The Purchaser Issue 10

That we’re not only continuing to discuss the impacts of COVID-19 on supply chains, procurement functions and their people, but also the ways in which the pandemic has forever changed how we strategise, operate and consider those functions, gives an indication – if still needed – of the level of disruption the world has collectively faced over the last couple of years.

Those in the aviation industry know this more than most. At the onset of the pandemic, business stopped overnight, aircraft were lovingly tucked into storage and procurement functions were dragged into self preservation mode. That’s certainly true in the case of US airline JetBlue and its General Manager of Indirect Sourcing Alex Schoener.

In this issue Schoener details the impact of the last two years discussing how,

against a backdrop of ongoing procurement transformation, centralisation and the nurturing of a strong mindset and effective partnerships, he and his colleagues navigated their way through the pandemic. It was that transformation that helped provide the flexibility, adaptability and strategic approach to adding value that helped steer the business through the worst of the challenges and which, now we’re returning to a semblance of normality, continues at pace.

Those attributes – flexibility, strategic nous, an understanding of how the function aligns with business objectives and a dedication to trusted partnerships – are crucial to all organisations now. You can see that in our interview with the University of Tennessee’s Shay Scott and Andrea Sordi, whose work at the institute is instilling the traits of tomorrow’s supply chain and procurement leaders in its students, or in our discussion around managing the shift to hybrid working or taking the lead on driving circular initiatives.

While challenges still exist, these are valuable lessons in future-proofing our profession.

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

56 | PERSPECTIVE HYBRID PROCUREMENT

Diego Barilla on technology, hybrid work and procurement

62 | INTERVIEW UNIVERSITY OF TENNESSEE

On driving procurement digitisation and strategic transformation

86 | INNOVATION ENTER THE DRAGON

Welcome to Google’s mysterious and innovative Bay View Campus

86 | DISRUPTOR CRUZ FOAM

Say goodbye to EPS and plastic packaging. Forever

88 | CITY GUIDE

48 HRS: VIENNA

Business and pleasure in the Austrian capital

96 | CALENDAR EVENTS

The best events for 2022

Manual out, digital in

Rotem Hershko, Senior VP and Head of Business Platforms at Maersk, has explained that challenges seen over the last couple of years have further shown the lack of automation and digitisation in the supply chain industry.

Speaking with WIRED during a special briefing on digital supply chains, Hershko said that the way the industry serves customers and operates its back-end systems is still ‘very manual’, a by-product of being manual is a lack of rich data needed to optimise solutions, he added. New talent in the organisation that can drive digitisation is crucial, said Hershko, adding that Maersk is embracing data to give access to real-time information, and increasing its use of IoT solutions.

www.wired.co.uk

SECURING OPEN SOURCE

At its recent Security Summit, Google focused significant attention on software supply chain security. Specifically, the company announced the launch of Assured Open Source Software, a new initiative aimed at securing the open-source software supply chain and providing enterprises and governments access to the same vetted open source packages it uses in its own projects. Said Group Product Manager, Security & Privacy Andy Chang: “There has been increasing awareness in the developer community, enterprises and governments of software supply chain risks,” citing a 650% year-over-year increase in cyber attacks aimed at open source suppliers. www.cloud.google.com

Tesla cites persistent challenges around supply chain, including chip shortages and COVID-19 outbreaks, in its first-quarter performance report.

“OUR OWN FACTORIES HAVE BEEN RUNNING BELOW CAPACITY FOR SEVERAL QUARTERS AS SUPPLY CHAIN BECAME THE MAIN LIMITING FACTOR”

SUSTAINABILITY EMPOWERED

If we’re to take sustainability seriously, we have to tackle the emissions that occur across our supply chains. And why not let Microsoft help? In a recent blog, the company announced the launch of Microsoft Cloud for Sustainability, which will collect emissions data from the supply chain, process and understand it. This, says Microsoft, ‘will empower organisations to more easily record, report and reduce their environmental impact’.

www.blogs.microsoft.com

Bridging

Create a 21st century supply chain by considering six key factors. According to KPMG, they are:

> Ethical supply chains

> A workforce for the future

> The right tech

> Data-driven decisions

> Micro supply chains

> Customer-centric supply chains

KPMG: The future of supply chain

the gap

HOW-TO: PROCUREMENT SUCCESS

One of the biggest barriers to universal health coverage and economic development in many African regions is insufficient or poor infrastructure. According to drone manufacturer Wingcopter, bridging the infrastructure gap through the deployment of as many as 12,000 of its drones, will enable faster, more effective and climate-friendly logistics services. Together with Continental Drones, Wingcopter will enable the rapid deployment of vital medicines, vaccines and samples, and essential goods.

www.wingcopter.com

The world of procurement has changed, permanently. But there is hope, according to consulting firm Bain & Co. In a recent paper, it tackled the mammoth task of how to succeed in procurement in 2022. Quick hits to rapidly improve P&L can buy some breathing space, says Bain & Co, but to succeed in the long term procurement leaders must broaden their toolkit by finding ways to capture value and strengthen operational resiliency. This, it added, should be done against six ‘new markers of success’ for procurement teams: value management, procurement strategy, sustainability, organisation and operating model, category management and supplier management.

www.bain.com

TOYOTA PAUSES

The global semiconductor shortage continues to impact business worldwide, particularly automotive companies. Take Toyota, for example, which at the end of May announced plans to introduce rolling pauses on 16 production lines across 10 of its Japanese plants. It added that ‘the shortage of semiconductors, spread of COVID-19 and other factors are making it difficult to look ahead’.

www.global.toyota

PRINCIPLES, PLANET, PEOPLE

FedEx decreased its carbon dioxide emissions intensity [on a revenue basis] by 45% from FY09 through FY21, a period during which its average daily package volumes grew by 180%. The company set out its achievements to date, as well as more details about its ambitious sustainability objectives, in its latest ESG report. To achieve these goals, said FedEx, it continues to invest in aircraft fleet modernisation, alternative and sustainable fuels, transitioning its entire parcel and pickup delivery fleet to zero emission vehicles by 2040, and working on natural carbon capture projects. www.fedex.com

Apple warns it could see a hit of as much as $8bn in its second quarter after challenges that include supply chain shortages and factory closures in China.

Representatives of the Advanced Medical Technology Association (AdvaMed) urge the Biden Administration to ask semiconductor manufacturers to prioritise the healthcare system.

Walmart announces expansion of its DroneUp drone delivery network to 34 sites by the end of 2022, providing the potential to reach four million US households across six states.

CEO of electric vehicle manufacturer Rivian Automotive, RJ Scaringe warns the industry could face a shortage of battery supplies due to growing demand for EVs.

Store-hailing platform Robomart partners with Unilever to launch on-demand, automated mobile ice cream markets in Los Angeles.

Amazon launches ‘Buy with Prime’, a new service that allows Amazon Prime members to shop on online stores beyond Amazon.com.

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The Blue

TheInto Blue

JETBLUE’S ALEX SCHOENER DISCUSSES PROCUREMENT TRANSFORMATION, WORK AND SUCCESS IN THE AVIATION INDUSTRY AND MEETING COVID DISRUPTION HEAD ON

Alex Schoener is an experienced and respected procurement leader with an in-depth understanding of what makes the modern procurement function tick. And, during our recent wide-ranging and fascinating conversation about the intricacies of his work, procurement transformation and navigating COVID disruption at US airline JetBlue Airways, Schoener’s passion for his work couldn’t have been more evident. That he also gets to bring his experience, skills and knowledge for procurement and supply chain – subjects he has been involved with since first studying them at university – to the company leaves little doubt of just how infectious a career choice it has been.

And that’s saying something for an industry and function that has likely suffered the impact of the global COVID-19 pandemic more than most. It’s not an understatement to say that COVID brought JetBlue, together with all the world’s airlines and their employees, challenges the likes of which likely hadn’t been truly considered, let alone experienced before. But if a life in procurement and supply chain has taught Schoener anything, it’s that flexibility, adaptability, strong leadership and culture can bring some remarkable results.

“TODAY’S PROCUREMENT FUNCTION, CERTAINLY HERE

AT JETBLUE , IS ABOUT BEING A VIABLE, CENTRALISED FUNCTION THAT DRIVES MAJOR PROJECTS AND COMPANY-WIDE INNOVATION”

It’s these qualities that Schoener and his colleagues have brought to procurement, or sourcing, at JetBlue over the four years he has been with the business, and which have also helped drive a significant and continuous procurement transformation that has benefited both it and its customers. Schoener originally joined JetBlue in mid-2018, assuming the role of Manager, Strategic Sourcing, in which he was responsible for building a team to manage high-profile sourcing initiatives. He and his team’s success have seen him building the procurement brand to great effect within the organisation and an evolution to the role he holds today: General Manager of Indirect Sourcing.

PROCUREMENT EVOLUTION

It is, he explains, the culmination to date of a life in procurement during which the function and its role have evolved significantly. “Over the last decade or so, I think we’ve seen a really interesting period of change and transition, particularly in terms of the function becoming far more centralised and, at the same time, playing an elevated role for its respective organisations. There’s perhaps a tendency for some to think about procurement and focus on its legacy – being tactical and centred around the basics of ‘going out and buying’.

terms or leading on broader corporate objectives such as diversity and inclusion or sustainability. Today’s procurement organisation, certainly here at JetBlue, is about being a viable, centralised function that drives major projects and companywide innovation and, of course, getting the best value on every deal.”

Such a transformation has been evident at JetBlue in the four years that Schoener has been with the business. By his own admission, when he started in 2018 procurement was in a ‘nascent state’ and embarking on the early stages of its evolution. He explains: “There was a procurement team, but it was smaller, highly tactical and focused on procurement operations and ad hoc RFPs. There was some strategic sourcing, but not true category management.

“That’s changed,” he adds. “Now, procurement is far more strategic and is central to driving value across the entire enterprise, whether that’s maximising commercial

Alex Schoener General Manager of Indirect Sourcing, JetBlue Airways

“Within that environment, I joined to build out a new team called delivery and execution that would be responsible for working on large and high-profile sourcing projects across all categories, both direct and indirect,” says Schoener. “The goal was to drive value and build up the brand proposition of the sourcing organisation within the business. I built a team of five and was able to run sourcing projects effectively and quickly, demonstrating how a consistent ethical process delivers results.

“We were successful, and we were able to evolve the sourcing proposition, growing to take on a lot of spend that hadn’t been managed by the sourcing team prior to

that evolution,” he explains. “It evolved steadily, with our team taking on more – things like infrastructure and facilities, marketing which encompasses everything from creative and media agencies through sponsorship partners, our loyalty programme and so on. About a year ago, and continuing that transformation journey, we had grown to the point where it made sense to structure the team as a best practice direct and indirect organisation.”

INDIRECT SOURCING

Today, Schoener’s role encompasses all indirect sourcing for JetBlue. “Essentially, that’s all categories that support the business and its operations – direct, in this instance, being specifically around the

“I BUILT A TEAM OF FIVE AND WAS ABLE TO RUN SOURCING PROJECTS EFFECTIVELY AND QUICKLY, DEMONSTRATING HOW A CONSISTENT ETHICAL PROCESS DELIVERS RESULTS”

the capital construction of new hangars or facilities, and our facilities management team; HR, benefits and talent acquisition also fall under corporates services, as does travel, which often surprises people – yes, we’re an airline so getting from A to B isn’t necessarily an issue, but it’s a huge operation in terms of hotels and transportation for our front line crewmembers [the airline’s term for all its employees]. My team’s responsible for everything within the source- to-contract value chain, from spend analytics, category management, sourcing and contract management.

maintenance, parts and operations of our fleet of aircraft,” he says. “The indirect team consists of nine people split into two category teams and covering about a half billion dollars’ spend. Breaking down that structure a little more: one category manager and their individual contributors covers off the IT, marketing and professional services side which includes some areas specific to airlines, an example being the in-flight entertainment and connectivity systems on the aircraft.

“Then there’s corporate services,” continues Schoener. “For JetBlue, that encompases several areas including infrastructure and property development, which includes

Schoener is an experienced and respected leader with a passion for people and problem solving. In the little over a year since assuming his current role, he and his team have continued to evolve the sourcing function within JetBlue driven by three key areas of focus he set out in the early stages. “The first objective was to build the right team and set it up in the correct way that works for the business. That’s a combination of making sure you have the right people and ensuring they’re positioned in the correct role to succeed. Secondly, we made sure that as a function we would be able to deliver on large enterprise goals such as structural cost targets and supplier diversity.

“The third pillar was around crewmember development,” adds Schoener. “It’s essential if you want to have a high-performing team. It also helps with growing new potential within the business because you’re hiring and promoting from within, and

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“WE ALL FACED A SCENARIO WHERE BASICALLY OVERNIGHT, DEMAND FOR AIR TRAVEL JUST FELL OFF A CLIFF”

it’s good for morale, results and culture, which are all hugely important here at JetBlue. From the start, we’ve had individual development plans in place with every single member of the team: we conduct training sessions, work on negotiating skills, presentation training and one-onone coaching sessions. It’s been really successful to date, but you never stop working towards these kinds of objectives.”

TEAM, MINDSET AND CULTURE

Any significant transformation programme relies as much on mindset, culture and morale as it does anything else. That’s been no different at JetBlue. Indeed, much of Schoener’s work has been around proving

value, demonstrating potential and using success to evolve the organisation’s mindset when it comes to the power of an effective sourcing team. Culture, he explains, is crucial to the success of the business, which nurtures its employees and their objectives in line with five defining values: safety, caring, integrity, passion and fun.

“It’s really important,” affirms Schoener, “and, as a business, we’re absolutely founded on our culture. Setting those values is key to ensuring a collective drive forward. From a team perspective, I’m particularly proud of the fact that during our annual surveys of employees, we’ve consistently scored among the highest in the company in areas like inclusion, trust in senior leadership and so on. Leading, in particular, is something I’m always focused on and I think it’s very important to lead by example, but to also make sure you give people enough room to grow and learn on their own.

“We have a saying here: ‘plan the work, work the plan’ and I interpret that as setting the example, putting in place strong processes and then letting individual team members work those processes,” he adds. “As an example, I like to give subcategory ownership to individual contributors. It’s a great way of allowing everyone to interact directly with key stakeholders across the business and build those important relationships that are needed in our line of work.”

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THE POWER OF PARTNERSHIPS

Equally important is technology, particularly in a modern and complex sourcing function like that at JetBlue. Schoener is an advocate for digital adoption, particularly with regards to using the latest tools to make processes more effective, give greater visibility over activities or manage and analyse data with greater accuracy, implementing managed services or improving the supplier onboarding process. Specifically with regards to the latter, Schoener highlights two key strategic business partners in Tata Consulting Services (TCS) and ApexAnalytix. With both, as with all partners, he stresses the importance of close collaboration,

trust and transparency, and a collective ambition for success.

“It’s the reason we call them business partners,” elaborates Schoener. “It’s a two-way relationship that we want. There’s no traditional approach around ‘are we just cutting the best deal here?’, because that isn’t a relationship. Rather, we’re passionate about working with partners like TCS and ApexAnalytix to drive efficiencies together, develop new technologies or innovative approaches and to have an open dialogue around how we do that. With regards to TCS, we’ve had a longstanding engagement with them around our IT but, during COVID disruption, we were forced to consider our

“AS A BUSINESS, WE’RE ABSOLUTELY FOUNDED ON OUR CULTURE AND CREWMEMBER DEVELOPMENT”

processes to understand where the most strategic value was and where to focus our attention. Naturally, that was in areas such as category management and strategic sourcing. On the other hand, we doubled down on a managed services model with embedded advanced technologies to elevate/drive value in areas like procurement operations and catalogue management.

“After a lengthy RFP we identified TCS as the best partner to come on board and make that journey with us,” he adds. “They have expertise in the space, they’re already a trusted business partner and we have a great relationship, so it seemed

ideal. One of the benefits of the managed services model is that we can keep our processes working at all times and scale up and down as needed. TCS has delivered on every one of the pretty stringent SLAs we implemented and at a very high level, leveraging their deep contextual knowledge and their AI-driven, humanmachine collaboration suite, TCS Cognix, giving us the expertise and flexibility that we didn’t previously have. Now they’re just embedded with us; I don’t look at them as separate, they’re just an extension of my team.”

ApexAnalytix too proved invaluable during the significant challenges placed upon the airline by COVID, says Schoener. The two businesses have had a long partnership, initially based on payment innovation and technology for business partners, he explains, but this has grown more recently. “It’s really expanded and includes the use of their supplier portal, which is a really great piece of technology

for when we want to set up new partners. Both parties can use the portal, it allows real-time access for updating contact information, payment information and more. Similarly, to mitigate challenges around cash preservation and discounts – which were even more necessary than they were before the pandemic – we implemented another Apex tool called Dynamic Discounting, which has allowed us to capture additional early payment discounts from our partners and has been really beneficial.”

COVID AND THE FUTURE

That COVID drove much of this innovation, and at the same time formed a complex and challenging backdrop to the ongoing

procurement transformation process at JetBlue is an understatement. “It’s no exaggeration to say that it’s probably been the worst period in the history of the industry,” Schoener states.

“We all faced a scenario where basically overnight, demand for air travel just fell off a cliff – stopped. For us, like everyone else, it was huge. We’d had a very successful 2019 and were looking to build on that in 2020. The next moment we were flying our aircraft out to storage sites in the desert and facing very real questions about how, as an airline whose primary business is selling seats, do you continue to stay viable as a company and be sure you’re positioning yourself for the future?”

For Schoener and team, the focus shifted to cost saving in the short team. With aircraft non-operational the airline was driving down costs associated with flying operations, he says, but more was needed. “Airlines are generally pretty capital intensive and high cost, and even though our variable costs of flying were down, you have a vast amount of fixed costs. The role we took on initially was to consider how we can work with our business

partners to ensure we weren’t spending money unnecessarily. We basically pivoted very quickly from typical category management work and large sourcing projects to preservation mode. To do so we considered those partners across two categories: variable and fixed spend. With those variable costs, we didn’t focus too much on trying to save – we were flying less so we were going to just inherently be spending less money on things like cleaning aircraft, as an example.

“The fixed costs were the bigger challenge,” says Schoener. “They’re not tied to flight volumes, they’re based on longer term business assumptions and so we ultimately had to renegotiate many of

those agreements which, thankfully as a result of the strong business partner relationships myself and the team had cultivated, we were able to do successfully. Elsewhere, across both groups we did things like extend payment terms and reduced rates.”

As the effects of the pandemic continued the focus became more strategic, says Schoener, shifting from preservation to a careful consideration of structures and contracts, including introducing various protection clauses, and more creative methods of generating liquidity such as sale leasebacks of aircraft. Demand is finally returning to the industry, and for all its challenges, the period of disruption

“I THINK IT’S VERY IMPORTANT TO LEAD BY EXAMPLE, BUT TO ALSO MAKE SURE YOU GIVE PEOPLE ENOUGH ROOM TO GROW AND LEARN ON THEIR OWN”

proved valuable in further demonstrating the effectiveness of the work of Schoener and his colleagues in evolving the company’s sourcing function.

“It really highlighted the need to have a centralised procurement function within the business and, while we’re back in a more traditional category management structure, running real RFP projects and working on those corporate initiatives, the focus on setting ourselves up effectively for the future has never been higher,” he states. “We’re structuring our contracts in ways that they’re sustainable and long term, we’re getting involved in areas that we haven’t traditionally been

involved in and we’re benefitting from the fact that, as a team, we’re one of the few that really touches everyone in the business. The global supply chain continues to face a host of challenges and the sourcing team can play an important role for the business, particularly when it comes to ensuring we’re developing multiple supply sources and working to minimise risk – the visibility for procurement or sourcing teams has never been higher.”

As recovery continues, Schoener and colleagues will hone, fine tune and perfect the sourcing brand within the business. Success to date has been significant, he says, and work undertaken by the team

“CREWMEMBER DEVELOPMENT IS ESSENTIAL IF YOU WANT TO HAVE A HIGH-PERFORMING TEAM”

has demonstrated the potential benefits well. “It’s been a significant journey for us as a team within the business. Internally we’ve been really successful too, with our crewmember development ensuring that we’ve been able to promote and hire from within and build a strong team. For the business, having a centralised function frees up stakeholders to better execute on their objectives, we can take the lead on the important initiatives and workstreams, negotiate and preserve partner relationships and make sure we have the kind of consistent ethical processes that deliver value.

“The core objective for JetBlue is all about customer experience,” he says. “Our future goals are around refining and improving that service and experience even more.

Of course, we’re here to maximise value but we also want to give our customers the very best experience when they travel with us, whether that’s sourcing snacks and in-flight entertainment or looking at the best possible seat materials. No two days are the same in this job, which is why adaptability is key. But that’s also what makes it so interesting – it’s strategic, gets you working on projects and communicating across the entire business, and it’s a great career path.”

www.jetblue.com

Portfolio

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ICAROS HOME

No. VR exercise doesn’t mean you’re pretending to work out. Whether you’re flying, driving or anything else you can do in this fitness-meets-VR world, the ICAROS Home is the real deal. The product of German brand ICAROS, the Home is 21st century workout tech at its finest. Optimised for home use and compatible with VR headsets, screens and tablets, the Home lets users move through various virtual worlds, work a broad range of muscle groups, improve core strength and improve reflexes, balance and coordination. Without taking a single step.

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Portfolio

i nnovative and ins P ired items for work, leisure and sustainable living

STIR IT UP TURNTABLE

Not everything has to be digital, as is evidenced by our ongoing love affair with vinyl. To get the best from your record collection a good turntable is a must. The Stir It Up wireless turntable ticks that box, and every sustainability box going, too. Take its solid bamboocrafted plinth, which is produced using a carbon positive process and has a tensile strength that rivals steel. Its makers, House of Marley, also use REWIND, a fabric weaved from recycled materials including PET and reclaimed organic cotton, as well as recyclable aluminium and paper.

www.thehouseofmarley.co.uk

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i nnovative and ins P ired items for work, leisure and sustainable living

CONNECT SMART GRILLING HUB

When the sun’s out, nothing beats a barbecue. Except never again having to worry about overcooking, undercooking, the heat of your grill and burning. Which is why, if you’re serious about summer eating, the Weber Connect Smart Grilling Hub is your friend. Battery powered and connected to wifi, the hub unit connects to your grill and acts as your personal grilling assistant, sending notification to your phone on a dedicated app covering everything from food readiness and estimated cooking time, to when you’re ready to ‘flip and serve’.

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i nnovative and ins P ired items for work, leisure and sustainable living

SEGWAY SUPERSCOOTER GT2

A scooter with a difference, as you’d expect from anything with the word super in its title. But Segway hasn’t just gone for gratuitous use of superlatives with its latest electric scooter range, it really means it. The GT2 is capable of 70 kph and a 0-30 mph time of just 3.9 seconds, can travel 55 miles between charges, and has front/rear damper adjustable suspension and offroad capability. It also includes an innovative torque adjustment system that increases traction on slippery roads, different riding modes and a boost button for ‘blasting speed’.

www.segway.com

Portfolio

i nnovative and ins P ired items for work, leisure and sustainable living

NOMAD 10

One of the first steps towards self-sustainable life: get yourself your own solar panel. Granted, the Nomad 10 won’t keep your home running all by itself, but it’ll let you adventure, roam and work al fresco while keeping your phones, power banks, headlamps, fitness trackers and other small USB devices running. It’s lightweight enough to be strapped to a backpack or tent and folds down to be stored easily. There’s also a built-in kickstand that clicks into place at multiple angles, thus making Nomad 10 easy to position for optimal solar collection.

www.goalzero.com

Fixing ‘broken’ procurement

no one likes broken procurement processes. Least of all Tai Alegbe, co-founder and CEO of Contingent, the SaaS platform he developed to fix the breaks and fundamentally change how procurement is done.

It does so through its innovative Supplier Insight & ThirdParty Risk platform, which is designed to improve procurement for the whole business by reducing risk and friction across the supply chain. Despite being core to how all businesses operate, there is too much friction in the process of procuring goods and services. To rectify this, Contingent provides real-time supplier insights that improve transparency and visibility, help build resilience and meet regulatory requirements, and allow procurement and supply chain leaders to manage the process in a more strategic way.

The platform measures resilience across several areas, including corporate social responsibility, environmental, social and governance and financial. It also places sustainability at the heart of decision making.

www.contingent.ai

“The typical questionnaire process to onboard suppliers is widely accepted to be fundamentally broken”

TAI ALEGBE, CONTINGENT

MARK MORLEY DISCUSSES THE RISE OF THE CIRCULAR ECONOMY, HOW SUPPLY CHAINS AND SUPPLY CHAIN LEADERS CAN DRIVE CHANGE AND WHY IT’S NOW OR NEVER

THE CIRCLE OF LIFE

There is no more time to waste when it comes to making a positive impact on the environment, driving sustainability initiatives and taking the lead in transforming the world for the better. Supply chain and procurement functions must play a crucial role, not only in tackling emissions across their networks and nurturing diversity and inclusion, but in embracing circular economy thinking and shifting from a waste management to resource management mindset. Here Mark Morley, Senior Director, Product Marketing for Business Network at OpenText, discusses circular supply chains in more detail.

The Purchaser: Tell us a little about your role and responsibilities at OpenText and elaborate on how the business is encouraging the development of circular and ethical supply chains?

Mark Morley: OpenText has one of the largest business networks in the world, connecting over 1.1 million companies who collectively exchange over 33 billion B2B transactions per year. A key part of our solution and what we provide to customers is a frictionless information exchange and end-to-end business visibility with a single digital backbone across business ecosystems. It’s this that’s a critical part of how to deliver a circular and ethical supply chain.

my deep manufacturing industry knowledge, I put this to good use for industry and market analysis as well as provide blue sky thinking on how disruptive digital technologies such as IoT, blockchain and AI will impact future supply chain environments.

Why is this an important area for OpenText, and how does it reflect the work that the business already carries out in the supply chain space?

MM: Working with our customers to digitise their supply chains is a hugely important area for us because it’s the most critical way businesses can embrace more sustainable methods of working. Through the Business Network that OpenText operates, and which connects over 1.1 million companies, more than 33 billion transactions are exchanged every year, meaning we digitise 33 billion paper-based transactions, such as purchase orders and invoices annually. In this way, we’re helping businesses make significant reductions in greenhouse gas emissions, equivalent to the CO2 emissions generated by 167,423 cars in just one year and saving nearly 6.5 million trees in the process.

Within that, my role is to look after the product marketing activities for our Business Network Cloud division. With

This directly impacts and helps address climate change by reducing the overall carbon footprint for businesses. We all know that addressing climate change is a global challenge that is increasingly urgent, public and connected. As a tech industry leader, OpenText has both an

obligation and an opportunity to take action that will improve the well-being of our customers, our planet and our society as a whole.

Perhaps for some context, could you expand on the growing appetite for circular economy and circular supply chain initiatives in organisations and outline the key drivers influencing the transition?

MM: The rise in the appetite for the circular economy is simple. At the rate we are currently going in terms of how businesses are run or how we all consume things, we’ll need five planet earths to sustain us (according to the World Economic Forum). That simply isn’t an option. So, we need to

change our economic model and transition from a destructive linear system to a restorative circular economy.

In addition, businesses are seeing significant consumer demand for ethical products which is a significant driver in this transition. Whilst ethical spending was already high pre-pandemic, the drive towards ethical purchasing has seen a rapid increase. In fact, our global research found a quarter of those who favour ethical products have only started doing so since April 2020. And nearly a quarter would pay significantly more for ethical goods, with 84% also willing to compromise convenience in order to shop ethically.

So, how do we go about putting the notion of the circular economy into practice?

Fortunately, while the industrial revolutions have created this problem, they have also given us incredible new ways to find solutions. The movement towards the circular economy will be realised through the fourth industrial revolution technologies like the Internet of Things, artificial intelligence, cloud and big data analytics.

How would you define a circular supply chain and how different is it from the ‘traditional’ supply chain models we know well; are there any examples of organisations that have begun investing in circular economy models?

MM: The key difference is a shift from waste management to resource management.The

“AT THE RATE WE ARE CURRENTLY GOING IN TERMS OF HOW BUSINESSES ARE RUN OR HOW WE ALL CONSUME THINGS, WE’LL NEED FIVE PLANET EARTHS TO SUSTAIN US. THAT SIMPLY ISN’T AN OPTION”

circular economy decouples economic value from the use of natural resources and transforms ‘waste’ into a valued resource. Through this system, everyone wins. The economy wins, as new business models are introduced and resource management becomes more predictable. The environment wins, as human activity becomes more sustainable. And the individual organisation wins, as it can now extract maximum and repeating value from resources while cutting costs associated with waste.

of waste to landfills each year. In 2015, it announced that 240 of its factories were to operate on a zero waste to landfill model. By 2016, Unilever had 600 zero-waste facilities around the world. The company reports that it has realised cost benefits of $227m thanks to its zero waste program. Other organisations including Amazon, Target, Cisco, Walmart and Nike have also begun making investments in circular economy models.

Why do you think the supply chain is such an important function of the business for driving this kind of change?

MM: Supply chains power the world’s economies, connecting companies with trading partners located all over the globe. In the same way that companies use supply chains to source raw materials to manufacture products and then distribute to customers and retail networks, that same supply chain can be used to ensure that when a product reaches end of life it can follow the appropriate processes to recycle products to allow the manufacture of new products.

Unilever is widely seen as an exemplar of what can be achieved by adopting a circular supply chain. The company had previously sent 140,000 tonnes

Supply chains can already be instrumented with IoT, analytics and other technologies and these can be used to track returned goods, measure KPIs of goods being returned to their point of manufacture or to specialist recycling companies that can extract as much

material as possible to then contribute towards the manufacture of new products. So, in summary, the same supply chain or cloud integration environment can be used to underpin the end-to-end circular economy.

With that in mind then, why hasn’t there been a greater focus on developing circular models within businesses to date and, particularly with regards to the supply chain, what have been – or continue to be – the biggest barriers to change?

MM: As a result of the black swan event that was the COVID-19 pandemic, many organisations realised their supply chains were vulnerable. As we look ahead, now is the time to invest in building ethical supply chains so industry is better prepared for whatever the next catalyst for change may be. Without a catalyst event like this, many businesses did not want to try and overcome the barriers to change.

Nonetheless, there are still some barriers to change. Often the conflict between commercial and sustainability targets is the biggest barrier. Supply chain managers need to develop KPIs that take sustainability into account and build relationships with supply chain partners that revolve around sustainable business practices. To do this, resource thresholds and targets – such as those set out in the UN Sustainable Development Goals (SDGs) – need to be translated into tangible business actions and supply chain models.

How do supply chain functions and their organisations transition from the traditional linear practices to a circular model and what are the key considerations or areas of focus to achieve the transition?

MM : The traditional linear supply chain model is evolving as companies invest in multidimensional partner ecosystems that encourage innovation and new ways of managing production and supply chain operations. We are at the beginning of the journey to close the circularity gap, where waste materials are reused and made into new products to reduce waste.

There are a number of key considerations in making this change to a circular model.

Firstly, the technical foundation of the circular supply chain needs to be a connected information management platform. Building a circular supply chain involves rethinking packaging, shifting sourcing strategies, restructuring production processes, transforming distribution systems and developing closed-loop supply chain methods. It must be based around a scalable and flexible digital ecosystem of partners.

Job one, therefore, is to ensure all parties in the digital ecosystem can smoothly and securely access and share the data they need. This includes integrating new sources of data related to the expanded supply chain scope, such as product use and disposal information. Organisations need an end-to-end view of both the supply chain and the product or service lifecycle.

The other principal consideration is who you partner with and building trust, collaboration and transparency throughout the supply chain. A major part of building trust lies in the ability to trust the information that’s being shared. Partners must be assured that the data flowing between systems, facilitating elements such as product redesign and closed loop production, is current, accurate and secure.

What role should leaders take in helping to drive circular initiatives within their own chains?

MM: Supply chain leaders need to work with their leadership to ensure sustain-

ability is on the agenda, and if clear KPIs are not set then they should propose that they are built into the organisation’s goals. Without senior buy-in, it will be difficult to propose change as moving to a circular supply chain will take time and investment. But playing that part in building a sustainable future can no longer wait.

How can moving toward a bimodal supply chain can provide opportunities?

MM : Organisations are moving toward what has become known as the ‘bimodal supply chain’ – a two-tier supply chain where one tier is managed for predictability to maintain and manage existing, predictable operations and the other is designed

“WE NEED TO CHANGE

OUR ECONOMIC MODEL AND TRANSITION FROM A DESTRUCTIVE LINEAR SYSTEM TO A RESTORATIVE CIRCULAR ECONOMY”

for innovation by encouraging experimentation and exploration.

The second tier is also built for dealing with uncertainty, which can be created by circular strategies or by unanticipated disruptions. Employing small collaborative teams that can fail fast and evolve models quickly, an organisation can test different operational approaches to identify those that best suit the business. In terms of a circular supply chain, this may involve looking at new ways to engage and reward suppliers beyond cost and price concessions or performance KPIs.

How important will the adoption of digital technologies and the greater use of data be in driving circular supply chains, and can you give some examples?

MM: Few innovations will be as essential to creating a circular economy as the Internet of Things. IoT devices are becoming smaller, cheaper and more intelligent. With IoT, it’s now possible to achieve complete visibility throughout the entire supply ecosystem and production process. Factors like temperature, usage and quality issues can be monitored to improve logistics, make production more efficient and dramatically reduce waste.

As IoT is increasingly embedded in consumer spaces, it is also becoming possible to monitor products after purchase, as some automakers are already doing. As materials reach the end of their ‘first’

lifecycle, they can be tracked and flagged for recycling and reuse, putting them back into the production system rather than landfill. Supply chain spending on IoT devices is forecasted to increase by over 20% between 2017 and 2023. IoT is revolutionising supply chains worldwide. The EU has even established a framework for IoT in the circular economy to ‘drastically change the nature of products, services, business models and ecosystems’.

How important is an effective information management platform and why?

MM: Over the past decade, linear supply chains have evolved into collaborative

“THE MOVEMENT TOWARDS THE CIRCULAR ECONOMY WILL BE REALISED THROUGH THE FOURTH INDUSTRIAL REVOLUTION TECHNOLOGIES LIKE THE INTERNET OF THINGS, ARTIFICIAL INTELLI -

GENCE, CLOUD AND BIG DATA ANALYTICS”

ecosystems, driven largely by the globalisation of many of today’s businesses and the change from local to global sourcing of products. Through the cloud, companies can connect with suppliers anywhere in the world, collaborate with them on a regular basis and ensure information is available anytime, anywhere and from any device.

Like the shift from linear to collaborative, organisations transitioning to the circular economy must automate manual business processes and leverage cloud-based integration across both internal and external business ecosystems. A unified business network platform is the digital foundation

needed to support organisations as they embrace more ethical and responsible supply chain practices. There are three key principles; to connect and transform data for seamless information flows with any person, system or thing; to optimise and gain insight into transaction trends to optimise productivity and mitigate risk; and to grow: accelerating time to market, exceeding customer expectations and complying with mandates.

For the circular economy to operate seamlessly, organisations must not only think about how they receive parts to make products and distribute them to customers – they must also embrace reverse logistics and consider how they can facilitate recycling and reuse. Companies will need tracking and visibility on materials and products from end-to-end, all the way from material sourcing, to production and delivery, to consumer use and the eventual return of the product or material into the system for reuse.

What are the key real-time sustainability indicators that should be measured across the chain and how do they inform the wider strategic approach?

MM: There are a number of indicators, for example energy, emissions, water, materials, waste and workers’ health and safety. It’s important to make sure these indicators are updated in real time. For example, our Business Network solution integrates a number of data sources to give businesses

a clear picture in one view, whether that’s data about sourcing raw materials or conflict minerals reporting, through our integration with Ecovadis.

Why is full end-to-end visibility so important and how should those in the supply chain approach supplier relationships and collaboration?

MM: A circular supply chain eliminates waste from operations, recovers materials for reuse, and educates consumers about reuse and reclaim. But to achieve this, organisations must reach the holy grail for supply chain operations: full end-to-end supply chain visibility. An enterprise-grade integration platform enables the information flows needed to gain full visibility into all suppliers, customers and others involved in the value chain.

How important is it that businesses and supply chain leaders embrace the circular mindset, and what are the essential first steps to transforming the supply chain?

MM : Companies around the world are going to be forced to embrace a circular mindset as consumers become even more aware of what goes into the manufacturing of products that they buy and hence how those same products will be recycled at end of life. In fact, our global research found nearly a quarter would pay significantly more for ethical goods with 84% also willing to compromise convenience in order to shop ethically.

Nearly every company has been accelerating their digital transformation initiatives and embracing cloud-based solutions and services. CIOs are investing heavily in new digital backbones that will underpin these new digital transformation initiatives and providing them with a powerful foundation onto which they can explore new disruptive technologies. For companies to execute a successful circular strategy, they must ensure that all information flows are digitised and this means that every participant in the supply chain must be seamlessly connected to the digital backbone. Companies need to achieve 100% digitisation of their trading partner community if they are going to remain competitive in the market. They also need to ensure that the external ecosystem of trading partners is seamlessly integrated systems such as ERP.

“NOW IS THE TIME TO INVEST IN BUILDING ETHICAL SUPPLY CHAINS SO INDUSTRY IS BETTER PREPARED FOR WHATEVER THE NEXT CATALYST FOR CHANGE MAY BE”

Only when you have a fully digitised ecosystem can you begin to explore the power and new opportunities that the circular economy can provide.

www.opentext.com

Mark Morley

​​Mark has nearly 30 years’ industry experience across the discrete manufacturing sector. He is Senior Director, Product Marketing for Business Network at OpenText. In this role he leads the product marketing efforts for a suite of cloud integration, IoT and IAM solutions that help companies establish an end-to-end digital ecosystem to connect people, systems and things. Mark also has an interest in how disruptive technologies will impact future business environments.

“

MAKE SURE YOU DO THE MATH WHEN IT COMES TO YOUR SUPPLY CHAIN. WE CAN’T GO FAST ENOUGH IN DECARBONISING THE WORLD. IT’S TERRIFYING TO REALISE HOW SCREWED UP WE ARE AND HOW FAR WE STILL HAVE TO GO”

— JB STRAUBEL

REDWOOD MATERIALS

JB Straubel knows electric cars. He was, after the man that spent 15 years at Tesla as Chief Technical Officer, before moving into an advisory role in the business. He also knows the potential challenges to mass EV adoption, in particular the issue of millions of batteries needing an end-of-life solution.

Which is why, in 2017, he co-founded recycling startup Redwood Materials which aims to create a circular supply chain through the recycling of the scrap from battery cell production. Redwood helps partners in industries such as EVs, grid and renewable storage, manufacturing and consumer electronics to recycle batteries, electronics and other products at the end of their lives through the use of environmentallyfriendly processing and refining technologies. In turn, this allows it to produce key elements for circular supply chains.

MAKING PROCUREMENT WORK

Globality’s Diego Barilla on how the hybrid world of work opens new opportunities for technology to transform the procurement landscape

The world in which we work now is dramatically different to the one prior to the COVID-19 pandemic. As multiple lockdowns forced offices around the world to close their doors, businesses had to adapt quickly to embrace remote working in order to stay connected and survive during such uncertainty.

Despite most COVID-19 restrictions now being lifted, many businesses are choosing to maintain a hybrid-working model, at least for the foreseeable future. Companies are realising that not only is this way of working possible, but it is also efficient, sustainable and has opened up possibilities that conventional office working could not.

This is particularly prevalent in the procurement and supply chain sector. In fact, a recent Gartner survey found that 61% of supply chain leaders believe the pandemic has created a permanent

hybrid-working model in procurement teams, even with frontline staff. In short, hybrid working is likely to become the new normal and, as such, it is vital that procurement leaders understand and take advantage of the opportunities that come with it.

SOLVING THE TALENT PROBLEM

The immediate impact of the pandemic is not the only challenge that the procurement sector has had to face in the past two years. Ongoing repercussions such as supply chain disruptions and staff shortages are still commonplace – requiring executives to shift their focus toward finding new ways of achieving business resilience and adaptability.

By adopting innovative technology, organisations can transform the way they source services and, as the hybrid working model has demonstrated, there is no need for that external talent to reside in the same place as the business itself. In fact, thanks to new technology, business stakeholders now have the ability to achieve the same level of collaboration that used to take place in a conference room, with suppliers and contractors in any location around the world. Utilising AI-powered sourcing platforms and marketplaces for B2B services can help companies attract better talent and continue to grow and succeed by facilitating the same level of collaboration, communication and productivity as used to take place in an office.

THE PURCHASER Perspective

Moreover, the pandemic has made it apparent that not everyone works the same hours, and that many people want to be able to work where and when is best for them. Businesses that source services in different time zones can ensure around-the-clock productivity. For the required level of flexibility of today’s world, all platforms and processes need to be digital, automated and always on.

LEVELLING THE PLAYING FIELD

Another benefit that comes from this hybrid working model, connecting businesses and suppliers worldwide, is that it enables competition and creates a fairer global marketplace. A key problem

with many procurement processes is that a company’s buyer simply reuses the same incumbent supplier over and over again. Not only does this lead to bias in the supply chain, but it also means businesses lose out on the opportunity to generate any value.

Conversely, when buyers create a competitive market among suppliers, it generates immediate cost savings, as well as leading to new ideas and innovative solutions. These new matches that are being established via new digital technology are minimising bias during the procurement process and therefore democratising business opportunities.

DRIVING CHANGE FROM THE TOP

The hybrid working model has forced procurement leaders to revisit how they source services, embracing innovative, new digital solutions. AI-powered technology can help match enterprise companies with the very best suppliers who are right for them. This means that qualified providers of all sizes, regardless of location, have the chance to do business with companies they previously would not have had access to – a win-win situation.

As remote working becomes the new normal, future procurement leaders will inevitably be focused on improving the value chain landscape through the use of technology. The hybrid workplace is converging with the multigenerational workforce, meaning that the next generation of the c-suite will work their way up to senior positions collaborating with a largely remote workforce. Those who begin capitalising on this new world of work today will be able to get ahead and use it as a competitive advantage.

“ COMPANIES MUST EMBRACE DIGITAL SOLUTIONS THAT ENABLE SEAMLESS, REMOTE COLLABORATION FOR SOURCING THE BEST SUPPLIERS”

Success in today’s fast-changing world of work requires procurement leaders to embrace innovative technologies, such as AI and machine learning, to provide the flexibility, agility, and intelligence that is needed across the entire value chain. To maintain continuity and thrive as a business, companies must embrace digital solutions that enable seamless, remote collaboration for sourcing the best suppliers, sooner rather than later.

Diego is CCO of Globality, with a demonstrated track record of success across the entire value chain, from operations to sales and customer service, and end-to-end accountability. Prior to working at Globality, Diego was Partner at Mckinsey & Co. for 10 years, where he created mechanisms to enable collaboration across the engineering, purchasing, finance, sales and marketing functions, and improved governance and performance management. He also led McKinsey’s purchasing and supply management practice in the UK and Ireland. Diego is based in London and was educated at Università degli studi Roma TRE in Rome.

Diego Barilla

BUILDING TOMORROW’S SUPPLY CHAIN

AMID AN EVER-CHANGING AND VOLATILE LANDSCAPE, THE UNIVERSITY OF TENNESSEE’S GLOBAL SUPPLY CHAIN

INSTITUTE CONTINUES TO SHAPE AND INFLUENCE THE SUPPLY CHAIN AND PROCUREMENT LANDSCAPE

WORDS_ TOM WADLOW

To say that we’re in a volatile time is probably up there with the understatements of the year. However, the times we have just left behind are actually an anomaly – we’ve enjoyed two decades of relative calm and the creation of long and thin supply chains with very little inventory and minimal cost,” says Shay Scott. “That goes against history, most of which has been filled with this disruptive environment that we now find ourselves back in. We just haven’t had to experience it with the types of supply chain designs that we have in our organisations today. The past few years have therefore been a wake-up call for investors and businesses who now have a front row seat to the complexity and volatility.”

Scott is Executive Director at the Global Supply Chain Institute (GSCI), part of the University of Tennessee, Knoxville (UT), where he has worked for the past 13 years of his career. Having studied, worked and travelled in more than 55 countries across six continents, including for Dell where he was responsible for the company’s outbound supply chain from the US, Scott is better placed than most to identify and interpret key trends shaping the profession.

And, although the market remains uncertain and challenging, he highlights an opportunity for supply chain leaders to prove their value by delivering competitive advantages to their businesses. “This requires two things, the first being a discernible strategy,” he explains. “How do companies deal with the current disruption? Supply chain teams can’t be everything to everybody and solve every problem, so it’s about prioritising where the value is. Secondly, it’s about building up a combination of agility and resilience – the agility to respond fast to changing dynamics, and the resilience to bounce back when those changes and challenges hit hard.”

A key enabler of both of these requirements, according to Andrea Sordi, is a procurement function that has the ability to anticipate. Sordi is UT’s Academic Director for its Executive MBA for Global Supply Chain programme and has well over 20 years’ experience working worldwide in high level procurement positions for some of the world’s largest food businesses. He says

anticipation is a crucial quality, especially amid these disruptive times that demand the levels of agility and resilience Scott calls for.

“Proper data analysis ultimately enables decisions to be made with a predictive quality,” says Sordi. “This has helped procurement shift the dial from being a go-getter to a value generator, a true partner in the end-to-end supply chain that creates an ecosystem of stakeholders which helps organisations to be more agile and resilient.”

GLOBAL SUPPLY CHAIN INSTITUTE

Against this complex, ever-evolving backdrop, never has the work of the University of Tennessee’s Global Supply Chain Institute been more important. Established in 2011, the institution builds on the university’s rich tapestry of supply chain expertise and experience, which can be traced all the way back to the 1930s when it delivered a transportation course that grew to become one of America’s most respected logistics degrees.

The main reason for establishing GCSI was to consolidate and expand this legacy. Chiefly, the organisation broadens and deepens UT’s contact with businesses by holding supply chain industry relationships and degree and talent development programmes in one place. The institute links around 2,500 undergraduate and masters’ students, supply chain practitioners from all industries and academics at the top of their field – a combination which, for Scott, differentiates GCSI as an influencer in the supply chain management field.

“While acting as a recruiting pool for businesses, our activities and scope extend far beyond this,” he adds. “We are cataloguing innovation and also helping companies to develop supply chain strategies and upskill their teams. Ultimately, I want us to stand as a beacon highlighting the way forward with the development of the endto-end supply chain concept, which is still in its nascent stages when compared with other key business functions such as finance and marketing.”

“HOW DO COMPANIES DEAL WITH THE CURRENT DISRUPTION? AND SOLVE EVERY PROBLEM, SO IT’S ABOUT PRIORITISING WHERE THE VALUE IS” — Shay Scott

Sordi likens GSCI to an incubator of learning and capability, a forum which has access to a vast amount of real-world insight from hundreds of companies (practitioners) which are actively engaged, including multinational enterprises such as Amazon, Cummins, FedEx, Kearney, Nissan and Pfizer. Some of these practitioners take part in the Advanced Supply Chain Collaborative, a collaborative think tank which builds capabilities even

further by taking a deeper dive into key topics and discussions shaping the supply chain backdrop.

“This helps companies to build a competitive advantage from both a commercial and social perspective,” Sordi explains.

“We explore areas such as sustainability and diversity and inclusion, helping firms to answer the question of how to build agile and responsive procurement

“I WANT US TO STAND AS A BEACON HIGHLIGHTING THE WAY FORWARDS WITH THE DEVELOPMENT OF THE END-TO-END SUPPLY CHAIN CONCEPT” — Shay Scott

A view from top to bottom, and everywhere in between

Need to accelerate digital transformation?

Taking a fresh look at your supply chain management strategy is a great place to start.

In partnership with the University of Tennessee Global Supply Chain Institute, CGI provides insights you can act on, helping organizations discover new ways to optimize their end-to-end supply chains and advance their digital transformation journeys.

As a Forum sponsor, we are pleased to take part in shaping and influencing the future of the industry through research, innovation, and best practices.

“PROPER DATA ANALYSIS HAS HELPED PROCUREMENT SHIFT THE DIAL FROM BEING A GO-GETTER TO A VALUE GENERATOR, A TRUE PARTNER IN THE END-TO-END SUPPLY CHAIN THAT CREATES AN ECOSYSTEM OF STAKEHOLDERS WHICH HELPS ORGANISATIONS TO BE MORE AGILE AND RESILIENT”

— Andrea Sordi

“YOU CAN HAVE THE BEST STRATEGY IN THE WORLD, BUT IT WILL COUNT FOR NOTHING IF YOU CAN’T EXECUTE IT PROPERLY WITHIN YOUR ORGANISATION” — Shay Scott

functions that are environmentally and socially responsible, and which also collaborate with diverse businesses.”

CONTINUOUS EVOLUTION

Agility is a trait that UT and GSCI must also embrace in order to both function effectively and continue to provide value to student, academic and industry stakeholders. This has been especially so in recent years. From a practical standpoint, the COVID-19 pandemic forced the organisation to go virtual almost overnight, a move that it was well prepared for thanks to existing technology and an online format developed in the launch of its MS in Supply Chain Management Online programme which, in only two years, has

proved highly successful and grown to 250+ students from the US and abroad.

More broadly, while some foundational aspects of supply chain management and procurement remain immovable knowledge staples, much of the ‘real world’ content contained within GSCI’s courses is ever evolving. Sordi elaborates: “Whether it’s last mile, risk management, sustainability, or many other things in between, we’re constantly having to pivot material to remain relevant – procurement continues to be influenced by global trade, policies and events. Sustainability, for example, is now embedded into all our academic programmes, including those for executives. You simply cannot ignore the topic after

events such as COP 26, which happened last year, and the discussions currently ongoing even in Davos.” This is how GSCI continuously strengthens its programs, such as its worldwide recognised Executive MBA in Global Supply Chain.

In another move to remain relevant and accessible to a broader audience, GSCI has also designed and launched its SCM Leadership Academy over the past 18 months. A non-degree, fully online programme spanning 14 weeks, it is designed for supply chain professionals in management positions with mid-level experience to broaden their horizons by learning in concert with their peers.

“Many participants will be in an organisation where supply chain has become a critical part of their business’s strategy,” Scott says. “They will need to better understand how the supply chain impacts the bottom line, and how the supply chain integrates with customer value and customer relationships. Equally important are the softer leadership skills, which make up about 30% of the content. You can have the best strategy in the world, but it will count for nothing if you can’t execute it properly within your organisation.”

FUTURE-PROOFING THE ORGANISATION

Having witnessed the success and buy-in generated by the SCM Leadership Academy, Sordi is developing a similar concept in the form of a Procurement Excellence Academy. Currently in the ideation stage, it will build on foundational knowledge by exploring key topics such as digital

Andrea Sordi, Academic Director Executive MBA

Global Supply Chain Management, University of Tennessee

Shay Scott, Executive Director, Global Supply Chain Institute, University of Tennessee

procurement, advanced sourcing and risk management, as well as honing the soft skills needed to implement procurement strategies effectively. And it is through vehicles such as this that GSCI will continue to shape and influence the profession.

Much of the content explored through the Procurement Excellence Academy could be inspired by the CPO Roundtable, a quarterly gathering of procurement experts driven by Sordi. “The idea is to get

“I AM DRIVEN BY NURTURING PEOPLE AT ALL DIFFERENT STAGES IN THEIR CAREERS” — Andrea Sordi

CPOs talking in a setting that merges industry, research and future talents,” he says.

“We discuss and share best practice examples which helps us to plan content and create ideas. Another key part of this network is the publication of a quarterly newsletter – a digest of key topics that helps procurement professionals to factor the impact of current events into their 12-18 months strategic plans.”

In a similar vein, senior executives from many of the 80 or so organisations aligned with GSCI participate on its advisory board, a body which has developed strongly over the past decade and now meets twice a year in person. A key listening tool for the organisation, it continues to feed vital intel and insight into the development of its learning initiatives. Indeed, this ongoing dialogue between

“WHETHER IT’S LAST MILE, RISK MANAGEMENT, SUSTAINABILITY, OR MANY OTHER THINGS IN BETWEEN, WE’RE CONSTANTLY HAVING TO PIVOT MATERIAL TO REMAIN RELEVANT”

— Andrea Sordi

practitioners and researchers will help to future-proof UT GSCI’s value proposition, which in turn will provide support to the current and next generation of supply chain leaders.

Both Scott and Sordi are impassioned by this ongoing mission – one which neither will consider accomplished while they are still working, as there is always something to do, and always something to improve. “I am driven by nurturing people at all different stages in their careers,” Sordi says. “We must never stop offering different perspectives – perspectives which will help develop mindsets that can balance the priorities of businesses and create competitive advantages.”

“Awareness of the supply chain and its fundamental importance to the success of businesses, economies and even societies has never been higher,” Scott adds. “We have this incredible privilege and responsibility – to be able to make civilisations work and to keep us fed, clothed and entertained. It’s not in the DNA of supply chain professionals to be satisfied that their job is complete. When we do it well today, we’re already thinking about how we can do it better for tomorrow.”

www.utk.edu

DRAGONSCALES, ENTIRELY CARBON-FREE OPERATIONS AND A VISION OF FUTURE WORK LIKE NO OTHER. WELCOME TO GOOGLE’S BAY VIEW CAMPUS

There’s something otherworldly about the building that gently rises out of the landscape in the grounds of NASA’s Ames Research Center, in California’s Mountain View. But, for its creators, that’s the point. You see, Google’s Bay View Campus – the first everground up campus designed by the tech giant – isn’t an office block. Nor is it a workplace, at least according to the outdated and rapidly evolving views of that word to which many businesses still adhere.

No. Bay View Campus is a celebration of innovation, nature and community. It’s a demonstration of what’s possible when you break down the barriers in building design and power generation, of how to create an entirely carbon-free space built with the experience and wellbeing of those lucky enough to call it ‘work’ in mind, and a masterpiece in regenerative, sustainable design. Or, as Google calls it, ‘a chance to rethink the very idea of an office’.

Bay View is built with the future in mind – for the company, for its people, and for the planet. Its three buildings, which span 1.1 million square feet of space have been created in partnership with globally renowned architects Bjarke Ingels Group and Heatherwick Studio, to deliver on Google’s commitment to operate every hour of every day on carbon-free energy by 2030.

Take its canopied roof that consists of some 50,000 ‘dragonscales’ – a proprietary solar panel design that wraps the innovative exterior and allows the buiding to cumulatively generate nearly seven megawatts of energy. Or the fact that the site is net water positive, with all

non-potable water demands being met using recycled water collected on site.

The same energy minimising innovation is embedded in the very foundations of Bay View, too. Beneath the impressive building sits North America’s largest geothermal pile system, estimated to reduce carbon emissions by almost 50%. In addition,

Photos: Iwan Baan / Google

“THE FOCUS ON PEOPLE CARRIED INTO THE CAREFUL ATTENTION WE PAID TO ELEMENTS YOU CAN SEE AND FEEL – LIKE MATERIALS, DAYLIGHT, AIR QUALITY, THERMAL COMFORT AND ACOUSTICS”

DAVID RADCLIFFE, VICE PRESIDENT REAL ESTATE & WORKPLACE SERVICES, GOOGLE

“BAY VIEW’S FIRST-OF-ITS-KIND DRAGONSCALE SOLAR SKIN AND NEARBY WIND FARMS WILL POWER TI ON CARBON-FREE ENERGY 90% OF THE TIME”

DAVID RADCLIFFE, VICE PRESIDENT REAL ESTATE & WORKPLACE SERVICES, GOOGLE

Photo: Iwan Baan / Google

the geoexchange field is integrated into the building’s structural system, reducing the amount of water typically used for cooling by 90%, or the equivalent of five million gallons annually.

Sustainability aside, Bay View is about people too. Google designed the building with the experience of its ‘Googlers’ prioritised over exterior form. The dragonscale roof, for example, while looking incredible and surviving a noble purpose, also allows for optimal acoustic control, minimises thermal heat gain and lowers overall energy loads.

Beneath, Google incorporates biophilic design principles, which use greenery, natural daylight and outdoor views from every desk to improve health and wellbeing. The ventilation system, too, uses 100% outside air [a typical system uses around 20-30%]. In an almost obssesive quest for the perfect environment, the company also vetted thousands of building products and materials to remove all toxins.

The result, across its two floors – which incorporate gathering and collaboration spaces, ‘neighbourhoods’ separated by courtyards and connected via ramps, individual focus areas and a collection of local artworks for good measure – is remarkable. And like all the best innovations, it will continue to evolve, says Google, as the company, its people and their work, and the needs of the environment change in the future.

www.big.dk

www.google.com

“WHILE ON-SITE CARBON AND WATER NEUTRALITY IS CHALLENGING FOR SKYSCRAPERS, THIS BAY-SCRAPER TYPOLOGY ENABLES US TO HARVEST THE POWER OF THE SUN, EARTH AND WATERS”

LEON ROST, PARTNER BIG-BJARKE INGELS GROUP

CRUZ FOAM

IN HARMONY WITH NATURE

If we’re serious about cleaning up supply chains and building more sustainable ecosystems there’s one thing that has to be tackled: plastic. In this instance, we’re talking about EPS and other compostable foam packaging solutions. Often single use, disposed of in landfill and near-on immortal, they’re long-overdue an overhaul.

Which, Cruz Foam, is your cue. You see, Cruz Foam, a Santa Cruz-based startup that recently gained investment from environmental bighitters Leonardo DiCaprio and Aston Kutcher, offers an alternative that could truly change the way we think about packaging. It comes in the form of novel biopolymer technology derived

from all naturally occurring materials such as chitin, or, the shells of shrimp, crab and other crustaceans.

Chitin is a by-product of the fishing industry, contributing to Cruz Foam’s circular credentials. It also forms a lightweight, durable sheet of foam similar to EPS, but which can be composted in your garden waste.

www.cruzfoam.com

“We’re looking to create solutions that work in harmony with nature and solve modern problems”

V I E N N A

Frequently ranked as one of the world’s most livable cities, Vienna is one of the jewels of Europe. With stunning architecture, city hiking trails and chic bars and restaurants, the city has something for everyone. Not only is Vienna a wonderful place to live, it’s also a great place to work. With a booming startup scene, it plays host to some of Europe’s fastest growing scaleups, a number of which have reached unicorn status. Co-Founder and COO of unicorn EdTech startup, GoStudent, Gregor Müller was born and raised in Vienna. He takes us on a tour of his hometown and guides us through his favourite spots in Austria’s capital.

WORDS GREGOR MÜLLER

BUSINESS

Impact Hub is a great place to meet likeminded entrepreneurs, share ideas and get feedback. It’s a co-working space and cafe that brings together businesses aiming to make positive changes in the world. It is based in Vienna’s 7th district and has a really relaxed, cool atmosphere. Many freelancers and entrepreneurs are based there and they’re always willing to lend an ear, listen to you and help you find a way into the community.

The annual 4GAMECHANGERS Festival takes place each June in the impressive Marx Hall and brings together innovators, founders and business leaders. It’s a super

cool place for networking, hearing great speakers, and enjoying live music and entertainment. If you’re lucky enough to be in the city when it is on, it’s an absolute must.

Zoku offers stunning meeting and event spaces right next to one of Vienna’s most popular parks, Prater. It’s a great place to work solo or to collaborate with your team. Zoku provides the ideal working environment, with spaces designed for both focus and creative brainstorming. One of the best things about the space is its rooftop terrace. There’s also a 24-hour bar, a gym and a restaurant. Zoku really has it all.

IMPACT HUB

ZOKU

MOTTO

4GAMECHANGERS FESTIVAL

STAY

A favourite for many younger business travellers, the 25 hours Hotel is centrally located in Vienna’s 7th district, is very hip and modern, and offers great meeting rooms for rent. It also has an awesome rooftop bar called Dachboden , which offers panoramic views of the city. Specialising in cocktails and a great selection of Austrian wines, it’s the perfect summer spot for an after work drink.

MOTTO started as a French-inspired restaurant with really good vibes and great food. The restaurant and bar are located on the roof, with the hotel below. MOTTO hotel is located in the 7th

district, which is one of those urban areas in Vienna that’s very hip and has a lot of young people already living there. It’s where a lot of entrepreneurs want to go.

The more traditional hotels are located in the city’s oldest district, Ringstrasse, and occupy some of Vienna’s grandest buildings. One of my favourites is the art deco Hotel Bristol , located right next to the Vienna State Opera . It’s a must if you are seeking traditional Viennese hospitality. Be sure to visit The Bristol Bar, which was the first American bar to open in Vienna – the cocktails are excellent.

25 HOURS HOTEL

THE BRISTOL BAR HOTEL BRISTOL

GREGOR MÜLLER CO-FOUNDER AND COO, GOSTUDENT

Gregor Müller is the Co-Founder and COO of GoStudent , the Vienna-headquartered EdTech unicorn.

Founded in 2016 and now active in 23 markets, GoStudent provides tailored, high quality video-based tuition to K-12 students. Born and raised in Vienna, Austria, Gregor is incredibly passionate about the city’s vibrant and evolving startup scene. Prior to cofounding GoStudent, Gregor lived abroad and studied Business Administration at the University of St. Gallen in Switzerland.

EAT / DRINK

One of my favourite restaurants in the city, Onyx offers Asian fusion cuisine with unparalleled views of Vienna’s beautiful Stephansdom Cathedral. The floor to ceiling glass windows mean you can look out over the city while enjoying great music, good vibes and a casual cool atmosphere. It’s also not too big of a place so it feels cosy and intimate – great for business dinners in the city.

Offering chic, mezze-style Isreili cuisine, NENI is perfect for relaxed business meetings with style. My personal favourite is the branch at Prater, which overlooks the colourful Prater amusement park. In my mind, NENI’s vibrant roof terrace is the perfect spot to enjoy breakfast, lunch or dinner with company or alone.

There are four or five branches of Plachutta offering good quality, traditional Austrian food. I love to bring international colleagues here to introduce them to Austrian cuisine. It may not be the best place for vegetarians, but they have good food and the people are always very nice. It’s a bit laid back and classic, but the menu is brilliant.

PLACHUTTA

ONYX City Guide THE PURCHASER MAGAZINE | ISSUE TEN

LEISURE

Prater is a huge park located in Vienna’s second district. It used to be the hunting grounds of the emperor, but today it’s one of the city’s most popular spots for dog walking, rollerblading and taking a stroll with friends. Prater is also home to a theme park with a lot of different rides and attractions, including The Giant Ferris Wheel, which offers a great view of the city. One of the best things about Prater is that there’s no entry fee, you simply pay for the rides you go on. It’s also a relaxed, green space without the hustle and bustle of a regular theme park.

Neusiedler See is only a 40 minute drive away from Vienna and is a great spot for kitesurfing and hopping on a boat trip. As it’s one of the places in Austria with the most sunshine, it’s a beautiful location to

spend time during summer. Neusiedler See is a popular destination for water sports and is usually good wind for sailing. There are also a lot of great restaurants surrounding the lake, which means you can really make a day of it.

Kahlenberg - Stadtwanderweg 1 (City hiking trail number 1): One of the great things about Vienna is its easy access to nature. Simply hop on a bus or tram to reach one of the city’s hiking trails. In the 19th district, you can follow the trail to Kahlenberg mountain on the outskirts of the city. The view from the top is incredible, you can see the whole of Vienna. There are also a lot of vineyards and hidden traditional ‘heurigers’ (wine taverns) so you can stop off for a spritzer along the way.

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global events Calender

WORLD PROCUREMENT AWARDS

15TH 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.

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PROCURECON ASIA

5-7 JULY 2022 | Singapore

Asia’s leading summit for CPOs and Heads of Procurement. Your opportunity to learn from and network with Asia’s most progressive procurement leaders in one location.

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PROCURECON IT SOURCING

8-9 JULY 2022 | Boston, USA

Bringing together the best in IT procurement. Custom-built interactive sessions help you learn more, enjoy meeting people and network better.

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The only peer-led IT sourcing conference

Who said conferences can’t be fun?

We’re excited to announce ProcureCon IT is back in-person after 2 years in the heart of Boston at the Westin Copley place this July!

ProcureCon IT Sourcing is the only peer-led, senior-level procurement event solely dedicated to the unique challenges of the IT sourcing community.

For 20 years, ProcureCon has helped companies develop and implement world-class sourcing programs through interactive workshops, innovative keynotes and intimate networking sessions tailored to your company size and needs.

PROCURECON INDIRECT EAST

12-14 SEPT 2022 | Orlando, Florida

Whether you’re a CPO or a rising star, a large or small spend company, ProcureCon Indirect East has content and built-in connections to ensure your long term sourcing success.

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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 the function.

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PROCURECON EUROPE

27-29 SEP 2022 | Barcelona

Benchmark your procurement strategies with CPOs and Heads of Procurement at the world’s largest companies to define how to best thrive in the current uncertain global landscape.

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