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EUROPE EDITION JULY 20 19 europe.businesschief.com

Biggest manufacturers in Europe

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Flexible, future proof cryptocurrency mining infrastructure Silviu Catalin Balaci, CEO of Evobits IT, on software built to last

City Focus

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FOREWORD

W

elcome to the July issue of

talks to Pizza Hut, Taco Bar and

the Europe edition of Business

Panalpina to discuss sustainability and

Chief Europe!

digital transformation. Ascendant

On the cover of this month’s issue

Resources and ImpactAgri reveal

of Business Chief Europe, Evobits IT

their journeys within the mining indus-

discusses its plans to upgrade data

try, whilst Geodis and Millenium

centre facilities.

Hotels and Resorts explore

Silviu Catalin Balaci,

supply chain functions.

Founder and CEO of

The City Focus for the

Evobits IT, talks about

month of July evaluates

growth within the firm’s

Amsterdam’s role as

cryptocurrency trading software solutions. Moneypenny features in

Silviu Catalin Balaci, Founder and CEO, Evobits IT SRL

the June edition to highlight the introduction of artificial intelli-

a technology hub and capital – Business Chief looks at what events the city has to offer.

This issue, we discover the top 10

gence (AI) to its operations – improv-

biggest manufacturing companies

ing efficiency and client experience.

based in Europe – featuring GA Smart

“The way that we’re a bit different is by giving businesses a person that

Building, Ba&Sh S.A.S. and Almacantar Limited.

they know and trust, so it’s not a call centre model,” explains Joanna

Enjoy the issue!

Swash, Global CEO of Moneypenny.

Sophie Chapman

Elsewhere, in our exclusive com-

sophie.chapman@bizclikmedia.com

pany reports, Business Chief also e u r o p e . b u s i n e s s c h i e f. c o m

03


From Inspiration

to Innovation


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CONTENTS

FLEXIBLE SOFTWARE AND INFRASTRUCTURE SOLUTIONS FOR CRYPTOCURRENCY MINING AT EVOBITS IT

12 30

40 HOW IS DIGITAL TRANSFORMATION REVOLUTIONISING THE SUPPLY CHAIN SECTOR?

Bringing AI to personalised communications


in T N A H P E L E The : m o o r l a t i g e di th d e n n a l p n u ime t n w o d

52 62

70 Amsterdam City Focus

80 Social impact: balancing profit and purpose

TOP 10

biggest manufacturing companies in Europe


CONTENTS

96

BKW AG Pizza Hut

110

124

Taco Bar

ImpactAgri


142 Geodis

156 Panalpina


12

FLEXIBLE SOFTWARE AND INFRASTRUCTURE SOLUTIONS FOR CRYPTOCURRENCY MINING AT EVOBITS IT WRITTEN BY

HARRY MENEAR PRODUCED BY

LEWIS VAUGHAN

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e uro pe .busi ne ssc hief. com


E V O B I T S I N F O R M AT I O N T E C H N O L O G Y S R L

SILVIU CATALIN BALACI, FOUNDER AND CEO OF EVOBITS IT, SHARES THE ROMANIAN CRYPTOCURRENCY MINER’S PLANS TO UPGRADE ITS CURRENT DATA CENTRE FACILITIES AND GROW ITS HOST OF CRYPTO TRADING SOFTWARE SOLUTIONS

W

ith a collective value of around US$275bn, the rise of the global cryptocurrency market has been one of the most revolu-

tionary financial and technological events of the 21st century. Cryptomining, the process by which 14

transactions for various forms of cryptocurrency are verified and added to the blockchain digital ledger, has helped make billionaires of savvy business leaders, but the lack of regulation in the market often leads to instability and unpredictability. In December 2017, Bitcoin reached its all-time high value of $19,783. By November 2018, the price had fallen to approximately $5,500 per coin, and in May 2019 the coin’s value soared again by over $1,000 in less than a day. “The biggest issue right now with crypto and trading in general is the market’s vulnerability to manipulation,” explains Silviu Catalin Balaci, founder, CEO and majority shareholder of Evobits Information Technology SRL. “As liquidity is so low, compared with stocks for example, when a large player jumps in, they can pretty much manipulate J U LY 2 0 1 9


15

e uro pe .busi ne ssc hief. com


E V O B I T S I N F O R M AT I O N T E C H N O L O G Y S R L

“I DIDN’T WANT TO JUST PUT UP A SHED AND THROW MINING MACHINES IN THERE. THAT WOULD HAVE BEEN VERY CHEAP AND FAST, BUT NOT FUTURE PROOF” 16

— Silviu Catalin Balaci, Founder and CEO, Evobits Information Technology SRL

the market as they see fit. That’s why we’ve seen huge spikes one way or another when there are big trades that completely reverse the trend up until that point.” Coupled with the high initial costs of setting up a crypto mining operation, the capricious crypto market might tempt some prospective miners to try something more predictable (alligator farming or Alaskan crab fishing perhaps), but Silviu, a software engineer and owner of one of the largest cryptocurrency mines in Romania, is confident he has the puzzle cracked. “I was always wary of the mining business, because it’s a boom and bust area. I didn’t want to just put up a shed and throw mining machines in there. That would have been very cheap and fast, but not future proof,” he says. For the first three years of operation, EvobitsIT operated exclusively as a software services business, offering full stack programming and consultancy services. “We do start-to-finish turnkey solutions for our customers,” says Silviu. “You tell us the idea, we’ll develop it, design it, host it and manage it; you only have to deal with the marketing side.” While working with a

J U LY 2 0 1 9


CLICK TO WATCH : ‘CRYPTO MINING – EVOBITS IT’ 17 client that was also involved in crypto

to operate as dedicated centres for

mining, Silviu had his ‘Aha!’ moment.

non-cryptocurrency activity, providing

“I was consulting for a client on his

a long term strategy should the market

mining business. I’d seen the service he

prove unfavourable. Now, Evobits’

was getting from other companies and

1.2MW facility is nearing completion

told him that I could do it better. That’s

of a significant upgrade, facilitated

how the entire mining side got started.”

by long term partnerships with Vertiv

Entering the mining business with a

Co and Innova Engineering, and a new

100KW proof-of-concept, EvobitsIT then

relationship with AMD. We sat down

built a 1.2MW facility for crypto mining

with Silviu to discuss the initiative,

outfitted like a traditional data centre,

as well as the importance of strong,

followed by a 3.5MW facility which

collaborative partnerships, and the

opened in 2018. Rather than opting for

upcoming launch of Evobits’ innovative

a hyper-minimalist crypto mining design,

new software offerings for the crypto

the Evobits centres have the possibility

mining industry. e uro pe .busi ne ssc hief. com


E V O B I T S I N F O R M AT I O N T E C H N O L O G Y S R L

18

Evobits’ first data centre was initially

saying, ‘I have a multimillion dollar

constructed with reliability in mind.

project. I want to build a cryptocurrency

“We wanted to build it in the traditional

mining business, and I want to do

sense, so we used old school but

a real data center’. Nobody took me

reliable cooling equipment. They don’t

seriously.” As a result, Evobits ended

have the best power usage effective-

up partnering with a company unsuited

ness (PUE), but they’re like tractors –

to its needs. “It was a pretty bad

they’re reliable workhorses,” Silviu

experience for us,” Silviu recalls.

explains. While constructing the facility,

“It’s the ugly part of starting a business

the first of its kind in the country, Silviu

in a new area that you know little about.

faced undeniable challenges from the

It was a growing experience.” From

market in terms of finding the right

electrical panel overheat issues to poor

partners. “I was just a relatively young

after-sale support, Evobits was in dire

guy with no credibility in the market

need of a new partner to help ensure

J U LY 2 0 1 9


the project’s success – enter Innova

the importance of high-efficiency

Engineering. “From the start it was

computer power to a crypto mining

a completely different attitude. Instead

data centre, cooling is undoubtedly

of talking to just the sales guy most

one of the most critical factors,

of the time, the CEO came down and

making Vertiv an immensely valuable

we had a proper discussion,” Silviu

partner. “Whatever power you have,

recalls. Now, every time we have an

you will use 100%, and the less power

issue, they’re working with us to solve

you can use on infrastructure, the

it. I’m extremely lucky to have found

more power you can use for comput-

Innova. I don’t think we could have

ing, which translates to more mining,

done everything that we did without

more customers and more revenue,”

them.” Through Innova, Silviu found

Silviu explains in a statement to Vertiv.

engineering firm Vertiv, who provided

The upgrade of the 1.2MW centre

cooling solutions for the first and

came at an opportune moment. “We

second data centre projects. Given

had a PUE of 1.4 until now, so 40%

E XE CU T I VE PRO FI LE

Silviu Catalin Balaci, Founder and CEO Silviu Catalin Balaci is a technology enthusiast with an entrepreneurial spirit. Starting as a freelance developer at the age of 17, he opened his first software development company at 19. He was constantly involved in emerging technology (both hardware and software), until coming in contact with Blockchain Technology. Recognising the opportunity, Silviu explored all aspects: from consulting, to software development, to mining. He formed Evobits Information Technology SRL in 2014 as a company focused on Blockchain development and the goal of becoming a one-stop-shop for customers through vertical integration. Looking at the future, he is certain of only one thing: not matter what happens, it will be exciting.

e uro pe .busi ne ssc hief. com

19


E V O B I T S I N F O R M AT I O N T E C H N O L O G Y S R L

20

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“I’M EXTREMELY LUCKY TO HAVE FOUND INNOVA. I DON’T THINK WE COULD HAVE DONE EVERYTHING THAT WE DID WITHOUT THEM” — Silviu Catalin Balaci, Founder and CEO, Evobits Information Technology SRL

e uro pe .busi ne ssc hief. com

21


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E V O B I T S I N F O R M AT I O N T E C H N O L O G Y S R L

of the energy is wasted just cooling the equipment. Which is not that bad for a traditional data centre,” explains Silviu. In 2018, however, Romanian electricity prices increased by around 80%, highlighting more than ever the importance of future proofing. “The 3.5MW facility is equipped with top of the line equipment in every single aspect, including the cooling equipment from Vertiv, which means we achieved a 1.13 PUE last year, including the hot summer,” says Silviu. “We planned to upgrade the first centre anyway but we shut it down 24

three months before the upgrade due to the spike in electricity prices and the crash of the crypto market.” In order to counterbalance the rise in electric costs, Evobits was forced to restructure its energy purchasing strategy. “We were pretty much forced to also become an energy company,” Silviu explains. “We are buying electricity straight from the open market, instead of relying on other companies.” The company is currently buying a mixture of mostly hydroelectric and nuclear power, with plans to purchase a dedicated solar plant in order to compensate for high temperatures in the summer in an environmentally sustainable way. J U LY 2 0 1 9

“W E DO START-TOFINISH TURNKEY SOLUTIONS. YOU TELL US THE IDEA, WE’LL DEVELOP, DESIGN, HOST AND MANAGE IT; YOU ONLY DEAL WITH THE MARKETING SIDE” — Silviu Catalin Balaci, Founder and CEO, Evobits Information Technology SRL


The 1.2MW facility upgrade will boost its capabilities to those similar to a tier three data centre. “We have everything now: N+2 cooling, N+1 highly efficient Li-ion uninterruptible power supply system (UPS) from Schneider Electric, A+B power feeds, N+1 power generators, redundancies for every system. Our network was upgraded too: dark fibres on separate routes going to the nearest city, local fiber connections from multiple ISPs, as well as rented dedicated transport lines to Bucharest and Frankfurt peering locations so we reduce the latency and increase the quality as much as possible,” lists Silviu. In order to increase the centre’s computing power, Evobits has entered into a new partnership with electronic hardware manufacturer AMD, purchasing over 5,000 cores in the company’s Epyc CPUs and developing a close relationship in order to create custom cloud solutions for its data centre clients. “The next phase will be the launch of an OpenStack-based private cloud in the next two months that is already in the testing phase. This will be exclusively based on AMD Epyc CPUs,” explains Silviu. “The first 100 of our dual CPU servers are ready, racked and deployed. e uro pe .busi ne ssc hief. com

25


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“T HE 3.5MW FACILITY IS EQUIPPED WITH TOP OF THE LINE EQUIPMENT IN EVERY SINGLE ASPECT” — Silviu Catalin Balaci, Founder and CEO, Evobits Information Technology SRL 27 This year we plan on buying another 300 dual CPU servers.”. “Sourcing

Supermicro based servers”. 2019 will also mark the launch of

hardware at a larger scale is not as

cryptocurrency products that are more

easy as it seems. Just like when we

closely tied to Evobits’ roots as a

started with the Data centre business,

programming and software services

we were new in this and had to find

provider. Firstly, as data centre

someone to help us navigate around.

pioneers at scale, Evobits’ staff has

There are plenty of hardware distribu-

had to build a great deal of its software

tion companies around, but you can

from the ground up, which the compa-

count the really good ones on one

ny plans to start selling as a service in

hand. This time we were lucky, how-

partnership with Innova. “Using AI

ever, and found International Computer

monitoring, Google managed to drop

Concepts, a very easy to work with

their power consumption for cooling by

and dependable company. They were

about 40%. We have our monitoring

crucial in providing our first 100

platform completely done. We have e uro pe .busi ne ssc hief. com


E V O B I T S I N F O R M AT I O N T E C H N O L O G Y S R L

terabytes of data from the past year regarding airflow, temperatures of each individual machine in each position, outside temperature and so on. Now we’re doing the machine learning part, and we’ll start testing that side out towards the end of the summer.” Also embracing the company’s origins as a software provider is Evobits’ next solution, which aims to address the issue of unsafe crypto trading. “The problem with starting the next PayPal is that you have to trust PayPal,” posits Silviu. “The customer 28

pays you, but your money is actually in PayPal. They will send it to you. If you have an issue with them or they have an issue with you, you’re pretty much stuck. The main point of cryptocurrencies is to have a trustless system where

a value of over $100mn in 2018.” Silviu

you are in charge and responsible.”

explains. Evobits’ platform will provide

Operating in closed beta and scheduled

a complete inventory management and

for launch in summer 2019, Evobits’

invoicing tools, and monitor peer-to-

latest offering is a trustless cryptocur-

peer crypto transactions to regulate

rency invoicing platform. “It’s similar to

the exchange, but won’t require users

PayPal but for cyrptocurrency coins,

to trust them with their hard-earned

and it’s a trustless system, meaning we

coins. Silviu agrees that, in a market

never touch the money, we just provide

with so little regulation, trustless

all the tools required and peek through

systems are a large part of the way

the window to detect the payments.

forward. “You see so many people

We already processed invoices with

losing their money when cryptocur-

J U LY 2 0 1 9


€15mn Approximate revenue

2014

Year founded

10

Approximate number of employees

rency platforms close, go bust or get

centre business complain about –

hacked. The best way forward is to

there’s the energy consumption, which

remove that single point of failure.”

is still really high and needs to be

Looking to the future, Silviu is

addressed,” he says. “As long as those

enthusiastic about cryptocurrency

things get fixed, then honestly this

mining and the growth of Evobits, but

industry has a great future.”

acknowledges that both cryptocurrencies and crypto mining need to mature. “The market needs to be regulated one way or another; it needs to follow the trustless system; and thirdly – this is something that most people in the data e uro pe .busi ne ssc hief. com

29


LEADERSHIP

30

Bringing AI to personalised communications As Moneypenny continues to grow, Joanna Swash, CEO, talks to Business Chief about what innovations are being incorporated to improve operational efficiency and client experience WRITTEN BY

J U LY 2 0 1 9

SOPHIE CHAPMAN


31

e uro pe .busi ne ssc hief. com


LEADERSHIP

U

sed by four of the ‘Magic Circle’ law businesses and 60% of the top 200 law firms, Moneypenny’s services

reach a huge portfolio of customers. The

outsourcing firm enables constant communication for its clients, depending on their needs. “We’ve got a wide range of products and services for businesses of all sizes, from the one-man band who needs us a couple of times a week, to a fully outsourced switchboard,” explains Joanna Swash, Global CEO of Moneypenny. “No matter who they are or what their business 32

sector is, we’re taking calls or chats for them. The way that we’re a bit different is that we give businesses a person they know and trust, so it’s not a call centre model. We offer dedicated receptionists and dedicated PAs, because the relationships that you’ve got between businesses and their outsource partners are just so important.” Swash joined Moneypenny in 2005 as the first salesperson for the company. “I’ve seen the firm grow from about 20 employees to 750. The founders, Ed Reeves and Rachel Clacher, have always recruited people who do things that they couldn’t, which allows people to grow and flourish. So straight away, J U LY 2 0 1 9


“That’s something we’ve been really great at: keeping the feeling of a small business. We would hate to dilute that because it’s who we are, it’s in our DNA” — Joanna Swash, CEO, Moneypenny

33

e uro pe .busi ne ssc hief. com


LEADERSHIP

I found my niche. Now, as a leader, I think it’s so important that you hire people that are much better than you,” Swash says. In the last year alone, Moneypenny bought the Made Simple Group, received investment from ECI partners, and also formulated plans for further acquisitions. The company has also recently hired a new Chief Marketing Officer and is looking into a Chief Technology Officer. Despite its clear growth since it was established in 2000, the firm has continued to operate as a small business. “The culture and

34

the feeling of the business hasn’t changed. That’s something we’ve been really great at: keeping the feeling of a small business. We would hate to dilute that because it’s who we are, it’s in our DNA,” she adds. For Moneypenny, ensuring it offers its clients the best match for their business is crucial. “Our ethos is to give a business the same kind of person they would employ themselves if they came to the door for an interview,” notes Swash. “If it was a vet coming on board, we’d give them somebody who absolutely loves animals.” J U LY 2 0 1 9


CLICK TO WATCH : ‘INTRODUCING YOUR MONEYPENNY PA’ 35 With a focus on providing a personal

notes Swash. Moneypenny’s adoption

touch to its offerings, the business has

of technology is twofold: its used for

endeavoured to incorporate that element

client-facing tasks and internally. The

into its new innovations. “Now it’s all

firm is using cloud-based phone systems

about introducing knowledge bases,

to serve its clients, which Swash

chatbots, different ways of working.

argues “have to be the best available”.

We also think natural language

Moneypenny has also leveraged artificial

switchboards will be the next thing for

intelligence (AI) to enhance its internal

us,” she continues.

functions, with employees using the

“Technology not only helps us tech-

bespoke AI software dubbed “Rita” on

nically do our job, it also allows us to

a daily basis. “Rita is already processing

surpass expectations with our clients

data and is 190,000 times smarter every

as well. It’s our duty to come up with

day,” the CEO explains. Moneypenny

products and services that our clients

uses 15mn client communications per

wouldn’t normally have access to,”

year and attains five learnings from e uro pe .busi ne ssc hief. com


LEADERSHIP

“Technology not only helps us technically do our job, it also allows us to surpass expectations with our clients as well” — Joanna Swash, CEO, Moneypenny

36

each one. These learnings are then fed

adapting to new changes. “We always

back into the AI engine, improving its

say to everybody, clients and staff, ‘We’re

intelligence and efficiency. “To help our

on a journey’. When you think about

staff do a brilliant job for clients, our

the team, as long as you invest in them

technology has to be quick and respon-

and give them time to learn new things

sive. It also needs to have the right infor-

and tell them why it’s important, I think

mation available at employees’ fingertips.

you get everybody get on board. You

This enables us to have natural conver-

gain the trust of employees by being

sations, whether or not that’s on the

open, and they really trust us as an organ-

phone or on chat,” she adds.

isation. We’ve got such a low staff

As digital transformation enables the

turnover. We get hold of the right kind of

firm to grow and become more valuable,

people and we invest in them and help

Moneypenny’s employees are quickly

them grow,” says Swash.

J U LY 2 0 1 9


37

With Moneypenny continuing to

its US operations, the firm plans to

expand its operations, regional

launch new tech products to stren-

growth is also on the horizon: “We’re

gthen its clients’ loyalty to the brand

focusing on consolidating our

within the next five years. Swash

position,” Swash enthuses. “We are

anticipates this will lead to a greater

one of the world’s leading outsource

percentage of its revenue deriving

communications provider and we

from digital sales. “So where do I see

have made some really good inroads

the company going? I see that we’re

into the US market. We have 50

growing,” she claims.

people over there at the moment – we’ve expanded slowly but surely, and we know we’ve got really firm foundations there.” As well as growing e uro pe .busi ne ssc hief. com


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

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TECHNOLOGY

40

HOW IS DIGITAL TRANSFORMATION REVOLUTIONISING THE SUPPLY CHAIN SECTOR? Vivek Wikhe, Domain Expert of Retail and Supply Chain at LatentView Analytics, discusses the future of supply chain management and the impact of digital transformation WRITTEN BY

J U LY 2 0 1 9

VIVEK WIKHE


41

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TECHNOLOGY

A

ll over the world, supply chains are disrupted by the advance of technology and leaders must rethink their strategies.

Business Chief caught up with LatentView’s Vivek Wikhe to find out how organisations can make the most of digital disruption to best serve the end consumer. Why must companies rethink their supply chain strategies in the age of digital transformation? There are major cascading factors contributing to companies rethinking their supply chain strat42

egies in the age of digital transformation. First, the demand side has changed rapidly. Today, there are more channels and touchpoints than ever before, which all serve different needs along the customer journey. This has resulted in a migration away from the way that demand has traditionally been generated. Invariably, it is the ability to service and optimise these new channels that allows companies to differentiate and gain a competitive edge. Organisations are no longer sure of the costs and margins in each channel that touches consumers, and are still figuring out which channels they need to service and promote in the digital era. Ensuring profitable margins across channels requires a well thought out supply chain strategy according to a company’s customer base and an J U LY 2 0 1 9


“Ultimately,all organisations across industries must rethink their supply chain strategies as the digital era continues moving towards the diversification of channels� — Vivek Wikhe, Domain Expert of Retail and Supply Chain, LatentView Analytics

43

e uro pe .busi ne ssc hief. com


TECHNOLOGY

44

optimised channel mix. Ultimately, all

a specific brand, which is easier to

organisations across industries must

predict based on demographics, (for

rethink their supply chain strategies as

example, purchasing Nike sneakers),

the digital era continues moving towards

they will typically begin their shopping

the diversification of channels.

journey by searching online for certain

 What are some immediate steps that need to be taken in order for

attributes and features that they want (“stylish white sneakers�). Organisations need to tune their

companies to maximise profitability

supply chains to reflect this shift. Instead

in their supply chains?

of serving a target market based on

Buying behavior is moving towards more

demographics, supply chains must take

nebulous attribute-based purchases.

into account a larger market brought

Instead of consumers focusing on

about by the digital era. Supply chains

J U LY 2 0 1 9


should evolve to fulfillment chains, which

supply and demand, supply chains need

can serve multiple channels profitably.

to get increasingly more agile and more

The first step to maximising profitability

in tune with short-term planning. Even

is to get a clear picture of order costs

traditional industries need to stay abreast

incurred in every channel. This is a com-

of quickly developing consumer trends

plex problem with multiple, co-depend-

and desires. For example, food and

ent factors. It gets complex because

groceries are a traditional and staple

the costs need to be predicted to ensure

category. However, today, there are

an enterprise has a profitable order

trends in food that pop up quickly, giving

fulfillment scenario. The analysis of the

traditional consumer buying behavior

cost structure and visibility to them is

a very short-term strength. Many cate-

the first step to maximise profitability

gories overall are moving towards the

for supply chains.

shorter-term life cycles, and enterprises need to move to reflect that as well,

What are the challenges that enterprises face as they move to digitise

and become leaner and more agile. Â

their supply chain, and what are

How does having better data strategy

a few best practices to overcome

create greater supply chain efficiency?

these challenges?

So much of demand is influenced by

The main challenge is that due to the

what consumers are seeing online - you

changing nature of modern consumer

essentially can predict what consumers

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TECHNOLOGY

are going to buy by having strong insights into data on what influences customer behavior. For example, a few years back, Amazon became famous for predicting demand. In fact, they were so good at it, that they were shipping goods before the customer even purchased them. All companies need to have a view of the latest technology for predicting customers purchasing behavior. As buying cycles continue to grow shorter, there is no longer time to procure and supply a product without advance 46

preparation. Ultimately, in order to not miss out on profitable opportunities, and to have a more focused organisation of the supply chain, a modernised data strategy that involves predictive analytics for both the supply and demand sides is necessary. A ‘better’ data strategy is one where enterprises have a single view of all data points and these are integrated to respond in sync with unit changes. An integrated data strategy helps move the fulfillment chain in three phases - increasing visibility thereby reducing variability and finally increasing velocity. All these three phases require a different yet integrated data strategy. J U LY 2 0 1 9


As enterprises continue through their digital transformation journeys, how are innovations in AI and predictive technologies specifically playing a role? Most enterprises on digital transformation journeys go through several stages, as they learn to apply machine learning and artificial intelligence. These stages are: descriptive, prescriptive, and predictive. In the first, you can only see what the data does, and it can help inform decisionmaking processes. In the second stage, you can employ an AI technology to gain prescriptive intelligence to solve specific problems or gain insight into definitive opportunities - for example, AI can identify demand per channel, or identify which models are the most profitable. In the third and final stage, you reach an exalted state of sorts wherein the ability to predict trends in the data becomes so accurate that it’s possible to preempt action around the insights. This final stage will lead to a much more focused and streamlined supply chain, and allow for comprehensive preemptive planning for all relevant supply and demand factors. e uro pe .busi ne ssc hief. com

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TECHNOLOGY

48

Are there any particular industries

What do you see as the biggest

which have the best opportunity to

trends going forward related to

gain a competitive advantage by

emerging technology in AI and the

adopting this technology before the

supply chain?

rest of their peers?

Going forward, I see a number of ways

I can’t think of any industry that should

that emerging technology will continue

not be investing in emerging technology

to influence the supply chain. The next

solutions. In fact, it is no longer really

step in using data in the supply chain

a question of competitive edge, but

will be merging all sources of customer

rather of survival. If you’re not investing

data, including social media data. Down

in emerging technology and at least

the line, we’ll be looking at more IoT

exploring opportunities with AI, you’re

data. In coming years, we expect to see

making yourself vulnerable to other

the rise of the intelligent home assis-

companies in the field that may have

tant as the first point of understanding

higher efficiency and greater analytical

consumers and the supply side. Informa-

abilities (and thus a greater competitive

tion on demand signals will no longer

advantage) in their supply chain.

be coming directly from consumer

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“The main challenge is that due to the changing nature of modern consumer supply and demand,supply chains need to get increasingly more agile and more in tune with short-term planning” — Vivek Wikhe, Domain Expert of Retail and Supply Chain, LatentView Analytics

49

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TECHNOLOGY

“I can’t think of any industry that should not be investing in emerging technology solutions. In fact,it is no longer really a question of competitive edge, but rather of survival” — Vivek Wikhe, Domain Expert of Retail and Supply Chain, LatentView Analytics 50

data, but rather personal assistants inside the home. On the logistical side, I expect we’ll also be seeing a greater ability to deal with smaller markets. Once analytics helps optimise supply chains to a greater degree, things such as home delivery models will become profitable, even for smaller markets and chains. The overwhelming trend will be intelligent assistants embedded in various enterprise chains interacting with each other to ensure regular chores are carried out without constant human intervention J U LY 2 0 1 9


Are there any recent projects LatentView Analytics has worked on related to supply chain analytics that you can discuss? Currently we’re working on several interesting projects. We’re helping some big name retailers understand how in an omni-channel environment they can understand their net cost for every consumer channel. There are certain aspects where it becomes not just a supply chain solution. Once you understand the optimal channel mix, you also have to take into account downstream promotion, and make the data actionable and profitable. We’re also doing some work in supply chain and predictive analytics. In the US market, over the past two years, there have been more occurrences of incorrect delivery windows, due to shortages of supply. This creates both a greater cost to the company, as well as operational inefficiency. We’re now looking at a predictive model that compiles and analyses data to help more accurately predict arrival times of packages for consumers.

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PEOPLE

n i T N A H P E L E e Th : m o o al r 52

t i g i d e th d e n n unpla e m i t n w do

Mark Homer, VP Global Customer Transformation, ServiceMax , discusses how businesses must improve asset management and servicing to reduce unplanned downtime pressure due to a growing reliance on automation and digital transformation

WRITTEN BY

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MARK HOMER


53

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PEOPLE

A

s industrial automation continues to digitse, one area in particular is becoming a critical area of concern–

unplanned downtime. The shift to outcomebased business models, equipment assets becoming more sophisticated and connected,

and of course, the pervasive and increasing reliance on machines, are all adding to the pressure to avoid outages. Mitigating downtime is now a strategic priority in the digital age. Take power as an example. In the US, generating units are unavailable on average for 15% of 54

the time due to outages and maintenance. In fact, 6% of the time they are unable to meet demand at all. And the Energy Information Administration highlights that a further 6% of electricity is lost in transmission and distribution due to both technical factors and outages. The growing reliance on automation is already widening performance gaps. Businesses are losing sight of assets, especially in terms of efficiency, leading to a fractured insight of manufacturing or service delivery. The upshot is that unplanned downtime becomes a real problem and even worse, the lack of visibility leads to an unnecessary lengthening of recovery time. Closing this downtime gap is a fundamental step in an organisation’s digital maturity, and a core part of their transformation journey. J U LY 2 0 1 9


“The growing reliance on automation is already widening performance gaps” — Mark Homer, VP Global Customer Transformation, ServiceMax

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PEOPLE

According to a recent Vanson Bourne global study After The Fall: Cost, Causes and Consequences of Unplanned Downtime, 82% companies have experienced at least one unplanned downtime outage over the past three years, and two on average. These outages have lasted four hours. Depending on the company and type of equipment, this can cost organisations anywhere from $50k-$150k per hour for say, a medical device company, and up to $2m for a major outage on an industrial critical asset. (Aberdeen estimates the cost across all businesses

56

to be $260,000 an hour). The research also revealed high levels of asset estate ignorance across organisations, with 70% of companies lacking full awareness of when equipment is due for maintenance, upgrade or replacement. In addition to financial losses, the research found that almost a third of respondents said they were unable to service or support specific equipment assets, while 65% of respondents from the energy and utilities sector, and 62% from the medical sector cited losing the trust of their customers as J U LY 2 0 1 9


CLICK TO WATCH : ‘SERVICEMAX DAY IN THE LIFE OF TECHNICIAN OVERVIEW’ 57 a possible impact of suffering a high-

industrial digital strategies. Key to this,

profile incident or disaster. Across all

is an understanding of and investment

sectors, around one in ten admitted

in field service management and asset

their company would never recover

performance management capabilities.

from such critical incidents and would

According to Vanson Bourne, eight

ultimately cease to exist. Nobody wants

in ten companies have already

to be blindsided with those sorts of

recognised this, at least that digital

numbers. But what are companies

tools can improve visibility of assets

doing about it?

and help eliminate unplanned down-

The research hints at a tipping point

time. Around 50% of companies

in recognition of the problem and

confirmed they plan to invest in field

planned investment to address it. Over

service and asset management

time, zero tolerance and zero unplanned

technologies in the next three years,

downtime will become the norm as

while 72% of firms claim that zero

companies develop and invest in their

unplanned downtime is now a number e uro pe .busi ne ssc hief. com


PEOPLE

one priority. So, the message is sinking in at least. The challenge for most businesses is to digitally transform without losing oversight of key products, services and of course assets. Digital transformations do not automatically improve control and visibility. Companies need to pursue a service-led approach to business, to ensure that their ability to manage the actual assets that make products or ensure services run smoothly are always up and running. A clear asset management and predic58

tive maintenance strategy should ensure that businesses take the right path towards reducing, if not completely eliminating downtime. Understanding problems before they happen and having knowledgeable

within the next two years and you have a recipe for transformation. We often hear the phrase, ‘you cannot

and digitally-empowered service tech-

account for human error’ but that seems

nicians to ensure the smooth running

illogical in today’s connected world. We

of assets will go a long way to making

have the technology to not just account

this happen. A digital twin of physical

for human error but to eradicate it. The

assets will help considerably here, and

internet of things with the proliferation

the research has revealed that around

of affordable and reliable sensors is

54% of companies are planning

changing the way in which we can view,

to invest in a digital twin by 2020.

manage, service and support technol-

Throw-in the fact that field service

ogy, processes and any physical object.

is expected to become a primary

By mirroring a process, product or

revenue driver for most businesses

service into a virtual world, we can

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“Digital transformations do not automatically improve control and visibility” — Mark Homer, VP Global Customer Transformation, ServiceMax

59

create environments in which machines

turbines. Easy access to this combination

can automatically analyse performance,

of deep knowledge and intelligence

warn of impending issues, identify

about your assets paves the road to

existing or potential errors and even

wider optimisation and business

suggest part upgrades or changes to

transformation.

procedures to make them more efficient.

Digital twin technology spans across

This is the digital twin idea. As a con-

all industries where the value is in assets

cept, it’s been around for a while (NASA

and more generally complex systems.

used it on early space missions) but the

Its ability to deliver early warnings,

emergence of IoT has made it a com-

predictions, and optimisation is fairly

mercial reality. Digital twin eliminates

universal. In time, I think we’ll see the

guesswork from determining the best

concept of a digital twin to be applied

course of action to service critical

to human beings as well, playing a sign-

physical assets, from engines to power

ificant role in healthcare. e uro pe .busi ne ssc hief. com


PEOPLE

“Digital twin technology spans across all industries where the value is in assets and more generally complex systems” — Mark Homer, VP Global Customer Transformation, ServiceMax

60

However, just mirroring is not enough. If the aim is to achieve zero downtime or at the very least, overall insight into on-going product and process performance, the digital twin has to be analysed and that analysis has to feed other functions. What the digital twin produces, when bundling data with intelligence, is a view of each asset’s history and its potential future performance. The digital twin can use historical data and current data to provide a complete picture of a particular asset, its past performance, what it should be J U LY 2 0 1 9


achieving now and its likely end of life date, when it would be predicted to be less efficient. This sort of knowledge is gold dust for product designers and manufacturers as it can feed back accurately, which parts work well and where machines would need improving or upgrading. Combined with the knowledge of field service professionals this makes for a powerful tool for upselling products and services to customers. Any new ideas or enhancements can be fully supported with data analysis and perhaps even simulations to illustrate how new parts and functions would improve performance. It offers justification and also accountability and should cut through irrelevant or unsuitable product or service ideas. It’s transforming service at the edge by bringing together all the facets that make businesses and machines tick - and goes a long way to creating a world of zero unplanned downtime.

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

62

Social impact: balancing profit and purpose Natasha Mudhar, Global CEO of Sterling Group and The World We Want, discusses why CSR should be a company-wide initiative rather than just ticking a box WRITTEN BY

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NATASHA MUDHAR


63

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

64

W

hile most corporates and

CSR is a means for companies to

businesses have imple-

bring benefit to themselves and employ-

mented a social impact

ees whilst also benefiting society. While

strategy, many are typically incongru-

businesses are becoming increasingly

ent with the company’s profitability

aware of the benefits of having such

and growth objectives, and are often

a strategy, they are still lacking in aware-

rendered obsolete. Effective social

ness as to how deep a social impact

impact strategies need to be ingrained

strategy needs to be embedded in

in the very fabric of a company’s

a company and why it needs to be

corporate DNA, and not just a tick in

embraced in this way.

the box. Companies are still failing to

A global study by the SEFORIS project

grasp how having an effective social

(the world’s largest study of social

impact strategy is key to long term

enterprises to date) has revealed how

growth and viability.

companies delivering inclusive growth

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65

by implementing a social impact strategy

purpose alongside each other. In order

are also seeing rapid growth in revenue.

for a company to truly thrive, it needs to

Effective social impact strategies are

be both profitable and purposeful

designed to improve a company’s overall

simultaneously. An organisation that is

mission, not just its brand identity. Not

both profit and purpose driven provides

to be confused with marketing or

mobility to its employees and resourc-

corporate philanthropy, social impact

es in a way that is incomparable. For

strategies provide a concrete plan that

a business to grow, purpose needs to

has quantifiable business outcomes

be embedded in its core. Companies

combined with a measurable and defin-

need to do well by doing good.

itive societal impact. It is no longer enough to be just profit

In order to address this, companies must fully understand how their employ-

driven. What makes companies stand

ees can be one of their biggest assets

out is their ability to place profit and

to expand their social impact footprint. e uro pe .busi ne ssc hief. com


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

66

“CSR is a means for companies to bring benefit to themselves and employees whilst also benefiting society” — Natasha Mudhar, CEO, Stirling Group and The World We Want

Exhibiting a strong social impact strategy not only enhances trust among the public and makes the company attractive to prospective employees but also results in a more engaged workforce, geared to generate not only revenue, but valuable channels for marketing and public relationships. The people of a business provide the most genuine representation of a company’s brand and value, organisations need to remember this when considering social impact.

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Employees are much more engaged

and are not measurable against an

and satisfied when given the opportu-

embedded, well-implemented social

nity to perform impactful work. This will

impact strategy, focusing on the day-

result in a stronger feeling of fulfilment

to-day contributions towards community

and purpose amongst employees and

engagement as opposed to the occa-

essentially enhance a positive impact

sional donation or charitable event.

in the workplace. Studies have shown

Scaling up social impact needs to be

how corporate social responsibility has

a multi-sector process. Effective cross-

been highlighted as one of the key most

sector collaboration will enable new

important drivers of employee engage-

techniques and approaches to be

ment, and engaged employees are

deployed to achieve better social

effective workers and drive results.

outcomes. The combination of public,

Weak outreach efforts to the community should no longer be acceptable

private and social sector collaboration can address complex social challenges

E XE CU T I VE PRO FI LE

Natasha Mudhar Natasha Mudhar is an international communicator and director working on some of the most socially relevant global campaigns. She is also Global CEO of Sterling Media, the multi-disciplinary, international business consultancy with a robust communications backbone, established in 1995. Representing SMEs, FTSE 100 companies including billion-dollar hedge funds, as well as disruptors, innovators and high-profile celebrities, Mudhar’s insight and global understanding in the realm of business, brand development, market growth and entry strategies has assisted major players in aligning their vision with their business strategies.

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

“Weak outreach efforts to the community should no longer be acceptable” — Natasha Mudhar, CEO, Stirling Group and The World We Want

68

by pulling resources from various players to ensure the improvement of effectiveness and efficiency of the services companies can offer to the public through joint efforts. Too often public, private and social sectors are segregated and siloed, with their resources fragmented, they need to work together towards common goals and enable mutually desired social outcomes. Who does the responsibility lie with? It is up to the company’s leadership to ensure that social impact is at the top J U LY 2 0 1 9


of the business agenda. They must ensure that an effective strategy is embedded into the company’s day-today workings, prioritising long-term value in a way that mutually benefits both employees and society at large. CEOs must outline clear objectives and purpose of the company beyond financial touchpoints, defining their values. It is important that these guiding values permeate every decision-making process, from environmental footprint to social impact to investment decisions. Businesses must consider social impact as a company wide initiative and not just a tick in the box. Otherwise, they risk losing the trust of the public which can be extremely damaging in the long term. In this age of heightened transparency and increased accountability, companies cannot afford to leave this issue unaddressed. The consequences in doing so can be profound.

e uro pe .busi ne ssc hief. com

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CITY FOCUS

70

Amste City Focus

As Amsterdam competes for London’s title as tech capital, Business Chief shares the biggest 2019 conferences that make the city a thriving technological hub WRITTEN BY

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AMBER DONOVAN-STEVENS


erdam e uro pe .busi ne ssc hief. com

71


CITY FOCUS | AMSTERDAM

F

or many, when Amsterdam is mentioned, one thinks of its 13th-century architecture overlooking the canals, its

culturally diverse museums, and controversial nightlife. Yet not only does the Netherlands’ capital have a rich cultural heritage, but it is

also a thriving technology hotspot. With a population of 821,752, and the majority of Amsterdam’s inhabitants speaking English, it makes the city an ideal location for businesses to set up offices. Amsterdam was named best European Tech City by Hubspot, 72

with its expansion providing excellent job prospects for the market. Cristina Carstea, trading developer at Optiver, said of Amsterdam: “The variety of work you can find here is just massive compared to other places.” Amsterdam is also home to the largest data-transport hub in the world: Amsterdam Internet Exchange. As Amsterdam becomes a melting pot for developers, startups and established businesses to meet, Business Chief shares four of the largest tech events to take place in Amsterdam this year:

MONEY20/20 (3-5 JUNE 2019) Money20/20 is the fintech conference that is “getting bigger and bigger” every year, J U LY 2 0 1 8


73

“If the city continues to drive its technological innovation, it has the potential to become one of the top tech capitals of the world� Cristina Carstea, Trading developer, Optiver

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CITY FOCUS | AMSTERDAM

‘Not only does the Netherlands’ capital have a rich cultural heritage, but it is a technology hotspot, hosting a number of conferences across several industries’

according to the CEO of Starling Bank, Anne Boden. It was the largest fintech agenda in Europe, with over 6,000 who gathered in the RAI, Amsterdam. Consisting of over 70 hours of content, 350 speakers focused on 12 themes based around industry advancement. Topics crossed all major sectors, such as banking, retail, regulation and blockchain, AI and quantum computing. Major speakers included Patrick Collison, the CEO & Co-Founder Stripe; Lindsey Argalas, Chief Digital & Innovation Officer of Banco Santander;

74

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CLICK TO WATCH : ‘NETHERLANDS STARTUPS: AMSTERDAM SET TO BECOME NEW TECHNOLOGY HUB’

Akshay Naheta, the Managing Partner

redbrick Beurs van Berlage to converge

of SoftBank Investment Advisers;

for the GOTO conference. GOTO is

and Patrick Gauthier, Vice President

the enterprise software development

of Amazon Pay.

conference designed for “For develop-

Though Money20/20 Amsterdam is over, Money20/20 USA will be held at

ers by developers.” The conference focused on

The Venetian in Las Vegas on October

quantum computing, development

27-30, 2019 and October 25-28, 2020.

opportunities, The IoT, blockchain, machine learning, micro-services,

GOTO AMSTERDAM 2019 (17-19 JUNE 2019) On 17–19 June software developers

languages and backend testing. Featured topics included: security & ethical hacking, serverless, micros-

gathered from all over the world in

ervices, programming devops,

the centre of Amsterdam in the iconic

machine learning, quantum computing, e uro pe .busi ne ssc hief. com

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CITY FOCUS | AMSTERDAM

76

APIs, ‘the human factor’ and testing. Some of the speakers included Graeme Rocher, Creator of Grails and

IOT TECH EXPO EUROPE (19-20 JUNE 2019) IoT Tech Expo Europe is in its fourth

Micronaut; businessman, Pilot and

year, and considered to be Europe’s

lead singer of Iron Maiden Bruce Dick-

leading conference on Internet of

inson; and Nell Watson, the founder of

Things. Also, to be hosted by the RAI,

QuantaCorp. Day-long masterclasses

there were over 10,000 in attendance,

will also be on offer, hosted by some

including CTOs, Heads of Innovation

of the major speakers on 17 June.

and Technology, IT Directors,

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77

developers & startups, OEMs,

covered included IoT connectivity

government, automotive, operators,

solutions, industry 4.0 & 5.0, facilities

technology providers, investors and

management and buildings automa-

VCs among others.

tion, smart metre & smart grids,

Over the course of two days the

building the connected supply chain,

expo focused on the effect IoT has

process automation, connected fleet,

on Manufacturing, Transport, Supply

smart city infrastructure, asset moni-

Chain, Insurance, Logistics, Govern-

toring and management, cloud, IoT

ment, Energy and Automotive. Topics

data management. e uro pe .busi ne ssc hief. com


CITY FOCUS | AMSTERDAM

78

“The variety of work you can find here is just massive compared to other places” Cristina Carstea, Trading developer, Optiver

IoT boasted an impressive collection of 2019 speakers, such as: Johan Krebbers, IT CTO & VP TaCIT Architecture of Shell; Ankur Bhan, Global Head of Nokia WING of Nokia; Benjamin Vernooij, Business Development Manager IoT Infrastructure Solutions of Dell; and Simon Bradley, Global Head of Cyber Detection Services of Siemens, among many more. J U LY 2 0 1 8


Helena Morrissey at the Women in Tech World Series

at Facebook; Caroline Pickard Catalyst Europe Consultant in the Nordic Region; Annemieke Frank, the Co-founder of EduHeroes; and Sonna Barry, the Business Development Director, Services EMEA at the Westcon Group Germany GmbH. 2019’s technology focus will be on The Future of Tech, focusing on topics from robotics, RPA, Machine Learning, Deep Learning, Computer Vision, and A.I. Topics to prepare business women for the future will discuss the evolution of the Cloud, Blockchain outside of the financial services, and automation. With the knowledge and support

EUROPEAN WOMEN IN TECHNOLOGY 2019 (26-27 SEPTEMBER 2019)

available across these conferences,

The Women in Technology conference

a popular location for startups. There

takes place this November and will be

are also online services like TQ, that

hosted by the RAI Amsterdam. Tickets

provide assistance to international res-

have sold out for the past three con-

idents looking to move and work in the

secutive years, and the conference

city. Over 578 international ICT compa-

expects 4,000 attendees over the

nies have offices in Amsterdam, with

course of two days. Major companies

170 of them choosing to allocate head-

featured include Facebook, Adobe,

quarters there. If the city continues to

Catalyst, Eduheroes and Vistaprint.

drive its technological innovation, it has

There will be over 200 speakers,

the potential to become one of the top

with keynote speakers: Stephanie

it is unsurprising that Amsterdam is

tech capitals of the world.

Szeto, Technical Program Manager e uro pe .busi ne ssc hief. com

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T O P 10

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TOP 10 biggest

manufacturing companies in Europe Business Chief counts down the top 10 biggest manufacturing companies in Europe. Several notable businesses throughout Europe have experienced rapid growth and healthy returns despite socioeconomic tensions. You’ll want to watch for these 10 companies that are demonstrating soaring revenues and innovative practices EDITED BY

SEAN GALEA-PACE

e uro pe .busi ne ssc hief. com

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T O P 10

82

10

Hiperion Hotel Group SL $75.4mn

Hiperion Hotel Group is a Madrid-based hotelier specializing in apartments, hotels, and tours in the Ibiza region with a steady customer base in the UK. Hiperion Hotel Group, better known as Grupo Playa Sol, was founded in 2011, and the brand has experienced a staggering growth rate exceeding 17,000% in recent years with the massive success of their “adults only� tours.

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83

09

GA Smart Building $100.7mn

With over 140 years in the French construction industry, the Toulousebased outfit has enjoyed a healthy cash flow and rapid growth. GA Smart Building focuses on off-site construction and strives to meet customers’ needs with environmentally-friendly building and property development solutions. The unique mass production model has led the company to experience almost 13,000% growth in the past three years.

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08

Aarstiderne A/S $102.1mn

Anglo-Dutch consumer goods company is number eight, with a market value of $155.8bn. Formed from the amalgamation of a soap manufacturer, Britain’s Lever Brothers, and a Dutch margarine maker, Margarine Unie, in 1929, some sources say it is the world’s oldest multinational. Fittingly, it still maintains headquarters in both Rotterdam and London. With over 400 brands, Unilever says that “on any day, 2.5bn people use Unilever products”. It is no surprise, then, that the company’s 2018 revenue came in at $57.29bn. As of 2019, it employs 155,000 people.

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07

UAB Topo Grupe $108mn

Lithuania’s largest consumer electronics and appliance retail chain has just 37 stores in 25 cities but the Kaunas-based conglomerate UAB Topo Grupe has experienced almost 6,000% growth in recent years. This is primarily due to the company’s membership in Euronics International, which is one of the world’s largest trading alliances. UAB Topo Grupe has also won awards and seen such major growth on account of their innovative product design and providing an exceptional level of service in areas where the competition has fallen behind.

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06

Ba&Sh S.A.S. $108.6mn

A portmanteau of “Barbara and Sharon”, Ba&Sh is a Paris-based women’s apparel manufacturer with stores in Asia, Oceania, select cities in the Unites States, Europe, and North Africa. Ba&Sh stores are primarily located in western and central Europe but the brand also offers its products online. The brand’s simple and feminine designs appeal to upmarket customers and have remained steadfast since its founding in 2003. Smart supply chain management has made the brand transition well to online sales while allowing Ba&Sh to maintain a significant number of brick-and-mortar shops.

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05

Balta Group $110mn

Balta Group is one of Europe’s leading textile producers specialising in area rugs and carpeting for commercial and residential customers with origins as flax merchants in the 1950s. With almost 3,900 employees and a notable portfolio of carpeting and carpet tile brands, Balta Group exports its products to 139 countries worldwide with its core markets in Germany, France, United Kingdom, and the United States as well as central and Eastern Europe.

J U LY 2 0 1 9


Driving insurers

digital future into a

At Cognizant, we’ve invested in the end-to-end capabilities needed to help insurance organizations not just do digital, but be digital. We partner with our clients to unlock new value and through the power of digital technologies and new ways of working, we help them evolve into more competitive, progressive versions of themselves. Learn more at Cognizant.com

Copyright Š 2019 Cognizant


T O P 10

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04

iZettle AB $110.4mn

Swedish startup iZettle was founded in 2010 to provide mobile payment solutions for individuals and businesses with apps and separate devices meant to be used with smartphones and tablets. iZettle is best known for its card reader apps and devices that can read chip and PIN cards that later expanded to mobile-friendly cash registers and other tools to help entrepreneurs get paid. With a wide array of users throughout Europe and the Americas, iZettle became a subsidiary of PayPal in 2018.

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03

Frais Embal SASU $112mn

Frais Embal is a Boulogne-based fish processing company founded in 1992 that processes and supplies boneless fish and related fish products to wholesale customers throughout France. Frais Embal specialises in packaged fresh and frozen fish primarily serving large distributors and caterers, and the company has achieved consistent growth by attaining a key position in the international fish market, and proprietary technologies that prioritise environmental sustainability without compromising product quality.

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Almacantar Limited $146.6mn

Almacantar Ltd. is a property investment and development firm focusing on large-scale residential and commercial properties in Central London. The company’s holdings

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include some of the most desirable property in the world, and Almacantar is exploring mixed-use housing and retail property development like the much-discussed Lyons Place project. The company operates as a subsidiary of Spain-based Almacantar SA and owns over 1.5mn sq. ft of prime London real estate.

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Labirint-Volga $195.5mn

Headquartered in Nizhni Novgorod, the Russian Federation based beverage wholesaler has seen over 3,600% growth in just three years. Best known for their “Krasnoe & Beloe” or “The Red and White” brand, Labirint-Volga owns a large

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chain of self-service shops selling a variety of consumer products but specializing in pre-packaged alcoholic beverages. With more than 12,000 employees and 18 regional offices, Labirint-Volga is one of the largest employers in Russia operating over 4,700 stores and multiple distribution centers. Labirint-Volga stores also vend several hundred grocery items as well as 60-70 brands of cigarettes, and while the company doesn’t offer online payment and delivery, individual and corporate customers can reserve items online and pick them up in their nearest Red and White store.

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TECHNOLOGY TRANSFORMATION TO IMPROVE THE CUSTOMER EXPERIENCE WRITTEN BY

SOPHIE CHAPMAN PRODUCED BY

KRISTOFER PALMER

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PIZZA HUT

PIZZA HUT IS UNDERGOING A DIGITAL TRANSFORMATION JOURNEY TO BETTER UNDERSTAND CUSTOMER RETENTION AND ENGAGEMENT. CHIEF CUSTOMER OFFICER FOR APAC, TROY BARNES, TELLS US MORE

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P

izza Hut wants to create a world with more ‘yum’. As part of the Yum! Brands corporation, a Fortune 500 company based in

Kentucky, the company prioritises its customers’ experience. Troy Barnes, Chief Customer Officer for the Asia Pacific (APAC) region at Pizza Hut, believes that with a focus on the consumer journey, the business will see positive results. Barnes’ role is made up of three key pillars: restaurant excellence, digital experience and restaurant technology. “Restaurant excellence focuses on what happens in store – products, delivering pizzas and food safety standards and service culture. Digital experience is about understanding how customers want to interact with the brand and delivering on that, largely through online purchasing, whether that be the website, app, social media or messaging” he explains. “Restaurant technology looks at the underlying technologies that support the employees J U LY 2 0 1 9


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PIZZA HUT

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“Collectively, we have brought that customer mindset to the core of our strategy” — Troy Barnes, Chief Customer Officer for APAC, Pizza Hut

of our franchises. Things like point-ofsale platforms, inventory supply chain, labour management, and supply and demand modelling.” Underlining all three pillars is customer engagement, in which Pizza Hut looks to understand and assess how each aspect works collectively under the customer experience umbrella with the strategic focus of having more customers more often to Pizza Hut. Since his position was established as the first customer role in the APAC region last year, Barnes and his team

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CLICK TO WATCH : ‘OUR PIZZA HUT STORY’

have worked to bring the consumer to

is about an end-to-end experience that

the forefront of the business. “Collec-

will offer an overall, seamless benefit

tively, we have brought that customer

to the customers – the company is

mindset to the core of our strategy

building the know to better understand

– including our engagements, part-

and create more value to the consum-

nerships, workshops and franchise

ers’ journey. “Leveraging digital is really

growth. We have reworked the busi-

about what journey a customer is cur-

ness with a more focused lens around

rently going through, what journey you

the customer itself, well supported by

want to create, and more importantly,

our other regional and global counter-

what journey a customer is looking for,”

parts. Our job is really then to augment

he says. When evaluating the entire

that focus with building capabilities,”

process, the firm will then divide it into

comments Barnes.

key priorities, such as the fast-casual

For Pizza Hut, digital transformation

digital store. “It’s really a concept that e uro pe .busi ne ssc hief. com

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PIZZA HUT

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creates a common experience on the back end of understood and defined journeys. It enables our customers to order pizza for themselves and their families in a very frictionless, seamless and easy way,� Barnes explains. On a strategic level, Pizza Hut is aiming to establish a consistent perception of its franchises across all markets, with finetuning to specific local needs, usually within the menu. The company is focused on making the brand relevant to all customer segments locally – ensuring ease, quality and excitement no matter the location.

E XE CU T I VE PRO FI LE

Troy Barnes Troy is a transformational leader driving entrepreneurial and cultural change with a focus on delivering value for customers. Extensive experience in process improvement, operations, IT, program and project management, training, coaching, mentoring and consulting leaders in a diverse cultural environment. Particularly interested in challenging situations needing transformation with a focus on customer experience and business growth. Specialties: Transformation, Customer Experience, Innovation, Process, Change Management, Lean Six Sigma, Portfolio, Program and Project Management, Coaching, Mentoring and Training.

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The kitchen revolution

As operators add more digital channels to their restaurants, it creates new complexity and challenges. Restaurants have been used to controlling the transaction flow. Now, with the rise of delivery marketplaces, mobile applications and in-store selfservice, restaurants need to compete at a higher level and adapt to a digital-first ordering environment. This means ensuring proper routing of orders into the kitchen, a focus on food quality and distribution at the right time and data/analytics to measure and improve the performance of the kitchen. Key trends impacting kitchen optimisation and production, include: • The rise of off-premise ordering & delivery To meet this growing consumer demand, restaurants need robust kitchen production systems to accommodate the flow of orders into the restaurant from multiple channels. • Speed of service Consumers no longer have any patience for waiting in lines or waiting for food. They essentially want to “speak” directly to the kitchen. • Growing dependency on kitchen data Real-Time production metrics are fast becoming a requirement. Operators need to be able to gauge order volume, production status, progress order times and manage staffing levels within their kitchen in real-time.

© 2019 NCR Corporation Patents Pending

Successful brands we work with are investing in kitchen optimisation and production technology to stay ahead of the curve. NCR Kitchen Operations solutions enable restaurants to plan and prepare for anticipated spikes in order volumes and manage the production of orders coming from all channels to improve the customer and staff experience. Brands that are leveraging NCR Kitchen Operations and Digital Signage are also improving the customer experience by providing guests with accurate quote times and order status notifications via text paging and in-app notifications. Large quick-service chains using our technology have increased their speed of service by as much as 15% with improved visibility into order volume, production status, order times and staffing levels. Over 30,000 restaurants around the world use NCR Kitchen Operations to manage their kitchen production. While not visible to consumers, kitchen optimisation and production technology reduce errors, reduce waste and have a tangible impact on the customer experience.

Find out more. Visit www.ncr.com/restaurants and see how our technology can help your business thrive.


“Leveraging digital is really about what journey a customer is currently going through, what journey you want to create, and more importantly, what journey a customer is looking for” — Troy Barnes, Chief Customer Officer for APAC, Pizza Hut 105 Pizza Hut has always prioritised

digital stores have definitely provided

listening to its customer feedback and

a lot of uplifting customer feedback

ensuring that any changes it makes to

which we track globally on an order-

its operations will be beneficial for the

by-order basis. The response of overall

consumer. “Technology is really break-

satisfaction and ease with which our

ing new ground by making life easier

consumers can order pizza through

– with apps or websites, social media

this new platform has increased dra-

and messaging platforms, a lot of

matically. This positive feedback has

brands and organisations are trying to

translated into sales and revenue at the

compete in the space of making it easy

end of the day.”

for customers to engage with them, al-

Barnes highlights the importance of

lowing the business to satisfy the con-

customer retention within the compa-

sumers’ needs,” Barnes notes. “The ex-

ny’s operations: “We want to under-

periences and journeys that have been

stand the behaviour of the consumer in

created as part of these fast-casual

regards to preference when ordering e uroa pe nz .busi ne ssc h hief. ief. com


PIZZA HUT

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“I think the exciting part is that I don’t have the answer to what that will actually look like, and that’s the thrilling part of a five-year plan” — Troy Barnes, Chief Customer Officer for APAC, Pizza Hut

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a pizza, regardless of the brand. An understanding of that behaviour would give us insight into a mindset.” The company has been working on a datadriven project that revolves around the behaviour of customers. Once the data was collected, the company then established a “very purposeful and personalised” capability. “We’re moving away from segmentation and broad-based or broadcast marketing that leans towards certain offers and discounts. Instead we’re opting towards engaging with consumers on more of an emotional and personal level to create a more meaningful relationship,” Barnes adds. J U LY 2 0 1 9


As the company continues on its digital transformation journey, Barnes see Pizza Hut’s growth through two key aspects: “I think Pizza Hut will continue to evolve its presence in how it delivers an experience for consumers that becomes world class. I also think the firm will continue to leverage the core of its business, and the brand that underpins that, augmented by its internal culture to really drive a new way of creating those experiences.” Despite the clear goals set by the company, its digital transformation journey is not set in stone. “I think the exciting part is that I don’t have the answer to what that will actually look like, and that’s the thrilling part of a five-year plan.”

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Ensuring growth through digital transformation at Taco Bar WRITTEN BY

WILLIAM SMITH PRODUCED BY

MANUEL NAVARRO

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TA C O B A R

Lars Callebro, CEO of Taco Bar, details the ways in which his company’s restaurants are capturing the digital market

D

uring my 20 years in the restaurant business there has never been such rapid change in customers’ habits and demands

as there is right now, which is both interesting and fun to be a part of,” says Lars Callebro, owner and CEO of Sweden’s Taco Bar. Despite this challenging environment, Callebro’s company, which offers Tex 112

Mex cuisine, is growing at a healthy rate. Six new restaurants have opened in the past year, adding to its existing stable of over 40 locations across Sweden. Such growth is actually two-fold, encompassing both the aforementioned physical locations but also the ever-expanding digital market.

PHYSICAL One of the factors enabling Taco Bar’s continuing growth is its implementation of the franchise model. “Franchisees have a five-year deal with us,” explains Callebro. “They pay royalties and marketing fees which gives them access to our menu, our concept and our supply chain.” The system rests on the mutual benefit of franchisor, franchisee and suppliers, and Callebro is clear that growth can never be achieved at the expense of existing franchisees: “Taco Bar’s J U LY 2 0 1 9


kr240mn Approximate revenue (SEK)

1983

Year founded

300+

Approximate number of employees

goals for the future are continued growth, opening Taco Bar restaurants in new markets and, most importantly, taking care of the franchisees that we already have within the system. If we do that, we’ll continue to grow.” Taco Bar also credits its culture as vital to its success. “The guest experience is relaxed, casual and informal,” says Callebro. “Taco Bar is a place where everyone is welcome, a place where you and your friends, family or business partners can have an affordable meal and a drink without e uro pe .busi ne ssc hief. com

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TA C O B A R

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“If a customer would like to sit in their office or in a park, order food and have it brought to them, the app will be there” — Lars Callebro, CEO and Owner, Taco Bar

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CLICK TO WATCH : ‘TACO BAR – OM OSS’ 115

needing to book in advance. You can

and their operational procedures,

pop in for 15 minutes or you can be

but it’s also about ensuring everyone in

there for an hour and a half if you would

the Taco Bar family understands what

like.” It might at first seem that a

Taco Bar is about. When it comes to our

consistent culture is at odds with a

restaurants, it’s very much about time

franchise model, but Taco Bar puts

spent on the floor, shoulder to shoulder

the effort in to ensure a welcoming

with our franchisees and partners.”

atmosphere is a constant across

Such attention to detail extends to

its locations. “Spreading the culture

the company’s supply chain, which

is very important and we put a lot

Callebro says is crucial to the company’s

of money and hours into that part of

authentic DNA. “We source our corn

the organisation. We have a strong

nacho chips from a plant in Pennsylvania.

operations department in order to be

They’re made from stone ground fresh

able to fully support our franchisees

corn especially for us. Our tortillas are e uro pe .busi ne ssc hief. com


TA C O B A R

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bought from a bakery in Atlanta,

ingredients, it also plays into the

Georgia, and our guacamole is made

company’s focus on sustainability.

for us in Uruapan, Mexico. Our pulled

Taco Bar operates on a low waste

beef is made in a special factory here

model, serving its food on china and

in Stockholm, with carefully sourced

drinks in glasses, moving away from

meat from Uruguayan cows that are

plastic to paper, and carefully sorting

grain fed for 120 days. It’s put into an

any waste that is created. Recently,

oven for 22 hours, and barbecued

the company has seen success with

over hickory wood on a BBQ cooker

vegetarian offerings: “We have over

specially bought from the US – that’s

250 different dishes that you can have

what makes Taco Bar’s food special.”

as a vegetarian, and our vegan shake

Not only does this responsible

has been a tremendous success

sourcing ensure the quality of its

on social media.”

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E XE CU T I VE PRO FI LE

Lars Callebro, CEO In 2009, Lars Callebro led a management buyout of the company from Nordic Service Partners, bringing three colleagues with him to become partners in the company. After the buyout, Taco Bar was re-imagined with a new design, logo, and menu that included alcoholic drinks. Lars was formerly Director of Business Development at Nordic Service Partners, and before that worked in different management positions at Svenska McDonald’s. He began his career in the Swedish army, serving as an officer for 14 years.

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TA C O B A R

“Taco Bar’s goals for the future are continued growth, opening Taco Bar restaurants in new markets and, most importantly, taking care of the franchisees that we already have” — Lars Callebro, CEO and Owner, Taco Bar

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While we measure our negative impact on the environment in terms of a carbon ‘foot’ print, we see ‘hand’ prints as being all the positive things we do to help the environment. To us, hand prints are things like good animal welfare, well considered crop rotations, biogas and solar panels. Right now we are working hard to become Carbon Net Zero. Us Arla farmers will work together with our customers to achieve this. We want our customers, just like Taco Bar Sweden, to feel secure that they have made a sustainable choice by choosing dairy products from Arla.


CLICK TO WATCH : ‘FOR THE LOVE OF VEGO’ 121

“Convenience is very important for the future guests of Taco Bar, so we’ll continue to invest in digital consumerisation” — Lars Callebro, CEO and Owner, Taco Bar

DIGITAL “The biggest challenge right now is the digital transformation happening in the retail sector,” says Callebro. “It’s not the case that today there are 100 people on the street and tomorrow there’ll be 50 people – but it is going from 100 to a figure like 90. We needed to grab a piece of that digital market, and we have done that very successfully.” Part of the company’s continuing efforts in this sector has been the development of an app, in partnership with suppliers and others, that allows Taco Bar customers to order and pay inside the e uroa pe nz .busi ne ssc h hief. ief. com


TA C O B A R

“The biggest challenge right now is the digital transformation happening in the retail sector” — Lars Callebro, CEO and Owner, Taco Bar

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restaurant or in advance of their arrival. Callebro sees such conveniences as crucial to the company’s continued success. “If a customer would like to sit in their office or in a park, order food and have it brought to them, the app will be there for them, or they can use it to beat the line and take it away themselves. Convenience is very important for the future guests of Taco Bar, so we’ll continue to invest in digital consumerisation.” Taco Bar leverages its partnerships with a number of innovative technology companies to improve the experience of its customers. Teaming up with delivery companies like UberEats, Hungrig, J U LY 2 0 1 9


Delivery Heros and others is another way Taco Bar offers its customers the convenience they desire. “This is a strategically important area for us to grow within the digital space,” says Callebro, also detailing Taco Bar’s partnership with Leeroy on a datadriven, unified point of sale system. “Leeroy is our point of sale partner and we are evaluating them and others regarding our app that we hope to launch within six to 12 months.” It is through the twin considerations of physical and digital that Taco Bar has succeeded in growing throughout Sweden. Its ongoing digital transformation has set the company up to capture the digital market without neglecting its physical locations. Such has been its success within the country that the future holds expansion outside of its borders. “We are constantly evaluating new markets,” says Callebro. “It’s in our long-term business plan to establish Taco Bar outside of the country, so we will continue to search for good partners to expand.”

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IMPROVING AGRICULTURAL VALUE-CHAINS IN AFRICA AND BEYOND WRITTEN BY

DAN BRIGHTMORE PRODUCED BY

RICHARD DEANE

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I M PA C TA G R I ( H O L D I N G S ) LT D

ImpactAgri is on a mission to bring together major companies, investors and stakeholders to create economically viable, socially inclusive, environmentally sustainable agribusinesses across Africa

M

ining companies are some of the biggest landowners and economic contributors in Africa. As such, they have a unique opportu-

nity, and responsibility, to develop economic diversifi126

cation strategies based on the sustainable use of land and water resources. Agriculture should be a core component of this strategy, where the needs of mining and agriculture in rural areas overlap in many ways and at all stages in the life of a mine. ImpactAgri is working with the mining industry in Africa, and increasingly elsewhere, to help mining companies contribute to and benefit from the economic, social and environmental impacts of sustainable agriculture. ImpactAgri’s work plays a key role in the development of responsible mining strategies for many companies. ImpactAgri Founder & CEO, Jon White, had 20 years of experience working in agriculture when he recognised the need to find a new way to improve logistics, access-to-market and financing for emerging agribusinesses in Africa. He believes agriculture J U LY 2 0 1 9


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I M PA C TA G R I ( H O L D I N G S ) LT D

“If you can create high-value agri-processing that’s inclusive and maintains employment levels then those jobs can last forever” — Jon White, Founder & CEO, ImpactAgri

can be the catalyst to deliver socioeconomic development while caring for nature. “The best way to create real jobs in Africa and reduce the impact on the environment is through well-designed farming systems done in a socially conscious way,” says White, who notes the challenge in breaking the cycle of ‘slash-and-burn’. “Much of the deforestation occurring is due to slash-and-burn, where soils become poor after a few years of use, so they move to the next hectare, burn it down, plant, stay there a year, then move to the next hectare…”

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129 Sustainable and economically viable

farming towards revenue-generating

approaches to farming can create long-

enterprises and greater employment.

term agri-employment and environmen-

Governments across Africa are

tal benefits, explains White. “A mine

increasingly wanting to issue licences

can be a great employer for 20 years or

to mining companies capable of

more but when it closes there’s nothing,”

supporting the population around the

he warns. “If you can create high-value

mine. “It’s OK replanting trees when

agri-processing that’s inclusive and

you leave a mine site, but what happens

maintains employment levels then those

to the many people employed there

jobs can last forever.” It’s the creation

when it closes?” questions White, who

of a genuine long-term footprint that

argues that new mines, often in enviro-

drives White and his team; the opportu-

nmentally sensitive areas, need attractive

nity to help mining companies co-cre-

alternative employment opportunities

ate sustainable self-standing agribusi-

to deal with the inevitable migration of

nesses, driving a shift from subsistence

workers. “You can actually create a hub e uro pe .busi ne ssc hief. com


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of agriculture away from the mine to

community. He advises that address-

stop that drift, and people will go there

ing key questions can help companies

rather than to the mine gate,” he

benefit from the agriculture sector.

reasons. “In sensitive areas, like Guinea

“Can agriculture provide sustainable

and Cameroon, to have a strategy that

jobs alongside this industrial activity?

creates a hub away from the mine,

Can it contribute to the social license

but coherent with its situation and, to

to operate by building community

a degree, supported by the mine, is

relations? Can it provide solutions for

a positive thing to do for all concerned.”

post-mine planning that deliver more

ImpactAgri’s other Founder and

than trees and dry grassland with

Director, David Hampton, is keen to

poor biodiversity? How can agricul-

see agriculture projects working

tural technologies help rehabilitate

alongside mining and other industries,

land, stabilise tailing ponds and help

both taking advantage of and

remove heavy metals? All the way

spurring on the development of key

through the value chain, there is

infrastructure vital for the life of an

a crossover between agriculture and

industrial project and its local

the different stages mines and other

E XE CU T I VE PRO FI LE

David Hampton David Hampton is a highly experienced strategy consultant, company director and entrepreneur. He has over 30 years of international experience and expertise in strategy consulting primarily providing advice to major global corporations in the energy, mining and agri-business industries on the strategic impact of sustainability and clean technology developments on their business.

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“You can’t simply buy into a project in Africa sitting in an office – you have to go out there and make it happen” — David Hampton, Founder & Director, ImpactAgri

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S E I G O O L N H C TE

W E N WITH

AFTER

AFTER

AFTER

E BEFOR

E BEFOR

E BEFOR


“We believe you can take your CSR budget, and make it into a cash generator. Not a cost.That’s the advantage of working with ImpactAgri” — Jon White, Founder & CEO, ImpactAgri

industrial businesses pass through when utilising the land. The opportunities are there.” In Guinea, ImpactAgri is working with Anglo African Minerals to support development of their corridor and bauxite mine. White hopes the proposal will limit migration and create thousands of agriculture jobs. Working with Vedanta in Zambia, ImpactAgri is developing a large-scale horticultural operation utilising the water that is already being 135

E XE CU T I VE PRO FI LE

Jon White Jon White is an experienced CEO managing companies and operations in Africa, Europe and the USA. For the last 15 years he has focused on agricultural and landscape solutions to increase yields, save labour, and reduce energy and water consumption whilst reducing runoff and pollution. White’s drive and initiative combined with his vast experience, network and energy in the field helps ensure ImpactAgri’s projects succeed. White’s corporate background includes senior management roles, in world class manufacturing operations at Pirelli in the production of Fibre Optic & Power Cables, and as VP EMEA of Netafim, the world’s leading precision irrigation company. He started his career in the mining industry with British Coal. White has an Honours Degree from the University of Leeds in Mechanical Engineering.

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I M PA C TA G R I ( H O L D I N G S ) LT D

extracted from the mine. The goal is for the agribusiness to employ more people than the mine itself within a few years and create a significant source of fruit and vegetables for the region. Longer term development will create high-value tree crops such as nuts and citrus for export. Elsewhere, ImpactAgri is working with other companies to identify the potential for agricultural solutions to remediate land and add value to legacy assets. White explains that sustainable 136

intensification on ex-mining sites can also be hugely positive: “In Zambia, ImpactAgri is working with local partners to plant specific tree types on used and spent copper tailings. It looks like the moon, but by replanting the right type of crops, you can create biofuels. In turn, those biofuels can be a shared crop for our food crops.” He stresses that it’s important to value the natural capital with efficient use of water, understand the value of soil health and manage the impact on natural ecosystems. Once these agribusinesses are given the opportunity to flourish, it’s vital to secure access-to-market by building the value chain, asserts White. J U LY 2 0 1 9


“Sadly, there are many examples in Africa – whether a cassava plant for flour or a tomato factory – where the whole value chain hasn’t been addressed. Whether it’s the upstream, where they are going to sell, or the logistics to move the products, an integrated and holistic view of the requirements at each stage of the value chain are essential.” New technologies and innovative approaches are key. White is excited about a couple of projects in development that will mix solar PV with agribusiness. “Mines need power, lots of power… If you can install a 50 MW solar panel installation with hydroponics you can farm underneath the panels. It’s a useful approach when land is not suitable for traditional agriculture and we can actually take some of that energy and use it for processing crops like cocoa and vegetables; for washing them and for cooling. Having that energy source on site can be a wonderful thing.” Mining companies can spend millions of dollars on CSR schemes but too often it’s wasted stresses White. “Building hospitals and schools is a great thing to e uro pe .busi ne ssc hief. com

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C O M PA N Y I N F O

Making a difference with impactful partnerships “Our network enables us to bring in big players to make big things happen,” says ImpactAgri’s founder and CEO Jon White. “For example, AFGRI in South Africa is one of our key partners providing agriculture services across the region: grain management and storage; equipment and financial services to support full-scale commercial farming. You need alliances

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with organisations capable of operational excellence in each country who understand its complexities to be able to deliver results.” ImpactAgri is also working with companies like Rubicon Integrated Services, who offer their expertise in community infrastructure improvement, water technologies, disease vector eradication and road building.


do… But if there isn’t a network in the community and a tax system to pay for teachers and doctors, every year they have to keep financing the project. This ends up being a cash drain while they’re being vilified for not creating other jobs.” He argues that projects need to offer real jobs that generate tax to be self-sustaining. “We believe you can take your CSR budget, and make it into a cash generator. Not a cost,” he pledges. “That’s the advantage of working with ImpactAgri.” Within each country it operates, ImpactAgri identifies strong off-take partners for specific crops… For example, in Uganda, the company is allied with one of the biggest traders of macadamia nuts. “The ideal model is to start with a farm as a commercial entity that supports the business in terms of paying for equipment, off-take and processing,” says White. “But as we expand, we’d rather work with the farmers on their own land, under contract to actually deliver services to them such as irrigation systems, equipment and help with off-take. It’s very inclusive.” Hampton highlights the constant challenge to secure financing. “On e uro pe .busi ne ssc hief. com

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I M PA C TA G R I ( H O L D I N G S ) LT D

a US$40m project, the hardest funds

hard to find investors for individual

to raise are the first $1-2mn for the

greenfield sites. To secure returns he

environmental assessment and

recommends a minimum 10-year cycle

feasibility studies. No one wants to

as these are long-term projects where

pay for that. It’s too small for most

you need to plan for a year when yields

investors, and the bigger investors

are less than ideal, while Hampton

want that to be done before they

warns against the perception that

consider getting involved…” ImpactAgri

brownfield sites can offer a quicker

has developed a portfolio that diversi-

turnaround: “In Africa, it’s often better

fies the risks but White concedes it’s

to build something from scratch than

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try to turn around someone else’s

financiers and lawyers on ‘Wall Street’

problem project.”

but we also have people capable of

ImpactAgri’s minimum goal is to

going out in the field to tackle unique

generate half a billion dollars of

agricultural challenges alongside the

investment in agricultural projects by

communities we engage with. Ultimate-

2025. The current pipeline is already

ly, you can’t simply buy into a project in

over $300mn with more funding

Africa sitting in an office, you have to go

imminent. “We’ve found a unique

out there and make it happen.”

proposition,” says Hampton. “We have people in our team happy talking to

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TRANSFORMING SUPPLY CHAIN STRATEGIES AT GEODIS WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

JUSTIN BRAND

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GEODIS

Phillipe Mahler, Chief Procurement Officer of GEODIS, discusses how his company is utilising technology amidst a digital transformation

A

s businesses across the globe are impacted by digital transformation, companies in a diverse range of industries are tasked

with undergoing a technological change in order to accelerate processes. Phillipe Mahler, Chief Procurement Officer (CPO) of freight transportation and logistics firm GEODIS, understands the importance 144

of embracing technology in a bid to ease operations. Since first joining GEODIS in January 2010 as High-Tech Key Accounts Director, Mahler worked in a variety of different roles, such as Corporate Market Director and Transformation Director, before moving into his current position as CPO in early 2013. Split into five different lines of business, GEODIS’ operations include Freight Forwarding, Distribution and Express, Road Transport, Contract Logistics and Supply Chain Optimisation (SCO) which manages its customers’ supply chain by offering end-to-end solutions, enabled by the company’s processes, systems, infrastructure and personnel. Heading up the operations and procurement division, Mahler recognises the value of utilising his experience in supply chain to help him succeed in his current role. “My previous experience has allowed me to better J U LY 2 0 1 9


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GEODIS

“Our mission is to solve and assemble resources,capabilities and technologies, and to better design the supply chain on behalf of our customers” — Phillipe Mahler CPO, GEODIS

understand the key drivers of the supply chain. After you’ve dealt with several customers and experienced different situations, you can take the time to innovate and begin to understand where the key areas are. I manage these key points very carefully because they’re either the points which are going to create difficulties in operations or the points which you can leverage to create value,” he says. “Our mission is to solve and assemble resources, capabilities and technologies, and to better design the supply chain on behalf of our

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CLICK TO WATCH : ‘GEODIS – WE LOGISTIC YOUR GROWTH’ 147 customers. We buy services, resources

happen in the next six months to two

and technologies from the market and

years. Forecasting is taking the data

from our sister lines of business or from

from the past and then leveraging all

any other logistics service provider. We

the data announcing the trends and

assemble these solutions to create an

looking at how the world will change,”

end to end network for our customers.”

he explains. “I believe one of the biggest

With the procurement function trans-

challenges is transitioning from human

forming on an ongoing basis, Mahler

negotiation into a business which

reflects how GEODIS is changing the

scientifically predicts where you should

way it conducts its business to coincide

go. It’s a huge challenge; it’s the leverag-

with the latest industry trends. “On an

ing of Big Data.”

increasing basis, procurement is becoming more of a science that is

INTRODUCING TECHNOLOGY

based on data. It’s based on being

With technology enabling GEODIS to

capable of forecasting what’s going to

make its processes simpler, Mahler

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COMMERCIAL R E L O C AT I O N N E T W O R K CRN is a learning organization comprised of office and industrial relocation professionals in the United States. Expertise in the craft of commercial relocation, logistics and transportation is the focus of CRN’s members. Sharing best practices and collaborating on new solutions helps to advance our industry. The professional development of our members enables them to solve the needs of Fortune 500 firms, logistics providers, government and private institutions. Each member is backed by the resources of their local employer, which truly makes each member the ‘local-heroes’ of today’s most demanding supply-chain solutions.

LEARN MORE For more information: info@commercialrelocationnetwork.org 253 525 5174 Corporate Contact: Melissa Schwab, COO Office: 877 460 5880 e-mail: melissa@aminc.org


149

reflects on how the procurement

scenario which helps decide where

process has been transformed by

you want to go and how you want to

digitalisation. “In the past, procurement

execute the processes.”

was a question of understanding where

With innovation considered a key

the data was and then deciding at what

priority at GEODIS, Mahler understands

price it could be bought from the market.

the importance of ensuring technology

It’s always been a question of simula-

is adopted for a specific purpose that

tion and has all been done manually using

will benefit the company’s operations

Excel,” he says. “These days, we’re

– and is not merely implemented for its

able to capture much more data because

own sake. “When we want to utilise

it’s all in one place and technology has

new technology, the first thing I always

allowed us to use machines that help

do is to have a discussion with a group

us make decisions. Using the machine,

of key users of the current platform

you can do a ‘what if’ in a machine

and we conduct an evaluation. We have e uro pe .busi ne ssc hief. com


GEODIS

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“On an increasing basis, procurement is becoming more of a science that is based on data. It’s based on being capable of forecasting what’s going to happen in the next six months to two years” — Phillipe Mahler, CPO, GEODIS

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GEODIS

“When you adapt, you’re already a follower.We don’t want to be followers; we want to be the leaders” — Phillipe Mahler, CPO, GEODIS

152

to ask ourselves what we can do with

results, we’ll then make a decision whe-

this current machine and how we can

ther we want to adopt this technology.”

implement new technology that will

GEODIS has been recognised as

enhance what we already have,” explains

a ‘Leader’ by information technology

Mahler. “We have to establish an

research and advisory firm Gartner in

immediate need and ask ourselves that

its May 2018 Magic Quadrant for Third-

if we use this technology, will it bring us

Party Logistics (3PL) worldwide, which

value today, tomorrow or in the future?

evaluates third-party logistics providers’

It’s important to think about where we

ability to be a preferred global provider.

want to be in two years’ time and

With the company conducting business

understand how what we’re doing now

in the US, India and Haiti, technology has

will fit into that. When you have an

enabled each individual team to commu-

immediate value, you have future

nicate immediately and has allowed daily

potential value and, based on these two

operations to be sped up significantly.


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FORMING KEY PARTNERSHIPS

Some are very local, while some are

In order to achieve mutual success,

global and are capable of carrying

GEODIS has formed over 500 global

goods from Singapore to Mexico. We

partnerships. In particular, the firm has

really have all sizes of partnership.”

established a key relationship with the

The importance of establishing sign-

Commercial Relocation Network (CRN).

ificant relationships with other compa-

“Our collaboration with CRN has granted

nies to achieve mutual success is

us access to specialists everywhere in

therefore considered a top priority at

the US. Be it in California, Arkansas,

GEODIS. “Due to the way we operate

Seattle, New York or Miami, we have

our procurement activity, we’ve started

access to people who really know our

to move away from the customer/supplier

business and know what our specifics

relationship. We don’t think ‘I’m your

are – it’s very valuable to us,” says Mahler.

customer so you go and execute.’ Or ’I’m

“In general, we have lots of partners.

your supplier so you pay or I don’t e uroa pe nz .busi ne ssc h hief. ief. com


GEODIS

execute’. Those days are gone,” he says. “Before beginning a partnership, it’s important to trust each other. You need to accept some level of transparency on the cost and what’s possible, as well as deciding what can and can’t be optimised. Once you’re there, you’re in a relationship which is completely different from a typical, traditional customer relationship because you’re together in the same boat, facing the same challenges and are both trying to create value for each company, as well as seeking 154

the best result for the final customer.”

FUTURE PLANS Looking to the future, Mahler is aiming to ensure GEODIS continues to lead the way and set trends in order to stay ahead of the competition. “We’re passionate about our business, have proven experience and possess a truly global presence. I believe those three things are what make us different from our rivals. It’s vital to have the best people working for us and investing in people is something we rank very highly at our company. We’re always on the lookout for new talent, as well as retaining what we already have through J U LY 2 0 1 9


155

providing our staff with the opportunity to progress, change position or relocate to another part of the world. Innovation, technology and the people are considered our three key pillars,” he says. “At SCO we benchmark our solutions, approach and IT tools, and consistently look at the external world to understand what’s coming. Adapting is a word from the past. When you adapt, you’re already a follower. We don’t want to be followers; we want to be the leaders.”

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PANALPINA SUSTAINABLE LOGISTICS TO MEET CUSTOMER DEMAND 156

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WRITTEN BY

SOPHIE CHAPMAN PRODUCED BY

NATHAN HOLMES

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PA N A L P I N A

PANALPINA’S GLOBAL HEAD OF QUALITY, HEALTH, SAFETY AND ENVIRONMENT, LINDSAY ZINGG, REVEALS HOW THE COMPANY IS LISTENING TO CUSTOMER DEMAND AND IMPLEMENTING A SUSTAINABILITY TRANSFORMATION JOURNEY

T 158

he Panalpina Group is one of the world’s leading providers of supply chain solutions. It focuses on four core products – Air Freight,

Ocean Freight, Logistics and Manufacturing, Energy and Project Solutions – and operates globally with 500 offices across 70 markets and clientele spanning 12 different industries. For Panalpina, sustainability is a top priority. “I think sustainability is absolutely the way the world’s going. 14 years ago, these issues were never talked about and now it’s becoming a differentiator and a key aspect of business operations,” says Lindsay Zingg, the firm’s Global Head of Quality, Health, Safety and Environment. “We’re finding companies won’t work with us unless we are climate friendly and are willing to help them achieve their climate goals. It’s not just the right thing to do, it’s a core part of how we must do business.” Over the past decade, Panalpina has fully embraced sustainability and, more importantly, J U LY 2 0 1 9


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PA N A L P I N A

“W E HAVE BECOME ONE OF THE TOP COMPANIES FOR SUSTAINABILITY – IT’S REALLY BEEN A MASSIVE TRANSFORMATION” — Lindsay Zingg, Global Head of Quality, Health, Safety and Environment, Panalpina

the changes its customers, employees and shareholders expect. “Honestly, we have now become one of the top companies for sustainability – it’s really been a massive transformation. Everyone from our management team in Basel to employees in the warehouses around the world have had to change their mindset and approach. It’s been really motivating to see,” Zingg says. “Sustainability is really important in our industry.” When it comes to ensuring the company is running its operations sustainably,

160

Zingg attributes this to “defining clear goals, having a clear organisation with sustainability managers and allocating the necessary resources in terms of people, time and tools”. Demands from customers, employee interests and regulation are the three key drivers of the recent shift in the logistics industry regarding sustainability. “We’re seeing that the retail and automotive industries – our big consumer-facing customers – are highlighting the importance of sustainability. Some of our customers want to be carbon neutral by 2020. For that to happen we must make sure that we, J U LY 2 0 1 9


CLICK TO WATCH : ‘PANALPINA – GLOBAL PLASTIC CAMPAIGN’

as their logistics provider, are reducing our own CO2 emissions.” In response, the firm has deployed

Taking this even further, in 2015 Panalpina committed to a sciencebased greenhouse gas (GHG) emissions

biodiesel trucks in Singapore to serve

reduction targets and was one of the

its customer L’Oréal. Last year, the

first businesses in the logistics industry

company launched an agreement with

to have them approved by the Science

CMA CGM to reduce carbon emissions

Based Target initiative. As part of this,

caused by ocean freight. The goal

the company has pledged to lower its

focuses on the use of liquified natural

Scope 1 and Scope 2 emissions by 20%

gas (LNG) powered vehicles that

by 2025 against a 2013 baseline. Scope

will emit 25% less CO2 emissions,

3 emissions from business travel will

99% less sulfur emissions, 99% less

be reduced by 25% from 2017 levels.

fine particles and 85% less nitrogen oxides emissions.

As another part of its effort to minimise its environmental impact, e uro pe .busi ne ssc hief. com

161


PA N A L P I N A

Panalpina (Philippines) supporting underprivileged children

162

Panalpina has incorporated recycling

waste is segregated and sold to recy-

into its sustainability transformation

cling companies as possible to reduce

strategy, ensuring it recycles as many

the amount of waste going into landfill.

waste materials as possible, as well as

Between 2013 and 2018, Panalpina

sourcing new materials from recycled

used 38% less paper in its operations,

products. The company aims to use as

as well as 28% less water despite its

many recycled products in its day-to-

employee figure remaining constant.

day operations as possible – including

The company’s sustainability opera-

using 100% recycled plastic from

tions span across biodiesel trucks,

Dubai for its polo shirts. The business

LED lighting, tree planting, recycling,

has also partnered with the Canadian

water conservation, the introduction

firm Shred-it to sustainably dispose of

of electric vehicles and less air travel.

its wastepaper. The business ensures

The scope of Panalpina’s dedication to

as much of its cardboard and plastic

helping the environment and meeting

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customer demand. As an employer of 14,500 people, the company has worked hard to encourage its staff to support the strategy, ensuring that every level of the business is producing as little environmental impact as possible. But for Panalpina, sustainability is not just GHG emissions and environmental issues. It also includes the health and safety of employees,

“W E ARE LOOKING FOR POSITIVE ACTIONS THAT BENEFIT NOT ONLY THE COMPANY BUT ALSO THE COMMUNITIES WHERE WE OPERATE” — Lindsay Zingg, Global Head of Quality, Health, Safety and Environment, Panalpina

E XE CU T I VE PRO FI LE

Lindsay Zingg Lindsay Zingg, a chemist by training, has been Panalpina’s Global Head of Quality, Health, Safety and Sustainability for 14 years. With over 20 years’ experience in the field of sustainability, she spent her early years in the oil and gas industry before transitioning to the logistics world. In her role at Panalpina, she has led the effort to attain global certification according to ISO 14001, 9001 and OHSAS 18001, and is the driving force behind Panalpina’s GHG reduction programs, its record setting health and safety programs, achieving an “-A” score from CDP and its sustainability reporting efforts. Most importantly she is the mother to two young children, for whom she is committed to leave a healthier, more sustainable world. e uro pe .busi ne ssc hief. com


PA N A L P I N A

“E VERYONE FROM OUR MANAGEMENT TEAM IN BASEL TO EMPLOYEES IN THE WAREHOUSES AROUND THE WORLD HAVE HAD TO CHANGE THEIR MINDSET AND APPROACH. IT’S BEEN REALLY MOTIVATING TO SEE” — Lindsay Zingg, Global Head of Quality, Health, Safety and Environment, Panalpina

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Shanghai Port

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167

providing high quality services, con-

standards for quality and environmen-

ducting business in an ethical manner,

tal management. Most important of all,

innovation and thought leadership

customers are recognising Panalpina’s

– and, ultimately, helping customers

outstanding sustainability programs in

achieve their sustainability goals. It has

their RFQ processes.

made great progress in all of these

Panalpina partners with external

areas. In 2018, the Panalpina team set

agencies to help them achieve their

a new record for health and safety

goals. Two Swiss-based firms, Sus-

performance, the company’s best year

tainserv in Zurich and Sulytics in Basel,

yet. Its ethics and compliance programs

are essential partners who provide

are considered best-in-class, and the

advice and tools to guide Panalpina’s

company is globally certified according

sustainability efforts. Panalpina has

to ISO9001 and ISO14001, the leading

deployed a tool from Sulytics, which e uro pe .busi ne ssc hief. com


PA N A L P I N A

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Panalpina (Cambodia), working on improvements at schools

Panalpina (Kenya), supporting school children in Kenya Packing for a relief flight for Unicef

169 it uses to collect data from all of its

rate sustainability not only by its cus-

offices. The web-based platform has

tomers but by several external groups.

been developed with state-of-the art

For example, CDP (formerly known as

sustainability accounting capabilities,

the Carbon Disclosure Project), the

enables the company to transparently

premier platform for corporate GHG

assess its sustainability data and

reporting, gave the company a grade of

efficiently report to senior management

“-A� in 2018 for its response to climate

teams and external stakeholders.

change issues. The business is one

In addition, Sustainserv has provided

of only 12 companies in Switzerland to

strategic guidance, including materiality

be ranked so highly by the organisation,

assessments and support for sustaina-

with the average ranking for firms in the

bility reporting for Panalpina for almost

logistics industry at a C-level. Panalpina

10 years.

has also received a Gold rating from

With this support, Panalpina has been recognised as a leader in corpo-

EcoVadis for its corporate social responsibility, placing within its top 3% e uro pe .busi ne ssc hief. com


PA N A L P I N A

170

Panalpina (Taiwan), collecting and shipping shoes to Africa

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performers overall and in the top 1% of its industry. Panalpina engages all of its employees in these activities. In 2014, the firm launched Sustainable Action Week to encourage members of its staff to join forces and focus on the sustainability mission of the company. Since its start, nearly 1,500 initiatives have taken place globally, benefiting those most in need and improving the sustainability of Panalpina workplaces and the communities where it operates. In 2018, more than 10 customers and 25 charities took part in over 400 activities in all of Panalpina’s offices. Charities sup-

Panalpina (Taiwan), shoes for life inititave to support Africa

ported this past year include the Basel Area Cancer Foundation and many local charities across Asia. Panalpina’s teams took part in activities including removing plastic waste from beaches, cleaning children’s schools, working with disadvantaged children, helping feed the disadvantaged members of the community and working with a home for the elderly. The company also organises relief flights for UNICEF on an annual basis, targeting different nations in Africa each year and supplying relief goods to countries that e uro pe .busi ne ssc hief. com

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PA N A L P I N A

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“I THINK THE WHOLE SUSTAINABILITY TOPIC IN FIVE YEARS WILL BE ON A COMPLETELY DIFFERENT LEVEL AGAIN” — Lindsay Zingg, Global Head of Quality, Health, Safety and Environment, Panalpina

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require humanitarian assistance. Over the past 14 years, Panalpina has seen a huge transformation in becoming a global leader for sustainability. “We are looking for positive actions that benefit not only the company but also the communities where we operate,” comments Zingg. Panalpina has also found that using the UN Sustainable Development Goals (SDGs) as a framework has been helpful to struc-


500

Number of offices worldwide

1935

Year founded

14,500

Approximate number of employees

ture its efforts.. The company selected

different level again,” she adds.

six SDGs from the 17 that are most im-

As it becomes increasingly important

portant to its operations. “I structured

for big businesses and their consumers

the whole department around those

to look at the environmental impact of

goals and we measure per each goal

every stage of the supply chain, Lindsay

how many initiatives we do for them.

and her team will continue to ensure

It’s really been the umbrella that we

Panalpina remains at the forefront of

needed to bring this all together in one

the sustainability scene.

place,” says Zingg. “At the same time, I think the whole sustainability topic in five years will be on a completely e uro pe .busi ne ssc hief. com

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Profile for Business Chief Europe

Business Chief Europe - July 2019  

Business Chief Europe - July 2019