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Covestro Implementing solutions

Volkswagen Group: efficient global shipments with AEB software

Special Feature: DIAGEO Cameroon

TECH: The future of the

manufacturing supply chain

Rohde & Schwarz

Future proof: the fourth industrial revolution


May 17 – 19, 2016 | Phoenix, AZ gartner.com/us/supplychain SAVE $425 Register with code GARTSCD

The World’s Most Important Gathering of Supply Chain Leaders The Bimodal Supply Chain: Tackling Today, Preparing for Tomorrow

Learn from 46 Gartner supply chain research analysts and hear from more guest speakers than ever before, including:

Michael T. Duke Retired President and CEO of Wal-Mart Stores, Inc.

Joby Ogwyn Mountain Climber, BASE Jumper and Wingsuit Flyer

Chris Tyas Head of Supply Chain, Nestlé

View the full supply chain agenda and speaker lineup at gartner.com/us/supplychain. © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. For more information, email info@gartner.com or visit gartner.com.

2016 tracks A. Strategy and Leadership B. Supply Chain Innovation C. Supply Chain Planning D. Logistics E. Supply Management and Manufacturing


EDITOR’S COMMENT

Technology and the supply chain company Coverstro has made it to our front cover this month; our report explores the importance of strategic partnerships and how these have contributed to the successful, sustainable management of the company’s supply chain. We also feature German wireless communications expert Rohde & Schwarz, as well as Diageo Guinness Cameroon. Supply Chain Digital speaks to Diane Palmquist, Vice President of Manufacturing Industry Solutions at GT Nexus, who covers such diverse topics as sustainability, the Internet of Things, and re-shoring. Gursh Atwal, Account Manager at AEB International explains how his company helped Volkswagen achieve efficient global shipments using its end-to-end software. We also have the top 10 tips to optimise big data for supply chain applications. THE HIGH TECH CHEMICAL

Nye Longman EDITOR nye.longman@bizclikmedia.com

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CONTENTS

Features

6

Volkswagen Group: Efficient Global Shipments with AEB Software

14 4

20 The future of the manufacturing supply chain

March 2016

TOP TEN TIPS for Optimising Big Data


Company Profiles

30 Covestro

48

EUROPE 30 Covestro

EVO Group

48 EVO Group 60 Rohde & Schwarz GmbH & Co. KG 74 Tata Global Beverages

AFRICA 88 Diageo Guinness Cameroon

Rohde & Schwarz GmbH & Co. KG

60

74

MIDDLE EAST

Tata Global Beverages

106 Alshaya Trading Co

AUSTRALIA 118 Ricoh 128 SunRice 140 VicRoads

LATIN AMERICA 160 DSV México 172 Impala Terminals Perú

88

Alshaya Trading Co

Diageo Cameroon

106 140 VicRoads

118

Ricoh

128

5

SunRice


Volkswagen Group: Efficient global shipments with AEB software

Written by Gursh Atwal, Account Manager, AEB (International) Ltd. Edited By Nye Longman

To manage the shipping of both mass-produced and nonmass-produced materials, the Volkswagen Group relies on AEB’s standardised, end-to-end software. The result: the efficient management of over 1.6 million shipments each year from 36 sites, across all transport modes – fully integrated into VW’s IT environment. This volume could soon increase dramatically when a new online shop goes live.


S U P P LY C H A I N M A N A G E M E N T

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S U P P LY C H A I N M A N A G E M E N T

POWERFUL IT SOLUTIONS are crucial today and form a reliable IT backbone for large companies such as the Volkswagen Group (VW). With nearly 600,000 employees worldwide, and shipping over 10 million vehicles to its customers each year, VW relies on a complex system environment 8

April 2016

consisting of different applications that perform a wide variety of tasks. To support logistics processes in its shipping operations, Volkswagen has implemented AEB’s standard software ASSIST4 – which it refers to as their ‘shipping and transport system.’ “We use ASSIST4 to ship anything


S U P P LY C H A I N M A N A G E M E N T

that anyone needs to ship that is not part of our logistics system for finished automobiles, for example: defective mobile phones that need to be returned to the manufacturer,� says Dennis Hanitsch, the Project Manager responsible for shipping, IT, and supply and transport logistics

at Volkswagen AG in Wolfsburg. In 2015, ASSIST4 helped to manage over 1.6 million shipments. It is deployed at 36 sites around Europe and can accommodate 281 users working simultaneously across all sites. One major advantage of the system is that it can map entire 9


S U P P LY C H A I N M A N A G E M E N T

transport chains and can be used to define not only the consignee but also intermediate consignees, such as the departure or arrival airport. It also automatically assembles the various freight documents, so the relevant documents are sent to every service provider involved in the supply chain. Managing and supporting diverse logistics processes In addition to standard shipping operations, Volkswagen uses AEB’s software to control the movement of its containers around the world. It generates the appropriate transport documents and draws all the information about the empties from the container management system. After the delivery note data has been entered, it is shared with ASSIST4. The ASSIST4 user then generates the necessary waybills to ship the materials. Transport management is largely automated, and once the data has been captured, it can be used and re-used without the danger of errors being introduced. VW also uses shipping data to manage its freight costs, operating a self-billing procedure: instead of the carrier calculating the shipping 10

April 2016

costs for performed services and issuing an invoice, VW calculates the freight costs and issues a credit to the carrier. This reduces the administrative overheads for VW’s freight billing. ASSIST4 supplies the necessary delivery note and shipment data to the company’s billing system in the form of a customer record, which is compared to the carrier’s electronic transport record in VW’s billing system. If the contents of both records match, a credit can be issued. At its Wolfsburg headquarters, VW uses ASSIST4 to send steel scrap by train to steel plants or dealers. Space is precious in the plants, and only very limited storage capacities are set aside for scrap, so if the scrap disposal process runs into problems, it can bring production to a standstill. VW’s procurement department, which sells the scrap, is the start of the sensitive scrap shipping chain. A contract is created in SAP® specifying, for example - that a buyer has purchased 40,000 tons. SAP® sends this information to ASSIST4 and before the shipment goes out, ASSIST4 checks whether the customer actually has enough credit with VW to pay for the goods. If so, the loaded


S U P P LY C H A I N M A N A G E M E N T

and weighed trucks or railcars are cleared. If not, the order is stopped. Integrated but simple – and ready for more Volkswagen mostly relies on the standard functionality of AEB’s ASSIST4 software. Only three percent of the shipping and transport system has been customised, making it easier to install updates at any time. Should an individualised solution prove necessary, VW first checks for potential conflicts with other systems or current features before implementing any customisation. “There are certain areas we don’t even want to touch, such as hazardous goods or export law, which are subject to strict regulations,” says Hanitsch. In addition to ASSIST4’s comprehensive functionality, Hanitsch praises the software’s communication features, which recognise all standard formats such as SAP® IDocs and EDIFACT, making it easy to set up new interfaces. All key documents for exports or hazardous goods are stored in the software. The nerve centre of the shipping and transport system is in VW’s Wolfsburg data centre. It provides data to all the 12

April 2016

plants in Europe (and soon worldwide), and checks whether a specific change will have any impact on other sites. The system is generally very stable, and AEB and VW work as a team to implement regular improvements. The solution is also well integrated into the automaker’s complex IT environment. A large company like VW, where many processes have


evolved over the years into a tapestry of different systems, is a world unto itself. Old systems are still in use – that’s a reality that must be dealt with. Unsurprisingly, VW is contemplating rolling out ASSIST4 to more of its plants and more areas within the company. There are plans for linking a new plant in Poland and for connecting the new VW employee web shop. From the

first day of the rollout, staff will be able to order some 4,500 different items, including model cars, jackets, ballpoint pens, and bicycles – with ASSIST4 organising the shipping. As it is not yet possible to predict how popular the new web shop will be, the potential shipping volume is unknown, but it could mean anywhere from 100 to 6,000 additional shipments per day. 13


The future of the

manufacturing Written by Nye Longman


g supply chain

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Supply Chain Digital speaks to Diane Palmquist, Vice Pre Manufacturing Industry Solutions at GT Nexus, who cove diverse topics as sustainability, the Internet of Things, an How can manufacturers ensure that the improvements they make across their supply chains are sustainable? Palmquist: Long term sustainable improvements require a long term strategy, rather than a bolt-on initiative. This means rewiring the connective tissue between trading partners and stakeholders to deploy a network 16

April 2016

for multi-enterprise visibility and collaboration. Having ‘sight’ and certainty of what is going on in the supply chain and, ultimately, foresight is crucial. In today’s world of complex supply chains companies have to respond swiftly to sudden changes and unforeseen disruptions and transparency is critical in battling these challenges.


TECHNOLOGY

esident of ers such nd re-shoring Could you expand on why it is important that demandfulfilment is carried out in real time? How can manufacturers achieve this? Palmquist: Manufacturing is becoming increasingly outsourced, while customer demands are increasing. In many cases, the challenge goes beyond fulfilling, but

fulfilling profitably, hence the need for real-time demand fulfilment. Integrating supply chains, logistics, marketing and production are becoming increasingly important. With a single source of truth around orders, shipments, inventory and demand, organisations can make faster moves, driving agility to gain a competitive advantage. Segmentation strategies will become increasingly important in order to effectively achieve the right level of demand fulfilment. A one-size fits all supply chain does not work with for example, luxury goods, which should differ dramatically from those products requiring basic replenishment at the lowest possible cost. The challenge is putting all of that data to use. The IoT and data are useless if they can’t be deployed for optimising decisions and strategies. To what extent will there be a move to re-shore manufacturing? Palmquist: As the cost of labour increases in offshoring hubs, many organisations are realising that re-shoring or near-shoring can have 17


TECHNOLOGY advantages. Often manufacturers will see around 49 to 50 percent reduction on delivery lead times, and about a 30 to 40 percent improvement in overall on-time delivery accuracy. Producing locally to sell locally better serves local markets while maintaining low costs, which means moving closer to home in 2016 will seem like a logical step How can IoT technology benefit manufacturers? Palmquist: A company like General Electric (GE) used to only make stand-alone physical engineering equipment like MRI machines, airplane engines, and oil drills. It sold them, and sold support contracts for them. Now, GE has pushed its IoT initiative, the Industrial Internet, to sell outcomes-based services to its clients, guaranteeing that GE’s smart machines and big data analytics — delivered through its own cloud-aware software platform — will provide specific, measurable efficiencies. GE has evolved from a being more than just a physical asset company. It’s now a data company. Macy’s recently deployed sensors throughout its flagship stores based 18

April 2016

on Apple’s iBeacon (Bluetooth low energy) technology. As customers walk around to different areas of the stores, the iBeacons present relevant deals on their smartphones. By seeing what sorts of deals and products provoke customers to respond, Macy’s can make changes to its assortment. In this way, IoT technologies like iBeacons can directly capture customer demand, and as they roll out, they’ll impact inventory and omnichannel strategy, which have their foundations all the


way up the supply chain. Companies will need to focus on agility, and the ability to adjust on a dime to changing demand, in order to serve an IoT-equipped retail world. What are the challenges facing today’s manufacturing supply chains? Palmquist: For manufacturers, looking ahead to the IoT is a smart move that can inform the way they solve major problems today. IoT models can feed real-time data into predictive models, aligning production with actual demand. Often, getting ready for adopting a new technology is painful. But in this case, it doesn’t have

to be. Preparing your manufacturing supply chain to take advantage of the IoT means getting your centralised visibility platform in place to handle big data. There are already wellestablished ways to do just that. Manufacturing today is tough because demand is capricious. Markets saturate. Geopolitical events disrupt commerce. Emerging regions develop. Companies are discovering they need to stay on their toes to eke out a profit. Gone are the days of simply creating a good product and selling it. These days, process matters just as much as product. Supply chains need to be agile and adept in order to deal with volatile demand.

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Ten Tips for Optimising Big in the Supply C

Many companies are finding themselves drowning the potential of big data, many often rush to collec According to a recent study by Dresner Advisory, recognise the importance of big data but are unsu Written by: By Matt Clark, COO Corcentric Edited by: Nye Longman


TOP 10

g Data Chain

g in data. When they first realise ct as much information as possible. about 60 percent of businesses ure of how to use it

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TOP 10

Failing to optimise big data can leave money on the table and weaken a company’s profit and trend forecasts. In turn, executives are now trying to find the best way to collect, analyse and execute on their big data analytics. Here are ten tips for optimising big data for enterprises to remain competitive in the supply chain Establish a business and technical owner for all big data initiatives In today’s fast-paced corporate culture with bottom lines stricter than ever before, CFOs cannot afford to pay close enough attention to the minutae of a business’ P2P processes. Running a global supply chain operation requires intricate planning, sourcing, delivery, measurement and a well-informed viewpoint. This highly involved set of responsibilities should be overseen by a designated executive to make sure the proper business value is being delivered in the most technically sound and efficient manner possible.

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Break down the communications silos between teams Businesses that segregate operations cannot fully harness the potential of cross-functional platforms. By aggregating all data into a single, multidepartment system, a company’s analytic capabilities grow exponentially. Since supply chain businesses are comprised of multiple branches, a business’ centralised data should connect each branch for a holistic understanding.

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TOP 10

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Establish goals for revenue and earnings that are within reason and doable

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Normalise data and terminology across all platforms and departments Analysis can be a tedious process. Department-specific jargon makes it difficult for organisations to leverage data, which impedes accurate analytics. By keeping all data terminology uniform across business platforms, information can be processed and understood much more easily which will result in faster and more efficient decision making. 24 April 2016

Big data can be a treasure trove for a business’ forecasting. However, like all business processes, implementation of big data can take time. Executives should clearly outline goals for revenue, sourcing and P2P development that make sense for each team individually, as well as establish goals that work in concert with one another to achieve the overarching company mission.


6

Use business intelligence from spend data for better sourcing strategies

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Diagnosing sourcing issues correctly is much easier with organised and accurate data to quickly visualise and draw insight. Big data can give a business a clear snapshot of expenses and ROI. To optimise existing data, it is important to identify the sourcing inefficiencies and rectify to ensure maximum profits.

Organise the data necessary for business growth

Not all data is created equal— some information is inherently more valuable to a company’s priorities. Executives must identify top business priorities to pull the data necessary. Once these are established, executives can concentrate on how to leverage organised data. 25


TOP 10

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Prioritise and focus the data pulls It’s tempting for executives to pull the reports for all processes and streamline all at once when the data becomes available. Businesses must first prioritise goals and efforts in order to optimise their data. Executives should concentrate on the top-line items before moving on to additional analyses in order to best understand the data and forecasts.

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Remove inefficiency fr departments

Once a business has analy important to act on the res out inefficiencies with a co pay process that an execu when streamlining to save 26 April 2016


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Turn data into decisions The purpose of data analytics is to prescribe an actionable insight to the decision-maker. Executives must be prepared to act upon the data’s results once available in order to capitalise on the opportunities presented. Without action on the part of the decisionmaker, data remains just that—data.

rom AP and AR

ysed its data, it’s sults. Big data will call ompany’s procure-toutive should consider time and money. 27


TOP 10

Be flexible No business involved in producing or selling products is immune to supply chain disruption. While big data is a useful, predictive tool it can often fail to account for circumstantial, external risks that can arise in business, such as labour strikes, fluctuating global economies or extreme weather. According to a recent study by Deloitte, 55 percent of CPOs reported an increase in external financial and economic uncertainty over the past four years. With a system as delicate as that of the supply chain, executives must be reactive as well as proactive. The success of a supply chain – and a company’s competitive edge – relies heavily on the ability to be more efficient and more informed. Comprehensive and organised technology is necessary to provide deeper visibility into the supply chain in its entirety. When used correctly, big data can reduce companies’ reaction times to problems in the supply chain and increase the efficiency of its processes. 28 April 2016


T E N T I P S F O R O P T I M I S I N G B I G D ATA

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Implem solut

Written by N

Produced by Ri


menting tions

Nell Walker

ichard Durrant

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COVESTRO

Covestro aims to brighten up the world with its innovative high-tech chemical solutions, extending its reach to a global scale

P

reviously known as Bayer MaterialScience, the Germanbased chemicals company rebranded itself as Covestro in September 2015. 69 percent of the shares are still in the hands of Bayer, with the other 31 percent traded in the MDAX. The company’s focus is split into three units; one for the production of polyurethane raw materials, TDI, MDI and polyols; the second for a high-tech plastic named polycarbonate; and the third for raw materials for coatings, adhesives, and specialties. The latter

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unit supplies over 4,000 products for different industrial applications, with all of Covestro’s dealings being business-to-business. The company’s vision, according to CPO Dirk Jan De With and Board Member Klaus Schäfer, is to make the world a brighter place. Covestro wants to contribute to this goal with products and technologies that benefit society and reduce the impact on the environment. “Many of our materials are within one metre reach of you,” says Schäfer. “Sofas, mattresses, sports accessories such


€12.1 billion Annual Revenue

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“ When a sustainability assessment has been positive it doesn’t mean we stop there - we want to see how we can improve further ” as running shoes, skiing equipment, and everything in between.” Covestro’s values Covestro centres the way it does business on what it calls The Three Cs: curious, courageous, and colourful. “Curious very much refers to the fact that we are interested in understanding what happens out there in the world and beyond our own industry,” De With explains. “We look for best practice there and bring it in-house. We’re curious about understanding other practices and how we can improve our performance. “Courageous is about having the courage to step up, come up with refreshing new ideas, challenging

each other within the company and externally for the better. Colourful is probably a value you haven’t heard often, and I think that’s exactly what sets us apart in the chemical industry – because it’s not exactly seen as one of the sexier industries – but colourful is what we aim for. The kinds of applications in which our products end up are the things that make our lives brighter,” says de With. Integrated sustainability is also at the heart of Covestro’s business, which affects many of its business decisions from a People, Planet and Profit perspective: “We are working on challenges of our time, including climate change, growing cities, and ageing populations,”

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DIRK JAN DE WITH Chief Procurement Officer Dirk Jan De With joined Covestro in April 2015 as Chief Procurement Officer being responsible for the procurement of all materials and services for the company. Previously he has spent 27 years with Unilever in The Netherlands, Germany, Israel, Italy and Switzerland and held senior management positions in all areas of the supply chain. He has been leading the supply chain in Unilever Israel, Planning & Customer Service for Ice Cream Europe and established the Unilever supply hain Company in Switzerland and implemented SAP across all operations in Europe. In his most recent role he was leading Ingredients Procurement and implemented Sustainable Sourcing in line with the Unilever Sustainable Living Plan. During that period he served as President of the Sustainable Agriculture Initiative (SAI) Platform. De With has a MSc degree in Mechanical Engineering from Twente University in The Netherlands and a MBA from the European University, Antwerp/Belgium.


COVESTRO

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EUROPE

Key Personnel DR KLAUS SCHÄFER Chief Industrial Operations Officer Dr. Klaus Schäfer became Chief Industrial Operations Officer at Covestro in 2015 and is responsible for production and technology. Previously, Schäfer held the same responsibility in the Polyurethanes segment, was the Country Representative in China for predecessor company Bayer MaterialScience, and Managing Director of German site operator Currenta, which provides services to Covestro at the Dormagen, Krefeld-Uerdingen and Leverkusen sites. Born in Cologne, Germany, in 1962, Schäfer studied physics at the city’s university. After obtaining his PhD, he worked for Erdölchemie and BP, before joining the Bayer Group in 2001.

Schäfer says. “For example, we provide materials for making cars lighter, saving on fuel, and also materials to reduce energy consumption and CO2 emissions.” “Sustainability is something embedded in everything we do in this company,” De With adds. “We constantly evaluate the chemical processes we are using and the energy-saving measures we have implemented over the years. We’re always saving energy and, because of that, are reducing our carbon

footprint and saving money. It’s a good business approach.” Covestro is striving to grow into its assets, leverage its leadership in the industry, and improve its cost

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COVESTRO

TRANSPORT, CONTRACT MANUFACTURING, WAREHOUSING AND DISTRIBUTION FOR THE CHEMICAL INDUSTRY 40

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www.imperial-international.com


EUROPE

15,800

Number of employees at Covestro

base. It achieves these partially through a savvy approach to procurement and by forming a number of strategic partnerships. “We’ve set ourselves the ambition to deliver value for the company of 1 billion Euros by 2020,” says De With. “We want to create value in four strategic areas: cost transformation, reliability – which is essential in this industry – sustainability, and innovation. Innovation is in everything we do; in our processes and our technology, but also in partnership with others to use their capabilities. Delivering value in a broader sense rather than just cost savings is what we

really aim for with procurement.” Partnerships Covestro picks its suppliers and partners carefully, ensuring they also adhere to the company’s high standards. It has a very large supplier base including around 100 key suppliers: “We are very selective in understanding who the real strategic suppliers are that can add significant value,” De With explains. “It’s not just a procurement job; board members, marketing, sales, operations and R&D colleagues are involved – we all talk about our four key strategic areas. In addressing sustainability with those suppliers, we don’t

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COVESTRO

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stop at a positive sustainability assessment, but we want to see how we can improve further.” Schäfer describes the industry initiative for supplier sustainability assessments: “We are a member of Together for Sustainability, an initiative of the chemical industry with 16 members now which are all well-known in the chemical industry, with the objective to accelerate the implementation of sustainable practices within the supply chains of the chemical industry. “There are many assessments along the way, beginning with a risk assessment. If it’s a smaller operation in a higher-risk country, we do an evaluation there or an audit by a third party to measure them against economic, environmental, and social standards that we have agreed.” Covestro highly values the partnerships it works so hard to forge; the relationship with INEOS, for example, is one of the company’s most highlyvalued, says De With: “INEOS is a very like-minded business which operates in one of the same chemical parks as we do, so there’s a lot that we do share anyway. It’s a long-standing relationship and we manage multiple businesses together. It goes in both directions; we make materials they

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Your goals drive us. WE ARE HERE: WORKING WITH COVESTRO TO SUPPLY HIGH-TECH POLYMER MATERIALS. HELPING TO MAKE THE WORLD A BRIGHTER PLACE.

The international logistics company HOYER is a worldwide market leader in moving liquids by road, rail and sea. Wherever they may go, HOYER will get chemicals, foodstuffs, gas and mineral oil to their destinations safely and efficiently in tank containers, road tankers, flexitanks and IBCs.

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www.hoyer-group.com April 2016

www.ineosphenol.com

Avenue des Utins 3, Rolle, Switzerland


EUROPE

need and they make materials we need. Or the relationship with Mitsui that is key for our polycarbonate business, especially in Asia. “In terms of logistics we use companies like Hoyer, which has a container terminal in Dormagen,

integrated into the chemical park there, meaning public roads aren’t required. Hoyer covers the bulk liquids transport market for us. It was a pioneer of intermodal transport in the early 70’s, so we’re benefitting from the company’s expertise. “Hoyer is a partner that goes around the globe with us, and is starting to work with us in our logistics in China. Imperial Logistics, too, has a long history with us. It’s very important for the supply of many of our raw materials. Salt, for example, is a big raw material for us.” With Covestro’s group of trusted suppliers behind it, the company is able to run with optimum efficiency, allowing its operations to be as

“ We strive for the right kind of diversity in the company to get different views, approaches, and angles to problems, and to really become much better ”

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integrated as possible: “Our task as industrial operations is to manage the whole supply chain from raw materials to production and our commercial operations pick it up at the factory gate and sell it to customers,” Schäfer says. “Everything that is necessary, from buying the raw materials through to production on-site, building plants, managing safety health and environmental aspects and project engineering; these are tasks that we as an industrial operation have in this company.” “Currenta is the chemical park operator for our production plants in North-Rhine Westphalia,” Schäfer adds. “They are providing the complete infrastructure within the parks, and for that we are buying services from site security, fire brigade, rail connections, and then the biggest part in

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there is the energy supply.” “I always say it’s basically a partner you’re married to by definition,” says De With, “because you’re dependent on each other in these chemical parks. It really requires a strong relationship.” “Managing things like costs, reliability, and sustainability jointly also ensures that innovation is implemented in all activities,” Schäfer explains. Covestro’s unique and multifaceted business model has ensured that it is now a world leader in material solutions, and De With thanks the company’s community of people and skills for that: “We strive for the right kind of diversity in the company to get different views, approaches, and angles to problems, and to really become much better. I think that sets us aside and will do even more in the future.”


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Written by Nye Longman

Produced by Richard Durrant


Engaging distribution

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EVO GROUP

EVO Group is the UK’s largest multi-channel distributor of supplies and services for businesses – formed after a seamless merger in 2014, it is now working hard to increase customer engagement while maintaining its commitment to next-day delivery

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EUROPE

A

rising from the merger of two critically positioned UK distributors in 2014, what is now known as the EVO Group quickly became note-worthy for its ability to deliver and distribute to businesses across a range of channels, in the shortest possible time. Operations General Manager Phil Allsop explains how the efforts of all those involved ensures that the customer remains the focal-point of all of the company’s operations and how he and his teams are looking to further increase engagement across all channels. Operations EVO Group is an entity greater than the sum of its parts, an accolade that is all the more impressive given the scope, scale and size of its constituent companies: Vasanta and office2officeplc (o2o). Listed on the Sunday Times Top Track 250 -

EVO is a leading office equipment supplier with revenues last year of almost £660 million. It has a strong distribution footing in the UK and ROI. The Group’s specific wholesale and direct channels deliver managed procurement, distribution and supply chain services, alongside a strong business supplies offering. All told, the Group is made up of specific channels under the brands of VOW, VOW Retail, Banner, bokz, Headroom and Truline, which together give it a footprint of over 50,000 customers. These are serviced by a centralised distribution network supported by three main distribution centres, as well as various localised cross-dock sites and a fleet of over 320 vehicles. Allsop explains that the Group is able to target the market through a range of different channels: “We have three core businesses that

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EVO GROUP

operate out of EVO Group. We have a retail section which predominately covers goods for resale – we will provide customers with a product that they will then display for purchase. We also supply dealer networks where dealers sell on to end user, which include offices and SME enterprises. With the integration of Office to Office, we gained the Banner business which supplies directly into major accounts.” Our sales teams are consistently out there, talking with our customers and meeting them. I myself spend a day every two weeks on the road with the sales teams to help understand customer needs and how we can mitigate any potential challenges.” He adds: “We have sales teams operating out of Norwich, Droylsden in Manchester, Wakefield, and Lutterworth, while also having sales

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teams in Dublin and Belfast.” Strategy EVO Group’s unrivalled position in the UK is maintained by a combined effort to increase customer engagement, aggressively expand sales, and to optimise its operations in order to guarantee next day delivery to its customer base. In order to achieve this, Allsop is tasked with ensuring that every aspect of the company’s supply chain is in-line with these goals. He explains: “Next day delivery is a huge responsibility – we are able to take orders up until 6:30pm each evening and get those distributed by the next day. This ensures there is a balance between the distribution centres, mainly based on geography, but also order size. “We disseminate the orders into the right warehouse to ensure that warehouse is fit for purpose.


EUROPE

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EUROPE

2000

Number of Employees at EVO Group One example of this would be if I walked across the despatch area of Lutterworth and saw a pallet of paper to go to a single customer - I question who has ordered this. Whereas in Normanton, there are several pallets of paper awaiting despatch. “Within Lutterworth, we are shipping out circa 220,000 items a day through automation and as you can imagine it’s a hive of activity between 6:30pm and 11pm.” While engagement has certainly become a buzzword for many in the distribution industry and beyond, Allsop describes that the EVO Group has its own culture and is

self-directed for what it wants to achieve using this clear identity. He says: “You will only get ideas to improve your operations from your teams. I personally put together a programme that has worked particularly well around displaying initiatives and encouraging people to come forward. They know their job. They know the shortcuts in that job - it’s about how do you evolve those shortcuts into a process that is then fit for purpose and within the boundaries of health and safety. “As a business, we are always looking to expand. I think our sales team are particularly dynamic. They are always looking for opportunities.

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“ Not only does the employee survey support a culture of ope within the organisation, it also enables management to work employees to drive positive, constructive change across the Saying that, we are pragmatic in implementing new ideas and know what our capacities are within our network and how best to gain maximum efficiency.� The Group also works with external parties where relevant to ensure the service delivered to customers is constantly enhanced. Phil says: “For instance, we work with Hazel 4D who is the provider of packaging to EVO for the last three years. Their Total Packaging Management solution means that they store our stock in their warehouse for call off. We receive a daily delivery, and at the end of the month we are only billed for the stock that has been used.

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Furthermore, we are also working with Ha look at further efficiencies in our pallet ful He also explains that, while the price of an item is obviously important to an office customer, the service and the accompan service delivery are of equal, if not superi importance. Leveraging its sophisticated distribution network in order to fulfil the needs of customers in this way is how the company has been able to maintain its place at the top. Talent management Allsop explains that in order to ensure that the EVO Group is consistently on track to deliver its operational strategies; it needs to have a constantly motivated and well-trained


enness k with business

azel 4D to lfilment.� f e nying ior d


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workforce who is willing to go the extra mile. He says: “As a business, we aim to attract graduates and commence with an apprenticeship programme. I’m a great believer in apprentices, particularly within operations, I think they are a must have for organisations that operate in logistics.” “We operate NVQs, as well as on-site training which we carry out across the board, from manual handling all the way through to the supervisors and warehouse management systems. As a company, we also run a number of internal training and development programmes. In addition, we have a very recently launched mentoring programme within the business, combined with our internal awards programme – all supported with an annual employee survey.” Not only does the employee survey support a culture of


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openness within the organisation, it also enables management to work with employees to drive positive, constructive change across the business. Even when it comes to its contingent labour force, EVO ensures that its agency takes the time with temporary workers to ensure that they are fully aware of the company’s operations and work ethic. Having proved with its successful merger in 2014,

the EVO Group has gone on to become an essential part of the UK’s business supplies network and a model for others looking to give true value to their customers. The company’s dedicated approach to its operational strategy and its supporting talent pool shows that the Group has firmly cemented its place in the market and is well-positioned to be a serious influencer for years to come.

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FUTURE-PROO Written by Alice Young Produced by Richard Durrant


OF

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R O H D E & S C H WA R Z G M B H & C O . K G

Following a massive overhaul of its manufacturing and supply chain processes, Rohde & Schwarz is truly prepared for the fourth industrial revolution

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ohde & Schwarz – a globallyleading electronics group based in Munich, Germany – has massively overhauled both its supply chain and manufacturing processes. Streamlining its ability to meet demand by placing the customer at the heart of its operations has not only enabled the company to achieve this goal, but has also created a completely new way of providing value for a range of sectors and markets.

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Operations Rohde & Schwarz utilises over 80 years of experience in high frequency technology to deliver products and services to a wide range of sectors, spread across a variety of markets. These comprise: wireless communications tests and measurement, secure communications, media operations, radio monitoring and radiolocation and IT security. From a products perspective,


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the company provides universal test platforms for all wireless communications and wireless standards, oscilloscopes, army radio based SDR (software defined radio) technology, Ethernet encryption, TV transmitters and receivers for radio monitoring. Of the company’s 9,900 global employees, almost 6,000 are stationed in Germany, which not only greatly reinforces its position in the country, but the entirety of its European coverage.

Klaus Buchwald, Vice President of Corporate Supply Chain Management at Rohde & Schwarz adds how the sales channel is set up: “We rely on our own sales force who are experienced in our customers’ products because they are often very complex and specific. It is really helpful to have our own sales force to explain our customer’s product and help them find the right hardware or software configuration and explain

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9,900 NUMBER OF EMPLOYEES AT ROHDE & SCHWARZ

how to use it. On top of that, we established distributor channels for products that have less complexity and are more standardised.� With its sales channels divided into channel partner and its own sales force. Rohde & Schwarz is able to serve its more than 93,000 different articles, with 17,000 new articles every year, to more than 40,000 customers, with a rise of up to 10 percent year on year Having the ability to provide a range of sectors with so many services has ensured that Rohde & Schwarz is perfectly positioned to offer after-sales services across its entire range. Alongside more

traditional offerings such as warranty extension, online service management and order tracking, the company can also offer more customised solutions. These include service request handling, service level agreements and obsolescence management. Besides this, the company’s logistics requirements have changed dramatically since 2010. Rohde & Schwarz has experienced a reduction in delivery times and product lifecycle by 40 percent, a 100 percent increase in make-toorder, and a 60 percent increase in the number of assembled materials. Based on the KANO

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On June 1st Chain at R for the

Aft i

KLAUS BUCHWALD VP Corporate Supply Chain Management model of flexibility, agility and lead time, the company has been able to drive customer satisfaction and differentiation by a decisive competitive advantage through supply chain performance. Markus Fischer, Director of Supply Chain Management at the company’s Memmingen plant explains the change process: “We started with the vision for one day turnaround time production and supply chain with a clear belief to invest in flexibility instead of a forecast process and to reduce logistics costs and cost of sale to increase EBIT.” To bring the vision into real life and into the heart of all employees working in production and supply chain, Rohde & Schwarz developed a production system based on the

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LEAN philosophy with a three step approach. Having the end in mind “The one day plant” turnaround time was defined as the main driver. In the first step “transparent production system” value streams were identified, lot sizes determined and the lead times stabilised. Based on that in the second step “synchronised production system” the value streams were connected with a KANBAN system and the turnaround times further minimised. This was the base for the third step “learning organisation” where throughput increased, lot sizes reduced and the ability to react boosted. Buchwald explains how the changes were implemented across thousands of employees: “We initiated Change Management


t, 2013, Klaus Buchwald became Vice President Corporate Supply Rohde & Schwarz GmbH & Co. KG. In this position, he is responsible e global end-to-end Supply Chain for all business units.

ter earning a degree in mechanical engineering followed by a degree in industrial engineering, he started his professional career as a consultant and project manager for various medium-sized companies in the production and logistics industries at CON MOTO Consulting Group. In 1998, he joined Infineon, the global market leader in semiconductor technologies, as Head of Logistics for the chip card and mobile radio division. In 2005, he switched to Head of Planning and Controlling for the semiconductor plants in Villach (Austria), Regensburg (Germany) and Kulim (Malaysia). In 2008 Buchwald assumed the position as Plant Manager for the Warstein site (Germany). In the same year he became Head of Supervisory Board of the plant in CeglĂŠd (Hungary).


R O H D E & S C H WA R Z

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Fujitsu Electronics Europe is combining various best-in-class vendors in its line-card to be able to provide customers with complete solutions with High-End products. Through our outstanding supply chain with over 30 years experience in the electronics industry we are able to support our customers globally with development and supply-chain services. We help our clients to keep the lead within their target markets.


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trainings for all levels of hierarchy and initiated a shop floor management initiative to make sure this could be communicated on a daily basis – we are always trying to support our staff and are doing as much as we can to help them.” Manufacturing transformation Since implementing these fundamental changes, the company has been able to focus substantially on reducing lead times while increasing volume flexibility, which has had, amongst other things, a profound effect on its ability to exceed the

demands of its customers. Buchwald explains: “To be really prepared and to have different abilities to our competitors, we need to have all necessary parts before final assembly. With this concept, we really try to use the customer order as the consumption trigger and then, based on this order, we do an assembly on what the customer really needs - our customer then has the opportunity to choose between a large variety of hardware and software based options – and this combined with stable lead times whatever high the demand is.”

“We started with the vision for one day turnaround time production and supply chain with a clear belief to invest in flexibility instead of a forecast process and to reduce logistics cost and cost of sale to increase EBIT” – Markus Fischer, Director of Corporate Supply Chain Management, Memmingen plant

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RO RH OD HE DE && S CSH CWA H WA R ZR Z GMBH & CO. KG

Supply chain agility through digitalisation Adding various layers of value to its manufacturing processes necessitated the company’s adoption of an ERP system to manage the increased complexity of its operations – but technology extends far deeper than a systems level. Rohde & Schwarz used its SAP system to dimension and link the established value streams with KANBAN up to seven level of the value chain – from final assembly to PCB test and assembly, PCB production, noncutting and machining production to cable confection. Fischer says: “Our company is really technology driven. We have been working with ERP and SAP systems. We need to understand what is happening on the shop floor and value streams. Of course, you can address SAP and how much we produce and in what configuration – we need to ensure that the data on the system corresponds what is going on in reality. If we have a better understanding of the reality we can manage better value streams and clients. Our whole supply chain needs technology - we use data, systems and interfaces. We are also in the process of

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digitalising our supply chain. Because we are living in a global world, our customers use systems that we have to connect to ours. Buchwald concludes: “With the successful LEAN transformation we reduced and mastered complexity but, more importantly, we laid the base for the Internet of Things. We established the ability to change and increase our resource efficiency and can bring concepts like collaborative robotics, digital operation with big data in production, and new business models for maintenance via life cycle monitoring into real life.

“ Having revolutionised a major portion of its business and supported the changes with the LEAN philosophy, Rohde & Schwarz is now poised to dominate its space with the possibilities of the Internet of Things �

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MARKUS FISCHER Director of Corporate Supply Chain Management, Memmingen plant

“Here also the need for protection in all the big data and digital operation came to reality and we can actively show the use cases of our latest found business division cybersecurity in our own operation.� Rohde & Schwarz has shown through the diligent way it approaches its operations, manufacturing, and supply chain that it is a company strongly grounded in the current realities of

modern electronics. The company does, however, have the foresight to appreciate the increasing importance of technology on its operations for the foreseeable future. Having revolutionised a major portion of its business and supported the changes with the LEAN philosophy, Rohde & Schwarz is now poised to dominate its space with the possibilities of the Internet of Things.

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THE RIGHT BREW Written by Nell Walker Produced by Richard Durrant


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TATA G L O B A L B E V E R A G E S

Simon King, CPO of Tata Global Beverages – the global drinks division of Tata Group – describes the company’s procurement and logistics overhaul, and the brand explosion

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T

ata Group, since its inception in 1868, has become one of India’s largest multinational conglomerate holding companies, ever-developing founder Jamsetji Tata’s 148-year-old vision. Tata Global Beverages has been a part of the group since 1960, and has seen some of the industry’s most significant drink innovations within its company umbrella. Global Beverages is a tea, coffee, and water company, which counts Tata Tea, Tetley, Teapigs, and Eight O’Clock Coffee as some of its biggest brands. Around 250 million servings of its products are consumed every day, with a strong brand presence in over 40 countries. Simon King, CPO of Tata Global Beverages, describes the impact of huge global trademarks such as these: “Tata Tea is enormous in India, as is Tetley in the UK and Canada. We have joint

ventures in the US and in South Africa. Business in the Middle East is growing quite rapidly. It’s grown largely by acquisition over a period of years, and total revenues are about $1.5 billion including joint ventures.” Each brand within Tata Group operates independently, and Global Beverages is currently undergoing a procurement transformation headed by King himself: “Previously, each of the brands in each of the countries had looked after their own packagingbuying under each of the individual functions within them. We’re now setting up the global procurement approach so we can look at how we deliver improved value to Global Beverages by working with fewer, better suppliers. Now we’re only interacting with suppliers who are able to support our business objectives and growth plans, rather

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than just whoever happened to business.” have been used historically.” This standardised method The company’s procurement of operation has ensured that overhaul includes a heavy Global Beverages maintains focus on putting in place the great communication with both right people, the right structure, stakeholder and consumer groups. and the right approach to It allows the company to logistics: “What we’ve got discover and establish is a regionally-placed best practice within each but category-led region, and implement matrix structure,” King it wherever appropriate. explains. “There are So how does King teams placed in each manage a supply chain of our geographies, of Global Beverages’s and each one has a scale? head of procurement. “Because it wasn’t Every other member attempted before this Staff are employed of each team will also overhaul, we hadn’t by Tata Global take a global lead been able to test it,” he Beverages in a particular area explains. “First we had of spend; a head of to look at establishing logistics, a head of marketing, of exactly what we spend. How packaging, and so on. That way much? On what? With whom? we can drive a standard strategy What are the contractual positions? and way of operating across our We’re in the process of putting in

3,000

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W ITATA LLIAM G LGORBAANLT B&E V SE OR NA SG E S

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April 2016

www.purico.co.uk


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SIMON KING, CPO

place a standard spend analytics tool across all of the countries, so they’ll be able to take feeds from all the ERP systems and feed that into our own tool. “So where is the business going in each category? What do our stakeholders need from their suppliers and their supply chains? We use the knowledge of different teams to measure how we should actually be going about sourcing in

that particular area, so that spend is as effective as possible. Then we know what is going on in the broader marketplace. It’s important to liaise with the teams on what we should be doing to optimise that spend and deliver sustainable value to the business.” The company has a three year plan in place at every step of the supply chain, ensuring its methods are optimised by 2019: “Quarter

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one is about understanding and pivot tables, negotiating with and updating knowledge of our potential lenders to put the new processes and the requirements of spend analysis tool in place. the market,” says King. “Quarter “We’re also putting a central two is about refreshing the contract management tool three year plan, quarter in place,” King says, three is about taking “because it’s very the first year of the difficult to keep on plan, turning it track when there into the annual are multiple business plan legal entities and getting it and multiple Tata Global aligned with the geographies Beverages products business, and involved, so are consumed daily quarter four is for this will allow focussing on those us to have all our initiatives and making standard terms and sure we deliver them.” conditions held on that Global Beverages is in the process system, with the ability to edit as of perfecting the business-wide required. ERP systems which will streamline “All of this is automatic and can be the company yet further. King is in built into our three year planning the final stages of switching from process. There’s no way we can outdated Excel spreadsheets keep a tab on our contracts without

250 million

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“ We’re only interacting with suppliers who are able to support our business objectives and growth plans ”

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a management tool, and much of the Tata Group is owned by charitable trusts, so we need to maintain that ethical focus with these new IT processes.” Tata’s strong sense of ethics extends throughout its operations, with a code of conduct that suppliers and 3,000-strong employee base alike are expected to adhere to, ensuring only the best and most dedicated team: “In India particularly Tata is a hugely powerful brand, and people are delighted and proud to work within the group,” says King. “They understand the ethical element and what it stands for. It’s a huge part of what impresses people about the business, and it’s one of the reasons I joined, as well as the charitable element, the great work Tata does, and the strength of the brand. “There isn’t the same level of awareness globally as there is in India, and I’m doing my small part to raise that awareness because I think it’s a genuinely impressive organisation with lots of fantastic ideals. Lots of businesses talk about values but it’s not always as embedded as it is for us. Tata Group lives up to its values.”

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MEROONIAN TEGRITY Written by: Nell Walker Produced by: Richard Deane

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DIAGEO GUINNESS CAMEROON

Diageo Guinness Cameroon, subsidiary of the world’s leading premium drinks company Diageo, details the company’s dedication to its country, employees, customers, and the environment

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1967

The year that Guinness Cameroun SA (GCSA) was founded

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he Diageo Guinness Cameroon we know today began when merchants started taking bottles of Guinness from Europe to Africa on their ships. The Cameroonians fell in love with the product, and Guinness Ltd – based in London – began officially exporting. This led to Guinness Cameroun SA (GCSA) being created in 1967, with the first depot opening in Limbe. Two years later a brewery was built in Douala, and by 1970, production was firmly underway. Guinness merged with IDV in 1997, becoming a subsidiary of Diageo Plc. The company is now the worldwide leader of premium beverages, with a range that includes huge brands in the world of wines, beers, and spirits, 29 of which rank as among the top 100 spirits globally. As well as Guinness, Diageo distributes various Smirnoff-brand mixed drinks and vodkas, several Johnnie Walker whiskeys, Baileys, Gordon’s, Gilbey’s, and many others. Cameroon is now the fifth


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largest Guinness market in the world, with around 430 dedicated employees and 29 distributors covering the national territory. Company diversity Diageo is committed to diversity within its employee base, ensuring meritocracy and inclusiveness by not discriminating based on ethnicity,

gender, disability, religion, or age. It highly encourages women in particular to apply for roles, and hopes to achieve 50 percent female employees within the next four years. It currently employs 23 percent. The investment Diageo makes in its talent recruitment today has a direct and cumulative positive impact on the company’s performance

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and reputation. Its resourcing process is critical in helping ensure it has the right people in the right place at the right time. Diageo also considers local recruitment to be vital, and boasts a 100 percent Cameroonian Executive Committee – barring the Managing Director. The company supports its local communities by raising the employment rate of Cameroonians coming from all regions, whether they speak English or French. The Diageo Way of Resourcing (DWOR) provides high-quality tools, resources, and support to help hiring managers and HR teams execute the resourcing process, minimise risks or poor selection choices, and ensure that all decisions are compliant and ethical. The company offers training,

“The investment Diageo makes in its talent recruitment has a direct and cumulative impact on the company’s performance and reputation”

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internships, and various development programmes, with a heavy focus on launching the careers of younger people. It has programmes in place for generation Y because it believes they are who will truly make an impact to the company and the country as a whole. They have the opportunity

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to join a global company in which they will benefit from senior leaders’ coaching on both functional and leadership aspects. Diageo has a great culture of training to build capabilities of all employees and particularly people managers for them to provide a wonderful experience to their direct reports. .


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Supply chain management To deliver its ambition, Diageo Guinness Cameroon requires an efficient supply chain, and the team has implemented a system capable of rising to the occasion. The company maintains an excellent set of models, frameworks, standards, and systems. The aim

of these is to drive excellence across the supply chain through proactivity, control measures, visibility of day-to-day operations, productivity, and quality assurance. Logistics and distribution are specifically managed using a Move Business Performance Framework which covers a clear

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www.capital-rh.biz

OUR POLICY TOWARDS DIAGEO GUINNESS CAMEROON Created in August 2002, CAPITAL RH is an Employment Company specialized in Recruitment, Placement and Management of Temporary Workers, Training etc. Our Headquarters is in Douala, Cameroon. To build a progressing business and play a significant role in the success of our client DIAGEO GUINNESS CAMEROON, we have always made sure to: 1. Act in accordance with the highest standards of personal and professional integrity. 2. Conduct our business activities with integrity and ethics and within the framework of business policies of our clients. 3. Respect and continue to comply with the DIAGEO Code of Business Conduct. To care for the needs in manpower of our client, we keep a rigorous recruitment process as to workers to place, either for temporary jobs (12 months maxi) under CAPITAL RH or for long term jobs under CAPITAL SERVICES, the incorporation of CAPITAL RH. Through various ways, these workers are equipped and encouraged to reach the targets, as well as highly motivated to give their best. Our transparency in our dealings with clients, workers and job seekers has widely publicized our fame in matters of ethics and business integrity.

Address: P.O Box 24199 DOUALA - CAMEROON Tel: (+237) 233 43 87 11/ 699 45 86 08 | Email: info@capital-rh.biz

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set of operational and financial Key Performance Indicators, standardised operation procedures, organisation structures, a capabilities agenda, information and systems platform, demand solutions for forecasting, and GPS. The information flows from the consumer to the logistics centre and triggers all operations. Diageo Guinness Cameroon wants to create value for the local economy, and utilises its supply chain to do so, supporting and building capability amongst the communities in which it operates. From the farming and production of ingredients, to the manufacture and distribution of marketing materials or merchandise, each

“Its reputation can only be sustained if every part of the team is doing the right thing, every day, everywhere�

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stage of its supply chain impacts its employees, local communities, and the environment, as well as other stakeholders. The company wants to integrate social and environmental standards into every link of those chains, and it has a clear commercial interest in ensuring that its supply chain is increasingly secure, stable, and sustainable. Diageo employs three core principles in its relationships with suppliers: optimisation of due diligence, build capacity, and the support and creation of value with local businesses. The company’s strategy for attaining sustainable supply chains is partially measured against its sustainability and responsibility targets for 2020, and plans to achieve this with a combination of responsible sourcing, reducing environmental impact, and agricultural value chain partnerships. Sustainability and ethics Saving water is fundamental to Diageo’s sustainability strategy; it considers the measuring and management of its environmental impact important not only to the planet, but for financial sustainability, especially since its use is so prevalent in the brewing process. Water stewardship is therefore its biggest environmental priority, and this

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DIAGEO GUINNESS CAMEROON

FOBS Limited is an engineering and sales representative company that was created to provide innovative and flexible solutions to companies in terms of engineering, specific products and industrial consumables for food –beverage companies and other industries. Our Mission: Ensuring customer satisfaction Innovation for our customers Proximity, reactivity and availability Our expertise supports you in: • The establishment of your internalization strategy • The use of products and monitoring • The choice of solutions and technologies you need to boost your growth

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FOBS LTD Z.I. Magza Bassa P.O. Box 5913 Donala - Cameroon

Tel: +237 695 19 21 11 Mail: fobs@fobs-group.com Web: www.fobs-group.com


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is enshrined in the Diageo Water Blueprint. The long-term plan is to be a business which does not materially deplete natural resources, contribute to climate change, or cause damage to species, habitats, and biodiversity. The company has its own ethical policy – a Code of Business Conduct – which is underpinned by law, to ensure that employees and consumers are protected. This defines the company’s values and business performance, and the expectations of how those representing Diageo should behave. Reputation is critical to long-term commercial success, and the business wants to be seen as one of the world’s most trusted and respected companies – as well as being a great place to work – and for Diageo to become a by-word for acting with integrity and responsibility. The fact that many of Diageo’s brands have

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been around for generations is part of what the company believes sets it apart. The phrase ‘celebrating life every day, everywhere’ is at the heart of the business; it means that people should be able to celebrate with Diageo’s brands at any occasion, anywhere in the world. Diageo’s global business trades accross done across approximately 180 countries with over 30,000 employees and offices in 80 countries, and the staff truly cares for the legacy of the brands. The company takes its role as an alcohol

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producer seriously, knowing that misuse can reflect upon its brands, and has programmes and tools in place for customers to make informed choices about their drinking decisions. It is this sense of community which makes Diageo unique. An essential part of its contribution to the wider

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communities which allow the business to flourish is a long-term investment in actively-managed programmes that help serve critical local needs. It has recently made a meaningful assessment of the potential impact of its supply chain, and it is increasingly focused on empowering stakeholders, from small-scale farmers, to bartenders who serve Diageo’s brands, and in particular, to women. employees Diageo or Diageo believes that its Cameroon reputation can only be sustained if every part of the team is doing the right thing, every day, everywhere.

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Doing business with integrity goes beyond having a good corporate governance framework and policy compliance; it is about creating a culture that demands that integrity. Smart investments in quality, targeted innovations, and cost management have ensured healthy growth for Diageo in recent years, and it has its vast team to thank for this continued success. The company recognizes that these strengths have carried it thus far, but that to improve performance in the future, it will need to truly be the best in its field to maintain its excellent reputation. As a result, Diageo Guinness Cameroon places all of its flair, positivity, and passion for the business at the centre of all future projects and initiatives, to ensure it stays firmly ahead of the curve.

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Trading in the GCC Written by: Alice Young Produced by: Dennis Morales


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Alshaya Trading tells us all about its extensive impact within the industry and influence on the Gulf Corporation Council

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.H. Alshaya Co. is a leading international franchise operator for over 70 of the world’s most recognised retail brands including Starbucks, H&M, Mothercare, Debenhams, American Eagle Outfitters, P.F. Chang’s, The Cheesecake Factory, Victoria’s Secret, Boots, Pottery Barn, and KidZania. The

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MIDDLE EAST

company operates over 3,000 stores across diverse customer sectors: Fashion and Footwear, Health and Beauty, Food, Optics, Pharmacy, Home Furnishings, and Leisure and Entertainment. Alshaya’s stores can be found in markets across the Middle East and North Africa, Russia, Turkey, and Europe, and the company employs more than 44,000 people of over 110 nationalities.

The company has established itself as the industry leader across these territories through a combination of local market understanding and a comprehensive commitment to customer service. Growth in each of its operating divisions and brands is supported by continuous investment in talent and infrastructure. It applies best practices in retail

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A L S H AYA T R A D I N G C O FEATURED LIGHTING CRYSTAL WAVE LIGHTING INSTALLATION. CUSTOM DESIGNED & MANUFACTURED.

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operations, merchandising, marketing, information technology, logistics, real estate, human resources, and financial controls. The trade arm of the group is a turnkey offering of products and services that extends across many parts of the trading and construction industry. Storage systems and supermarket solutions are its largest division, and it covers the entire GCC. Alshaya Trading has more than 25 showrooms across the region, servicing end-users and projects alike, and sells the commercial kitchens found in hotels, restaurants, and schools. Many of the most prominent food chains in the GCC have kitchens installed by Alshaya Trading. The company also supplies office furniture and interiors for schools, universities, hospitals, and offices. Based on the space that is available, specialists design, deliver, and install the optimal solution. All of the company’s products are of American or European origin, including a German kitchen supplied under the Kitchenhaus concept, with 12 stores, soon expanding to 35. The company had a strategy from the very beginning that it would only work with the best manufacturers available, which is why European and US

‘Storage systems and supermarket solutions are the company’s biggest division, and it covers the entire GCC’

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manufacturers are preferred. The strength of the company is its dedicated team of employees, and it aims to hire only the best. It attracts people with ease thanks to Alshaya’s strong brand and trusted name, with the trading division having operated for around 70 years. The company has people who have been with it for 25 years and more. Alshaya Trading has a good name as an employer which helps it to attract good people. The business rewards good performance and has a very strong incentive scheme. It also tries to ensure its employees are operating within good working environments, and

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give them a clear career path with opportunities to grow. Most of the managers have come from sales backgrounds, grown into sales managers, and then developed their managerial capabilities and become division managers. The company aims for increased efficiency in its recruitment strategy, utilising online tools such as social media, and improving communication to ensure that it is well-known as a good employer. The company says that employees tend to stay for a long time, as the company fights hard to retain its best talent: it is not necessarily a matter of salary, but of giving people the


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1000+

Number of Employees at Alshaya Trading

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A L S H AYA T R A D I N G C O

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IDEAL STANDARD GULF FZCO Jebel Ali, Dubai, P.O. Box 261559, United Arab Emirates, www.idealstandardgulf.com


MIDDLE EAST

right conditions and the right responsibilities. Alshaya Trading maintains very strong relationships with its suppliers, ensuring loyalty and the creation of value for the manufacturers. It sees itself as an extension of the manufacturer. By creating value for suppliers, it prevents them from seeking other companies. It is a trend across most of the markets today in the GCC – some of the manufacturers go directly to the market because margins are under pressure in such a highly competitive area. Alshaya Trading has to make sure that it adds value to products before they reach the market, and it does this through the knowledge, skills, and market value understanding of its employees. Alshaya Trading has recently conducted a restructuring of its organisation, changing the operational model of the business from a country focus to a vertical divisional structure. The company believes that within each division lies the opportunity to utilise the knowledge and synergy that exists between people who work within the same market segments, like construction projects. It is an important way to make sure the business actually innovates and improves its service and products to the customers. Moreover, there is a specification

‘The company believes that within each division lies the opportunity to utilise the knowledge and synergy that exists between people who work within the same market segments, like construction projects’

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1890 The year the parent group was founded Alshaya Group

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team that sits on top of each division to create collaboration between them. The company decided to optimise its extensive supply chain, building stronger ties with the supply chain partners. Its strategy now is to work more in-depth with each supply partner it has, which puts a greater strain on the business because it has to proactively go out, persuade, and sell the product that it believes is the strongest in the market. Alshaya Trading employs 250 sales people on the street every day providing the GCC


MIDDLE EAST

customers with expert knowledge, and they are trained to be the first point of contact for customers, supported by a vast team of specialist designers, estimators, and technical services staff. It has one of the strongest teams of any trading company in the GCC. The business believes that it can really offer its customers a good service, and it is sending some very strong brands into the market. It

tries to make sure the customers can go and see the manufacturing facilities in the US or Europe when it has big projects that are supported by that. In the end, the manufacturers are the specialists. The strategic direction of the company is to penetrate current market with current products and services. It is important for Alshaya Trading to add value to its customers and suppliers.

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RICOH’S SMART WAY

FORWARD Ricoh Australia’s combination of service and highquality products has been a smashing success

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RICOH

RICOH’S SMART WAY FORWARD Taking advantage of the growing market share over the past 30 years, Ricoh has secured its position as the second largest supplier of office imaging equipment. “Ricoh’s strength in Australia and worldwide, is in mid- to high-range colour multifunctional devices,” comments Mike Betts, National Operations

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Manager. Ricoh’s broad multi award winning range of print products extends from basic economy printers to large format production devices with advanced cloud connectivity and integrated software solutions. Ricoh’s clients range from small-tomedium businesses, educational institutions to large government agencies, and the financial sector,


S U P P LY C H A I N

including three of Australia’s four major banks. Workplaces are transforming with businesses printing fewer copies than in the past, moving towards storing documents electronically and reducing waste. To remain competitive, in recent years Ricoh has made a strategical shift to expand their services and products to workplace technologies while

continuing to be world leaders in the manufacturing of multifunctional printers. Ricoh has been very successful in providing a one-stopshop for IT services, Managed Documents services and Unified Communications. “Our business model is changing, and it will continue to evolve quite rapidly over the next couple of years,� said Betts.

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WAREHOUSING & LOGISTICS “We’re looking forward to a big year,” said Betts. “We’ve successfully secured a number of sizeable contracts and are scheduled to move a significant number of units over the next 12 months.” Most products come directly from Ricoh’s local and overseas factories. Betts is responsible for managing the relationships involved with distribution and installation of devices within Australia. His target is to operate with a 30-day inventory at all times, which allows for a buffer when unusually large sales take place. There’s no new innovative technology involved in Ricoh’s warehouse logistics. It relies on good communication processes to keep the team across all transactions in the pipeline. “It’s my job to ensure I have enough stock but not too much. It’s a balancing act,” said Betts. “A lot of it is attention to detail and accurate sales forecasting. We spend a lot of time consulting with each department and having open dialog.

Mike Betts, National Operations Manager

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“Good internal communication within the company is critical. We do a pretty good job of that, whether we are working remotely or in different locations, we have the support of our unified communications to interact regularly.” A GREEN PRESENT AND FUTURE When Ricoh built its new warehouse two years ago it was the only one of its kind to have a five-star green rating in Sydney. “The warehouse 124

April 2016

was built to be an environmentally sound and innovative building,” said Betts. “It’s been a huge success for us, and we are now seeing it being used as a template for other buildings.” Ricoh also has a toner-recycling program, where the company picks up and re-uses emptied toners. Betts estimates 50-60 per cent of all toner cartridges will be recycled, which reduces landfill usage. Similarly, once printing machines hit end of life, they’re collected and recycled. While it’s a selling point for


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the company, it also provides a feelgood factor. “Traditionally, this industry has generated a lot of waste,” said Betts. “Now we meticulously collect everything and make sure that doesn’t happen.” SMARTER WORKPLACES Ricoh’s new head office is an interchangeable open workplace. 126

April 2016

Opened in September 2015, it is what is known as a “smart workplace environment,” where no one has a designated office space and working remotely is supported. The new activity-based working environment has increased staff connectivity, collaboration, and productivity. Most importantly, it is underpinned by Ricoh’s own technology. “One of the reasons


S U P P LY C H A I N

Company Information NAME

Ricoh Australia INDUSTRY

Manufacturing, Supply Chain HEADQUARTERS

North Ryde, NSW Australia MANAGEMENT

National Operations Manager: Mike Betts

behind this is that our staff stand by our smart workplace philosophy by utilising Ricoh’s multifunctional printers, interactive whiteboards, IT Services, Managed Document Services, projectors and so on. “We want to ensure the environment in which we and our clients work, is productive and collaborative, and an inspiring and pleasurable place to be, where staff enjoy coming to work,” said Betts.

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ON A JOURNEY TOWARD SUPPLY CHAIN OPTIMISATION BUILT TO LA

With an eye to sustainability, SunRice is on a mission to gro while improving efficiencies Written by: Sasha Orman Produced by: Glen White


AST

ow

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I

n the heart of Australia’s food bowl, Ricegrowers and the many brands and facilities it operates as SunRice, play an important role for consumers domestically and abroad. “We are trusted to transform nature’s goodness into healthy, enjoyable and nutritious foods that meet the needs of consumers around the world,” says Simone Anderson, General Manager of Operations at SunRice. Maintaining the multiple moving parts of such a large supply chain can be complex and challenging in its own right; optimising that supply chain can be even more so. But SunRice is on a journey toward making its supply chain more efficient and effective than ever before. Through this endeavor, the company is poised to push forward into new markets and new applications. STREAMLINING THE PROCUREMENT PROCESS When Frank Wohlfarth joined in 2014 to lead the SunRice procurement team, he notes that 130

April 2016

Deniliquin Site Manager, Paul Scoulla

most of the company’s procurement was centralized and focused primarily on transactions. But since then, the Procurement Manager has observed a change underway to move toward a group procurement structure to centralize strategic sourcing via Procurement Category Management. This approach aims to aggregate and bundle volume


FOOD

ar

across SunRice’s business units, consolidating the way that the company procures its goods and services in order to secure the best value for money outcomes. “The major process change to support the strategic sourcing approach has been to automate our procurement systems, in order to convert transactional roles

and administrative positions into category management positions for procurement,” he says. “These category managers are engaging across the group of business units in order to achieve the best value outcomes considering quality, service levels, and compliance in the contracts they negotiate.” According to Wohlfarth, adopting w w w. s u n r i c e . c o m . a u

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CONSTRUCTION

Leeton Packing Plant’s new pick and place robots

this strategy has helped SunRice increase its level of service to customers. “It enables us to improve our technology with strategic suppliers,” he explains, “and it enables us to better manage risk with a fewer number of suppliers across larger plant networks to support our growth journey.” IMPROVING THE M A N U FAC TU R I N G PROCESS Elsewhere throughout the SunRice supply chain, other departments

are finding their own ways to optimise operations at all levels. From the company’s Leeton mill and manufacturing facility, Head of Manufacturing Joe Trevaskis discusses continuous improvement strategies within the manufacturing process, including non-negotiable daily safety meetings and concrete standards set around issues like quality assurance and acceptable health and safety KPIs. As Trevaskis points out, a significant part of SunRice’s efficiency success comes from w w w. s u n r i c e . c o m . a u

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SunRice’s core rice range


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strong leadership, from the top down. “Leadership that is engaged and involved—that walks the walk and the talk—is pivotal in ensuring that people are aligned to high performance objectives,” says Trevaskis. “It’s about being visible and available, and it’s about daily communication and following up that people are performing their roles as expected.” Trevaskis adds that setting and maintaining high standards from a management level is critical to continuous improvement—with only bare minimum goals to strive for, staff may slide into poor habits and paths of least resistance. By setting higher operational standards to strive for, SunRice is able to keep moving its goalposts of success onward and upward. “The goals we set as management

must be ones that employees have to aspire to achieve,” he says. “If you set a goal that is mediocre, you can only ever expect to achieve mediocre standards. It is important that we set a high aspiration, and service and support the operations teams to achieve that.” TA K I N G P R I D E I N A S U S TA I N A B L E C U LT U R E “When we evaluate our vendors, we don’t do that just on price—we also look at the capabilities of our vendors,” says Wohlfarth. One critical capability that SunRice seeks out in its potential vendors is a vendor’s ability to operate with consideration to the environment. “Clean and green branding is very important for us,” he explains. “We are a premium brand looking for suppliers that have the right capabilities—and if we make sure

“It’s about being visible and available, and it’s about daily communication and following up that people are performing their roles as expected.” – Joe Trevaskis, Head of Manufacturing w w w. s u n r i c e . c o m . a u

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that we have the right partners with the right capabilities, our organization automatically becomes more sustainable.” “We also have a sustainability piece in terms of Australia being the most water efficient rice growing country in the world,” adds Trevaskis. “We can take that skill and apply it to other countries and maintain the sustainability base for the planet. We have a triple bottom line profitability perspective: we

Riviana range

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incorporate sustainable practices for people and their communities, our renowned rice products are relied upon as the main source of carbohydrate for many parts of the world, and our efficiency creates a fantastic future for the business.” MAKING A DIFFERENCE With years of experience with some of the world’s largest food, beverage and FMCG manufacturers, Wohlfarth is in a distinctive position


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to observe exactly what sets SunRice apart from the competition in terms of its supply chain operations. “We are a very small procurement team, influencing only high spend procurement categories in a fairly efficient way for the number of people that we have,” he says, explaining that this

achieved through the company’s operational strategy. “SunRice is an organization that is very handson, where changes can be made quickly inside the organization.” “We pride ourselves on that everyone can make a difference in the company. If you want to make a change in the supply market, the organization is agile enough to allow

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SunRice Supply Chain team members with the Foodbank donation

for these changes to be made in a fairly quick time frame,” he says. LOO K I N G TOWA R D FUTURE GROW TH From end to end of its supply chain, the SunRice team sees good things ahead in the near future—particularly growth and an increased reach into the Middle Eastern and Asian marketplaces. “Australia and SunRice have never been in a better position for growth,” says Anderson. “We 138

April 2016

have the opportunity to take our expertise in the conversion of rice products around the world and into the markets where we sell our products.” SunRice also plans to continue its focus on building synergies along its supply chain with vendors and suppliers. “The next 12-18 months are about where we can win and where our suppliers can win as well,” says Anderson. “How can we share the benefits of innovation? We’re really looking at supplier


AUSTRALIA

Company Information INDUSTRY

Food - Ricegrowers HEADQUARTERS

Sydney, NSW - Australia FOUNDED

1950 EMPLOYEES

2100 MANAGEMENT

relationship management, and how to extract the best value, in terms of both getting the best service levels as well as bringing worldclass suppliers into our network.” Throughout its future, sustainability will also continue to be a priority. “We have almost a duty to improve the efficiency of our growing practices in order to feed the growing global population,” says Anderson, adding that its efficiency improvements will also help the business grow throughout Australia as well as beyond. “There’s never been a more exciting time to be part of the SunRice business than now.”

General Manager Operations: Simone Anderson Head of Manufacturing: Joe Trevaskis Procurement Manager: Frank Wohlfarth

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VicRoads ta at


IMPROVING THE STATE OF TRANSPORTATION

IN VICTORIA

ackles the issue of population growth with a fresh look the state’s roadways and public transportation needs

Photo by Misheye

Written by: Sasha Orman | Produced by: Andy Turner

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The West Gate Bridge with traffic management active on the overhead gantries

W

hen Nick Fisher joined the VicRoads team at the start of 2004, the agency was known for a handful of vital but standard functions. Beyond the licenses and registrations it issues, most customers knew VicRoads primarily as a road builder. “That was its business,” he explains. “Pretty much every solution 142

April 2016

VicRoads offered as a core group of engineers was to build its way out of congestion or traffic problems.” More than a decade into the future, Fisher has risen through the ranks to his current role of Director of Road Operations, and Victoria’s roads agency has evolved as well in both vision and scope. With its latest efforts, VicRoads aims to


AUSTRALIA

ensure that customer journeys are safe, reliableand enjoyable throughout Melbourne and beyond. FORECASTING THE FUTURE TO IMPROVE THE PRESENT Each year the Victoria State Government’s Department of Environment, Land, Water and

Planning releases Victoria in Future (VIF), a document that projects population and household growth trends in Victoria up to 40 years into the future. The purpose of this forecast is to anticipate the various needs of that future population and start the planning process far in advance. Current projections see Victoria w w w. v i c r o a d s . v i c . g o v. a u

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AS4801


SUPPLIER PROFILE

Established: 1960 Industry: Towing & Transport Strategy: Nationwide has chosen a very deliberate path to build a quality-assured business platform based around ICT, WH&S and comprehensive training in support of our fleet and people that sets the benchmark for the industry. Services: Nationwide is the industry leader and completes over 300,000 tows per annum for all types of vehicles, a wide range of plant & equipment and other unique items. Other specialty services include clearway and emergency related towing and salvage. Nationwide services a broad range of customers such as state-based automotive clubs, police, road authorities, local councils and large Australian and multi-national corporations. Projects: During the past five years Nationwide has invested more than $30m in ICT, WH&S, quality, training, fleet and people. The ICT investment includes the collection of a wide array of data including video streaming from in-truck cameras, GPS tracking, speedometer reading, duress management and job status. Key to success: Nationwide attributes its success to its heavy focus on ICT, Quality and WH&S in support of its people, industry knowledge, fleet and supplier relationships. Nationwide has a partnership with a premium supplier, Prestige Hino, which extends over 10 years. This supplier relationship has developed due to the reliability and durability of over 150 Hino vehicles which is critical to enable Nationwide to deliver customer expectations. Management: Tony Re – Managing Director; Rob Nicholls – Chief Executive Officer; Lennie Jerliu – National Sales Manager Website: www.134tow.com.au


AUSTRALIA

growing to 10 million people within the next 40 years, with Melbourne in particular expanding from today’s population of 4.3 million to as much as 7.8 million by the year 2051. Melbourne is consistently ranked as one of the Top 10 livable cities in the world, and agencies like VicRoads are charged with the task of maintaining that mobility, productivity and livability for a growing population. “One of the big challenges for VicRoads is preserving our livability with a population that’s almost

going to double in a 40 year period, but with a transport network that won’t double in a traditional form,” says Fisher. “My team at Road Operations is tasked with dealing with that particular challenge around journeys, where we must preserve both well being and productivity.” MEETING NEEDS THROUGH C O M M U N I C AT I O N To achieve this task, VicRoads is taking a fresh look at the way it

The old Mitcham Road level crossing approaching Whitehorse Road in Mitcham


The beneďŹ t of an extra freeway lane at a fraction of the cost *

* Travel time using the STREAMS ITS platform on a 15-km section of the M1 Monash Freeway was reduced by more than 42% during peak periods which equates to travel time s lane (based on a four-lane cross-section) at a fraction of the cost and with minimal impact to road users.


savings achievable by adding almost an extra freeway

TRANSMAX Transmax is a full-service Intelligent Transport Systems (ITS) solutions provider that develops, deploys and supports the international award-winning ITS platform STREAMS. Transmax offers customers systems engineering, software design and development, along with a range of consulting and support services throughout the entire ITS lifecycle. We place our customers at the centre of everything we do. We are committed to the highest standards of quality, and work collaboratively with our customers to ensure our products are purpose-fit for their specific needs. Our products and services are innovative and unique – designed by experts and delivered with customer service excellence. With over 40 years’ experience developing, implementing and managing ITS, we help our customers realise the community benefits of optimising transport networks by providing smarter, more sustainable ITS solutions.

For more information, contact Transmax: +61 7 3355 8700 info@transmax.com.au transmax.com.au


SUPPLIER PROFILE

The Australian Bureau of Infrastructure, Transport and Regional Economics forecasts that, without improvements in the management of congestion, rising traffic volumes in Australian cities are likely to result in the doubling of the net social costs of congestion from $16.5 billion in 2015 to more than $30 billion in 2030. To alleviate this congestion, road authorities are increasingly turning to the Intelligent Transport Systems (ITS) rather than the traditional approach of simply widening roads. Not only can ITS be implemented at a fraction of the cost of building more infrastructure, their deployment is much less disruptive to the transport network. VicRoads engaged Transmax to undertake a trial of STREAMS (Transmax’s international-award winning ITS platform) coordinated ramp metering on a 15-kilometre section of the M1 Monash Freeway, Melbourne’s most congested freeway. Before and after studies demonstrated the following benefits: • Peak hour flow increases exceeding 10% and average peak hour speed increase of 20kph • Travel time reduction of more than 42% during peak periods which equates to travel time savings achievable by adding almost an extra freeway lane (based on a four-lane cross-section) but at a fraction of the cost •

Accidents were reduced by 30%

Daily fuel savings estimated at 16,500 litres of petrol

• Greenhouse gas emission reductions of 11% (approximately 39,800kg per day) • Economic benefits estimated at more than $1 million per day and the payback period relative to the project cost was just 11 days. ‘In Victoria, STREAMS now also manages the M80, and 75km of the M1 which includes 64 ramps and 40 lane use signal gantries,’ says Transmax Managing Director, Mark Williamson. ‘As well as the quantifiable benefits, STREAMS Managed Motorways realises social benefits including: community satisfaction through noticeable improvement; reduced stress; financial savings; increased comfort; and improved availability and quality of information on road networks.’ STREAMS Managed Motorways has the ability to maximise the capacity of existing road infrastructure and reduce travel times while improving day-to-day reliability and safety outcomes. Through the implementation of STREAMS Managed Motorways, road traffic authorities are able to benefit from the capabilities of a fully integrated ITS platform that can deliver substantial improvements in traffic management and safety. Website: www.transmax.com.au


VICROADS

AUSTRALIA

approaches problem solving. This includes working directly with the communities it serves to find out exactly how to meet its needs. “VicRoads recently released its new four-year strategic commitment, which includes our vision and how we intend to deliver on that vision,” says Fisher. “Unlike in the past, where we’d typically come up with an engineering solution that we would then tell the public and the customer about, we’ve substantially changed our approach. We now engage with our customers, understand what

it is about their local area that they enjoy most, and then build a solution around the needs of the community.” This approach, which includes annual satisfaction surveys, has yielded communication around which VicRoads can build concrete action plans and goals. “What our customers are telling us is that they would like the ability to plan their journeys in an easier way before they make them, and to ensure that those journeys are more predictable. If something does happen, they want to be told what

“VicRoads recently released its new four-year strategic commitment, which includes our vision and how we intend to deliver on that vision.” – Nick Fisher, Director of Road Operations w w w. v i c r o a d s . v i c . g o v. a u

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ATSC4 with Internal Uninterruptable Power Supply (UPS) for Traffic Signals

Delivering successful projects from Hobart to Dublin and many cities in between, we are totally committed to designing and integrating advanced electronic road network management products and providing adaptive engineering services to the traffic control and global ITS management industry. Having designed & developed the latest SCATS® compliant Traffic Signal Controller (ATSC4) that is Type Approved by the Roads and Maritime Services Authority (RMS) of New South Wales Australia and VicRoads, these ATCS4’s are now controlling more than 2,500 intersections globally with more than 600 in Victoria. Leading the market, ATC has deployed the first controller in the world with the RMS VC6TRAFF software. Our ATSC4 SCATS® Controller is significantly more capable & flexible than any other on the market.

ATSC4 SCATS® Traffic Signal Controller

ATC delivers, implements & maintains the RMS SCATS® software for international customers and provide support services from its network of SCATS® practitioners and traffic engineering staff.

Aldridge Traffic Controllers Pty Ltd Building N, 10-16 South Street, Rydalmere NSW 2116 ABN 44 098 257 035

Telephone: +61 2 8846-5599 Facsimile: +61 2 8846-5590

Web: www.atsc4.com.au


VICROADS

AUSTRALIA

we’re doing about it and find out easily what their alternatives are. They want to know that their journeys will be safe— and post-journey customers are telling us they would love to be able to give feedback on how their journey went.” SHORT TERM AND LONG TE R M GOA LS To address these customer needs as well as business needs, VicRoads has first identified several short term priorities including delivering more predictable journeys and moving freight more efficiently. As a key part of realising the goals in these priorities, VicRoads is

SUPPLIER PROFILE Employees: 40+

Overnight works to lift beams into place for the bridge over Cheltenham Road in Keysborough as part of the Dandenong Bypass

ATC - MOVING TRAFFIC

Established: 2001

Industry: Transportation, Supplying the global Intelligent Transport Systems market Worldwide distributors and integrators of; SCATS® software and SCATS® Traffic Signal Controllers and associated hardware and software. Services: SCATS® Installation & maintenance, adaptive traffic engineering services, training & consulting, Electronic Engineering, Design & Manufacturing of advanced traffic control devices. Ongoing Projects: In more than 12 Countries throughout Asia, Middle East, Europe and America. Management: Andrew Bull - Managing Director Website: www.atsc4.com

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BRAUMS proudly delivers the world’s very best ITS solutions to the Australian & New Zealand markets. With ATC and SWARCO-FUTURIT as our key technology and product supply partners we offer best of breed solutions to our market. BRAUMS is the leading Australian supplier of the latest in LED Traffic Signals HPSM Technology. Proudly the first Company to gain the approvals of this technology across Australia and New Zealand (including RMS NSW and VIC ROADS). Having provided the first significant roll out of this technology in the region in 2012 we now have more than 50,000 HPSM LED Traffic Signal aspects deployed and growing fast. Our depth of engineering experience has also led to a more robustly designed and manufactured Pedestrian Detector and Audio Tactile unit. This robust design has become the preferred product as they are proven to be reliable, not only for general use but also in areas that experience high rates of vandalism. BRAUMS have partnered with SWARCO-FUTURIT and introduced a new leading edge full matrix RGB VMS technology to our region. This technology provides rich fully saturated colours at high intensity with very low current usage. This VMS provides road users with strong sharp text display as well as pictogram displays without needing a dedicated graphical section, text and graphics can be located wherever needed. (available with NTCIP and RMS protocol) We understand our ITS market not only requires the best technology but also exceptional service and support. Our experienced team of qualified Engineers and Partners have decades of industry experience ensuring our customers receive the best possible products, solutions and service.

Braums Pty Ltd Building N, 10-16 South Street, Rydalmere NSW 2116 ABN 31 150 551 732

Telephone: +61 2 9684-3300 Facsimile: +61 2 9684-3390

Web: www.braums.com.au


VICROADS

looking at transportation altogether in a different way. “We’re in the business of moving people and goods. We recognise a diverse choice of transportation modes for our customers—cars, trains, buses, trams, and active transport modes including walking and cycling,” says Fisher, noting that use of public transportation in Melbourne is growing rapidly at a double-digit rate, each 5-year census period. “If we’re going to be successful in moving people in such a rapidly growing city, as

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a roads organisation we have to really embrace public transport as a solution to the future for moving people, as opposed to just more cars.” VicRoads is taking several steps toward improving journeys for both driving and public transport options. Some of these steps include installing Bluetooth readers at traffic signal sites to accurately measure and predict travel patterns and travel times, capital investment into Victoria’s successful managed motorways, and the development

SUPPLIER PROFILE

BRAUMS PTY LTD

Employees: 35+ Industry: Transportation, Supplying the Intelligent Transport Systems market Australia’s LEADING HPSM Traffic Signals Company. Having partnered with the world’s leading signal and VMS manufacturers SWARCO-FUTURIT, together with ATC, BRAUMS delivers innovative and advanced technology to benefit Road authorities and users. Services: Electronic Engineering, Design, Manufacturing and Integration of advanced ITS devices. Management: Andrew Bull - Managing Director Website: www.braums.com.au

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Photo by Misheye

The Tullamarine Freeway and M80 Ring Road hosted a visual tribute to commemorate the centenary of ANZAC

and impending relaunch of the VicTraffic app. “Some years ago VicRoads released its first version of VicTraffic to provide customers and travelers with some data around congestion levels on the network,” says Fisher. “By next year, we’re looking to relaunch that app with substantial improvements. For example, Victoria Police can close roads during incidents. When there are 156

April 2016

such unforeseen circumstances, how do we get this information to customers and then provide available alternatives? That’s a gap we want to be able to fill using the VicTraffic app and other communication channels.” L O O K I N G A H E A D AT W H AT ’ S N E X T VicRoads has significant plans for the year ahead, especially at the


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Intelligent Transport Systems (ITS) World Congress taking place in Melbourne in October 2016, where the agency will display some of its biggest initiatives and engage the industry for collaboration. “One thing that’s very important to us is that we need to partner with the industry to make this successful,” says Fisher. “The Congress is one place where we’ll be showcasing some of the initiatives that we want to deliver on, but also we want the industry to

“We’re in the business of moving people and goods. We recognise a diverse choice of transportation modes for our customers —cars, trains, buses, trams, and active transport modes including walking and cycling.” – Nick Fisher, Director of Road Operations w w w. v i c r o a d s . v i c . g o v. a u

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VICROADS

VicRoads recently installed 70 concrete bridge beams over the Princes Freeway to form the new Sneydes Roda interchange in Werribee

better engage with VicRoads to help Victorians.” VicRoads is also turning a strong focus to freeway improvement to support the region’s large population of motorists, and has 158

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partnered with Public Transport Victoria to support the growing population of mass transit users. “We’ve partnered with PTV to understand how we can prioritise public transport movements,


AUSTRALIA

Company Information NAME

VicRoads INDUSTRY

Transportation / Construction HEADQUARTERS

Kew, Victoria - Australia ABOUT

VicRoads purpose is to deliver social, economic and environmental benefits to communities throughout Victoria by managing the Victorian arterial road network and its use as an integral part of the overall transport system

particularly public transport modes that are on-road,” says Fisher. “At the moment we have a tram system that’s the biggest in the world. There are a lot of opportunities, and we will be working with PTV to see how we can make that far more successful. That is the future for us.” w w w. v i c r o a d s . v i c . g o v. a u

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THE A

COME CL COMPLE

DSV is taking logistics to a customer-oriented servic

Written by: Mateo Rafael Tablado Produced by: Andrea Duque Interviewee: Torge Koehnke, Vice-president to Latin America for DSV


AMERICAS

LOSER THROUGH ETE SERVICE

a new level in Mexico and Latin America with a new ce strategy


DSV MÉXICO

DSV

is a global Danish freight and logistics enterprise established in 1976. In a relatively short time, the company has become successful by taking giant steps toward vertical integration, with a growth strategy of acquiring competing companies. Air, highway, sea and rail freights are managed from DSV locations in more than 80 countries. The corporation’s stocks are among those with the most interactions in the OMX Copenhagen Stock exchange. DSV is also a recipient of awards and other accolades for its excellence in operations as a purveyor to global companies. DSV Mexico was created in 2009, after the corporation acquired Belgiumbased ABX

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Key People

Logistics. DSV is currently experiencing growth at a global level after the acquisition of UTi Worldwide in late 2015. DSV’s main clients in Mexico include companies within the automotive, aerospace, and pharmaceutical industries, in addition to others. DSV’s lean management practices discard the need for multiple level positions, avoiding unnecessary interactions and paperwork internally. The company’s team structure is limited to a chief with direct report operators, with both positions understanding each other’s responsibilities. Torge Koehnke is Vice-President to Latin America for DSV. Born in Hamburg, Germany, Koehnke graduated from The German Actuarial Society (DAV) in economy and logistics. As an experienced shipbroker, Koehnke moved to Sao Paulo, Brazil, where he worked for Dacotrans as the company’s representative in the country during 2002. In 2006, Koehnke moved to Mexico and was hired by ABX Logistics, which was purchased by DSV two years later. Efficiency aiming customer satisfaction DSV has operations in Mexico City, Monterrey, Guadalajara, Queretaro, Puebla and Merida, adding Chihuahua after the UTi acquisition. The company’s level of client satisfaction w w w. m x . d s v. c o m

Torge Koehnke Vice-president to Latin America for DSV Torge Koehnke is Vice-President to Latin America for DSV. Koehnke was born in Hamburg, Germany, and graduated from The German Actuarial Society (DAV) in economy and logistics. Koehnke, an experienced shipbroker, moved to Sao Paulo, Brazil, where he worked for Dacotrans as the company’s representative in the country during 2002. In 2006, Koehnke moved to Mexico and was hired by ABX Logistics, which was purchased by DSV two years later.

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DSV MÉXICO

Mid-sized and large-scale corporations rely on DSV in more than 80 countries

has undergone a radical transformation with the “WOW Service” policy, a brand promise committed to bring the best possible service in timely deliveries, freight data, alerts, notifications, billing, shipping estimates and other factors. DSV Mexico’s personnel is constantly enrolled in workshops and updating seminars regarding international

“We’ve turned this ship 180 degrees, becoming focused on customer service by deploying the corporation’s ‘A to Z’ system, from beginning to end of every operation,” said Koehnke.

business operations

Client-oriented resources for an improved service DSV offers a wide array of tools for customers from the moment they engage the company Aside 164

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Efficiency and client-oriented resources

from providing now standard data such as GPS monitoring of freights in transit, the system also provides an estimating tool for cargo insurance. This dashboard is able to provide real-time solutions according to shipping distance, weight, freight lines quotes and other factors. The company’s purchase order management system helps locate items quickly according to different categories. DSV also refers to RFID signals for storage operations. Resourceful acquisitions DSV’s vertical integration leaves few openings for third-party involvement for key tasks within w w w. m x . d s v. c o m

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“We are a global company, and we are also focused in medium-sized enterprises, since we are able to provide them of a personal, custom-size service” – Torge Koehnke, Vice-president to Latin America for DSV

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DSV MÉXICO

DSV’s dashboard makes it easier to obtain estimates for freight forwarding and even insurance

the company’s procedures. DSV hires in-house custom brokers, and the recent UTi acquisition — approved on January 2015 by the European Union — has increased the corporation’s resources, mostly for storage purposes in countries like Mexico. The UTi acquisition increased the company’s resources for storage solutions

Air and sea freights agencies, as well as land transport companies operating in NAFTA territory, are the most important purveyors in DSV Mexico’s supply chain. Skilled staff DSV Mexico’s HR department evaluates capabilities both for new hires as well as for

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current personnel. Most of the company’s staff is bilingual and college educated. Still, the company is always open to help employees in financing half tuitions for most continuing education opportunities, particularly in language. It also favors temporary staff exchanges within the corporation’s locations in the United States, Europe, India, Brazil and others. For custom brokerage updating courses, DSV Mexico’s employees are enrolled in Dr. Alberto Ruiz’s workshops; Ruiz is an authority regarding international business law in Mexico. “Most of our staff earned a degree, we have a corporate trainer to familiarize our staff with our work dynamics. Our kids here take foreign language lessons: English, French, German. We do our best at enrolling them in foreign trade learning workshops,” the executive said. Delivering better lives, inheritance from UTi After the recent UTi acquisition, DSV inherited the former’s community outreach program “Delivering Better Lives,” supported by donations to improve children’s wellbeing in vulnerable communities worldwide. Communities in Argentina, Brazil, Chile and Mexico have benefitted from this program.

The automotive industry, globally, is one of DSV’s most important clients

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Norteamérica Asia (TPM+TPL+AN2)

(MPS)

(GCS + GS1

Norte de Europa (AX2)

Mediterráneo (GM8+MPS) Caribe (GCS)

Ocenía vía (ANP+WAS+WAN)

Costa Oeste (AN1+AN2+WCCA) Costa Este (GS1+SCS)

LA NAVIERA PREMIUM DE LATINOAMÉRICA Hapag-Lloyd es la compañía naviera líder en México especializada en el transporte marítimo de contenedores, tanto secos como refrigerados. Le ofrece Servicio directo con salida en día fijo de y hacia México al Norte de Europa, Mediterráneo, Estados Unidos, Canadá, Centro y Sud América, Lejano Oriente y Oceanía, así como transbordos a otros destinos en el mundo. Ponemos a sus ordenes nuestra extensa red de oficinas en la República Mexicana.

Ciudad de México Tel. 55 54478100

Guadalajara, Jal. León, Gto. Tel. 333 36301831 Tel. 477 7184091

Aguascalientes, Ags. Hermosillo, Son. Tel. 449 9965434 Tel. 662 2109800

www.hapag-lloyd.com/mexico

Mazatlán, Sin Tel. 669 9100062

Mérida, Yuc Tijuana, BC Tel. 999 9262664 Tel. 664 6818632 Monterrey, NL Tel. 81 5000 9028


L AT I N A M E R I C A

Company Information

Short and long-term goals DSV Mexico’s main competition is within the same corporation. Delivering optimal results at a global level is top priority. As for new activities, DSV is engaging in the wind power industry, and in the short term it will be very active within this sector. Business activity in Latin America is increasing, which means a busy year for DSV. A new a location in Uruguay is planned to open during the first half of 2016. DSV Mexico answers to a long-term plan from 2015 to 2025. Some of the set goals for this period include increasing the companies’ locations, increasing the workforce, and cracking the top 100 list of companies in the Great Place to Work rankings.

NAME

DSV México INDUSTRY

Supply Chain HEADQUARTERS

México, Capital, México FOUNDED

1976 global, 2009 in México EMPLOYEES + 200 WEBSITE

www.mx.dsv.com

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Written by: Mateo Rafael Tablado Produced by: Andrea Duque Interviewee: Cristiaan Landeo, CEO for Impala Terminals Peru

PERU’S IDEA

for minerals manage

Experience, a unique loca these key factors have taken Im


AL PARTNER

ement and logistics

ation and key investments: mpala Terminals Peru to the top


I M PA L A T E R M I N A L S P E R Ú

I

mpala Terminals is one of the Trafigura group’s most important resources in the commodities trading sector. Impala’s presence in Peru dates back to the mid-1980s, and has maintained steady growth through decades of operation. Giant steps and consistent, clear policies have turned Impala into a worldwide reference for commodities management. During 2001, after earning a concession to operate a large, state-owned mineral storage facility, Impala Peru’s operations went from 400K tons a per year to more than a million. This was no easy task, especially since the entire team had to convert its culture from a state-run company to a global enterprise with set standards, policies and goals. Impala Terminals at Callao (just six miles from Lima) is a 44.4 acre facility, connected with the city’s port. This enables the company to deploy concentrated minerals in a safe, efficient, and environmentally friendly way at a rate of 2,000 tons per hour.

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Key People

“Impala was able to install an efficient system for commodity management that interacts in a harmless way with the immediate community and environment,” Cristiaan Landeo explained. Landeo, CEO for Impala Terminals Peru, graduated from the National Engineering University (Peru) in 1996 in metallurgy engineering. He was hired by Trafigura in 1998 as an operations manager. Even though Landeo’s entire career has been dedicated to Trafigura, he has managed operations in countries such as Impala Chile and Mexico. Knowledgeable in every process within the company’s operations, he was named CEO for Impala Terminals Peru in 2015. “Since joining Trafigura, I became passionate about logistics and catering to the commodity industry,” Landeo said. Talent -and solutions- for export Impala Terminals Peru’s location provides for unique advantages. Its facilities are less than a thousand feet to the port, with a two-mile enclosed conveyor belt connected to loading and unloading docks. It also

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Cristiaan Landeo CEO for Impala Terminals Perú Landeo, CEO for Impala Terminals Peru, graduated from the National Engineering University (Peru) in 1996 in metallurgy engineering. Landeo was hired by Trafigura in 1998; and though his entire career has been dedicated to Trafigura, he has managed operations in other countries such as Impala Chile and Mexico. Originally an operation manager, he is knowledgeful of every process within the company’s operation. He was named CEO for Impala Terminals Peru in 2015. 175


I M PA L A T E R M I N A L S P E R Ú includes a railroad track, since most minerals for export are brought via train from Central Peru.

A strategic location, railway track and conveyor belts between the facility and loading

The business model developed at Impala’s Peruvian location has been exported to all other Impala locations in Latin America and China; in fact, different members of the Impala Peru staff have been required to travel abroad to share their knowledge within this system.

docks at Callao... Impala Terminals Peru is, by far, the best partner for minerals export

“Our know-how in commodity management has resulted in an export-quality business model that our corporation has deployed in other locations,” the executive said. High impact tech revolutionizing everyday procedures Impala Terminals Peru has improved their operations’ dimension dramatically after a wagon tippler was acquired in 2013. This heavy-duty machinery is able to unload up to ten wagons per hour, which translates into an exponential improvement in productivity, rising from a traditional 15 emptied wagons during a busy tenhour shift. The tippler is connected to another conveyor belt that leads to a remotely controlled automated shipping system. Regular management operations are run by a custom-made system named DBCT, which encompasses every process from weight scales,

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sampling and other floor operations to lab procedures, accounting and other duties. This software connects via interface with the Agresso ERP (now known as Unit4). Freight forwarding, new growth area Impala Terminals Peru is not stopping at carrying out operations for more than 50 percent of minerals shipped from the port of El Callao. In an ambition to offer the best available services within the sector, the company is offering freight forwarding, beginning in 2015. This new service line has already shipped more than half a million tons in shipped containers from Callao. A 108,000 sq. ft. area is being conditioned to store containers used for this service, with the expectation of also performing customs procedures from this terminal. “We are looking forward to consolidate this business unit by incorporating a specialized area within our warehouse,” Landeo said. Purveyors in key operations Impala Peru’s strategic allies include the private security agency in charge of the facility’s surveillance, waste management from a specialized company, and lifts’ and other machinery’s regular maintenance is carried by the original equipment dealer, which also happens to

Impala favors its workforce development and eagerness to learn new skills

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“Impala

is a factor for

mining development within

our country

by providing solutions in the logistics field” – Cristiaan Landeo, CEO for Impala Terminals Perú

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I M PA L A T E R M I N A L S P E R Ú

{

Impala Peru’s know-how became a model for other Trafigura group operations abroad

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be Caterpillar’s representative in Peru. Freightliner companies are also an important part of Impala’s new shipping service. “We have a busy supply chain management agenda; our purveyors are constantly under evaluation, since we try to deal with companies that share our same values and standards,” the CEO said. Staff development at every level Human resource development is not an afterthought for Impala Peru. Prospective employees are screened through different


A M E R I C A L AT I N A

}

Impala Peru’s staff is frequently required to travel to different locations within the group to share their knowledge

processes, including tests held by a third party. New hires are first introduced to the company’s whole operation, and afterwards they are trained for their specific duties at their position. Impala Terminals Peru’s development policy allow for constant training. A number of employees that started in basic operations have worked on obtaining new skills along their career at Impala, which has earned them promotions; some have even obtained college degrees. “One of Trafigura’s traits globally is to allow individual development among its workforce,” Landeo said.

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Wagon tippler, 100-ton capacity

Environment and surroundings Impala Terminals Peru’s awareness of lead pollution conditions in the Callao area have led to specific actions to reduce its impact on the environment. A $170 million investment has permitted Impala Peru to install an efficient mineral management system with enclosed areas and conveyance systems, looking after both its employees’ and the surrounding community’s health. The 31-acre warehouse — to be used exclusively for lead storage — will become the world’s largest roofed facility to conceal this concentrated mineral. These and other efforts, in both the company’s facilities and procedures, have earned Impala Terminals Peru ISO:9000, ISO:14000 and OHSAS 18001 certifications. 182

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Impala Terminals Peru invests important sums in actions able to increase safety and security both inside and out of its facilities

In other efforts to improve living conditions for its surrounding community, Impala Peru, through Trafigura Foundation, creates and supports development programs for the Puerto Nuevo and San Juan Bosco areas. These programs aim to provide proper nutrition and education, creating new opportunies for people whose impoverished living standards can limit their future and raise their exposure to crime and other risks. “We’ve helped more than 2,500 individuals throughout the years with support from our social development plans. All our investments are focused on becoming a better neighbor,” the executive said.

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A M E R I C A L AT I N A

Company Information

Forecast Companies involved in commodities trading are taking measures, due to the current slowing down in the market. Impala Peru has adjusted to this condition to keep delivering the same efficiency without raising its quotes. This strategy has been crucial to manage and detect improvement areas in operations and costs, and to be prepared for an imminent market recovery in one or two years. These are also proper methods for consolidation of the freight forwarding operation, as well as for exploring a possible concession to operate in the port of Salaverry, in northern Peru, which will mean another outlet to the Pacific Rim.

NAME

Impala Terminals PerĂş INDUSTRY

Logistics for mining HEADQUARTERS

Callao Callao, PerĂş FOUNDED

1983 (as CORMIN Consorcio Minero) EMPLOYEES

283 REVENUE

US$60 million WEBSITE

www.impalaterminals.com

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Profile for Supply Chain Digital

Supplychain Digital magazine - April 2016  

Supplychain Digital magazine - April 2016  

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