Supply Chain Digital - May 2016

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May 2016

THE VALUE OF

PROCUREMENT Find out how G4S has been able to make significant savings and drive efficiencies across its operations HOW TECHNOLOGY CAN TRANSFORM PROCUREMENT

5 WAYS to remove roadblocks in omni-channel order fulfilment

Learn More

IN THIS ISSUE

EDITOR’S COMMENT

H E L L O A N D W E L C O M E T O the May issue of Supply Chain Digital.

We speak to Group Procurement Director Shaun Carroll at G4S, who explains how the security services company has been undergoing a change in culture, and is placing procurement closer to the heart of its international operations.

This issue features a range of company profiles, from DHL Supply Chain Africa to Qatar’s Port Management operations. We also explore the successes of Syngenta AG, Zinnovate, Masar Railway Management & Services Co, NAS Group, and Alsafwa Cement Company.

Subramanyam Venkataraman and Sulabh Jain from global services company Wipro outline five roadblocks to omni-channel order fulfilment and how these can be subsequently overcome. Florian Winterstein, Chief Strategy Officer at BravoSolution, discusses how procurement leaders can maximise technological innovation to create value, and we also speak to Lewis Marston, CEO of Rocket Consulting, and Colin Fearon, Senior Solution Consultant for Warehouse and Distribution at Arla, about the successful rollout of a new SAP EWM. We hope you enjoy the issue, and if you have anything to add, don’t hesitate to tweet @MrNLon and @SupplyChainD Enjoy the read,

Nye Longman EDITOR nye.longman@bizclikmedia.com 3

14th Annual

North American 3PL Summit & Chief Supply Chain Officer Forum June 20-22nd , Radisson Blu Aqua, Chicago The 3PL Shake-Up: Find your Route to Growth in a New Era of Technology, Consolidation and Market Uncertainty and Your Roadmap to Supply Chain’s Data Driven Transformation

The 3PL Summit and Chief Supply Chain Officer Forum is North America’s largest and most high-level gathering of logistics executives and their manufacturer and retailer supply chain counterparts. With over 700 attendees, gather to network, learn, debate challenges discuss trends and share ideas.

Join C-Level 3PL Executives as they Discuss Innovation and…

• Technology Start-Ups: A Threat to Traditional 3PL Models, or an Opportunity?

• Disruptive Technology: Hear from the drone makers, 3D printing wizards, the driverless car manufacturers and robot creators • Logistics Data: Explore how to monetize and guard logistics data; the next crucial asset for an LSP • M&A: Making sense of the last year of consolidation and evaluating the next steps for you company.

• 3PL-Customer Relationships; Evolving alongside the voice of the shipper; logistics liability and risk allocation Plus, Hear Directly from Senior Supply Chain Speakers as they Discuss: • Smart and Intelligent Data: The Biggest Weapon in your Supply Chain • The Evolution of the CSCO in the Digital World • Corporate Social Responsibility: Engage with social change to drive customer loyalty

The speakers at this year’s 3PL Summit & CSCO Forum have been hand-picked for their expertise, influence and leadership. 2016 is the most prestigious speaker line-up to date.

Top 3PL Speakers from: C.H. Robinson ArcBest Damco Americas Roadrunner Transportation Transplace Echo Global Logistics ARMADA DSV Logistics

Top-Level Supply Chain Representation from: XPO Logistics CEVA Neovia Logistics Syncreon VersaCold Kane Is Able BNSF Logistics And More…

Avnet Mead Johnson Nutrition Toyota Motor Walmart Cargill Bloomberg Caterpillar Sears

Raytheon Company La-Z-Boy Sealed Air Emerald Performance Materials Morton Salt Jabil Claire’s And More…

Complimentary passes are available for senior supply chain executives at retailers and manufacturers

For more information contact: Sarah Reynolds Research Director Tel: +44(0)2074224323 sreynolds@eft.com http://events.eft.com/3pl/ http://events.eft.com/csco/

Organised by:

F E AT U R E S

The modern dairy

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

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TECHNOLOGY

Procurement Transformation

TOP 5

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5 roadblocks to omni-channel order fulfilment 5

C O M PA N Y P R O F I L E S EUROPE

AFRICA

30 G4S

130 DHL Supply Chain Africa

50 Syngenta 74 Zinnovate

USA

MIDDLE EAST

142 Amerisan

84 Al Safwa Cement Company (ASCC)

AUSTRALIA

96 Masar Railway Management & Services Co 106 NAS Group

152 Sydney Trains

LATIN AMERICA 170 TRUCKA

Zinnovate

116 Qatar Port Management

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Qatar Port Management

84

Al Safwa Cement Company (ASCC)

DHL Supply Chain Africa

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May 2016

130

74

Sydney Trains

G4S

30 Amerisan

142

50

152

Syngenta

NAS Group

106 96

Masar Railway Management & Services Co

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The modern dairy Edited By: Nye Longman

Supply Chain Digital speaks to Lewis Marston, CEO of Rocket Consulting and Colin Fearon, Senior Solution Consultant for Warehouse and Distribution at Arla about the successful rollout of a new SAP EWM

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

HAVING INVESTED IN a new SAP Extended Warehouse Management (EWM) system at its dairy in Aylesbury, Arla was keen to make use of the ‘built in’ Material Flow System (MFS) functionality to control the Automated Guided Vehicles (AGV) which handle the movement of milk trolleys in the cold store. Rocket Consulting works with Arla as a strategic SAP partner on the EWM system. The supply chain and mobility specialist was selected by Arla for its knowledge, expertise and experience across four key business and technical levels: supply chain and mobile (a skillset that Rocket has since expanded to include the Internet of Things); SAP technology; food and beverage industry; and Arla’s business and its process.

How does Rocket’s implementation of a SAP EWM system ensure efficient operations while also taking serious heed of environmental impact?

Marston: Rocket’s implementation of an SAP EWM drives operational efficiency as a result of introducing highly automated processes, seamless 10

May 2016

integration into a single platform and mobile workforces.

The largest fresh milk factory in the world, Arla’s new diary processes and packages the equivalent of 1.5 million bottles of milk per day. That equates to hundreds of kilometres of movement every 24 hours, requiring that a traditionally labourintensive environment is made as

operationally efficient as possible.

What aspects of the EWM set it apart from other competitors?

Marston: Initially, Arla had implemented warehouse management (WM) in its SAP ERP system at its National Distribution Centre, but as the landscape grew and the number

of service windows increased, Arla decided to move its operations to a decentralised version of SAP WM. This initially worked well, but as the demand for new functionality and automation increased it was clear a new solution was needed to support the company’s strategy of standardisation.

Arla’s fast-moving national distribution centre started off with 11

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

a direct link to the company’s ERP system through the handheld scanners used by the teams on the shop floor. Because there was a significant amount of ERP downtime it was challenged by the business to come up with a more stable solution.

Initially it implemented a decentralised Warehouse Management System so that it could keep the supply chain running if the ERP went down. But it knew that longer term it would need to look at Extended Warehouse Management (EWM), partly to ensure a solution to meet the growing demands of the business and partly to ensure on-going release of new standard functionality from SAP. Fearon: We wanted to go back to more standard functionality. Within Arla we have guiding principles of stability, people, and standardisation. One of our big drives is to standardise our solutions. The reason we customised WM so much is that it didn’t deliver what we required as a business at the time, whereas EWM has a lot more capability as standard that fit with what the business needed.

Marston: Arla also needed a 12

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solution that would be integrated to production systems within the SAP ERP platform and to the AGV control system. Voice picking and other voice guided processes as well as RF processing was important to Arla to drive efficiency and easy product handling in the cold store environment.

The company decided to invest in a new SAP Extended Warehouse Management (EWM) system. In part this was to make use of the ‘built in’ Material Flow System (MFS) functionality to control the AGVs which handle the movement of milk trolleys in the cold store.

What were the challenges involved with the implementation of such a large project?

Marston: Numerous, significant challenges were mitigated through application of Rocket’s project delivery approach, methodology and values to deliver a practical, robust, joined-up solution. In particular, Rocket successfully combined a complex IT and operational technology landscape in a multi-vendor environment.

Specifically Rocket Consulting took

a holistic approach to Arla’s systems, technology, organisation and people, ensuring there was tight alignment across IT and operational technology and that there was the correct mix of resources. It focused on an end-to-end business process, working closely with selected business partners and driving technology-enabled business benefits that incorporate best practice, thought-leadership and innovation.

Rocket also used standard SAP wherever possible, combined with its own ‘Rocket Packs’, and developed a template solution. This will make it straightforward and cost-efficient to roll out future project implementations.

What did winning the 2015 SAP Quality Award for Innovation and the 2015 Best Factory

Award for Innovation mean for Rocket Consulting?

Marston: Arla’s awards are welldeserved. The company understands the importance of innovation to run better, differentiate itself and create competitive advantage, as well as the need to increase return on investment by maximising its use of strategic SAP platforms.

The SAP Quality Award provides independent and credible endorsement of Rocket Consulting’s way of working to deliver projects that meet the customer’s business objectives.

This focuses on initiatives that use a holistic methodology to increase the speed of implementation, drive down software-to-services ration and reduce total project costs.

Procurement Transformation

Technology speeds the way from cost control to value creation

Written by: Florian Winterstein, Chief Strategy Officer at BravoSolution Edited by: Nye Longman

Florian Winterstein, Chief Strategy Officer at BravoSolution, discusses how procurement leaders can maximise technological innovation to create value

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TECHNOLOGY AND TRANSFORMATION. The two go almost hand-in-hand with promises of breakthroughs in innovation, efficiency, productivity and more.

Technology has transformed so many aspects of business it’s almost impossible to imagine major change taking place unless enabled by some kind of technology.

Procurement leaders recognise this and view technology as a force for positive change as they navigate various challenges: economic volatility, 16

May 2016

talent shortages, supplier risk – the list goes on. For many, overcoming these obstacles will drive substantial investment in procurement technology.

In a new study from Deloitte of more than 300 CPOs from around the world, 30 percent cited planned investments in core solutions, including

• Spend analysis • Contract management • eSourcing • Supplier relationship management

TECHNOLOGY At the same time, the survey found the majority of respondents believe they lack a clearly defined technology implementation strategy and understanding of how to digitalise procurement. The disconnect between embracing technology as a gamechanger and the seeming reluctance to invest in the up-front planning required for success is not new. Getting past it however, requires new thinking about the role of procurement and the value technology delivers to the job and more importantly, to the organisation as a whole. To summarise: procurement can reach lower hanging fruits with game changing technologies, but the technology needs to be enabled by a business and knowledge based digitalisation strategy and approach.

Beyond cost control: the new horizon in strategic rocurement Cost-cutting and spend management have always been at the heart of procurement, and that remains true. Procurement is seen as the first, last and best line of defense for keeping costs down. What is changing however, is the realisation that a more holistic view of spend and demand may be more effective when it comes to cost management. Savvy

CPOs are re-examining their strategies and asking, first, how procurement can collaborate with other functions to support the goals of the business overall, stakeholders, customers and even suppliers.

The paradigm positions procurement not as reactive function – filling orders based on what’s needed – but as a strategic partner in fulfilling the mission of the organisation. In this new model, procurement provides an avenue to growing revenue and profitability by harnessing the supply markets to optimise service and delivery. There are two takeaways here: the first is strategic procurement orchestrates value creation across the entire value chain by providing an advanced framework for collaboration across departments and functions. The second is that strategic procurement adds value at the heart of the company through innovation, revenue and growth, on top of hard cost savings and efficiency gains.

The shifting role of technology For almost 20 years, procurement technology has given CPOs ways to see, understand and control spending. It has helped standardise 17

TECHNOLOGY best practices, enforce compliance internally and externally and reduce the burden of data management on procurement teams.

As procurement teams seek to move from being seen by others in the organisation as a bottleneck focused tactically on driving the lowest possible price from every transaction, the role of technology is shifting, too. Moving beyond the cost of an item, or even the landed cost, to consider the value derived over a period of time requires applying technology to discover a much broader and deeper view of the supplier relationship and the supply market.

Building an integrated platform that brings the key areas of strategic sourcing together: spend analysis, eSourcing, contract management and supplier relationship management, gives procurement teams an immediate pathway to generating more value, reducing risk and influencing innovation.

This holistic approach engenders collaboration both with suppliers and internal cross-functional stakeholders to inform decisions based on value to the overall business objective.

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When combined with supply market analysis, the platform model moves beyond transactional silos towards compelling category management and supplier strategies. The result is confidence in having the most strategic suppliers at ideal price points and high quality goods and services that are aligned with customer needs and a company’s differentiation strategy.

Strategic sourcing technologies at-a-glance: what they do Spend analysis identifies saving opportunities and correct compliance

breakdowns to ensure value is captured on negotiated savings.

The tools aggregate spend data from disparate systems; cleanse and classify data into a common classification structure; and perform multi-dimensional analysis.

Contract management ensures day-to-day management and compliance at all stages of the supply lifecycle, improves negotiation, adds efficiency and enhances visibility. eSourcing improves procurement effectiveness and helps find optimal award opportunities based on the right price points, and considers

business needs and overall procurement strategy for optimal value creation beyond traditional cost breakdowns.

Supplier relationship management: Improves supplier lifetime value by turning transaction based interactions into strategic relationships and reduces risk with immediate visibility into potential supply disruptions.

The solution offers a platform for innovation and for tying supplier and category strategy together, and also allows teams to clearly see a summary of interactions with suppliers, understand relationship 19

TECHNOLOGY as a process, and create fact-based improvement plans for continuous supplier development.

Maximising technology’s ROI Technology is a great enabler, but it works best when introduced to resolve a defined challenge or exploit a clear opportunity. The best place to start is with the business case.

Whether you are trying improve efficiency, optimise asset utilisation or strengthen effectiveness, articulating the rationale behind the investment establishes clear expectations and outlines how success will be measured from the very beginning.

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Once you’ve built the case, it’s time to engage with a vendor. Listen with an open mind to what they offer and learn how others have gained value from their solution. Ask yourself – and them:

What level of expertise does the company bring to my business?

What limitations are there on scalability?

What can they teach me about best-practices in the discipline and how do they support my journey to increasing maturity?

Is the approach purely driven by technology? What capabilities are available to help my organisation ramp-up?

What is the company’s commitment towards value creation and what is the commercial model for it?

Does the company really offer strategic procurement and a pathway to maturity? What does their roadmap towards game changing and disruptive technologies look like Be certain that the partner you choose is with you from the start of implementation to launch day and beyond, available to answer questions, navigate the inevitable ‘gotchas’ and help accelerate success with both guidance and necessary pushes for change.

Digitalisation accelerates procurement transformation There’s no doubt that today’s CPOs

recognise a technology-enabled business process is a must. Global operations, highly fragmented supply chains, and increasingly complex regulations can quickly turn the procurement process into chaos in the absence of rigorously defined business processes supported and enforced with technology.

Technologies available today accelerate procurement’s own mandate to move beyond a singular focus on cost-cutting. With the right solutions, CPOs can collaborate with internal and external stakeholders and create sustained value through stable supplier relationships, reduced risk and greater efficiency. In the context of global technology trends, there is a unique opportunity for fast movers to turn the lower hanging fruits of procurement digitalisation into clear time-to-market advantages and positively contribute to the company’s differentiation. This transformation to strategic procurement starts with leveraging existing full-suite solutions and collaborating with partners across the entire value chain.

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5 roadblocks to omni-channel order fulfilment (and how to overcome them)

Omni-channel order fulfilment offers retailers a number of benefits but does not come without challenges; Subramanyam Venkataraman and Sulabh Jain at Wipro outline how a harmonious arrangement can be achieve Written by: Subramanyam Venkataraman and Sulabh Jain, Wipro Edited by: Nye Longman

TOP 5

r

o ed

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Technology and innovation continue to drive significant changes in how commerce is conducted.

As consumers use almost every available buying channel, companies need to be omnipresent.

The shift in how consumers are purchasing goods today is driving a shift in how modern day retailers and manufacturers are fulfilling the demand.

To deal with this, many organisations are integrating the online medium with their brick and mortar stores to improve the delivery of goods to consumers, no matter which channel they use.

For example, some companies are using stores as distribution nodes, processing and dispatching local orders from local stores.

Others are using their stores as ‘pick-up points’, while some are even using train subways as virtual grocery stores allowing consumers to purchase goods via QR (Quick Response) codes on digital displays.

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OMNI-CHANNEL ORDER FULFILMENT

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The challenge of globalisation

For companies operating globally the difficulty of omni-channel order fulfilment becomes even more complex. At the front end, they need to decide whether or not to have the same brand representation and offerings for all countries and regions they operate in. They then have to handle the conundrum of country-specific content on digital channels with respect to language, pricing, taxes, product imagery and so on.

In order to remedy this challenge companies need to ‘think global, act local’. With a deep

understanding of local customs and preferences companies are able to fulfil the local expectations as well as innovate at a global level. For example, in the UK this is the option to ‘click and collect’; in India pay-upon-delivery is a preferred option; and Australians tend to have a penchant for purpose-built parcel lockers.

Additionally, a reusable digital content management service, that manages the creation, measures the success, monitors and feeds successful content to the right regions and channels at the right time enables economies of scale, savings in content creation and a consistent consumer brand experience.

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Keeping up with technological change

There are a lot of new technologies on the market with regards to order fulfilment but a lot of companies are still in the ‘test and learn’ phase, betting on new technologies and architectures so they can be first out the door, even without fully understanding their own and their customers’ requirements.

To avoid pitfalls, a good starting point is a thorough assessment of 26 May 2016

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both the process and technology landscape, analysing end-to-end fulfilment capabilities and the underlying systems that support them. By doing this companies are able to understand if they have the needed physical, functional, integration and interfacing capabilities to handle channel, partner and consumer service level segmentation at the SKU (stock keeping unit) level and other related omnichannel fulfilment requirements.

By doing this, companies can then align with advanced control systems and technologies.

OMNI-CHANNEL ORDER FULFILMENT

The order management challenge

Imposing omni-channel orders on top of single channel order management systems and maintaining seamless fulfilment is another significant challenge. On the demand side, omni-channel orders are less predictable and require consolidated order views across all channels and brands. Add to the other factors like channel, brand priorities, segmentation, order split, and backorder policies and you

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end up with a complex order management environment.

To handle this kind of complexity retailers should opt for an integrated order management system for end-to-end order capture to settle-in the revenue cycle, avoid short-sighted innovations and inadequate single channel-focused process improvements. Also, they should formulate rigorous controls governing order allocation, reservation policies, real-time product availability and order processing visibility to ensure a streamlined and efficient order management system.

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Distribution and warehousing challenges

For an omni-channel order fulfilment, there are various challenges related to distribution and warehousing, such as knowing the exact location of inventory – be it in a warehouse, retail store or in transit. Other factors to consider include the selection of the most efficient transportation and shipping methods, best packaging as well as ease of return.

To handle this, retailers need to define their fulfilment policies and priorities and ensure there is 28 May 2016

full visibility of orders and stock across multiple warehouse sites.

Solutions like automated product allocation, reservation and dynamic ship point allocations can also be leveraged to streamline and reduce distribution times.

Additionally, how to handle value added services, special packaging and guidance for overall cost vs. service trade-off situations are some of the considerations for common understanding and execution across different functions of the company. These are typically best driven through an integrated order management system.

OMNI-CHANNEL ORDER FULFILMENT

Store-based distribution challenges

Using stores for quick delivery, or in many cases, as a feeder for supplying other stores or smaller stores to enable cost effective last mile delivery can be a significant challenge. It requires seamless execution across order management, execution systems and more importantly full and preferably dynamic stock visibility across DC-store networks.

To manage this effectively retailers should consider a third party logistics provider to drive efficient store-based distribution. Many of these providers are typically smallmid size regional players and have a good understanding of local distribution dynamics, however nation-wide options are also a good solution. Other considerations include developing a flexible store-level staff/resource planning system to support shipments in a timely manner and deliver a consistent consumer experience.

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Realising

the value of procurement Written by Nye Longman Produced by Richard Durrant

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G4S

Following the introduction of its Group Procurement Team in 2014, G4S has been able to make savings and drive efficiencies across its operations

W

hen he joined the company in 2014, Group Procurement Director Shaun Carroll faced a seemingly insurmountable challenge: nothing less than developing a group-wide transformation of the company’s procurement operations. Over the past two years, Carroll has brought about a sea-change in the ways that the business handles its procurement at all levels, which includes the adoption of new processes and technologies, as well as a plan to ensure that, in future, G4S has procurement at the centre of its thinking.

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Operations G4S is well-known for its role as one of the world’s leading integrated security companies. Specialising in providing a range of security products, solutions, and services to a variety of sectors, the company operates in 100 countries and employs over 610,000 people.

The procurement arm of G4S fulfils two key functions within the business, which involves operational support, alongside more strategic responsibilities. Operational support is delivered by working closely with a range of different departments which include warehousing,

EUROPE

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logistics and supply management, as well as supplier expediting. The company also aims to improve its commercial arrangements with its third-party suppliers; it combines strategic sourcing and procurement in order to achieve this.

“We also look at risk management and supplier relationship management. All of the areas around supplier collaboration and innovation, as well as ethically engaging our suppliers. Bearing in mind, from a procurement perspective, we’re like a start-up company here in procurement at G4S – it’s just a very, very big start-up,” adds Carroll.

Alongside its range of specialist outsourced services, G4S provides cash management and security solutions,

as well as services for both the care and justice sectors. Furthermore, the company also deploys the latest technological solutions across its security systems.

Supply chain management Carroll gives an insight into the size and complexity of the company’s supporting supply chain, saying: “We’ve got about a £1.6 billion spend. There are 65,000 suppliers in our supply chain and of that 65,000, the top 250 make up 50 percent of our supply spend. So we have a very long tail of small spend suppliers and that’s necessary because of the type of our business and how spread out we are. The top four percent of suppliers cover 80 percent of our spend.”

Annual revenue

£6.98 billion

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G4S

Having several high-spend suppliers places G4S in a position to form close working relationships – an advantage that has delivered real-world benefits to the business, in this case working with Telefonica (TEF) UK. Carroll explains: “One of our early successful category programs has been on Telco provision which was first implemented by the Global Category leader in the UK, we open market tested the relationship with Telefonica for the first time in over five years. This process came at a particularly hectic time in the relationship as various new agreements were being implemented across a number of regions forging whole new relationships. The UK process was complex and entailed consolidating several smaller relationships and also reviewing the current supply from Telefonica.

“Through clear commercial

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discussions and value engineering the specification with highly competent internal stakeholders, the Procurement team delivered considerable savings on the UK spend in Telco, improved the resilience and facilitated our move to a cloud based infrastructure.

The model for the process has now been rolled out in North America, Europe, Africa and LATAM with Asia following this year.

Telefonica has secured several of the contracts around the world.”

Operating across so many countries is complex and challenging, which is why the Procurement team is going to invest a substantial amount of time and effort rolling out a new Enterprise Resource Planning (ERP) system.

Not only will this enable the G4S to simplify a great number of individual systems but will bring about a ripple-effect of benefits.

Deliver an enhanced customer experience We can support your business to simplify its IT infrastructure and achieve its strategic objectives on its digital transformation journey. More than 8 million businesses across 170 countries trust us to keep their business ahead of the curve. www.business-solutions.telefonica.com

G 4GS4 S

“We’ve got about a £1. spend. There are 65,00 in our supply chain and 65,000, the top 250 ma percent of our supply s

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Carroll explains: “There are several improvement projects that come out of implementing a single ERP process. We won’t need to engage a third party for our spend visibility programme which we do at the moment.

To be able to do that without an ERP, I - Shaun Carroll put in place a spend visibility programme with Spend360 where we went round and gathered the AP data from around 60 finance systems to pull in the data to know what we spend and who we spend it with.

“This was essential to prioritising the workload very early on and our partner Spend360 greatly helped with this programme. So the ERP will give us as close to single element of data truth as we can.”

“Procurement is not just about the price of goods and services delivered – it is also about the total cost of ownership. We have introduced several policies around the business to help us control demand. These cover property, travel, professional services and temporary labour – we are working with several global partners to help deliver the demand management programme, an important one being IQ Navigator who is helping us manage our temporary labour requirements and processes.”

.6 billion 00 suppliers d of that ake up 50 spend”

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G4S

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The value of procurement Carroll explains that the G4S working culture – especially where its procurement operations are concerned – was one of collaboration and mutual respect.

It is little wonder, then, that the company has worked hard to ensure that this effective way of working is disseminated as far as possible in the form of its Supplier Code of Conduct.

Carroll says: “Our basic focus is keeping as much of the world as secure and as safe as possible and that brings us into conflict with some pretty difficult individuals.

Therefore, our supplier base also gets pulled into those issues. It’s important that we get the message out that respect for the

people that we’re dealing with when they’re in our custody or in our care.

Making sure that we do everything with integrity in terms of handling customers’ money, looking after our customers’ premises, transporting our customers’ goods around the world is extremely important to us.”

In order to ensure that these values are ingrained into the procurement ethos – and that operations in this regard are continuously improving – Carroll focused on three core initiatives during his initial months with the company. These consisted of rolling out procurement excellence, implementing a global category focus, led by worldleading industry experts, and by appointing regional procurement leaders.

Number of employees

610,000

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G4S

Shaun Carroll Group Procurement Director Shaun Carroll is Group Procurement Director (CPO) for G4S the global Outsourcing and Security Company, responsible for the company’s global supply chain; he is based in London, United Kingdom.

Carroll was appointed to the post in May 2014 and tasked with transforming and leading a department that had functioned primarily as a support to local operations in the 100 plus countries G4S operates. Since starting, the team has changed significantly and has been recognised as adding value internally and externally. He is also responsible for Group Property where he has implemented a successful property consolidation program releasing cash and improving costs.

Prior to this appointment Carroll held several roles in Johnson Controls Real Estate and FM business – Global Workplace Solutions primarily delivering

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global Supply Chain Solutions to external customers and fulfilling complex contractual obligations using suppliers to deliver value.

Prior to JCI Carroll held a variety of positions in construction, water and consultancy organisations focusing on the EPC (engineer, procure, construct) lifecycle of projects.

During his 30 years in industry Carroll has developed a pragmatic enthusiasm for transformation and change that builds on his engineering roots and cost leadership in supply chain management.

Carroll holds a Bachelor of Engineering Degree in Civil Engineering from Portsmouth, a Masters in Business Administration from London City University, he is a Chartered Engineer and Fellow of the Chartered institute of Purchasing and Supply. He also a non-executive director of English shoemaker RE Tricker Ltd.

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Carroll explains: “I implemented a small, two person central procurement excellence team. I recruited them from the external marketplace and the value delivered by these roles is to have a consistent backbone of policies and processes around the world.

They all have the same look and feel but there are variations depending on the operating environment in different regions.

“Initially, my view was to have true category management led by global experts rolled out into each of the regions to leverage our spend in some key global categories. I recruited a mix of people into five global category roles and they covered our big spend areas.

“We changed our direction in response to the fact that our business struggles to globally consolidate around a single supplier

in any category due to the amount of change that that would need, and there are few suppliers that have our geographical spread.

“Where we have managed to consolidate on a single supplier is in our global fuel category, where we have partnered with Shell in all of the regions in which they operate. We took more of a supplierled reengagement/negotiations/ competition programme based around groups of categories.”

“The Regional Procurement teams have developed their integration with local businesses to the point where they are helping business development and sales teams to win new business. Not only are they working on new bids but they are also working with the sales teams to help them understand what procurement folks in their customers want and how those procurement teams think.”

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G4S

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People at the centre of the transformation When appointing the G4S procurement leaders, Carroll looked at industries that have a recognised reputation for excellence in procurement: “The security services industry is generally not recognised as a forerunner in procurement thought leadership – but manufacturing is, airlines are, and some of the more technologyfocused telco organisations are.

“I looked at the business challenges that we have and I looked at the type of industry that has resolved that issue and recruited from that area. Putting good people at the centre of the strategy is vital as they are essential for success.”

Coming from the Post Office in early 2015, Robert Copeland was appointed UK Procurement Director.

His skills are based in manufacturing but his operational experience is in this service-led industry which has a similar geographical footprint and service lines as the UK Procurement business. One of Copeland’s first priorities was to build confidence in the new procurement team to allow the market testing of key contracts.

Two of Copeland’s key projects have been the re-procurement of UK fleet where Hitachi Capital were the successful supplier, making a multi-million pound saving over the four year contract.

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Early on in his tenure, he renegotiated the BT Fleet contract for the company’s cash in transit fleet maintenance, delivering further multimillion pound savings.

Another example of diverse leadership is James Ratcliff, who was appointed from Kimberly Clark.

Ratcliff has held several global and pan-regional procurement leadership roles and brought thought leadership in the process and systems area.

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Carroll adds: “He was instrumental in developing the policies that the company has rolled out globally and has now taken on additional responsibility in managing the Europe region. “This demands a clear focus and direction from a procurement perspective because it is highly federated and geographically dispersed. This region has a great deal of opportunity for G4S in terms of

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“Changing focus or adding a new layer of complexity to a business’ operations can be extremely difficult to implement. Given the scale, scope and size of G4S – not to mention the critical security role it plays on a daily basis – this achievement is particularly noteworthy” supplier consolidation and savings.

“The global team in G4S procurement has come together really well from its beginnings in late 2014 to now, we have a team with diverse, extensive and valuable experience delivering real value locally.”

Seven key principles Carroll and his team are in the second year of their mid-term plan: “We have seven key principles that we’re working on in our three to five year plan. The first one is around leadership and organisation and

interaction with business leadership.

We’ve got our procurement and sourcing strategies where we are developing and executing consistent policies and strategies at a global, local and regional level.

“We have our people strategy which is around attracting, developing and retaining the right talent base.

We have got our savings and consolidation process, delivering traceable savings to the P&L. Last year we delivered multi-million-pound savings that were signed off and audited by internal audit.

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G4S G4S

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“The next principle is around process and systems which is why we’re rolling out the ERP; another two concern vendor management which is all about the SRM and corporate social responsibility programme. The final principle is based around performance measurement and management; making sure that we measure what we do and report it and that we have a clear set of KPIs to report on.”

Changing focus or adding a new

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layer of complexity to a business’ operations can be extremely difficult to implement.

Given the scale, scope and size of G4S – not to mention the critical security role it plays on a daily basis – this achievement is particularly noteworthy.

While security companies are generally not recognised for their procurement achievements, G4S is certainly one to watch.

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“The UK and Group team have been recognised internally with an award for improved productivity for placing procurement at the heart of the business�

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Co m pany log o g oe s he re

Seeds of change Written by Nell Walker Produced by Richard Durrant

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S Y N G E N TA

Syngenta’s Marion Matthewman and Alexandre Leopoldes tell us how a world-leading agrochemical company developed an innovative logistics operating model with highly valued partners

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eadquartered in Basel, successful in achieving sustained Switzerland, Syngenta is a growth since its creation in 2000, leading agriculture company supported by our supply strategy helping to improve global food which focusses on innovation, security by enabling millions of leverage, agility and customer farmers to make better use of experience. Logistics is critical to available resources. Through world the effective delivery of agility and class science and innovative crop customer experience; it became solutions, its 28,000 staff in over 90 clear that our current logistics countries are working operating model would not be fit to transform how for purpose to drive value and crops are grown. operational resilience.

Head of Global “One of the critical Operations, Mark questions was whether Peacock explains: we could or should “Syngenta invest in building Mark Peacock Head of Global Operations has been very internal capability

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and technology to achieve and sustain the performance that we target, or whether professional logistics providers could do this more effectively. The answer was clear – specialised logistics providers were better equipped to assure service and leverage, and technology was available to enable a seamless integration with our ERP systems and we could establish the governance required for a beneficial partnership and the achievement of our targets. And so, our logistics journey started.”

Head of Global Supply, Mike Hollands, adds: “We have a history of contracting with many third party logistics providers across the globe, and felt that consolidation would allow us to further professionalise and automate our logistics function. Of course logistics can have a real impact on our customer experience and is highly integrated with our planning and commercial teams, so we needed to manage this risk and find partners that understood what we were trying to achieve. I am very proud of our logistics team and their ability to balance delivery agility and cost savings in our very seasonal business.”

Mike Hollands Head of Global Supply

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CY S S ON Y VN G EG E ST N ER N TA O TA

Marion Matthewman Head of Global Logistics

Marion has been with Syngenta and legacy companies since 1991. With a degree in Business & Finance, Marion’s career started as the Quality & Compliance Manager for UK Manufacturing Sites (then AstraZeneca), relocating to Basel as Head of Risk Management, following a short spell as the Global Head of Trade Affairs. Marion has been the Global Head of Logistics for Syngenta for three years.

Leading a strong logistics, intercompany order management, and duties community for Syngenta, Marion is responsible for developing and implementing the Logistics Strategy, with focus on driving value, simplification and standardisation, and creating a professional environment for the community to reach its potential.

Head of Logistics Marion Matthewman and Global Logistics Capacity Alexandre Leopoldes explain the story of how Syngenta implemented this change, the launch of the Global Logistics Optimisation (GLO) program, how it started, what the challenges were, and what solutions they chose to apply.

“Once we had made the decision to leverage specialised logistics

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providers,” Matthewman explains, “we elected to focus on creating an operating model fit for our business, understand what kind of information and transparency we wanted to manage, and what kind of technology we needed. We created a compelling story that proved to the business the benefits and future value creation as a result of implementing this change.”

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Syngenta Logistics Operating Model

The Integrator

Alexandre joined Syngenta in early 2012 as EAME Logistics and Order management Head and now serves as Global Logistics Capacity Manager. In his role, Alexandre owns the strategic end-to-end logistics process elements and drives standardisation within the Logistics Function in building partnerships with Logistics Service Providers. Alexandre now drives Syngenta’s Logistics Operations transformation Program named the 4PL Target Operating Model.

Alexandre has over 15 years’ experience in managerial and leading roles, working in the Operations and Supply Chain arena of Multinational Corporations active in the development, manufacturing and distribution of specialty chemicals, agro-chemicals & seeds, as well as life-science (biotech and generics).

Alexandre Leopoldes Global Logistics Capacity Manager

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A new model

Matthewman explains: “With support from Accenture, Syngenta developed a logistics strategy which will be enabled through a new operating model. The model is structured around the use of an externalised central operating desk, facilitated by fourth party logistics providers (4PL) that specialise in logistics execution. This is along with a decision to invest in a cloudbased supply chain collaboration platform provider, to enable a digital logistics solution that would deliver the desired transparency.”

Matthewman continues: “Logistics strategic direction, budget visibility and key performance tracking is directed by myself as the Global Head of Logistics. The logistics team is responsible for the deployment of the strategy in the relevant regions, territories and

countries. I have global visibility of the cost of logistics for Syngenta, which is an important enabler to support the implementation of our logistics strategy.”

This transformation is managed under the banner of the Global Logistics Optimisation Program (GLO). “The program’s intention is not only designed to manage Syngenta’s growing supply chain demands and complexities, but aims to leverage innovative thinking in logistics through working closely with our partners, so that we can bring agility, scale and simplification,” says Matthewman.

Leopoldes adds: “Syngenta has elected to go for an operating model that is structured around Partnership, Lead Logistics and Continuous improvement. Our 4PL model, as we call it, concentrates on governance logistics rather than managing the transactional side.

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“ Global Logistics Optimisation is not only designed to manage Syngenta’s growing supply chain demands and complexities, our aim is to leverage innovative thinking in logistics through working closely with our partners, so that we can bring agility, scale and simplification ” The 4PL actually embraces four key processes on behalf of Syngenta: sourcing the 3PL, executing the operations, monitoring the proper execution of logistics operations, and eventually delivering continuous improvement and productivity gain.”

Syngenta has elected to manage its operations using a cloud-based solution in order to connect systems, ERP’s, and other elements of the 4PL strategy to ensure ownership of data, “which is the backbone and intelligent side of the operation,” Leopoldes says. “It offers a single point of truth on a global scale looking after various metrics that

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are embedded into GT Nexus.”

Any large logistical operation requires a great deal of IT infrastructure planning, and a company with a true global footprint like Syngenta requires high levels of technical organisation more than most.

“We started having more and more discussions around IT integration as GLO developed.

We have a multi-dimensional culture because we span regions.

In areas where many companies are struggling with data and systems, Syngenta found a way to basically harvest all data which is logistics-relevant in a single cloud.

From there you can drive the next logistics structure forward.”

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„Landscape with 4 PL & GT Nexus“

Syngenta OM / CS

gSAP

nSAP

ERP

lSAP*

FOU

Connectivity & Visibility Web Platform

4PL

Supplier

Toller

4PL

WH(s)

Carriers

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Working in partnership

While developing the 4PL model, Syngenta enlisted the expertise of Accenture to help develop and support the project delivery; Michael Dittrich, Strategy Supply Chain Manager at Accenture, describes the relationship: “Accenture has supported Syngenta on its journey towards a digitally-enabled logistics operating model by providing end-to-end consulting services,” Dittrich says, “starting with strategic conceptual design and finishing with implementation of the cloudbased multi-4PL solution. We’ve achieved excellent work with Syngenta. The project team has been able to deliver the leading edge solution in a very efficient and effective manner. We’ve built a longlasting relationship with Syngenta and would be happy to support them with other digitallydriven supply chain opportunities in the future.”

GT Nexus has also been a key player in Syngenta’s technological advancements, as its Executive Vice President Global Sales Mac McGary explains: “We connect Syngenta to their global partners enabling them to collect, centralize, and analyse all information around shipments, inventory, and trading partners.

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“We collect data and turn it into actionable intelligence and at the same time automate process. Syngenta will use business rules to accelerate decisions. Visibility improves both the accuracy and velocity of decisions as well as it improves the collaboration between partners.”

“GT Nexus is committed to the Life Science and Chemical verticals; Syngenta is a prestigious brand to join our network. Our partnership with Syngenta is about transparency – between each other and how the platform will provide transparency to their network. It’s mutually beneficial and we challenge each other. It is long term and strategic. We align on an ambitious vision to achieve inside three years, but we are determined to solve real and immediate challenges – to provide measureable results within a year.”

Once Syngenta’s logistics vision was formalised in September 2014, the

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Syngenta is headquartered in Basel, Switzerland

CS OY VN EG ST ER NO TA

2000 The year Syngenta was founded

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executive board of the company gave its approval to move into the model in early 2015.

Leopoldes says: “The design and delivery of the first deployments were conducted over the course of 2015 in record time covering both Europe and Northern America.

“In October of that year, Syngenta went live with two 4PL’s – one in north America (XPO Logistics) and one in EAME (DHL LLP) for the seeds business. Since then we’re operationally live in those regions and we have approval for the next waves

involving various dimensions over 2016. Our NA and EAME-nominated 4PLs are preparing to orchestrate across the other core business unit of Syngenta – crop protection – and on the other hand, we are accelerating our global deployment with the launch of a third 4PL partnership (Damco) for the inter-regional air and sea operations.”

Three of Syngenta’s Lead Logistics partners – Damco, XPO, and DHL – comment on the importance of their relationships with Syngenta: “We’ve been working with Syngenta

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since 2010 on a number of supply chain areas in Asia and Europe, which has progressively grown to recently agreeing with the company to be part of its global 4PL pool,” says Anthony Elwine, Global Head of Chemical Vertical at Damco. “It’s a journey of innovation to optimise the supply chain. Syngenta is a great company to work with; it’s very openminded, and they, like us, aspire to achieve win-win results. They’re very engaged in terms of what is best practice, how they can adopt best practice, and what other practices could be applicable to their business.

There’s a spirit of understanding between us. We’re working on this journey together, and how to make sure we deliver on it.”

These sentiments are shared

by XPO’s SVP of Business

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Development, Marty Smith: “The biggest advantage for both companies is partnering together to be able to centralise the day-to-day decision making for transportation planning,” he says. “We have a holistic view of the Syngenta network; you can see where trucks are unloading, where the same carrier can be used again and how we can optimise the networks.

Syngenta will look to us as being almost their own in-house transportation providers. Our people are essentially Syngenta employees.

We do their carrier bids, we’re looking at new capacity to bring into the network, and we’ll always look for ways to lower costs so that our partners can benefit from the savings. This is something we – with Syngenta – drive together as a team.”

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Thomas Weins, Head of LLP and MD Agheera GmbH at DHL DE, adds: “We want a relationship with the customer which is strategic and not just a standard service. Our logistical operations are much more than just A to B. Our relationship with Syngenta goes beyond a business relationship; it’s a true partnership and I see and feel from both sides that people are aware it’s not a normal connection; it’s more about working together, not as a customer and a service provider.

We have only just begun with Syngenta. None of our 4PL customers have short-term relationships with us, and I see a long future with Syngenta.

Strategically, we’re a good fit.”

DHL’s implementation reaped benefits early on, say Syngenta’s Julie Tempesta, EAME Logistics

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Manager, and Paul Lidbetter, Head EAME Logistics: “DHL has worked with Syngenta Seeds to clarify and improve our logistics processes.

We are working together to identify KPI’s and further supply chain improvement opportunities. DHL is very focused on delivering a solution that is fully aligned to the customer needs.”

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Scott Kincaid, Syngenta’s 4PL Implementation Manager within the North American Logistics Team comments on the advantage of having so many logistics partners: “The goal of this project has been to leverage the tools and resources of our 4PL to reduce empty miles and other waste, while maintaining or improving the delivery experience for our customers. Historically our

shipping sites have worked hard to maximise truckloads and avoid empty backhauls, but visibility to those opportunities was limited. This year we have been excited to see routes which connect multiple shipping locations on the same equipment with less empty miles. Such network connectivity has not been possible before and the outsourcing to our 4PL has been a great success.”

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Green thinking

As an agriculture-based company, sustainability is important to Syngenta.

The Good Growth Plan initiative, launched in 2013, aims to improve fertility and biodiversity of land. This means keeping a closer eye on the carbon footprint produced through logistics operations, Leopoldes explains: “What we did was fairly simple, but we wanted to be able to measure the carbon footprint directly at the source of our operational setup and execution. With GT Nexus, we have developed a way to measure the footprint by considering what we move from a volume standpoint, what we move by distance from A to B, and how we move it – whatever transport we use, we have a matrix. GT Nexus technology means we can create an automatic calculation of our carbon footprint taking those transactional elements into consideration.”

This system is not wildly different to that of other systems on the market, but it allows Syngenta to calculate its environmental impact on an individual level.

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CONTACT US

Syngenta Crop Protection AG Schwarzwaldallee 215 P O Box CH-4002 Basel, Switzerland www.syngenta.com

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Now that Syngenta has started operating in the 4PL environment, it is ready to take the next step in improving its operations: “The way we have conceptualised our model is that the 4PL partners are compensated on an incentive based element, if and when they deliver continuous improvement and productivity, they get a share of the value created,” Leopoldes says.

“We use GT Nexus to reflect on our various logistics execution elements such as from a load factor and financial standpoint, and together with our 4PL we look into areas of opportunity to improve. If we are able to optimise

load factors, to maximise load-bytransport distance coverage, and to drive price reductions, we have leverage to motivate continuous improvement.”

Matthewman concludes: “By leveraging and working with strategic partners in this way, we can reduce logistics costs for Syngenta, gain full transparency of logistics operations around the world, and help us to understand and manage our impact on the environment.

Finally, as Syngenta continues to grow in the future, I can be assured that the logistics operations with our chosen partners will be ready to respond as needed”.

“My thanks to the exemplary efforts and commitment given by the logistics community both Syngenta and our partners in delivering an exciting and innovative solution” – Marion Matthewman

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Custo the fu

Written by Nell Walker Pro

omising uture

oduced by James Pepper

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Zinnovate’s CEO Håkan Nilsson describes how a tiny IT services company has become so enormously successful and well-trusted in its industry

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ince 2013, Zinnovate has provided management, consultancy and IT services with a particular focus on the global transport and logistics industry, allowing businesses to fulfil the potential of their IT portfolios. The company’s Founder, Owner and CEO Håkan Nilsson has utilised his 23 years of experience as a CIO in the global forwarding industry to become a trusted strategic advisor to a number of other companies in the business.

“Particularly I’m involved when companies are going through some sort of change,” Nilsson explains. “Or rather when the

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change is of such a magnitude that it’s not simply called change – it’s called transformation, and it cuts across systems, processes and organisations. Many global transport and logistics companies go through changes that weren’t intended to be transformations, but it turns out to be the vehicle for changing their systems and processes for the better.”

Zinnovate has the competence to support such large transformations in a technology-focussed way, it is able to deal with infrastructure and systems applications, software elements, core structures, and more. It also concentrates intensely

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on integration and business intelligence, believing that even if companies are buying the best standard package available, they require a level of customisation in these two areas especially.

“Whatever the system, it’s not an island – it needs to interact with other systems either in the company’s internal landscape or externally with customers, vendors, carriers, and legal authorities. That’s where

we can help with building those interfaces in the area,” Nilsson says.

Zinnovate prides itself on its level of customisation and, as Nilsson explains, it is a vastly important fraction of the bigger picture: “Customisation is such a small part of the total application.

It might amount to five percent on top of a standard system, but the value of that five percent has the potential to be quite dramatic.

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Z I N N O VAT E

WE DELIVER There are many challenges in IT. We promise no miracle cure, but we do believe in the power of hard work. Our philosophy is simple: the more responsibility we take, the greater our ability to deliver. In projects, development, operation, and training.

cag se

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It needs to be structured in that business intelligence layer.” accordance with the needs Zinnovate knows that customers of the customer. have their own preferences and “Our customers are so important should have perfect visibility to us. If you are a logistics provider of their processes. Whether and you have a system in place, producing status event messages, that system is there to freight documents, deliver value to your orders, or invoices, customers. Sizeable customisation is customers will important. Nilsson have some says that the pretty strong small but valuable customisation degree of system requirements. customisation Annual So even if you Zinnovate provides revenue have a system that raises customer is producing a lot of appreciation by 100 reports, for instance, if percent, and has led the you don’t customise that report, company to achieve some very the customer will be unhappy. forward-thinking customers: That’s one thing we do, meaning “We start by giving advice,” we can help the logistics provider he says. “We conduct customer give a much better information meetings, they pick my brain, service to its customer by creating and it’s a fantastic opportunity

4 Million euros

€

€€

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Z IZ NINNONVAT N O VAT E E

Hükan Nilsson - CEO Nilsson’s unique IT expertise stems from more than three decades of IT focus with senior management roles in three different industries: Manufacturing, Finance and for the last 26 years, Transport & Logistics.

He is devoted to building and delivering Customer Value and Shareholder Value through Innovation and Optimization of processes and system solutions.

Nilsson is instrumental in creating a world-leading global operator in the freight forwarding industry through mergers and acquisitions, and by delivering cutting edge IT solutions and processes.

He introduced and led the global deployment of an industry-changing global freight forwarding system based on single-file concept and end-to-end network process.

This has resulted in impressive productivity improvements whilst replacing a myriad of legacy systems.

Nilsson is a renowned and sought-after speaker at international conferences on the subjects of IT, Processes, Change and Logistics.

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Julia Dunder - PA to CEO and Sales Manager Dunder is results-orientated with a can-do attitude.

She is service-minded with a willingness to go the extra mile when supporting customers.

for me to do the same to them.

“Recently I was in Amsterdam where 45 of the top IT managers from all over the world were gathered, and I was the only external guy there as a speaker.

I was there to share my views on the future and for them to ask me questions, but of course I learned a lot from them too. Things like this are our biggest force for ensuring we stay ahead.

“We look at the opportunities technology provides, but if you

don’t have a solid understanding of the underlying business, you’ll waste your time on technologies that are great, but not specific for your company or industry.

That’s an area on which we pride ourselves. We have very good technical people who have a solid background in the transport and logistics industry, and that combination is important.”

Nilsson says that the entire reason the company began was due to his annoyance regarding the IT services available at the time.

He decided that being irritated was not productive, and chose to

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do something about the situation.

“If you believe you can do better, do it yourself,” he says. “Many other companies aren’t so flexible or customer-centric, but we’re able to be flexible thanks in part to our small team. We only have four members of staff and some very closelyconnected subcontractors and partners. A big factor in this is building layers of partnerships in a win-win way.

“I’ve developed a lot of contacts in 23 years, and I approached the ones I thought to be the best, which are now my partners in Zinnovate.

WiseTech Global in Australia is a successful provider of software, and partnering with it allows me to tap into a big global customer base.

They have an extreme focus on product development, but how could customers make use of it? That’s where we can come in and close that gap with a level of customisation and support that actually makes best use

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Raffael Dessi - System development consultant Dessi is a highly resourceful, innovative and competent senior consultant with over a decade’s experience from the IT field in a number of different roles spanning from programmer, system architect, technical project leader, team leader and BI developer. He possesses excellent technical skills in .NET, database technology, business intelligence and system integration, coupled with in-depth global forwarding know-how.

of the system from WiseTech Global.”

All of Zinnovate’s growth is thanks to its reputation. The company only accepts projects where it believes it can make an impressive difference for customers, and where it will have a successful outcome. It makes choices strategically, and expects customers to do the same.

Zinnovate’s highly personalised brand of conducting business has allowed it to develop at an astonishing rate for its size, and Nilsson insists

that his company does not simply offer IT and business transformations for the sake of throwing out an old system: “It is usually a major change from local optimisation to global optimisation,” he concludes. “We’re selling an end-to-end service so we need to address all elements of a system process, people, and organisation. The industry is slowly changing, but people are still not looking holistically at transformations.

That’s where we can help.”

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Cementi

ing the supply chain Written by: Nell Walker

Produced by: Heykel Ouni 85

A L S A F WA C E M E N T C O M PA N Y ( A S C C )

Riad Bestani, Supply Chain Director of Alsafwa Cement, describes the positive effect his procurement overhaul has had on the prestigious company

A

2008

The year that ASCC was founded

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lsafwa is a joint venture between four partners, with half of them private and half public, the former being two industrial partners – LafargeHolcim, the world leader in the building materials industry, and El Khayyat, a red brick manufacturer. Based in Saudi Arabia, this cluster of companies has led to Alsafwa becoming a trusted and respected company across the GCC, to the point that it plans to double capacity by 2017.

Riad Bestani, the CPO of Alsafwa’s cement arm, joined the company in 2013 after many years of procurement experience. This familiarity with the industry means that he is well aware of the safety issues of providing cement in a region like Saudi Arabia, even outside the company’s property.

“Road safety is a real challenge in this part of the world,” he says, “and Alsafwa people need to drive back and forth more than 300km per day. One of the things we’ve done to ensure the best health and safety conditions for our staff is reducing the travelling hazards for them by

MIDDLE EAST

providing buses, in addition to adequate accommodation onsite for the majority of plant staff.

Our plant is far from town, so the least we can do is reduce risks by making sure our employees get back home safe and sound. ” The processes involved in creating cement – grinding stone, burning it (up to 1400 degrees Celsius) until it’s liquefied, and grinding again into a powder – involves behaviors and practices that can be dangerous if they are not properly anticipated and secured.

The company ensures strict control of every situation to guarantee safety procedures are followed.

“The quarry area we have onsite has a very tough mountain topography, and working on it is very complex,” Bestani explains.

“We need to drill, to blast materials, vehicles need to go up and down, and we need excavators to ensure full control over falling rocks.

Geomining experts that have visited our quarry warned us on the high numbers of hazards that have to be monitored and anticipated. We have

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As a leader in fabrication, maintenance and erection service of heavy industrial plants, INTERMAINT has the human , technical resources , the depth of know-how and experience to help clients achieve success domestically and overseas.

Address: P.O.Box 325591 Riyadh 11371 | Tel: +966 11 47 622 30 | Fax: + 966 11 29 16 798. | Email: hesham@intermaint.net | Website: www.intermaint.net

WORN THE REST, NOW USE THE BEST Aceros y Suministros, founded in 1951, is a company specialized in manufacturing and supplying steel wear parts for the cement &mining industries. Offering impact, abrasion, corrosion and high temperature resistant steels, to suit different working conditions and processes such as crushing, grinding, pyroprocessing and material handling. Our products are of the highest quality and meet the most demanding technical requirements.

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strict safety exigencies towards our suppliers working on-site, and our employees make sure health and safety requirements are being fulfilled.

“We have to be very careful, so we assess suppliers to ensure they understand our safety procedures. We train them, and we refresh that training regularly. We make checks and audits across every level, and really these are basic requirements. Lives are at stake. When a safety problem appears, everyone is empowered to stop it and report it for deep analysis of its root causes. We have company-wide reviews with health and safety committees which makes sure we’re implementing the action plans.”

When Bestani joined the company, one of his main missions was to create a proper process for procurement activity and build a structured procurement organisation. Due to a growing market and a high number of job opportunities, one challenge in Saudi Arabia – and across the GCC – is employees’ tendency to quickly move on, especially the younger generation, making it challenging to acquire and retain the right staff. Bestani immediately brought on board new people for his team composed of trusted connections he had made during his career, and he ensured the existing team was properly positioned for tasks they fitted into.

“It’s about networking, putting together the right organisation, delegating to people in

“We are one of the very few, if not the only company to be using alternative fuel in the cement industry” – Riad Bestani, Supply Chain Director of Alsafwa Cement

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The number of ASCC employees

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key areas, and building trust with people you believe can bring you the performance. The procurement team was split into three groups – industrial sourcing, general services sourcing, and performance activities, which give you the performance and evaluation of the way you’re managing your supply chain. We track a number of KPIs among the suppliers, assessing their performance, cost reduction for main strategic suppliers, and lead time between requests and orders as well as spend coverage.”

Bestani spent two years implementing a task force composed of people from main interacting departments of the company – plant, finance, and IT – making sure they worked intelligently and understood what their individual responsibilities were. It has meant enormous progress in terms of procurement, but it is a continuous task to keep people trained and engaged in their job role.

Bestani explains: “I had to drive far-reaching changes. It’s not easy to accept that there are hurdles to overcome and a lot of convincing that

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needed to happen, but in the end it was worth the effort, and it’s been quite positive with results translating to some big savings.

Saudi having such a high employee turnover is challenging, so you have to stick with your managers to understand how to overcome the situation and to retain the talent.”

Saudisation is being heavily promoted in the country, and involves retaining as much

business as possible in the Kingdom itself. The rule in Saudi is that if a foreign company wants to invest, it has to be making a partnership with a local company.

It is also required that investors procure obligations depending on the sector – for cement, there has to be a minimum level of Saudisation.

“HR, for example, needs to be Saudi national,” Bestani says. “The minimum general Saudisation in our sector needs to be 12 percent, and we have 49 percent

Efficient Operation Through Quality Lubrication

C OM N ISDTDRLUEC ET A IO SN T

as of today. It gives us all kinds of advantages; there’s a sort of mileage card and the more Saudi nationals you have on board, the more you can get loans and subsidies from banks and the government. It’s a great incentive.”

The company also tries hard to increase female employees number into work, since national law allows it only in specific areas. Alsafwa hired its first female employee in 2010, and Bestani is pleased to have contributed in his department last year with the first female in procurement: “I’m proud of being able to do that, because it’s challenging, since women have a long way to go to gain access to the job market. We hire most of them into entry positions and train them up for better opportunities later on.”

The cement business in Saudi Arabia is enormous; the nation produces 50-60 million tons a year, compared with the US which creates 75 million tons with ten times the population. Most of the companies that produce it are 20-30 years old, and the way Alsafwa’s cement business differentiates itself is through innovation and sustainability.

“We focus a lot on innovative solutions. Oil is becoming a scarcer commodity, so we’re looking at alternative fuels, and we’re working with municipalities and utilities companies who are eager to develop more environmentally-friendly use of energy through waste management

“Saudi having such a high employee turnover is challenging, so you have to stick with your managers to understand how to overcome the situation” – Riad Bestani, Supply Chain Director of Alsafwa Cement

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and recycling initiatives. This is one of the great advantages the LafargeHolcim group has in terms of developing solutions.

“Its highly state-of-the-art research center in Lyon, France, allows different business units of the group around the world to benefit from its knowledge and experts in key practices.

However, the move is very slow here, and it takes a while to get approvals. It requires a lot of involvement, patience, and commitment to achieve what we want to. We are one of the very few, if not the only company to be using alternative fuel in the cement industry.”

The company’s motto is ‘think global, act local’, and Bestani is keen to stand out from other Saudi businesses with Alsafwa’s unique approach: “The support we get from the group in terms of worldwide supplier panel and Best Cost Countries solutions – a platform based in China helping to source alternatively to European brands – is definitely giving us a step ahead compared to competition, and we always need to keep that advantage.

“In two years’ time, we are not going to be doing procurement the same way. Procurement evolves with the needs, and sustainability will change with it. This procurement department wasn’t always making use of all these advantages, and I’ve had to adapt it to bring it up-to-date. Business isn’t static; we’ll be improving all the time.”

500

The amount of revenue produced by

ASCC

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THE RIGHT TRACK Written by: Nell Walker Produced by: Dennis Morales

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M A S A R R A I LWAY M A N A G E M E N T & S E R V I C E S C O

Masar Railway Management & Services Co.’s Rohan Roy discusses the company’s incredible work in advancing Saudi Arabia’s railway system to a world-class standard

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asar was created when one of its shareholders became part of a highspeed rail project, after which an entity was established to work specifically within the railway sector; thus, Masar’s mission began. The initial idea was to slowly bring international technology companies into Saudi Arabia and the railway sector, localising content, services, and products. Rohan Roy is the Head of Business Development at Masar, and as the first person to be employed after the CEO himself, maintains a deep insight into the company’s history and workings.

“We work with several international technology companies, from consultancy in

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the railway sector all the way to rolling stock and even operation and maintenance,” says Roy. “What we typically do is identify the company that has the expertise overseas, and then form a partnership – the structure of the partnership is different in each case. For some, it’s just a projectrelated partnership; for others, it’s an integrated joint venture, and in some cases we actually create a local company itself. So depending on the nature of the business, we take the necessary steps to make the most of the opportunity.”

Masar’s growth As part of the business development, responsibilities begin with identifying

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these opportunities for long-distance growth in Saudi Arabia: “At Masar we look for potential projects in the region, and then for partners with whom we can team up, because the railway sector is very new here. It’s only been active for about eight years.

There has been a railway line for the last seven decades, but it’s only one line and nothing much happened after

that. In 2008, however, mineral freight lines were constructed, and a highspeed project was awarded in 2012.

There’s now a metro in the capital city of Riyadh, and several more coming up in Makkah and Jeddah.

“We have to decide whether to create a consortium out of a beta project, or a joint venture so we as a company can support international

“We work with several international technology companies, from consultancy in the railway sector all the way to rolling stock and even operation and maintenance” – Rohan Roy, Director - Business Development

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partners in terms of local and technical resources, whether it’s the know-how in terms of the local market, logistics, legal, and even financial support when required. We provide the necessary platform for international companies to be present in the countries. That’s part of my responsibility.”

New directions Although the railway sector in Saudi Arabia is new, Masar is doing its part to bring it up to date with the rest of the world in an extraordinarily short amount of time: “There’s not much technological advancement you can make in terms of operations in this industry, but what we can do is replicate the models being used in Europe and the US,” Roy explains.

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Award winning innovation using cutting edge polymer technology.

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CDM-QTrack® has been selected for its capability to meet the challenging design requirements whilst allowing quick and safe installation in Saudi harsh weather conditions.

This prestigious reference confirms the development of Pandrol CDM Track in the Gulf region after other significant successes in UAE and Qatar.

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“We’re just repeating what has been done elsewhere in the world, but it’s 2016 technology. The metro in Riyadh – the first in the country – is already driverless. It’s the best the world is using right now; we’ve started from the very top of the technology pyramid, and as the sector grows, this will reflect in the environment here.”

“We don’t see ourselves getting involved on a day-to-day basis with the supply chain for another three or four years; by that time we’ll be better equipped to handle it. As of now, we integrate ourselves with the existing supply chain of our partner companies, because they have an established structure. It’s a set system.”

Supply chain Masar’s supply chain is made up of 15-20 product companies supplying its operational vendors directly, “So we don’t really have a project team or people on the ground,” explains Roy. “We have manufacturers who produce the products and supply them to the government. There are quite a lot of these tenders, since the existing railway line is up and running 2,500 kilometres of railway line, meaning that there are a lot of ongoing products and services that the authorities require on a weekly or monthly basis.

Future projects While projects for Masar have been slowed by reductions in oil prices, and the government has taken more time to review projects, the company still boasts plenty of future plans: “The metro lines in Makkah and in Jeddah are both very critical projects to the government, and we’re supporting companies that are bidding. We are not an official bidder as Masar because the tender requires companies with a great deal of specialisations over a long time to formally bid.

“We’ve got a couple of affiliated

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“From just being a support company to developing resources locally and going forward, we’ve got all kinds of plans for localisation” – Rohan Roy

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The total number of staff employed

by MASAR

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companies that do services specifically in the rail sector, and two companies that deal with track construction and signalling and telecommunication construction. Through these companies, we usually support the consortiums that are bidding for the projects. Once the formed consortium puts in its tendered document, we wait for the government to make the next announcement and take the deal forward. The metro deals have been pending for a few months, and in the second quarter the government will review priorities and expense, and decide from there which projects to go ahead with.”

What sets Masar apart is its dedication to the rail industry: “We were the first company that was set up specifically for that reason,” Roy explains. “There have been plenty of companies

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before and since us working in this sector, but they have all focussed on other themes like oil and gas or construction, and rail just happens to have been an extra project for them. We deal with one sector alone, and our CEO used to be the representative of Saudi Arabia on the GCC Railway Committee, which is something we think keeps us different.

“We’re moving from being a more commercial and management-

Abdulrahim Al Qurashi, Director - Projects

Ali Al Karni, CEO

oriented rail company to a technical one; the government wants local companies to develop more technical know-how.

Understanding the reality of this is the backbone of our strategy, which means we’ve already started the process of establishing local manufacturing facilities. From just being a support company to developing resources locally and going forward, we’ve got all kinds of plans for localisation.”

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Reaching new heights Written by: Nell Walker Produced by: Dennis Morales

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NAS GROUP

NAS COO Gerold Tumulka details the Kuwaitbased company’s enormous contribution to aviation and swift rise to distinction

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ational Aviation Services – known as NAS – is a fully private company with no governmental input, and as such, is not bound to any specific airline. Established in 2003, NAS is 95 percent owned by the Agility Group – a world-spanning Logistics Group – and five percent owned by Bahrain Airport Services. It started in Kuwait with just one customer – KLM – and one flight per day; today, it serves 36 airlines with eight million passengers and around 55,000 flights per year.

Gerold Tumulka, Chief Operating Officer of NAS, primarily heads up the Kuwait station, which is around 50 percent of its worldwide presence: “I’m basically in the role of Managing Director here,” he says. “We currently serve 15 airports; the 16th will join us later this year with a total of about 4,500 staff, out of which 2,000 are here with us in Kuwait.”

Tumulka joined the company a year ago when the management team was restructured: “The top level management team decided to separate the

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roles of operations and commercial.

My predecessor has taken over on the commercial side, when previously he had covered both, but with the sheer size the company has achieved, it was no longer feasible for one person to control both.”

The expanding NAS team now includes over 40 nationalities:

“That is quite a mix and we have a lot of staff that remain with us for 10 years or longer,” Tumulka says.

“Since the company’s inception it has been developing positively, which encourages employees to stay. Some staff go home after a couple of years, or go looking for other opportunities in the region, but

“We currently serve 15 airports; the 16th will join us later this year with a total of about 4,500 staff, out of which 2,000 are here with us in Kuwait”

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many of them stay for a long time.”

It’s no wonder that Tumulka’s team chooses NAS as an employer, given its enormous growth in such a short time. It serves airports in the Middle East, Asia, and Africa, and is always looking to expand its portfolio: “Our mid-term target is to serve 20 airports. We look for a certain duration of licensing in any given business opportunity, and long-term projects because they are more worthwhile. In Kuwait itself we have achieved a market share of around 70 percent of the total market.”

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NAS acquires overseas business through both government tenders and acquiring suitable candidates itself: “We can approach governments or airport authorities from our own side, and suggest certain business propositions to them, under which we join forces or we take over certain parts.

Sometimes we even take over management of the whole facility; for example, in Abu Dhabi we manage an entire VIP terminal.”

NAS recently achieved ISAGO certification for the fifth time. The

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“We can approach governments or airport authorities from our own side, and suggest certain business propositions to them, under which we join forces or we take over certain parts. Sometimes we even take over management of the whole facility; for example, in Abu Dhabi we manage an entire VIP terminal” – Gerold Tumulka, Chief Operating Officer of NAS

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company was one of the first three businesses to be certified, and inhouse it has developed its own set of standards: “We have our own training centre and academy, and have an exchange between the stations to make sure our design standards are met and carried out.”

“We have a dedicated unit which manages our supply chain and maintains relationships across the board, and we’re planning more

integration to ensure a network supply chain that services NAS in all our locations. It means a certain level of commonality between vehicle fleets and products, and then we give multi-station agreements for our customer airlines at the same level. We can then use that same multi-station methodology with our suppliers.”

The management dashboard created by NAS can monitor all of

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NAS’s stations in real-time: “We are now working towards stage two, which will include much more detail and can be monitored from the top management downwards. We are also developing an Operations Control Suite, which will enable the local stations to better monitor and manage traffic, and obviously that’s linked to the management dashboards that are centralised.

All of this software is tailored to our requirements. We didn’t buy – we went the other way and developed

this ourselves. NAS has created a dedicated IT Division for this purpose – NAS Airport Technologies – which also develops tailormade solutions for customers.”

To aid with the sustainability of its operations, NAS has also implemented unique ways to reduce fuel and waste: “We have a 250-strong motorised vehicle fleet in Kuwait,” Tumulka explains, “and we do our own set of modifications because looking at our geographical environment and particularly climatic

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“Emerging markets always have a risk factor attached, but we’re not shy to go into them” – Gerold Tumulka, Chief Operating Officer of NAS

conditions, we have found that we have gained certain expertise in regard to handling those conditions. We have certain ways of maintaining the vehicle fleets so that we can get 15 rather than 10 years of lifetime out of the special equipment.

“We’re testing now on the cargo side and have implemented a battery driver forklift system. That was quite easy. Kuwait Airport is looking for a new terminal product and sustainability initiatives play a big role in that. We’re looking into charging stations for all electronic vehicles across the airfield.”

NAS continues to grow, planning to expand its workforce by 50 percent over the next twoto-three years: “That creates opportunities for our own staff to grow, and for our organizational structure to grow with it. We are not bogged down by public service structures, meaning we can act and react quickly. We have a lean management team, making internal communication and coordination better, and we concentrate on markets that are not to everyone’s tastes.

Emerging markets always have a risk factor attached, but we’re not shy to go into them as long as they are reasonable and can be managed.”

FACT BOX 4,500 staff, 2,000 of which are in Kuwait The team includes over 40 nationalities NAS serves 36 airlines with eight million passengers and around 55,000 flights per year The fastest growing aviation services provider in emerging markets, National Aviation NAS recently achieved ISAGO certification for the fifth time

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Pride of Qatar Written by: Nye Longman Produced by: Dennis Morales

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Tasked with developing and running a new ‘mega port’ at Hamad, Qatar Ports Management is set to play a major role in the economic diversification of the Emirates

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ay-to-day, Qatar Ports Management is responsible for managing the nation’s seaports and shipping terminals, but the integrated port and logistics services provider is also playing a more pivotal role. By substantially developing its port at Hamad, the authority is not only strongly positioned to develop a regional shipping hub in the GCC, but also to play a major role in diversifying the Qatari economy ready for a post-hydrocarbon future.

Business Review Middle East explores how the framework for this was developed and how, under the watch of CEO Captain Abdulla Al-Khanji, this vision for the future is being achieved.

Hamad Port and beyond Alongside its oversight of the country’s quays, dry ports, and container terminals, Qatar Ports Management Company also provides navigation

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$7.5bn The cost of the New Port Project development

assistance and pilotage, towage, and Aids to Navigation (AtoNs) as well as loading, unloading, cargo handling, and storage.

Furthermore, the company is also involved in developing seaports and related services in line with international standards.

Through its dual emphasis on continuous improvement across its shipping lines and by enhancing

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its focus on better meeting the needs of its customers, the provider is hoping to make Qatar’s the first port of call for companies operating in the region and beyond.

The business is responsible for two main commercial ports in Qatar, as well as the development of the Hamad New Port. The port acts a long-term, physical manifestation of the

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Qatar National Vision 2030 – a project focusing on the social, economic, environmental and human development of the nation.

The $7.5 billion development does not merely offer expanded capacity in the form of three container terminals, but also brings a host of new, sector-specific capabilities. Alongside general cargo traffic, the port will be able to handle a variety of specialist imports including livestock, automobiles, and bulk grain. Alongside this offering, the port will also host a base for offshore and marine support vessels.

“The authority is not only strongly positioned to develop a regional shipping hub in the GCC, but also to play a major role in diversifying the Qatari economy ready for a posthydrocarbon future”

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Links Shipping Company W.L.L. P.O. BOX: 5763 Najma Street, Al Hilaal West Doha, State of Qatar Tel: +974 44550322, Fax: +974 44569798 Email: info@linksshipping.com Web: www.linksshipping.com

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With its growth LS diversified its services and obtained required licenses to be a shipping agent and custom clearance agent in State of Qatar. Presently we are providing logistics services for On-shore and Off-shore Oil and Gas projects, handling All types of vessels and represent feeder carriers and NVOCC operators in the state of Qatar.

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Hamad Port covers 26 square kilometres and will have the yearly capacity for 1.7 million tonnes of general freight and 1 million tonnes of grain, with a specialist terminal supporting the entry of around 500,000 vehicles per year.

Capt. Al-Khanji adds: “Hamad Port is so far the largest port project in the Middle East. It will open endless opportunities for domestic and

foreign investment, especially in Um Al-Houl economic zone. Both the port and economic zone will form an industrial and logistics hub which will provide competitive advantages to industries and businesses through the provision of highly efficient and cost effective logistics services.� “Hamad Port is a crucial milestone in the transport strategy of the Ministry of Transport and

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26

The number of square kilometres that the New Port Project covers

Communications (MOTC) since it is the premier commercial maritime gateway of Qatar to the world.

Hamad Port dovetails perfectly into the Qatar National Vision 2030. So too, developing the country into an import hub for the region will

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make Qatar more resilient against changes in the global economic environment.� “Hamad Port will provide increased throughput with a capacity for 2 million containers per year, eventually increasing to over 6 million. This will then be

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supported by transhipment links by rail, sea and road to the region.�

The business is also working to encourage tourists to visit the country, and has partnered with the Qatar Tourism Authority in order to promote and facilitate cruise visits to Qatar. There are also plans for Doha Port to be

redeveloped into a cruise and leisure yacht terminal facility, with its commercial operations moving to the new Hamad development.

Capt. Al-Khanji explains: “As part of the infrastructure preparations for the 2022 FIFA world cup, Mwani Qatar along with the Ministry of Transport &

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‘The port at Hamad will also be supported by an integrated logistics park that will connect the Qatar and GCC rail network, which will link incoming sea freight with the rest of the country and beyond’

Communications is working with stakeholders to increase tourism through international cruise liners visits to Doha. The projection of a 15.9 percent increase in tourism revenue would eventually witness 3.7 million tourist arrivals by 2022.”

The port at Hamad will also be supported by an integrated logistics park that will connect the Qatar and GCC rail network, which will link incoming sea freight with the rest of the country and beyond. The port is also situated adjacent to Qatar’s Hamad International Airport, as well as civilian rail links; together these contribute to the

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port’s future as an international hub.

Pride of Qatar Hamad Port will be situated next to the Um Al-Houl economic zone which is equipped with the latest infrastructure and is served by a dedicated industrial canal, which adds a further logistical dimension to its operations. Backed up by road, rail, a canal and a nearby

airport, the port at Hamad is wellfurnished for any cargo coming into or leaving the country.

“A good business environment, strong international framework and its ever-growing portfolio of customers and partners around the world are some key factors that contributed to the success of the nation,” says Capt. Al-Khanji.

“This unprecedented growth also

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creates opportunities for the development of commercial and business prospects.

“Qatar has diversified its investment portfolio as the economy of the State has driven by the liquefied natural gas exports; Qatar has invested along the LNG value chain from upstream gas production, throughout the transportation system and ports, till distribution to the corresponding grid.

“The GCC region is growing at fast pace and so is infrastructure, including ports. Studies show that the sea trade of GCC Countries with the rest of the world will grow rapidly during the next decade following the GDP growth in the region. At the same time, the port infrastructure suffers from lack of appropriate water depth to accommodate large vessels.”

There are but few ports in both the Middle East and GCC region that are equipped with adequate facilities to cope with large ships; in fact, the only hub-sized port in the region is approaching its maximum capacity. Not only does this evidence the fact that trade in the GCC region is booming, but also that the region is overdue a world-class shipping and logistics hub.

As the global oil price invariably fluctuates, the importance of economic diversification is becoming more pressing by the day.

Home to the third largest oil and gas reserves in the world, Qatar faces a number of tough decisions ahead. Leveraging its strategic geographic position and economic clout, the Gulf State is increasingly prepared for an economic future not subject to the oil market.

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Delivering For Africa

Written by Nye Longman Produced by Charlotte Clarke

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H

aving successfully operated in the continent for nearly 50 years, DHL Supply Chain Africa is now well positioned to further develop its presence. While adopting a range of technological innovations, the logistics company is engaged in a regionally-focused growth strategy that will see its award-winning services and solutions rolled out across even more businesses.

Operating in Africa is challenging for any business, but DHL’s success is so intimately tied to that of its customers and partners that an entirely new level of performance is demanded on a daily basis. Backing

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up its operational and regional growth, the company has also made a concerted effort to develop its talent base, while maintaining its exemplary CSR initiatives.

Operations DHL Supply Chain Africa also offers a broad spectrum of supply chain services which cover everything from sourcing, storage, supply chain analytics and lead logistics provider (LLP) services. Leveraging its extensive cross-sector experience, the company is also able to provide warehousing services for everything from raw materials to finished goods.

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OUTSOURCING

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DHL Supply Chain Africa’s CEO embedded in the DHL Supply Chain Paul Stone emphasises that on top team culture.” of delivering a diverse and often challenging remit, the company is Supply chain management also able to maintain an ethos of Stone explains that, while the continuous improvement: company’s SCM strategy “We have a team that is consistent across all drives continuous countries, it remains improvement in flexible, depending the business on the situation: “We and a culture have approximately of striving to be 700 of our own better year-onvehicles on the road Number of Employees year. on any given day at DHL Africa “This is striven for, and also partner with a budgeted for and driven number of subcontractors from the top, and we have a across Africa to different group of people who are managing degrees. to drive that through a number of “We manage this on a different initiatives and processes. straightforward SLA basis currently Those might be new systems, with the aim of forging long enhancements to existing systems term partnerships. Most of the or process reviews. So continuous subcontractors have worked with us improvement is pretty much for 5 years or more and during this

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AFRICA

time they have come to understand our business and our customer’s needs.”

Due to the unpredictability of local markets, supplier investments are, by necessity, made over a shorter time period, as Stone explains. He says: “Our business is cyclical. A contract will typically run between three to five years so we always have that ongoing real time view rather than a 10 or 15 year view because that would be impossible for me to predict.”

In order for DHL Supply Chain Africa’s remit to be executed seamlessly, the company has spent a great deal of resources on ensuring that its staff are qualified

and motivated to achieve worldclass results. Stone explains: “We have dedicated training programmes at all levels. We also have development programmes where we identify

Paul Stone CEO Africa and Managing Director South Africa

talent and nurture that talent to get to the next level. We have a clear plan which includes, amongst others, mentorship programs, planned events and personal development plans.”

Technology While Stone compares South Africa’s infrastructure favourably to more advanced European

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AFRICA

Africa’s remit to be ssly, the company eal of resources on aff are qualified and e world-class results’

Will we be the cheapest in town? No, but we will deliver a superior service that allows the customer to enhance their own offer.” economies, he and his teams are He adds that the business intimately aware of the challenges only uses the best-in-breed IT that lie outside of the continent’s Solutions, particularly across second largest economy. He is finance, warehouse and transport also keen to leverage technology management: “For example we have to make the best of a sometimes Mix Telematics in our IT landscape unfavourable situation: “Every which provides some of the visibility customer needs to have information that we’re talking about and then for in real-time. I don’t see any warehouse management we deploy customer who doesn’t want to the market leading Manhattan’s have a real-time dashboard on their WMS. smartphone so they can understand “I can also put another view on top what is happening. that we call Connected View, which “So we offer a consistent solution is a DHL system that takes visibility that gives that visibility across to another level. Depending on the the continent. We’ve invested in customer, they can have visibility technology and visibility tools right from when their order is picked and this is to be enabled for our through to delivery and individual customers as well. This is a key case level if they wish to do so.” differentiator in the market for us.

DHL Supply Chain Africa is

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backing up this technological offering with a number of physical assets which include fleet replacement which takes into account a number of new key customers moving forward.

company also uses its strong internal governance measures to improve standards and drive out corruption.

“We are already paperless in our warehouses and within the office environment we have a number of different initiatives to drive paper out Social responsibility of our business. I can’t say we are a “We want to grow in a way that completely paperless society but we is culturally balanced; I don’t just are moving to that culturally.” want a business that wins from Having been a logistics leader a monetary side. It’s got to be a in Africa for so long has not given business that has got the right DHL Supply Chain Africa cause to culture, the right ethos, and the right be complacent. The company has work ethic to go forward. That’s invested in both its technological important to me and important for assets and its workforce to ensure our group,” Stone explains. that the business is robust enough DHL Supply Chain Africa has a to weather the often unpredictable dedicated CSR team that operates nature of the developing continent. on both local and regional levels, Ensuring that its operations are which works to achieve both having a positive impact on both environmental and social goals. communities and the environment Alongside funding and volunteering has cemented its reputation as a for a range of initiatives to this end, the business that cares deeply about the future of Africa.

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A safer world for

FOOD PROCESSIN

QA Consultant Silas Boyt discusses the evolution of food safe and sustainability in the food processing industry Written by: Sasha Orman Produced by: Jason Wright

NG

ety

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Food processing sanitation experts- Meat and Poultry

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ow safe is your food? That all depends on the meticulous care of the food processors working to manufacture and package the products that wind up on your plate every day. Amerisan USA is a company dedicated to helping the food processing industry—from Fortune 500 giants to medium-sized and small processors—reach its potential in safety and compliance with federal and international standards.

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“What people are looking for is a resource to provide meticulous and excellent customer service,” says Silas Boyt, Quality Assurance Consultant for Amerisan USA. “We achieve this by leveraging our focus on providing clients with what they need: leading edge food safety solutions, innovative industry trends, best practices, which all result in compliance for the customer—which is key—and great value.”

USA

From color coded buckets and dustpans to x-ray and metal detectable brushes and cable ties, Amerisan offers businesses the tools they need to make life easier for their employees and safer for the consumers they serve.

PURSUING FOOD SAFET Y Between easily accessible social media and continuous news cycles, food safety issues are at the

“ WHAT PEOPLE ARE LOOKING FOR IS A RESOURCE TO PROVIDE METICULOUS AND EXCELLENT CUSTOMER SERVICE” – Silas Boyt, Quality Assurance Consultant for Amerisan USA

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Increased efficiency with 5S Shadow Boards

forefront of public concern more than ever before. Food processors must be vigilant in protecting themselves against pathogens and other contaminants—a problem that reaches consumers and triggers a recall can be incredibly costly in more ways than one.

“Recall is the biggest dread of any processor,” says Boyt. “The average cost of a recall to a food company 146

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is about $10 million US dollars in direct costs, and then you have the additional damage to the brand and to loss in sales which is significantly higher. With such high risks, it’s imperative that operational mistakes are reduced to a minimum or eliminated through implementation of HACCP programs and GMP programs. Even 5S can play a great part in increasing food safety.”

USA

Resin-set brushware ensures filament retention

While these programs are a processor’s most important line of defense, Amerisan is able to help enhance the safety routines of its clients with products and solutions designed to cut down on contamination.

“Using metal detectable items is one way to greatly reduce the risk of foreign particle contamination,” says Boyt. “It also validates to the consumer that the processor is taking into account due diligence in protecting the product and their brand for the consumer.”

Products like resin-set brooms and cleaning brushes are another line of defense against contamination. “We acquired one client that found some brush bristles in their products—they threw away eight tons of product, which is huge, and luckily they found it before it went out into market. Since then, they have only used our Resin Set Brushes,” Boyt recounts. “There are many steps that processors can take to protect themselves, and that’s where we are able to help them, bringing these new innovative w w w. a m e r i s a n u s a . c o m

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products to market.”

D I F F E R E N T W AY S O F GOING GREEN When the goal is to kill as many pathogens and bacteria as possible, the priority for food processors is not whether a cleaning product is environmentally friendly—the priority is simply whether or not it’s the most powerful and effective cleaning product for the job. But a business like Amerisan does not have to give up on sustainability

altogether.

“It is tough to make this industry go green, but we encourage it,” says Boyt, explaining that there are other ways to help their clients embrace more sustainable practices.

“With the technology and innovation we have today, we can help them reduce waste and reduce consumption,” Boyt continues.

“We helped one client reduce consumption by 50 percent which made a substantial difference on its carbon footprint and its bottom line.

Custom Shadow Boards accommodate facility needs

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USA

Metal Detectors pick up foreign particle contamination, increasing consumer safety

So it’s not necessarily going green by having green products, but by actually tackling it in a different way and approaching it from outside the box to reduce waste—as opposed to just providing greener waste.”

THE FUTURE OF THE INDUSTRY AND AMERISAN Food safety best practices and regulations continue to evolve at different rates around the world, w w w. a m e r i s a n u s a . c o m

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FBK has been developing and manufacturing brushes since 1887, gaining experience that spans 3 centuries!

The products perform where uncompromising cleanliness is the overarching requirement.

Typical market include: food and beverage processing, food handlers, service sector, pharmaceutical and medical manufactures, contract cleaners etc.

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and so are the wants and needs of processors working to meet more rigorous demands.

“People aren’t necessarily looking for the lowest item cost nowadays— they’re looking for the lowest cost of ownership, which takes everything into account from quality of the product through to its longevity,” says Boyt. “We’ve seen a shift in focus by the industry to see the real value of what they’re getting.

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FDA Compliant materials ensure sa

customer service-led, in order to meet the deadlines and demands of the industry operates. The team is very dedicated, enthusiastic, and empowered to take care of our clients’ needs, providing great feats of exceptional customer experiences on a daily basis.”

Amerisan is there to help the industry comply with auditing bodies from the FDA to the SQF & BRC (British Retail Consortium) through a range of solutions. As

USA

Company Information NAME

Amerisan USA INDUSTRY

Food processing sanitation HEADQUARTERS

Folcroft, Pennsylvania FOUNDED

2002

afety and compliance on the production line

demand grows, Amerisan has continued to grow between 20 and 50 percent year over year, expanding its national supply chain network to 14 strategic warehouse locations and its global reach through strategic partnerships in order to better serve as a trusted partner to the modern food processing industry. “The world is becoming constantly smaller, with communications and travel improving,� says Boyt. As these changes continue, Amerisan is continuing its mission of making sure that world is a safer one as well. w w w. a m e r i s a n u s a . c o m

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MAKING FOR ITS CU

The city’s provider of me Sydney Trains makes c

Written by: Eric Harding P

G MOVES USTOMERS

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ydney Trains provides train services throughout the Sydney CBD and metropolitan area, transporting about a million customers each weekday and over 300 million people annually.

As a result, Sydney Trains has altered its philosophy to making the customer the top priority.

C U S T O M E R S AT THE CENTRE Sydney Trains make the customer the centre of everything it does, by delivering the best possible service to the people.

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“In the past, our procurement revolved around stakeholders.

Now, we’re moving to a much more customer-centric model,” said Sydney Trains chief procurement officer Mike Blanchard.

“Delivery is based around a customer charter. We’re saying - this is our promise to you as an internal service provider, and this is what we need from you to help us do our job in the best possible way, and therefore give you the outcomes that you want.”

Sydney Trains has been an excellent example of procurement delivery through best in class

Strategic Procurement CUSTOMER CHARTER OUR PROMISE TO YOU Safety first

1

We will never compromise on safety - it is our number one priority

Your team

2

We will work in partnership with you to make decisions and make sure that our priorities, expectations and goals align with yours

Make your day

3

We will smile, be friendly and listen to your needs as we are passionate about delivering your procurement outcomes

Open and upfront

4

We will deliver a personalised service, while always acting with integrity and being open, honest, courteous

Make it easy

5

We will share our knowledge and be accountable for the provision of compliant procurement services of the highest quality

(to do the right thing)

JB000162.0216

HELP US TO HELP YOU Engage early

1

Give us as much information about your enquiry as soon as you can

Participate in the spirit of cooperation

2

Work closely with us, collaborate and respond to our requests in a timely, efficient manner

Be open and upfront

3

Give us feedback about our service and delivery, while being courteous and respectful

Stay informed

4

Keep up-to-date with procurement policies and advise us regularly if there are any changes to your requirements

SYDNEY TRAINS

policy and governance processes.

In fact, the company has NSW Government’s highest accreditation for procurement, and was the first organisation in Australasia to get corporate certification from the Chartered Institute of Procurement and Supply (CIPS), a United Kingdom-based organisation that deals with training and accreditation.

A current initiative, Project LEAP,

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is all about moving from being one of the top organisations in procurement policy practice to moving toward leveraging early engagement for accelerated outcomes through the delivery of procurement best practice.

This project moves to a more customer-centric model, and fits with Sydney Trains’ overall endcustomer model to deliver the best customer service.

FINALIZED A CONTRACT, APPROVED AN INVOICE, ASKED MY SUPPLIER HOW HE ENJOYED HIS HOLIDAY.

IT’S SIMPLE. IT’S DONE. IT’S SAP ARIBA. SAP Ariba makes even the most intricate businessto-business transactions simple. So you can get everything you need for work from the companies you want to work with.

For more, go to ariba.com

SUPPLIER PROFILE

THE DIGITAL SUPPLY CHAIN The world today is a different place.

There are officially more mobile devices than people. And with increasing frequency, we use these devices to manage our lives. To shop.

To pay for things. To find restaurants and hail cabs. To network with our friends and family. Many of these same technologies have made their way into the enterprise. And they are transforming the way we work.

Business networks, for instance, are changing the way we discover, connect and collaborate with our trading partners. They are giving us access to insights and intelligence that allow us to make better, more informed decisions. They are, in essence, transforming procurement as we know it.

Digitizing the Supply Chain Technology has driven a new wave of productivity by digitizing key financial and business processes and enabling collaboration across the organization.

Best-in-class organizations are fueling the next wave, leveraging business networks to extend these processes and systems beyond the four walls of the enterprise and create a shared community of partners executing improved, fully automated, and coordinated processes in a more informed way than in the past.

Enabling New Processes Many companies have taken steps to improve the efficiency and

effectiveness of their supply chain operations by automating key processes such as procurement, orders, invoicing and payment. And with good reason. Research shows that companies who have embraced digital strategies are seeing real value, boosting revenue more than nine percent, market valuation more than 12 percent and profitability by over 26 percent.

Led by procurement, many of these companies are taking things to the next level and enabling new processes that drive more collaborative, intelligent and transparent ways of operating.

Processes like dynamic discounting that allow them to secure discounts that can be reinvested in research and development and funding to expand their business. Contingent workforce management through which they can identify and manage highly-specialized resources needed to develop that next-generation product. Or networkbased spot buying through which they can improve the purchasing process for low-value, non-sourced items and eliminate maverick buying.

Running Simpler Personal networks from Facebook to Twitter have made it simple for consumers to shop, share and consume in new and more informed ways. Business networks like SAP Ariba provide an equally easy and scalable way for companies to discover, connect and collaborate with the trading

partners and resources they need to operate in today’s dynamic world.

Leading procurement organizations across both the public and private sectors are tapping into this network to create a simple, consumer-like experience where with just a few clicks, they can shop for goods and services, place and manage orders and pay for them electronically, view and manage spend across all major categories through a single, connected platform.

Getting Smarter Like their social counterparts, business networks house incredible amounts of insights and data. Bestin-class procurement organizations are unleashing the power of this information to optimize their supply chain decisions and accelerate innovation and growth. They are accessing performance ratings on potential trading partners along with recommendations from the community to determine who to do business with or detect risk in the supply chain. Or combining in-the-moment purchasing data with historic trends to predict stock outs before they happen and direct replenishment. Or gaining realtime insights into invoice approval status to more efficiently manage cash.

Collaborating to Win Fueled by digital technologies, procurement is taking the lead in integrating business processes and collaborating across functions in

entirely new ways that drive value.

CPOs, for instance, are engaged in helping to manage the financial supply chain, turning payables into a profit center because they have real-time visibility into whether an invoice is okay to pay and whether it has it been matched against purchase orders and contracts. Or extending days payable outstanding to improve the overall balance sheet while at the same time offering early payment discounts to suppliers because to mitigate both financial and supply risk.

In today’s global and connected economy, digital supply chains are the onramp to innovation and success. To be among the winners, companies need to get on the highway and go fast. And procurement needs to steer them there and do the driving.

Far from simply executing purchases, procurement leaders must reimagine the supply chain. Develop digital strategies that allow them to proactively evolve ahead of the competition.

Employ comprehensive solutions that support the entire source-to-pay process and create value for all parties involved in it. And not only think about the future, but see it and shape it to their advantage. In doing so, they can deliver their organizations to new worlds of excellence.

For more information, please visit ariba.com >>

CUT THROUGH THE RED TAPE, POSTED THE ORDER, CONTINUED THE MOST IMPORTANT MEETING OF THE DAY.

IT’S SIMPLE. IT’S DONE. IT’S SAP ARIBA. SAP Ariba makes even the most intricate business-to-business transactions simple.

So you can get everything you need for work from the companies you want to work with.

For more, go to ariba.com

T R A N S P O R TAT I O N

“In the end, we’re only as good as the service we deliver to our customers,” said Blanchard.

“Project LEAP is centred on getting feedback from customers through workshops and face-to-face interviews and then delivering the improvements to make it easy to do the right thing.”

“Value for money doesn’t necessarily mean the cheapest,

but the best overall value for the outcome required,” he added.

E A R LY B I R D G E T S THE WORM As chief procurement officer, Blanchard is responsible for ensuring all of the spending is done within government guidelines.

This is in addition to meeting a larger ethical demand of social

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stewardship, to ensure the money provided is delivered in the most effective way through third-party contractors.

According to Blanchard, the key to successful procurement is early engagement.

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everything else will potentially cause issues to the engagement with a third-party supplier. If you react and do things on a short-term lifecycle because of the pressure of delivery timelines, then you’re not necessarily going to make the best long-term decisions.”

Although most companies prefer doing work with the government

SECTOR

because of its legislation and policy to make sure it pays on time, there are still obstacles to vendor engagement for Sydney Trains.

A big challenge that many businesses face is the funding cycle for major projects. Sydney Trains gets financial approval at the beginning of each financial year; this can at times put some pressure on

the ability to engage the market. “Under NSW government guidelines, engaging the market without funding is not permitted,� said Blanchard. “To overcome this for frequently used goods and services, we put panels in place, as traditional open market engagement is time consuming and labour intensive. This way, we can react w w w. s y d n e y t r a i n s . i n f o

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much more quickly to the business demands.”

Even so, organising these panels is not always easy to do, Blanchard points out. He doesn’t use the term supplier-relationship management process, which he views as an overused term, but instead supplierdevelopment management (SDM).

“To break down potential barriers, you give the branding of that role a different name,” Blanchard said. “You must look at the overall relationship like it’s an umbrella over all the interactions, and not just the contractual relationship engagements with key suppliers.”

Blanchard said that supplierenabled innovation is something that will increase through the delivery of a successful SDM programme.

BUILDING R E L AT I O N S H I P S Also a successful long-time rugby coach, Blanchard applies many of the same leadership skills to his management philosophies.

Blanchard describes himself as a builder of high-performing teams, something he has done since the age of 24.

He believes building the best company is based upon getting the basics right, such as receiving the highest accreditation, setting a global benchmark, and then building and developing a team based on competency while delivering on performance promises.

“It doesn’t matter which business you’re in,” said Blanchard. “When you talk about people, you talk

“In the past, our procurement revolved around stakeholders. Now, we’re moving that to a much more customer-centric model.”

– Sydney Trains chief procurement officer Mike Blanchard w w w. s y d n e y t r a i n s . i n f o

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“THE OVERALL SYSTEM WE ARE LOOKING AT ADOPTING PROVIDES AN END-TO-END PROCESS THAT WILL ALLOW THE COMPANY TO FOLLOW THROUGH ON BOTH EMPLOYEE, AS WELL AS SUPPLIER INITIATED IDEAS FOR INNOVATION” – Sydney Trains chief procurement officer Mike Blanchard

about teams.”

Blanchard has always had three mottos within a team: Make a lot of decisions, because the more you make, the better you get at making them; always employ people better than you, because it makes your job easier; and finally, don’t let ego get in the way.

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they way you want to be treated yourself, you’ll find that is what authentic leadership is all about,” said Blanchard.

TECHNOLOGICAL A DVA N C E M E NT S Within the supplier development management program, Sydney Trains has an innovation improvement tracker. Blanchard

T R A N S P O R TAT I O N

has been searching for ways to filter, capture and commercialise innovation in a public sector agency, and this tracker is one element of enabling this. “The overall system we are looking at adopting provides an end-to-end process that will allow the company to follow through on both employee, as well as supplier initiated ideas for innovation,� said

Blanchard.

Additionally, Sydney Trains has worked with the customer environment division to create the Click & Collect platform, where users can order groceries online for pick up at their final railway station destination.

Retail giant Woolworths is the partner for the first trial of the program, with plans to convert w w w. s y d n e y t r a i n s . i n f o

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the contract to long-term if all testing goes well. Once the trial is completed and evaluated, Sydney Trains will explore the possibility of rolling out the initiative on a permanent basis.

“They’ve designed lockers that have frozen cabinets and cold drawers so you can literally head home at night and pick your goods up,” said Blanchard. “So that’s quite a big innovation.”

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Blanchard also mentioned future innovation and changes planned for the Sydney Rail Network.

In the future, Sydney Metro will use the first driverless trains in Australia to deliver services. The fleet of trains will be fitted with new technology to provide automated train control and will integrate with the signalling systems, in order to move toward a much safer environment with trains running closely together. Current

T R A N S P O R TAT I O N

Company Information NAME

Sydney Trains INDUSTRY

Transportation HEADQUARTERS

Chippendale, NSW Australia FOUNDED

2013 EMPLOYEES

10,000

signalling systems all operate slightly differently, which puts limitations on how closely trains can run together.

“The system will allow you to move to more frequent, ‘step up and go’ metro type services rather than having to use timetables to know when you can catch your train,” Blanchard said. At the same time, Sydney Trains will be upgrading its network to integrate seamlessly with the new metro operation. It’s all part of Sydney Trains’ plan to serve its customers better.

INCOME

$3,1 BNi

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ALL OF NAFTA TRUCKA operations are spread throughout Mexico, USA and Canada, serving all specialized ground shipping needs

Written by: Mateo Rafael Tablado Produced by: Andrea Duque Interviewee: Lic. José de Jesús Castañeda, CEO for TRUCKA

TRUCKA

C

argo ground transportation is a highly competitive market not just within Mexico, but also in neighboring countries. This particularly applies to exports and imports with the United States and Canada, Mexico’s partners in the North American Free Trade Agreement (NAFTA).

And yet, in less than two decades, TRUCKA has managed to become a major player. They have dominated the competition by offering a full line of essential services depending on the type of load, storage conditions, final destination and size.

TRUCKA’s growth has accelerated quickly.

In just 15 years, the company now boasts a full fleet of more than 500 units. They’ve earned the trust of their customers, some of which include multinational corporations, and have thus established lasting relationships.

In the second half of the 20th century, Sergio Castañeda formed the Transportes Unidos Castañeda de Aguascalientes (Castañeda of Aguascalientes United Transportation) company with just one truck. Business boomed and the small family business quickly became a fullyfledged company, increasing its annual sales from 20 to 610 million pesos in only 10 years.

The company has international ISO: 9001-2008, CTPAT (Society for Foreign Trade Partnership

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L AT I N A M E R I C A

Against Terrorism) and New Scheme of Certified Companies (NEEC) certifications. Excellent fleet preventive maintenance actions and inspection checks as well as thoughtful business strategies have earned TRUCKA the Clean Transportation (SEMARNAT) stamp and have given the company the right to be part of the Mexican pilot group for Smart Way certification.

José de Jesús Castañeda Bañuelos has been leading TRUCKA since 2001. Castañeda graduated from the Autonomous University of Aguascalientes with a degree in Financial Management and earned a degree in Business Management from the Panamerican Institute of Business Administration (IPADE). In 1995, he joined Transportes Unidos Castañeda SAPI de CV (TRUCKA) as Public Relations Manager.

A complete logistics network TRUCKA offers cargo ground transportation in NAFTA territory, covering routes in the U.S. and Canada through strategic partnerships with more than 35 certified carriers who hold similar service certifications. These resources and advantages simplify freight logistics so that TRUCKA clients need only refer to one contact for all information regarding shipments from origin to destination.

This professional care is tailored to the specific needs of each shipment to ensure a prompt and safe delivery, gaining customer confidence and w w w. t r u c k a . c o m . m x

Key People

José de Jesús Castañeda CEO for TRUCKA

Castañeda graduated from the Autonomous University of Aguascalientes with a degree in Financial Management and earned a degree in Business Management from the Panamerican Institute of Business Administration (IPADE). In 1995, he joined Transportes Unidos Castañeda SAPI de CV (TRUCKA), as Public Relations Manager.

In 2001 he became president of the board and CEO for TRUCKA.

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In addition to Mexico, TRUCKA services the United States and Canada

surpassing expectations.

TRUCKA services cover the main Mexican industrial areas, offering a broad range of services, including:

In addition to Nuevo Laredo, TRUCKA will soon operate along other border crossings.

They plan on opening subsidiaries in Lazaro Cardenas (Michoacan) and the port of Veracruz

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• Transportation of dry goods • Refrigerated transportation • Transportation of hazardous materials • Hauling intermodal and sea containers • Transportation of dry fulles • Transportation of full trailers • Tanker trucks • Merchandise Insurance

L AT I N A M E R I C A

Technology and safety at work Thanks to cutting-edge technology allowing information to be displayed in real time, TRUCKA has one of the country’s most modern fleets.

The company uses custom software to control all internal company processes; meanwhile, its interfaces allow customers access to real-time information via EDI, SMS and email.

Client security issues are of particular importance. To provide reliable support in this area, an in-house GPRS tracking system accurately and promptly reveals the exact current position of each unit. In the event that security can be breached, immediate assistance can be made available via a panic button and remote engine stop. This same system provides relevant information on the performance of each unit and also provides data regarding the habits of each vehicle operator in order to determine each unit’s maintenance.

Long-term partnerships that guarantee a range of services and spare parts to ensure continuous operation

Lasting relationships with qualified suppliers To determine which companies will integrate into TRUCKA’s supply chain, the company accepts bids and establishes strict criteria for joint assessment so that strong relationships with each supplier are developed. This process

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TRUCKA

TRUC

offers carg transportat NAFTA te

CKA

L AT I N A M E R I C A

go ground tion to the erritory

TRUCKA

Each unit’s maintenance is properly scheduled

ensures response times in accordance with the sector.

In order to continue providing a prompt and safe service, TRUCKA looks for the best suppliers to meet its most essential service needs, including fuel, tires and parts for each individual vehicle as well as the respective maintenance of each of these.

Growth in size and territory TRUCKA has maintained continuous growth through the diversification of its services, thus seeing client needs as opportunities.

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Full dry and curtainside transport, another reason TRUCKA dominates the industrry

The company has successfully integrated a number of units into its large fleet, with cooling systems and others with specialized equipment for hauling sea containers. Such significant investments guarantee that each shipment travels to its destination under optimal conditions, according to its requirements and special care and conservation needs.

As part of its growth plan, TRUCKA is considering opening subsidiaries in two important Mexican ports, Veracruz and Lazaro Cardenas, to complement its Manzanillo office where it has been operating since 2013.

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TRUCKA’s senior management is constantly working to create new growth strategies

Meanwhile, further company growth is foreseen using strategies such as mergers and acquisitions. TRUCKA wants to expand its portfolio by providing transport services in the Pacific as well as generating alternate border crossings to the U.S. in addition to the Nuevo Laredo crossing, where all ground import and export shipments now cross thanks to their fleet of transfer units.

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Identification and development of a productive force TRUCKA’s staff operates as the backbone of the company. They have therefore developed robust processes to identify, attract and retain the best people within their ranks. Once these employees are considered “truckanianos” —meaning they identify with and adhere to w w w. t r u c k a . c o m . m x

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company policies and values — they are subject to a very clear individual career plan. Employees and their families have access to an array of personal, financial, health and recreation benefits. Employees also have access to a continuous development program through customized training.

These qualities have helped make TRUCKA be considered a “Super Company” by Great Place to Work for the last five years.

Projections By the end of 2016, TRUCKA aims for a sales growth of six percent. To achieve this productivity, the company meets the need of having at least 93 percent of its fleet fully available daily, as well as having among its staff the necessary trained talent.

Company Information NAME

TRUCKA INDUSTRY

Logistics - road transportation HEADQUARTERS

San Francisco de los Romos, Aguascalientes, México FOUNDED

2001 EMPLOYEES

1,000+

TRUCKA’s long-term vision aims to achieve organic growth that attains a fleet of 750 units by 2020. This represents a 50 percent growth in four years, similar to that experienced between 2010 and 2015.

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WEBSITE

www.trucka.com.mx

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