Brochure - Ansaldo STS 2018

BECOMING A LEADER IN TRANSPORTATION THROUGH PROCUREMENT TRANSFORMATION

02

PROCUREMENT TRANSFORMATION JOURNEY OF ANSALDO STS WRIT TEN BY

L AUR A MULL AN PRODUCED BY

RICHARD DURR ANT

03

w w w.a nsa l do - sts.c om /en

In line with its parent company, Hitachi, Ansaldo has continued to deliver world-class transport services thanks in part to an innovative procurement transformation

F

aster, safer and more efficient: today’s communities are demanding more from their transportation systems and it seems that many

have found the answer when working with Ansaldo

Signalling and Transportation Systems (STS). Over the past decade, Ansaldo STS has continued to 04

make a lasting impression when designing and implementing railway signalling, automation and integrated transport systems for both metro networks and railway lines, and through its operations, has ensured that people can easily get from A to B. As a Hitachi Group company, Ansaldo STS has leveraged its international experience to help transform transport systems around the globe. This means that whether you’re in Italy or France, the US or India, Ansaldo STS has the expertise to help. In fact, today, the technology firm has designed and implemented solutions in around 28 countries, generating about USD$1.5bn in turnover. Now, as its global footprint expands further, the company has also transformed its procurement process to ensure that it can cater to its global outlook.

$1.5bn Approximate revenue

1853

Year founded

4,228

Approximate number of employees

w w w.a nsa l do - sts.c om /en

05

06

“ Our procurement team is fully involved from the beginning of the process and can lead the sourcing of each package” — Filippo Fanfani, Vice President of Procurement at Ansaldo STS

This responsibility has partly fallen

therefore, a major part of our costs

into the capable hands of Filippo

comes from the external partners and

Fanfani, Vice President of Procurement.

suppliers. Recognising this, we have

Joining the firm in 2014, he says that

implemented a new strategy, manage-

for global companies like Ansaldo STS,

ment and organisation of our supply

having a best-in-class procurement

base. I would say that this is even more

function is more important than ever

important in a global environment where

before. “We are a global business: we

we have key projects across the globe.”

have our core business, such as sign-

With support from top management,

alling, where we design and produce

Ansaldo STS has undergone a restru-

our own products but on the other side,

cturing, creating a new procurement

we also offer turnkey solutions and act

organisation that deals with engineer-

as a technology integrator,” he explains.

ing, development, manufacturing, con-

“For this business, we create the main

struction and the projects through

contract on behalf of our customers and

supply chain planning organisation.

E X E C U T I V E P R OF IL E

Filippo Fanfani Mr. Filippo Fanfani has a multiyear industry background within automotive, industrial and rail businesses, cross functional experiences and a strong international exposure. As part of the Ansaldo STS Executive team Fanfani leads the global Procurement organization (1bn€ spend and about 90 team resources) with the aim to transform it into an effective strategic function. Process and People development are his forte, besides, sourcing strategies and operational initiatives. He believes in sustainable and reliable relationship with key supply partners to achieve progress.

w w w.a nsa l do - sts.c om /en

07

This has helped to foster more robust

operations, moving towards a supply

and strategic sourcing process. “Our

chain and construction focused orga-

procurement team is fully involved

nisation spanning, procurement,

from the beginning of the process and

manufacturing, logistics, supply chain

can lead the sourcing of each package.

planning and construction.

It’s fundamental for the turnkey business

08

For Ansaldo STS, procurement is

so we can define the external cost of

organised in a global matrix structure

each project and maintain a sustain-

under Filippo Fanfani’s leadership.

able margin. I would say that negotia-

On one hand, roles are organised by

tion of cost and risk management are,

regions and on the other axle the global

for sure, two key aspects that they

commodities. This matrix responsibility

keep in consideration.” In order to be

provides the reasonable balance

even more effective today the compa-

between global efficiency and local

ny decided to restructure the global

effectiveness as well as a proper

CLICK TO WATCH : ‘ANSALDO STS STRATEGIC BUSINESS OVERVIEW’ 09 managerial control over the decisionmaking process. Moreover, with this procurement organisation the benefits are two-fold: the firm can not only negotiate tenders from the beginning of the process but it can also enter the global market with sound knowledge of the specific technologies and processes needed for the project. “It’s important for us to work alongside the business and to go to the market as soon as possible,” observes Fanfani. “Technology changes every day and our customers are looking for innovative tools, so it’s w w w.a nsa l do - sts.c om /en

very important that we can go to the

“Leading the sourcing from the

market and understand what our part-

beginning of the bid, we understand

ners can provide to us from the offset.

the documents we have in our hand,

We need to lead the process.”

what we need to have shortly. We

Across its turnkey business, Ansaldo

definitely have to consider what are the

STS has to work closely with partners

constraints, the opportunities and the

to implement cutting-edge transport

supplier base we need to get on board.

technologies. Its supply chain organi-

There are several functions involved in

sation has, therefore, been invaluable:

the planning of the sourcing – providing

by working shoulder to shoulder with

data, documents and in general inputs

both customers and suppliers from the

during the sourcing process – and so it

offset, it’s allowed Ansaldo STS to lead

helps us lead that process respecting

the way and negotiate cost-efficient ten-

each function delegation of authorities

ders, without getting swept up by new

and get a proper match among techni-

waves of digitisation or time constraints.

cal contents, costs, prices and risks,”

“ It’s really important for us to be updated with the latest digital transformation. It’s not something to be considered ‘nice to have’, it’s mandatory” — Filippo Fanfani, Vice President of Procurement at Ansaldo STS

w w w.a nsa l do - sts.c om /en

11

adds Fanfani. “Thanks to this approach, we have a strong understanding of the specifications of our customers’ needs and we flow them down to our suppliers.”

Supplier relationship management is a pressing concern for any supply chain professional and it is one which Ansaldo STS has tackled head-on. By working consistently with its partners and suppliers, creating lasting relationships has become second nature to the firm. “This continuous relationship 12

with our key suppliers is critical as well for our success in a global environment,” notes Fanfani. “As a buyer, you’re responsible for maintaining a strong relationship with your key suppliers.

The balance between global and local interaction in our supply chain organisation also allows us to leverage the right partner who can deliver a costefficient product.”

A digital enthusiast himself, Fanfani is keen to keep abreast of the latest technological innovations shaking up the sector. After the procurement organisation zeroed in on identifying the best practices and processes,

C OMPA N Y FA C T S

• Ansaldo STS is headquartered in Genoa, Italy, and has over 4,228 employees in 28 different countries.

13

w w w.a nsa l do - sts.c om /en

14

“ I strongly believe that in a global environment like today which is becoming more and more digital, procurement also needs to be in line with that” — Filippo Fanfani, Vice President of Procurement at Ansaldo STS

digitisation was seen as the next natural step.

As a result, Ansaldo STS is currently in the process of implementing a new digital procurement platform. “This will help us streamline our processes and it will also give us a global tool where all procurement professionals can work during the sourcing process,” observes Fanfani. “I strongly believe that in a global environment like today, which is becoming more and more digital, procurement also needs to be in line with that. I would say that this is the first step for implementing further technologies in the future.”

In today’s global market, Ansaldo STS may be facing stronger competition but Fanfani is confident that with its newfound global approach, the company is well up for the challenge. Leveraging the power and image of its parent group, Hitachi, it seems the only way for Ansaldo STS is onwards and upwards. “As a part of Hitachi, we can leverage their expertise and utilise the power we have behind us, particularly when it comes to technology. It’s really important for us to be updated with the latest digital transformation. It’s not something to be considered ‘nice to have’, it’s mandatory.”

w w w.a nsa l do - sts.c om /en

15

Via Paolo Mantovani, 3-5 16151 Genoa Italy www.ansaldo-sts.com/en