY teams researchers surveyed 500 seniorlevel executives at organizations of more

supplychaindigital.com sustainabilitymag.com

than US$1b in size. One key finding is that 2025 will be the year mostly autonomous supply chains will begin to emerge to replace the hybrid processes common today. “We’re already on a path to an autonomous future. We have selfdriving cars, where people’s lives are at stake. There’s no reason we can’t have an autonomous and self-organising supply chain. In the end, it’s just about mastering the power of data.” It’s an exciting future, a journey that EY clients are keen to embark upon – and for good reason. “We’re already doing projects to help clients get to their future state, to show them what the roadmap for a digitally networked and autonomous supply chain looks like. Consider this: today, a change in customer demand has to work its way linearly back through the supply chain to get to the OEM [original equipment manufacturer], the supplier, to the supplier’s supplier, all through the tiers. That could take months before people change their production plans. “Supply chains are headed towards digitally networked ecosystems with shared data in the cloud,” he adds. “This way, everyone can see what’s happening now, immediately adjust to real-time events and even predict what happens next. Finally, we have all the tools and technologies at our fingertips to make this a reality. There has never been a better time to be a supply chain professional than right now.” The views reflected in this article are the views of the author and do not necessarily reflect the views of the global EY organization or its member firms.

May 2022

“ SUPPLY CHAIN REINVENTION IS IN VOGUE. IT’S AN EXCITING TIME FOR C-SUITES AND CSCOs” GLENN STEINBERG

GLOBAL SUPPLY CHAIN LEADER, EY

supplychaindigital.com

DIGITALISATION

IS A JOURNEY, NOT A DESTINATION

May 2022

SUPPLY CHAIN

Most supply chain professionals know the benefits of digitalisation, so why is it so difficult to get such programmes off the ground?

WRITTEN BY: SEAN ASHCROFT

Amy Shortman (AS) VP Product Marketing, Overhaul

Matt Gunn (MG) Chief Marketing Officer, Slync.io

re-pandemic, businesses already had a heightened interest in advanced analytics, so it was hardly a shock that COVID19 should be the catalyst for widespread end-to-end digitalisation of supply-chain processes. According to a 2020 McKinsey report into how COVID has shaped supply chains, almost every company is either planning to invest in full-scale digitalisation or already has, with construction the only sector not embracing digital transformation en masse. Today’s ongoing digitalisation programmes mostly focus on visibility, as companies strive for a better picture of the real-time performance of their supply chains. Here, we get the views of two logistics tech professionals on what digital transformation of the supply chain means for them. One is Amy Shortman (AS), VP Product Marketing, Overhaul, a supply chain risk management software company. The other is Matt Gunn (MG), Chief Marketing Officer with Slync.io, which is transforming the logistics industry with solutions built to eliminate wasted time, effort, and data. supplychaindigital.com

“ TealBook has been proven to make an even bigger impact on our customers’ supplier diversity goals, increasing targets by as much as 100%, representing

HUNDREDS OF MILLIONS in additional diverse spend.” Stephany Lapierre Founder + CEO, TealBook

LEARN MORE

SUPPLY CHAIN

“ With digitalisation, it's critical to have clearly defined objectives and goals” AMY SHORTMAN

VP PRODUCT MARKETING, OVERHAUL

What are the biggest barriers to digitalisation? AS: The most complex issue is standardisation of processes across the globe. Global supply chains involve multiple stakeholders, and they often use different systems. Some still use paper-based documentation and tools such as Excel to manage complex tasks that it was never designed for. Others who are further along the digital transformation journey can find themselves using disparate systems or solutions that are not a fit for their business goals. We're finding that, at the moment within the industry, many companies focusing on their digital journey often don't know where to start or select the wrong vendors, and this leads to disillusionment.

MG: Barriers have less to do with technology than they do the fear or inability to change. For the most part, logistics operators are simply trying to keep up with what’s in front of them at any given moment. They work in email, across multiple systems and documents, and manually parse and re-enter data. There’s not time to stop and change processes that, while inefficient, are at least very familiar. Meanwhile, logistics leaders face the same issues that many corporate execs confront each day. They are dealing with effects like the Great Resignation, customers who are unhappy with shipping delays and high costs, and ongoing constraints with carrier capacity. Trying to reinvent or digitalise a process during a crisis is daunting, and ends up getting pushed farther down the list of priorities. supplychaindigital.com

“ Digital transformation creates an opportunity to make better business decisions” AMY SHORTMAN

VP PRODUCT MARKETING, OVERHAUL

May 2022

How can these barriers best be overcome? AS: Those who succeed know what problems they are looking to solve and have a clear vision of how technology will support them, adding value to the bottom line. To extract value, a business needs to convert its process to digital and adapt business operations to extract the possibilities that stem from digitalisation. It's critical to have clearly defined objectives and goals and ensure changemanagement methods are used in the implementation of digitalisation technology. A systematic approach to the transition or transformation of the organisation's process is required to support the change, control

SUPPLY CHAIN

DB Schenker leads logistics digital transformation

the change, and help people adapt to the change. MG: It’s important not to try to do everything at once. Digitalisation isn’t a switch you can flip and everything is magically automated. The key is to bite small and chew fast. Find technology partners that can help you identify discrete areas of need where you can digitise a process with minimal disruption to your day-to-day operations. What you’ll often find is that, with the right technology, each new project you undertake becomes a little bit easier – either because you’ve begun to build a strong digital foundation or because those early

Leading supply chain management and logistics solutions provider DB Schenker was the first thirdparty logistics (3PL) organisation to deploy Infor Nexus Control Center, a supply chain control tower built upon Infor Nexus, a multi-enterprise business network. DB Schenker - which has 74,500 employees in 2,100 locations across 130 countries - has now deepened its relationship with Nexus provider, Infor, to leverage Nexus technology to deliver a comprehensive supply chain solution to its customers. This means organisations will benefit from a digital supply chain management solution that provides both supplier collaboration and shipping automation, as well as easier cost-, factory-, and transportationmanagement. This in turn will help reduce inventory, improve supply chain resilience, cut costs, and increase operational reliability. “We now offer a full range of operational capabilities and a true end-to-end solution,” says Joachim Schaut, DB Schenker Global Intercontinental Supply Chain Solutions VP. “This will help optimise lead times, reduce costs, and improve responses to sudden external influences. We can generate more precise container arrival times, as well as real-time updates of shipments.”

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SUPPLY CHAIN

efforts start buying you time to undertake something bigger. Is collaboration important for digitalisation programmes? AS: Data sharing and transparency are essential to maintain supply chain flows. Supply chain software solutions should be able to ingest data in various forms, including digital. For example, a delay notification so the warehouse can manage inventory expectations from production and communicate proactively. The digitalisation of the data can be transformative, providing data-driven insights to supply chain stakeholders of the information that matters most to them. If a business could digitalise in just one area, what would you recommend? AS: After the past few years, we have all felt the impact at a consumer level of supply chain disruptions. I would start with supply chain risk management and use the insights to communicate status updates up and downstream proactively. Leveraging data for transparency, visibility, situational risk-management - and incorporating these things using realtime data - will reduce risk in the supply chain, which is what we’re trying to do whether that's the risk of theft or a failure of temperature control. The ultimate goal is to deliver safe and effective products. MG: The biggest opportunity for digitalisation exists in the way multiple parties in a supply chain interact with one another to keep freight moving. Because so many supply chains rely on ocean shipping, it’s worth looking for opportunities to digitalise processes there. By focusing on the processes and paperwork involved in ocean freight, 66

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SUPPLY CHAIN

“ The biggest barrier to digitalisation is the fear, or inability, to change” MATT GUNN

CHIEF MARKETING OFFICER, SLYNC.IO

companies can quickly accelerate processes, reduce errors, and produce better, more profitable outcomes. And by centralising the data involved with ocean booking, companies can gain a better picture of their carriers’ performance along the way. Which area of supply chain is most difficult to digitalise? AS: Any area where there are multiple parties involved, because every company has a different way of operating. In ocean shipping for example, each carrier, location, or party has a different way of booking a shipping order and confirming freight will be loaded onto a vessel. Because of this, operators have to sift through hundreds of emails each day, review non-standardised documentation, and assess which steps they need to take to ensure the right cargo goes to the right place at the right time. Meanwhile, it’s hard to predict exactly when a supplier will have cargo ready for a shipment, whether the right equipment is available to them, and what steps need to be taken in order for it to reach its destination. All of this makes for a complex process that very few people or systems are well equipped to manage. Because so much data exists in many different places or forms of communication, the process remains fairly archaic by today’s standards. What is the biggest benefit of digitalisation? AS: Transparency. Digital transformation creates the opportunity to make better business decisions. It creates more efficient workflows, increases data security, improves customer service, and brings information into a central location where it can be accessed, analysed, and the value extracted. supplychaindigital.com

DELIVER & OPERATE REPORT:

SAP going the extra mile on sustainability AD FEATURE WRITTEN BY: SEAN ASHCROFT 68

May 2022

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SAP REPORT

EXECUTIVE INTERVIEW

SAP going the extra mile on sustainability SAP’s software solutions are helping its customers improve ESG and sustainability performance in logistics, last mile and asset management.

missions from logistics businesses during the delivery of goods have been on an upward trajectory, increasing by 1.9% annually since 2000. Most of this can be attributed to the rise of globalisation and increased demand for consumer goods. Investors, regulators, consumers and employees are all starting to demand sustainably derived products and services with a smaller environmental footprint across the entire supply chain, opening up a world of possibilities for businesses of all sizes and across all sectors. Helping businesses harness the immense power of such technology is SAP, whose digital solutions are designed to help reinvent the flow of goods,making it smarter, faster and cleaner. In today’s global supply chain, goods 70

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MINDY DAVIS

might travel half-way around the world before reaching their final destination, which can have a large impact on a company's carbon footprint. Add to this the increase in e-commerce over the past two years, and the resulting need for directto-consumer shipments, and again, the emissions increase exponentially. Transportation is one of the areas in which getting to zero emissions is a big goal. That includes reducing travel distances and increasing efficiency. It’s not uncommon, for example, for trucks to return empty once a delivery has been completed. Such trips are called ‘deadhead miles’ or ‘empty miles’. SAP helps businesses optimise loads and reduce mileage across operations, making such deliveries more sustainable, end to end - from raw materials, to factory, to warehouse to doorstep.

DELIVER & OPERATE

SAP’s Transport Management System helps businesses optimise loads and reduce distances across last-mile operations IT’S ABOUT ZERO EMISSIONS, WASTE AND INEQUALITY “It’s about zero emissions, zero waste and zero inequality,” explains Mindy Davis, SAP Digital Supply Chain Global Marketing VP. Shippers need tools to adapt to dynamic market conditions so they can plan and execute on freight, and track

and settle it in tight collaboration with carriers. Where capacity is unexpectedly scarce, shippers need the ability to secure resources and spot-pricing where needed the most, to optimise travel time on the road, air, and sea. SAP can help shippers optimise loads and reduce drive time and emissions. Jointly with partners, SAP can now supplychaindigital.com

SAP REPORT

capture engine emissions and bring that data back into a collaborative network. “We can optimise based on CO2 and not just cost and time,” says Davis.

and also the exchange of documents with key business partners. In this way, its customers improve transparency across DIGITAL the value chain. SUPPLY CHAIN Davis says: “We have software that AND OPERATION facilitates data exchange between supply SUSTAINABLE LOGISTICS IS A chain participants such as shippers, COLLABORATIVE EFFORT Logistics is a complex undertaking. logistics service providers and buyers. It manages the movement of raw This is at a global level, meaning they can leverage synergies, gain a common materials, intermediate products, understanding, and reach process and packaging across the globe to optimisation for decreased costs and manufacturing facilities, as well as the distribution of products from origin to improved capacity utilisation.” consumption. An open logistics network She adds: “In an increasingly volatile global business environment, customers that connects business partners for inter-company collaboration and insight need a network to help manage exceptions and foster productivity will not only optimise connections, but ultimately reduce emissions. through easier supply chain collaboration, based on real-time data and predictive SAP works to provide a central entryintelligence.” point to manage logistics transactions, 72

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DELIVER & OPERATE

“Many of our customers are dedicated to supporting business processes that save time and valuable resources,” adds Davis. “With distribution such a critical component of operations, SAP can boost the accuracy and speed of shipments, across order creation, transportation planning and freight payment.” One SAP customer is Roger Perala, Senior Director of Business Systems, United Sugars Corporation. Perala says: “Using SAP solutions, we’ve increased our freight spend

Customers can achieve process optimisation, for decreased costs and improved capacity utilisation savings, improved process automation and information flow, and improved our data management. Today, we are a more efficient shipper, and that saves us time and resources.” Moving on to helping customers address waste, Davis says SAP works with customers to manage returnable packaging, with a view to establishing circular flows for items such as pallets. “SAP’s solutions capture ownership, inventory and rental arrangement, and help customers reduce packaging waste,” she explains.

MINDY DAVIS TITLE: VICE PRESIDENT, GLOBAL MARKETING, SAP DIGITAL SUPPLY CHAIN Mindy Davis is passionate about building world class teams to successfully launch exceptional products. Mindy is a strategic thought leader and subject matter expert, possessing a depth and breadth of marketing and business knowledge to provide sound, innovative strategic leadership and initiatives while ensuring the preservation of and link between product, industry, field and marketing is maintained. Mindy’s most recent accomplishments include hosting a very well received LinkedIn Live series for Women in Supply Chain. Davis has been with SAP for 17 years, and has seen an enormous amount of change in that time - but no change more drastic than that which occurred during the pandemic. She says: "Many customers were unable to optimise supply with demand. “We were able to help them dig them out of this hole out by keeping inventory moving with software solutions. And it was all done in realtime, working remotely."

SAP REPORT

Davis recalls working in a warehouse years ago, developing a pallet redistribution programme to ensure pallets were cleared from the warehouse floor in order to improve employee safety and reduce incidents, returned, reused, and recycled. “It was all in an AS 400 system,” says Davis. So yes, I’m dating myself!” She adds that much of the waste inherent in moving products via pallets can be eliminated by digitising the process. Davis continues: “As for inequality, we have the ability to track products back through the value chain to product origin. Our software captures data from all the parties that interacted with any given product, using tamper-proof blockchain for security. “With this, customers can seamlessly check product provenance by, for

May 2022

Customers can check product provenance by scanning a can or a package of coffee to see where it originated example, simply scanning a can or a package of coffee to see where it originated, or if it was traded fairly.” SAP HELPING CUSTOMERS EXCEL ON ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) TARGETS SAP’s customers - and their suppliers can certainly see the difference when it comes to ESG. A consumer coffee brand well-known for hand-roasted and specialty coffees across Europe, is using SAP solutions to improve their sustainability practices. “As part of their sustainability ambitions, this brand wanted to make their coffee supply chain more transparent, both to themselves and their consumers,” explains Davis. “The goal was to achieve greater consumer trust and engagement, and also to be recognised as a sustainable brand by having full traceability on the coffee value chain.” This coffee producer uses SAP solutions to trace materials end-toend across their supply chain, and this is seamlessly integrated with the company’s IT landscape. “At the farm level, they source highquality coffee from smallholder farmers

DELIVER & OPERATE

via their own smartphone app,” says Davis, who adds that each transaction is geo-tagged and time stamped, and that data is uploaded into SAP “so they can now capture and analyse the batch genealogy, from farm to roaster.” Sustainability and ESG requirements now touch on every aspect of a company’s operations, including how it manages and optimises the performance of its assets. “On this front, it’s all about revolutionising equipment ROI, says Davis. “Every business trying to reduce environmental impact wants to run their equipment at optimal performance to minimise energy consumption and extend their lifespan, as well as minimise environmental risk.” She adds: “We help customers reduce costs by using artificial intelligence (AI), analytics and insight, to pinpoint what needs to be done, before there’s a problem. We then mobilise a focused service-response for sustainable service delivery.

We help customers reduce costs by using artificial intelligence, analytics and insight, to pinpoint what needs to be done, before there’s a problem

“Workforce scheduling and dispatching is also optimised and carried out in real time, using AI tools. Analytics, reports and dashboards help to recognise issues, and this allows businesses to resolve issues quickly.” SAP also assists with the provision of a mobile field service, which manages existing workloads “whether you’re online, offline, or only occasionally connected.” One of the reasons SAP has an allencompassing view of sustainability issues is because it works with companies across 25 industries around the world. One is mining. One mining customer, based in Phoenix, Arizona, has more than 500 technicians across its supply chain, and supplychaindigital.com

SAP REPORT

The goal is to find the shortest route using real-time information SAP has helped them both improve and increase equipment availability, as well as increase the efficiency of its maintenance plan by 25%. And then there’s discrete manufacturing – whereby equipment manufacturers can increase service efficiency and transform the customer experience through automation and AI, says Davis. She continues: “This increases service revenue and customer satisfaction through targeted, modularised service offerings, as well as improving manufacturing up-time and great on-time delivery. “Plus, we can enable a collaborative platform for sharing performance analytics with manufacturers, operators and service providers to increase operational visibility and more-agile decision making.” REVOLUTIONISE EQUIPMENT PERFORMANCE TO MINIMISE EMISSIONS Using Industry 4.0 best practices, together with SAP solutions, enables operators to not only optimise equipment performance but also to extend their useful life, by helping to improve design and service, which reduces the assets’ carbon footprint. Davis is a big Formula One racing fan, and she is thrilled to see SAP solutions 76

May 2022

help a certain F1 team master extreme cornering skills. “In F1 racing, cars make hairpin turns at high speed, turns that must be executed perfectly for the car to minimise its total race time, and the distance travelled. You can map such a turn onto a network flow on a grid, where the nodes represent the positions along the turn, and the path that needs to be taken to reach the next node. “The goal is to find the shortest route using real-time information. It’s really energising to see our customers use SAP solutions to connect with remote experts on the race track in real-time, using peer-to-peer augmented reality.” She adds: “Our customers can improve knowledge transfer and boost performance, while optimising technician travel-time, in order to reduce vehicle CO2 emissions. While I’m not a professional car racer, with our solutions, I can guide our customers

DELIVER & OPERATE

closer toward reaching their CO2 emission mandates.” HOW SMART TECHNOLOGY IS DRIVING INNOVATION IN LAST-MILE DELIVERY Continuing the F1 analogy, Davis says: “In Formula 1, it’s the last minutes and seconds of the race that get your adrenaline going. Continuous optimisation is the key to winning, and it’s the same in supply chain. “Supply chain optimisation can be very effective in last-mile delivery. It might be the shortest leg of the supply chain by far, but it’s often the most complex, expensive and energy inefficient.” With last mile, there is no greater enemy to customer loyalty and satisfaction than orders not arriving when expected, arriving wrong, or not at all. And with so many disruptions, many traditional supply chain strategies continue to endure excess shipping charges due to changes in last-minute deliveries - all of which increases their carbon footprint.

Today, the last mile link in the supply chain is under enormous pressure to adapt at a lightning pace. But it’s important to remember that a company’s last mile solutions are only as strong as its supply chain planning infrastructure, and the ability to deliver visibility and connectivity across the entire supply chain journey. More than first- and middle-mile logistics, last mile has seen the greatest amount of change, thanks in large part to omnichannel. Last mile is also the most publicly visible link in the supply chain, and as such is most likely to be blamed by customers if anything goes wrong. But like a cog in a machine, last mile logistics can only function as efficiently as the other moving parts across the supply chain. In conclusion, Davis says she is “inspired” by how much digital supply chains can help SAP customers deliver sustainability initiatives, and is “optimistic” about the future on this front. “It's been exciting, challenging and ultimately fulfilling to see our customers use digitalisation across their supply chains to fuel fast, agile, and sustainable responses across the value chain,” she says.

Continuous optimisation is the key to winning in F1, and it’s the same in supply chain supplychaindigital.com

E C N A B N A E T T I F S N I E O S A R S P M E , E N N I V E I S E T U R C B I G E D F R E A R O P YF DS E K AN

May 2022

E E L B S

LOGISTICS

Data-driven predictive maintenance solutions are helping businesses with profitability, sustainability and the personal safety of their people WRITTEN BY: SEAN ASHCROFT

stitch in time saves nine’, is an idiom many of us will have been on the receiving end of when our neglect, indolence or distraction caused this or that object to sheer, snap, unravel or overheat. I once ignored a leaking radiator on my maroon Ford Fiesta for nine months, choosing to turn the heaters up full blast to draw heat from the engine, rather than replace the radiator. The good news was that in the end, I didn’t need a new radiator. The bad news? Because the car caught fire on the A23 just outside Croydon, after overheating one time too many. I doubt even today’s Industry 4.0 techdriven predictive maintenance solutions would have helped me; I would doubtless have ignored the blizzard of data-fed warnings flying my way. Yet businesses can ill-afford to be so heedless, because predictive maintenance solutions can help improve profitability, sustainability and also the safety of staff. It’s a big growth area, and companies are beginning to take the technology in new directions. Helping them do so is Andy Hancock, Global VP of SAP’s Digital Supply Chain Centre of Excellence (CoE). The CoE is rather

like a SWAT team of experts, who deploy on the ground to help customers get the most from new and pioneering SAP solutions. One area in which the CoE helps businesses is predictive maintenance. As with most things, this is not a new idea. Today’s predictive maintenance has its roots in supervisory control and data acquisition (SCADA) - a control-system architecture formed of computers, networked-data communications and graphical user interfaces for high-level supervision of machines and processes, for assets either in situ or in remote locations.

“ The chemical and energy sectors use prescriptive maintenance tech heavily because of the environments in which they operate” ANDY HANCOCK

GLOBAL VP OF SAP’S DIGITAL SUPPLY CHAIN CENTRE OF EXCELLENCE supplychaindigital.com

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LOGISTICS

“ With predictive maintenance you should always be looking out for the exception”

Predictive Maintenance and Service with SAP

ANDY HANCOCK

GLOBAL VP OF SAP’S DIGITAL SUPPLY CHAIN CENTRE OF EXCELLENCE

Predictive maintenance is rooted in SCADA systems “SCADA has been around for 40 years,” says Hancock, “but Industry 4.0 technologies such as artificial intelligence, machine learning and Internet of Things (IoT) have taken it to a whole new level of sophistication.” He adds: “SCADAs were all about condition-based monitoring. So, ‘If this happens, then do that’. But what people increasingly want is a predictive element, such as gaining insight on the useful remaining life of an asset somewhere out in the field. With big data, it’s now possible to carry out trend analysis to get at this kind of information.” Using today’s technologies, it’s also possible to exert fine control over individual assets, wherever they might be. An electric motor on a piece of machinery in the desert, for example. “The amperage in a failing motor is different to one that’s working properly,” says Hancock. “So you can put thresholds into your algorithm to alert the operator about this before any damage happens.”

He adds: “In this way, over time you get an understanding of the optimal way to set up servicing intervals for equipment, to make sure that nothing ever fails.” Too much data can be as bad as too little But Hancock warns that datadriven solutions can also bring their own problems. “With predictive maintenance you should always be looking out for the exception,” he says. “Think of a temperature gauge on a piece of equipment, which is feeding back data. If everything is running fine, it will always be roughly the same temperature. You don’t need to keep feeding back data about that piece of equipment. The only data you want to capture is if something changes - say if the thermostat fails. “With data, less is usually more. Systems can soon get inefficient if overloaded with data. And then you end up chucking more tech at the problem, where what you really need to do is cut back on the data.” Prescriptive maintenance also on the rise Predictive maintenance might feel like a new concept to many, but, says Hancock, some companies are already taking things supplychaindigital.com

LOGISTICS

to the next level, by using tech to help drive something called “prescriptive maintenance”. He says: “Imagine you have two identical assets. One's nicely tucked inside a factory and so is in a fairly constant environment, but the other asset is exposed to the elements on the seafront. Clearly, you’re going to have different performances from those two assets, and so you create prescriptive maintenance cycles that take environmental conditions into account. It's an individualised maintenance strategy.” The energy and chemical sectors use prescriptive maintenance tech most heavily, because of the vast environmental differences in which they operate.

May 2022

Having fine-tuned maintenance cycles - whether predictive or prescriptive - is important for preventing over-maintenance as much as under-maintenance, Hancock stresses. “If you're over-maintaining an asset you’re wasting money and resources. Why do an overhaul every six month when it’s not necessary? With predictive maintenance, you can use historical information via IoT sensor data and extend the maintenance cycle to seven or eight months, with no negative impact on the machinery.” This is why predictive maintenance has huge sustainability benefits, because assets cost less to run over their lifetime. Also,

longer maintenance cycles means fewer journeys for maintenance personnel, which cuts down on carbon emissions. Sustainability a key goal of predictive maintenance With sustainability now an issue of utmost importance for businesses, the green gains of predictive maintenance solutions are also very appealing. One company helping on this front is UK-based Freeway Fleet Systems, which provides enterprise-level vehicle assets maintenance and management software. “We offer an end-to-end digital solution for vehicle maintenance and compliance, using mobile devices that are synchronised

Industry 4.0 can learn from old-style computing SAP’s Andy Hancock says that when it comes to handling data today’s Industry 4.0 world has much to learn from old-school computing. “With the huge data capabilities of 5G I think people can get lazy, and end up throwing tons of information around just because they can,” says Hancock. “The trouble is, this is how you end up with 50 million data points that flood the network, making it inefficient.” Like old-school disciplines from 20 years ago, he says: “Think back to the days of dial-up modems, where everyone minimised the amount of data transmitted, because if you didn’t then the whole thing just hung.” He adds: “Although computing has changed a lot since the 1980s, the core thing is still data flow. Where was the data created? Where is it stored? Who needs to use it? What's it for?”

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LOGISTICS

FedEx opts for LOBO preventative maintenance system Federal Express has opted for LOBO's working-at-height system for their preventative maintenance. The logistics company’s distribution centres have automated conveyorbelt systems that speed up package processing times and ensure each package gets to the correct location for onward travel. Motors, belt repairs, sensors and conveyor rollers need preventative maintenance to keep the lines running. LOBO provides a reconfigurable work-at-height system that allows safe access to these areas - where normally this would be outsourced to scaffolding companies. “Using this solution will dramatically improve our logistics operation by reducing scaffolding labour costs, improving service levels and increasing operator safety,” a FedEx spokesperson said. 84

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“ There’ve long been calls for live vehiclediagnostic data to be incorporated into maintenance planning” PATRICK TANDY

MANAGING DIRECTOR FREEWAY FLEET SYSTEMS

with a central asset management system to eliminate paper across compliance-heavy engineering operations,” says Tandy. Freeway also helps customers manage stores and purchasing, offering insightful financial and management analytics that help operators reduce costs. As well as sustainability, safety is another big plus with predictive maintenance. To this end, in February 2022, Freeway announced a partnership with a leading predictive maintenance solution company, Stratio. Stratio’s AI platform eliminates unplanned downtime and reduces maintenance costs by predicting faults in key components. Stratio is working closely with Freeway to spearhead the introduction of the technology into the transport and bus sectors. “Safety is a big issue when transporting passengers and our primary focus will initially be in the bus and coach sector,” reveals Tandy. He adds: “Stratio’s platform is being integrated with our fleet maintenance system to provide crucial, real-time, information on real-time vehicle performance and condition. There have long been demands for live diagnostic data from vehicles to be incorporated into vehicle maintenance planning.” supplychaindigital.com

WRITTEN BY: GEORGIA WILSON PRODUCED BY: MIKE SADR

May 2022

THE STANDARD

ACHIEVING FINANCIAL WELLBEING AND PEACE OF MIND

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THE STANDARD

An employee from The Standard volunteered for Habitat for Humanity

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May 2022

THE STANDARD

The Standard’s Rachel Henney details the company’s approach to ESG, commitments to simplicity in its procurement processes and strong third-party governance

ounded in Portland, Oregon, in 1906, Standard Insurance Company (The Standard) is a leading provider of financial protection, insurance, retirement, and investment products and services for both employees and individuals. Under its holding company name, StanCorp Financial Group Inc., the organisation has four primary subsidiaries: Standard Insurance Company, The Standard Life Insurance Company of New York, Standard Retirement Services, Inc., and StanCorp Mortgage Investors, LLC. When it comes to The Standard’s core mission, Rachel Henney, Head of Procurement, Supplier Management and Governance, explains her love of its simplicity. “The Standard is a family of companies dedicated to helping our more than eight million customers achieve financial well-being and peace of mind,” she says. Since joining the company in 2015, Henney reflects on the incredible growth of the group: “When I arrived, revenues were at US$2.9bn. We ended 2021 at nearly US$4bn,” says Henney. She adds: “We’ve also deepened our investment in technology. And in doing so, we came to understand that we cannot be experts in everything. So, we partner with strategic, best-in-class vendor partners to deliver value to our businesses and customers. supplychaindigital.com

HCL Technologies helps The Standard achieve their vision Ananth Subramanya, SVP of Digital Business at HCL Technologies, details how the company’s helping The Standard digitally transform now, and in the future

Helping The Standard to digitally transform Like any other insurance company, The Standard is focused on investing in its customer experience. The Standard offers a variety of solutions, including those for retirement, disability, dental and healthcare.

In recent years, technology has taken a central role pretty much everywhere. As a key enabler for many organisations, having advanced technology within core operations has become a key differentiator for businesses. “Organisations are no longer simply using technology as a substitute for labour to drive productivity,” says Ananth Subramanya, SVP of Digital Business at HCL Technologies. He adds: “Technology has become a core conversation in the boardroom. Now they are figuring out how technology can advance the business and drive the important aspects of the agenda. Investment in technology is becoming as important as the products an organisation sells.”

Helping organisations achieve their digital transformation vision With COVID-19 accelerating the pace of transformation for many organisations, technology has resulted in significant positive disruption to many regulated industries. “If you consider dynamically priced insurance industries, there is significant consolidation in the industry that is driving better experiences and modern capabilities; this can also be extended to the optimisation of functions such as underwriting. Those in the industry are using technology to improve the experience and value a customer gains.” says Subramanya.

“Ensuring that they deliver frictionless solutions so that customers don’t suffer from long wait times, as well as innovating and improving fast are key components for the Standard,” says Subramanya. He adds: “In order to achieve this, HCL Technologies is providing The Standard with significant optimisation capability for their current processes including infrastructure, development processes, and QR automation. With these capabilities, they are able to adopt and improve much faster. “The Standard has also invested a lot in improving its operations and driving efficiency throughout its local platforms with RPA. HCL is helping to ensure that the entire process in the backend is optimised so that the customer experience continues to remain valuable.”

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THE STANDARD

“Deeper storytelling will be a core element of the report. We’re committed to sharing stories — many of which have not been shared publicly — about ESG activities” RACHEL HENNEY

HEAD OF PROCUREMENT, SUPPLIER MANAGEMENT AND GOVERNANCE, THE STANDARD

“But particularly in the last two years, during the COVID-19 pandemic. We’ve really seen great success with our shift to working remotely while continuing to provide the superb customer service that sets us apart from our peers.” The Standard and its ESG commitment In the early stages of its environmental, social, and governance (ESG) related work, The Standard’s approach to ESG has always been driven by its vision “to support a healthier environment for all, to strengthen communities, to align corporate values, and ensure we always take the high road,” says Henney. She adds: “ESG is important and it will continue to be a focus for us.” Yearly, The Standard reports on its ESG activities, sharing details on its plans to ensure the long-term sustainability of the company as well as its measurement and management of its impact. While Henney can’t share many specifics in regards to its upcoming 2021 report, she can say: “The 2021 report will be focused on how we ensure the long-term sustainability of the company, and measure and manage the impact our company has on our customers, communities and environment. It will also continue to highlight how we create a workplace culture in which each employee is valued and respected.” 92

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When asked how the 2021 report will compare to 2020, she adds: “Deeper storytelling will be a core element of the report. We’re committed to sharing stories — many of which have not been shared publicly — about ESG activities inside our various business units.” The Standard is committed to multiple United Nations Social Development Goals (SDGs), the adoption of which will help the company to not only track and report on its work, but to tell a more complete and transparent story when it comes to its sustainability. The Standard’s dedication to supplier diversity With supplier diversity being a core pillar of The Standard’s ESG model, this approach offers the company an opportunity to support its communities. “Supplier diversity is a business imperative; we take this very seriously and promote inclusion of diverse suppliers with our standard workflow for procurement and sourcing events,” explains Henney. She adds: “We continually grow and promote our supplier diversity efforts by benchmarking activities with industry peers for best practices, leveraging the advocacy organisations that certify companies as diverse (NGLCC, NMSDC, MBENC) for future matchmaking events to grow our portfolio of diverse suppliers.”

THE STANDARD

EXECUTIVE BIO RACHEL HENNEY TITLE: HEAD OF PROCUREMENT, SUPPLIER MANAGEMENT AND GOVERNANCE Rachel Henney is the Head of Procurement, Supplier Management and Governance for Standard Insurance Company. Henney is responsible for leading the supplier management division and for ensuring ensuring a strong and capable supplier base is in place

to support the company’s suppliers of products, professional services, software, hardware and outsourced services. Henney joined The Standard in 2015 and has over 25 years of experience in procurement, supplier management and enterprise shared services. She has held previous roles in business consulting and solution delivery, focusing on programme management, simplification, business case realization and strategic vision & planning.

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Business transformation

Human elevation We don’t just create real-world transformation. Driven by our purpose, we amplify the impact insurers have on the world empowering employees and helping communities thrive. Discover how we can make a difference together.

Genpact helping its clients to insure customers for life Sameer Dewan, Genpact’s global business leader for insurance, discusses how the insurance industry is embracing a new age of data and lifetime customer journeys

is a key partner in helping organisations connect, predict, and adapt to become instinctive insurers and lifelong protectors in their customers’ lives,” adds Dewan.

Genpact is a global professional services firm delivering business transformation by putting digital and data to work to create competitive advantage.

Partnership with The Standard

It’s guided by its mission – the relentless pursuit of a world that works better for people. Genpact is focused on delivering ESG outcomes for both itself and its ecosystem of shareholders, stakeholders, employees, and the communities it operates in. As global business leader for insurance, Sameer Dewan partners with insurers, brokers, and MGAs to drive transformation, develop digital and analytics capabilities at a fast pace, and deliver business growth and efficiency. State of flux from transactional to lifelong customer journeys The role Genpact plays - as detailed in its report Insurance In The Age of Instinct - is to help the insurance industry tackle challenges such as changing consumer expectations, the explosion of data, and a fast-moving technology landscape. “How insurers respond today will lay the foundation for future resilience, and Genpact

The Standard provides insurance, retirement and investment products and services, with total assets under administration of USD$45.36 bn. Genpact creates value for them as an extension of The Standard’s team, creating growth with agile operating models that can scale up to meet demand and running operations to ensure they deliver value. “We started by assessing the current state of operations and customer journeys and the choke points in each. This led to a redesigned operating model, with customer journeys at the heart of designing the new process - driving a better customer experience and growth. But transformation is not a ‘one and done’ project, we also created a transformation roadmap to consciously and continuously drive improvements, meeting The Standard’s goals of growth and profitability over the long term.” said Dewan.

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Allegis Global Solutions Allegis Global Solutions (AGS) is a managed service provider of contingent worker procurement for The Standard. “In the last year, the amount of contingent worker diversity spend was just over 27%,” says Henney. She adds: “AGS as a company is focused on three Sustainable Development Goals for 2022, including climate, work and economic growth, and reduced inequalities, all of which align with The Standard’s core values as well.” Dun & Bradstreet Leveraging several services from Dun & Bradstreet, the company provides The Standard with third-party insights. “With information from their internal certified data, we include unique businesses that have been classified using can be segmented to specific socio-economic classifications, such as minority, women, veteran, LGBTQ, and disabled-owned businesses,” explains Henney. With this information, The Standard can understand the composition of its existing third-party catalogue. Genpact As one of The Standard’s primary suppliers, Genpact supports business process delivery across the policy lifecycle. “We share a deep commitment to three key objectives,” says Henney. “Improving our business through simplification, collectively serving our customers’ needs, and increasing diversity. “They parallel our focus around prioritising diversity and inclusion as published on their website” says Henney. “The results of our strategic engagement with Genpact continue to support not only our company’s vision and mission but also our culture.”

May 2022

Commenting on the partnership with Genpact, Brenda Smith, senior director of Workplace Possibilities at The Standard says: “Genpact has been supporting our area for many years now, starting with two important business processes: both case and invoice set up. Through a solid partnership, our relationship has grown and the team has taken on additional processes including document creation and components of correspondence. All members of the team are hardworking and conscientious, bringing forward ideas for improvement, questions and issues as they arise. Their attention to detail shows in their most recent metric results: 99.41% accuracy and 100% timeliness.” HCL Technologies Working with HCL Technologies since 2016, The Standard continues to grow its strong partnership with the company. “Our collaboration with HCL Technologies brings significant value, operational efficiency, and thought leadership to The Standard,” says Henney. “Their operations are well-aligned to The Standard’s culture of transparency, trust and openness.” During the COVID-19 pandemic, HCL Technologies was a vital partner for The Standard to pivot its operation in the ‘new normal’. “With HCL Technologies alongside our other strategic partners we experienced no loss of productivity, expanded our network capacity, and transitioned to 100% remote working,” says Henney. She adds: “The partnership between HCL Technologies and the Standard has helped the organisation tap into a larger skill and talent pool enhancing our company’s competitiveness in the market.”

THE STANDARD

The Standard simplifies its processes and drives effective governance When it comes to the simplification of its processes, Henney explains that The Standard leverages a methodology called ‘lean management system’. She says: “Lean at The Standard is a set of tools and behaviours that focus on continuously improving the value we provide to our customers, with an engaged and empowered workforce.”

The Standard’s goal is to maximise the performance of its systems or value stream to eliminate waste in the value chain. “Asking ‘why’ each step is required, it serves as a baseline for simplification opportunities,” adds Henney. Choosing a third-party risk governance approach, The Standard uses subject matter experts from across the enterprise covering multiple risk areas — geopolitical,

The Standard’s annual Volunteer Expo in Portland, Oregon

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© 2022 PwC. All rights reserved. PwC refers to the US member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.

THE STANDARD

“ Change is inevitable, it is one thing that remains constant” RACHEL HENNEY

HEAD OF PROCUREMENT, SUPPLIER MANAGEMENT AND GOVERNANCE THE STANDARD

technology, compliance, fraud, and legal, to name a few. “This provides a holistic governance approach for our third parties,” says Henney. “These ‘Risk Domain Owners’ work with our centralised TPRM Governance group who act as the central clearing house for TPRM risk monitoring and information management.” In 2021, The Standard further evolved its Third-Party Risk Management Governance group by leveraging leading practices to expand its TPRM programme. “Using a risk-based approach, the TPRM Governance programme monitors third-party providers across a wide number of Risk Domains,” says Henney. She adds: “One of the current focus areas for the programme is to provide enhanced reporting capabilities so business stakeholders have improved visibility to current risk information about their third parties. The Third-Party Risk Management Governance group works with both business and third-party stakeholders to ensure that risks are monitored and appropriately managed throughout the engagement lifecycle.”

The Standard's strategic suppliers help to simplify processes PwC When it comes to quality, cost and control, strategic suppliers at The Standard work with business leaders to determine where the group should focus its outcomes. “While we want to improve all of these, it’s not possible,” explains Henney. She adds: “You can’t require that a supplier is fast, inexpensive and delivers sustainable solutions. Choosing two of these as primary outcomes and objectives together help focus operational results that meet expectations. Our strategic suppliers are integral to core operations and our customer satisfaction.” As a Strategic and Preferred Supplier, PwC works with The Standard to enable and enhance business intelligence and analytics, transforming our end-user ecosystem. PwC and The Standard defined a strategy to simplify our operating and governance model, modernising technology to complement business strategy. PwC’s approach helped The Standard support sustained internal growth and adoption of transformation, including the creation of an internal delivery structure focused on strategy realisation. “Change is inevitable,” says Henney, “It is one thing that remains constant. PwC assists The Standard with the pace of change, and as we progress in our transformational journey, we leverage PwC’s insurance industry experience as well.”

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THE STANDARD

“ Over the past couple of years, the pandemic has reshaped our industry and its perception” RACHEL HENNEY

HEAD OF PROCUREMENT, SUPPLIER MANAGEMENT AND GOVERNANCE THE STANDARD

The Standard’s outlook for the future Looking to the future, Henney expects the industry to continue to be impacted by the current global landscape including the pandemic, geopolitical unrest, and employment retention challenges. She says: “These next couple of years will focus on a deeper evaluation of our supply base, looking at how we can optimise the utilisation of strategic, preferred partners to mitigate inflation impacts.” She adds: “Future trends are in part defined by a reflection of the recent past; over the past couple of years, the pandemic has reshaped our industry and its perception. We sell a promise to be there for our life and disability insurance customers when they need us. “The pandemic, sadly, gave us the opportunity to be there for many people and families experiencing the worst. We're proud of our capability to provide income replacement for people experiencing a disability, and funds to cover expenses and mortgages for families who lost a loved one. The pandemic showed how critical our products are and will continue to be.”

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A group of employees from The Standard volunteered for Habitat for Humanity

THE STANDARD

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WILL FASHION OBEY THE OF THE LAW ON SUSTAIN

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May 2022

E LETTER NABILITY?

SUSTAINABILITY

The notoriously unregulated fashion industry is suddenly facing a welter of new laws and directives, designed to help green-up supply chains WRITTEN BY: SEAN ASHCROFT

istorically, fashion retail has been a poor performer when it comes to sustainability and ESG. This is largely due to the sector’s rapid growth, e-commerce capabilities, and its use of resources and raw materials that are tied in with changing consumption patterns, as well as the globalisation of trade. Far-reaching social issues in the fashion supply chain and its ecosystem have been highlighted for decades, with little in the way of meaningful change. Tragedies such as the Rana Plaza factory collapse in 2013 - causing the deaths of more than 1,000 garment workers, predominantly women and children - have driven some positive change, but there remains a lack of industrywide governance and regulation. Yet, there are signs that this may now be changing. New York fashion ESG Act might be game changer In January 2022, the New York State Assembly unveiled the Fashion Sustainability and Social Accountability Act. If passed, this would make New York the first city to pass legislation holding the biggest fashion brands to account for their role in climate change. Backed by a powerful coalition of nonprofits and designer Stella McCartney, the law will apply to global apparel and footwear firms with more than US$100mn supplychaindigital.com

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SUSTAINABILITY

“ The New York bill is geographically limited but, if passed, will be an important milestone for sustainability in fashion” LAURA GIBSON

HEAD OF SUSTAINABILITY, CORE UK

in revenue that conduct business in New York – which is pretty much every large multinational fashion brand. Specifically, it would require such companies to map a minimum of 50% of their supply chain, starting with the farms where raw materials originated, through to factories and also shipping.

“The new legislation will require sustainability claims to be verified and disclosed by fashion companies, or else the brand faces a fine,” says Laura Gibson, Head of Sustainability at supply chain management company, Core UK. “It will affect every large multinational fashion business, from Prada to Armani, as well as fast-fashion giants such as Boohoo. Asked if she sees New York’s legislation making a lasting difference, Gibson says that, although the bill is “geographically limited”, if passed it will be an “important milestone” for sustainability in the fashion industry and is likely to drive calls for stronger legislation in other regions. She adds: “While there have been recent shifts towards increased transparency and accountability within the fashion industry, this has largely been voluntary and unregulated, so the Fashion Act could provide a blueprint of how to regulate these initiatives to drive change.” supplychaindigital.com

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SUSTAINABILITY

“ Fashion retailers are concerned that ESG efforts will at best be seen as token change, and at worst, greenwashing” LAURA GIBSON

HEAD OF SUSTAINABILITY, CORE UK

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Also driving change is the European Commission (EC), which has announced plans to make far-reaching changes to a key sustainability reporting directive. Under the old EC directive, around 11,000 EU companies with more than 500 employees were obliged to report on their sustainability and ESG practices. But under the new Corporate Sustainability Reporting Directive (CSRD), as many as 50,000 EU companies will be obliged to disclose transactions across their value chains and, unlike the previous system, the data will have to be digitised.

SUSTAINABILITY

Fashion is falling in line on sustainability On the increase in sustainability regulations, Gibson says: “Fashion is an industry known for its lack of regulation and limited supply chain transparency, but now it is following a wider global trend on sustainability and accountability. “With the development of the CSRD there are signs of a broader shift in the legislative landscape, implying that industry stakeholders will need to address sustainability issues sooner rather than later if they are behind the curve.” Gibson points out that another problem for fashion retailers has been a lack of

Blockchain tech helping make supply chains greener As well as regulatory and legislative tools to enforce supply chain sustainability, Blockchain tech is also playing its part. UK Blockchain startup iov42 was among those who helped shape the first phase of the EU's blockchain capability, and its tech is also helping to combat illegal logging. Dominic von Trotha Taylor, who is CEO of iov42, says: “We help organisations by codifying their processes on our platform, whether that’s a timber supply chain or a bank’s mortgage applications. “We then provide proof that their rules are being followed by everyone involved. We were chosen by the European Commission to help design and develop the first phase of European blockchain capability improvements. “We’re also working with Timber Chain, a new service to enable stakeholders across timber supply chains to improve efficiency, transparency and security. The sustainability of international timber markets is too often corrupt and fragmented. Data will be stored and secured by our distributed-ledger tech in a way that makes it impossible to change, hack, or cheat the system.”

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best-practice frameworks and initiatives to use when developing their sustainability strategy. But this also appears to be changing. In Autumn 2021, the UK Government’s Competition and Markets Authority (CMA) issued a set of ‘green marketing’ guidelines, and then in January 2022, announced it would begin looking, sector by sector, at brands that fail to follow its guidance starting with fashion. In the Netherlands, meanwhile, the Authority for Consumers and Markets (ACM) is currently conducting a ‘greenwashing’ investigation, probing the sustainability claims of six clothing companies – four of which are non-Dutch. The ACM can fine any Dutch company that misleads consumers about the sustainability of their products. “We are in an interesting transition period, where there are an increasing number of sustainability frameworks and ESG metrics available, but little guidance over which is most applicable,” says Gibson. She adds: “Indeed, fashion retailers are concerned that, at best, ESG efforts will be seen as token change, and, at worst, so-called ‘greenwashing’. These challenges are exacerbated by the complexity and opacity of the fashion supply chain, which is where supply chain transparency, traceability and data-driven solutions such as Leaf can help.” Digitisation of supply chains key to transparency Leaf is a platform that supports retail organisations in their pursuit of sustainable trading, through integration with suppliers, carriers, and non-profit organisations. The digitisation of supply chains is key to transparency on sustainability and human rights abuses across supply chains, says Gibson. 108

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“Increased transparency and accountability in the fashion industry has largely been voluntary and unregulated” LAURA GIBSON

HEAD OF SUSTAINABILITY, CORE UK

“Digitisation facilitates the development of legislation. Not only can you streamline and automate ESG data collection but this data enables you to map and analyse your supply chain, to identify any sustainability hotspots, benchmark your impacts and track quantifiable impacts of sustainability initiatives, and demonstrate ROI of these digital solutions.” Gibson feels that there is no singular answer to the ESG challenges faced by the fashion industry, but that “legislative oversight is definitely part of the solution”. “Legislation such as the Fashion Act could spark important high-level discussions, provide a blueprint for more rigorous and quantifiable sustainable practices, and tackle the problem of ‘greenwashing’, leaving

consumers in a much better position to make sustainable choices,” says Gibson. She also points out that many retailers - in fashion and beyond - have made bold sustainability commitments, and that the foundation of these commitments is their supply chain. “Whether your goal is to reduce Scope 3 emissions, protect biodiversity or address social issues within your business ecosystem, how we meet those commitments in a quantifiable way will be one of the key challenges of the decade.” In conclusion, she says: “ It’s helpful to start by thinking of sustainability as a process, not an end goal, and that process starts with understanding what is going on in your supply chain, using verifiable data.” supplychaindigital.com

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THE

IMPORTANCE OF SUPPLIERS IN THE MEDICAL

INDUSTRY WRITTEN BY: GEORGIA WILSON PRODUCED BY: MIKE SADR

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WERFEN

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WERFEN

Don Perigny, Senior Manager, Global Procurement, Werfen discusses the significance of longstanding suppliers to navigate the complex medical device industry

oining Werfen in 2003 as Senior Manager, Global Procurement, Perigny today holds the position of Director of Strategic Procurement and Supply Chain Compliance. Loving what he does for a living and the great company that he works for, Perigny explains that he doesn’t compare himself with other professionals. “I always want to be in the middle of it, pushing buttons - that’s what makes me tick,” he says. “I think the old athlete in me is what drives me; I want to be the go-to guy, the guy out there on the pitch.” Being a part of Werfen for almost 20 years, Perigny explains that, in that time, the organisation has evolved from one that had 10 suppliers with whom they spent more than US$100,000, to having over 50 suppliers that the company spends more than US$1mn with. “That’s huge growth,” says Perigny. Over the years, Werfen has continued to add new policies and governance to ensure optimal quality in the manufacturing process: “Today, we have very strict requirements for installation qualifications (IQ), operational qualifications (OQ) and performance qualifications (PQ).,” explains Perigny. “We are in an environment where minimising risk is essential, so we continuously ensure that our processes are tight and stringent. Operational 112

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WERFEN

“ BEFORE THE PANDEMIC, WE THOUGHT WE WERE BUSY; BUT, ONCE IT HIT, OUR DEFINITION OF BUSY CHANGED” DON PERIGNY

DIRECTOR, STRATEGIC PROCUREMENT & SUPPLY CHAIN COMPLIANCE, WERFEN

excellence is our mandate. Data drives us.” Procurement challenges for the medical device industry When it comes to procurement, Perigny explains that the days of pounding your fist on the desk and demanding suppliers bow to your every whim are long gone thankfully something that was never his approach, anyway. “We don’t have vendors, we have suppliers,” he says. “In baseball terms, a

vendor is the van outside selling hotdogs; we want our partners to be an extension of our company, and I think this approach has driven our success.” Like many other organisations, 2020 saw Werfen go head-to-head with its greatest challenge yet: COVID-19. “Before the pandemic, we thought we were busy; but, once it hit, our definition of busy changed,” says Perigny. “Much of this was due to a loss of the control we previously had on our procurement process. We had to compete for labour with our suppliers, and as the pandemic rolled out across the world, we faced this over and over, due to our global supplier base.” supplychaindigital.com

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Title of the video

He adds: “Many companies were forced to close with little notice, and every country dealt with it slightly differently - from Europe to Mexico, to Canada, to the United States. And by 2021, we weren't only competing for labour, we were competing for virtually every part. Suppliers were constantly de-committing, and without notice.” Perigny emphasises that the strength of the relationships Werfen built with its suppliers was a key differentiator. “Many manufacturing companies in the US particularly the Northeast - were forced to close because they simply couldn’t get the materials needed to maintain their manufacturing. But we didn’t stop. It was a significant challenge, a lot of late nights, weekends, and no vacations, but we made it,” says Perigny. He adds: “Instead of focusing on ‘here’s 116

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why we can’t', we focused on ‘here’s why we can', and that positive focus was huge. But ultimately, getting ahead of those material issues is what really made us successful. We jumped on the shortage issues as soon as they surfaced.” Werfen and its suppliers When discussing suppliers at Werfen, Perigny stresses that “I always see our suppliers as a part of the Werfen family - I truly believe that we are in this together”. When it comes to finding the perfect supplier, he explains the importance of due diligence first. Are they legitimate? Are they ISO-approved? Who are their customers? What is their reputation? “Once your due diligence is completed, it is important to determine whether a potential supplier can meet the business’s

WERFEN

Don Perigny TITLE: D IRECTOR, STRATEGIC PROCUREMENT & SUPPLY CHAIN COMPLIANCE INDUSTRY: HEALTHCARE

EXECUTIVE BIO

LOCATION: USA Graduating in 1999 from the University of Massachusetts Lowell in Business Management, Don Perigny is the current Senior Manager, Global Procurement at Werfen. Perigny is a proudly married father of three, who transitioned from a career as a professional athlete, into the corporate world. Perigny describes how he found himself in the medical industry as “getting lucky.” Prior to working at Werfen, Perigny worked for two organisations KLA-Tencora and Imaging Automation as a Materials manager. Perigny describes himself as an experienced global strategic procurement professional with a demonstrated history of working in the medical device ISO/IVDR/ MDSAP regulated industry. His skills include: purchasing, supplier management, analytics, medical devices, Lean Six Sigma (LSS) Green Belt Certified and Project Management Certified.

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WERFEN

“ I ALWAYS SEE OUR SUPPLIERS AS A PART OF THE WERFEN FAMILY - I TRULY BELIEVE THAT WE ARE IN THIS TOGETHER” DON PERIGNY

DIRECTOR, STRATEGIC PROCUREMENT & SUPPLY CHAIN COMPLIANCE, WERFEN

quality expectation all day, every day, every year,” explains Perigny. “And, can we get that written down in a quality agreement?” He adds: “Change management is hugely important in the medical industry; even simple changes that may be insignificant to a supplier can be catastrophic to us. Any change could be a big change. So, it’s important for companies to ensure they have written agreements with their suppliers to ensure that no changes will occur without notification and approval.” Other key factors for Werfen when selecting suppliers include whether they will allow Werfen employees or a thirdparty regulatory body to conduct audits

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WERFEN

WHO IS WERFEN? Founded in 1966, Werfen is focused on Specialised Diagnostics. “We develop, manufacture and distribute instruments, reagents and data management solutions for Hemostasis and Acute Care and Autoimmunity diagnostics,” says Perigny. Werfen is currently the number one company in the Hemostasis testing market, with eight production lines, and a leader in the Acute Care testing market with three production lines. Perigny explains: “Our Hemostasis lines comprise very large instruments for hospital laboratories, while our Acute Care systems are smaller, designed for use at the hospital point

of care. Last year, we shipped 7,700 instruments and almost 700,000 cartridges, a consumable for our blood gas testing systems.”Not only is Werfen a US $2bn company, but last year the company achieved 11% growth. “During the pandemic, when other companies weren’t facing supply-chain issues, failure was not an option for Werfen - we were passionate and dedicated to ensuring a continuous supply of products to our customers,” added Perigny. Werfen’s core mission: Using its passion and long-term vision, Werfen strives to develop meaningful innovations that truly enhance patient care and help to create healthier societies worldwide.

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WERFEN

at their locations, as well as their longterm partnership potential. “I don’t like switching suppliers; validation of new suppliers requires significant time and is a costly process. So we look for long-term partners,” says Perigny. Werfen’s ‘newest’ suppliers have been working with the company for five years, while its ‘oldest’ suppliers have worked

with Werfen for 40 years. “On average our suppliers have a 24-year business relationship with us,” says Perigny. “They have been with us for a long time, they all know us well and they know how to work with us.” Every year, Werfen conducts a group supplier meeting either on location in Bedford or in recent years, virtually. “This meeting gives us the opportunity to update supplychaindigital.com

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our suppliers on our current operations, as well as receive updates from them on new improvements and capabilities. We discuss our five-year plan and make our suppliers a part of it,” says Perigny. He adds: “On top of that, we have a supplier portal where they can see their real-time delivery performance and quality performance, and access non-conforming reports. Additionally, we have a complete supplier engineering team available to answer suppliers’ calls, ensure clear communication, and provide support. It’s a teamwork approach. There’s a lot of work that goes into it, but the results speak for themselves.”

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With the rise of omnichannel amid a lack of warehouse space and staff, it's vital for businesses to optimise every aspect of warehouse operations

WRITTEN BY: SEAN ASHCROFT he rise of e-commerce – and omnichannel in particular – is impacting highstreets across the globe, and the race is on for retailers and third-party logistics (3PL) providers to secure more warehouse space and capture a share in this growing market. In the UK alone, warehouse space has increased by 73% since COVID-19 restrictions began in March 2019. Yet warehouse capacity is increasingly difficult to come by. Plus, there are ongoing warehouse staffing issues – a problem that pre-dates the pandemic but is now more pronounced than ever. The shortage of both warehouse space and staff comes at a time when businesses are seeking to service increasingly high customer expectations. In an omnichannel world, speed and accuracy of delivery is everything, with the average consumer expecting products that are not only made to order and easily returned, but that also arrive when expected.

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TECH & AI

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TECH & AI

“ We were able to dig customers out of a hole thanks to our Extended Warehouse Management solutions” MINDY DAVIS

VP, GLOBAL MARKETING, DIGITAL SUPPLY CHAIN, SAP

This is where warehouse management systems (WMS) come into play. The concept of warehouse management is nothing new. It originated in Ancient Egypt, where people managed grain stores by keeping records on papyrus to prevent famine in times of drought. The basic concept of managing warehouse inventory has not really changed, it’s just gotten far more complex. Used optimally, today’s WMSs can enhance a business’s productivity, boost

efficiency, and lower costs by digitising processes. They also help avert slow shipments, inventory management errors and incorrect product details – all of which can prove costly and lead to unhappy customers. These software solutions also provide a holistic overview of operations. For example, having an accurate, real-time view of inventory means that companies can effectively gauge stock needs and avoid back orders. A WMS can even be used to boost productivity amongst workers, matching them to specific jobs at the right time, and guiding them around the warehouse in the most efficient manner. Increasingly, WMSs are being allied to automation and robotics, to provide a 360degree warehousing solution. supplychaindigital.com

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Robots can make warehouse operations more efficient and productive, while reducing errors and improving safety. It’s estimated there will be around 50,000 robotic warehouses by 2025 with over 4 million robot installations. As of October 2021, Amazon alone had around 350,000 mobile drive-unit robots.

“ Robotics is an interesting one; it's kind of counterintuitive as to how it works” MINDY DAVIS

VP, GLOBAL MARKETING, DIGITAL SUPPLY CHAIN, SAP

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One company that has done more than anyone to marry WMSs with robotics and automation is SAP. Mindy Davis is the company’s VP, Global Marketing, Digital Supply Chain. A SAP veteran of 17 years, Davis had a minor in logistics from university and her first job was working in a warehouse, for a distribution company in Atlanta. “It was my introduction to how digitalising inventory management systems can bring them to life,” she says. Davis says that, during the pandemic, SAP was tasked with helping customers align supply with demand. “We were able to dig them out of this hole, thanks to our Extended Warehouse Management (EWM) solutions,” she says. “EWM helps ensure you are not carrying excess inventory, so that it’s aligned with what your demand plan is,” she says. “It's also about making sure you’re prioritising

Five benefits of a warehouse management system (WMS) Space and time savings WMSs optimise warehouse flow by analysing the best use of floor space, based on the task and materials in question. This reduces waste – of premium floor space and also time spent locating products. By optimising product storage, as well as materials and equipment, a warehouse can lower its operating expenses.

Inventory visibility WMSs provide visibility of accurate, real-time inventory levels. This enables businesses to more accurately estimate supply levels and avoid backorders, which leads to more satisfied customers.They also work in tandem with the enterprise resource planning function to provide forecasting by sharing precise information about product demand, as well as seasonality information. Armed with this information, planners can make reliable decisions about product adjustments in order to increase revenue or mitigate losses.

Effective labour A WMS can assign the right task to the right person at the right time. Using labour forecasting, the system can assign jobs on a day-to-day basis and

efficiently design schedules. Product scanning, meanwhile, improves pick accuracy and helps provide better customer service. KPIs can also be used to analyse staffing issues, which is key because labour is often one of the highest costs of warehouse operations.

Traceable materials Inventory materials can be easily traced using lot, batch and serial numbering. The Lot and batch numbers indicate the group in which materials were made, and the serial number identifies an item specifically. The ability to match specific lot, batch or serial numbers with incoming receipts and outgoing shipments affords full traceability, and accurate inventory planning and allocation.

Optimised supply chain The plus points of a WMS extend to the broader supply chain. Within the warehouse, the WMS streamlines the entire process, from inbound receipts to outbound deliveries, thus improving operational efficiencies and reducing costs. These time and cost savings can be passed to internal and external partners. Delivery data can also be shared with the end consumer, while allowing upstream partners to improve planning processes. supplychaindigital.com

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customer loads. Let’s say, for example, that I have 10 customers for whom I need to deliver. I can assess the financial impact of which customer is the most profitable and prioritise that load. This means that, whether it’s by road, rail, sea or air, you're delivering the perfect order at the right time and that is also matched to the customer's requirements.”

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With warehouse capacity at a premium and staff tough to recruit and retain, robotics is increasingly becoming a part of WMS solutions. Mobile robots are particularly helpful for moving goods from warehouse shelves to fulfilment zones. They can also be programmed to perform duties traditionally carried out by conveyors, manual forklifts, carts, and towing machines.

TECH & AI

“Robotics is an interesting one,” says Davis. “It's kind of counterintuitive as to how it works, because you’d think warehouse robotics are simply a means of reducing the need for staff. But actually, it can help you scale your workforce. As companies grow, they can order robots for any task that they need to take care of on the plant floor or in the warehouse.”

“ We've converted operations into being completely Industry 4.0-driven and expect to reduce costs by around 30%” MINDY DAVIS

VP, GLOBAL MARKETING, DIGITAL SUPPLY CHAIN, SAP

And this is exactly what SAP customer Bechtle has done. Bechtle is a 100-year-old, US-based global engineering, construction and project management company. It works on civil infrastructure projects and was involved with the building of the Hoover Dam and the Channel Tunnel. Christian Dippisch is Innovations Manager at Bechtle Logistics & Services in south-west Germany. He says the company “has been expanding for years” and that the pandemic reinforced the need to keep deliveries on time. “So we had to strengthen and automate our logistics, and the solution was to introduce robots.” Dippisch reveals that - using SAP Warehouse Robotics, in conjunction with SAP Extended Warehouse Management - the programme took just four weeks to implement. “We expect to be able to reduce costs by around 30%,” he says. “We've effectively converted our operations into being completely Industry 4.0 driven.” He adds: “The robots support our warehouse employees in their daily tasks. They're guided by 3D laser scanners, which helps them operate safely side-by-side with humans. The great thing is we can easily scale, by adding robots on the fly. “Integrating all types of robots from different manufacturers for different tasks will increase our flexibility. This will ensure on-time deliveries and meet our goals for growth.” The way Bechtle has reinvented its warehouse operation using WMS allied with robotics is “definitely a future vision for SAP”, says Davis: “Our customers want to make sure they can not only scale their operations, but also help their employees to move product – all with a view to keeping their own customers happy.”

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SCOTTISH GOVERNMENT

WRITTEN BY: GEORGIA WILSON PRODUCED BY: CRAIG KILLINGBACK

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Scottish Government’s Lynn Wisener, Deputy Director of eCommerce and Procurement Best Practice, discusses the government’s use of eCommerce in public procurement

s Deputy Director of eCommerce and Procurement Best Practice, Lynn Wisener, has been a part of the Scottish Government, and the Scottish Procurement and Property Directorate, since 1999. “Like most graduates, I just applied for every job going,” says Wisener, “and 23 years ago, the Scottish Government was recruiting for procurement graduates and I was appointed as a Procurement Officer.” She adds: “I have held quite a few different procurement positions during the last 23 years from operational procurement, to establishing one of the procurement Centres of Expertise, to the position that I hold now as Deputy Director of eCommerce and Procurement Best Practice.” 20 years of the eCommerce & Procurement Best Practice Shared Service In the last 20 years, the Scottish Government, in collaboration with public sector bodies across Scotland, has been deploying its national eCommerce and Procurement Best Practice Shared Service to support, embed and underpin public procurement processes and procedures. When she first joined the Scottish Procurement and Property Directorate there were pockets of collaboration across the public sector but, as Wisener explains, “there was recognition that there was duplication 136

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SCOTTISH GOVERNMENT

Scottish Government harnessing eCommerce in Procurement

“ We’ve got such a lot of data which has a powerful story to tell” LYNN WISENER,

DEPUTY DIRECTOR OF ECOMMERCE AND PROCUREMENT BEST PRACTICE, SCOTTISH GOVERNMENT

of effort and fragmentation of approach in how public bodies were engaging with the supplier base, how requirements were being tendered, and how contracts were being managed.” “But we didn’t have a full picture,” says Wisener. “We didn’t have the data to support it, and it was a very laborious process to build an accurate picture of what was being bought, from whom and for how much, identify opportunities for future collaboration, and understand risk 138

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profiles across different commodities. So we created an eProcurement Strategy and put in place the national eCommerce & Procurement Best Practice Shared Service to digitally transform procurement, enable the gathering of vital supply chain data and intelligence and make it easier for suppliers to do business with the public sector.” She adds: “In the last 20 years, we have gone from simply offering e-tendering (PCS-Tender) and purchase-to-pay (PECOS) capability, to providing a contract advertising

LYNN WISENER TITLE: D EPUTY DIRECTOR OF ECOMMERCE AND PROCUREMENT BEST PRACTICE INDUSTRY: ECOMMERCE LOCATION: SCOTLAND

portal (Public Contracts Scotland - PCS), spend analytics capability (the Procurement Information Hub), e-invoicing (PECOS), and enhanced catalogue management functionality (PECOS). We have also embedded Open Contracting and Open Government commitments via PCS where there is now a separate section that allows anyone to download contract opportunities and awards in a variety of different formats, and we are continuing to enhance procurement transparency through the

EXECUTIVE BIO

Lynn joined the Scottish Government over 20 years ago as a procurement graduate and has held a number of senior procurement and commercial roles within Scottish Procurement & Property Directorate where she is currently the interim Deputy Director for eCommerce & Procurement Best Practice. She was part of the management team that established Advanced Procurement for Universities & Colleges (APUC) the centre of procurement expertise for higher and further education in Scotland. Lynn is a Member of the Chartered Institute of Procurement and Supply (MCIPS) and has been accredited at the UK Government Commercial Organisation assessment centre.

Supply Chain Solutions: Intelligent, Versatile, and Integration-Friendly. ELCOM supports organisations to optimise their Supply Chains whether they are buying or supplying. Smart and versatile supply chain technology is crucial to building a resilient supply chain capable of navigating through uncertain times.

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The Scottish Government partners with ELCOM for its Purchase to Pay (P2P) services Grant Smith, Chief Operating Officer, discusses the Scottish Government’s partnership with ELCOM for its P2P services as well as their future plans. Founded in 1998, ELCOM is a provider of supply chain solutions. The company has offices across the UK and in the US. ELCOM’s journey began as a hardware reseller, developing its backoffice systems with MIT in the US. That software was the beginning of ELCOM’s PECOS solution. After selling the hardware business in the early 2000s, ELCOM centred its focus around its PECOS P2P solution. Since joining the company in 2019, Grant Smith, Chief Operating Officer and Project Director for the PECOS P2P service for the Scottish Government had significant input into the growth of ELCOM’s product offering into a modular end-to-end supply chain solution — which is often referred to as a spend management software-as-a-service (SaaS) solution. “The modular aspect of the solution means that the software can be deployed a module at a time, or as an entire end-to-end solution,” says Smith.

ELCOM and its partnership with the Scottish Government Working with the Scottish Government, ELCOM provides the software, and in conjunction with Leidos, the supporting services for the PECOS P2P shared service for the Scottish Public sector. Smith comments: “The Scottish Government’s eCommerce shared service is internationally regarded as the world’s most successful e-procurement service, and PECOS is a core component of that service. PECOS covers the whole process from requisition through to purchase order, receipting, invoice matching, delivering catalogue content management and electronic trading.” ELCOM and its future with the Scottish Government Over the last 20 years, ELCOM has developed a strategic partnership with the Scottish Government. “This partnership has resulted in innovative solutions that deliver value for the Scottish public sector, the Scottish taxpayer, and local Scottish communities.” says Smith. “We don’t stand still though. We plan to work on further innovations in the form of data analytics, supplier services, supply chain funding, and the practical application of artificial intelligence that we’re certain will deliver even more value for the Scottish Government and the wider Scottish economy.”

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“ We have over 200 public bodies using our Shared Service, and we have thousands of suppliers interacting each day with these public bodies” LYNN WISENER,

DEPUTY DIRECTOR OF ECOMMERCE AND PROCUREMENT BEST PRACTICE, SCOTTISH GOVERNMENT

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SCOTTISH GOVERNMENT

THE PURPOSE OF THE SCOTTISH GOVERNMENT

DID YOU KNOW...

The purpose of the Scottish Government is to focus on creating a more successful country with opportunities for all of Scotland to flourish through increased wellbeing, and sustainable and inclusive economic growth.

Scottish Government’s Open Government Action Plan.. We are also improving our data and reporting capabilities through the delivery of a management information (MI) platform to provide enhanced business intelligence on procurement activity across Scotland.” That’s not all, though: the Shared Service also provides procurement best-practice guidance for buyers and suppliers through the Procurement Journey and the Supplier Journey, which provide step-by-step support and advice on how to procure through the public regime. Wisener and her team also work closely with the Supplier

The National Performance Framework sets an overall purpose and vision for Scotland. It highlights the broad national outcomes that support the purpose and provides measures on how well Scotland is progressing towards them.

Development Programme, which provides free training to Scottish SME suppliers and third sector organisations on how to win public contracts and grow their businesses. And it’s not just the Scottish Government utilising these capabilities, as Wisener explains: “Our Shared Service is available to the entire public sector - health boards, local authorities, central government bodies, universities, colleges and third sector bodies. So we’ve got a huge amount of procurement activity operating across our entire service.” It’s safe to say, this is no typical procurement solution. “We have over 200 public bodies using our Shared Service,” says Wisener. “And we have thousands of suppliers interacting each day with these public bodies.” Over the course of last year, the Service published over 11,000 contract opportunities, issued over 2,000 invitations supplychaindigital.com

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Resilient operations and logistics from glaciers to galaxies. It takes Leidos.

Digitally transforming supply chains

The success of supply chains has become a key concern for industry. The COVID-19 pandemic has highlighted the criticality of resilient logistics and supply chain management, with speed and efficiency being key in delivering urgent provisions worldwide. For much of the last decade, efficient supply chains were seen as key in running profitable global businesses. Inefficient supply chain systems cause disruption to operations, to customers and profitability and many are starting to creak under the environmental factors not limited to COVID-19, staffing, and global delivery. To be more resilient supply chains require digital transformation, designed to be agile to respond to the unexpected. Leidos has repeatedly demonstrated its ability to transform logistics through digital transformation and an ability to deliver anywhere in the world and beyond. Examples include: • NASA Cargo Mission Contract – planning, processing and packing critical cargo to the International Space Station. • National Science Foundation’s Antarctic Support Program – running the world’s longest supply chain to Antarctica, covering 20,000 miles. • Scottish Government’s Purchase to Pay Shared Service – Facilitating over 60% of Scottish public sector purchasing. Processing approximately 230,000 monthly supplier orders, worth over £5B per annum. • The UK MOD Logistics Services Transformation Programme – A £6.7B, 13-year The success of supply chains has become the a keyDefence concern for industry. The COVID-19 has contract to digitally transform supply chain, building pandemic cutting-edge highlighted the criticality of resilient logistics and supply chain management, with speed and efficiency technology to manage 200+ supply contracts and deliver to over 600 locations

Digitally transforming supply chains

being key in delivering urgent provisions worldwide. To be more resilient supply chains require digital transformation, designed to be agile to respond to the unexpected.

Leidos has repeatedly demonstrated its ability to transform logistics through digital transformation and an ability to deliver anywhere in the world and beyond. Examples include: ►

Scottish Government’s Purchase to Pay Shared Service – Supporting 101,000 registered users and processing over 2 million orders with combined value of circa £7.6Bn.

►

The UK Ministry of Defence Logistics Services Transformation Programme – A £6.7Bn, 13-year contract to digitally transform the Defence supply chain. The programme has assisted in national crises, such as the Ministry of Defence support of the NHS supply chain during the COVID-19 pandemic.

►

National Science Foundation’s Antarctic Support Program – Running the world’s longest supply chain to Antarctica, covering 20,000 miles.

►

NASA Cargo Mission Contract – Planning, processing and packing critical cargo to the International Space Station.

During times of adversity, you need resilience, collaboration and a partner who can deliver digital transformation. You need Leidos.

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ENSURING DATA QUALITY The Scottish Procurement Information Hub provides the national analysis of spend by over 100 public sector organisations in Scotland. This has been a key enabler for the public sector reform programme, which has facilitated collaborative procurement between public bodies, maximised efficiency and delivered savings. DXC’s dedicated team of procurement data specialists has deep domain knowledge of the complexities of public sector procurement data. The team has built technology solutions, reference datasets and automated data cleansing and enrichment processes that combine and enrich data from over 250 source systems. Using an optimum balance of human machine teaming, the high-quality data analysis delivers answers to key business questions that drive business outcomes. This trusted data foundation, which is accessed through a purpose-built user interface, is available for over 500 procurement professionals to self-serve. A spokesperson from the Scottish Procurement MI and Reporting Branch said, “It is essential to have access to

high-quality data because it is used to provide accurate public spending information to Scotland’s regulatory bodies, politicians and the media, and to fulfill freedom of information requests. Through collaborative working and DXC’s efforts to ensure data quality, the time and effort required for the Scottish Government to respond to information requests has been reduced and transparency of Scottish public sector procurement spend has increased”. “It is important that public bodies in Scotland have confidence in the data. The data has been thoroughly analysed and classified to ensure that the content is of the highest quality, and that makes a big difference,” they said. “Having easy access to a national view of spend, across multiple years, that drills down to an individual buying organisation level, provides us with huge benefits and is something the Scottish Government is very proud of. International governments look to Scotland as an exemplar in this regard.”

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SCOTTISH GOVERNMENT

LYNN WISENER,

DEPUTY DIRECTOR OF ECOMMERCE AND PROCUREMENT BEST PRACTICE, SCOTTISH GOVERNMENT

to tender, processed over 2 million purchase orders with a combined value of approx. £7.6bn, validated over 323k e-invoices and analysed more than £13.3bn of public procurement spend. “As you can see, the Shared Service manages a significant amount of procurement activity, supports a huge number of procurement professionals and suppliers, makes processes easier, streamlined and efficient, all of which maximises the impact of procurement to deliver a greener and fairer economy,” says Wisener. She adds: “It also supports the four strategic objectives of public procurement in Scotland (#PowerofProcurement) which are: good for businesses and their employees; good for society; good for places and communities; and open and connected”. With it not only being the Scottish Government utilising the solutions provided, Wisener and her team are constantly looking

THE SCOTTISH GOVERNMENT HARNESSES ADVANCED TECHNOLOGIES

DID YOU KNOW...

“ We have managed to deliver huge efficiencies to procurement processes and procedures not only for public sector professionals but for suppliers as well”

“We have AI in most of our solutions, particularly for repetitive tasks such as e-invoicing and running some activity reports,” explains Wisener. “We are now piloting further automation and robotics in P2P processes, to completely remove manual intervention within the invoicing process, to ultimately reduce processing times, and free up individuals so they can focus their efforts on more high-value tasks.”

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THE SCOTTISH GOVERNMENT AND ITS PARTNERS When it comes to the Scottish Government’s eCommerce & Procurement Best Practice Shared Service, Wisener explains that there are five core providers, all of whom play a crucial role in the success of the Service. Elcom This partner provides PECOS, the purchaseto-pay (P2P) solution that manages catalogues, transactional websites, orders, receipts and invoices. “They have been with us from the very beginning,” says Wisener. “The very first purchase order was raised on 25 March 2002 and since then over 32 million orders have been processed with a total value of £73 billion. They have been with us throughout our entire journey and have been heavily involved in our transformation.” LEIDOS This partner provides the infrastructure, hosting and service support for PECOS. Wisener says: “Leidos ensures that the operating environment for PECOS is maintained to the highest standards, supporting continuity and stability of service and delivering continuous improvements in how the service is utilised by user organisations”. Proactis This partner provides Public Contracts Scotland (PCS) - the contract advertising portal - which has revolutionised the way that the Scottish public sector interacts with its suppliers when it comes to advertising opportunities. Wisener says: “Traditionally, suppliers would look through trade magazines or newspapers to find the opportunities they wanted to bid for. But PCS provides a onestop-shop and free access for suppliers

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wishing to do business with the public sector in Scotland. It provides suppliers with alerts to opportunities that are a good fit for their business and allows prime contractors delivering a public sector contract to advertise sub-contract opportunities. It is mandatory for all contract opportunities over £50k (for supplies and services) and £2m (for works) to be advertised and awarded on PCS.” DXC This partner provides the Procurement Information Hub which provides spend analytics capability. Wisener says: “It enables public procurement teams across Scotland to gain visibility into where money is being spent and with whom; identify spend at a local, regional and national level; identify local suppliers and SMEs; and identify further collaborative opportunities. It also supports Community Wealth Building projects where local and regional spend is assessed to identify opportunities to increase spend with local suppliers, build local supply chains and identify where local areas or suppliers would benefit for economic support.” JAGGAER This partner provides PCS-Tender, the national eSourcing platform. Wisener says: “It enables public sector procurement teams and suppliers to manage procurement exercises in a controlled environment. The Procurement Journey has been embedded in workflow to ensure that tender exercises adhere to legislation, policy and best practice. It also provides contract and supplier management capability which helps to bring consistency and standardisation in how we manage our contracts and how we monitor and record the delivery of key outcomes and measures such as Community Benefits and Fair Work.”

SCOTTISH GOVERNMENT

at how the Shared Service can refresh, enhance and evolve through innovation such as robotics and artificial intelligence. The government is also looking at how it can make reporting and management information more robust and accurate to support enhanced supply chain analysis as well as identify and evaluate associated risks and opportunities. What’s next for the Scottish Government? For the Scottish Government, the next stage of procurement transformation is going to be all about MI and data. “We’ve got such a lot of data which has a powerful story to tell,” says Wisener. She adds: “But at the moment, it’s located in different solutions

which makes it difficult to extract and bring together in a cohesive manner. So we are working on introducing an overarching Procurement MI Platform where we can bring data from key sources into one place and provide powerful business intelligence and enhanced reporting capabilities to enable public bodies to demonstrate the impact of their own procurement activity on their organisations as well as in the delivery of key outcomes at a local and national level.” For the next 12 to 18 months, the Scottish Government will be working to refresh its eCommerce and Procurement Best Practice Strategy, consulting widely with its user base and the market in relation to what comes next in eCommerce and procurement solutions to ensure that the Service continues to deliver best-in-class capability, embeds innovation and enables public bodies and suppliers to maximise the #PowerofProcurement.

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SUPPLY CHAIN INFLUENCERS A look at some of the leading voices in supply chain, from across management consultancies, technology providers and manufacturing multinationals WRITTEN BY: SEAN ASHCROFT

upply chain is experiencing a period of turbulence and change the likes of which has not been seen in at least a generation. Those who have the greatest insight into this situation

are the management consultants, technology providers and business analysts who are most closely connected to it. Here, we pick 10 supply chain figures whose views on the subject carry real weight.

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Lora Cecere Founder

Supply Chain Insights Supply Chain Insights was founded in February 2012 by Cecere. Research is at the centre of what Insights does, with its offerings including speaking, advisory services, community enablement and training. “We want to be the first place supply chain leaders turn to help their supply chain teams get better,” she says. She is also co-author of the book, Bricks Matter: The Role of Supply Chains in Building Market-Driven Differentiation.

“We want to be the first place supply chain leaders turn to help their supply chain teams get better” 152

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Michael Corbo

Chief Supply Chain Officer

Colgate Palmolive

Corbo is an experienced Chief Supply Chain Officer (CSCO) with a comprehensive history in the consumer goods industry. He has spent his entire career with Colgate, working across a variety of different positions. He is skilled in negotiation, operations management, supply chain optimisation, consumer products and demand planning. Corbo is currently leading Colgate Palmolive’s transformation to a digital supply chain.

TOP 10

“He has founded or co-founded five successful companies: LogiCorp; PTCG; e-Chemicals; Logistics.com; and Syncra Systems”

Dr Dirk Holbach

CSCO, Laundry & Home Care

Henkel

Havard-educated Holbach is responsible forLaundry Home and Care’s end-to-end supply chain, with his business unit counting for US$6.9mn in sales. Holbach has six regional hubs, 33 factories and 47 warehouses within his remit. He has worked at Henkel over the past 26 years in a variety of roles, beginning as a Junior Manager of Corporate Purchasing. During his career, Holbach’s focus has been on supply chain strategy, organisation development, network optimisation, continuous improvement and post-merger integrations.

Dr Yossi Sheffi Director

MIT Centre for Transportation & Logistics Dr Sheffi is an expert in systems optimisation, risk analysis, and supply chain management. He also serves as the Director of the Centre for Transportation and Logistics. He is the author of several bestselling books, including The Resilient Enterprise, Urban Transportation Networks, Logistics Clusters, and The Power of Resilience. He has founded or co-founded five successful companies: LogiCorp; PTCG; e-Chemicals; Logistics.com; and Syncra Systems. supplychaindigital.com

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When you can have a global footprint without the carbon footprint. That’s Economics. SAP can help optimize your supply chain for lower emissions and greater profit. sap.com/economics

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John Kern

06 Ivanka Janssen

Chief Supply Chain Officer

Philips

Janssen is an experienced supply chain leader with 21 years’ international management experience in operations, manufacturing, supply chain, route to market, logistics, customer service and procurement. She is focused on creating a competitive edge. Prior to her role at Philips, Janssen served as VP Supply Chain, Europe, Eastern Europe and Sub-Saharan Africa at PepsiCo. “The more you can reflect society in your work environment, the closer you are to where the consumers and customers are,” she says of diversity in the workplace.

SVP, Supply Chain Operations

Cisco

Kern leads a diverse global team, who are responsible for manufacturing, new product introduction, product lifecycle management, sourcing and supplier management, planning, logistics and product quality. He has led efforts to digitise Cisco’s supply chain, as well as evolving Cisco’s growth in software and cloud-delivered solutions. Kern is leading the company’s circular economy effort and is serving as the executive country sponsor for India and Brazil.

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Martin Barkman

Senior Vice President, Global Head of Solution Management, Digital Supply Chain

SAP

As a chemical engineering undergraduate at Cornell University, Barkman took classes with Pulitzer Prizewinning astronomer, writer and broadcaster, Carl Sagan. He joined SAP in 2013 when it bought partner company SmartOps, of which he was CEO. Since then, he has occupied various roles in supply chain management at SAP - first driving growth and introducing a new planning solution and, most recently, being responsible for solution management for its vast digital supply chain portfolio. “The technologies that are helping drive us towards sustainability are the same ones that enable consumers to behave in ways that aren’t so sustainable,” Barkman has observed.

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Knut Alicke

Partner & Head of Supply Chain Europe

McKinsey

Alicke advises companies on supply chain management and digital supply chain transformations. He also leads the McKinsey Supply Chain Executive Academy, which helps build client capabilities. He is a professor at University of Karlsruhe, where he teaches supply chain management. “Most supply chain execs say they need to improve by increasing supply chain visibility,” Alicke has said.

TOP 10

Marc Engel CSCO

Unilever

Having worked at Unilever for over 20 years, Engel has extensive experience in supply chain operations, covering procurement, logistics, finance and strategy development. Before being appointed Chief Supply Chain Officer, Engel had an executive leadership role in Unilever’s East Africa business, where he was responsible for laying the foundations for accelerated growth. He has an MSc in applied physics from the University of Groningen in the Netherlands.

“ Engel has extensive experience in supply chain operations, covering procurement, logistics, finance and strategy development” supplychaindigital.com

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TOP 10

“ Wengel leads all aspects of the J&J supply chain across Consumer Health, Medical Devices and Pharmaceuticals”

Kathryn Wengel

Executive VP and Chief Global Supply Chain Officer

Johnson & Johnson

Wengel leads all aspects of the J&J supply chain across Consumer Health, Medical Devices and Pharmaceuticals. She builds globally diverse teams and is also a Chairman of the Board for GS1 Global, an organisation that sets and maintains standards regarding the exchange of critical business data. In 2019, Wengel was recognised by the Council of Supply Management Professionals, receiving its Distinguished Service Award, the top cross-industry supply chain honour, and was inducted into the Supply Chain Hall of Fame.

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VISA

VISA EUROPE’S ESG ON A ROLL IN PROCUREMENT AND SUPPLY CHAIN WRITTEN BY: SCOTT BIRCH

PRODUCED BY: GLEN WHITE

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Visa Europe CFO Rob Livingston and CPO Alisa Bornstein explain how a focus on procurement and supply chain is driving the payments giant’s ESG strategy

he Chief Procurement Officer’s engagement with the C-Suite is growing, and increasingly Chief Financial Officers recognise the value that a close relationship between the two executive functions can bring to the business and its commercial goals. “Over the past two years of the pandemic, we've had the opportunity to take a closer look at the resilience of our supply chain and how closely connected that supply chain is with the communities where we are,” says Rob Livingston, Visa Europe CFO. “During that time, there have been two elements that have leapt to the forefront in terms of how we think about procurement. The first one is around sustainability and making sure that we have a supply chain that is going to reflect our goals as a corporation in terms of our environmental and other impacts on society. “The other element that we really focused on is the diversity of our supply chain – making sure that we were resilient and support diverse and small businesses. Having backup suppliers for the most critical functions is key, as is thinking about diversity in terms of ensuring that we're supporting businesses that are owned by women, or led by women, and minority-owned businesses here in Europe and around the world.

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ROB LIVINGSTON TITLE: CFO INDUSTRY: INFORMATION TECHNOLOGY & SERVICES LOCATION: UNITED KINGDOM

Rob Livingston is Chief Financial Officer for Visa Europe. In this role, he oversees Visa’s financial strategies, planning and reporting, in addition to all finance operations and corporate real estate in Europe. He is based in London. Prior to this role, Rob was SVP for Strategic Initiatives in Beijing. From 2013-2017, he was Visa’s Country Manager for Canada, where he oversaw the strategic direction, key relationships, marketing, operations and financial performance of Visa’s Canadian business. Before joining Visa in 2013, Rob worked at Capital One for 18 years in the US, UK, France and Canada, most recently as President of Capital One Canada. Rob is Past Chair of the Board of Directors of the Boys and Girls Club of Canada. He received his degree in Economics from Yale University.

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“People trust Visa because of what we bring to the global economy” ROB LIVINGSTON CFO, VISA EUROPE

EXECUTIVE BIO

COMPANY: VISA EUROPE

VISA

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“ At Visa, we are focusing on sustainability and diversity in our supply chain. That's the highest priority” ALISA BORNSTEIN CPO, VISA EUROPE

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“This work is central to our purpose – everyone deserves an equal chance at economic prosperity.” Livingston joined Visa in 2013 to lead Visa’s Canadian business before then moving to China in 2017. He became Visa Europe’s CFO in July 2019 so the majority of his tenure in this role has been set against the backdrop of the pandemic – which has transformed the nature of payments and procurement. “We were looking to bring procurement more to the centre of our business strategy,” says Livingston. “So I was thrilled to be able to hire Alisa Bornstein to join Visa Europe as our Chief Procurement Officer. She's got a fantastic background and a deep knowledge of procurement.” supplychaindigital.com

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ALISA BORNSTEIN TITLE: CPO COMPANY: VISA EUROPE INDUSTRY: INFORMATION TECHNOLOGY & SERVICES LOCATION: UNITED KINGDOM

“Procurement is not my profession – it is my passion!” ALISA BORNSTEIN

EXECUTIVE BIO

CPO, VISA EUROPE

Alisa Bornstein is Chief Procurement Officer for Visa Europe. Alisa has more than 25 years of international procurement experience, most recently as global CPO at semiconductor leader Arm, before joining Visa Europe in January 2021. Alisa has also held senior leadership roles at BT, Millicom, and Eriksson, to name just a few. She has a strong track record of leading and transforming procurement organisations, operating effectively cross-borders in mature and emerging markets and functions. She is a passionate advocate for value-creating and business-focused procurement, utilising its unique position within the value chain to deliver new sources of value to the business.

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Bornstein made a name for herself in procurement while CPO of UK semiconductor and smart technology design company, Arm, based in Cambridge, England. While at Arm, Bornstein designed and executed a procurement transformation, from maturing the function to digitising and automating end-to-end source-to-pay

(S2P) processes. Bornstein joined Visa Europe in January 2021 and has been tasked with elevating procurement in line with leading practices and standards, including state-of-theart business support. She embarked on a transformation of the function, and continues to advocate the importance of procurement and supply chain as a supplychaindigital.com

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VISA

strategic part of the business ecosystem. “This is not about having a seat at the table,” says Bornstein, “but to ensure that we, as procurement professionals, listen, understand and support the business and use the power of the supply chain to deliver value to our organisations. True procurement leaders have shifted from being operational in the past to becoming strategic business partners. Collaboration and partnership is my passion. This is something I believe in, and this is what 174

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we have at Visa.” The importance of third party suppliers Going back to sustainability and diversity, they are key drivers of the changes being seen in procurement at Visa Europe, and Bornstein says these are big opportunities for many organisations who haven’t yet leveraged their supply chain. Visa Europe has literally thousands of suppliers and one key area of focus for Bornstein is to better understand the thirdparty suppliers’ ESG credentials to support

“We were looking here in Europe to bring procurement more to the centre of our business strategy” ROB LIVINGSTON CFO, VISA EUROPE

INSIGHT...

BACK TO BUSINESS The sixth edition of Visa’s Global Back to Business study published earlier this year showed that 90% of small businesses surveyed with an online presence said they were optimistic about the future, with nearly three quarters (73%) saying accepting new forms of digital payments was fundamental to growth in 2022. Since the start of the pandemic, Visa has launched a variety of programmes to help small businesses accept digital payments and gain greater access to the digital economy.

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“As a procurement leader I strive to be a strategic partner to the business. My goal is to drive meaningful impact to the business” ALISA BORNSTEIN CPO, VISA EUROPE

Visa Europe’s ESG on a roll in Procurement and Supply Chain

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company-wide objectives and initiatives. “Procurement can drive innovation by utilising suppliers’ knowledge in their own space,” says Bornstein. “It's very well positioned to drive ESG, sustainability and diversity. Visa recognises that third-party suppliers are important stakeholders. “Today they provide services and products to us, tomorrow they might become our partners and ultimately, as both businesses and

individuals, they use our payment solutions.” To support Visa Europe in its ESG initiatives, the Procurement team has entered into a partnership with EcoVadis to help assess their supply chain. The aim is to provide a better understanding of suppliers: who they engage in their business from an ESG perspective, and how Visa can together improve the communities in which they operate. That partnership with EcoVadis helps to supplychaindigital.com

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provide insights into Visa’s supplier base, which is more important than ever when it comes to risk mitigation – something demonstrated by the pandemic. However, this spotlight on suppliers goes beyond highlighting potential problems – it has benefits for the suppliers too, with Visa being able to identify those that may need extra assistance or support in these unprecedented times. “We are focusing on sustainability and diversity in our supply chain,” says Bornstein. “That's our highest priority. Working with and supporting small businesses is extremely important to Visa Europe and Visa overall, and procurement as a function has a role to play.” One example of that supportive role is the aspiration to operate in line with the UK Government Prompt Payment code and change SME payment terms to 30 days, to help small companies through tough times and recognise their importance to Visa Europe. “The pandemic has been incredibly tough on small businesses more than anyone else,” adds Livingston. “What we are trying to do at Visa is to support small businesses as they recover from the pandemic and then accelerate their business in the future, and the main way we can help them do that is by

“ What we are trying to do at Visa is to support small businesses as they recover from the pandemic and then accelerate their business in the future” ROB LIVINGSTON CFO, VISA EUROPE

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helping them go digital. “Even today, less than half of small businesses in Europe have a digital presence for ecommerce, and that's something that creates tremendous opportunity for a rebound in the future. We've made a multiyear commitment to digitise 50 million small and medium businesses around the world and we're already halfway there.” Visa is able to implement this farreaching initiative by combining its global strength with local knowledge. Operating in

1958

Year founded

20,500

Number of employees worldwide (2020)

more than 200 countries gives Visa unique insight into what’s important to clients, consumers and merchants in each of those locations. Visa’s sustainability ambitions go far beyond supporting SMEs and promoting ecommerce. “Visa as a company is committed to achieving net-zero carbon emissions by 2040, which is 10 years faster than the Paris Agreement,” says Livingston. “The way that we're doing that is the way that all companies do – through offsets and

changing behaviour of our employees and our suppliers. But at Visa we can also provide sustainable products and solutions that our clients’ banks can offer consumers to help them manage their carbon footprint. This has incredible power over the long term.” The future of digital payments The payments ecosystem witnessed an acceleration in digital transformation during the pandemic, and it is important for Visa to maintain some of the benefits supplychaindigital.com

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“Driving ESG in our supply chain means we can influence some big changes in the culture, attitudes and behaviours around it, to protect the planet” ALISA BORNSTEIN CPO, VISA EUROPE

for the future – from contactless payments to online shopping – while also making preparations for the global recovery. “We're just at the beginning of cross border travel starting to come back,” says Livingston. “People are feeling confident enough to go overseas on holidays, and those are all good for the global economy and they're good for Visa. “The speed of that return of business as usual is going to be important, but we can't lose sight of the fact that so much has changed.” When you accept payments in more than 80 million locations, and process thousands of secure transactions every second, everybody knows your name – but does everyone fully appreciate what Visa does? “This is what we bring to the table,” says Livingston. “We are a global brand operating locally. We're one of the most ubiquitous brands in the world, but not everybody knows exactly what we do. What Visa does is facilitate commerce each and every day, all around the world. “We enable consumers to buy things in person at stores or online, and we facilitate money transfer from businesses to businesses, from banks to banks. “People trust Visa because of what we

bring to the global economy. We offer extraordinarily fast and secure transactions for everyday use and we have the world’s leading security infrastructure governing digital payments. “There's nothing more important to us than ensuring that Europeans are able to use their card anytime and everywhere they want to be.”

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LEADER IN

SUSTAINABLE

BEVERAGE PRODUCTION WRITTEN BY: GEORGIA WILSON

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PRODUCED BY: TOM LIVERMORE

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ASAHI BEVERAGES

David Baxter, Group GM of Direct Procurement, Asahi Beverages, breaks down the company’s approach to sustainability and maintaining resilience during COVID-19

avid Baxter’s career journey in the beverages industry began over 20 years ago, working for Southcorp Wines in supply chain planning. Following this, Baxter worked for many beverage companies - including Foster’s Group, Carlton & United Breweries, and Treasury Wine Estates - before joining Asahi Beverages. Today, Baxter is the Group General Manager of Direct Procurement of Asahi Beverages. “I could not think of a better industry to work in,” says Baxter. He adds: “I'm responsible for leading an incredible team whose core role is to identify, contract, and manage suppliers to meet Asahi Beverages’ manufacturing requirements.” Being the leading beverages company in Australia and New Zealand, Asahi Beverages produces quality alcohol and non-alcohol beverages. “We have a strong portfolio of established household brands, as well as innovative new products,” says Baxter.

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He adds: “Our company's vision is to bring enjoyment and connection to everyday moments in life.” In the last two years, Asahi Beverages has evolved significantly. Its acquisition of Carlton & United Breweries scaled the company, making Asahi Beverages the leading beverages manufacturer in Australia & New Zealand. “Our footprint literally

“ OUR COMPANY'S VISION IS TO BRING ENJOYMENT AND CONNECTION TO EVERYDAY MOMENTS IN LIFE” DAVID BAXTER

GROUP GENERAL MANAGER OF PROCUREMENT, ASAHI BEVERAGES

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doubled in size to produce more than two billion litres a year,” says Baxter. Asahi Beverages and its approach to sustainability As a market leader in the beverage industry, Asahi Beverages is committed to ensuring Australians and New Zealanders are enjoying and connecting with its products in a sustainable way that protects the planet. Baxter says: “We have some key strategic initiatives that we've put in place. As a market leader, we feel it's imperative to lead on sustainability and set key targets to not only protect our planet, but in a way that also grows our business and shows the world that we are leaders in sustainability.” Following its acquisition of Carlton & United Breweries, Asahi Beverages began to grow significantly overnight. Due to its portfolio, volume and spend the challenge for Asahi Beverages was to become one team. “We did remarkably well,” says Baxter 186

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He adds: “Due to COVID-19, most of the transition occurred within a virtual environment, but we are very fortunate to have a young and dedicated team of procurement professionals focused on implementing and delivering key strategic initiatives that meet our Mid-Term Plan and have a huge positive impact on delivering our sustainability goals.” This year, Asahi Beverages has been working on a number of sustainability initiatives including its barley programme, raspberries programme, and packaging strategy. Baxter says: “Developing our barley programme gave us oversight into the growing process to ensure the best quality barley is used in our beers. This programme allows us to track provenance of barley and gives us direct relationships with more farmers. “With this relationship, farmers have a direct link to our strict quality parameters,

DAVID BAXTER TITLE: GROUP GENERAL MANAGER OF PROCUREMENT INDUSTRY: FOOD AND BEVERAGE

EXECUTIVE BIO

LOCATION: AUSTRALIA Having been in the Beverage industry for over 20 years and working across Australia, Europe and the US, David Baxter takes pride in developing and sustaining strong strategic partnerships with all suppliers. Currently Procurement Group General Manager (Directs) for Asahi Beverages, Baxter leads a talented and dedicated team who is goals & results driven, and focused on sourcing the best ingredients, packaging and equipment that brings Asahi’s amazing brands to life. Baxter is also very passionate about sustainability and delivering on the targets Asahi have set themselves. Studying in both Brewing and Wine, Baxter has a good technical understanding that allows him to collaboratively work with internal and external stakeholders. Knowing the importance in developing and retaining talent, Baxter ensures he dedicates ample time in supporting his team. “In Procurement, everyone talks about building relationships with your suppliers, I think you should build your relationships with your team first”.

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“ DEVELOPING OUR BARLEY PROGRAMME GAVE US COMPLETE OVERSIGHT INTO THE GROWING PROCESS TO ENSURE THE BEST QUALITY IS USED IN OUR BEERS” DAVID BAXTER

GROUP GENERAL MANAGER OF PROCUREMENT, ASAHI BEVERAGES

and we can link on-farm practices to beer quality, and we can monitor other important factors, such as water usage, soil health and fertiliser usage to ensure we meet our sustainability targets.” Asahi Beverages has also adopted ambitious goals around sustainable energy. To help achieve this, it recently installed Australia’s largest solar project at their Australian brewery at Yatala in Queensland, with around 7,000 solar panels now harnessing the Queensland sun. Baxter says: “We will source 100% of our purchased electricity from renewable sources by 2025. We will then reduce emissions across our entire supply chain to net zero by 2050 - from the farmers who grow our ingredients through to our manufacturing sites and the vehicles that deliver our beverages. Making the decision to switch its current raspberry supply chain and start using locally-grown raspberries, Baxter explains the benefits: “We made the switch to Tasmanian-grown raspberries because of their quality, their more reliable supply and Asahi’s commitment to supporting Australian farmers.” He adds: “Asahi Beverages’ products are made with the best raw ingredients, so it really doesn’t get any better than sourcing fresh world-class produce while supporting local farmers.” supplychaindigital.com

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Finally, when it comes to Asahi Beverages’ packaging, the company is committed to designing its bottles, cans, and other vessels to be sustainable. Asahi Beverages has committed to making all its packaging 100% recyclable, reusable or compostable by 2025. Working with suppliers in possession of visions and goals that align with its own, Asahi Beverages works with multiple bodies where improving sustainable packaging is a core focus. Baxter says: “We have recently formed a cross-industry joint venture with Pact Group, Cleanaway Waste Management Ltd

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and Coca-Cola Europacific Partners to build and operate two PET recycling facilities, one in NSW and one in Victoria. These will massively boost Australia’s PET recycling capacity. They will help transform recycling in Australia by providing a new, local source of high-quality recycled PET which we’ll use in products like our Cool Ridge water bottles. This is a major step towards helping us deliver a truly circular economy. “Each facility will be capable of processing the equivalent of around 1 billion plastic bottles - collected via Container Deposit

ASAHI BEVERAGES

Schemes and kerbside recycling each year. This will be converted into more than 20,000 tonnes of high-quality recycled PET bottles and food packaging by each facility, which will use state-of-the-art sorting, washing, decontamination and extrusion technology. Both facilities are receiving Commonwealth funding while each is also receiving support from its respectiv State Government.” In addition, Asahi Beverages has recently switched all of its 450ml and 600ml soft drink bottles to 100% recycled plastic. Navigating modern challenges in the beverage industry Like the stories of so many other people, the last two years have been some of the most challenging times in Baxter’s career. “With global shipping delays, labour shortages, high

BEING BOTH SUSTAINABLE NATIONALLY AND INTERNATIONALLY Asahi Beverages, as part of the Asahi global network, is demonstrating massive benefits in conducting its sustainability initiatives globally. Baxter explains: “Operating on a global scale means that we can leverage experience and initiatives that have been executed in other Asahi regions. We can also share those learnings and implement them in our region.”

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“ WE FEEL IT'S IMPERATIVE TO LEAD ON SUSTAINABILITY AND SET KEY TARGETS TO NOT ONLY PROTECT OUR PLANET, BUT IN A WAY THAT ALSO GROWS OUR BUSINESS AND SHOWS THE WORLD THAT WE ARE LEADERS” DAVID BAXTER

GROUP GENERAL MANAGER OF PROCUREMENT, ASAHI BEVERAGES

commodity prices, changes to consumer preferences, and all during a pandemic it has definitely built up resilience. It also shows the importance of business continuity planning and strategic relationships in the supply chain,” says Baxter. In order to stay ahead of these challenges, Baxter says: “There is risk in everything we do, but it's about understanding the level of risk you and your organisation are comfortable with, and then ensuring clear communication internally and externally. “This limits potential surprises, and helps to incorporate robust business continuity plans allowing organisations to react with speed should an issue occur.” Asahi Beverages and its suppliers Asahi Beverages works with thousands of suppliers in order to conduct its operations. “It is our responsibility to ensure that we build on those relationships,” says Baxter. He adds: “We share our strategic initiatives with our suppliers so that they can be a part of our journey, to meet our goals, and to ensure a strong focus on quality. We need partners that can work with us long term, those who have similar sustainability goals and can bring innovative ideas to the table so that we can work collaboratively.” Operating within Australia and New Zealand, Baxter explains that the company’s distance from both Europe and the US limits the suppliers it can choose from, stating: “We need to make sure that we are developing relationships with the suppliers we do have. Ensuring communication while delivering on strategic plans so that not only do we grow as a business, but our suppliers grow, too.”

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Supplier performance. Supplier risk. Supplier diversity and ESG. You've got big plans; Vendorful has the tools to help you execute. -