KPMG - An Exciting Vision of a 'Good Supply Chain function'

An Exciting Vision of a ‘Good Supply Chain Function’ Ravi Dixit, Partner, leading the SAP Supply Chain Consulting Practice at KPMG UK - a lot of our role is to change the language around transformation, and that’s a responsibility we should take on as an advisor.

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KPMG

The Business Profile

AN EXCITING VISION OF A ‘GOOD SUPPLY CHAIN FUNCTION’ Ravi Dixit, Partner, leading the SAP Supply Chain Consulting Practice at KPMG UK, is excited by the prospect of digital supply chain transformations but knows not to expect the same attitude from clients on day one. He and his team have made it their mission to change that feeling towards change as quickly as possible, based on a clear vision, a manageable roadmap to accelerate time to value, and an operating model enabled by best of breed technology ecosystem that complements a clean SAP S/4HANA digital core.

Hi Ravi. Of course, many people will be familiar with KPMG and maybe even with its general approach to the supply chain. But I understand your role is quite specific and a little unique in this context?

That’s right. I joined the firm two years ago as a Partner in the SAP Consulting Practice, to lead SAP Supply Chain capability. SAP is a marketleading product in the supply chain space, and I lead a team of experts who bring industry and functional expertise across the area of digital supply chain.

It’s a broad spectrum but how we define it is, ‘design to

operate’, with SAP being the core enabler of a much broader transformation plan that we put together for clients based on their unique circumstances, starting points and ambitions.

‘Design to operate’?

Please explain…

There are different functions within the digital supply chain realm, but our focus is on the few areas and functions within the design to operate spectrum specifically. So, for instance, integrated business planning (IBP)… digital procurement… digital manufacturing… logistics and transportation…

and, finally, aftermarket, across enterprise asset management, customer services and continuous improvement.

My role, from a client perspective, is to help enterprises undergoing an SAP-enabled digital supply chain transformation, or indeed an enterprise-wide business transformation, as their trusted advisor and transformation partner.

This includes finding the right technology footprint.

However, long before that, it’s about getting their journey started in the right way, defining their vision,

KPMG So, how I advise clients now is very different to how I did 10-15 years ago.

I’ve had to evolve, too.

I’m on that same journey of adapting to what’s up ahead. It’s a continuous evolution, and – vitally – it’s never just the technology.

Ravi Dixit

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KPMG

The Business Profile

So, using that starting point as the beginning of our conversation, what are you typically finding as clients’ default status when it comes to supply chain optimisation? Are they aware of the options available to them, or simply blinded by the task and journey in front of them?

It’s important to discuss, right, because the advancement of technology has accelerated at such a pace that any kind of business transformation or optimisation journey is bound to be scary. So, to say what their default ‘status’ is… I’d go with scared, or at least overwhelmed.

Take enterprise architectures. It used to be a case of build it and you’re done. That mindset has had to change. The journey never ends because technology keeps evolving. The supply chain function needs to be able to evolve to meet the changing expectations

of business, business models, consumers, and the technologies themselves.

There’s only one way to do it right, and that’s to have an adaptive architecture, consisting of a clean digital core to evolve rapidly, cloudenabled for scalability, and an inclusive ecosystem of best of breed applications and microservices.

So, how I advise clients now is very different to how I did 10-15 years ago. I’ve had to evolve, too. I’m on that same journey of adapting to what’s up ahead. It’s a continuous evolution, and – vitally – it’s never just the technology. And that’s the bit that companies often struggle with at the start. It’s almost easier to just focus on the buzzword or a new digital solution. But when we ask whether their team has the capability to adopt these new technologies, how it would disrupt operations, whether it’s actually needed for their purpose, whether it should be a priority, whether it would ensure positive ROI… you can see why it quickly becomes daunting, as they simply don’t have the answers to those questions.

To sum up then, what is the usual level of understanding

around what their, often more-rigid, existing architecture can do, and what they need to add (not always replace) to make it more agile?

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establishing their target operating model, a business case, a roadmap, and highlighting how we can help them transform throughout this journey, from end-to-end.

Honestly, they don’t understand. They are overwhelmed. There’s so much choice with the technologies themselves, let alone everything else.

They feel bombarded and don’t know where to start.

They are also, often fatigued from previous initiatives and efforts, where they didn’t see the value from their investment.

It’s my job to really help them handle that feeling, to wade through the noise, and to also be truthful with them. I don’t say it won’t be challenging – it will be. But I also emphasise that it’s exciting. I point to inefficiencies and bottlenecks and frustrations and show them that they can and will soon be things of the past.

A lot of our role is to change the language around transformation, and that’s a responsibility we should take on as an advisor. Too often, providers almost try to scare clients by telling them all the things that are going wrong, 5

KPMG

The Business Profile

and even how tough the journey of transformation will be if they don’t start it now.

Why do that? Why not get excited about how much their operations will improve, the efficiencies in front of them, the happier team of people, the improved profit margins.

Then, it’s important to emphasise the actual notion of a journey – you don’t just click your fingers and arrive somewhere. It’s phased, it’s manageable, it’s feasible.

We never tell them it will be easy, but there’s no point adding stress and fear to an already overwhelming situation.

We start with the ‘why’, and the business objectives.

Then we look at the ‘what’… what capabilities you need, and in what priority order, to accelerate time to value. And then we attribute a doable roadmap: the ‘how’. It’s not going to be a year, going from lagging behind to completely advanced. You need to build the foundations first in order to work towards a sustainable future.

So, where do you start in this conversation?

Simply, I help them to define their ‘why?’… their BIG ‘why?

This immediately removes the fear of the big technology itself and turns the focus towards the business.

What is your goal? What is your bottleneck? What is your vision? What strategic objective are you looking to realise?

The whole journey and roadmap takes on a new complexion once that clarity is achieved. You’re then working towards something tangible, rather than letting a new digital solution carry you in a direction you don’t need to go.

We are uniquely positioned to help guide this.

It’s usually at this first hurdle that most supply chain transformations fail. They simply fail by not being able to pinpoint the why, what, and how of their transformation.

You spoke about turning trepidation into excitement… I get the sense that this journey also excites you?

Absolutely – the best thing about my job is that it gives

me the opportunity to build personable relationships with clients and to be there for them from start to finish.

The key word I always come back to in this regard is ‘ecosystem’. I have a vision for what a ‘good supply chain function’ should look like, and it comes down to three elements…

One is that capabilities are aligned to strategic objectives.

Two is enabling an operating model to unlock those capabilities. This includes that oft-mentioned amalgamation of people, process and technology; but also includes an element that is usually left out, which is having the right service delivery model as well.

Three is having the right characteristics. This doesn’t just mean resilience or agility, although those are important, but I also mean end-to-end visibility, a sustainability-first mindset, and a customercentric focus.

Interestingly, none of these elements or principles of a proposed ‘transformation’ solely focus on technology?

That’s actually what makes KPMG so attractive as an advisor in this space.

People know they’re not just going to get a sales pitch

for a certain technology.

We’re not guiding people in that sole direction. We, instead, sit right between the industry and the technology, and leverage our multidisciplinary expertise to focus first on making sure your business is ready to actually adopt specific solutions that are ultimately right for you and your objectives.

KPMG

Because technology alone is not the answer. We are uniquely positioned here in that we understand the technologies and the buzzwords and the digital landscape, and we also understand supply chain. We know what makes transformations successful, and also what can lead to failure.

The key word I always come back to in this regard is ‘ecosystem’. I have a vision for what a ‘good supply chain function’ should look like, and it comes down to three elements…

A good time to introduce KPMG Powered Enterprise, then?

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The Business Profile

Precisely – it’s all geared towards functionally transforming and improving the business… the enterprise.

To that end, KPMG Powered enables an end-to-end connected solution across all elements of the operating model: people, process, technology, data & insights, governance & controls, and the service delivery model.

I can honestly say that over the past two years there has been no client who has said ‘oh this typical transformation methodology, all your competitors do the same’.

They all comment on how unique it is to have a businessled transformation that is then technology-enabled, rather than the other way around.

Add the path that we help set out and the handholding we provide throughout, and we can make sure all of those aforementioned elements are being addressed. We ensure the right characteristics and approach, we set out the vision, we help prioritise, we analyse what’s doable and feasible and at what junctures. And we ensure the right delivery model is being deployed at the backend to make sure all of that preparatory work hits its mark.

It seems like perfect timing for clients to partner with you, given SAP’s own transition in the coming years?

Certainly – there is of course this deadline of 2027 for anyone on the older version of SAP to adopt S/4HANA which will automatically augment companies’ operations because AI is embedded within the application.

This means, as part of our service, that we need to provide a level of education around that. In this case, we’re not suggesting a new solution – that solution is already forthcoming and it’s our role to show clients what the benefit of this will be to them, specifically. We can also show how this might remove

the need for an additional investment they were originally planning, and how to complement the transformed solution with additional best of breed applications and microservices as part of their bespoke roadmap.

high-performing team. All this technology is great, and you can invest millions and millions, but if you don’t have the right team, or you have the right team but they’re not using the solutions properly, then it’s all a waste.

You touched upon the workforce side of things earlier. How much face-toface time do you have with clients’ employees? After all, they will ultimately be impacted by the decisions made, the culture shifts, and the technologies implemented…

Developing people and talent is key and it relies on a fundamental mindset shift away from augmenting with technologies first.

A core component of our Powered Enterprise method is change management, to bring stakeholders along on this transformation journey, to ensure adoption of new solutions, and to realise the benefits. People are right at the centre of this, and indeed of the transformation as a whole.

If we’re talking about how best to enable people to carry out their jobs then they have to be involved in that process. I firmly believe, more generally, that chief supply chain officers (CSCOs) should be focusing more on human economics and learning how to create a

KPMG

Within this Powered Enterprise model, we also address things like risk and security, having the right controls in place, the right analytics, KPIs and reporting mechanisms. It’s a very data-driven approach and, critically, a lot of these elements are already preconfigured as part of our core S/4HANA industry leading practice-based system, to accelerate and de-risk the transformation.

Where we come in is in aiding that development, ensuring that everyone implicated in a transformation understands the value of what we’re proposing, what their roles will be in facilitating the change, and having a clear view of what the vision is.

They then feel involved and critical to the process… which they should, because they are. It needs to be something happening with them, not to them.

And presumably, a similar approach has to be applied to partner management and engagement, as these changes and new solutions will also impact them?

Absolutely, and here I can talk about sustainability as a key example.

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KPMG

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Sustainability is integral to a good supply chain function and requires alignment, transparency and shared information between all members of the ecosystem.

The real question is, ‘how to deliver sustainable profit?’.

You have things like Scope 3 which is notoriously difficult to measure and gain alignment on, but sustainability isn’t just environmental. There also needs to be transparency and one source of truth relating to financial stability, ethics, governance, and everything that relates to the long-term future of a company. Just as with employees, partners up and down the chain need to be aware of changes going on in your company. Moreover, their capabilities need to be considered before making those changes.

As we come towards the end, I just wanted to revisit your ‘good supply chain function’ vision, and those three elements that define it. And, especially, to gauge where the SAP link fits into this vision…

Yes, so to summarise, those elements are to have capabilities aligned to

strategic objectives, the right operating and delivery model, and the right characteristics.

The operating model element is inclusive of technologies that enable best practices, and I believe that S/4HANA should be the digital core, then surrounded by a best of breed suite of applications and microservices. This doesn’t suggest a series of siloes, but a completely connected architecture surrounding the SAP focal point.

From there, the role of the cloud, of digital twins, of AI and machine learning (ML), of robotics and automation, of decision making at the edge, are all important and are advantages that can be unlocked. However, only as long as they align with the objectives of the company, are underpinned by fit-for-purpose operations and processes, and are channelled with the right characteristics and delivery model.

And it goes without saying, that data is integral to extract value from all these technological advancements of AI, ML, and digital twins.

People need to be able to

trust data for real-time decision making.

On this capability front and keeping in mind that SAP digital core, we work with some niche partners that really understand the importance of no-code or low-code architectures, and how to keep the digital core clean, while enabling bestof-breed decision making, and complementing what SAP’s Business Technology Platform (BTP) offers.

One of our collaborating partners, Eraze, is doing a lot of innovation in that area at the moment, specialising in asset-intensive industries like oil & gas, energy, industrial manufacturing, etc, who struggle to get the best value from their operational data because there’s simply so much of that data. The Eraze solution integrates with SAP to really ensure that the right insights and decisions are being generated from this vast depth of information feeding through the applications.

Through this partnership, we can ensure data is being handled effectively, but also at the right time. Further, to ensure the right governance

You’ve talked about how KPMG is uniquely positioned between business and technology when it comes to supply chains and business transformations. Could you perhaps rephrase that notion to describe how you feel you’re differentiated in the market, in terms of the ultimate service?

I believe it’s all about value – value that’s specific to each company. We anchor everything around why you’re doing it, understanding fully what that reason is, and then doing everything we can to reach that main objective.

Along the way, this includes organisational change management requirements, it needs a rethink around processes and operating models, it might include cultural shifts to become more agile and resilient… and of course, within that journey, enabling technologies to enhance capabilities will also play their part.

But the main differentiator we can ensure from our unique position is to drive everything towards the value that you specifically want to unlock. It happens with everyone reading off the same page, with full support from both the boardroom and the workforce, personal development opportunities along the way, and a continuous reminder that the journey of transformation is business-led, not just technology-led.

Too often, companies embark on transformations with a ‘let’s just go with it and figure it out’ mindset, which seems so crazy considering the money and risk involved. But it’s the pressure that the pace of technological change is putting on everyone.

We look to take a lot of that pressure off by adding clarity to the situation, by adding a bespoke lens to the picture, and actually turning that desperation into an exciting, methodical, understandable effort.

in need of fixing? If there’s a brand new solution being promoted to you that seems very necessary and exciting but the process is not a priority or a bottleneck for your company, then why would you invest in that first? It’s easy to make these mistakes, but by defining the business case, the ‘why?’, and the priorities, the whole complexion changes. And so too, does the attitude towards that transformation.

KPMG

and security around that data. Again, it’s just another example of us offering the right ecosystem so clients can start building their own.

We want to make the whole journey feel exciting. It helps of course, that I really do! So, there’s already one person in that meeting room on day one with a smile on their face. It’s not usually long before the client begins to enjoy the journey too.

Get in touch We’d love to discuss your needs, so please get in touch at any time.

Ravi Dixit Partner, KPMG UK linkedin.com/in/ravi-dixit-8684472 Email: ravi.dixit@kpmg.co.uk

Absolutely. There’s no point in running quickly if you’re running in the wrong direction…

You might have 1,500 processes but are they all 11

Eraze

We spoke with Mark Raming - founder of Eraze IT - to explore his unique approach and forward-looking vision.

By prioritising quality and customisation, Eraze enables organisations to optimise and future-proof their IT systems.

Whether it is SAP S/4HANA or other large IT infrastructures, Eraze provides flexible solutions designed to deliver results better and faster, while ensuring long-term scalability.

H

i Mark, you have more than a quarter of a century of experience implementing complex IT solutions. What do you encounter?

In recent years, I have seen an increase in the complexity of our customers’ IT landscapes.

Eraze mainly works for large internationally operating organisations that have a multitude of systems that need to be able to exchange data with each other.

Many organisations operate with an outdated, rigid architecture that cannot be easily integrated with newer technologies such as SAP. The days of ‘build and ready’ are truly behind us.

W

hat are some of the biggest challenges you see?

Nowadays, you need adaptive architectures that enable companies to respond quickly to change.

To build a well-functioning IT system, it is crucial for a system architect to understand the customer’s processes. This is the only way to design systems that truly align with specific needs and objectives.

Without this understanding, you risk creating irrelevant or ineffective systems, which can lead to project dissatisfaction and failure.

In short, knowing customer processes thoroughly is not optional, but absolutely crucial to delivering successful and valuable system architecture.

hese are mainly T technological aspects.

What other challenges do you see?

Preparing both the organisation and its employees for the changes brought by new technology is very important.

It is not only about implementing the technology, but also about training and supporting employees so that they can use the new tools effectively.

Organisations sometimes underestimate how much impact new technology has on their teams.

You need the right people who can use and understand this technology.

Thus, change management.

As a system architect, you need to understand the customer’s processes.

Mark Raming - President of Eraze linkedin.com/in/markraming

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Interview

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S

o how do you ensure the perfect fit with your customisation?

With the ‘All systems go’ method. This involves addressing all aspects of the organisation: from the operational side all the way to the technology.

Eraze plays a crucial role in this because our years of experience in the industry mean we know better than anyone else which data is important.

Only if you know how to present this data in a way that users can understand, you can make the necessary decisions.

Because we have opted for model-based software development, we can respond quickly to changing demand.

Without the need for lengthy design processes that entail high costs.

Eraze has developed systems that exactly match our customers’ core business.

The data stored in SAP and the processes driven from SAP are indispensable for this.

Our systems help companies with better insights that enable them to make the right decision faster.

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hat makes the combination of KPMG’s implementation expertise and Eraze’s customisation so powerful?

We work from the same vision. With every new challenge we tackle, we always start with the ‘why’.

Why does the client need this change? And what do they want to achieve with it?

From that perspective, we can point them in the right direction.

and working with niche partners like Eraze makes that possible.

We work with large international organisations and deal with everything from High-Level Architectures to Integrity Management and Health, Safety, and Environment (HSE) solutions.

Our specialisation in Integrity Management and HSE ensures that our customers not only have robust IT systems but also comply with industry regulations and maintain the highest standards of safety and environmental responsibility.

We build ecosystems for clients that help them make better technology choices.

Last year, we launched several studies for the application of AI.

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With the SAP knowledge and experience of KPMG and the perfect-fit customisation from Eraze, we combine the best of both worlds in one offering.

This is now bearing fruit. I know AI is used a lot as a buzz word. But our pilot projects show that AI plays an important role in the development of new systems.

KPMG has been working closely with clients for years to help them get the most out of their SAP systems.

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raze and KPMG? Please, explain.

However, it is a complicated process for these companies to adapt to rapidly changing information needs. This is where partners like Eraze come in.

re there any new developments?

The technology we use is constantly evolving, and so is the architecture that companies use.

Companies need to be able to move with those changes,

inally, is there anything else you would like to share with us?

Maybe after reading this interview, someone will have questions. I would be happy to meet with you to talk about the challenges you face as a manager.

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A Well, a Maintenance Plan, and SAP Maintenance plans are managed in SAP. Our application has a two-way connection with SAP, allowing us to receive updates and send requests.

Luuk Mettes - Senior Software Engineer Eraze

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or one of our customers in the oil and gas industry, we developed an application to manage the integrity of wells.

There are many different types of wells—oil, gas, deep-sea, land, injection, and many more variants. In our application, we classify a well based on various properties as one of these types.

One of the things we also manage is the maintenance plan and maintenance orders for a well.

A maintenance plan can be compared to the regular servicing of a car.

For instance, a car needs a yearly full service and a half-yearly check for smaller issues. A different vehicle, such as a truck, might require different checks or a different schedule.

A maintenance order represents the actual work to be completed; it includes a list of all actions

that need to be taken and checks performed.

In the oil and gas industry, a well may have one or multiple maintenance plans, depending on its type.

Maintenance plans are managed in SAP. Our application has a twoway connection with SAP, allowing us to receive updates and send requests.

For maintenance plans, we receive any updates or new plans created in SAP. Since our application determines the type of well, we are also responsible for creating the maintenance plans.

If a well does not have a maintenance plan in SAP, our system automatically creates a request in SAP to generate one.

A SAP user must approve the request, and once approved, we receive the maintenance plan.

Naturally, this process presents some technical

challenges, such as what happens if the user never approves or rejects the maintenance plan.

To address these, we track the status of the maintenance plan request and manage these scenarios accordingly.

SAP will create a maintenance order for a maintenance plan a certain period before the work needs to be done.

These maintenance orders are also received in our application, where we have a workflow to manage them.

There is one more scenario to consider: in some cases, the schedule might change. For example, if a well has a known issue, it may require more frequent checks to operate safely.

In our application, it is possible to modify certain properties of a maintenance plan, and these changes are automatically synchronized with SAP.

Questions? Feel free to ask.

Conrad Hagemans - CCO linkedin.com/in/hagemans +31 88 804 04 00

Comprehensive Health, Safety, and Environment (HSE) Management We align your organisation with industry regulations and promote operational safety by covering all aspects of health, safety, and environment management from leadership to performance evaluation.

Our holistic approach integrates seamlessly into every operational phase, fostering a safer, more compliant work environment.

Assurance through specialized software Our assurance software reflects the same dedication to quality and compliance seen in the integrity management application we developed for the oil and gas sector.

We provide businesses with continuous monitoring tools that meet industry standards and elevate operations. From HSE performance to structured safety planning, our software facilitates compliance and ongoing improvements for your organisation.

Adaptability with modular components We design modular components that address the unique needs of various asset types, and our platform offers adaptable modules that allow businesses to scale and customise their systems as needed.

This flexibility ensures that safety and compliance can evolve with your requirements. Our technology enables fast, efficient, and tailored solutions that integrate directly with existing platforms, like SAP, to streamline your operations.

www.eraze.com

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