Supply Chain Digital Magazine – August 2019

Creating value and sustainability through technology

AUGUST 20 19

Procurement goes global at Dentsu Aegis Network

www.supplychaindigital.com

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FOREWORD

W

elcome to the August issue of Supply Chain Digital!

On the cover of the August issue of

changing supply chain industry and the online market.

Roy Anderson and Gert Sylvest of

Supply Chain Digital, Prysmian Group’s

Tradeshift explain the company’s

Supply Chain Director and CPO reveal

journey towards digitisation, whilst

the firm’s synergies as a result of its

Berwick Partners’ Richard Guest

merger with General Cable.

reveals how skillset diversification

“While the reorganisation was challenging, it was timely. We’re

can help business.

Robert Boute, Professor of Opera-

merging two cultures into one and it’s

tions and Supply Chain Management

not something you do in 30 days,”

at Vlerick Business School, and

states NA Brian Schulties, CPO of

Joren Gijsbrechts, PhD student at the

Prysmian Group.

Research Centre for Operations

Elsewhere in the issue, we talk to

Management at KU Leuven, offer their

Steward Health Care, Cargo Services

insights into artificial intelligence in

Far East and Armacell to discuss

supply chains.

technology and sustainability.

Finally, Supply Chain Digital looks

Supply Chain Digital also examines

at the top 10 procurement software,

Dole International, Dentsu Aegis Net-

according to FinancesOnline. Seller-

work and Katoen Natie’s operational

Cloud, AvidXchange and Procurify

and procurement transformations.

all feature in the list.

Radisson Hotel Group, Flogas and

Enjoy the issue!

Grupo Bimbo also feature in the issue.

Requis’s CEO, Richard Martin,

Sean Galea-Pace sean.galea-pace@bizclikmedia.com

exclusively elaborates on the everwww.supplychaindigital.com

03

Click the home icon (top right of page) to return to contents page at anytime EDITOR-IN-CHIEF

SEAN GALEA–PACE MANAGING EDITOR

MATT HIGH CREATIVE DIRECTORS

DANIEL CRAWFORD STEVE SHIPLEY

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Steward Health Care

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Cargo Services Far East

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Katoen Natie

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12

PRYSMIAN GROUP GOES GLOBAL WITH ITS LATEST ACQUISITION WRITTEN BY

DAN BRIGHTMORE PRODUCED BY

DENITRA PRICE

AUGUST 2019

13

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PRYSMIAN GROUP

PRYSMIAN GROUP’S SUPPLY CHAIN DIRECTOR, GIANMICHELE ALIVIA, AND CPO, NA BRIAN SCHULTIES, REVEAL HOW ITS MERGER WITH GENERAL CABLE HAS EXPANDED THE COMPANY’S GLOBAL REACH AND OFFERED THE OPPORTUNITY TO MAXIMIZE ITS SYNERGIES

P 14

rysmian Group is now a global force in the energy and telecom cable systems industry. Boasting nearly 140 years’

experience, the company’s wide service offering has driven sales exceeding €11bn via a 29,000-strong workforce operating in over 50 countries across 112 plants worldwide. Since the $3bn acquisition of General Cable in 2018, the group is embracing the complex transformation required to merge company cultures and meet the needs of a global footprint, while managing the synergies between procurement processes, supply chain and operations.

Prysmian’s CPO, NA Brian Schulties worked at General Cable, starting in 2006, so he has a unique perspective on the challenges ahead.

“While the re-organization was challenging, it was timely,” he reveals. “We’re merging two cultures into one and it’s not something you do in 30 days…”

Senior Supply Chain Director Gianmichele Alivia AUGUST 2019

15

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Their high quality, focus on research and innovation, new product development and responsiveness enable Prysmian/ General Cable to be successful in serving the market. We truly appreciate the relationship and push to be stronger together for many years to come.”

Arvind Parsa, Director of Metals

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CLICK TO WATCH : ‘PRYSMIAN GROUP AND GENERAL CABLE JOIN FORCES’ 17

agrees: “Setting up the new organization

less what the legacy Pirelli company

was only a part of the work that had

was doing globally. All of the challenges

to be done. We’re now starting the

are mastered here. Since the acquisition,

discussions about merging the ERP

we’ve been working to bring these two

systems and the tools we need.”

entities together. North America is where

Following its acquisition by Goldman

the bulk of the general cable business

Sachs in 2005, the former Pirelli

was and so this is where the majority

Cables & Systems (where Schulties

of the effort has been placed.” That

also worked prior to General Cable)

effort has included the integration of

was renamed Prysmian. “The company

5,000 staff while managing fixed costs,

has grown tremendously in the past

something that has been key to Prysmi-

year,” explains Alivia. “We generate

an’s success as a lean organization.

approximately $4.1bn in revenue in North America, which was more or

Schulties admits a $3bn acquisition invites a period of instability. w w w.suppl yc ha i ndi gi ta l. com

PRYSMIAN GROUP

18

AUGUST 2019

“Expectations since the merger are high, and we only have two years from start-to-finish to work on the synergies – beyond that it becomes the normal course of business.” He cites the success of the integration of Draka into Prysmian Group in 2011 and notes that CEO Valerio Battista has stated the progress with synergies is ahead of schedule. Alivia adds that the same challenge is being tackled on the supply chain side “The first step was to look at inventory (since the merger inventory locations have dropped from 77 to 70) but now we’re analyzing more complex points including the rationalization of our network where inventory is kept, our flows, product location and distribution. We need to ensure we make the right product in the best facility,” he explains.

Prysmian is engaged in setting new contracts with carriers and working on their implementation with third-party logistics companies essential for managing the network. “It’s not only the logistics network,” adds Alivia.

“We are reviewing every single facility and product to make sure we service the customer from where it makes the most sense; we’re looking at cost of w w w.suppl yc ha i ndi gi ta l. com

19

When atoms come together, forming stronger cable insulations and jackets, we beneďŹ t from the energy that connects us.

Advancing a world of possibilities.

lyondellbasell.com

“ W E ARE GOING STATE-OF THE-ART WITH THE LATEST VERSION OF SAP, WHICH IS IOT [INTERNET OF THINGS ] READY. THIS WILL ALLOW US TO BUILD ONTO IT AND LOOK AT THE POTENTIAL FOR PREDICTIVE ANALYTICS, MACHINE LEARNING AND AI” — Brian Schulties, CPO NA, Prysmian Group

production and factory efficiencies, but also the cost of delivery.”

Beyond the strategic change triggered by the merger, Alivia notes how Prysmian is always open to dynamic change in the quest for greater efficiencies through the implementation of new technologies.

“We’ve run idea pilots with augmented reality in our factories and trialed smart devices, such as sensors, both in our production lines and out in the field.” The group is keen to implement machine learning to help with its logistics network, though Alivia

E XE CU T I VE PRO FI LE

Gianmichele Alivia Alivia started his career at Pirelli in Milan with the corporate supply chain team. Since 2006, he has moved back and forth between Italy and the US working mostly on supply chain and managing the company’s B2B website.

Alivia spent time at the former U.S. headquarters in South Carolina during the merger with General Cable. At the time, he was in charge of the regional supply chain of Legacy Prysmian, North America, and then, after the acquisition of General Cable, Alivia moved to current headquarters located in Highland Heights, KY and took a role in the new organization where he is working on the synergies project following the merger between General Cable and Prysmian Group.

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21

PRYSMIAN GROUP

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CARING for our people and communities ACTING responsibly for the planet BUILDING a better future together Learn more at cabotcorp.com/sustainability ©2019 Cabot Corporation

A leading manufacturer of protective materials for high reliability applications since 1946.

Tapes, laminates, sealants and coatings

Wire and Cable tapes and moisture block compounds

www.chasecorp.com AUGUST 2019

Electronic and Industrial coatings

Anti-corrosion coatings for Infrastructure

We make a material difference

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Y T I L I B A N I A T S SU We believe it’s more than a buzzword.

It’s a pillar of our business practices.

concedes the cable industry is quite conservative and only implements technology when it can serve a proven purpose. “One of the most interesting things we’re doing is putting tracking devices on our cable drums to be able to monitor where they are at all times and ensure there is a faster turnaround of these assets once the cable on the drums has been used,” he reveals.

Meanwhile, Schulties believes there’s potential to harness AI capabilities to reduce the need for remedial tasks.

“ EXPECTATIONS SINCE THE MERGER ARE HIGH, AND WE ONLY HAVE TWO YEARS FROM START-TOFINISH TO WORK ON THE SYNERGIES – BEYOND THAT IT BECOMES THE NORMAL COURSE OF BUSINESS” — Brian Schulties, CPO NA, Prysmian Group

Almost a year on from the acquisition, Prysmian Group is preparing the

23

significant step of merging its ERP systems. “It will generate efficiencies

E XE CU T I VE PRO FI LE

Brian Schulties Brian Schulties is the head of Purchasing for Prysmian Group North America. Schulties has more than 30 years of experience in the procurement field in the automotive, foundry and wire and cable markets.

Prior to joining the company, he was the vice president of Sourcing for General Cable. Brian holds a bachelor’s degree in business administration from Cleary University and has a lifetime C.P.M. certification.

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PRYSMIAN GROUP

with everyone operating the same way on a shared system; obstacles will be removed giving us a better foundation to build for the future,” confirms Alivia.

“We are going state-of-the-art with the latest version of SAP, which is IoT (Internet of Things) ready. This will allow us to build onto it and look at the potential for predictive analytics, machine learning and AI.” Beyond the challenges of the merger, innovation remains a high priority for Prysmian with 25 R&D centers across the globe and a 24

commitment to patenting new cable designs. Schulties is keen to act on the voice of the customer and see the company leveraging its supply base, as far as its technology and ability to provide innovation with delivery to market. On that quest, Prysmian works with 3PL, transportation and supplier partners. “We’re in discussion with companies like UPS,” says Alivia.

“How do we create more than just a supplier/customer relationship?

How do we form a strategic partnership with the extended supply chain team to come up with solutions?

We’re having whiteboard discussions to find ways of solving shared problems AUGUST 2019

25

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PRYSMIAN GROUP

M A R KS THE SP OT Raw Materials, All Over Again Since 1918 At PMR our mission is to reintroduce useful raw materials for the metals and plastics industries, reduce the scrap generator’s waste stream and play a major role in the greening of our environment.

Headquarters 99 East River Drive, East Hartford, CT 06108 • 860 622-7626 Offices & Plants: East Hartford, CT • Orangeburg, SC • Canastota, NY • Miami, FL Willimantic, CT • South Windsor, CT • Wilmington, DE • Hickory, NC AUGUST 2019

across the entire infrastructure of our organization.”

Focusing on shared sustainability goals is also key for a company

€11.bn Approximate revenue

ranked third in its sector by the 2018 Dow Jones Sustainability Index (DJSI).

Prysmian is working with procurement to identify ways it can increase the percentage of return of recycled plastic and wood from pallets.

Meanwhile, it is engaging with freight providers who invest in new trucks to improve mileage efficiency and reduce emissions. “We’ve also joined

1879

Year founded

29,000

Approximate number of employees 27

CLICK TO WATCH : ‘PRYSMIAN GROUP SHOWS ITS ADVANCED VESSELS FLEET’

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PRYSMIAN GROUP

28 S U S TA I N A B I L I T Y

Prysmian third in the Dow Jones Sustainability Index Prysmian works with its partners

sustainability issues; adopting

for a common goal: achieving

inclusion and diversity policies;

sustainability now and for the

implementing a Code of Business

future. It has improved its

Conduct designed to disseminate

ranking due to numerous actions

responsible business practices

completed in the environmental,

along the supply chain; reducing

social and governance fields.

emissions of ozone-depleting

These include, amongst other

substances; extending the KPIs

things: vesting the Board of

adopted in its own Sustainability

Directors’ Compensation and

Report, drawn up according to

Nomination Committee with

the G4 guidelines of the Global

tasks such as: overseeing

Reporting Initiative.

AUGUST 2019

29 the SmartWay,” adds Alivia. “It’s an

tion. The fact that we’ve just made a

EPA (Environmental Protection

big purchase doesn’t mean we’re not

Agency) program whereby companies

analyzing the next potential acquisi-

work collectively to reduce emissions

tion two or three years from now.”

and improve efficiency.” SmartWay

The strategy is set: making links in

offers an integrated set of no-cost,

the chain is building a bright future

peer-reviewed sustainability account-

for Prysmian and its customers.

ing and tracking tools to help companies make informed freight transportation choices across their supply chain.

Looking ahead, Prysmian’s strategy is to be “consolidators of the market,” says Alivia. “We want to squeeze efficiencies out of the companies we acquire, generate cash, pay the debt and get ready for the future acquisiw w w.suppl yc ha i ndi gi ta l. com

P R O C U R E M E N T T R A N S F O R M AT I O N

32

A REQUIS ENABLED WORLD: THE SUPPLY NETWORK REVOLUTION Richard Martin, CEO of Requis, discusses the changing supply chain industry, its future at the foundation of global commerce and the online market for the enterprise that’s making it a reality WRITTEN BY

AUGUST 2019

HARRY MENE AR

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P R O C U R E M E N T T R A N S F O R M AT I O N

A

decade ago, the essence of the ‘supply chain professional’ could be found hiding

at the bottom of a weekly meeting agenda in a forgotten corner of the accounting department.

Cost was king; tactical buying to drive down price was de rigueur; and the idea of long-term, collaborative supplier-buyer relationships as a way to create value in the supply chain was in its nascency.

In 1911, the relatively new and inaccessibly expensive motor car was assembled by teams of three to four workers over the course of around 12 hours. The fledgling Ford Motor company produced just over 69,000 vehicles that year. By 34

1919, the invention of the moving assembly line cut production time to just over an hour and a half, ensuring that 50% of the cars in the United States and 40% of the cars in the UK were made by Ford. In order to curb worker turnover at his new factories, Henry Ford drastically raised wages, improved working conditions, and immediately efficiency and productivity soared. The combination of transformative business practices and technological innovation reshaped the world we live in. Ford reshaped the world of manufacturing – and the culture of a nation – in a few short years, and left a legacy that reached into the next century.

A decade has passed and the supply chain professional has passed out of the accounting department, rising through the ranks and now sits in pride of place at the leadership table. The AUGUST 2019

“ In a Requisenabled world, our platform means that things aren’t linear or circular: It’s a network” Richard Martin, CEO, Requis

35 ability for supply chain innovation to

services provider Worley. Requis is an

create value through a Ford-like mixture

online supply chain platform built by

of business strategy, technological

supply chain professionals for supply

innovation and developing human

chain professionals. By bringing the

capital, is getting the recognition of the

advancements in customer experience

business community.

from the B2C world to the B2B space,

“With full transparency, I never used

Requis has created an online market-

to think about supply chain,” says

place purely for businesses to buy,

Richard Martin, CEO of Requis. “Today,

manage, and sell assets.

it’s evolved to include everything: the

Martin and his company are on

supply side, the demand side, market-

a mission to bring true, seismic change

ing, engineering – it’s all part of a supply

to all enterprise supply chains. “People

network and people are realising that.”

talk about a supply chain being linear –

The main seed round investor/partner is a leading Australian project and asset

it goes from right to left through different processes. You also have that popular w w w.suppl yc ha i ndi gi ta l. com

P R O C U R E M E N T T R A N S F O R M AT I O N

idea today of a circular supply chain,”

“ There’s no organisation Worley can’t secure access to at the highest level with the right people and in a very credible way.

It’s our job to supply the relevance” 36

Richard Martin, CEO, Requis

says Martin.

He continues, “I think, in a Requisenabled world, our platform means that things aren’t linear or circular. Our view is that you’ll have an asset and that asset will simply travel down the path of highest economic return at that time. That’s what Requis does: act as a destination for all the different participants to expose assets to the audience members in the supply network that want them.”

Two companies came together to form Requis in 2017. Prior to that, Worley, was previously engaged with eBay in order to try and design a next-generation marketplace for the industrial enterprise.

At the time, Martin was working for 6fusion, a company also working with eBay, but engaged in creating an enterprise marketplace centred around electronic IP assets.

“We found ourselves both working with eBay, and then eBay decided to focus more on the traditional retail side of the business, so we turned to each other and started working together.

Eventually, that became Requis.”

Requis’ marketplace provides a conduit through which enterprises can increase the efficiency of their supply

AUGUST 2019

CLICK TO WATCH : ‘HOW REQUIS WORKS – SELLING EXCESS ASSETS ON REQUIS’ 37 networks. “A tier-one operator in oil and

your certified supplier at a certain price.

gas, for example, will buy a certain

You could also see another supplier has

amount of assets. They’ll have some

another suitable asset for you to buy

surplus assets available,” explains

at a different price. Now, they’re not

Martin. “The way procurement works

currently certified to sell that asset to an

now is you have an operator that will

operator but Requis can assist with that

certify suppliers to sell them certain

process. A third option would be the

assets. They’ll go and produce an RFQ,

marketplace. You have these different

get a price on that asset and then start

options that you would not have tradition-

to work with that supplier as they keep

ally seen as an example of the benefit

moving forward.”

of bringing all the participants onto one

A Requis-enabled world provides

platform at a time,” Martin enthuses.

companies with more options. “Let’s say

The benefit of bringing a whole

you’re looking for a particular asset. First,

network of buyers and suppliers, that

you would see that asset is available from

otherwise operate in quite disparate w w w.suppl yc ha i ndi gi ta l. com

P R O C U R E M E N T T R A N S F O R M AT I O N

sectors, onto a single platform has clear implications for the disruption of the supply chain.

Martin notes that, as technologies like 3D printing continue to disrupt manufacturing and construction, and global business community moves further towards service rental business models, the marketplace for non-physical assets is ready for revolution. Requis’

“ There’s no reason why those assets have to be physical. They could absolutely be digital or services”

marketplace is designed to be the centre of an asset trading network used by enterprises. “There’s no reason why

Richard Martin, CEO, Requis

those assets have to be physical. They 38

could absolutely be digital or services,” says Martin. “At the moment, we’re packaging up 3D printing services and

he says.“In some ways, Requis is a

making them available on the platform.

startup, and in others it’s a very mature

People can buy the blueprints for the

organisation. We may be geeks and we

3D printed objects and print them as a

think what we’re doing is very cool, but

service. It’s not limited to hard assets in

we’re not just three technology guys

any kind of way. Once you take a step

sitting in a basement thinking about

back, you start to realise there really isn’t

how to disrupt the market. Those guys

that kind of limitation to it. It’s whatever

wouldn’t be able to walk into a tier-one

needs to travel in this supply network to

company and get a meeting.”

get the job done.”

Martin emphasises that Requis

Martin explains that there are three characteristics displayed by successful

couldn’t be built on firmer foundations.

companies when approaching a

“Having Worley as a parent investor and

customer or partner: access, credibility

partner alongside us brings so much

and relevance. “What Worley brings to

knowledge and expertise is amazing,”

the table is access and credibility,” he

AUGUST 2019

home to over 1M asset, including a $100M Power Plant. The 325+ companies that are registered users report that Requis has on average provided a 25% increase in workflow efficiency and increased capital recovery by 20%.

Martin aims to take Requis into more and more verticals and continue to grow the team. “We’re very fortunate to have technological and subject matter expertise on our doorstep with Worley,” he explains.

Looking to the future, Martin’s excitement is palpable. “We’re entering an investment round that will end in the middle of the summer. What you’ll see says. “There’s no organisation Worley

following that is that we’ll play a much

can’t secure access to at the highest

larger role in procurement, asset mana-

level with the right people and in a very

gement and vendor management.”

credible way. It’s our job to supply the relevance.”

Concluding, Martin jokes that “if you go to dinner and say to people that

Requis plans to continue driving

you’re really excited about supply chains,

companies that use its marketplace

they look at you as though you’re bizarre.

towards the digital transformation

But, if you take the time to talk about

of their entire supply chains. Martin

it, it very quickly becomes obvious

continues to push for the evolution

that it’s completely foundational to

towards the supplier network, leading

the commerce and will be conducted

a company with the agility and vigor

globally today.”

of a startup, backed by a multibilliondollar industry leader.

The Requis marketplace is now w w w.suppl yc ha i ndi gi ta l. com

39

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TECHNOLOGY

42

Tradeshift: connecting businesses worldwide

AUGUST 2019

Tradeshift’s Chief Procurement Officer Roy Anderson and Co-Founder and GM of Tradeshift Frontiers Gert Sylvest discuss their journey towards digitisation WRITTEN BY

SEAN GALEA-PACE

43

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TECHNOLOGY

I

n 2010, co-founders of IT giant Tradeshift – Christian Lanng, Mikkel Hippe Brun and Gert Sylvest – launched the company

with one ambition in mind: to connect

every business in the world. Having achieved

success five years earlier in 2005 through the unveiling of Easy Trade, the world’s first open-source trade platform, the three men collaborated together again to create Tradeshift as the firm became a leader in supply chain payments. Now, the company is responsible for connecting 1.5mn businesses 44

across 190 different countries, processing half a trillion dollars annually in transaction value as Tradeshift has continued to go from strength to strength.

We spoke with Sylvest and Roy Anderson, Chief Procurement Officer (CPO) and Digital Transformation Officer, who both believe the acceleration of digitisation has been key to its firm’s supply chain transformation, as technology becomes increasingly prevalent to companies worldwide. “If you’re trying to digitise in the supply chain, everyone is going to ask why they should change their processes and pay hefty consultant fees to move data out of accounting systems in order to accommodate one particular buyer from more than 100 buyers,” affirms Anderson.

AUGUST 2019

— Roy Anderson, Chief Procurement Officer (CPO) and Digital Transformation Officer, Tradeshift Frontiers

“ The supply chain is still a transactional engine in the older environment, whether that be either paperbased or minimally digital transactions” — Gert Sylvest, Co-Founder and GM, Tradeshift Frontiers

“It’s important to ask yourself ‘what’s in it for me?’ The interesting thing that started happening from the middle of 2005 onwards was that all these economic models of social networks that were two-sided market models were centered around the cheap and efficient distribution of software globally. We felt the time was right to build a network that would work not just as these closed proprietary networks but a little bit more like a social network where you gave people incentives to join.” w w w.suppl yc ha i ndi gi ta l. com

45

TECHNOLOGY

46

CLICK TO WATCH : TRADESHIFT – THE FUTURE OF BUSINESS COMMERCE

With the role of the supply chain

It’s interesting when you ask them

professional having grown and trans-

about metrics and they talk about how

formed over the past few years, Syl-

quickly they managed to resolve an

vest reflects on the significant shift in

invoice problem; their metrics are how

the supply chain space. “The supply

to solve problems on the back end

chain is still a transactional engine in

versus asking why the problem exists

the older environment, whether that

at all. In a digital world, that all vanishes

be either paper-based or minimally

because the transactional work drops

digital transactions,” says Sylvest. “If

down radically due to the internal

you look at the work level of a supply

customer communicating directly to

chain, 60-70% of people are mired

the supplier and getting their work

in transactional activity. It’s low value,

done with no errors in the process.”

and it says ‘I need to get the job done’.

AUGUST 2019

“I felt I could get strategic sourcing

47

done for 80% of my spend because

understand the next generation of re-

I was strategically sourcing the activity,”

quirements and how they can get inno-

adds Anderson. “All the consultants

vation from their supply base in order

up here say sourcing is a seven-step

to be able to meet that expectation

process, however when that happens

one, two and three years out.”

you’re not necessarily the best at it and

With the importance of building key

you’re still doing transactional work.

supplier relations fundamental to the

The real value is looking at all the work

development of all successful com-

that can be moved from the experts in

panies worldwide, Anderson believes

the marketplace and onto the internal

these partnerships are crucial to con-

team that is spending the time where

tinued success in the supply chain

they’re most valuable. It’s important to

sector. “In terms of supplier relation-

collaborate with internal customers to

ship management, the supplier is an w w w.suppl yc ha i ndi gi ta l. com

TECHNOLOGY

“ It’s important that we continue to look at how we can leverage machine learning to provide smarter tools to companies” — Gert Sylvest, Co-Founder and GM, Tradeshift Frontiers

their supply chains, otherwise it’s going to be fragmented. Number two is that every company owns their own space so when they sign off, they have an account which they can 100% control in terms of who they share this information with. It’s not a decision that we can make. We think that’s the foundation of how you can create an ecosystem.”

Looking ahead, both Anderson and Sylvest harbour clear ambitions for the future of technology moving forward.

48

equal participant in the ecosystem as

“I believe that digitisation’s access to

the buyer,” he affirms. “The same goes

finance throughout the supply chain is

whether it’s a one-person company

very simple because if you understand

in Indonesia or a Fortune 500 company

what’s being ordered, who is ordering it

in North America or Europe. We all have

and how it is being invoiced and couple

our own networks and relationships

that information with the logistics pro-

so I think step one is to empower the

vider, you can very accurately assess

supplier to build the relationships with

a risk of such invoice not being paid,”

every other buyer that they have in

notes Anderson.

“It’s important that we continue to look at how we can leverage machine learning to provide smarter tools to companies,” Sylvest adds. “Companies are eager to invest in ML and AI to drive

AUGUST 2019

efficiencies and improve processes,

benefits of digitisation with those that

however, they aren’t going beyond the

they are looking to connect with digi-

surface level to implement the technol-

tally. This consideration stage reaches

ogy to address the siloed workflows

beyond a company’s internal teams

that are occurring at a fundamental

and apply to their customers, ensuring

level. Decision makers need to instead

everyone has an incentive to become

start by asking ‘how can ML and AI be

digitally connected.”

used to empower all my employees to make better spend decisions?’ Secondly, many companies are trying to force digitisation on their supply chain, without providing clear benefits for the supply chain players. Companies need to take a step back and think about how they can best share the

49

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CONTRACT MANAGEMENT

How AI can make supply chains more sustainable 50

ROBERT BOUTE, PROFESSOR OF OPERATIONS & SUPPLY CHAIN MANAGEMENT AT VLERICK BUSINESS SCHOOL, AND JOREN GIJSBRECHTS, PHD STUDENT AT THE RESEARCH CENTRE FOR OPERATIONS MANAGEMENT AT KU LEUVEN, DISCUSS HOW AI CAN ENABLE SUPPLY CHAINS TO ACHIEVE SUSTAINABILITY WRITTEN BY

AUGUST 2019

ROBERT BOUTE & JOREN GIJSBRECHT S

51

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CONTRACT MANAGEMENT

T

he way in which companies organise logistics today is not sustainable. Supply chains are not always the most environmentally friendly and it is impossible

for organisations to sustain a balancing act of the best possible speed, flexibility, cost and carbon footprint when it comes to the shipping and delivering of their goods. In an ideal world, organisations would be able to have a sustainable, cost-effective and efficient supply chain for their products – however, this is isn’t always feasible using the current available methods for shipping.

However, new technologies such as Big Data analytics and AI can help companies make a positive change, ensuring their supply chains run as efficiently and sus-

52

tainably as possible. Utilising AI can have a dramatic effect on supply chains, helping organisations to benefit from the fastest, cheapest and most sustainable routes for shipping, and combining these seamlessly.

So, how can firms implement this? Well, it all focuses around organisations shifting to a sharing economy when it comes to their supply chains. Using AI, data and innovative algorithms can drastically improve the sustainability and efficiency of supply chains by enabling organisations to work together. In fact, there are three very specific areas in which these technologies can applied to create a smart, efficient logistics chain.

COLLABORATIVE SHIPPING Collaborative shipping, otherwise known as sharing shipping, refers to the shared use of shipping and transport methods between organisations. This is something that AUGUST 2019

“ USING AI, DATA AND INNOVATIVE “ USING AI, DATA AND ALGORITHMS INNOVATIVE ALGORITHMS CAN DRASTICALLYCAN DRASTICALLY IMPROVE THE SUSTAINABILITY AND IMPROVE THE SUSTAINABILITY EFFICIENCY OF SUPPLY AND EFFICIENCY CHAINS BY ENABLING ORGANISATIONS TO WORK OF SUPPLY CHAINS TOGETHER”

BY ENABLING — Robert Boute, ORGANISATIONS TO Professor of Operations & Supply Chain WORK TOGETHER”Management at Vlerick Business School w w w.suppl yc ha i ndi gi ta l. com

53

CONTRACT MANAGEMENT

“ UTILISING AI CAN HAVE A DRAMATIC EFFECT ON SUPPLY CHAINS, HELPING ORGANISATIONS TO BENEFIT FROM THE FASTEST, CHEAPEST AND MOST SUSTAINABLE ROUTES FOR SHIPPING, AND COMBINING THESE SEAMLESSLY” — Robert Boute, Professor of Operations & Supply Chain Management at Vlerick Business School 54

we have explored at Vlerick Business

organisations can share details of their

School and KU Leuven, by developing

supply chain with other firms.

an algorithm to help organisations bet-

For example, if a truck is delivering

ter identify opportunities to share their

goods and services to a specific loca-

shipping data and collaborate with

tion, by inputting this data into the

other transporting firms.

algorithm, the system is aware of the

Using GPS data, this algorithm logs

amount of stock in the truck, where

the collection and drop-off points of

it is travelling to and the costs of this

shipping organisations. The system

travel. If the truck is partially empty

remains aware of the state of the envi-

for instance, by using the algorithm

ronment at all times, with regards

organisations which are delivering to

to shipping, stocks, transport meth-

the same location or a location en route

ods and the costs. By incorporating

can share their delivery method, not

the sharing economy aspect into this,

only cutting costs but reducing pollution

AUGUST 2019

55

too – making their supply much more

after they have originally been shipped.

sustainable. This could also be the case

Using the physical internet, organisa-

for making effective use of trucks return

tions can adapt a synchromodality sys-

trips with empty loads too. Using the AI

tem, which involves combining a variety

algorithm and the data inputted into this,

of transport methods in a sustainable

organisations can identify these empty

way and taking into account the urgen-

returning trucks and use them for their

cy of these deliveries, without compris-

own delivery purposes.

ing on the flexibility of the shipping.

Using a real-time data system, the

SYNCHROMODALITY

transportation method of a delivery can

Not all packages are equally as urgent to

be adapted whilst a shipment is en route,

distribute. In fact, many have intention-

meaning that throughout its transporta-

ally long delivery times and some pack-

tion the algorithm can select the most

ages can actually change in urgency

cost-effective and environmentally w w w.suppl yc ha i ndi gi ta l. com

CONTRACT MANAGEMENT

“ BY POSITIVELY REWARDING THE ROBOT, IT WILL LEARN TO NARROW DOWN ITS RANDOM ACTIONS, AND ONLY REPEAT THOSE THAT HAVE A GOOD OUTCOME FOR THE ORGANISATION” — Robert Boute, Professor of Operations & Supply Chain Management at Vlerick Business School

56

friendly supply chain in real-time, continuously shifting to the most efficient and sustainable delivery method possible.

DEEP REINFORCEMENT LEARNING Deep reinforcement learning is a specific element of machine learning and involves training an algorithm to make the best possible decisions.

This is done through a trial and error process, where the robot is guided to the correct decision through positive feedback on its actions. By positively rewarding the robot, it will learn to narrow down its random actions, and only repeat those that have a good outcome for the organisation.

AUGUST 2019

Organisations using this deep reinforcement learning are able to train AI to make complex and positive supply chain decisions which involve a number of variables. In doing so, AI could determine the exact number of products to ship, when to ship and which mode of transport is best to use. This could also be used to train smart algorithms to support companies to collaboratively ship, use synchromodality and replenish an organisation’s inventory smartly, linking all of the aspects of AI together to create the most sustainable and efficient supply chain possible for the organisation.

Not only does integrating AI and new technologies to supply chains benefit the organisation, but from an environmental standpoint utilising these technologies can reduce pollution and the organisation’s carbon footprint, creating a much more sustainable supply chain and enabling a company to make a positive impact on many of the world’s pressing environmental issues.

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S U S TA I N A B I L I T Y

BERWICK PA RTNERS: SUCCESS THROUGH NEW SKILLSETS: 58

DATA, PARTNERSHIP AND THE FUTURE OF STRATEGIC SOURCING IN THE SUPPLY CHAIN Richard Guest, Principal Consultant in the Procurement and Supply Chain Practice at executive search firm Berwick Partners shares his insight into achieving supply chain success through skillset diversification WRITTEN BY

AUGUST 2019

RICHARD GUES T

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S U S TA I N A B I L I T Y

D

espite procurement’s traditional ‘costcutting’ reputation, success in supply chain sourcing is about far more than

driving down price.

From procurement specialists with an

understanding of AI and business performance data, to suppliers that are bought into a business’ ethical stance, strategic sourcing has a key role to play in an organisation’s overall success.

This has taken procurement from a transactional function to one intended to add commercial value across the entire organisation.

60

Tasked with delivering constant improvement and innovation, managing risk and reputation, while adding competitive advantage, strategic sourcing in the supply chain makes procurement a much more complex and multi-faceted ‘business function’ that it may previously have been seen.

DRIVING CHANGE THROUGH DATA Across sectors, digitisation is driving change, with procurement no exception. The procurement team is granted a new asset in the form of supply chain data – and, as a result, is increasingly empowered to steer business strategy and add value.

The advent of AI, robotics and automation allows procurement departments to analyse AUGUST 2019

“ Savvy businesses are seeking diverse talent, looking for leaders ready to challenge the supply chain status quo” — Richard Guest, Principal Consultant, Berwick Partners

performance information more efficiently, more effectively and with greater visibility.

Take the recent news that NestlÊ will pilot blockchain to track its product sourcing data and feed it directly to customers – tracing the milk production figures, for example, from the farms in New Zealand to warehouses in the Middle East. With global information such as this at their fingertips, procurement is able to offer greater credibility and transparency than ever before.

Conversations can now be supported by up-to-the-minute data on businesscritical issues, backed by the comprehensive evidence that has traditionally been a challenge for any team to collate across complex organisations.

However, without the right leadership team in place to analyse and interpret, data is meaningless. Savvy businesses are seeking diverse talent, looking for leaders ready to challenge the supply chain status quo and secure competitive advantage through optimal use of technology.

CHANGING SKILLSETS & NEW TALENT SOURCES Whilst the core skills will always remain, the most progressive organisations are now seeking analytical and IT skills, along with more commercially-inquisitive candidates w w w.suppl yc ha i ndi gi ta l. com

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S U S TA I N A B I L I T Y

“The advent of AI, robotics and automation allows procurement departments to analyse performance information more efficiently, more effectively and with greater visibility” — Richard Guest, Principal Consultant, Berwick Partners 62

who can and want to understand the

perience of dealing with different busi-

strategic impact of value-adding pro-

ness cultures and departments.

curement. This opens up new, innova-

Exemplifying the trend is Tom Rae,

tive and often leftfield sources from

Group Director of Purchasing & Supply

which to seek leadership talent – not

Chain at JCB and a member of CIPS

just from traditional overlapping func-

Procurement Power List 2019. After

tions like sales.

starting in procurement, he moved into

The journey from commercial pro-

a number of General Manager roles

ject manager to procurement is one

across engineering and manufactur-

example of leaders jumping between

ing, before returning to the sector. This

functions to meet strategic sourcing

arguably gave him the opportunity to

requirements – drawing on analytical

gain wider commercial and strategic

and commercial skills, alongside ex-

exposure than somebody who spent

AUGUST 2019

63

their entire career in procurement.

Similarly, businesses are increas-

leaders looking to keep the supply chain competitive are seeking talent

ingly seeking IT expertise to maximise

that is ready to bring a fresh approach

the value of data, to improve forecast-

and update processes. Take the in-

ing and long-term business planning.

creasing trend for public sector bodies,

IT leaders with data manipulation skills

for example NHS Trusts, looking to

are now likely to make the move into

improve effectiveness and efficiency

procurement, as it provides a platform

by recruiting commercially-minded

for those who are more interested in

individuals from the private sector.

adding commercial value through inno-

As sourcing for the supply chain is

vation than fixing hardware issues.

brought to the front-end of the busi-

As well as requiring a wider variety

ness, procurement decision-makers

of career paths from their senior teams,

appointing effectively are casting the w w w.suppl yc ha i ndi gi ta l. com

S U S TA I N A B I L I T Y

net wider and looking outside the box for an updated leadership mould.

A PARTNERSHIP APPROACH The new breed of procurement talent is able to recognise that the modern consumer demands more than simply competitive prices. A series of highprofile business trust issues mean customers are more switched on to the environmental, ethical and social responsibility of their chosen brands – and this, in turn, has highlighted the 64

importance of a sustainable supply chain to minimise business risk.

Strategic sourcing plays a crucial role here, which is driving another evolution – this time towards a partnership approach in supplier relationships.

Successful leadership now involves looking at suppliers as not just a provider of goods or services, but as a fundamental part of their own business.

As a result, the new breed of leaders will use emotional intelligence and strategic nous to form a collaborative relationship with suppliers – ensuring they have an understanding, a view, and in some cases an investment, in the future of the business as a whole.

AUGUST 2019

“ It is becoming increasingly important for Chief Procurement Officers to build a culture of innovation and investigation” — Richard Guest, Principal Consultant, Berwick Partners

Greater engagement inevitably delivers greater results – you only have to look at Carillion to see what businesses stand to lose if they do not evolve in this way.

As a result, it is becoming increasingly important for Chief Procurement Officers to build a culture of innovation and investigation within their department – one which considers all possible suppliers, irrespective of size or spend history, in order to find and cement relationships with the right ‘partners’.

This marks another shift away from the rigid procurement profile of a hardnosed negotiator we could have expected to see in previous years. To fully tap the potential of strategic sourcing, leaders must have a broader skills base than in previous years – looking beyond cold-hard cash to the bigger procurement picture.

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AUGUST 2019

Procurement software vendors Supply Chain Digital counts down the top 10 procurement software vendors, according to FinancesOnline WRITTEN BY

SEAN GALEA-PACE

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67

T O P 10

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10

Deltek Costpoint [ VIRGINIA ]

With headquarters in Herndon, Virginia, the firm is a leader in providing enterprise software and information solutions for project-based businesses. Founded in 1983, Deltek has 23,000 organisations and millions of users in more than 80 countries worldwide. Deltek simplifies sophisticated processes such as billing, expense management, revenue recognition and compliance to maximise profit and revenue as well as increasing cash flow.

AUGUST 2019

69

09

SellerCloud [ NEW JERSEY ]

As a cloud-based solution for multi-channel merchants, SellerCloud provides synchronisation, simplification and automation functionalities that allow retailers to meet challenges head-on.

Based in Lakewood, New Jersey, SellerCloud was founded in 2010 and is recognised as an innovative platform that offers a powerful set of tools to manage the full scope of multi-channel selling.

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Transform Procurement with Contract-Centric Sourcing Accelerate

www.icertis.com

Protect

Optimize

T O P 10

71

08

Oracle

[ CALIFORNIA ]

IT giant, Oracle, has embedded innovative technologies in all aspects of the cloud which allow companies to reimagine its businesses, processes and experiences. The firm’s Oracle Procurement Cloud division provides companies with a solution that combines automation and social collaboration in order to accelerate the source-to-pay process. The software offers a range of features and capabilities, such as watchlist management, notifications and approval, procurement catalogue management, requisitions, purchase orders and negotiations.

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T O P 10

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07

SAP

[ WALLDORF, GERMANY ]

The German software giant, SAP, engineers solutions that “encourage innovation, foster equality and spread opportunity across borders and cultures”, according to the company’s website. Founded in 1972, SAP has a number of subsidiaries such as SAP Ariba and SAP SRM that provide cloud-based solutions to enable businesses to work together and compete in the market. SAP Ariba offers customers spend management solutions and expertise that show everything about a business’s spending habits and leverages that knowledge to enable its user to achieve better deals.

AUGUST 2019

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06

AvidXchange [ NORTH CAROLINA ]

Headquartered in Charlotte, North Carolina, AvidXchange is considered an industry leader in automating invoice and payment processes for midmarket companies across a range of industries such as real estate, financial services, non-profit, energy and construction. Having been first established in 2000, the web-based application is tasked with speeding up procurement and looking to get rid of errors such as wrong orders or duplicated purchases to avoid over expenditure.

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When our clients want to move fast and make things, they turn to us!

Nagarro drives technology-led business breakthroughs for industry leaders and challengers. Some of our clients include ASSA ABLOY, the City of New York, DHL, GE, Lufthansa, Siemens and T-Systems.

Working with these clients, we continually push the boundaries of what is possible to do through technology, and in what time frame.

Today, we are more than 5,000 experts across 21 countries. Together we form Nagarro, the global services division of Munich-based Allgeier SE.

“We need partners like Nagarro who help innovatively and technologically to take place in the digital transformation.”

Dr. Roland Schütz, CIO of the Lufthansa Group, talks about the secret sauce of this successful and trusted partnership.

LEARN MORE

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/nagarroinc

nagarro.com

T O P 10

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05

Bellwether [ KENTUCK Y ]

Founded in 1985, Bellwether Purchasing Software allows small and mid-sized organisations to reduce costs, gain organisational control overspending as well as improve regulatory compliance through the introduction of Procurement Management Software. Based in Louisville, Kentucky, the procurement software is a complete, cloud and on-premise purchasing suite that provides a range of features and functionality that suit all businesses. The software provides enhanced efficiency, quick installation and the ability to customise workflow.

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T O P 10

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04

Orderhive [ CALIFORNIA ]

As a Service as a Solution (SaaS) which provides order, shipping and inventory management functionalities in one platform, Orderhive offers seamless integration with leading marketplaces such as Amazon, eBay and Etsy. It offers an all-in-one online e-commerce inventory and fulfilment solution and is equipped with comprehensive tools and features which automate and streamline multichannel inventory management processes, optimise order processing as well as quickening the shipping and delivery time.

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03

Procurify [ CALIFORNIA ]

The computer software company, Procurify, is a cloud-based procurement and spend solutions that cater to creative and enthusiastic teams. Founded in 2012, Procurify enables its customers to manage spending in an efficient way and allows purchase management to become a smoother process. The service organises data in a thoughtful and friendly way that places an agile requisition process for users to enable requests to be made within seconds from any device.

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T O P 10

02

Tradogram [ OTTAWA ]

Recognised as being a low-priced, cloud-based and secure procurement platform, Tradogram seeks to empower its users through simplistic tools that automate and streamline purchasing.

The software assists the users to manage suppliers, review costs and maximise expends

78

to ensure operations are running to its optimum capabilities. Considering itself as the future of spend management, the firm offers strategic solutions as well as the best practices for purchasing. Businesses that utilise Tradogram will see the procurement operation made easier through multi-level management, approvals, inventory management, user permissions and budgeting.

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T O P 10

01

TradeGecko [ SINGAPORE ]

Topping the list is TradeGecko, a Singaporebased firm which enables business owners and warehouse managers in more than 84 countries to become more efficient and increase its revenue.

80

Boasting a fully-comprehensive back-end system suitable for both small and global organisations, the firm empowers its users to combine creativity and passion. TradeGecko is integrated with world-class accounting and e-commerce systems as well as being fully optimised for mobile usage on iOS with a mobile app and tablet usage on Android.

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

The biggest industry events and conferences WRITTEN BY SEAN GALEA-PACE from around the world

15–18 SEPT 2019

82

3–5 SEPT 2019

Transport Compleet [ GORINCHEM, NETHERLANDS ]

InterModal Expo [ LONG BEACH, CALIFORNIA ] Tackling the key issues which face the intermodal supply chain, the Expo is

Now in its 15th year, the Transport

the intermodal’s platform for products,

Complete Gorinchem is a networking

services and solutions and provides

event which brings the entire road

a classroom for new skills and knowl-

transport industry together. Welcom-

edge to be shared. With more than

ing 12,000 visitors annually, the event

125 exhibitors showcasing the latest

will enable both international and

products and services that is driving

regional providers to showcase

the supply chain industry forward,

their latest products and solutions

there is also set to be over 60 industry

to a professional audience.

experts in attendance.

AUGUST 2019

24–26 SEPT 2019

15–18 SEPT 2019

CSCMP Edge 2019

Supply Chain & Logistics Summit and Expo 2019

[ ANAHEIM, CALIFORNIA ]

[ HILTON ANTWERP, BELGIUM ]

The Council of Supply Chain Manage-

The EMEA Supply Chain & Logistics

ment Professionals is gathering at

Summit & Expo is one of the most

CSCMP Edge over three and a half

established events of its kind in Europe.

days to share insight from a range of

Now in its 21st year, it is a highlight

supply chain executives. Providing

in the calendar where world-class

valuable insight into new, cutting-edge

organisations meet to maximise effi-

solutions and the latest updates in

ciency and minimise costs through

the supply chain space, this event is

supply chain strategies of the future.

certainly one for the calendar.

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

1–3 OCT 2019

Post-Expo 2019 84

[ AMSTERDAM, NETHERLANDS ] The three-day event at the beginning of

14–16 OCT 2019

3PL & Supply Chain Summit: Europe [ BRUSSELS, BELGIUM ]

October will show off products such as

With 400 attendees and 70 leading

security solutions and safety products,

speakers in attendance, the Belgium

consultancy and management strate-

event is set to be full of interactive

gies, post-office counter solutions,

sessions such as coaching sessions,

automation, e-commerce technology

live interviews and 1-2-1 meetings.

and digital marketing in the Automotive,

Supply chain executives from a range

Logistics and Transportation industries.

of manufacturers, retailers and

The event will play host to global visi-

Consumer Packaged Goods are

tors and will be used as a platform to

expected to attend. The event will be

present new innovations and products

centered around four core themes

to a professional audience of business

which are: Agility, Visibility, Respon-

leaders and directors from the postal,

sive and Growth.

parcel and logistics industry.

AUGUST 2019

16–17 OCT 2019

The Responsible Supply Chain Summit 2019 [ AMSTERDAM, NETHERLANDS ] Following its largest and most successful conference to-date, The esponsible Supply Chain Summit is set to return in 2019, bringing together more than 250 CEOs and sustainability and supply

23–25 OCT 2019

36th International Supply Chain Conference [ BERLIN, GERMANY ]

chain practitioners to discuss and

In one of Europe’s top annual business

shape the future of responsible supply

gatherings to discuss logistics and

chains. Previous speakers include Ste-

supply chain management, the three-

ven Stone, Chief Resources & Market

day event brings industry leaders

Branch at the United Nations Environ-

together to tackle the current issues

ment, David De Schutter, Innovation

and future themes in the supply chain

& Technology Officer for AB InBev and

management sector. On average, the

Joe Franses, Vice-President, Sustain-

event attracts over 3,500 attendees

ability at Coca-Cola. With speakers yet

from over 40 countries, 120 speakers

to be announced for 2019, it looks set

and welcomes more than 200

to be another unmissable event on the

exhibitors every year.

global calendar.

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s d n e r t e h t y l g p n i t t p t a Se the su ctor h t e l in in s Hea a h c ward e t S re a C

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BY TEN

A E A-P

CE

GAL N A S E U CE D BY R I C E D PRO RA P T I N DE

W RI

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T

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S T E W A R D H E A LT H C A R E

Michael Prokopis,Vice President of Supply Chain at Steward Health Care, discusses the supply chain strategies his firm is leveraging amidst digital transformation in the healthcare sector

A

s the largest private, tax paying, physician-led healthcare network in the US, Steward Health Care boasts an extensive

portfolio of 38 hospitals in the US and Malta.

Having experienced a significant transformation in its offering over the past few years, the hospital 88

prioritises the importance of first-class care to its patients. With procurement becoming increasingly influential to the way Steward Health Care operates, the firm created a shared services model which evaluates how the facilities are acquired. Michael Prokopis, Vice President of Supply Chain at Steward Health Care, discusses his company’s journey to transform its supply chain. “In shared services model, we have a number of different teams all working together,” he says. “We have a contracting department as well as a data team that helps us to understand the value metrics as well as reporting out to the facilities and observing how they’re doing on the KPIs. We have a procurement group which processes requisitions and turns them into purchase orders. We also have a value analysis wrapper, which allows us to AUGUST 2019

89

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S T E W A R D H E A LT H C A R E

evaluate from a clinical perspective

and we’re in the process of undergoing

how every single product that

that transformation now. What’s

we introduce into the supply chain

critically important from there

and deliver to our clinicians helps

is how you take that information

us decide whether it’s better than

and begin to use it, in order to get

something we’re already using.”

better consumption information at

Having taken steps to embrace

92

the point of care and understand

digitalisation over the past couple

what your inventory positions are.

of years, Steward Health Care

We’re also creating a mission control

is currently operating two ERPs

capability that will allow us to predict

and is well underway in its digital

our ability to deliver care in advance.

transformation journey. “We’re

It’s not enough that we schedule

on a digital path,” affirms Prokopis.

a patient for an operating room

“We know we’ve got to get to one

procedure two or three weeks out.

enterprise resource planning capability,

We also then have to understand

“ We fundamentally believe innovation is the core” — Michael Prokopis, Vice President of Supply Chain at Steward Health Care AUGUST 2019

CLICK TO WATCH : ‘ABOUT STEWARD HEALTH CARE’ 93

what the nature of supply is and

how we can predict the back order

we can get the supply at the point

by watching and monitoring. You have

of care when we need it.”

to ask yourself what you are going

With a determination to lead the field

to do about it, and how you can do

and remain innovative in the healthcare

it in advance in order to counter

sector, Steward Health Care remains

the problem from happening.”

agile as it responds to the latest trends

Prokopis believes what really

in the supply chain space. “The back

differentiates Steward Health Care

orders are always a problem. We have

from its rivals is value analysis.

to ask ourselves how we make sure,

“If you look at other hospital organisa-

with the highest level of prediction,

tions, they have a grassroots approach

we can deliver the things that we’re

where there might be a value analysis

promising to our customers,” says

team that supports every hospital,”

Prokopis. “It’s really about deciding

he explains. “Most will also have w w w.suppl yc ha i ndi gi ta l. com

S T E W A R D H E A LT H C A R E

94

an executive steering committee,

Health Care hospitals dramatically

what makes ours different is that

increase from 10 to 38, the company

we also have a product category

considers innovation a key pillar to its

team serving as the inflection point

future growth and pivotal to success.

to understand what’s happening

“We fundamentally believe innovation

in the facilities and generate lots of

is the core,” explains Prokopis. “Due

grassroot ideas that are evaluated

to the way we’ve expanded, we’re

and monitored for broad standardiza-

moving at the speed of light. I like

tion across our nine-state footprint.”

to joke that we’re a car moving down

Due to the firm’s significant transfor-

the road at 100mph and we’re not only

mation over the past two years which

changing the tires, but we’re also going

has seen the number of Steward

to swap out the engine and the

AUGUST 2019

transmission at the same time.

more sustainable and drive more value

We have to do things differently

for patients. “One of the things that

in order to find those value pockets

we say is that every dollar we save

and continue to drive towards quality

in the supply chain is not a dollar that

of care. It’s not just about consolidating

rolls to the bottom line – it’s actually

standards or bulk buys. We’re constant-

a dollar that we can now reinvest into

ly pushing ourselves to see if there’s

our care,” he says. “There’s a long list

a way for us to improve, reimagine

of things to buy and do and renew

and rethink the way that we’re working

to stay on the cutting edge. I tell

in our hospitals, and most importantly,

my team all the time that our fiduciary

delivering care for our patients.”

responsibility as a supply chain is that

Operating with a firm customer-cen-

we’re a services organisation. We have

tric approach, Prokopis is constantly

service level agreements that we have

evaluating how his firm can become

to not only achieve but exceed! I come

E XE CU T I VE PRO FI LE

Michael Prokopis, Vice President of Supply Chain A leader with a uniquely business-minded approach to healthcare, Michael Prokopis is the Vice President of Supply Chain at Steward Health Care. Overseeing the $1.5 Billion supply chain capabilities of more than 30 hospitals comes naturally to an executive with more than t went y years’ worth of experience in strateg y, planning, and optimization.

Michael has master’s degrees from MIT and Dartmouth and lives in Dallas, TX.

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95

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“ It’s important to pick strategic partners with whom you go through the process of demand planning up to five years in advance and you’re sharing information so that both of you can improve the supply chain” — Michael Prokopis, Vice President of Supply Chain at Steward Health Care

in other industries with just as much unpredictability.”

With the importance of establishing and maintaining successful partnerships vital to all businesses’ success, Steward Health Care utilises a variety of tools to help analyse a range of different data in order to predict patient volume to allow staff to be treated accordingly. Prokopis explains what he looks for when seeking to formulate a successful strategic relationship. “At the end of the day, a good partner is the one that says, ‘If we do this or if we try that, we have the opportunity to move this KPI or metric’. We’re always looking

from a different mindset than tradition-

for ‘strategic’ partners; we hope

al healthcare and provide an outside

someone’s going to come to us and

perspective on what I think a supply

say, ‘Here’s some ideas that we haven’t

chain should look like. I tell my boss

implemented or maybe you haven’t

all the time that we don’t need to

contemplated. Let’s see if we can

reinvent the supply chain…we just

figure out how to do this together’.

need to correctly implement. It’s

Those are the kinds of things that

important to pick strategic partners

are extremely important to do. To me,

with whom you go through the process

a partner is someone who really wants

of demand planning up to five years in

to work with you, that generates new

advance and you’re sharing informa-

ways of doing things and thinks outside

tion so that both of you can improve

the box to see if we can approach the

the supply chain; that is what happens

problem from a different perspective.” w w w.suppl yc ha i ndi gi ta l. com

97

S T E W A R D H E A LT H C A R E

98

AUGUST 2019

23,000+

Number of employees worldwide

2010

Year founded

38

Hospitals in the US and Malta 99

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S T E W A R D H E A LT H C A R E

Looking to the future, Prokopis has a clear vision of how his company can continue to grow over the next few years. He believes the key to future success is to constantly monitor the supply chain. “We’ve just opened two facilities in April. One was an acquisition and the other was a facility that had been shut down that we reopened the doors for,” he notes.

“At the end of the day, you take the supply chain that you’re developing and look for an opportunity to firstly convert a hospital that was doing

“ To me, a partner is someone who really wants to work with you, that generates new ways of doing things and thinks outside the box”

things differently, and secondly provide an opportunity where you’re literally starting from scratch.

You have to ask yourself how you make sure that when the first patient walks in the door, they’re going to get exactly what they need in the time that they need it in. That’s the key.”

— Michael Prokopis, Vice President of Supply Chain at Steward Health Care

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+

102

Procurement goes global at Dentsu Aegis Network WRITTEN BY

DAN BRIGHTMORE PRODUCED BY

DENITRA PRICE

AUGUST 2019

103

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DENTSU AEGIS NETWORK

Dentsu Aegis Network is tackling the need for a centralized procurement function to meet the demands of a strategy targeting growth through acquisition

T

he Dentsu Aegis Network is the first global marketing services group built for the digital economy; designed around the

needs of its customers with the goal of driving sustainable business growth for their brands and business. Growth through acquisitions (such as Merkle), aligned with organic development, is key 104

to the company’s own strategy. To keep pace with that growth it became essential for Dentsu Aegis to create a centralized procurement team in each of its regions of operation.

Sabrina Traskos, Senior Vice President, Procurement, heads up the organization’s American Procurement Team. “My team is responsible for the entire spectrum of procurement activities, from strategic sourcing all the way through to issuing POs and ensuring invoices are correct; as well as looking after real estate and facilities on a day to day basis,” she says. “The focus of what we’re doing is supporting the entire network throughout the procurement lifecycle.”

The challenge for Traskos and her team is to build out a centralized function while assisting the brands across the Dentsu Aegis Network with their AUGUST 2019

105

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DENTSU AEGIS NETWORK

E X ECU T I VE P RO FI LE

106

Sabrina Traskos, Senior Vice President, Procurement Traskos is a proven team leader with extensive international experience in contract negotiations, strategic partnerships, OEM and licensing deals. Her procurement and project management responsibilities deliver a significant impact to a company’s bottom line. As a former Senior Director at GPO Broadlane she managed strategic sourcing on behalf of healthcare providers... “Learning how to talk about requirements in an unbiased way and gain consensus and buy-in from the different organizations was a great experience which prepared me for working with 32 different brands across the Dentsu Aegis network.”

At Dentsu Aegis she manages the integration of new tech initiatives, adding value and efficiencies to its supply chain management while pushing forward with the firm’s sustainability goals.

AUGUST 2019

“ Cisco is helping us move the employee base into as few facilities as possible” — Sabrina Traskos, Senior Vice President, Procurement, Dentsu Aegis Network

procurement transformation. “We have

improving efficiency. “We aim to give

32 business units in the United States

people a say in the design of the pro-

so we’re getting 32 different constitu-

cesses and choosing the vendors,”

encies on board with our Source-to-

pledges Traskos. “After all, they’re

Pay process,” explains Traskos. “For

the subject matter experts who know

some of them, it’s the first time they’re

what they need best.” The next step to

doing a purchase order, so a solid com-

tackle is integrating the right technol-

munications plan is an absolute neces-

ogy. “When we win a new client, we

sity for us. It doesn’t stop when we sign

often have to get up and running very

the contract with the supplier and get

quickly. Procurement needs to sup-

them loaded into the Source-to-Pay

port whatever they need – it could be

system. We have to make sure all of the

research, technology or recruiting, for

relevant stakeholders know who our

example – with very quick turnaround,”

suppliers are, what the process is and

explains Traskos. “But this can lead to

what the transition plan is to switch to

wildly different approaches across the

newly selected suppliers.”

network which could present a data

Consensus building is integral to

integrity issue. Procurement has a w w w.suppl yc ha i ndi gi ta l. com

107

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central role in harmonizing the process

To support positive disruption, what

and making sure the purchasing data

innovations is Dentsu Aegis embrac-

stays consistent.”

ing on its procurement transformation

The pathway to the successful

quest? Traskos is excited about the ad-

integration of new brands into Dentsu

vent of Source-to-Pay across Dentsu

Aegis’ processes is aided by a govern-

Aegis Network. “Previously, it’s been a

ance structure. “Steering committees

bit of a journey just to get aggregated

are at the heart of this,” says Traskos.

spend or figure out how much we

“We have representatives from each of

spend in a particular category or with

the business units and we meet regu-

different suppliers. Source-to-Pay’s

larly to discuss procurement projects,

spend analytics is going to help the

potential savings and to analyze any

team leapfrog to another level where

disruptive technologies.” She believes

we can provide our internal clients with

it’s vital to build a community approach

recommendations and opportunities

to change while providing the opportu-

to save, build partnerships where ap-

nity to learn from your peers.

propriate, and really improve overall

CLICK TO WATCH : ‘SUSTAINABLE PROCUREMENT AT DENTSU US’ w w w.suppl yc ha i ndi gi ta l. com

109

DENTSU AEGIS NETWORK

vendor management and relationships.”

She believes building an ecosystem will improve user experience and bring through more initiatives to enhance efficiencies and savings.

Currently, Dentsu Aegis is keenly focused on the benefits of automation.

Dentsu’s Automation Team works with Catalytic and UI Path on robotics and RPA (Robotic Process Automation) to aid the transition from paper to digital.

“We’ve been able to achieve some significant savings in terms of reducing the amount of time staff spend on ba110

sic tasks,” says Traskos. “This enables us to shift our employees’ time to work on more strategic functions and that benefits our clients. The success of the efforts to date allow us to roll out more automation of other processes.”

As Dentsu has grown through acquisition, its real estate portfolio has grown as well. Now, the company seeks to work on real estate consolidation in order to reduce the overall costs of running so many offices. For Traskos alongside Chris Bendowski, VP of Real Estate and Facilities, to achieve this without disruption, partnerships with the likes of Canon Solutions America are key. Canon, the leading camera AUGUST 2019

2013

Year founded

35,000+

Approximate number of employees

1,000 Clients

50%

Revenue driven by digital

and print solutions business, a leading imaging technology and managed services company, is providing office services to ensure robust support for the smooth running of office functions for all employees. “Canon Solutions America supports us with everything from traditional printers to reception and event services. We have about a hundred offices in the US alone, with as many as seven in some cities,” adds says Traskos. “Canon Solutions America is our essential partner in providing the staffing to support these offices with the highest level of service to the organization,” adds Chris Bendowski. “As we renovate office space and design offices more conducive to collaboration, we need network and WiFi support to create a stable and high performing environment in the workplace. Cisco solutions help us achieve that with a high level of confidence while achieving savings.”

Cisco are also involved with a project to install POE (Power Over Ethernet) lighting to provide energy savings across the organization. “The beautiful thing about POE is the ability to collect data from all your devices and look at room utilization, who is using the room w w w.suppl yc ha i ndi gi ta l. com

111

DENTSU AEGIS NETWORK

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AUGUST 2019

PRESIDIO.COM

and the capabilities that come along

us streamline processes and become

with that. For example, you can adjust

more cost efficient.”

the temperature of a conference suite

Sustainable procurement is a top

according to the number of occupants.

priority for Dentsu Aegis Network in

Big Data is helping us drive efficiencies

2019 and beyond. “We’re getting the

here, and offer a customized experi-

message out there to make sure our

ence for our employees.”

suppliers understand how important

Looking at trends across the pro-

it is,” confirms Traskos. “Source-to-Pay

curement panorama, Traskos is en-

can help us set up the initial relation-

thused by the way data accessible via

ship. From the initial RFP, a supplier will

user friendly dashboards is enabling

see Dentsu’s statement on sustainable

category managers like Sultan Bajwa

procurement, they see how much of

to make quick decisions on her team,

the scoring is based on them having

both on wa tactical and strategic

a verifiable sustainable procurement

basis. “All of the data provided via IoT

program within their organization, and

sensors can lead us towards greater

how they should align with the UN

savings. For example, the ability to look

SDGs (United Nations Sustainable De-

at energy consumption by floor helps

velopment Goals). Once they become w w w.suppl yc ha i ndi gi ta l. com

113

DENTSU AEGIS NETWORK

“ Source-to-Pay’s spend analytics is going to help the team leapfrog to another level where we can provide our internal client base with recommendations and opportunities to save” — Sabrina Traskos, Senior Vice President, Procurement, Dentsu Aegis Network 114

a supplier, we communicate on how our

goals. “Our center of excellence, led by

sustainability program is progressing,

Alex Love, pays really close attention

and more specifics on what we require

to savings and trying to help different

within the various categories. The com-

business units achieve their objectives,”

munication must occur on a regular

she maintains. “Source-to-Pay will pro-

basis to build a community in tune with

vide a big lift for us but we don’t want

our objectives and further the SDGs.”

to underestimate the change manage-

While Traskos notes that all procurement organizations are focused on

ment that’s involved.”

Allied to its financial and sustain-

savings targets, continuous monitoring

ability goals for procurement, Traskos

via data now allows for a more nuanced

is keen to encourage communication

approach able to identify areas for ac-

across the business around reducing

celeration to meet the organization’s

its carbon footprint. “For travel and ex-

AUGUST 2019

115

penses, how do we partner with IT so

around it. Not just for within Dentsu

that we can leverage Microsoft Teams

but within the procurement communi-

to its full potential? What else can we

ty at large, because everybody should

do to partner with different airlines and

be working towards making the world

reduce our carbon footprint? What can

a better place for the future.�

we do with S2P in terms of making sure that the SDGs are being pushed out to our different supplier partners? Not only are we making it 15% of our scoring, to determine who to partner with and who has made this a priority, but we’re trying to make this more visible by building a communication strategy w w w.suppl yc ha i ndi gi ta l. com

116

Creating value and sustainability through technology in the Armacell supply chain WRITTEN BY

HARRY MENEAR PRODUCED BY

DENITRA PRICE

AUGUST 2019

117

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ARMACELL

Amber Jesic, General Manager, Supply Chain,Americas at Armacell discusses using technology to pursue best sustainable practice in the company’s supply chain

T

he global perception of the supply chain has undergone a revolution over the past decade. What was once a series of

independent nodes in a scattered network of buyers and suppliers conducting transactional 118

deals has transformed into something far more delicate, complex and effective. “Organizations are becoming more sophisticated in the supply chain space. As they become better at supply chain and inventory management, they’re becoming more aware of the opportunities associated with the supply chain becoming more interdependent and approached from an end-to-end perspective,” says Amber Jesic, General Manager, Supply Chain, Americas at Armacell. “The increasing availability of real-time reporting and visibility, as well as increasing customer expectations, has certainly caused supply chains to evolve in recent years.” As the global supply chain industry changes, this newfound maturity opens up avenues for companies to fulfil ambitions and live up to core values in new ways.

AUGUST 2019

119

Production lines in Mebane, NC

Armacell manufactures structural PET panels in Brampton, Ontario, Canada.

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ARMACELL

As a global leader in the insulation market, Armacell’s products are vital to making projects in the construction and manufacturing space more energyefficient, and therefore sustainable.

For Jesic, her role at Armacell was the perfect fit. “Sustainability is not only personally important to me, but it’s also the basis of how Armacell operates,” she says. “The company has a culture of global collaboration and innovation that was appealing and they’re also open to change. I saw the role as a chance to make contributions 120

to the organization, and an opportunity

“ Sustainability is not only personally important to me, but also the basis of how Armacell operates” — Amber Jesic, General Manager, Supply Chain, Americas, Armacell

Elastomeric foam sheets and rolls are stored before shipping out of Armacell’s component foam plant in Conover, NC

AUGUST 2019

CLICK TO WATCH : ‘MAKING A DIFFERENCE AROUND THE WORLD’ 121 to leverage our holistic network and

officially incorporated in 2000, its

supply chain to drive competitive

origins can be traced back to the

advantage and drive efficiencies.

1860s and Armstrong World Industries.

A lot of our products drive sustain-

In 1954, Armstrong was responsible

ability. Our ArmaFlex closed cell foam

for the invention of ArmaFlex, the

insulation saves 140 times more

world’s first flexible insulation product,

energy over the course of its life than

carving out its own industry niche

needed to manufacture and transport

that it has dominated ever since.

it.” We spoke to Jesic about the

In addition to making flexible products,

ways in which Armacell is harnessing

Armacell is committed to ensuring that,

cutting-edge technology in order

as a company, it stands by its principles

to drive supply chain innovation, not

of sustainability. “As a multi-materials

only to create value, but make the

and multi-product company, we

company more sustainable.

apply world-class practices every day

Although Armacell itself was

and expand into adjacent technical w w w.suppl yc ha i ndi gi ta l. com

ARMACELL

“ Technology provides an opportunity to simultaneously reduce costs and improve service” — Amber Jesic, General Manager, Supply Chain, Americas, Armacell

122

insulation end markets, continuously

sustainable technology and strategies

extending our temperature range

across Armacell’s supply chain, from

and equipment verticals,” Jesic says.

converting the company’s shipping

“We substitute the legacy materials

lines to an intermodal approach and

of our competition with our innovative

reducing miles travelled, to recycling

solutions and reinforce our premium

over one billion plastic bottles into

brand position to create value for

polyethylene terephthalate (PET)

equipment owners, specifier engineers,

products. “Beyond the benefits we

contractors and investors.”

seek to realize through technology,

Jesic’s role provides a broad mandate

we also are committed to best practices

and list of responsibilities, as she

that impact the environment. To reduce

oversees purchasing, planning, distribu-

waste, we have cases where we also

tion, transportation and compliance.

donate our scrap to prevent it from

She and her team are working to deploy

going into landfills,” says Jesic. “It can

AUGUST 2019

be used in the carpet industry as a padded base for installations, sometimes it’s used for the foam padding in children’s playgrounds – the breadth of application is mindboggling sometimes, given all the different areas you can use foam.”

The core of the company’s innovations and sustainability initiatives involve applying technology to create value in a sustainable way. “Technology provides an opportunity to simultaneously reduce costs and improve service. We’re driving automation

E XE CU T I VE PRO FI LE

Amber Jesic, General Manager Amber Jesic is the General Manager of Supply Chain, Americas, at Armacell. Jesic’s innovative and analytical approaches have redefined and optimized the value of supply chains within select Fortune 500 companies.

A key strategist with an award-winning career in supply chain management, she has proven that with ingenuity, solutions to complex issues can be developed.

She is a thought leader, having led an autonomous truck program as featured in the New York Times.

Amber holds a Six Sigma Black Belt and an MBA from NYU Stern School of Business.

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123

ARMACELL

$686mn Approximate revenue

2000

Year founded

3,000

Approximate number of employees 124

AUGUST 2019

125

Armacell makes foam for gaskets for use in the aerospace industry w w w.suppl yc ha i ndi gi ta l. com

ARMACELL

Armacell makes foam for gaskets for use in the transportation industry

CONTRIBUTING TO THE EARTH’S FUTURE WORKING HAND IN HAND WITH OUR CUSTOMERS

Congratulations Armacell on your fine article!

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“ Beyond the benefits we seek to realize through technology, we also are committed to best practices that impact the environment” — Amber Jesic, General Manager, Supply Chain, Americas, Armacell

wherever possible and easing the process of doing business with Armacell, predominantly through EDI integration, but also through our digitalization efforts regarding load planning and shipment consolidation to reduce miles travelled and condense shipments,” Jesic explains.

As a company that has never been afraid to carve its own way using the latest technological developments on offer, Jesic points out that Armacell is watching the development and testing

PA R T N E R FA C T S

Shintech The modern supply chain is becoming more collaborative and interconnected. As Jesic notes, “multifaceted partnerships are much more common.

We work with our suppliers to develop mutually beneficial plans for the management, inventory management as well as delivery.” Founded in 1974, Shintech has grown to become a leader in its field in much the same way as Armacell.

It is currently the largest producer of PVC in the US and has been partnered with Armacell for more than five years.

“Their consistent service has been an asset to our business,” says Jesic.

of autonomous freight vehicles with great interest. “They can definitely w w w.suppl yc ha i ndi gi ta l. com

127

ARMACELL

drive sustainability benefits,” she says.

“Autonomous trucks will let you better handle fuel usage, there’s less starting and stopping, you can have a bigger fuel tank without a driver, and of course an autonomous truck will be able to provide much more accurate track and trace capabilities.”

Gathering data from a fleet of autonomous trucks may be years away for Armacell, but Jesic stresses how vital data from other sources has become for the company today, and 128

the importance of having the analytics to draw actionable insights. “We’re in the design and development phase of using forecasting tools that will provide predictive analytics which will be used in our production planning and inventory management to better service our customers,” she explains.

As the leader in the $13.5bn equipment insulation market, Armacell is constantly striving to pursue its multi-pillar growth strategy. Its dedicated R&D teams are continually driving the company’s portfolio growth of intellectual property, having more than doubled the number of patents in the company’s name over the past five AUGUST 2019

years. Looking to the future, Jesic is excited to continue bringing Armacell’s open, innovative approach to the workings of its supply chain and management of her team. “I encourage a culture of openness to change and present things in a perspective that highlights the benefits of why that change is being introduced. So, in the instance of digitalization, if it improves the ease of doing business with Armacell, our suppliers and customers then I’ll emphasize those benefits to the teams so they understand why we’re pursuing these changes. Also, benefits like automated reporting help keep our focus on best, not budget,” she concludes. Armacell’s future is bright, as it continues to work towards creating not only value, but a bright future for the planet too.

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130

Strategic deployment of technology for procurement transformation WRITTEN BY

WILLIAM SMITH PRODUCED BY

CHARLOTTE CLARKE

AUGUST 2019

131

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D O L E I N T E R N AT I O N A L

Arindam Sengupta,VP Strategic Sourcing & Procurement at Dole International, details the strategic and technological solutions powering supply chain innovation in the agribusiness industry

A

s Vice President for Strategic Sourcing and Procurement at fruit and vegetable giant Dole International, Arindam Sengupta

sees the potential for a revolution in the way sourcing and procurement in agribusiness are carried out. “Traditionally the agribusiness sector 132

has been behind in terms of procurement practices,” he explains. “Partly that’s due to its complexity, but also to the fact that new technologies, digitalisation and everything else which has been applied in other industries has not been as developed on the agribusiness side.”

A WINNING STRATEGY With this in mind, Dole has implemented a number of strategies geared towards improving efficiency and benefitting the bottom line at the business.

Such an approach is vital given the nature of the industry. “Strategic procurement is critically important for Dole’s bottom line,” says Sengupta.

“Essentially, we are a commodity business where we buy commodities and then process them to sell as branded products. Given the fact that 70% of AUGUST 2019

133

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D O L E A S I A H O L D I N G S ( P T E ) LT D

our costs lie in procurement, we have to be competitive and make sure that our supply chains are very affordable.”

One such measure has seen the exploitation of seasonal differences around the world. “The peaches that we buy are typically from Greece and China,” says Sengupta. “The problem is that they have similar seasons in the same hemisphere. Peach season is between one and one and a half months, so we had to buy a whole year’s supply in that time, placing

134

a constraint on quality and a risk with climate. Now we look at different hemispheres strategically. Typically, the same fruit is grown in the northern hemisphere in a different season

“ Using technology we can much better predict the volumes and the pricing of our crops” — Arindam Sengupta, VP Strategic Sourcing & Procurement

compared to the southern hemisphere, so we’ve gone out to South America and South Africa to locate, identify and develop new sources to mitigate that risk.”

Another development has been the streamlining of Dole’s procurement structure, supported by its procurement excellence team. “We are moving from a very decentralised procurement structure with a lot of buyers to a much

AUGUST 2019

CLICK TO WATCH : DOLE – GROWING PINEAPPLES 135 more centralised, centre of excellence

both a moral and a business perspec-

model. That’s ensuring the different

tive. “How do we make our procure-

Dole entities have a standardised

ment organisation fit for the future?

approach, while still maintaining

It’s clear the sustainability agenda

flexibility at the local level for all the

looms large in the minds of our consum-

operational and tactical buying.” Dole

ers. Focusing on sustainability will

is also implementing a category

affect how much customers

management approach. “Our category

are willing to pay for our

managers think strategically to develop

products compared

new products and ways of buying using

to our competitors.

the external resources of suppliers and

To achieve that

partners, developing our business

we’re going to

for the future.”

need to build

Sustainability, too, has become a critical part of Dole’s strategy, from

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Adding value through sustainable packaging Hypac has been supplying its range of barrier packaging materials to Dole since 2000. For almost two decades, the organisations have enjoyed not just a supplier/customer relationship but a true partnership built to last.

Hypac Packaging Pte Ltd was established in 1992 and pioneered the supply of high barrier multilayer films. Today it caters to high-profile clients in the pharmaceutical and food companies like Dole. The motto of the business are “honesty, quality, consistent price competitiveness and excellent after sales service”.

As a dynamic packaging solutions Company, conscious of its responsibility to its customers and the environment, Hypac is also currently working with Dole in the development of biodegradable pouches and films in order to align with the company’s 2025 sustainability and plastic waste reduction goals.

“Sustainability is a big focus as we build relationships with external partners and suppliers, and as we head into the future and a new generation of buyers and consumers, it’s going to become more and more important,” says Arindam Sengupta, Global VP Strategic Sourcing & Procurement at Dole International.

Hypac builds trusting relationships with clients by offering an array of important

aspects including a competitive price guarantee and price stability based on contracts signed. It is also always striving to create best value for partners such as Dole with cost down opportunities together with a volume loyalty incentive program. In addition, with just-in-time supply chains vital to the food industry, Hypac offers short lead time delivery perfect for such cases.

Much more than just a vendor, Hypac offers sales and technical support to many of its clients. In order to operate sustainably and encourage more consumers to purchase Dole products, Sengupta acknowledges it’s vital to work end-to-end with marketing and sales organisations to stay ahead of the curve. With packaging as the fifth ‘P’ in the marketing mix, relationships with organisations like Hypac and the added value it offers are vital.

Hypac looks to add value by assisting customers in the development of packaging rather than just supplying it, and takes pride in the tailor-made solutions it offers to meet specific packaging needs.

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D O L E A S I A H O L D I N G S ( P T E ) LT D

138

allotments and new marketing agendas,

and a new generation of buyers and

and work end to end with marketing and

consumers, it’s going to become more

sales organisations to stay ahead of the

and more important.”

curve.” Sengupta is clear that a sustainable approach can add value to Dole’s

TECHNOLOGY

business by acting as a selling point for

To achieve the potential sourcing and

customers. “Consumers are more likely

procurement efficiencies identified

to buy products from companies who

by Sengupta, the company has put

have sustainable practices,” says

to work numerous technological

Sengupta. “That’s in terms of how they

solutions. Sengupta gives the concrete

source, make or package things.

example of pineapple, which like other

Sustainability is a big focus as we build

commodities operates on a boom

relationships with external partners and

and bust cycle. “When prices are high,

suppliers, and as we head into the future

farmers rush to grow the crop in larger

AUGUST 2019

E XE CU T I VE PRO FI LE

Arindam Sengupta, VP Strategic Sourcing & Procurement Sengupta joined Dole in 2018 with a mandate to lead and transform its global procurement organisation and make it ‘Fit for the future�. He is responsible for leading procurement across four factories and multiple co-packer locations globally and leading a team of 100 procurement professionals with a multi billion dollar spend.His previous background has been at Royal Dutch Shell, where he demonstrated extensive Procurement leadership and business impact over the past 13 years with a proven track record of performance. His previous leadership role at Shell was as Global Procurement leader for their Multibillion annual procurement of Materials, Equipment, Fabrication and EPC services businesses. Sengupta worked with diverse teams and over 30 significant suppliers globally to lead strategic transformation initiatives, manage procurement strategy development, innovation, benchmarking, procurement implementation and maintain market beating pricing for the categories in scope. Prior to working at Shell, Sengupta had extensive International Leadership experience across multiple organ-isations at a regional and global level, and has lived in seven countries across three continents.

Sengupta holds a MBA degree in Finance & Strategy with Distinction from University of Oxford, an MBA degree in Marketing from the Indian Institute of Management, Ahmedabad, and a Bachelor Degree from the Indian Institute of Technology in Kharagpur.

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139

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D O L E A S I A H O L D I N G S ( P T E ) LT D

£ 2.5bn+ Approximate revenue

2012

Year founded

20,000

Approximate number of employees 142

AUGUST 2019

volumes, depleting other crops. When prices are low due to demand or oversupply, then they shift to other crops because they’re not getting enough profitability from their farms.”

To manage this, Dole has implemented advanced predictive models that help it to better understand supply and demand of a particular commodity.

“To come up with a predictive model of demand and supply patterns globally and regionally is always a challenge.

We have recently been working to develop a much more sophisticated model which not only uses historical data but incorporates many other factors. That includes farmer behaviour, demand in the market, inventory being held in different locations and markets, and how trends are changing in the industry in terms of consumption and crop growing, et cetera.” To collect the data that is put in to the models, Dole is pioneering yet more digital solutions.

Future technology investments will look at using drones to replace physical surveys, using AI for better demand forecasting from the field and implementing more modern practices in farm management and irrigation. w w w.suppl yc ha i ndi gi ta l. com

143

“ Creating the right talent, having the right mindset and the right approach with empowered and motivated people will drive the organisation forward” — Arindam Sengupta, VP Strategic Sourcing & Procurement

different legacy systems. One of the first things that we decided, which has already been rolled out, is a single ERP from agri to marketing – end to end. That will enable us to capture and make visible data on what we are doing, where we are spending and what we are and aren’t doing correctly.” The more decentralised nature of agribusiness compared to other industries makes the inherent scalability of

Software solutions have also been implemented across the business. Such unified

software solutions attractive, as has been the case with digital purchasing at Dole.

systems have brought

“On the back of ERP, we are also

increased clarity and

implementing new procurement

understanding of busi-

software from Ivalua. Ivalua is very

ness operations. “We took

suitable for us, very flexible and

the decision to roll out a

caters to our needs. What we are

brand new enterprise resource

trying to do is not only digitalisa-

planning (ERP) system across the

tion and analysis of the entire experi-

entire supply chain, which enables us

ence of interaction with suppliers,

to have critical visibility on data,” says

vendors and partners, but also the

Sengupta. “Data is one of the most

development of an eMarketplace.

important factors behind making

The dream is to move towards a

decisions, but that was one of our weak

more Amazon-like user experience

points. Our data was very segmented,

for the end users, who are our end

mostly very manual and driven by

customers internally, where they can w w w.suppl yc ha i ndi gi ta l. com

145

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seamlessly input the items that they want, the standards and specifications, and then have a list of fruit suppliers.�

With clear strategies guiding the deployment of technology to fulfil its aims, Dole is in the midst of a purposeful and effective digital transformation of its supply chain functions. Having presided over these developments, Sengupta is clear about just what it takes to deliver on the promise inherent in a properly managed supply chain. “There are four pillars of sustainable advantage to empower strategic sourcing and procurement AUGUST 2019

C OM PA N Y FACT S

• 70% of Dole’s costs lie in the cost of procurement • Dole uses AI, better forecasting models, technology driven surveys and modern farm & irrigation technologies to deliver a higher predictability of supply

in any organisation. The first one is affordability: we have to continuously improve – if we are just standing still, even if we are ahead we will be caught up to. Second is sustainability: all of our supply chains, all of our activities, all of our products, everything should be sustainable at the end. That’s key for the future, from a regulatory, environment and consumer point of view. Third is reliability: do we have the alternative sources we need? We have to have reliability in our supply chains, meaning that we have to provide our customers and our consumers with products no matter any adversity in the supply chain. The fourth part is people: that is always the most important thing because anything can be done if you have the right people. Creating the right talent, having the right mindset and the right approach with empowered and motivated people will drive the organisation forward. With these factors in mind, the procurement and sourcing function at Dole can deliver a sustainable, predictable & profitable growth.”

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147

Digital transformation of supply chain solutions WRITTEN BY

148

MARCUS LAWRENCE

AUGUST 2019

PRODUCED BY

CHARLOTTE CLARKE

149

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C A R G O S E RV I C E S FA R E A S T

Josephine Lee, Deputy Chief Process Officer at Cargo Services Far East, discusses the innovative and pioneering digital transformation of the company’s supply chain solutions

C

argo Services Far East (CSFE) has become a leading integrated logistics solutions provider since its founding by John Lau

in 1990. Taking command of the wider Cargo Services Group’s operations in the Far East with strong operational footprints in China, Hong Kong, 150

Singapore, the UK, the US, Australia and more besides, CSFE combines an extensive offering with a culture of customer-centricity that has historically driven enhancement of its operations. In the age of digital transformation, the firm is taking the opportunity to maximise the suitability of its supply chain services to a broad range of industries and customer types like never before, placing focus on visibility and transparency while optimising its internal operations and implementing automation.

Josephine Lee, Deputy Process Officer at CSFE, says the qualities of the industry make for a challenging but exciting prospect when it comes to overhauling operations through disruptive technological solutions. “Because of the uniqueness of the industry, quite a lot of operations across projects involve a range of different parties,” AUGUST 2019

151

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she says. “Supply chains consist of

Purchase Order (PO) Management

big, global contracts, and every party

Visibility solution have been enhanced

needs to be connected together.

in response to the aforementioned

It involves a lot of interaction. In the

customer demand for increased

past, most of these interactions would

visibility. “LIMA gets all the parties

take place by telephone or fax or

together in a single platform to see all

similar channels. Nowadays, everyone

of the shipments with the same level

is looking for transparency and

of transparency. With it, every check-

visibility. We have to transform

point from a shipment’s origin to

ourselves from the traditional way to

destination is tracked by LIMA,” she

the modern way.” Lee notes that CSFE

says. The scope for CSFE’s transpar-

has placed a particular focus on

ency across the supply chain goes

incorporating best-in-class solutions,

beyond the status of a shipment,

with LIMA being one such example.

with Lee adding that the product

The outset of the firm’s digital transfor-

lifecycle management (PLM) software

mation was marked by LIMA’s imple-

in place spans from sourcing through

mentation, and the capabilities of the

to shelf. “All parties are able to view w w w.suppl yc ha i ndi gi ta l. com

153

C A R G O S E RV I C E S FA R E A S T

$1.2bn Approximate revenue

1990

Year founded

6,000

154

Approximate number of employees

AUGUST 2019

155

“ The number one concern is how to change the culture effectively, because people are the most critical element” — Josephine Lee, Deputy Chief Process Officer, Cargo Services Far East

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every detail of the shipment before

our customers, and using it to help

it arrives at customs. As a logistics

them analyse business patterns and

operator in Asia, incorporating LIMA

behaviours from past years.

at the beginning of our transformation,

We developed our own data analysis

offering customers and shippers a high

capabilities using Microsoft’s data

level of transparency, was a very

solutions,” says Lee. AI is being applied

pioneering approach.”

to enhance this analytical offering,

CSFE is also leveraging Big Data

tailoring the insights to the respective

and artificial intelligence (AI) to

company’s own business patterns and

augment the information presented

offering an intelligent perspective for

with predictive and analytical solutions

their strategies. “By leveraging AI

that can elucidate the true value of

technology, we empower our role

the supply chain’s data. “From 2016,

as a freight manager for our customers.

we have been gathering all of our

In the supply chain process, the freight

business data with the consent of

manager helps the customer to

AUGUST 2019

coordinate and monitor the shipments

technologies are realised in full, CSFE

from end to end. We can provide them

has placed a significant focus on

with insight, predictions for potential

managing its internal culture. “The

hurdles between shipments and how

number one concern is how to change

we can overcome those hurdles,

the culture effectively, because people

as well as using that historical data

are the most critical element,” says

to prevent future problems,” explains

Lee. “Initially, it was challenging

Lee. “The two major areas of benefit

because people found it difficult to

to the customer are in managing data

see how they could help us to conduct

efficiency and reducing costs.”

the transformation and achieve

Ensuring the benefits of these fresh

a positive result. People are pretty

E XE CU T I VE PRO FI LE

157

Josephine Lee, Deputy Chief Process Officer Lee has been with Cargo Services Group since 2017.

In her current role, she leads corporate functions of Global Process and Information Technology for digital transformation, process automation and operational efficiency through cutting-edge solutions and technological knowhow. Internal Audit, Quality Assurance and Claims come under her remit to ensure effective corporate governance. With over 20 years’ professional experience, Lee has held executive positions as VP of HR and Administration with CFL, and as General Manager of Sage Consulting.

Lee holds a Masters degree in Human Resources Development and Training for the University of Technology, Sydney.

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C A R G O S E RV I C E S FA R E A S T

158

“ As a logistics operator in Asia, incorporating LIMA at the beginning of our transformation, offering customers and shippers a high level of transparency, was a very pioneering approach” — Josephine Lee, Deputy Chief Process Officer, Cargo Services Far East

conventional; they are generally much more willing to follow instructions rather than be part of the change or innovation.” To rise to this challenge, CSFE has incorporated a culture of open communication between upper management and the rest of the organisation. “We understand that communication is the most crucial part of change management,” says Lee. “Our chairman has been personally involved in this. He spends time devising workshops, sharing sessions and management briefings to help staff

AUGUST 2019

Looking forward, Lee says automation is a key area that the company is set to explore. It has already introduced a robust warehouse management system that has been developed in-house, known as eCWMS, for its customers, along with radio frequency technology to maximise the efficiency of inventory management and cargo delivery. However, Lee stresses that CSFE is always looking for the next way to innovate for its customers.

“I would say that around 70% of the operations are still very manual,” she says. “The digitalisation and automation of these processes is a key part at all levels appreciate the benefits of

of our plan for the next five years, and

the transformation.” Lee adds that this

we will also adopt more Big Data and

work represents a break from tradition-

other electronic data interchange (EDI)

al managerial methods in the region,

solutions.” Along with shifting more

replicating a model that has been

processes over to the cloud to increase

effective in Western organisations.

operational flexibility, Lee is confident

“In the East, particularly in China, it is

the company will continue to be

not common practice for a chairman

a pioneering leader in the industry.

to come out and deliver a workshop and directly share their vision for the company,” she says. “This type of communication is much more common in the West, and we always hear it is the best practice.” w w w.suppl yc ha i ndi gi ta l. com

159

160

Katoen Natie: digital and operational transformation to drive value for the customer WRITTEN BY

MARCUS LAWRENCE PRODUCED BY

CHARLOTTE CLARKE

AUGUST 2019

161

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K AT O E N N AT I E

Anton Colpaert, President and CEO at Katoen Natie Thailand, discusses how the logistics company is maximising the value of its services with holistic transformation and a people-led operational focus

K

atoen Natie, one of the world’s largest international logistics service providers, is resolutely ‘people first’ across its global

operations. In Thailand, a hub for the company’s 162

Asian presence, the focus on both employees and customers runs through the core of the firm’s reputation for maximising the value of its services.

For Anton Colpaert, President and CEO at Katoen Natie Thailand, the push towards Industry 4.0 is a continuation of the company’s longstanding track record of innovation in the market. “If you look at how we changed the logistical approach in the petrochemical and chemical industry, you can see that we have already been bringing innovation for 25 years,” he explains. “We want to make sure that our customers continue to see that we value that continued effort within our company, and that we certainly want to stay ahead in that number one position.” Colpaert adds that digital transformation offers an opportunity to push the boundaries of Katoen Natie’s customer-centric ethos.

AUGUST 2019

163

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K AT O E N N AT I E

164

“ We’re very decentralised, so if you can attract the right people you can create smaller, flourishing islands of operations”

“Digital transformation is certainly very

— Anton Colpaert, President and CEO, Katoen Natie Thailand

transformation takes its employees

important, but we are actually focusing on transformation as a whole. We’re adopting radical changes to try and reorient the organisation in a new direction and take it to a new level of effectiveness,” he says. This broad, holistic approach to transformation is ultimately grounded in the efficacy of its internal culture and change management.

True to its motto, ‘our people make the difference’, Katoen Natie Thailand’s into account at every level. “The strategy has been, from an early stage, to avoid having a heavy corporate structure.

We’re very decentralised, so if you can attract the right people you can create smaller, flourishing islands of operations where people can go wild with their ideas so long as they’ve proven to be adding to our efficiency, and adding to or creating that maximum value for our customers,” says Colpaert.

This attitude, coupled with a pragmatic approach to modifying operations, helps to ensure that new technologies and strategies are applied with care, simultaneously minimising disruption and ensuring that the added value is maximised. “We should not forget the

AUGUST 2019

CLICK TO WATCH : ‘ENTER INTO THE WORLD OF KATOEN NATIE (THAILAND)’ 165 core and basics of what we do,”

important to make sure that the proof

explains Colpaert. “We try to empower

of concept is well thought out and well

our employees as much as possible,

tested, and that we are able to roll it

but often using these tools can let

out quickly. On top of that, we place

them forget the basics of their work.”

focus on testing and retesting, and

He stresses that this potential for

still auditing the system as well.”

cutting corners is counterintuitive to

An area where great strides have

the transformation process and

been made from a technological

purpose: if value added by technology

perspective is automation, particularly

is offset by lost value from employee

regarding administrative processes.

input, the transformation has failed.

For a company with clients as diverse

“We have to be very vigilant. Even if

as Katoen Natie, automating physical

you train them well, they can start to

logistics processes throws up big

rely on the system too much in which

questions about flexibility in terms

they think they can take shortcuts. It’s

of accommodating the continuous w w w.suppl yc ha i ndi gi ta l. com

K AT O E N N AT I E

CLICK TO WATCH : ‘KATOEN NATIE SINGAPORE FIRST DRIVERLESS TRUCK’ 166 changes in product types, weights and

desks where truck drivers can check

dimensions. “From a pure automation

themselves in, and we’re pushing to be

point of view, that’s a big challenge,”

completely paperless in our warehouse

says Colpaert. “It’s a little bit easier if

operations,” says Colpaert. “We opened

you’re on a production site because

up a new terminal in the Rayong region

you have a very defined and under-

which is so small-scale that it offers

standable flow.” While these challenges

a controlled environment to apply and

are being addressed through the

test these new technologies.” Shifting

development of smart, artificial

to paperless operations offers a whole

intelligence (AI)-driven solutions,

host of benefits that range from greater

Katoen Natie has elected to take a

efficiency to a mitigated environmental

step-by-step approach to applying

impact. Not only will the company be

automation across its admin flows

able to significantly cut its paper waste,

and shifting to paperless operations.

but the fuel consumption and associated

“We’re working on automated reception

costs of sending and receiving paper

AUGUST 2019

documentation are also brought down.

of solar panels and thereby generating

Paperless operations also slash the

more electricity than it uses. “In Thailand

margin of error of paper documentation,

we have more than 450,000 sq m of

improving safety, accuracy and quality.

roof surface, and at the moment we

Colpaert enthuses about Katoen

have only installed panels on around

Natie’s wider sustainability strategy,

10,000 sq m,” says Colpaert. “We are

particularly in terms of the progress

certainly open to further investment.

made with its solar panel initiative and

Once legislation changes, we should

its role in the Operation Clean Sweep

be able to put our solar-generated

programme. Thai legislation currently

electricity onto the grid.” With regards

limits the extent of the project as

to Operation Clean Sweep, an

surplus electricity cannot be offloaded

international effort to curb the amount

to the national grid, but Katoen Natie

of plastics entering the oceans, the

is nonetheless actively pursuing a

firm has been investing heavily in its

furthering of its recent 1MW installation

infrastructure to mitigate the volume

E XE CU T I VE PRO FI LE

Anton Colpaert, President and CEO Colpaert holds a Masters degree in Chemical Engineering, Faculty of BioScience at Ghent University. In 2004 he entered the Katoen Natie Management Trainee Programme, after which he joined the Supply Chain Engineering business unit where he acted consecutively as project manager, terminal manager, project director and VP engineering while working in four different countries.

He also supported Katoen Natie’s ambitious growth and investment projects in North America. He then moved from Houston to Thailand to become the CEO and President of Katoen Natie Services (Thailand). He hopes to safeguard and contribute to the further expansion of the company while continuously raising the bar of the offered services.

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K AT O E N N AT I E

168

“ We should not forget the core of what we do and the basics of what we do” — Anton Colpaert, President and CEO, Katoen Natie Thailand

AUGUST 2019

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K AT O E N N AT I E

PERFECT PACKAGING TECHNOLOGY FOR FREE-FLOWING BULK PRODUCTS

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171 of plastic spills and waste; and subsequent potential effluent this generates.

Over the last few years, money has been pumped into redesigning a host of operational equipment, including sweeper trucks, wet cleaning devices, pellet skimmers/screens and more to reduce the amount of plastic spills.

â‚Ź2.bn

Approximate revenue (EUR)

1854

Year founded

Not only that, but Katoen Natie Thailand is also engaged in local initiatives such as beach clean-ups and recycling.

Looking forward, Colpaert says that the firm’s next steps from a technological and transformational perspective

14,000+

Approximate number of employees

are rooted in the needs of the customer. w w w.suppl yc ha i ndi gi ta l. com

K AT O E N N AT I E

“We do not produce anything; we generate a service for the customer and we can only ensure we are doing that in the best way by opening up and listening to them, understanding their needs and seeing how their – and consequently our – world is evolving,” he says. “It’s essential to keep track of that customer heartbeat and understand them fully.” Katoen Natie is aiming to ramp up its use of Big Data and advanced analytics to leverage customer insights in a more direct and actionable fashion. “At this 172

stage, we are trying to interlink programs across the company so that we can build a complete view of the information itself and maximise the data’s value,” explains Colpaert. Given the extent of Katoen Natie Thailand’s stellar customer centricity and internal culture, it will be very interesting to see how it pushes customer value to even greater heights through such innovations.

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MAKING EVERY MOMENT MATTER WITH A TRAILBLAZING FIVE-YEAR STRATEGY WRITTEN BY

LAURA MULLAN PRODUCED BY

MANUEL NAVARRO

AUGUST 2019

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RADISSON HOTELS

WITH ITS FIVE-YEAR PLAN ‘DESTINATION 2022’ IN FULL SWING, RADISSON HOTEL GROUP HAS ITS EYES SET ON BECOMING ONE OF THE THREE TOP-OF-MIND HOTEL COMPANIES IN THE WORLD

I

t’s been a little over a year since Carlson Rezidor Hotel Group rebranded as Radisson Hotel Group – but that’s not

the only big transformation the company is making.

176

In fact, in many ways it could be argued that Radisson Hotel Group is undergoing somewhat of a renaissance, pulling out all the stops to ensure that, as its signature promises, ‘Every Moment Matters.’

Radisson Hotel Group is already flying high in the hospitality industry: today it stands as one of the largest hotel groups in the world, with more than 1,400 hotels in operation or under development. Its new go-to-market name, capitalises on the strong partnership between Radisson Hospitality, Inc. (formerly Carlson Hotels, Inc.) and Radisson Hospitality AB (formerly Rezidor Hotel Group AB) which has master franchise agreements to develop and operate several brands across Europe, the Middle East and Africa.

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RADISSON HOTELS

“ T HIS PLAN WILL ENABLE US TO BECOME ONE OF THE TOP THREE HOTEL COMPANIES IN THE WORLD, NOT IN TERMS OF SIZE, BUT IN TERMS OF BEING TOP OF MIND FOR OUR CONSUMERS, OUR STAKEHOLDERS AND OUR TALENTED PEOPLE”

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— Chema Basterrechea, Executive Vice President & COO, Radisson Hotel Group

As innovation keeps up its blistering pace in the hospitality sector, the group was keen to energise and reinvent itself. The first step? Creating ‘Destination 2022’, a meticulous five-year plan spearheaded by the Global Steering Committee of Radisson Hotel Group, with representatives from both Radisson Hospitality Inc. and Radisson Hospitality AB’s Executive Committees.

Working his way up the ranks in the hospitality sector, Chema Basterrechea, Executive Vice President and Chief Operating Officer (COO), has an innate understanding of the intricacies of the market. He believes this latest strategy will take the hotel firm to new heights. “This plan will enable us to become one of the top three hotel companies in the world, not in terms of size, but in terms of being top of mind for our consumers, our stakeholders (especially our hotel owners) and our talented people,” he enthuses. With over 25 initiatives in the pipeline, this is no ‘quick win’ strategy. Instead, Radisson Hotel Group is zeroing in on fundamental pillars such as Brand and Products,

AUGUST 2019

CLICK TO WATCH : ‘GONZALO CARPINTERO, VICE PRESIDENT EMEA OPERATIONS AT RADISSON HOTEL GROUP ON LEASE PORFOLIOS’ 179 Marketing, Sales and Revenue

franchised hotels under its wing.

Management, Organisation Talent

“In my opinion, this gives us a very big

and Responsible Business, Best

competitive advantage,” Carpintero

Systems, Scale, Portfolio Management

asserts. “Why? Because it encourages

and more.

us to significantly better our property

Sitting down in the company’s

operations to deliver better profitability.

bustling European headquarters in

For that reason, unlike other international

Brussels, Gonzalo Carpintero, Vice

hotel companies, we have a big opportu-

President Operations for EMEA,

nity to demonstrate to our portfolio that

asserts that the “aggressive yet

all the strategies we believe in – all the

challenging” business plan will

models, tools and technology that we

“transform the way the firm operates

want to implement — are working.” It’s

its hotels”. Indeed, Radisson Hotel

a matter of setting an example.

Group already has a resilient business model, with leased, managed and

Now in the second year of its strategic plan, Radisson Hotel Group w w w.suppl yc ha i ndi gi ta l. com

RADISSON HOTELS

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CLICK TO WATCH : ‘CHEMA BASTERRECHEA, COO AT RADISSON HOTEL GROUP EMEA THE FIVE-YEAR PLAN - RADISSON HOTEL GROUP’

is already reaping the fruits of its

“We are trying to support best practice

labour. “Last year, we had outstanding

operations with technology,” Carpinte-

results – they were in fact the best

ro explains, noting how the firm is using

results in the history of Radisson

digital tools to promote productivity

Hospitality AB – but we were able

and automate day-to-day operations.

to do something very important: we

“For instance, we’ve implemented a

were able to not only maintain the

productivity tool that allows us to

quality levels but also slightly increase

forecast the amount of staff we need

them compared to our competitors.”

and we are also trying to simplify

The secret behind this operational

day-to-day operations like handovers

success? It might be down to the

for housekeeping and repairs.”

company’s unwavering commitment

Carpintero is keen to add that technol-

to quality, or it may partly lie in the

ogy isn’t diminishing the role of the

group’s dynamic use of technology.

people at Radisson Hotel Group.

AUGUST 2019

E XE CU T I VE PRO FI LE

Chema Basterrechea, Executive Vice President & Chief Operating Officer (COO), Radisson Hotel Group (EMEA) Chema Basterrechea serves as the Executive Vice President & Chief Operating Officer at the Radisson Hotel Group (EMEA), reporting directly to Federico J. González, President and CEO of Radisson Hospitality AB and Chairman of the Global Steering Committee of the Radisson Hotel Group. Basterrechea is responsible for all operational matters across EMEA. The five geographical areas of RHG EMEA report to him, which include: Nordics and Baltics; UK, Ireland and Western Europe; Central and Southern Europe; Eastern Europe, Russia and Turkey; Middle East and Africa. Moreover, the following departments are under his area of leadership: Operations, Franchising, Food & Beverage, Asset Management, Safety & Security, and the Commercial teams of Revenue Management, Sales, E-commerce and Marketing.

He has more than two decades of successful experience providing strategic and operational leadership in the hospitality industry.

As former Chief Operating Officer of NH Hotel Group and Chief Executive Officer of NH Hotel Group Italia, he brings a strong track record of performance in turnaround and fast-paced organizations. His keen insights, team approach and strong customer-centric philosophy drive organizational improvements and best practices implementation.

Basterrechea is fluent in English, Spanish and Italian, and holds a master’s degree in business finance from the University of Wisconsin in the U.S. and a Master of Business Administration degree from the University of Oviedo in Spain. He also is a graduate of the London Business School’s Senior Executive Program, IESE Business School of Madrid and Dublin City University. w w w.suppl yc ha i ndi gi ta l. com

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RADISSON HOTELS

E X ECU T I VE P RO FI LE

Gonzalo Carpintero, Vice President Operations at EMEA, Radisson Hotel Group

182

Gonzalo Carpintero serves as Vice President Operations at Radisson Hotel Group EMEA, reporting to the Executive Vice President & Chief Operating Officer. Overseeing more than 400 hotels operating under different business modalities, his main role is to lead the transformation of the Radisson Hotel Group’s Operating Model, which aims to convert the group into the top hotel operator in the markets where it operates. Setting clear guidelines, bringing new technology and fostering the sharing of best practices across properties are his key areas of responsibility.

Prior to joining Radisson Hotel Group, Gonzalo served in several positions at NH Hotel Group, where he was engaged in business transformation, business development and asset management. Before NH, Gonzalo worked as M&A Associate for PwC and Consultant for Deloitte at Madrid.

The combination of several roles related to Commercial, Expansion and Operations, has allowed him to develop a wide perspective of the hotel business as well as a multinational comprehension of the different challenges affecting different markets, from Nordics to South Africa. Gonzalo holds an MBA from IESE and a bachelor’s in Law and Business Administration from Universidad Complutense de Madrid. He is f luent in English and Spanish.

AUGUST 2019

“ L AST YEAR, WE HAD OUTSTANDING RESULTS; THEY WERE IN FACT THE BEST RESULTS IN THE HISTORY OF THE COMPANY”

guest loyalty programmes, sales, property management and much more. “EMMA is a new, totally integrated end-to-end platform,” explains Basterrechea, noting how the platform aims to drive operational efficiencies.

In fact, with the use of EMMA, employees are able to access guest profiles

— Gonzalo Carpintero, Vice President Operations at EMEA, Radisson Hotel Group

which offer valuable

If anything, it’s making their

past stays that

roles more important than

will help employ-

ever before. “We want to

ees create

help our people avoid

personalised,

non-value-added tasks

unforgettable

and focus on what is

guest experiences.

data about guests’ previous purchases and

important: our guests,”

“With a cloud-based

he adds.

platform, we’re

As part of its five-year

able to significantly

plan, Radisson Hotel

decrease the cost

Group has also shed

of our maintenance

some of its legacy

and initial investment,”

technology platforms

Basterrechea adds.

in favour of a soon-to-

“It’s also a single system

be-launched unified

which is a key advan-

system, ‘EMMA’ (Every Moment

tage because, up until

Matters), which is programmed to

now, most hotel companies have used

help with tasks like reservations,

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183

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Featuring with digital portal and intuitive dashboards, users can review data and trends. This quantifiable information offers real-time insight, into your operations, delivered in easy and quick to interpret KPIs. This in-depth insight allows you to improve your qualitative standards while lowering the cost of cleaning and hygiene programs.

These pieces come together to transform service models from reactive to proactive and predictive. The ability to maintain connectivity with these devices will allow businesses to monitor their operation remotely to improve productivity, safety and operational performance.

RADISSON HOTELS

186

CLICK TO WATCH : ‘THE TEAM IS EVERYTHING’– ADRIAN OYEKANMI, SVP, GLOBAL STRATEGIC SOURCING, RADISSON HOTEL GROUP EXPLAINS WHY!

It will provide a clear cost advantage

breakfasts, showers, bedding and

to the owners of our hotels and it

more, which are vital to get right every

will enable us to maximise our guest

time. “It is so important to listen to the

satisfaction.”

customer,” says Carpintero, noting how

A multi-million-dollar technology

last year the firm received more than

investment, however, is just one part

one million reviews online for the first

of Radisson Hotel Group’s five-year

time in its history. “We’ve invested

plan. ‘The customer is everything’

€12mn in our 55 leased properties in

may be a well-versed platitude in

EMEA to enhance our Brilliant Basics.

the hospitality sector, but its impor-

We’re learning from our guests and

tance rings true. With this in mind,

bringing fresh new ideas to improve

Radisson Hotel Group has underlined

the customer experience.”

its customers’ top must-haves (socalled ‘Brilliant Basics’), such as AUGUST 2019

From the mouth-watering food on its menus to the crisp linens on its

E XE CU T I VE PRO FI LE

Adrian Oyekanmi Senior Vice President, Global Strategic Sourcing, Radisson Hotel Group Adrian Oyekanmi serves as Senior Vice President of Global Strategic Sourcing at Radisson Hotel Group. He is responsible for building and developing relationships with key strategic vendors, overseeing contract negotiation, vendor compliance, and accountability across the Radisson Hotel Group globally. Adrian is based in Brussels and reports to Iùigo Capell, Executive Vice President & Global Chief Resources Officer at Radisson Hotel Group. Adrian is an industry veteran who joined Radisson Hotel Group in April 2017. Since then, he has worked to develop and implement a comprehensive sourcing strategy built to improve value proposition for the entire hotel portfolio and its owners, focusing on cost reductions, and promoting the company’s responsible business practices. Prior to joining Radisson Hotel Group, Adrian spent 17 years with Starwood Hotels & Resorts. He served as Vice President of Supply Chain, where he led finance and business analytics, contract management, the implementation of an award-winning procure-to-pay platform, and Six Sigma process improvement. His other assignments at Starwood include Controller, Director of Finance, and Regional Director of Finance. Prior to Starwood, Adrian worked at Forte Hotels in London. He received an International Baccalaureate diploma from the United World College of the Atlantic in the United Kingdom, and a Bachelor of Science degree in Building and Construction Management from Obafemi Awolowo University in Nigeria. Adrian is also a Member of the Chartered Institute of Management Accountants (ACMA, CGMA).

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187

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beds, ensuring these Brilliant Basics are delivered is a task that’s fallen partly into the capable hands of the group’s procurement team. “Procurement forms a critical backbone to Radisson Hotel Group,” asserts Adrian Oyekanmi, Senior Vice President of Global Strategic Sourcing. “We’re leveraging the power of Radisson Hospitality, Inc. and Radisson Hospitality AB whilst never losing sight of the local aspect of our role. We’re leverag-

“ I CAN TELL YOU THAT THE FUTURE HAS NEVER BEEN MORE EXCITING AND BRIGHTER FOR THE RADISSON HOTEL GROUP” — Adrian Oyekanmi, Senior Vice President, Global Strategic Sourcing, Radisson Hotel Group

ing our size and sourcing muscle like never before and we see ourselves

189

very much entwined within the fabric

reflects where we are as a group,” he

of operations.”

says. Any professional will tell you that

One of the most pressing challenges

behind any strong procurement team,

for any procurement team is the

or indeed any successful hotel

delicate balancing act between getting

company, there is also a passionate

value for money and maintaining

team. “The team is everything: they’re

quality. Radisson Hotel Group has

what makes you as a company,”

deftly tackled the challenge, with

enthuses Oyekanmi. In the group’s

Oyekanmi noting that, more than

EMEA headquarters in Brussels,

anything, procurement is about

you’ll find that a range of accents

creating value. “Getting the best deal

– from Spanish and German to English

is about more than just getting the

and American – are always within

cheapest price; it’s about creating

earshot. Oyekanmi argues that this

value for our owners and our brands

multiculturalism is a key asset. “I often

and protecting that value without

pinch myself that I’m in this role

forgetting the sustainability focus that

because I think one of the exciting w w w.suppl yc ha i ndi gi ta l. com

RADISSON HOTELS

$7.697bn System revenue

1972

Year founded

95,000

Approximate number of employees 190

things about working for Radisson Hotel Group is the global nature of the business. We have folks

word. Just as the firm’s international

working in so many different countries,

team has been a key enabler of its

from so many different backgrounds.

five-year plan, Oyekanmi outlines how

Everyone brings a different perspec-

strong partnerships are pivotal in

tive which, for sourcing especially,

today’s ever-global market. “Ensuring

can be a really big advantage.” With

that we are partnering with the right

offices spanning from Cape Town and

vendors who share our vision and ideals,

New Delhi to Oslo and Frankfurt,

who are coming to the table with

Radisson Hotel Group is a business

innovative ideas, who are able to pivot

which is ‘global’ in every sense of the

as we’re pivoting, is critical,” he affirms.

AUGUST 2019

CO MPAN Y FACT S

• Radisson Hotel Group is one of the world’s largest hotel groups with seven distinctive hotel brands and more than 1,400 hotels in operation • More than 95,000 global team members work for the Radisson Hotel Group

191

Now, in the second year of its five-year plan,

changes we’ve seen is that we’re now part of the Jin Jiang International family

Oyekanmi outlines how the firm is

– that’s a family of over 8,000 hotels

“firing on all cylinders” to ensure that

globally. We’re already exploring how

it delivers a truly meaningful stay to its

to best leverage being part of the

guests. “I can tell you that the future

second largest hotel company in

has never been more exciting and

the world and deliver eye-popping

brighter for the Radisson Hotel Group,”

competitive advantage to our owners

he adds. “We’re delivering record-

and hotels. So, stay tuned.”

breaking value to our company, which is really exciting to see, but we’ve only just started to scratch the surface.

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192

Implementing technology in the energy sector WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

CHARLOTTE CLARKE

AUGUST 2019

193

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FLOGAS

Tim Eaton, Head of Logistics and Supply Chain, discusses the importance of procurement and the influence technology has had on operations

A

s a leading energy provider in the UK, Flogas boasts an extensive and diverse range of products and services such as

liquefied petroleum gas (LPG) supply for homes, businesses and vehicles as well as liquefied natural gas (LNG). Considered a market leader in propane enrichment for biomethane, Flogas provides its 194

customers with solutions for an array of situations from heating and cooking to fueling manufacturing processes. For Tim Eaton, Head of Logistics and Supply Chain, what really differentiates Flogas from rivals is its ability to consistently add value to the services it offers. “We pride ourselves on not compromising when it comes to our service across the company,” says Eaton. “It’s important that you add value to our services; whether that be by how we interact with customers, how swiftly we respond to customer demand or how resilient that service level is. Everything that we focus on is making sure that our service level is reliable, resilient, and constantly responding to our customer base.”

Since initially speaking to us a year ago, Flogas has begun to fully embrace digitisation in the LPG market. Eaton discusses the hurdles his firm has AUGUST 2019

195

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FLOGAS

“ I think it’s always important to be aware of what could potentially come around the corner” — Tim Eaton, Head of Logistics and Supply Chain, Flogas

overcome during the past 12 months.

“A year ago, we were looking at a new end-to-end system that was going to replace a number of legacy systems to enable the business to offer a more retail service,” explains Eaton. “We’ve gone down a different route of trying to get the most out of every existing performance area that we can. We’ve begun to tighten up processes, retrain people and reposition them within different focus areas. We’ve looked at the individual systems, taken our own computing systems and looked at everything that it can do for us. Our

196

priority is doing more with the data we have and we’ve redesigned the backend database around what data comes into the business.”

With technology having an ever-increasing impact on all companies’ digital transformation journeys, Eaton points to the importance of leveraging Flogas’ extensive data correctly.

“We have a lot of data and possess vast amounts of information about our exact demand portfolio. We have access to lots of information that can really shape not just how we satisfy demand but also how we’re able to target new business. We’re at a point AUGUST 2019

CLICK TO WATCH : ‘FLOGAS LNG VIDEO’ 197 now that a customer order can be

exported those orders to a scheduling

raised automatically by us based

system. We printed those routes out

on their consumption profile to enable

manually for drivers to deliver and then

the customer to be kept within product.

we entered in what had and hadn’t

That process is now almost completely

delivered which allowed us to invoice

digital from the order generation

people through the ERP,” he explains.

through to invoice.”

“Now, we have an order capture that

Having joined Flogas in January

is largely automated which allows us

2016, Eaton has helped oversee and

to manage the orders on behalf of our

shape his company’s ongoing technol-

customers within our ERP. They go

ogy transformation. “When I first joined

straight into our scheduling package

the company, I inherited a number of

and then are exported onto an on-truck

discrete systems that all did their own

computing system. When we deliver

jobs. We had an ERP system in place

the gas, it’s sent straight through with

that captured orders and then we

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FLOGAS

198

invoice to our customer. If it isn’t

ing the supply chain to ensure his

delivered, it tells the customer that

company’s suppliers are managed

we’ve unfortunately been unable to

correctly. “Procurement has always

deliver that, and sends it straight back

been a vital part of the business,” he

into the pot for rescheduling. If you go

affirms. “We have operations spread

back three years, you could be looking

around the country that control the

at a relatively long period of time from

flow of over 300,000 tonnes of

scheduling the delivery to knowing

product every year. There is a long

whether it’s been delivered. Now, it’s

list of suppliers that make sure that

almost instantaneous.”

the supply chain continues to flow.

Operating with procurement firmly

We’re continuously monitoring

at the forefront of Flogas’ decision-

how we manage our suppliers and

making process, Eaton understands

we conduct a regular review of our

the importance of continually oversee-

top 20 led by our central procurement

AUGUST 2019

team. What we don’t want is people

we get the benefit of their expertise in

that will sell us a product and walk

a number of marketplaces. We need

away. We want people that are going

someone that understands a partner-

to be offering ways to improve our

ship is a two-way street and really

business, and open for us asking them

listens to what we want.” With this in

to improve how they work with our

mind, Flogas has formed alliances with

business. That’s absolutely critical

Lytx and AIUT in a bid to drive mutual

to how we achieve success with any

success. “Lytx helps with data

of our strategic suppliers.”

management and provides a camera

Eaton affirms the importance of

solution to our vehicles. The solution

forming and maintaining a successful

manages the success of our delivery

partnership. “What I’m looking for in any

operation and is activated through

major partners that we have is some-

harsh braking or acceleration to trigger

one to invest in their product indepen-

a camera image of what the driver was

dently. From being partners with them,

doing, and what was going on in the

E XE CU T I VE PRO FI LE

Tim Eaton, Head of Logistics and Supply Chain Tim Eaton is the Head of Logistics for one of Britain’s leading off-grid energy providers. Tim has worked in a number of senior transport and logistics roles across the Retail, Construction and Utilities industries in both operational and change management roles.

He is skilled in Operations Management, People Leadership, Transportation Management, Continuous Improvement, and Contract Management. He is Strong operations professional with a Bachelor of Science (BSc) focused in Business Management from Bradford University School of Management.

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199

FLOGAS

£ 300mn+ Approximate revenue

1984

Year founded

950

200

Approximate number of employees

AUGUST 2019

201

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FLOGAS

“ Procurement has always been a vital part of the business” — Tim Eaton, Head of Logistics and Supply Chain, Flogas

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203 road. This can help avoid accidents,”

an eagerness to consistently move

says Eaton. “We have also worked with

with the latest trends and avoid

our telematics system provider, AIUT,

standing still. “I think it’s always

for a number of years now. They’re very

important to be aware of what could

important because they provide us with

potentially come around the corner,”

all the Big Data, in terms of consumption data on how much customers are using and when. With AIUT’s help, we match that to what the customer uses the gas for and we’re leveraging that data to obtain a more accurate demand forecast.”

By operating with a proactive approach that continues to adapt and change despite the attainment of success, Flogas has demonstrated w w w.suppl yc ha i ndi gi ta l. com

FLOGAS

“ Ask yourself, what might disrupt the business?

I believe that if you’re not looking to continuously improve what you do, somebody else will come in and do it 204 instead” — Tim Eaton, Head of Logistics and Supply Chain, Flogas says Eaton. “Ask yourself, what might disrupt the business? I believe that if you’re not looking to continuously improve what you do, someone else will come in and do it better.” However, Eaton affirms the biggest challenge is convincing employees to embrace change. “Everything can change tomorrow, but as long as we’ve always got the long-term future in mind, people will understand that change AUGUST 2019

is necessary. If we continue to do what we’re currently doing two years from now, we won’t be in the position we’re currently in.”

With the future in mind, Eaton has clear ambitions for how his firm can remain sustainable and successful over the next few years. “We’ve invested around $4.4mn on new vehicles over the last three years to modernise our fleet which enables our footprint to become friendlier environmentally. We’ve also just invested in some natural gas-powered vehicles that will be running on bio energy,” says Eaton. “In two years’ time, we need to have completed the transformation and have a very robust analytic system that is evaluating data in terms of customer demand and is telling us what to do in advance.”

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205

206

PEMEX OPENING THE

MARKET AS PIONEERS IN TRANSPORTATION TECHNOLOGY IN BRAZIL WRIT TEN BY

M ARÍA COBANO-CONDE PRODUCED BY

M ANUEL NAVARRO

AUGUST 2019

207

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P E M E X P R O C U R E M E N T I N T E R N AT I O N A L , I N C ( P P I )

CEO, Salvador Escabedo explains how the procurement company is undergoing a significant transformation towards operational excellence

P

EMEX Procurement International, Inc. (PPI) began operating in 1994 as a company supplying Petróleos Mexicanos (PEMEX), Mexico’s

largest company. PEMEX, a company that since its creation in 1938 has not ceased to adjust itself to the mar208

ket’s changes and to the country’s current political and social climate, formed PPI with the purpose of establishing a closer presence in the international energy industry and developing a direct relationship with key suppliers.

From 2017, PPI began a process of change that aims to reinforce the company’s operations based on three pillars: increasing operations, improving customer service, and strengthening the management of the business, which includes implementing an Integral Compliance System (Compliance). Salvador Escobedo gives us the keys to this transformation that began with his naming as CEO. With a successful career in the financial sector behind him, Escobedo has worked in financial integration projects for the least favored social sectors at the Ministry of Finance and Public Credit and at the Ministry of Social Development of the Mexican Government, as well as at AUGUST 2019

209

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P E M E X P R O C U R E M E N T I N T E R N AT I O N A L , I N C ( P P I )

“ We are 95% above in most of the indicators of the customer satisfaction polls taken by all the companies we work with” 210

— Salvador Escobedo, CEO, PEMEX Procurement International the Mexican Institute of Social Secu-

strategically. This last position was

rity, an institution whose finances he

precisely the one that provided him

helped to recover after finishing his

with the possibility of assuming his

masters in New York. In 2016, he

role at PPI in May 2017, giving him the

joined PEMEX as Head of Procure-

opportunity to execute the strategies

ment and Supply Strategy Coordina-

he implemented from CEPA in 2016.

tion (CEPA), and he was responsible

Since mid-2017, work has been

for creating strategies that elevated

done on the first pillar of change: in-

the efficiency and improving the trans-

creasing operations. When Escobedo

parency in the Company’s hiring pro-

arrived in 2017, PPI’s year’s operations

cesses. Moreover, he promoted the

on account and behalf of PEMEX

development of new technological

and its Subsidiary Production Compa-

tools to simplify the process and the

nies (EPSs), its largest client to date,

elaboration of categories to supply

closed at around $1 billion dollars.

AUGUST 2019

CLICK TO WATCH : ‘PEMEX – IXACHI’

This year, the expectation is to close

plemented by PPI, such as hiring ser-

the year’s operations at $2.5 billion,

vices for shallow-water exploratory

accomplishing an increase of over

wells, which represented savings of

220%.

$298.71 million dollars, and the hiring

Nevertheless, the goal is not only

of services for deep-water explorato-

to grow the year’s operations but also

ry wells, which represented savings

the savings capacity generated for

of $53.74 million dollars, the sum of

PEMEX. In 2016, the savings capacity

around $552 million dollars in gener-

was of approximately $100 million dol-

ated savings is accomplished for

lars. Escobedo estimates that in 2018,

PEMEX through PPI.

numbers close to $200 million will be

The objective of increasing opera-

reached, and that’s only considering

tions as a means to promote revenue

PPI’s natural operations. When also

generation and cost reduction is

considering the special projects im-

established in the Business Plan 2017w w w.suppl yc ha i ndi gi ta l. com

211

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2021. Moreover, PPI’s Board of Direc-

efficiency and the quality of customer

tors approved it. With this aim,

service. In that sense, on the one hand,

Escobedo works on carrying out the

what has been done so far is to devel-

transition into becoming the exclusive

op more contractual partnerships with

international buyer of PEMEX and its

different suppliers in the industry of

EPSs to make an incursion into the

Oil & Gas that support strategic activi-

Mexican energy sector, looking to

ties for PEMEX’s operation. “When

form new partnerships and increasing

I arrived, we had around 50 contractu-

the portfolio of clients: “We would all

al partnerships. Today, we have close

win that way – PEMEX would win as

to 100. These contracts allow us to

well as the new potential clients be-

have terms, conditions, and pre-es-

cause this would help us to consoli-

tablished services with the suppliers”

date volumes and get better discounts.

– amongst which there are leading

PPI would also win because it would

international suppliers of well drilling,

have a greater operative level and

manufacturers of original equipment

additional sources of revenue, which

(turbomachines), as well as the main

would have a positive impact on

companies developing technology

PEMEX given the cost of the services

for the exploration of oil fields, just

provided by PPI would be reduced.”

to mention a few – “and obviously, we

The second aspect Escobedo is

want to create a procurement and

working on to reinforce this PEMEX

supply process that is much faster and

subsidiary company is to improve the

efficient while always ensuring the

“We will increase operations by almost 300% on account and behalf of PEMEX in 2017-2021” — Salvador Escobedo, CEO, PEMEX Procurement International w w w.suppl yc ha i ndi gi ta l. com

213

P E M E X P R O C U R E M E N T I N T E R N AT I O N A L , I N C ( P P I )

best conditions of the market for our clients,” adds Escobedo.

In 2017, an agile work dynamic that has allowed the maximization of PEMEX’s short-term benefits has been achieved. In this administration, Salvador Escobedo was successful in implementing supply strategies

$2bn

Approximate revenue

1994

Year founded

through Acuerdos Referenciales (Referential Agreements). These instruments make the procurement process more efficient and are available at all times to every new supplier with the 214

purpose of motivating competitive-

80

Approximate number of employees

ness and transparency in the purchasing processes and ensuring they provide support to our clients’ needs

agement mainly through implementing

in a timely manner.

an integral Compliance system, the

In addition, polls have been imple-

most complete one of all the subsidi-

mented to measure the degree of cli-

ary companies in the PEMEX group,

ent satisfaction with PEMEX and its

which is conformed by four pillars. The

EPSs receiving services from us. The

first pillar, which implied having the

results have been quite flattering giv-

commitment of all PPI, was obtaining

en that, on average, PPI is above 93%

the ISO 9001 2015 recertification.

in every indicator, which reflects

The second pillar is the creation of an

they’ve done a good job and that their

internal audit area; it’s PPI’s first year

clients are happy with their service.

working with an internal auditor work-

The third pillar of the strategy be-

ing directly with PEMEX’s internal audit

hind PPI’s transformation has been

area. The third pillar is the incorpora-

the strengthening of its business man-

tion of Counselors that are independ-

AUGUST 2019

of Compliance, we’ve implemented and set in motion a very robust and integral system trusting that it is the best system of its kind in all of PEMEX’s subsidiary companies,” Escobedo says.

Moreover, we’ve been successful in strengthening the company through training its staff. To this day, 75% of PPI’s staff in charge of procurement operations on account and behalf of PEMEX is certified in Purchasing and Supply Chain Management by the University of Houston. By the end of 2019, it’s expected that every employee carrying out procurement functions ent to PPI’s Board of Directors, and they will provide the vision of conduct-

at PPI will have this certification.

The three pillars that steered PPI’s

ing business in a wider and more im-

sailboat had a positive impact not only

partial way. The fourth and last pillar is

in terms of the benefits generated for

the design and implementation of an

PEMEX but also on PPI’s finances, as

Internal Control System for which the

Escobedo explains: “When I arrived in

mapping of every process was carried

2017, PPI’s financial statement for the

out. This was done with the purpose of

year 2016 showed that PPI had opera-

identifying every one of the risks and

tional losses of 35.4%. At the close of

controlling them. In addition, KPIs (Key

2017, after carrying out very important

Performance Indicators) were docu-

work in budget cutbacks, optimizing

mented and/or elaborated, and they

the use of resources, and implement-

measure the efficiency of every one of

ing austere measures, we got an oper-

said controls. “From the point of view

ational utility of 10.1%. In addition, the w w w.suppl yc ha i ndi gi ta l. com

215

P E M E X P R O C U R E M E N T I N T E R N AT I O N A L , I N C ( P P I )

COMPANY FACTS

• The company began operating on November 1st, 1994 • In September 2018, PPI signed its first agreement with a company other than PEMEX • PPI was awarded the NBRI Circle of Excellence Award in its 75th edition • PPI expects to close PEMEX’s year’s operations at $3 billion in 2018

216

cash flow increased by 20.5% during

planning to the payment of assets and

that same year. Both results represent

hired services. This technological

important progress from the financial

platform allows PPI to efficiently man-

point of view.”

age the legal instruments derived

Escobedo identifies the use of tech-

from the Contractual Partnerships es-

nology and digitalization as one of the

tablished with international suppliers

pillars that helped PPI to achieve its

from the gas and oil sector.

objectives successfully. In this sense,

The Mexican energy industry expe-

PPI has strengthened its main techno-

rienced difficult times given the fluctu-

logical platform, HITEC (Highly Inte-

ations in the market as a result of the

grated Trade Engine Concept), an ERP

energy reform that took place in Mexi-

(Enterprise Resource Planning) that

co in 2013 and to the current global

allows having complete visibility of the

hydrocarbons crisis. Before the ener-

entire supply chain, which goes from

gy reform, PEMEX was the only com-

AUGUST 2019

Energy Industries Council, Houston, Texas, July 2018

217

pany that could work in the value

part and participate in this process,

chain of oil in Mexico, from doing ex-

assuring Mexico that the exploitation

ploration and exploitation to trans-

of those fields will be carried out more

forming and commercializing crude oil

efficiently. Given how the blocks have

and all its derivatives. Since the ener-

been assigned through tenders, the

gy reform, the market has opened up,

companies with the most participation

which is beneficial given the important

or that generate the most revenue to

level of investment that will take place

the State are the ones that keep the

in the sector.

fields. That ensures that Mexico is the

“Let’s keep in mind that PEMEX is

big winner of these tenders and the

a large company; it’s emblematic and

big winner of the Reform,” mentioned

strong, but it lacks the capacity to ex-

Escobedo. At the international level,

plore every field existing in Mexico. In

big oil companies partner up to divide

this way, other companies can take

the risks and costs of exploration and w w w.suppl yc ha i ndi gi ta l. com

P E M E X P R O C U R E M E N T I N T E R N AT I O N A L , I N C ( P P I )

“ Last year, PEMEX began implementing the most ambitious digitalization project of its last 30 years” — Salvador Escobedo, CEO, PEMEX Procurement International

exploitation in high-risk fields. The energy reform gives PEMEX the capacity to have partners and companies that help divide and diversify those risks and costs, working as an international production company as a result.

In some way, the energy reform allows PPI to have clients beyond PEMEX and also to diversify its catalog of services. On September 7th, an agreement with a provider other

218

From left to right: Humberto Porras, Heriberto Sillas, Salvador Escobedo, Carlos Elizalde, Gabriel Zamora

AUGUST 2019

than PEMEX was signed, which

crisis, the significant decrease

is aligned with the Business Plan

in operations affects PEMEX, but it

established in 2017 and will generate

affects PPI even more. Fortunately,

additional revenue.

this crisis is already being overcome

PPI is also using the current hydro-

– the price of Mexican oil was above

carbons crisis to its favor and become

$72 per barrel all last week, which

a more solid company. The crisis

Escobedo considers “a price that is

helped to determine the new line of

quite good.”

work that looks for new clients and a wider scheme of services. By having PEMEX as its only client, given the energy reform and the crude oil

219

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220

JLL BRINGS SUSTAINABILITY TO JLL BRINGS ITS SUPPLY CHAIN SUSTAINABILITY TO ITS SUPPLY CHAIN WRITTEN BY

SOPHIE CHAPMAN

AUGUST 2019

221

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J L L L ATA M

As sustainable issues become more prominent across all industries, JLL focuses on ethical sourcing and risk management across its supply chain

J

LL’s corporate mission is to deliver exceptional services and innovative solutions for real estate owners, occupi-

ers, investors and developers worldwide,” outlines Juan Carlos Bretschneider, Executive Vice Presi222

dent of JLL Latam. “To achieve this mission, we must establish and maintain an enterprise that will sustain itself over the long term for the benefit of all our stakeholders.”

As a fundamental aspect of JLL’s operations, sustainability permeates all avenues of the real estate services provider and is a vital focus throughout its supply chain. The business aims to ensure that, from end to end, the company’s environmental impact is minimised. Accordingly, the firm has established a global vendor risk management, ethics and compliance (RMEC) program with the purpose of identifying and decreasing potential business and sustainability risks. The RMEC program, which is used both within JLL Latam’s operations as well as by its clients, creates risk profiles based on indicators ranging from service AUGUST 2019

223

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225 scope, geography and government

providers to collect and validate data

connections, to accessibility of data

on some of our high-risk suppliers’

and secure areas and projected spend.

ethical behaviour, labour practices –

“The program directs an enhanced

including modern slavery – and health,

level of due diligence and rigor towards

safety and environmental practices,

high-risk and high-impact suppliers.

in order to make informed decisions

Our suppliers are also routinely

about them,” Bretschneider adds.

screened against multiple databases

In 2017, the company launched a pilot

for sanctions, money laundering and

program of key suppliers using an inde-

regulatory violations prior to engage-

pendent third-party agency to assess

ment for any provision of goods

corporate social responsibility (CSR)

or services,” assures Bretschneider.

initiatives against a set sustainability

“While we directly engage with sup-

criteria. JLL has also demonstrated

pliers to assess risk, we also partner

its commitment to ensuring the suppliers

with third party risk management

within its supply chain are conforming w w w.suppl yc ha i ndi gi ta l. com

J L L L ATA M

to sustainability standards and uphold-

stakeholders strongly identify with

ing the core values of the company

this culture, with our commitment to

with its Synergy Program. The initiative

a viable future and to ‘Building a Better

aims to develop and foster relationships

Tomorrow’,” continues Bretschneider.

with preferred suppliers in order to offer

The strategy targets four key areas:

its clients a broad range of ‘Best in Class’

Clients, People, Workplaces and Com-

goods and services providers to be

munities. “The foundations of ‘Building

suitable for individual needs, which regu-

a Better Tomorrow’ encompass our

larly include sustainable functions.

commitment to the highest standards

The firm introduced its ‘Building

of governance, producing world-class

a Better Tomorrow’ initiative, which

thought leadership, and delivering

aims to enable people to thrive through

smart, forward thinking and value

innovative spaces, buildings and cities.

enhancing solutions for our clients

226 “Our employees, clients and all our other

AUGUST 2019

and ourselves,” he notes. The company

CLICK TO WATCH : ‘AMBITIONS – JLL’ 227 launched the initiative as part of its practice to becoming a good corporate citizen, which JLL defines through good governance and strong integrity.

These traits are not only advantageous for the firm’s business, but also, he adds, “provide tangible financial benefits to shareholders and confidence to the communities in which we operate”.

As the speed and scale of property development around the world continues to accelerate, JLL sees more global opportunities to improve its sustainability functions. However,

“ We partner with third party risk management providers to collect and validate data on some of our high-risk suppliers’ ethical behavior” — Juan Carlos Bretschneider, Vice President Regional, JLL Latam

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J L L L ATA M

“ Today’s good corporate citizenship goes beyond simply offering charitable donations or peripheral sustainability actions like r‘ euse, reduce and recycle’ ” — Juan Carlos Bretschneider, Vice President Regional, JLL Latam

228

E X ECU T I VE P RO FI LE

Juan Carlos Bretschneider Juan Carlos leads the Solutions Development team for Latin America. He has more than 20 years’ experience in corporate real estate services focusing in different service lines and geographically disperse portfolios. He is responsible of generating new income, negotiating contracts, designing and implementing services and complex operations for all of JLL clients in Latin America.

Bretschneider is also responsible for developing marketing strategies to deliver business growth, leading relationships with client’s executive teams and linking them with the corresponding counterparts in other regions in order to ensure the consistency of our services and standardization of our solutions.

AUGUST 2019

with the increased space for innovation comes a rise in pressure for change, with a focus on how businesses can improve operations from the start of their supply chains. “Today’s good corporate citizenship goes beyond simply offering charitable donations or peripheral sustainability actions like ‘reduce, reuse, recycle’. There’s far more scrutiny now of how services are provided, where products are made and the treatment of workers in the supply chain,” he notes.

In order to achieve its sustainability goals, JLL focuses on ‘The Future of Work’ – a strategy that incorporates prioritising people through engagement in order to stretch its vision, harness digitisation, foster an innovative environment and align metrics with ambitions, all the while ensuring flawless execution. The firm also offers its Future of Work advice to clients, aiming to influence them to use sustainable practices, with a great focus on renewable energy projects, green buildings and energy management programs. By encouraging customers to add clean energy into their supply chains, JLL is not only w w w.suppl yc ha i ndi gi ta l. com

229

J L L L ATA M

230 enabling responsible sourcing but

America. This proficiency drives our

preparing its clients for a green future.

ability to advise our clients by identifying

The firm successfully accompanied

feasible opportunities to reduce their

and advised a global client in Latin

carbon footprint and obtain savings.”

America to obtain a LEED Certification

For example, JLL helped a client cre-

for a new building. “This is the same

ate a waste management strategy that

client that years later trusted us to con-

allowed it to transform waste disposal

duct extensive research on governing

cost into an income by inserting it into

laws on renewables in some countries

a circular economy ecosystem. Like-

of our region,” Bretschneider says.

wise, the firm advised a client to develop

“This and other similar projects allowed

a zero waste-to-landfill strategy, which

us to gather substantial expertise in

was deployed and successfully imple-

a wide range of renewable energy

mented within a five-year period.

technologies, such as solar photovoltaic, wind and biomass throughout Latin AUGUST 2019

JLL can also offer advice to its clients regarding occupier behaviour,

231 socio-economic impacts and site

tackle risks, reduce costs and above

location, targeting continuous improve-

all else, embrace the opportunities

ment for its clients’ portfolios. The

of this shift to a more sustainable

firm’s portfolio energy management

world,” Bretschneider explains.

and energy reduction programs were

The company’s solutions are pow-

also introduced as a strategic solution

ered by technology, with services such

to meet the rising demand for more

as Integrated Facilities Management

sustainable operations. The benefits

(IFM) – which focuses on the day-to-

of these offerings extend far beyond

day management of clients – lever-

the reaches of sustainability, with JLL

aging advanced products such as

also enabling its customers to improve

cloud-based work order management

their operational efficiency and drive

and advanced business intelligence

down costs. “At JLL we are convinced

(BI) tools. With technology functioning

that by focusing on this we will better

as the backbone of its service product

position our clients – and ourselves – to

delivery, JLL’s IFM manages approxiw w w.suppl yc ha i ndi gi ta l. com

J L L L ATA M

mately 1.4bn sq ft of its clients’ real estate. The tools the company has to offer ultimately aim to empower clients in their space optimisation assessments.

With the world’s buildings estimated to be responsible for 40% of all greenhouse gas emissions, the company has prioritised the environmental impact created from its industry. Over the past few years, JLL has helped eliminate 757mn kWh – approximately 358,000 metric tons of CO2 – from its clients across the US. This equates to around 232

US$82mn, or removing 77,000 passenger vehicles from the road for an entire year. “In Latin America, our main approach so far has been to focus on energy efficiency initiatives, including improvements on heating, ventilation and air conditioning equipment, along with increased use of efficient lighting, and a focus on operational improvements on how this infrastructure is maintained and utilised to maximise its potential and achieve solid savings and waste reductions,” says Bretschneider.

For JLL, ensuring the correct team is working behind its sustainable supply chain is crucial for innovation.

AUGUST 2019

“We are attracting and retaining the best talent in our industry and providing them with the best spaces and experience as catalysts to accelerate sustainable, responsible growth,” Bretschneider remarks. “A place of work is more than just property: it’s an ecosystem that can help individuals and businesses to achieve their life working ambitions.

Our own people have grown increasingly interested in adding to the cause and being part of a corporate culture that cares for the world and our future.”

As one of the largest commercial

“ We are attracting and retaining the best talent in our industry and providing them with the best spaces and experience as catalysts to accelerate sustainable, responsible growth” — Juan Carlos Bretschneider, Vice President Regional, JLL Latam

real estate companies in the word, JLL is aware of the difference its approach to sustainability can make.

Its achievements are not going unnoticed, placing it on the Fortune’s annual list of the World’s Most Admired Companies and the Ethisphere Institute’s World’s Most Ethical Companies list for the 12th consecutive year. With the standards for ethical sourcing and sustainability within supply chain rising, the company is willing to do what it takes to meet demand.

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233

234

GRUPO BIMBO

A DIGITALLY LED, SUPPLY CHAIN TRANSFORMATION WRITTEN BY

CATHERINE STURMAN

AUGUST 2019

235

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GRUPO BIMBO

With the aim to transform the baking industry and expand its global presence, Grupo Bimbo has transformed its service offerings, with sustainability at the centre

236

B

uilding a global presence across more than 30 countries is no easy feat, particularly for those occupying the competitive

food and beverage industry. Evolving consumer demands, changing government regulations and the emergence of new technologies are disrupting traditional business models, where the need to become increasingly sustainable has impacted the way in which consumers interact and engage with brands.

Undergoing exponential growth in recent years, reaching US$15bn in sales, food and beverage giant Grupo Bimbo’s fresh, appetizing products continue to reach millions of retail outlets. An icon across the United States and Mexico with more than 100 brands under its umbrella, such as Bimbo, Marinela, Arnold and Oroweat, it houses one of the largest direct distribution networks in the world, as

AUGUST 2019

237

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GRUPO BIMBO

“ We strive to provide the right level of service, at the lowest cost, without jeopardizing safety, environmental aspects and quality”

238

— Jordi Rodriguez Pauli, South America Logistics Regional Director, Grupo Bimbo

well as one of the largest fleets in the Americas. Producing more than 13,000 products for its growing customer base, such high demand has placed considerable challenges across its supply chain, where speed, execution and exceptional planning have become increasingly vital.

With sustainability firmly at its core, Grupo Bimbo has sought to ensure high quality products, focusing on a number of key areas as it undergoes a significant transformation. From ethics and compliance, corporate citizenship and responsibility, to governance, leadership and innovation, the business has worked hard to remain the number one choice for consumers worldwide.

Recently recognized as one of the World’s Most Ethical Companies by the Ethisphere Institute, South America Logistics Regional Director, Jordi Rodriguez Pauli has accelerated Grupo Bimbo’s growth in LatAm, where he has sought to enhance its supply chain logistics capabilities and raise the bar to drive the chain’s professionalization.

“I am leading the transformation of our logistics operations in regards to greater visibility, standardization and

AUGUST 2019

CLICK TO WATCH : GRUPO BIMBO – ‘VISIÓN 2020’

technology process planning,” he

space, Rodriguez Pauli states that the

explains. “From Chile, where we’re

daily delivery to retail outlets and satis-

based, we coordinate and work, along

fying increased demand continues to

with the five operations in Chile, Perú,

be the main objective of the business’

Argentina, Uruguay, and Paraguay, to

supply chain operations. “Grupo Bimbo

ensure the accomplishment of Grupo

is a company that’s increasingly global,

Bimbo’s mission in the most effective

and with the purchase of other compa-

way. We’re always striving to provide

nies, the goal business model has been

the right level of service, at the lowest

strengthened,” he adds.

cost, without jeopardizing safety, environmental aspects and quality.”

To cater to evolving consumer preferences within the food and beverage

Following a number of acquisitions, with Chile-based cakes, cookies and brownies manufacturer Alimentos Nutra Bien and Chinese baking comw w w.suppl yc ha i ndi gi ta l. com

239

LIBERA TU POT Obtén los beneficios de tu logística optimizada.

sci-mexico.net

TENCIAL, HOY. ■ Almacenaje Esbelto ■ Ingeniería de CEDIS ■ Optimización de Redes de Distribución hola@sci-mexico.net

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+52.1.222.239.07.79

Nunca tomaría una decisión de negocios tan importante, sin antes simularla

Hay actividades que ya no hacemos sin la asistencia de tecnología. Llegar a una nueva dirección es tarea del sistema de navegación. Nos evita contratiempos, mejora nuestra probabilidad de éxito. Las compañías también están aplicando tecnologías para sustentar decisiones críticas del negocio como el diseño de sus redes de distribución.

Simulación aplicada al diseño y optimización la red de distribución Aunque no es un problema nuevo, el diseño de la red siempre será relevante y complejo. Determinar la mejor ubicación de un CEDIS o calcular los niveles y ubicación del inventario, son aspectos críticos que impactan el costo y la estrategia de servicio. En Supply Chain Institute, hemos comprobado que al simular podemos medir el comportamiento de estos y otros indicadores bajo cambios en la configuración de la red, manteniendo el riesgo al mínimo.

Bienvenidas las ideas disruptivas El exitoso modelo global de una compañía líder en la industria de perecederos consiste en entregar todos los productos del catálogo, diariamente, a todos sus clientes para cumplir la promesa de marca: frescura. Sin embargo, recorrer hasta 2,000 Km desde el CEDIS más cercano con transportes parcialmente llenos, y transferencias frecuentes de extremo a extremo de la región hacen que el modelo estándar resulte financieramente prohibitivo.

En sesiones multidisciplinarias diseñamos los escenarios a simular, aplicando selectivamente (no en general) conceptos como refrigeración, fabricación de lotes más grandes, creación de buffers cerca de la demanda, consolidación de nodos, racionalización de SKUs y optimización de fletes (cubo y frecuencia) mediante la planificación de inventarios. La iteración final muestra el potencial de reducir 22% del costo unitario.

Simular la red de distribución ofrece tres ventajas sobre el enfoque tradicional: 1. El modelo se le entrega al cliente (con capacitación) para probar otros escenarios. 2. El módulo de optimización explora grandes combinaciones de variables para encontrar soluciones óptimas. 3.

Es posible configurar a nivel de procesos para considerar factores operativos claves a hora de implementar, con granularidades imposibles para la programación entera mixta.

Así, la simulación hace las veces de una brújula de negocios, orientando al equipo en la dirección de las ideas de mayor valor movilizándonos a hallar las formas más eficientes de operar. Adiós al desgaste de la prueba y el error.

Autor: Enrique Elízaga Calvillo Director Norteamérica | Supply Chain Institute

Ver artículo completo

pany Mankattan to name a few, Grupo

the trading of products between coun-

Bimbo has extensive plans to further

tries, which will no doubt benefit from

its distribution reach. Adapting its net-

what the company has to offer.

work to reflect the current market and the reality of each country in which it

2020 VISION

operates, for South America, Rodriguez

Most importantly for Grupo Bimbo, its

Pauli confirms that the company is in the

renewable 2020 vision has seen the

process of revising its master footprint.

business become the first across Mex-

Once finalized, the business will seek

ico and Latin America to join the RE100.

to bolster the subsequent creation of

With plans to harness 100% of renew-

international networks which will support

able electrical energy across its US

243

EXECUTIVE BIO

Jordi Rodriguez Pauli With a more than 15 years’ experience in the industr y of industrial and consuming goods, Jordi Rodriguez Pauli began his career at General Electric in manufacturing and planning areas in the factor y near Barcelona in Spain.

Grupo Bimbo was the next step, armed with the passion to work in a Company with a powerful brand and powerful products. After working in different areas linked to manufacturing, planning and S&OP, Rodriguez Pauli moved to Logistics in Bimbo Iberia operation as Logistics Manager leading and transforming the Spanish operation. After four years in the position, he travelled with his family to Chile to start his personal and professional experience there, with the passion to transform and elevate the level of the supply chain in Bimbo South America.

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EMPRESA CHILENA PIONERA Y LÍDER EN LA INDUSTRIA DE RECICLAJE DE ALIMENTOS

EL MUNDO CAMBIÓ

TRANSFORMAMOS ALIMENTOS, GENERANDO UN IMPACTO POSITIVO EN NUESTRO ENTORNO.

Una solución comercial sustentable, a la medida de los requerimientos de cada uno de nuestros clientes.

Recolectamos excedentes de la industria alimentaria de consumo humano, transformándolos en materias primas totalmente nuevas para la elaboración de alimento para consumo animal.

PROTECCIÓN DE MARCA Y DESTRUCCIÓN DE ENVASE: RESGUARDAMOS LA MARCA DE CUALQUIER IMPACTO QUE PUEDA SUFRIR SU REPUTACIÓN. NOS INTEGRAMOS A LA CADENA PRODUCTIVA DEL CLIENTE.

PROTEGEMOS EL MEDIO AMBIENTE Y EVITAMOS SU CONTAMINACIÓN APORTANDO A UN DESARROLLO SUSTENTABLE.

www.eccofeed.cl

“ Change is not easy, but it allows us to be innovative and disruptive, which is something we pursue” — Jordi Rodriguez Pauli, South America Logistics Regional Director, Grupo Bimbo

cling programs in several countries and promotes circular economy practices.

IDENTIFYING OPPORTUNITIES Throughout the transformation of its supply chain capabilities, however, Rodriguez Pauli explains that it is essential for Grupo Bimbo to continue to explore ways to improve the use of resources through data analysis, and gain a greater understanding of valueadded opportunities to drive further growth. Its extensive portfolio, focus on talent and geographic range have

operations by 2020, and then globally

all filtered into its purpose, originally

by 2025, every facet of Grupo Bimbo is

coined by founder Don Lorenzo Ser-

undergoing a significant internal, and

vitje, to be a “sustainable, highly pro-

external transformation. “Through

ductive, and deeply humane company”.

various schemes, such as the Piedra

“The management style has to

Larga Wind Farm in Mexico and Bimbo

change towards big data and will ena-

Solar, installing solar panels in certain

ble us to identify and boost talent. This

work centers, we are on our way to

transformation has begun in South

honoring our commitment ,” states

Latam. We’ve been the first ones, and

Rodriguez.

we, along with the HQ in Mexico, are

“In line with our sustainability efforts,

defining the new way of operating and

we have implemented various actions

the new standards,” observes Rodri-

to take care of our planet, including

guez Pauli. “Like any change, it’s not

a comprehensive waste management

easy, but for our part, we’re very happy

strategy.” Additionally, the business

to contribute first-hand to this transfor-

participates in after-consumption recy-

mation. It allows us to be innovative and w w w.suppl yc ha i ndi gi ta l. com

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GRUPO BIMBO

CLICK TO WATCH : ‘ACCIONES CON LAS QUE ALIMENTAMOS UN MUNDO MEJOR EN 2018’ 248

AUGUST 2019

“ With IoT, we’re linking many of our production lines; through AI, we’re improving our demand plans and forecasts; and Cloud is becoming our platform for digitalizing the whole chain” — Jordi Rodriguez Pauli, South America Logistics Regional Director, Grupo Bimbo

249

disruptive, which is something we pursue.”

However, with such internal disruption, change management has also played a key part in the delivery of exceptional products and services at Grupo Bimbo. Providing further opportunities for professional development and highlighting the importance of collaboration, the business has sought to retain exceptional talent in order to continue on its upward trajectory and take advantage of various trends in the market. w w w.suppl yc ha i ndi gi ta l. com

GRUPO BIMBO

C OMPA N Y FA C T S “In terms of our logistics, we need talent that leads the change and challenges the status quo to keep improving. For that, we have important talent mechanisms of attraction and retention of talent, with many possibilities of international development,” says Rodriguez Pauli.

“We’re also migrating towards a more ideal fleet management model,” he adds. “In the entire region, we’re making an effort to optimize transportation, and in Chile we´re studying options to 250

make it more sustainable and efficient.

The world is changing quickly in terms of access to market, digitalization and information. We are already migrating toward actions that help us compete in these terms.”

It is clear that technology will continue to set the tone and add further value across the supply chain at Grupo Bimbo. By reshaping its distribution networks, investing in exceptional enterprise resource planning (ERP) software and onboarding new digital applications, productivity levels are set to rise and deliver a number of advantages which are transversal and will deliver optimum efficiency. “We must AUGUST 2019

• Grupo Bimbo has built a global presence across more than 30 countries • Grupo Bimbo reached US$15bn in sales in 2018 • Grupo Bimbo houses one of the largest directdistribution networks in the world • Grupo Bimbo has been recognized as one of the World’s Most Ethical Companies by the Ethisphere Institute • Grupo Bimbo is in the process of adapting its network to reflect the reality of each country in which it operates • Grupo Bimbo is the first company across Mexico and Latin America to join the RE100 • Adopting Cloud and an advanced logistics suite, will see the business gain increased traceability and improve decision-making across the organization

be completely open to thinking differently and looking for different ways of distribution. These new applications will help us become a company that’s quicker and more flexible to adapt to the market’s needs,” affirms Rodriguez Pauli.

“Words like AI, IoT and Cloud are a reality at Grupo Bimbo. There’s a lot to do and learn, but we’re moving ahead. With IoT, we’re linking many of our production lines; through AI, we’re improving our demand plans and forecasts; and Cloud is becoming our platform for digitalizing the whole chain.” Successfully adopting Cloud and an advanced logistics suite, along with other tools will also deliver further traceability, enable Grupo Bimbo to modify processes, and will improve decision-making which will positively impact its customers.

Digitalization will remain at the forefront of Grupo Bimbo’s ongoing transformation. Housing a supply chain that is aiming to climb in the Gartner rankings across the world, to the company will look to unlock increased efficiency and drive further value across its processes w w w.suppl yc ha i ndi gi ta l. com

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GRUPO BIMBO

Expertos en paletizado IPLA ha estado desde sus inicios, hace más de 25 años, comprometida en ofrecer a sus clientes seriedad, calidad y un elevado nivel de servicio durante todo el desarrollo del proyecto.

Nuestros compromisos de solución personalizada, cliente como partner estratégico, fiabilidad y seguridad en el diseño e innovación constante, conforman las bases que fundamentan nuestro trabajo y son fiel reflejo de nuestra identidad de marca.

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AU N J GE U S2T0 1290 1 9

1945

Year founded

$15bn Approximate revenue

253

138,000

Approximate number of employees

to ensure its position in the market.

outlets on a daily basis. I think our

The company has expanded very

chain is one of the most exciting ones

quickly, acquiring businesses that were

globally, and every day, we work to

totally new and branched. I’m sure this

improve it and make it more efficient.”

trend will keep on improving Bimbo’s business structure,” notes Rodriguez Pauli. “We have a great supply chain, with great products and relatively short life cycles that reach millions of retail w w w.suppl yc ha i ndi gi ta l. com

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