HOW ROCHE’S NEXT-GEN PROCUREMENT TEAM IS TAKING A LEADING ROLE ON SUSTAINABILITY
#13 PROCUREMENT SUPPLY CHAIN TECHNOLOGY www.thepurchasermagazine.com 62 PEOPLE, CULTURE AND THE LUXURY FASHION SUPPLY CHAIN AT CHARGEURS PCC 42 DIGITAL PROCUREMENT TRANSFORMATION WITH BMW GROUP AND CAPGEMINI INVENT 76 DISCOVERY, FREEDOM AND SUSTAINABILITY: LIFE ACCORDING TO JACK WOLFSKIN A M S T E R D A M
SUSTAINABILITY
IN ACTION
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There’s a pretty famous inspirational quote: ‘In a time of rapid change, standing still is the most dangerous course of action’. Wherever you work, it’s probably relevant. But for those in procurement and supply chain, particularly after two or three years of lockdowns, disruption, supply shortages, increased risk and complexity, and evolving customer and stakeholder expectations, it’s more a slogan to live by.
Bodo Bokämper mentioned those words during our discussion for this issue, in which he and Capgemini Invent’s Christian Michalak talked me through the vast, business-wide digital procurement transformation they’ve been leading at BMW Group over the last three years. Their journey, known as ‘Connected Procurement’, is focused on addressing both the challenges and opportunities that the changing procurement landscape presents, particularly in the global automotive industry.
And it’s a complete transformation, underpinned by a strong culture and excellent people, and including digitalisation of procurement processes, harnessing data and analytics, greater collaboration across the global supplier network, and working with pioneering and innovative startups.
You won’t find anyone standing still in this edition. For example, we speak with Patrick Foelck and the sustainability team at Roche, who collectively are pushing procurement to being a leader in organisation-wide sustainability. It’s the same story for Nico Dapoto and his colleagues at luxury fashion brand Chargeurs PCC. Their ongoing work to transform the supply chain, adopt new technologies, train new talent and nurture a change-focused mindset, will ensure the company can tackle challenging markets and global complexity.
We hope you enjoy the issue and find some inspiration.
Stroud & Clarke is a multichannel creative agency that produces exceptional business and lifestyle content for brands, leaders and pioneers.
Editorial
Matt Content Director Matt High Creative Director Steve Shipley Marketing Director Jack Pascall Project Directors Katie Fedun Henry Allton-Jones Will Tottie Managing Directors Charlotte Clarke James Pepper THE PURCHASER MAGAZINE ISSUE THIRTEEN 03
ISSUE THIRTEEN
06 | INSIGHT EXEC SUMMARY
News, views and insight
14 | INTERVIEW ROCHE
On procurement-driven sustainability and the power of real change
30 | PORTFOLIO TECH YOU NEED
Innovations for work, leisure and the environmentally conscious
40 | INNOVATOR FIBRETRACE
A new era for supply chain transparency and sustainable fibres
42 | INTERVIEW BMW GROUP & CAPGEMINI INVENT
42 60 THE PURCHASER MAGAZINE
On innovation and a digital, connected procurement transformation
60 | DISRUPTOR MANNA
Contents
30
14
40
Suburban delivery, the lightingfast and eco-friendly way 04
98 90
62 | INTERVIEW
CHARGEURS PCC
On people, culture and the world of luxury fashion supply chains
74 | ENTREPRENEUR ROB LANELLI
Cleaning the oceans and our global supply chains in one go
76 | INNOVATION
JACK WOLFSKIN
Discovery, freedom and a total commitment to living sustainably
84 | PERSPECTIVE YEAR OF THE SUPPLY CHAIN
Ivalua’s Alex Soric on what a tumultuous 12 months means for 2023’s supply chains
90 | CITY GUIDE
48 HRS: AMSTERDAM
Business and pleasure in the Netherlands’ capital
98 | CALENDAR EVENTS
The best events for 2023
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THE METAVERSE AND SUPPLY CHAIN
According to Accenture’s 2022 Accenture Technology Vision around two-thirds of supply chain management execs expect the metaverse to have a positive impact on their business. The potential of the metaverse on supply chains, it says, can be tremendous, in particular across four key trends: treating the metaverse as a virtual collaboration room where retailers, suppliers and customers can meet and exchange information; by seamlessly blending digital and physical navigation to provide richer interactions; by using AI-generated synthetic data, or ‘perfect data’ to accurately forecast market information, customer demand and other variables; and through the use of emerging machines and technologies to enable better processes, planning and inventory.
www.accenture.com
THE PURCHASER MAGAZINE ISSUE THIRTEEN 06 Exec Summary
Primark has published its first Sustainability and Ethics Progress Report, updating on progress made against its Primark Cares sustainability strategy, launched towards the end of 2021. It reveals the fashion retailer has increased the use of recycled or more sustainably sourced materials from 25% to 45%, increased the proportion of organic, recycled sourced cotton from 27% to 40%, conducted 2,400 ethical trade supply chain audits during 2021, and has worked with more than 40 external partners in key sourcing markets on social impact programmes.
www.corporate.primark.com
Apple CEO Tim Cook on the company’s plans to be carbon neutral across its global supply chain by 2030
1. https://sciencebasedtargets.org/business-ambition-for-1-5c Our reporting This is our Sustainability Progress Report for 2021/22. When we September 2021, we transparent information the commitments we decisions on our supply operations, our products committed to reporting progress and how we changing as a company. statements in this report year for non-financial to 31 July 2022, unless Reporting standards As a division of Associated (ABF), we contribute Report and Responsibility contribute to the ABF Project (CDP) and Task related Financial Disclosures submission. 3 Primark Sustainability and Ethics Progress Report 2021/22
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“Climate action at Apple doesn’t stop at our doors, and in this work, we’re determined to be a ripple in the pond that creates a bigger change”
GROWING LIFE, ANYWHERE
In space, no one can hear your supply chain. Maybe… What we do know is that in space, as on Earth, harvesting seeds or difficult to grow crops, shipping them across the world – or beyond – in a sustainable way, and living more efficiently is a challenge. Not so with Interstellar Lab’s inflatable BioPod, a pop-up farming pod designed to help future colonisers take what they need to live on Mars without relying on transport. Here and now, it’s being used by food suppliers, pharmaceutical companies and more to grow plants and crops where they’re needed to mitigate supply chain disruption.
www.interstellarlab.com
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Exec Summary 08
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RISK MANAGEMENT
Any end to the level of risk and disruption supply chains face looks unlikely. To help organisations mitigate the challenges as best they can, Amazon has launched a new cloud application, AWS Supply Chain, that improves supply chain visibility, delivers actionable insights, helps customers lower costs, unifies supply chain data, and increases supply chain resilience.
www.aws.amazon.com
Five key steps companies can take to navigate the shift to remote and hybrid work, according to McKinsey:
> Communicate clearly your plans and guidelines for flexible work
> Speak with employees to gather regular feedback
> Invest in and foster employee connectedness and camaraderie
> Bring purpose and focus to in-person work to add value
> Make sure there’s a level playing field between everyone
www.mickinsey.com
THE PURCHASER MAGAZINE ISSUE THIRTEEN 10 Exec Summary
Apple’s globAl Ambition
Apple has set an ambitious goal to be carbon neutral across its global supply chain and the lifecycle of every product by 2030. It called on its global supply network to take new steps to address greenhouse gas emissions and up their collective focus on decarbonisation. Apple, which has been carbon neutral for its global corporate operations since 2020, said it will evaluate the work of major manufacturing partners, including running on 100% renewable electricity and tracking yearly progress.
Said Tim Cook: “Fighting climate change remains one of Apple’s most urgent priorities, and moments like this put action to those words”.
www.apple.com
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EXPRESS DELIVERY
We mustn’t fear the rise of the robots. Certainly not if you live in Chicago where, rather than threaten your way of living, they’ll be roaming the streets delivering hot food. Mayor, Lori E. Lightfoot has announced the City Council’s approval of a Personal Delivery Device (PDD) pilot programme in which PDD companies will work with local food establishments and grocery stores to trial app-based robot delivery services. The University of Illinois-Chicago has previously conducted a similar programme with Starship Delivery Robots.
www.chicago.gov
TO THE COMMAND CENTRE!
Agility, resilience, decision making through effective insight, and maximising the value of the supply chain: all more critical than ever. Which is why Microsoft has launched the Microsoft Supply Chain Platform, a suite of innovative technologies to help organisations maximise their supply chain data estate investment through an open approach that also includes a ready-made command centre for greater visibility and to enable transformation.
www.news.microsoft.com
THE PURCHASER MAGAZINE ISSUE THIRTEEN 12 Exec Summary
Japan relaxes its drone regulations to allow automated drone flights over residential areas and boost drone delivery services.
H&M, Ben & Jerry’s, Stella McCartney, and Kering announce a collective commitment to purchaser over half a million tonnes of low-carbon alternative fibres and packaging.
Domenico Siniscalco, International Finance Forum (IFF) Vice President tells those attending an IFF Annual Meeting that supply chains are being undermined by geopolitical factors.
Maersk and IBM shut down TradeLens, a blockchain-enabled global trade digitisation platform for global trade launched in 2018.
UPS CEO Carol Tomé announces in an earnings call that the company is building a logisticas-a-service offering.
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PROCUREMENT: THE NEXT-GEN SUSTAINABILITY LEADER
Roche’s next-generation procurement transformation is enabling the function to take a leading role and drive major initiatives and programmes in sustainability
Interview
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When we left Patrick Foelck, Head of Insights & Enablement Procurement at Roche, in our previous edition he told us, very simply, ‘there is a bigger purpose to all this’. It was a statement that both perfectly encapsulated the driving forces behind the significant, next-generation procurement transformation that he and his colleagues have been spearheading at global pharmaceutical leader Roche, and the unique value proposition being released in the function through a process of reinvention.
That proposition is centred around the knowledge that procurement for procurement’s sake is no longer enough; a single-minded and savings-focused approach must be replaced by a real and honest dedication to business and shareholder value and becoming a more outward-facing function that accounts for the true cost of the business and its work; and that procurement in the broadest sense must embrace its position as an enabler of greater value.
“We’re now focused on understanding the root cause of true business problems, ideating and co-creating solutions, implementing them and transforming the way the business works to achieve greater value than just savings,” Foelck told us previously. “We call it our commitment to creating value, and it’s about looking at the many outcomes that we as a function can enable beyond simply driving productivity.
That means thinking about what we can influence in terms of quality and availability of supply, what we can provide when it comes to innovation, or driving risk management or sustainability programmes within the business. We want to see what we can do if we really push ourselves.”
Of course, success and business value can be measured in myriad ways, particularly when driving as significant a transformation as that within procurement at Roche. But, when it comes to purpose, few are more important – or more timely – than sustainability and enabling the enterprise to deliver on its environmental, social and governance (ESG) ambitions. Everyone at Roche knows this. As one of the world’s leading pharmaceutical companies, its core purpose is to help people achieve good health and longevity in every sense. Within the context of sustainability and ESG, the prevention of ill health reaches far beyond producing pharmaceutical products; economic hardship, education, health and safety management, positive action on climate change – all have an impact on our collective wellbeing.
And it’s here that Foelck believes the reinvented and digitally-enabled procurement function they’re creating can add real value. It is also the reason we reconvened with him and the company’s procurement sustainability team, Rachel Allison, Lucy Pickett, and Eleni Pasdeki-Clewer, to dissect the intricacies of a procurement-led sustainability evolution.
Interview
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Roche’s procurement sustainability team: (l-r) Eleni Pasdeki-Clewer, Patrick Foelck, Lucy Pickett, and Rachel Allison
THE RISE OF SUSTAINABILITY
“Sustainability has been a hot topic in procurement for some time,” says Foelck, by way of an introduction. “There’s been a collective sense that we are best placed to drive more value and take the lead where appropriate. It’s also fair to say that there’s been a lot of talking about solutions but less investment and understanding of how to get beyond the talk. But that’s changing. You’ve companies like Roche, which has always been at the forefront in terms of its sustainability efforts, investing
significantly. There’s also a greater awareness and desire for the subject in society and far greater attention from stakeholders within businesses, and globally I think we all see why we have to do more to protect our collective futures. In procurement we know it’s an area we can actively contribute towards and make a far greater impact in, not just for the organisation but far more broadly.”
“Certainly in recent years, there’s been a noticeable and very welcoming transition
Interview
“WE HAVE A CRITICAL ROLE TO PLAY; PROCUREMENT SITS AT THE INTERFACE OF THE INTERNAL BUSINESS AND EXTERNAL SUPPLY CHAIN”
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RACHEL ALLISON, SENIOR SUSTAINABILITY MANAGER
around sustainability that’s seeing organisations look beyond their factory gates, taking a more considered approach to their moral responsibilities and how their actions impact others across the supply chain,” adds Eleni Pasdeki-Clewer. At Roche Pasdeki-Clewer, an experienced sustainable procurement professional, is responsible for setting the processes, practices and changes required to embed sustainability within procurement.
“I’ve seen this agenda developing over the last 17 years in different organisations,” she says, “and it’s a welcome change to see companies, including Roche, looking beyond their immediate responsibilities. From our perspective it’s important to recognise that, as a company that operates within the healthcare sector, there’s a deep connection with our core purpose and a very real sense of moral responsibility. We’re not just approaching this from the perspective of having to operate within the corporate environment, where we have certain targets and objectives. Everything we do through the entire organisation, supply chain and our value chains is about creating better health outcomes for people.”
PROCUREMENT AS A DRIVER
The depth and breadth of the sustainability challenge that organisations face means that responsibility for delivering an effective sustainability and environmental, social and governance (ESG) strategy rests with everyone. But increasingly procurement, with its far-reaching connections
and relationships across the value chain and market, and ability to influence and advocate within the business, is taking the lead. This is certainly true at Roche, where the work carried out to date is a good demonstration of the influence an effective procurement practice can have far beyond its traditional remit.
“Of course, driving sustainability is the responsibility of everyone, but if you look at it even from a very practical level then much of that responsibility falls to procurement – over 90% of our environmental impact sits within our Scope 3 emissions at Roche, so the meat of the challenge sits with us before we even begin to look at where we can add value beyond this,” says Rachel Allison. Having been with Roche for just under a year, Allison brings considerable experience in engineering, manufacturing and energy efficiency and is responsible for the processes and enablers for achieving reductions in Scope 3 emissions, including measuring and driving alignment on climate opportunities and supplier engagement. “Because of this alone we have a critical role to play,” she adds, “procurement sits at the interface of the internal business and external supply chain.”
“We’re not just focused on sourcing goods and services anymore, we don’t just connect demand to supply for people. Procurement has a strategic role and, certainly here at Roche, it’s stepping up to that challenge and becoming the enabler
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that can facilitate the changes we wish to see across the organisation,” affirms Pasdeki-Clewer. “And it can do that so well because it’s the connective tissue between what the business wants and gets, placing it right at the core of the organisation.”
For Foelck, the extent of the sustainability challenge and the shift to a more outwardfacing and value-centric approach to the topic creates an environment in which the kind of procurement function he and the team are building can thrive. “It’s so much more than your direct carbon emissions,” he states. “For years many corporations have largely focused on their internal ESG footprint because it’s been about ‘what can we directly influence’. And we’ve made great progress in that approach – we’ve been leading the Dow Jones Sustainability Index for more than a decade, for example – but it’s time to do more. Take carbon emissions as an example. Due to admirable efforts of the entire organisation we’ve already significantly reduced our footprint but, of what remains, over 90% sits in our supply chain. That demonstrates how much Roche has already achieved in reducing its direct emissions, but also gives an indication of the challenge ahead.
“Because of that, my position is ‘very well done, great job, so far you’ve been training for the main event and now you have to run multiple marathons in weeks instead of one year’,” he continues. “That’s the true extent of the work necessary and that’s where procurement comes in,
because the focus shifts from internal optimisation to this enormous external challenge about driving a bigger impact across our supply chain. It’s here that our skills of facilitation, connecting the dots within the business, our ability to bring together key stakeholders, and use our relationships and connections with the market are key. Sustainability is the perfect area in which we can demonstrate the value we’re able to deliver.”
PROCUREMENT’S EVOLUTION: THE RIGHT TO LEAD
Procurement at Roche is in an ideal position to make the most of this opportunity, largely as a result of the significant transformation journey the function has been through over the last couple of years. Steered by Foelck and Head of Global Procurement Marielle Beyer, the team has evolved in line with an ambitious, next-generation procurement vision centred around the creation and implementation of a more agile and customer-focused organisation, capable of driving a broader value proposition. Within this context, nextgeneration procurement is built around wider customer needs and an operating model based on three chapters – Customer Excellence, Delivery, and Insights & Enablement – that connect internal demand with markets and capabilities and actively develop future strategies, solutions and innovations that bring business value.
It’s an evolution that has driven new skills and capabilities capable of taking on the
Interview
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sustainability challenge, freed up funds and time to invest in key initiatives around Scope 3 emissions, supplier engagement, product innovation and more, and enables a shift from a previously more tactical approach within the business whereby sustainable procurement wasn’t a focus in its own right, to a more strategic way of working. “The result,” says Foelck, “is a procurement organisation that has earned its right to lead and innovate.”
“The unique opportunity for the procurement sustainability team is to create sustainable value across the entire value chain – from Tier N raw material supplier, right through to the customer (patient), and every function in between. To achieve this we have two delivery modes: Consult to Enable and Lead to Deliver,” says Lucy Pickett. Having been with Roche in various procurement roles for almost five years, Pickett has played a key
“IT’S OUR JOB TO DEMONSTRATE THAT WE ARE A TRUSTED PARTNER WHO DELIVERS RESULTS, WHICH HAS BEEN CRUCIAL IN TERMS OF BUILDING OUR REPUTATION, INFLUENCE AND RIGHT TO LEAD”
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LUCY
PICKETT, SENIOR GLOBAL SUSTAINABILITY MANAGER, SCOPE 3 & SBTI LEAD | PSCI SCOPE 3 INDUSTRY LEAD
role in the Scope 3 emissions work that has been one of the key areas of focus over the last year and half; she is also the project lead for the Science Based Targets initiative (SBTi) programme.
“That approach is key because, as a function, we have to be able to understand when it’s important for us to just enable the business to achieve what it needs to and put in the right processes, policies and education around that, and when we have to take the reins,” she continues. “For the latter, that’s a huge opportunity and it’s our job to demonstrate that we are a trusted partner who delivers results, which has been crucial in terms of building our reputation, influence and right to lead.”
“On that point,” says Allison, “there are some areas of sustainability in which procurement has a natural role to lead – determining and reporting on the sustainability of our supply base, providing insights on our suppliers and so on. But there are some, particularly the work we’ve been doing around Scope 3 and developing science-based targets, where we’ve demonstrated our ability to drive forwards. Looking back a few years, Roche achieved a lot and learnt many lessons by focusing on its own direct emissions but didn’t yet fully understand the impact of its supply chain or the overall carbon footprint. The work we’ve done in quantifying that, together with the awareness that’s being driven across the business about how the insights procurement has can enable change, has been important.”
Interview
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PURCHASER
SUSTAINABILITY IN ACTION
In little more than two years, the team has been on a significant journey underpinned by a shift to a more strategic way of thinking driven by organisation-wide leadership, a focus on developing and maturing robust foundations, work on target setting, impact valuation and measurement to create a mandate, rewiring business thinking, and providing enablers in the form of tools, frameworks/ guidelines and decision support. Within the context of ESG, much of that work to date has been focused on the ‘E’, including a large piece around collating data and mapping out impacts in Scope 3 emissions, greater supplier engagement, the creation of a detailed ‘Sustainable Procurement Toolkit’ guide and, most recently, the commitment to sciencebased targets for Scope 3.
“In the past we have been more opportunistic, focusing on more tactical initiatives,” says Allison. “So, considering potential areas that we could explore, how could we partner with certain suppliers, initiatives in the renewable energy space – really just testing, piloting and understanding what worked around sustainability. As we’ve grown and matured as a team, we’re bringing in much more structure, putting in overarching programmes and a framework for business commitment. We’re investing in and embedding the processes around sustainable procurement and we’re tying new projects and programmes into those processes. It’s about operating
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ELENI PASDEKI-CLEWER, SENIOR SUSTAINABILITY MANAGER
under a more coherent framework and delivery against a bigger strategy.”
“We needed to create a certain reputation and awareness,” explains Pickett, discussing how the team set about strategising and prioritising procurement-led sustainability. “We realised our initial focus should be on the environmental aspect, in particular Scope 3, because it’s where we have a big role to play and where we could drive change – in the ‘S and G’ aspects we’ll still play a critical role, but
it’ll be more of a traditional procurement enabling role. Already, a year into the journey, we’re able to provide answers to important questions around measuring sustainability and how we value our impact, and we’re able to already work with the wider business to offer real solutions.”
Much of the key work to date has been around measuring and understanding Scope 3 impact, and has now moved towards how to use this crucial data to take wide-scale action under the
Interview
“DATA ONLY SERVES A PURPOSE IF IT CAN DRIVE THE RIGHT BEHAVIOURS OR CHANGES AND ENABLE YOU TO ACHIEVE YOUR OBJECTIVES”
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we purchase, down to material or service level and analysing it in granular detail. This allows us to not only have more accuracy in our data that’s specific to the industry, but also to monitor and measure changes to inform decision making. Part of that also involves looking at our product structure, engaging with our product teams and understanding more about the optimum choices we could make in relation to environmental sustainability. From that we can consider what changes are feasible, how long they’ll take or how much they’ll cost, and also how they balance with the other core business priorities.”
stewardship of Pickett. The project, she explains, began with proof-of-concept work that has rapidly developed. “We mapped all of our spend to emission factors and, for the first time, we were able to have an overview of what our full Scope 3 footprint was, which enabled reporting in the 2021 annual report and accounts, and has attracted positive interest from investors. We were able to identify where our big emitters were and because of the interest, engagement and momentum it picked up across the business, our scope of work progressed quickly; once we had the data, the focus very quickly shifted to the solutions needed to tackle the problem.
“We re-baselined this year,” she adds, “moving beyond spend-based analysis to activity-based analysis. That means going into the detail of every single item
Supplier engagement formed a crucial part of this work, including close collaboration to further understand specific sustainability objectives and goals from a supplier perspective and defining specific reporting structures and scorecards.
“We recognise that the majority of our supply chain impact comes from a relatively small number of companies that are very large,” Allison elaborates. “So when we’re looking to drive reductions, we’re fortunately collaborating with quite mature companies, sometimes on their own sustainability journeys. But this is still very much about establishing partnerships of equals and delivering on close collaboration.”
“We talk a lot about data and baselining, or understanding our impact, but it’s important to remember that data only
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serves a purpose if it can drive the right behaviours or changes and enable you to achieve your objectives,” adds PasdekiClewer, reflecting on the Scope 3 work and supplier engagement. “One of the most exciting areas that we’re exploring at the moment is the role of innovation and how industry needs to change, in particular regarding the kinds of products we purchase from specific suppliers in order for them to be more sustainable.
“That includes considering things like alternative materials, how we source those and how we develop into that space, and then how we can drive the changes set out by our data,” she adds. “From the supplier engagement work we know where the hotspots are, so it’s about entering into constructive discussions about where we can push the limits, how we can leverage the broader business and industrial ecosystem, and then work together to reduce our impacts through innovation and alternative materials.”
Product-specific qualification is a particular challenge in the pharmaceutical industry, says Allison, largely as a result of regulatory and registration processes.
“Something like 80% of the environmental footprint is set at the design stage for a typical, classic product,” she explains.
“That’s a real challenge, because once we’ve developed that product the changes that can be made are minimal. For that reason the work with our suppliers is important in driving continuous
improvement and providing learning that we can use in collaboration with other parts of the business, like product stewardship – when we’re thinking about this journey, yes, we’re looking at what we can do in the next five years, but it also has to influence how we’re helping the business transform in the long term. This phased replacement of goods and services we procure and the opportunities we can create in this area will be an important part of how we drive outcomes.”
Following the initial Scope 3 work last year, the team put forward to the Roche
Interview
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executive committee the case for developing science-based targets based on the progress made in baselining, and relationships created internally and externally, to set a clearly defined path to reduce emissions. The initiative was approved and the procurement team is now leading on the programme since the start of this year.
“In procurement we’re used to targets,” says Pickett. “The key thing here is how do we enable the business to achieve these targets, and how do we make them meaningful and aligned to our overall corporate vision and strategy? I see the SBTi project as a vehicle to ultimately achieve our bigger aim of something we’ve articulated as a corporation: emitting zero emissions by the middle of the century. That’s the ultimate goal. Our job is engaging the business, steering change management, helping with tools and templates, encouraging adoption and playing a key role in driving some of these projects. But I believe that the trigger and the vehicle to get us there is making it concrete through these targets.”
To inform that journey, Pasdeki-Clewer has been working on a detailed Sustainable Procurement Toolkit. “In its essence it’s about making the necessary changes that will help our team and everyone in procurement guide the business towards making the right decisions, to have the knowledge about the decisions that they make, and to be able to record the benefits with regards to sustainability,
“WE KNOW SUSTAINABILITY IS AN AREA WE CAN ACTIVELY CONTRIBUTE TOWARDS AND MAKE A FAR GREATER IMPACT IN, NOT JUST FOR THE ORGANISATION BUT FAR MORE BROADLY”
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PATRICK FOELCK, HEAD OF INSIGHTS & ENABLEMENT PROCUREMENT AT ROCHE
with a primary focus on achieving our carbon goals.That will entail making changes to systems and processes in a lot of detail, as well as increasing knowledge and understanding.
“With that in mind, there’s a large piece of capability building,” she adds. “When people in procurement engage with the wider business we want them to not just consider the traditional parts of the role, but always be thinking about adding value on top of that and consulting with those stakeholders as to how they can help them meet business goals with
Interview
“THE KEY THING HERE IS HOW DO WE ENABLE THE BUSINESS TO ACHIEVE THESE TARGETS, AND HOW DO WE MAKE THEM MEANINGFUL AND ALIGN TO OUR OVERALL CORPORATE VISION AND STRATEGY”
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PATRICK FOELCK, HEAD OF INSIGHTS & ENABLEMENT PROCUREMENT AT ROCHE
regard to sustainability. Some of those changes are easy, some are more long term, but we can facilitate that in our role as that central point of the business.”
CONTINUING THE JOURNEY
In little more than two years, the team has laid the foundations for an ongoing evolution of how procurement can enable greater action on sustainability at Roche. While driving Scope 3, leading on science-based targets and the Sustainable Procurement Toolkit underpin much of the work to date, other projects and programmes include work to drive immediate reductions in R&D, playing a critical role in supporting the business with renewable energy procurement to decarbonise operations, decarbonising professional services categories through project-level interventions like mindful travel, cleaning and reusing microtiter plates used in laboratories to significantly reduce ecological footprint, and looking beyond carbon to understand, measure and value business impact on different areas of society.
services that we buy and asking ourselves ‘how much are these costing our society, and what can procurement do to improve them?’. It’s a new and evolving area that we’re excited to be exploring.”
“The next step for us as a team is increasing allyship with our industry peers to capitalise on collective goals and aims,” adds Pickett. “We are seeing this through industry associations such as the pharmaceutical supply chain initiative (PSCI), sustainable markets initiative (SMI) and many other sustainable procurement networks, where we are playing a critical role in shaping the agenda. We can’t do this alone, and magnifying a collective narrative and enablement through procurement organisations provides the opportunity for the aligned efficiency and speed required to make the impactful, lasting change that the healthcare ecosystem demands.”
www.roche.ch
“Carbon reduction is only the beginning,” says Pasdeki-Clewer. “We see ourselves as pacemakers, and so we’re exploring the wider sustainability agenda, focusing on the environmental impacts of the supply chain while also being conscious of the wider social impacts, too. With that in mind, we are working to understand the broader supply chain sustainability impacts associated with the goods and Click here to read the previous interview
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i nnovative and ins P ired items for work, leisure and sustainable living
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Portfolio
ADIDAS RPT-02 SOL
If you want eco-friendly credentials then Adidas’ RPT-02 SOL headphones are the real deal. They’re built in part from 87% recycled plastics and thanks to Exeger’s Powerfoyle, a groundbreaking light cell material that converts all forms of natural and artificial light into battery life, they charge themselves whether you're outdoors or in. Powerfoyle charges whenever it’s exposed to light and, when the light goes out, the headphones will stay charged for up to 80 hours of stored playtime. They’re also water resistant, have washable parts so can handle the hardest workouts, and are 100% vegan.
www.adidasheadphones.com
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Portfolio
i nnovative and ins P ired items for work, leisure and sustainable living
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Portfolio
GARMIN D2 MACH 1
A watch that can help you fly planes? Even Bond didn’t have one of those. But that’s exactly what Garmin’s D2 Mach 1 Aviator Smartwatch does. Beneath its AMOLED touchscreen display the D1 Mach 1 has a host of features designed specifically for budding aviators, including a worldwide aviation database for navigation, weather alert systems, airport information including radio frequencies and runway alignment, flightplan tools and barometric altimeter. And, because it’s by Garmin it also includes a suite of fitness, health and wellness smart technology too – to use when you’re saving for the airplane…
www.garmin.com
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Portfolio
i nnovative and ins P ired items for work, leisure and sustainable living
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MAGAZINE
Portfolio
META QUEST PRO VR HEADSET
When it comes to the metaverse, you know the drill: work in the virtual world, collaborate in mixed reality, immerse yourself wherever you wish. The possibilities, they say, are endless. You can even – if you fancy – lift a skyscraper up with one hand to examine it. So says Meta, introducing its new Quest Pro headset, a futuristic, ultra-innovative new way to work, create and collaborate. Its streamlined profile improves comfort, it offers flexible levels of immersiveness to engage in the virtual and physical, improved optics, 10 advanced sensors, and self-tracking controllers. Find yourself a skyscraper and start lifting.
www.meta.com
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Portfolio
i nnovative and ins P ired items for work, leisure and sustainable living
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Portfolio
FAIRPHONE 4
Just one new smartphone generates roughly 85kg in emissions in its first year of use, most of that from the manufacturing process. That’s a huge problem, which is why switching to Fairphone is a good choice. The company believes in a fairer and more environmentally friendly electronics industry and creates more sustainable smartphones based around responsible material sourcing, a dedication to workers’ welfare and putting the planet first. Take Fairphone 4 as an example. It’s electronic waste neutral, uses fair and recycled materials, and can be repaired or updated by its owner using affordable spare parts.
www.shop.fairphone.com
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Portfolio
i nnovative and ins P ired items for work, leisure and sustainable living
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Portfolio
EFTR HOOLIGAN 1.2
Don’t be put off by its name. The eFTR Hooligan 1.2, the result of a collaboration between Indian Motorcyle and electric bike specialist SUPER73, is anything but bad. Rather, it’s an environmentally friendly, high-performance new e-bike designed for sport or urban transportation. Its electric powertrain, which gives a range when fully charged of 75 miles, can propel riders at speeds up to 28mph via a number of pedal assist modes. It’ll tackle on- and off-road terrain with ease and features the classic, moto-inspired styling that Indian Motorcycle is famous for.
www.indianmotorcycle.com
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FIBRETRACE
A NEW ERA OF TRANSPARENCY
Innovator
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Every member of the textile supply chain must have the ability to take direct accountability to reduce the environmental impact of the global industry.
This is the mission upon which FibreTrace, formed in 2018 by a group of likeminded leaders in the global textile industry, was built. Their collective focus was simple: to usher in a new era of transparency, honesty and accountability.
To do so, they and the team have developed a blockchain-based physical and digital traceability technolog. It uses an innovative bioluminescent ceramic pigment that’s added to fibres at the beginning of the supply chain and created to a unique recipe that acts similarly to a serial code. At each stop in the supply chain the fibre is scanned, with the relevant and new information about what changes have been made – such a dyeing, weaving or sewing – added to a secure blockchain.
FibreTrace gives brands and customers transparency and provenance to an item of clothing’s entire lifecycle, giving them the ability to make better decisions for the environment and consumers.
As the company says, every fibre tells a story. www.fibretrace.io
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“ Every fibre tells a story”
BODO BOKÄMPER AND CHRISTIAN MICHALAK
DISCUSS THE DIGITAL PROCUREMENT TRANSFORMATION
JOURNEY THEY’RE LEADING AT BMW GROUP
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n a time of rapid change, standing still is the most dangerous course of action’. Granted, it’s a well-used motivational quote but, particularly in the context of the last two to three years, it’s one that every procurement professional should heed. The function has changed immeasurably over the last decade, evolving into a more strategic and business-focused unit capable of meeting multiple challenges and increasing complexity, including more global and interdependent supply chains, complex trade and tax regulations, greater expectations from stakeholders and customers around sustainability and ESG, and ongoing supply shortages.
Add to that list the more recent and ongoing disruption caused by the COVID-19 pandemic, conflict in Ukraine and the need to adapt to our collective ‘new normal’, and Brian Tracy’s famous words become less a management slogan, more a mantra for everyone working in procurement. The message is simple, to succeed procurement must adapt, embrace new ways of working and collaborating, lead on innovation to drive its respective business forward and, perhaps most importantly, embrace the power of digital technologies, the greater analysis and use of data, and tools that provide the transparency, decision support and resilience that’s crucial for business continuity.
That’s certainly the case for Bodo Bokämper, Vice President Digitalisation & Processes, Global Procurement at BMW Group, and Christian Michalak, Executive Vice President, Head of Intelligent Industry, Capgemini Invent Germany who, for the last three years have together been at the forefront of a digital procurement transformation at the German automotive manufacturer.
Their journey, dubbed ‘Connected Procurement’ by the team at BMW Group, is focused on addressing both the challenges and opportunities that the changing procurement landscape presents, particularly in the global automotive industry. To do so, Bokämper, Michalak and their colleagues have invested significantly in digitalisation across several key areas of the procurement process, harnessed data and analytics to improve business insights, transformed collaboration across the global supplier network, and tapped into the pioneering and innovative spirit of a host of cutting-edge technology startups. While still ongoing, the transformation to date has already brought significant success to the company and led to broader cultural change and a transformation-centric mindset.
‘
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I
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CONTINUE BUSINESS AS USUAL?
More than ever, industries are facing major challenges to ensure a reliable value chain in disruptive times. Transparency, resilience, and connected platforms are crucial for business continuity. At Capgemini Invent we’re enabling CXOs to envision and shape the future of their businesses across the entire value chain mastering the convergence of physical and digital worlds, leveraging data, technology, and high performing teams. This is what we call an Intelligent Industry. www.capgemini.com/invent
OR REIMAGINE IT WITH AN INTELLIGENT VALUE CHAIN?
BODO BOKÄMPER, VICE PRESIDENT
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DIGITALISATION & PROCESSES, GLOBAL PROCUREMENT, BMW GROUP
PROCUREMENT’S EVOLUTION
Bokämper is an experienced and respected business leader who has been with the BMW Group for more than two decades, thereof 12 years in procurement, during which he has seen firsthand the changing role of the function. “During my time in procurement the role and responsibilities within the organisation have changed significantly to a function that is about adding strategic value to the business. In line with that evolution, we’ve also seen the capabilities that are necessary to be successful change too, from a previously more operational or hands-on skill set to almost scientific disciplines around data, the use of analytics or technologies like artificial intelligence and automation,” he says, by way of an introduction.
“This shift has been particularly notable in recent years where we’re all facing multidimensional disruptions, challenges and complexity,” adds Bokämper.
“As a result, business continuity is now the key priority which means building strategically resilient supply chains at competitive cost. We’re all aware of the supply crisis, in our industry the global semiconductor shortage doesn’t show signs of abating, more recently we’re seeing challenges with energy, rising inflation, and conflicts. Whereas previously you might have been dealing with one crisis at a time, it’s more akin to continuous waves at the moment, which places significant stress across the whole network of suppliers and partners. It means a difficult balancing act around thinking operationally and ensuring continuity, while also using resources strategically for the broader business objectives.”
“In the context of the global macroeconomic impacts of the last two years, the biggest challenge and objective driving change in procurement is the need for greater business continuity, resilience and visibility,” affirms Michalak, who
“WHEREAS PREVIOUSLY YOU MIGHT BE DEALING WITH ONE CRISIS AT A TIME, IT’S MORE AKIN TO CONTINUOUS WAVES AT THE MOMENT, WHICH PLACES SIGNIFICANT STRESS ACROSS THE WHOLE NETWORK OF SUPPLIERS AND PARTNERS”
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BODO
BOKÄMPER,
VICE PRESIDENT
DIGITALISATION & PROCESSES, GLOBAL PROCUREMENT
INTELLIGENT COLLABORATION: THE KEY VALUE DRIVER IN DYNAMIC MARKET ENVIRONMENTS AND COMPLEX ECOSYSTEMS
The concept of collaboration and its positive impact on the value chain including respective internal and external ecosystems is nothing new. However, many companies are still facing a variety of factors that hinder them from unleashing the full potential collaboration can deliver.
The increasing number of climate disasters, supply discontinuity, geopolitical disasters as well as the COVID-19 pandemic have put additional pressure on value chains all over the world. The disruption we are facing is a huge opportunity and accelerator towards a broader understanding of how collaboration models should be designed, implemented, and which impact dimensions they should address.
dimensions for future viability. They are heavily impacted by the way we collaborate within our ecosystem.
Intelligent collaboration contributes to a shorter time to market. Especially in the light of con tinuously increasing expectations customized products and services, intelligent collaboration determines customer experience and satisfaction.
The way we look at the impact of intelligent collaboration has significantly changed during the last three years. While a traditional and still valid understanding of collaboration is often focusing on cost, quality, and availability, today’s perspective on the impact of collaboration goes far beyond.
Resilience and the ability to cope with diverse market dynamics based on the anticipation of events within the value chain are important
Innovation and the ability to drive the evolution of raw materials or the way products are designed and produced, are massively affected ration, especially in the light of the ongoing energy transition. Furthermore, sustainability is largely determined by the way we collaborate. Collaboration enables the reduction of CO levels, minimization of warehouse space and transportation, reduction of energy consumption and waste as well as circularity.
In essence, intelligent collaboration is all about setting up a “value network” that has an impact on the top and bottom line.
CHRISTIAN MICHALAK , Executive Vice President | Head of Intelligent Industry Capgemini Invent Germany
Intelligent collaboration ensures resilience, a rapid time to market, and sustainable operations.
WHAT ARE THE CORE ELEMENTS FOR SUCCESSFUL COLLABORATION AND VALUE CREATION?
DIGITAL CONTINUITY
Providing relevant data alongside the entire product lifecycle through seamlessly connecting ideation, engineering, supply chain, sales, and market data.
TECHNOLOGY PLATFORMS
Leveraging platforms that allow access, exchange, and intuitive user experiences to foster continuous, cloud-based collaboration across functional domains, with customers, suppliers, and a broad partner ecosystem involved in the value creation process – while balancing analytics, automation, and data security requirements.
TRANSPARENCY
Creating transparency across the entire ecosystem to enable the tracking of every transaction at any point in the value chain. This specifically includes the ability to not only know what tier 1 partners are doing, but to create a digital twin of the entire value chain, providing visibility across all levels.
PEOPLE AND MINDSET
Building agile teams that are convinced of the idea that working across silos and information exchange will add value. In this context candor, trust, curiosity, and a win-win mindset between the involved partners are key drivers for collaboration.
CXO INVOLVEMENT
Ensuring top management dedication, as intelligent collaboration is not a quick win or a one off action. Commitment is essential to ensure continuous alignment with the overall strategy as well as the availability of time and resources across functional domains, including enabling functions.
www.capgemini.com/invent
has been with Capgemini Invent, Capgemini’s digital innovation, consulting and transformation brand for close to eight years and, in his role as Executive Vice President, Head of Intelligent Industry, Capgemini Invent Germany works closely with clients such as BMW Group to transform their supply chain and procurement operations based on technology and data.
“There are other significant changes, challenges and opportunities facing procurement, too,” he adds. “For example, sustainability is a central topic across all areas at the moment, and there’s also an increasing need to look beyond fulfilling the traditional requirements of the role to influence and take responsibility for innovation by connecting across key departments like engineering, production and quality management.
“It’s also important to understand that, within this context, the bandwidth of categories and technologies procurement manages has increased significantly,” says Michalak. “We’re seeing the convergence of the physical and virtual worlds. As a result procurement is responsible for everything from sourcing software development capacity, through to leading on e-mobility, strategically understanding what services are needed from suppliers, or evaluating pricing structures and the CO2 footprints of new technologies.”
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DIGITALISATION IS KEY
But with any challenge comes opportunity. Both Bokämper and Michalak believe procurement is in a strong position to lead across many of the challenges or market complexities facing the modern organisation, particularly at BMW Group. They cite several factors including the high volumes of data and thus potential visibility the function possesses, the ability of those within the role to collaborate effectively and build and manage strong supplier networks, and the role that procurement plays as the interface and gatekeeper between the teams and departments within the business.
However, in order to successfully deliver across these capabilities Bokämper and Michalak state that digitalisation and the adoption of innovative new technologies is crucial. “Professional digitalisation is a necessity if you want to master today’s and tomorrow’s challenges in procurement,” says Bokämper. “Without it, you have no chance to gain the transparency over complex supply chains that’s needed, or to support the increasing complexity of decision making processes with real-time data and analytics. Digitalisation is also the most effective method of automating and speeding up operational processes, which in turn gives more time to focus on strategic tasks and objectives to unleash additional value.”
Working with leading global businesses to fully embrace transformation opportunities
“THERE’S AN INCREASING NEED TO LOOK BEYOND FULFILLING THE TRADITIONAL REQUIREMENTS OF THE ROLE TO INFLUENCE AND TAKE RESPONSIBILITY FOR INNOVATION”
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CHRISTIAN MICHALAK, EXECUTIVE VICE PRESIDENT | HEAD OF INTELLIGENT INDUSTRY, CAPGEMINI INVENT GERMANY
and combine strategy, technology, data science, as well as the people dimension is a fundamental aspect of Capgemini Invent and Michalak’s work. “There are big opportunities for procurement when it comes to digitalisation,” he explains.
“Efficiency is a very good example, where adopting automation can both help accelerate the speed of existing operational processes and more strategic work. Another is around data, specifically what we call data continuity, whereby we have data alongside the entire value chain
– even beyond procurement – so that we can have a significant impact on decision making, but also have much greater transparency and ability to manage and identify risks better and earlier.
“Additionally, within the context of digitalisation we can improve the way we collaborate with partners and manage the entire supply ecosystem,” adds Michalak. “With connected procurement, we will create a digital platform that enables seamless interaction and real-time data
© CAPGEMINI INVENT 2022. ALL RIGHTS RESERVED.
“THE BIGGEST CHALLENGE AND OBJECTIVE DRIVING CHANGE IN PROCUREMENT IS THE NEED FOR GREATER BUSINESS CONTINUITY, RESILIENCE AND VISIBILITY”
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CHRISTIAN MICHALAK, EXECUTIVE VICE PRESIDENT | HEAD OF INTELLIGENT INDUSTRY, CAPGEMINI INVENT GERMANY
exchange between BMW and its internal and external partner network. In doing so it has a significant impact on efficiency and transparency, but also on the innovation that can result in new business models, services or technologies that procurement is able to take the lead on.”
To enable procurement to deliver on the value it’s capable of driving, Michalak advocates for a target or reference architecture to help overcome the use of old legacy technology systems in areas such as ERP or finance. “We see a trend developing,” he notes. “On the one hand, you have very powerful and advanced standard sourcing and procurement suites and, on the other hand, very innovative, specific applications that are increasingly being used for industry-specific business problems or use cases reflecting the speed of change in the respective markets.
“The challenge is how you balance between the two and how to set up a hybrid solution, whereby you have a standard system that covers core functionalities that you add to with very specific microservices for certain business or operational-critical applications is the developing trend,” adds Michalak. “These hybrid architectures should enable data centricity, continuous release planning to enhance capabilities, and the right interfaces in place to connect the different solutions and enable the data continuity that’s so important across all the data points.”
www.capgemini.com/invent
CONNECTED PROCUREMENT
Over the last three years Bokämper, Michalak and the procurement team at BMW Group have put digitalisation at the heart of a significant transformation programme. Initially the work was centred around solving existing pain points in the procurement processes and digitisation projects with fast payback, particularly important, says Bokämper, in order to win hearts and minds in any successful change programme. This workstream included the creation of applications to supplement existing IT systems, modern dashboards to save time in creating reporting processes, and working with core members of the procurement team such as buyers to nurture and encourage participation in driving change projects and opportunities.
“We established a centrally funded Accelerator process akin to a venture capital-like approach,” says Bokämper, “where we encouraged our operational experts to share and pitch ideas and innovations and to win funding to progress. It was really important to be fast and flexible, and encourage a decision process outside of the standard corporate procedures, and it worked – between an initial pitch of an idea and go-live of an MVP took only six to nine months.”
The projects run by the Accelerator process were within the existing boundaries of operational work. Bokämper, Michalak and the team quickly realised that, to meet
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the rising challenges faced by the industry it was necessary to redesign existing data structures and processes from the ground up, while also replacing legacy IT systems with the newer, hybrid architecture model described by Michalak.
This major project, dubbed Connected Procurement, has a clear direction aligned with four key strategic objectives: process efficiencies through automation, business insights through real-time analytics, collaboration with internal and external partners, and enabling people in digital skills.
“We saw we needed to do something bigger,” Bokämper states. “Data continuity was the fundamental starting point upon which we could build on top. Getting data structures right and ensuring data is linked correctly is probably one of the more difficult or complex pieces of work, but it’s really essential. In our case, we’re not only talking about procurement either. Rather, we’ve worked across the entire business with engineering, finance and logistics departments to build that continuity and address the relevant pain points we had around data. This was also the catalyst for redesigning our IT systems.”
Throughout the work Capgemini Invent has proved an essential partner. “It’s an exciting opportunity because the transformation work being done isn’t just limited to operational and strategic procurement, but impacts the entire business,”
Michalak states. “The value and benefits will include greater profitability, shorter time to market, better sustainability standards, improved resilience within the supply chain, more transparency over supplier risk because of the data available, and the ability to support strategic buyers with comprehensive information and analysis. It’s why we call the work Connected Procurement, it’s not about having one single tower solution, but rather working across the business and integrating with other process elements and departments; it’s from this level of connection that we can derive real value.”
INNOVATION AND COLLABORATION
Collaboration and shared ideas have played a central role in the procurement transformation journey to date. In particular, when it comes to innovation and pioneering technology both Bokämper and Michalak are strong advocates of working closely with startup organisations, both in Germany and further afield. “To not work with these kinds of companies just isn’t an option for a business like BMW because it would mean not making use of a valuable source of innovation and people that aren’t afraid to challenge the status quo or dare to have different ideas,” says Bokämper.
The objective when approaching this kind of collaboration, he says, is to make the relationship between startup businesses and BMW Group as smooth and unbureaucratic as possible. To achieve
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The Backbone for Seamless Collaboration and Innovation in Complex Supply Chains.
Continuous RFx collaboration across departments and multiple tiers.
This case study is about a quantum leap digitalization project at BMW Group to enhance collaboration among procurement, engineering, and other divisions as well as suppliers and partners with new car projects.
Business Challenges
In the development process of a car, complex technical and commercial data need to be frequently exchanged, discussed, and updated among many internal as well as external process partners.
Current ways of collaboration show the following pain points:
Lack of transparency regarding document versions, statuses, and changes
High manual efforts to synchronize data along the n-tier supply chain
IT system breaks, especially to partners outside own organization
Solution Summary
Cesonia offers a unique cross-enterprise collaboration platform that goes beyond the capabilities of current CLM systems, with its USP in tracking and synchronizing individual objects rather than entire documents. Thanks to individual workflows that can be defined for single objects, technical alignments are routed to engineering while alignment of payment terms are routed to procurement.
Cesonia provides real-time transparency about the level of alignment and the issues that need to be solved
Outcome & Benefits
BMW Group’s openness to team up with us as a startup and their decision to use the Cesonia collaboration platform has been a great opportunity to demonstrate the following benefits of our solution:
Speed: shortening the RFQ process
Efficiency: elimination of manual process steps
Innovation: integration of innovative ideas of external partners
We greatly appreciate the cooperative partnership with BMW and look forward to be part of shaping the future of direct purchasing together
User Quote
“The tool gives me clear transparency about the coordination status with partners at all times and shows me any need for action in a simple way.”
Providing a single point of truth as well as a uniform data view for transparent collaboration across company boundaries with all process partners in real-time. Selective transfer of data from OEM to n-tier supplier for end-to-end processes and communication in real-time and maximum transparency of coordination status. Breaking up documents for coordinating, discussing, and evaluating individual objects like single paragraphs or requirements in context with each other thanks to a digital twin. End-to-end collaboration in the n-tier chain Single Point of Truth Object-and context-based collaboration
Korbinian Sontheim, Co-Founder I CEO sontheim@cesonia.io, +49 89 443 111 76 100
Marcus Worm, Head of Business Development worm@cesonia.io, +49 89 443 111 76 103
this, several initiatives have been put in place, including the Startup Garage, which acts as a first point of contact for startups where BMW experts can evaluate how products and services can be applied within the organisation and facilitate connection with the relevant departments in the group. Additionally, the business has introduced Newcomer Day, a new format that gives startups the opportunity to pitch ideas to BMW Group, including a presentation to the company’s Board of Management members.
“Our recognition of the importance of startups was recently reflected in our BMW Group Supplier Innovation Awards,” says Bokämper. “Out of the six award categories we have one dedicated explicitly to startups. To give you an example of how important these relationships have been, one pain point was in how in the early concept phase, or the nomination process, large amounts of largely document-based information is exchanged between partners, which presents a significant workload and the possibility of not receiving the correct information. We identified Cesonia, an innovative startup business that has developed some really unique
“PROFESSIONAL DIGITALISATION IS A NECESSITY IF YOU WANT TO MASTER TODAY’S AND TOMORROW’S CHALLENGES IN PROCUREMENT”
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BODO BOKÄMPER, VICE PRESIDENT DIGITALISATION & PROCESSES, GLOBAL PROCUREMENT
approaches to managing the complexity of this project while also simplifying the workload for participants; it is a really positive experience for everyone involved.
“Throughout the Connected Procurement journey we’ve addressed the challenge of collaboration, both with startups and across our entire network,” he continues. “Personally, I’m absolutely convinced that you can build a competitive advantage if you’re able to master collaboration better than others. It makes the relationships easier and more effective, you’re able to bring more engaged partners on board, the processes become faster, the data better and, ultimately, you have better outcomes.”
There is no end to a transformation journey, particularly one of the scale that Bokämper, Michalak and team are bringing to BMW Group. Since starting, numerous digitalisation projects have been completed, constantly delivering
value to the company through efficiency gains and new business insights. “The way we’ve approached the work is really important,” Michalak explains. “The aim was always to put data at the heart of how procurement works. We started small, building a small, core team with defined targets and which was value and impact-centric, which allowed us to deliver very fast and tangible results. As we scale, we’re seeing the momentum and a willingness within the business to engage in the transformation, particularly from the young talent in BMW. It’s exciting to see and a great accelerator from a broader change perspective.
“We’re talking about a moving, if not accelerating, target,” concludes Bokämper.
“Anyone that thinks they can reach a certain point and stop on such a journey, has not quite understood digitalisation. The ambition for me is to create the most advanced and automated procurement process that will enable our function to master the current and future challenges. To maintain that ambition will take a lot of work, the ability to always be hungry for more success, and collective mindset of continuously challenging ourselves to be even better. Most importantly, people are realising they have the opportunity to shape something here, and that’s generating a lot of excitement. If you’re able to tap into the creativity and culture that feeling creates, the potential for success is huge.”
www.bmw.com
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MANNA
DELIVERY MADE SIMPLE
There’s more to sustainable retail and delivery than just being all-electric or zero emission. Although Manna does that very well. What about supporting local businesses? Or removing traffic from urban areas to clean up safety records as well as the air? Or even delivering everything to you using biodegradable technology? Manna does all that, too.
The Irish business, founded in 2018, uses custom-designed and built all-electric drones to achieve its mission: to improve the world by making lightning-fast suburban deliveries affordable, green and safe. It delivers food and drinks, medical supplies and other consumer goods from
local businesses to customers within a 2km radius – and does so within just three minutes. The process is controlled by an app, through which customers order, the store packs the goods in sustainable packaging and the drone delivers the package, which is lowered on a biodegradable thread that can be composted.
Urban drone delivery, says Manna, is faster thus giving customers greater freedom, makes cities and urban areas safer and greener, creates less noise pollution, and offers greater security – no sensitive customer data is stored and all orders are delivered directto-door in private packaging.
www.manna.aero
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“Our mission is to improve the world by making lightning-fast suburban deliveries affordable, green and safe’”
Artisans and innovators
People, culture and the art of supply chain transformation in luxury fashion, according to Nico Dapoto
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Culture, craftsmanship, creativity and, of course, incredible products. The world of luxury fashion is as intoxicating as it is interesting. Which is why an hour spent with Nico Dapoto discussing his love affair with the industry, the fascinating intricacies of managing the supply chains upon which some of the world’s most famous brands – Gucci, Chanel, Dior, Louis Vuitton, Hugo Boss [we could continue] – rely, and the challenges and satisfaction found in bringing cutting-edge technology to a world of artisans, designers and artistry, is time well spent.
Dapoto lives and breathes luxury fashion as much as he does supply chain innovation – his career prior to his current role reading like a who’s who of global fashion locations and brands: Brazil, Sweden, New York, Dubai, Italy, luxury eyewear maker Luxottica, the Middle East’s leading luxury fashion partner Chalhoub Group, and globally-renowned apparel brand Brooks Brothers to name a few. That his comment ‘we dressed most of the Presidents of the United States’ appears almost throwaway when discussing the latter is testament to the breadth of his experience, knowledge and standing in the industry.
chains in an industry still dominated by traditional craftsmen and women and their hand-crafted creative output, of an innate understanding of different cultures and their respective impact on the business decision making process and, perhaps most importantly, an understanding of the role of the people at the heart of all this.
And it’s his globetrotting and international background to date that’s shaped both his success in previous roles, and his approach to his work in his current role as Chief Supply Chain Officer at Chargeurs PCC, the number one inner component solutions provider in the world from athleisure to haute couture and everything in between, where he and his team are embarking on a total digital supply chain transformation. All we had to do was track him down between flights…
But Dapoto’s story is one based on more than just luxury garments. Rather, it is about a passion for engineering and innovative technologies, a consistent and successful record of digitally transforming supply
“I basically live on aeroplanes at the moment,” he laughs, hinting at the pace of change across Chargeurs PCC’s global network. “Every three or four days I have a flight. I have to, we’re instigating major change and adapting our whole supply chain. A few weeks ago I was in Singapore, Vietnam, and Indonesia. I’m waiting for China to open so I can visit, and I’m onboarding people at our sites in France and Milan. It’s essential from a business perspective but it’s also important to immerse yourself in different cultures and with different people; it reminds me that each of us has different stories, experiences and events that really shape our journeys.”
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“I learned the importance of people and how bringing a human-centric approach to what you do is crucial. That’s particularly true in any technology transformation”
Technologies to make your business smarter and more profitable
Operational Research Systems (ORS) is an operations research and applied AI firm focused on the supply chain domain, powered by 200+ proprietary AI/ML engines specifically designed for retail and manufacturing industry and a team of industry SMEs (supply chain, AI, operational research experts) to help organizations manage supply chain risk, AI based planning, optimization, and forecasting.
We also offer a digital twin for supply chain scenario analysis and risk modeling backed by over twenty years of research in applied math and AI. Our clients include global fashion brands, retail firms and manufacturing firms as well as mid-sized firms such as as Chargeurs PCC. These brands use our Digital Twin to evaluate and optimize supply side, demand side and operational risks within their supply chains.
EXPLORE MORE
ORS is a Dedagroup company www.deda.group www.ors.ai
CULTURE, TECHNOLOGY AND TRANSFORMATION
And it’s always been this way for Dapoto. An industrial engineer by background, the opportunity to travel, study, and work in Sweden and Brazil kicked off his international experience. “It was a great time,” he explains, “during which I had the opportunity to meet many different cultures, hear and engage with different points of view, backgrounds and mindsets. It taught me the importance of people and how bringing a human-centric approach to what you do is crucial. That’s particularly true in any technology transformation.”
This mindset has proved a key part of Dapoto’s success over his career in supply chain, one in which he has successfully developed and led digital transformation programmes centred around bringing greater analysis, prediction, forecasting and visibility to global supply chains that, over the years, have faced increasing challenges, complexity, and disruption. Take his early experience at luxury eyewear company Luxottica, where he immersed himself in supply chain technology and demand planning tools, as an example.
“It’s where I fell in love with supply chain,” he remembers. “It was really innovative. I loved the core values of the team and the wider business which were about being entrepreneurial, passionate, simple, and faster. I’ve brought that ethos with me ever since. We were selling and distributing eyewear from brands like
Ray-Ban, Oakley, Versace, Tiffany, Dolce & Gabbana, Michael Kors and more all around the world so forecasting, predicting and analysing customer behaviour across these markets was essential. It was in this role I had my first opportunity to redesign the Luxottica demand planning tool, including reviewing the design of all the forecasting and demand planning technologies in the business. It’s where I really began my deep involvement with the technology side of the supply chain.”
In line with both the developing industry and the evolving expectations of customers, demand planning and the use of advanced technologies to accurately predict, forecast and manage risk has become increasingly important. When Dapoto left Luxottica for a move to New York and the
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Nico Dapoto, Chief Supply Chain Officer, Chargeurs PCC
prestigious Brooks Brothers, his work with technology in the supply chain continued to develop.
“New York is a different pace of life. It moves fast, but that pace of change inspired a lot of the work we did at Brooks Brothers,” he says. “We developed the supply chain from a small team and designed and introduced planning tools – demand planning, master production scheduling, automated replenishment and allocation, among others – all from scratch, which we rolled out worldwide. It was the start of a significant transformation, which we collaborated on with ORS Group, an Italian company specialising in optimisation software that I’m working with again for our current transformation at Chargeurs.
“This was a real collaborative effort in which we worked on advanced analytics to understand consumer behaviour, on pricing and promotion tools – essential in fashion retail – we developed a master production scheduler for our US factories to improve production and capacity planning and scheduling, and I led the development of automating the replenishment allocation for all our stores,” explains Dapoto. “We worked heavily on the introduction of AI and the use of different algorithms to gain competitive advantage and the creation of order management and financial merchandise planning tools. It was a complete transformation involving a full scope planning platform, and ORS was essential to that.”
A spell in Dubai followed at Chalhoub Group, the Middle East’s leading partner for fashion and beauty companies, where Dapoto was Head of Supply Chain of the Fashion BU working for the likes of Stella McCartney, Dolce & Gabbana, Versace, Michael Kors and more. Here, he headed a supply chain transformation designed to meet growing demand for luxury products and the growth strategy of the business, including a strong focus on hiring supply chain talent. In April 2022 he joined Chargeurs PCC, hired specifically to lead on the supply chain transformation that he and his colleagues are still driving, and which is centred around greater demand planning, agility, and resiliency.
“It’s absolutely essential to better plan, understand potential risks and demand, and build a network that’s capable of reacting very quickly”
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customers expect their products here and now, we have new technologies like AI, machine learning, blockchain and more changing the way we work and deliver services, and so we have to respond. At the same time, we’re experiencing huge geopolitical disruption because of the pandemic which has severely impacted the effectiveness of global supply chains, as well as customer demand – at Brooks Brothers during the pandemic we witnessed a 300-400% rise in sales of comfortable clothing and a drop in suits, ties, and shirts just because of lockdowns and people working from home.
SUPPLY CHAIN EVOLUTION
Over this period the supply chain – indeed, the world – has changed immeasurably. The COVID-19 pandemic and resulting lockdown, evolving customer expectations around greater online connectivity and sustainable credentials, new ways of working and living, inflation, and climate disasters have all impacted the way supply chain professionals work. They’ve also heightened the need for greater demand planning, predictive analytics, visibility and transparency, and effective risk management to mitigate ongoing disruption.
“The world is getting faster and more complex,” says Dapoto. “We’re hyper-connected,
“At the same time, transportation and raw material costs have increased significantly, which affects production and shipping activities,” he adds. “There is also price uncertainty around China, where many companies who have based their manufacturing for years are now leaving for other locations. It’s a level of uncertainty that global fashion brands like ours just can’t afford to have, so from a supply chain perspective, it means it’s absolutely essential to better plan, understand potential risks and demand, and build a network that’s capable of reacting very quickly.”
Technology, as Dapoto has advocated throughout his career, is crucial to achieving this. “There’s been a huge switch in the way that most in the supply chain look at technology,” he says. “We need tools that help us react faster, give more
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“I’m a firm believer that technology has to fit with the people and culture, not the other way around”
visibility, and inform the kind of real-time decision making and planning that’s necessary. Our industry has tended to be behind others when it comes to this kind of innovation; it’s one built on the work of craftspeople, artisanal products and led by creative minds, so no one has really talked about supply chain digitalisation or technology.
“That’s changed. Most now realise it’s a game changer and no longer an option, but a must,” states Dapoto. “Aside from disruption, it’s essential to managing customer and brand expectations. We have incredible and beautiful craftsmanship and fantastic products, but that’s no longer enough alone to reach customers worldwide. A big part of our work is around predicting behaviour. You have to know your customers better than they know themselves in order to anticipate their needs and use data that’s accurate enough to make decisions based on that analysis. It’s where things like AI, machine learning, RPA and predictive analytics make the difference.”
TOTAL SUPPLY CHAIN TRANSFORMATION
Dapoto and his team, together with longtime collaborator ORS, have been making a difference for the better part of a year since his joining the company in spring 2022. “Chargeurs PCC is recognised in the industry as the leading interlining maker which, while you don’t necessarily see it, is an essential part of any clothing – we call it ‘the soul of the garment'," he says.
"We selll to 7000+ customers worldwide, including most of the leading luxury fashion houses. As a result, we’re a global operation with more than 30 warehouses in key locations but, because of the increasing disruption and complexity, the objective is to build a stronger, digitally-enabled supply chain that is the backbone of our growth.”
The project, as Dapoto explains, involves a total transformation of the company’s supply chain, covering planning, procurement, shipping and warehousing and also including investment in a central control tower to give greater visibility. “We started the work two months after I joined and I brought ORS on board to help us develop the whole planning platform based on the work we had done together at Brooks Brothers – they’re a great company based in the north of Italy, with an excellent approach to software development.
“We’ve invested heavily in technology based around a very firm idea of what we want,” he says. “That’s a platform that covers every aspect of planning: demand forecasting based on AI and machine learning, inventory and distribution planning worldwide, all aspects of production planning, capacity planning, and master production scheduling across all our factories. ORS is our global partner in helping to build the layers of technology that will enable us to meet this objective while remaining a reliable partner to the brands we work with.”
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Technology is an essential aspect of any such transformation but, as an experienced leader Dapoto is acutely aware of the importance of having in place the right culture, collective mindset and people to enable change. As part of the transformation programme, he explains, Chargeurs PCC is also investing in training and recruiting.
“People are the most important resource. They’re also the most complex to manage,” he notes. “Technology is something I love, and that I’ve been closely related to through my whole career, but it’s only a part of the puzzle. Ultimately any technology we use is made by people and used by them, so we have to go right back to
a human-centric approach every time. When we talk about leadership, we’re leaders of humans not machines, so it’s important to remember that the culture and the ways in which we work are what shapes a company, that’s even more true now post-COVID, where we have to collectively learn to live with uncertainty and be comfortable outside our comfort zones.
“From the perspective of leaders, that means engaging with people, listening, caring, and understanding,” continues Dapoto. “I’m a firm believer that technology has to fit with the people and culture, not the other way around. In any transformation I work very hard on the change management aspect, communicating
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across the company at all levels and ensuring everyone is on board with the change that’s happening. In our current work, we’re focused heavily on bringing new skills into the company and also updating and improving our processes across the value chain.”
While only close to a year into the work, the sweeping change programme is already bringing benefits to the business ahead of a planned full digital rollout starting 2023. Dapoto cites improvements in sustainability across the value chain as an example. “We won the Climate Action Award at the CNMI Sustainable Fashion Awards 2022, held during Milan’s Fashion Week this year, rewarding the
NATIVA™ Regenerative Agriculture Program project, launched by Gucci in Uruguay in collaboration with Chargeurs Luxury Fibers, our sister company, one of the largest wool processors in the world. It’s a project that involved 10 farms, including La Soledad, led by Gabriela Bordabehere. We track the production process using blockchain technology, which gives us visibility over every stage of its journey and effectively acts as a sustainable guarantee for the product.
“More broadly, we’re moving in the right direction with the project going as planned for a full rollout worldwide from the beginning of 2023,” he says. “We also have a project to review our ERP and optimise it globally and also bring in new talent at our sites in France, Italy and Singapore. We learned over the last years that everything is uncertain and so, while rolling this out, there are several events we’re monitoring including the evolution of our customers’ behaviour, inflation and slowing of demand. But this is the reality now and I’m a firm believer that, with every challenge comes opportunity. The work we’re doing now will mean we’re ready to take these opportunities, be nimble and flexible enough to grow and expand as a business and continue our success.”
www.chargeurs-pcc.com
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“When we talk about leadership, we’re leaders of humans not machines”
ROB LANELLI
When Rob Lanelli created Norton Point, a pupose-led brand that introduced the concept of using recycled ocean plastics in eyewear in 2016, he saw a problem.
Navigating the fragmented and disorganised ocean plastic sector was a challenge for brands wanting to make a difference. There was space for someone to close the gap on supply and meet consumer demand, to understand the nuances of global supply chains and connect those supply chains with environmentally friendly materials. So he created Oceanworks.
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The business is a sourcing engine for responsible plastics that, through a global network of collectors and recycled plastic suppliers, enables brands to measure their plastic footprint, fund plastic waste removal, find suitable alternatives, and track their supply chains from store to shelf. Through this network it processes hundreds of tons of recycled plastic annually, collaborating with socially responsible brands to contribute to a cleaner environment and improve supply chain transparency. www.oceanworks.co
“As an entrepreneur, solving large problems is an addictive habit. Thinking about what Oceanworks could accomplish and the chance to build an entirely new industry was something you don’t usually get a shot at in life”
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Rob Lanelli, Founder and President, Oceanworks
AT ONE WITH NATURE
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DISCOVERY, FREEDOM, RESPECT FOR NATURE AND TOTAL COMMITMENT TO SUSTAINABILITY: LIFE, THE JACK WOLFSKIN WAY
No compromise. It’s the only way to live, to discover, adventure, and connect with the beauty of nature, or to get out there – wherever there is – lead the way and make a difference. And never look back while you’re doing it. That’s as true for performance apparel brand Jack Wolfskin as it is for the millions of people that, for 40 years, have embraced its endearing and visionary dedication to the wilderness, freedom and respect for the natural world.
The German brand, founded by Ulrich Dausien in 1981, lives and breathes sustainability, fairness, environmental awareness and corporate social responsibility. So much so that, for the company and its global community, living to discover means not only exploring the world, but doing everything possible to preserve and protect it.
All Jack Wolfskin’s sustainably designed performance apparel, footwear and equipment is rooted in a powerful sustainable ethos and designed and developed around ethical products, strict animal welfare standards, and the promotion of fair and humane working conditions.
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The company uses only 100% certified organic cotton in its products and strictly prohibits the use of chemicals fertilisers and pesticides; it’s a pioneer in recycled materials and the setting of stringent requirements for its network of leather suppliers; it only uses down sourced from ethical sources that prioritise animal welfare; and nanoparticles are banned from all Jack Wolfskin products, as is Angora wool, PVC, real fur, and perfluorocarbons.
To reinforce this ethos, the brand is a member of the Fair Wear Foundation, an independent, notfor-profit organisation that works to improve conditions in garment factories. It’s also a bluesign system partner, an initiative that holds supply chains to account on their sustainability credentials. Due to the complexity of the product making process – to make just one jacket involves more than 200 factories, for example – and the stringent standards Jack Wolfskin
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“TO MAKE JUST ONE JACKET INVOLVES MORE THAN 200 FACTORIES”
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“TO US, CONSUMER TRUST MATTERS”
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lives by, it’s essential that all product supply chains are sustainably managed and entirely transparent.
In 2014 the company took the pioneering step of publishing its entire supply chain, including the extent to which ecological and social standards are implemented and full disclosure of suppliers’ audit results to mutually pursue a path to fair wages, safe working conditions and reasonable working hours.
Similarly, unique codes on an item of clothing allow customers to trace its supply chain journey, and access supplier sustainability information and the results of the regular supplier checks Jack Wolfskin conducts. The company also ensures that the majority of its
suppliers also adhere to the bluesign system, which checks every aspect of a product’s manufacturing from the chemicals involved at the start through to the finished item of clothing.
Elsewhere commitment to reducing C0 2 emissions and the use of 100% green electricity, advocating eco-friendly mobility solutions, enbcouraging biodiversity at its sites, supporting social organisations, using green packaging and more means Jack Wolfskin sets the standard for sustainable supply chains and products. After all, there’s a whole world out there; why not save it while you’re experiencing it?
www. jack-wolfskin.com
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“ALL JACK WOLFSKIN’S PERFORMANCE APPAREL, FOOTWEAR AND EQUIPMENT IS ROOTED IN A POWERFUL SUSTAINABLE ETHOS”
YEAR OF THE SUPPLY CHAIN
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IVALUA’S ALEX SARIC TAKES A LOOK AT HOW A DISRUPTED AND TUMULTUOUS 2022 MAY IMPACT SUPPLY CHAINS, PROCUREMENT FUNCTIONS, AND THEIR LEADERS NEXT YEAR
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For yet another year, the UK faced wave after wave of ongoing disruption stemming from the aftershocks of the COVID-19 pandemic, the war in Ukraine, and the ongoing effects of Brexit. As a result, businesses and the general public are acknowledging the necessity of strong procurement and supply chain functions. However, many companies still feel on the ropes when it comes to predicting and protecting against the crises of the year ahead.
With the dark clouds of inflation and global recession looming, and the real impact of Brexit yet to be felt, 2023 needs to be the year everyone takes stock of the procurement function. With that in mind, here are three procurement predictions for the year ahead.
PROCUREMENT TEAMS WILL STILL FEEL THE PRESSURE
For organisations, 2022 was a tumultuous year. We witnessed ripples from the pandemic, the energy crisis, geopolitical issues, and rising bills pushing supply chains to the brink. In 2023, procurement teams will remain under more pressure to respond to these challenges, but too few are being supported in this effort. Just 21% of procurement teams have seen a headcount increase on their team, while only 14% have received additional budget.
suppliers. Firms should capture data from businesses, third parties and suppliers, and link that data together to provide a 360-degree view of everything that’s happening in the supply chain. With this total view of supplier activity, organisations can anticipate future supply disruption and shortages to weather the storm ahead.
REAL ACTION IS NEEDED TO FIRM UP GREEN CLAIMS IN 2023
In the coming year, as the pressure rises to respond to disruptions, procurement teams will also have to ensure that words must turn to action on sustainability. Organisations have a vital part to play in combating climate change by creating more sustainable supply chains, as Scope 3 emissions are the source of approximately 70% of business carbon emissions. Despite bold plans to cut emissions being put forward at COP27, the UN has warned they fall far short of what is needed to avoid catastrophic climate change. More regulations will also come into force, including requirements for listed businesses to start publishing their net zero plans. Firms now have no choice but to ensure they have concrete proposals in place to improve sustainability.
However, this pressure can be eased if procurement teams are armed with the right technology to improve transparency and collaboration between businesses and
But turning these words into action starts with assessing suppliers and improving visibility into tier one and sub-tier suppliers to ensure unsustainable practices do not slip through the net. Not only will this prevent organisations being caught off guard in the short and long term, but it is
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also significant for laying out an organisation’s green future in 2023 and beyond. Failure to do so could see businesses alienate customers increasingly sensitive to greenwashing, fall foul of regulations, and become irrelevant in an eco-driven world.
BUSINESSES HAVE A RESPONSIBILITY TO PAY SUPPLIERS ON TIME
As recession looms on the horizon, 2023 will see us edge closer than ever to a global cash flow crisis. At the same time we are seeing a shift from buyer to supplier driven markets. Rising energy bills, inflation, and a turbulent geopolitical environment are all contributing to
intense financial strain for both businesses and suppliers – leading to 36% of businesses extending payment terms for suppliers in the last 12 months. Paying suppliers late negatively impacts cash flow and liquidity, creating further late payments down the line and contributing to a vicious cycle for organisations and their supply chains.
Next year, businesses will have a greater responsibility to pay suppliers on time. This will require smarter invoice processing and a shift in mindset around supplier payments. Rather than breaking supply chains, organisations will need to use
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“BUSINESSES MUST ALSO FOCUS ON INCREASING COLLABORATION WITH SUPPLIERS, ENABLING THEM ACCESS TO THE TOOLSX TO WORK TOGETHER BETTER, AND SHARE INNOVATIONS OR SUPPLY FORECAST”
payment more strategically. For example, using dynamic discounting, financing and flexible next-day payments.
This allows organisations to secure better rates for goods and motivate suppliers to deliver on time. The result will be improved supplier relationships and supply chain resilience that puts organisations ahead of short-sighted competitors. This shift will reduce the risk of a global cash flow crisis, but also bring long-term strategic benefit. Including helping to gain favour with key suppliers, lowering the cost of goods and services, and securing them at a time of short supply. Critically, it will attract much needed innovation through collaboration with suppliers.
MAKING 2023 THE ‘YEAR OF THE SUPPLY CHAIN’
As we cast our eyes forward to another year of potential disruptions, and hopefully more sustainable practices, one thing is clear: businesses must make procurement a key priority. This will put them in the best possible position to deal with supply shortages, meet green claims, and ensure they gain an edge over competitors.
This will require taking a smarter approach to procurement, ensuring firms can build a solid data foundation. By rethinking their supply chain, organisations can understand what to look for in new suppliers, develop stronger partnerships with existing ones,
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“PRESSURE CAN BE EASED IF PROCUREMENT TEAMS ARE ARMED WITH THE RIGHT TECHNOLOGY TO IMPROVE TRANSPARENCY AND COLLABORATION BETWEEN BUSINESSES AND SUPPLIERS
and gain access to more intelligent insights. By increasing visibility in this way, they can also identify areas of weakness and drive continuous improvement.
Businesses must also focus on increasing collaboration with suppliers, enabling them access to the tools to work together better, and share innovations or supply forecasts. This will help them work together to achieve strategic objectives. Not only will this be key to avoiding more disruption, but it will be absolutely essential to reducing carbon emissions and mitigating the impact of inflation on profitability. So, let’s see businesses take a refreshed look at procurement and make this the ‘year of the supply chain’.
Alex is a smart procurement expert at Ivalua. He has spent over 15 years of his career evangelising spend management, shaping its evolution and working closely with hundreds of customers to support their digital transformation journeys. As CMO at Ivalua, he leads overall marketing strategy and thought leadership programmes.
www.ivalua.com
Alex Saric
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A M S T E R D A M
Welcome to Amsterdam, the capital city of the Netherlands, a place of artistic heritage, culture, stunning architecture, canals and, more recently, innovative tech businesses. Today, Amsterdam is a thriving tech hub, home to industry giants, digitally-driven companies and a buzzing startup scene. The Dutch capital is considered one of Europe’s most liveable cities recognised for its excellent work-life balance – workers in the city apparently put in an average of 30.4 hours a week and get an average of 8.45 hours’ sleep per night. It’s also a great place to do business; the Netherlands is one of the world’s best markets for tech companies and Amsterdam hosts the likes of Netflix, Tesla, Miele X and more. Here, 5Values’ Tom White shows us around.
EAT SLEEP
WORK PLAY ETEN SLAAP WERK SPEEL
WORDS TOM WHITE
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I first started travelling to Amsterdam for work in early 2013, nearly a decade ago and I was always struck by the thirst for innovation in the city, particularly the ambition the government had for foreign investment and technological advancements. It’s why we opened our business there in 2017.
The Oosterdok is my favourite part of the city, watching the hustle and bustle of the central station and the myriad of businesses and development.
Amsterdam has many co-working and collaborative spaces, they were leaders in this when WeWork was just an idea. If you want to explore, you could try Plant 22, a creative co-working space in Amsterdam-West that’s home to eight work stations, a full kitchen and meeting rooms. StartDock is also worth a visit. It’s a community-driven co-working space packed with entrepreneurs and a good spot to find a desk or private office if you need to catch up on work.
BUSINESS
STARTDOCK XXXXX
PLANT 22
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OOSTERDOK
THE
STAY
Amsterdam has some great places to stay, whatever you’re looking for. If you really want to immerse yourself in local life then you can’t get more Dutch than the Inntel Hotels Amsterdam Zaandam, it’s a pretty unique building that looks like something out of a fairytale and, inside, has a great spa too.
If you want to get in the heart of the city, try The Hoxton . Rich in history and full of local buzz, it’s a great boutique
experience and a good place to sleep, eat and drink. It’s also located on The Nine Streets, a popular and trendy area packed with independent shops and great restaurants.
THE HOXTON
THE NINE STREETS
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INNTEL HOTELS AMSTERDAM ZAANDAM
TOM WHITE CEO, 5VALUES
With offices of his specialist IoT and Video Talent Solutions firm, 5Values, in Bristol, Amsterdam, London, Munich and Miami, entrepreneur and CEO Tom White is the recipient of numerous industry awards for his extensive industry knowhow, and recognition of his successful business career to date. For more than 15 years, Tom has overseen high profile recruitment campaigns for multina tionals and, as the host of the 5V Podcast on IoT and Deep Tech (number-one rated on Google), was recognised among the ‘Who’s Who of IoT in 2022’.
www.weare5values.com
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THE PURCHASER
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SENSES RESTAURANT
EAT / DRINK
The city’s food scene has something for everyone. Senses Restaurant is a fantastic fine dining venue and an awe to behold. It’s open kitchen gives you a good view of the ‘food art’ that Chef Jan Wijnbergen, Sous Chef Koen van Kempen and Luuk Kreutzelman create for both lunch and dinner eating.
Restaurant de Waaghals is a relaxed vegetarian restaurant that’s been around in the city since the 80s and is another
great place to visit. It’s also in the best area of the city, the De Pijp district. Grab a Bitterballen and an Amstel, and watch the world go by.
The Raddison Blu on Oosterdok is well worth a visit, particularly the Sky Bar, where you can enjoy views right across the city.
DE PIJP DISTRICT
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RESTAURANT DE WAAGHALS
LEISURE
You’re spoilt for choice when it comes to down time. If you’ve not listened to a podcast or audible book whilst power walking around Vondelpark , then who even are you?! If you fancy something a little more lively then take a 20-minute Uber ride to the beach. That’s right, Amsterdam has a beach too. Volleyball on Sloterplas is a sunny Saturday delight.
SLOTERPLAS © IAMSTERDAM/MAARTEN BRANTE
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THE RADDISON BLU
VONDELPARK
glob A l e V ents CA len D e R
PROCURECON MARKETING CONNECT
06–07 DEC 2023 | St Albans, UK
An invitation-only forum where senior marketing procurement executives from Europe’s top advertisers connect one-to-one.
> VISIT WEBSITE
MANIFEST VEGAS
31 JAN –02 FEB 2023 | Las Vegas USA
Manifest Vegas brings together the most comprehensive ecosystem of innovation and transformation in supply chain and logistics.
> VISIT WEBSITE
AMERICAS PROCUREMENT CONGRESS 2023
21–22 MAR 2023 | Miami USA
The region’s most impressive leaders are handpicked to share success stories and exclusive behind-the-scenes insights from their organisation.
> VISIT WEBSITE
NATIONAL PROCUREMENT SUMMIT 2023
20 APR 2023 | Milton Keynes, UK
A gathering of over 1,000 procurement directors, sourcing directors, senior management and supply chain directors.
> VISIT WEBSITE
GARTNER SUPPLY CHAIN
SYMPOSIUM/XPO
08–10 MAY 2023 | Florida, USA
The 2023 conference will explore big ideas and deliver actionable insights to help supply chain leaders.
> VISIT WEBSITE
WORLD PROCUREMENT CONGRESS 2023
23–25 MAY 2023 | London, UK
The world’s premier, most senior procurement event. A place to connect leaders, solve challenges and bring ideas that change the world, together.
> VISIT WEBSITE
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