Supply Chain - December 2022

Poor housekeeping threatens brave new cyber world

Too often supply chain is the soft cyber underbelly that hackers target to get at larger companies. Unfortunately, as tech evolves, so do opportunities for hackers.

In this issue of Supply Chain among the many topics we explore in depth is cybersecurity, which is an area of ongoing concern for supply chains the world over.

And with good reason. A recent Accenture study showed that in the US 43% of cyberattacks are aimed at SMEs but that just 14% of such companies are adequately protected. It’s a similar story on both sides of the Atlantic.

Supply vendors are too often the entry point for malware, ransomware or denial of service attacks, which then work their way upstream or downstream to the organisation itself.

And yet as the cybersecurity experts we spoke say, And yet, staying safe is not complicated; much of it is down to sound housekeeping and well-managed communications.

The relentless use of multi-factor authentication is often all it takes to deter cybercriminals, says James Tamblin, Vice Chairman of BlueVoyant, a US company that provides a cloud-based cybersecurity platform.

What’s the point of technology ushering us ever deeper into the realms of science fiction if we allow a lack of old-school housekeeping to undo so much of that great work?

SEAN ASHCROFT

sean.ashcroft@bizclikmedia.com

“The relentless use of multi-factor authentication is often all it takes to deter cybercriminals”

BIG PICTURE

The tradition of Christmas trees can be traced back to early 1800s Germany, a practice that was exported to other European nations as well as the US.

Leading European producers of natural Christmas trees are Germany (18mn), Denmark's (10mn), France (6mn), Belgium (5.2mn) trees, and Great Britain (4.4mn).

In the US, around 40mn trees are sold annually. Most (90%) of the seeds used to grow Christmas trees in Europe are harvested in Georgia. In contrast, artificial Christmas trees are mostly produced in the Pearl River delta area of China.

As far back as August, retailers have been warning customers to order artificial trees early, because of manufacturing problems in China and ongoing port congestion.

It wouldn’t be Christmas without a tree… Germany

Nedra Dixon Managing Director, Accenture

Gavin Harrison UK Sales Director, Element Logic

NUMBERS 38% India 31% Japan 28% Australia 23% China 14 December 2022

McKinsey report on workplace mental health In Asia, burnout rates for workers are higher than the global norm. While one in four employees worldwide experience symptoms of burnout, the figure nears one in three for Asia.

BY THE EDITOR'S CHOICE READ MORE READ MORE

“A key benefit diverse suppliers bring to a supply chain is innovation”

Transport Benchmark report reveals inaction on fossil fuels

A major new logistics’ study published today (October 18) highlights the urgent need for the sector to collaborate to develop and scale sustainable alternatives to fossil fuels.

The World Benchmarking Alliance’s (WBA) Transport Benchmark provides analysis of 90 companies, including 25 airlines, nine rail companies, six road companies, 17 shipping companies, and 33 multimodal companies.

Transport has the highest reliance on fossil fuels of all sectors, with more than 90% of transport energy coming from crude oil-derived products.

Despite this, the report finds just 7% of companies assessed have committed to phasing out use of fossil fuels. Across all companies, 85% have fleets that are incompatible with a lowcarbon future, and the majority fail to disclose any plans for changing this.

The report says that, among the solutions that transport operators need to adopt are alternative fuels, including ammonia, hydrogen, and sustainable aviation fuel.

RFID TECH

Lindsey Mazza, Global Retail Lead, Capgemini Invent, tells Supply Chain Digital that decades-old RFID technology has emerged as a powerful driver of omnichannel retail offerings.

SUPPLIER RELATIONS MANAGEMENT

A recent study shows that market disruption and uncertainty means supplier relationship management has never been more integral to innovative, resilient supply chains. 

SUPPLY CHAIN ACTIVITY

A study from Tradeshift, a key provider of data around digital trade, shows that activity across retail, manufacturing and transport & logistics dropped sharply in Q3, with rising global costs being blamed. 

SUSTAINABLE FUELS

A major new logistics study highlights the urgent need for the sector to collaborate to develop and scale sustainable alternatives to fossil fuels (see lead story, left).

DEC 22

I N N E R S L O S E R S

TIMELINE of the air freight industry The evolution

1910

The first air shipment

The first air freight shipment took to the skies in 1910, when a US department store flew 200Ibs of silk 65 miles from Dayton to Columbus. The Model B plane, invented by the Wright Brothers, raced against an express train to see which transport mode would be quickest. The plane won easily, showing that air freight was a viable shipping option.

1911

Airmail

The potential of air for moving was further highlighted in 1911, when the UK ran a month-long trial to deliver mail by air as part of the Coronation celebrations for King George V. The flights flew 21 miles, from London to Windsor Castle. The experiment lasted for just 16 flights, due to constant severe bad weather.

1939-1945

World War II

Huge strides in air freight were made during the war years, with planes playing an important strategic role as the quickest way to transport troops, weapons and supplies. During WWII, engineers in both the UK and Germany raced to develop the jet propulsion engine technology that would change air travel forever…

Business relies heavily on air freight to move goods quickly around the world. Unlike sea freight, which goes back thousands of years, air freight has a relatively short, yet very colourful, history

1968

Boeing launches the 747

The 747 was the first aircraft wide enough to transport full pallets in its cargo hold. Its final design was offered in three configurations: all passenger, all cargo, and a convertible passenger and freighter model. The freighter was loaded through a hinged nose cone.

1990s

Dawn of the parcel carriers

The idea of planes with the primary purpose of transporting cargo took off in the 90s. This was thanks to the growth of express parcel carriers such as FedEx, DHL and UPS, and also the rise of the internet, which made air freight a much more accessible and reliable prospect for importers and exporters.

Present day

A global marketplace

The Internet went on to open up a global marketplace. Air freight offers a quick and easy way of moving goods, but it comes at a price; shipping by sea is far cheaper. This is why retailers typically choose to fly high-value items (jewellery, for example) by air, and low-value items (toys and household items) by sea.

Anuj Saush

Sustainability maverick changing minds, one conversation at a time

Anuj Saush is a man whose impeccable sustainability credentials helped land a key role at one of the most influential sustainability organisations in the US: The Conference Board (TCB).

TBC is a global, independent business membership and research association working in the public interest. The organisation was founded in 1916 as the National Industrial Conference Board, as a way to cool explosive tensions between labour and management at that time.

But in Europe, TBC is a fairly well-kept secret – something that Belgium-based Saush is striving to change.

Saush is the TCB’s Governance & Sustainability Centre Leader and, as such, works with some of the world’s biggest companies, who are members.

“It’s a place where chartered environmentalists can make an impact,” says Saush, who brings drive and ambition to his role.

Passion for sustainability stems from India

His passion for sustainability comes from his upbringing in India, where power cuts, water

Anuj Saush of the historic sustainability body The C onference Board is an agent for positive change in a challenged world

scarcity, and the need to live within one's means shaped him.

After gaining a Master’s degree in Environmental Policy from the London School of Economics, Saush decided to make it his life’s work to align business and sustainability objectives.

“I’m ambitious, driven, and passionate in equal measure,” he says. “And I’d say I’m also something of a maverick. While others around me have made comfortable careers, I’ve continually sought change.”

In his early career, he took roles in environment consulting.

“This taught me to use my solutionsfocused mindset to help solve clients’ problems,” he says.

When one of his recommendations –to start a new sustainable product line – became a huge revenue generator for a client, he understood the powerful impact that individual conversations can have.

“Consulting naturally led to corporate roles,” he says. “This was a different challenge to the one I left behind, but equally motivating.”

Advocating change in the face of profits is tough

He says that, at times, it has been difficult advocating environmental change in the face of healthy profits but says this remains his driving ambition “for the sake of the companies I work with and also the planet”.

He adds: “It was my desire for change that brought me to TCB. Its mission is to be a trusted source of insight, with a view to helping members to anticipate change, improve their performance, and better serve society. This aligns perfectly with my own mission to create positive change.”

In his work, Saush helps senior executives think through the sustainability changes they need to make to remain relevant in the future.

“EVERY CHALLENGE IS ALSO AN OPPORTUNITY. IT’S ABOUT MAKING THE RIGHT CHOICES”

“I also have a background in behavioural psychology,” he says, “and I believe that every conversation has the power to enable positive change.”

Businesses leaders are facing tough choices

In the context of both digital and climate transition, there are multiple challenges facing business leaders, but Saush remains optimistic for the future.

“The way I see it, every challenge is also an opportunity. It is just about making the right choices. I believe that every business leader needs both a microscope and a pair of binoculars – the microscope to examine and understand the problems, and binoculars to chart the course ahead.”

He concludes: “Sustainability is a team sport. We need everyone to be on board.”

And perhaps a maverick or two to lead the way.

MICHAEL CIATTO

Q. TELL US A LITTLE OF GENPACT AND YOUR ROLE THERE

» Genpact grew out of GE, originating as an internal consultancy. Since those early days in 1997, we’ve grown into an organisation that drives business performance through the integration of data, technology, and AI. Our team comprises strategic consultants and more than 2,000 data scientists and 20,000 technologists. We focus on providing services across the business functions of procurement, supply chain, sales and risk & compliance. As CEO of Supply Chain, I deliver business transformation and operational excellence for 200 companies annually. The team consists of 10,000 domain experts and practitioners.

Q. WHAT’S TODAY’S BIGGEST SUPPLY CHAIN CHALLENGE?

» Despite concerns such as inflation, recession and geopolitical tension, the most common thing I hear from clients is the lack of available talent. The evolution to digital operations, accelerated by COVID-19, has combined with volatility to break operating models. This has pushed workers to unsustainable hours and has changed the type of talent required to excel in a technology enabled, datadriven world.

As well as challenges around talent, our customers are also struggling with: consistency of supplier performance; a disconnect between planning and

execution; poor-quality data; and a lack of the right tools to manage volatility in an agile, yet informed manner.

Q. HOW IMPORTANT IS SUPPLIER RELATIONS MANAGEMENT?

» Very. We’ve doubled down on our supplier relationship management (SRM) offering. COVID-19, geopolitical tensions, labour shortages, port blockages, and regulatory change around ESG have forced companies to rethink relationship structures with suppliers. Managing through transactional procurement processes is no longer viable. Understanding supplier performance –and driving a digitally connected planning solution through multiple tiers of suppliers – is now essential. This provides the visibility required to operate with agility.

Q. WHAT ROLE DOES SUPPLY CHAIN PLANNING HAVE IN TODAY’S WORLD?

» Over the past two years, more companies are extending supply chain planning upstream (SCP) – through customer collaboration and demand shaping –and downstream, via the supplier base. More importantly, the link between Supply SCP and execution has never been more critical. Businesses must know a plan is operationally viable, and that changes in execution are reflected in the plan. Without that connection, faith in the plan can easily be

As CEO of Supply Chain at Genpact,

delivers business transformation and operational excellence for 200 companies annually

eroded. Typically, this is what leads to multiple bespoke systems across the enterprise.

Just like a football team cannot win with eleven players using different playbooks, neither can a company unlock value without a single plan of record.

Q. SHOULD SUPPLY CHAIN BE A C-SUITE ACTIVITY

» Absolutely. The biggest concerns of many CFOs are supply chain-related.

Longstanding underinvestment in supply chain and talent development have left companies less agile, less connected, and less data-informed, despite this being The Digital Age. As such, CFOs struggle to provide street guidance, because of internal opaqueness around supply. There needs to be greater emphasis on supply chain and no more siloed decision making. To empower this shift in decision authority, engagement from the C-suite is not only important to success, but is also vital to survival.

Q. WHO INSPIRES YOU?

» I’ve had countless mentors that have shaped my approach to business and leadership. One of my great inspirations was the late Jon Huntsman, the American businessman, diplomat and politician. As a young professional, I had the privilege of working with him through the Huntsman Cancer Institute. He believed leaders must continuously challenge themselves by taking on uncomfortable tasks – not to develop their own strength, but to empower others to follow their lead. That has always stuck with me.

Q. BEST ADVICE EVER RECEIVED?

» That your heart should always be in your work. Whether it’s academics, athletics, business, family or service, if you are going

to commit to something, then do so fully, because if you don’t, you can never get that time back.

“THE

0 0 0 0 1 1

The accidental supply chain

DIVERSITY CHAMPION

As an organisation, Accenture seeks to help build supply chains that are more inclusive and sustainable. It does so by encouraging a mindset of responsible buying, with the ultimate goal being to generate long-term value for its clients, supplier partners and communities.

Both within and outside of Accenture, one person above all others has taken on the mantle of driving performance and values around a diverse and inclusive supply chain.

She is Nedra Dickson. A Managing Director at Accenture, Dickson leads its global supplier inclusion and sustainability programmes across 22 countries. Her deep expertise in procurement transformation and supplier relationship management has seen her manage an estimated US$2bn in contingent labour spend.

Under her leadership, and with the help of her amazing team, Dickson has elevated Accenture’s supplier diversity spend to approximately $1bn globally, and she is also credited with expanding Accenture’s awardwinning Diverse Supplier Development Program (DSDP).

The programme is currently running in the US, Canada, UK, Ireland, South Africa, India and Australia, and there are plans to further expand its reach.

Dickson says: “Responsible buying allows us to work within our ecosystem to identify, develop and work with smaller, more diverse suppliers with increased agility.

Since falling into a procurement career via technical support, Nedra Dickson has gone on to become a world figure in promoting supply chain diversity

“DSDP reaches 7 countries, allowing us to drive a more-inclusive marketplace in our supply chain, and we also gain access to innovative, responsive and cost-competitive solutions for our clients.”

Under the programme, Accenture also requests that select suppliers provide information and data on how they are reducing their environmental impact “which in turn helps us improve our performance”, as Dickson explains, who has a strong pedigree in procurement transformation and supplier relationship management.

Supplier diversity programme reflects Accenture’s values “The programme is designed to grow and develop diverse businesses, and to support their integration into Accenture’s global supply chain. It’s very difficult for such businesses to navigate large, complex organisations like Accenture.

“So, if you partner a diverse business with an Accenture executive then you can help them peel back the layers of the business and facilitate collaboration.

“This way, a small business can come in and develop a piece of software or advance a platform, and can do so collaboratively so that we’re working together to innovate.”

Dickson adds: “By innovating with this diverse supplier, you're helping them grow their business, which means they begin to employ more people in their community. Then you're seeing an economic impact.

“It's a bit like a tech incubator. We look for diverse technology providers we can partner with, or even go to market with, and help the supplier build upon that technology. But it also includes non-tech businesses that we want to help grow.”

In her 21 years with Accenture, Dickson has acquired a deep level of experience of

working with Fortune 500 companies across multiple industries and a range of disciplines, including: technology consulting, operations management, procurement and sourcing and category management.

And, yet, procurement was never on the radar of this engineering and computer science graduate, who began her Accenture career in tech support.

“I made sure everyone had a laptop, and I helped write some of the software we were using back then,” she says, recalling that time.

Dickson moved on to providing help desk support for clients and, in 2006, was tasked with moving the function to Bangalore, India. “That translated into doing tech work for some of our clients, and that’s when I realised I wanted to be client-facing.

“I didn’t plan to go into procurement,” she admits. “It’s something that happened organically. I was told there was an opening in that area – I knew nothing about

“Many small and diverse businesses looking to engage vast and complex Fortune 500 companies need help from non-profit organisations”

EXECUTIVE BIO

NEDRA DICKSON

INDUSTRY: IT SERVICES AND IT CONSULTING

LOCATION: UNITED STATES

Nedra Dickson is a Managing Director at Accenture, where she leads its global supplier inclusion and sustainability programmes across 21 countries.

Dickson has strong expertise in procurement transformation and supplier relationship management, having managed over US$2bn in contingent labour spend. She also oversees Accenture’s procurement and client opportunities with diverseowned businesses globally.

A key undertaking for Dickson is expanding Accenture’s dedicated global Diverse Supplier Mentoring Program in seven countries. The programme is designed to grow and develop diverse businesses, and to support their integration into Accenture’s global supply chain.

VDart: Teamwork to make the sustainability dream work

VDart reveals how its Accenture partnership helped align its sustainability vision with a roadmap featuring gender parity and sustainable office design

No matter where you go or what you do, it’s impossible to escape the term ‘sustainability’. With climate change advancing at a rate more rapid than had been anticipated, ensuring that we work together to restrict and reduce the planet’s warming is paramount.

Helping organisations to digitally transform in the face of such drastic circumstances is VDart. Based out of Atlanta, Georgia in the US, VDart is, in the words of its Executive Vice President Rohit Bardaiyar, a “leader in digital transformation and technology talent management services”.

“VDart group as a whole is a 3,700-employee company, and we’ve been in business for about 14 years, specialising in talent

management and enterprise modernization services,” establishes Bardaiyar.

Being a company focused on digital transformation, possessing a clear and actionable sustainability framework is essential. Luckily, 2021 was the year that, under Bardaiyar’s leadership, VDart successfully graduated from Accenture’s Diverse Supplier Development Program on Sustainability. A five-year pilot programme, it focused on the adoption of “five major United Nations’ Sustainable Development Goals (SDGs)”. Following this programme, VDart was in a position to develop its sustainability roadmap and form a framework for ESG adoption.

“Accenture played a pivotal role in not just helping us establish our sustainability vision, but also in creating a strategic roadmap for the next five years,” Bardaiyar says. “They

were instrumental in helping us adopt the UN SDGs, even helping us design our newest green offices in India, per Accenture sustainability standards.”

The partnership between VDart and Accenture has included an expansive remit, with focus also being placed on other elements of Environmental, Social, and Governance (ESG) considerations, of which diversity, inclusion and equity (DE&I) is a core part.

“Diversity and inclusion is in VDart’s DNA,” Bardaiyar states. “At the moment, I’m proud to say that VDart 52% of our workforce is made up of women, while 38% of workers in our company are first generation workers, and 32% of our spend is with small, diverse companies. That’s how we think.”. “To us ESG is not a nice to have feature, but a critical business imperative”, he quotes.

procurement, but I was excited to learn how to help clients procure the goods and services they need.”

Dickson’s role sits between strategy and consulting Decades on, Dickson has carved out a unique role for herself at Accenture. “My current role sits within our strategy and consulting practice and is aligned to our supply chain. I help clients build, design, develop and grow their own supplier inclusion and sustainability programmes. I also help them fill gaps in their supply chains using small, diverse businesses.”

Dickson observes that her role is one that is made for procurement “because, typically, it is through procurement that contact with small and diverse businesses is made”.

She adds: “You’re procuring their services

and some of their goods, so this is why so many of these kinds of businesses are aligned to procurement organisations. We work with them not only to procure their services, but to augment and leverage their talent.”

Such talent might be found upstream or downstream in the supply chain. “They might be providing raw materials, they could be procuring your coffee, or procuring people to augment your IT service. There are diverse suppliers in marketing, in HR and in legal. There's so many categories small and diverse businesses cross.”

Dickson says that, although the role is “immensely rewarding”, it also comes with serious challenges, chief among which are misconceptions within Accenture itself around the capacity of small, minorityowned businesses.

“Awareness around why an organisation needs to embrace supplier inclusion and diversity is an ongoing problem,” she says. “The stereotype is that such businesses are too risky, or too small.

Stakeholder education key to building diverse supply chains “There aren’t enough conversations around the subject. We tend to write-off a business because they’re too small, mistakenly thinking that they're unable to scale up as fast. Then there is the size thing: many people look at small companies and see risk. They might doubt for example that the company has adequate insurance should there be any issues.”

Nevertheless, Dickson explains that one of the most important demands of her role is educating her own colleagues. “By educating internal stakeholders in Accenture, you also are educating your clients. Not everyone is aware of the value-add that small and diverse businesses can bring, and it’s my job to remedy that.”

She points out that part of the problem is how easy it is for people to forget that even large multinationals were once small businesses.

“Many of the large tech companies started life as a collection of small businesses that came together, and we want to continue to be at the forefront of this kind of thought leadership,” she says.

Sometimes, the educating Dickson undertakes might be as simple as providing clarity around what diversity and inclusion actually is.

“When you look at inclusion and diversity in the workforce, we’re talking about the volume of women and minorities,” she explains. “But ,with supplier inclusion and diversity, it’s about the number of

businesses that are 51% owned by a minority group. In both instances, the aim is to help underrepresented groups flourish.”

Leveraging small businesses in supply chain makes sense

What’s more, Dickson believes supply chain diversity is also about leveraging small businesses in your supply chain: “With so much disruption in the supply chain, small and diverse-owned businesses can help fill the many gaps.”

But there are far more substantive benefits of a diverse supply chain than plugging gaps, says Dickson, not least of which is innovation.

“Small and diverse businesses are nimble, able to do things faster than large corporations, where there are lots of processes and procedures. As a result, they are able to innovate at pace.”

She also cites a University of Washington study showing that, for every $1mn that a diverse supplier is given, 10 jobs are created in the community. “So you're also looking at economic and social impact when it comes to such businesses.”

“My role is unique, as it sits within our strategy and consulting practice and is aligned to our supply chain”

Today’s supplier ecosystem is very different to that which Dickson first encountered at the start of her procurement journey, with one big change being around technology.

“Around diversity and inclusion, I'm seeing a lot of AI, augmented reality, data science, and sustainability,” says Dickson. “Small businesses have already begun to be very eco-friendly and are able to teach a lot of us large corporations where to begin.”

Dickson is unequivocal about the benefits smaller firms have to offer, but stresses that they need help when approaching large organisations with those benefits and expertise. “Many small and diverse businesses seeking to engage Fortune 500 companies will look for help from non-profit organisations, such as National Minority Supplier Development Council (NMSDC), National LGBT Chamber of Commerce (NGLCC), Women’s Business Enterprise National Council (WBENC),

DisabilityIN (US), Minorities in Supplier Diversity UK (MSDUK), The Canadian Aboriginal and Minority Supplier Council (CAMSC) and WEConnect International. Bodies like these bring suppliers in, certify that they are minority-owned, and then help facilitate introductions with larger corporations.

Countries leading way on supplier diversity ‘having the right conversations’ The NMSDC is based in the US, a country Dickson says is leading the way on diversity and inclusion in the supply chain. Canada and the UK are also strong performers, while South Africa and Australia get a mention in dispatches.

“The South African government has decreed that corporations must work with Black-owned businesses, and it’s the same in Australia with Indigenous-owned businesses,” she says. “There are many countries that are

around why an organisation needs to embrace supplier inclusion and diversity is an ongoing problem”

beginning to see the benefits of leveraging underrepresented communities.”

Dickson believes that the reason these countries are making progress on diverse supplies chains is because “they are bringing the issue to the forefront”. She adds: “They're going in and finding small businesses within underrepresented communities. Then they’re finding talent there and are providing training.

“It’s in any country’s interests to do the same. With all the disruption we’re seeing to workforces at the moment, around staff retention and attraction, it makes good business sense for larger businesses to go into underrepresented communities, for example, to provide training around technical skills.”

Dickson feels Accenture itself has realised that greater flexibility and inclusivity are needed around recruitment.

“A key change we’ve made is to leverage our apprentice programme so that we no longer require entrants to have a four-year university degree. This way, we can train more people and give them the technical skills that are needed to plug the workplace gaps we're seeing.”

“Awareness

FAIL TO PLAN, PLAN TO FAIL

Sales and operations planning is designed to allow businesses to cope with change, but has S&OP itself needed to change in such challenging times?

Sales and operation planning (S&OP) has been around since the early 1990s, which saw the dawn of decision-making processes designed to balance demand and supply, integrate financial planning and operational planning, and link strategic plans with day-to-day operations.

In short, it’s an integrated monthly process that helps businesses manage in the midst of change – and we’ve never before experienced such times of change as these past few years.

But is S&OP itself having to change to meet these challenges?

To help us answer this, and other questions, we turned to Paul Brody (PB), Global Blockchain Business Lead at EY, and Mark Levy (ML), who is Supply Chain Planning Advisory MD at KPMG.

How is digitalisation changing S&OP?

PB: S&OP has been digital for decades. The opportunities on the horizon aren't about going from analogue to digital, but from silos to integration.

Nearly all big companies have digital data, but it’s locked in their own operational silos. The way forward on this is, I believe, blockchains. Blockchain standardises how we represent supply chain assets and also enables visibility to key business partners. For example, a joint initiative with [blockchain protocol] Polygon is enabling EY clients to conduct private transactions, and the [open-source blockchain] Ethereum Mainnet has been pivotal in this process.

Because we don’t re-enter data each time an asset crosses company boundaries, we get

shared data and the right preconditions for really great S&OP.

ML: Our perspective is that, first and foremost, S&OP is a process-first discipline, especially given its cross-functional nature. However, it does benefit enormously from technology. For example, the scenario analysis used to drive alignment and make decisions is much easier with digitisation. This makes it easier to achieve and sustain meaningful S&OP.

What are today’s main S&OP challenges?

PB:The biggest challenge is visibility beyond the four walls of the enterprise. Supply visibility and reliability is by far the biggest cause of S&OP failures, although sometimes it’s also to do with channel execution issues.

Suppliers can be reluctant to share fully their true situation, particularly when they’re managing allocations and constraints, or their own supply shortages. They’re often reluctant to cause anxiety with key clients until they’re sure there will be a short-fall.

ML: S&OP should be about making crossfunctional decisions, but this requires dealing with several hurdles, including: lack of clarity around S&OP’s role; S&OP being overtaken by near-term issues; demand planning not providing quality inputs; and

“I think we’ll see widespread adoption of blockchain usage in supply chain management”

In the pandemic, German multinational consumer goods company Henkel reacted decisively to reimagine its sales and operations planning (S&OP) strategy within days of being hit by the first Covid shockwaves.

“We introduced a new element in our S&OP process, whereby there was daily by-country management of capacity and demand,” says Dirk Holbach, Henkel Chief Supply Chain Officer for Laundry & Home. “Innovative thinking and entrepreneurial spirit are part of our DNA.”

The German chemical and consumer goods company is headquartered in Düsseldorf and employs around 53,000 people. It began life in 1874, as the brainchild of a merchant who had a science obsession.

Henkel has three divisions. Henkel Beauty Care develops, produces and sells hair, body, skin and oral products that are available in 150 countries. Schwarzkopf is one of its noted lines.

Its Adhesives division, meanwhile, is a world leader in adhesives, sealants and coatings. Loctite is one of its household-name brands

And then there is its Laundry & Home Care unit – the cornerstone of the company’s success story. Today, it produces detergents for laundry and dishwashers, surface cleaners, and products for toilet care, as well as for insect control.

“Being able to adjust our capabilities and processes is ingrained in the organisation,” adds Holbach. “It was a muscle that helped us a lot during the pandemic.”

"A key part of our pandemic effort was to empower our teams. We have invested heavily in talent and the tools to support people in their roles. Without the right investment in people development you can have the greatest system, the greatest footprint, or even the greatest technology but, at the end of the day, it will not yield the expected benefits over time.”

Henkel reimagined its S&OP to ride out pandemic

“In the next five years, I see S&OP still being underexploited by many businesses”

MARK LEVY, SUPPLY CHAIN PLANNING

MD, KPMG

scenario planning not being supported within business units, let alone globally.

How can these challenges be overcome?

PB: Supply visibility requires accurate enterprise-resource-planning data, not data that’s massaged or delayed. It also needs an update-once, shared-everywhere model, not back-and-forth phone calls that always result in mangled data.

ML: If the executive team feels the S&OP process is adding value – or will – then challenges can be overcome. Achieving

executive engagement needs: clear focus of the S&OP process, supported by scenario analysis; aligned incentives, to ease decision making; a tactical demand and supply planning process to keep S&OP forwardlooking; and proactive change management and education, to ensure the organisation supports and adopts the new process and ways of working

What does meaningful S&OP collaboration look like?

PB: The best S&OP processes I’ve seen are collaborative problem-solving exercises,

not angry discussions about what is and isn’t true. Companies that are good at S&OP do the background work in advance, and start collaboratively because they’ve already agreed on where the trouble-spots are.

ML: S&OP collaboration is meaningful when the process results in better, nimbler decisions and execution. In S&OP, decisions need to be made with analysis under several demand scenarios. Whether the decision turns out to be either fortunate or unfortunate, it will be clear where and how it was made, and there’s no blame-game to play because the decision-making process was clear.

Is the Great Resignation impacting effective S&OP?

ML: There are few companies that feel they have enough talent to support daily execution, cross-functional processes, and transformations concurrently.

If the S&OP process is operating well and is supported by technology, then companies can sustain their progress. But it’s a different story with companies that are only just beginning to build a meaningful S&OP process.

A primary reason transformational programmes fail – especially technologyenabled programmes – is that they’re not resourced properly. Expecting to pull

“S&OP collaboration is meaningful only when the process results in better, nimbler decisions and execution”

MARK LEVY, SUPPLY CHAIN PLANNING

MD, KPMG

top talent from existing operations and implement a transformation unassisted is risky, especially in current volatile conditions. Without adequate support, your top talent may believe they are being asked to assume career risk on such a project.

Where do you see S&OP being in 5 years' time?

PB: I’m hoping for two key outcomes in the next five years.

First, I think we’ll see widespread adoption of tokenisation and blockchain usage in supply chain management. Firms will use a combination of standardised tokens and customised privacy rules to run their

supply chains on the public Ethereum blockchain. Those companies with truly end-to-end visibility will be positioned to replace inventory with information and do so with far more confidence than ever before.

Second, and more aspirationally, I think we’ll see the beginning of the end of top-down operations planning. Instead of ‘planning’ a supply chain, companies will shift towards guiding self-organised networks. Smart contracts will have the power to automatically reorder supplies, and the purpose of the S&OP process will be to adjust the ecosystem guidelines and strategy, but allow the network to largely run itself.

ML: S&OP has been around for 40 years, and in the next five, I see S&OP still being underexploited by many. S&OP is difficult to sustain without executive engagement and supporting technology.

The increased realisation that S&OP needs to be combined with sales and operations execution (S&OE) will help mature the S&OP process, but, in some cases, it may distract attention from enhancing S&OP itself.

We anticipate:

• Increased focus on central planning to maximise the value of shared resources and trading partners.

• Improved cross-functional support and better aligned incentives

• Increased use of scenario planning and analytics to support decision making

• Increased use of process orchestration –often from a low-code platform

• More mature companies working hard to make ‘true’ integrated business planning work, eliminating duplicate S&OP and financial planning activities

VODAFONE PROCUREMENT COMPANY LEADS WAY ON STRATEGY AND ESG

Vodafone was among the first organisations to see procurement as something more than a mere cost control centre – eleven years before the supply chain shocks of the pandemic prompted organisations the world over to follow suit.

It was back in 2008 that Vodafone established Vodafone Procurement Company (VPC) in Luxembourg, aiming to service the procurement needs of all Vodafone entities across the group. The motive for the move was to bring the company’s scale to bear.

“Prior to VPC, Vodafone’s supplier partners had to negotiate with every single operating company and tell them that they had the best procurement deal on the planet,” says Ninian Wilson, who is both CEO of VPC and also Vodafone Director of Supply Chain Management. “They don't do that anymore. Now, they negotiate once for our suppliers, and we hold the price books for the whole company.”

Today, Ninian Wilson and his team manage a spend of around €24bn across the company, and, as well as marshalling spending with suppliers worldwide, it supports the needs of its operating companies and group functions, in addition to selling procurement services to third parties.

Ninian Wilson, Global Supply Chain Director & CEO of Vodafone Procurement Company, on why problems are an opportunity to create competitive advantage

Innovative Energy Solutions Enable Telcos to Building Green, Low-Carbon Networks

Huawei green energy solutions aim to drive technology revolution for a better, greener future. Together with global customers and partners, by end of Jun 2022 Huawei energy solution has achieved:

Green Energy Generation: 588.5 billion kWh

CO2 Emission Reduction: 290 million tons

Equivalent to Plant: 390 million trees

Learn More

Huawei: Using innovative technology to cut carbon emissions

Huawei is using innovative solutions, including the development of solar panels and energy storage solutions, to help significantly reduce carbon emissions

With the help and support of Huawei, Vodafone has been a pioneer in implementing its net zero strategy.

To support its ambitious goals, Huawei has used a number of innovative solutions, including the development of solar panels and energy storage solutions in a number of countries, including Egypt and South Africa, in a move to significantly reduce Vodafone’s carbon emissions.

“Apart from its European networks achieving 100% electricity supply from renewable sources in 2021, Vodafone is also committed to making all its African networks 100% powered by renewable energy by 2025,” says Huawei’s Senior Vice President, Vincent Pang.

“The current energy crisis in Europe has resulted in sharp increase in electricity bills and energy shortage, which is severely impacting telcos’ operations,” adds Pang. “To overcome the challenge, we have developed innovative solutions at the equipment, site, and network levels to

support telcos reducing energy consumption throughout the life cycles of their networks.”

Huawei has been continuously working with the Carbon Disclosure Project (CDP) and has achieved industry-leading scores for consecutive years in scope 3 carbon emissions: indirect emissions that occur in a company’s value chain. And with the globalisation of supply chains in recent years, Huawei has managed key supply chain issues to support Vodafone’s requirements, maintaining steady operations and remained determined to invest for the future.

To maintain supply chain resilience against pressure and to ensure both business continuity and cost advantages, Huawei works closely with suppliers and partners, Pang says.“We do not rely on any single country or supplier, and all of our key products have alternative sources within our supply chain,” he adds. “Vodafone and Huawei are long-term strategic partners,” Pang concludes. “We are absolutely confident in our ability to continue providing Vodafone with high-quality products and services.”

Learn More

Wind River helping Vodafone deliver on

Wind River discusses its work with Vodafone, to help in its efforts to build Europe’s first commercial Open Radio Access Networks.

Wind River – a global leader in intelligent edge software – is in the vanguard of businesses driving the digital transformation of mission-critical systems and advancing the new intelligent machine economy.

One of the areas where the company is helping usher customers into an everchanging future is telecommunications. “We’re constantly strategising operations for the future,” says Kevin Dallas, Wind River President and CEO.

An important area for Wind River in telecoms is its work with Open RAN (O-RAN). This is a new approach to building mobile networks. Traditional RAN solutions required telecoms operators to work with single suppliers, an approach that works against smaller vendors, who lack the financial muscle to build and manage RAN solutions.

Wind River is embracing O-RAN in its work with telecoms customers, and as a result of its contributions to O-RAN including the contribution of key open-source technology, the company has been selected by customers such as Vodafone for production deployment of 5G.

O-RAN future

“We were thrilled to be selected by Vodafone, to help in its efforts to build Europe’s first commercial O-RAN, which will be one of the largest in the world,” says Dallas. “Vodafone believes this will be the catalyst for other large-scale O-RAN deployments, and spearhead the next wave of digital transformation across Europe.”

But as well as opportunities, new technologies also bring challenges, most of which concern system integration. Vodafone recently published a white paper on the challenges of O-RAN system integration, with a call to action for ecosystem providers to integrate much earlier.

“Instead of buying a single box from a traditional vendor multiple vendors in the ecosystem need to work together,” Dallas explains.

“Distributed networks are complex,” adds Dallas. “This is why our focus is on “providing ease of deployment, increased levels of automation and operational efficiency.”

Learn More »

VPC is also a joint partner (with the Luxembourg government) in Tomorrow Street, a technology incubator with which it shares the same office and whose successes help grow the Vodafone tech ecosystem with scale-up businesses on the leading edge of telecoms tech solutions.

VPC helps Vodafone leverage scale on procurement “The rationale of VPC was strong from the outset,” Ninian Wilson adds. “Not only did it save vendors money because they no longer had as many account managers, but it also leveraged our scale as a company and provided a focal point for the whole of Vodafone.”

The Vodafone Procurement Company’s team operates across four areas, including IT, Networks, Commercial & Services, and Devices. “In all of these we leverage scale

and hands-on expertise,” Ninian Wilson says. “The vision is to create the future of procurement with digital and pioneering practices, connected to experts worldwide.”

“

VPC

not only saves vendors money, but it also leverages our scale as a company”

CEO, VODAFONE PROCUREMENT COMPANY AND GLOBAL SUPPLY CHAIN DIRECTOR OF SUPPLY CHAIN MANAGEMENT

NINIAN WILSON

TITLE: CEO OF VODAFONE PROCUREMENT COMPANY AND GLOBAL SUPPLY CHAIN DIRECTOR OF SUPPLY CHAIN MANAGEMENT

INDUSTRY: TELECOMMUNICATIONS

LOCATION: LUXEMBOURG

Ninian Wilson is CEO of Vodafone Procurement Company and Director of Supply Chain Management. He joined Vodafone on 1 June 2009 as IT procurement director and was appointed to the board of Vodafone Procurement Company in November 2009. From 2014 to 2016 he held the role of SCM Technology Director and was responsible for all technology sourcing in the company, including Networks, IT and new product development. In March 2016, he was appointed director of group SCM and CEO of Vodafone Procurement Company.

MarketPlace brings structural change to the way telecom operators SOURCE & MAINTAIN their networks by putting the CIRCULAR ECONOMY at the core of their business, resulting in efficiencies, cost savings & planet benefits. Our MarketPlace technology moves networks towards NET ZERO.

Shields MarketPlace helps operators fight climate change

Shields CEO Daniel Jones explains how his company’s MarketPlace software platform helps telecom operators of all sizes save money - and the planet

The global telecoms industry faces critical challenges in the fight against climate change and the drive to introduce a more circular economy. Reducing greenhouse gas (GHG) emissions has become a global goal to mitigate climate change, and telecom operators have an important role to play.

Drawing on four decades of experience working in the telecoms sector, UKheadquartered Shields has developed MarketPlace, a cloud-based platform which allows telecom operators to realise financial, environmental and social benefits.

“The telecoms world is now only 8.6 per cent circular,” says Shields CEO Daniel Jones. “The contribution network equipment can make to achieve a circular economy is enormous.”

MarketPlace has been adopted by the leading international telecom operator Vodafone, active in more than 25 local markets. To date, the Shields platform has enabled at least €30 million of CAPEX saving from reusing refurbished equipment and more than €5 million of additional revenue generated from the resale of surplus network equipment. It has also saved more than 7,000 tons of greenhouse gas emissions during the process.

Shields had been offering circular economy services for a range of operators when they were first introduced to Vodafone UK in 1998.

The telecom giant was in the process of modernising network equipment, and Shields formed a relationship with Vodafone UK that enabled them to introduce a 3R principle: 1) optimise Reuse back to Vodafone UK,

2) Resell surplus Vodafone UK assets globally and 3) Recycle the delta with a zero landfill policy. This 3R policy adopted with Vodafone UK is the foundation of MarketPlace which has introduced a fourth ‘R’ and explores Group Reuse after local needs have been catered for.

“MarketPlace creates significant financial savings (avoidance) and generates new revenue streams, whilst at the same time reducing long lead times compared to new equipment. There is a positive business case that also saves the planet. It is a win-win-win for all telecom operators that embrace our MarketPlace solution, which they need in this highly competitive market,” says Jones.

Find out more

Procuring Open Networks

NEC learnings to define the way forward

Addressing the “Openness” within Open RAN

Open RAN provides an exciting opportunity for Operators and Vendors to collaborate in a more harmonious manner. While Operators get an opportunity to pick the sub-system components from different vendors aiming towards efficient technology, cost modelling and operability, vendors see this as an area to enhance their individual products or components, instead of building end-to-end traditional RAN models.

While Open RAN has led to a more open environment and expansion across vendors and ecosystems, it also has certain challenges, such as procurement. There are different models that operators are using to procure networks; the single-vendor model, in which all the risk is managed by a single entity that manages all the risks of multiple eco-system vendors, is one such model. The other model is procuring individual sub-systems, taking the responsibility to stitch the solution together and procuring professional services with limited liability. Each model has different implications on accountability, risk profile and commercial/ contractual conditions. From the seller’s

perspective, a risk premium is often defined to manage unknowns depending on the model. However, this can lead to Open RAN losing out as comparisons are often made with traditional RAN procurement models –a comparison that unfairly de-emphasizes the enormous benefits of Open RAN.

NEC has collaborated closely with Vodafone to contribute in the field of Open RAN; together we will build one of the largest commercial Open RAN networks in the world. The future of Open RAN is promising and challenging at the same time. To allow innovation to foster, we need to move forward steadfastly and with patience. In the short term, an investment led approach needs to be taken that doesn’t measure TCO on Day 0 and that doesn’t default to the vertically integrated solutions the market is accustomed to. This will give time for the benefits of virtualisation and cloudification to be realized, which will be the basis of building next generation networks.

Learn More

Internally, its job is to support Vodafone, and, in so doing, it is also indirectly supporting Vodafone’s consumer and business customers around the world, whether these be large corporates or small companies.

Ninian Wilson says the Vodafone Procurement Company also has external customers to whom it provides procurement services.

“This is through what we call our Partner Markets Division,” he explains, adding that this team sells Vodafone products and services, including third-party procurement and supply chain support. “Our primary role is to make Vodafone successful and to provide it with competitive advantage,” Ninian Wilson goes on to remind us.

Ninian Wilson helps deliver competitive advantage to Vodafone Part of that competitive advantage is ensuring it works with the kind of suppliers who not only help the company mitigate

against supply disruption, but who also perform strongly on ESG requirements.

Before rubber-stamping suppliers to provide Vodafone with products or services, VPC vets them closely, assessing their commitment and performance on diversity and inclusion, the environment, and health and safety in areas where there is risk.

On ESG, Ninian Wilson says VPC has taken “a very strong and forward-looking position”, adding that Vodafone doesn’t just recognise diversity “but celebrates it”.

“We take every opportunity to ensure we create an inclusive environment for all and provide opportunities for thousands more across our supplier base,” he says.

“Diverse suppliers bring a huge positive impact to our businesses and, ultimately, to our customers. This is why we identify partners who embrace diversity in their workforce, and who influence companies in their supply chain to do the same.”

A better digital future for people is Vodafone goal

As a company, Vodafone says it believes that “the promise of a better digital future should be accessible to all” and is committed to “ensuring the more vulnerable are not left behind on that journey”.

“We help support Vodafone in this,” says Ninian Wilson. “We help it use technology to bridge divides in society, and to ensure people can contribute equally and fully to society. Our employees come from 50 nations, and we employ 36,500 women globally, so we understand what it means to have a diverse workforce.”

Prior to Vodafone, Ninian Wilson was Chief Procurement Officer with Cable and Wireless, as well as also being Operations Director at Royal Mail.

doesn’t just recognise diversity, but celebrates it”

How did those challenging positions help shape him professionally?

“I learned a lot in the Cable and Wireless role,” he says. “It was my introduction not only to telecoms, but also to international procurement.” He enjoyed some of the

locations, too. “Most of our operations were in the Caribbean, so it was clearly a good job to have.”

At Royal Mail, Ninian Wilson says he had 158,000 people working with him or for him. “I learned a lot about what it takes to work with a huge workforce. It showed me the pros of my management style, but also the limitations.”

“Vodafone

DIRECTOR OF SUPPLY CHAIN MANAGEMENT

Netcracker Accelerates Digital Transformation

As a key partner of Vodafone Procurement Company, Netcracker is preparing the supply chain for a digital world.

etcracker’s portfolio of digital products is designed to help businesses, like Vodafone Procurement Company, innovate and automate their operations. By tracking data such as inventory levels and client payment history, companies can better understand their operational needs and ensure they are running as efficiently as possible.

Netcracker Digital Platform is made for the transformation to a digital world. With Netcracker Digital Platform, an open, modular digital-native solution, businesses can adapt quickly to changes in the market, stimulate innovation internally and maximize profitability from their investments.

“As we see an increasingly digital society, Netcracker is proud to be on the front lines of development for products that help businesses achieve automation,” said Bob Titus, CTO of Netcracker. “We want to enable Vodafone Procurement Company to fulfill its goals of autonomous procurement and reducing its carbon footprint as it takes the next step of its digital transformation.”

With cutting-edge data and analytics, Netcracker provides Vodafone Procurement Company with a competitive advantage in the marketplace. Netcracker Digital Platform automates every aspect of the operations environment within and across domains with embedded intelligence for zero-touch and self-management.

Netcracker addresses the digital transformation through:

outcomes

agility

collaboration

cloud operations

“In summary, Netcracker Digital Platform provides the tools and practices needed to deliver the digital future,” Titus said. “Our software accelerates business agility and stimulates innovation, enabling our customers to succeed in their automation goals.”

“I like to be on first-name terms with everyone though, obviously, it's difficult to remember everybody's name. But you meet some wonderful people from very diverse backgrounds; I think you bring all that knowledge and those experiences with you when you take on a role like mine at a multinational company like Vodafone.”

Vodafone Procurement Company has seen many changes Ninian Wilson joined Vodafone in June 2009, and he has seen many changes in the years since. “Back then, the procurement team in

“Diverse suppliers bring a huge positive impact to our businesses and, ultimately, to our customers”

Luxembourg numbered 150 people, whereas today it is more than 400 people,” he says. “We've scaled operations in that time, but I also think its role is now more than being about just managing procurement activity. We're also managing physical logistics activity, such as warehousing distribution and supply chain for our network equipment. Obviously, we're also managing risk and building a more-resilient supply chain.”

The focus of VPC may have shifted over the years but the core of the business remains procurement, “making sure we get the right requirements from our

internal clients and that we have the right engagement with our supply partners”, Ninian Wilson says. “The core is the same but everything else around it, in terms of context, has changed.”

When asked what is his biggest challenge currently, Ninian Wilson replies by saying he sees challenges as opportunities, and adds with a wry grin: “Let’s just say there have been far more opportunities over the past three years than I expected.”

He adds: “But certainly I'm hugely proud of the work the team has done to get us through two years of pandemic. I think

“I'm hugely proud of the work the team has done to get us through two years of pandemic”

the pandemic for us has been a defining moment for teamwork, collaboration, and getting things done together. Although, during that time we had never been physically further apart from one another, we had never felt closer. I felt it pooled the entire company together.”

It also changed the way VPC works, with hybrid working now the norm – something Ninian Wilson feels is “good for our people and good for our company”.

The pandemic also saw Vodafone offer staff the ability to work abroad for periods of time “which a number of our employees and colleagues have taken advantage of this year” according to Ninian Wilson, who then states how it has “changed the dynamic of working”. He does admit that, as part of this changing dynamic, hybrid working asks different questions of his managerial style.

“Managing people remotely is different to bumping into them at the coffee machine and having an informal chit chat,” he says. “I do miss that, but we're working hard to make sure we make hybrid working as productive for both the person and the company as possible. We've just about got the balance right but we're still learning.”

The Vodafone Procurement Company’s team has done ‘amazing work’

around chips shortage

As well as his team’s sterling efforts during lockdown, Ninian Wilson says that his team has done “amazing work” battling microchip shortages across Vodafone’s operations, in the face of demand for microprocessors massively outstripping supply.

And supply problems continue apace, with geopolitical turbulence and inflation compounding pandemic woes.

“We've now got the impact of the Ukraine War, and yet more uncertainty in supply chains,” Ninian Wilson says. “I would say the biggest challenge we face today is creating more agile supply chains, which can flex as they meet ongoing challenges.”

“Supply as a sector takes a long time to change and ways of working tend to be quite embedded. So, making them more agile is certainly a challenge, but it also provides us with opportunity if we get it right.”

Asked what he feels VPC’s defining strategy is, Ninian Wilson says that no procurement or supply chain team can have a separate approach to the overriding company strategy.

“As a company, Vodafone’s strategy is to help society digitise, to be a more inclusive employer and to work really hard on sustainability,” he says. “This is a very

purpose-driven approach, and we’re strongly aligned to this, in that we’re adopting and driving a purpose-driven approach as a procurement organisation.”

Achieving this, he says, comes down to “how VPC builds relationships” with key partners and key suppliers “as well as how we transform our physical logistics and supply chain activity, and how we utilise all our great people to bring that strategy to life over the coming years”.

AUTOMATION ROBOTICS THE OF SUSTAINABLE LOGISTICS

With supply chains typically being responsible for 80% of an organisation’s carbon emissions, businesses are feeling the pressure to decarbonise logistics, and technology is the biggest single enabler when it comes to meeting net-zero targets.

Yet, technology is more advanced in some areas than others. Take drones, for example. Back in May, Walmart announced the largest drone-delivery system in the US, in a move designed to give it competitive advantage in last-mile delivery.

The retail giant is seeking to expand drone deliveries to six US states. Up to 4 million

AUTOMATION ROBOTICS THE FUTURE SUSTAINABLE LOGISTICS

households will be able to take delivery of groceries and supplies by remote-controlled drones by the end of the year, according to Walmart.

The company says it will charge $3.99 per drone delivery, with a weight limit of up to 10lb, and will apply the safety principle: ‘If it fits safely, it flies’.

According to David Guggina, Senior VP of Supply Chain, Innovation & Automation at Walmart, participating stores will house a drone delivery hub, complete with a team of certified pilots “that operate within Federal Aviation Administration (FAA) guidelines and safely manage flight operations for deliveries”.

He adds: “Once a customer places an order, the item is fulfilled from the store, packaged, loaded into the drone and delivered right to their yard using a cable that gently lowers the package.”

Last-mile drone tech ‘not ready for widespread use’

But Walmart has not not specified how, exactly, its vast drone fleet will negotiate airspace concerns, nor how the machines will be powered.

Brandon Rael, Business Transformation Leader at Capgemini Invent says that although automation is the future of last-mile, drone tech is not ready for widespread adoption.

“Robotics, automation, and eventually drones, will be the new norm for supply chain fulfilment capabilities,” he says. “Automation and robotics will be an absolute necessity to reduce cost–to-serve, and to cut inefficiencies and optimise processes.”

But Rael adds that, for widespread adoption, drone tech needs to improve: “The drone delivery model requires more work. It’s built around supply chain fulfilment innovation but it will require a crawl-walkrun strategy to implement safely, with the right regulations and policies.

“BUSINESSES ARE LOOKING TO WAREHOUSE OPERATIONS FOR OPPORTUNITIES TO REDUCE CARBON EMISSIONS IN THE SUPPLY CHAIN”

He goes on to explain that, as drones become more advanced, socially accepted and, most importantly, safe, “we can expect the drone delivery model to scale-up and for companies to invest in this space”.

Walmart drone use ‘is exciting journey’, says Guggina But for his part, Guggina describes Walmart’s drone initiative as “an exciting journey”.

“After completing hundreds of deliveries within a matter of months across our existing DroneUp hubs, we’ve seen first hand how drones can offer customers a practical solution for getting certain items, fast. More importantly, we’ve seen a positive response from customers that have used the service. We thought customers would use the service for emergency items but are finding they in fact use it for its sheer convenience, like a quick fix for a weeknight meal.”

As Rael pointed out, technology is more advanced in the areas of robotics and automation than it is for drones, so

Warehouse technology timeline: from 1901 to the present

1901

Steel conveyor belt invented

The Swedish engineering company Sandvik invented the steel conveyor belt at the turn of the last century. Belt conveyors proved to be durable and reliable, becoming a fixture in automated distribution and warehousing, massively increasing productivity.

1917

The forklift truck

Australia-based Clark Equipment Company is credited with creating the first forklift truck way back in 1917. They were known as 'Clark Tructractors' and resembled a tractor, rather than what we see today. Until the 1950s, warehouses were full of forklifts, with goods typically stored at ground level in huge buildings.

1950s

ASRS invented

The first Automated Storage and Retrieval System (ASRS) was designed and built by German heavy equipment manufacturer Demag, whose system consisted of racking mounted from the ceiling. ASRSs at this time were giant cranes that traversed large columns of shelves to store and retrieve raw materials.

“MICRO FULFILMENT CENTRES, ALSO KNOWN AS DARK WAREHOUSES, CAN QUITE LITERALLY BE RUN WITH NO LIGHTING”

1962

First commercial ARSR

The first ARSR machine went into operation in 1962, installed at a Bertelsmann bookclub warehouse in Germany. Though it was manually controlled, it did offer a semblance of automation, via punch-card control..

1980s

Computer controlled ARSRs

Computer and IT solutions expanded significantly in the 1980s, alongside softwarecontrolled warehouse technologies. Sensors, magnets and lasers were brought in to measure distance and position with never-before-seen precision.

2000+

AGVs/AMRs

Also called an autonomous mobile robot (AMR), the automated guided vehicle (AGV) is a portable robot that follows along marked lines or wires on the floor, or uses radio waves, vision cameras, magnets, or lasers for navigation. They are used to transport heavy materials around warehouses and factories.

its adoption in warehouse environments is long standing, and it’s at a stage where solutions can be adopted at scale.

Warehouse automation goes back 120 years

Warehouse automation goes back as far as 120 years, to the first conveyors, while automated storage and retrieval systems were first deployed in the 1950s.

But with robotics beginning to feature more heavily than ever, many of today’s warehouses are reminiscent of something from a sci-fi film. What’s more, the pace of adoption is helping businesses control supply chain carbon emissions more effectively.

Gavin Harrison, UK Sales Director with warehouse automation specialist,

demand for faster online order fulfilment – that’s prompting companies to invest in warehouse automation technologies.

He points out that these same companies, along with their customers, are also increasingly concerned about their carbon footprint and sustainability practices.

“This combination of factors has led to businesses looking to warehouse operations for opportunities to reduce carbon emissions within the supply chain,” Harrison says. “Warehouses are a natural place to start, because around 90% of them across the world are still reliant on manual processes, which is an inefficient use of both space and energy.”

“The more a business relies on humans to run

Warehouse robotics can do without heat and light More people, Harrison adds, also makes for less efficient workspaces “because humans can’t work effectively with extremely dense storage systems in the same way warehouse robots can”.

He points out that buying more warehouses, or commissioning expensive new facilities to be built, is neither sustainable nor necessary when flexible warehouse-automation systems can help businesses maximise existing space.

“Many warehouse automation systems help businesses save significantly on energy bills, while also avoiding unnecessary carbon emissions,” Harrison says. “For example, autostore robots use rechargeable batteries and self-generate much of the energy they require.”

vacuum cleaner. Harrison also states that the use of flexible automated warehouse storageand-retrieval systems allows businesses to set up warehouse operations in nontraditional environments – such as at the back of an existing high-street store – without compromising on storage density. Such micro fulfilment centres, also known as ‘dark warehouses’, can quite literally be run with no lighting.

“Some warehouse robots can operate in the dark without requiring heating, both of which obviously help reduce energy usage.”

He concludes: “The other key benefit of opening micro fulfilment centres is that they can be situated in urban centres, much closer to the end customer. This makes last-mile delivery less dependent on road haulage, as

Reinhard Plaza Bartsch, Head of Supply Chain Transformation, on overhauling Vodafone’s global planning and logistics

Building on a successful digital procurement transformation that has made many headlines over the years and has become a reference point in the procurement industry, Vodafone is now working on a radical overhaul of its physical supply chain operations for network equipment.

Reinhard Plaza Bartsch leads Vodafone’s global network logistics transformation, a sizeable change programme that will reshape the way Vodafone manages demand and supply planning, as well as the logistics operations for its network infrastructure business globally. He is no stranger to big, company-wide transformations. Having been in supply chain roles at Vodafone for the past 15 years, he has been spearheading Vodafone’s digital procurement transformation, establishing the company’s procurement operations as a world-class industrial benchmark.

“The transformation of our planning and physical supply chain is just the next natural step for us in Vodafone. Building an ecosystem where we work with our partners to create end to end visibility and control of hardware deliveries and inventories across our whole infrastructure supply chain. This will enable us to proactively mitigate risk of disruption while allowing us to make much faster, accurate and cost-effective decisions to steer supply to support the growth of our network,” explains Plaza Bartsch, adding that he aims to underpin this transformation by blending the best of technology with people. “We will follow a ‘human-centric’ approach when embedding digital in the way we run our business”.

EXECUTIVE BIO

REINHARD PLAZA BARTSCH TITLE: HEAD OF SUPPLY CHAIN/GLOBAL LOGISTICS TRANSFORMATION LOCATION: LUXEMBOURG

Reinhard is currently Head of Supply Chain at Vodafone, and is transforming its entire supply chain planning and logistics operations globally. He has also been spearheading the digital transformation of Vodafone’s supply chain by accelerating innovation and adoption of new technologies, driving operational excellent performance and unlocking new sources of value for the function. His career spans across a number of different industries with roles ranging from managing large scale

logistics operations to leading complex transformation programmes along the supply chain. At Vodafone, Reinhard has been pivotal in the establishment and operation of the Vodafone Procurement Company and the transformation of the global supply chain (which now oversees Vodafone’s €24 billion global spend). He has successfully delivered major transformation programmes that have delivered multimillion Euro in benefits for Vodafone and have also gained external recognition Reinhard is passionate about the role that technology can play in shaping the future of procurement, and is actively engaged in customer advisory boards for a number of procurement technology solution providers.

“If I look across industries – market conditions are rapidly changing. Supply chains around the world are being constantly challenged in the face of more frequent risk of disruption. Therefore the ability to control and steer your physical supply chain has never been more important and has become in many industries a real competitive advantage.”

Running a world-class supply chain “Vodafone’s physical supply chain operations have been quite disparate over the years. We are now aiming to consolidate, standardise and digitise things end to end to allow Vodafone to have full visibility and control of kit moving across our supply chain,” says Plaza Bartsch. “We are aiming for full traceability and control, being able to see equipment leaving the manufacturing plant, arriving at our warehouses and up to the point of deployment. Enabling us also to redirect wherever we need to in a seamless fashion.”

Amid challenges in global supply chains, many companies have recognised the importance of controlling the flow of critical products or infrastructure to run their businesses.

Plaza Bartsch views Vodafone’s planning and logistics transformation roadmap as an essential part of managing these challenges. Over the years, Vodafone – and many other

“More agile and self-stabilising supply chains by blending human innovation and the best that technology can offer”

MarketPlace brings structural change to the way telecom operators

SOURCE & MAINTAIN their networks by putting the CIRCULAR ECONOMY at the core of their business, resulting in efficiencies, cost savings & planet benefits. Our MarketPlace technology moves networks towards NET ZERO.

Shields MarketPlace helps operators fight climate change

The global telecoms industry faces critical challenges in the fight against climate change and the drive to introduce a more circular economy. Reducing greenhouse gas (GHG) emissions has become a global goal to mitigate climate change, and telecom operators have an important role to play.

Drawing on four decades of experience working in the telecoms sector, UKheadquartered Shields has developed MarketPlace, a cloud-based platform which allows telecom operators to realise financial, environmental and social benefits.

“The telecoms world is now only 8.6 per cent circular,” says Shields CEO Daniel Jones. “The contribution network equipment can make to achieve a circular economy is enormous.”

MarketPlace has been adopted by the leading international telecom operator Vodafone, active in more than 25 local markets. To date, the Shields platform has enabled at least €30 million of CAPEX saving from reusing refurbished equipment and more than €5 million of additional revenue generated from the resale of surplus network equipment. It has also saved more than 7,000 tons of greenhouse gas emissions during the process.

Shields had been offering circular economy services for a range of operators when they were first introduced to Vodafone UK in 1998. The telecom giant was in the process of modernising network equipment, and Shields formed a relationship with Vodafone UK that enabled them to introduce a 3R principle: 1) optimise Reuse back to Vodafone UK,

2) Resell surplus Vodafone UK assets globally and 3) Recycle the delta with a zero landfill policy. This 3R policy adopted with Vodafone UK is the foundation of MarketPlace which has introduced a fourth ‘R’ and explores Group Reuse after local needs have been catered for.

“MarketPlace creates significant financial savings (avoidance) and generates new revenue streams, whilst at the same time reducing long lead times compared to new equipment. There is a positive business case that also saves the planet. It is a win-win-win for all telecom operators that embrace our MarketPlace solution, which they need in this highly competitive market,” says Jones.

Find out more

businesses – have been regaining control on the physical flow of hardware required to run their businesses.

As part of its global logistics strategy, Vodafone is approaching its transformation in three phases.

“In the past we had multiple disparate logistics’ teams in the different markets in which we operate,” explains Plaza Bartsch. “The first part of our transformation has been quite simple: bringing everyone under one new vertical in our supply chain organisation. The key for us has been to align all our logistics teams towards a common operating model. Focusing on driving consistency in the way we run our logistics operations and warehouses so that no matter where you are in the world, our operations feel and look the same.”

Vodafone has also deployed a global network stock and warehouse management system, which provides full transparency to over 16 million pieces of equipment held by Vodafone across all warehouses world-wide.

“Implementing a common operating model and logistics system stack is foundational but also critical to enable us to drive our transformation at pace,” says Plaza Bartsch

Vodafone started with the first part of its logistics transformation back in 2019 and is continuously improving its physical logistics to optimise its inventory level, ageing and minimising obsolescence.

Part two of Vodafone’s logistics’ strategy is to transform how it plans its demand and supply for network equipment.

“Between now and 2024 we're actually deploying a new demand-and-supply planning model within Vodafone. We have started in Europe this year and have gone live in three of our big markets. We are now extending into the rest of Europe and will then finally extend this capability next year into Africa,” says Plaza Bartsch.

Vodafone is complementing this business transformation with the deployment of an Integrated Business Planning platform, that will enable Vodafone to systematically balance its demand and supply plans.

“Strengthening our supply chain planning function through new technology and capabilities will not only enable us to work closer with our partners in managing our supply chain, but will also enable us to optimise our inventory levels, and give us more flexibility to steer supply to where we need it. In addition, it will also enable us to drive the re-use of our assets across our network.”

As part of its logistics strategy and broader purpose agenda, Vodafone has established a so-called Asset Marketplace, which enables Vodafone’s operating companies to re-use equipment across different markets. Therefore, extending the life of the equipment procured which helps the company to save money, but more importantly, contributes to a circular economy by ensuring that used equipment is only disposed when it cannot be used anywhere across the group (as part of its commitment to the planet, Vodafone also ensure that any obsolete equipment is being ethically disposed).

“The third step in our transformation is the creation of regional logistics hubs. This will help us to optimise our logistics network and build further resilience in our supply chain,” says Plaza Bartsch. “We want to optimise our logistics network and need to make sure we have warehouses in the most optimal location and with the required size. The nature of our business will of course require us to keep some stock close to the markets, therefore it is key for us to leverage technology to orchestrate the logistics network.”

Vodafone has already announced at its Arch event earlier this year that it is going to establish its Pan-European Hub to run all of its physical

Making an impact that matters: The future of Telco supply chain

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Delivering the Next Generation of Supply Chain

Why did you select Deloitte to partner with VPC on your logistics journey?

Reinhard Plaza-Bartsch: We are embarking on a complex transformation around how we do business within our markets, our supply base and VPC itself. This requires a new way of thinking, and we wanted a partner who could challenge us to ensure the results were ambitious but also practical. Deloitte was the only company that could bring Supply chain expertise, Pan-European analytics, tax specialists, technology implementation and transformation skills together in a single package. Deloitte were also the most diverse team we spoke to.

How was the programme structured and what capabilities were needed?

Anu Sekhri: VPC had a very clear vision of logistics that meant delivering against an ambitious triple bottom line of Sustainability, Operating Cost and Working Capital. This required VPC to control the end-to-end supply chain rather than simply being a buyer of network equipment. In response Deloitte mobilised three teams:

y A technology team that implemented an end-to-end leading forecasting and supply chain planning software solution

y A supply chain team that optimised the location of the new regional distribution hub and completed the warehouse design

y A programme management team that developed the overall business case and a three-year roadmap for delivery.

What are some of the key takeaways from the project so far?

Reinhard Plaza-Bartsch: Momentum is critical, keeping a successful programme moving forward means no pauses in delivery. The cost of delay is typically higher than the cost of optimising the solution.

Anu Sekhri: Sustainability is also at the heart of this transformation. At Deloitte we are proud to support changes to supply chain infrastructure and operations that have sustainability considerations at the core. This really is a ground-breaking supply chain transformation within the Telco industry and one that I’m pleased to be a part of.

supply chain activities for Europe out of Luxembourg.

“We’re building what we want to be the greenest logistics operation in Europe as well as the most automated warehouse leveraging 5G to automate activities in the warehouse,” says Plaza Bartsch.

Vodafone currently employs around 400 people in Luxembourg, a country where it has had a presence for 22 years. Its local activities include procurement, roaming, financing and digital capability operations.

But how does Vodafone measure the success of its transformation? For Plaza Bartsch, it is all about driving operational excellence in the way Vodafone runs planning and logistics. “Whether it is supporting faster deployment of the network by securing on-time and in-full delivery of materials, driving inventory levels down, minimising the risk of obsolescence and maximising the return of capital invested by extending the lifecycle of assets through re-use, we want to be cost-effective and world-class… and we want to get there fast,” says Plaza Bartsch.

Blending technology with human innovation

The speed at which technology develops has been generally doubling every two years since the 1960s. This has not been different in the supply chain space, and many businesses have been striving to keep up with technological advancement without leaving customers or employee’s behind.

“This is not different for our transformation, we rely on new platforms and technology that will augment the capability of our people and enable them to do more, better and faster. No matter whether it is in planning and coordinating supply, automating warehouse operations or running simulations to mitigate supply chain risk, technology is and will be everywhere.” says Plaza Bartsch.

“Implementing these new systems in a timely fashion, ensuring that they deliver the right user experience is paramount in this change.”

Increasing supply chain visibility

For Vodafone’s logistics team, the next 12 to 18 months will involve increasing visibility across the supply chain and ensuring that change in ways of working gets well embedded in the organisation.

“This is a significant change programme and we are keen to get everyone on board. We want to make this change live and fluid for our people and ensure that everyone can personally grow as a result of this transformation,” says Plaza Bartsch. “I see already with excitement how we start running demand and supply planning reviews.

Our key supply partners are also actively engaging and becoming part of this new ecosystem.” says Plaza Bartsch.

Vodafone’s network suppliers will also benefit from this transformation, they will gain much better visibility across Vodafone’s supply plans and will be able feed into Vodafone planning system to ensure any supply risks are proactively mitigated.

“Developing into roles that have much closer interaction with our partners and are driving robust and mature supply planning for Vodafone is a great development opportunity for our team. I think everyone in our logistics team is as excited as I am about the future.” says Plaza Bartsch.

Plaza Bartsch’s perspective on future industry trends include the rising need for a more agile and self-stabilising supply chain.

He believes this is only going to be possible by blending human innovation and the best that technology can offer.

As part of its transformation Plaza Bartsch aims to develop a control tower to connect all of its physical supply chain and manage the end-to-end flow of goods from manufacturing down to final installation. In addition, he foresees already in his plans to invest in a digital twin for the supply chain in order to model scenarios for the future, and render Vodafone more resilient to supply chain risks.

“It is quite an exciting time to be with Vodafone and working to shape the future of our supply chain,” says Plaza Bartsch.

SUPPLIER DIVERSIT HOW TO MOVE FORWARD ON

Multiple waves of hardhitting supply chain disruptions have characterised the past few years, and procurement teams across the board are having to be increasingly flexible, creative, and dynamic in the way they work with their suppliers.

Long gone are the days when simply finding the right product, service, or component – at the right price and with the required quality – was enough. But no longer. In today’s world, Environmental, Social, and Governance (ESG) compliance is also a headline requirement.

Increasingly, companies must demonstrate they’re guided by ESG principles. This includes every link in their

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supply chain, which is where supplier diversity becomes so important.

Are my suppliers applying circular economy principles? Are they using sustainable and fair production methods (as well as remaining within budget)? Are they owned, operated, and controlled by people traditionally underrepresented or underserved?

These are the kind of questions organisations must be able to answer, so we asked two supply chain professionals to give their top five strategies for companies looking to grow supplier diversity.

First of these experts is Roger Blumberg, Senior VP of Global Marketing at Scoutbee, an AI-driven platform designed to give businesses deep insights into their supply base. The following are Blumberg’s five tips:

Gain executive support

Every successful supplier diversity programme was born out of a comprehensive, strategic plan supported by executive leadership. Creating this framework up front will help you align your organisation behind common objectives and empower the growth of your supplier diversity programme.

But where should you begin? Your supplier diversity objectives and goals should be approved and supported at the executive level to earn overall organisational buy-in.

Be specific

Diversity means a lot of things to a lot of people. Failing to define your programme’s

“Create a plan for how the comms process will evolve as your diverse supplier network expands”

Lack of data ‘is barrier to supplier diversity’

A survey from procurement platform

Jaggaer and supplier data specialist Tealbook found that a lack of data and discoverability options remain the biggest barriers to supplier diversity initiatives

The survey found that 70% of organisations say supplier diversity is a priority but most have yet to outline concrete plans – or have only just started on their journey towards a more inclusive and equitable supply chain.

Discoverability has long been an issue for advocates of supplier diversity. A third of respondents said they struggle to identify suppliers that are both owned or managed by women or those from minority groups, while also meeting stringent procurement criteria.

A further 27% said quality data and insights on supplier diversity is lacking, while 17% say they are unable to verify supplier diversity claims. One in 10 said they simply ‘didn’t know where to start’.

The survey also revealed a chasm between the objectives of organisations in North America and Europe. More than half (53%) of North American organisations rate supplier diversity as a ‘high priority’, while fewer than a fifth (17%) of European organisations hold the same viewpoint.

scope and policies up front can result in unnecessary headaches down the road. On a basic level, defining the scope of your programme means identifying what diversity categories your programme will focus on.

For instance, you may choose to focus specifically on small businesses owned by women, minorities, veterans, or some other diverse supplier group. Eventually, your programme might grow to encompass many different groups, but defining a clear starting point will help you get things off the ground.

Have a champion Supplier diversity programmes won’t survive without a face that is owning and guiding the evolution and growth of the initiative. Ideally, this is a full-time person, but at the beginning, it doesn’t have to be

“Diversity programmes don’t survive without an owner to guide and grow the initiative”

as long as you enable him or her with the right data and technology to help drive integrated, measurable processes across the organisation. If you cannot allocate a dedicated person for the role, consider bringing in a consultant.

Align goals on supplier diversity and ESG

Before you can build a strategic plan, you need to identify the business objectives that are most important to your organisation and how your supplier diversity programme

might influence those objectives. By aligning supplier diversity goals and initiatives with larger business objectives and your overall company mission and values, you’ll earn the confidence of the executive team and stakeholder buy-in, while driving new opportunities to reduce your company’s carbon footprint and overall environmental impact.

Understand your baseline by leveraging data

Take a deep dive into your supply base to see where your suppliers stand when it

comes to diversity. Can’t do it yourself? Then supplier intelligence solution providers such as Scoutbee can help you build a more diverse, agile and sustainable supplier portfolio that can withstand current and future demands.

Our second expert is Ashlee Nelson, who is Senior VP of Sales and Partnerships at supplier.io, a provider of supplier diversity data, software, and management solutions. These are Nelson’s top five supplier diversity tips:

Communicate

and train

Creating an internal communication plan will help you keep everyone in your organisation on the same page about programme goals, initiatives, and current challenges. This may mean setting up regular, cross-departmental meetings and/or training on how to use a supplier diversity software platform. Along with laying out a clear internal communication strategy, consider also how you’ll communicate with your suppliers, both current and future. As your programme grows, maintaining clear and consistent communication with both employees and your supplier base will become even more important.

To set your programme up for success, create a plan for how your communication process will evolve as your diverse supplier network expands.

Enlist the help of a partner

A strategic partner like supplier.io will guide you through all the necessary steps and ensure that you create a world-class supplier diversity programme. The right partner will also help you build on that foundation after it’s been established so that you continue to evolve in the right direction.

“Every successful supplier diversity programme is borne out of a strategic plan supported by executive leadership”

ROGER BLUMBERG SENIOR VP GLOBAL MARKETING, SCOUTBEE

Track your results

Once the supplier diversity programme is up and running, be sure to regularly benchmark performance towards your objectives with a bi-annual or quarterly revalidation of your supply base via a data-enrichment process. This is a critical process to ensure your programme is seeing growth, identifying challenges before they become problems and capitalising on opportunities immediately.

Celebrate supplier diversity within your organisation

Raise your programme’s profile and stress your company’s commitment to Diversity, Equity and Inclusion (DEI). Seek to normalise supplier diversity within your organisation by giving frequent updates and celebrations of the programme’s successes.

Remember that supplier diversity is a company-wide endeavour, meaning that everyone in the company is a stakeholder and should be receiving frequent updates. Include metrics and success stories about the programme in corporate social responsibility reports, company newsletters, and other internal communications.

Promote your programme externally

Showcase your supplier diversity progress externally by communicating growth and expansion. If you’re updating your goals because you’ve met previous KPIs, then that’s cause for celebration. If you’re expanding into a global supplier diversity programme, then your marketing team should get the message out in the US and in the new regions where you’re operating. Whether you’re announcing the launch of your programme or highlighting the successes and growth of an established programme, you should be working with your marketing department to highlight your supplier diversity progress.

COMMITTING TO RADIOLOGY PROCUREMENT THE ALTHEA AUSTRALIA WAY

In a post-pandemic society where there’s an increased focus on physical and mental health, healthcare organisations around the world have found themselves under the spotlight. Whether this relates to the integration of tech and automation, clinical effectiveness, or patient care depends on the organisations themselves.

Althea Australia is a part of the Althea Group, a global organisation working across 16 countries. The Group operates as an outsource technological partner that provides managed services and multivendor maintenance across an entire spectrum of medical equipment – both in public and private portfolios.

But over at Althea Australia, based in Melbourne, things are slightly different.

“We provide consultancy and procurement services across a full range of diagnostic imaging equipment, including CT, X-ray, and MRI, up to 13 modalities,” says Monique Gaspar.

“The procurement function really is the integral component of our business operations, and we’re really committed to delivering best outcomes and best benefits for our customers.”

Head of Business Operations and Procurement at Althea Australia, Gaspar runs its day-to-day operations and manages customer supply relationships. She is, however, a radiographer by trade.

With aspirations to be the preferred group procurement organisation for radiology across ANZ, Althea Australia’s Phil Barber & Monique Gaspar explain why

Committing to

procurement the Althea Australia way

radiology

“I have 20 years of clinical experience in radiology in all different modalities,” says Gaspar. “I'm a subject-matter expert, responsible for the maintenance of our ISO 9001 accredited governance and framework. I'm also a procurement specialist.”

At Althea Australia, the team is small with multiple portfolios. Within this team, Phil Barber functions as the Senior Product Procurement Specialist and Business Development Manager.

“We aid in helping our partners to adhere to our rigid framework, our model, and our processes in procuring equipment,” says Barber. “I'm also responsible for the growth of the business, seeking out external opportunities with other groups, such as major corporations or private hospitals, and growing our business.”

Over his 30+ year career in the industry, Barber has become an experienced subject-matter expert across all facets of diagnostic radiology, led into the healthcare

industry because of a desire to utilise all learnedskills from the full span of his career.

“This for me, was a challenging new role. It gave me a new burst of life, and it was the first time I was on the customer or purchasing side, not with equipment sales and marketing,” says Barber.

In contrast, Gaspar has spent 20 years in a variety of hospital and private healthcare settings, having also done some teaching within this remit.

SPECIALIST, ALTHEA AUSTRALIA

“Because of our transparency, it opens the gate and gives us very open communication between the suppliers, which is a good strength”

PHILIP BARBER

TITLE: SENIOR RADIOLOGY PRODUCT/ PROCUREMENT SPECIALIST

LOCATION: AUSTRALIA

Philip Barber has worked Althea Australia since August 2021 as a Senior Product/ Procurement Specialist. Prior to Althea, he had a 30+ year successful career at GE Healthcare, progressing from GE Australia’s 1st In-house CT Applications Specialist, through various Sales/Marketing positions within their CT/MR Modalities; Thailand Country Manager and AsiaPacific CT Product Marketing Manager, based in Bangkok, Thailand. His last role at GE was within their ANZ Service Business, prior to joining Althea.

Phil is a Medical X-Ray Technologist by training from the University of South Australia and graduated from at Flinders Medical Centre in Adelaide. Phil’s strengths are his passion, knowledge, and experience, coupled with roles that have involved intense customer interaction. He has strong customer focus and balances the technical aspects/knowledge with clinical outcomes.

Phil is an Australian Citizen and resides in Gold Coast, Queensland. He lives with his Asperger’s son, aged 22 years.

BIO

EXECUTIVE

MONIQUE GASPAR

TITLE: HEAD OF BUSINESS OPERATIONS AND PROCUREMENT

LOCATION: AUSTRALIA

Monique Gaspar came to Althea Australia in 2020 as a Radiology Product Specialist and has since risen to become Head of Procurement and Business Operations, overseeing every aspect of Althea’s business.

Monique commenced her career as a graduate radiographer in Melbourne and quickly entered a managerial role before being recruited to educate radiographers at the prestigious Monash and RMIT Universities in Melbourne. After a distinguished career in academia, she completed her MBA and later began working for Althea.

Monique is valued by Althea’s clients for her detailed understanding of their operational and capital needs, and how those needs are best answered by the various equipment vendors operating within radiology. She is appreciated by her colleagues for her enthusiasm, warmth and leadership.

Monique lives in Melbourne with her husband Andrew and their 3 children.

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“With Althea, I was looking for a new challenge. I'd previously worked in a different role in admin and HR, with a bit of procurement involved. So when this job came up, I saw that it was a role where I could combine my healthcare and radiology background with my business experience,” she says.

Procuring high-value medical equipment

Althea Australia aspires to be the preferred group procurement organisation for radiology and healthcare providers across ANZ – Australia and New Zealand.

“We really want to be a centre of excellence for procurement,” says Gaspar. “We provide professional and strategic targeted procurement to Radiology – using our best practices – and to the market. This results in significant savings and operational

benefits to our healthcare providers. We provide fresh new ideas to the marketplace that drive competitive tension, which is best for everyone.”

Althea Australia is the only company doing this in the ANZ market, specifically in Radiology, which Barber sees as a huge competitive advantage.

“Our model has helped us drive capital expenditure down, so it benefits our clients,” Barber says.

Traditionally in the ANZ market, medical equipment has been purchased based on long-standing, preferred supplier relationships.

“New suppliers find it difficult to penetrate, even if they have superior specifications or more cost-effective equipment,” says Barber. “Equipment procurement times were lengthy and often drawn out, with repeated

“We really want to be a centre of excellence for procurement”

back-and-forth negotiations, which wastes time and money. Corporatisation of the private market is still ongoing and growing, and more and more smaller groups are consolidating.”

Corporate organisations desire structured and streamlined procurement processes rather than just operating as individuals.

Private companies and public sector organisations that purchase medical equipment individually are often limited by the scale of their organisation.

Althea Australia utilises strategic procurement processes, aligned with the organisation business objectives. The company is actively marketing to healthcare providers that will drive the benefits of scale.

“Essentially,” says Gaspar, ”in our core team of 4 personnel – of which 3 are subject-matter experts – we have the experience and technical skills across all modalities within diagnostic imaging, remaining neutral and unbiased with respect to all the different vendors.

“With regards to our expertise in specification and functionality, part of our process is designed to save the customer time and money because we procure fit-for-purpose equipment and match their clinical requirements of the sites, to their budgets. We use our expertise and experience to bring down their capital expenditure on equipment procurement and reduce the total cost of ownership over the life of the system, including servicing.”

“Our model is ideal for corporates as well as individual purchasers,” says Barber, “where the same business objectives are to minimise unnecessary overspending to improve their balance sheets, whereas previously, individuals were purchasing

based on brand names and/or repeat replacements. Whilst we understand brand loyalty and other factors exist in choosing equipment, we offer alternative options to the customers with equipment that fits their clinical needs, but not necessarily just re-ordering the brand they've bought for years.

“We're very transparent in the process. We've opened the game up to all suppliers that have equipment that match the specifications and clinical needs of that site. I think that's a good thing for the industry.”

Supporting suppliers and upholding partnerships

How healthcare businesses have managed their supply chains and partnerships has evolved over the past two years. At Althea Australia, Barber believes that the key to their success has been their relationship with suppliers.

“We need to be able to best-fit their products to our clinical needs and our end users,” he says. “We rely on those supplier relationships to educate us and update our knowledge-data continuously.”

This is not just a once-a-year type of activity; Althea Australia’s suppliers are constantly updating with new products, innovations and technologies. Radiology

“Equipment procurement times were lengthy and often drawn out, with repeated back-and-forth negotiations, which was a waste of time and money”

equipment improvements and innovations are constantly changing healthcare.

“Because of our transparency, it opens the gate, which gives us very open communication between our suppliers – it’s a core strength,” says Barber.

The company has worked with medical equipment supplier Quantum Healthcare who distributes and services equipment from Carestream Health Inc, and other OEM’s.

“We've renewed – and actually strengthened – the relationship between Quantum Healthcare and our clients with recent successes in their x-ray products, and the potential with expanding their portfolio with ultrasound systems,” continues Barber. “We did this by providing constructive

feedback to Quantum on what they did well and what could be improved with their tender offerings via our debrief sessions. They acted on our feedback, which enabled Quantum to attain success within our procurement tender process. They listened to what we've had to tell them as a customer, we've informed them how we believe they can become successful, and they've acted on that. A win-win for both parties.”

Another customer supplier who has also enjoyed recent successes with their tender offerings to Althea Australia has been Fujifilm Asia Pacific, with recent wins for their x-ray, OPG and mobile x-ray products.

“We’ve had successful installations and positive feedback from our end-users

regarding the Fujifilm products, which are well supported by their service teams,” says Barber. “Globally, they recently released new ultrasound products that are now being introduced locally, so we're trying to open doors to our customer-base for them to demonstrate their products. We are also excited with their soon-to-be-released CT Scanner systems, which can further expand their coverage and footprint for Fujifilm. We offer consultancy and advice to them on their product ranges, suitability and positioning across the ANZ market whilst serving our customers’ needs.”

But what is it that makes such partnerships work? What does a partnership have to have to be successful?

“I think it's like any good relationship,” says Barber. “Understanding and trusting our framework and processes. They've got to understand how we work and how they work with us – and to do that, good communication is required between all parties.

“100% what Phil said,” concurs Gaspar. “You definitely have to be open and transparent; it really is key because then there's no misunderstanding of what's happening.”

In the past, it has taken some suppliers a long time to understand Althea Australia’s processes, with some even slipping back into previous modes of procurement.

“But once we installed our framework and explained how we work, they quickly adapted to become competitive,” says Barber.

That then allowed Althea Australia to fulfil product features while driving cost advantages for clients at the same time.

STOPPING THE BACK-DOOR HACKERS

Too often supply chain is the soft cyber underbelly that hackers target to get at larger companies. Here, two cyber experts offer advice on how to prevent them

Arecent Accenture study showed that, in the US, 43% of cyberattacks were aimed at small to mediumsized enterprises (SMEs) but that just 14% of such companies are adequately protected. Those are scary numbers, and it’s a similar story on both sides of the Atlantic.

The British government reports that almost a third of UK firms with digital supply chains are vulnerable to cyberattacks, with many lacking even basic protective measures. It, too, says most are SMEs –by far the most numerous type of company.

In a cyber-vulnerable company, supply vendors are too often the entry point for malware, ransomware or denial of service attacks (DoS), which then work their way upstream or downstream to the organisation itself.

And yet, cybersecurity needn’t be complicated; much of it is down to sound housekeeping and well-managed communications.

We spoke to two cybersecurity experts for their advice and insights on the matter. James Tamblin (JT) is Vice Chairman of BlueVoyant, a US company that provides a cloud-based cybersecurity platform. Paul Gribbon (PB), meanwhile, is Cybersecurity Senior Manager at Reliance ACSN.

What’s the biggest internal cybersecurity threat to supply chains?

JT: Internally, the biggest threats come from suppliers or third parties who have access to an organisation's IT networks. If a supplier’s IT network is breached, then this might have a direct impact on the first party. As the

internal networks of organisations become better defended, increasingly, it’s suppliers who become the weak link that allows an attack.

Biggest external cybersecurity threat to supply chains?

JT: Externally, the biggest threats come from third-party organisations who perform a critical business process or deliver a key product to the first party.

In the event that a supplier or third party is subject to a cyberattack that means they are unable to deliver key products or services, this can become a big problem very quickly and may impact business continuity.

What are the most important first steps in being cyber-secure?

JT: For any organisation, the most important things to do when tightening cybersecurity include:

• The relentless use of multi-factor authentication (MFA)

• Maintaining a robust patching practice

• Continual cybersecurity awareness training; and

• Using software applications that are wellsupported from a security perspective.

• Doing these things well will reduce any organisation’s cyber risk significantly.

PB: The first step is for the company to understand the breadth, depth and location of its information assets. You cannot mitigate, protect and control what you don’t know about.

Organisations should also be prepared to be surprised, or even shocked, at the amount of data that needs to be under control. This is particularly true of the proliferation of cloud services’ data, for which you have accountability and is often being processed in locations of which you were not aware.

This also has a compliance and legislative impact, particularly as it relates to personal

“If a supplier is subject to a cyberattack and can’t deliver key products, it can very quickly impact business continuity”

data. The GDPR implementation date is now four-and-a-half years ago, and any data discovery assessments conducted back then will be severely out of date if this has not been a regular exercise.

If a business takes only one step to tighten cybersecurity, what should that be?

JT: Enabling multi-factor authentication on all internet-facing applications. This one extra-step is sometimes enough to convince cybercriminals to move on to other targets.

PG: Dispelling the myth that ‘it will never happen to us’ must be the first step. The most important thing is to take the risk of cybersecurity and cyber-based attacks seriously. This means, first, accepting there is a real risk the organisation could be impacted and, second, making it a priority to ensure there’s no complacency.

Once this is done, there will be a natural progression of activities to help identify and

protect an organisation. No two organisations are the same in terms of their business or operating model, size, culture and risk exposure, so those activities should be tailored to the environment and threat profile.

Are supply chains in certain sectors more vulnerable than others?

JT: There are some sectors that, traditionally, have not invested heavily in building and running state-of-the-art technology. By definition, this makes them more susceptible to being successfully attacked.

Typically, I see this in companies with tight margins that are spend-conscious and haven’t seen the upfront benefit of significant financial investment in technology.

Also, some sectors are more heavily targeted – including IT-managed service providers, who are seen as low-hanging fruit by hackers – because a successful breach of a managed service provider (MSP) will result in access to multiple target organisations in a single hit.

“The most important thing in cybersecurity is the relentless use of multi-factor authentication”

JAMES TAMBLIN VICE CHAIRMAN, BLUEVOYANT

The good news is that MSPs tend to take security very seriously and employ strong cyber defences.

Is geopolitical instability contributing to the problem?

JT: Using its intelligence feeds, BlueVoyant continues to monitor the unfolding situation between Russia

and Ukraine for any adverse impact on our clients.

To date, we have not seen a significant increase in attacks from that region against western targets. However, organisations in both Russia and Ukraine have been impacted by malicious hacking from both sides, as they attempt to disrupt or destroy adversaries through cyberattacks.

For organisations who depend on third parties based in conflict zones such as Ukraine, the impact can be significant.

What are the main barriers to tightening supply chain cybersecurity?

JT: The first hurdle to overcome is making key individuals inside an organisation understand why supply chain cyber risk is a problem that needs addressing.

For too long, chief information security officers, chief technology officers and other senior executives have been focused on building their own cyber defences.

Understanding the business risk of a successful cyber attack on a supply chain vendor or other third party is not always apparent to senior executives.

The second hurdle is to find an effective solution that helps the organisation have a positive impact on supply chain cyber risk. Many organisations find they are overwhelmed with vulnerability information, and don’t have effective means by which to influence third-party supply chain organisations at scale.

Intelligent investment in external support, and understanding what is possible from a ‘data’ perspective, is a key early step.

“You

PAUL GRIBBON SENIOR CYBERSECURITY MANAGER, RELIANCE ACSN

AD FEATURE

Tosca’s solutions operational

sustainable solutions eliminate operational waste

It only takes one simple idea to generate positive change in the supply chain. Simplicity is key to ensuring an equitable, profitable progression of sustainability solutions.

Organisations may aim to improve upon their energy consumption, manage their assets to reduce the amount of time for product distribution, or reduce the emissions involved in getting the products to market. Tosca, by providing reusable plastic packaging and pallet solutions in an efficient pooling system, challenges many of the sustainability pain points supply chains face today.

And supply chains face sustainability challenges of all kinds. However, through the managing and pooling of better packaging assets, Tosca seeks to battle many types of waste such as material waste, food waste, labour waste, and transportation waste. As a pooling system provider, as well as the designer and manufacturer of reusable plastic pallets and crates, the company is wholly committed to eliminating waste by developing products that last longer and are more effective in the specific supply chains it serves.

The company quickly began to realise that its patented designs were pivotal in minimising waste across many aspects of the supply chain. Benefits include reducing the number of pallets broken in transit, and designing more durable crates that can stack higher to decrease the number of trips required and are more protective to limit the number of damaged goods in transit.

Developing reusable plastic packaging and pallet products is Tosca’s sustainable solution for reducing costs and minimising time wasted in the supply chain

Tosca soon learned that its sustainabilitydriven products would open doors for technology integration to revolutionise the way customers use its reusable products.

Sustainable pooling solutions optimise the food supply chain

It’s important to note what pooling actually is and how it works. Luckily, the CIO himself tells us what this means and why it is such a critical process for the business.

Michael Weinberg describes pooling as the process of distributing a pool of reusable products across multiple customers, managing the distribution in a way that ensures each asset is cleaned and maintained to the highest standard in between uses.

MIKE

CHIEF INFORMATION OFFICER, TOSCA

“We’re seeing the importance of traceability, with the information detailing the status of assets becoming more and more critical”

“The idea is that the same asset can be used by various customers, so it's pooled. One day, this reusable plastic crate or a reusable pallet might be used by customer A; it comes back to us, we clean and sterilise it to foodgrade standards, then it might go to a different customer,” says Weinberg.

Throughout the pooling process, not only does the product service multiple customers, but it eliminates the need for single-use containers and pallets. To make the process feasible for this purpose, the pallets and crates must be carefully designed to be stacked using minimal space and incredibly durable to withstand intensive use. For the team at Tosca, this is an important function of its products and one of main focus points for the business.

MIKE WEINBERG

TITLE: CHIEF INFORMATION

COMPANY: TOSCA

INDUSTRY: SUPPLY CHAIN LOCATION: ATLANTA, US

OFFICER

EXECUTIVE BIO

Mike Weinberg joined Tosca as Chief Information Officer in May, 2019. In this role, he is responsible for leading technology solutions throughout the organsation. Mike has over 25 years of technology leadership experience within management consulting, retail, and hospitality industries. Over the past 10 years, Mike has served in a variety of leadership roles within InterContinental Hotels Group most recently as Vice President of Global Hospitality Solutions. Prior to IHG, Mike worked in management consulting with Deloitte and Answerthink as well as serving as CIO for RetailOne.

Mike has an undergraduate degree from Emory University and an MBA from Emory’s Goizueta School of Business in Atlanta. He is

PRODUCT DETAILS

Tosca's portfolio of IoTtraceable, reusable plastic assets is the most robust the market has to offer, including crates, pallets, bulk containers, dollies and more, design to:

Reduce shrink/product damage

High-strength plastic protects products better than corrugated, preventing waste and reducing shrink.

Save on labour Straight-to-shelf design simplifies restocking.

Save space Foldable and stackable to maximise truck and store space.

Food safe

With the highest food safety programme in the industry, containers protect products from harmful bacteria.

Support sustainability Prevents the waste of single-use containers with a reusable, recyclable alternative.

“With multiple customers leveraging the same pool of assets, we all win. It makes it more efficient when we're all using those same things. And, because we are in the sustainability space, we do take it very seriously,” Weinberg says.

Before allowing the inevitable question to be asked, Weinberg addresses the cleaning process and how this is not only a major step in reusing pallets and packages, but showcases the company’s environmental commitment through water reclamation.

When it comes to the end-of-life stage for pooling products, the materials are reintroduced into the manufacturing process by regrinding the plastics into a form that allows the material to be remade into new assets. The pooling products achieve a lifespan of around 10 to 15 years, as they “sometimes get damaged to a point where they can't be reused for their intended purpose”, according to Weinberg. “Then we recycle that as well. We work with firms that will carry out what they call regrinding—turning our crates into other things.”

Tackling supply chain disruptions and improving

efficiencies

When it comes to environmental commitments, Tosca seems to be ticking all the right boxes—which is what the company set out to achieve when it ventured into the realm of reusable products. But this has also paved the way for something much bigger: a solution that has the ability to provide its customers with more efficient ways of working and better use of data to overcome supply chain challenges.

This is where the organisation incorporates technology into the mix, creating a more advanced supply chain service that tracks product locations,

conditions, and, ultimately, reduces waste in other areas of its customers’ supply chains.

The first challenge Tosca’s reusable assets help alleviate is product defects. The ability to assess the conditions of food provided in transport gives Tosca clients access to realtime data that measures collisions between crates in transit and ensures that goods are kept at the right temperature while on the road, all with the aim of supplying each unit intact and on time.

“I love to use our egg channel as an example, as it’s the one that most people resonate with,” says Weinberg. “Most egg farmers would take their eggs, put them in cartons, and pack those cartons into cardboard boxes. Those cardboard boxes would go to distribution centres, then to retailers that would put the cartons on the shelf.”

He explains that the Tosca solution uses plastic containers that have ventilation and are stackable to minimise damage of fragile goods such as eggs.

“1) You don’t have to worry about crushing, which is a problem with corrugated boxes; and 2) Because they’re ventilated, you don’t have to use as much energy to maintain optimal temperature on the truck, achieving better efficiency.”

With such examples, there’s a reduction in potential damaged goods received by the retailer, but also less time spent stacking goods on shelves. This is thanks to a minimalist design

“With multiple customers leveraging the same pool of assets, we all win”

Tosca

pioneers sustainable solutions for supply chain waste

work with firms that will carry out what they call regrinding— recycling our crates to create other products”

with a drop down wall, which enables the eggs to be displayed in stores directly in the RPCs.

“Once that crate is empty, the retailers just collapse those crates—and again, there's a reverse supply chain process. They come back to us, where they’re cleaned and reused,” Weinberg says.

This process describes just how seamlessly companies are able to interact with Tosca’s products, reducing unnecessary time spent handling goods and managing defects. It’s a solution that can benefit many areas of supply, but the focus for Tosca is the food supply chain and translating the same process across many other products.

On the subject of efficiency, one major disruption or incident that takes place in supply chains is missing consignments. Tosca aims to minimise the number of reusable assets that are left behind at specific intervals of the supply chain, using internet of things (IoT) technology for that very purpose.

“We

Introducing IoT to its clients has provided them with further time and cost savings as they gain the ability to track and manage the movement of their goods. Incorporating functions like GPS, bluetooth and cellular networks, clients are able to visualise the realtime location of each crate or pallet to assess any product delays.

The latest technologies used in this offering supersede foundational technologies, such as barcodes and RFID, that were previously used to check goods in and out of depots as points of reference on their journey to the customer. The IoT-driven system allows for more discreet information tracking as well as measurement of trailer temperature, humidity, and shock.

This system is particularly useful to track the location of pallets and crates, but also to track the temperature of fresh meat and poultry, frozen goods, and other products that require more tailored transit methods, such as refrigerated or freezer trailers.

Growth catalyses digital transformation at Tosca

As a global company— headquartered in Atlanta, Georgia—Tosca has seen great adoption of its products and services across the states. It has also seen further interest from other countries in Europe, as well as Israel and others, thanks to some major acquisitions by the company.

To achieve its success, the company formed valuable partnerships with some critical organisations in technology, including Sycor for Microsoft Dynamics 365 support, SAP for implementing its HR systems, Data MTX for supporting most of its offshore labour requirements, and Sensolus for the presentation aspect of its global IoT solutions.

Another critical partner in Tosca’s success is Neway Technologies, which was the key

enabler of cloud migration and creating an almost-cloud-native workplace. The company works with Neway as its primary infrastructure partners, while also providing security solutions for its cloud-based business processes.

Weinberg believes that these relationships formed from the digital transformation of Tosca’s products, services and organisational processes will drive further integration of digital into the company and the optimisation of business-critical functions.

“I think we’re seeing the importance of traceability, with the information detailing the status of assets becoming more and more critical,” says Weinberg. “I think sustainability is a big part of it.”

“People partner with us because high quality reusables are one of the intersections

where commerce and sustainability meet. Having said that, I think there’s more need to recognise that sustainability is important and we’re getting more people across the globe saying, ‘we really want to invest in sustainable solutions, we don’t want to invest in one-way solutions’.”

In collaboration with its partners, Tosca continues to manage all forms of waste to enable seamless, cost-effective supply chain operations.

While Tosca is an organisation built on reusable packaging and palletisation, the company is much more than just a sustainability advocate— it’s a sustainability pioneer.

GLOBAL SUPPLY CHAINS

The World Trade Organisation's Global Supply Chain Forum recently said that businesses who accept disruption as the new normal are best placed to thrive in today’s world.

Multinational businesses, with supply chains that traverse the world, are continuing to reimagine supply through a combination of digital transformation, nearshoring, reshoring, changing inventory models from ‘just in time’ to ‘just in case’, and – just as crucially – adopting new sustainable practices. Here are 10 noteworthy examples.

We look at 10 global supply chains that are leading the way on innovation, sustainability and risk mitigation.

Apple

10Founded: 1976, Los Altos, California, United States Revenue: $275bn

In 2001, Apple was one of the first companies to outsource its manufacturing to China –drastically increasing profit. Its COO at the time was Tim Cook, the high priest of the ‘just in time’ inventory model. Many other supply chains followed Apple’s success.

Yet, Apple’s supply chain has nevertheless been hit by manufacturing disruptions, from China’s zero-tolerance approach to COVID-19, with climate extremes – including floods and drought –to boot. As a result, Apple plans to assemble and package some of the iPhone 14s in India for the first time.

Microsoft

Founded: 1975, New Mexico, United States Revenue: $41bn

As the largest IT company in the world, Microsoft aims to predict and prevent supply chain delays, and also aims to make its supply chain more sustainable. In a bid to cut plastic pollution in the oceans, for example, Microsoft has embraced innovation, with its designers creating the Microsoft Ocean Plastic Mouse, made from 20% recycled ocean plastic.

“The Microsoft team wondered why it couldn’t make a resin out of plastic in the ocean and make a difference there?” said a spokesperson for the Windows & Devices team. “And so we started formalising this idea.”

Amazon

Founded: 1994, Bellevue, Washington, USA Revenue: $113bn

Born in Jeff Bezos’ humble garage, Amazon – like Alibaba in China –helps entrepreneurs sell to online shoppers.

The company is now striving to build resilience into its supply chain by predicting disruptive factors and events, such as extreme weather cycles, via technology. Its forecasting programmes are enabled through a partnership with Oracle Supply Chain. What’s more, Amazon continues to expand its private fleet of long-haul and lastmile delivery trucks, reducing its reliance on UPS and FedEx.

Alibaba

Founded: 1999, Hangzhou, China Revenue: $109bn

“My job is to help more people have jobs,” said Jack Ma, the founder of Alibaba who started the company from his apartment in Hangzhou, China, in 1999. Ma created a platform to help small to medium-sized businesses (SMBs) grow their customer base, helping Alibaba go on to become one of the biggest ecommerce sites in the world.

For SMBs struggling to get a foothold in the supply chain jungle, Ma has this advice: “Never give up."

Join us at Join us at Procurement & Supply Chain Procurement & Supply Chain Live in London Live in London.

Taiwan Semiconductor Manufacturing Company (TSMC)

Founded: 1987, Taiwan Revenue: $362bn

Like many huge organisations, semiconductor process technology company TSMC is focused on becoming more sustainable, viewing its supply chain as a vital means of working towards this.

“Suppliers are important partners to us on the road to sustainable management,” says a spokesperson for TSMC. “We aspire to create a responsible supply chain by elevating ESG standards.” It is driving positive change through its Supply Online 360 technology, an online management platform for a global sustainable supply chain.

ethical performance ratings for global supply chains – awarded Coca-Cola European Partners with Best Supplier Engagement.

Samsung Electronics Company

Founded: 1938, Daegu, South Korea Revenue: $200bn

Samsung Electronics has some rigorous guidelines in its supply chain concerning ESG. Suppliers must prove that their employees are safe, and must – among many other things – prove they have adequate fire prevention, in addition to equipment for dealing with sewage securely. Child labour and ‘inhumane treatment’ are other areas it closely monitors, adamant that all workers in its supply chain receive a minimum wage. South Korea’s biggest company will also only conduct business with suppliers who are eco-certified.

Intel

04Founded: 1968, Mountain View, California, USA

Revenue: $77bn

Intel works with suppliers across 89 countries, enforcing sustainability rules within its supply chain. The company continuously works to weed out slavery among its recruiters and labour agents, additionally determined to value responsible mineral sourcing through its supply chain.

Like many companies, minimising its environmental impact is also a priority, and to this end, it engages with suppliers to reduce waste and propel circular solutions. Supply chain diversity and inclusion are also priorities, and the company has plans to increase its spending with diverse-owned suppliers.

Nestlé

Founded: 1866, Vevey, Switzerland

Revenue: $98bn

The Swiss multinational food and drink conglomerate is best known for its chocolate products, but is in fact responsible for 2,000 brands and has a footprint in 186 countries.

As the largest food manufacturer in the world, Nestlé has gone to great lengths to ensure its supply chains are resilient, flexible, more sustainable, and more technologyenabled than most. One way it has done so is by embracing blockchain, which enables faster, more transparent and costeffective delivery of products, as well as improving how it coordinates with suppliers.

Toyota

Founded: 1937, Japan Revenue: $247bn

Toyota pioneered the 'lean manufacturing' approach in the 1940s with its Toyota Production System. This quickly gained global influence, with other companies adopting the methodology.

Today, Toyota supply-chain management remains at the core of its operations’ strategies. Now titled Toyota’s Supplier Partnering Hierarchy, it lists the following elements as essential: mutual understanding and trust; interlocking structures; control systems; compatible capabilities; information sharing; and joint improvement activities. These are values and approaches that have served the company well, even in the face of ongoing computer chip shortages.

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The

Cisco Systems

Founded: 1984, San Jose, California, USA Revenue: $113bn

Cisco Systems’ supply chain was recently named as the greenest in the IT industry. The company sees minimising environmental pollution as an essential part of environmentally-responsible supply chain management.

A spokesperson said: “Like all work in supply chain sustainability, addressing pollution requires rigorous data collection and analysis.” To this end, Cisco works closely with suppliers to drive change, forging partnerships with organisations “in order to advance shared goals”.

“Like all work in supply chain sustainability, addressing pollution requires rigorous data collection and analysis”