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CONNECTING THE FUTURE


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PRYSMIAN GROUP GOES GLOBAL WITH ITS LATEST ACQUISITION WRITTEN BY

DAN BRIGHTMORE PRODUCED BY

DENITRA PRICE


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PRYSMIAN GROUP

PRYSMIAN GROUP’S SUPPLY CHAIN DIRECTOR, GIANMICHELE ALIVIA, AND CPO, NA BRIAN SCHULTIES, REVEAL HOW ITS MERGER WITH GENERAL CABLE HAS EXPANDED THE COMPANY’S GLOBAL REACH AND OFFERED THE OPPORTUNITY TO MAXIMIZE ITS SYNERGIES

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rysmian Group is now a global force in the energy and telecom cable systems industry. Boasting nearly 140 years’

experience, the company’s wide service offering has driven sales exceeding €11bn via a 29,000-strong workforce operating in over 50 countries across 112 plants worldwide. Since the $3bn acquisition of General Cable in 2018, the group is embracing the complex transformation required to merge company cultures and meet the needs of a global footprint, while managing the synergies between procurement processes, supply chain and operations. Prysmian’s CPO, NA Brian Schulties worked at General Cable, starting in 2006, so he has a unique perspective on the challenges ahead. “While the re-organization was challenging, it was timely,” he reveals. “We’re merging two cultures into one and it’s not something you do in 30 days…” Senior Supply Chain Director Gianmichele Alivia


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CLICK TO WATCH : ‘PRYSMIAN GROUP AND GENERAL CABLE JOIN FORCES’ 07

agrees: “Setting up the new organization

less what the legacy Pirelli company

was only a part of the work that had

was doing globally. All of the challenges

to be done. We’re now starting the

are mastered here. Since the acquisition,

discussions about merging the ERP

we’ve been working to bring these two

systems and the tools we need.”

entities together. North America is where

Following its acquisition by Goldman

the bulk of the general cable business

Sachs in 2005, the former Pirelli

was and so this is where the majority

Cables & Systems (where Schulties

of the effort has been placed.” That

also worked prior to General Cable)

effort has included the integration of

was renamed Prysmian. “The company

5,000 staff while managing fixed costs,

has grown tremendously in the past

something that has been key to Prysmi-

year,” explains Alivia. “We generate

an’s success as a lean organization.

approximately $4.1bn in revenue in North America, which was more or

Schulties admits a $3bn acquisition invites a period of instability. w w w.pr ysmi a ngro u p . com


PRYSMIAN GROUP

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“Expectations since the merger are high, and we only have two years from start-to-finish to work on the synergies – beyond that it becomes the normal course of business.” He cites the success of the integration of Draka into Prysmian Group in 2011 and notes that CEO Valerio Battista has stated the progress with synergies is ahead of schedule. Alivia adds that the same challenge is being tackled on the supply chain side “The first step was to look at inventory (since the merger inventory locations have dropped from 77 to 70) but now we’re analyzing more complex points including the rationalization of our network where inventory is kept, our flows, product location and distribution. We need to ensure we make the right product in the best facility,” he explains. Prysmian is engaged in setting new contracts with carriers and working on their implementation with third-party logistics companies essential for managing the network. “It’s not only the logistics network,” adds Alivia. “We are reviewing every single facility and product to make sure we service the customer from where it makes the most sense; we’re looking at cost of w w w.pr ysmi a ngro u p . com

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When atoms come together, forming stronger cable insulations and jackets, we beneďŹ t from the energy that connects us.

Advancing a world of possibilities.

lyondellbasell.com


“WE ARE GOING STATE-OF THE-ART WITH THE LATEST VERSION OF SAP, WHICH IS IOT (INTERNET OF THINGS READY. THIS WILL ALLOW US TO BUILD ONTO IT AND LOOK AT THE POTENTIAL FOR PREDICTIVE ANALYTICS, MACHINE LEARNING AND AI” — Brian Schulties, CPO NA, Prysmian Group

production and factory efficiencies, but also the cost of delivery.” Beyond the strategic change triggered by the merger, Alivia notes how Prysmian is always open to dynamic change in the quest for greater efficiencies through the implementation of new technologies. “We’ve run idea pilots with augmented reality in our factories and trialed smart devices, such as sensors, both in our production lines and out in the field.” The group is keen to implement machine learning to help with its logistics network, though Alivia

E XE CU T I VE PRO FI LE

Gianmichele Alivia Alivia started his career at Pirelli in Milan with the corporate supply chain team. Since 2006, he has moved back and forth between Italy and the US working mostly on supply chain and managing the company’s B2B website. Alivia spent time at the former U.S. headquarters in South Carolina during the merger with General Cable. At the time, he was in charge of the regional supply chain of Legacy Prysmian, North America, and then, after the acquisition of General Cable, Alivia moved to current headquarters located in Highland Heights, KY and took a role in the new organization where he is working on the synergies project following the merger between General Cable and Prysmian Group.

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CARING for our people and communities ACTING responsibly for the planet BUILDING a better future together Learn more at cabotcorp.com/sustainability ©2019 Cabot Corporation

A leading manufacturer of protective materials for high reliability applications since 1946.

Tapes, laminates, sealants and coatings

Wire and Cable tapes and moisture block compounds

www.chasecorp.com

Electronic and Industrial coatings

Anti-corrosion coatings for Infrastructure

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concedes the cable industry is quite conservative and only implements technology when it can serve a proven purpose. “One of the most interesting things we’re doing is putting tracking devices on our cable drums to be able to monitor where they are at all times and ensure there is a faster turnaround of these assets once the cable on the drums has been used,” he reveals. Meanwhile, Schulties believes there’s potential to harness AI capabilities to reduce the need for remedial tasks.

“EXPECTATIONS SINCE THE MERGER ARE HIGH, AND WE ONLY HAVE TWO YEARS FROM START-TOFINISH TO WORK ON THE SYNERGIES – BEYOND THAT IT BECOMES THE NORMAL COURSE OF BUSINESS” — Brian Schulties, CPO NA, Prysmian Group

Almost a year on from the acquisition, Prysmian Group is preparing the

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significant step of merging its ERP systems. “It will generate efficiencies

E XE CU T I VE PRO FI LE

Brian Schulties Brian Schulties is the head of Purchasing for Prysmian Group North America. Schulties has more than 30 years of experience in the procurement field in the automotive, foundry and wire and cable markets. Prior to joining the company, he was the vice president of Sourcing for General Cable. Brian holds a bachelor’s degree in business administration from Cleary University and has a lifetime C.P.M. certification.

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PRYSMIAN GROUP

with everyone operating the same way on a shared system; obstacles will be removed giving us a better foundation to build for the future,” confirms Alivia. “We are going state-of-the-art with the latest version of SAP, which is IoT (Internet of Things) ready. This will allow us to build onto it and look at the potential for predictive analytics, machine learning and AI.” Beyond the challenges of the merger, innovation remains a high priority for Prysmian with 25 R&D centers across the globe and a 14

commitment to patenting new cable designs. Schulties is keen to act on the voice of the customer and see the company leveraging its supply base, as far as its technology and ability to provide innovation with delivery to market. On that quest, Prysmian works with 3PL, transportation and supplier partners. “We’re in discussion with companies like UPS,” says Alivia. “How do we create more than just a supplier/customer relationship? How do we form a strategic partnership with the extended supply chain team to come up with solutions? We’re having whiteboard discussions to find ways of solving shared problems


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PRYSMIAN GROUP

M A R KS THE SP OT Raw Materials, All Over Again Since 1918 At PMR our mission is to reintroduce useful raw materials for the metals and plastics industries, reduce the scrap generator’s waste stream and play a major role in the greening of our environment.

Headquarters 99 East River Drive, East Hartford, CT 06108 • 860 622-7626 Offices & Plants: East Hartford, CT • Orangeburg, SC • Canastota, NY • Miami, FL Willimantic, CT • South Windsor, CT • Wilmington, DE • Hickory, NC


across the entire infrastructure of our organization.” Focusing on shared sustainability goals is also key for a company

€11.bn Approximate revenue

ranked third in its sector by the 2018 Dow Jones Sustainability Index (DJSI). Prysmian is working with procurement to identify ways it can increase the percentage of return of recycled plastic and wood from pallets. Meanwhile, it is engaging with freight providers who invest in new trucks to improve mileage efficiency and reduce emissions. “We’ve also joined

1879

Year founded

29,000

Approximate number of employees 17

CLICK TO WATCH : ‘PRYSMIAN GROUP SHOWS ITS ADVANCED VESSELS FLEET’

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PRYSMIAN GROUP

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

Prysmian 3rd in the Dow Jones Sustainability Index Prysmian works with its partners

sustainability issues; adopting

for a common goal: achieving

inclusion and diversity policies;

sustainability now and for the

implementing a Code of Business

future. It has improved its

Conduct designed to disseminate

ranking due to numerous actions

responsible business practices

completed in the environmental,

along the supply chain; reducing

social and governance fields.

emissions of ozone-depleting

These include, amongst other

substances; extending the KPIs

things: vesting the Board of

adopted in its own Sustainability

Directors’ Compensation and

Report, drawn up according to

Nomination Committee with

the G4 guidelines of the Global

tasks such as: overseeing

Reporting Initiative.


19 the SmartWay,” adds Alivia. “It’s an

tion. The fact that we’ve just made a

EPA (Environmental Protection

big purchase doesn’t mean we’re not

Agency) program whereby companies

analyzing the next potential acquisi-

work collectively to reduce emissions

tion two or three years from now.”

and improve efficiency.” SmartWay

The strategy is set: making links in

offers an integrated set of no-cost,

the chain is building a bright future

peer-reviewed sustainability account-

for Prysmian and its customers.

ing and tracking tools to help companies make informed freight transportation choices across their supply chain. Looking ahead, Prysmian’s strategy is to be “consolidators of the market,” says Alivia. “We want to squeeze efficiencies out of the companies we acquire, generate cash, pay the debt and get ready for the future acquisiw w w.pr ysmi a ngro u p . com


Prysmian Group Via Chiese 6 20126 Milan, Italy T +39 02 6449. 1 www.prysmiangroup.com

Profile for Business Chief USA

Prysmian Group August 2019  

Prysmian Group August 2019