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Exclusive: Edgewell’s procurement transformation

MARCH 20 19

www.supplychaindigital.com

Supply chain sustainability

Investing in a sustainable future

Technology transformation of procurement

EXPANSION INTO ASIA

ZETES AND THE CONNECTED SUPPLY CHAIN Exclusive interview with Sébastien Sliski, General Manager Supply Chain Solutions, Zetes, on how retail businesses embrace digitalisation

TOP 10

Global supply chains


FOREWORD

H

ello and welcome to the March

“We have big hopes for the Southeast

edition of Supply Chain Digital.

Asian market.”

Our cover star this month is

Elsewhere, Angad Banga, Chief

Sébastien Sliski, General Manager

Executive Officer at The Caravel

Supply Chain Solutions, Zetes. He

Group, discusses how digitisation

explores how Zetes enables retail

has disrupted the shipping industry

businesses to embrace the digitally

and how the company’s increased

connected supply chain.

technology means increased opportunity.

“People want to understand where their

In this issue we also sent

products come from and how they were manufactured. It’s

Sophie Chapman to London Sébastien Sliski, GM at Zetes

happening on both sides of the table and we are now realising the true benefits of

to speak with Sylvie Noel, Chief Procurement Officer at Covea, as she reaffirms the impor-tance of humans in the ever-evolving digital world

what an efficient and effective supply

and our top 10 looks at the leading

chain does for a business,” he says.

supply chains, as ranked by Gartner.

We also speak with KTM Group and

Be sure to also check out our

how it looks to capture the Asian

features with Emmerson Packaging,

market. “We started production for

Edgewell, JDA Software and

both local and export markets just

AB InBev as well.

over a year ago,” explains Luca Martin, Managing Director at KTM ASIA Motorcycle Manufacturing Inc.

Enjoy the issue! Dale Benton dale.benton@bizclikmedia.com w w w. s u p p l y c h a i n d i g i t a l . c o m

03


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CONTENTS

10 Emmerson Packaging:

Delivering sustainability through a supply chain transformation

26

COVÉA: INTRODUCING PROCUREMENT TECHNOLOGY TO PEOPLE

36

Maistro: connecting the supplier or suppliers


46 ZETES AND THE CONNECTED SUPPLY CHAIN

60 70 84

TOP 10 GLOBAL SUPPLY CHAINS Events & Associations


CONTENTS

90

The Caravel Group

108

KTM Asia


128 AB InBev

146 Edgewell

164 Hyster


10

Delivering sustainability through a supply chain transformation WRIT TEN BY

DA LE BENTON PRODUCED BY

ARRON R A MPLING

MARCH 2019


CANADA

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E M M E R S O N PA C K A G I N G

SERGE CORRIVEAU, VICE PRESIDENT OF SUPPLY CHAIN AT EMMERSON PACKAGING, EXPLORES HOW THE COMPANY’S SUPPLY CHAIN TRANSFORMATION DELIVERS ON ITS SUSTAINABILITY GOALS

A

cross the modern business landscape, the perception of procurement and supply chain management is undergoing

a dramatic transformation. Traditionally viewed as a business support function and merely a cost 12

center, businesses all over the world are currently investing into their supply chains as a recognition that it is now viewed as a true business enabler. For Emmerson Packaging, one of the leading flexible packaging solutions providers in North America, the supply chain has been built into the company’s core operations since it was founded back in 1956. For Serge Corriveau, Vice President of Supply Chain, the supply chain management function of Emmerson Packaging is the ‘WD40’ of the business. “We’re like a machine and as long as we’re well oiled, everything works and the business can continue to be successful,” he says. “My motto is be brilliant, be brief and be gone. If we’re not moving, innovating and changing in a particular part of the business then we look at that as a missed opportunity.” Corriveau joined the business in 2013, initially MARCH 2019


CANADA

13

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E M M E R S O N PA C K A G I N G

“W E’RE LIKE A MACHINE AND AS LONG AS WE’RE WELL OILED, EVERYTHING WORKS AND THE BUSINESS CAN CONTINUE TO BE SUCCESSFUL” — Serge Corriveau, Vice President of Supply Chain, Emmerson Packaging

working as a business analyst before being given the role of change management lead for a new SAP system implementation. The implementation of SAP provided the opportunity for Emmerson Packaging to transform its supply chain vertical. “Once the model was presented, our CEO asked me if I would like to lead the charge in implementing the changes,” he says. “I accepted the challenge and the rest is history.” The new supply chain vertical consists of five departments within Emmerson Packaging including warehousing, logis-

14

tics, purchasing, production planning and customer service. The customer service department was added to the supply chain vertical in early 2018. “Customer satisfaction is dependent on the supply chain, so this recent addition made perfect sense,” Corriveau says. “Customer service is a fundamental part of any successful business and its very important in the supply chain because it’s the source of customer information, it provides the customer with real-time information on product availability and distribution operations,” he says. “These departments are particularly important in ensuring MARCH 2019


CANADA

CLICK TO WATCH : ‘EMMERSON PACKAGING ON MARITIME MADE’ 15 a seamless supply chain and by oversee-

order to reach a state of control,” he says.

ing all five departments it ensures we

“Once we reache that level of control,

can support the overall strategy of the

you can step back and trust the team to

business.” Corriveau had previously

deliver. If something was to go sideways

worked with automotive giants Hyundai

then we’d react properly because we

and Kia and was familiar with working

are in control and being proactive. Clear

in a large-scale company with “tons of

communication internally and externally

resources and a very strict structure”.

is so important”.

But as Emmerson Packaging set about

With data monitoring and KPIs

building a supply chain vertical, Corriveau

established, Emmerson Packaging

realized that enhanced inventory plan-

created an element of control over

ning and control was required. “The first

inventory management and estab-

step before anything could be achieved

lished the same level of control over

was to look at data, create and track

logistics and purchasing. “Control

KPIs and make changes along the way in

means making everything resource w w w.suppl yc ha i ndi gi ta l. com


That’s why we’ve joined Project STOP. NOVA Chemicals is a Strategic Partner in Project STOP, a global initiative that brings corporations and governments together to keep plastic from reaching the world’s rivers and oceans through the development of waste collection services and a recycling supply chain. The immediate focus of that effort is the countries of Southeast Asia, where fast-growing economies mean the demand for products packaged in plastic are outpacing

novachemicals.com

governments’ abilities to meet the challenge of waste management. At NOVA Chemicals we’re passionate about sustainability. That’s why, along with investing in Project STOP, we’re engaged in R&D work focused on developing packaging solutions that support a circular economy. We’re proud to play a key role in Project STOP and its crucial efforts to build a better future.

Copyright NOVA Chemicals Corp. 2019, all rights reserved.


Imagine a future without marine plastic pollution. It starts with making more plastics recyclable.

T

here is growing awareness and concern about marine plastic pollution—and there’s an increasing determination to put an end to it. One part of the solution is Project STOP, a joint initiative started in 2017 by SYSTEMIQ and Borealis to help stop the flow of plastics and other materials into the world’s rivers and oceans. Another part of the solution is to further develop infrastructure to collect and recycle plastic packaging, especially in the world’s fast-developing nations. Of course, that also requires making plastic goods, particularly plastic packaging, more recyclable to

support a circular economy that puts more recycled plastics into new products—and less into places where they don’t belong. Initiatives like Project STOP will test and develop new solutions with the potential to seriously slow—and eventually eliminate—the flow of plastics into the world’s oceans. Together with work to develop more recycling and recovery technologies and more recyclable products, we can realize the promise of a circular economy. Below are some emerging trends that are yielding promising results.

More applications for recycled plastic material.

The more flexible, the smaller the footprint.

The plastics industry is investing in research and development centered around technology for creating “clean” recycled polyethylene and incorporating it into finished products with performance comparable to 100% virgin plastic.

Replacing traditional materials like cans, glass and cardboard with flexible plastic packaging significantly reduces packaging volume, reducing the carbon footprint during production and shipping.

Simpler is better for the environment.

One-piece closures for easier recyclability.

Many food packages are made with a mix of materials, making them difficult to recycle. Companies are now working with their suppliers to eliminate foil, nylon and other materials and move to single-material, recyclable flexible film structures.

Another important trend is the shift from two-piece, mixed-material closures to one-piece, recyclable closures in beverage and other containers.

The bottom line: Recyclable plastic packaging has value as recyclate, adding an incentive to implement new waste collection and recycling systems that can go a long way toward keeping plastics out of the world’s oceans.

What about food waste? Advances in package integrity— improved barrier, toughness and seal —in polyethylene-based flexible film structures help improve package integrity and extend shelf life. That means less food is spoiled, which reduces landfill waste and even more importantly, helps to address world hunger. It’s a win-win.


E M M E R S O N PA C K A G I N G

18

based,” Corriveau says. “Data is key

to re-examine the perception of what

there as it cannot be disputed. We

the supply chain actually is, as Corriveau

break each department down into

felt there was often a misplaced belief

pieces and work through it one piece

that it was “just warehousing and

at a time and it’s been a successful

logistics”. “Supply chain for Emmerson

strategy for the company”.

Packaging is so much more than that:

The advantages of data analytics

there’s production planning, manufac-

are plain to see, allowing the business

turing, procurement, warehousing and

to make smarter decisions and

the list goes on,” he says. “Production

predictions, but building a supply chain

planning scheduling is the very heart of

vertical in this organization highlighted

our organization. We have worked hard

to Corriveau that the data “just wasn’t

to nail down our data and forecasting

there yet”. This forced the organization

and are incredibly proud of where we

MARCH 2019


CANADA

19

are. With new insight we were able to

its commitment to sustainability as a

make changes across the business,

business and delivers on this not only

for example moving the releases of

through its internal commitment but its

warehouses from customer service

products – specifically recyclable and

to warehousing and logistics – this

biodegradable options. Corriveau was

streamlined the flow with our custom-

proud to go into detail around Emmer-

ers as the information to deliver on this

son Packaging’s SmartPack. Manufac-

promise resides in the supply chain”.

tured through a process that signifi-

Emmerson Packaging’s customer

cantly reduces environmental impact

base continues to evolve. The modern-

without compromising on quality or

day customer demands transparency

lead times, SmartPack proved how

in products and across supply chains.

crucial it is to have control over the entire

Emmerson Packaging prides itself on

supply chain. In order to achieve this w w w.suppl yc ha i ndi gi ta l. com


E M M E R S O N PA C K A G I N G

innovative and truly ground-breaking

We’re not willing to short change

process, Emmerson Packaging sought

the process and we ensure all of our

out a strategic partner, which it found

strategic partners are of the same

in Nova Chemicals. “I cannot stress

belief. Nova Chemicals agree with this

enough the importance of having trusted

sentiment, having worked with us on

partners in everything you want to

this SmartPack™ project and they

achieve through the supply chain,” says

were keen to move fast.” Moving fast

Corriveau. “We’ve been doing business

proves key for Emmerson Packaging

with Nova Chemicals for many years

as Corriveau notes that consumer

and they have been instrumental in our

demands are changing and in order to

success because of their commitment

be ahead of the curve they need to be

to innovation and our partnership.”

proactive. “The new era of customers

“We’ve had discussions with suppliers in the past that wanted to cut corners.

place a greater emphasis on the environmental impact of the products

We’re more than a transportation provider. We’re a business partner WHAT WE DO We create, proactively communicate, and flawlessly execute, innovative solutions that intertwine the needs of our clients and comingle them with our conveyances so that value is realized together.

OUR WHY, HOW & WHAT ARE SIMPLY DEFINED AS: Why: Adding Gray Matter to What Matters. How: Developing Long-Lasting Tiered Relationships. What: Create and Flawlessly Execute Innovative Solutions Flawless Execution is a disciplined cycle of stating our objective; planning the solution; proactive communication internally and externally; followed by continuous improvement through learned results

WHY ONE FOR FREIGHT? Visit our Site

MARCH 2019

Get in Touch

FIND US ON


CANADA

21

they buy, and are going to greater

demand,” says Corriveau. “We approach

lengths than ever before to ensure

everything with the notion that sooner

“they are not part of the problem, but

or later, the customer is going to ask us

part of the solution”.

to elevate our game and go beyond

The demands of the customer extend

SQF certification – so we can’t be

into certifications, with Emmerson

chasing.” Emmerson achieves this

having proudly achieved Safe Quality

through a three-pillar approach: safety,

Foods (SQF) certification, among

quality and productivity. “You can’t be

others. While for many businesses the

productive if you don’t produce quality

customer drives these decisions,

product.” he says. “And you can’t

Emmerson Packaging is proactive and

produce quality products if you don’t

has higher expectations of its supplier

do it in a safe environment.”

network and warehousing. “It’s about trying to stay ahead of the customer

To this end, Emmerson Packaging invests heavily in safety programs w w w.suppl yc ha i ndi gi ta l. com


E M M E R S O N PA C K A G I N G

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MARCH 2019


CANADA

and internal reward systems designed to encourage employees to go above and beyond to be safe, produce quality products and be productive. Corriveau believes being safe is the most important out of the three. “Once you have employees who are working safe, quality products and productivity follow,” he says. “We want our employees to come to work in a safe environment and at the end of the day go home safely to their families. We work hard to instill this quality into our employees so they are safe inside and outside of work.” Corriveau believes the results speak for themselves as the company has been recognized as one of Canada’s Best Managed Companies for nine consecutive years by Deloitte. For him, this recognition echoes Emmerson Packaging’s CEO’s sentiment that “our customers push us to be better” because the company looks to always be ahead of the curve, and therefore needs a workforce that is ready to go above and beyond. Emmerson Packaging has three major markets: frozen food, pet food and towel and tissue otherwise referred to as “overwrap”. Having two plants, one in the town of Amherst, Nova Scotia and one in the small city of Belleville, Ontario means that Emmerson Packaging’s supply chain needs to be best in w w w.suppl yc ha i ndi gi ta l. com

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E M M E R S O N PA C K A G I N G

class. “In some cases, there is a large geographical distance from these customers, so how do we compete? By being better, fluid, and by providing a seamless journey,” says Corriveau. “We work hard with trusted partners such as ONE For Freight, a solutions first transportation company that helps us achieve our goals. We can compete with anyone on lead time and service.” As Emmerson Packaging continues its journey of supply chain transforma24

tion it does so with a key competitive advantage that no other current packaging producer has. Together with

“W E’RE NOT WILLING TO CUT CORNERS AND WE ENSURE ALL OF OUR STRATEGIC PARTNERS ARE OF THE SAME BELIEF” — Serge Corriveau, Vice President of Supply Chain, Emmerson Packaging

trusted partners like Nova Chemicals, the company not only produces its own packaging but proactively works on innovative and new concepts in its own Research & Development department and in-house laboratory. Emmerson Packaging is also proud to be vertically integrated and converts its own products. Ultimately, the success of Emmerson boils down to its commitment to sustainability and its customers. “If our

MARCH 2019


CANADA

1956

Year founded

450+

Approximate number of employees 25

customers are successful, then and

Emmerson Packaging believes they

only then do we get to be successful,”

can deliver a quality product to their

says Corriveau. “From the very first

customers that not only meets the

days of the company we’ve been

demands of the market but is also

extremely proud of how we operate

environmentally responsible”.

and how we continue to strive to reduce our impact on the environment. Moving forward, it’s about looking at what more can we do for our customers, our employees and our communities. By focusing on sustainability, w w w.suppl yc ha i ndi gi ta l. com


CHANGE MANAGEMENT

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COVÉA: INTRODUCING PROCUREMENT TECHNOLOGY TO PEOPLE As Covéa embraces new technologies, the firm’s Chief Procurement Officer, Sylvie Noël, highlights the continued importance of the human factor WRITTEN BY

MARCH 2019

SOPHIE CHAPM AN


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CHANGE MANAGEMENT

I

n an industry that is constantly focusing on the latest innovations and technologies to improve efficiency, Covéa considers its employees to

be the fundamental factor driving its operations.

Founded in 1999, the French insurance firm is based around three brands: Mutuelle d’assurance des artisans de France (MAAF), Mutuelle du Mans Assurance (MMA), and Garantie Mutuelle des Fonctionnaires (GMF). Along with its three main sectors, the company operates subsidiaries across its markets, including the UK, Luxembourg, Italy, and Spain. “We are one of the largest insurance companies in France. We insure around one in ten of the country’s population, and employ more than 28

25,000 people worldwide, with 22,000 based in our domestic market,” states Sylvie Noël, Chief Procurement Officer at Covéa Group. As the company’s CPO, Noël’s position covers more than just finance: “Procurement is no longer just about earning money. I am focusing on procuring better for the company, to give added value to our stakeholders, and to ensure security is to the highest standard and accuracy. I want to give new ideas to our stakeholders.” Targeting both direct and indirect procurement, Noël’s operations are integral to the firm’s everyday processes. For Covéa, direct procurement covers customer claims, where the procurement team works to professionalise and secure relationship with vendors. The firm’s indirect procurement spans across four factors: Hardware and Software, Equipment, Business MARCH 2019


29

“F OR COVÉA, THE INTRODUCTION OF A NEW TECHNOLOGICAL SOLUTION WAS INTEGRAL TO ENSURE T HE FIRM WAS ACHIEVING ITS GOALS” — Sylvie Noël, Chief Procurement Officer, Covéa

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CHANGE MANAGEMENT

Solutions and Consultancy, as well as

issue, Covéa partnered with Ivalua, the

MICE (Meetings, Incentives, Confer-

smart solution provider. The California-

ences and Events).

based software company specialises

Noël notes the importance of

30

in supplying a range of empowering

avoiding the “procurement black hole,”

platforms to procurement operations.

which she defines as employees not

The firm aims for its suites to improve

receiving a thorough understanding of

flexibility, ease of adoption, and time–

her department’s operations. “Staff are

efficiency. “It’s almost impossible to

often concerned they don’t see what is

work without being digitalised. Ivalua

going on with procurement. They have

provides Covéa with a fully digitised

the impression they won’t get a

suite that covers everything from the

timeframe and won’t see the process.”

import of the budget to the PO. All the

As Chief Procurement Officer, Noël is

information between stakeholders,

therefore focused on creating visibility

legal, vendors is entirely sustained

and transparency within the insurer’s

by the tool,” Noël explains.

processes. In order to manage this

“WE ARE ONE OF THE LARGEST INSURANCE COMPANIES IN FRANCE. WE INSURE AROUND ONE IN 10 OF THE COUNTRY’S POPULATION” — Sylvie Noël, Chief Procurement Officer, Covéa

MARCH 2019

For Covéa, the introduction of a new


CLICK TO WATCH : SYLVIE NÖEL, CPO FOR COVEA, ON PROCUREMENT AND KPI’S 31

technological solution was integral to

for internal and external processes. Now

ensure the firm was achieving its goals.

any person working with my team can

Ivalua’s platform has been incorporat-

precisely and at any moment see what

ed across all aspects of the team’s

stage of the procurement process they

operations, as well as aiding external

are in,” she adds.

business. “The solution helps sustain

With the introduction this new

what we have decided internally. We use

platform, Noël has prioritised getting

it with both stakeholders and vendors.

employees on board: “The most

There is not a single tender that leaves

important thing is the change man-

the company without having gone

agement. For any project, including

through the solution, and it can also

procurement, the most important

be used with contracts and claims.

thing is to figure out is what added

Ivalua’s solution provides a holistic

value can be provide for the people.

view of our operations, which is great

Usually, when you are introducing w w w.suppl yc ha i ndi gi ta l. com


CHANGE MANAGEMENT

€14.5bn Approximate revenue

32

1999

Year founded

26,000+

Approximate number of employees

MARCH 2019


changes there is some form of opposition. So, what we have to do is work with employees and show them what they can get out of the new introductions, what kind of added value they can receive. If you do not prove it, you fail. You have to concurrently provide the results in order to demonstrate the benefits, she says. Despite how beneficial Ivalua’s platform has been to her operations, Noël’s feels it is important to emphasise that a solution can only successfully help with the correct structure. The CPO worked closely with her team to establish an appropriate strategy that would then be heightened with the introduction of a solution. “The tool is not a goal. The tool is only here to sustain the process we have previously decided. If you don’t have the right process, a tool will not help. Prior to introducing a tool, you have to work internally with staff, who can help to find the appropriate process. Following this, when you have the right process, you need to find the right tool to sustain the process,” Noël remarks. The two companies’ relationship will continue to grow, following their initial partnership in 2011. Covéa plans to challenge Ivalua; the insurer will request new additions and changes to the suite that it discovers overtime, helping the solution to evolve. Ivalua has contributed to the French firm’s digital transw w w.suppl yc ha i ndi gi ta l. com

33


CHANGE MANAGEMENT

formation journey, and Covéa will aid the development of the provider’s products and will introduce new ideas to the market. “I want still to be able to challenge them, to be able to give new ideas for their road map and to be able to push new ideas,” reveals Noël. The solution was introduced to the company to ease operations and avoid the procurement “black hole.” The company outside of Noël’s team have been provided with a clearer understanding of its procurement operations, and the team itself has been 34

trained with how to adopt the new technology. Nonetheless, Noël is keen to note that her ultimate priority is the people she works with, which is why Ivalua’s suite was introduced in the first place. She feels that as important as it is for procurement to evolve and digitise, the ultimate key to success in

“NEW TECHNOLOGY IS ALSO IMPORTANT, BUT IT COULD NOT BE INTRODUCED WITHOUT THE TEAM. TECHNOLOGY IS NOTHING WITHOUT THE PEOPLE THAT UTILISE IT” — Sylvie Noël, Chief Procurement Officer, Covéa

MARCH 2019


35

the industry is its people. “For me people are the key to

one evolves at different speeds, because anyone is different, and we

everything. The human part of my job

need to know individually who we are

is very important. As we have said

working with and what they can do,�

before, new technology is also

NoĂŤl concludes.

important, but it could not be introduced without the team. Technology is nothing without the people that utilise it. The key is to involve and listen to employees, and provide them with the best opportunities that we can offer. We also have to be aware that everyw w w.suppl yc ha i ndi gi ta l. com


D I G I TA L S U P P LY N E T W O R K

36

Maistro: connecting supplier to customers through the digital marketplace Laurence Cook, CEO of Maistro PLC, looks at how digital B2B marketplaces are the future of the procurement landscape WRITTEN BY

MARCH 2019

DA LE BENTON


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D I G I TA L S U P P LY N E T W O R K

I

n a recent report, Gartner identified business to business (B2B) marketplaces as a future driver of change for procurement and procurement

professionals all over the world. Through SAP’s

Ariba Network and the Amazon Business Portal, which connects millions of global B2B buyers and suppliers, that future is already coming to fruition. Both Amazon and SAP are but two of the biggest examples as to how the marketplace is transforming procurement, but there is one marketplace provider that looks to looks to go a little further than simply connecting a buyer to a supplier. “There are quite a few organisations that will offer a matching service, matching customer and supplier and then stepping 38

out of the loop,” says Laurence Cook, CEO at Maistro. “What we at Maistro do is we connect customer to supplier and then we offer managed services around that relationship. We believe that we are using technology and humans together to try and optimise our solution that we offer to our customers.” Maistro is an online B2B Marketplace and Artificial Intelligence (AI) powered delivery platform designed to “accelerate the corporate buying process and optimise spend.” Founded in 2007, Maistro works with organisations to extend supplier reach, eliminate wasteful and outdated purchasing practises and streamline the entire procurement delivery process. As Cook describes it, Maistro sits in the middle between customer and supplier. With a marketplace of over 30,000 pre-vetted suppliers, Maistro’s goal is to help companies connect with just the MARCH 2019


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$4.72mn Approximate revenue

2007

Year founded

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D I G I TA L S U P P LY N E T W O R K

one. “We take a brief from the customer, their target budget, objectives and their deliverables and put them into our Maistro platform,” he says. “Through machine learning, we search our database to identify the best supplier.” The company provides the customer with three leading suppliers, key information regarding those suppliers and how they can deliver on the customer brief and the power is then in the hands of the customer. Once the customer has selected the supplier, Maistro will connect the two. “That’s the bit where 40

we sit in the middle. We make the procurement process digital while keeping the service personal,” says Cook. “Once everything is in place, then the project kicks off. What we then do, through our managed services, is run project governance throughout the entire project to ensure successful execution.” The Maistro platform is powered by AI and machine learning, utilising key data and business intelligence to identify and vet the leading suppliers around the world. AI is but one of the key technologies dominating the current digital conversation and Cook admits that this has bred a culture of believing that MARCH 2019

“That’s the bit where we sit in the middle. We make the procurement process digital while keeping the service personal” — Laurence Cook, CEO, Maistro


CLICK TO WATCH : MAISTRO’S AI-POWERED PLATFORM AND DYNAMIC B2B MARKETPLACE 41 AI is simply the answer to solving all

element of Maistro’s offering comes into

business and procurement challenges.

play. Cook believes that while technology

Cook makes an analogy to ice cream.

will allow companies to make great

“AI can look at a specific problem that

strides in identifying the very best, there

says, if it’s hot then we should sell more

will always remain a need for human

ice cream. If it gets hotter, sell more,” he

interaction. This, he feels, is what

says. “But if the temperature continues

separates Maistro from other compa-

to rise to unbearable levels, no one will

nies offering B2B marketplaces. Maistro

go outside and buy ice cream because

works to understand the customer’s

it’s too hot. The AI will still say that

needs through the way the customer

increased heat equals increased sales.”

thinks and marries its own innovative

“AI needs to constantly adapt and

thinking to identify an optimal solution

the only way we can make it adapt is

for the customer’s demands. “We then

through human intervention.”

feed that back into the Maistro platform

This is where the managed service

and then through AI, the platform learns w w w.suppl yc ha i ndi gi ta l. com


D I G I TA L S U P P LY N E T W O R K

“How quickly can we find them a supplier to match that changing focus? Maistro looks for innovative suppliers that can offer something different to any customer in any industry”

42

— Laurence Cook CEO, Maistro

MARCH 2019


from that,” he says. “What we’re trying

something different to any customer in

to do is to get the platform to learn and

any industry.”

to come up with the best solution that

Another example of this saw a

it thinks is right, coupled with a human

customer request that Maistro connect

being in that loop, advising the

them with suppliers connected to sonic

customer and thinking logically about

branding, the practice of using auditory

how that could possibly work. Using

elements to brand a product or service.

those two things together to give the

This was an area that even Cook himself

customer the best solution.”

admits to having a limited understand-

Maistro works with customers in

ing of and this required Maistro to

a wide variety of industry sectors and

approach this particular request a little

this provides the company with a broad

differently. “What we do a lot of the time

picture as to what different industry

is help bring the suppliers to customers

players demand and what the key

that can educate them and help them

drivers behind that demand are. Cook

make their companies more effective

points to a tobacco company, one of

and, in the process, we learn as well,”

Maistro’s biggest customers, that

he says. “There’s no substitute for

has a footprint spanning 12 countries.

making sure that we are keeping ahead

In Europe, the company’s focus is

of the game by doing research our-

centred around innovation while in Asia

selves. We don’t simply react, we are

its cost. Through this one customer

proactive.”

Maistro has a view of the intricacies

This proactive approach has seen

of multiple markets. “They are looking

Maistro recognised on a global scale,

to move from tobacco to reduced risk

not only by current and future custom-

products and that’s a massive change

ers but also by the Chartered Institute

for their business,” he says. “What they

of Procurement & Supply (CIPS). In

need then is speed and innovation

late 2018, CIPS announced that

across their supplier base. How quickly

Maistro had become the latest CIPS

can we find them a supplier to match

Knowledge Partner. As a knowledge

that changing focus? Maistro looks for

partner, Maistro will work with CIPS

innovative suppliers that can offer

and its global members to address the

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D I G I TA L S U P P LY N E T W O R K

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“I am incredibly passionate about helping the procurement industry move forward and I want Maistro to be seen as the go-to supplier in terms of speed, innovation and cost” — Laurence Cook, CEO, Maistro

MARCH 2019


evolving digital procurement landscape. Cook feels this is key in stimulating the procurement community. “We want to get the procurement community moving faster,” he says. “There are some that are slow movers and others that are first movers and even those that stand still. We need to educate the market and collectively address procurement challenges by understanding the solutions that exist right now.” “I am incredibly passionate about helping the procurement industry move forward and I want Maistro to be able to be seen as the go-to supplier in terms of speed, innovation and cost. Those three things are core to any procurement function and we can be a catalyst for optimisation.”

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D I G I TA L I S AT I O N

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ZETES AND THE CONNECTED SUPPLY CHAIN Sébastien Sliski, General Manager Supply Chain Solutions explores how Zetes enables retail businesses to embrace the digitally connected supply chain WRITTEN BY

MARCH 2019

DA LE BENTON


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D I G I TA L I S AT I O N

T

echnology continues to be one of the biggest conversation starters in the modern supply chain and procurement

space. Companies all over the world are investing more than ever before into digitising their supply chain functions in order to realise greater value in

their operations. Agility, visibility and traceability across a connected supply chain continue to be the most common goals that drive digital transformation. Key to achieving these goals is finding a technology partner that can act as a catalyst, turning conversation into action. With over 1200 supply chain specialists operating in over 20 48

countries spanning Europe, the Middle East and Africa, Zetes is an innovative solutions provider and has supported some of Europe’s biggest companies as they truly embrace the digital disruption of the supply chain. Zetes promises to work with companies to enable ‘faster and more accurate process execution with real-time insight and control’ at their fingertips. “It’s about connecting a number of different networks of different providers in order to create a single view of elements and events across the supply chain,” explains Sébastien Sliski, General Manager Supply Chain Solutions at Zetes. “We’re working with customers to embrace the event based and transactional supply chain, defined through technology and data.” Zetes will work with customers from the packaging line and warehouse right through to the MARCH 2019


“I t’s happening on both sides of the table and we are now realising the true benefits of what an efficient and effective supply chain does for a business” — Sébastien Sliski, General Manager Supply Chain Solutions at Zetes

shop floor, implementing the right technologies to enable greater efficiency and higher productivity. Sliski recognises that the work that Zetes is doing with its customers is representative of a wider industry shift. Companies are looking at their supply chain functions as a means of competitive advantage and Sliski notes that the conversations that customers are now having with companies like Zetes are showing that the customers themselves are demanding more from the supply chain function. “People understand the benefits much more of exploring and exploiting the supply chain,” he says. “People want to understand w w w.suppl yc ha i ndi gi ta l. com

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D I G I TA L I S AT I O N

where their products come from and

considered the best approach for the

how they were manufactured. It’s

supply chain but that approach would

happening on both sides of the table

no longer meet the demands of the

and we are now realising the true

consumer of today and in turn this places

benefits of what an efficient and effe-

greater pressure on the supply chain.

ctive supply chain does for a business.”

This, he notes, is where the turn towards

The modern-day customer is “addict-

event-based supply chains has come

ed” to information, so believes Sliski.

from. “The modern consumer is capable

This is something that a number of

of collecting a lot of information through

industry professionals describe as the

a smartphone and so the supply chain

Amazon effect, in which customers

now has to be able to provide the

expect real-time information, real-time

information to them,” says Sliski. “The

efficiency and real-time results. Histori-

future of supply chain will involve more

cally speaking, a batch approach was

interaction with the consumer and

50

MARCH 2019


CLICK TO WATCH : ‘ZETES IS A GLOBAL SUPPLY CHAIN TECHNOLOGY COMPANY’ 51 a greater use of technology to enable that interaction.” Sliski highlights the successful collaboration between Zetes and Marks & Spencer (M&S), one of the biggest UK retailers. In 2018, M&S selected Zetes to transform visibility and fulfilment across its fresh food supply chain, leveraging the ZetesOlympus visibility platform. Speaking at the time of the announcement, Syd Reid, Supply Chain Director, M&S. said: “It is crucial for us to have complete visibility of our supply chain and be immediately alerted when unexpected events occur. That way, we w w w.suppl yc ha i ndi gi ta l. com


D I G I TA L I S AT I O N

52

can be agile and react at pace to ensure that our customers can get their favourite M&S food products when they want them, no matter what.” It is a relationship that Sliski believes serves as a key example as to the changing customer and the changing expectations on the supply chain. M&S has been one of the UKs most successful food retailers, but with Zetes as a partner, it has been able to unlock greater value and areas to improve. “The reason they brought it in was to gain the ability to see their products and understand MARCH 2019

“S ome customers want the global picture directly and this makes it very complex” — Sébastien Sliski, General Manager Supply Chain Solutions at Zetes


where there were areas where they

Through technology and data capture,

needed to improve,” says Sliski. “We

Zetes can shine a light across the

helped them connect their entire supply

supply chain to create better connec-

chain and capture data in a way that

tivity and efficient operations.

they could digest and interrogate. They

The key to the digital supply chain then,

have discovered key benefits that they

lies in the data. Capturing and storing

were unaware of with a reduction in

the data requires the right technology

waste and greater availability on shelves

and this is where cloud solutions and

as just two examples.”

the Internet of Things (IoT) come into

In enabling a more connected supply

play. Cloud technology and IoT are two

chain, Zetes has removed what some

words that currently dominate the global

industry professionals refer to as

supply chain technology conversation,

“supply chain black holes” that are

but what do we truly understand of

formed through a lack of communica-

them? Sliski keeps it simple and appro-

tion and connectivity between the

aches these disruptive technologies

entire supply chain ecosystem.

as a means of building blocks. “Cloud

E XE CU T I VE PRO FI LE

Sébastien Sliski Sébastien Sliski is General Manager Supply Chain Solutions for Zetes and holds 19 years of experience in supply chain management. In this role, he is responsible for defining the software strategy of the Collaborative Supply Chain Solutions Suite for end-to-end supply chain optimization. From 2009 to 2015 Sébastien was Country Manager for Zetes in France. At the same time he was also Business Consultant for ZetesOlympus, the Supply Chain Visibility solution that offers real-time operational visibility into events and inventory f lows (forward/ reverse) across the supply chain.

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54

technology allows us to be outside of

Sliski looks at the monitoring of fleet

different networks, which is hugely

management, with IoT sensors being

important as a provider of services

placed at warehouse level and then

to the suppliers or the customers,” he

used to collect GPS positioning or even

says. “Everything is connected to

the temperature during transportation

a Cloud Application Programming Inter-

all without an internet connection. This

face (Cloud API), which simplifies the

information, once connected to the

connecting of all the different systems

system at the end destination, will be

in the supply chain in real-time.”

analysed to create complete visibility

“IoT for us allows a dynamic approach to simplifying the collection of informa-

throughout the supply chain process. Technology’s role in redefining the

tion. We implement IoT as a sensor that

supply chain process is clear to see,

doesn’t require a continuous connec-

but there are and will remain challenges

tion in order to capture that information.”

that can stand in the way of unlocking

MARCH 2019


55

the true potential that it can bring.

to that bigger picture in a controlled

Sliski believes the biggest hurdle is

and ultimately successful way.”

one of expectation meeting reality.

In order to support customers along

As a company that provides complete

this journey, Zetes works closely with

connectivity, Zetes’ finds customers

customers so that they understand

often look for the biggest answer to

what can be done, what cant and what

their supply chain challenges in the

the path ahead will look like. IT does

first instance. “Some customers want

this by bringing in multiple stakeholders

the global picture directly and this

together across business units to create

makes it very complex,” he says. “We

a complete picture of the supply chain

often advise customers to break their

journey. “Rather than looking at a lea-

goals down into small pieces, take the

king pipe here or there, we actually

small wins quickly in order to continue

look at the whole infrastructure,” says

to justify the investment in order to get

Sliski. “Then we can understand where w w w.suppl yc ha i ndi gi ta l. com


D I G I TA L I S AT I O N

“We often advise customers to break their goals down into small pieces, and take the small wins quickly in order to continue to justify the investment in order to get to that bigger picture in a controlled and ultimately successful way” 56

— Sébastien Sliski, General Manager Supply Chain Solutions at Zetes

MARCH 2019


various issues are, where there’s crossover and where we can help everyone in that ecosystem.” The retail supply chain of today is not what it was yesterday and it will only continue to change. Zetes will remain at the centre of this supply chain transformation in order to help companies embrace this change and remain competitive. With e-commerce continuing to place even greater demand on physical retailers, an efficient supply chain will remain key. “They need to improve operations and they need to have that on-shelf availability,” says Sliski. “More importantly, they need to be capable of fixing errors or pain points ahead of time. The connected supply chain and data analysis will only grow in significance, not just for retailers but all global industries.”

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April 29-30, 2019

The Ritz Carlton, Atlan


nta | Atlanta, GA


DIVERSIFIED RESOURCING

60

MAKING THE AUTONOMOUS SUPPLY CHAIN A REALITY Girish Rishi, CEO of JDA, explores how companies can successfully manage the transformation to an autonomous supply chain WRIT TEN BY

MARCH 2019

GIRISH RISHI


Photo credit: Amazon Inc.

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DIVERSIFIED RESOURCING

S

upply chains are evolving in the face of greater customer demand, soaring expectations, and endless

purchasing opportunities. Retailers, manufacturers and third-party logistics companies are having to move quicker and produce more with shorter turnarounds and greater transparency. Companies are digitising their supply chains to meet these new challenges, but this alone isn’t enough to answer the questions businesses are asking every day: what’s going to happen tomorrow, next week, next month and next quarter?

62

An autonomous supply chain can help businesses respond with immediacy and decisiveness. This technology is designed to deliver on-demand, navigate disruptions months in advance and help keep your business ahead of any changes in customer buying behaviour. The three core tenants for an autonomous supply chain are:

READING THE SIGNALS The more information a business has access to and uses, the more it can help understand any changes in supply and demand. In the past, the main challenge was having the processing capability necessary to collect reliable data and MARCH 2019

“A n autonomous supply chain can help businesses respond with immediacy and decisiveness. This technology is designed to deliver on-demand, navigate disruptions months in advance and help keep your business ahead of any changes in customer buying behaviour” — Girish Rishi, CEO of JDA


harness it to represent the realities of changing conditions. The capacity to measure and recognise external conditions is critical to predicting supply and demand. The autonomous supply chain requires a significant increase in external signals, which relies on the reporting of evolving climate and market conditions in real time. So how can you read the signals? Using artificial intelligence (AI), machine learning (ML) and IoT, you can manage and interpret signals such as weather events, temperatures jeopardising fresh products and any online social trends influencing customer demand. Businesses need to make use of as many signals as possible, because if dimensions are missing it will difficult to get a clear picture.

IT SEES EVERYTHING To truly understand their entire supply chain, businesses need to manage the complexity and volume of intelligence — billions of pieces of information that are time-stamped with their own varying amounts of information. Let’s set the stage: imagine sensors inside a lorry, which is on its way to deliver fresh goods to a grocery retailer. Sensors are able to detect the temperature inside and w w w.suppl yc ha i ndi gi ta l. com

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DIVERSIFIED RESOURCING

outside of the lorry, the speed it is travelling at, and if there are any roadworks which will slow the delivery down. Every detail is pinpointed with time and date stamps. Now think of thousands of sensors everywhere; the autonomous supply chains need to capture and process every detail in real time. To do this, organisations need to build a platform that can manage and interpret all the signals and insights with a processor capable of managing and integrating data from AI, ML and IoT. 64

DRAWING CONCLUSIONS The capacity to both store and manage every piece of information is necessary,

required to respond to the growing

but without translating these billions of

pressures across industries.

nuggets of information, every detail is

The anticipatory shipping technology

rendered powerless. A standard

that Amazon patented in 2013, which

approach of applying a rule under

calculates the expected demand for

specific conditions could miss dozens

items in certain locations, is the perfect

of other factors. The autonomous

example. The ability to predict supply and

supply chain uses AI and ML to connect

demand in advance enables Amazon

all the seemingly unrelated pieces for a

to move products with efficiency and

clear picture of supply and demand.

precision so they can ship to a customer

Leaving it to dashboards that report

sooner and at the lowest possible cost.

conditions or status systems, an

Calculating demand and pre-positioning

approach commonly used across the

supply can offer a formidable edge over

supply chain, won’t fuel the autonomy

competitors, something Amazon has

MARCH 2019


“The autonomous supply chain can drive value and efficiency at every turn with learned recommendations to stay ahead of the curve” — Girish Rishi, CEO of JDA

clearly taken advantage of.

65

an autonomous supply chain can seem

To help businesses draw the right

impossible at first. The good news is,

conclusions from the data they gather,

whether you’re navigating a change-

they must apply ML and AI that’s trained

resistant culture or using technologies

to understand what’s happening across

which lack the processing capabilities

the supply chain and predict how

necessary to collect data and provide

demand and supply will look in the

insights, an autonomous supply chain

future. That means having algorithms

is still achievable.

that are capable of supporting ML and AI as they progress and evolve over time.

The seeds of change can be sown by educating influencers on how an autonomous supply chain can prevent

MAKING THE AUTONOMOUS DREAM A REALITY

the business from being left behind in a

Whatever industry it may be, achieving

Then, they can move on to highlighting

fast-evolving business landscape.

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DIVERSIFIED RESOURCING

“The ability to predict supply and demand in advance enables Amazon to move products with efficiency and precision so they can ship to a customer sooner and at the lowest possible cost”

Photo credit: Amazon Inc.

66

— Girish Rishi, CEO of JDA

MARCH 2019


CLICK TO WATCH : JDA - DELIVERING A SEAMLESS SUPPLY CHAIN 67 the gaps in the organisation’s own

turn with learned recommendations to

supply chain that result in lost revenue,

stay ahead of the curve. The self-learn-

wasted inventory and late deliveries,

ing and self-healing approach predicts

showing where they can be averted

challenges, transforming them into

with a laser focus on product and

opportunities for growth. Implement

demand. Once this is completed, they

these steps well, and just imagine

can enlist a network of partners with

what’s possible for your business.

the digital capabilities and technologies the organisation needs to move toward an autonomous supply chain. As with any jump to a new technology, adoption won’t happen overnight, but it will be undeniably transformational. The autonomous supply chain can drive value and efficiency at every w w w.suppl yc ha i ndi gi ta l. com


9 –10 April 2019

Part of

Held in Conjunction with

Marina Bay Sands, Singapore

Automation | Digitalisation | Standardisation The impact of new technology on ports & terminals cannot be underestimated. Stay competitive, attend TOC Asia…

Container Supply Chain Keynote Address ONE (Ocean Network Express) Jeremy Nixon Global Chief Executive Officer

Delivering a 2019 liner industry update, future supply chain cost considerations & digitalisation developments

The Asia Trade, Container & Business Outlook Alphaliner Tan Hua Joo Executive Consultant

Bloomberg Intelligence Rahul Kapoor Senior Analyst - Asia-Pacific Transportation

Cargill John McCauley Vice President Transportation and Logistics

Hapag-Lloyd Lars Christiansen Senior Managing Director – Asia,

Port of Tanjung Pelepas Marco Neelsen CEO

Drewry Han Ning Director

Trade Wars

Intelligence

Protectionism

Alliances

Challenges

Opportunities

Defining the Ports of the Future: Fusing the Physical & Digital Worlds Acardis Jonathan Beard Head of Transportation & Logistics - Asia

Royal Haskoning DHV Jereon Overbeek Senior Project Manager - Maritime & Waterways

Seaport David Wignall Chairman

Colombo International Container Terminals Catriona Jayasundera General Manager

Smart Ports

Port Community

Collaboration

Digital

AI

Big Data

Price: USD $1,350 / Cargo Owners & Shipping Lines go free


Your Delegate Experience Container Supply Chain Conference

TECH TOC Conference

PSA or Port of Tanjung Pelepas Port Tours (Monday 8 April)

Port Technology Exhibition

Evening Networking Reception (Tuesday 9 April)

Lunches & Coffee Breaks

Conference Programme Automation, Digitalisation & Standardisation: Next Steps for Container Supply Chains APRIL Group Indranil Sen Head - Supply Chain Management

Nestle Norman Pridipraj Geramia Global Strategic Sourcing Manager – Logistics

CargoX Igor Jakomin Chief Operating Officer

New York Shipping Exchange Don Chen Managing Director – Asia

Toll Group Darren Tan Head of IT for Global Logistics

Port of Rotterdam Martijn Thijsen Digital Strategy Transformation & Business Development - Containers, Breakbulk & Logistics

Transformation

Big Data

Technology

E-Commerce

Digital

Blockchain

Protecting your Assets & Operations: Cyber Security, Illicit Trade & Wider Supply Chain Risks Supply chains are always under constant siege from disruption across the region and around the world. An issue for the maritime industry is how it looks to deal with existing and emerging criminal cyber-attacks. This session will feature a panel of shippers.

Disruption

Counterfeit

Risk

Cyber Crime

Technology

Disruption

Start-ups

Innovation

Start-up Disruption in Ports & the Supply Chain This session will highlight opportunities in port innovation and how collaboration between start-ups and major industry players can bring about pivotal impact. PortXL start-up founders will present their technologies and tackle tough questions.

Book Your Place Today


T O P 10

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MARCH 2019


TOP 10

Global supply chains In recent years, companies the world over have invested heavily into optimising their supply chain processes in order to drive value across their operations. We look at the top 10 supply chains of 2018, as ranked by Gartner WRITTEN BY

DALE BENTON

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Starbucks Starbucks has always set out to be a ‘different kind of company’. Its core mission is to inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time. Starbucks currently has more than 24,000 stores across more than 75 markets. A company-wide supply chain reinvention in 2008 has seen Starbucks continuously deliver on its promise. In 2018, the company announced a commitment to operate 10,000 “greener stores” by 2020. To achieve this, Starbucks announced the US Corporate Sustainability Bond designed to “finance initiatives that will make a positive social and environmental impact in our coffee supply chain as well as other areas across our business,” according to Scott Maw, chief financial officer at Starbucks.

www.starbucks.co.uk MARCH 2019


09

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H&M Helsinki is focusing on digitalising industries and creating user-focused services – Finland’s capital wants to ensure its region keeps its title as a world leader in utilising public information. The city won joint first position in the European Capital of Smart Tourism Competition in 2018. Helsinki has also been commended for its startups, digital transportation services, and smart city government. “Helsinki’s vision is to be the most functional city in the world. The success in many comparisons shows that we are going in the right direction. The utilisation of digitalisation is a significant success factor for Helsinki,” stated the city’s Mayor, Jan Vapaavuori.

www.hm.com

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08

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PepsiCo With brands such as Pepsi, Doritos, Mountain Dew and Quaker under its umbrella, PepsiCo is one of the largest food and beverage companies in the world. To this end, it recognises the level of responsibility it has to ensure efficiency and best practice across its entire supply chain. In 2018, speaking at the Consumer Analyst Group of New York, PepsiCo detailed how it would use automation and data analytics to transform its supply chain and match the rising e-commerce landscape. In early 2019, the company collaborated with Robby Technologies to pilot a fleet of autonomous robots to deliver snacks and drinks to students at the University of the Pacific in California.

www.pepsico.com

MARCH 2019


07

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Nestlé The world’s largest food and beverage company with more than 2,000 brands in 189 countries, Nestle incorporated a number of global supply chain initiatives in 2018. The company announced an accelerated plan towards its 2020 No Deforestation commitment, which will involve becoming the first food company to implement a satellite-based service to monitor 100% of its global palm oil supply chain. “Our ‘eyes in the sky’ will monitor our palm oil supply chain 24/7, regardless of their certification status. This will enable us to further disclose publicly what we find, where we choose to suspend non-compliant suppliers, and where we choose to engage and improve the situation,” said Benjamin Ware, Global Head of Responsible Sourcing, Nestlé S.A.

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Nike Nike’s global vision is to “bring inspiration and innovation to every athlete in the world,” adding that “if you have a body, you’re an athlete.” The supply chain proves key to this vision, As Chairman, President and CEO, Mark Parker asserts that Nike is “incredibly energised about 2019 – with a full innovation pipeline, the most personal, responsive retail experiences in the industry, and a supply chain that’s delivering at scale.” Digital has played a key role in the supply chain, illustrated when Nike opened Nike NYC – a “unique and immersive experience designed to serve consumers throughout the entire shopping journey.” The store embraces the digital experience, with QR codes, digital payments and online store inventory checking.

www.nike.com MARCH 2019


05

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Intel Tech behemoth Intel, based in Santa Clara, USA, is a key player in the digital transformation of supply chains worldwide but in recent years, the company looked at its own supply chain and embraced this digital revolution. In 2017, the company embarked on a major digital transformation of its supply chain systems and implemented SAP HANHA to power this journey. Following a $208mn investment, Intel will simply its supply chain and data pipelines, enable self-service analysis to make smarter business decisions, improve the quality of supply chain data.

www.intel.com

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Colgate-Palmolive Operating in more than 200 countries, Colgate-Palmolive is the premier manufacturer and distributor of consumer products including oral care, personal care and pet nutrition products. Much like Intel, Colgate also entered into a partnership with SAP to improve its supply chain analysis and to enable greater value for the business. The company is working towards SAP S/4HANA platform, which will free up time in other key areas of the business, explore new opportunities to drive growth and utilise SAP’s cloud platform to collate this data and make smarter decisions.

www.colgatepalmolive.com

MARCH 2019


03

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Cisco Systems Provider of industry-leading technology products and solutions, Cisco completely transformed its supply chain function in 2018 to boost agility, resiliency and ability to scale. Cisco identified that IT was “not able to respond quickly to supply chain business requirements, and the business was not able to respond quickly to market transitions and opportunities,� says Shanthi Iyer, Director, Cisco Value Chain IT, Supply Chain Management. Through the digital transformation, Cisco migrated all ERP instances into one, standardised, end-to-end system which resulted in a 30-50% reduction in time to market.

www.cisco.com

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Inditex One of the world’s largest fashion retailers, Spanish multinational company Inditex places sustainability at the heart of its supply chain operation.

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Challenging all of its 1,824 global suppliers to conform to a code of conduct as part of a sustainability pledge, Inditex was recognised in 2018 as the most sustainable retailer on the Dow Jones Sustainability Index. Inditex was given some of the highest scores in the fashion sector in multiple categories, most notably Supply Chain Management.

www.inditex.com

MARCH 2019


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T O P 10

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Unilever With a truly diversified portfolio ranging from foods, soaps, shampoos and everyday household products, Unilever is the world leader in consumer goods. In 2018, Unilever was recognised as a global leader for its actions and strategies which aim to manage carbon emissions and climate change across its supply chain. Assessed by non-profit environmen-

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tal disclosure platform, CDP, Unilever was ranked amongst just 2% of 3,300 companies to be awarded a position on its leader board. As Unilever’s Chief Supply Chain Officer, Marc Engel, says: “Disclosure through CDP helps us understand our upstream footprint better, what initiatives key suppliers have embarked on to reduce emissions associated with goods and services purchased, and to uncover opportunities for collaboration. Transparency and reporting are vital in building trust among consumers, customers, the communities we operate in, employees and also with our investors.�

www.unilever.co.uk

MARCH 2019


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EVENTS & A S S O C I AT I O N S

The biggest industry events and conferences WRITTEN BY DALE BENTON from around the world

04 APRIL

84

09–10 APRIL

Procurex Ireland

TOC Asia

[ RDS, DUBLIN ]

[ MARINA BAY SANDS, SINGAPORE ]

Procurex Ireland 2019 brings together

The “complete” container supply chain

public procurement professionals and

event for Asia, TOC brings together

market-leading suppliers from both the

leading shippers, logistics providers,

Republic and Northern Ireland, who

shipping lines, 3PLs, Port Authorities

collectively oversee an annual spend

and Terminal Operators to experience

of close to €12bn (US$14bn). Procurex

a Contain Supply Chain Conference

Ireland has been described as an

Port Technology Exhibition and Tech

unparalleled opportunity to enhance

TOC Conference. The Tech TOC

their knowledge and skills, in addition

conference connects key port and

to sharing best practice through the

terminal efficiency stakeholders to

extensive networking and collabora-

break down the complexity of digital

tion opportunities on offer.

disruption and develop roadmaps

Click to visit website

together to address the industry of today and the industry of tomorrow.

Click to visit website

MARCH 2019


09–10 APRIL

Procurecon Canada

25–26 APRIL

[ INTERCONTINENTAL TORONTO CENTRE ]

American Supply Chain Summit 2019

The only interactive, peer-led conference

[ DALLAS, TEXAS, USA ]

for senior procurement practitioners,

A leadership focused event with one

Procurecon Canada has provided

shared goal - improving supply chain

innovative workshops and intimate

and procurement strategy across the

networking opportunities to help pro-

globe. The Supply Chain Summit serves

curement professionals take their

as an annual platform to ‘exchange

companies beyond simple cost sav-

ideas and collaborate on the impact of

ings. This year’s event explores the

market dynamics and new technologies

paradigm shift in procurement, supply

for current and future supply chain and

chain sustainability and the digitisation

operations leaders. This year’s event

of the industry, as well as compliance

will examine key case studies on how

in an ever-expanding global procure-

workforce management, advanced

ment space.

analytics, process improvement and

Click to visit website

automation are being rolled out in the world’s best facilities.

Click to visit website

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The annual Women in Procurement and

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Innovation Summit returns with a new

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professionals who are directly respon-

automotive, pharmaceutical, consumer

sible for supply chain within their

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space discuss supply chain strategy

the latest and greatest products and

and innovation, visibility, agility and

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90

A TECHNOLOGY TRANSFORMATION SPANNING THE CONTINENT WRIT TEN BY

CATHERINE S TURM AN PRODUCED BY

MIK E SADR

MARCH 2019


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C A R AV E L G R O U P

Chief Operating Officer, Angad Banga discusses how digitisation has disrupted the shipping industry

M

aritime transport remains a significant linchpin in the world’s economy. With more than 90% of goods and services travelling

via this route, global sea trade remains a significant driver in the delivery of high-quality products and services. Headquartered in Hong Kong, The Caravel Group, taking its name from 15th century trading vessel, ‘the caravel’, has played a key role in the 92

facilitation of global seaborne trade, with strategic locations situated in China, Cyprus, India, Indonesia, the Philippines, Singapore, Switzerland, the United Kingdom and the United States. While the group is no stranger to increasing competition across the shipping industry, changes in requirements from industry participants, increasing and changing regulatory regimes and pricing pressures have created a seismic shift in expectations from the industry, with digitisation expected to be the driver of change. “What makes us unique is our range of qualities: from our agility and spirit, our entrepreneurial drive, integrity and transparency in our operations, as well as our diverse set of business operations across the value chain, which allows us to provide integrated solutions. We are a large company, with the energy MARCH 2019


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93

of a start-up,” comments Chief Operating Officer, Angad Banga. “It is critical for the organisation to drive change, using the business initiatives we create and build over time.” Guaranteeing value-added services will be the main differentiator for any business and Banga is keen to embrace and implement new IT and operational technologies (OT) which will demonstrate excellence, each and every time. As an example, The Caravel Group’s Ship Management division, Fleet Management Limited, which is one of w w w.suppl yc ha i ndi gi ta l. com


The Caravel Group partners with Symantec to defend cyber threats

Businesses are increasing annual spend on cyber security more than ever before. As threats become more advanced, The Caravel Group (TCG) has introduced multiple layers of threat protection across its operations. Supporting organisations, governments and people to secure their most important data, TCG partnered with leading cyber security provider, Symantec.

CONTACT US DL-OD-Hongkong@symantec.com

A market leader in the field, the business delivers integrated solutions across all endpoints, and has strengthened TCG’s cloud and infrastructure capabilities, deploying effective, scalable solutions.


Symantec has a wide range of security products. They are the market leader to provide integrated Cyber Defence solutions and rapid delivery to the cloud.” - Angad Banga, Chief Operating Officer, The Caravel Group

A strategic partnership

A secure solution

By partnering with Symantec, TCG has accelerated their journey to the cloud with flexible endpoint detection and response (EDR) technology. The results are significant: Incident responders now quickly search, identify, and contain impacted endpoints, both on premises and in the cloud, then integrate all incident data and actions into existing SOC infrastructures and Symantec Endpoint Protection (SEP) environments.

Optimising assets and lowering operational costs were the biggest sellers for TCG, where Symantec’s technologies were deployed in minutes, with no impact on the end-user experience. “Security solutions from Symantec have changed the way we deal with threats." says Banga. "We are now also implementing Symantec IT AssetManagement to centralise all our resources.”

By successfully onboarding Symantec email cloud security products to eradicate the threat of spam, malware, and trojans, its Target Attack Analytics (TAA) and Dynamic Adversary Intelligence has seen the implementation of cloud-based artificial intelligence algorithms and machine learning, allowing TCG to adapt to new attack techniques automatically and gain greater insight into attacker and technique. Not only that – by increasing visibility, Symantec also delivers great automated playback capabilities to TCG, bringing the skills and best practices of its most experienced security analysts to the table, lowering costs at every opportunity, existing SOC infrastructures and Symantec Endpoint Protection (SEP) environments.

Symantec IT Management Suite integrates with SEP Cloud, extending the visibility of endpoints to include modern devices and operating systems. Reducing the cost of managing servers, desktops, laptops and thin clients from a centralised location, the solution reduced end-user downtime and maximised IT efficiency. Additionally, by ensuring real-time compliance across TCG’s IT assets and overall operations, Symantec’s IT management suites centralises and simplifies patch management. Symantec’s Cloud-enabled management functionality in IT Management Suite puts the security of Windows and Mac users firmly at the forefront, even when they are disconnected from the corporate network. In-depth reports also offer smarter, faster decisions which ensure endpoints are protected.

For additional information, please visit www.symantec.com or connect with us on Facebook, Twitter and Linkedin. Copyright ©2018 Symantec Corporation. All rights reserved. Symantec, the Symantec Logo, and the Checkmark Logo are trademarks or registered trademarks of Symantec Corporation or its affiliates in the U.S. and other countries. Other names may be trademarks of their respective owners.


C A R AV E L G R O U P

the largest and preeminent third-party ship management firms with over 500 vessels under management, has been a key division which has embraced new digital tools. Catering to cargo ship owners worldwide, including bulk carriers, oil, gas and cargo carriers, chemical tankers and more, Fleet Management’s longstanding expertise in technical and management services has been enhanced with innovative software to drive operational efficiency in delivering exceptional end-to-end, 96

value-added solutions to its clients. Banga notes that its ship management system has the ability to provide close to real-time data to clients, something which was previously unavailable. “The maritime industry is one of the oldest modes of transport, and has gone

“Organisations will need to understand the value of technology, how to use it and to actually innovate, using technology as a driver” — Angad Banga, Chief Operating Officer, Caravel Group MARCH 2019


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97

through several stages of technological

which helps us begin the process of

revolution throughout history. We

digitisation. It means certain applica-

expect to see another impressive shift

tions and certain tasks can be com-

in the near-future. The industry is not

pleted on ships without the network

necessarily considered innovative,

problems we previously encountered.

but is actually hugely complex. Each

Over time, this should hopefully lead

vessel requires a high level of technical

to a higher degree of automation – at

expertise to able to manage it – not just

sea, but also within the offices.”

the engineering and crew itself but also

In the trading of industrial dry bulk

the IT systems and OT systems which

commodities, the group’s Resources

we provide,” he explains. “More and

division has become a key staple for

more ships are getting connectivity,

the steel and energy sectors. Its three w w w.suppl yc ha i ndi gi ta l. com


World-Leading Cyber AI


The Caravel Group Case Study Industry

Maritime

Business Background

Resources

Asset Management

Headquartered in Hong Kong, the Caravel Group is a diversified global conglomerate that provides maritime services, strategic asset management, and trading solutions across the industrial dry bulk value chain.

Challenges Detecting never-before-seen threats at an early stage

Containing fast-moving attacks before they do damage

Gaining complete visibility across complex digital systems

Autonomous response to in-progress threats

100% visibility via the Darktrace Threat Visualizer

Results Real-time detection of novel attacks and subtle insiders

Challenge

Solution

Benefits

As cyber-threats gain in speed and severity, the Caravel Group recognized the importance of cultivating an adaptive and resilient security posture that can keep pace with a rapidly evolving threat landscape. In particular, the business was determined to deploy a cyber AI solution that can autonomously detect and respond to novel threats at an early stage, before they have time to disrupt critical operations, or exfiltrate sensitive data.

To address these concerns, the security team deployed Darktrace’s Enterprise Immune System, which installed in under an hour and immediately started learning the normal ‘pattern of life’ for every user and device in the business. By continuously learning and adapting its understanding of ‘normal’ in light of new evidence, Darktrace’s cyber AI can detect never-before-seen threats that would otherwise go unnoticed.

With Darktrace AI deployed across its entire digital enterprise, the Caravel Group now has 24/7 autonomous protection against advanced cyberthreats. Through Darktrace’s Threat Visualizer, the security team has complete visibility of every user and device and can investigate emerging threats in real time.

With Antigena defending our network around the clock, we can finally prioritize strategically important activities while Darktrace’s AI works in the background to contain the threats that get through. Angad Banga, Chief Operating Officer

“The Enterprise Immune System immediately notified us of cyberthreats that our other tools missed,” commented Banga. “Darktrace’s AI has enabled us to rapidly investigate threats before they have time to escalate into a crisis.” The Caravel Group subsequently deployed Darktrace Antigena, Darktrace’s autonomous response solution. By enforcing the normal ‘pattern of life’ for a given user or device, Antigena works by taking surgical, measured action to contain in-progress threats, limiting damage and stopping their spread in real time. “With Antigena defending our network around the clock, we can finally prioritize strategically important activities while Darktrace’s AI works in the background to contain the threats that get through,” commented Banga.

“Darktrace provides us with actionable intelligence in a few clicks and can identify legitimate threats amid the noise of our complex digital business,” remarked Banga. “With Darktrace, our security team and executives can be confident that cyber-threats that get past the perimeter will be identified and contained before they do damage.”

Darktrace’s Enterprise Immune System is the only solution on the market that can detect and respond to neverbefore-seen threats in real time. Angad Banga, Chief Operating Officer

w


C A R AV E L G R O U P

“More and more ships are getting connectivity, which helps us move into the digital space. Certain applications 100 and tasks can be completed without the network problems we previously encountered” — Angad Banga, Chief Operating Officer, Caravel Group

main subsidiaries – metallurgical, carbons, and ores and alloys – are safely transported as a result of the group’s robust supply chain and logistics capabilities. Nonetheless, as the need for global shipping services continues to escalate, technology has seen a steady rise in demand – something which Caravel has been keen to tap into by taking a greater look at the high volumes of data accumulated across the group, in order to drive greater value and access further opportunities. “Much of the data is not captured at source in a systematic manner. When the data is collected, it’s not being effectively utilised, which leads to the question of ‘is the business intelligence there?’ ‘Is there a sufficient level of resourcing?’ There are some companies doing it but I think it’s at an early stage. This is a key area of focus for The Caravel Group. We will be using several tools to enhance data visualisation and modelling through machine learning,” adds Banga. “We already have some of these initiatives underway, and hopefully, these will be a foundation for enabling future generations of tools that are developed to service our clients. Organi-

MARCH 2019


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101 sations will need to understand the

stores, the new app has led seafarers

value of technology, how to use it and

to join the business quicker and make

to actually innovate.”

an immediate difference, boosting

Although technology has grown “in leaps and bounds” and accelerated the transformation of businesses globally,

engagement and seafarer retention levels in the process. “We can scan a seafarer’s passport

he adds the group’s integrated, pas-

which is then sent back promptly,”

sionate workforce and client-led focus

Banga says. “Previously, it was a fully

is its biggest asset. Blending technol-

manual process, so this has reduced

ogy, creativity and training has therefore

delays in the process. Through the

seen the business build a new applica-

app, users can submit their application,

tion which has fully digitised the seafarer

which provides two options: a quick

experience across their 500 vessels,

application and a full application.

even before they have joined. Acces-

The quick application is where you

sible through Android and Apple

can apply straight away with minimal w w w.suppl yc ha i ndi gi ta l. com


C A R AV E L G R O U P

C OMPA N Y FA C T S

• The Caravel Group takes its name from 15th century trading vessel, ‘the caravel’ • Catering towards bulk carriers, oil, gas and cargo carriers, chemical tankers and more, the group’s longstanding expertise has been enhanced with innovative software to drive operational efficiency 102

• Caravel has sought to look at the high volumes of data accumulated, in order to drive greater value and access further opportunities • Blending technology, creativity and training has seen the business build a new application which has fully digitised the employee experience • With the number of security breaches rising each year and expected to hit US$6trn annually by 2021, security has therefore become a key driver for the group

requirements, and we can actually start conversations with seafarers looking to apply to us. The full application is a more detailed application where you put all your certifications and take photos of your details, and this information is then uploaded to our proprietary crew management database allowing our on-boarding teams to reduce their manual processes and focus on the value-add aspect to hiring high quality seafarers. It supports those who are interested in joining, and we have received positive feedback both from

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103

the community and the industry,” he

2021, according to Symantec, security

adds. Following its success, the group

has become a key driver for the group.

is now rolling out similar technologies

“While the industry continues to

to transform its quality management

shift, it is essential for us build a digital

systems, utilising tools such as iPads

fingerprint in the industry, but to also

to fully mobilise its inspection and

build the IT foundation needed to

audit processes.

have a good security in place,” he adds

For Banga, implementing such

thoughtfully. “We have a number of

technology has proved highly benefi-

partners on board to support us in the

cial, yet he is cautious not to introduce

delivery of end-point protection. Tech-

new technologies “just for technology’s

nology enables us to further this vision.”

sake”. With the number of security

Symantec has been one such partner

breaches rising each year and damage

which has been instrumental in the

projected to hit US$6trn annually by

transformation of the group’s digital w w w.suppl yc ha i ndi gi ta l. com


C A R AV E L G R O U P

£2bn Approximate revenue

1,000 Approximate number of on-shore staff

104

20,000 Approximate number of off-shore staff

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C A R AV E L G R O U P

“I think Symantec’s strength is their ability to be able to operate without needing continual updates every time” 106

— Angad Banga, Chief Operating Officer, Caravel Group

security from an IT perspective. “Our relationship with Symantec

robust email protection. Previously, the group received a high volume of

started with advancing our digital

malware, which has been reduced

protection, where we explored a

significantly since we implemented

number of products in the security

Symantec’s solution.

space which would help us protect

“I think the biggest strength is their

our end-points. We had limited defense,

ability to be able to operate without

but by expanding our partnership

needing continual updates every time.

further, we have embedded a strong

In some scenarios we need to have a

level of protection,” he explains.

managed anti-virus product that doesn’t

“By implementing tools from Symantec, we can now guarantee MARCH 2019

just simply scan for viruses, but really protects the end-point device from


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107

external effects. Other products do

dynamic, world-class service to clients

similar things, but Symantec was very

worldwide. With its ewntrepreneurial

satisfactory from a result perspective.

spirit, its diverse portfolio and strong

Following the implementation of the

relationships with clients, partners and

Symantec solution, the number of spam

its stakeholders, the business will

emails stopped in a month was up to

remain agile and responsive to various

15% of total emails received.�

market trends as the shipping industry

As the group continues to pioneer

endures and thrives.

new markets and trade routes, it will look towards the use of new digital tools and partnerships in order to remain a key player in the market and deliver w w w.suppl yc ha i ndi gi ta l. com


108

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KTM GROUP

ACCELERATING TOWARDS THE ASIAN MARKET WITH SUPPLY CHAIN EXCELLENCE WRITTEN BY

LAURA MULLAN PRODUCED BY

CHARLOTTE CLARKE

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109


KTM

LUCA MARTIN, MANAGING DIRECTOR AT KTM ASIA MOTORCYCLE MANUFACTURING INC., REVEALS HOW THE FIRM IS READYING ITS SUPPLY CHAIN FOR ITS NEXT FRONTIER: ASIA

I

f you’re a motorcycle enthusiast, KTM Group will be a company firmly on your radar. Offering everything from trailblazing street

bikes to dirt-shredding motorcycles, KTM has earned its reputation as Europe’s largest motorbike manufacturer and now, on the road ahead, it has 110

its eyes firmly set on a new horizon: Asia. One integral player at the heart of this expansion is Luca Martin, Managing Director at KTM Asia Motorcycle Manufacturing Inc. Martin is a seasoned professional when it comes to two-wheeled vehicles: he started his career as a mechanical engineer, specifically working on vehicle engine development where he used artificial intelligence (AI) to optimise mechanical components. His next career move saw him at Ducati. “I helped to create the complete supply chain of Ducati in Asia from scratch,” Martin recalls. “We had to find new suppliers, develop new components locally to optimise the factories out there.” This was no mean feat, but Martin helped to establish Ducati’s Asia presence and therefore when KTM Group readied itself to enter the Asian market, Martin was an ideal candidate for the job. MARCH 2019


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KTM

“WE STARTED PRODUCTION FOR BOTH LOCAL AND EXPORT MARKETS JUST OVER A YEAR AGO AND WE ARE ALREADY PRODUCING MORE THAN 7,000 UNITS A YEAR”

112

— Luca Martin, Managing Director at KTM ASIA Motorcycle Manufacturing Inc MARCH 2019

As part of this ambitious strategy, the company forged a US$2mn joint venture with Ayala Group’s offshoot Adventure Cycle Philippines Inc and a new subsidiary, KTM Asia Motorcycle Manufacturing Inc. (KAMMI), was born. Today, the company produces bikes such as the KTM 200 Duke and RC 390 at its state-of-the-art manufacturing facility in Laguna, right in the heart of the Philippines, offering the perfect springboard for KTM Group to enter Asia. “We started production for both local and export markets just over a year ago and we are already producing more than 7,000 units a year,” enthuses Martin. “We have big hopes for the Southeast Asian market.” Tackling a new location is a challenge for any firm, but with its strong local partnerships, KTM Group has been able to hit the ground running. “Thanks to Ayala’s support, we’ve been able to start production in a very short time: we’ve been able to move from a startup to a scaleup company,” Martin observes. “They really helped us establish strong relationships with local suppliers and this is one of the key advantages of setting up this joint


ASIA

CLICK TO WATCH : ‘KTM FACTORY RACING 2019 DAKAR RALLY REVIEW | KTM’ 113 venture.” As one of the largest and

suppliers are used to working in the

most diversified business groups in the

automotive segment and they’re used

Philippines, Ayala Corporation is

to helping manufacture millions of cars

present in markets including real

every year. Our challenge is to help the

estate, banking, telecommunications,

supplier understand that by working

water, power, industrial technologies

with a well-known brand, there’s more

and more. This has allowed KTM

opportunity to grow. In the long term,

Group to gain a deep understanding of

we hope to increase our more and

the Philippine market.

more bikes.” In doing so, KTM Group is

Entering this new market was a

not only helping to meet the burgeon-

challenge from a supply chain per-

ing demand for its motorbikes, it’s also

spective as it meant developing a new

helping to boost the local economy

network from scratch. However, this is

and generate employment for more

a challenge that KTM Group has taken

Filipinos. “Many of our suppliers are

head on. “Many Asian companies and

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KTM

114

(SMEs),” explains Martin. “By working

working with some partners in Asia to

with us, they get the chance to grow

develop a supplier rating platform

not only in terms of revenue, but also in

where each and every supplier can log

terms of qualities and process.”

in, create a profile and get feedback

Always keen to race ahead, KTM

about their performances. I think this

Group has also sought to digitalise its

digital approach is important for the

supply chain. “We’re finding new ways

future of procurement.” Data is

to get in contact with suppliers,” Martin

probably one of the most powerful

says. “In the past, we used to get

tools that supply chain professionals

hundreds of emails every day with

have today, however whilst technology

different company profiles and most of

is set to disrupt the sector for good,

the time I simply didn’t really have the

Martin affirms that a human approach

time to physically go through all these

is also vital. “If we want to build a very

potential prospects. Now we are

strong relationship with suppliers, I

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115

E XE CU T I VE PRO FI LE

Luca Martin Turnaround CEO with 10+ years of experience in the automotive business. Developing high-quality business strategies and plans ensuring their alignment with short-term and long-term objectives. Leading and motivating directors to advance employee engagement, developing a high performing managerial team. Setup of operational and financial goals, informing and advising Board members, managing the organization’s resources, promoting the enterprise to its stakeholders, recommending a proper budget, with an emphasis on cost savings. Start-up approach on new operations. Business angel and startup mentor/investor.

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KTM

1953

Year founded

€1.14bn Approximate revenue 2016

HQ

116

Mattighofen Austria

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KTM

Twice the power, Twice the possibilities

LEARN MORE

www.vpic-group.com | pndat@vpic-group.com


ASIA

CLICK TO WATCH : ‘THE JOURNEY OF A LEGENDARY BRAND HUSQVARNA MOTORCYCLES’ 119 think it’s important that we visit them. We need to create a face-to-face relationship,” he asserts, “but at the same time, I think that digital platforms can help buyers be more productive because they can count on reliable data to select suppliers.” As well as developing a new supply chain, KTM Group also had to contend with the challenge of getting the right talent and expertise on board, however when your brand is one associated

“THANKS TO AYALA GROUP’S SUPPORT, WE’VE BEEN ABLE TO START PRODUCTION IN A VERY SHORT TIME: WE’VE BEEN ABLE TO MOVE FROM A STARTUP TO A SCALEUP COMPANY” — Luca Martin, Managing Director at KTM ASIA Motorcycle Manufacturing Inc

with adrenaline and speed it seems that finding employees who are passionate about the product isn’t too w w w.suppl yc ha i ndi gi ta l. com


Proud to be part of.

Creating value for all.

Creating value by combining the power of innovation and product quality and passionately creating world class solutions catering to two wheeler, passenger cars, commercial vehicles, construction and agricultural machines and rolling stocks. Visit us at: motherson.com

wiring harness rearview mirrors moulded plastic parts and assemblies injection moulding tools moulded and extruded rubber components modules and systems machined metal products cutting tools aluminium die casted products sheet metal parts thin film coating metals IT services wireless power hot stamped parts

KTM Engine Factory in Mattighofen

MARCH 2019

• •


ASIA

difficult. “We’re lucky that we produce a product which you could call an entertainment product so you can tell talent, ‘Look, if you are passionate for the motorcycles, we are producing one of the best that you can find in the market’,” says Martin. “This is a very valuable retention tool. A lot of KTM employees are passionate about motorcycles or are even professional riders. On the other hand, we do believe that this isn’t the only thing we offer. We also try and onboard local

“KTM GROUP HAS RECORDED RECORD VOLUME PRODUCTION EIGHT YEARS IN A ROW” — Luca Martin, Managing Director at KTM ASIA Motorcycle Manufacturing Inc

121

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KTM

“IF WE WANT TO BE SUCCESSFUL ABROAD, WE NEED LOCAL TALENT”

122

tion, the Asian market will play a key role in its future growth strategy. “KTM Group has recorded record volume production eight years in a row. Every year we’re producing more and more bikes and in 2018, we saw a total sales increase of about 10% to 261,000

— Luca Martin, Managing Director at KTM ASIA Motorcycle Manufacturing Inc

well-known brands for off-road in

people who believe in our values. If we

equipment manufacturers) but the

want to be successful abroad, we need

future growth of KTM Group cannot

local talent because only they can help

be as strong without Asia.”

KTM better understand the local culture.” The Philippine plant is KTM Group’s

motorcycles. KTM is one of the most North America and in Europe we are now one of the biggest OEMs (original

KTM Group’s reputation precedes it. To disrupt the Asian market KTM Group

third manufacturing facility, with its first

will undoubtedly rely in on its race-

located in its home country of Austria

proven success. Its distinctive orange

and the second in India. In selecting

motorcycles have crossed the winning

Asia as a key market, Martin contends

line at 18 Dakar Rallies in a row and

that as the group ramps up its produc-

KTM racers have gained 281 world

KTM Board of Directors

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KTM

124

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CO MPAN Y FACT S

• 281 world championship titles up until now • 18 consecutive wins at the Dakar Rally • Europe’s biggest motorcycle manufacturer • Total sales 2018 increase of about 10% to 261,500 motorcycles

125

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KTM

“WE TRY TO TRANSFER WHAT WE’VE LEARNT FROM OFFROAD IN TERMS OF PRODUCT QUALITY AND EASE OF MAINTENANCE AND BRING THAT TO OUR STREET BIKES. WE ALWAYS WANT TO BE ON TOP OF TECHNOLOGY” — Luca Martin, Managing Director at KTM ASIA Motorcycle Manufacturing Inc

126

championship titles up into now. Martin wants to bring this same world class quality to Asia. “We want to show the Asian market that KTM represents

We always want to be always on top of

quality and more importantly, we’re

technology.” KTM Group has also

ready to race. We want to bring this

shrewdly kept track of emerging trends

racing spirit to Asia and we truly believe

in the motorcycle space. For instance,

there will be a bright future for big bikes

whilst the firm noticed a dip in demand

in this market.” The firm won’t just rely

for superbikes they tapped into the

on its legacy though: it’s keen to invest

growing uptick for smaller bikes.

in new innovation so that it can create

“This was a strong move by KTM,”

the best race machines in the market.

notes Martin. “We focused on smaller

“One of our biggest competitive

displacement bikes but our competi-

advantages is that we try to transfer

tors didn’t.”

what we’ve learnt from offroad in terms

Just as consumer demands are

of product quality and ease of mainte-

shaking up the market, the rise of

nance and bring that to our street bikes.

electrification could always change the

MARCH 2019


ASIA

127

motorcycle market for good. “We are

a challenge but with the right partner

now in an era of new mobility,” Martin

we will be able to prepare for this shift.”

asserts. “We truly believe that sooner

Looking ahead, the future is bright

or later they will be a move to electric

for KTM Group. The firm has cemented

motorcycles. We have been developing

its position as Europe’s largest

off-road electric bikes for many years

motorbike manufacturer, and now

already. We’re seeing a shift in that

Asia’s motorheads need to look no

direction and we want to be part of this

further if they want to get their hands

movement.” This market swing won’t

on a high-quality race machine.

come without its challenges though. Whilst the weight of a battery may only slightly alter the performance of a car, it can “completely change the handling of a bike”, according to Martin. “This is w w w.suppl yc ha i ndi gi ta l. com


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AB InBev: Investing in a sustainable future WRIT TEN BY

CATHERINE S TURM AN PRODUCED BY

CHARLOT TE CL ARK E

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ANHEUSER-BUSCH INBEV

With an ambition to remain the number one brewer 100+ years from now, AB InBev’s sustainability goals have led to a global transformation of its operations

R

enowned as the largest beer producer worldwide, AB InBev’s global reach and passion for innovation

has seen the business implement new sustainable solutions. Launching its most ambitious sustainability goals yet in March 2018, encom130

passing smart agriculture, water stewardship, circular packaging and climate action, the business continues to look at ways to secure its position as a leading brewer 100+ years from now. AB InBev knows it can’t solve all of its sustainability challenges on its own and is working alongside technology startups, governments, NGOs, local businesses and universities, notably through its recently launched 100+ Accelerator Programme. Partnering with people who are passionate about solving environmental challenges and building sustainable solutions, areas of focus include improving the livelihood of farmers and the strengthening of the supply chain to take its efforts to new heights. “The launch of the 100+ MARCH 2019


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“Our approach is rooted in the communities where we live and work, and we are well positioned to support entrepreneurs who are tackling local challenges”

132

— Diane Wauters, Sustainability & Agricultural Development Director, APAC

MARCH 2019

Accelerator builds on our sustainability goals and acts as a way to fast-track our progress. It is a way for us to partner with companies that can deliver breakthrough advancements in water stewardship, farmer productivity, responsible sourcing, green logistics and more,” explains Diane Wauters, Sustainability & Agricultural Development Director, APAC.

SMART AGRICULTURE Implementing its Smart Agriculture 2025 goals, AB InBev is focusing on upskilling, connecting and financially empowering its direct farmers in over 15


USA

CLICK TO WATCH : ‘100+ 2025 SUSTAINABILITY GOALS’ 133 countries. In India for example, through

programmes, which educate farmers to

the use of data, technology and key

adopt best practices. “With this pro-

insights from the field, the SmartBarley

gramme we aim to drive change and

team is supporting around 4,000

build a sustainable future for us and for

farmers in boosting farmer productivity

our farmers with a truly 360 approach

and environmental performance. By

impacting not only the farmer margin

actively engaging local farmers, R&D

but also water usage reduction through

specialists have sought to improve

better irrigation practices, health &

crop quality and introduce new barley

safety, nutrition and women empower-

varieties, while agronomists have worked

ment,” adds Wauters.

with farmers in the implementation of

“Our approach is rooted in the comm-

crop management practices to enable

unities where we live and work, and we

them to achieve optimum crop yields.

are well positioned to support entre-

All of this work is fully underpinned

preneurs who are tackling local challeng-

by AB InBev’s SmartFarmer training

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ANHEUSER-BUSCH INBEV

134

intelligence platform – in the context of

its watershed around high risk sites,

the 100+ Accelerator in India will help

improving water usage and driving

us reach our goal of having 100% of

initiatives to impact the surrounding

our farmers digitally connected faster

watersheds. With more than 884mn

and with better results – which is our

people in the developing world lack-

constant drive,” explains Wauters.

ing access to clean water, water stewardship and building strong rela-

WATER STEWARDSHIP

tionships with like-minded partners

As part of its water stewardship goals,

and suppliers has become a vital area

AB InBev has prioritised the impact of

of focus.

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“We have sought to reduce our water usage, checking all water sources to ensure complete security. Working alongside local authorities and partnering with organisations, such as the World Wide Fund for Nature (WWF) and The Nature Conservancy (TNC) will also enable us to truly impact our watersheds,” says Wauters. “In India for example, we are part of a few water roundtables, such as the CEO Water Alliance (CEWA),” she says. “It’s very exciting to create water alliances with other companies sharing similar concerns on our

135

water crisis so that we can act and have more impact together. How do we tackle a water crisis? We can only impact our watershed if we work with strong partners in the field, all sharing the same goal to measurably E XE CU T I VE PRO FI LE

Diane Wauters After working in finance for six years in China on various water treatment plants and completing her MBA at Columbia Business School, Diane joined AB InBev’s global procurement team. She is now leading sustainability & agricultural development for the Asia Pacific region

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E X ECU T I VE P RO FI LE

Terry Yao After working in procurement for nine years in national companies, Terry Yao joined AB InBev APAC procurement team. He is now leading sustainability, innovation & SVC in ABI China.

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improve water quality and quantity,”

“It is a privilege to leverage our resourc-

she adds.

es, capabilities and the scale of our

Leading Australian brewer Cascade

operations to help our communities by

of Carlton & United Breweries (CUB),

pausing beer production to produce

part of the AB InBev family, has sought

clean, safe drinking water for those

to support those affected by natural

affected by natural disasters” says VP

disasters in Queensland, Australia by

Procurement & Sustainability (APAC)

providing free canned drinking water

Jan Clysner.

to those in need. In partnership with the Palaszczuk Government and not-for-

CIRCULAR PACKAGING

profit organisation GIVIT, the relief

Removing 100,000 tonnes of packag-

programme was launched at CUB’s

ing material globally in 2016, AB InBev’s

Yatala Brewery, the largest brewery in

commitment to follow its goal language

Australia. Following its success, the

on returnable and recycled content has

company has now committed to the

seen the business develop robust relation- 137

programme for the foreseeable future,

ships with suppliers, local governments

whereby the business will store up to

and partners. Ramping up the percent-

100,000 cans close to Yatala Brewery

age of recycled materials across its oper-

in case of natural disasters, such as

ations, Wauters points out how China’s

wildfires or cyclones, guaranteeing the

‘recycling ban’, forming part of the cou-

health and safety of local communities.

ntry’s Blue Sky/National Sword

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ANHEUSER-BUSCH INBEV

programme, led to a waste crisis in

six-packs at the Cascade brewery

Australia. However, this ban actually

– which part of our journey to remove

helped accelerate conversations around

all plastic among its breweries in the

how to best dispose of paper, plastics

future,” says Clysner. Previously,

and glass, as the country exported

more than one million plastic six-pack

over 3% of its recycling to China,

ring packages were leaving CUB each

amounting to 1.25mn tonnes in 2017.

year, leading the business to look at

“To counteract this growing conc-

ways to reduce the volume of unre-

ern around plastic, CUB has started

cyclable materials across its brew-

to remove the plastic rings on its

ing activities.

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“A lot of what we do in sustainability

ers, leveraging common goals and

is linked to our relationship with our

sharing best practices around the

suppliers. If we want to increase our

world,� says Wauters.

glass recycled content, our percentage of renewable electricity or reduce

CLIMATE ACTION

our carbon emissions across our

With the aim to utilise 100% renewable

supply chain, we partner with our

electricity sources, AB InBev has fully

suppliers. We cannot achieve our

transformed its operations from the

sustainability goals on our own. We

inside out. Implementing new value

drive change together with our suppli-

strategy agreements and investing in

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“We cannot achieve our sustainability goals on our own. We drive change together with our suppliers, leveraging common goals and sharing best practices around the world” — Diane Wauters, Sustainability & Agricultural Development Director, APAC new technology to reach a 25% reduc-

ate renewable electricity. The installa-

tion in carbon emissions across its

tion is 15MW, and the annual output is

value chain, the business has em-

15,000Mwh renewable electricity,”

braced new partnerships to take the

explains Terry Yao, Associate Procure-

business on its next phase of growth.

ment Director of Sustainability.

Located at one of the biggest brew-

Taking advantage of solar energy

eries in APAC, Putian Brewery is home

produced in Australia, CUB has also

to the largest on-site solar projects

signed a 12-year Power Purchase

across the brewing industry in the en-

Agreement with global renewable

tirety of Asia Pacific. Onsite, the rene-

energy provider, BayWa. The duo will

wable electricity generated could

provide 74,000 MWh renewable energy

achieve approximately 20% of total

to more than 7,000 homes, where

brewery usage. “In China, for example,

energy will be sourced from its solar

we are working on solar projects and

farm in Mildura, Victoria. Additionally,

have asked our suppliers to build solar

the venture will create over 300 constru-

panels on our buildings. We have

ction jobs and long-term opportunities

covered 150,000 square meters of

in the maintenance of the solar farm.

the rooftop in solar panels to gener-

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ANHEUSER-BUSCH INBEV

C O M PA N Y FACT S

• AB InBev has upskilled, connected and financially empowered 50,000 direct farmers in over 15 countries • AB InBev has partnered with agricultural software-as-a-service provider, KisanHub to undertake a pilot which has connected 1000 out of 3600 farmers in India

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• With more than 884mn people in the developing world lacking access to clean water, water stewardship and building strong relationships with partners and suppliers has become vital • Implementing new value strategy agreements, AB InBev has invested in new technology to reach a 25% reduction in emissions as part of its climate action goals • One of the biggest breweries in APAC, AB InBev’s Putian Brewery is home to the largest on-site solar projects across the brewing industry in the entirety of Asia Pacific. • Solar panels will be placed on the roofs of each CUB brewery in Australia, which will reduce its impact on the environment

MARCH 2019


USA

India by having the first brewery in Asia

is increasingly invested in meeting its

Pacific to run 100% on renewable elec-

sustainability goals. As premium brands

tricity for Budweiser production since

grow in popularity and demand, the com-

last March. “It’s very exciting to be the

pany will continue to drive innovation

first movers in our industry, leading by

and healthy competition across the bre-

example to ensure not only we reach

wing industry. Yao underlines this:

our Climate Action goal by 2025 but

“I believe in sustainability, doing the right

also inspire other companies to follow

thing and taking the business in a new

the same path,” explains Clysner.

direction. Our work will impact the city,

To take its climate action goals even

local communities and the country. I beli-

further, solar panels will be placed on

eve premium brands will be on the rise

the roofs of each CUB brewery in

in the near future. People will become

Australia, which will reduce its impact

more willing to tune into brands who are

on the environment. All sites will remain

taking more care of the environment.”

connected to the grid, with potential

Wauters is also keen to highlight AB

access fed back into the system,

InBev’s aim to leave a long-lasting and

ensuring maximum efficiency.

meaningful legacy. “With the size of our

As people’s attitudes towards sustainability continue to shift, AB InBev

company, it’s amazing the impact we can have in the world,” she says pass-

E X E CU T I VE P RO FI LE

Jan Clysner Before leading Procurement and Sustainability at AB InBev APAC, I had the opportunity to do several procurement roles in the company. These roles not only gave me the opportunity to build knowledge and experiences in several categories across the world, but also provided me the perfect platform of continuously learning

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“I believe in sustainability, doing the right thing and taking the business in a new direction. Our work will impact the city, local communities and the country” — Terry Yao, Associate Procurement Director of Sustainability

MARCH 2019


USA

ionately. “Sustainability is not just a trend, it’s our business and here to stay. It’s by leveraging our people and through our incredible strength at achieving results that we get to shape the future of the communities in which we live and work.” Clysner concludes by sharing his passion for sustainability. “In a region like Asia Pacific, each country has its own challenges, its own opportunities and we have the passionate people and scale to capture those. But we also recognize we cannot do this on our own, hence our 100+ Accelerator where we reach out to others to help us on our journey. At ABInBev we’ve been dedicated to sustainability for years, but now we are going further – with goals that will have measurable, positive impact on our communities.”

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Procurement’s role in Edgewell’s transformation and digitization WRIT TEN BY

CATHERINE S TURM AN PRODUCED BY

DENITR A PRICE

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EDGEWELL PERSONAL CARE

With the motto of ‘challenge to win’, Edgewell Personal Care has been on a journey to transform its procurement function to enable a consumer-centric, sustainable future. VP Global Procurement Nirav Mehta tells us more…

T 148

he procurement function has evolved from purely transactional – such as managing purchase orders, pay-

ments and invoices – to a strategic role across organizations. Shifting its value proposition to become an integral part of a business, procurement is expected to deliver a significant impact on bottom line margins using innovative sourcing strategies and cost saving levers. The value proposition is evolving even further, where procurement has sought to impact the top line of an organization by delivering supplier-enabled innovations, forming an integral part of corporate social responsibility (CSR) and sustainability objectives, mitigating all kinds of external risk to supply continuity, finances or even brand equity. A clear example of that is how businesses, presently faced with political uncertainty, government regulations and ongoing trade MARCH 2019


USA

wars on a global scale, are looking at the procurement function. Such volatility has put unprecedented financial and supply chain risks on businesses, which is where procurement needs to be in driver’s seat. On top of this, the ongoing digital disruptions impacting every industry, has resulted in increased pressure on businesses to transform their models. The procurement function must play a critical role in digital transformations of businesses, while also transforming itself. “I believe these are significant challenges, but it makes our role in procurement very exciting and valuable at the same time,” reflects Nirav Mehta, Vice President of Global Procurement at Edgewell Personal Care (EPC). Joining the business four years ago and appointed as Vice President in 2018, Mehta’s diverse background in the consumer goods industry made him the perfect choice to take the business on its next stage of growth. Working for Coty, Avon and L’Oréal amongst others, he reflects that he joined “this gem of a company” due to its “phenomenal culture” and its “collaborative and down-to-earth people.” With several w w w.suppl yc ha i ndi gi ta l. com

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EDGEWELL PERSONAL CARE

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MARCH 2019

H O N O R E D

E D G E W E L L ’ S B R A N D S M A R K E T S


USA

“We have deployed technology-enabled solutions at every stage of the procurement value stream, with the objective to reduce redundancies, and automate and streamline processes” — Nirav Mehta, Vice President of Global Procurement at Edgewell Personal Care (EPC)

“We like to call ourselves a small big company. It also describes our culture and our entrepreneurial mindset to a great extent. Like a startup, perhaps, but with the resources of a large organization,” he says wistfully. “We are not so big that the bureaucracy and politics of decision making, or lack of empowerment can stifle our growth and innovation. I believe this is a great asset that we have, and we try to leverage it. Our company’s motto, in simple words, is ‘challenge to win’. We consider ourselves challengers to our competitors in the industry.” Technology continues to accelerate

strong fundamentals in place for the

the transformation of every industry,

business to succeed long-term, including

and the consumer-packaged goods

strong personal care brands under its

(CPG) and personal care sector is no

umbrella, Mehta is enthusiastic about

exception. Whether it is e-commerce

the role procurement and supply chain

or direct-to-consumer type business

is playing in its transformation.

models. EPC was previously geared

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EDGEWELL PERSONAL CARE

towards competing with larger CPG companies and serving large, brickand-mortar type retailers. As digitization continues to shift the goalposts, a significant number of niche brands are not only challenging market share and the price positioning of bigger players, but also the traditional business models which have remained relatively unchanged – until now. “I would say even consumer behaviors are changing,” observes Mehta. “In the past, consumers used to be a lot more loyal to big brand names,

152

but nowadays are looking for more personalization and are more willing and open to try new brands and new products that appeal to their individuality, that the values of these brands align with the values of themselves.” “You see this huge influx of really small, niche piranha brands in every consumer goods sector. That niche value proposition is targeted to a very specific segment of consumers, appeals to them and is successful in grabbing pieces of market share. At the end of the day, when you add all that up, it becomes a challenging marketplace for incumbent players.” MARCH 2019


USA

With shifts in consumer behavior, an

amidst changing market trends.

evolving landscape from brick-and-mor-

The procurement team at EPC is

tar to e-commerce, as well as business

at the front and center of navigating

models changing to direct-to-consum-

through these complex challenges.

er and subscription-type models, these

Recently, the business effectively

tensions, on top of such geopolitical

managed an ongoing threat posed

uncertainties, has created a hotbed

by the steel import tariffs by the US

of challenges for companies like EPC.

government. Due to its proactive

EPC is undergoing a journey to transform

approach, the business was one of

each area of the business. From taking

the first to be granted exemptions by

a closer look at changing consumer

the US Department of Commerce.

behaviors and delivering agile innovation

“When the US government an-

through simplified ways of working, the

nounced the 25% tariff on imported

business is also deploying new digital

steel, it was one of the key challenges

tools to become increasingly proactive

we were facing in our shaving business

E XE CU T I VE PRO FI LE

Nirav Mehta Nirav is a veteran of CPG industry. In his 20 years of experience, he has worked across numerous leading global CPG companies like Coty, Avon, L’Oreal and Edgewell. He brings significant cross-functional leadership experience in Plant Engineering, Manufacturing, Package Engineering, Supply Chain, and Procurement. Nirav is passionate about Procurement, as it demands a combination of soft skills like Negotiations and relationship building, as well as sound business acumen, financial skills, macro-economics, and category expertise.

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EDGEWELL PERSONAL CARE

154

because our razors are manufactured

of steel is the tariff being applied for?

with imported blade steel. It was

What countries are exempt? What

a challenging situation because

countries are not exempt? What are the

something like that can immediately

criteria for exemption? These tie back

have a big impact on the margins of

to our category expertise as well, where

that line of business. We took a very

we had a very in-depth understanding

systematic, and what I would consider

of the macroeconomics, the cost

a very organized approach towards

drivers and the marketplace for blade

managing that risk in a four-step

steel. This really helped us to incorpo-

approach,” he explains.

rate a sourcing strategy that would

“The first step was to really under-

allow us to manage some of these risks.

stand the policy, go down to the details

“The second step was assessing the

and really understand what the tariff

risk exposure, understanding the full

is being applied on. What categories

value stream within our supply chain

“I n the past, consumers used to be a lot more loyal to big brand names, but nowadays are looking for more personalization and are willing to try new brands that appeal to their individuality” — Nirav Mehta, Vice President of Global Procurement at Edgewell Personal Care (EPC)

MARCH 2019


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CLICK TO WATCH : ‘EDGEWELL’ 155 where there could be an impact. After that, step three was taking some immediate actions. We were very proactive in terms of filing a petition, we were in very close contact with our suppliers and made sure that we aggressively appealed and made our case with the US Department of Commerce. We also sought advice from experts within the trade field,” he continues. “As a result of all these efforts, we were one of the first to be granted an exemption for the blade steel category. As a final step, we are considering our long-term strategic decisions and how we can build more flexibility and agility within our supply chain and mitigate w w w.suppl yc ha i ndi gi ta l. com


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such impacts in the future. Whether it is alternative sourcing and manufacturing strategies, or changing up product strategies or our specifications. However, we are not done here, as there are still ongoing efforts to ensure we strategically manage impact of tariffs on various other categories, including imports from China.” EPC Procurement Managers are tasked with not only understanding EPC’s business needs, but also develop their expertise on macroeconomics, cost drivers, competitive benchmarking, external innovations and more. 156 The procurement team is then able to utilize this insight and intelligence to implement multi-year sourcing strategies. These multiyear strategies will then define how to deliver further value within the different lines of businesses at EPC. The team is also driving value through commodity risk management across all lines of business. By implementing strategies for most of its commodities to share, transfer, operationalize, deflect or even hedge ongoing risks, EPC has different strategies dependent on each commodity and what is happening in the supply markets. Taking advantage of these levers has allowed the team to provide increased visibility to its business stakeholders. “It’s understanding where an impending MARCH 2019


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$2.3bn Approximate revenue

2015

Year founded

6,000

Approximate number of employees 157

significant business risk is and being proactive about mitigating and managing such risk,” stresses Mehta. “It also helps us provide a more accurate and consistent picture to our shareholders and our investors in terms of what they can expect from our financials. I think that’s been a great value that the procurement team has been able to deliver.” To support this further, EPC has placed significant investment in new technologies to transform its procurement and supply chain capabilities. Focusing first and foremost on the basics, the business is presently upgrading its ERP systems and overhauling w w w.suppl yc ha i ndi gi ta l. com


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“We want to align with suppliers that really share our vision and values and to include more active participation from suppliers in terms of sustainability” — Nirav Mehta, Vice President of Global Procurement at Edgewell Personal Care (EPC)

158

its digital foundations to provide the right

possible and streamline processes.”

level of data integrity and governance.

“We have digitized our sourcing

“If you don’t have sound fundamentals

capabilities to a great extent by imple-

to build upon, you can easily end up

menting new technological solutions

spending millions of dollars on some

for Spend Analytics, eRFx, Contracting

technology and spinning your wheels but

and Procure to Pay solutions. We are

not get the most out of it,” reflects Mehta.

also looking to transform our vendor

“We have deployed technology-enabled

life cycle management,” says Mehta.

solutions at every stage of the procure-

“What constitutes the onboarding of

ment value stream, with the objective

new suppliers, vendor master automa-

to reduce redundancies, automate where

tion and self-service, to performance

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159

management of our suppliers, to

individual within procurement. The

offboarding and exiting suppliers upon

technology will aim to develop a consist-

the ending of a relationship. We are

ent level of competency across a number

utilizing digital solutions not only to

of important focal areas, where the

make the procurement function more

existing skills and knowledge of every

efficient and streamlined, but also to

employee is assessed against the

develop and train our colleagues.�

competencies and skills required for

Introducing a web-based learning

their position, Mehta explains. The

and training platform, EPC has sought

technology will then illustrate a set of

to provide a personalized capability

interactive courses each employee

assessment and training plan for every

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EDGEWELL PERSONAL CARE

“All in all, we’ve been utilizing technology solutions to a great extent. People, skill and capability development, while having streamlined, automated processes are enabling faster decisions,” he says. EPC’s technological focus has even extended to towards its supply relationship management (SRM). Developing sophisticated criteria around segmenting its supply base to gain a greater understanding of its strategic suppliers, as well as ones which are critical to the business, EPC has issued scorecards 160

to measure supplier performance, drive collaboration and improve the overall performance and relationship with its key partners. EPC Procurement is also playing a critical role in adding value to EPC’s corporate social responsibility (CSR) and sustainability priorities. “We have a pretty strong supplier code of conduct but we have also developed a sustainable sourcing policy, where we’ve made sustainability and corporate social responsibility key factors in determining our supplier selection and onboarding criteria,” says Mehta. “We do evaluations of our key suppliers based on their commitment to their people, their MARCH 2019


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161

CSR, and how well they are managing

products and the planet, EPC has

their environmental footprint. We want

a number of success stories highlighting

to align with suppliers that really share

its commitment to ensuring a sustainable

our vision and values and to include more

future. Its recent Banana Boat sun care

active participation from suppliers

line, Simply Perfect, now has 25% fewer

in terms of sustainability. We in EPC

ingredients. Its Bulldog skincare brand

Procurement are in a unique position to

has also recently launched an original

influence our suppliers to do the right

natural bamboo razor instead of using

thing for the people and for the planet.�

plastic, which has been met with

Through three main pillars: people,

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C O M PA N Y FACT S

• EPC adopted a hands-on mitigation and trade tariff management strategy, leading the business to be granted exemptions by the US Department of Commerce • EPC is upgrading its ERP systems and overhauling its digital foundations to provide the right level of data integrity and governance 162

• EPC is exploring innovative technologies, such as robotic process automation to automate manual and repetitive tasks, such as contract and shopping cart reviews

MARCH 2019


S U P P LY C H A I N

moved from sourcing fossil fuel-based plastic to bio-based plastic. When you look at activities like the sourcing of our palm oil, we have also made a commitment to source 100% of our palm oils from sustainable sources,� adds Mehta. By making a significant effort to transform the procurement function and working to ensure all its supply sources are fully accountable, EPC continues to do the right thing. Serving local communities and developing sustainable products and services which promote innovation, passion and creativity across all avenues, the company will continue to challenge convention to drive future growth, harness an agile mindset as the CPG industry continues to evolve, and deliver on its long-term vision, placing consumers at the core and supporting their overall wellbeing.

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INNOVATION HELPS DRIVE SUPPLY CHAIN PRODUCTIVITY WRIT TEN BY

JOHN O’HANLON PRODUCED BY

DENITR A PRICE

MARCH 2019


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HYSTER

166

HYSTER COMPANY IS POSITIONING ITSELF TO MEET SEISMIC CHANGES IN THE WAREHOUSING AND MATERIAL HANDLING INDUSTRY.WE SPEAK TO GIJO GEORGE, BUSINESS UNIT DIRECTOR FOR FOOD AND BEVERAGE MARCH 2019

A

ppointing Gijo George as its first ever Business Unit Director for Food and Bever-

age was part of a wider Hyster Company strategy to focus on a cultivating a deeper understanding of the unique challenges of key industry segments and help influence marketing initiatives and product development. George is a seasoned supply chain veteran, bringing to his newly-created role not only 20 years of procurement leadership, but also a deep knowledge


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from a customer perspective – as

locations, the world’s largest cold chain

a Hyster national account customer

solutions provider faced some very

for 11 years. “I was a very active

specialized material handling issues.

customer, too,” he asserts. “Pursuing

Warehouses that operate at -20

innovative solutions for the business.

degrees put material handling equip-

Hyster approached me to join their

ment under extreme stress: steel

marketing group because I had that

becomes brittle, batteries lose power,

customer perspective on the food

fluids become viscous.

and beverage side.”

“It was my job as a procurement professional to cultivate a strong

THE CUSTOMER’S PERSPECTIVE

supplier relationship. Hyster became

As a major cold storage and warehous-

one of the preferred suppliers at that

ing company with more than 170 global

time. Cold storage warehouses are w w w.suppl yc ha i ndi gi ta l. com


HYSTER

among the most challenging ware-

Hyster Company continues to apply

house environments, mainly due to

its expertise and customer feedback

condensation and the need for driver

from a broad global install base to

comfort,” he says, “and Hyster has

develop innovative solutions that build

become a serious competitor in the

on its reputation for strong, durable

sub-zero space.”

equipment while integrating intelligent

A good example is the new Class III

software capabilities to help opera-

End Rider – designed with a variety of

tions meet increasingly demanding

industry-exclusive and best-in-class

productivity goals.

ergonomic enhancements and produc-

168

tivity-enhancing Smart features to help

TOTAL COST OF OWNERSHIP

operations boost labor efficiency and

As in any industry requiring capital

increase throughput in order picking,

investment in specialized equipment,

unloading and other warehouse tasks.

there is a temptation, especially among

It was awarded “2018 Product of the

smaller food and beverage operators,

Year” by Material Handling Product News.

to make purchase decisions based

“Hyster has become a serious competitor in the subzero space” — Gijo George, Business Unit Director for Food and Beverage, Hyster

MARCH 2019


USA

CLICK TO WATCH : ‘HYSTER: TOUGH AND RESOURCEFUL’ 169 solely on price. Gijo George is a passion-

statistics show productivity falling by as

ate evangelist for the concept of total

much as 14% since 2013 and turnover

cost of ownership (TCO) that reveals

rates around 30% have been recorded

the broader decisions facing a CPO.

in ambient warehouses (60% in cold

“It’s our strategy to work very closely with our customers to help them manage their balance sheet.” For example, the

stores). Average onboarding costs for a skilled operator stand at around $10,000. “Hyster is addressing the issue on

emphasis on operator comfort ad-

two fronts: focusing on robust telemat-

dressed by the end rider can positively

ics solutions to measure performance

impact broader labor issues prevalent

and productivity while engineering

in many warehousing operations.

ergonomic solutions to help improve

Recruiting and retaining skilled labor is

operator comfort and reduce potential

increasingly a challenge. With record

fatigue. We have some of the most

low unemployment, labor has become

comfortable platforms in the industry,

a scarce and valuable resource. Some

designed to help minimize fatigue w w w.suppl yc ha i ndi gi ta l. com


HYSTER

170

and absorb shock and vibration in a multitude of operating environments.”

The lift trucks also incorporate an ‘Intelligent’ suite of solutions providing improved productivity, load stability

CLEVER COMFORT

and ergonomics. An optional extended

Warehouses are not normally well-lit at

operator platform provides more usable

the picking point. The new Hyster End

foot space than the leading competi-

Rider series of lift trucks have industry-

tors, allowing operators to adjust stance

exclusive LED platform lights to provide

to provide postural relief. The Ultra

operator awareness in low light or

Cushion reduces shock and vibration

congested areas and the LED fork

to improve operator comfort and

lights offer in-trailer illumination,

provide steady footing.

helping raise pedestrian awareness,

George involves the financial leader-

can reduce product damage and help

ship to explain the real cost benefits of

increase the bottom line.

such equipment. Acquisition costs are

MARCH 2019


USA

balanced against operational costs, end-of-life costs and labor costs. “I aim to give the total picture; a better appreciation of the decision they are about to make - and for our current customers we point out that trucks become more expensive with every year that passes. They can consider minimal technology investments such as telemetry that can be added onto older trucks. This gives visibility into the way the truck is operating and the ability to measure and manage those costs. Our dedicated fleet management organization works as consultants and advisors to our E XE CU T I VE PRO FI LE

Gijo George Gijo brings over twenty years of experience in Procurement, Supply Chain, Sales, and IT Applications. He currently leads the Global Procurement function, responsible for both Direct and Indirect supporting 170+ facilities. He has extensive experience in Capital Expenditure Projects such as construction, automation, assets and systems upgrades and renovation as well as Goods and Services Procurement for categories like Energy, Consumables, Contingent Labor, etc. Prior to Americold, Gijo worked for Rock-Tenn, The Home Depot, The Hackett Group, GeP, and consulted for several Fortune 500 companies.

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HYSTER

STEEL THAT SUPPORTS THE WORLD

From our beginning in 1907, through our incorporation as Steel of West Virginia, Inc. in 1982, to the present as a wholly-owned subsidiary of Steel Dynamics, Inc., we have had a long tradition of product innovation and process improvement. As an ISO 9001:2015 certified manufacturer, we continue to expand and improve our manufacturing capabilities and production efficiencies. For our customers, this means we will always be the low-cost, high-quality producer.

Our structural steel sections are produced from electric furnace steel, continuously cast and hot rolled on highly specialized mills. We produce special shapes as well as standard beams, channels and MC channels. We also produce flat bars at the newly acquired SWVA-Kentucky rolling mill. These products are used by a wide range of OEM customers, including industrial truck and truck trailer manufacturers, rail, off highway equipment, guardrail, solar energy, and shipbuilding companies. We also have fabricating and processing capabilities, both at SWVA, Inc. and at our subsidiaries Marshall Steel, Inc. and Steel Ventures, Inc. SWVA, Inc. has been a long time supplier of forklift mast sections and hanger bars to Hyster-Yale. It has been a true partnership as our team designs our manufacturing systems to take care of this valued customer’s needs. We look forward to continuing our partnership well into the future!

CALL US TODAY 1 (800) 624-3492

MARCH 2019

www.swvainc.com


USA

accounts in order to streamline and manage those costs.” Hyster sale teams are also equipped to support smaller customers that are not ready to invest in large-scale fleet enhancement. They may not realize that they can adopt the latest and most appropriate electric, lithium-ion, hydrogen fuel cell or gas-powered units without heavy capital investment. “We have designed pay-per-use models that make it economically feasible for a ten-truck customer to take advantage of a hydrogen fuel cell solution that would yield 20% to 30% power gain and 10% to 15% productivity gains just from not having to refuel so much and the resultant downtime.” Gijo George spends a lot of his time traveling the North American market to

“We have some of the most comfortable platforms in the industry, designed to help minimize fatigue and absorb shock and vibration in a multitude of operating environments” — Gijo George, Business Unit Director for Food and Beverage, Hyster

learn at first hand what his customers in different industries really want. Its stakeholders, he has found, share the Hyster vision of an ecologically and economically sustainable end-to-end supply chain. “We deploy a number of strategies to collect customer feedback and identify their pain points. At the same time, as an organization with manufacturing facilities globally,

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HYSTER

we leverage the expertise and experience of our best suppliers and solicit opportunities to work with them to add value to the product.”

CUBES TO LAKES Fluctuations in the U.S. and global steel economies are another factor that affects the thinking of equipment manufacturers. George maintains close contact with his financial, procurement and IT counterparts to focus on solutions that make best economic sense while optimizing lead times. “We utilize a lot 174

of just-in-time data management and data mining tools, moving us from ‘data

MARCH 2019


USA

cubes’ to data lakes which can swallow the input costs, global price indices, tariffs, tax information and the like, to enable the best solutions and the best decision making across the business.” By focusing on the food and beverage customers, Gijo George sits at the heart of the business. After all, this fast evolving, population-driven sector will never decline, and Hyster is positioned as a key player in its development. A characteristic of operations in this space is that they have purchased piecemeal in the past, ending up with a stable of equipment from different suppliers. “Over time our customers acquired different brands of equipment. Another aspect of my job is to help them understand how our brand is differentiated in the market and educate them on the TCO (total cost of ownership) that they would be returning to the business.”

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Profile for Supply Chain Digital

Supply Chain Digital Magazine – March 2019  

Supply Chain Digital Magazine – March 2019