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FOREWORD
W
elcome to the September issue
with Markus Gartner, CEO of Fibre
of the Europe edition of
Packaging at Mondi, on the compa-
Business Chief!
This month’s coverpiece features
ny’s latest sustainability work. Asahi Europe’s Head of Procurement, Ian
an exclusive interview with the Global
Brenton, discusses the brand’s going
Head of Customer Experience & Digi-
‘glocal,’ and Kevin Lewis, Supply Chain
tal Strategy, Monika Schulze, who
Director at Staples UK, discusses the
elaborates on how customers are
office supplier’s transformation into a
truly at the heart of Zurich Insurance’s
logistics challenger.
digital strategy. We also hear from the head of sup-
Our city focus this month is Latvia’s capital, Riga, which, according to the
ply chain at Nando’s, Deon Pillay, who
Investment and Development Agency
declares that “digital transformation
of Latvia, “will be an internationally
will herald a new era for Nando’s.”
recognisable Northern European
Additionally, Heiko Rieder of Pentaho-
metropolis by 2030”. Business Chief
tels asserts: “In our industry we must
also takes a look at the top 10 most
never forget that the guest experience
sustainable cities across Europe.
is crucial.” Read on to discover how the hospitality space is changing. Solutions’ Supply Chain Manager for Allegis EMEA, Amy Fitzwarine-
Do you have a story to share? Please don’t hesitate to get in touch and you could be featured in our next issue.
Smith, shares how the talent solutions company maintains excellent relations
Enjoy the read!
with its customers and staff, and else-
Amber
where Sophie Chapman catches up
amber.donovan-stevens@bizclikmedia.com
e u r o p e . b u s i n e s s c h i e f. c o m
03
EUROPE EDITION EDITOR-IN-CHIEF
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CONTENTS
12 Zurich Insurance: where the customer comes first
26 Improving efficiency for a sustainable and digital future
36
Automation for a new era of smart manufacturing
44 MIR IMRAN Serial entrepreneur, CEO of Rani Therapeutics and inventor of the robotic pill
54
62 City Focus
RIGA EXCITING SUSTAINABLE CITY INNOVATIONS AROUND THE WORLD
SUSTAINABLE COMPANIES IN EUROPE
72
CONTENTS
BKW AG
112
Allegis
Staples
88 98
Asahi Europe
122 Pentahotels
140 Nando’s
12
Zurich Insurance: where the customer comes first WRITTEN BY
DAN BRIGHTMORE PRODUCED BY
JAMES PEPPER
SEPTEMBER 2019
13
e uro pe .busi ne ssc hief. com
ZURICH INSURANCE GROUP
Zurich Insurance Group is utilising customer feedback to drive its digital transformation
Z
urich Insurance Group has forged its reputation as one of the world’s leading and most trustworthy insurers over 140
years focused on caring for its customers and serving them. With roots in Switzerland, Zurich was originally founded as a marine insurer in 1872 before moving into a range of insurance fields 14
to help its customers understand and protect themselves from risk. The appointment of Mario Greco as Group CEO in 2016 heralded a simpler, more customer-oriented approach to support global and local business. Traditionally, the insurance industry has focused more on products than customer experience. Monika Schulze, Zurich’s Global Head of Customer Experience & Digital Strategy, believes technology is the key enabler to deliver the transformation that will continue to support the company’s customer goals. “Our focus on the customer journey and finding better ways to serve them is fascinating,” she says. “It means we have to change the culture of the company to work in a completely different way.”
SEPTEMBER 2019
15
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ZURICH INSURANCE GROUP
16
“ Our focus on the customer journey and finding better ways to serve them is fascinating,” she says. “It means we have to change the culture of the company to work in a completely different way” — Monika Schulze, Global Head of Customer Experience & Digital Strategy, Zurich Insurance Group
Schulze notes that the influence of companies like Amazon and Google is changing the expectations of customers who demand instant answers and are now used to immediate service. “They are not willing to wait on an agent to put it in black and white and then waiting two weeks for an answer on a claim,” adds Schulze. “In a world where technology plays an increasingly integral role, customers are used to getting an answer with the click of a button. We have to look at regions like Asia who are more advanced in their adoption of mobile technology to see what we can learn to remain customer led.” For Zurich, the digital transformation required is driven by customer experience. “You have to start with your customers’ feedback and analysing their journey,” confirms Schulze.
SEPTEMBER 2019
CLICK TO WATCH : ‘ZURICH DATA COMMITMENT’ 17 “You need to define a must-win area,
demonstrate how customers’ feedback
where you want to be better than the
and actions derived from that have an
competition and then delight your
impact on business results. For example,
customers so that they come back and
there is a correlation between higher
buy more. Technology is an enabler
NPS scores and retention rates,” she
to get to this position. The customer
says, of an approach which has shown
need, however, is the starting point
the executive team the potential of
for defining a superior position in
focussing more on customer satisfaction.
the market.” Schulze explains that the Net
Schulze highlights the challenge for global businesses like Zurich to identify
Promoter Score (NPS) program is
common pain points and find ways of
one source that has provided that
working together with joint solutions
valuable feedback from customers
to define efficiencies and become
which has pushed Zurich’s transforma-
more effective at deploying technology
tion. “It’s extremely important to
across the business. “My starting point e uro pe .busi ne ssc hief. com
The #1 Customer Experience Platform
See why Medallia is Zurich's Customer Experience partner of choice
“ Zurich won a UK Customer Satisfaction Index (UKCSI) award (climbing the index from 188th to 12th place) which was in part down to our communication around pay out of claims. We revealed that 99% of our claims are paid out.” — Monika Schulze, Global Head of Customer Experience & Digital Strategy, Zurich Insurance Group
forms part of a suite of services Schulze refers to as ‘the app store for Zurich’ offering, for example, chat bot functionality, journey mapping tools and claims apps. It’s all in one
is always to find similarities and then
space where countries can download
respect the differences,” she adds.
whatever they need and also adapt
“We have a global platform, every-
to their individual needs. Being able
body’s using the same vendor and
to fine tune them for their requirements
methodology, so the question is: ‘How
is hugely important to cater against
can we best work together to harness
their needs.”
synergies for positive change?’” Zurich deploys customer journey apps and technologies in order to help different countries map out those journeys and find new ways to serve the customer. “But you cannot rely solely on technology,” warns Schulze. “We do a lot of workshops because talking to customers and colleagues is essential; just to understand how they think, how they reacted, how you can improve. A lot of human interaction is needed on top of the technology platforms we are using.” The technology e uro pe .busi ne ssc hief. com
19
ZURICH INSURANCE GROUP
20
Schulze believes that customer
Allied to this, Schulze points out the
feedback also needs to be harnessed
company must be clear about its basic
for innovative ideas that build trust in
proposal and services. “Zurich won
the Zurich brand. “We need to ask
a UK Customer Satisfaction Index
ourselves how we can go beyond the
(UKCSI) award (climbing the index
traditional ways of serving our custom-
from 188th to 12th place), which was
ers and invent new things. We have
in part down to our communication
to be agile in our thinking to understand
around pay out of claims. We revealed
how to go further than the obvious.
that 99% of our claims are paid out.
We need a highly creative innovation
This is something that is extremely
team to look at things from different
important in order to build basic trust
perspectives.”
and counter the misconception that
SEPTEMBER 2019
insurance companies rarely pay out.
In order to drive renewed levels of
We looked at our numbers and realised
customer satisfaction Zurich partners
how impressive that statistic was.”
with Medallia, the market leader in
Published by the Institute of Customer
Experience Management, rolling out
Service, the UKCSI rates customer
an NPS expansion program across 25
satisfaction across 13 sectors, incorpo-
countries. “Don’t just buy a technology
rating the views of 10,000 consumers
platform from a vendor, but use your
on 247 brands. Zurich was also ranked
partnership to further develop your
first in the insurance sector for ethical
program. You can learn from other
business behaviours and connecting
companies and constantly improve
with consumers, and fifth and seventh
and develop further,” says Schulze.
respectively across all companies.
Medallia’s customer experience
E XE CU T I VE PRO FI LE
21
Monika Schulze “Working and living in different countries and environments enriched my life and allowed me to think about what it means to be a good leader to a diverse group of people and thus shaping me into what I am today, with 30 years of experience in strategy and business development including profit and loss responsibility in different roles, functions and market environments including assignments abroad,” says Zurich Insurance Group’s Global Head of Customer Experience & Digital Strategy Monika Schulze. Skilled in analysing market and customer data to define growth opportunities and effective strategies, Schulze has a proven track record of leading teams and building international networks to translate vision into action during times of change. Listed by MarTech as one of the “Top Twelve Women CMOs to follow on Twitter”, she has also been recognised by Forbes as one of the “World’s Most Influential CMOs” and awarded by AdAge as “Woman to Watch Europe” based on her notable accomplishments. She strongly believes technology can be a great enabler for the enhancement of customer experience. e uro pe .busi ne ssc hief. com
ZURICH INSURANCE GROUP
22
SEPTEMBER 2019
23
ÂŁ47.bn+ Approximate revenue
1872
Year founded
55,000
Approximate number of employees
e uro pe .busi ne ssc hief. com
ZURICH INSURANCE GROUP
“ We aim to become more advanced in data analytics. We have a lot of data, but much of it in silos. The trick will be to find the data you need and how best to correlate that” — Monika Schulze, Global Head of Customer Experience & Digital Strategy, Zurich Insurance Group
24
SEPTEMBER 2019
management skills are leveraged for strategic advice, as it’s important to always have up to date technology.” Looking forward, Schulze is keen to combine excellence in the basics of Zurich’s offering while innovating the next generation of services. “We will have to become stronger to impact the business digitally,” says Schulze. “We aim to become more advanced in data analytics. We have a lot of data, but much of it in silos. The trick will be to find the data you need and how best to correlate that. We want to help people find data on their own terms with easy to use dashboards to consolidate insights in order to drive business results.”
e uro pe .busi ne ssc hief. com
25
LEADERSHIP
26
Improving efficiency for a sustainable and digital future With sustainability steadily becoming a top priority for many businesses, Mondi is leading the way in the paper and packaging industry WRITTEN BY
SEPTEMBER 2019
SOPHIE CHAPMAN
27
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LEADERSHIP
M
ondi is split into three areas of business: consumer packaging, graphical paper and fibre
packaging. 60% of the firm’s operations
are commanded by the latter unit, which also dominates the company’s value chain. The CEO of Mondi’s Fibre Packaging business, Markus Gartner, reveals how his team’s operations span from wood to pulp and paper making, all the way to corrugated packaging and bag solutions. 28
Gartner prioritises three key functions to ensure his business operates as strongly and effectively as possible. “Firstly, we are really good at running our assets efficiently, which you can see if you look at our profitability – we are by far the most profitable player in the industry,” he says. “Secondly, we have well-maintained assets; we are not a company that invests and runs the assets down, but instead we always try to maintain the latest technology in our plants. Finally, and most importantly, we have a very skilled workforce. Topics like lifelong learning are extremely important to us to maintain the skill level.” SEPTEMBER 2019
“ We are really good at running our assets efficiently, which you can see if you look at our profitability” — Markus Gartner, CEO, Fibre Packaging, Mondi
29
e uro pe .busi ne ssc hief. com
LEADERSHIP
Having previously worked in the aluminium industry, Gartner brings a wealth of operational experience to Mondi. “The way we look at performance and operations is very similar: the type of key performance indicators we look at and the role that efficiency plays is very similar in the aluminium rolling industry as it is in the paper industry,” he says. However, Gartner enthuses, Mondi’s approach to sustainability is far more advanced: “The level at which we can offer sustainable products and solutions is far more pro-
30
gressive than I’ve seen in my previous industry. You see that reflected in how our organisation is set up – sustainability is really something that touches every aspect of our operations and our commercial thinking.” As an aspect that covers all of the firm’s value chain, sustainability is at the core of Mondi’s values. For instance, the firm ensures it responsibly sources materials such as wood. “When it comes to wood procurement, 71% of our wood is procured from FSC certified sources, with the rest controlled by our high sustainability standards. We can, therefore, say that 100% SEPTEMBER 2019
CLICK TO WATCH : ‘IN TOUCH EVERY DAY’ 31 of our wood resources are sustainable
we need and more, selling the excess
and that’s very important to us,” notes
to national grids as electricity,” he adds.
Gartner. The company also aims to
Gartner argues that sustainability is
keep its carbon footprint as low as
becoming more critical as urbanisa-
possible, targeting energy generation
tion extends: “As more people live in
to do so. “If you picture a large pulp and
cities, they are requiring totally differ-
paper mill, it is a huge plant that con-
ent packaging needs. It also increases
sumes a lot of energy for its processes.
the needs of sustainability because
However, there are several renewable
people are living in confined spaces
residues – the bark and the wood that
– we cannot generate as much rub-
is not used for the pulping process –
bish as before.” Mondi’s connection
which can be used to generate energy.
to the fast-moving consumer goods
All of Mondi’s pulp mills and larger
(FMCG) market is helping to drive
partners are completely energy self-
sustainability. “We see a huge benefit
sufficient. We generate all the energy
in combining these two strengths: e uro pe .busi ne ssc hief. com
LEADERSHIP
“ We see a huge benefit in combining these two strengths: having a sustainable product offering and speaking the language of FMCG companies”
32
— Markus Gartner, CEO, Fibre Packaging, Mondi
having a sustainable product offering
ital’ as just increasing the level of auto-
and speaking the language of FMCG
mation. In my opinion, that’s not what
companies. Mondi calls that the ‘inter-
it is about,” explains Gartner. “Digital
nally EcoSolutions’ – we aim to cre-
is two things: it is applying advanced
ate more sustainable solutions for
analytics, which is a new methodology
products that are less sustainable
that we haven’t used in manufacturing
today. The benefit really comes from
and heavy industries before, and it is
connecting the dots within the com-
a new way of working.” He argues that
pany, and it has brought us immense
technology has to be introduced in
success already so far,” he adds.
stages – with efficiency improvement
Another integral aspect of the firm’s
programmes bein integrated into sprints
operations is digital transformation.
a couple of weeks at a time – to be
“A lot of companies perceive ‘going dig-
effective. The company is currently
SEPTEMBER 2019
in half an hour and then address the different parameter settings already to avoid any critical states?” As Mondi continues on its journey to a more sustainable and digital future, its focus on efficiency is continuing to drive growth. “A lot of companies would say that the most prominent benefit of digital transformation is real efficiency improvement. This is no different for us,” comments Gartner. However, safety is also a crucial aspect to innovation for the firm. “There is more to it than efficiency – we have incorporated technology in the production process to make it safer to operate. Now with digital technology, seeking to make use of the vast
we can predict breakages in the paper
sources of data within its operations.
machines and avoid them before they
In a pulp and paper mill, Mondi has
happen.” The company is committed
implemented between 40,000 and
to ensuring the wellbeing of its team,
60,000 sensors that capture live data
which will undoubtedly lead them
from the production process. “We are
to a strong, secure future.
using various advanced analytics software tools as well as methodologies to look across the processes and steps of our value chain to generate insights. For instance, how does a boiler status evolve over time? Can we predict what the boiler’s status is e uro pe .busi ne ssc hief. com
33
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TECHNOLOGY
36
AUTOMATION FOR A NEW ERA OF SMART MANUFACTURING We take a look at the possibilities and potential pitfalls of automation, examining a few of the companies heralding a smarter, more efficient and sustainable approach to manufacturing WRITTEN BY
WILLIAM SMITH
SEPTEMBER 2019
37
e uro pe .busi ne ssc hief. com
TECHNOLOGY
T
he drive for automation is showing no signs of abating, with new manufacturing centres increasingly requiring automation technolo-
gies to be built in. ‘Smart’ manufacturing has become the watchword for companies in the industry. The Siemens Smart Manufacturing Innovation Centre in Chengdu, China, for instance, opened on 21 May this year. Ericsson, meanwhile, is planning to open an automated smart factory in the United States in 2020.
38
In a manufacturing context, automation takes many forms. Whether that’s 3D printers removing human error from the equation, quality control software increasing throughput or robots able to assemble parts with unrivalled speed and precision. In recent years, this activity has been supercharged by the maturation of technologies such as artificial intelligence (AI) and machine learning. Enabling the ‘smart’ manufacturing of the future, such advancements help to imbue automated solutions with qualities of human workers. A ‘dumb’ 3D printer will continue to print even if there has been a failure in the process, wasting resources. A ‘smart’ solution employing AI and machine learning, however, could recognise failure and take measures to abort or restart the process.
SEPTEMBER 2019
“A TOTALLY AUTOMATED OR ‘LIGHTS OUT’ FACTORY HAS THE ATTENDANT BENEFIT OF NOT REQUIRING SYSTEMS NECESSARY FOR HUMAN WORKERS, SUCH AS LIGHTING AND HEATING, THUS REDUCING ENERGY CONSUMPTION”
e uro pe .busi ne ssc hief. com
39
TECHNOLOGY
The business case for increasing
40
A 30% rise in robot installations
automation is obvious, but anxie-
worldwide, for instance, was esti-
ties persist about the impact such
mated to create an additional
technologies will have. Research by
$5tn in global GDP. The world
Oxford Economics has suggested
is well on its way to meeting such
that, by 2030, 20 million manufactur-
targets, with the number of robots
ing jobs will have been lost to robots,
used in manufacturing tripling
with those losses disproportionately
in the last 20 years. A totally auto-
affecting lower-skilled workers and
mated or ‘lights out’ factory has
those in poorer countries. Such an
the attendant benefit of not requiring
outlook is tempered, however, by
systems necessary for human work-
the expected creation of as yet
ers, such as lighting and heating,
unknown industries made possible
thus reducing energy consumption.
by robots.
“ IT IS CLEAR THAT WE ARE CURRENTLY AT THE BEGINNING OF A NEW ERA OF AUTOMATION” SEPTEMBER 2019
CLICK TO WATCH : ‘FANUC: YOUR BUSINESS DESERVES PERFECTION’
FANUC
control systems, i.e. programmable
To fulfil this demand, numerous
machines which might be capable
companies are rising to the chal-
of milling, punching or otherwise
lenge across automation sectors
manipulating items dependent on
old and new. The world’s largest
the needs of their owner. Indeed,
industrial robot manufacturer is
the company’s name is an initialism
Fanuc. According to Robotics and
of Fuji Automatic Numerical
Automation News, the company
Control. With revenue reaching
has installed some 400,000 of
some $4.79bn in FY17, the com-
its robots in factories worldwide.
pany is headquartered in the small
Originating as part of Japanese
Japanese village of Oshino.
giant Fujitsu, the company became independent in 1972. It is most
EMERSON ELECTRIC
active in the field of numerical
It is, of course, necessary to act with e uro pe .busi ne ssc hief. com
41
TECHNOLOGY
intentionality when implementing auto-
past. As part of this, one of the com-
mated solutions, and consequently,
pany’s focuses is on implementing the
the services of automation experts are
Internet of Things (IoT) in industry. Its
often required. Multinational Emerson
Plantweb ecosystem integrates prod-
Electric dedicates one of the two sides
ucts in the areas of production, reliabil-
of its business to providing automation
ity, safety and energy management.
solutions, and in FY17 the company’s
Emerson’s expertise extends across
revenue reached $15.26bn. Providing
a broad swathe of different industries,
automation services to industry,
including automotive, food and bever-
Emerson tailors its offerings to specific
age, oil and gas, packaging and mining.
clients, saying on its website that its expertise moves away from standard
WANDELBOTS
approaches developed in decades
As well as the work of established giants
42
CLICK TO WATCH : ‘EMERSON: AUTOMATION SOLUTIONS’
SEPTEMBER 2019
such as Fanuc and Emerson, the future
in the same way, independent of the
of automation will require the input of
technology stack,” says CEO Christian
newcomers. Wandelbots is a German
Piechnick in TechCrunch.
startup with a focus on what the com-
Though automation, as we envisage
pany calls a ‘human-centered’ approach
it today, has existed since at least the
to robot programming. Having raised
1940s and the advent of numerical
€6mn ($6.73mn) in series A funding,
control, it is clear that we are cur-
Wandelbots hopes to explode and
rently at the beginning of a new era
disrupt the existing system of robot
of automation. With AI, machine learn-
programming, which differs between
ing, drones and other technologies
companies and systems, by introduc-
all driving new developments in auto-
ing demonstration-based machine
mation, manufacturing as we know
teaching. Wearing a sensor filled jacket,
it is being transformed, bringing new
users can perform actions which are
levels of efficiency and entirely new
then replicated by robots, drastically
possibilities to industry.
reducing the time taken and cost of programming. “We are providing a universal language to teach those robots e uro pe .busi ne ssc hief. com
43
PEOPLE
MIR IMRAN 44
Serial entrepreneur, CEO of Rani Therapeutics and inventor of the robotic pill Mir Imran, inventor, founder and CEO of Rani Therapeutics, shares his story and discusses how his latest business is driven by the desire to innovate, create and solve one of the most pressing problems in modern medicine WRITTEN BY
HARRY MENEAR
SEPTEMBER 2019
45
e uro pe .busi ne ssc hief. com
PEOPLE
A
s a serial entrepreneur, what would you say are the key qualities of a successful startup?
A successful startup is willing to take risks and fail frequently. Taking big risks, learning from every failure, and making an effort to fully understand every facet of a problem before pursuing a solution are important tenants to help create a culture that embraces innovation. Choosing the right problems to address, too, is essential. If you are merely iterating 46
on other people’s ideas, you aren’t inventing. Look at the big unsolved problems. Break them down. Understand them. Find solutions that no one had ever thought possible. I focus on big, unsolved problems and that has led to the creation of a number of disruptive innovations. There can be big rewards that come from innovations like Rani Therapeutics, but there are also countless risks along the way. I have been fortunate to have had many successes in my career, but I also have had my fair share of failed concepts or lacklustre results. Before I had success with the first Implantable Cardioverter Defibrillator (ICD), I had two failed companies. I never let those failures bring me down; rather I saw them as SEPTEMBER 2019
“ I focus on big, unsolved problems and that has led to the creation of a number of disruptive innovations” — Mir Imran, Inventor, founder, and CEO of Rani Therapeutics
opportunities to learn and evolve. Each experience gave me further clarity, led to deeper insights, and helped inform future decisions. If I had given up after my early failures, life would have turned out very differently for me. As someone with over 500 patents to their name, which technological development have you been most proud of so far? I’m driven by identifying unsolved or poorly addressed problems in medicine. Over the past four decades, I’ve e uro pe .busi ne ssc hief. com
47
PEOPLE
48 built a number of companies that have
vert biologic injections into pills, I saw
addressed multiple problems, from
that as a juicy problem to solve. The
lockboxes used by real estate agents
main challenge is that the gut hosts
to full-body airport scanners used
enzymes designed to break down
across the country and the world,
proteins. If ingested, biologic drugs
and radically improved treatments
are degraded before they can be
for chronic pain.
absorbed. That’s why you haven’t
While I’m proud of all my inventions,
seen oral insulin or oral Humira yet.
today I’m on a mission to solve one of
At Rani Therapeutics, we think we
the biggest challenges in medicine:
have solved the riddle with the
replacing painful injections with a pill
RaniPill™ capsule.
to treat hundreds of millions of patients with chronic disease. When I learned
Could you tell me a little about Rani
that pharma companies have tried and
Therapeutics and your new robotic
failed for more than 50 years to con-
pill? What advantages does the pill
SEPTEMBER 2019
CLICK TO WATCH : ‘RANI THERAPEUTICS’ 49 have over traditional subcutaneous
patient to be an ordinary pill, but inside
injections?
is a “mini auto-injector” that delivers
There are millions of people around the
the drug directly into the intestinal wall.
world living with chronic conditions that
Our robotic indigestible capsule has a
can only be treated with painful daily
special coating which gets it through
self-injections. Yet even when such
the acidic environment of the stom-
medicines are readily available, patient
ach. When it reaches the intestinal
compliance is very low. Patients don’t
wall, the RaniPill™ then transforms,
want to inject themselves and avoid the
revealing the mechanism inside. The
treatment even if it affects their health.
RaniPill™ aligns itself to inject a drug
Achieving oral delivery of biologics is
into the intestinal wall, where it is
considered the holy grail of drug deliv-
picked up quickly and circulated in the
ery, and we think we have come up with
bloodstream. The patient doesn’t feel
the solution with the RaniPill™ capsule.
anything because the intestines have
The RaniPill™ capsule appears to the
no sharp pain receptors. e uro pe .busi ne ssc hief. com
PEOPLE
While other organisations have followed our lead and are now pursuing similar concepts, Rani’s early start in the pursuit of a pill to replace painful injections has secured our position as a pioneer of robotic pills. We have conducted more than 100 preclinical studies proving that our technology works – and delivers the same amount of drug as a subcutaneous injection. We have also begun testing in humans — specifically testing the safety and tolerability of the RaniPill™ capsule without the drug. Those studies were
50
successful, demonstrating that the RaniPill™ capsule deployed with no feeling or perception by the subjects and the remnants passed out of the body. We are moving towards human testing with the RaniPill™ capsule loaded with a drug (Octreotide, a drug used for the treatment of acromegaly) this year. Given your experience as a leader of business units and enterprises, how do you ensure that you attract, utilise and retain top talent? It is our intent to attract and retain innovative thinkers to help us build SEPTEMBER 2019
the future of biologic drug deliv-
talent regardless of a person’s age,
ery, and we believe our culture has
gender, or ethnicity.
helped us tremendously in that regard. I’m proud that today Rani’s
A criticism that’s often levelled at
workforce is more than 50% women,
pharmaceutical and tech companies
and that 20% are over 50 years old.
is that they’re increasingly driven by
Our employees are ethnically diverse
the business case as opposed to the
as well, drawn from more than 10
desire to innovate and improve peo-
countries. For me, building a well-
ple’s lives. How do you ensure that
rounded, holistically representative
Rani Therapeutics doesn’t lose sight
workforce means finding the best
of the goal of helping humanity?
E XE CU T I VE PRO FI LE 51
Mir Imran Mir Imran is the Chairman and CEO of Rani Therapeutics, an exciting company that has developed a unique approach for the oral delivery of large drug molecules including peptides, proteins, and antibodies. Imran is also the Chairman & CEO of InCube Labs, a life sciences R&D lab focused on developing and commercialising breakthrough medical innovations. Rani spun out of InCube in 2012. After attending medical school, Imran began his life as a healthcare entrepreneur in the late 1970s and has founded more than 20 life sciences companies since those early days, more than half of which have been acquired. Imran’s passion is creating novel technologies that have the potential to positively impact the lives of millions of patients and has become one of the leading inventors and entrepreneurs in the field. Imran holds more than 500 issued and pending patents and is perhaps most wellknown for his pioneering contributions to the f irst FDA-approved Automatic Implantable Cardioverter Defibrillator (ICD). e uro pe .busi ne ssc hief. com
PEOPLE
“ We have a truly multidisciplinary team and that plays a critical role in understanding and framing problems, and ultimately devising solutions” — Mir Imran, Inventor, founder, and CEO of Rani Therapeutics 52
We believe the best business case —
reveal itself. Earlier in my career, I was
a sustainable business case – can only
quick to try to “solve” the problems.
be achieved when your products truly
I would spend time dreaming up the
improve people’s lives. Our single-
solution to a problem that I did not fully
minded focus is always trying to under-
understand. I soon learned that you
stand problems, faced by patients and
must take the time to understand and
to try to alleviate some of those prob-
appreciate the problem, look at it from
lems through innovation.
all angles, listen to other opinions, and
When it comes to building innova-
see what has been done before. If you
tive products, it is critical to start with
pursue solutions too quickly without
understanding the problem and do this
that complete understanding of the
from all facets. Once you truly under-
problem, you might miss the opportu-
stand the problem, the solution will
nity for a breakthrough.
SEPTEMBER 2019
What’s on the horizon for you, and for Rani Therapeutics? Where do you see your roadmap taking you in 2020 and beyond? It’s an exciting time for Rani Therapeutics. We’ve done hundreds of preclinical studies by delivering more than 1,000 capsules. We’ve tested nine drugs, including insulin, GLP-1 [for diabetes] and Humira [for arthritis] and we’ve demonstrated that the RaniPill™ capsule delivery is equivalent to subcutaneous injection. Later this year, we’ll be testing a drug called Octreotide which treats patients suffering from acromegaly, a condition resulting from the body’s pituitary gland producing an In the case of Rani, where we are
excessive amount of growth hormone.
working to improve the lives of millions
Next year, we’ll be testing several other
of people, I had to look at all of the ways
drugs in Phase 1 studies. We are getting
that previous approaches have failed
closer to bringing the RaniPill™ cap-
in order to come up with a radically dif-
sule to patients and improving the lives
ferent way to solve the problem. Rather
of millions. It’s an enormous challenge
than try to change the drug to make it
that keeps us focused and motivated
viable orally, which had been tried many
every day.
times before by other companies, I decided we needed to take a very different approach and instead change how the drug is delivered. Out of that concept, the RaniPill™ capsule was born. e uro pe .busi ne ssc hief. com
53
S U S TA I N A B I L I T Y
54
SEPTEMBER 2019
Chicago, USA
EXCITING SUSTAINABLE CITY INNOVATIONS AROUND THE WORLD Marga Hoek is a global thought-leader on sustainable business, international speaker and the author of The Trillion Dollar Shift, a new book revealing the business opportunities provided by the UN’s Sustainable Development Goals WRITTEN BY
MARGA HOEK
e uro pe .busi ne ssc hief. com
55
S U S TA I N A B I L I T Y
56
C
ities are at the heart of national
won in cities. Cities play a major role in
and global growth. In an
achieving Sustainable Development
increasingly urbanised world,
Goals (SDGs). They clearly play a
cities are both the source and the
role in SDG 11 – sustainable cities and
solution of many global problems.
communities – but cities also impact
Not only do urban areas account for
many other SDGs.
over half of the world’s population,
We have a long way to go and little
but they also generate around 80% of
time: cities are becoming more sus-
global Gross Domestic Product (GDP).
tainable yet to reach our goals, cities
Cities, however, are confronted and
much embrace more and also more
challenged to become inclusive, safe,
radical innovations. Those radical
sustainable and: smart. And because
innovations mean moving away
of its impact, one could say that the
from the conventional way of thinking
battle for sustainability will be lost or
and designing.
SEPTEMBER 2019
Cambridge, US
57
Zwolle. the Netherlands
ZWOLLE, THE NETHERLANDS Across the globe, we can encounter many inspiring examples of how to redesign our cities, simply by taking this other perspective. Let’s start in the country I was born, the Netherlands, and zoom into the small city of Zwolle. Here, for instance, the plastic road was invented and created. A new modular bicycle path made from recycled plastics. It matches up to the equivalent of 218,000 plastic cups. So you cycle on
“ CITIES ARE BECOMING MORE SUSTAINABLE YET TO REACH OUR GOALS, CITIES MUST EMBRACE MORE, AND ALSO MORE RADICAL, INNOVATIONS” — Marga Hoek, Non Executive Director and author of The Trillion Dollar Shift
waste! The road has higher longevity than conventional surfaces, can withe uro pe .busi ne ssc hief. com
S U S TA I N A B I L I T Y
stand extreme temperatures and it can
ing waterless sanitation solution for
be applied to parking lots too. No virgin
those who lack access to conventional
materials are needed and we have lots
toilets. With a simple subscription to
of (plastic) waste we need to dispose of.
a pick-up plan, households receive a waterless, resource-separating toilet
LIMA, PERU
combined with a weekly service that
Hygiene and water are huge challenges
collects waste directly from the home.
in low-income cities, mostly in develop-
Imagine the impact on health in poor
ing countries. So let us move to Lima,
slums where people suffer tremen-
the capital of Peru. An interesting in-
dously from diseases due to lack of
novation, X-runner, brings an appeal-
water, sanitation and hygiene.
58
Mexico’s Torre de Especialidades Medicas SEPTEMBER 2019
CLICK TO WATCH : ‘CAMBRIDGE LEADS THE CHARGE FOR CLEAN ENERGY IN MASSACHUSETTS’ 59
MEXICO CITY, MEXICO Smog and air pollution is a huge problem in many cities like Mexico. The Torre de las Especialidades found a solution by creating a ‘smog-eating’ front for its hospital, absorbing the pollution from the air. The new hospital building in Mexico City is designed to transform air pollutants into harmless chemicals. The building has a facade made up of a new type of tile called “proSolve370e” which, according to its
“ DESIGNED TO TRANSFORM AIR POLLUTANTS INTO HARMLESS CHEMICALS” — Marga Hoek, Non Executive Director and author of The Trillion Dollar Shift
inventor Elegant Embellishments, can neutralise the chemicals produced by 8,750 cars every day. e uro pe .busi ne ssc hief. com
S U S TA I N A B I L I T Y
“ MODULAR SENSOR BOXES THAT WILL BE INSTALLED AROUND CHICAGO TO COLLECT REAL-TIME DATA ON THE CITY’S ENVIRONMENT” — Marga Hoek, Non Executive Director and author of The Trillion Dollar Shift
CAMBRIDGE, US 60
The city of the future will combine sustainable initiatives with the use of ICT and advanced technologies. Around the 1990s, as the digital revolution came up to speed, it was often assumed digitalisation would mean the death of cities but the opposite is the case. Smart, intelligent cities, that have sustainability at the heart of development, are considered to be a great place to live. Digital innovations can thrive, although they still have too little scale around the world. A great example is to be found in Cambridge, Massachusetts, which we can describe as an internet of pipes. A team of MIT researchers have developed a system SEPTEMBER 2019
Chicago’s Cloud Gate
to collect and analyse biochemical information from sewage water, which could be thought of as a ‘smart sewage platform’. The project is called Underworlds and it is being tested at this time.
CHICAGO, US The line of thinking about smart, sustainable cities is to use everything there is in a city in a smart and multifunctional way. This also implies to ‘simples poles’. The Array of Things (AoT) is an urban sensing project, a network of interactive, modular sensor boxes that will be installed around Chicago to collect real-time data on the city’s environment, infrastructure, and activity for research and public use. AoT will be measuring factors that impact liveability in Chicago such as climate, air quality and noise. Everywhere around the world we can find pertinent examples like these. Since the world by now has become a global village; we can share all these examples and the knowledge behind them to transform cities into the best sustainable, smart cities they can be.
e uro pe .busi ne ssc hief. com
61
CITY FOCUS
RIG City Focus
62
Riga, the capital city of Latvia, is home to businesses and green spaces alike, offering its residents both culture and a Baltic tech hub WRITTEN BY
SEPTEMBER 2019
SOPHIE CHAPMAN
GA
63
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CITY FOCUS | RIGA
A
s the largest city in the Baltic region, Riga has a population of 632,600 people. Offering a combination
of historic architecture and modernisation, the Latvian capital sits on the Gulf of Riga – the mouth of the Daugava River, which travels through Latvia, Belarus and Russia. One of Europe’s longest routes spanning 5,320km between the UK and Russia, European route E 22, also runs through the city. 40% of the city is occupied by green spaces, with 85sq 64
km of green territories and 47.7sq km of blue territories, including 29 parks and nine lakes and ponds.
ART NOUVEAU The city’s architecture displays one of the most expensive collections of Art Nouveau in the world, spread across Riga’s grand boulevards. With buildings dating back to the 19th century, the city’s centre is protected by UNESCO as a World Heritage Site. “Riga was a major centre of the Hanseatic League, deriving its prosperity in the 13th–15th centuries from the trade with central and eastern Europe,” states UNESCO. “The urban fabric of its medieval centre reflects this prosperity, though most of the earliest buildings were SEPTEMBER 2019
65
‘ D espite the historic nature of Riga, the city features almost 1,000 wifi hotspots, enabling consistent access to the digital world’
e uro pe .busi ne ssc hief. com
CITY FOCUS | RIGA
‘TechHub Riga boasts success stories with companies such as CoBook, Infogram, Funderful and Nordigen’
destroyed by fire or war. Riga became an important economic centre in the 19th century, when the suburbs surrounding the medieval town were laid out.” Despite the historic nature of Riga, the city features almost 1,000 wifi hotspots, enabling consistent access to the digital world.
SKYLINE Located amongst the historic architecture are Latvia’s towering buildings. Riga is not only home to some of the tallest structures in its nation, but it
66
SEPTEMBER 2019
CLICK TO WATCH : ‘TECHHUB RIGA’ 67
also ranks highly amongst the Baltics.
Radisson Blu Hotel Litvija also make
St Peter’s Church remains the tallest
up the city’s skyline.
building in the city – having been built in 1690, the church stands at 123.25m
TECHHUB RIGA
high. The church is the third largest
The global tech entrepreneur and start-
building in the Baltics, immediately
up community, TechHub, has launched
followed by Riga’s Z-Towers. The
operations in the city. The company
structure’s south tower stands at 123m
has locations in London, Bucharest,
tall, with the north tower measuring
Swansea and Riga – opting to locate in
117m. The structure consists of 336
a nation that features in the top 10
apartments and 10,000sq m of office
countries in the world with the fastest
space. Swedbank’s central office,
internet speeds. Situated in the Skan-
Panorama Plaza, the Latvian Acad-
ste district of the city – which is fast
emy of Sciences building and the
becoming the most modernised region e uro pe .busi ne ssc hief. com
CITY FOCUS | RIGA
68
of Riga – the hub offers support to the
workspace and opportunities at
community, networking opportunities,
any TechHub location worldwide,”
tailored programmes, flexible work-
the hub claims.
spaces and global access. The hub boasts success stories with compa-
INFOGRAM
nies such as CoBook, Infogram,
The award-winning infographics plat-
Funderful and Nordigen. “All TechHub
form was founded by Uldis Leiterts,
memberships are global, giving you
Raimonds Kaze and Alise Semjonova,
fast and easy access to investors,
and is headquartered Vecrīga, Riga’s
specialists, support programmes,
historical centre. The company has
SEPTEMBER 2019
633,820 Total population of Riga
1.4mn
Amount of visitors Riga received in 2016
1918
Riga becomes capital of independent Latvia
gained 4million users since it was
ranked as the number one Info-
established in 2012, with the charts,
graphic Tool by Forbes. “We first
reports and infographics created
looked at Infogram to replace an
by the technology having reached
existing supplier,” stated Matt Martel,
1.5billion views. In 2017, the business
Executive Editor of Presentation and
was acquired by the presentation
Photography at Fairfax Media. “First
software firm, Prezi. The platform
we spinned an open source solution,
is used by companies such as
but that didn’t work for our needs.
LinkedIn, TomTom, JLL, Skyscanner
I don’t want to have three to four
and Fairfax Media, and has been
developers creating and maintaining e uro pe .busi ne ssc hief. com
69
CITY FOCUS | RIGA
“ Riga in 2030 will be an internationally recognisable Northern European metropolis” 70
The Investment and Development Agency of Latvia
SEPTEMBER 2019
internationally recognised Masters of Business Administration degree”, it claims. “The school has a solid reputation and more than 1015 MBA graduates, the majority of who occupy leading managerial positions both in Latvia and abroad.”
RIGA 2030 Riga is occupied by a third of Latvia’s entire population, and a tenth of the combined inhabitants of the three Baltic nations. Headquarters to firms such as airBaltic, the Bank of Latvia and Just5, Riga offers its occupants both business and culture. “Riga in 2030 a system when I can have an off-the-
will be an internationally recognisable
shelf product that perfectly meets
Northern European metropolis,”
our needs.”
according to the Investment and Development Agency of Latvia (LIAA).
RIGA BUSINESS SCHOOL
LIAA claims that by 2030, the city will
The Riga Business School (RBS) was
have improved quality of life, an inno-
established in 1991 as part of Riga
vative economy and smart and
Technical University. RBS was intro-
efficient resources, all under a modern
duced in cooperation with the State
governance. The city has launched the
University of New York at Buffalo, US,
‘Sustainable Development Strategy of
and the University of Ottawa, Canada.
Riga until 2030’ in order to achieve
The school was the first to offer Master
these goals.
of Business Administration programs in English, “granting its graduates an e uro pe .busi ne ssc hief. com
71
T O P 10
72
SEPTEMBER 2019
Sustainable companies Business Chief counts down the top 10 sustainable companies, according to Corporate Knights’ ranking of companies which generate more than $1bn in annual revenue WRITTEN BY
WILLIAM SMITH
e uro pe .busi ne ssc hief. com
73
T O P 10
74
10
Novartis AG 75.19%
With 2018 revenues of $51.9bn and more than 125,000 employees, Novartis is by both measures one of the largest on this list. 18th on the global list with a score of 75.19%, the company has emphasised its focus on environmental sustainability, expanding access to healthcare and disclosing its sustainability practices through reporting.
SEPTEMBER 2019
75
09
ERG S.p.A 75.39%
Edoardo Raffinerie Garrone or ERG is an Italian energy company. With a 2017 revenue of $1.19bn, the company is one of the smaller on the list with 714 employees. Its score of 75.39% puts it at 16th worldwide on Corporate Knights’ list. Its commitments towards the UN’s Sustainable Development Goals (SDGs) are focused around the development of renewable sources of energy such as solar, environmental responsibilities and supplier screening.
e uro pe .busi ne ssc hief. com
THE DIGITAL PROCUREMENT EVENT OF THE YEAR.
300
20
Startups
40
Attendees
Speakers
2
1
Days
Hackathon
77
08
Outotec Oyj 76.53%
Industrial technology manufacturer Outotec serves customers in the mining, metal, energy and chemical industries. Based in Espoo, Finland, the company said its 2017 revenue was some $1.28bn, while in the same year it employed 4,146 people. 12th on the ranking with 76.53%, Outotec said it had expanded beyond its traditional competencies in minerals and metals to develop renewable energy, water management and recycling applications.
e uro pe .busi ne ssc hief. com
T O P 10
78
07
Pearson PLC 76.91%
British education and publishing company Pearson is the world’s largest education company, with a 2018 revenue of $5.2bn. The company’s 2020 Sustainability Plan sees it contribute to the UN’s Sustainable Development Goals and focus on improving accessibility, emparting sustainable skills and respecting the communities and environments in which it operates. It achieved a score of 76.91%, putting it 11th worldwide on Corporate Knights’ list.
SEPTEMBER 2019
79
06
Umicore 79.05%
Belgian materials company Umicore scored 79.05% on the metric. Having originated as a mining company, Umicore now focuses on clean technologies. It employs 10,400 people and has a revenue of $3.7bn excluding metal. Umicore says its sustainability goals are based on ambitions to develop, produce and recycle materials in line with its slogan: “materials for a better life�. It placed 7th worldwide on the ranking.
e uro pe .busi ne ssc hief. com
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81
05
GlaxoSmithKline plc 79.41%
London based pharmaceutical company GlaxoSmithKline comes in fifth, with a score of 79.41%. It is known for both its drugs as well as its consumer products such as Horlicks and Nicorette. It reported its 2018 revenue as $39.83bn, and said it employed 98,462 people in 2017. In September 2018, the company announced a set of commitments around corporate social responsibility, aligning itself with the UN Sustainable Development Goal of promoting Good Health & Wellbeing.
e uro pe .busi ne ssc hief. com
T O P 10
82
04
Ørsted 80.13%
Ørsted is Denmark’s largest energy company. With a total score of 80.13%, its revenue in 2018 was $11.55bn and it employed 6,080 people. Its CEO, Henrik Poulsen, has said “to slow down climate change, we must transform society with CO2 neutral solutions”. Accordingly, it has made a commitment to fully phase out coal by 2023, and has a focus on green energy such as offshore wind to replace it as an energy source. The company’s resolve was further demonstrated by its 2016 name change, which saw it divest itself of former name DONG Energy (Danish Oil and Natural Gas).
SEPTEMBER 2019
83
03
Neste Corporation 80.92%
Neste is a Finnish oil refining company. While the presence of an oil refining company on a sustainability list may at first seem a surprise, Neste says that it wants to challenge the oil refining industry by offering clean fuel solutions and applications with renewable materials. This effort is reflected in its score of 80.92%. Its 2018 revenue was $16.73bn, and it employed an average of 5,468 people.
e uro pe .busi ne ssc hief. com
T O P 10
02
Kering SA 81.55%
The Paris based luxury goods company Kering is second on our list with a score of 81.55%. Owner of brands such as Gucci, Yves Saint Laurent and Balenciaga, the company
84
reported its 2018 revenue as $15.3bn, and said that it employed on average 30,595 people. One factor propelling it up the list was the high percentage of women on its board – 64%, the highest of all companies examined by Corporate Knights.
SEPTEMBER 2019
85
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T O P 10
01
Chr. Hansen Holding 82.99%
With an overall score of 82.99%, the title of most sustainable company in both Europe and the world goes to Danish bioscience company Chr. Hansen. The result is even more 86
impressive considering the company’s founding in 1874, making it almost 150 years old. Its focus is the production of cultures, enzymes and natural colourings for the food industry. In 2017-18 the company employed 3,150 people on average with a revenue of $1.2bn. It describes its purpose as delivering solutions in food, health and productivity to address global challenges.
SEPTEMBER 2019
87
e uro pe .busi ne ssc hief. com
88
ALLEGIS GLOBAL SOLUTIONS CONTINUES TO BUILD STRONG RELATIONSHIPS THROUGHOUT ITS SUPPLY CHAIN
WRITTEN BY
SOPHIE CHAPMAN PRODUCED BY
CHARLOTTE CLARKE
SEPTEMBER 2019
89
e uro pe .busi ne ssc hief. com
ALLEGIS
Allegis Global Solutions’ Supply Chain Manager for EMEA, Amy Fitzwarine-Smith, discusses how the company is maintaining trust with suppliers and staff
A
llegis Global Solutions (AGS) is a global leader in the talent solutions industry, providing client-focused strategies
for securing top talent. “We employ a variety of recruitment methods, including managed service provider (MSP) solutions, recruitment process outsourcing (RPO) solutions and procurement 90
solutions. My role is centred around the MSP area of the business within supply chain”, says Amy Fitzwarine-Smith, Supply Chain Manager of the EMEA region at AGS. “The supply chain team are responsible for ensuring we have the right programme delivery suppliers supporting each of our accounts and that they’re getting the same experience from AGS as a partner”. The company regards open communication, relationships, serving others and commitment to excellence as its core values, interlacing these standards into all of its operations. “One of the most important values for me is building relationships with all parties with whom we work. The respectful and trusting partnerships we have with our suppliers are the key to our business success,” remarks Fitzwarine-Smith. Having SEPTEMBER 2019
91
“ AGS has a huge focus on technology. We understand that investment in technology is what is setting companies apart in the industry” — Amy Fitzwarine-Smith, Supply Chain Manager, EMEA, Allegis Global Solutions
e uro pe .busi ne ssc hief. com
ALLEGIS
“ One of the most important values for me is building relationships, with all parties with whom we work” 92
— Amy Fitzwarine-Smith, Supply Chain Manager, EMEA, Allegis Global Solutions
previously worked on the operations side of MSP, Fitzwarine-Smith highlights how crucial these relationships are to all aspects of delivery to AGS’ clients. “My experience working with a specific client account made me realise just how important suppliers and the supply chain function are to a company. I became really passionate about getting it right, putting more processes in place to ensure consistency and good communication and getting the team in a better position for us to deliver a great service, not only to the clients but to our supply chain as well.” Reaffirming strong relationships as fundamental to the company’s legacy, Fitzwarine-Smith reveals that coopera-
SEPTEMBER 2019
CLICK TO WATCH : ‘WORKING AT ALLEGIS GLOBAL SOLUTIONS’ 93 tion is a required trait from suppliers.
Over the past several years, AGS
“We ask all of our agencies to work
has invested in a proprietary business
together with us regarding all aspects
intelligence platform to capture data
of the end-to-end process so that both
from its vendor management tools.
parties are still getting their desired
AGS has branded the platform as
outcome whilst giving the client the
ACUMEN Workforce Intelligence,
most efficient and effective experience
which displays and monitors key
working with us”. AGS wants to establish
performance indicators across the
a mutually beneficial dynamic with
entire AGS ecosystem of suppliers,
suppliers – it wants agencies to feel
clients and the firm’s internal teams.
comfortable asking for information
This system collects and combines
about the business whilst also using
data from a range of vendor manage-
their strong supply chain to learn
ment tools, enabling the firm to
more about the market and potential
heighten its visibility of suppliers.
upcoming challenges or opportunities.
“We have the data from the MSP e uro pe .busi ne ssc hief. com
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accounts we hold globally and are able
benefits. “As strategic suppliers, they
to filter that down to specific categories,
have access to the Strategic Supplier
such as location, industry and skill set.
Portal and recently released Supplier
AGS has a huge focus on technology.
Scorecards. This access gives them
We understand that investment in
visibility to all the accounts that they
technology is what is setting compa-
support. The strategic suppliers have
nies apart in the industry. It’s enabling
access to key statistics, which allow
us to remove administrative tasks and
them to benchmark their performance
make our operations more efficient,”
in comparison to their competitors
says Fitzwarine-Smith.
within a particular program,” she adds.
The company runs a strategic supplier
“We’re being completely transparent
programme which recognises the top
with them and using this to motivate
1% of its global suppliers, offering full
improved performances whilst
access to ACUMEN as one of the
maintaining the quality of candidates.
E XE CU T I VE PRO FI LE
Amy Fitzwarine-Smith Amy took the role of Supply Chain Manager for EMEA in April 2019, following seven years of experience working in MSP operations, two of which were at AGS. During that time, Fitzwarine-Smith managed recruitment in challenging locations, including Azerbaijan and Iraq. Working with agencies in these countries sparked her passion for building strong relationships and ensuring that AGS gives them the same experience given to our UK partners. Fitzwarine-Smith also leads the MySelf EMEA employee resource group, which provides colleagues with guidance and support in looking after their mental health in and out of the workplace.
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95
ALLEGIS
£12.3bn+ Approximate revenue
2001
Year founded
3,100
Approximate number of employees
This effort has been very well received
with the best suppliers for our clients,
by our partners.”
and I think by putting visibility on our
Another benefit to being part of
strategic suppliers it helps us to
the Strategic Supplier Program is
achieve that goal,” notes Fitzwarine-
an invitation to AGS’ annual regional
Smith.
summit, which brings together profes-
Although AGS is dedicated to its
sionals from the business to discuss
relationships with outside partners,
the market and opportunities that are
the organisation ultimately considers
important to the attendees. “Some
its people to be its biggest asset.
of the feedback we’ve had from our
In order to ensure its staff are highly
strategic partners is that this is some-
engaged with the company, AGS has
thing quite unique to AGS and proves
launched employee resource groups
to them how much we value their
(ERGs), which allow people to suggest
partnership. We want to be working
ideas that they feel will provide extra
SEPTEMBER 2019
“We know that if we don’t invest in and show our people that we are growing with the industry and that we really care about them, then our company wouldn’t be anywhere near as successful as it is” — Amy Fitzwarine-Smith, Supply Chain Manager, EMEA, Allegis Global Solutions support to them and their peers.
success – both with suppliers and its
“I think our ERGs prove how we feel
own staff. “We know that if we don’t
about our employees – they demon-
invest in and show our people that
strate how much time and willingness
we are growing with the industry and
we put in to make sure they feel they
that we really care about them, then
are part of the group and the society
our company wouldn’t be anywhere
beyond their usual work team,”
near as successful as it is,” says
Fitzwarine-Smith says. The firm also
Fitzwarine-Smith. “We ensure that
offers its employees access to an
we take the time to really look after
online learning platform called
our team members and our industry
Degreed. This system provides online
colleagues.” As it continues to strength-
articles supplied by the learning and
en its reputation and relationships
development team. “It’s a self-learning
within the industry, the firm is also
tool that can help staff develop their
seizing opportunities in terms of
soft skills and grow their knowledge
technology, innovation and transforma-
around all parts of the business,”
tion – enabling it to grow its supply
she explains.
chain and team.
For AGS, building and maintaining strong relationships is vital to its e uro pe .busi ne ssc hief. com
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98
WRITTEN BY
WILLIAM SMITH
PRODUCED BY
JUSTIN BRAND
SEPTEMBER 2019
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A S A H I E U R O P E LT D
IAN BRENTON, HEAD OF PROCUREMENT AT ASAHI EUROPE, DETAILS PROCUREMENT’S ROLE IN REINFORCING THE PREMIUMISATION OF ASAHI’S BRANDS
100
J
apanese beverage company Asahi is internationally known for products such as its eponymous Super Dry lager. More
recently, it has acquired several European brands such as Peroni and Grolsch under its Asahi Europe subsidiary. Asahi Europe was indirectly formed following the acquisition of SABMiller by AB InBev, with one of the conditions being to divest part of its European business. Ian Brenton is Head of Procurement at Asahi Europe, having formerly been at SABMiller. “I was responsible for a number of the packaging categories globally. When Asahi acquired the Western European Business Unit from SABMiller they needed a procurement team. They kindly offered me the opportunity to move from running a packaging specific agenda to managing the entire procurement agenda. As such, we’re a team of 23 people, working from the UK, Italy, Holland and Switzerland.” SEPTEMBER 2019
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A S A H I E U R O P E LT D
102
Brenton’s procurement department has been key to supporting the growth aims of Asahi Europe’s purchases. “Asahi bought the businesses because it wanted a footprint with global premium brands” says Brenton. “The procurement function’s primary aim is to support the growth of the business through competitive, predictable costs, improved working capital, assured supply and suppliersourced innovation, all generated in an environmentally and socially sustainable manner.” As part of that SEPTEMBER 2019
CLICK TO WATCH : ‘ASAHI EUROPE CORPORATE VIDEO’ 103
journey, the company acquired the
that used to focus solely on Indirect
beverage, brewing and distribution
Procurement and very quickly intro-
business of Fuller, Smith & Turner
duce some experience in procure-
PLC in 2019, which brought its own
ment of brewing and packaging.”
challenges in terms of procurement.
A number of partnerships have
“In the UK we used to be a predomi-
been crucial to maintaining and
nantly import-focused business. We
accelerating that level of growth.
had little manufacturing of scale,
Aside from gleaning market informa-
but almost overnight we acquired
tion from a valuable source of trusted
half a million hectoliters worth of
suppliers, Asahi Europe has also
manufacturing in three different
partnered with procurement intel-
production locations – in London,
ligence firm Beroe. “We retained a
Cornwall and West Sussex. We’ve
strong relationship with Beroe after
had to take a procurement team
working with them previously. From e uro pe .busi ne ssc hief. com
a market intelligence standpoint,
our primary aim, significantly increas-
Beroe offers a great deal. Whether
ing our hop yields and developing
we need it for budgeting or sourc-
innovative downstream products
ing activities, they give really good
for use in our premium portfolio .
insight that we’ve found very benefi-
One of the key tasks procurement
cial.” Other partnerships have come
fulfils is in providing packaging, to
into play across the company. “On
contain products as well as empha-
the agricultural side of the business,
sising their premium nature. “Part of
staying close to our farmers and
the challenge is ensuring that we can
cooperatives is really important to
readily respond to business requests
us. These relationships have led to
overcoming the specific challenges
the development of proprietary maize.
unique to each packaging type.
Similarly, by working with agricultural
Primary packaging, in most cases,
development companies we have met
is quite a capital intensive business
SEPTEMBER 2019
“PROCUREMENT ENABLES THE CONTINUED GROWTH OF THE BUSINESS THROUGH COMPETITIVE, PREDICTABLE COSTS, IMPROVED WORKING CAPITAL, ASSURED SUPPLY AND SUPPLIER-SOURCED INNOVATION, ALL GENERATED IN AN ENVIRONMENTALLY & SOCIALLY SUSTAINABLE MANNER” — Ian Brenton, Head of Procurement, Asahi Europe
105
E XE CU T I VE PRO FI LE
Ian Brenton, Asahi Europe Ian joined Asahi Europe on it’s very first day on Wednesday 11 October 2016 as Head of Procurement, based in Switzerland. He previously worked at SABMiller and before that PepsiCo, in roles spanning manufacturing, change management and procurement. Outside of work, a keen cyclist & climber, he is well on his way to becoming a Munro ‘compleater’ with 18 peaks left to climb of the total 284. Ian anticipates that by the time he reaches his final summit, it will have taken 20 years of dedication.
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A S A H I E U R O P E LT D
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SEPTEMBER 2019
2016
Year founded
â‚Ź2bn
Approximate revenue
2,000+
Approximate number of employees
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A S A H I E U R O P E LT D
“WHEN WE WORK WITH SUPPLIERS WE DELIBERATELY LOOK FOR PROGRAMMES WHICH WILL HELP TO REDUCE OUR CO2 FOOTPRINT, IMPROVE RECYCLING RATES, REDUCE WASTAGE, INCREASE RECYCLED CONTENT AND AID OUR TRANSITION TO GREENER ENERGY” 108
— Ian Brenton, Head of Procurement, Asahi Europe – there’s quite a large capital investment before you bring on stream new capacity.” For cans, Asahi Europe partnered with a new entrant in the market. Their mutual relationship helped the upcoming company to establish itself, while Asahi gained a partner aligned with its strategy. “Supporting growth in glass or aluminium, or stainless steel for kegs, are not quick decisions to implement,” says Brenton. “You have to plan for the long term, and we often see five year plus contracts. If it’s corrugated or cardboard, typically used for conSEPTEMBER 2019
CO MPAN Y FACT S
• Procurement team working out of the UK, Italy, Holland and Switzerland • Acquired the UK beverage, brewing and distribution business of Fuller, Smith & Turner PLC in 2019
sumer facing secondary packaging multi-packs, there are many suppliers and therefore more competition. This means that change can be implemented more quickly and contracts therefore tend to be a lot shorter.” Field Sales Distribution Units (FSDUs), Point of Sale Materials (POSMs) and glassware are examples of how we interact with consumers in the off trade. To meet the glassware needs of a relaunched Asahi Super Dry and updated Peroni, it was crucial to find suppliers who could act as both glassmakers and decorators to produce a premium product, which the company duly e uro pe .busi ne ssc hief. com
109
A S A H I E U R O P E LT D
accomplished. For FSDUs, these are in-store display units and key opportunities to emphasise the premium nature of products. A tender for suppliers resulted in a 50% reduction in lead times as well as a move to higher quality printing, whilst paying significantly less than before. POSMs, meanwhile, were previously delivered by a number of different suppliers. Following a tender, Asahi Europe has been able to consolidate orders for fewer shipments, streamlining the 110
process and having the knock-on effect of reducing the carbon footprint stemming from reducing its need to ship goods around the planet. For Asahi, sustainability is always a consideration in the process of procurement. “From a sustainability standpoint, when we work with suppliers we deliberately look for programmes which will help to reduce our CO2 footprint, improve recycling rates, reduce wastage, increase recycled content and aid our transition to greener energy,” says Brenton. For Brenton, Asahi Europe’s aim for the future is simple: “to become a premium beer powerhouse.” SEPTEMBER 2019
“ALMOST OVERNIGHT WE ACQUIRED HALF A MILLION HECTOLITERS WORTH OF MANUFACTURING IN THE UK” — Ian Brenton, Head of Procurement, Asahi Europe
111
To achieve this target will require the contribution of every part of the business, but it is clear that procurement has an important role to play. From its packaging efforts supporting premiumisation to integrating its latest UK acquisition, the work of procurement means that Asahi Europe is indeed becoming a premium beer powerhouse.
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FROM OFFICE SUPPLIES GIANT TO LOGISTICS CHALLENGER WRITTEN BY
LAURA MULLAN PRODUCED BY
JUSTIN BRAND
SEPTEMBER 2019
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S TA P L E S
Kevin Lewis, Supply Chain Director at Staples UK, outlines how the office supply behemoth is proving to be a world-class contender in the logistics market
W
hen consumers think of Staples, they might recall the company’s famous office essentials. From its ink and toner to its
office furniture, the firm is renowned as a worldclass, multi-channel retailer. However, after selling off its retail business in the UK, Staples is pivoting towards a new market: the world of third-party logistics (3PL). 114
Kevin Lewis, Supply Chain Director at Staples UK, has helped to steer the firm’s supply chain transformation, consolidating its six warehouses across the UK and Ireland into one cutting-edge facility. “We’ve moved into a state-of-the-art distribution centre in Corby, Northamptonshire. In retrospect, it was much larger than we needed and it pushed us to look at how we could better utilise this asset. Now, we have some large-scale brands that have closed their own warehouses and made use of ours as a shared-user facility.” Winning business from traditional 3PL providers, Lewis contends that around 60% of the activity on the site now revolves around 3PL. “Our expertise has been focused on consolidated deliveries, consolidated invoices and the ability to mix our core product with actually almost any other product,” he adds. SEPTEMBER 2019
115
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S TA P L E S
“ THERE ARE FEWER ABSENCES, MORE EFFICIENCY AND A LOWER TURNOVER OF PEOPLE BECAUSE WE’RE INVESTING IN OUR TEAM” 116
— Kevin Lewis, Supply Chain Director, Staples UK
The distribution facility is an impressive feat but perhaps the most exciting aspect of the facility is its ingenious use of technology and automation. “About 70% of our operations are automated so we use Pick to Belt and Pick to Light solutions. On top of this, we also have implemented an order, storage and retrieval (OSR) system by Kanpp” explains Lewis. “It was a £9mn investment just for the picking tower alone, but by using the full height of the building we can be much more efficient.” It also allows people to pick economically; adjustable platforms mean that people don’t have to reach or bend down to pick up items. Instead, they can pick from a height that’s comfortable for them. On top of this, Staples has also experimented with weighing technology that adds an additional layer of protection. “It’s an extra safety net,” observes Lewis. “We know the weight and dimensions of every single product so if there is any weight deviation, we would be able to see that and alert the team.”
SEPTEMBER 2019
CLICK TO WATCH : ‘STAPLES SUPPLY CHAIN: A PARTNERSHIP OF EMPLOYEES AND TECHNOLOGY’ 117 With this state-of-the-art facility,
an investment in technology and
Staples is well equipped to tackle any
automation unless they can recoup
logistical challenge. It’s also worth
that investment within the lifetime
noting that in recent years the com-
of the contract,” he explains. “The
pany has closed many of its brick-and-
difference with Staples is that we have
mortar stores and pivoted towards
already made that investment. We want
ecommerce. This means it has first-hand
to make shared use of our assets and
experience of the challenges of
we can also offer competitive contracts.”
efulfilment. Furthermore, having
Indeed, Staples has already won
already made significant capital
over big-name clients like Adidas,
investments in automation, Lewis
and car servicing and repair company
contends that Staples can offer its
Kwik Fit. “If a Kwik Fit branch needs
clients more competitive contracts.
some brake cleaner or if an Adidas
“When you go to a traditional third-party
store wants to order some carrier bags,
provider, they’re not going to make
they can only get it from this warehouse,” e uro pe .busi ne ssc hief. com
S TA P L E S
“ WE WANT TO MAKE SHARED USE OF OUR ASSETS AND WE CAN ALSO OFFER COMPETITIVE CONTRACTS” — Kevin Lewis, Supply Chain Director, Staples UK
making complexity simple KNAPP is a leading global supplier of warehouse automation solutions, with over 1700 active systems worldwide. The group’s advanced conveying, storage and fulfilment technologies are combined in solutions that feature seamless integration and intelligent software. Successful projects in the UK recently include systems for Staples, John Lewis, Boots, M&S, Clarks, British Gas, Debenhams and Well.
energy-efficient
shuttle storage
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KNAPP UK Ltd Unit 60, Monument Business Park Warpsgrove Lane, Chalgrove Oxfordshire OX44 7RW Tel: 01865 965 000 | sales.uk@knapp.com www.knapp.com
119
E XE CU T I VE PRO FI LE
Kevin Lewis An experienced, commercially driven supply chain professional with a successful background in online fulfilment, large-scale parcel operations and multi carrier management. Strategic approach to successful business leadership and delivery, engaging with key business stakeholders and third parties alike, delivering effective supply chain solutions through managing People, Technology, Relationships and Processes. Extensive experience outsourcing, new site start up and muti-site consolidation both in the UK and internationally. PRINCE2 qualified, with experience of introducing practices and processes tailored to business requirements that enable and facilitate the wider strategic goals of the organisation. e uro pe .busi ne ssc hief. com
“ Staples may have sold its retail business but we’re very much thriving in terms of e-commerce and third-party logistics” — Kevin Lewis, Supply Chain Director, Staples UK
70%
of operations are automated
1986
Year founded
bespoke, tailored solutions exclusively for Staples,” says Lewis. This strong sense of collaboration can also be seen within the company too. By paying competitive, living wages rather than a minimum wage and investing in its team, Staples has worked hard to build a dynamic logistics business. “In the past,
10,000+
Approximate number of employees
we relied on agency workers and temporary labourers, whereas now it’s predominantly a permanently employed workforce,” says Lewis. “There are fewer absences, more efficiency and a lower turnover of people
Lewis notes. “Elsewhere, our biggest third-party client is Saint-Gobain,
because we’re investing in our team.” With this strategy in mind, Staples
which owns businesses such as glass
is ready to continue on its upward
companies and Graham heating and
trajectory, running more and more
plumbing. For this customer alone
supply chains on behalf of customers.
we have over 9,500 bespoke SKUs.”
“Staples may have sold its retail
Staples may be known for its retail
business in the UK, but we’re very
business but the firm is quickly making
much thriving in terms of e-commerce
waves in the logistics sphere. This
and third-party logistics,” affirms Lewis.
is partly thanks to its tech-savvy operations and global experience, but also its successful strategic partnerships. “We work with last-mile partners including TNT Fed Ex Group and Pallex. Both partnerships offer e uro pe .busi ne ssc hief. com
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122
How Pentahotels is embracing digital transformation, CSR and the modern ‘bleisure’ traveller WRITTEN BY
HARRY MENEAR PRODUCED BY
LEWIS VAUGHAN
SEPTEMBER 2019
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P E N TA H O T E L S
Heiko Rieder, VP of Revenue Management and Reservations at Pentahotels, discusses digital transformation, CSR and the changing nature of the hospitality space
T 124
here are many things that make up a truly great hospitality experience: a sense of luxury, peacefulness, access to new and
exciting activities – ask someone why they enjoyed their stay or meal somewhere and you could get a different answer every time. From fluffy towels and exquisite room service to eye-catching art on the lobby walls, at the heart of each and every positive experience is, it could be argued, a sense of attentiveness to the needs of the guest. Identifying and providing what will genuinely delight a guest can be the difference between a lifelong customer and a damning TripAdvisor review. This obviously applies to the entire length and breadth of the customer experience, from the moment of booking to check out and beyond. Therefore, if the desires and habits of its customers change, a hotel needs to change with it.
SEPTEMBER 2019
125
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P E N TA H O T E L S
“ We’re monitoring a significant shift in behaviour driven by younger generations of business and leisure travellers” 126
— Heiko Rieder, VP, Revenue Management and Reservations, Pentahotels
A member of Rosewood Hotel Group, Pentahotels is a global brand of neighbourhood lifestyle hotels serving upper-mid market business and leisure travellers at 29 locations in eight countries on two continents. The brand prides itself on innovative organisational strategies that provide its guests with a comfortable, stylish experience in a laid-back atmosphere. The heart of each Pentahotel is the Pentalounge, a combination of lounge, bar, café and reception area designed to cultivate the lifestyle impression that the company believes is key to securing the loyalty of the ever-shifting preferences of travellers. “We’re monitoring a significant shift in behaviour driven by younger generations of business and leisure travellers,” explains Heiko Rieder, Vice President of Revenue Management and Reservations at Pentahotels, noting that
SEPTEMBER 2019
CLICK TO WATCH : ‘WELCOME TO THE WORLD OF PENTA’ 127 Millennials and members of Genera-
of the company’s travel policy,” he says.
tion Z expect a greater degree of
“Also, it’s very important to them that,
flexibility in terms of business travel.
at the beginning or end of a business
We sat down with Rieder to explore
trip, they can add a night or two, which
the ways in which Pentahotels is
brings together the business and
harnessing innovative technologies,
leisure components of their trip.” The
embracing a new ideology centred
rise in “bleisure” travel is well docu-
around corporate social responsibility
mented: global technology company
and forging new collaborative partner-
Expedia found that, of the approxi-
ships with companies dedicated to
mately 400mn Americans that
digitally transforming the guest
travelled long-distance for business
experience in response to changing
in 2018, approximately 60% of them
demographics and customer priorities.
extended their trip by at least a day.
“We’re actually seeing talent choose their employer based on the flexibility
“We’re seeing more and more business travellers, who would previously have e uro pe .busi ne ssc hief. com
Elevating the
Guest Experience Wherever you find people expanding their horizons and embracing new experiences through travel, you’ll find Amadeus. In addition to supporting global air, rail, cruise and auto travel, our technology elevates the guest experience, drives loyalty, and increases profitability at more than 44,000 hotels and venues in 176 countries worldwide. Amadeus solutions enrich every step of the guest journey to provide hoteliers with the technology, data, and insight needed to meet the expectations of not only today’s guests, but tomorrow’s as well. And with the acquisition of TravelClick, we support all segments of the hospitality market — from small independent properties to large multinational chains — with the marketing, distribution, and operations solutions needed to acquire, serve, and retain guests while optimizing revenue. In partnership with our customers, we’re creating the next generation of hospitality technology. Together, we’ll meet evolving guest expectations with more experiential travel, provide new ways to deliver more personalized and bespoke stays, and leverage rich data to establish lasting relationships with the right guest at the right time.
We’re shaping the future of travel, and we want you to join us.
Process more than
1.7m
bookings a day, or 20 per second
Helped customers increase mobile bookings by
155% in 2018
Find out more
For further information, visit amadeus-hospitality.com or speak to your Amadeus Account Manager today.
Distributing more than
3.5m
shopping options on the Amadeus Travel Platform
P E N TA H O T E L S
130
been gone by Friday, stay through
He created, developed and deployed
the weekend,” observes Rieder. “It’s
the concept for centralised commer-
a good business opportunity for us,
cial services at Pentahotels and, as the
and one we need to be properly
Vice President of Revenue Manage-
equipped for.” Sustainability and social
ment and Reservations, oversees
responsibility are also becoming key
a team of 35 employees that handles
decision-making factors in the minds
in excess of $120mn in bookings
of younger travellers.
annually and is at the heart of the
Rieder, who has worked for Pentaho-
company’s ongoing initiatives
tels since the opening of its first
to respond to changing customer
modernised location in Eisenach,
priorities and demographics.
Germany 12 years ago, has been
One of the major trends in the hotel
a fundamental part of the company’s
space (alongside almost every other
guest experience since the beginning.
space) that has emerged in recent years
SEPTEMBER 2019
is the increased emphasis that custom-
here and our president, Mr Eugène Staal,
ers place on sustainability. Last year, The
has changed the way we think and act
Shelton Group reported that, in the US
regarding CSR,” says Rieder. “He has
workforce, 79% of Millennials consider
fully incorporated CSR into our culture
a company’s social and environmental
and we believe that it’s something the
commitments when deciding where to
target group that visits our hotels feels
work, a statistic with clear implications for
is important. We have launched several
a hotel brand looking to attract guests.
very creative campaigns focusing on
Pentahotels has been actively pursuing
contributing to our hotels’ surrounding
a CSR-centric strategy for several years.
neighbourhoods and the environment
“We had a change of senior management
as a whole.”
E XE CU T I VE PRO FI LE
131
Heiko Rieder Heiko joined Pentahotels in its startup phase in 2007 as Revenue and Reservations Manager. His passion for performance measurement and data analysis supported the conceptual design and rapid deployment of a centralised model for revenue generation and reservations handling as it is the companies foundation to commercial success until today. Before joining Pentahotels the German national worked for several global and regional brands such as Hilton and Steigenberger in Europe and the US in the field of rooms divisions and revenue management. In today’s position as Vice President Revenue Management and Reservations Heiko steers the company’s commercial direction and oversees the disciplines E-commerce, Revenue Management, Reservations, Distribution and Business Intelligence. Heiko concluded a dual hotel management training with Accor and the Albrecht Dürer Schulen Düsseldorf. e uro pe .busi ne ssc hief. com
P E N TA H O T E L S
This year, Pentahotels has partnered with Cornish music and arts festival Boardmasters to organise a beach clean-up at four locations across the UK and Belgium: Felixstowe Beach in Ipswich, Crosby Beach near Liverpool, Fistral Beach (beside the festival grounds in Newquay) and Ostend Beach in Belgium. The program encourages the audience to join the cleanup crews and, even though the 2019 festival was cancelled due to a storm warning, 132
the cleanup went ahead as planned. In 2018, prior to Christmas, Pentahotels also launched a campaign where social media engagement was used to rack up hours that were then donated to “support social work in our hotels and neighbourhoods,” explains Rieder. “Overall we accumulated more than 62 days’ worth of time to give back to our communities. There were teams raising funds to donate to children’s hospices, helping in shelters, refugee camps and animal rescues. The management team in Frankfurt went to deliver gifts to a refugee shelter on Christmas. It was an amazing experience to give SEPTEMBER 2019
back to our neighbourhoods together with all colleagues around the world.” In addition to aligning itself with a sustainability-conscious public, Pentahotels is harnessing new technologies intended to both ensure that its guests have the sort of experience that creates a lifetime customer while increasing efficiency. “In the long run it’s about gaining time for our guests, of course, but in our industry we must never forget that the guest experience is crucial,” explains Rieder. In order to increase flexibility and agility when dealing with changes in customer behavioural patterns and improve guest experience, Rieder is currently
“ We have launched several very creative campaigns focusing on contributing to our hotels’ surrounding neighborhoods and the environment as a whole” — Heiko Rieder, VP, Revenue Management and Reservations, Pentahotels
overseeing the development of a new partnership between Pentahotels and TravelClick. A subsidiary of Amadeus Americas, Inc, TravelClick is a one-stop shop for digital solutions relating to the bookings and hotel space. “We went through a very long, selective RFP process of sourcing a technology partner that can provide, not just CRM technology, but technology that enables us to e uro pe .busi ne ssc hief. com
133
P E N TA H O T E L S
134
SEPTEMBER 2019
870,000+ pints of beer consumed per year in Pentahotels
2007
Year founded
1,155
Approximate number of employees from 32 different nationalities
e uro pe .busi ne ssc hief. com
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P E N TA H O T E L S
136
“ In our industry we must never forget that the guest experience is crucial” — Heiko Rieder, VP, Revenue Management and Reservations, Pentahotels SEPTEMBER 2019
capture client information and also integrates with our booking engine,” Rieder explains. “You can accomplish what we need with 30 different vendors that each provide a single piece of technology that you then have to figure out how to connect to the rest of the infrastructure, but with TravelClick, we found that all of what we need is already incorporated into their offering. It includes CRM functionality, allows us to capture data to store it – all according to GDPR law – and then also allows us to invite people to provide us with information and to sign up into our marketing program as part of the booking process.” The new software, which has been implemented in record time, will grant Pentahotels a level of integration and back end capability that Rieder sees as instrumental to achieving the company’s goals moving forward. “We’ve already doubled the number of people who are opting in to our marketing program, which is very important to us,” Rieder enthuses. With this back end functionality in place, Rieder’s eyes are now set on harnessing technology to transform e uro pe .busi ne ssc hief. com
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P E N TA H O T E L S
138
“ We want to engage with our customers less on a transactional level and more in terms of a qualitative interaction” — Heiko Rieder, VP, Revenue Management and Reservations, Pentahotels
the front end elements of customer experience. “We are very modernised on the back office side of things, but we feel that we need to further improve on the guest experience when it comes to digitalization. We’re very close to launching technology that facilitates the self-check-in/check-out process at one of our hotels” he explains. “We want to engage with our customers less on a transactional level and more in terms of a qualitative interaction. We believe that this is what
SEPTEMBER 2019
139
our customers want to experience.
Looking to the future, Pentahotels
They want to check in while they’re
will continue to focus on its customer
in the taxi on the way to the hotel,
facing and internal processes in order
have a digital key and want to walk
to provide the sort of responsive,
straight through to their room, without
lifestyle-based guest experience that
having to stop by the reception and
is the mark of great hospitality.
wait in line to check in.” Soon, the company will also enrich its ‘Pentafriends’ guest membership program with further benefits and a more digitalised experience, again designed to increase qualitative engagement with guests. e uro pe .busi ne ssc hief. com
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NANDO’S: – N IO T A M O T U A BEYOND D IN H E B M A E T E H T Y G O L O N H C E T E TH WR ITT EN BY
SO PH IE CH AP M AN PR OD UC ED BY
CH AR LO TT E CL AR KE
SEPTEMBER 2019
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NANDO’S
AS NANDO’S ADOPTS NEW INNOVATIVE TECHNOLOGIES TO ENSURE ITS SUPPLY CHAIN OPERATIONS ARE NIMBLE IN LINE WITH ITS GROWTH, THE HEAD OF SUPPLY CHAIN ALSO HAS A STRONG FOCUS ON PEOPLE TO ENSURE THE TEAM IS UPSKILLED, ENGAGED AND ARE THE FOCAL POINT BEHIND AUTOMATION
N 142
ando’s was built on the solid foundations of family, integrity, pride, passion and courage. When Deon Pillay, Head of
Supply Chain – Nando’s Grocery International, joined the company in 2014, he was also introduced to the motto “Have fun and make money” – in that order. In 2016, Pillay become Nando’s Head of Supply Chain, and has always endeavoured to ensure this motto is included in everything he does, and is passed on to his team and to business partners. “My role has evolved over the time I have been at Nando’s – it has been the most exciting evolution I have ever experienced. I started in the role of Logistics Manager, handling export shipments out of South Africa with one person in my team. Today, in my role, I look after the wider supply chain which is strongly focused on four primary and overarching areas: Global Production,
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NANDO’S
New Product Development, Operations & Integrated Business Planning,
144
“ THE SUPPLY CHAIN AND PROCUREMENT ROLES HAVE BEEN EDGING CLOSER AND CLOSER TO CENTRE STAGE – MOVING CLOSER TO TAKING THEIR RIGHTFUL PL ACE ON THE BUSINESS PODIUM” — Deon Pillay, Head of Supply Chain, Nando’s
and Product Integrity.” Despite being only nine members strong, the grocery supply chain team manages a huge portfolio of products and activities that it is incredibly proud of. “I am often guilty of making some ridiculous asks of my team and pushing them well beyond their perceived limits. Fortunately, (I believe) this has helped grow them even more than just playing safe in any comfort zone would,” adds Pillay. As supply chain and procurement operations gain momentum across a range of industries globally, no longer being viewed as back-office functions, their role at Nando’s is changing too. “The supply chain and procurement roles have been edging closer and closer to centre stage – moving closer to taking their rightful place on the mainstream business podium. We are continuing to integrate across all functions to bring business equilibrium to an ever-turbulent commercial world,” he says. Pillay is still concerned that supply chain does not always receive the appropriate recognition it deserves:
SEPTEMBER 2019
CLICK TO WATCH : ‘WHITEBOARD ANIMATION: THE NANDO’S SUPPLY CHAIN STORY’ 145 “We are fortunate that at Nando’s the
“Even as a young, small team
supply chain is seen as a critical cog
we have achieved so much,” Pillay
in the company’s well-oiled machine.
notes. “The team has managed
When I joined, supply chain – or rather
to be so nimble to adapt and react
logistics – was viewed as a peripheral
to changes in our ecosystem, both
and basic function that got containers
macro and micro. We have moved
out the door. It was a functional depart-
entire production capabilities and
ment tasked with handling order adminis-
expertise across continents, we have
tration,” he adds. Since then the business
researched, developed and imple-
has seen steady growth and the supply
mented new packaging substrates
chain operations have transitioned to
and formats at break-neck speeds
a key business discipline consisting
without compromising quality whilst
of order administration and customer
staying current and abreast of
supply, logistics, packaging development,
regulations and the happenings
regulatory, compliance and food integrity.
in the industry.” e uro pe .busi ne ssc hief. com
By using digital as a catalyst to handle growth, Nando’s is able to achieve more without being resource-heavy, as well as becoming more time efficient.
TION “ DIGITAL TRANSFORMA RA WILL HERALD A NEW E FOR US – WITH THE E BUSINESS GROWTH W HAVE EXPERIENCED IT WOULD BE COUNTERLY PRODUCTIVE TO MERE THROW BODIES AT THE ” INCREASE IN ACTIVITY — Deon Pillay, Head of Supply Chain, Nando’s
“It allows the team to free up their time spent doing the mundane activities and focus on the value adding actions,” Pillay notes. “This has been particularly refreshing for our supply chain – so much so that we were able to extract superfluous costs out of our value chain and bring immense, sustainable value to our processes and continue to deliver these cost-saving efficiencies to the business. “I quite often say to my team that technology is not the future, but
With supply chain having significant
technology is now,” enthuses Pillay.
touch points to every part of the business
Nando’s endeavours to be a strong
and fully integrating into all Nando’s
player in the fields of Internet of Things
functions, the department is firmly on
(IoT), Robotic Process Automation
its way through its digital transforma-
(RPA) and Blockchain. Crucial to
tion journey. “Digital transformation
transparency and efficiency, these
will herald a new era for us – with the
technologies have caught the attention
business growth we have experienced
of the firm. But it is also important for
it would be counter-productive to
Nando’s that these initiatives are fit
merely throw bodies at the increase
for purpose for their business. The
in activity. We commenced our technol-
company is looking to introduce RPA
ogy journey a year and a half ago and
to reduce the time associated with
it has already yielded benefits.”
repetitive tasks – Nando’s made e uro pe .busi ne ssc hief. com
147
NANDO’S
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previous attempts to integrate electronic data interchange (EDI) services to tackle these issues, but found RPA more adaptable and impactful with a quicker implementation timeline. “With more focus on creating transparency in the supply chain, I firmly believe every professional in the sector will need to step up to technology or get left behind. Once you see it in action you get inspired as to how supply chain digitalisation is such a real and relatively easy win for any company,” he adds.
“ WITH MORE FOCUS ON CREATING TRANSPARE NCY IN SUPPLY CHAIN, I FIRMLY BELIEVE EVE RY PROFESSIONAL IN THE SECTOR WILL NEED TO STEP UP TO TECHNOLO GY OR GET LEFT BEHIND” — Deon Pillay, Head of Supply Chain, Nando’s
In December 2016, Nando’s transitioned to a new enterprise resource planning (ERP). “Our new ERP added the next layer of value to our business by providing easy access to information and allowing the team to plan and perform better. We are at the stage now where we are engaging with our partners to unlock their next level of value by developing the current workspaces or opening up new ones,” says Pillay. He remarks upon the resilience of his team for dealing with any changes introduced to their operations: “They have an incomparable drive, discipline and enquiring mind e uro pe .busi ne ssc hief. com
149
NANDO’S
150
which compliments my management
to streamline operations. “The team
style. The team have embraced all
took on more commercially functional
the changes and take continuous
roles which played an important part
improvement firmly in their stride.
in reprioritisation as well as shifting
“To adapt a Nando’s adage that
the focus to a more strategic mindset
‘it is the people behind the chicken’,
and way of thinking,” explains Pillay.
I firmly believe it is the team behind
Following the change, more focus
the processes, and more recently
was placed on planning, action-oriented
behind the technology. Technology
meetings and partner engagement.
is only as good as the team that are
“The people part is what most compa-
firmly rooted behind it and that support
nies neglect or omit, which leads
it. The supply chain team at Nando’s
to inappropriate processes that do
recently took a decision to reengineer
not support the technology in place.”
it’s supply chain portfolios in order SEPTEMBER 2019
As well as its focus on technology
as a driver to handle growth, Nando’s
the talk on this purpose and has
recognises the importance of sustain-
already delivered on several initiatives
ability. Pillay remarks that the team is
to prove it. “The humbling part
dedicated to ensuring a decrease in
of Nando’s purpose for me is that
carbon emissions and the incorpora-
Nando’s chooses not to publicise
tion of recyclability and recycled
these initiatives, which shows genuine
materials. Currently, Nando’s retail
heart to live the purpose.”
products’ packaging is 99.3%
Pillay has also undertaken his own,
recyclable, with the goal to raise the
personal project. With his passion for
figure to 100% well underway. Nando’s
his job so apparent, he wants to encour-
has also adopted ‘Changing Lives…
age younger generations to join the
Together’ as its company-wide purpose
industry: “I want to make supply chain
statement. The business really walks
a profession of choice for school 151
E XE CU T I VE PRO FI LE
Deon Pillay Deon is the Head of Supply Chain at Nando’s. A very experienced, dynamic leader, he is able to engage and develop highly motivated teams to achieve sustained company growth and profitability. An energetic visionary with a proven history of delivering excellence across the enterprise, Pillay as regarded as a consummate professional by his peers for consistently exceeding expectations in supply chain for more than 20 years, spanning from senior strategic roles in the FMCG, Electronics, Telecommunications, Paper & Pulp, Food & Beverage and Management Consulting. Innovation and ‘disruption’ in problem solving is his driving force, but developing leaders is his true passion. e uro pe .busi ne ssc hief. com
NANDO’S
152
35,000+ Grocery stores that globally sell the bottled sauce
1987
Year founded
1,440
Farmers growing chillies for PERi-PERi sauce SEPTEMBER 2019
153
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leavers. Many people merely wash up on the shores of supply chain, but I want to make sure school leavers buy a ticket to board the supply chain luxury cruise. I want them to under-
“ DEON, FOR ME PERSONALLY, HAS ALWAYS BEEN NIST A FANTASTIC SOLUTIO GUY…THERE ARE NO PROBLEMS, ONLY SOLUTIONS…WE CAN !! ALWAYS MAKE A PL AN ERE AND I, LOVE THAT… TH AS IS ALWAYS A WAY… IT H E TO BE RIGHT, IT HAS TH BE THE NANDO’S WAY… ND BUT BEING POSITIVE A O INSPIRED IS THE WAY T … MAKE THINGS HAPPEN BEING PART OF THE SOLUTION, NOT THE PROBLEM! LOVE HIM!!” — Robbie Brozin, Founder of Nandos
stand from the beginning what they are subscribing to, and more importantly be excited to get on board when they learn how magnanimous supply chain can be. The supply chain professional has just as much, if not more, commercial leverage within business than any other C-suite executive. The personal project I have embarked on will see complete integration of the supply chain fraternity, making talent enrichment a priority for business through a collaborative network of professionals. I’m very excited about this.” As the proliferation of technology adoption in the supply chain sector continues, Nando’s is keen to be a key player. In food supply chains, digitalising is an absolute must to enhance the way activities are processed and executed. Getting partner buy-in is not always easy, but is always a real bonus. “Our partner companies have their own strategy on where to take their automation, but we have been e uro pe .busi ne ssc hief. com
155
NANDO’S
fortunate to partner with companies who understand our needs as well, even though they themselves may not be ready for it in their own businesses,” Pillay explains. “In some cases, we have had our partners learn from us and implement our processes into their business; we have supported and assisted them in doing this as part of our partner engagement and development programme. “Forming relationships and connections between partners through digital 156
platforms is high up on our agenda. Supply chain technologies are evolving at a rapid rate and the important thing is to think of the big picture, start relatively small but try and scale up as quickly as possible. Integrated platforms allow for real time-data sharing and live updates. If you are not working towards building relationships in digital space, your reaction time to new information will slowly but surely take longer than your competitors who are becoming increasingly focused on this. Again, I cannot emphasis enough that people are more important that the technology you implement.” SEPTEMBER 2019
157
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NANDO’S
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“The future is bright for the business, but we will have to face the usual industry challenges with the added complexity
“ NEVER LET THE FEAR OF STRIKING OUT PREVENT YOU FROM STEPPING UP TO THE PL ATE” — Deon Pillay, Head of Supply Chain, Nando’s
of our involvement in over 30 countries. Product integrity, which is a Nando’s supply chain responsibility, continues to be firmly under our watchful eye – we want the best product with the best ingredients. We always want the best for our consumers. To achieve this, it is important we have transparency and traceability from farm to fork.” Whilst upgrading its digital offerings to ensure these challenges are met, Nando’s will never sacrifice product integrity in any way. Pillay still maintains the most important part of achieving all of this is an engaged team. We also have part of the supply chain team that is based in South Africa, the spiritual home of Nando’s. Being 10,000km away, or anywhere in the world, is not
Based in South Africa. Left to right: Robert Du Preez, Alpheus Muchini & Jesse Thaver
e uro pe .busi ne ssc hief. com
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NANDO’S
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a challenge anymore with technology but there is always a vested interest by all of us to make these Nandocas feel inclusive in everything we do. Again signifying the importance of people even if they are not physically in sight. Giving an engaged team the leverage, trust and respect to act on their own and try things they can justify is key to innovation and controlled disruption. And he encourages his team to take a page from Babe Ruth who said, ‘Never let the fear of striking out, prevent you for stepping up to the plate’. Apt words from the Nando’s grocery supply chain team, which has, and continues to have, successes
Left to right: Catarina Nascimento, Deon Pillay, Laura Bacon, Eliza Hall, Gareth Griffith-Swain & Nick Gundersen
of hitting many out the park!
e uro pe .busi ne ssc hief. com
161
Just in time to say goodbye.
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