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J A NU A R Y 2 0 1 9

Fuelling growth with procurement innovation

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Digital disruption in talent acquisition

A $20bn supply chain revolution

Customer-centric procurement transformation Rajeev Karmacharya on aligning procurement with company strategy

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WELCOME

H

ello and welcome to the very first issue of Supply Chain Digital in 2019! Our first superstar of the year is Fannie Mae, as we speak to Rajeev Karmacharya, Managing Director, Strategic Sourcing and Category Management on how he aligns procurement with business. As the procurement function continues to evolve into a more central strategic pillar to a number of organisations, the enterprise’s transformation journey is about one thing – customer service. “For us, our internal business unit stakeholders are our customers,” he says. “Some procurement organisations don’t like to call their internal stakeholders ‘customers’. I think we’ve been very deliberate about viewing our business stakeholders as customers and really putting them at the centre of everything we do.”

Elsewhere, we speak to Cincinnati Incorporated’s procurement transformation, as it continues to launch innovative new products to ensure its customers receive the highest quality of product available. We also speak with Allegis Global Solutions, and how Erin Hough, Senior Manager, North American Supply Chain, navigates the digital disruption of global talent acquisition. Our other features explore Cranfield University and The Centre for Strategic Procurement and Supply Management, as well as looking at how Icertis looks to help companies reduce risk and ensure compliance through cloud management. We also look at the top 10 procurement outsourcing companies. 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

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CONTENTS

12 42 Reducing risk and ensuring compliance through cloud management

54

Customer-centric procurement transformation

34 Building the procurement professionals of tomorrow

Procurement Outsourcing Consultants

68

EVENTS & ASSOCIATIONS

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CONTENTS

72

Cincinnati International

96 84

Allegis Global Solutions

Rosewood Hotels & Resorts

114 University of Saskatchewan JANUARY 2019


126 UiPath

156 Transforming procurement in a digital world with Nicky Hanson

140

Massmart

168

Petro Rabigh

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We see something. Amid the streams of ones and zeros, we see a world where oceans of data yield sparks of insight and unending questions are being answered. A world where every space is intelligent and each connection is seamless. Where cutting-edge computing has the power to carry mankind to new planets, and faster data analysis accelerates the race for a cure. Where solutions come before problems arise and physicists have the power to map the universe’s origins. We see a world where Everything Computes, and what’s next is extraordinary. ©Copyright 2017 Hewlett Packard Enterprise Development LP.


See it all at hpe.com


12

Procurement transforming the Fannie Mae way WRIT TEN BY

ANDRE W WOODS PRODUCED BY

DENITR A PRICE

JANUARY 2019


USA

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FA N N I E M A E

We speak to Rajeev Karmacharya, Managing Director, Strategic Sourcing and Category Management, on how he aligns procurement with business at Fannie Mae…

A

number of companies struggle to establish the bridge between their business aspirations and priorities and the procurement space. However,

procurement is undergoing a sea of change at the moment with many businesses no longer viewing this

14

service as merely a back-end function. Rajeev Karmacharya, Managing Director, Strategic Sourcing and Category Management at Fannie Mae, sees his role in procurement as much more business facing. “A lot of times procurement organizations tend to be too focused on the cost,” he explains. “However, that’s often not what the businesses are really looking for. Obviously everyone wants to be competitive with price, but there’s more to be had from procurement.” Karmacharya has over two decades of experience in procurement, supply chain and technology roles and has seen the procurement function evolve over time. He worked as a management consultant for over 12 years, including as a Principal for AT Kearney, a global management consulting firm. He consulted for a number of leading Fortune 500 firms where he often worked just as closely with the CIO as the CFO. “I really got to see how JANUARY 2019


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FA N N I E M A E

the priorities and perspectives could

function here and what I found talking

sometimes be different between the

to senior executives across the

two groups,” he explains.

company was that they didn’t see

Fannie Mae is a U.S. government-

value in procurement that does just

sponsored enterprise (GSE) that

transactional work. Obviously, there

supplies financing to mortgage

are trade-offs with minimizing cost,

lenders. Fannie Mae celebrated its

minimizing risk and speed of delivery.

80th birthday in 2018. Karmacharya

This interesting dynamic gave me a

joined the company in 2013 and has

perspective on how you should really

been working on transforming the

design a procurement organization.

procurement space through a more

How can a group be really effective?”

business-facing function rather than a

18

traditionally administrative process.

FUTURE PROCUREMENT

“When I joined Fannie Mae, we didn’t

Fannie Mae was keen to recruit

have a category management type of

procurement experts that could supply

$109.9bn Approximate revenue

1938

Year founded

7,200

Approximate number of employees JANUARY 2019


USA

market insights and industry knowl-

to a model where we are the category

edge to the organization. “Our busi-

experts. Our category managers

ness stakeholders are not expecting

have a full understanding of their

procurement to tell them whether they

categories, including historical spend,

should buy this product or that product,

contractual terms, key sourcing levers

but they certainly wanted us to bring in

as well as industry knowledge – more

insights as to what was happening in

than anyone else in the company. This

the marketplace. What are the trends?

creates a partnership, and even though

Who are the key and emerging players?

the organization may change on the

What types of innovation are happen-

business side, it enables us to provide

ing in the industry?

continuity as well as an enterprise

“Obviously, the transactional part is important, as is the supplier manage-

perspective.” Fannie Mae’s sourcing and procure-

ment and all the traditional procure-

ment transformation journey is about

ment functions, but we have moved

customer service. “For us, our internal

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19


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To learn how Ivalua can accelerate your procurement digital transformation, visit ivalua.com


FA N N I E M A E

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“Like many internal operations, procurement has undergone a digital recalibration of both its architecture, functionality and efficiency as Big Data, machine learning and AI start to filter into the procurement space” — Rajeev Karmacharya, Managing Director, Strategic Sourcing and Category Management

JANUARY 2019


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CLICK TO WATCH : FANNIE MAE – NATIONAL HOMEOWNERSHIP MONTH 25 business unit stakeholders are our

focus on. Sometimes, that may mean

customers. Some procurement

higher cost for faster speed-to-market,

organizations don’t like to call their

or taking on a slightly higher level of

internal stakeholders ‘customers’. I

risk. We may challenge them from time

think we’ve been very deliberate about

to time if we believe that’s in their best

viewing our business stakeholders as

interest, or the company’s. Ultimately,

customers and really putting them at

we want our customers to have a

the center of everything we do. We

positive experience in their interac-

seek to understand their business so

tions with procurement while knowing

we can see it from their perspective.

that we have their back. That’s the kind

We help our customers achieve market

of model we’re building.”

competitive costs and help identify

Like many internal operations,

and mitigate supplier risks, but our

procurement has undergone a digital

customers’ business objectives and

recalibration of its architecture,

priorities are at the core of what we

functionality and efficiency as Big w w w.suppl yc ha i ndi gi ta l. com


FA N N I E M A E

“I think the key for me is understanding business needs and viewing things from the customer’s perspective” 26

— Rajeev Karmacharya, Managing Director, Strategic Sourcing and Category Management

Data, machine learning and AI technologies start to filter into the procurement space. “We have totally digitized contracts and can do a lot more with contract authoring and contract analytics, among others. We have started to test RPA (robotic process automation) where it makes sense – and I’ll be honest: RPA doesn’t always make sense for smaller scale operations, where there is a lot more thinking versus doing. From a business case perspective, the promised land of true digitization is full collaboration and transparency that enables harnessing the full potential of technologies, such as JANUARY 2019


USA

machine learning and artificial intelligence. For our customers, that means greater efficiency and better analytics and insights.”

A PROCUREMENT TRANSFORMATION With any digital transformation, robust technology solutions are key to continued success. “If you looked at the technology solution we had a few years ago, the context diagram of our procurement system and integrations was outdated. This complexity meant higher opportunity for errors and impacted our cycle times. We also didn’t have a good way to tackle approvals outside of Procurement – much of this was done via emails and lacked consistency. We had multiple sources of records for supplier data, but no direct integration between contracts and purchase as they were on different systems. So, we needed an end-to-end solution that was flexible to meet our unique needs, yet scalable to handle our volume. After assessing a number of established players, Fannie Mae chose an innovative, emerging supplier in source-to-pay space. We now have a more user-friendly procurement system that allows for integrated requisition and contract approval workflow and now, along with the adoption of e-signatures and mobile approval capability, we w w w.suppl yc ha i ndi gi ta l. com

27


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have cut down cycle-time for standard

We have full spend visibility that really

purchases by 50%.”

enables us to do all the associated

Karmacharya’s team utilizes an

analytics. Catalog management and

end-to-end procurement solution

automatic deal approval with the full

where all of the contracts are in one

workflow is also built into the tool,

contract management system. The

which makes the process very efficient.

key metadata is captured and stored.

Moreover, with the workflow built into

Contract authoring has been piloted

the tool, it is easier for customers to

and the company is looking to expand

see where things are – with increased

its contract authoring and contract

transparency, procurement is becom-

analytics capabilities. “Much of our

ing less of a black box.”

contracting work happens electroni-

Karmacharya believes trusted

cally,” he explains. “Key contract

relationships with suppliers are equally

meta-data is captured and we utilize

important to bring value to internal

e-signature for execution. We continue

customers. The team has worked

to be focused on ensuring data quality,

hard to build strategic partnerships

capturing additional metadata, and

with key suppliers. “We believe

some of the innovative things you can

suppliers can help bring innovation

do with digitalization to drive efficiency.

and best practices with the right

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

Rajeev Karmacharya Rajeev a is Managing Director of the Strategic Sourcing and Category Management group in Fannie Mae. Rajeev leads a team of category management, strategic sourcing, contracting, and supplier operations professionals. In addition, Karmacharya currently serves in the Advisory Board of the Sourcing Interest Group, a global industry forum for Sourcing professionals.

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FA N N I E M A E

“From a business case perspective, the promised land of true digitization is full collaboration and transparency that enables harnessing the full potential of technologies, such as machine learning and artificial intelligence” 30

— Rajeev Karmacharya, Managing Director, Strategic Sourcing and Category Management

partnership and accountability. For

supplier pricing models we might not

example, we work collaboratively

normally have.”

with them to drive efficiency and cost

Besides unit cost optimization,

competitiveness. Annually, we work

Karmacharya’s team is also focused

with them to plan out future demand

on managing demand and seeking

so they can plan their resources

out substitution opportunities. For

accordingly and we get the benefit

example, the procurement team

of readily available, qualified resourc-

worked collaboratively with the

es in areas of our greatest need. We

enterprise data team to manage

also work with a company that helps

data purchases and allocation. Prior

us with benchmarks, and on key

to establishing an asset management

hardware and software deals, which

program, budget planning, forecasting

helps bring a unique perspective into

and cost allocation was challenging

JANUARY 2019


USA

more difficult. Sometimes you have to challenge your customer and say, ‘Are you sure you want to do this? Because here’s what the data is telling me.” “There are valuable insights you can draw from analysis of not just spend and buying patterns, but also from trends in the marketplace. What resonates with the customers might not be cost savings. It might be other things you, and the customer, might not be thinking about.” “I think the key is understanding business needs and viewing things from customer’s perspective,” he adds. “On the flip side, by having this analytical insight you really understand what the opportunities are and, in turn, are due to the fragmented nature of the

better able to challenge the customer.

purchase across multiple business

Do you take the easy path, the path of

units. A new data management solution

least resistance, with minimal value or

enabled the company to effectively

would you rather be someone who is

manage its data purchases and reduce

really helping drive the business? I

duplicative purchases.

choose the latter every time.”

It’s Karmacharya’s customer service mindset that is driving tangible value. “I tell my team every day to think about the value we are bringing. You can always take the easy path, or you can take the path that drives the most value even though it may be a little w w w.suppl yc ha i ndi gi ta l. com

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C P O C S C O S T R AT E G Y

THE CENTRE FOR STRATEGIC PROCUREMENT AND SUPPLY MANAGEMENT:

34

Building the procurement professionals of tomorrow Formed by the Cranfield School of Management and the Chartered Institute of Purchasing and Supply, CSPSM looks to further the professionalisation of the procurement industry WRITTEN BY

JANUARY 2019

DA LE BENTON


35

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C P O C S C O S T R AT E G Y

O

ver the last decade, the importance of s pply chain and procurement has radically grown. Traditionally seen as

a value-added function, or even arguably an afterthought at best, business all over the

world have begun to significantly invest into their supply chain and procurement functions and firmly cementing them at a seat at the table as key business drivers. What this has unveiled however is a lack of training and development opportunities around the world. The question becomes one of, where does one look for supply chain and procurement skills? 36

One UK-based university looks to answer that question. Through a partnership with the Cranfield School of Management and the Chartered Institute of Purchasing & Supply (CIPS), the Centre for Strategic Procurement and Supply Management (CSPSM) was created to improve the practice of procurement and supply management. It seeks to do this through the delivery of quality, researchled executive development procurement and supply activities and by providing world class linkages between business, academia and the profession of purchasing and supply. Cranfield has been a world leader in management education for more than 40 years and has been voted the most entrepreneurial university in Britain and one of Europe’s largest JANUARY 2019

“Strategic procurement and supply chain management lies at the heart of all good businesses and organisations. It can influence economies and be a force for public good” — Soroosh Saghiri, Senior Lecturer and Course Director


37

academic centres for applied research.

relationship between theory and

In partnering with CIPS, Cranfield will

academia, and the practical through key

leverage CIPS’s extensive network to

business contacts,” says David Noble,

create, develop and sustain a source of

CIPS CEO.

quality expertise in both today’s supply

More than anything, the CSPSM is a

chain and procurement industry, and

response to an industry that, as it grows

the industry of tomorrow.

in strategic significance, is continuing to

“Strategic procurement and supply

become more and more professional-

chain management lies at the heart of all

ised. As Soroosh Saghiri, Senior

good businesses and organisations. It

Lecturer and Course Director, argues,

can influence economies and be a force

more and more people are recognising

for public good…we have once again

the concept of supply chain manage-

joined forces with Cranfield School of

ment and its significance to the success

Management to develop that important

and growth of business regardless of w w w.suppl yc ha i ndi gi ta l. com


C P O C S C O S T R AT E G Y

industry sector. “People are finding in

Saghiri notes that the growing

that any business, be it retail, manufac-

professionalisation of procurement

turing or service, the common connec-

started initially at post-graduate

tion is the supply chain,” he says. “So, if

level because these people were

they cannot manage to hold up all of

already equipped with basic knowl-

the activities and the materials, the

edge of business administration and

procurement function in the supply

business management. Over time,

chain, they will fail.”

people looked to become specialists

“The growing understanding of the

38

and so would turn to logistics or supply

very concept of supply chain and its

chain management and this has since

true value to business is opening up the

bled into higher education and

opportunities that we provide in order

university level with the CSPSM

to allow people to learn and deepen

as well as other leading universities

that understanding on a formal basis.”

across the UK and Europe.

“The market, the facilities and technology around us are all changing. We need to update all the time in order to continue to provide the best and industry relevant offering” — Soroosh Saghiri, Senior Lecturer and Course Director

JANUARY 2019


As an industry that continues to

to have knowledge and qualifica-

grow in significance, the argument

tions in supply chain management is

for electing in a career in supply chain

extremely helpful,” says Saghiri. “Sup-

and procurement management is

ply chain management does not have

clear, but that is very much a conversa-

all the answers and isn’t going to be

tion centred on the business demands

a catch-all solution, but it will provide

of future and the next generation of

people today and tomorrow with a

professionals. What of the business

very wide perspective of the nuances

need of today?

of the global procurement space.”

“A business needs to be able to source and move things across locations to and from countries all over the world and that requires management of everything from A to Z and so

Technology has completely defined the modern world and continues to redefine the world of tomorrow and this is no differ-

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39


C P O C S C O S T R AT E G Y

ent in the supply chain and procure-

immensely as we are at a point where

ment space. Cranfield and CIPS look

we can see and monitor everything.

to equip the professionals of today and

Through this we can manage the whole

the future with the knowledge and skills

supply chain better and enable greater

needed in order to succeed and so this

efficiencies.”

digital disruption of the global industry

40

But it’s not simply data technology

has and will play a key role in its offering.

that is redefining the industry, Saghiri

Saghiri acknowledges that in actual

points to the advent of 3D printing

fact, technology in the supply chain

which creates “whole new business

and procurement space is ahead of

models and supply chains to fit those

where the current capbility of profes-

models.” This has major implications

sionals is at. “Technology is moving and

for the procurement and outsourcing

pushing all of the procurement and

part of the value chain. Couple this

supply chain activity and so digital is

with back sourcing, a growing trend

where we are heading and arguably are

across the supply chain and procure-

at right now,” he says.

ment space in order to be closer to

“Because we have better technolo-

the market, and Saghiri admits that the

gies to monitor what we are doing, to

university now teaches modules that

catch, gather and share data and that

were unheard of almost 10 years ago.

impacts the supply chain visibility

“With a mix of technologies and new

“Supply chain management does not have all the answers and isn’t going to be a catch-all solution, but it will provide people today and tomorrow with a very wide perspective of the nuances of the global procurement space” — Soroosh Saghiri, Senior Lecturer and Course Director

JANUARY 2019


CLICK TO WATCH : AN INTRODUCTION TO THE PROCUREMENT AND SUPPLY CHAIN MANAGEMENT MSC AT CRANFIELD 41 business models transforming many

but there is still room for development.

elements of supply chain and procure-

CIPS’s footprint spans the UK,

ment, we are applying all those

Europe, the Middle East and Africa,

changes in our modules,” he says. “We

but it’s within the Middle East and

change them all the time because the

Africa in particular where the industry

market the facilities and technology

is still maturing. Cranfield will continue

around us are all changing. We need to

to position itself firmly at the top as

update all the time in order to continue

one of the leading education providers

to provide the best and industry

that, however the demand grows, will

relevant offering.”

be there to create and foster the future

The professionalisation of procurement and supply chain has come a

generation of supply chain and procurement professionals.

long way in recent years, with CIPS and Cranfield opening new pathways to best practice across the industry, w w w.suppl yc ha i ndi gi ta l. com


TECHNOLOGY

42

Reducing risk and ensuring compliance through cloud management Samir Bodas, co-founder and CEO of Icertis, explains how the ICM Platform helps companies lower cost, reduce risk and ensure compliance in their supply chain amidst regulatory change WRITTEN BY

DAN BRIGHT MORE

JANUARY 2019


43

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TECHNOLOGY

S

eattle, Washington is a hotbed of digital innova-

tion and home to contract management specialists Icertis. Co-founder and CEO Samir

Bodas worked at Microsoft in the 90s but when the millennium turned switched focus to start-ups - Icertis is his fifth, and most successful venture. “To build a successful software company you either have to create a technology wave or ride one. For us, it was the latter.” In its early days Icertis was prepared to bet on cloud. “We asked ourselves what type of enterprise software would move to the cloud and realised any

that touch an external entity - customer, supplier, partner etc - would go to the cloud,” explains Bodas, who 44

recalls working his contacts at Microsoft before the software giant’s Associate General Council suggested Icertis build a contract management system. “We got the specifications and the opportunity to develop something with Microsoft as our first customer - the only requirement was that it had to be with Microsoft’s cloud in the ERP surround space. We built it, they licensed it and we were off to the races!” Many races have since been won by the company as the Icertis Contract Management (ICM) Platform has grown to deliver enterprise-wide contract management software for a diverse customer base (including ABB, Cognizant and 3M) supported by ICM Apps and ICM Experiences tailored for Microsoft Dynamics, Microsoft Teams, Office 365, Salesforce and Coupa. These allow users JANUARY 2019


“To build a successful software company you either have to create a technology wave or ride one. For us, it was the latter” — Samir Bodas, co-founder & CEO, Icertis

2009 Year founded

$400bn Value of contracts under management

700

Approximate number of employees

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45


TECHNOLOGY

to create contracts with a single click,

to a contract and sniff out the obliga-

eliminating the problem of siloed

tions within by using AI. These could

data with an end-to-end solution for

be commercial obligations or related

sourcing, procurement, inventory,

to SLAs, insurance, drug testing and

supplier management and all associ-

future innovations… We can make sure

ated contracts.

these are tracked and make sure your

Contract management is not a new phenomenon, but contracts are now

ments and that you are delivering on

being digitised for more and more.

your contractual promises.”

“Before, they were pdfs or scanned

46

suppliers are living up to your commit-

A recent McKinsey study estimated

but nobody analysed the words within

leakage due to unfulfilled obligations at

them like we can today with AI and

2% so it’s no surprise that this app has

Machine Learning,” adds Bodas.

been met with a positive response.

“Through our ICM Obligation Manage-

“As one of the world’s leading

ment app we can apply our technology

professional services

“As regulations change you need to access contracts easily to move forward… By digitising we become a sentry for our customers” — Samir Bodas, co-founder & CEO, Icertis

JANUARY 2019


CLICK TO WATCH : ICERTIS CONTRACT MANAGEMENT 47 companies, it’s critical we closely

In a multi-tier supply chain, how can

manage the obligations enshrined

you make sure everyone is following

in our contracts,” says Frank Marty,

the rules? Multi-tier supply chain

Global Head of CLRM at Cognizant.

contracts can be submitted anony-

“Understanding and fulfilling our

mously via Blockchain, allowing us

commitments to customers is critical

to unearth contractual risk and alert

to successfully delivering share-

the parties that might be affected.”

holder value.”

Key partnerships are vital for Icertis

Bodas is also keen for Icertis to

to drive innovation and Microsoft has

embrace Blockchain in the smart

been on board since day one. “The UI

contracts space. “People thought it

of Office 365 is very important to us

was a solution looking for a problem,”

because it’s where lawyers spend a lot

he recalls. “Now it’s recognised as a

of their time - you can now access the

way to submit information to a ledger

power of our platform straight from

and achieve insights anonymously.

Word.” Icertis has also partnered with w w w.suppl yc ha i ndi gi ta l. com


TECHNOLOGY

Workday (using its SCM suite to help

change. This is critical with Brexit on

manage employment contracts) and

the horizon…” he warns. “What actually

Adobe (utilising Adobe Sign and

happens to contracts when the law

Acrobat Reader). “A contract is the

governing them changes? Do you

central piece to everything you do in

re-write them? Do you amend them?

business and needs to be accessible,”

By digitising we become a sentry for

maintains Bodas. “We’re like Switzer-

our customers.”

land, we want to integrate with everything around us!” Integration is key for Icertis and

48

Historically there are four core systems of record in organisations CRM for customers, SRM for suppli-

Bodas champions the value of contract

ers, a third for employees and a fourth

management for sourcing and procure-

for transactions to detail commercial

ment. “The most important thing our

developments. Bodas believes Icertis

system is able to do is, in addition to

is at the forefront of a sea-change;

containing or lowering cost, is to lower

“Never before have we had a system

risk and ensure compliance. The

of record across a company which

challenge in supply chains, or any kind

details all your commitments, entitle-

of sourcing, is how you keep abreast

ments and obligations. Until now it’s

of regulatory change and internal policy

been distributed in various silos. We

JANUARY 2019


5mn+

Contracts managed by Icertis

2mn+

Number of global subscribers

49

40+ Number of multiple

languages supported

are the fifth system which gives you

Spend Matters recognizes the impact

a single source of truth for all of your

that Icertis has had, maintaining that

obligations. Contracts are powerful

it is “setting the functionality bar for

documents offering the potential to

contract lifecycle management” and

maximise revenue, simplify compliance,

“pushing some of its competitors off

cut costs and reduce risk, which is why

the map”. As competition and vendor

we plug into all the systems to provide a

innovation continue to accelerate in

better view of the gap…. What we call,

the procurement software market,

‘eliminating the data crevasse’ that

functional gaps between competitors

companies fall into when data is siloed.”

are converging across the overall w w w.suppl yc ha i ndi gi ta l. com


TECHNOLOGY

CLICK TO WATCH : ICM SOURCING APP

50

SolutionMap source-to-pay bench-

to view a proposal that’s in the

mark. This is not the case with Icertis

process of selling an order then the

as it continues to outpace others in

two processes can occur in parallel

releasing new capabilities.

so when the deal is signed the

This has led Airbus to appoint Icertis

suppliers are locked in. The resulting

to help bridge its own data crevasse

commitments made are back to back

between sales side and supply chain

with the suppliers allowing for transpar-

contracting. Bodas elaborates: “When

ency around quality control and penalties

you are building to order you don’t

for delays etc.” Klaus Richter, Chief

start constructing an aircraft until after

Procurement Officer at Airbus is

you’ve received the order. Suppliers

excited by the prospect of this trans-

need to be configured and on-ramped

formative approach with Icertis: “The

when you sign the order. Icertis allows

ICM platform and ICM Sourcing app

Airbus to ensure its suppliers are able

will allow us to digitally transform our

JANUARY 2019


commercial foundation in the supply chain, ensuring best in class supplier evaluation, selection, contracting and collaboration - all while reducing supply chain risk.” Thanks to this growing customer base, Icertis has been growing its revenue by almost 100% year on year. Europe accounts for 40% of that revenue where the company has six offices allied to four others in Australia, Singapore and India. Bodas notes Europe is better embracing of digitisation and staying competitive, hence the plan to open a new office in the Nordics following the recently launched digital support centre in Sofia,

“We’ll keep betting on expansion because this is such a horizontal space and, in the end, everybody needs contract management because everybody has contracts. Our mission is to be the contract management platform of the world” — Samir Bodas, co-founder & CEO, Icertis

Bulgaria. “In 2019 we’ll be building our alliances for further collaboration with other software vendors, because best of breed is where the world is going,” he says. “The challenge becomes about threading the best of breed software together so the data can be actioned properly. We’ll keep betting on expansion because this is such a horizontal space and everybody needs contract management because everybody has contracts. Our mission is to be the contract management platform of the world.” w w w.suppl yc ha i ndi gi ta l. com

51


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T O P 10

54

Procurement outsourcing consultants Supply Chain Digital sakes a look at the top ten procurement outsourcing companies, as ranked by Agencyonnet Written By

JANUARY 2019

HARRY MENEAR


55

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T O P 10

56

Infosys

Turnover: $10.94bn USD (2018) Indian consulting, technology, and outsourcing company provides end-to-end business solutions that “enable clients to enhance business performance, delivered to customers globally operating in various industry segments”, according to Forbes. Infosys’ procurement consultancy service is centred around assisting clients “minimise their third party spend & optimise procurement operations by doing more with less effort”.

www.infosys.com

JANUARY 2019


57

WNS

Turnover: $530mn USD (2017) Headquartered in Mumbai, India, WNS Global Services specialises in business process management. Founded in 1999 in Pune, WNS opened its first delivery centre in the US in 2012, with another opening in 2014 in Pittsburg. According to Agencyonnet, “WNS focuses on tactical steps such as maintaining accurate spend data, optimising payment cycle terms, eliminating errors in invoices help optimise the procure-to-pay cycle�.

www.wns.com

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T O P 10

58

Corbus

Turnover: $87.28mn USD (Est.) Corbus’ procurement solutions service, which it offers separately from downstream supply management consultancy, specialises in managing requisition, delivery, invoicing, transaction, and order to cash operations, with an innovative approach to tail end spend. The company examines and creates solutions to control waste, manage suppliers, and further amplify efficiencies within clients’ purchasing stream, according to the company site.

www.corbus.com

JANUARY 2019


59

Pcura Consulting Turnover: N/A

According to Agencyonnet, “Pcura is a leading Procurement Outsourcing Services Provider with capability of providing procurement outsourcing services onshore and offshore basis as demand arises�. With a focus on TCO modeling, contract management, bid optimisation/analysis, price benchmarking and spend analysis & reporting, its consulting focus is geared towards large cost optimisation.

www.pcura.com

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T O P 10

60

Wipro

Turnover: $8.4bn USD (2018) IT consulting company Wipro provides specialist consultancy services to companies looking to achieve “higher success in sourcing & procurement functions through focused service offering spanning the key domains sourcing, procurement, master data management and platform enablement.� The service includes Spot buys, tail spend management, Taxonomy mapping, data quality service, Compliant buying, automated PO transactions, Workflow, and vertical focused category management.

www.wipro.com

JANUARY 2019


61

Genpact

Turnover: $2.57bn (2016) Based in New York, Palo Alto, London, Bangalore, Hyderabad, Kolkata, and Delhi, Genpact is a global consulting and professional services firm partnered with several Fortune 500 companies. The company offers “procurement domain expertise, process excellence, and digital technologies to offer transformational consulting and provide business process management services across the source to pay lifecycle�.

www.genpact.com

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T O P 10

62

Capegemini

Turnover: â‚Ź12.79mn EUR (2017) With a specialised focus in sourcing Management, order management, reporting, compliance management, reporting, supply chain management consulting and analytics consulting, Capegemini is headquartered in Paris, and employs over 200,000 people. According to Agencyonnet, its solutions are “flexible, sustainable and technologically robustâ€?.

www.capgemini.com

JANUARY 2019


63

GEP Worldwide

Turnover: $83.1mn USD (2018) GEP’s procurement outsourcing services emphasise the company’s flexibility: “we’ve found that clients don’t have cookie-cutter issues, so we don’t use one when helping them meet their procurement objectives”. Its service promises accelerated time to value, increased spend visibility, improved compliance and transparency, improved user experience, and reductions in operational costs.

www.gep.com

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T O P 10

Accenture

Turnover: $39.6mn USD (2018) Accenture acquired procurement business solution provider Procurian in 2013 and has since become a “star performer in the field of procurement outsourcing”, according to Agencyonnet. The company’s service focuses on value generation, along with cost reduction through procurement outsourcing. Accenture also special64

ises in revamping clients’ requisition and invoice processing, along with bringing technologically transformative techniques to supplier performance management.

www.accenture.com

JANUARY 2019


65

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T O P 10

IBM

Turnover: $79.14bn USD (2017) Ranked 2nd on IT Central Station’s list of business procurement software, IBM’s Emptoris suite is “a web-based software application that enables an organisation to optimise the process of procurement and provides state-ofthe-art capabilities for analysing and awarding items and services”. It provides advanced analytics capabili66

ties with real-time monitoring in order to improve order management, spot purchase management and content sourcing, according to Agencyonnet.

www.ibm.com

JANUARY 2019


67

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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

26–28 FEBRUARY

Biologistics World Asia 2019 in the Asia-Pacific region that focuses

Temperature Controlled Logistics in Biopharmaceuticals Europe 2019

on logistics and supply chain of biop-

[ MILAN, ITALY ]

harmaceuticals! The event will bring

The Temperature Maintenance of

150+ high-profile attendees together

Pharmaceuticals in Distribution returns

to discuss, debate and brainstorm on

to Milan, Italy- for its 15th Annual edition

the most pertinent issues affecting

after an extremely successful 2018

the biopharmaceutical logistics net-

event. It promises to be its biggest and

work. Meet key Supply Chain, Logistics,

best to date with an event more diverse

Distribution, Procurement, Validation,

range of parties and topics to be

& Quality stakeholders from Interna-

included! This will be your one-stop

tional and Regional Biopharmas, BIG

shop to all solutions to mitigate faults

Pharmas, Biorepositories, CROs, Solu-

within the cold chain for a more stream

tion Providers, Academic & Research

lined and cost effective supply chain.

Institutes and Government & Regula-

Whether you are from a small biotech

tory bodies across Singapore, South

or a large pharma company this event

Korea, Taiwan, Japan, Australia, India,

will be the perfect platform to share

Indonesia, Malaysia, and China.

challenges.

Click to view website

Click to view website

[ SINGAPORE ] Biologistics World Asia is the only event 68

13–14 MARCH

JANUARY 2019


25–26 APRIL

American Supply Chain Summit 2019 [ DALLAS, TEXAS, USA ]

4TH APRIL

Procurex Ireland

The American Supply Chain Summit is a leadership focused meeting

[ RDS, DUBLIN ]

designed around improving supply

Procurex Ireland would like to thank

chain and procurement strategy

all partners, sponsors, delegates and

across the globe. The Supply Chain

exhibitors for their involvement this

Summit serves as an annual platform

year which has helped make the

to exchange ideas and collaborate on

event a success once again. Through-

the impact of market dynamics and

out the day hundreds of delegates

new technologies for current and

enjoyed the free training opportuni-

future supply chain & operations lead-

ties and the wealth of innovation

ers. This year’s Summit creates an

shown in the Product Showcase. Held

opportunity to examine key case stud-

in Dublin, Procurex Ireland brings

ies on how workforce management,

together the largest annual gathering

advanced analytics, process improve-

of pan-sector public procurement

ment and automation are being rolled

professionals and market leading

out in the world’s best facilities. Join

suppliers, from both the Republic of

the in-depth discussions on achieving

Ireland and Northern Ireland, who

innovation, maximizing supply chain

contribute to the ongoing delivery and

profitability and increasing visibility

strategic development of a combined

and flexibility to mitigate risk.

annual spend of over €12bn.

Click to view website

Click to view website

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69


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

20–21 MAY

Supply Chain Summit [ OXFORDSHIRE, UK ] 70

A highly focused event that brings

10–12 JUNE

together logistics professionals and

Supply Chain Summit

key industry solution providers, the

[ ATLANTA, USA ]

summit consists of one-to-one busi-

North America’s Most Senior-Level

ness meetings, interactive seminars

Supply Chain Event. The Supply Chain

and valuable networking opportuni-

Summit 2018 is the meeting place for

ties; in less than two days. The Total

the forces of innovation, transformation

Supply Chain Summit is specifically

and connectivity that will fundamentally

organised for senior professionals

reshape the supply chain industry over

who are directly responsible for sup-

the coming years. Join us in Atlanta

ply chain within their organisation,

on June 5 - 7 and decide the future.

and those who provide the latest and

800 Attendees, 200 Manufacturers /

greatest products and services

Retailers, 100+ Educational Sessions,

within the sector.

80 C-Level Speakers and 6 Keynotes.

Click to view website

Click to view website

JANUARY 2019


9–11 OCTOBER

25–27 JUNE

Supply Chain & Logistics Summit and Expo 2019 [ ANTWERP, BELGIUM ]

ProcureCon

[ FRANKFURT, GERMANY ] ‘Driving Procurement Transformation.

18–20 AUGUST

Together.’ Europe’s only

management. With a

Scope Supply Chain Conference

solid track record of

[ LAS VEGAS, USA ]

manufacturing compa-

delivering Directors and

A unique engagement

nies. Benchmark,

C-Suite Executives, the

opportunity with Fortune

network and be inspired

EMEA Supply Chain &

500 companies and

at Europe’s biggest

Logistics Summit &

emerging mid-size enter-

gathering of CPOs and

Expo is one of the most

prises. 250+ Influential

senior procurement

established events of its

Peers. Benchmark and

executives. The event

kind in Europe. Now in

network with the movers

where content is king

its 21st year, it is a high-

and shakers of supply

and where small-group

light in the calendar

chain. 30+Thought

interactive formats

where world-class

Leaders. Learn from the

ensure you continuously

organisations meet to

best in the field and walk

challenge, rethink and

maximise efficiency and

away with actionable

improve your existing

minimise costs through

insights. 60+ Leading

procurement strategies.

supply chain strategies

Solutions. Meet only the

Click to view website

of the future.

solution providers most

Click to view website

relevant for your projects

Discover the latest insights in supply chain

event for CPOs and senior procurement executives from top

and initiatives.

Click to view website w w w.suppl yc ha i ndi gi ta l. com

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72


USA

Launching innovative new products during Cincinnati Incorporated’s procurement transformation WRIT TEN BY

SE AN GA LE A-PACE

PRODUCED BY

DENITR A PRICE

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73


C I N C I N N AT I I N C O R P O R AT E D

Justin Atkins, Purchasing Manager at Cincinnati Incorporated, discusses the company’s procurement transformation and affirms the importance of bringing innovative products to market

74

n order to keep ahead of

large-scale 3D product by extruding

its rivals, companies must

materials at a rate up to 80 pounds per

regularly innovate amidst

hour. The system, Big Area Additive

fierce competition to become the first

Manufacturing (BAAM), leverages

to bring new products to market. For

proven design and technology from

Justin Atkins, Purchasing Manager

CI’s laser platform. The innovation

at Cincinnati Incorporated (CI), he

was designed to enable 3D printing

believes it’s his company’s willingness

to be utilized for production manufac-

to launch new innovations and react

turing, where its size and speed allows

to the latest trends that acts as the

for large parts to be created more

catalyst for its success.

efficiently. The system provides more

I

CI, a global leader in 3D printing,

options due to its open architecture

has created one of the world’s largest

system for material vendors. “The

3D printing technology which develops

new system has enabled our custom-

JANUARY 2019


USA

75

ers to print parts at a very large scale that was not possible in the past and has allowed some of them to do things that are new to the world. Customers’ reactions have been overwhelming and we’ve won numerous innovation awards based on it,” explains Atkins.

TRANSFORMING OPERATIONS Over the past few years, CI has transitioned to become a company that can focus more on customer-centric product innovation, having solely operated with an engineering depart-

BAAM (Big Area Additive Manufacturing)

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C I N C I N N AT I I N C O R P O R AT E D

ment in previous years. The introduction of dedicated product teams has enabled CI to improve the range of products, such as laser and plasma cutting systems, press brakes and shears, additive manufacturing, as well as powder metal presses. “We now have three product teams: CNC table products, vertical motion products, and aftersales. Each one of these product teams has dedicated functional support including: service, technical support, marketing, training, and engineering resources. It means they can jointly focus on their specific products and the customers 76

that use them in an open team environment.” The company is also in the process of transitioning from its ERP system that has been in operation since 1992 and is set to switch to a state-of-the-art MRP ERP system called IFS which in the middle of a five-year implementation schedule. “It is going to give us the ability to have things like supplier portals and digital order acknowledgements and digital order systems. Technology is playing more of a role in our operations and we’re constantly looking at how we do things and how we can do better,” says Atkins. In a bid to reduce costs and lead times in its supply chain, CI has fully changed the way it operates. Atkins examines how CI’s supply chain has adapted over the years. “As a custom JANUARY 2019


USA

77

manufacturer of products, the design of our machine tools is fixed and the supply chain has never really had a say in the design, which puts us into a corner at some points. We have certain components within our supply chain and that we do not have full control of,� he says. “Over the past five years, we have looked at the supply chain more holistically and have seen where the pain points are. By adjusting our lead times and associated planning, it has allowed the supply chain to have more of an influence on what products we design into our products, which ultimately gives us a better chance of providing a lower-cost, on-time machine.� w w w.suppl yc ha i ndi gi ta l. com


C I N C I N N AT I I N C O R P O R AT E D

“25 years ago, the engineering team would make designs and we would have to try to source it. Now, everyone on all teams works very closely together to ensure that whatever products we’re designing is manufacturable and that there is a good supply chain pool” — Justin Atkins Purchasing Manager at Cincinnati Incorporated

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USA

CLICK TO WATCH : ‘WHY CINCINNATI?’ 79 “25 years ago, the engineering team would make designs and we would have to try to source it. Now, everyone on all teams works very closely together to ensure that whatever products we’re designing is manufacturable and that there is a good supply chain pool.”

FORMING KEY PARTNERSHIPS In order to diversify its business model, solely buying steel directly from the mill, CI decided to partner with leading steel supplier, O’Neal Steel, in a bid to

Goform Electric Press Brake

reduce its lead times. However, with close to 50% of steel produced being w w w.suppl yc ha i ndi gi ta l. com


C I N C I N N AT I I N C O R P O R AT E D

wasted in the form of scrap, the company moved away from the O’Neal Steel model and explored other partner models. Ultimately after further consideration, CI reverted back to O’Neal Steel as it was emerging as the better option. “We had steel service centers competitively quote on every single piece of plate that we needed to buy and have them burn our parts out for us,” says Atkins. “However, we decided to move back to the O’Neal Steel model once again because they took a decent-sized hit on the business that we had with them when we started going to 80

other companies. They assembled a supply chain team together to see how they could

Small Area Additive Manufacturing (SAAM) JANUARY 2019


USA

“We decided to move back to the O’Neal Steel model once again because they took a decent-sized hit on the business that we had with them when we started going to other companies. They assembled a supply chain team together to see how they could fix our problem and work with us to make our supply chain even more efficient” — Justin Atkins Purchasing Manager at Cincinnati Incorporated

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C I N C I N N AT I I N C O R P O R AT E D

fix our problem and work with us to make our supply chain even more efficient.” The collaboration with O’Neal Steel has allowed CI to closely monitor the inventory at hand and ensure less wastage. Atkins affirms how important it is for the two companies to enjoy a strong working relationship. “We work very closely with them, and do forecasts twice a month, depending on how strong business is, which allows us to better predict exactly what inventory we require,” explains Atkins. 82

“We are effectively able to have four or five times more efficient yield on our plate at a lower cost which is important given the current US administration imposing tariffs on foreign steel.” Looking to the future, Atkins points to the positive workforce at CI as a key factor in its success and believes it remains vital to continue to grow and enable innovation. “Our people are what makes Cincinnati Incorporated so successful. We are right here in southwest Ohio and we have some of the best people in the world. Every day, every member of staff comes in and they have such an immense feeling of pride in the products that we build. JANUARY 2019


USA

CLICK TO WATCH : ‘BAAM 3D PRINTED SHELBY COBRA’ 83 I would give the credit to the people that we have at the company,” Atkins states proudly. Ultimately, Atkins would like to see the company continue to grow and innovate more and more every day. “We have long-term plans and I want to see us continue in the same direction that we’ve been pursuing for the past three or four years while continuing to bring bigger and better products to market.”

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ROSEWOOD COR DEVA LLE:

84

A GLEAMING EXAMPLE OF PROCUREMENT TRANSFORMATION 101 WRIT TEN BY

L AUR A MULL AN PRODUCED BY

DENITR A PRICE

JANUARY 2019


USA

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ROSEWOOD HOTELS & RESORTS

OFFERING EVERYTHING FROM WORLD-CLASS GOLF TO WINE TASTING, ROSEWOOD CORDEVALLE IS A HIDDEN GEM OF LUXURY THANKS IN PART TO ITS DILIGENT PRO C U R E M E N T T E A M

86

N

estled in the foothills of the Santa Cruz Mountains, Rosewood CordeValle might be Northern California’s

best-kept secret. The four-star hotel rests on acres of rustic countryside making it the ideal spot for those craving to get some needed rest and relaxation. Yet, whilst guests enjoy golf courses and tranquil spas at their leisure, behind the scenes there’s a buzz of activity that ensures that guests receive an unforgettable stay. Scott Amarante, now Director of Procurement at Rosewood CordeValle, earned his stripes at the hotel. With almost 13 years’ experience at the property, he says that in essence his procurement team has one key goal: “By ordering products and services, managing inventory and more, we try to take away much JANUARY 2019


USA

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TRULY MADE IN ITALY LINENS www.rivoltacarmignani.it export@rivoltacarmignani.it


USA

“We never want to save money at the cost of the guest experience. We’re always pushing for the best of both worlds” — Scott Amarante, Director of Procurement at Rosewood CordeValle

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ROSEWOOD HOTELS & RESORTS

of the day-to-day admin from the front of house managers’ plates. This allows them to deliver better training to staff and, most importantly, deliver a high-quality guest experience.” Having worked at the hotel for over a decade, Amarante is all too aware of the importance of procurement. When he first started out in a food and beverage role, the hotel didn’t have a formalized procurement department. “We began to see some challenges: we were having problems with inventory and food and beverage costs,” he recalls. “There was a real need to centralize procurement and create 90

a department. We went from nothing to a department of three and so whilst it’s been an organic development, we’re now a vital part of the company.” Whether ensuring inventory levels are accurate or overseeing spending, Amarante says that now the department has “really taken on a life of its own”. This is partly thanks to his colleague Luca Rutigliano, he adds. “He had the foresight to create this department and was really the pushing force behind it. He really helped everyone recognize the importance of procurement which was a new and unproven department at the time.” It didn’t take the procurement department long to prove its worth. In the past, Amarante points out how the golf shop’s inventory was JANUARY 2019


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CLICK TO WATCH : ‘ROSEWOOD REGULARS — COMPLETELY REVOLUTIONARY’ 91 overinflated and unmanageable. “We completely took it over and managed what goes in and out,” he reflects. “We took an inventory that was worth around $500,000 and brought it down to $175,000 – now the business is operating beautifully.” By streamlining this function, it allowed Rosewood CordeValle to deliver a seamless guest experience. This same methodology was applied to the hotel’s food and beverage offering. “The food and beverage team were finding it difficult to meet their budgeted costs on a monthly basis so by taking over those inventories and tightening up the process we made sure everything’s accounted for and streamlined. We brought everything w w w.suppl yc ha i ndi gi ta l. com


ROSEWOOD HOTELS & RESORTS

“People don’t realize that procurement touches every single department on the property” 92

— Scott Amarante, Director of Procurement at Rosewood CordeValle

down to a manageable, functional

It’s been a big help. When things get

level. We were able to really put our

tough, we can help them tighten the

footprint there while maintaining a

belt.” Yet, whilst cost-saving is a critical

great experience.”

task for any procurement professional,

Procurement may not always gain

Amarante says that striking a balance

the spotlight but its influence is undeni-

between value for money and quality is

able. “People don’t realize that procure-

a “tightrope walk” he does every day.

ment touches every single department

“It’s tough,” he says. “We never want to

on the property,” Amarante adds.

save money at the cost of the guest

“Whether it’s the spa or golf or food

experience. We’re also evolving and

and beverage, we touch everything.

looking at market trends to really put

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93

our best foot forward. We’re always

years. This reputation has proven to

pushing for the best of both worlds.”

be an invaluable asset.

Being part of the Rosewood Hotels

However, for Amarante, the most

& Resorts family undoubtedly lightens

important item in his toolkit are the

this load. With 24 hotels and resorts

strong relationships he has fostered

spanning 15 countries, the Rosewood

with his vendors and suppliers.

umbrella is one which is synonymous

“Creating close, mutually-beneficial

with world-class standards and a

relationships with our vendors is really

memorable guest experience, evi-

key to our success. How do we develop

denced by the variety of accolades

these relationships? Some of it comes

and awards it has collected over the

down to purchase agreements, some of w w w.suppl yc ha i ndi gi ta l. com


ROSEWOOD HOTELS & RESORTS

it comes down to exclusivity. For instance, we have a signature whiskey and tequila that’s made for us. We make them part of our family. We showcase them to our members and hotel guests.” Whether managing the hotel’s inventories or purchase orders (POs), technology also undoubtedly plays a role, although it can be a double-edged sword, warns Amarante. “One of the paradigms of being technology-based is that having that face-to-face relationship with your vendors becomes more difficult,” he says. 94

“This creates a challenge when you’re sending POs via email, for example. You’re not even having a conversation with the person when placing an order. It really forces us to go the extra mile to maintain these relationships but technology is still paramount for sure.”

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“Creating close, mutuallybeneficial relationships with our vendors is really key to our success” — Scott Amarante, Director of Procurement at Rosewood CordeValle

95

Rosewood CordeValle has firmly put itself on the map as the ideal destination for any getaway and, whilst its procurement department may boast of a small team of three, it seems they’re making a lasting impression on the hotel and its guests. “Looking forward, we hope to continue to improve profitability and enhance the quality of the guest experience every day,” adds Amarante. “It might sound simple or cliché but that’s what it’s all about — it drives us every single day.”

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Digital disruption of procurement talent acquisition WRIT TEN BY

DA LE BENTON PRODUCED BY

ARRON R A MPLING

JANUARY 2019


CANADA

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ALLEGIS GLOBAL SOLUTIONS

98

Erin Hough, Senior Manager, North American Supply Chain at Allegis Global Solutions, discusses the digital disruption of global talent acquisition s the supply chain and

that make a difference for businesses

procurement industry contin-

worldwide. AGS is the global leader

ues to become increasingly

in Workforce Management Solutions.

professionalized, with businesses all

This requires a deep understanding of

over the world waking up to the value

a client’s requirements and expecta-

of procurement, it creates a need for

tions and AGS’ Supply Chain team plays

skilled professionals in order to unlock

a critical role in all of this. “We consult

the true potential and propel strategic

with our clients to ensure they are

growth. This is where Allegis Global

implementing innovative strategies that

Solutions (AGS) comes in. As a global

focus on risk mitigation, data govern-

talent solutions provider, AGS trans-

ance and visibility, as well as operational

forms the way the world acquires talent

efficiencies with their supply chain,”

by delivering client-focused solutions

says Erin Hough, Senior Manager,

A

JANUARY 2019


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99

North American Supply Chain at AGS.

supplier partners providing talent in

“What they want is to acquire the best

specific industries, geographies and

talent, at competitive market rates and

skill sets. Over the course of her 13-year

at the right time. AGS’ Supply Chain

career in the staffing industry, Hough

team provides the market insights and

has held a number of roles across

tools that our clients need in order

North America. Prior to joining AGS,

to achieve this”.

she worked for a staffing firm providing

As part of the company’s Supply

sales and recruiting services. It was

Chain Management team, Hough is

then that she first encountered AGS

tasked with leading a team of consult-

and the growing presence of MSP’s. In

ants across North America. These

2012, she joined AGS to help grow the

consultants must ensure that its clients’

supply chain team. “Having experience

goals are achieved by having the best

with a staffing supplier supporting MSP’s w w w.suppl yc ha i ndi gi ta l. com


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CANADA

provided the right foundation for my role here at AGS. It set me up for success as I have a greater understanding of suppliers’ pain points, how hard they work, how difficult their role can be to find, secure and ultimately retain the right candidate,” she says. “It also helped me to understand how to coach and mentor a supplier if they were struggling in our programs and provide them with key guidance and support in order to be successful.” Hough has seen first-hand the changing supply chain and procurement landscape, particularly in the way the company works with client partners. Historically, AGS would make supplier recommendations to its clients based largely on existing or previous relationships.” But, as Hough notes, while the importance of relationships has not changed, the methodology AGS uses to select its suppliers has evolved. “The relationship is still a key component for us but what’s important to

“We will continue to evolve to be a thought leader in the industry, continue to be open minded and to be a consultant to our clients. We will strive to be a true partner to our suppliers because without our suppliers we can’t deliver the talent that our clients need”

103

— Erin Hough, Senior Manager, North American Supply Chain at Allegis Global Solutions

procurement are proof points. With each recommendation we make to add, remove or even realign suppliers based on geographies or skillsets, our recommendations are driven mainly by data,” she says. “The strategies that we implement with our supply chain consistently aligns with our data analytics. The value of relationships is not eliminated, we know when a supplier’s team w w w.suppl yc ha i ndi gi ta l. com


ALLEGIS GLOBAL SOLUTIONS

is demonstrating a strong partnership to both AGS and our clients. The data simply paints a more complete picture and allows us to make the best business decision about their success or lack of success within one of our programs.” Hough acknowledges that industry wide we are experiencing digital transformation of both staffing and procurement. Technology, she notes, is changing the way procurement and hiring managers are attracting, motivating and retaining the right talent in 104

the marketplace. “What we are seeing is growth in artificial intelligence and automation in order to meet the needs of our clients. We are educating our hiring managers to think differently about the way that work gets done,” she says. “They might look at a role that is knowledge driven or has repetitive tasks as one that can be completed by a robot, or artificial intelligence.” “The digital transformation we are experiencing in our industry will enhance our service offerings and streamline our processes to make AGS more efficient. This will not eliminate the need for a human to be involved. Roles that require relationship building or a consultative JANUARY 2019


CANADA

CLICK TO WATCH : ‘AGS INTELLECT 2018 STEVE PARKER EXPLAINS’ 105 approach would still need to be completed by a person,” Hough explains. Both AGS and its clients must navigate this changing landscape and so it is integral that AGS identifies trends and understands the digital impact in order to continue providing the best talent and maintain those leading relationships. Hough admits as much and notes that as AGS works across multiple global sectors, the best way forward for both AGS and its clients is to invest, collaborate and share knowledge. “Supply chain and procurement are evolving and we are experiencing those changes across all of the industries AGS supports. In order to stay on w w w.suppl yc ha i ndi gi ta l. com


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PA R T NE R S — INF O T R E E , A QUE N T, C OMP UG A IN

“These suppliers are part of our strategic supplier program, meaning they are our top 1% of suppliers across the globe. They have built strong partnerships and trust with us. We know that they are suppliers we can rely on. If we need honest feedback about what’s going on in the market place or a tough skill set that we need help with, we know that they’ll dedicate

a team to help us to make sure we’re supporting the client. Each of these suppliers have also contributed by providing us with market intel. Telling us what’s going on in the market, what their pain points are, giving us suggestions for ways that we could improve their user experience. They’ve just been true partners to us. They’ve been great.” 107

top of these changes, we have an

A key example of how AGS has

innovation team that is constantly seek-

embraced technology and innovation

ing out and testing new ideas,” she says.

is through the implementation of a

“We’re also partnering with our

proprietary workforce system called

suppliers to gain an understanding of

QUANTUM. The QUANTUM Platform

what they are experiencing in the market.

acts as a single point of entry to all

We are attending industry conferences

types of workers including contractors,

to learn more about the evolution of the

consultants and full-time employees.

industry, artificial intelligence, chat bot

QUANTUM simplifies the hiring manager

and the gig economy, so that we can

experience and enables AGS’ clients to

be better prepared.”

make data driven/fact-based decisions w w w.suppl yc ha i ndi gi ta l. com


ALLEGIS GLOBAL SOLUTIONS

more efficiently. Backed by robust data and the consultation of a talent advisor, QUANTUM has created a whole new user experience for hiring managers and is improving time to fill, cost and quality. “AGS’ talent advisors can work with the hiring managers to understand what their tasks and business objectives are and then create and develop a resource plan based on those specific needs. This approach coupled with client-specific data, comparative benchmarks and external market insights ensure that our hiring managers have evaluated the options 108

and they have been advised on the best talent in the right location for the best price”, she says.

JANUARY 2019


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One example of how QUANTUM creates efficiency – “It helps to highlight quality candidates that will be coming available and allows them to be redeployed within the same company, rather than them ending an assignment and having them sit on the bench to wait for another opportunity to come along. For example, if a particular candidate is rolling off of an assignment and is perfect for another opportunity within the same organization, we can redeploy them and have them back to work the next day with a simplified onboarding process,� says Hough. Implemented last year, QUANTUM is already showing great results: better than 50% reduction in time to fill, time to submit went from an average of 48-72 hours down to less than a day (usually a few hours) and an improved user experience through technology and the interactions with the talent advisors. By removing the antiquated process of waiting to see what talent is out there or waiting for a hiring manager to detail their needs, AGS can provide access to the best talent of today and tomorrow. This is but one example of how AGS has transformed its procurement process through technology. Hough points to the implementation of artificial intelligence that helps suppliers with their pre-screening processes and w w w.suppl yc ha i ndi gi ta l. com

109


ALLEGIS GLOBAL SOLUTIONS

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“From an operational perspective our clients and our operations can identify trends and start forecasting. Our suppliers that have access to this system they’re able to see how they’re performing in comparison to their competitors in that particular program” — Erin Hough, Senior Manager, North American Supply Chain at Allegis Global Solutions

111

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ALLEGIS GLOBAL SOLUTIONS

112

removing “black holes” that seem to

ed scorecards that provide real-time

exist after candidates are submitted.

performance analytics. “From an

Another key technology that AGS now

operational perspective, our clients

utilizes is the ACUMEN system. The

and our internal teams can identify

ACUMEN system is a platform that

trends and start forecasting. Our

displays and monitors key performance

strategic suppliers have access to this

indicators across the entire AGS

system and they’re able to benchmark

ecosystem of suppliers, clients and

their performance in comparison to

AGS’ internal teams. It highlights spend

their competitors within a particular

activity, as well as quality and speed

program,” says Hough.

metrics for a program. With this tool, AGS has been able to create automatJANUARY 2019

“It also gives our program officers, our clients, and our suppliers the


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113

opportunity to make immediate changes

change and approach our clients with

as they start to see trends going in the

strategy and innovation by implement-

right or even the wrong direction.”

ing technologies such as ACUMEN

Industries all around the world will

and QUANTUM. This will allow us to

continue to evolve and so too will the

continually impact the lives of others by

skillsets needed to serve their needs.

matching great talent to great organi-

AGS embraces these changes by

zations,” says Hough.

providing universal access to all forms of talent. The ACUMEN and QUANTUM systems are two examples of this. “We must continue to position ourselves as thought leaders in our industry, embrace w w w.suppl yc ha i ndi gi ta l. com


University of Saskatchewan: TRANSFORMATION WITH A RELIABLE TEAM WRIT TEN BY

SOPHIE CHAPM AN

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PRODUCED BY

ARRON R A MPLING

JANUARY 2019


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U N I V E R S I T Y O F S A S K AT C H E W A N

116

As the University of Saskatchewan moves away from manual operations to new technologies, a skilled procurement team remains essential, says Director of Enterprise Procurement, Richard LeBlanc

R

ichard LeBlanc joined the

bought something that helped

University of Saskatchewan a

enhance their experience, their work,

year ago when a new position

or their research,” LeBlanc notes.

as Director of Enterprise Procurement

With the university spending

was created to modernize the estab-

approximately $400mn (CAD) per year,

lishment’s procurement operations.

effectively managing procurement is

Procurement supports diverse areas,

vital. The university has recently

enabling the day-to-day running of

released its strategic plan for 2025,

most of the campus’ administration.

featuring pillars and aspirations which

“From students in the classrooms and

are guiding the procurement team’s

lecture halls to labs and agricultural

ongoing efforts. As well as an almost

research, members of my team have

entire overhaul of how procurement

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117

processes are managed, the universi-

with the communities that support us

ty-wide strategy covers projects that

on the business side.”

align multiple departments. “Some of

As well as reconciliation efforts,

the key themes of our vision includes

the vision targets modernization and

the indigenization of the university;

the introduction of new technologies,

we’ve been working on a procurement

which marks a transition from manual

strategy for indigenous business for

processes within the procurement

several months,” says LeBlanc. “It

department. Several concepts have

aligns with the university’s main

been suggested as alternatives to the

objectives and helps us further

team’s current manual activities, with

advance the university’s reconciliation

a focus on automation and streamlining.

efforts, as well as strengthen our ties

These ideas, which LeBlanc stresses w w w.suppl yc ha i ndi gi ta l. com


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“From students in the classrooms and lecture halls to labs and agricultural research, members of my team have bought something that helped enhance their experience, their work, or their research” 119

— Richard LeBlanc, Director of Enterprise Procurement have all derived directly from the

being currently underway, others

team itself, have led to projects varying

are “a little bit broader in scope” –

in scale: from improving processes

however, even with an end in sight

and policy work to integrating a risk

LeBlanc stresses the importance of

framework. Communications and plan

always looking forward. “In regards

engagement functions will also be

to modernization, I think it is a journey

updated to improve the adoption rate

that should never end. If you look

of university-wide contracts. By modern-

back at the last five years, some of the

izing the process whereby stock is

enhancements, the new capabilities,

replenished in the facilities warehouse,

and the technologies have advanced

the team has successfully reduced

so much. You’ve always got to keep

buying time by approximately 20%.

growing and stretching in order to

Despite many of the team’s goals

take advantage of those advances, w w w.suppl yc ha i ndi gi ta l. com


U N I V E R S I T Y O F S A S K AT C H E W A N

$1bn Approximate revenue

22,400 Approximate number of students

120

1907 Year founded

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or else you will just stagnate.” Essential to the university’s procurement transformation was the introduction of a procurement modernization working group, which has collected representatives from across campus. Through collaboration with the university’s Information and Communications Technology (ICT) group, the team has been able to better collect and store financial data. With greater access to data, the university has noticed an increase in efficiency and improved objectives with clear targets. “They’ve managed to pull all this information together for us and make it easy to gather

121

a complete picture, and then analyze that. They’ve been working on improving some of the systems that we do use to make the team’s job easier and more efficient.” With key targets in sight, it is easy to keep members of staff motivated, LeBlanc reveals. The department has identified 15 categories for improvement, with staff constantly highlighting developments that could be made within their operations. LeBlanc notes the importance of ensuring any new processes or technologies that are introduced are compatible with the department remarking that a fundamental aspect of his role it to “make sure the team feel like changes w w w.suppl yc ha i ndi gi ta l. com


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“In regards to modernization, I think it is a journey that should never end” — Richard LeBlanc, Director of Enterprise Procurement

123

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U N I V E R S I T Y O F S A S K AT C H E W A N

are made with them, not to them”. “They’ve come up with a ton of ideas to improve our operations, he continues. “A lot of these are just little things that make the client’s life a little bit easier or better, or eliminate the need to go back to the client and improve time efficiency. This allows us to get the job done right the first time. The team is a constant source of ideas and energy, and they’re very invested in the work that they do. If we have a good idea, they’ll help build it up. If we have a less than optimal idea, they’ll help us 124

strengthen it by identifying the challenges within it. They’re very engaged and committed and that makes it easy.”

“You’ve always got to keep growing and stretching in order to take advantage of those advances, or else you will just stagnate” — Richard LeBlanc, Director of Enterprise Procurement JANUARY 2019

As well as the focus on efficiency and using technology to streamline, the university has highlighted sustainability as a key target under its vision. With operations underway to improve the procurement team’s environmental impact, such as focusing on the materials selected when sourcing in order to reduce the campus’ climate footprint, the university is also targeting financial sustainability and sustainable business practices. The establishment’s procurement operations have


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traditionally centered on a decentral-

from identifying issues to generating

ized model, with each business unit

the concepts. With a long way to go,

having its own supplier base. However,

LeBlanc looks forward to continuing to

in efforts to streamline buying and

build upon the department’s positive

costs, the team are turning to a more

energy and introduce new operations

centralized approach.

that complement them.

Working within the collegial environment of a 100-year-old campus, LeBlanc has a big task ahead of him to bring processes up to date. The director has attributed the successful changes within sustainability and technology to the work of the team, w w w.suppl yc ha i ndi gi ta l. com


126

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Fuelling rapid growth with an innovative procurement transformation

127

WRIT TEN BY

L AUR A MULL AN PRODUCED BY

RICHARD DURR ANT

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U i PAT H

We speak to UiPath’s Head of Global Procurement, Catalin Lupu, to discover how a cutting-edge procurement transformation is helping to enable the firm’s exponential growth 128

I

t seems that when it comes to robotic processing automation (RPA), the name on everyone’s lips is UiPath. The American

firm has achieved a lot in its short history. At its genesis, UiPath was just a team of 10 based in Bucharest but now it’s headquartered in New York City, boasting 30 offices in 16 countries and more than 1,700 employees. “‘Growth’ is the key word at the firm,” points out Catalin Lupu, Head of Global Procurement, and the technology community seems to agree. The firm was listed 26th on Deloitte’s Technology Fast 500 – a ranking of the crème de la crème in the technology, media, telecommunications, life sciences and energy tech companies in North America. In 2018 alone, JANUARY 2019


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UiPath closed its Series B and Series C financing rounds totalling US$418mn, lifting the company’s valuation to an impressive $3bn. UiPath has, by all accounts, been a gleaming example of how to scale a tech startup and, for Lupu, this is thanks in part to the firm’s robust procurement function. Before joining UiPath, Lupu cut his teeth in procurement with time at firms like Renault and the Goodyear Tire & Rubber Company respectively. Through these roles, Lupu honed his skills and says that it provided him with a “global view” which enabled him to “understand the challenges and steps needed to scale up a business”. This proved to be a critical skill when he later moved to UiPath. UiPath began as a small startup

“‘Growth’is the key word at the firm” — Catalin Lupu, Head of Global Procurement, UiPath

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function should look like in a year from now. That’s where it started.” UiPath didn’t think small; it crafted its roadmap with a global mindset from the offset. Rather than confining itself by regions, with a procurement spend of around

it standardised its procurement function

$2-3mn but CEO Daniel Dines had

at a global level.

big ambitions. He wanted UiPath to

Compliance was also a crucial factor.

be a market leader. To kick off this

“The policies are shaped around the

growth, the firm first had to convince

business’ needs and compliance

the market of the merits of RPA and

because when you’re working with

build a strategic roadmap. “We basically

clients like Fortune 500 firms, we

started from scratch,” explains Lupu.

wanted to make sure that everything is

“I like to describe it like building a house.

auditable, that they’re doing every-

First of all, we laid the foundation. In

thing by the book. We also didn’t want

procurement, we decided our policies,

to make it too difficult to manage or

how we should buy, what architecture

too granular for approvals so we

we should use, how the procurement

implemented procurement cards.” Afw w w.suppl yc ha i ndi gi ta l. com

131


U i PAT H

ter laying the foundation, UiPath turned its attention to building the walls and the structure. For procurement, this meant implementing the systems. “We wanted everything to be digitalised so, for instance, we implemented procure-to-pay (P2P) and finance modules from Net Suite,” notes Lupu. “We wanted to drive the company forward, we wanted to automate and to liberate our people from repetitive stuff so that they could be more focused on strategic tasks like emailing a new supplier. It also enabled us to deliver analytics at a global level. I think that is the holy grail 132

and it’s where a lot of companies struggle.” By implementing a cloud-based solution, this not only made the move from offline to digital seamless, it also allowed UiPath to get access to purchase orders (POs) on all devices – ideal for any global, fast-moving firm – which were easily integrated with other applications. A key task for any company, particularly in the IT sector, is attracting, retaining and training the right talent and it was another key facet in UiPath’s transformation story. “Bringing the right people is essential when scaling,” reflects Lupu. “We built up a culture and a team that’s ready to scale and that’s prepared for any challenges the clients may have. “They’re very focused on the client JANUARY 2019


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133

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

Catalin Lupu Catalin Lupu is Head of Global Procurement of UiPath. He spent all his career in Procurement covering global roles within the automotive industry. Catalin joined UiPath in 2017 with a clear mission to build up a global procurement organization for the first Romanian Unicorn. Passionate about Robotic Process Automation, which he considers a disruptive enterprise technology for Procurement, his new challenge is to scale and automate all procurement processes for UiPath.

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U i PAT H

CLICK TO WATCH : ‘UIPATH GO! – AUTOMATION MADE EASY’ 134 needs, and internally it’s been quite

To tackle this, UiPath’s

a successful journey for them, because

procurement team have

most of them come from different

worked hard to develop

industries. We looked at their potential

strong industry links and

as well as their skills.”

vendor partnerships that

UiPath has quickly become synonymous with the RPA market, acquiring

are able to keep pace with the firm’s global vision.

an average of six new customers per

“We don’t see these firms as suppliers

day. Yet, this rapid growth hasn’t come

or vendors, they’re partners because

without its challenges. As the first

when we try to go global, we need

footprint has expanded it had to establish

partners that will stick by us, who will

new real estate, pay rolls and recruit-

insulate us, and be able to adapt to

ment in different geographies.

the market,” Lupu explains. Take the

“Growth is a good problem to have,”

issue of real estate, highlights Lupu.

laughs Lupu, “but it’s still a challenge.”

With a footprint spanning from London

JANUARY 2019


EUROPE

“Bringing in the right people is essential when scaling” — Catalin Lupu, Head of Global Procurement, UiPath

to Tokyo, Bengaluru to Singapore,

create a presence there and start

offices are a top priority for UiPath

hiring. We have a global partnership

and therefore it has developed strong

with We Work, which provides a

relationships to make this a reality.

single point of contact for us globally,

“We have a big spend on real-estate,

which is a robust model when you

so we have a very interesting and

need a presence across the world.”

successful strategy,” he says. “When

UiPath has sought out partners

we enter a new country, we start off in

which have an international presence

co-working space so that we can

yet local knowledge. It found this with w w w.suppl yc ha i ndi gi ta l. com

531


U i PAT H

partner CDW who helped to enhance the firm’s IT management. “One of the challenges when growing globally is finding global partners who can meet this footprint and deliver what you need, whether it’s in Europe, the US, Asia or in India,” notes Lupu. “We found that CDW was one of the few in the market who could achieve this and helps us manage the IT span and delivery. They helped us centralise all the hardware that we were buying individually in countries by creating synergies. They understood that we needed a global single point of contact which is hands on.” 136

As the role of procurement morphs

JANUARY 2019


EUROPE

137 rapidly into a business enabler, rather than a back-office function, it’s also getting more digitally-savvy. Just as its users have adopted UiPath’s RPA platform to take their business to the next level, UiPath’s procurement team are also using its own product. Lupu points out that, by getting robots to automate mundane and repetitive tasks, it allows his team to focus on value-adding jobs. “It automates repetitive work so people can focus on more strategic or creative jobs,” he explains. “RPA doesn’t only apply to procurement or finance. It can be applied to supply chain, it can be applied to delivery, call centres, banking, any industry that’s had repetitive w w w.suppl yc ha i ndi gi ta l. com


U i PAT H

“We found that CDW was one of the few in the market who could help us manage the IT span and delivery” — Catalin Lupu, Head of Global Procurement, UiPath

138

JANUARY 2019


EUROPE

standardised processes which could be automated. That’s why I think it’s very disruptive, because it can apply to any industry.” Lupu believes the procurement sector is undergoing a seismic shift – teams are more focused on return on investment (ROI) rather than savings, the field is also becoming more digitised, and teams are being created based on ambition just as much as their skills. Having built its procurement function from the ground up, procurement has been a pivotal enable of UiPath’s growth and Lupu believes his strategy is a simple but meaningful one. “The main rule is that procurement needs to be smart, it needs to be simple and it needs to be scalable,” asserts Lupu. “Now, we have around 1,700 employees, next year we could have 10,000. I think the keyword now is still growth; we’re in skyrocket mode. Where there is an enterprise market, we need to be there. Our focus now is growing the business and to remain a leader in the RPA sector.”

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139


Leveraging data analytics for procurement transformation

WRIT TEN BY

DA LE BENTON PRODUCED BY

S TUART IRVING

140

JANUARY 2019


AFRICA

141

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MASSMART

Melanie Pike, Indirect Procurement Manager of Massmart, talks digital disruption amidst a procurement transformation

A

s a globally-based competitive regional management group, with a portfolio of differentiated, complementary, focused

wholesale and retail formats, Massmart is well and 142

truly a market leader across South Africa. With nine wholesale and retail chains, as well as a buying division, the Group has more than 400 stores and 500 buying group members across 13 countries in sub-Saharan Africa. Each and every one of those outlets and members is aligned to a shared vision; high-volume and low-cost distribution. Key to cementing this position and a successful, seamless operation across such a vast portfolio, is a solid and robust procurement and supply chain function and a fine understanding of the significant value that direct and indirect spend can bring. “I think that, particularly in multinational companies like Massmart, direct spend has been much more prevalent in everybody’s mind. But I also think a lot of multinationals are quite au-fait in terms of control spend and accountability with regards to direct spend,� says JANUARY 2019


AFRICA

R91.5bn Approximate revenue

1990

Year founded

10,000

Approximate number of employees 143

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AFRICA

CLICK TO WATCH : ‘MASSMART WALMART HQ VISIT’ 145 Melanie Pike, indirect procurement

from my early days at the lower levels

Manager for Massmart responsible for

and that allowed me to understand the

Masscash Retail and Wholesale division.

demands and the requirements at an

“On the indirect spend side of things

operational level,” she says. “I know what

we are still very far behind with regards

I’m talking about and it’s not just a wish-

to recognising the importance and the

ful thinking sort of attitude. I can do it

value in what it can bring to a business.”

with a bit more empathy for the relevant

Over the course of her career in

operational and internal stakeholders,

procurement, one that she openly admits

as well as for external stakeholders.”

she “fell into,” Pike has worked at all

The very idea of procurement, and

levels of procurement in an organisa-

the value it can unlock, has undergone

tion. This she feels has gifted her with

a major transformation over the last

an understanding of the key areas of

decade. Technology has proven a key

a business and more importantly the pain

driver of this change, particularly when

points. “I fought in the trenches a lot

it comes to visibility and accountability. w w w.suppl yc ha i ndi gi ta l. com


MASSMART

146

“On the indirect spend side of things we are still very far behind with regards to recognising the importance and the value in what it can bring to a business� — Melanie Pike, Indirect Procurement Manager for Massmart responsible for Masscash Retail and Wholesale division JANUARY 2019

Businesses all over the world now have greater access to data and analysis as to how, where and why they are spending. Massmart is no different to this, undergoing something of a procurement transformation in order to consolidate its spending and unlock cost savings and greater efficiencies across its entire multi-division portfolio. The company has looked to upgrade its existing procurement platforms and implement a new ERP from SAP to act as one central core system. This centralised system will allow each and every division


AFRICA

to access spend data from one consoli-

happens seamlessly within that division.

dated platform in order to align to one

But it is sort of a staggered approach

shared path that is in line with interna-

that manages the risk and disruption to

tional best practices.

business,” says Pike. “It is quite a process

Implementing a new system across

to manage with lots of people involved

multiple business divisions is not without

at any given time. But I think to have

challenges. Pike recognises this and

a central ERP system of this size,

so Massmart is currently rolling out the

it’s essential for us to all pull together

new ERP system separately across

as a group.”

each business through consolidated

In any form of technology transfor-

teams overseeing each implementa-

mation, it’s easy to become fixated on

tion. “This is so we can look at all the

the technology and the data and neg-

data analytics from each rollout then

lecting the one key component that is

the team engages with each relevant

central to any business, its people. As

division to ensure that that rollout

Pike has already alluded to, collabora-

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

Melanie Pike Melanie is a results oriented, commercially focused supply chain professional specialising in indirect, CapEx/OpEx spend with a proven track record in building and leading a high-performance team across the end-to-end supply chain to improve business unit performance in dynamic, global environment. Centralization of spend, delivering significant cost-saving strategies coupled with sustainable service improvements across a complex global supply chain are her expertise. Melanie has a vested interest in environmentally focused, sustainable green procurement across the construction and property sector.

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147


PROJECT HANDOVER

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AFRICA

“It is quite a process to manage with lots of people involved at any given time. But I think to have a central ERP system of this size, it’s essential for us to all pull together as a group” — Melanie Pike, Indirect Procurement Manager for Massmart responsible for Masscash Retail and Wholesale division

149

tion and pulling together as a group is

from a very hands-on traditional way of

crucial and so Massmart has created

doing things to a modern, digitally

a number of centres of excellence across

empowering way has been embraced

each business division. These centres,

wholeheartedly across the business.”

along with project teams, ensure that

“They can see the analytics coming

each and every person is trained in the

through. Insight is coming through and

right way, equipped with the right skills

it’s enabling everybody to do their jobs

and brought along this transformational

much faster and it’s just much more

journey. “The incentives alone speak for

user-friendly. I think that alone has been

themselves,” says Pike. “The ease of

a great driving force for the business to

information and the ease for everybody

come on board.”

to actually process their work and move

Technology has also transformed w w w.suppl yc ha i ndi gi ta l. com


MASSMART

the stakeholder perspective and experience and once again data is king. Through data, the stakeholder is able to see first-hand the efficiencies and both the existing and potential cost saving opportunities that are enabled through technology. For Pike this represents a true turning point, both in indirect spend and in being able to build procurement as a service portfolio. The tools are there to show that procurement and indirect spend is bringing true value to the business like 150

never before, it’s no longer just hearsay. “Procurement needs to be seen as a service department to the business, especially in terms of indirect spend management, which had not been the case previously,” she says. “Technology has enabled a rebranding of procurement. With that comes all the good stuff that we’ve brought to the table in terms of the digital transformation, such as a capex tool that we are looking to implement in the new year that provides complete visibility and live access to the budget approval process. “Again, this is improving the stakeholder experience. Its more efficient and provides them with quality data JANUARY 2019


AFRICA

Massmart launches sixth solar plant becoming the biggest producer of renewable energy in the South African Retail Sector

151

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153 and analytics and for me it’s a total

ties to grow together. “I think we can

rebrand of what procurement can

listen more to our suppliers in terms of

enable for the business.”

seeking the potential opportunity that

A supply chain and procurement

we’re missing. You need to build your

function can only be as strong as its

relationship, so I believe in going to task

supplier and vendor network. Pike

for my vendors or suppliers just as

understands this and is a strong believer

much as I expect them to do the same.”

in Supplier Relationship Management

2019, Pike admits, is both an exciting

(SRM). Early in her procurement career

and challenging year for Massmart as

she was driven by one message; you

it will see the final stages of the SAP

are nothing without your vendor.

implementation as well as the continued

“Without a good supplier, you don’t have

transformation of the procurement and

a business,” she says. Pike believes

indirect division. Massmart will look to

that everything needs to be done in

better manage its capex spend through

collaboration and that Massmart along

e-auctions and reverse auctions as well

with its vendors must seek opportuni-

as continuing to embrace the digitisation w w w.suppl yc ha i ndi gi ta l. com


MASSMART

154

JANUARY 2019


AFRICA

“It’s more efficient and provides them with quality data and analytics and for me it’s a total rebrand of what procurement can enable for the business” — Melanie Pike, Indirect Procurement Manager for Massmart responsible for Masscash Retail and Wholesale division of its processes while moving services online. “We will continue to gather more information and data and make sure that from a strategic point of view, we’re leveraging Massmart as a group and focusing on total cost of ownership rather than just each individual vendor and a price. We areooking at restructuring our relationships with our key vendors at Massmart as a division,” she says. “It’s just using strategic sourcing as a division to drive value creation, not at some divisional level but at group level. I think what’s going to be the key driver for us over the next year, is to change that mindset from divisions to group. So, using consolidated data and standardisations as a group, and using that to consolidate, leverage and drive all the good practices.”

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155


156

TRANSFORMING PROCUREMENT IN A DIGITAL WORLD WRIT TEN BY

DA LE BENTON PRODUCED BY

S TUART IRVING

JANUARY 2019


AFRICA

157

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Nicky Hanson, Senior Procurement Manager in South Africa, discusses how business can transform procurement in order to succeed

O

ver the past ten years, procurement as an industry sector has radically transformed from its traditional position as an afterthought

to a business. More and more businesses are waking up to the notion that procurement has become a far more integral cog in enabling strategic growth and innovation for business and this is something that Hanson recognises and has seen first-hand in her 158

procurement career in South Africa. “Procurement departments are often called prevention departments, or used to be historically in any case,” she says. “The key to success for us and other companies is to really try to break away from the siloed ways of before and collaborate more to bring procurement into the wider business.” Hanson will often work with other stakeholders around tenders and purchasing to realise and better identify where procurement can ascertain the best value for money without compromising on the quality of products. Having worked for the British Military in logistics and supply chain, particularly in direct procurement and local resourcing, before moving to South Africa and working with a number of F&B companies, Hanson has an experienced insight into understanding JANUARY 2019


AFRICA

159

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160

“The key to success for us and other companies is to really try to break away from the siloed ways of before and collaborate more and bring procurement into the wider business” — Nicky Hanson, Senior Procurement Manager

the nuances of challenging market dynamics. This experience, she feels, gives her the necessary edge required to act fast and respond to the many challenges that building or transforming a procurement function in a huge market like South Africa will bring. “You have to think on your feet. You have to overcome challenges from unforeseen and last-minute changes and requirements, that you just have to deal with,” she says. “As much as we always want to have a set structure and procedures in place, it doesn’t always work that way in the real world.

JANUARY 2019


AFRICA

CLICK TO WATCH : ‘CHARTWELLS’ 161 Operational challenges always come in between and you need to address that as quickly as you possibly can in order to succeed and grow.” A common challenge across the global supply chain and procurement industry is one of vendor management. As the function continues to become more central to business operations and growth, it is often the case that procurement functions have fallen by the wayside and no longer meets the demands of the business, which proves costlier by the second. w w w.suppl yc ha i ndi gi ta l. com


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With little to no structure, no approved vendor or product lists and an outdated ERP System in place,

savings and foster more collaborative and effective relationships.” Over the last few years Hanson can

Hanson recognises the challenge

look at a number of key successes

that lay before many people in pro-

across the industry and she feels the

curement. The goal then becomes

most important proof point for any

one of streamlining, optimising the

company is the optimisation of those

entire procurement function and

supplier and vendor relationships.

consolidating volumes in order to

“How do we stand out? How do we get

establish better pricing.

people that want to work with us?

“There were more than three and

There has to be a collaboration and

a half thousand vendors that we had

a partnership between clients and

previously worked with,” says Hanson.

suppliers, and we as a team have really

“After an initial clean up, we narrowed

strived to work towards that.”

that down to 900 and we are con-

“For me, it’s proven very successful.

stantly working with that supplier base

I’ve managed to really optimise our

to improve compliance, realise cost

relationships and get some very unique w w w.suppl yc ha i ndi gi ta l. com

163


structures and agreements with the suppliers, just by changing the way that we would normally operate.” “The SAP model that is widely used was the correct model then but not for the industry today,” she says. “Back then it was purely financial but now we are looking at warehousing and distribution and vehicle fleets and a whole array of things that just didn’t work with that older model.” “With new ERP systems now in place, it’s created other opportunities and benefits for business. If we can tap into

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AFRICA

165 those and open the business, the pricing

empowers its employees to innovate

will become better, the support will

and go above and beyond in order to

become better, and there will be a more

succeed. She does, however, under-

structured flow.”

stand that the business leaders

A transformation of any size, particularly one that involves a complete restructuring of an operating model

themselves have to do their part in order to enable this. “I do think we need to invest more in

and technology system, requires the

skills development as a profession.

buy-in from the entire business. In

We do our best to attend procurement

order to achieve any form of progress

conferences and trade shows to gain

and indeed growth, Hanson notes that

insight into how the wider industry is

businesses have to invest in the biggest

develo-ping a modern-day procurement

resource at their disposal, the people.

professional,” she says.

Hanson is a firm believer in creating a workplace that challenges and

Ultimately, it’s about empowering the individual and ensuring that each w w w.suppl yc ha i ndi gi ta l. com


“I think there is still a lack of understanding as to the full value of the procurement department and the benefits it can bring” — Nicky Hanson, Senior Procurement Manager 166

JANUARY 2019


AFRICA

and every person understands their role and how important they are. “There’s a lot of other ways to incentivise people. It doesn’t always have to be monetary. That reflects on the business because they feel valued, they can see the role that they have and will continue to play is recognised.” As businesses continue to redefine their procurement functions, Hanson looks at what businesses have achieved to date, but she understands that no transformation can ever truly end and that they must continuously look at their procurement function and identify ways they can improve. For Hanson, that starts with educating and making the wider business fully realise the true value that procurement can bring. “I think there is still a lack of understanding as to the full value of the procurement department and what benefits it can bring,” she says. “If we can continue to improve that, through notable successes, and make sure that we’re more than just the fixer of problems then it would represent a great shift within the business. We’re not quite there yet, but if we continue along this path we will get there.”

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168

JANUARY 2019


MIDDLE EAST

Transforming supply chain strategies at Petro Rabigh WRIT TEN BY

SE AN GA LE A-PACE PRODUCED BY

HE Y K EL OUNI

169

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PETRO RABIGH

Michael Gustafson, General Manager of Material, Procurement and Contracts discusses the procurement methods that Petro Rabigh is utilising through significant change in Saudi Arabia

170

I

n a country driven by change amidst the incoming Saudi Vision 2030, companies in Saudi Arabia have an obligation to

adapt to and embrace the latest trends in order to thrive in a competitive petrochemical industry. With ambitions of becoming one of the most profitable refinery and petrochemical plants in the world, Petro Rabigh knows first-hand just how vital the next few years are to the future of Saudi Arabian businesses. Originally formed in 2005 as part of a joint venture between Saudi Aramco and Sumitomo Chemical, Petro Rabigh produces 18.4mn tons per annum (mtpa) of petroleum-based products and 2.4mtpa of ethylene and propylene-based derivatives. With the plant’s Phase I and recently launched Phase II together valued in the region of $20bn, Michael Gustafson, General Manager of Material, Procurement and Contracts, believes that these JANUARY 2019


MIDDLE EAST

“We have two incredible foundation partners in Saudi Aramco and Sumitomo Chemical; a terrific partnership with aligned goals that have brought the strengths and diversity of two great organisations into this project” — Michael Gustafson General Manager of Material, Procurement and Contracts

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171


Working for the futu

Founded in 1968 as an industrial service and supply unit, Eastern Msar is recogniz of the biggest and leading business conglomerates in the Kingdom of Saudi Arabi

Eastern Msar provides services to oil & gas, chemical & petrochemical, power, wa mining sectors.

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The company works with leading companies such as Petro Rabigh, Saudi Aramco Aramco JV’s, Sabic, Saudi Electricity Company, Ma’aden and SWCC etc.

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ts round


PETRO RABIGH

foundation partners laid the ground

MAINTAINING PROCUREMENT STRATEGIES

work for the company’s success.

As a way of affirming Petro Rabigh’s

“We have two incredible foundation

174

commitment to the Saudi Vision, the

partners in Saudi Aramco and Sumi-

company has confirmed the imminent

tomo Chemical; a terrific partnership

arrival of The Petro Rabigh Phase II

with aligned goals that have brought

expansion project, which provides an

the strengths and diversity of two

even more diversified product slate

great organisations into this project,”

with the implementation of a number

says Gustafson. “Both companies

of new high added value petrochemical

possess a deep set of technical and

products. The project is set to cost

commercial experiences and world

approximately $9.4bn with capital

class product mix that continues to

project debt funding. Gustafson

improve with expansions to capitalize

outlines the procurement strategy his

on the strategically placed location

company is utilising in this exciting

and resources.”

new era for the Kingdom.

JANUARY 2019


MIDDLE EAST

“People think of procurement as being some sleepy, back office support group – but it’s not. You’re actually on the front line and if this spare part, chemical additive, or catalyst doesn’t arrive on time, you could shut down a facility” — Michael Gustafson General Manager of Material, Procurement and Contracts

175


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MIDDLE EAST

“We’ve almost finished Phase II to

handling and procurement all housed

expand our business. It’s like you’re

under the same roof. Gustafson

running on a treadmill and the speed

maintains its current procurement

is set at a six-minute mile but you’re

strategy is to enhance its existing

used to running an eight-minute mile,”

arrangements.

he explains. “People think of procure-

“In general, the majority of our

ment as being some sleepy, back

strategy is to push our agreements

office support group. But, it’s not.

and expand into MRO and chemical

You’re actually on the front line and if

agreements,” he explains. “This is

this spare part, chemical additive, or

opposed to the ongoing spot buying

catalyst doesn’t arrive on time, you

that takes place, which decreases the

could shut down a facility.”

time it takes to turnaround, as well as

Procurement is certainly an area that Petro Rabigh prioritises. The

the cycle time.” In a bid to handle its supply chain

firm has three different departments

items more effectively, Petro Rabigh

operating in that area of its organisa-

has made the decision to split into

tion; with contracting, material

two separate groups.

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

Michael Gustafson Having joined Petro Rabigh in 2017, Michael has used his 25+ years of experience and knowledge from working in commercial and business development, acquisitions, divestiture and supply chain management to develop the supply chain infrastructure for the $20bn Refinery & Petrochemical business in Saudi Arabia. Michael has outlined his intention for Petro Rabigh to embrace the incoming Saudi Vision 2030 and is responsible for driving the company’s procurement strategy.

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177


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MIDDLE EAST

CLICK TO WATCH : PETRO RABIGH ENRICHING LIFE 179

“The group here in Saudi Arabia handles all the inbound supply items and we have a separate organisation that is responsible for the finished goods and products. It’s primarily more of a marketing and sales function,” explains Gustafson. “Alongside that, there’s the production planning which coordinates what the needs of the refinery and petrochemical business are, as well as the requirements of our customers. I believe it’s very much a collaborative effort to enable the supply chain to get going.”

“The group here in Saudi Arabia handles all the inbound supply items and we have a separate organisation that is responsible for the finished goods and products. It’s primarily more of a marketing and sales function” — Michael Gustafson General Manager of Material, Procurement and Contracts

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HOUSE OF ENERGY & INDUSTRIAL TECHNOLOGIES Serving the Oil & Gas industry for over 13 years HOEIT prides itself as a proud partner to Petro Rabigh and a contributor to the growth of the Saudi Economy.

Continuously growing its expertise to help better serve its markets, HOEIT is associated with world leaders in supply and solutions.

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181

With the company investing almost $400mn annually on its supply chain

tives, all the way to papers and pens. We cover the full spectrum.”

activities, Gustafson is well aware just how big Petro Rabigh’s supply

EMBRACING SAUDI VISION 2030

chain is. “The magnitude of it is that

In a bid to reduce Saudi Arabia’s

it spans to over 2,000 suppliers

reliance on oil and diversify its economy,

worldwide that are split evenly

Crown Prince Mohammad bin Salman

between America, Asia and Europe,”

announced plans in 2016 to launch

says Gustafson. “Of those, we have

Saudi Vision 2030. With around 80

around 1,200 really active, highly

projects expected to be completed in

consumable suppliers. They deal

Saudi Arabia by 2030, Gustafson

with everything from highly danger-

believes it’s an interesting time to be

ous explosive and chemical addi-

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PETRO RABIGH

C OMPA N Y FA C T S

182

Rabigh Refining & Petrochemical Co. — Petro Rabigh — was founded in 2005 by the Red Sea in the Kingdom of Saudi Arabia as a joint venture between Saudi Aramco and Sumitomo Chemical from Japan. The original 10-billion dollar Phase I of the plant is the world’s largest single-phase integrated refining and petrochemicals complex, making the company one of the Kingdom’s largest producers of polypropylene, polyethylene and mono ethylene glycol, and the sole producer of propylene oxide in the Middle East. The Phase II expansion, which came into full operation in early 2018, diversifies the product slate with new high value-added petrochemicals aimed at making the Kingdom’s downstream industry more competitive and affording potential investors the opportunity to manufacture new products and create new jobs and skills.

JANUARY 2019


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183

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Axens is a leading global

OIL REFINING

provider of technologies, catalysts, adsorbents, services and equipment.

PETROCHEMICALS

Axens solutions are used at major industrial plants around the world.

RENEWABLES & ALTERNATIVES WATER

SUCCEED TOGETHER

GASES

axens.net/blog


MIDDLE EAST

“These are exciting times for Saudi Arabia.When I tell my friends about it back home in America, I feel like I’ve got a front row seat,it’s a major transformation in the Kingdom and these are fabulously exciting times.There are things going on in Saudi Arabia that are truly historical” — Michael Gustafson General Manager of Material, Procurement and Contracts

185

“These are exciting times for Saudi Arabia. When I tell my friends about it back home in America, I feel like I’ve got a front row seat,” explains Gustafson. “It’s a major transformation in the Kingdom and these are fabulously exciting times. There are things going on in Saudi Arabia that are truly historical.” Petro Rabigh has responded to Vision 2030 by embracing all 24 areas highlighted in the vision to provide a thriving economy, a vibrant society and an ambitious nation for the Kingdom of Saudi Arabia. In order to meet these w w w.suppl yc ha i ndi gi ta l. com


Range of products and services

Mechanical seals for pumps

Mechanical seals for agitators

Mechanical seals for compressors

Seal supply systems

Magnetic couplings

Carbon floating ring seals

Compression packings, Gaskets

Expansion joints

Special products

TotalSealCare – Modular seal service

Al Fahya Industrial Area, Azizyah Road | P. O. Box: 77148 | Al Khobar: 31952 | Saudi Arabia | tel: 00966 13 8906111 www.eagleburgmann.sa


MIDDLE EAST

requirements, Petro Rabigh has rolled

doing a great job,” says Gustafson.

out a number of initiatives such as plans

“We also have several women within

to increase women’s participation in the

the supply chain organisation and we

workplace, supporting improvements

intend to hire more in the future.”

to logistics and building relationships ments. However, Gustafson insists

FORMING KEY STRATEGIC PARTNERSHIPS

Petro Rabigh isn’t finished yet.

Establishing and maintaining key

for additional direct foreign invest-

“We could and will do more in the

partnerships are vital to any success-

area of women participating in the

ful business. Over the last five years,

workplace; I just hired the first female

Petro Rabigh has collaborated with

secretary at Petro Rabigh and she’s

Germany-based logistics firm, DHL,

187

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A world leader in sulphur processing and handling IPCO, previously operating as Sandvik Process Systems, is a world leader in the design, manufacture and installation of sulphur solidification and handling plants. We supply equipment for every stage of the process, from degassing and filtering of molten sulphur through a range of different solidification options, to downstream conveying, storage, reclamation, bagging and ship, rail or truck loading. Our ranges include the renowned IPCO RotoformŽ, the world’s favourite premium sulphur solidification process with more than 700 systems supplied, and our high capacity rotating drum granulator, both delivering a premium quality formed product. IPCO sulphur processing systems are in operation around the world and we support them all through a global service network.

ipco.com


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189

to provide all of its inbound logistics activities, in addition to operating its warehouses. However, having consulted their Key Performance Indicators (KPIs), Petro Rabigh recently split the contract with Kuehne & Nagel to handle all of the company’s international forwarding activities. “We’re very excited with this joint effort between the two companies. It will enable us to draw on the strengths of each company to ensure a smooth supply chain process,” says Gustafson.

“Rabigh PlusTech Park provides for 37 investors, including nine manufacturing companies that have started production, eight that are under construction and over 30 under negotiations” — Michael Gustafson General Manager of Material, Procurement and Contracts

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HERMETIC Pumpen GmbH - Germany Sealless Canned Motor Pumps

‫لزع ماظن نودب تاخضملا ايجولونكت‬

HERMETIC-Pumpen is the world-leading manufacturer of sealless pumps for severe toxic or hazardous applications, which require zero leakage tolerance.

The range of HERMETIC pumps covers canned motor pumps, magnetic drive pumps, and vacuum pumps. HERMETIC manufacturers standard pump designs and a variety of special designs engineered for specific customer needs, including ATEX explosion proof and API-685 compliant designs for the Oil & Gas, Petrochem and Chemical industries. HERMETIC pumps operate in environments with fluid temperatures that span from –160 °C up to +480 °C, system pressures up to 120 MPa and canned motor powers from 1 kW up to 690 kW.

hermetic.support@mact.com.sa

Find out more online

NETZSCH Pumpen & Systeme GmbH - Germany

NEMO® Progressing Cavity Pumps

TORNADO® Rotary Lobe Pumps

NETZSCH is the worldwide market leader with their range of application engineered Progressive Cavity Pumps, Rotary Lobe Pumps and Multi-Screw Pumps for the transfer and handling of liquids with high viscosities and high solids content for various applications in the Oil & Gas, Petrochem, Industrial, Mining, Sewage Treatment and Industrial Waste industries.

netzsch.support@mact.com.sa

Find out more online

MACT Al-Khobar 31952 Kingdom of Saudi Arabia Tel: +966 13 882 2233 x133 sales@mact.com.sa


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$10bn Approximate revenue

2005

Year founded

3,600 Approximate number of employees

191

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How have we maintained top sales in the logistics equipment field since our founding in 1972? Chiba Sogyo has continued to support the distribution which is the core of our economic activities. Ever since our founding, we have constantly led the logistics equipment industry. “How can we satisfy customer needs to the greatest possible extent?” – To achieve this goal, we have accumulated knowledge and expertise, and then steadily incorporated this wisdom into our services. CS JAPAN CO., LTD 2-2-18 Tmasakinsi, Ichihara City, Chiba, Japan 2900044 Tel: +81-436-23-0511 Fax: +81-436-23-1611 www.csjapan.net kawarai@csjapan.net

Our Service • Wooden Pallets • Import Pallet • Woooden Frame • Steel Logistics Packaging Equipment • Plastic Pallet • Ship-Building • Sales Warehouse


193

“They are our two primary partners that we’ve got on the logistics side and they’re absolutely essential to us. Our partners have to over-communicate and be joined with us at the hip. DHL and Kuehne & Nagel are two world class organisations and they’ve done a great job.” Gustafson affirms how much Petro Rabigh relies on the consistent performance of its suppliers. “The notable suppliers that have been consistently reliable for our

“When things start to change,you’ve got to be able to adapt very quickly.Whether it’s changing your grades or the type of product mix that you can develop” — Michael Gustafson General Manager of Material, Procurement and Contracts

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The Perfect PARTNER Synergies Tech Engineering Division caters to customer requirements for Complete MRO packages. With procurement offices in USA and Europe and sales offices in UAE, Oman and Saudi Arabia, we stay committed to providing prompt offers from worldwide suppliers backing it up with on-time delivery and after-sales support.

Our Site

About us

OUR INDUSTRIES: • Petrochemicals • Oil & Gas • Metallurgy • Environmental • Chemicals • Food & Beverage • Printing Consumables • Other

Products

HQ: Unit 101 & 108 Mazaya Business Avenue BB2 Jumeirah Lake Tower Dubai United Arab Emirates P.O Box 114477 KSA Branch Office: Jawhara Al Tabishi Building Suite no. 9, 2nd floor King Faisal Bin Abdul Aziz Road Al Tabishi, Dammam 32415-7184


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business include the likes of CS Japan,

industries in Saudi Arabia. Located on

Gold Wing, Axens, EableBurgmann

a site adjacent to the Petro Rabigh

and SPIG. We’re highly dependent on

refinery, it provides a place to convert

the performance of these five out-

petrochemical products into down-

standing suppliers/vendors in

stream products and offer substantial

particular, as well as to

investment opportunities to local

the other 1,200 active suppliers in

and foreign investors in conversion

our network.”

industries. Gustafson believes it’s

The introduction of Petro Rabigh’s

an ideal investment opportunity.

collaboration with Rabigh PlusTech

“This large scale, secure complex

Park saw it become the first private

also houses the Sumitomo Chemical-

industrial estate for conversion

run Rabigh Plastic Technical Centre

195

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Building

Dreams to

We’re

Create your own World

Business Tribune Global Co. Ltd. is present in KSA over last 20 years. BTGC undertakes Supply & Services for all types of Industrial Equipment’s & Spares, Effective Technical Support/Services, Power Automation Sales & Service, Procurement Solution and General Trading across KSA.

OUR BRANDS:

KPC

Since, its formation in 1997, BTGC has continuously grown in the market as a leading Technological Solution Provider with diversified interest in the Supply & Services of various Industrial and Engineering products.

+966 13-8560528 +966 13-8560810 www.btc-ksa.com info@btc-ksa.com Our BTGC Management Team.

Business Tribune Global Co Ltd. P.O. Box 12532, 4237 Ad Danah King Abdulaziz Road, Dammam 32437, Kingdom of Saudi Arabia


MIDDLE EAST

“The vision for the future is to continue to make the Material, Contracting and Procurement organisation a great place to work” — Michael Gustafson General Manager of Material, Procurement and Contracts that provides tenants with technical support and training in plastic processing technology, warehousing, plug and use utilities and feedstock

197

supply agreement opportunities for sustainable, competitive prices,” says Gustafson. “Rabigh PlusTech Park provides for 37 investors, including nine manufacturing companies that have started production, eight that are under construction and over 30 under negotiations.”

SUSTAINING A SUCCESSFUL FUTURE Petro Rabigh has begun to explore options to fully automate its warehouse operations and review the way they receive, monitor and move spare parts around. This ability to consistently adapt to change is something Gustafw w w.suppl yc ha i ndi gi ta l. com


PETRO RABIGH

Our Website Contact us JANUARY 2019


MIDDLE EAST

199

son places a lot of importance on. “In the area of supply chain, I believe we still have work to do in digital transformation,” explains Gustafson.

the moment with climate change and environmental conditions. And if we don’t change, then it’s going to hurt us.” As far as the future is concerned at

“However, in other areas of the

Petro Rabigh, the company has lofty

company there has been much more

ambitions of becoming the best in class

progress made, especially in operations.”

in the Gulf Cooperation Council (GCC)

“When things start to change, you’ve

within the next 18 months. “We have to

got to be able to adapt very quickly.

deliver on the business expectations in

Whether it’s changing your grades or

two areas: 99% availability and on-time

the type of product mix that you can

delivery of materials to support the

develop. You’ve got to stay ahead. We’ve

ongoing operations,” says Gustafson.

got a lot of big changes going on at

“Our processes and practices must w w w.suppl yc ha i ndi gi ta l. com


Tel +966 13 341 0515 | Fax +966 13 341 1052 | E-mail info@goldenwing.com.sa | www.goldenwing.com.sa

Golden Wing has been providing industrial solutions for the petrochemical bulk material and wrapping industry in Saudi Arabia for almost 40 years. The portfolio comprises the installation of total systems for filling, palletizing and wrapping as well as conveyor technology. From its history as an equipment supplier, Golden Wing grew into an EPC contractor. Bagging Machines Filling Machines Net/Gross Weighing Palletizing

Golden Wing glances back at the installation of well over 180 facilities in the Middle East and implements new technologies as a partner to the major industries. These include, for example, palletless stretch hood wrapping technology, in which the film itself is a shipping unit, transport security and weather protection - pallet logistics are dispensed with. A new dimension in system cost-effectiveness is opened up: with 60% savings in wrapping overheads and cost savings in the millions.

Load Wrapping

Our Partners

Conveying Liquid Filling Pallet-less Packing

5 years Outstanding Supplier Recognition Award

A leading Safety Solutions company based in Saudi Arabia with Safety Solutions ranging from PPE, Fixed Gas Monitoring, Fire Services, Gas Flow Monitoring and Downstream Technology. With the major focus on insuring that all personnel return back to their families safely.

Learn More

Contact Us


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201

change and this will be enabled through the finalisation of the ARIBA implementation, integration with SAP and further digitalisation of the processes.” “This is crucial for us to handle the increase in volume due to the expanded capacity of the operation. We must reduce the number of touches on work orders from procurement to pay with seamless vendor integration through the process.” Petro Rabigh also plan to begin to take steps to become a world-class service minded organisation that will

“Our processes and practices must change and this will be enabled through the finalisation of the ARIBA implementation, integration with SAP and further digitalisation of the processes” — Michael Gustafson General Manager of Material, Procurement and Contracts

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GHIATH MOHAMMED KAKI EST

YOUR QUALITY IS OUR SATISFACTION Ghiath Mohammed Kaki Est is one of the leading establishments in the field of Marketing and Maintenance of Analytical, Scientific and Laboratory Instruments, Teaching Equipments and Packing Materials. SOME OF OUR SUPPLIERS:

Our Site

Contact us


MIDDLE EAST

enable the firm to provide exceptional

Petro Rabigh also plans to increase

customer service that goes beyond

its employee development, training

expectations.”

and planning to ensure everyone

“This can happen when we break down

successfully obtains their Certified

silos, over communicate to customers

Supply Chain Professional certifica-

and provide proactive service levels

tion as well targeting an 85% or higher

with their absolute best interest in mind,”

Saudization level and a 40% rise in

explains Gustafson. “We will do this

the hiring of women. In addition, the

through cross development opportuni-

firm expects to make a more deliber-

ties with operations, by co-locating

ate effort in its supply relations and

people closer to the customers they

strategic sourcing.

serve and rewarding people for delivering on their commitments.”

“We will be conducting a major supplier recognition conference soon 203

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PETRO RABIGH

in order to build deeper, strategic relationships with key suppliers and vendors,” says Gustafson. “This will take time, but the idea is to personally visit our key suppliers for them to understand the direction we’re going, how they can optimally support and ways we can further collaborate together to meet the Saudi Vision 2030 plans.” With major changes incoming at Petro Rabigh and in Saudi Arabia itself ahead, Gustafson remains determined that the future is bright for the company in the next 18 months and beyond. 204

“The vision for the future is to continue to make the Material, Contracting and Procurement organisation a great place to work. We also envision becoming a leader in driving collaborative value through matrixed processes, creativity commercial acumen and focused commitment to the priorities that will make Petro Rabigh the most valuable company in the region.”

JANUARY 2019


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Where Sourcing Innovators

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Profile for Supply Chain Digital

Supply Chain Digital Magazine – January 2019  

Supply Chain Digital Magazine – January 2019  

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