Supply Chain Management Archives - 麻豆原创 Southeast Asia News Center /sea/topics/supply-chain-management/ News about 麻豆原创 Southeast Asia Thu, 25 Jul 2024 15:27:52 +0000 en-US hourly 1 https://wordpress.org/?v=7.0.5 A Shared Commitment to Sustainability: How Lion Is Becoming a Force for Good /sea/2023/02/a-shared-commitment-to-sustainability-how-lion-is-becoming-a-force-for-good/ Mon, 27 Feb 2023 04:08:55 +0000 /sea/?p=3700 Lion has been at the forefront of the brewing industry for more than a century.

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Brewing is one of the world鈥檚 most enduring pastimes 鈥 and businesses. Lion has been at the forefront of the industry for more than a century, and today produces, markets, and sells beer, cider, seltzer, spirits, and wine, as well as coffee.

Enjoying a sociable drink and helping people live well is central to Lion鈥檚 commitment to be a force for good. Not only that, but the company aims to be a force for good across both society and the environment.

That鈥檚 why 麻豆原创 recently travelled to Sydney, Australia, to meet with Libby Davidson, General Counsel and Head of Sustainability at Lion, to explore the company鈥檚 sustainability journey and how technology is empowering their climate ambitions.

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A shared commitment to sustainability between Lion and 麻豆原创

Q: Lion prides itself on pioneering innovation in the brewing industry. What does it mean for Lion to be future-ready?

Davidson: Lion has been brewing beers in Australia and New Zealand for more than 150 years and has been pioneering change the whole time. Our Castlemaine Perkins 听brewery听 in Brisbane dates back to 1878, and the Tooheys location nearby is even older, opening in 1869.

It’s been a long journey and it’s been really important to us that our customers come on that journey with us. Fundamental to that relationship is trust. It goes back to the trust equation 鈥 that trust is based on credibility, reliability, and intimacy. Most important to that is creating intimacy.

If our customers can sense that feeling of care and understanding they鈥檒l keep buying our brands as we innovate and adapt.

Another area we know Lion is investing in is sustainability. How are you driving sustainability in your business?

I think sustainability is one of the big issues of our time. The community and consumers are increasingly concerned about the impact our changing environment has, and they want to play their part in addressing a challenge facing our whole planet. Not just that, but they want businesses to do more too.

Lion has found that being a force for good has become more and more important to us over the last few years. That agenda covers both the social side and the environmental side.

We were very proud to achieve the Carbon Neutral certification across all of our operations in Australia and New Zealand a couple of years ago. All of our breweries are committed to using renewable electricity by 2025, we use solar panels on brewery roofs, and we take the biogas that’s a by-product of the brewing process and we convert it back into a source of energy. It鈥檚 a wonderful circular story. And we have started to look at carbon neutral certification in our individual brands, including for our XXXX Zero non-alcoholic beer, Four Pillars gin, and our Steinlager brand in New Zealand.

How are you driving that decarbonisation in the brewing process?

When you think about the carbon footprint of brewing a beer, the Scope 1 and 2 emissions are the emissions that we either create from the brewing process or that are related to the energy that we use to do the brewing.

But our impact goes much further than that. Scope 3 emissions are where you look up and down the value chain and think about the carbon footprint of all your stakeholders. That could be our malt suppliers, our packaging suppliers, or our hops suppliers. But it also includes looking at our partners downstream, through the organisations who take our products to market.

We aim to look at the carbon emissions of all those value chain partners and collaborate with them to minimise and decarbonise their operations so the carbon footprint of a Lion product is really managed as effectively as it can be.

How can data and technology empower Lion to be a force for good?

In the sustainability space particularly, having accurate, reliable, transparent data is critical to underpin all the commitments and promises businesses make about environmental sustainability. If organisations can’t back up those commitments with data, then they鈥檙e at risk of greenwashing.

But it can still be quite challenging to get the data in from all those value chain partners, especially when there are still different levels of maturity when it comes to recording and sharing sustainability data.

I think developing systems for the recording of that data is a real opportunity across the economy now. Technology organisations like 麻豆原创 are central to the development of systems so these processes evolve from being quite manual to something that becomes a part of doing everyday business. That means sharing data right across the value chain becomes second nature to all organisations.

That鈥檚 why we鈥檙e proud to share a commitment to sustainability between Lion and 麻豆原创.

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Future-Proofing Supply Chains Against Disruptions /sea/2022/11/future-proofing-supply-chain-against-disruptions/ Mon, 28 Nov 2022 22:00:10 +0000 /sea/?p=3510 How can organizations transform their supply chains? What is the role of technology in helping them thrive in today鈥檚 world?

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Globally, supply chains of many organizations have seen and experienced numerous disruptions and challenges. For instance, due to restrictions caused by the global health crisis and the conflict in Europe, acquiring raw materials and delivering end products has become challenging for businesses.

A 2020鈥痓y Ernst & Young LLP revealed that 72 percent of the 200 senior-level executives in the supply chain indicated that the global health crisis had negatively impacted their organizations. Such a situation reinforced the importance of better coordination and collaboration in businesses鈥 supply chains.

And while the world enters the post-pandemic stage, conversations about pursuing agile, resilient and sustainable supply chains remain due to continuous disruptions worldwide. But how can organizations transform their supply chains? And what is the role of technology in helping them thrive in today鈥檚 world?

In the photo (L-R) Rose Tubeo, Senior Supply Chain Planning Manager, Unilab, Inc., Simone Pigason, Head of Digital Supply Chain, 麻豆原创 South East Asia, Suzelyn Urbano, Vice President for Enterprise Services, Globe鈥檚 Information Services Group, Pierre Carlo Curay, president, SCMAP, Rajesh Mohan, Sr. Director of Digital Supply Chain, Partner Cloud Adoption, 麻豆原创 Asia Pacific Japan

In a July 2022 virtual event titled 鈥淏uilding Intelligent, Resilient, and Sustainable Supply Chains鈥 conducted by the Supply Chain Management Association of the Philippines (SCMAP), in collaboration with 麻豆原创, Simone Pigason, Head of Digital Supply Chain of 麻豆原创 South East Asia, spearheaded a panel discussion with supply chain leaders from 麻豆原创, SCMAP, and the Globe Group. They discussed how supply chains changed in the Philippines and how businesses can survive and thrive in the current business environment.

Changes in PH Businesses鈥 Supply Chains

Pierre Carlo Curay, President of SCMAP, said the pandemic brought various changes to organizations鈥 supply chains. Curay remarked that people, whether on the private or government side, now understand the significance of supply chains, even local ones, especially with what is happening on the global stage, having seen its role in accelerating digitalization by around 10 years.

鈥淩eliability is now more important in the supply chains, especially in logistics and supply, followed by speed. We must get the stuff we ordered even with what is happening, such as supply chain disruptions or inflation. It is unlike before where cost was the vital factor before speed and reliability,鈥 Curay added.

Suzy Urbano, Vice President for Enterprise Services of Globe鈥檚 Information Services Group pointed out that the change in customer behavior, expectations, and values amid the pandemic propelled the company to reimagine how it manages its supply chain, modifying its business objectives and aspirations.

鈥淎s we target same-day delivery, it pushed us to change our processes and policies. It led us to enhance our applications, implement new tools, and add new logistics partners to achieve it,鈥 said Urbano.

Globe has been a long-time partner of 麻豆原创, utilizing tools including Ariba and Concur, which has not only automated internal process, but also limited the use of paper and promoted more efficient operations.

Pigason conveyed how the global health crisis also showed why the supply chain and manufacturing are essential.

鈥淭oday鈥檚 disruptions present complex challenges to the supply chain and manufacturing. That is why businesses are putting these factors back at the center for business success,鈥 added Pigason.

All these changes in the supply chains redefined the dynamics in organizations. Curay further added that there is now a need for a more integrated supply chain to foster collaboration, increasing efficiencies. 鈥淏y connecting people and departments, an organization can enhance collaboration among everyone and leads to more efficiencies.鈥

How to Enable a Pandemic-Proof Supply Chain

And while many changes happened during the health crisis, Urbano mentioned that Globe had become 鈥減andemic-proof鈥 after implementing the right technology as part of the company鈥檚 digital journey.

One of these many instances was when Globe applied 麻豆原创 Integrated Business Planning (麻豆原创 IBP) in 2018 before migrating to 麻豆原创鈥檚 麻豆原创 S/4HANA offer in 2019. Urbano said that it helped the telecommunications company embark on its mission to improve its forecasting and allocation to ensure that stocks are at the right place and time. She added that Globe also developed programs in 麻豆原创 S/4HANA to automate the identification of inventory proximity to the delivery address.

But, how can organizations transform their supply chains to be intelligent, resilient, and sustainable?

Pigason explained that companies must first determine where they are on their digital transformation journey. She noted that businesses must define their priorities and establish realistic KPIs and time frames. From there, organizations can then ask themselves what technologies they can embed today and how to scale them up and achieve rapid adoption while being prepared for change management.

鈥淏efore starting a digital transformation journey, organizations must know where to start. They also need a roadmap with the right KPIs. It is followed by adopting technologies to embed all the听networks. All these are significant steps to support a smoother, more efficient business transformation that help in future-proofing supply chains against disruptions,鈥 Pigason added.

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Supply Chain Optimization Is the Cornerstone of Sustainability Improvement /sea/2022/10/supply-chain-optimization-is-the-cornerstone-of-sustainability-improvement/ Thu, 13 Oct 2022 07:30:16 +0000 /sea/?p=3281 While supply chains are a big part of the problem, they are also a big part of the solution.

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Why is a sustainable supply chain important to companies?

While supply chains are a big part of the problem, it’s also a big part of the solution. Hence, Supply Chain Optimization is the cornerstone of Sustainability Improvement and is the biggest driver in obtaining a company鈥檚 sustainability goals.

  • In 2020, CDP found that GHG emissions in a company鈥檚 supply chain are, on average, 11.4 times higher than its operational emissions.
  • In 2020, 239 companies signed the Science Based target Initiative and 94 per cent of them committed to reduce emissions at customers and suppliers.
  • (indirect value chain emissions) accounts for 80 per cent of the overall climate impact for many companies. Increased globalization, competition, and continuous supply chain disruptions force companies to be more efficient and agile. In addition, companies need to match their economic objectives while operating in a sustainable manner to meet consumer needs.

Sustainable development of supply chain is a crucial part of any business and an efficient supply chain is imperative.

Sustainability starts with product design, which feeds into the manufacturing and supply chain processes. The supply chain involves the movement of materials and services from upstream to downstream operations of the Supply chain. Today鈥檚 supply chain consists of multiple operations, suppliers across locations, and facilities in different countries, regions, or parts of the world.

A digitalised resilient supply chain helps companies:

  • To be more agile (Proactively and profitably sense and respond to market dynamics)
  • Increase Productivity (Deliver high-quality, mass-produced, make-to-order products faster)
  • Improve connectivity with Business partners
  • Run sustainable business practices that maximize reuse and minimize waste of materials from design to operate, minimize carbon footprint across the supply chain network, and protect the health and safety of employees

As we are aware, sustainable sourcing is critical across all industries. It is the process of selecting materials, products, and services from suppliers sustainably. As supply chains continue to expand globally into developing countries, seeking lower costs and greater production capacity, they expose companies to an even wider array of risks. In applying sustainable sourcing, organizations integrate social, ethical, and environmental factors into selecting their suppliers.

Hence, managing the social, environmental, and economic impact of the supply chain is a key priority for companies to achieve long-term success. Not only does this help to comply with sustainability legislation and environmental regulations, but the sustainability of the supply chain can also affect the business鈥檚 profitability, work opportunities, professional partnership, and reputation. It is crucial for companies to collaborate within their own departments and suppliers across their supply chain network to reduce the scope听 emissions.

How Does Supply Chain Optimization Help Companies on Their Sustainability Journey?

In today鈥檚 supply chain, goods might travel halfway around the world before reaching their final destination, which have a large impact on company鈥檚 carbon footprint. Hence, the collaborative supply chain planning and execution are at the heart of companies’ brand and business success and help companies on their environmental goal.

Let鈥檚 now look at the three areas which help companies in optimizing their supply chain activities and help in reducing indirect emissions that occur in the value chain.

Supply Chain Planning

Supply Chain Planning is the intelligent brain to optimize the supply chain to improve the sustainability goal of the companies. This helps companies to plan resources, inventories, capacities, and ethical sourcing. This is helping companies in reducing overall environmental impact and product wastages across the supply chain.

In many organizations today, the planning team is isolated from the rest of the value-generating teams and plans product demand in siloes. Here are the details on how collaborative and synchronized Supply Chain planning can help companies in reaching their sustainability goal sooner:

  • Sustainable supply helps the planner in ethical sourcing across your entire supply chain and better collaborate with suppliers on the sustainability sourcing targets
  • Increased forecast accuracy helps to carry optimized inventory across the supply network and also helps to reduce product wastage
  • Use sustainability targets and planetary boundaries as capacity constraints
  • Resource Optimization helps to optimize equipment and resource usage. This practice allows companies further optimize energy and emissions from the equipment.

Supply Chain Execution

It has been reported that emissions from logistics businesses during the delivery of goods have been upward trajectory, increasing by 1.9% annually since 2000.Most of this can be attributed to the rise of globalisation and increased demand for consumer goods. Transportation is one of the areas in which getting to zero emissions is a key goal for companies which includes reducing travel distances and increasing efficiency. Here are the details on how optimised transportation and warehouse processes helps companies to ensure the logistics processes are managed sustainably by saving resources and protective the environment.

  • Transport optimisation: Optimize loads and reduce mileage across operations, making such deliveries more sustainable, end to end 鈥 from raw materials to factory, to the warehouse to doorstep. This helps companies in reducing emissions and costs and improves utilization.
  • Warehouse planning to optimize the storage and warehouse activities
  • Energy optimization: Use CO2- and energy-optimized warehousing and transportation.
  • Worker safety: Develop a process to ensure workers’ safety and that only qualified personnel can handle dangerous goods.

Collaborative Logistics Network

Logistics is complex. It manages the movement of raw materials, intermediate products, and packaging across the globe to manufacturing facilities, as well as the distribution of products from origin to consumption.

Today’s sustainable enterprises want more profound insights into their supply chains, including the sustainability values of their trading partners. Companies want trading partners’ sustainability values to align with their and consumers’ values. 麻豆原创 Business Network, along with our ecosystem of partner applications, creates the transparency needed to make decisions based on a range of criteria. When the performance of existing trading partners doesn’t align with a business’ sustainability goals, shifting to new trading partners has never been easier. With Today’s Collaborative logistics Network, companies can quickly discover new, more sustainable providers across industries and geographies.

A digitalised logistics network helps companies with the following:

  • Collaboration for Responsible Sourcing and Purchasing
  • Material traceability reinforces sustainability throughout the supply chain to create a trusted network across material flows.
  • Collaborative Asset Intelligence Network helps in energy waste reduction
  • 听Efficiently plan and execute delivery

How Can 麻豆原创 Help

麻豆原创’s supply chain management solution helps companies adopt sustainable practices from the product design stage. The solution helps to capture sustainability data across every stage of the supply chain to align with regulatory and corporate sustainability goals while balancing profitability by optimizing supply chain activities across the network.

  • recyclable and sustainable products with a minimal carbon footprint, planet-friendly packaging, and a responsible end of life
  • to reduce emissions, source materials ethically, and support circular processes
  • with minimal waste and environmental impact by monitoring energy use based on production volume
  • products and听optimize logistics to support product traceability and decrease miles听driven, carbon footprint, and energy use

enables you to collaborate with all trading partners in your supply chain, including suppliers, logistics and services providers, asset operators, maintenance contractors, and more.

helps you to achieve supply chain visibility by enabling plan-driven automation, optimising capacity and inventory, and streamlining procurement workflows to build resiliency in your supply chains.

helps companies to improve freight collaboration, goods tracking across the network, material traceability, and supply chain resilience.

  • support shippers in their collaboration with third-party logistics providers.
  • solution enables real-time insights into the movement of materials and products to reduce supply chain risks and optimize costs.
  • helps to Improve transparency, trust, efficiency, and sustainability by connecting your supply chain.

empowers asset owners, operators, or service providers to better collaborate and share information through a single, consistent version of asset master data to streamline asset servicing processes and reduce maintenance costs.

How to Begin the Journey

  • Start Transformation: Gain insight by aligning people, processes, and technology to holistically manage sustainability aspects across your enterprise and the supply chain.
  • Get a baseline and identify the hot spots for improvement: Assess how you perform 鈥 environmental, social, and governance impact.
  • Focus: Set the overall direction of where you want your company to go. Identify impact areas, and define targets, milestones, and timelines.
  • Sustainability Performance: Monitor, measure, analyse and report on improvements around sustainability performance.

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NTT DATA and 麻豆原创 Announce Co-Innovation Solution to Track Fragile and Sensitive Cargo Shipments and Facilitate Insurance Procedures /sea/2022/07/ntt-data-and-sap-announce-co-innovation-solution-to-track-fragile-and-sensitive-cargo-shipments-and-facilitate-insurance-procedures/ Tue, 12 Jul 2022 01:00:52 +0000 /sea/?p=3010 TOKYO and SINGAPORE 鈥 The solution further the strategic alliance between NTT and 麻豆原创 formed in 2020.

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TOKYO and SINGAPORE听鈥 At the 麻豆原创 Sapphire conference in Tokyo today, and 麻豆原创 Asia Pacific and Japan (APJ) announced a new co-innovation solution to improve supply chain insurance management. The solution, Connected Product, is a packaged offering jointly developed by global digital business and IT services leader, NTT DATA, and , furthering the strategic alliance formed in 2020 between parent company NTT, and 麻豆原创 SE.

Global value chains are becoming increasingly complex due to rising geopolitical risk, trade growth, and volatility of material availability. Losses due to poor transportation conditions have become a multibillion-dollar problem due to extreme difficulty in identifying the cause of damage or when an incident occurred. These challenges offer a great opportunity to overhaul the overall value chain with a solution that can provide real-time information on transport operations 鈥 from changes in temperature and humidity to whether the goods have been tilted 鈥 to all parties involved, giving everyone the ability to quickly adapt to potential incidents and rapidly recover from them.

The Connected Product solution responds to this need by monitoring the location and environmental conditions of goods in transit. It is especially useful for tracking fragile goods, such as solar panels; bulk liquids, such as wine and olive oil; and sensitive cold chain shipments, such as cheese, pharmaceuticals, and even vaccines. The tracking provides greater visibility across the entire supply chain, and agility to activate immediate reactionary procedures, in case of damage or delays. This reduces friction when purchasing insurance and processing claims for shipments, and ensures timely delivery of goods. It also reduces waste and promotes sustainability.

Connected Product brings together the power of * and the global track and trace option, extended with NTT DATA smart insurance policy management assets**, to dramatically change the way people ship goods and manage associated risks. The solution also includes components built using .*** By enabling end-to-end, real-time monitoring of the transportation conditions, the solution can monitor all variables that could affect a shipment, and automatically trigger and execute insurance policies if goods are not transported under certain pre-defined conditions. Utilising 麻豆原创 Business Network for Logistics helps improve accountability for each stakeholder and makes transport insurance management easier. Plus, by digitising shipment and insurance documentation, the solution simplifies tracking and insurance processes across the supply chain, reducing waste and costs, and benefiting the whole ecosystem 鈥 from the insurance company to the insurance reseller to the logistics companies.

鈥淕lobal disruptions have caused today鈥檚 value chains to be more complex and diversified than ever before, and this complexity will only increase. What we鈥檙e announcing today improves supply chain visibility for logistics companies and insurers here in the APJ region, and delivers on NTT and 麻豆原创鈥檚 shared vision of helping companies around the globe achieve greater resiliency and agility to ensure they are prepared for future disruptions,鈥 said Paul Marriott, President, 麻豆原创 APJ.

鈥淎t the 麻豆原创 Sapphire conference in Tokyo today, modernising supply chain management is one of the key themes that we鈥檒l be discussing. I鈥檓 excited to see the innovations 麻豆原创 is driving together with NTT around this area, and what more we can offer to help our customers,鈥 said Hirofumi Suzuki, President and Representative Director, 麻豆原创 Japan.

鈥淭oday, more than ever before, global logistics need to be resilient and adaptative. Long-term planning alone is no longer sufficient, and organisations must be able to react quickly especially in times of uncertainty. Critical to enabling this type of agility is to have the right data in the right hands, in real time,鈥 said Norbert Rotter, SVP, NTT DATA Corporation, and CEO, NTT DATA Business Solutions.

Currently, NTT DATA and 麻豆原创 Connected Product teams in Japan, Germany and Spain are collaborating on a pilot with a Spanish logistics group and a German insurance company, using Connected Product to track the condition of hundreds of containers moved by 20 shippers between Europe and Asia. The data gathered by IoT sensors helps to ensure that conditions critical for the goods 鈥 like temperature, luminosity, or shock-proofing requirements 鈥 are managed during the journey. That information gives customers the opportunity to quickly react to incidents. The pilot project will continue to run through September 2022, after which NTT DATA plans to incorporate the system into business operations, extending the solution to more international insurance and logistics companies.

Diagram showing Connected Product process flow

For more information on Connected Product, please watch featuring Christian Klein, CEO and Member of the Executive Board at 麻豆原创 SE, and Jun Sawada, CEO of NTT (at the time of filming).

About NTT DATA

NTT DATA, part of the NTT Group, is a global innovative company providing business and IT services with its headquarters in Tokyo. The company helps its customers in their transformation processes via consultancy, industrial solutions, commercial process services, digital and IT modernisation and managed services. NTT DATA enables them鈥攁nd society as a whole鈥攖o move confidently towards the digital future. The company proves its commitment to the long-term success of its customers, combining a global scope with local service to work with them in over 50 countries around the world. To learn more, please visit .

About 麻豆原创

麻豆原创鈥檚 strategy is to help every business run as an intelligent, sustainable enterprise. As a market leader in enterprise application software, we help companies of all sizes and in all industries run at their best: 麻豆原创 customers generate 87% of total global commerce. Our machine learning, Internet of Things (IoT), and advanced analytics technologies help turn customers鈥 businesses into intelligent enterprises. 麻豆原创 helps give people and organisations deep business insight and fosters collaboration that helps them stay ahead of their competition. We simplify technology for companies so they can consume our software the way they want 鈥 without disruption. Our end-to-end suite of applications and services enables business and public customers across 25 industries globally to operate profitably, adapt continuously, and make a difference. With a global network of customers, partners, employees, and thought leaders, 麻豆原创 helps the world run better and improve people鈥檚 lives. For more information, visit .

For more information, press only:

NTT DATA Corporation Public Relations Department,
pr-support@kits.nttdata.co.jp, JST

Celest Lim, 麻豆原创 (APJ media),
celest.lim@sap.com, SGT | 麻豆原创 麻豆原创 Room (APJ)

Mayuko Ogata, 麻豆原创 (Japan media),
mayuko.ogata@sap.com, JST | 麻豆原创 麻豆原创 Room (Japan)

This document contains forward-looking statements, which are predictions, projections, or other statements about future events. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to materially differ. Additional information regarding these risks and uncertainties may be found in our filings with the Securities and Exchange Commission, including but not limited to the risk factors section of 麻豆原创鈥檚 2021 Annual Report on Form 20-F.
漏 2022 麻豆原创 SE. All rights reserved.
麻豆原创 and other 麻豆原创 products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of 麻豆原创 SE in Germany and other countries. Please see听听for additional trademark information and notices.
*麻豆原创 Business Network for Logistics 鈥 global track and trace option, enables real-time insights into the availability of materials and products to reduce supply chain risks and optimise costs. It helps companies monitor critical business processes by comparing planned versus actual milestones.
**NTT DATA smart insurance policy management assets assist insurance companies in making decisions regarding payment of insurance claims and in calculating insurance claims.
***麻豆原创 Business Technology Platform (麻豆原创 BTP) brings together data and analytics, artificial intelligence, application development, automation, and integration in one, unified environment to enable innovations that natively integrate with 麻豆原创 applications.

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What Businesses Can Learn from Ecosystems That Thrive in the Darkest Corners on Earth /sea/2022/06/what-businesses-can-learn-from-ecosystems-that-thrive-in-the-darkest-corners-on-earth/ Tue, 21 Jun 2022 01:03:38 +0000 /sea/?p=2969 What can businesses, sometimes facing inhospitable conditions of their own above sea level, learn from the enterprising plants and animals whose habitat eludes visibility?

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As a boating enthusiast and scuba diver, I find peace whenever I return to the solitude of the sea. Whatever concerns occupy my mind while on land seem to dissipate into the endlessness of its calming waves. Yet experienced sailors and swimmers understand that, for all its allure, water holds just as much potential for turbulence as it does for tranquility.

Consider the听听by scientists of Sir Ernest Shackleton鈥檚听Endurance, which sank off the Antarctic coast in 1915. Fortunately for the explorer and his crew of 27, all managed to survive. As for the shipwreck, scientists found it remarkably intact amid the frigid depths of Earth鈥檚 southernmost seas. But the photographs capture one significant change with the passage of time: the sunken vessel, like the craggy ocean floor surrounding it, now teems with life. At a depth exceeding 3,000 meters, triple the distance sunlight can听听underwater, how do ecosystems manage to thrive? And what can businesses, sometimes facing inhospitable conditions of their own above sea level, learn from the enterprising plants and animals whose habitat eludes visibility?

To run at their best, businesses carry out multiple operational processes simultaneously, maximizing efficiency and minimizing risk across them all. So too the complex networks of flora and fauna undersea. A lack of visibility presents challenges not only for aquatic ecosystems but for commercial ones as well, in the latter instance imperiling critical functions such as procurement and supply chain, logistics, and the maintenance of equipment connected by the Internet of Things (IoT). Business leaders increasingly look to the cloud for digital solutions to enhance visibility across all these functions. But they鈥檙e equally wise to gaze seaward as well for insights on instilling resilience. Disruption, after all, can leave wreckage at the bottom of an income statement just as it can at the bottom of an ocean.

At a time when听viral variants, recurrent lockdowns, and geopolitical tensions continue to roil supply chains and labor markets, businesses require 360-degree visibility across the interconnected operations of trading partners and solution providers to maintain continuity, foster collaboration, and keep promises made to customers. Yet many procurement and supply chain professionals possess only fragmentary information about isolated business processes, unable to gain a comprehensive view across the four walls of their organization, let alone those of their buyers and suppliers. Integrated digital platforms, however, lend businesses the expansive view and data-driven insights they need to anticipate rapid shifts in supply and demand and suggest available alternatives for the sourcing of raw materials and indirect goods.

Yet while cloud-based business networks are a contemporary innovation to extend visibility where it runs scarce, they are hardly without precedent. Deep-sea creatures have evolved their own ingenious techniques for sharpening their acuity to procure food. Consider the Pacific barreleye, whose translucent head enables the fish to听听in total darkness while stalking its next meal. Or the stout blacksmelt, whose oversized eyes听听from its otherwise modest frame. Or the scallop, whose 200 eyes peer behind mirror-like lenses, focusing in unison to听听the tiniest trace of light undiscernible to animals further down the food chain.

Back above the surface, businesses lie vulnerable to disruption even when supply chain visibility remains intact. When finished goods pile up in logjammed seaports, for example, manufacturers can offer little solace to customers denied on-time shipments. To ensure prompt delivery via sea, road, rail, or air, businesses require unimpeded visibility across all facets of logistics. They rely on cloud-based networks to track shipments in real time, collaborate with transportation partners, and secure alternatives when unforeseen contingencies thwart the best laid plans.

Here too, lessons emerge from the deep. Spanning distances exceeding anything comparable on land, the ocean organizes logistics through vast networks known collectively as the听. Life-sustaining elements, such as carbon, oxygen, nitrogen, and phosphorus, flow from the surface to the ocean floor and back again through intricate cycles of photosynthesis, decomposition, consumption, and sedimentation. The biological pump is also responsible for sending to the bottom of the sea much of the Earth鈥檚 excess carbon dioxide, which, if released, would oversaturate its atmosphere and overheat its surface. Through the resilient, never-ending exchange of resources essential to life both within and beyond its depths, the ocean maintains arguably the most elaborate logistical network ever devised.

Cloud-based business platforms operate on a planet-wide scale with unrivaled efficiency, too. Not only do they facilitate procurement, supply chains, and logistics between businesses and their trading partners, but in recent years they have begun to connect remote assets through the Internet of Things. This cloud-based capability, often called asset intelligence, has revolutionized the maintenance of equipment.

Suppose a utility operates a windmill farm offshore. All of the units require physical upkeep but accessing them can prove costly and dangerous. It can also prove futile if the windmill happens to be in perfect working order. But by linking together far-flung equipment virtually, businesses听听digital twins 鈥 in lieu of natural eyesight 鈥 to inspect these assets from afar. Such cloud-based asset intelligence networks aid the operations not only of energy companies, but of rural health clinics, security firms, and even soft drink purveyors. Think of all the distributed vending machines requiring replenishment.

But how, devoid of light, do the creepiest, crawliest critters inhabiting the deep sea manage to ascertain their surroundings? How do they gather reliable, actionable intelligence on 鈥渁sset鈥 and threat, friend and foe, near and far? Consider the tripod fish, which elegantly听听atop narrow, leg-like fins, poised to sense distant vibrations from potential prey. The beaked whale, meanwhile,听听echolocation, not unlike bats and submarines. By emitting short, high-frequency clicking sounds and waiting for them to bounce back, these mammals develop an acute awareness of their surroundings, often to the peril of less sensitive beasts who become breakfast. The vampire squid, meanwhile,听听bioluminescent fluid to lure hungry, if unsuspecting, targets. For their part, sharks and stingrays听听electric currents to map their surroundings and navigate using the Earth鈥檚 magnetic field.

As the听Endurance听shipwreck-turned-aquarium makes vivid, the abyss of the icy sea imposes formidable obstacles to survival in an environment prone to volatility and unforgiving to the unadaptable. Yet nature has innovated surprisingly durable solutions for illuminating the fundamental biological processes that nourish sprawling ecosystems undersea. The cloud does much the same for networks of businesses engaged in commerce amid drier, if similarly disruptive, conditions. In fact, the cloud and the ocean are beginning to converge on an increasingly sustainable future for all the Earth鈥檚 inhabitants. The visibility made possible by cloud-based networks holds the potential to听significantly reduce听the volume of plastics cluttering the sea and encumbering the creatures great and small who call it home. As digital technologies give rise to sustainable solutions, resilient ecosystems thrive even in the darkest corners on Earth.


Andreas Heckmann is executive vice president, Product Engineering, and head of Customer Solution Support & Innovation at 麻豆原创.
Top image: Falklands Maritime Heritage Trust/National Geographic.
This article was originally published on the global 麻豆原创 News Center.

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Accelerating Digital Transformation through RISE with 麻豆原创 and Integrated Business Networks /sea/2022/03/accelerating-digital-transformation-through-rise-with-sap-and-integrated-business-networks/ Wed, 02 Mar 2022 05:40:40 +0000 /sea/?p=2710 To get ahead of rapid shifts in the marketplace, businesses are turning to the cloud.

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Even after two years of successive lockdowns and variants,听COVID-19听continues to endanger supply chains, congest seaports, and strain labor markets. The ongoing uncertainty has reinforced the need for organizations to see beyond the next disruption by embracing digital transformation.

To get ahead of rapid shifts in the marketplace, businesses are turning to the cloud, where increasingly integrated digital networks extend visibility and ensure resilience across their operations and those of their interconnected buyers and suppliers.

Offering flexibility, speed, security, and cost-effectiveness, the cloud continues to deliver undeniable value.听, 85% of enterprises will adopt a cloud-first strategy by 2025. Doing so allows them to turn their attention to the task of applying cloud-based technologies to run their business, rather than running the technologies themselves.

Growing margins and greater efficiencies are two of the benefits enterprises can enjoy through听, a comprehensive cloud offering that helps deliver a strategic approach to digital transformation. The package provides services and functionality to help businesses along their journey to becoming听.

RISE with 麻豆原创 enables companies to gain insights from across their operations and combine them with those from trading partners to help guide decisions. For example, consider your favorite online apparel retailer. While they may fulfill your order in-house, they will need to engage with an external logistics provider to deliver it.

This is why integrated business networks are so important. To become connected, intelligent enterprises, businesses need strong collaboration with trading partners and full visibility into supply chains to ensure agility and resilience.

听鈥 a cloud-based, integrated network of networks spanning procurement, asset management, supply chain, and logistics 鈥 provides immediate access and 360-degree visibility into one鈥檚 trading partners. Through a single digital connection, the network can replace messy one-to-one integrations with a tidy many-to-many, inter-company process flow. In doing so, it lends transparency and up-to-the-minute information across all buyers and suppliers, shippers, carriers, operators, and manufacturers so they may identify risks, plan for potential disruption, and collaborate toward innovation. 麻豆原创 Business Network helps make it possible to adjust operations as needed or pursue alternative sourcing in real time.

With these capabilities, the benefits can also be transferred to the customer, for example by providing visibility into their purchase from the time an order is placed to when the parcel arrives at the customer鈥檚 door. One of the many advantages of this level of transparency is that when the package is delayed, the retailer can alert the customer, ensuring the trusted relationship remains intact.

With the addition of the 麻豆原创 Business Network Starter Pack as part of RISE with 麻豆原创, customers can experience a networked ERP to aid their transition to the cloud and drive business transformation.

This enables customers to connect with their suppliers and trading partners from source to settlement through the networks鈥 procurement capabilities; connects their equipment suppliers and services providers to help ensure maximum uptime of critical assets on the production line through the networks鈥 asset intelligence capabilities; and allows customers to work with logistics providers to obtain the best shipping rates and track and trace products and materials using the networks鈥 logistics capabilities.

That鈥檚 the value of 麻豆原创 Business Network packaged as part of RISE with 麻豆原创: it enables organizations to future-proof their business, not only within their four walls but also beyond them, allowing customers to replace one-to-one connections and fragmented data-sharing with many-to-many collaborations and real-time data sharing.


This article was originally published on the global 麻豆原创 News Center.

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麻豆原创 Study Finds Procurement Is Vital to Manage Supply Chain Disruptions /sea/2021/12/sap-study-finds-procurement-is-vital-to-manage-supply-chain-disruptions/ Wed, 15 Dec 2021 08:01:44 +0000 /sea/?p=2547 WALLDORF听鈥 The study of U.S. supply chain professionals found that 90% say procurement has taken on greater responsibilities to address both supply chain and sustainability challenges.

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奥础尝尝顿翱搁贵听鈥斕(NYSE: 麻豆原创) today released听听that highlight the elevated role of procurement in navigating global supply chain disruptions.

The study of U.S. supply chain professionals conducted with Regina Corso Consulting found that 90% say procurement has taken on greater responsibilities to address both supply chain and sustainability challenges. With nearly half (49%) of supply chain professionals saying shortages and disruptions are keeping them up at night, this is a pivotal time to lean on the procurement function to alleviate these challenges.

鈥淪upply chain disruptions aren鈥檛 a new challenge, but they鈥檝e been dramatically compounded and lasting due to ongoing shortages and delays caused by the pandemic,鈥 said Etosha Thurman, Chief Marketing and Solutions Officer, Intelligent Spend and Business Network, 麻豆原创. 鈥淭o navigate these unpredictable circumstances, supply chain leaders must strategically leverage procurement to effectively manage supplier relationships, mitigate customer frustrations, control costs and ensure business resiliency.鈥

Top Challenges Keeping Supply Chain Professionals Awake at Night

Supply shortages and disruptions are not the only issues that the surveyed supply chain professionals say they face today. Other areas include:

  • Sustainability (28%)
  • Reducing costs and/or saving money (27%)
  • Consumer feedback (21%)
  • Digital transformation (20%)
  • Regulatory compliance (18%)

Despite only 28% of respondents saying sustainability keeps them up at night, 91% say their company has specific sustainability goals or objectives, and 95% say procurement plays a significant role in achieving those sustainability goals.

The Elevation of Procurement in Mitigating the Impacts of Ongoing Supply Chain Problems

Between the global pandemic, labor and supply shortages and increasing consumer demands for sustainability, the supply chain professionals surveyed agree that procurement has taken on a more strategic role to help mitigate key challenges:

  • 50% say procurement is helping alleviate supply chain challenges by improving supply chain transparency.
  • 48% say it is helping develop better relationships with suppliers.
  • 45% say it is helping diversify suppliers for greater resiliency.
  • 33% say it is helping adapt payment terms to improve trading partner liquidity.
  • 21% say it is helping reskill talent to address higher-level business priorities.

The study shows that procurement is helping businesses achieve visibility, transparency and accountability with their suppliers, especially when it comes to potential disruptions, enabling them to pivot quickly to new suppliers and ensure continuity.

The Consumers鈥 Role in Easing Supply Chain Shortages

Supply chain professionals surveyed say consumers have a part to play as well in easing the challenge of supply chain disruptions:

  • 54% say consumers should allow more time for fulfillment.
  • 46% say consumers should buy more local goods and order items earlier.
  • 33% say consumers should be willing to pay more to account for higher supply chain costs.
  • 32% say consumers should have more empathy and understanding for the delays.

The research study was conducted between October 15 and 25, 2021, on a sample of 210 U.S.-based employees who work in the supply chain at companies with at least 500 employees.

鈥淚f postpandemic supply chains are to be resilient, they must be sustainable. It鈥檚 not enough to just track and extoll green virtues, sustainability must become part of the way that supply chains are run,鈥 said Simon Ellis, Program VP, IDC. 鈥淥n the other end, the growth of e-commerce and consumer expectations for 鈥榥ext day鈥 delivery often runs counter to sustainable fulfillment and carbon footprint. There will have to be a rebalancing or rationalization about the way that people consume: 鈥榙o I really need the product the next day?鈥欌

Visit the听麻豆原创 News Center. Follow 麻豆原创 on Twitter at听. This originally appeared on the global 麻豆原创 News Center.

Media Contacts:
Kelly Sheldon Murray, +1 (978) 708-6821,听kelly.murray@sap.com,听贰罢
Geraldine Lim, +1 (415) 418-0945,听geraldine.lim@sap.com, PT
麻豆原创 麻豆原创 Room;听press@sap.com

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Shop Now or Forever Hold Your Peace: Supply Chain Frustrations Accelerating Holiday Sales /sea/2021/11/shop-now-or-forever-hold-your-peace-supply-chain-frustrations-accelerating-holiday-sales/ Tue, 30 Nov 2021 07:40:15 +0000 /sea/?p=2487 Holiday shopping is in full swing 鈥 at least for the consumers paying attention to supply chain trends.

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Holiday shopping is in full swing 鈥 at least for the consumers paying attention to supply chain trends.

Those of us in the听supply chain听industry understand that disruptions have persisted since March 2020. This has created a mainstream perception of supply chains as increasingly volatile, expensive, and unreliable 鈥 but disruption has been more of an intermittent and confusing frustration for most in 2021, instead of the panic-buying and supply-hoarding catalyst it was in 2020.

Going into the holiday season, some industry insiders are fearful that these disruptions will hit hard again. Supply chain disruptions are forcing companies to think twice about the timing of their holiday sales, and many retailers are warning consumers to get their holiday shopping done early this year to avoid shortages and shipping delays. In fact, many retailers such as Amazon and Target announced their holiday deals much earlier than usual this year, having started in early October rather than late November. Leaving the majority of holiday shopping to Black Friday weekend could lead to many consumers being sorely disappointed with bare shelves, empty online shopping carts, and delayed deliveries.

With persistent challenges in procurement and the supply chain, 麻豆原创 surveyed 1,000 American adults to help better understand how they view the latest supply disruptions and their sentiment around the industry overall. Some interesting findings surfaced:

  • Frustration is growing as holiday supply chain challenges loom.
    Almost half of consumers (49%) experienced longer ship times during the听听pandemic, and 42% expressed frustration with how companies are managing their supply chains. The majority of consumers (83%) also reported experiencing out-of-stock items during the pandemic. Patience is wearing thin, as nearly two-thirds (65%) think companies should have found solutions to supply chain challenges by now.
  • Baby boomers have high expectations for gift availability and delivery while millennials and Generation Zers are more skeptical.
    Eighty-one percent of baby boomers expect holiday gifts to be available and in stock, compared to 75% of millennials and 60% from Gen Z. Furthermore, 78% of boomers expect gifts to arrive on time, while 63% of millennials and just over half of Gen Z respondents (54%) said the same. Overall, one-third of consumers are planning for the worst, expecting that gifts will听苍辞迟听arrive in time for the holidays this year. Having the visibility in place to inform consumers of product availability and delivery timeline is crucial to avoiding disappointment this holiday season.
  • Most consumers are forgiving of supply chain mishaps, but not right away.
    One in 10 consumers say that if a gift they purchase does not arrive on time for the holidays, they would never shop at that retailer again. Another 47% noted that they would not shop with that retail company again immediately, but that they may in the future. No matter how or why it happens, supply chain disruptions hurt brand loyalty among customers.
  • Delivering gifts on time is not the only factor brands need to consider.
    Sustainability continues to play a bigger role in consumers鈥 buying decisions, even when it comes to holiday gifts. This is particularly true among younger consumers, as half of millennials said sustainability influences their gift purchasing decisions. Overall, 39% said they purchase from brands that tout sustainability, while 30% prioritize sustainable practices when making purchases, such as selecting slower shipping to combine packages and reduce waste. Brands can promote sustainability through their own procurement practices by ensuring the products and materials sourced are done so in a sustainable manner 鈥 from limiting carbon footprint to sourcing recycled/recyclable materials.

After last year鈥檚 chaotic holiday season that had more consumers buying online than ever before, proactive businesses and consumers are adapting their approach this season, especially with ongoing disruption anticipated this year.

For consumers, as of early October, almost a third (29%) had already changed at least one gift purchase based on supply chain shortages, and only 24% of total respondents expressed that they do not plan to shift their buying behaviors this holiday season. Almost half (45%) are buying earlier, and 44% are buying more online. Millennials are changing their plans the most, with 55% buying earlier than in previous years.

For businesses, agility and visibility are the name of the game. We have all experienced so much disruption from all angles recently, and there鈥檚 no going back to 鈥渘ormal鈥 as consumers 鈥 and businesses 鈥 continue to change buying behaviors.

Businesses need to broaden visibility not only across their own operations but across those of their trading partners as well, with the dual objectives of听. To achieve this level of transparency, businesses are turning to听听to capture the widest possible view into the interconnected operations of their trading partners from buyers and suppliers to partners in logistics, finance, and contingent labor. Meanwhile, these digital networks 鈥 previously discrete according to function 鈥 are beginning to converge through cloud-based applications, unlocking exponential value in the process.

Consumers and businesses alike have been burned by supply chain issues and shortages during the pandemic, but with the right approach to this holiday season, we can still make it a merry one.


This originally appeared on the global 麻豆原创 News Center.

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Southeast Asia鈥檚 Sustainable Growth Hangs in Balance If Future Food Security and Food Wastage Left Unaddressed /sea/2021/11/southeast-asias-sustainable-growth-hangs-in-balance-if-future-food-security-and-food-wastage-left-unaddressed/ Mon, 29 Nov 2021 06:28:26 +0000 /sea/?p=2477 SINGAPORE听鈥 The region鈥檚 future food security challenges could be a hindrance to the development of its sustainable growth ambitions.

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SINGAPORESoutheast Asia鈥檚 fast-growing population and increasing food demand, coupled with escalating adverse weather and supply chain events, highlights the region鈥檚 future food security challenges that could be a hindrance to the development of its sustainable growth ambitions.

Image: Fireside chat with President and Managing Director Verena Siow, 麻豆原创 Southeast Asia, Leonardo Rabelo, Chief Financial Officer, Dole Asia Holdings and Nguyen Duy Thuan, Chief Executive Officer Loc Troi Group. Moderated by Simone Pigason, Head of Digital Supply Chain, 麻豆原创 Southeast Asia.

This was revealed at a recent event organized by titled 鈥楢 Growing ASEAN, A Hungry Population: Building Resilient and Sustainable Food Supply Chains鈥, which brought together business leaders across the region鈥檚 food ecosystem spanning agriculture, manufacturing, distribution, logistics 鈥 including , a worldwide leader and innovator in the production and marketing of high-quality packaged fruit and healthy snacks, and , a leading manufacturer and supplier of products and services in the field of agriculture with a sustainable value chain from research, production and sales of seed products, plant protection drugs, bio-organic products, rice and coffee.

Around a third of all food produced[1] 鈥 or 1.3 billion tons 鈥 is lost or wasted every year according to previous estimates by the Food and Agriculture Organization of the United Nations (FAO), also contributing 8-10% of global greenhouse gas emissions[2].

Experts and industry players cited the opportunities that lay ahead for Southeast Asia, among the world鈥檚 most productive agriculture regions, particularly on investing in driving high-tech agribusinesses, enhancing cross-industry collaborations, digitalizing, and building resiliency across food supply chains and other activities along the value chain to bolster the region鈥檚 food future.

Transforming Southeast Asia鈥檚 Food Production

Click to enlarge

Agriculture and food are key drivers for Southeast Asia鈥檚 economy and GDP, forming a substantial proportion of the region鈥檚 workforce.

Empowering food producers with the right tools to meet the growing demand for food and combating food wastage are critical for challenges in the region 鈥 areas where technology and digitalization play a critical role, according to Verena Siow, President & Managing Director, 麻豆原创 Southeast Asia.

鈥淎s a start, we need to better utilize the food we produce to minimize wastage. Food security and sustainability is more of a resource management challenge, where technology can be a change agent.鈥

鈥淕iven the diverse food industries across the region which spans from production to retail and restaurants, businesses need help in gaining better end-to-end oversight over their operations, forecast demand through big data to deliver food in a timely manner, and improve supply chain efficiency 鈥 all of which could greatly contribute to the reduction of food scarcity in a sustainable way鈥, added Siow.

Click to enlarge

Speaking at the fireside chat hosted by Siow, Leonardo Rabelo, Chief Financial Officer of Dole Asia Holdings, outlined the company鈥檚 efforts to elevate agriculture practices, ensuring better harvests for farmers yet also driving sustainable practices to mitigate food waste across its large operational footprint.

鈥淢inimalism is at the heart of our green habits in our journey towards zero food loss. Technology in Agriculture or Agtech is vital in shaping our progressive and proactive waste reduction agenda.听 The in-farm IoTs, phase tracking and听 end-to end digitalization will be the new super powers to enable us to improve our quality and overall product value like never before听 and听 remarkably reducing waste. For the remaining waste our direction is to focus on upcycling it. To cite few examples we make banana puree, frozen banana, etc.听 In Dole, the 鈥淎rt of possible鈥 and the magic of enthusiasm are our fruit-some way of achieving zero fruit waste,鈥 said Rabelo.

Digitalization Giving a Hand to Food Growers

As food demand continues to increase with population growth and a rising middle class, countries will need to look at ways to bolster domestic food security and boost local production, especially for import and export dependent nations in the region.

Fundamentally, greater technology and finance support is needed for farmers and food producers, to increase yields and have better real-time data of the health conditions of their crops, especially for regions vulnerable to climate change like the Mekong Delta 鈥 which accounts for nearly half of Vietnam鈥檚 rice production.

Nguyen Duy Thuan, Chief Executive Officer of Vietnam鈥檚 Loc Troi Group, was also part of the fireside chat along with Siow and Rabelo. He shared about the company鈥檚 pilot of the world鈥檚 first rice sustainability standard with rice farmers across the Mekong Delta, to develop a sustainable, high-quality value chain, and eventually market Sustainable Rice Platform (SRP)-certified rice both domestically and abroad.

鈥淭oday Loc Troi works with more than 200,000 rice farmers and aims at 1 million farmers in 2024, on top of an annual rice milling capacity of 6 million tonnes. We leverage our foundations in agricultural knowledge in developing new crop varieties and resource-saving farming methods, along with applying technologies like drones and hospital mobile apps to provide consultancies for rice and fruit farmers. We were a member of SATForRice, a program by the Netherland government, which used AI in spectrum analysis and soil interactions to forecast next year鈥檚 yield, pests, and diseases risks. Loc Troi is working with farmers to obtain crop planting area codes and traceability through QR codes to promote Vietnam鈥檚 agricultural products in international markets鈥, said Nguyen.

Loc Troi recently underwent a digital transformation journey with in 2020, which helped the group of companies standardize all processes to follow international best practices, improve planning capacity, and automatically track all activities across its business, and also maximize agriculture competitiveness and integrability.

Transparency, Visibility a Weak Link in Food Value Chain Resiliency

Click to enlarge

With greater internationalization of Southeast Asia鈥檚 food businesses, enabling a resilient and agile food value chain remains critical to drive future growth for the industry. This includes greater integration and collaboration across partners, along with digital supply chains that grant visibility across their partners鈥 operations and their own.

Click to enlarge

To accelerate the circular economy, 麻豆原创 has also announced the availability of , a solution for designing products sustainably to help businesses increase their measurement and data management capabilities. The new solution, now available across Southeast Asia, helps companies gain better visibility of material flows through their processes including tracking and complying with rapidly changing regulations, especially those concerning product packaging and plastics.

[1]

[2]

For more information, press only:
Darryn Lim, darryn.lim@sap.com
Omnicom PR Group for 麻豆原创, sng.sap.wg@omnicomprgroup.com
麻豆原创 麻豆原创 Room; press@sap.com

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The New Rules of Competition for Today鈥檚 Distributor /sea/2021/10/the-new-rules-of-competition-for-todays-distributor/ Sun, 24 Oct 2021 23:38:31 +0000 /sea/?p=2357 To stay relevant and competitive amidst all market conditions, distribution leaders need to rethink their business and operations strategies.

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It is common knowledge that every business experienced some form of unpredictable disruption over the last two years. Acting as the first responders in the logistics supply chain, this disruption threatened many wholesale distributors鈥 ability to provide essential goods to vital businesses, such as healthcare providers and grocery stores. To stay relevant and competitive amidst all market conditions, distribution leaders need to rethink their business and operations strategies.

During a recent online event, Distribution Strategy Group鈥檚 Founder and Senior Partner Ian Heller exposed five major sources of disruption for this vital industry:

  1. Workforce: The youngest generations (Generation Y and Generation Z) now make up approximately 70% of the total workforce. These generations are the most technically affluent, which means they expect to be connected on any device, anytime, anywhere, with easy-to-use applications.
  2. E-Commerce: E-commerce is no longer just about having a slick website. Today, distributors must have a strong technology foundation to deliver an easy-to-use, personalized, B2C-like purchasing experience for customers.
  3. Cybersecurity: The听COVID-19 pandemic听has underlined cybersecurity as a prevalent concern as new vulnerabilities arose due to employees working from home. Phishing and ransomware attacks have virtually exploded across every industry in the past few years.
  4. Cloud: To stay competitive, many distributors are moving their technology stack to the cloud to lower capital expenditures and enjoy a better margin advantage.
  5. Marketplaces: B2B buyers are turning to marketplaces for a one-stop shopping experience. Distributors that can successfully adopt a marketplace model will stand to deepen customer relationships and drive growth.

Heller shared that as an industry, distributors are still working out solutions to these challenges as they continue to adjust to the ever-evolving market challenges. Digital transformation continues to be an enabler of business models, allowing distributors to go from reactive, reporting on things that are happening, to proactive, anticipating the future and mitigating risks.

Magnus Meier, vice president and global head of the Wholesale Distribution Business Unit at 麻豆原创, went on to share that high-tech distributors have started to market themselves as solution aggregators to underline how committed they are to long-term customer relationships, taking care of the product and customer life cycle. In addition, digital transformation continues to play a significant role during the pandemic, specifically in operations. 鈥淒istributors that have a modern ERP system have data on hand, which gives them a significant advantage over their competitors,鈥 says Meier.

Using Services as a Differentiator

For distributors to successfully implement everything from business strategy to operations to customer experience, they first need to determine what is most important to their business. Competitive differentiators come in all shapes and sizes for wholesale distributors, be it a great service like replenishment of bins near the production line, dedicated jobs like delivery of materials, on-site safety training, or even simply having the most responsive, proactive salespeople. Aligning business priorities with competitive differentiators allows distributors to position their business model as not just indispensable to customers, but profitable.

The big players, by and large, are not great at services. Services almost always represent the introduction of variable costs into a business model. Traditionally, distributors have rolled the costs of services into the gross margin of products, but they have not monetized them or charged the cost back to customers. 鈥淚f distributors put a general manager in charge of services, one must treat it the way that a manufacturer treats new product development. Figure out how to monetize it with a P&L to build a business that鈥檚 much different and adds value for their customers,鈥 says Heller.

The technology that enables distributors to have the right level of visibility into their business starts with an enterprise resource planning (ERP) system, which is critical to transformation. Having the right processing system enables order-to-cash (O2C) and procure-to-pay (P2P) business processes, which are critical to operations. For many distributors, more than 50% of orders come through as e-mailed PDF or Excel files, creating a manual process for customer sales representatives to then enter the orders into proprietary systems.

Counterintuitive to what distributors assume, the number of manual orders received is increasing, not decreasing. To enable efficiency and resiliency, distributors must find a way to automate manual and redundant tasks and redirect that energy towards value-added efforts. 鈥淐onexiom can help process those orders with the same customer service expectations that a buyer experiences when placing an e-commerce order, a marketplace order, or any other type of digital order,鈥 says Erik Severinghaus, executive vice president of Business Development at Conexiom.

Preempting Issues within the Supply Chain

Whether it鈥檚 due to trade agreements, politics, or biological threats like pandemics, these is less predictability in the supply chain. A good example is what happened at the Suez Canal. The only way distributors can anticipate these issues is to have complete transparency and visibility across the supply chain, all the way through to the demand side. They need to leverage technology to gain the transparency to track which boxes are in which containers and on which ships. And if one of those ships goes astray, they need to be able to understand the implications and trigger follow-up processes to minimize disruption.

鈥淒istributors are operating at greater scale than ever before and it is essential that distributors overcome silos, talk to sellers to overcome those challenges, understand how their customers will be affected, and take mitigating action,鈥 says Meier.

Navigating the Talent Shortage

Every business is grappling with the talent shortage today. To attract the right talent, distributors need to invest in modern technology to bolster employee experience in the workplace. Distributors need to leverage intelligent technologies to automate routine tasks so employees can focus on more complex customer requirements. They need to provide collaboration tools between different teams to drive ongoing business alignment, openness for change, business agility, and improved collaboration between sales, marketing, and demand-planning teams. The distribution industry as a whole must challenge the way it has traditionally handled work-from-home policies, salaries, long-term incentives, and other benefits to make employees want to stay in this lesser-known B2B industry. 鈥淒istributors need to offer a competitive workplace environment, not just against other distributors, but against other industries,鈥 says Severinghaus.

Meier, Severinghaus, and Heller have a lot of commendable and proven advice on these topics. In this听, these speakers discuss the challenges facing distributors today and provide tangible guidance on how to prepare and respond to market disruptions.

This originally appeared on the global 麻豆原创 News Center.

The post The New Rules of Competition for Today鈥檚 Distributor appeared first on 麻豆原创 Southeast Asia News Center.

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