Can one company make a difference to the health of a nation? Kevin’s Natural Foods is on a mission to help US consumers ‘eat clean’
Three key areas that help build a strong and secure supply chain
New creative solutions are helping to address persistent challenges
The right combination of factors is needed to gain valuable change
Vol 10 - Issue 1 2023
Mandata’s powerful range of Transport Management Software products is leading the way in helping thousands of hauliers across the country to ...
Maximise profitability of every mile with map-based planning capabilities. Increase cash flow with invoicing on delivery and seamless integration with major accounting software solutions.
Build customer confidence with total transparency of consignment progression. Avoid costly human error by having a single point of entry for all haulage work, no more duplication or key errors.
Have a real-time view of the entire operation, with our deep pallet network system integration.
Grow your business with software that helps you to deliver.
There are no shortcuts to success. But there is always a more cost-effective route.
CEO Andrew Schofield
Group COO Joe Woolsgrove
Creative Consultant Tom Vince
Data & Insights Director Jaione Soga
Editor Libbie Hammond
Assistant Editor Mary Floate
Content Editors Alex Caesari, Annabelle Crook, Danielle Champ, Steven Dobinson
Editorial Administrator Amy Gilks, Afiya Lucombe-Davis
Creative Lead Lee Protheroe
Managing Art Editor Fleur Daniels
Art Editors David Howard, Charlie Protheroe, Amy Robertson
Sales Director Alasdair Gamble
Philip Monument, Joy Francesconi
Head of Content Management
Project Managers Lewis Bush, Jo-Ann Jeffery, Lauren Proulx, Ben Richell, Basil Sharpe
Content Managers Mark Cowles, Valentina Forero, Jeff Goldenberg, James Page, Richard Saunders, Tarjinder Kaur De Silva
Media Sales Executives Mike Berger, Jessica Eglington, Will Gwyther, Reid Lingle, Sam Surrell
General Manager Florida Division Ryan Finn
Social Media Co-ordinator Rosie Clegg
IT Support Iain Kidd
Administration Natalie Fletcher, Rory Gallacher, Ibby Mundhir
Hello and welcome to the February issue of Supply Chain World. This month our features include insights into cyber security, disruptive logistics and digital transformation. For the first of those, Bindiya Vakil from Resilinc discusses the importance of visibility in the supply chain, while for the others, the team were fortunate to speak to experts from Frost & Sullivan and Globality, who generously shared their time, knowledge and opinions.
I am also thrilled to welcome back MagicLogic, a great friend of the magazine and a company that continues to innovate in the load planning software space. Tim Smith, CEO, reveals the trends his business is seeing, and how it continues to evolve its offering in order to meet customer needs. Visit page 18 for the full story.
© 2023 Finelight Media Group Corporate Head Office Cringleford Business Centre, 10 Intwood Road. Cringleford, Norwich NR4 6AU U.K. T: (312) 854-0123 T: +44 (0) 1603 274130 US Office 2240 West Woolbright Road, Suite 402 Boynton Beach. FI 33426 T: (561) 778-2396
Cyber security secure supply chain Can one company make a difference to the health of a nation? Kevin’s Natural Foods is on a mission to help US consumers ‘eat clean’
Please note: The opinions expressed by contributors and advertisers within this publication do not necessarily coincide with those of the editor and publisher. Every reasonable effort is made to ensure that the information published is accurate, and correct at time of writing, but no legal responsibility for loss occasioned by the use of such information can be accepted by the publisher. All rights reserved. The contents of the magazine are strictly copyright, the property of Finelight Media Group, and may not be copied, stored in a retrieval system, or reproduced without the prior written permission of the publisher.
of Kevin’s Natural Foods,
what inspires the team and how the business continues to ‘empower people to eat clean without sacrificing flavor.’ Turn to page 42 to learn more.
@SCWmag supply-chain-world-magazine Follow supply chain world at Welcome scw-mag.com 1
story: Kevin McCray, co-founder and COO
firstname.lastname@example.org Libbie Hammond,
Predictions 22 Freight 28 2 Inside this issue Cyber security Disruptive logistics MagicLogic 6 10 18 14 Digital transformation Contents
42 The Hershey Company 62 Integration 36 Joloda Hydraroll Kevin’s Natural Foods Cover Story 50 Resiliency 32 scw-mag.com 3 CarePoint Health 56 supply chain world
Hoogland Restaurant Group 68 Troy UK 90 86 Sentara Healthcare 4 Forrest General Hospital Tenneco 74 98 78 supplyFORCE Contents
Can you see clearly?
Why visibility into your company’s supplier network is crucial to establishing secure supply chains
By Bindiya Vakil
The coming year will certainly continue to challenge suppliers and companies seeking to build resilient supply chains. In 2022, we witnessed a surge in geopolitical disruption, labor strikes, Covid lockdowns, and supply shortages. These factors will continue to pose a challenge for companies, but what lies ahead for 2023?
This article explores some of the key areas that organizations need to consider moving forwards to build a strong and secure supply chain.
Effective cyber security is key to supply chain security
The most recent figures from our database show that cyberattacks were up 90 percent in the first half of 2022 compared to the same period in 2021. And unfortunately this trend shows no signs of slowing. Cyber threats typically emerge in the supply chain where there are gaps in companies monitoring their partners and vendors. A company often limits its cybersecurity strategy only to immediate vendors and suppliers, potentially exposing itself to cyberattacks deeper in its supply chain. After all, a company can
Cyber security 7 scw-mag.com
only be as strong as its weakest link when it comes to security, hence organizations need to ensure that all suppliers and vendors are incorporated into any cybersecurity processes, irrespective of software type or service offered. To combat this, many organizations use a ‘Corrective Action Report’ to fix any cybersecurity problems identified in a supplier’s processes: this is the most effective way to ensure cyber risks are kept as low as possible. Steps to address the given issues should also be incorporated into the report and deadlines should be given for enacting measures. Fortunately, this awareness of lower tier risk is increasing, and by 2025, Gartner estimates that around 60 percent of organizations will be using cybersecurity risk as a key factor to determine business engagements with third parties.
Inflation’s increasing risk to secure supply networks
Inflation will continue to feature heavily throughout the coming year, meaning
supply chains will become more expensive through increases to costs and services. And it is these added pressures which may require companies to reassess their current supply chains to help minimize costs or to ensure continuity of supply if suppliers are no longer able to provide products or services. The ripple effect this could cause to organizations may be significant. One way to combat rising costs and secure supply is to map your supply chain down several tiers. It is often low-spend, singlesourced materials and components produced by third or fourth-tier suppliers that cause the most disruption if they become unavailable. I read an example of this not too long ago which saw the absence of just one of 20 componentsa 12-cent part - halt an assembly line for two weeks, causing weeks of disruption and significant revenue loss. This only underscores the need for suppliers to have multi-tier visibility through mapping, and it is paramount that companies increase visibility over low-spend suppliers in
particular. Even in the context of inflation or a recession, this will best ensure a company’s supply chain has been mapped to help minimize future disruption, providing lasting savings to companies in the long-term.
Geopolitics continue to undermine established supply chains
As we have seen over the past year, geopolitical developments in Ukraine as well as lockdown policies employed by China to combat Covid-19 have impacted supply chains profoundly. Now, many businesses are adopting a China-plus-one strategy to mitigate exposure to political decisions and diversify away from China. Establishing a mature supply chain resiliency program is key to mitigating risk from geopolitical events. Such a program should include real-time event monitoring and alerts, as well as supply chain mapping down to part origin for single-sourced parts to give the greatest insight into potential emerging disruptions and supply weaknesses ahead.
In order to have a secure supply network, it is crucial that companies establish a supply chain resiliency programme that not only maps suppliers down to the part origin level, but one that also prioritizes risk mitigations based on revenue impact, rather than by spend. Whilst the traditional approach focuses on the top 20 percent of suppliers that make up 80 percent of the spend, this leaves procurement teams with little to no visibility over the other 80 percent of suppliers - the overwhelming majority of a company’s supply chain! This extremely risky approach should therefore be avoided, and attention should instead turn to the suppliers your organization has no visibility over which tend to be lower-spend.
Building supply chain resiliency is a very effective way for companies to prepare for and minimize disruption in 2023taking the focus away from costly crisis management towards a more considered approach. By taking a proactive attitude, supply chain risk management is then viewed across the organization not as an operational burden, but as the foundation of a secure and resilient supply network. ■
Bindiya Vakil is the CEO and founder of Resilinc and is an award-winning expert in supply chain risk management.
Crowned Supply & Demand
Chain Executive’s inaugural Woman of the Year in 2020, Bindiya’s career spans 20 years. She holds a master’s degree in supply chain management from MIT and an MBA in Finance. Bindiya continues to lead the market in risk intelligence and mitigation and is credited with bringing supply chain risk management into the mainstream. Resilinc was founded with the purpose to strengthen global supply chains, making them resilient, sustainable, transparent, and secure. Since its launch in 2010 Resilinc has defined the supply chain mapping, monitoring, and resiliency space and is widely considered the gold standard for supply chain resiliency, worldwide.
Cyber security 9 scw-mag.com
The next level of disruption
What is disruptive logistics? Alex Caesari sits down with Gopal R to investigate how cutting-edge technologies will radically transform the sector
◀ Gopal R
There are two kinds of disruption: positive and negative. An example of the latter would be when mile-long traffic queues disrupt travel and, inevitably, make you late for work. The status quo is disturbed; however, no one benefits.
Then there is the former: positive disruption. This is the kind we are talking about with Gopal R, Frost & Sullivan’s Global Leader for Supply Chain and Logistics Advisory Practice; the kind that causes radical change within an existing industry or market, often arising as a result of technological innovation.
For Gopal, disruptive logistics is particularly thought-provoking, and the benefits are manifold. “We noticed a lot of disruption in the supply chain and logistics space before the pandemic,” he begins. “Yet, as we
enter a new world in the wake of Covid-19, there is now more disruption than ever.” But what exactly is disruptive logistics?
“There is quite a lot of confusion around the term,” admits Gopal. “But it can be broadly defined as a focus on understanding inefficiencies and identifying areas of improvement within the logistics space. In doing so, and by providing creative solutions to persistent problems, one is disrupting the sector.”
Boiled down, it’s about finding an inefficiency, identifying an area of improvement, and then developing a creative solution. By shifting the current paradigm, organizations are rewriting the status quo, thus creating a better and more connected world.
Disruptive logistics 11 scw-mag.com
“If you look at things from a cost perspective, much relates back to storage and transportation,” Gopal continues. “Process and value-added services go along with that. As such, we can also define disruption as improvements that are made when shifting from legacy systems to new, optimized processes. Benefits accrue in various areas: digitalization, optimization, infrastructure and modernization enhancements, and so on.
“Whether you are dealing with a developed or developing country, transportation represents a significant part of any logistics spend, ranging anywhere from 50-to-70 percent,” he explains. “Hence, it is imperative that assets are fully utilized. Naturally, the first fragment of the logistics ecosystem to be disrupted was the transport business. Transport aggregation models, for instance, ensure trucks are fully utilized (since, typically, utilization sits at around the 50 percent mark). Models look at last-mile delivery and real-time monitoring to guarantee assets are aided by disruptive logistic practices.”
Another example Gopal points towards is the effect disruptive logistics has on warehousing. “Historically, at least, sales numbers and business volumes could be managed by human beings,” explains Gopal. “Not anymore. Today’s age of e-commerce and mass consumption means we must look towards robots, transforming the way goods are moved and processed within a warehouse.
“In Germany, many start-ups are going one step further, using Augmented Reality (AR) glasses to expedite the initial training period for every new employee – all they need to do is put them on, follow a set of instructions, and away they go.
“Indeed, if you look at Industry 4.0, it suggests a revolution, brought about by novel technologies and processes, will forever change manufacturing. The sector is evolving, and this has led to a new focus on Artificial
Intelligence (AI), automation, and robotics. It’s never been easier to capture data and store it – there’s so much being collected right now. In a warehousing context, you have collaborative robots, which will continue to learn as they gather more data on what products are being picked and how often.”
While the pandemic certainly increased volumes from an e-commerce perspective, it also accelerated the pace of digitalization. “Prior to the pandemic, supply chain digitalization was talked about by companies,” reflects Gopal. “But now there is no escaping it. The times mandate immediate action. Moreover, demand for 48-hour, 24-hour, and sameday delivery has forced logistics companies to generate innovative delivery models and establish new micro-fulfilment centers.
“Powered by AI, real-time tracking provides the dynamic scheduling and (re) routing required for this procedure and allows logistics companies to optimize delivery
processes without the risk of human error. Digital twins, moreover, support companies throughout the design stage, enabling them to withstand disruptions, or bounce back when they inevitably arise, learning from simulated events before real-world issues occur.
“Another important point to make is that in the pre-pandemic world everybody knew we were connected,” he goes on. “Yet, when borders closed, people soon realized that despite this we weren’t integrated. Consequently, this led to a complete breakdown in the supply chain. Integration requires real-time visibility and resilience, thereby ensuring seamless supply chains, regardless of geographies and supplier tiers, for instance.”
Looking ahead, the Internet of Things (IoT) promises to create a more interdependent network of data and communication stores. Gopal pinpoints how this will affect supply
chains and, perhaps more interestingly, the ways in which IoT enhancements can lead to greater sustainability. “The IoT is central where supply chain is concerned,” he observes. “In fact, it’s anticipated that IoT devices will reach almost 50 billion units by 2030, enhancing visibility across freight and logistics services. This can be for monitoring products in a shipping container, revealing fuel consumption rates in vehicles, or measuring greenhouse gas emissions.
“These devices also facilitate dynamic scheduling and planning, alerting, for instance, delivery drivers of any disruptions or changes to routes in real-time. In short, IoT enhances the integration of assets and therefore encourages better visibility, which will make supply chains more resilient.
“In terms of sustainability, IoT has myriad applications for transportation and warehouse optimization since devices will show energy and material use. For example, one can track a variety of factors, like the amount of non-recyclable or recyclable materials available, aiding the emergence of a more circular economy.”
AI, digital twins, blockchain, IoT – all these technologies have an important role to play when it comes to disruptive logistics. Disruption is, of course, enabled by technology; but, as Gopal points out, it needs to result in solvable and advantageous solutions that are commercially viable.
“Indeed, viability is often overlooked – but it’s crucial,” he concludes. “That’s why, unfortunately, a number of new start-ups fail despite having the best technology. Underpinning this, however, is people – this factor is often taken for granted. With the right technology, individuals can increase their productivity tenfold. The future will present many opportunities for handling this people element better, and in doing so, it will bring about the next level of disruption in the logistics space.” ■
www.frost.com Disruptive logistics 13 scw-mag.com
Mary Floate speaks to Keith Hausmann about leading the way to digital transformation
Digital transformation will be different for every organization. Generally speaking, however, it is the adoption and integration of digital technology into products, services or operations, resulting in fundamental changes to how businesses operate and how they deliver value to customers.
The goal of digital transformation is to increase value through innovation, invention, customer experience or efficiency. It’s also a cultural change that requires organizations to continually challenge the status quo, to rethink old operating models, experiment more, and become more agile. While data analytics, technologies and software enable digital transformation, they do not drive the process: at the heart of its success, lies culture and leadership.
Here, Keith Hausmann, Chief Revenue Officer at procurement provider, Globality, shares his insight. “The purpose of digital transformation is to render operations more autonomous, but in a way that is intuitive, insightful and smart. We need to view this technology as a consumer would. It should be on a par with what we use in our personal lives. While it needs to be appropriate for an organization’s procedures and policies, it must incite enthusiasm, add value, and enhance ways of working. It’s much more than applying a standard process across the board, it’s about making processes better, smarter and faster.
▲ Keith Hausmann
Digital transformation 15 scw-mag.com
“An important consideration prior to embarking on a digital transformation program is organizational engagement. While the word mandate can be controversial, and every organization should have the option to conduct business as it sees fit, if there is a need or a problem to be resolved, people have to collectively change how they work. That said, if changes are to be made and mandated, they should be made in a way that adds value, and is easy to adopt enterprise-wide.”
Keith continues: “In recent years, the enterprise technology world has been dominated by a handful of Enterprise Resource Planning (ERP) software systems, which were never really designed with this more intuitive, consumer-centric approach in mind. As a result, in the last two-tofour years, there has been a proliferation of technology companies trying to effect change. Enterprise technology is behind consumer technology, and while some operational functions may have moved faster on this continuum than others, there is still a way to go across the corporate board.”
Indeed, evaluating older operating models is an essential part of digital transformation, but so too is an understanding of the capabilities of digital technology to modern enterprises. “If, for example, an organization is avoiding supply chain disruption and catastrophic risk or making a modicum of savings, this may be enough for some C-suite decision-makers,” Keith explains. “However, it’s important for leadership to understand what is possible in terms of digital transformation. Taking procurement as an example, how much more value could be extracted from that function? Procurement is responsible for managing and dealing with thousands of suppliers and millions of dollars of spending. Additionally, 75 percent of the carbon footprint of a company is actually attributable to its
suppliers and not the company itself. This is just one example of the many aspects of an organization’s operations that can be transformed by digital processes.”
Keith goes on to discuss the industries that are more attuned to digital change: “The financial services market works at a much higher pace around digital transformation. These organizations know how their consumers interact with their products, and have been driven to make digital changes internally. The life science, Consumer Packaged Goods (CPG), and tech and telecom markets have also been driven by their consumers to be more digital and more automated, whereas the manufacturing, oil and gas, and public sectors, for example,
tend to be much less digitally driven. Refueling at a service station is no more a digital experience than it was 30 years ago. However, the way customers interact with a telecoms company has changed massively over the last 30 years. As such, many companies have internalized how they deal with their customers and have adopted this approach for their employees and ways of working.
“This has undoubtedly been exacerbated by the pandemic. The way in which people interact with each other has changed fundamentally, and has trended towards digital interaction. While this may be more evident in some sectors than others, there has been a shift towards making functions more autonomous. For all intents and
purposes, the pandemic is effectively over, yet, the way in which we interact with each other has probably changed forever.
“Furthermore, I think people using technology expect their experience to be increasingly personal, and data is the driver of personalization. It is the fuel for making a process insightful or smarter. People want to make informed decisions, and data provides a perspective from which to assess or rank information.”
Best of both worlds
When discussing the merits of digital transformation, Keith believes that we’re often hardwired to assume machines and algorithms harbor bias. “It’s crucial for companies like ours to be really thoughtful about how not to let algorithms and machine learning perpetuate bias. I have had conversations with many customers surrounding bias, and always return to the thought that a human making a decision with no information at all will have as much, if not more, bias than machine learning or algorithms. What we are trying to do is overcome human bias with real data and insights. To me, the best of all worlds is when human judgement is combined with machine learning to come up with the best decisions. This is how we work at Globality: knowledge is combined with analytics and insights that are derived from data to make a holistic decision.
“There is real value in championing and investing in digital transformation. From the perspective of procurement, for example, whether in terms of savings or supply chain resiliency, it’s important to understand what is possible. Technology is everevolving: what worked ten years ago may no longer be relevant today. To deliver digital transformation, organizations need to view the process through the appropriate lens.” ■
Digital transformation 17 scw-mag.com
According to MagicLogic, utilizing load planning software is the key to success in the logistics space
When we last featured MagicLogic in Supply Chain World, the sun was out in full force. High summer always inspires creativity and hard work, but one might argue, the true test of a company is achieving the same level of quality, innovation, and output, whatever the weather.
Catching up once more with Tim Smith, CEO at MagicLogic, we discover that the load planning software solutions company he leads has not taken its foot off the gas. “We had an extremely busy end to the year,” he begins, reflecting with optimism on the latter half of 2022. Considering the supply chain and
geopolitical tensions that have tormented many industrial giants – let alone small- and medium-sized enterprises – for the last few years, this is certainly refreshing to hear.
Tim continues: “We remained incredibly busy! One key reason for that consistent level of output lies in a very notable development that we are most proud of: the introduction of SaaS for BlackBox, as well as our Cube-IQ Web subscriptions.”
For those unaware, MagicLogic’s proprietary load planning software has made a name for the Vancouver-based company within the global logistics, cartonization, and palletization space.
Products are available – as Tim has noted – in two key forms: Cube-IQ (plus its webbased counterpart) and BlackBox.
Trusted by over 3000 logistics professionals, Cube-IQ is built around the best loading engine on the market, offering software users optimal volume and weight utilization when it comes to loading an array of items in one or more containers (which can, themselves, be differently-sized).
But how do you ensure consistency across numerous databases and warehouses? And how do you select the right containers for your load? MagicLogic encourages its customers to hand these questions – and more – over to Cube-IQ.
On the other hand, BlackBox serves as a plug-in for an organization’s Warehouse Management System (WMS) and Enterprise Resource Planning (ERP) software. BlackBox is specifically designed to integrate with any system available, to create innovative planning solutions and heighten logistical transparency for tasks such as cartonization, small parcel shipping, and palletization. Introducing SaaS for BlackBox was a natural progression for this product.
MagicLogic 19 scw-mag.com
Tim resumes: “These hosted products are becoming increasingly popular with customers looking for load optimization solutions that offer greater flexibility for their users.” Naturally, of course, these solutions can be customized by clients when necessary.
“Many businesses now have complex loading rules that cannot be met with out-of-the-box products,” he goes on, highlighting the importance of custom software solutions like those offered by MagicLogic. “Bespoke load optimization solutions might take a bit longer to integrate and cost a little more to set up, but they can be customized to accommodate a company’s unique shipping requirements.” The savings from this move can be huge –not only in terms of reducing shipping costs, but also by reducing the number of returns that need fulfilling due to damaged items.
“We are also seeing increased demand for robotics solutions and are thus currently working with a number of companies requesting these products. Robotics is a particularly tricky field to navigate, but thanks to our dedicated and very experienced Research and Development (R&D) team, we are already achieving some excellent results.”
When we last spoke, Cube-IQ Web had just finished its beta testing round. However, as Tim informs us, the product is now fully launched and has already been adopted by numerous users worldwide. “In just a short period of time, many are turning towards our latest software solution,” he explains. “We’re really excited about this one! Indeed, CubeIQ Web offers all the same functionalities as our standard Cube-IQ licenses but is a subscription service hosted through Azure.”
With Cube-IQ Web, users can access all the same functions from wherever they are in the world – all they need is a laptop, phone, or tablet. It is the ideal solution for Windows and also for Mac users; its
flexibility and transportability set the new software apart in an increasingly competitive logistics solutions space.
Another key differentiator for MagicLogic that Tim is eager to talk about is the company’s utilization of cloud software and cloud-based services. To provide tailored, holistic, but most importantly, area-independent functionality and logistics solutions, MagicLogic has recognized that, with many people now working from home, cloud software is proving an increasingly popular option.
So, what are cloud services and how do they work? Tim neatly breaks it down for us. “Instead of the software being hosted internally on a company’s server, it is instead hosted in the cloud,” he explains. “As a result, there is no need for a company to go to the expense and trouble of setting up and maintaining internal servers. Cloud services are stable and secure, and perfect for users who need to access our services while away from the office.”
As our conversation winds to a conclusion, Tim takes a moment to offer us his pertinent reflections on the wider logistics industry. “Generally, the sector feels very buoyant, with a lot of optimism for the future pervading the key players within it,” he observes. “Supply chains are operating more smoothly, and the cost of shipping containers has reduced somewhat.
“However, I think we are continuing to feel the impact of the pandemic, especially as it forced many companies to look at how they can streamline their shipping processes,” he goes on. “As companies recover, they are looking at new ways to package and ship goods more efficiently. Naturally, there is still continuing demand
for ecommerce as some customers have changed their shopping habits since the pandemic – possibly for good. Other shoppers are returning to stores, preferring to see goods before they buy, but these goods still need to be shipped economically and efficiently to the stores.”
As can be expected with Tim, we conclude on a decidedly positive note. MagicLogic, he informs us, is looking ahead to another eventful year. As 2023 begins to rapidly unfold before us, the firm is in high spirits and ready to grab the new year by the horns.
“Last year we forged several important new partnerships with companies, where our software complements their products perfectly,” Tim reflects. “We look forward to deepening and strengthening those ties, collaborating on new projects, and providing and receiving referrals. Our R&D team is currently working on a novel process that will strengthen our product line availability, making it easier for users to purchase solutions, which will be especially useful for companies who need on-demand services. Like 2022, it’s going to be a busy year indeed.” ■
MagicLogic 21 scw-mag.com
The supply chain in 2023
Getting used to the unpredictable.
By Bart de Muynck
I’m writing this article around Halloween and while trick or treating is fun for kids in the neighborhood, for those involved in supply chain operations the words ‘trick or treat’ could take on a more ominous tone. Certainly, if you take a step back and think about all the challenges supply chains have faced in the last few years, it would be enough to frighten off the more faint-hearted from considering a career in the industry. Indeed, if you work with supply chain colleagues and they appear to have a somewhat haunted look, that is not just the Halloween spirit, there are real issues now and ahead in 2023 which must be addressed.
As my colleague Josh Brazil said recently: “We are living through a unique convergence of economic, environmental and social challenges, and the supply chain, which was fundamental in keeping the world moving during the pandemic, is being tested like never before…”
So, if you are in the supply chain profession, or a company waiting at the end of a supply chain for goods that might be critical for your business, how do you get your head around these obstacles? And more importantly, how do
you minimize disruption and maximize the potential opportunities that effective management of your supply chain can offer?
Fundamentally, we must get used to operating in a state of permanent uncertainty, which is nothing unusual for the supply chain industry, but perhaps the level of unpredictability around economic, geopolitical and natural disruptions is what makes this even harder.
Surviving the scary season for supply chains
There are any number of real headaches facing both those operating in the supply chain industry and their end customers. Inventory build-up is a very real issue, because companies stockpiled goods in response to supply chain difficulties during the pandemic or due to late arrival of products that were ordered previously. This is now leading to surplus stock. In our October Ocean report, Nike was referenced as having $9.7 billion of goods on its balance sheet in the first quarter, up 44 percent on the same period last year. Amazon and Walmart faced similar inventory woes. Total retail inventories in the US set a new record in July at $731.6bn. With the
Predictions 23 scw-mag.com
prospect of a global recession on the horizon, retail inventories in the US are 46 percent higher than they were before the financial crisis in 2007.
From a supply chain planning perspective there is a real concern companies will miss revenue opportunities as they have not been able to clear existing stocks. With inflation hampering consumer demand and consumers’ knowledge of these high stockpiles, consumers are waiting on product clearances before being able to focus on Christmas. In our Global Insights analysis we reported that “as warehouses in both Europe and the US are full, the sizeable inventory levels resulting from the disappointing earnings reported by
nearly all major retailers will continue to prompt mark-down sales and a cut-back on excess inventories.”
And Christmas peak season is not the only headache for retailers, who are already planning Spring Collections. In some cases, we have seen clothing retailers ordering next year’s collections back in the first half of the year. With shipping transit times coming down, it means product is getting to its destination quicker, but then dwell times in ports start to add unnecessary costs which may have to be passed on to already cash-strapped consumers.
That is not great when we already know inflation is clearly having an impact on consumer demand. While inventory has grown by 30
From a supply chain planning perspective there is a real concern companies will miss revenue opportunities as they have not been able to clear existing stocks
“ “ “ “ 24
to 40 percent consumer demand has only grown in single digits. It means consumers are becoming more discerning about where and when they spend, so in turn, B2C companies are forced to offer more sales and discounts to shift inventory.
This creates another big headache for supply chains. Logistics does not like multiple peaks. All these supply chain issues create capacity inconsistencies. For example, reductions in the amount of time ships are berthed in port has led to greater capacity which has weakened spot rates and seen a dramatic increase in blank sailings. In the October Ocean report, blank sailings were highest on the Asia to Europe trade lane in September with an average of 41 percent compared to an average of 27 percent in October. The average for blank sailings on this trade is forecast to rise again to 31 percent in November.
The biggest problem these supply chain issues are causing for operators and their customers is cash flow uncertainty. Companies need cash more than ever in the current economic climate to be able to save. If they’re stockpiling goods, not shifting them, cash is not flowing. And we all know that cash has become more expensive with rising interest rates.
Outlook for 2023: Welcome to a world of unknown unknowns
2023 will bring other cost considerations. There will be more changes to regulatory requirements with scrutiny on sustainability reporting. IMO2023 (Oceanside) will mean older ships must slow down to reduce emissions with a knock-on effect for capacity as ships will reduce the number of trips. Combined with the rising cost of oil and bunker fuel there could be even more incentive for carriers to run slower steaming services to save on rising transportation costs. Capacity issues will impact rates as demand is still strong. Supply chain operators
and their customers will have to build this consideration into their budgeting.
Labor costs will also escalate as staff demand salary increases to cope with the cost of living crisis. We have already seen this impact on where goods are shipped as companies worry about fulfilling peak demand this Christmas. In the most recent Ocean report, New York has become the number one box port in the US, overtaking Los Angeles due to fears about strikes by the International Longshore and Warehouse Union. In our recent Global Insights report, it was estimated the eight-day strike at Felixstowe port impacted some $4.7 billion in trade.
Extreme weather events are also on the rise. Experts are warning about the social and economic impacts of extreme weather events, such as drought on the Mississippi and the Rhein which in the last year has impacted key transportation routes. In our most recent Global Insights report we flagged that this summer’s record low water levels on the Rhine forced many containers to use rail networks and trucks for shipping adding unexpected intermodal costs and delivery headaches. Such unpredictable changes have a knockon effect for other ports as well, making it essential to have real-time visibility of supply chains so that logistics routes can adapt.
Supply chain professionals always cope with change and black swan events but given how central the performance of supply chains has become to the global economy there is even more pressure on the sector to reassure businesses they can handle not just the uncertainty, but the increased unpredictability of geopolitical, economic and weather factors.
What is clear from our data is that supply chain performance is an early warning system for potential softening in economic performance, underlining the strategic value to the business of having better visibility of what is happening. For example, in the October Ocean report Twenty-foot Equivalent
Predictions 25 scw-mag.com
Unit (TEU) volumes from Asia to North America were down eight percent in August on a year-on-year basis whereas Asia to Europe were down seven percent It also pointed to a similar reduction year-on-year with four percent less deployed vessel TEU capacity in September and a two percent decline in the number of vessels in the same period. With this visibility, companies can plan how they adjust production to reflect where demand is slipping and equally identify where it is increasing. Spotting these opportunities early, particularly in the current economic climate, will be critical to driving new revenue opportunities.
End-to-end visibility requires collaboration
Given so much uncertainty and unpredictability companies must manage their supply chains in such a way that they can be more pro-active or at the very least react in an informed way. Endto-end visibility is key, but that can only be achieved with collaboration. The best companies today in the supply chain ecosystem are collaborating more and that should include the technology vendors providing the software to run these supply chains. It is absolutely crucial they work together to share data and collaborate more effectively, because ultimately the more visibility built into a supply chain the more it will have a positive impact on cashflow.
For example, in the October Ocean report carriers posted reductions in shipment delays of more than 40 percent year-on-year in September. Asia-Europe experienced a 19 percent reduction in shipment delays in September when compared to the previous month. On the surface this appears a positive development reflecting improvements in the processing of goods in ports, but equally it indicates a softening in demand simply because less goods are being processed.
The good news is that if companies get their approach right, there are opportunities to be had. The companies that were brave during the 2008 Financial Crisis came out ahead.
Make supply chain insights digestible
If a company can achieve end-to-end supply chain visibility through collaboration with its partners, it means they have invaluable data that can have a direct impact on business decision making and performance.
For example, everyone in the industry needs to have a wary eye on what dwell times might mean for Christmas sales. In the most recent Ocean report the number of vessels waiting to berth on the Eastern seaboard of the United States and Gulf Ports has jumped notably since July, particularly in the ports of Savannah and Houston, which experienced a 208 percent increase yearon-year in the number of vessels waiting to call at the ports in September. Savannah had the highest average with 37 vessels waiting to berth in September. New York and Houston had 25 and 24 vessels waiting to berth, respectively. Any delays to accessing stock could have a real consequence for those retailers on 5th Avenue hoping for bumper Christmas sales. With newer vessels carrying up to 24,000 TEUs, a single vessel delay could impact millions of consumers.
A complete and single view of supply chain data means businesses can be forewarned. In the Global Insights report terminal dwell times increased in European ports largely due to labor shortages and congestion. Limited trucking and rail availability also continue to impede the movement of goods at the ports, where most storage space is occupied to its full capacity.
Deciphering supply chain data and the lingo is not straightforward so it must be a priority to make data consumable for everyone in the organization. To get to that
point companies must ensure they have all the data on one platform from ocean, road and rail routes. This gives confidence they have a complete picture. It also makes the user experience better, as users can adapt the data to their specific requirements.
Start small and build
Global supply chains are huge. It would be too disruptive to try to integrate all insights from every aspect of the supply chain in one go. It is better to start with one mode. Decide where to start by identifying where the biggest opportunity for improvement lies. For example, ocean visibility is easier in some senses as it is a less segmented market than road haulage.
Then adopt a step-by-step process and ensure the software provider is willing to be a partner on that journey. Every customer should be asking its vendor to help find value in the supply chain not just in the short term, but continuously monitoring for future opportunities. What we have seen work is setting up a center of excellence which encourages collaboration and enables customers and partners to constantly look at how to improve capabilities.
One aspect that should not be overlooked is talent, as developing a more integrated digital supply chain platform also requires very different skills. Given that every sector
is facing huge challenges to find the right skills organizations need to think about how they attract the talent that will help their businesses in the next five to ten years.
Here too, there is a role for the vendor to be supportive. Next generation AI and automation tools can automate mundane tasks easing the burden on employees and allowing them to focus on more interesting, challenging tasks. Building a reputation as an innovator in supply chain technology will make a business more attractive to top talent.
Hopefully, this hasn’t put readers off a career in the supply chain industry. If anything, it should reinforce that it is probably one of the most exciting and fast moving career choices out there. Let’s face it, you will never be bored! However, as supply chain professionals we must also be realistic about what lies ahead. There is a real opportunity for data emerging from supply chains to offer strategic insights to critical business decisions in the year ahead, but access to that information will only be possible with end-to-end visibility and increased collaboration between everyone in the eco-system. Insights will have to be delivered in near real-time to keep companies ahead of the uncertainty and unpredictability. Get that right and the supply chain can demonstrate critical value to the business. ■
For a list of the sources used in this article, please contact the editor.
Bart de Muynck is Chief Industry Officer at project44. As the supply chain connective tissue, project44 operates the world’s most trusted end-to-end visibility platform that tracks more than one billion unique shipments annually for over 1,200 of the world’s leading brands, including top companies in manufacturing, automotive, retail, life sciences, food & beverage, and oil, chemical & gas. Using project44, shippers and carriers across the globe drive greater predictability, resiliency and sustainability.
A complete and single view of supply chain data means businesses can be forewarned
Predictions 27 scw-mag.com
It’s time to get moving with sustainable freight.
By Jai Kanwar and Clemente Theotokis
022 has been a great year for volatility – a bad year for business planners, procurement teams and sustainability. Political chaos and ongoing economic instability have made 2022 stand out for all the wrong reasons. The war in Ukraine, record fuel prices, record inflation, the continued fall-out from Brexit and Covid, plus a new UK recession, have converged to create a unique set of challenges.
Freight 29 scw-mag.com
Shippers – be they manufacturers, growers, or retailers – are grappling with navigating these challenges, while also trying to implement ESG drives, net zero strategies, and sustainability initiatives. And – though they can’t publicly admit it – ‘the good’ is losing out to margins and growth.
With cost reductions front of mind, it’s easy to see why investing in green infrastructure and solutions might not be a priority for many businesses. And, with the spiralling cost-of-living crisis, suppliers are understandably reticent to help reduce costs.
But the truth is, a drive to implement new efficiencies needn’t be a race to the bottom. In fact, it makes sense that a drive to cut costs in the supply chain should also be a drive to increase sustainability. The two can go handin-hand, and technology is the key to enabling this symbiotic and systematic relationship.
The world cannot wait
There are some innovators out there – like Henkel, P&G, and Zara – who are making bold progress on sustainability across their value chain. Henkel has committed to a 65 percent reduction in the carbon footprint of their factories by 2025 and intend to be ‘climate-positive’ by 2030. An ambitious plan.
However, across the board, when it comes to the movement of freight, this is lagging quite far behind other initiatives. Even though getting products into stores is the single most important step before selling them. We see that manufacturers across the UK and Europe are floundering when it comes to finding ways to execute their sustainability wishes in their distribution and supply chains. But this doesn’t need to be.
Digital transformation is already making it easier for shippers to streamline their middle mile distribution. Freight management technology is eliminating intermediaries, increasing automation of repetitive tasks, and cutting out empty admin hours. Combine this with load optimization, route
planning, new fuels, advanced telematics, and mobile logistics and there is also a significant impact on carbon emissions too.
Road freight is still the most significant generator of carbon emissions, even with the application of new technologies and efficiencies. Net Zero can only be achieved with zero emissions technology. However, HGVs based on battery electric or clean hydrogen still have a number of substantive hurdles to get over.
But the climate science is clear – the world cannot wait. And our economy cannot wait. Commitments made with the Paris Agreement need to be adhered to – and though COP27 was a restatement of this desire, there is evidence that we will exceed the 1.5-degree increase. In fact, according to the UN, current climate plans could lead to an increase of almost 11 percent in global greenhouse gas emissions by 2030, not a reduction.
Governments need to play a bigger part than they do now – the private sector cannot do this alone. Unfortunately, the current approach is more stick than carrot, with potential fuel duty hikes and the phasing out of diesel vehicles overly clumsy and uncoordinated. This approach is shortsighted and could even stall infrastructure roll-out and vehicle development, as many companies opt for a ‘wait and see’ approach. Change is challenging, but there is a risk associated with leaving it too late: for the environment and for business.
However, it’s not all negative news. Investing in green technology, including electric HGVs, is a big commitment. But there is another way to make real reductions in CO2 emissions right now – HVO fuel. This drop-in replacement ‘bio-diesel’ is made from waste, is renewable, and can be used in any diesel truck or car straight away.
Other good news? The production of it is not affected by fossil fuels or the war in Ukraine. Lab tests show that HVO can
reduce carbon emissions by up to 90 percent compared to diesel. It does cost ten to 15 percent more than diesel, but the benefits are huge. The Global Logistics Emissions Council is currently reviewing HVO – we just hope that they complete this with speed! This intermediate fuel is a great way for businesses to cut emissions today and, combined with a digital freight management platform, make double-digit savings in delivery costs too.
The consumption economy is here to stay. What we need to do now is combine science, technology and the will to drive forward. Sustainability is about sustaining economic needs and building a future for freight that is good for people and planet.
Investing in upgrading our freight infrastructure, supporting freight providers of all sizes, and investing in the acceleration
of new market technologies and ways of working is essential, and will have a tangible, positive impact on the long-term health of our consumer-driven economy. ■
For a list of the sources used in this article, please contact the editor.
Jai Kanwar and Clemente Theotokis are co-Founders and joint-MDs of digital log-tech start-up Zeus. The two-year-old freight-matching platform, used by 40+ enterprise-level clients including Primark, Decathlon, Nestle, Kellogg’s, and AB InBev, is driving change across the sector through service-first solutions to middle-mile distribution that deliver substantial reductions in CO2e
Freight 31 scw-mag.com
Is your supply chain ready?
The next Black Swan event is already out there say John Ferguson and Ken Koenemann
Like one-hundred-year floods, Black Swan events, a term used to describe unforeseen occurrences with a severe impact, have become increasingly common with consequences for global supply chains. Covid and Russia’s invasion of Ukraine are two such events that derailed the global movement of goods and parts for finished products, affecting a wide range of manufacturers and distributors. Now, the threat of a US freight railway worker strike and heated tensions over Taiwan are two more ‘outlier’ events that should remind business leaders to regularly anticipate, and plan for any unforeseen disruptions to the global supply chain
Key to resiliency is de-risking and diversifying
A conflict with the People’s Republic of China over Taiwan or a strike by US freight railroad workers each brings with it its own permutations of challenges, but a key to resiliency in a supply chain is de-risking and diversifying by building a broad pool of suppliers across geographic regions. Managers should now view the supply chain as one with many hidden fault lines where there never is zero risk of disruption. For many manufacturers, changes in the geopolitical landscape and other factors may spur a push to find suppliers closer to where a final product is produced – a refinery or assembly plant. Also, manufacturers may forgo low-cost suppliers for sources that safely assure uninterrupted delivery of essential parts and raw materials. A conflict over Taiwan is sure to impact global trade, disrupting supply chains. Published reports offer varying theories on how China may try to seize the island nation, with some
analysts suggesting that Taiwan’s ports could be blockaded and undersea communications links could be severed. Any conflict would impact the shipping of goods from Taiwan and nearby markets via sea or air. Goods and raw materials sourced from the entire region are diverse, but Taiwan is home to more than 90 percent of the manufacturing capacity for the world’s most advanced semiconductors, a critical building block of modern industrial economies. Meanwhile, the implications of a disruption to US rail traffic are evident when considering weekly data measuring goods delivered by rail: each week, nearly half a million carloads and intermodal units move motor vehicles and parts, nonmetallic minerals, farm products, grains, chemicals and metals.
Conduct top-down review of all aspects of production to map out vulnerabilities
Managing geopolitical risk now means that companies should not rely on a particular supplier or a region and watch for political flashpoints that could disrupt supplies. If you rely on one primary supplier for 80 percent of your goods and 20 percent from a secondary source, you may want to change that mix. While maintaining strategic alliances with suppliers is important, if you want to de-risk and build a resilient supply chain going all-in with one supplier may no longer be feasible. For some businesses, adopting this strategy may be easier said than done. Within healthcare, for example, you can readily shift sources of masks or syringes, but the pivot to a new supplier of Magnetic Resonance Imaging machines may be tougher because of their size and weight. Sometimes, weaning yourself off a region and its suppliers – for example,
Resiliency 33 scw-mag.com
Taiwan’s semiconductors – cannot be accomplished overnight because shifting production is complex and involves a long-term effort.
Faced with a rail strike or tensions in Asia, companies looking to ensure resiliency in supply chains should take a strategic look at what goes into the production of finished goods and what may impact their ability to fill customer orders. Such a topdown review involves examining all aspects of a manufacturing process to see what raw materials or parts are essential ingredients that could be cut off by a disruption in rail, air, or trucking tied to geopolitical or labor issues. Ideally, this cataloging of key ingredients is carried out regularly, and managers routinely review component families and inventory classifications to map out vulnerabilities in a supply chain,
assigning a risk score to each part. Can a mold for a product be moved to another location, and how quickly will machinery need to be retooled to fulfill orders at another location?
Increasing your safety stock to weather unforeseen challenges
In some cases, managers will want to reconsider how they view ‘safety stock’ and increase inventories of essential parts or ingredients for their manufacturing process to mitigate risk. For example, companies dependent on freight rail for plastic pellets or resin – used in seat belts and cell phones – will want to keep an extra railcar or two on site to ensure a strike doesn’t slow plant production.
Companies may have become more complacent after the end of the Cold War when geopolitical
tensions appeared to abate, however, since the pandemic, conversations about supply chain risk are routine. Many business leaders are feeling exhausted like smoke jumpers that have been putting out fires since 2020. Each new unforeseen event brings its own set of challenges. As these high-impact events become more prevalent and predicting when or where they’ll occur becomes more challenging, it’s imperative that business leaders find a way to manage them by assessing risks to their daily processes and diversifying to build more resilient supply chains. Managers should get into the practice of reviewing their business’s vulnerabilities ahead of any actual crisis. That means adopting a business culture that looks to identify risks to their supply chain before unanticipated calamities
and introducing a Chief Resiliency Officer or CRO, whose sole role is to oversee a regular strategic review of supply chains and their durability. ■
For a list of the sources used in this article, please contact the editor.
John Ferguson is Chief Executive Officer, and Ken Koenemann is Vice President, Supply Chain & Technology, at TBM Consulting. TBM Consulting is an operations and supply chain consulting firm that works with manufacturers, distributors, and private equity firms to accelerate productivity, improve profitability, and grow enterprise value. The firm’s supply chain capabilities include inventory optimization, supplier management, talent development, integrated business planning and S&OP, and network/warehouse optimization.
Resiliency 35 scw-mag.com
...companies looking to ensure resiliency in supply chains should take a strategic look at what goes into the production of finished goods and what may impact their ability to fill customer orders
“ “ “ “
Make supply chain woes a thing of the past with end-to-end digitization – and that includes packaging and labelling
Siloed operations make businesses vulnerable to disruption, and poorly placed to respond when issues do occur, and are often caused by operational challenges such as acquiring competitors in new geographies or changes in legislation. It is clear that businesses of all sizes must ramp up digital transformation efforts to ensure end-to-end integration remains a
priority, says Arjun Khanna, Chief Technology & Innovation Officer at Kallik. Critically, that must include the pivotal but regularly overlooked artwork and labelling processes –it is essential that ‘what it says on the tin’ is accurate in every detail. When disruption occurs, the ability to react quickly and effectively to avoid a ripple effect throughout the supply chain is vital. But a recent survey of manufacturers found
that up to 90 percent struggle with integration challenges that are essential to maintain smooth supply chain flows.
Despite the much-publicized threats to business continuity, many firms continue to operate a patchwork of core systems with either little to no integration with each other. They are often developed piecemeal with inhouse fixes or manual workarounds. While this may help maintain the status quo of day-to-day operations, it is highly vulnerable to disruption and far from agile compared to more digitally mature competitors.
Disparate data predominates legacy systems
Thankfully, the latest wave of digital transformation has placed an increased focus on the safety of cloudbased solutions and customizable implementations for core platforms such as ERP systems. However, other, more legacy systems or manual processes are equally critical to operational success –yet often neglected in the grand scheme of ‘digital transformation’ projects. This lack of integration is especially noticeable among businesses operating in highly-regulated industries such as pharma, medical devices or chemicals, despite these being prime candidates for short-notice impactful disruption.
Integration is critical to artwork, labelling and packaging
The disconnect is particularly noticeable in siloed product assets, where labels, artwork and symbols are often subject to minimal version control or global insight, and where integration with print requests and data flows from the ERP system, for example, are yet to be embraced as part of an integrated system.
But these label and artwork management systems play an increasingly critical role in ensuring product consistency, consumer safety and regulatory compliance. As a result, having these operations and assets siloed is non-negotiable. Integration with other platforms such as regulatory systems is a must.
Underestimate it at your peril
Take a label for a simple medical device intended for the EU market. This must pass through extensive review and approval processes to
Integration 37 scw-mag.com
ensure medical, marketing and regulatory information – including various symbols and markings – are all present, correct and consistent. To be sold broadly throughout the EU, this device label would in theory need be translated into 24 different languages.
This upstream process is therefore very delicate and susceptible to disruption or human error. If an incorrect version of a regulatory symbol is used, or some medical information is changed in one language then not updated across all other language versions, this could introduce a major error – potentially even threatening the health of the end-user and triggering a costly product recall.
If the systems involved in this workflow are not fully integrated into other critical business systems, processes and databases, the risk of recalls can rise significantly.
Choose a digital artwork and labelling system that suits integration
Consolidation and integration is key when it comes to rationalizing and standardizing systems and processes as part of a
company’s digital maturity project. That means finding proven, feature-rich solutions that can be deployed across all necessary department and locations worldwide, with full integration capability to ensure seamless operation with other core systems.
Label and artwork management platforms are no exception. Indeed, these must be able to integrate with other critical software as standard – from Regulatory Information Management (RIM) systems, Enterprise Resource Planning (ERP) platforms and Product Lifecycle Management (PLM) solutions.
Go the extra mile – establish a single source of truth with integration in the cloud
Business leaders would also be welladvised to opt for a cloud-based solution that can be readily deployed and accessed in any location by any department, adding a new level of scalability.
As businesses connect and integrate critical IT infrastructure, the benefits of truly unified operations and visibility become apparent.
For example, if a specific product asset or symbol must be replaced or updated at short notice, users can tap into the ‘Where Used’ functionality within a fully integrated management solution to identify every instance of the existing asset actively being used worldwide – and effortlessly make a bulk update in turn. No manual searching of data siloes, no piecemeal updates across multiple teams – this is all easily accessible and actionable in a ‘single source of truth’.
The benefits of integration are all encompassing
This unlocks powerful end-to-end audit and version control capabilities – allowing any users with relevant permissions to make changes and flag comments in a clear, actionable format. By integrating a solution with further powerful features, such as automated artwork generation, businesses can significantly reduce the risk of human error in asset creation, updating and positioning.
For artwork and label management solutions, a cloud-based end-to-end platform is an ideal candidate focus for any integration-
minded business – providing a standard set of APIs out the box as a tried-and-tested ‘blueprint’ to follow during implementation.
From a security perspective, shifting to a single artwork and label management platform also brings fresh benefits –with a single sign-on and corporate login enhancing system security, user management and data protection.
The race to digital transformation is on – keep pace with innovative rivals
The ability of integration to ensure enduser safety in highly regulated industries, and reduce artwork and labelling errors is immense. From distributing new products to exploring new geographies, businesses can be agile, adaptable and resilient with integration providing a robust digital backbone. With supply chain disruption set to continue, there’s no time like the present to assess legacy IT stacks and equipment for either heavy integration, or replacement with modern alternatives. ■
For a list of the sources used in this article, please contact the editor.
Kallik, the enterprise labelling company, provides regulated industries with a definitive, end-toend artwork management and label management platform they can trust. Medical device, pharmaceutical, chemical, manufacturing and cosmetics companies use Kallik to deliver trust in their labelling, integrity in their process and confidence in their brand. Kallik’s cloud-based labelling platform, Veraciti™, enables compliance and delivers supply chain efficiency for all the artwork and content assets that make up product packaging, labelling and instructions for use (IFUs).
Integration 39 scw-mag.com
Offering a diverse line of paleo, keto-friendly and gluten-free certified products, Kevin’s Natural Foods (Kevin’s) has made it its mission to help customers eat clean, delicious foods that can be prepared in minutes. This wide-ranging line of recipes and products, utilizing restaurant-quality ingredients is available at an accessible price point both online and in-store at over 17,000 coveted retail locations, including Whole Foods, Target and Costco. Within just three years of launching, the brand has already helped millions of Americans change their perspective on healthy eating, by making healthy diet choices accessible to all.
As an increasing awareness builds for the importance of a healthy diet, Kevin’s Natural Foods is striving to make the clean eating lifestyle accessible to all
Kevin’s Natural Foods scw-mag.com 43
Lone Cypress Logistics Inc
Lone Cypress Logistics Inc offers clients a solutionsoriented service, combined with a blended background of experience within many segments of the industry. These include transportation, logistics, produce and food, shipping and receiving, warehousing, forecasting and replenishment, and more. We understand Kevin’s Natural Food’s mission, and work closely with its talented and motivated staff to achieve the company’s goals. We aim to provide the best service for the business, its clients, and – most importantly – the consumers who count on Kevin’s to always have their high-quality products available on store shelves. Lone Cypress Logistics Inc fully stands by Kevin’s as it continues to grow the business, working to bring healthy and great tasting food to its customers.
Sharing his story on how healthy eating helped to change his life, CoFounder and Chief Operating Officer, Kevin McCray, explains how the concept behind the business was born: “I struggled for years with a severe autoimmune disorder. Going from being happy and healthy to in-and-out of the hospital, unable to find a conventional form of medicine that helped me consistently, really threw my life off balance. This was until I discovered the power of clean eating. I switched to a diet rich in whole foods and avoided refined sugars. This helped me to reclaim my energy and my health, enabling me to live my best life again.” He continues:
“Seeing the difference that a clean diet made to my life, I was inspired to help others in a similar position, and that is where the idea for the business started.”
Meals in minutes
Today, the company has developed a wide-ranging product portfolio including sous-vide protein entrées, heat and eat sides, cauliflower-based pasta entrées and a complementary line of cooking sauces. Kevin’s avoids refined sugars and artificial ingredients whilst remaining focused on delivering flavor, offering a variety of delicious recipes inspired by cuisines from around the world. All products are made in the company production facilities in Stockton, California, utilizing a kettle-cooking operation for hot-filling sauces and potatoes alongside a robust, sous-vide operation for cooking proteins and vegetables in a hot water bath.
When it comes to product innovation, much of the inspiration for Kevin’s products has been taken from observing restaurant cooking methods, alongside the extensive chef and restaurateur experience of company co-founder Dan Costa. The process of browning sous-vide meats in a pan which is then deglazed with finishing sauces is a popular method used in restaurant
kitchens for preparing orders quickly without sacrificing flavor. These methods have inspired the format for some of Kevin’s own products, enabling customers with busy lifestyles to prepare healthy, restaurant-quality meals in minutes.
Full of flavor
The company recently launched the world’s first line of paleo-certified pasta entrées, combining cauliflower-based pasta, sous-vide meat and a signature pasta sauce packed with three servings of vegetables. This new line of products puts a healthy spin on classics such as beef stroganoff, chicken penne alla vodka and lemon garlic chicken penne, all prepared in just five minutes.
In addition to this, Kevin’s has recently announced the introduction of its ready-to-cook meat entrées for April next year, just in time for the summer. These 30oz portions contain raw, marinated chicken breast alongside a pouch of one of
Ultimately, we are all aligned and working towards the same goal: empowering people to eat clean without sacrificing flavor. Kevin’s Natural Foods scw-mag.com 45
“ “ “ “
Kevin’s signature sauces, used for marinating, dipping or simmering. These products are designed specifically for customers wanting to cook their own proteins on the BBQ, stove, or in the oven and will include flavors such as Korean BBQ, sun dried tomato pesto and Hawaiian BBQ chicken.
Alongside providing customers with its exceptional products, the business also takes its commitment to sustainability seriously and has adopted a number of green initiatives to limit the impact of the company on the planet. For example, it has recently started rolling out new sustainable packaging, moving away from the use of plastic trays towards recycled cardboard boxes and compostable trays for its in-store entrées. Furthermore, the company has adopted new packaging for its e-commerce products, utilizing thin plastic pouches as an alternative to plastic trays and sleeves. This means that a higher quantity of product can be packed into smaller boxes for shipping. In addition to this, Kevin’s
has switched to dry ice packaging as a more environmentally friendly option for keeping online orders fresh. It is estimated that, following these initial swaps, the company will reduce its plastic use by a total of 894,548 pounds by 2023.
Humble & Hungry
Shedding light on the crucial role that people play in the company, Kevin McCray explains:
“The people side of the business is the most important aspect of our company. Every day we make a conscious effort to act according to our internal motto, ‘Humble & Hungry.’ To this end, it is not rare in our company to see our leadership pouring coffee for employees, picking up trash, or parking at the end of the parking lot. We celebrate work and this motto informs many business decisions that promote a Humble & Hungry culture at Kevin’s.” He goes on to explain a key example of this: “At Kevin’s, every employee is a shareholder regardless of rank. This promotes a sense of ownership and pride in the business, above and beyond a traditional compensation model. Ultimately,
Your partner in LTL Cold Chain Transportation
Get your products to market, on time, for maximum effect.
Whether you need local, national or global logistics services, our solutions bridge the gap. Our client services and carrier network always deliver.
Rely on us for the long haul.
Want to get “in” with these receivers? Let Boa Logistics help you deliver.
• Efﬁcient delivery times
• Simpliﬁed price structures
• 24/7 operational visibility
• Optimal service levels
• Fewer touch points
• Nationwide redelivery partner carriers
Boa is proud to partner with:
On-Time Delivery Solutions
READY TO SHIP & SAVE? Ask us for a quote: email@example.com
we are all aligned and working towards the same goal: empowering people to eat clean without sacrificing flavor.”
The health standards of Kevin’s products appeal to and satisfy the dietary requirements of a wide-ranging customer base, including both individuals who must adhere to a strict lifestyle diet for health reasons as well as those who are simply wanting to eat better. The market is experiencing a growing demand for specific lifestyle diets such as paleo, keto and gluten-free, as well as a general shift towards clean ingredient profiles and ingredients which avoid refined sugar, synthetic preservatives and harmful fats. As health and wellbeing continue to become an increasingly prevalent consideration for many people, these shifts in the market have helped to drive customers towards Kevin’s products,
putting the business in a strong position to continue on a trajectory of steady growth over the next few years.
Clean eating culture
Looking towards the future of the company, Kevin’s hopes to continue expanding its product lines and culinary shortcuts, to the point where the company is helping the majority of US households to eat clean on a daily basis. In the long-term, the company hopes to see rates of diabetes, obesity, and coronary artery disease start a consistent annual decline. The business is striving to make meal planning and meal prep easier for customers from all walks of life, aspiring to make a substantial contribution to a society-wide shift towards healthier eating habits and lifestyle decisions. ■
Kevin’s Natural Foods scw-mag.com 49
Meet CarePoint Health, the healthcare system putting community before profits Meet CarePoint Health, the healthcare system putting community before profits
CarePoint Health (CarePoint) is an independent healthcare system in Hudson County, New Jersey.
Combining the resources of Bayonne Medical Center, Christ Hospital, and Hoboken University Medical Center, it supports a diverse and growing patient population, many of whom have limited access to healthcare or minimal insurance.
CarePoint’s mission is to improve the health of the communities it serves, through compassionate treatment and innovative
solutions. Its myriad facilities enable the organization to provide specific services, such as cardiology, neurosurgery, orthopedics, and mother and baby care, to communities most in need.
Supply chain strategy
Vice President of Supply Chain, Chad Sandefur, joins us to share his insights on CarePoint’s capabilities and the significance of the supply chain within the system. Just one day prior to our conversation,
CarePoint Health scw-mag.com 51
the New Jersey Health Planning Board officially approved CarePoint’s transition into a non-profit entity, so Chad had lots of exciting, imminent plans to discuss.
“Prior to the Covid-19 pandemic, our health system was focused on merging with a larger system, but the Covid outbreak put CarePoint at the forefront of the crisis,” Chad begins. “Facing one of the largest affected populations, we responded with a greater commitment to our community and provided leading edge care. Today, we are continuing to navigate a post-Covid environment and strategically planning for our long-term growth.”
Community healthcare is significant in Hudson County, as it is one of the most ethnically diverse areas in the US, with African American and Hispanic individuals making up 80 percent of its population. Around 60 percent of its residents are uninsured or Medicaid patients, so neighborhood outreach
programs are essential to CarePoint’s strategic growth and critical for patients unable to travel outside the county. “At the same time, we need to provide new services and innovative care for a rapidly growing population of young people and families,” states Chad. “We responded with urgency during the pandemic, and we now apply that intensity to programs for the entire community.
“In the words of our CEO, Achintya Moulick, we had to ‘rethink everything’ to achieve our goals,” Chad continues. “In terms of supply chain, we embrace change, challenge the status quo and present new ideas to drive operational excellence. I have an awesome supply chain team and our strategy is based on simple, concise principles. These include actively challenging spending that impacts the cost of care, providing excellent customer service, automating processes, fully understanding the departments we serve, and cultivating effective, supportive relationships.”
CarePoint Health scw-mag.com 53
Top line growth
The current financial environment is challenging for most hospitals: rising inflation and general supply chain shortages have driven a ten-to-15 percent increase in the price of basic supplies. Labor shortages have resulted in a need for agency nursing, which has further increased costs. Nonetheless, CarePoint continues to successfully guide the system through the crisis. “We tightly manage our contract terms, involve larger decision groups and shorten the duration of a contract,” Chad explains. “We work closely with revenue cycle teams to establish case cost targets. Inventory management is a system-wide focus, and we are increasingly considering the purchase of pre-owned equipment. It’s the combination of these little things that really make a difference.”
Despite financial challenges, CarePoint is executing strategies for top line growth. “We are investing in both our physicians and technology, expanding our cardiology and neurosciences programs, and establishing additional Cath Labs and Imaging Suites,” Chad details. “We have strategic partnerships
with Rothman Orthopedics, Columbia University, and St Peters to grow our spinal care program and pediatric services. We are also building an Urgent Care center and adding more physician offices.”
CarePoint recognizes the vital role of technology in supply chain operations. In 2021, it unveiled its Healthcare Innovation Center, a groundbreaking initiative focused on collaboration between clinicians and external parties to redesign healthcare. It will strive to solve difficulties within healthcare, as well as pilot novel approaches and concepts to enhance the patient’s experience. “We are always generating ideas and anticipating where healthcare is going in terms of technology,” explains Chad. “This center enables us to quickly adopt and respond to technological advancements, with huge benefit to our patients and community.”
In addition to the Innovation Center, CarePoint opened the Dr Hemant Shah Research Center in 2022 to honor Dr Shah’s positive impact on healthcare within Hudson
County. This center facilitates clinical, epidemiological, and translational research, with the aim of advancing healthcare. Chad highlights: “The wider healthcare industry continues to incorporate technological advancements, so our focus on innovation and research is key to introducing new products, processes, and automation to CarePoint.
“Employee burnout is a concern in all businesses, but especially in healthcare,” he continues. “The past three years have been demanding. For many of our staff, the hospital becomes their community. Many individuals were born in local neighborhoods, so there is a real feeling of family, and we support each other personally and professionally. For my team it is exciting to contribute to the hospital’s future.”
Chad concludes: “The transition to a nonprofit system opens more financial resources and opportunities for CarePoint moving
forward, for instance, access to federal funding, eligibility for 340B pricing, and the ability to raise capital are just a few of the immediate benefits. The demand for quality healthcare and the subsequent strain on providers is not going anywhere, so we need to consider ways to best support our employees. This support will go beyond day-to-day operations, instead focusing on personal growth, whether that is through education, individual training, or involvement with other parts of the business.”
With a strong supply chain and planned expansions in multiple areas, CarePoint is ready to face the change, growth, and development required to become a non-profit healthcare system that genuinely cares for its patients and the wider community. ■
THE BEST CHOICE FOR FINANCING YOUR EQUIPMENT M A Z U M A C A P I TA L Call today (801) 818-0600 Learn more at MazumaCapital.com 274 W 12300 S Draper UT, 84020 CarePoint Health scw-mag.com 55
any load Lighten
Joloda Hydraroll demonstrates how innovative automation is enhancing sustainability across the globe
Joloda Hydraroll Ltd is a world leading provider of loading solutions across various sectors, including automotive, air cargo, and packaging. The business was born in 1962, with the aim of solving the British Army’s problem of loading heavy equipment and items of kit.
As a result, “the Joloda Hydraroll Skate, which we still sell across the globe, was developed, prototype tested, and rolled out as our first product,” begins Wouter Satijn, Owner and Sales Director at Joloda Hydraroll. “We have since designed many standard and customized solutions and have come a long way from our early days based out of a small garage. Today, we are proud to still be in Britain, but now with a group of nearly 250 employees across Europe and North America, and close to £50 million turnover.”
Joloda Hydraroll prides itself on offering solutions to lighten any load, with its products covering truck, van, and container loading, as well as warehouse solutions. There are two operational arms to the company, as Wouter details: “Our products fall into one of two categories, Manual Loading Systems and Automated Loading Systems. Our automated solutions are built to speed up the loading and unloading process, helping companies to transport their goods in the most efficient and safest way. This is the category into which most of our customized projects fall.
“We are unique in that we design and produce our products completely
▶ Wouter Satijnl
in-house, instead of outsourcing certain elements of the process,” he continues. “This means we are extremely flexible and, as a result, able to create completely customized solutions for fully automated or specific modes of transportation.”
Indeed, innovation is embedded in Joloda Hydraroll’s culture. “Engineering is at the heart of everything we do, so innovation is crucial, whether it’s a small adaptation to an ageold product, or the launch of an extremely smart new system,” Wouter states. Such innovation is evident in its recent work for an automotive company, where it designed and produced a double-deck trailer with an incorporated lift. This had not previously
Hydraroll scw-mag.com 59
been done, but Joloda Hydraroll’s expertise and precision enabled it to create the specific equipment to meet the client’s requirements.
Continuing the topic of innovation, Wouter highlights the company’s involvement with a Brazilian warehouse in the process of complete automation. Joloda Hydraroll helped the client automate its loading process, as he elaborates: “Where the trucks would previously drive to the warehouse and manually unload, we have implemented Automated Guided Vehicles (AGV), which are robotic forklifts that bring the pallets into the warehouse. They collaborated with a local Mercedes dealer on the last step of automation to develop self-driving trucks. With no driver behind the wheel, these vehicles resulted in a 100 percent automated warehouse, with no human interference in the process from start to finish.
“This huge state-of-the-art, fully automated warehouse in the middle of Brazil was something quite special,” he recalls. “There is a big push for high-tech loading solutions in Brazil and other countries in South America due to the ever increasing costs for labor, as well as labor shortages.”
Wouter shares his own reflections on automation, describing it as “an absolute must in order to achieve the high levels of efficiency needed in large warehouses.” He continues: “There are not enough people to fulfill demand for manual labor, so repetitive processes, such as loading and unloading, must be automated. It not only offers great cost savings, but also solidifies a warehouse’s output capacity. I refer to automated warehouses as ‘lights out’ operations,
and I believe we will see more automated facilities across the globe in the future.”
Additionally, automation has enormous potential to enhance sustainability. “By using our systems, clients use fewer trucks and have less idle time in the fleet,as drivers no longer have to wait for the duration of manual loading or unloading and subsequent delays,” explains Wouter. “For example, we calculated that one client saved 12,000 waiting hours, and another saved 8000 forklift kilometers per year, which results in a huge reduction in carbon emissions.
“We are also doing our bit to be a socially responsible company,” he continues. “At our Liverpool headquarters, we are installing solar panels to provide a green energy source for our factory. While growth and profitability are vital, being responsible to our environment, employees, and wider society is equally important to us.”
Turning to the future of the company, Wouter proposes: “It’s an interesting time to navigate while striving for growth, but we have some exciting projects lined up for 2023. We are setting up a facility in Japan, where automation is in high demand due to limited physical space and intense depopulation.
“We are also acquiring a company that is connected to loading solutions in air cargo warehouses,” he concludes. “We already supply products for air cargo transportation, but not yet in the warehouses. With airports becoming more cargo oriented, I expect this small acquisition to bring many interesting projects and growth within the Joloda Hydraroll umbrella.” ■
Supply chain agility and a legacy of goodness
Chocolate is a truly special treat. One that becomes our first love as children, and as we grow into adults, we use to celebrate, commiserate or express affection. We can’t be sure if there is a link between romance and The Hershey Company’s (Hershey’s) legendary kiss trademark, but what we do know is there was a lot of love and compassion behind the actions of Milton Hershey, the business’ founder.
The Hershey Company
Milton Hershey was ahead of his time in many ways. He thought about his people, his business, the community and the wider world and left a great legacy that carries on today “
▼ Tricia Brannigan Chief Procurement Officer
Milton Hershey established the chocolate company in 1894 as his third attempt at pursuing his passion for confectionery. By 1900, he had sold the first Hershey’s bar that we know and love today. The company has grown both organically and through acquisitions that have resulted in a portfolio of brands spanning sweet and salty. Whether it’s a Rolo that tempts your sweet tooth, a Kit Kat that calls the time for a break, SkinnyPop
or newly acquired Dot’s Pretzels that tickle your tastebuds, Hershey has something for everyone and for every snacking occasion. This expanded portfolio, and supply chain, positions Hershey to make a broad impact rooted in the company and its founder’s legacy.
During the Great Depression, Milton Hershey conducted the Great Building Campaign to develop a park, hotel, theater and a sports arena to provide employment for over 600 construction workers. He believed that business was a matter of service and focused a great deal of time and money on creating a company and a community that would be beneficial to all. Driven by compassion, selflessness and purpose, Hershey instilled a rich ethos of accountability and values into the fabric of the organization, which still inspires its employees today.
The Hershey Company
“Milton Hershey was ahead of his time in many ways,” opens Tricia Brannigan, Chief Procurement Officer. “He thought about his people, his business, the community and the wider world and left a great legacy that carries on today. One that focuses on caring for people, communities and particularly children and that continues to shape our culture and priorities as a business today.”
Brannigan has been with Hershey for nine years and leads all aspects of procurement, including commodities, raw materials,
packaging and indirect sourcing. Previously at Hershey, she was responsible for managing essential agricultural materials such as sugar, dairy, corn, sweetener and nuts. She joined the procurement team with a background in research and development, engineering and procurement at Kraft Foods, Dean Foods, White Wave and Dawn Foods.
“From the beginning, one of my key objectives has been to continuously and strategically raise the bar and take our teams and the company to the next level. And it all starts with people, talent and abilities, which is where I spend my time and energy.”
Hershey’s three-pronged procurement strategy focuses on people and partnerships, collaborative planning and agile specifications to absorb and deflect risk, ensuring operational excellence and maintaining great customer service. This strategy proved especially important in the volatile market that all supply chains have experienced over the past few years.
In drawing upon its culture and values and its purpose of making more moments of goodness for consumers, Hershey works to build and maintain strong relationships with its suppliers; relationships that go beyond simple connections to encompass collaborative planning and delivery. High integrity, prioritization and transparency are the hallmarks of its successful supplier relationships and business results.
“We want to work with partners who not only share our values but also place the same emphasis on food safety, high quality and performance, and consumer care. A relationship of trust and transparency creates an environment in which you can push one another with new opportunities and options catered to the other party’s traits and visible capabilities.”
One area where Hershey’s focus on people and partnerships shines through is its ESG strategy, and particularly DEI. The candy and snack maker is well known for its leading ratings and rankings in industry benchmarks. In 2022, it was positioned at number six on DiversityInc’s Top 50 Companies for Diversity list, and particularly so for its work in gender equity and representation, both within its workforce and the communities in which it operates. An enhanced supplier diversity strategy is just one example of the company’s DEI efforts.
“We are constantly seeking new ways in which we can engage and promote under-represented members of the community through business to facilitate greater innovation and diversity within the industry. By 2030, it’s our aim to quadruple our supplier diversity spend, and we are in the process of working with external organizations to develop our best practices, with which we can educate our teams,” Brannigan explained.
For companies like Hershey that have a high household penetration and global brand reach, having a workforce and supply chain that reflects its consumer base is a key component of its success. Hershey sees itself as in a unique position to make an impact due to the size and scope of its value chain.
As such, both Hershey and its suppliers can offer greater value to stakeholders, indirectly fueling the value and innovation that can be delivered to the consumer.
“We are engaging diverse marketing and talent agencies, which extends the initiative further across our supply chain than just raw materials and packaging. Our company vision is to become a leading snacking powerhouse,” Brannigan enthuses. “Given the growth trajectory of the business, we had to develop new practices to deliver 2022’s outcomes. As we entered the year, I worked closely with our supply chain and manufacturing teams to deliver our agile supply work stream. It’s focused on predicting risk and leveraging these insights to quickly adjust our specifications, deliveries or pack types as they deem necessary, while exceeding our quality and sustainability expectations.”
Based on the company’s 2022 earnings results announced in early February 2023, the approach is working. Hershey announced 2022 as one of its strongest years in history, including exceeding $10 billion in net sales despite the environment of record inflation and unprecedented supply chain disruptions. Investments in its powerhouse brands and additional capacity and capabilities are expected to deliver again in 2023 as Hershey works to keep up with the ever-growing consumer demand for the goodness of the company’s wide-ranging snacking portfolio. ■
The Hershey Company scw-mag.com 67
Tour at SACO
The dough continues rising
Hoogland Restaurant Group sets the ultimate example for growth and expansion
McLain Hoogland, President, is the fourth generation of his family to lead under the umbrella of Highland Ventures (HV), in the Hoogland Restaurant Group (HRG). The group was founded in 2012, inspired by a previously successful endeavor the family had owned in the 1990s, and one of myriad operations under its wing.
McLain’s great-grandfather started the HV legacy in Springfield, Illinois, with Mid States
Appliance (MSA), a middle market company that his grandfather ended up taking over. By the time his dad joined, there were a number of other small ventures involved but MSA remained the mainstay. As it grew it became a wholesale business for suppliers and was chiefly responsible for getting Sony into Sears, among other major retail chains. In 1978, HV was one of the first in the US to enter the video rental sector with Family Video, of which McLain’s father became the President.
▼ McLain Hoogland, President
Hoogland Restaurant Group
“Over the next 30 years that grew into a 900-unit video store chain. We were actually the third biggest in the US for a period of years, behind Blockbuster and Hollywood Video,” McLain states. “During that period we built up our current real estate portfolio, of around 700 commercial properties, until 2010 when Blockbuster filed for bankruptcy. Despite Family Video lasting until 2021, my dad started to see the end of the tunnel and decided to revisit the restaurant sector. We had a really successful pizza company called Pop’s Pizza back in the 90s, but it became too much of a distraction from the video business.
“We landed on Marco’s Pizza (MP) after a franchisee moved into one of our spaces down in Murfreesboro, TN, and we couldn’t help but notice the likeness between its model and the one we had adopted for Family Video: great products, excellent customer service, and a real sense of authenticity. We started opening up MP branches in 2012 and within five years had 125 under our ownership. I joined the operations side of HV in 2016, when I left the Marine Corps, and kind of got thrown into HRG to fix this side of the company. I had enough
time to close some poorly placed units and replace them with stronger positions before the pandemic hit, which blew up our business in the best kind of way.”
The menu at MP is a succinct collection of high-quality pizzas, sides and subs. The pizzas come loaded with the brand’s signature three-cheese blend on a number of different crust styles, and play host to a range of topping-combinations, such as: All Meat, with pepperoni, ham, Italian sausage and bacon, Deluxe, which swaps out the ham and bacon for mushrooms and green peppers, Garden, a vegetarian option, and many others. The sides include Cheezybreads, salads and chicken wings or dippers, as well as sweet Cinnasquares for dessert.
“If I could only eat one of our pizzas for the rest of my life, it would be between two of them,” McLain continues. “Either our Deluxe, or the White Cheezy. It has a white, garlicparmesan-sauce base, our regular cheese blend and then it comes with tomatoes, bacon, onions and feta. It’s just awesome. It’s one of our best sellers. For a long time it won best pizza every year for MP.
Hoogland Restaurant Group scw-mag.com 71
“For me, pizza represents a sense of community as it’s always been a familyoriented meal. Everyone’s got a preference, but you still ultimately find a way to share it, whether it’s all meat or half and half, or you’ve got to get two smaller ones so you can get a gluten-free option as well. Everyone loves pizza, I don’t know anybody who doesn’t like it, so I always try to impress on our staff that you’re literally making or breaking somebody’s day with what you serve them. It’s a last-minute thing that you can order and collect within 20 minutes that will feed your entire family, and maybe even provide leftovers for the following day.
“Besides attending business school, my background is in operations, training and people management from being an infantry officer in the Marine Corps,” McLain explains. “However, I’ve found the structure of the restaurant business to be very similar, with the linear chain of command and
repetitive nature of the procedures. I feel that restaurants are very simple enterprises, as long as you are focused on training your people and providing great customer service. I found my true passion in the opportunities we can offer our employees, in terms of career progression. It’s one of those industries where you can succeed on merit, rather than just academia, and rise from a driver up to a multi-unit manager. I like to reward those who work hard.
A fresh approach
“Consistency is the key to our success. In quality and taste but also in people, training and leadership. We make our dough daily, which only lasts around 60 hours once it’s been set to prove, and still use only fresh toppings and ingredients. With the product nailed down, I have complete confidence that we can hit 300 units in five years’ time. The current rate of growth has been 25 locations
▲ McLain, far right, with District Managers of Marco’s Pizza
every year, so we need to alter our approach. Internally, priming our workforce is a key factor adopted from Family Video, where we had 32 years of uninterrupted growth year-on-year. By the end, almost everyone at the top had risen from an entry position.
“We’ve just moved our corporate office down to Nashville, TN, from Chicago, with the aim of expanding our footprint within the region,” he concludes. “Going forward, there’s around 20 different markets that I’ve shortlisted for maximization, in which we currently have five units. Our talented multiunit operators are capable of managing six-toten spots, depending on their geographical placement, which means we’re in a prime position to almost double our coverage without a great deal of overhead. We love the brand and have a really good partner in MP, so if something is working, then why stop?” ■
◀ McLain, left, with Josh Goforth, District Manager of the Year, 2022 scw-mag.com 73
Hoogland Restaurant Group
The people at Forrest General are critical to everything we do, as our success relies on building trust among employees and customers
“ “ “ “
◀ Doris Vaughn, Director of Supply Chain at Forrest Health
SUCCESS IN SUPPLY
Forrest General Hospital: Meet the Supply Chain team strengthening the future of healthcare access in Mississippi
Forrest General Hospital (Forrest General), located in Hattiesburg, Mississippi, has been a leader in medical excellence since its inception in 1952. It has grown from a 90bed facility into a 547-bed, Level II Regional Trauma Center and hospital system. The hospital expanded to Forrest Health in 2012, encompassing a total of seven hospitals, of which Forrest General is the flagship. The system has increased access to high quality healthcare and enhanced the stability of local community hospitals throughout Mississippi.
According to Doris Vaughn, Director of Supply Chain at Forrest Health, with countless specialties, various treatment methods, and doctors in distinguished areas of care, Forrest Health serves local communities in 19 counties across south Mississippi. “Thanks to these offerings, patients aren’t required to travel out of state to receive treatment,” she says. Its
myriad facilities enable Forrest Health to offer specific services, including behavioral and addiction support, cancer treatment, emergency and trauma services, orthopedics, and surgical amenities.
The supply chain plays a significant role in the overall operation of Forest Health. “Since purchasing and supply chain are centralized, we purchase everything but food and pharmaceuticals, and manage the inventory for our entire system. We work closely with all departments on a day-today basis, especially in high-volume areas, such as Labor and Delivery, Surgical Services, and Radiology. Communication with these departments and vendors is key, particularly when working through substitutions and other general supply issues. As a medical facility serving the public, we cannot thrive financially without competitive pricing, so coordination with the finance team is critical in managing the system’s costs.
General Hospital scw-mag.com 75
“The people at Forrest General are critical to everything we do, as our success relies on building trust among employees and customers,” Doris continues. “We act as a resource to all areas and find effective solutions and substitutions, even when the task seems impossible or never-ending. The hospital’s staff depends on us to do our job to the best of our ability. These employees have become valued friends, too, and know we will do everything in our power to get the items they need to care for Forrest General’s patients around the clock.”
Similarly, Doris sheds light on the importance of technology solutions in streamlining supply chain operations at Forrest Health. She states: “We use Infor for our Maintenance Management Information System (MMIS), as well as its par management system, Mobile Supply Chain Management. We have numerous
recurring jobs for recommended reordering for inventory, pick tickets, automated approvals, and Electronic Data Interchange (EDI) processes, which enhances the efficiency of our internal communications. Staying up to date with technological advancements and solutions is vital for continued efficiency across the system.”
Forrest Health is currently working on a potential initiative for surface reprocessing, which would reduce both expenses and environmental impact. “Reprocessing of single-use medical devices is the process of inspecting, function testing, sterilizing, and restoring products so they can be safely used again in a clinical setting,” Doris explains. “We currently use an independent vendor to reprocess several of our surgical and catheterization laboratory items, which results in huge savings over the original manufactured item.”
On a more personal note, Doris reflects, “The highlights of my career have been many product conversions and on-boarding of facilities we have acquired or built, which were achieved through hard work and collaboration with clinical staff and our Supply Chain team.”
As to be expected, there have also been many challenges during her career. “Working during the strike and aftermath of Hurricane Katrina, which hit the Mississippi Gulf Coast in August 2005, was particularly tough,” Doris recalls. “We had no power or water for days and had difficulty establishing a phone connection or electronic orders to vendors.
“However, I would have to say the toughest times have been during the last two years of the COVID-19 pandemic. The supply chain experienced a huge backlog of orders, issues with allocated products, and delivery problems, which have unfortunately continued to permeate our system.”
Looking towards her retirement, Doris is excited to be moving into a new phase of her life. “I’m lucky to be in good health so I can stay fit, enjoy gardening, and spend time with my loved ones. The advice I would give my younger self is, ‘it’s the trip, not the destination,’ so enjoy the processes while you’re working through them. I’d certainly share the knowledge I’ve gained through the years and reassure myself of the efficiency our department currently experiences in comparison to when I started here.” Beyond her retirement, Doris hopes, “Forrest Health will continue to grow, acquire new facilities, and offer more services to its communities in order to sustain access to quality care throughout Mississippi.” ■
Forrest General Hospital scw-mag.com 77
Sentara Healthcare: behind the curtain at one of America’s best employers Supplying the care you need 78
Supply chain is arming our physicians with viable options based on accurate analytics, so that they can dictate both the appropriateness of devices for care and the pathway by which we’re meeting our financial reduction goals for the organization
Sentara Healthcare scw-mag.com 79
“ “ “ “
Sentara Healthcare (Sentara) operates with a core mantra: “We improve health every day.” Patients may change, but the mission is constant. Each day, Sentara seeks to improve lives through better health – and it has been doing so for more than 130 years. To find out more, we recently sat down with Jennifer McPherren, Chief Supply Chain Officer of Supply Chain Management at Sentara.
“For many years, Sentara has been one organization that operates two different services in order to meet the needs of our communities,” she begins. “Indeed, it is both a healthcare delivery organization and operates its own health plan. We intentionally lead with our ‘One Sentara’ model to bring these two distinct service offerings into closer alignment, generating a more unified encounter for our consumers.
“Our goal is to provide an experience that is simple, seamless, personal, and affordable,” continues Jennifer. “This is because those are the key elements that we believe consumers are looking for in virtually every purchasing decision – and healthcare should be no exception. Above all else, Sentara exists to be the trusted partner for individuals and the wider community on their journey to health and well-being.”
As Jennifer has intimated, Sentara is an integrated, not-for-profit health care delivery system, recognized nationally for superior clinical quality and safety. The provider is strategically focused on innovation and intends to create a robust health care experience for its patients and members.
More specifically, Sentara is an Integrated Delivery Network (IDN), which comprises significant provider and health plan operations.
▲ Jennifer McPherren, Chief Supply Chain Officer of Supply Chain Management
So much so, that annual revenue now exceeds $10 billion, and the organization is a recipient of numerous awards. For instance, Sentara was named in IBM Watson Health’s ‘Top 15 Health Systems’ for 2021 and 2018 and was acknowledged by Forbes as the ‘Best Employer for Women’ in 2020 and, two years previously, one of ‘America’s Best Employers’.
Headquartered in Norfolk, Virginia, the organization operates 12 hospitals across its home state as well as North Carolina, which amounts to a staggering 2737 beds and over 100 outpatient care centers and sites of care. Working across the network are 29,000 diligent employees and 1375 physicians and advanced practice providers.
This robust, people-focused infrastructure enables the healthcare provider to carry out over 200,000 inpatient admissions, 730,000 emergency visits, and 88,000 surgeries, while serving its total of 950,000 Sentara Health Plan members. Indeed, in 2022 alone, the group fulfilled just under three million visits. Aiding Sentara on its mission, says Jennifer, is an equally robust approach to data, technology, and supply chain processes.
“As incredibly taxing as the pandemic has been on healthcare providers’ supply chain operations, it has also created an impetus for programmatic advancement opportunities,” she explains. “Visibility into real-time inventory levels is no longer a request – it is a requirement. That’s because there is a patient in need of, say, a CT scan or there is an infant relying on formula, provisions for which were incredibly scarce across the US last year. Therefore, proactive product substitution identification can be the difference between a seamless continuum of care or disruption for our caregivers. The latter of which could undoubtedly pull our caregivers from the bedside.
“To that end, we have deployed a new Inventory Control team,” she goes on. “They
are leveraging technology to automate our substitution ordering process. This effort has resulted in a reduction of backorders by over 50 percent, while increasing our raw fill service level rates by an additional 15 percent, which is critically integral given the vast number of supply disruptions we’ve faced. Further, the team is focused on monitoring replenishment ordering patterns against legacy par levels. This concentrated effort has consequently provided insight into utilization shifts and allowed us to take advantage of material inventory reduction opportunities as they arise.”
While Jennifer admits that supply chain has had an invaluable track record for being a reliable care partner, her current efforts are more focused on advancing the perception of the division. Once considered simply a back-office necessity, it is currently in the process of being rebranded as a strategic lever for the wider business.
Sentara Healthcare scw-mag.com 81
“We’re purposefully and continuously focused on redesigning decision-making from the clinician’s point of view,” she says. “Supply chain is arming our physicians with viable options based on accurate analytics, so that they can dictate both the appropriateness of devices for care and the pathway by which we’re meeting our financial reduction goals for the organization. In the end, the decisions made by clinicians for clinicians will inevitably increase widespread adoption while reducing conversion cycles and request-to-fulfilment timelines.”
A resounding success
Indeed, in any organization, the supply chain needs to become a catalyst for change, particularly in Sentara’s case when there is a definitive link with strong management, improved clinical outcomes and organizational growth. Another way Sentara is fortifying its supply chain processes is through Workday – a new Enterprise Resource Planning (ERP) system. “Workday has proved to be a foundational advancement for supply chain,” Jennifer reveals. “Our legacy environment was highly complex and riddled with numerous interdependencies amongst multiple systems.
“Complicating matters further, our ecosystem was heavily reliant on third parties, and this – coupled with archaic homegrown systems and elaborate customization –made functional upgrade advancements increasingly problematic. The Workday initiative afforded us the opportunity to pressure test legacy processes, allowing us to not only improve the end-user experience for procure-to-pay, but also consolidate activity, streamline work efforts, and increase visibility for our supply chain team.”
In total, Sentara integrated 165 systems, converted over 3 million records, reduced its item master by 75 percent, increased inventory turns while reducing inventory levels, and retired numerous applications.
Overall, then, a resounding success. To maintain this upward trajectory, Jennifer is also a strong proponent of risk management within the supply chain network.
She explains: “We have an enterprise approach to assessing and actively reducing Vendor Risk Management (VRM). Our VRM framework and governance model intersects best practice processes with technology, allowing us to optimize our vendor partnerships and extract value beyond just the transaction level.
“This past year, our VRM Oversight Committee has purposefully reconsidered our vendor related policies, risk assessment procedures, and monitoring performance criteria,” Jennifer reflects. “We have, in turn, invested in a new Contract Lifecycle Management (CLM) solution that will provide enhanced visibility,
by The Power of Food™
Morrison Healthcare has all your hospital or healthcare system needs to create a better foodservice experience for everyone. Proud partner
Sentara Healthcare scw-mag.com 83
risk prevention, and proactive management across our 40,000-plus provider and health plan contractual commitments. Simply put, we envision a future state where our CLM and ERP platforms share data bidirectionally, interconnecting commitments between transactions and transcending our VRM platform even further.”
Jennifer continues, “Another part of our improvement agenda is through our diversity drive. We have since established an organizational commitment to develop, invest, and grow a progressive diversity, equity, and inclusion program. To that end, our supply chain team has made strides to embed diversity as an intentional component of our everyday business practices and corporate goals. We’re approaching this effort from three perspectives by supporting diverse workforce initiatives, investing in local businesses, and diversifying our supplier base.
“Soon after we launched our efforts, we were named Regional Corporation of
the Year for 2021 by the Carolinas-Virginia Minority Suppliers Development Council. Last year we exceeded our targets by growing our diverse spend base by an additional 29 percent. Most importantly, we are creating an accessible environment for new business partners that grows jobs and prosperity in the communities we serve.” ■
Sentara Healthcare 84
Get to know supplyFORCE – a royally efficient management provider from King of Prussia, PA
Webber Supply Distributors, BDI, Arbill, Arkansas Mill Supply Co., Martin, Black Industrial, Shamrock Supply Co., and Dillon. These are just a handful of companies that work with and trust supplyFORCE, a leading management services company renowned for delivering a range of multi-category Maintenance, Repair, and Operations (MRO) supply chain and total procurement solutions.
Among its extensive partners list are a plethora of Fortune 1000 companies, and
supplyFORCE’s network of members continues to grow. With more than 200 distributors, themselves operating out of more than 2500 branch locations, supplyFORCE has a proven track record of meeting irritating issues and persistent problems with state-of-the-art solutions that utilize data-driven insights.
Based in King of Prussia, Pennsylvania, supplyFORCE supports each customer plant location with local inventory and best-in-class services at the lowest total cost. It connects clients with national programs – which are integrated into
supplyFORCE’s ecosystem of people, processes, and technologies – to provide support and cost-effective services under one comprehensive corporate agreement.
The list of industries and markets in which the supply chain giant is active includes food and beverage, pulp and paper, chemical, automotive and tire, aerospace and defense, government, utilities, plastic and rubber products, print and publishing, and various manufacturing niches. As is clear, the range is astounding – and that is just to name a few.
Its service offering is just as impressive:
centralized procurement, custom insights and analytics, documented cost savings, ecommerce, national account contract management, as well as price and data management. All of these are carried out with dedication, professionalism, and industry expertise.
It is what supplyFORCE does best – maximizing savings, offering insight, optimizing processes, maintaining local relationships, reducing costs, improving compliance, and consolidating contracts. In collaboration with its member
supplyFORCE scw-mag.com 87
distributor network and manufacturing partners, the firm saved customers over $25 million in the past year alone.
One example is found in supplyFORCE’s dynamic approach to a costly problem. One of its customers was suffering with an air leak at an integral facility, which was causing stress on air compressors. The result was hugely inflated energy costs. Never an ideal scenario – and never more so than now.
However, fortunately, a key supplyFORCE member was able to identify the leak and eliminate it. Customer savings included increased efficiency, reduced energy costs, and revenue savings with downtime avoided. That simple solution alone was worth around $43,000 – with the potential for ongoing savings – for the customer.
All with the client in mind. All without compromise. supplyFORCE understands that plants have their own unique requirements, and it adapts its service solutions, accordingly, delivering results based on local inventories, while also tailoring operations to each individual client.
With its network of partners, supplyFORCE is – one step at a time – transforming supply chains for the better. As an extension of the firm, each partner proudly shares supplyFORCE’s founding passion and commitment to innovate and transform the MRO experience.
Indeed, its network of strategic partners is equipped with expert people, products, and solutions to support any business’ wants and needs. The company, simply put, offers a shortcut to help clients evolve and grow by inviting them into a wider network of strategically-minded entities.
As mentioned previously, when working with supplyFORCE, you are entering a network – and it is vast: over 200 distributors and over ten times as many branch locations. These distributors are also members of AD and/or are Rockwell Automation.
For those unfamiliar, the former is the largest buying and marketing group in North America, known for its high quality and independent distributors of construction
and industrial supplies; on the other hand, the latter is the world’s largest company dedicated to industrial automation and information. Furthermore, supplyFORCE is the only national account solution to be preapproved by Rockwell Automation. It just goes to show the market prowess of the company.
Internally, you can expect to work with some of the most talented individuals in supply chain logistics and optimization in North America. supplyFORCE seeks to embody a spirit of teamwork through collaboration and innovation, creative problem solving, and the self-reflective celebration of each individual and their own personal successes.
This all feeds into the main equation: Total Cost of Ownership (TCO), which supplyFORCE aims to reduce for its clients. The company
optimization, and manufacturer alignment. At the same time, its member distributor network can reduce TCO by offering local inventory, bestin-class service, and training and education.
In doing so, the company aims to grow alongside its commercial ethos of continuous improvement. It is a decidedly simple but truly bold trajectory, and we look forward to witnessing the evolution of the company, which is set to accelerate with supplyFORCE’s new creative and digital capabilities.
While the details remain undisclosed, at Supply Chain World we eagerly anticipate the results that innovative technologies can have upon quality control, total output, and overall efficiency. As the company’s name suggests, in the logistics and supply chain game, it is proving to be a force for good.■
25 L O C AT IO NS S E R V I N G 7 STATES 115 $200M IN-STOCK INVENTORY Everything you need to succeed. vanmeterinc com 1- 800-247-1410 SUPPLYFORCE OWNER MEMBER DISTRIBUTOR MORE THAN A MILLION SQUARE FEET OF WAREHOUSE SPACE DEDICATED NATIONAL ACCOUNTS TEAM PRODUCT SPECIALISTS MORE THAN PARTS. WE’RE YOUR PARTNER. www.supplyFORCE.com supplyFORCE scw-mag.com 89
Anyone can sell you parts. We want to be your partner. For us, this means understanding your business challenges and providing you the best overall value to position you for success.
stop us Troy and
How Troy overcomes challenges to support independent businesses and bring people together
In 1986, a collective of independent businesses joined together as a buying group to bolster a position from which they could negotiate better terms from their supply chain. Over the last four decades, the company, Troy UK Ltd (Troy), has expanded from its base in core-engineering tools to a wider range of maintenance, repair and operations products, cutting, power and hand tools, PPE, hygiene and janitorial equipment, and fasteners. All of the above are provided by some of the biggest brands in the industry, such as Stanley, Makita, DeWalt and Bosch. Besides its extensive range of products, the company also offers vendor managed inventory solutions.
Troy UK scw-mag.com 91
Troy champions proactivity over reactivity, in terms of evolving market trends. This approach is facilitated by its shareholder-owned status, which allows for swifter decision-making and greater agility as a business model. In order to provide the best possible service, the company treats its members as individuals, with individual’s needs. By forming partnerships with them, as it does with suppliers, it succeeds in forming long-term relationships built on trust. This methodology has brought it over 400 independent members who are able to access over 400 suppliers as part of the Troy supply chain.
Since the company last sat down with Supply Chain World, a year ago, it has continued to evolve, regardless of the current market climate. Keira Park, Head of Marketing, details this further: “Over the last 12 months, we have continued to invest in the ways we can offer support to our network, especially given the turbulent time that everyone is working through. We have pursued further development of our market-leading platforms to complement our team of specialists, employed to cater to our members’ needs across a broad range of topics. Additionally, in collaboration with industry leaders such as Microsoft, Insight Works and Open Door Technologies, our team has designed, built and implemented a successful Enterprise Resource Planning system. The enhanced functionality of which, has been created with our members in mind.”
As well as becoming the main sponsors of the Exeter Chiefs, this year Troy has made four acquisitions, with Applegate being the most recent. Thus far, the move has proven to be a huge asset; by working in partnership, the two businesses have developed the industry’s first carbon emissions reporting tool. This will enable members to provide
an estimate on the combined emissions for all products sold through the group to end users. There is a new dedicated businessto-business wholesale portal, in addition to the recently launched myTroy platform – which allows suppliers and members far more than just communication. It stands as the single location where the company’s network will be able to access
Despite our enormous growth, it has always been important to our CEO, Paul Kilbride, to keep the family-feel at the top of the company’s agenda
scw-mag.com 93 Troy UK
technologies such as dashboards and data insights driven by machine learning.
Troy Means Business
Troy supports its members in competing against the larger national firms. The company works as an extended team to the entire network, amplifying suppliers’ brands among its members, and maintaining the strength of the supply chain. In turn, the members provide a passionate, personalized service, teeming with product knowledge, to end users.
This year alone, Troy has welcomed 35 new suppliers to the group, providing evergrowing opportunities for members to access diversification of products, services and opportunities to enter new markets. Due to the restrictions regarding social distancing throughout the last couple of years, this year also marked the first face-to-face Troy Means Business (TMB) trade show since before the pandemic.
In light of this, Richard Pymm, Group Sales Director, says: “The foundation of our business has always been connecting people with people. That’s why it was so great to be able to host our TMB trade show at Silverstone again, followed by our industry-acclaimed evening gala. It really is a fantastic event, with suppliers and members alike often saying it’s the highlight of the year. Sadly, we haven’t been able to host for the past two years, but we were certainly back with a bang! We saw record numbers in attendance generating unprecedented amounts of business, around £8 million in total being done on the day, and the networking on the evening going well
into the next morning. It was a fantastic, circusthemed extravaganza! The date for next year’s, in March, is already in everyone’s calendars.” Coming out of such difficult times, into further supply chain issues and now the problems caused by inflation, Troy has worked hard to maintain the working environment for its staff, members and suppliers. By working closely as a team and introducing digital channels for communication, both in conjunction with the family-oriented sensibilities of the network, the overall supply chain has come out stronger. As Keira details further: “We’re a family business supporting family businesses. Despite our enormous growth,
THE EXPERTS IN PROFESSIONAL CLEANING
The coming months and years are going to be very exciting for the Troy network
scw-mag.com 95 Troy UK
From an extensive range of robust, reliable and easy-to-use equipment, to specialist service and support with exible purchase options, Kärcher is here to keep you cleaning.
it has always been important to our CEO, Paul Kilbride, to keep the family-feel at the top of the company’s agenda. It’s certainly a family-affair for him, with his wife, Lexi, and two sons, Alex and Oz, also working at Troy.
“The coming months and years are going to be very exciting for the Troy network. After significant investments this year, we are excited for the upcoming additions to the range of tools and services we offer our members and suppliers. We are always looking to the future and will continue in developing the ways in which
we can offer support to independent businesses. There’s never been a more important time to support independents. Small and medium enterprises provide 60 percent of all private sector employment and put more money, pound for pound, back into local economies. The societal benefits of retaining independent businesses across the country are huge, that’s why we do, what we do, here at Troy,” she concludes. ■
After significant investments this year, we are excited for the upcoming additions to the range of tools and services we offer our members and suppliers
“ “ scw-mag.com 97 Troy UK
Make tomorrow better
One organization, four business groups, four values; Tenneco’s secrets to success, under the hood
In 1999, Tenneco emerged from a conglomerate that had previously consisted of six businesses. Through a variety of sales and spin-offs, its peers in shipbuilding, packaging, farm and construction equipment, gas transmission and chemicals had all started to separate from the early 1980s. The entities that remained under the then-named Tenneco Automotive, included an Original Equipment Manufacturer (OEM) and Monroe and Walker, a wellknown and widely loved aftermarket brand. Both organizations had been established for over 100 years, and provided the significant experience and expertise that makes Tenneco the company it is today.
Tenneco scw-mag.com 99
Moving forward into the early noughties, Tenneco dropped the ‘Automotive’ in 2005 to reflect the broader spectrum of markets it had come to serve. Throughout this decade, the company sought to expand its global footprint, by becoming one of the earliest automotive suppliers to establish operations in China. This both supported the growth of its light vehicle production, as well as the business’ involvement in developing cleaner air solutions. Through enhancing its engineering and manufacturing capabilities, Tenneco was soon considered the leader in helping its customers meet the varying emissionscontrol regulations across the globe.
One of its most notable achievements, to the wider markets, was the commercialization of diesel particle filters in Europe in 2000, however Tenneco also leads the industry in a number of aftertreatment products, including selective catalytic reduction, gasoline particulate filters, and hot and cold-end exhaust systems. Its Monroe
has acquired two businesses within the last four years, in a tactic to further the enormous growth it’s experienced since the millennium
Intelligent Suspension portfolio features both adaptive and semi-active electronic suspension systems, and its noise, vibration and harshness product range caters to both the light and commercial vehicle markets.
Tenneco has acquired two businesses within the last four years, in a tactic to further the enormous growth it’s experienced since the millennium. This has primarily been resultant of the expansions to its products range and global reach. In 2018, it acquired Federal-Mogul, another automotive supplier with over 100 years of experience, with which came a further 25 aftermarket brands and another OEM, doubling the size of the business overall. In 2018, it was the turn of Öhlins Racing, a Swedish company famed for its advanced suspension systems
and affiliations to the racing industry. Tenneco had previously collaborated with Öhlins on a number of projects involving electronic valve technologies and the first CES shock absorbers.
Since a restructuring initiative in 2020, the Tenneco of today is a global automotive tier one supplier comprised of four equally diverse, whilst complementary, business groups: performance solutions, motor parts, clean air and powertrain. Whilst encompassing 30 of the industry’s most respected automotive brands, the business collectively employs 71,000 people across six continents, in its 196 manufacturing sites, 38 engineering and technical facilities and 29 distribution centers. In
scw-mag.com 101 Tenneco
providing the utmost in driving advancements in global mobility, Tenneco currently serves the likes of General Motors, Cat, Ford, BMW, Volkswagen, Volvo, Toyota and many more.
Earlier this year, international adventure driver, Rainer Zietlow, set out armed with a Volkswagen ID.4 GTX crossover that had been equipped with Tenneco’s Monroe Intelligent Suspension CVSAe System (MISS), in an attempt to break a world record. The challenge in question was to achieve the highest altitude reached in an allelectric passenger vehicle, for which Zietlow’s team had to scour through a number of South American mountain ranges, in order to find a trail that would beat the previous record of 18,933 feet. They settled on the stratovolcano, Cerro Uturuncu, in the Sur Lípez province of Bolivia.
By the end of this year, the company is aiming to have 100 percent of its strategic partners reaffirm their commitment to the Tenneco Code of Conduct 102
“ “ “ “
The path, or lack of, follows an unpaved mine road up to an elevation of 19,081 feet, which Zietlow successfully climbed and thus set a new world record. The vehicle’s CVSAe semi-active suspension continuously adapts to changing road conditions, using data captured by multiple onboard ride control sensors. The MISS equipped ID.4 model was also named 2021 World Car of the Year. Henrik Johansson, Vice President and General Manager of Advanced Suspension Technologies at Tenneco, was quoted as saying: “CVSAe technology elevates the driving experience, whether in a city environment or on more adventurous terrain – and it doesn’t get more adventurous than climbing a volcano.”
Tenneco’s drive for sustainability is a key part of the company’s core principles, with one of its main values being to ‘Make Tomorrow Better’. Under the banner of Environmental, Social and Governance initiatives, the business
focuses on the efficient management of its energy and water consumption, emissions, and operational waste, as ways to improve its carbon footprint in line with its targets. These are to reduce its scope 1 and 2 greenhouse gas emissions by 30 percent, decrease its operational energy demand by ten percent and to source 15 percent more renewable energy by 2030, all whilst cutting its waste to landfill by 20 percent in the meantime.
In recent years, Tenneco has worked closely with CHEP – a circular business model based on the concepts of sharing and reusing. As a member of the CHEP pooling system, a company is able to obtain its pallets, IBCs and industrial containers on a rental basis, a simple principle that ensures greater sustainability for all parties involved. Since August 2015, Tenneco has been using CHEP’s Foldable Large Containers (FLCs), designed for the transportation of
Conduent is proud to partner with Tenneco to help increase savings, reduce costs and drive visibility across all categories of spend.
Conduent salutes Tenneco for making their working capital work harder.
Learn more at conduent.com scw-mag.com 103 Tenneco
larger products such as catalysts, radio grilles, transmission and engine parts, and batteries. The cube utilization and pack density of the FLCs vastly increases the optimization of trucks, sea-freight containers and warehouses.
The business’ social goals are driving greater diversity amongst its employees; with targets of increasing the number of females and US minority group members in managerial roles and above, by a third, by 2030, and to achieve 100 percent certification with IATF 16949, ISO 9001, or similar, by 2025. In terms of governance, Tenneco’s code of ethics is represented by its commitment to accountability, integrity and compliance in its operations. By the end of this year, the company is aiming to have 100 percent of its strategic partners reaffirm their commitment to the Tenneco Code of Conduct, as well as to have received completed self-assessment questionnaires from all of its high-risk or high-impact suppliers.
The company’s efforts are regularly acknowledged by its industry peers. This year alone, Nissan named Tenneco as a sustainability partner, on account of its demonstration of sustainable and socially responsible business practices, and Ethisphere listed it as one of the world’s most ethical companies too. On top of these, Newsweek also included the business in their Top 500 most responsible companies in the United States.
Besides ‘Make Tomorrow Better’, Tenneco’s values include ‘Integrity Always’, under which it believes in doing the right thing the right way, speaking up and owning whatever you’ve accomplished. ‘One Team’, instills the ideas of taking care of one another, embracing the differences of others and succeeding as one, and finally, ‘Will to Win’ encompasses the drive to always seek flawless execution, create customer fans and ultimately, make a difference. Tenneco has grown spectacularly thusfar and possesses the means to keep on going. It’s with bated breath that we wait to see its next big move. ■
Make stronger carrier connections and get more shipment visibility with freight management solutions. SIMPLIFY YOUR HEALTHCARE SUPPLY CHAIN AND KEEP FOCUS ON YOUR PATIENTS Personalized industry insight, end-to-end logistics solutions, dedicated support, and white-glove service, TRIOSE works as an extension of your supply chain team so that you can keep your focus on delivering the highest quality patient care. Browse our complete suite of healthcare logistics solutions Visit TRIOSE.com/SCW to learn more. Grow your business and build relationships with pharmacy management and compliant delivery solutions.