The Purchaser Issue 8

FOR EXECUTIVES, BUSINESS LEADERS AND INNOVATORS

Tech-Exec explores the fundamental technologies, trends and leaders affecting business and enterprise, the c-suite and society. It provides insight, analysis and thought-leadership on those technologies driving change, and considers how emerging innovations are influencing the leaders of tomorrow.

Tech-ExecMagazine.com

Irrespective of how many times the topic comes up, there’s always something captivating and affirming about discussions on people and the importance of culture or mindset, and hearing someone talk on these themes with real passion. It is passion, after all, that drives some of the best results.

You’ll find plenty of passion in this issue. Take Karine Waksman as an example. Formerly Head of Procurement and Logistics at Vodafone Ireland, she is a firm advocate for the power of collaboration to push transformation work, for the strength and capabilities of the group of procurement professionals she led at Vodafone, and for the power of effective leadership. In this instance, she describes her approach as ‘creating an environment and

place where people are free to be their best, for the business and themselves’.

Similar topics can be found in our chat with Andy Waterhouse, Head of Supplier Performance Management at Farah Experiences. Unlike some in procurement, Waterhouse arrived from a performance and HR background and it shows. He’s a dedicated and passionate leader who values the human element in the profession and the traits like communication, relationship building and personal drive. He also confirms just what it’s like running procurement at some of the world’s most famous theme parks: ‘amazing’. As if you’d expected anything else…

I particularly enjoyed my time with GOT BAG founder Benny Mandos, a man with dedication and passion in bucket loads. Mandos, a self-confessed ocean lover, is spearheading a unique and innovative way to turn plastic pollution in the sea into backpacks. It’s inspiring stuff.

Enjoy this issue.

Matt

Content Director Matt High

Creative Directors

Daniel Crawford

Steve Shipley

Marketing Director Jack Pascall

Project Director Manuel Navarro

Managing Director Charlotte Clarke

Managing Director James Pepper

Stroud & Clarke is a multichannel creative agency that produces exceptional

58

46 | INTERVIEW ROCHE

On driving a next-generation procurement revolution

58 | PERSPECTIVE AI: BEYOND THE HYPE

AI in procurement? It’s time to embrace it, says BT Sourced’s Cyril Pourrat

62 | INTERVIEW

FARAH EXPERIENCES

On the importance of people, partnerships and performance

76 | LEADERSHIP PEOPLE, PLANET, PROFIT

Amazon Business’ Molly Dobson on purpose-driven supply chains

62 76

82 | DISRUPTOR MATTERNET

Elegant, architectural and the future of urban drone delivery

84 | CITY GUIDE BUDAPEST

Business and pleasure in the Hungarian capital

92 | CALENDAR EVENTS

At the start of January New York State Senator Alessandra Biaggi and Assemblywoman Anna R. Kelles introduced the Fashion Sustainability and Social Accountabitity Act. If passed by the State Senate and Assembly, the legislation set out in the bill will apply to global apparel and footwear companies with more $100mn in annual worldwide revenues that conduct business in the State of New York, holding them to account for their role in climate change. Specifically, the Fashion Act will ask companies to map a minimum of 50% of their supply chain, disclose the greatest environmental and social impacts and set plans to tackle the problems.

www.nytimes.com

THE SUSTAINABLE DNA

Companies are being scrutinised like never before, making operating sustainably a business imperative. According to Accenture, business and operating model transformation is essential to becoming a truly sustainable organisation, with leaders facing pressure to build and strengthen ‘sustainable DNA’, which is built upon effective management practices, systems and processes. Accenture says that five elements of responsible leadership are crucial to driving this change: stakeholder inclusion, emotion and intuition, mission and purpose, technology and innovation, and intellect and insight.

www.accenture.com

58%

of workers feel the pandemic has forced them to rethink the balance of work and life.

Bain & Company: The Working Future: More Human, Not Less

New York State Senator Alessandra Biaggi

LOGIC-BASED SOURCING

After facing sourcing hurdles when working for SpaceX, a group of the company’s former supply chain professionals have founded Datum, a Software-as-a-Service platform that automates the procurement of CNC machined parts by matching supplier capabilities with customer specs. It does so by analysis of a CAD file and matching it to those suppliers with the ability to manufacture the part. This, says Datum, will help manufacturers bring complex product solutions to market faster. www.datumcnc.com

FENDER TALKS SUPPLY CHAIN

What did you do during lockdown? The answer for many, apparently, is learn guitar. So much so, according to Fender CEO Andy Mooney that increased demand means stock shortage and supply chain issues faced by the company are expected to continue. Mooney told CNBC that ‘remarkable demand’ was dominating the market and that no improvement was expected for as much as three quarters. The company’s amplifier production has also been impacted by the global chip shortage. www.cnbc.com

Great problem solvers are made, not born. That’s according to McKinsey, which has analysed the six mutually reinforcing approaches that underpin successful problem-solving leaders. They are:

1. Be ever-curious: ask why, be creative with your answers and never accept your first solution.

2. Tolerate ambiguity: embrace imperfection and challenge solutions thay imply certainty.

3. Adopt ‘dragonfly-eye’ perception: a 360-degree view of issues is essential for superforecasting.

4. See occurring behaviour: design experiments to reduce uncertainty, don’t rely on existing data.

6. Use the room: good leaders tap into collective intelligence and the wisdom of the crowd.

7. Show and tell: connect your team with the problem and bring in decision makers to the conversation.

McKinsey

STARBUCKS TACKLES DIVERSITY

Starbucks will increase its annual spend with diverse suppliers to $1.5bn by 2030. In a recent blog, the business set out its commitment to advancing racial and social equity on behalf of its partners, including transparency on its workforce data with a goal to achieve Black, Indigenous, and people of Color (BIPOC) representation of at least 30% at all corporate levels in the US by 2025. Starbucks will partner with organisations to develop supplier diversity excellence globally. www.stories.starbucks.com

APPLE: SUPPLY CHAIN NO PROBLEM

Apple posted record revenue of $123.9bn in the fourth quarter of 2021, despite navigating supply chain concerns related to the ongoing global microchip shortage. In a recent earnings call, CEO Tim Cook explained the company expects supply chain issues to ease. Cook was reported in the Financial Times as saying: “I think our supply chain actually does very good considering the shortages. It’s a fast-moving supply chain, cycle times are short, there’s very little distance between a chip being fabricated and packaged and going out the factory. So I don’t see it makes for a fundamental change in the supply chain”. www.ft.com

Maersk loses its position as the world’s largest container line in terms of capacity to global container shipping company, MSC.

FedEx and Microsoft announce a new cross-platform logistics solution aimed at improving customer engagment and providing enhanced shipping optoins in the ecommerce space.

Autonomous trucking startup TuSimple completes its first autonomous truck run on public roads without a human in the vehicle.

Flytrex receives federal Aviation Administration approval to expand its drone delivery coverage for five-minute food and retail delivery to cover close to 10,000 households.

CHINA AND THE GLOBAL SUPPLY CHAIN

Zero-covid restrictions in place in China will impact global supply chain recovery, with likely ‘ripple effects’ worldwide, says Parash Jain, Global Head of Shipping and Ports Equity Research at HSBC. Speaking with CNBC, Jain cited the importance of China to global trade, adding that the pandemic has revealed ‘how lean the supply chain has become. And there is little margin of error’.

www.cnbc.com

Procurement with purpose

Karine Waksman discusses procurement, people and leadership at Vodafone Ireland

As a leader – whether that’s in procurement and supply chain, or any other industry – your responsibility lies in numerous areas. But there’s one that’s more valuable than all others: people. Without strong people, the ability to nurture capabilities and skill sets, a culture and mindset that embraces innovation and the power to drive value for the organisation, little else will follow. Karine Waksman describes this leadership trait as ‘ the ability to create an environment where everyone can be their very best’. It’s this, combined with her collaborative approach to transformation, innovation and business outcomes and an extensive knowledge of the telco industry that has brought such success at every stage of her successful career, including during her tenure as Head of Procurement and Logistics at Vodafone Ireland.

In the close to five years between 2017 and December 2021 Waksman was, together with a relatively small but highly effective procurement team, instrumental in driving the company’s five-year vision for procurement and supply chain, delivering approximately 12% savings annually, increasing team scope from €250mn to €440mn, transforming work processes as a result of digital technology adoption and achieving 90% CO2 reduction for the business. It’s an impressive record by anyone’s standards. Even more so when,

early in our conversation, Waksman modestly says she ‘wasn’t a procurement expert’.

That aside, as she explains, the telco industry has been a consistent thread throughout her career: “I’m a telco engineer originally, and I came to procurement from a controlling and strategy background. My very first job was for a consulting company focused on providing software to improve process and organisational modelling for businesses. Everything I learned there has really stayed with me for the rest of my career – it gave me a good eye for process optimisation and for understanding what works and what doesn’t, which is a great foundation and mindset for any role.

“I eventually moved on because I wanted to work for a telco,” she continues, “so I joined Orange, first in R&D before moving more towards business strategy, financial planning and then cost controlling and transformation. As a young professional I found it so interesting to be doing work that gave a true 360-degree view of the organisation, to be working with the exec committee on strategic projects and setting out roadmaps. When it came time to move on from that role, which was based in Romania at the time, it coincided with a great offer from Vodafone Ireland, which I joined as a technology controller. In that role I was working with the procurement team quite a lot and when the CPO at the time left, the CFO – who I was close to – recognised my eye

for optimisation, the people skills I’d built over the years and my knowledge of the technology and thought I was a good match. So I didn’t exactly apply for the role, but joined this great team with little experience in procurement but my usual willingness to work hard, question and learn.”

Needless to say, it worked. The role of Head of Procurement and Logistics saw Waksman head up a team with overall responsibility for the company’s procurement activities across three main categories of spend: network, IT and all indirect spend, which ranges from media, marketing, call centres and content, through to financial services, real estate and more. More recently, in response to

disruption caused by the COVID-19 pandemic, this remit extended to logistics with the objective of ensuring smooth operations, guaranteed best-quality networks for customers and a better grasp on the overall supply chain of the business.

“In terms of procurement process, Vodafone is very interesting in that it has local teams like ours in Ireland, but also the central Vodafone Procurement Company (VPC) based in Luxembourg,” she explains. “All the category management and strategy, and global policies are defined centrally by VPC. Then locally, we represent the procurement company in the market, ensuring that we understand the demands coming from the

“It requires a really strong understanding of the projects and products, as well as the suppliers and what they’re delivering to the business”

“Vodafone has worked very hard on defining the global structure and blueprint for procurement”

business in terms of procurement, liaising with the central team and project managing the progress of all accounts relevant to our location.

“With that in mind, it’s really about management and business partnering,” Waksman continues. “Once the contracts are signed by VPC in line with the local needs, the team is in charge of the commercial contract management and executing in line with overall expectations. From the perspective of the role, it requires a really strong understanding of the projects and products, as well as the suppliers and what they’re delivering to the business. Local teams get support from VPC and it makes for a very powerful procurement proposition – Vodafone has worked very hard on defining the global structure and blueprint for procurement and so it’s very clear where roles and responsibilities lie and works very well.”

Procurement is an ever-evolving beast, spurred by rapidly changing markets and increasingly complex requirements. This is particularly true in the telco industry which, thanks to the pace of innovation – in 15 years we’ve seen the birth of the iPhone and moved from Edge, through 2G, 3G, 4G and 5G at incredible pace –and market competition, has seen significant transformation. Specifically in procurement, says Waksman, the adoption of digital tools and technologies has dramatically changed the landscape.

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“It’s such a fast paced environment; things change all the time,” she states. “The biggest change I’ve seen over the last five years is digital acceleration. Of course, that’s true in every industry but in telco it completely changed our business from the frontline, where agents use AI to provide the best possible service and tariffs to customers, to the back office, which is being entirely digitalised and optimised for efficiency. I’ll give you an example: when I started, there was a person in my team whose whole job was producing reports. That’s been completely automated with advanced dashboards giving all the information we need which, in turn, frees people to work on more valuable projects – in this instance, that individual now rolls out digital products and drives adoption. That’s key for me. Whenever I look at adopting a new technology I always consider it from the people and team perspective, will it make us better, more efficient and drive that change?.”

Technology innovation included introduction of supplier performance scorecards, says Waksman. Subsequent digitalisation evolved to highly detailed spend analytics, as well as working on P2P processes and greater automation. The result is a comprehensive spend information dashboard that has greatly benefitted the team.

“Everything related to risk assessment has also been automated,” she adds. “An important part of that is that it’s about the introduction of sustainability and

purpose into how we go about procurement. Today, 20% of scoring is related to purpose, which is a significant weighting in the decision making process and, while it’s not a silver bullet to change the world, it’s really significant in reinforcing suppliers to truly think about how they’re impacting the planet.”

More broadly, Waksman oversaw a procurement transformation at Vodafone Ireland that was driven by a five-year vision centred on three pillars that were aligned with the overall purpose of the Vodafone Group of ‘bridging the digital society, diversity and inclusion and planet’. “I think at that time we had extremely good people, nevertheless the vision on

what we wanted to be and where we wanted to go wasn’t as clear as it should have been, while there wasn’t the right level of standardisation in terms of how we were interacting with the business. Our goal was to be the best business partner procurement team and bring innovation and efficiency through the business from the work we do with suppliers and partners.

“We looked at everything the team was doing and really questioned the value of each activity, because a key focus was to free up time to enable us to become more closely aligned with the business,” she continues. “That involved identifying all tasks that were non-value-added and

offshoring them to the Vodafone Shared Services Centre; all the value-added tasks stayed with us. We also ensured that every member of the team was focused on working more closely with the business, that’s really important. They’re now called supply chain business partners and each team member is assigned to a business unit and becomes really embedded in their work – this is a very technical and specific business and I think that interaction is key to delivering true value from the team.”

Adding value can come in many forms. As a result of the work to evolve Vodafone Ireland’s procurement function it played a crucial role in the company’s drive towards a more sustainable future and its overall target of being net-zero emissions by 2030. In 2021, Vodafone Ireland announced that its operations, from stores to networks, were entirely powered by renewable energy. “I think procurement is one of the most important functions in the business to drive sustainability,” states Waksman. “The challenge still lies in tackling scope 3 emissions, which represent around 80% of total emissions from all the goods and services you’re buying from your supplier network. It’s tough because, in some respects, it’s not in your hands. To address this Vodafone as a group works closely with suppliers to understand their own sustainability plans, whether they’re making similar commitments and how we can support them.”

“Today, 20% of scoring is related to purpose, which is a significant weighting in the decision making process”

Together with moving to net zero, Vodafone also pledges to reuse, resell or recycle 100% of its network waste by 2025. In Ireland, all the company’s network equipment is recycled or reused by another market when no longer required and, in the 2019/20 financial year it sent more than 11,000kg of telecoms equipment for recycling.

Waksman left procurement in Vodafone Ireland in good hands. The success of the function is representative of both her collaborative and informal take on leadership and the appetite of those in her team to drive progress. She reflects: “The team there is extremely good and contains so many great professionals that, really, my role over those last few years was to steer

the environment and create a place where they were free to be their best for the business and themselves. It’s always been important to me to push those I work with and show them that change is good, as the leader that means loving the technology and embracing any change or evolution and the opportunity that comes with it. I see the role as removing roadblocks, helping people grow and find solutions and building trust. That only comes from being transparent and authentic – if you do that you make everyone believe you can overcome every challenge.”

“Our goal was to be the best business partner procurement team and bring innovation and efficiency through the business”

Portfolio

i nnovative and ins P ired items for work, leisure and the environmentally conscious

ADIDAS NMD_R1 PRIMEBLUE

The trainer industry has been dependent on plastics for too long. adidas is determined to change that, pledging to remove virgin plastics and polyesters from all its products by 2024. Primeblue is a good place to start. It’s a high-performance recycled material made from upcycled plastic waste taken from remote islands, beaches and coastal communities so that it never enters the ocean. You’ll find Primeblue in the brand’s NMD-R1 trainers – a modern take on an adidas 80s classic runner – as well as an entire range of footwear and sports gear.

www.adidas.com

Portfolio

i nnovative and ins P ired items for work, leisure and the environmentally conscious

SMART OCEAN

The humble office chair. Destined, if COVID has a say, to languish in forgotten meeting rooms for the foreseeable future. But, we all need somewhere to sit wherever we choose to work. That place should be the Smart Ocean, from the drawing board of US industrial designer Niels Diffrient. Smart Ocean is the world’s most sustainable chair. It’s Living Product Certified, meeting the most rigorous sustainable manufacturing criteria in existence, and is the first ever ergonomic chair to be built from recycled fishing nets – almost 2lbs per chair.

www.humanscale.com

Portfolio

i nnovative and ins P ired items for work, leisure and the environmentally conscious

WALKOLUTION DESK

We’re not made for prolonged sitting and sedentary lifestyles. Don’t believe us, check out the scarily titled ‘Death by Sitting’ , a book on the importance of movement from physician and Walkolution founder Dr Eric Söhngen. But less of the doom and gloom, because Söhngen has also designed this treadmill desk. The Walkolution workstation is a manual treadmill that adapts to your walking pace as you work, isn’t powered so has no noise to disturb meetings and is made from wood only from sustainably operated foresters. Perfect for any new year’s resolutions.

www.walkolution.com

Portfolio

i nnovative and ins P ired items for work, leisure and the environmentally conscious

PARAVEL AVIATOR

A suitcase that offsets the carbon emissions of its own first trip?

We know. It’s the perfect environmentally-friendly innovation. Meet the Aviator, from the stable of sustainable travel brand Paravel. Aviator is entirely carbon neutral – Paravel offsets all the emissions that come from sourcing, assembly, shipping and its final journey to you. The case uses sustainable and recycled materials wherever possible, including its shell, zippers and lining, which is made from 15 recycled plastic bottles. Paravel even offsets the estimated carbon emissions of your first trip with the Aviator for good measure.

www.tourparavel.com

Portfolio

i nnovative and ins P ired items for work, leisure and the environmentally conscious

NIMBLE IPHONE 13 CASE

Nimble is a registered Public Benefit Corporation, a certification that requires it to consider all stakeholders in decisions it makes, including employees, customers, community and the environment. It is also Climate Neutral Certified and a member of 1% for the Planet, commiting at least 1% annual revenue to environment nonprofits. All its products are made from REPLAY, a proces that consists of collecting existing waste such as plastic and aluminium and turning it back into raw materials for new products. Like this phone case, which is made from three types of post-consumer plastic.

www.gonimble.com

ACCELERATING CLIMATE ACTION

Many companies are still not accounting for the emissions of their entire value chains – despite what they say. This, says CarbonChain, is a mistake: value chains harbour unknown risks and the complexities of huge carbon flows across global supplier ecosystems.

The answer lies in data, insight and analysis believes the early-stage UK-based startup. CarbonChain was founded by several supply chain veterans who wanted to make it more simple for organisations to account for carbon every step of the way. They do it through an AI-powered, automated platform that analyses data to provide detailed and accurate emissions reports and identify immediate carbon risks. CarbonChain’s tech aims to emissions-track everything, down to a granular, asset level. The result is automated supply chain carbon accounting that removes risk, gives a competitive edge and tackles climate change.

Says the company’s CEO and co-founder Adam Hearne: “CarbonChain’s granular, real-time supply chain carbon footprinting fills the data gap so that climate-critical sectors, and those who finance them, can take action today.”

www.carbonchain.com

TOGETHER AGAINST PLASTIC

A supply chain that turns trash to treasure, helping local communities and tackling pollution with Benny Mandos

The humble backpack. Utilitarian, fashionable, perfect for almost any need and capable of many things. But, saving the planet? You’d better believe it. At least, that’s if Benny Mandos and GOT BAG have their way. That’s because the range of backpacks and travel gear developed and produced by the German eco-friendly, social-first startup are made entirely from recycled ocean plastic and based on a simple, yet incredibly important vision: create an impact, raise awareness and save the planet from drowning in plastic.

And it couldn’t happen sooner. Every year, some nine million tons of plastic enter the world’s oceans – the equivalent of around 17.6 billion pounds or nearly 57,000 blue whales. Further, around 91% of worldwide plastic waste isn’t recycled. It’s a sobering set of facts, however you look at it. Worse still if you consider that the plastic waste that’s discarded in the rivers, lakes and oceans around the globe will take around 400 years to decompose if we do nothing, or that by 2050 every sea bird will have plastic parts in its stomach.

It’s a subject that’s particularly close to Mandos’ heart. He has, he concedes, always had an affinity with the ocean, a passion ignited by sailing trips with his father when young and cemented later in life when, while working first as a cameraman and later for the video agency he founded with his uncle, he travelled to many of the world’s most beautiful places and was struck by one constant: oceans and waterways full of plastic.

Fast forward to one fateful [and well reported] car journey with school friend Roman Ruster, who shares Mandos’ passion for watersports and the ocean, and the genesis of GOT BAG was born. Says Mandos: “It wasn’t so much the fully formed idea came out of that car journey, but we talked a lot about a shared sense of purpose, of wanting to do something and that, because of our background we should focus on the problem of plastic pollution. We knew it was possible to recycle plastic, so why shouldn’t it be possible to do the same with all the plastic that’s out in the environment? That was the starting point.

“We reached out to friends, people we knew in surfing and other water sports, who were active in helping the environment and got involved,” he continues. “We started doing cleanups, joined different initiatives and used the plastic we collected to work on our own R&D. It took two and half years from 2016 to 2018 to develop the first backpack made from recycled ocean plastic. Over the same period of time, we saw the awareness and appetite for recycling, tackling pollution and sustainability more broadly grow, which really helped us as we developed the brand.”

“IT TOOK TWO AND HALF YEARS FROM 2016 TO 2018 TO DEVELOP THE FIRST BACKPACK MADE FROM RECYCLED OCEAN PLASTIC”

SUPPLY CHAIN: FROM TRASH TO TREASURE

1. A network of fishermen collects ocean plastic in Indonesia

2. Once cleaned, PET is pressed into pellets

3. These pellets are shipped to China for processing into robust yarn

4. Bags are coated with a high-quality and environmentally friendly PFC-free coating

5. To mininise environmental impact, products are transported by train to Europe and to the US by ship

Today GOT BAG has created a sustainably driven supply chain that begins with collecting ocean plastic in Indonesia – chosen as the first location due to its poor waste management infrastructure and status as one of the world’s top sources of plastic. Around 2,300 Indonesian fisherman collect plastic from the ocean before it is processed in GOT BAG’s warehouse facilities; PP & HDPE plastic is mechanically recycled before being transported to Germany and incinerated to produce energy, while all PET is processed into the yarns and textiles that are used to manufacture the company’s backpacks.

“WE HAVE TO COLLECTIVELY REUSE AND RECYCLE MORE TO GET OUR CARBON FOOTPRINT DOWN AND HELP THE PLANET”

“We work with the local fishermen, who catch the plastic in their nets as bycatch and other groups who go out specifically searching for plastic waste in the rivers, mangrove forests, swamps and delta regions out there,” says Mandos.

“A lot of the plastic that ends up in the oceans starts in these places, so there’s a big focus on trying to prevent it even getting there from us, including building trash booms and other barriers in the rivers. At the moment we have six warehouses in the region that sort the plastic waste. We still can’t use PP & HDPE in our production processes so the incineration is the best option; it means factories aren’t burning coal and ensures that it doesn’t just end up back in landfill or in the ocean. The PET is cleaned, which is a crucial part of the process, before being introduced into the supply chain.”

The GOT BAG cycle, which this global but low-environmental impact supply chain contributes is centred around circular economy ideas and a commitment to being more conscious about how we use natural resources and recycle existing materials. In its early stages, the business made sure it only worked and partnered with companies with a track record of working with sustainable brands, and who have

the relevant certifications when it comes to the processes.

“We’re aiming for a closed material cycle,” says Mandos. “We have to collectively reuse and recycle more to get our carbon footprint down and help the planet. I think we’re seeing steps in the right direction when it comes to circular economies, but there’s a way to go. And that’s because it’s challenging and complex to have your whole supply chain in house, to set up and manage, to sustain and to eventually grow. But on the other hand it’s fulfilling and based on helping people and the planet. Our values are based on inspiring others through our vision and centred around building preventative action through our work – it’s really important that we continue to educate people as we grow and expand. Everyone working for us has that mindset and is passionate about fighting for our future.”

Find out more: got-bag.com

Benny Mandos

A committed social entrepreneur passionate about the ocean and the environment, Benny is CEO and founder of GOT BAG and dedicated to a more conscious use of natural resources.

JIN STEDGE TRUENORTH

Technology is great. But it’s nothing without honesty, transparency and respect. Throw in being properly rewarded for your hard work and the freedom to choose your own route to success and you have the values at the heart of TrueNorth, a logistics-focused technology startup founded by Jin Stedge.

Stedge, who created TrueNorth with Sanjaya Wijeratne, is a respected entrepreneur and technologist – you’ll find her on last year’s Forbes 30 Under 30 list in the enterprise technology section. After graduating from MIT with a degree in aerospace engineering, Stedge held several roles including Chief of Staff at autonomous trucking company Scotty; she and Wijeratne founded TrueNorth in 2019.

The business acts as a carrier and software service that helps independent truckers manage every aspect of their business, from tracking of invoices and fuel through to compliance and insurance issues, all based on one mission: profits to truckers.

www.truenorthfleet.com

“ We help truckers be the CEOs of their own companies”

PROCUREMENT: THE NEXT GENERATION

Roche is on the cusp of a next-generation procurement revolution, as Marielle Beyer and Patrick Foelck explain

atrick Foelck is the first procurement leader to quote Lewis Hamilton to me. But, perhaps more should. Because, in the context of the groundbreaking transformation and strategy work Foelck and his procurement colleagues at global pharmaceutical leader Roche have embarked on, the seven-time Formula One World Champion’s words – ‘I don’t fear failure. I fear not living up to my potential. I take that passion with me and never stop learning’ – are, well, perfect. That’s because, according to Foelck, procurement as we know it has a simple choice to make: evolve, use the skills, knowledge and expertise we have to think outside the box and really deliver value to the business beyond the traditional savings talk, or cease to exist.

“Procurement will die,” he says, outlining the critical decision point at which the function finds itself. “We face a choice, and we’re at the point where many businesses are considering this, about what the future looks like. In my view, we have to move procurement out of procurement. We can stick to our old ways, remain the introverted function that we have been for years and just do what we do better and faster. Or we can drive significant change, focus on value, become a function that is customer-centric and driven by delivering business solutions that are supported by technology. It’s time to stop thinking about how we do it faster – do that and technology will just replace us. It’s time to think about how we do it differently.”

Roche, steered by Head of Global Procurement Marielle Beyer and her team’s ambitious vision, has chosen the second option. The business is on a journey to next-generation procurement based on a firm belief in what the future of the function looks like. A vision that understands that procurement has a unique value proposition that can only be released by reinvention; that sees procurement for procurement end, a shift away from a single-minded and savings focused approach to thinking about business and shareholder value, and a customer-centric view; and a team of procurement professionals willing to use its capabilities to the full extent, to be super-charged by digital innovation and work as a flexible, consultancy-like organisation that enables the business to succeed.

“IT’S TIME TO STOP THINKING ABOUT HOW WE DO IT FASTER, AND THINK ABOUT HOW WE DO IT DIFFERENTLY”

PATRICK FOELCK, HEAD OF INSIGHTS & ENABLEMENT FOR ROCHE PROCUREMENT

“THERE MUST BE MORE…”

Foelck has been with Roche for four years, joining the business after previously working with it as an external consultant. Since, he has held three roles, all focused on the ongoing transformation of the company’s procurement function – Head of Transformation & Strategy in Procurement, Head of Indirect Procurement and, his current position, Head of Insights & Enablement for Roche Procurement. The latter, he explains, is based on two key areas: “Enablement, which is basically everything that enables procurement and our internal customers, so analytics, risk management, sustainability, contracting,

people development, processes and systems and many other capability areas.

“The second area is a critical piece of our future operating model,” Foelck continues. “Insights is about providing the capability to look for solutions to real business problems. Where our traditional procurement response in the past has often been centered around sourcing, we now focus on understanding the root cause of the business’ problem, ideating and co-creating solutions, through to actually implementing them and transforming the business’ ways of working. At Roche, we call this our commitment

“THERE IS A BIGGER PURPOSE TO ALL THIS”

PATRICK FOELCK, HEAD OF INSIGHTS & ENABLEMENT FOR ROCHE PROCUREMENT

to creating value. It’s about looking at the many outcomes 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, how we can enhance the buying experience for the business, drive sustainability or risk management and see what we can do if we really push ourselves. There is a bigger purpose to all this.”

That purpose is informed by insight Foelck gained in his early days of consulting, first for a small boutique firm before moving to Deloitte, and has since honed while at the business. He explains: “It all started on day one. I got to know procurement and supply chain well and, as I did, I remember a distinct thought forming: ‘there must be more. This can’t be everything and if it is, then why not just develop technology to do it for us?’. It struck me, even at that point, that it shouldn’t need hundreds of people spending their valuable time sitting there calling suppliers, negotiating or finding opportunities. It’s just not enough.

“That led me to focusing more with clients on transformation, on their strategy, on questions that I felt were important like ‘what’s your digital enabling strategy in procurement, what’s your overall value proposition, how do you want to drive that forward?’,” he says. “I wanted to change the mindset; I felt that, as procurement professionals, we weren’t doing ourselves

any favours – constantly singing the savings song, limiting ourselves to pats on the back for how many negotiations we’ve completed. It doesn’t really mean anything to the business.

“I also recognised that the upstream part of procurement, the spend management or sourcing, is disconnected from the downstream where people buy,” adds Foelck. “I’ve seen many procurement organisations that are happy to negotiate a contract, file it in the drawer and move on. What happens to that contract and how the business uses it isn’t often considered but that connection has to be stronger. It’s time to stop thinking about procurement from a procurement perspective. We’re doing what we do for the business, we shouldn’t be afraid to work closely with them and move our role away from just answering their questions to helping stakeholders form the questions, to influencing them. There’s so much potential beyond ‘just procurement’ because soon, someone will make digital technologies to do all those jobs. It’s why this choice is so important.”

“NEXT-GENERATION PROCUREMENT…”

Change is never easy. Particularly the kind of radical change Beyer and Foelck are undertaking. It’s why, in life and in business, people often choose the more simple route. In this instance, that route is the faster, better version of procurement: evolution not revolution, focusing on core procurement skills and just improving them. “I call it the ROI choice,” Foelck says. “It’s a case of ‘do what we do today, but better’, and it’s not a good choice for our profession because all of that is ultimately automatable or can be done by externals, because there’s no meaningful or value-creating communication between procurement and the business anyway in that model. The second choice, the one we chose, we call next-generation procurement. It’s very value creation focused, far more customer-centric and uses digital tools as enablers to free up capacity to reinvest in solution creation capability and richer

engagement with the business – forget just thinking ‘you asked me to do X, I’ll do X and my usual response is I’ll write an RFP’ and start focusing on ‘why are you asking that question, what else can I do, or is this even the right question the business is asking’. It’s an extreme shift and requires significant change.”

Roche has been on its change journey since 2018, when its first procurement transformation resulted in OneRoche Procurement, a function designed to move away from the multiple divisional and regional procurement organisations of the legacy business to a procurement team that provides efficient operations and strategic services to deliver incremental value to the company. Subsequent evolution, driven by procurement team-wide collaboration and ideation, has focused on creating and implementing a more agile and customer-focused organisation capable of addressing the opportunities and challenges presented by Roche’s ambitious 10-year growth strategy.

“Developing OneRoche Procurement meant a radical restructure, which was necessary to give us a foundation to grow from, but we knew next-generation procurement was the goal. If we were to deliver on everything I felt we could we had to keep evolving; that mindset has been pretty significant throughout and ultimately has led to this new operating model and digital journey we’re on,” Beyer explains.

“WE WANTED TO EXCITE PEOPLE…”

Mindset, as with so many transformations, has been crucial in delivering on next-generation procurement. It has been, concedes Beyer, an extreme evolution that has been successful largely as a result of buy-in from both members of the procurement team and the business more broadly. “You need a certain environment to make this kind of change, where you can convince people to let

you do what you believe in. We’d earned a lot of that trust at the beginning through the OneRoche Procurement transformation, but it’s never easy to change a mindset or culture. That’s particularly true in something like procurement, where for so long we’ve been limiting ourselves to terms like savings, sourcing, negotiation and so on. So a lot of this work has been about getting people out of the traditional sourcing

“WE WANTED TO EXCITE PEOPLE ABOUT THE OPPORTUNITIES AND GET THEM THINKING ABOUT THE FUTURE”

MARIELLE BEYER, HEAD OF GLOBAL PROCUREMENT

machine that they know so well – and I’m going through this right now – and telling them to stop focusing on sourcing, to use the tools and technologies to enrich and enhance their work so that it almost replaces them on the most basic level, but at the same time allows them to unleash their capabilities and become an advisor to the business.”

Beyer and Foelck, focused on a peopledriven change post OneRoche procurement, recognising that another significant restructuring could be detrimental to growth. Says Beyer: “It had to be an evolution and we wanted to excite people about the opportunities and get them thinking about the future. We ran a number of events to trigger this, including a hackathon in April 2019 where, over several days, we focused everyone on our digital future and the direction we should go in. There was a real buzz around the events, with everyone working in an agile way to produce outcomes very quickly; the result was a huge success that gave us a pipeline of ideas, encouraged people to embrace the new way of working and saw them take ownership of the ideas. Following, we asked the organisation to come up with ideas to shape procurement’s future and a wave of opportunities came out – we realised there was a real momentum behind the change and it was the birth of what we called ReImagine Global Procurement, or ReImagineGP, and the start of our evolution journey towards next-generation procurement.”

ReImagineGP is centred around shifting procurement from a reactive to a proactive organisation built around customer needs and an operating model based on three ‘chapters’ – Customer Excellence, Delivery and Insights & Enablement –that connect internal demand with external markets and capabilities. “The first is home to a few dedicated colleagues who are organised in a way that mirrors the organisational structure of the corporation,” says Beyer, “and that’s on purpose. There’s no association to categories, to how the market is structured or suppliers. Instead, the chapter works in a similar way to account teams, they’re the gateway into procurement for the business and carry all our targets and metrics. The second Delivery Chapter is a more flexible, larger resource pool of very strong procurement people who focus on their capabilities; they go where the work is, they pool the resources they need and they get it done.

“With our Insights & Enablement Chapter, we’re developing the future,” she continues. “It’s here that we develop solutions for the business, bring ideas from suppliers, the market and anywhere outside into the organisation. Think of this new procurement organisation in terms of how a consulting firm works: you have people and teams walking the floor who are embedded in the customer – they understand how we can help, but more importantly, they sell. And that’s our

Customer Excellence Chapter. They should understand what the needs are, how we can help, what the business strategy is and translate all this into procurement. But they should also sell the ideas, concepts and solutions we’ve identified. Then, you have a pool of consultants who can be staffed on anything, akin to our Delivery Chapter. Lastly are those that develop future strategies and innovations, that’s our insights people. We’ve invested heavily in building this vision, and it’s what will get us to nextgeneration procurement.”

“YOU CAN’T GROW A FOREST WITHOUT TREES…”

This new approach, says Foelck and Beyer, is underpinned by a new perspective to

digital technology, in which core procurement technologies are complemented with assets from a broad digital ecosystem. In next-generation procurement, technology is viewed from the perspective of customer centricity and experience, but also as a tool to give the flexibility required by the function. “Everyone that wants to use procurement technology has different requirements,” says Beyer. “Our approach is to adopt a good end-to-end system as our foundational layer and connecting tissue and, when we need something specific, we complement this with other two or three key things. First, we look at digital assets like artificial intelligence, robotics, machine learning – whatever is needed to get the work done.

“WE WANTED TO EXCITE PEOPLE ABOUT THE OPPORTUNITIES AND GET THEM THINKING ABOUT THE FUTURE”

PATRICK FOELCK, HEAD OF INSIGHTS & ENABLEMENT FOR ROCHE PROCUREMENT

“Secondly, we’ll use startups to bring point solutions that complement the base technology,” she continues, “or we’ll outsource where needed. In some cases, we’re investing in startups or cocreating solutions with them, and we think that building this kind of platform to support our operating model will drive us into a very bright future.”

“We must evolve, both in our profession and our attitude to technology to push forward,” Foelck adds. “If we continue to believe that we don’t need much technology, that we’re fine with our Excel sheets and email,

we’re limiting ourselves. It takes a real willingness to develop and use the technology in a complementary way so that we have the space and the information to really start advising the business. I’m a fan of analogies, and there’s a saying I use that says ‘you can’t grow a forest without trees’. You have to focus on the trees, and that’s similar to what we’re doing, this is about giving the people the ability, the belief in their capabilities and skills and the technology that enables them so that they can truly support Roche as it grows in the future.”

www.roche.ch

AI: BEYOND THE HYPE

Yet, like many other groundbreaking technologies that went before it, it’s understandable to feel that the recent attention given to AI’s value has outpaced the current reality when it comes to real-world business processes. Yes, AI can more precisely tailor content recommendations in social media apps like Instagram, Twitter and YouTube, or help refine the photos we take on our phones. But where is the AIdriven revolution in the way we work? Where is it helping us do our jobs better or more efficiently, and how is it unlocking value in unexpected places? In our view, it’s here, today.

How do we know? Because at BT Sourced, our new standalone procurement company within the BT Group, we’ve already started to see the benefits of artificial intelligence. We’ve come to believe that, when properly implemented, AI can be a game changer – and that while there’s a lot of excitement about the future of AI, we’re proof that the future is now. Here’s why.

WHY AI, WHY NOW?

AI for business is one of the most talked about innovations, and for good reason. As in other areas of our lives, the use of artificial intelligence holds the potential to fundamentally alter the processes and structures that humanity has been accustomed to for decades. In some cases, even centuries.

Out of sheer necessity, the COVID-19 pandemic accelerated what had been a gradual shift toward the rapid digitisation of procurement. In the face of significant disruption, from remote work to shortages of goods and services across the value chain, having the adaptability to quickly source the best suppliers became critical. Agile procurement teams armed with cutting-edge technology were, and will continue to be, best positioned to

AI IN PROCUREMENT? NOW IS THE MOMENT TO EMBRACE DIGITISATION, ACCORDING TO BT GROUP’S CYRIL POURRAT

streamline sourcing, driving long-term growth and value for the BT customer and operating model.

Deloitte’s 2021 Global Chief Procurement Officer Survey found that driving operational efficiencies was the new number one priority for CPOs, replacing reducing costs for the first time in the report’s 10year history. In this next normal, procurement must modernise and simplify its processes to become faster and more agile for the near and long term.

The biggest barrier to transforming procurement is changing the way people work. So, we use Globality’s AI-powered Platform and Marketplace for B2B services to collaborate and source suppliers from any location by improving visibility,

workflows and communication across all functions. Increasing agility and efficiency is also key to achieving another important goal: enabling a greater focus on strategic initiatives and collaboration. Adopting AI, along with tools that feature analytical intelligence and enable selfprocurement, means that our teams can now study recurring behaviors, empower end users and discover new areas to contribute value. These new platforms provide procurement teams with the insights to make fast, data-driven decisions that benefit everyone throughout the value chain. For us, they can be shared across the business, enabling us to work more closely than ever with our stakeholders while AI manages manual and repetitive tasks in the background.

“ WHERE IS THE AI-DRIVEN REVOLUTION IN THE WAY WE WORK? WHERE IS IT HELP -

ING US DO OUR JOBS BETTER OR MORE EFFICIENTL Y, AND HOW IS IT UNLOCKING VALUE IN UNEXPECTED PLACES?

AI FOR GOOD

The financial benefits of AI and automation in procurement are clear. But it’s important to consider other important goals such as inclusion and corporate social responsibility. How can AI in procurement support workforce development and contribute to the greater good, for example?

At BT Sourced, we’re committed to expanding economic opportunity and reducing our environmental impact. In many ways, AI supports our commitment to more sustainable sourcing – from driving new efficiencies to enabling deeper analysis and awareness of environmental, social and financial risks throughout our supply chain. Now more than ever, we’re able to more precisely track compliance with our global responsibility model, sustainability criteria and principles of responsible behavior for suppliers regarding ethics, conduct, social issues and the environment.

“IT’S IMPORTANT TO CONSIDER OTHER IMPORTANT GOALS SUCH AS INCLUSION AND CORPORATE SOCIAL RESPONSIBILITY”

We’re also leveraging AI to support supplier diversity and inclusion, expanding our network to include qualified alternatives from a base of top-performing, diverse small and midsize companies, increasing access to innovative service providers that may have otherwise been overlooked.

THE PRESENT AND THE FUTURE

The last year has proven that AI is no longer procurement’s future – it is our present and, without question, our future. Agile,

value-added procurement requires the insights and efficiency that only AI and automation can deliver at scale. The pressing need to develop more responsible, inclusive supply chains and practices only makes the case for digital transformation stronger.

We have an unprecedented opportunity for change. Companies have a unique opportunity to move quickly to modernise their procurement technology and achieve benefits for both their stakeholders and their broader communities. We’ve arrived at the right moment to disrupt traditional models and processes, making the vision of a more efficient, sustainable and inclusive AI-powered future a reality today.

Cyril Pourrat

Cyril is Chief Procurement Office of BT Sources, and is an award-winning procurement and supply chain executive, with 20 years of experience in Fortune 500 companies.

THEART OF THE PURCHASER MAGAZINE | ISSUE EIGHT

PEOPLE, PARTNERSHIPS AND PERFORMANCE IN PROCUREMENT, ACCORDING TO FARAH EXPERIENCES’ ANDY WATERHOUSE

PERFORMANCE

Supply chain and procurement has changed. Gone are the days of teams solely dedicating their time to buying, filling in purchase orders and spending too much time with spreadsheets and paper trails. Today’s supply chain and procurement leaders are focused on people, relationships, and partnerships; they are strategic and driven by adding value to their organisations

award winning theme parks and attractions across Abu Dhabi – Ferrari World Abu Dhabi, Warner Bros. World™ Abu Dhabi, Yas Waterworld, CLYMB™ Abu Dhabi and Qasr Al Watan; SeaWorld Abu Dhabi is soon to be added to the roster.

“In partnership with my counterpart who heads up sourcing, we manage an end-toend procurement chain with the key objective of delivering a supply chain

and, more than anything, performance is key. That’s certainly true for Andy Waterhouse who, as Head of Supplier Performance Management at Farah Experiences, works within a diverse and experienced Procurement Department, which is responsible for keeping five, soon to be six, world-class theme parks, leisure facilities and cultural attractions operating while at the same time playing a key role in planning the Abu Dhabibased company’s procurement and supply chain transformation.

“To oversimplify it, my and my team’s role is everything to do with procurement and supply chain that’s not sourcing,” says Waterhouse, by way of an understated introduction to the complexities of supply chain and procurement at Farah Experiences. The business operates five

that works,” he continues. “My colleague looks after everything from a purchase requisition being received from the business, the sourcing of goods and services, getting all that detail into a contract and out to the supplier; prior to and after those steps, my team has responsibility.

“In terms of what that looks like, right at the start of the process we’re responsible

“ we mana G e an end -to - end P rocurement chain with the key o BJ ective of deliverin G a su PP ly chain that works ”

ANDY WATERHOUSE

for the supplier master data, the prequalification of suppliers in the registration process, the correct vetting of the supply chain and the suppliers, contract management and more,” says Waterhouse.

“Supplier performance management is a significant part of that work, particularly with our larger or critical suppliers. That means there’s a lot of data, reporting and analytics involved, which makes technology an essential part of what we do. We hold regular review meetings with suppliers and work very closely in partnership with them to ensure we’re delivering the very best products and services for our internal stakeholders. That’s the end goal. Those

stakeholders are delivering entertainment and experiences for our visitors, it’s all about putting smiles on the faces of our guests.”

PEOPLE AND PERFORMANCE

Waterhouse joined Farah Experiences close to four years ago, bringing considerable experience in supplier performance management, an understanding of effective procurement leadership and a passion for people, nurturing talent and building strong and strategic partnerships that has been honed through his career. “I think a lot of people get into procurement with

WARNER BROS. WORLD™ ABU DHABI

a background in the nuts and bolts of the basics like getting quotes and tactical buying. I studied HR and business, so it’s a slightly different approach and that, combined with the roles I’ve held prior to Farah Experiences has contributed to me getting this position and the work I’ve done so far.

“Early in my career I worked for GMAC Global Relocation Services, now Brookfield Global Relocation Services, for example,” he says. “That was a role in which I really honed my specialisation in supplier performance management because, while of course there was typical

procurement work involved with the job – contract negotiations, costing and so on – the delivery of effective services by the supply chain to key VIP clients was essential. It’s where I learned a great deal about understanding the performance of the supply chain and working with suppliers in partnership to get results, as well as in leading procurement and supply chain professionals.

“I later joined Sodexo; I took on that role to get more into ‘real procurement’ work and, after a couple of years in the business, I was tasked with taking on the position of Head of Supplier Relationship

“ it ’ s all a B out P uttin G smiles on the faces of our G uests ”

FERRARI WORLD ABU DHABI

Management as part of a wider transformation of the organisation,” continues Waterhouse. “That was a leadership position, with the goal of expanding the performance management of the supply chain beyond the logistics and distribution trains of our largest food and non-food suppliers. It gave me great experience of picking up a team that was largely established and then looking at ways in which we could add value, learn how to look beyond typical logistics contracts to consider what more we could do with the suppliers or how we could better develop the relationships. From a leadership

from the tactical buying that was done in the years proceeding, and was seeking to build on this by hiring someone to implement and drive supplier performance and relationship management. “I came in probably halfway through that change process,” he adds. “The transformation strategy had been put in place by a previous supply chain director, who had centralised procurement and put in place a four-year plan with the view of implementing a best-in-class function at the business. I was essentially given the task of creating a two-year strategy for implementing supplier performance management.

perspective it was a great opportunity to learn more about the management of people and performance, how to motivate and encourage while laying down a strategy that gets the buy-in from everyone on the team.”

PROCUREMENT JOURNEY

Farah Experiences was on its own transformation journey for supply chain and procurement when Waterhouse joined in 2018. The business had, he says, begun the introduction of strategic sourcing and category management in a move away

“When people ask me what it’s like working at Farah Experiences my answer is simple,” says Waterhouse. “It’s amazing. More than anywhere else I’ve worked it’s incredibly diverse – a theme park is basically its own ecosystem or world, everything has to happen there from sales and marketing, ticketing and IT systems, social media and engaging the customers, right through catering, facilities maintenance and the rides themselves. The sheer breadth of requirements and work means you’ve no shortage of challenges, and there’s critical aspects like

“ i was essentially G iven the task of creatin G a two -year strateGy for im Plementin G su PPlier P erformance mana G ement ”

the operations of rides and attractions that are crucial to the success of the business. It keeps us busy.”

From a procurement and supply chain perspective, parks at Farah Experiences have both individual and shared processes and workflows. The centralised procurement function created by the previous supply chain director at the business achieved some economies of scale particularly, says Waterhouse, around marketing work with specific suppliers. “On the flip side,” he states, “you’ve got some really park-specific activities. Our

rides are one of a kind, which is fantastic in terms of what we provide to our guests, but it gives us very specific maintenance requirements. All our procurement activity has to be planned back from that maintenance schedule, even though we try to aggregate where we can.”

DRIVING CHANGE

One constant in procurement and supply chain is change. In this instance, COVID has impacted progress of the supplier performance and relationship management strategy Waterhouse is currently engaged on. As a result, the business is

WARNER BROS. WORLD™ ABU DHABI

still on its transformation journey but, he says, significant steps have already been taken. “One of my first tasks was carrying out a gap analysis to really understand what we mean when we’re talking ‘bestin-class’. For me it was about looking at organisations that are at the pinnacle of procurement and understanding what systems and processes they’ve implemented, what technologies they use and

how they approach governance, training and development. It showed that we had a way to go, but was really valuable in terms of building my strategy, of being honest about where we are and where we want to go.”

Technology has played a crucial role in this journey. The business has recently moved to Oracle Fusion, a significant

“a theme Park is B asically its own ecosystem or world ”

step away from a previous reliance on emails, phone calls and paper-based procurement activity, notes Waterhouse: “We’re digitising. With Fusion comes a set of modules for supply chain and procurement, and the benefits will be significant. We’re able to give suppliers better access to interaction with us, the Farah Experiences supplier portal allows them to manage their own profiles and notify us of any important changes or updates, update their own trade licenses and documentation, respond to RFQs and RFPs, upload invoices and more. Until now, that’s all been done manually, which works but isn’t the most sophisticated or efficient approach. It’s a game-changer for us in terms of performance, managing contracts, adding transparency, and removing risk.”

Waterhouse is a firm believer in the power of people when it comes to success in procurement and supply chain. Farah Experiences is actively recruiting as it continues on its transformation journey and, while digitising many of the processes carried out by the function brings undoubted benefits, he remains resolute in the importance of those softer, more human skills like communication, relationship building and creative problem solving. “Technology is replacing a lot of the number crunching we used to do in our profession,” he says. “And that’s great, but from a people point of view you have to really focus on the skills that make us human. A computer can’t

call a supplier and have a meaningful and personal discussion about an issue, it can’t manage the expectations of a particularly difficult stakeholder or master the art of communication across different levels of business.

“We have positions open in the business at the moment and, as a result of the disruption caused by COVID, we are seeing candidates in the market and there are people willing to move to new positions,” he continues. “But moving forward I see retention of good people being essential for organisations. I’m seeing a market where there are people available, but the best companies are managing to hold on to their best people, and we have to do the same. When I’m building my team, I’m looking for people who don’t just want to conduct tactical tasks. I want to see from the procurement profession, people who are taking the time and effort to upskill themselves in other areas, people who can hold a conversation and look you in the eye, or who are comfortable in their own skin. In my opinion, these will be some of the key skills as the industry and the profession develops.”

Relationship building and a strong understanding of the importance of partnerships is crucial when dealing with any supplier. Take, for example, Farah Experiences’ work with Massar Solutions, which provides the business with a range of transportation and mobility solutions across its sites, including staff transportation to and

Through Facial Recognition, interactive augmented reality experiences, AI-powered background removal, and other such cutting-edge technologies, we have digitally transformed the guest journey within a theme park.

We are Asia’s largest imaging services and solutions company. We are DEI.

“Our efforts are merely a prologue to a time when we will seamlessly integrate our services and solutions with the guest journey. We are on course to transform this journey through technology. A paradigm shift has been brought into the attraction imaging business. We will ensure it turns into a monumental drift.”

Sweta Prabhakaran, VP of Business Development & Marketing, DEI

Tenacity brought us this far. Technology will take us even further.

from work. “It’s a great example of how we work really closely together with a supplier,” says Waterhouse. “Something like transport may sound simple, but we have a very strong and collaborative relationship that’s based on open communication and finding solutions in a shared way that’s built on collectively thinking ‘what’s the art of possible’. For example, seasonal fog clouds drifting over Abu Dhabi disrupt the service delivery of Massar for staff transportation, but

we are always in communication with them to ensure overall business disruption to Farah Experiences is minimised.

“Another example of this kind of close relationship is with DEI, which provides guest imaging services,” he adds. “They are a long-term partner of ours and we have continually worked closely together to harness their digital technology innovation in order to enhance the guest experience in our theme parks and cultural

“FROM A PEOPLE POINT OF VIEW YOU HAVE TO REALLY FOCUS ON THE SKILLS THAT MAKE US HUMAN”

attractions. Leveraging DEI’s expertise helps our Guest Experience department ensure visits to our theme parks and cultural attractions are truly memorable.”

CONTINUOUS DEVELOPMENT

COVID brought significant disruption, both to Farah Experiences and the region. But, occurring during the transformation process, it also brought opportunity to reassess progress and better understand future strategy.

“We’re planning to revisit the original strategy and match that to the plans of our CEO and management team, and there’s still a lot I want to do,” says Waterhouse. “When COVID happened, the key thing

for me was making sure we were clear of our current position when it comes to contracts and our supply chain. Working offline, it’s difficult to keep your finger on the pulse of everything that’s changing – the performance management strategy was about categorisation and critically analysing suppliers in terms of potential risk. Being prepared for that and having the ability to be flexible will be important, as will supply chain security. We still have firm plans to continue to evolve our procurement function and take it into the stratosphere of being recognised as a leader in the country and region.”

www.farahexperiences.com

Amazon Business’ Molly Dobson discusses purpose-driven supply chains and the evolving role of the CPO

PEOPLE PLANET PROFIT Leadership

Supply chains and the role of the procurement function have changed. Gone is the relatively stable foundation of traditional supply chains of the past, in are digitally-driven supply chains, an evolving and growing sense of purpose and a new style of leadership. These topics and more are central themes for Reshape, a free virtual procurement event for the global business community on 10 March 2022 hosted by Amazon Business.

At Reshape keynotes, leadership and product sessions and more will discuss subjects including procurement strategies for the c-suite, socially responsible procurement, delivering on the digital agenda, resilience and the benefits of being agile, and purposedriven supply chains. Ahead of the event we spoke to Molly Dobson, General Manager of UK & Ireland for Amazon Business to hear her thoughts on the latter. Here’s what we discussed.

The Purchaser: How significantly have supply chains had to evolve in recent years, and what are the key drivers for change?

Molly Dobson: At Amazon Business, I work with a lot of procurement and supply chain leaders. I see that supply chains are constantly evolving and may need to change for a variety of reasons – notably, changes in technology and new innovations related to how they source suppliers, order products, manage deliveries, make payments and more. To cope with these dynamics, leaders are now more than ever prioritising operational agility and digital optimisation.

To give you an example: we work with a global financial services company that has to navigate the complexities of business across geographies in this difficult time, dealing with differences in currency, taxation laws, varying payment processes and more. Working with us, they unlocked agility by automating each transaction so that the entire process has become streamlined and easy to track, payments were processed and extra steps were reduced.

TP: Ahead of Reshape you discuss a fundamental shift in the global landscape that has accelerated the need for a broader supply chain mission; what role does procurement play in this mission?

MD: There has never been a time when procurement and buying have been more crucial than they are right now, especially since the relatively stable foundation of traditional supply chains of the past is no more. Supply chains that embrace digital solutions deliver what is needed, when it is needed. They help businesses become quicker, more efficient and cost-effective.

For example, one of our clients is a global energy company which chose ecommerce solutions to help accelerate the digital transformation of its procurement function to make its operations efficient, and to proactively identify and find solutions to potential barriers. In doing so, the company was able to save money on each transaction which, considering the sheer size of its purchasing activity, led it to become significantly cost-efficient, drive innovation and become more efficient.

TP: How have people, planet and profit evolved as drivers of the modern supply chain? If you consider purpose, do you think ‘traditional’ supply chains aren’t optimised to prioritise these areas and, if not, why not?

MD: The ‘triple bottom line’ of people, planet and profit is a sustainability framework that holds businesses accountable for more than just the profit they generate and emphasises the power of doing well by doing good.

I know from our customers that traditional supply chains are costly – requiring hours of burdensome negotiations and paperwork to make and process orders, often with conflicting records because of manual reconciliation of reports. This leaves procurement leaders with little to no time to consider other and bigger priorities, such as the impact of buying beyond individual product-level profits much less on people or the planet. Those leaders that are driving a supply chain-oriented approach around the triple bottom line are getting further and further ahead of those who aren’t.

We at Amazon are committed to driving collective, cross-sector action on the climate crisis, and founded The Climate Pledge with Global Optimism in 2019 on the conviction that global businesses are responsible, accountable and able to act on the climate crisis. The Climate Pledge Friendly programme offers customers the chance to shop for business-relevant items with green certifications, improving sustainable sourcing for businesses of all sizes.

TP: Has this evolution changed the role of the CPO and what does the modern CPO look like?

MD: Absolutely, and we support them whenever we can. With procurement increasingly getting a seat at the table when organisations are talking about strategic initiatives, the role of the CPO is becoming more and more valuable within an organisation –driving not just cost savings as before, but also organisational efficiencies such as introducing digital solutions and shaping the company’s sustainability goals.

Procurement leaders will play a crucial role in the post-pandemic years to come. Technology, automation and digitalisation

are key enablers that help them build and maintain the agility required to avoid challenges or navigate them effectively. We’re working hard to provide CPO’s with all three enablers through Amazon Business.

TP: How have top-performing CPOs embraced business purpose and does this shift represent a significant change in terms of procurement or supply chain strategy?

MD: From the CPOs I work with, the most successful ones use technology and digital solutions to get time-intensive, repeatable tasks out of the way to open up time in the day and have the head space that’s needed to expand their horizons and engage in more strategic work.

I’m excited to see customers from across the public and private sector, and from microbusinesses to large enterprise organisations, tell us about how much their teams appreciate having the time to focus on strategic priorities rather than being weighed down by low-value spend and tactical activities.

TP: How does embracing a purpose-driven approach bring organisational success and what capabilities or skills are needed?

MD: We’ve seen many of our customers establish new policies and processes, and reassess their partnership landscape in order to remain committed to sustainable procurement. One of our Enterprise customers has tens of thousands of suppliers, and all of these follow and fulfil at least the minimum social and environmental requirements. Buying through us they are able to choose a selling partner who can help them achieve their sustainability goals, and our analytics provide them the ability to check how they’re performing against those goals in real time.

When businesses choose to be more sustainable, they can reap a number of short and long-term benefits. These range from a new customer base of those who value buying from a sustainable business and improved brand perception scores (internal or external), to reduced organisational costs positively impacting the bottom line. And underscoring all this is the ultimate aim of having a positive impact on the planet.

“WHEN BUSINESSES CHOOSE TO BE MORE SUSTAINABLE, THEY CAN REAP A NUMBER OF SHORT AND LONG-TERM BENEFITS”

TP: On people and purpose, how important is it for change to be instigated across an entire supplier network and how should organisations work with their suppliers to achieve shared objectives?

MD: Important as it is for this change to come across the board, it’s something that will take time and organisations need to prioritise where they have the greatest need and/or can have the greatest impact. Transformation of any kind brings with it certain challenges and we have to allow users of new systems and processes the time to understand and adjust to the change.

Through consistent communication and forward planning, organisations can partner with their suppliers to align on and work towards shared goals. As I already mentioned, the ‘three Ps’ in the triple bottom line are interconnected and so is the impact that partner organisations have throughout a supply chain.

TP: Do you think the supply chain or procurement function is well placed organisationally to drive broader ESG or sustainability-focused change?

MD: Absolutely. Procurement and buying teams are being brought into conversations

“IT’S EXCITING TO SEE THE SHORT-TERM TACTICAL CONVERSATIONS ON COST SAVINGS SHIFT TO MORE LONG-TERM STRATEGIES TO BE MORE SUSTAINABLE”

surrounding organisational-wide objectives on sustainability in new ways. The pandemic has accelerated this conversation and it is exciting to see the short-term tactical conversations on cost savings shift to more long-term strategies to be more sustainable.

The procurement function in any organisation can be harnessed to gain precious insights that can help steer its sustainability goals. By diverting spend towards more responsible, eco-friendly suppliers, or choosing partners who can collaborate to create net-zero solutions, organisations can help develop an ecosystem that enables sustainability.

TP: On this theme, what should be the key priorities for organisations and CPOs over the coming year and beyond?

MD: We know the pandemic has highlighted that organisations need to be able to adapt and change, and transform and pivot quite quickly in the face of unexpected and volatile situations. I believe this can be achieved by:

1. Accelerating digital transformation to streamline and automate tactical, repeatable tasks and save time for strategic work.

2. Building supply resilience to protect against future disruptions, with the aim to reduce costs and maximise savings.

3. Being led by data and insights to make informed and quick decisions.

4. Building and strengthening relationships (the human element) to emphatically communicate the value procurement is bringing the business.

Molly Dobson

Molly Dobson is General Manager of UK & Ireland for Amazon Business, the global procurement solution that helps millions of customers reshape their procurement with cost and time savings, greater productivity, and insightful purchasing analytics. Prior to her role at Amazon Business, Dobson was Head of Amazon Business Enterprise, helping deliver a dynamic B2B marketplace solution to the UK and Ireland. She has also held category lead and merchandise planning lead positions for Amazon Business EU, in fashion, luggage, travel and eyewear. An MBA Graduate from London Business School, Dobson has over 10 years’ experience in the retail sector and has spent her career at Amazon working with organisations and teams in the US, Luxembourg, Paris, and London. She is passionate about making an impact, and about developing others who are interested in doing the same.

Find out more about Amazon Business Reshape www.business.amazon.co.uk /en/events/reshape

MATTERNET

Elegant, architectural, unassuming –you’d be forgiven for thinking that Matternet’s ‘Station’ is less cutting-edge automation and logistics technology, and more eyecatching urban sculpture. But who says you can’t have both?

Matternet, that’s who. The company – the developer of the world’s leading urban drone logistics platform – launched the Station last year, bringing to completion a holistic logistics platform that, when used with the company’s M2 drone and cloud platform, will enable automated urban drone delivery across city-wide networks. When rolled out, this will allow automated loading and temperature controlled product storage, self- serve package retrieval for anyone and automated drone payload and battery exchange.

In a world of fast-moving innovation, Matternet has been a consistent first: it was the world’s first to be authorised for beyond visual line of site drone logistics operations, enabled the first FAA-approved drone airline in the US and, last year, powered the first COVID drone vaccine delivery in the US.

www.mttr.net

B U D A P E S T

WORDS BENCE JENDRUSZAK

With its kaleidoscope of Romanesque, Gothic, Renaissance and Baroque architecture, few cities can match the incredible charm of Budapest. However, the ‘Heart of Europe’ has more to offer than just beautiful buildings. The buzzing metropolis has recently become a hotspot for some of the continent’s most exciting tech startups. Nowhere is this more apparent than the city’s famous District VII. The once gritty neighbourhood has undergone a major transformation and is now an ideal spot for budding entrepreneurs looking to grow their businesses.

Budapest is changing at breakneck speed, undeterred by the effects of the pandemic. Whether you’re just getting off the ground, or looking to establish a strong foothold in Europe, the Hungarian capital now offers endless opportunities, perfectly suited to the realities of modern business.

BUSINESS

Like most major cities, Budapest has witnessed a boom in co-working spaces in recent times. HubHub is a great example of this trend at its very best. The company’s Budapest site caters to all businesses but is particularly tapped into the city’s emerging startup scene. In fact, they often host engaging startup events there, which offer a fantastic opportunity to network. The space is fully equipped with all the tools you need to run a successful company and is helping many exciting businesses take the next step on their journey to market.

There’s also Urban Lobby, a lounge and co-working space that offers round the clock access at an affordable rate. The pristine space accommodates local digital nomads, as well as international travelers working on the move. In many ways, it perfectly encapsulates the modern appeal of Budapest and embodies the city’s inclusive attitude towards business.

HUBHUB

THE HUBHUB TEAM

URBAN LOBBY

STAY

Before developing its reputation as a hub for emerging businesses, Budapest was perhaps best known for its wealth of world-class hotels. One of the best choices in the city’s District VII region is the wonderful Stories Boutique Hotel Situated next to HubHub, the amazing venue is at the heart of one of Budapest’s coolest neighborhoods. In fact, it’s just a stone’s throw away from some of the city’s hottest bars and restaurants and walking distance from some noteworthy cultural landmarks, including the Dohány Street Synagogue and St. Stephens Basilica.

STORIES BOUTIQUE HOTEL

Better still, when you stay at The Stories Boutique Hotel, you don’t only

STORIES BOUTIQUE HOTEL

get access to a nice room in a superb location. Staff work tirelessly to ensure they’re providing special experiences to their guests, from chef dinners to yoga, haircuts and tattoos. It’s the ideal venue for travellers, or business professionals who need to take in a new city, but still want access to some of those important home comforts.

Bence Jendruszak co-founded hyper-growth startup SEON , while studying at the elite Corvinus University of Budapest. He specialises in helping high risk merchants to accurately prevent fraud using integrated machine learning fraud prevention API solutions. A regular startup pitch winner with Lendit London and advocate of safer digital transactions for all merchants and financial institutions, Bence’s aim is to democratise fraud prevention solutions for businesses across the internet. His company, SEON has been featured in Forbes’ ‘Hot Startups to Watch in Europe’ and was recently named as the world’s fastest growing fraud prevention company. In the last year alone, the company has added over 150 new staff members and opened new offices in Austin and Jakarta. www.seon.io

EAT / DRINK

As something of a ‘foodie’, I perhaps most appreciate Budapest for its world-renowned eating and drinking scene. The city has so much to offer in this area and you’re almost guaranteed to find a great spot down any street you wander. Still, it would be remiss of me not to provide some of my own personal favorites.

I’ll start with Dorado Café, which is quietly tucked away near Klauzal Square. Stylish, cozy and with superb coffee, the spot has become a popular haunt for remote workers and tends to attract a young, hip crowd. It’s the ideal venue for a casual breakfast meeting, or to host a catch-up at lunch with friends, or colleagues.

If you’ve taken my advice and stayed in The Stories Boutique Hotel, then you must check out Twentysix , one of the city’s most unique restaurants. Situated below the hotel, Twentysix serves nutritious, soulful Mediterranean food, alongside stunning cocktails. If that doesn’t relax you, then the venue also houses a full yoga studio for its diners to use.

TWENTYSIX

Finally, there’s Mazel Tov, an open-plan cultural space in the center of District VII, which specialises in traditional Middle Eastern food. The restaurant’s name is a nod to its location in the city’s historic Jewish Quarter. Once you’ve finished eating, why not take a stroll around the area and see some of the other terrific sights nearby.

LEISURE

There are so many ways to explore Budapest, but perhaps none as fulfilling as by foot. Walking from District VII to the world-famous Danube River is particularly scenic. The route will take you past some of the city’s wondrous landmarks, as well as the beautiful District V. Of course, the

Danube River itself is an amazing sight to behold. Most importantly, it offers a great backdrop for Instagram pictures!

The Buda Castle should also be considered a must-see, while in the city. First completed in 1265, the castle sits atop of Castle Hill and offers sensational views of Budapest. Once home to Hungarian royalty, the castle is now open to tourists and houses the Hungarian National Gallery and The Budapest History Museum. Both the gallery and the museum are also fantastic and well-worth checking out if you’re in the area.

HUNGARIAN THE PURCHASER MAGAZINE | ISSUE EIGHT

G lo B al events calender

AMAZON BUSINESS RESHAPE 2022

10 MARCH 2022 | Online

Industry experts and Amazon leaders will share insights on how to create value for organisations by using the latest in purchasing innovations.

> VISIT WEBSITE

AMERICAS PROCUREMENT CONGRESS

17-18 MARCH 2022 | Miami, USA

Be part of conversations focusing on how to build for the future beyond day-to-day firefighting. Debate, share and find solutions to drive your business forward.

> VISIT WEBSITE

GARTNER SUPPLY CHAIN SYMPOSIUM/XPO

6-9 JUNE 2022 | Orlando, USA

Insights, strategies and frameworks for CSCOs and SC leaders to build the sustainable, societal and profitable supply chain required for a dynamic world.

> VISIT WEBSITE

THE GLOBAL SUSTAINABLE SUPPLY CHAIN SUMMIT 2021

8-9 JUNE 2022 | Online

The GSSC addresses sustainability topics and celebrates both organisations and individuals that are leading the way to a more sustainable future.

> VISIT WEBSITE

WORLD PROCUREMENT AWARDS

15 JUNE 2022 | London, UK

Recognised as the pinnacle of professional achievement, the World Procurement Awards celebrate the most impressive individuals, teams and organisations in procurement.

> VISIT WEBSITE

DIGITAL PROCUREMENT WORLD

21-22 SEPT 2022 | Amsterdam (+ online)

Where the world’s biggest brands in procurement showcase cutting-edge innovations that will pave the way for the future of procurement.

> VISIT WEBSITE