Inchcape Shipping Services (ISS)

Inchcape Shipping Services

Procurement with Purpose: Simon Potter’s Strategic Vision at Inchcape Shipping Services

In this Q&A, we delve into the strategic mind of Simon Potter, Chief Procurement Officer at Inchcape Shipping Services. Potter discusses how Inchcape’s procurement strategy has evolved to adapt to the dynamic maritime industry, emphasising the introduction of their global ship-chandling solution. He highlights the company’s commitment to sustainability and the integration of responsible sourcing practices. Potter also sheds light on Inchcape’s innovative ‘procurement-as-a-service’ model, which offers comprehensive value beyond cost savings, and how the company manages its extensive global supply chain. Through team collaboration and navigating market trends, Inchcape remains at the forefront of sustainable and innovative decking solutions in the maritime sector.

 

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Strategic Procurement Evolution: How has Inchcape’s procurement strategy evolved to meet the dynamic needs of the maritime industry, particularly with the global ship-chandling solution?

Inchcape’s procurement strategy has significantly transformed from its traditional roots of merely onboarding vendors. Particularly from a port agency standpoint, our role has expanded to being the vital eyes and ears on the ground for our clients. This evolution is crucial because our customers, often absent from the ports, rely on us to manage the myriad of operations occurring there. Ensuring these operations are executed promptly, safely, and cost-effectively falls under our purview. Our group’s procurement function has increasingly become adept at meeting our customers’ needs, thanks to the seasoned professionals we have in place and the expansion of our teams to ensure coverage not only at our headquarters but also in the regions we serve.

Our approach to procurement is centre-led, with specialists integrated within the business units yet maintaining a central reporting line to ensure a balance between autonomy and alignment with both customer and internal needs. This strategic blend of local autonomy within our operations is pivotal.

The introduction of our global ship chandling solution, dubbed “procurement as a service,” marks a significant advancement in our procurement strategy. This evolution stems from recognising the additional needs our customers have when their vessels are docked. By adopting a procurement-centric viewpoint, we’ve moved beyond traditional services to address common challenges like table spending and the lack of transparency in the ‘Last Mile’ of supply chains. Our global presence, coupled with a professional procurement and supply chain team, allows us to add substantial value to our clients’ operations, offering transparency, efficacy, and cost advantages over our competitors.

Sustainability also plays a critical role in our procurement strategy. We work closely with our clients to identify local sourcing solutions, moving away from the conventional practice of consolidating consumables and spares in major hubs. Our commitment to authenticity means we only deal in OEM spares, ensuring quality and reliability. Furthermore, our “warehousing on demand” service exemplifies our forward-thinking approach, accommodating the unpredictable trading patterns of vessels by leveraging our global network for strategic spare part storage. This adaptability extends across various sectors, with many of our offshore customers particularly benefiting from our ability to strategically source and supply locally.

 

Sustainability Leadership: As VP of Sustainability at IMPA, how do you integrate sustainable practices within Inchcape’s procurement processes, and what impact does this have on the industry?

In my dual capacity as CPO at Inchcape and my role within the International Marine Purchasing Association (IMPA), the drive towards sustainability is a significant part of our ethos. Inchcape’s commitment to sustainability is evident as we were pioneers in signing up for the IMPA ACT and subsequently for its updated version, ACT 2.0. Our dedication to sustainable practices is not just about adherence to standards; it’s about leading by example within the maritime industry.

Utilising the IMPA ACT toolbox has been instrumental in refining our procurement processes, allowing us to thoroughly scrutinise every aspect of our supply chain from a sustainability standpoint. This scrutiny is not only limited to compliance with human rights and UN conventions but extends to environmental considerations, such as emissions tracking.

For our clients, this means that when they dock at a port serviced by an Inchcape agent, we offer comprehensive support in monitoring emissions related to the core services we provide. This initiative is crucial for our clients, providing them with a detailed understanding of their emissions footprint within the port, encompassing Scope 1, 2, and 3 emissions. Our aim is to ensure that they have a holistic view of their environmental impact, including emissions from auxiliary services like tugs, launches, taxis, and hotels.

However, our commitment goes beyond tracking; it extends to educating our suppliers. Our observations suggest that approximately 30% of port suppliers are genuinely aware of what sustainability entails, and a similar percentage have set targets towards achieving net zero. As a global port agent with sustainability at our core, we believe it’s our responsibility to enlighten our supply base on the importance of supporting our clients’ sustainability goals.

This educational role synergises with our activities at IMPA, where we work closely with colleagues to promote sustainability within the industry. Our efforts are not just about compliance or meeting standards; they’re about fostering a culture of sustainability and responsibility across the maritime sector.

 

Procurement-as-a-Service: Can you elaborate on the concept of ‘procurement-as-a-service’ at Inchcape and how it delivers value beyond cost savings to your customers?

The essence of ‘procurement-as-a-service’ at Inchcape modernises the traditional ‘one-stop shop’ concept, providing a more comprehensive solution. Our clients, especially those operating container vessels with regular routes and suppliers, have a core list of needs when it comes to supplies and services at the ports they frequent. However, challenges arise when they need items or services beyond this core list, whether it’s spare parts, consumables, provisions, or other services. Finding vendors that meet the desired quality and price point outside their usual list can be difficult.

This is where our ‘procurement-as-a-service’ shines. With a global supply list exceeding 10,000 vetted suppliers across 60 countries, we offer our customers a reliable and extensive network. This service allows clients to approach us with specific needs in any port, confident in our ability to provide a solution that adheres to stringent quality and governance standards. While we may not always promise the lowest price, we ensure value through our rigorous vendor selection process, managed by our local teams on the ground. This approach guarantees that our customers benefit from the same level of governance and ethical standards they would expect from any port agency service, even if they don’t use Inchcape as their port agent.

Interestingly, over half of our ‘procurement-as-a-service’ clients do not utilise our port agency services, underscoring the standalone value of this offering. Even those with preferred agents opt for Inchcape’s procurement and logistics services to leverage our comprehensive governance framework and ethical policies, highlighting the distinct advantages and added value we bring to the table beyond mere cost savings.

Global Supply Chain Management: Managing a global supply chain presents unique challenges. How does Inchcape ensure reliability and efficiency across its vast network of ports and services?

Ensuring reliability and efficiency across Inchcape’s extensive network hinges on our adherence to strict governance, standardised processes, and unified policies. We operate under a centralised framework accessible to all employees, promoting consistent practices throughout the organisation. Leadership commitment plays a crucial role, with alignment from the CEO down, ensuring that everyone, from the board to the front lines, understands and follows our operational directives. This clarity and lean organisational structure facilitate a unified approach to service delivery.

Despite the inherent challenges of operating in diverse cultural and linguistic landscapes, particularly in regions like Asia Pacific, our long-standing focus on maintaining high standards has honed our ability to provide consistent service quality worldwide. We recognise that local conditions may necessitate tailored service delivery, but the core standard remains unwavering.

A vital component of our strategy is the meticulous onboarding and continuous assessment of our vendors. We conduct annual audits to ensure they meet our stringent requirements, maintaining high service standards irrespective of location. This rigorous vetting process is especially crucial for services involving the movement of people, where risk management is paramount for the safety of both our personnel and clients.

 

Team Dynamics: With a growing global Procurement and Supply Chain team, how do you foster collaboration and knowledge sharing among team members with diverse expertise?

Fostering collaboration and knowledge sharing within Inchcape’s diverse and global Procurement and Supply Chain team hinges on our foundational philosophy of open knowledge exchange. Recognising that no single individual holds all the answers, we place great emphasis on drawing insights and ideas from the entire team. A recent example of our collaborative approach was a gathering in Mumbai, where a significant portion of our team is based. This meeting facilitated a vibrant exchange of ideas and best practices, especially from our procurement support team, who possess a unique global perspective due to their centralised role.

Training sessions are a regular feature, aimed not only at skill enhancement but also at brainstorming improvements in our processes and methodologies. This continuous learning environment is underscored by our commitment to professional development, with many team members pursuing or encouraged to pursue CIPS qualifications, Six Sigma certifications, or advanced degrees.

Diversity in expertise is another pillar of our strategy. Our team in Mumbai, for example, benefits from the inclusion of individuals with backgrounds in mathematics and data analytics, enhancing our capability to deliver insightful data analysis and feedback to other departments. This analytical approach not only advances our procurement and risk management strategies but also propels sustainability initiatives, providing substantial non-price value to our clients.

Transparency with our customers is paramount, reflected in our practice of sharing original vendor invoices, ensuring they have clear visibility into the costs incurred. Our pursuit of competitive rates, balanced with a commitment to quality, underpins our promise of value. Moreover, our involvement in innovative projects, like the launch of the first purely electric launch in Singapore, exemplifies our dedication to sustainability and innovation. These initiatives not only reduce carbon footprints but also align with our customers’ sustainability goals, illustrating our role in driving the industry forward through innovative and sustainable solutions.

 

Chandling Service Expansion: The expansion of Inchcape’s chandling operations into strategic ports is a significant development. What criteria do you use to select these locations, and how do you tailor services to meet local demands?

The selection of strategic ports for the expansion of Inchcape’s chandling operations often begins with customer inquiries. Having an approved vendor list in various locations allows us to swiftly provide solutions, but the challenge lies in effectively communicating our capabilities to customers, ensuring they understand the breadth of services we offer.

Traditionally, port agents have provided chandling services on an ad-hoc basis, responding to last-minute requests from ships as they arrive. Our approach with the chandling solution, or ‘procurement as a service’, is to make this process more systematic, involving ourselves in the planned ordering of spares and stores rather than solely catering to emergency needs. This not only assists ships in port but also aids in preemptive planning, especially when vessels change course unexpectedly and require support in unfamiliar locations.

The selection of ports and tailoring of services hinge on understanding the diverse challenges our customers face. These challenges can vary widely, influenced by factors such as the size of the customer’s purchasing team, the number of contracts they manage, and the regularity with which they visit certain ports. We have identified around 60 ports that see regular activity from our clients, which have become focal points for our services. While sourcing a chandler in major ports like Singapore, Houston, or Rotterdam might be straightforward, our strength lies in providing reliable services outside these hubs, where finding quality support can be more challenging. Despite this, we’re also seeing increased demand in these major ports, highlighting our comprehensive capabilities and the trust clients place in our services.

Global Sustainability Strategy: Inchcape’s commitment to sustainability is commendable. How do you measure the effectiveness of your sustainability initiatives, and what are the key performance indicators?

At Inchcape, the foundation of our sustainability strategy is encapsulated in our code of conduct and, more specifically, our Supplier Code of Conduct. This sets the minimum standards we expect not only from our vendors but also from our partner agents globally. Given that we don’t operate in every location directly, it’s imperative that our representatives uphold the same sustainability standards as we do.

Measuring the effectiveness of these initiatives often presents challenges, as mere compliance on paper doesn’t necessarily equate to real-world application. To address this, we invest considerable effort in auditing and assessing our key vendors worldwide, ensuring they not only commit to our standards but actively embody them in their operations.

One of our primary Key Performance Indicators (KPIs) is the adherence to our business and supply codes of conduct, which reflect our sustainability and procurement expectations. Regular visits to our key vendors form another crucial part of our strategy, enabling us to conduct toolbox talks and demonstrate visible, felt leadership. These interactions are instrumental in conveying our values and ensuring that our sustainability standards are more than just a checklist, but a lived experience across our supply chain.

 

IMPA Act 2.0 and Industry Collaboration: How does IMPA Act 2.0 facilitate collaboration within the maritime industry, and what role does Inchcape play in promoting industry-wide sustainability through this initiative?

IMPA Act 2.0 primarily fosters collaboration between customers and their supplier networks within the maritime industry. While its direct influence on customer-to-customer collaboration may be less apparent, the initiative serves as a crucial bridge in aligning ship owners, managers, and their vendors on sustainability practices. Many industry stakeholders, often uncertain about how to approach sustainability, have found IMPA Act 2.0 to be an invaluable resource. The Act provides a comprehensive toolbox designed to navigate the complexities of sustainability in an industry traditionally characterised by analog processes.

This toolbox has become a pivotal platform for dialogue, enabling suppliers and customers to ensure mutual understanding and alignment, especially as regulatory pressures on sustainability intensify. For example, the focus on maintaining an inventory of hazardous materials is one of the many areas where IMPA Act 2.0 has raised awareness and facilitated industry-wide compliance and best practices.

Inchcape, aligning with the principles of IMPA Act 2.0, plays a significant role in promoting sustainability within the maritime sector. Our involvement goes beyond compliance; we actively engage with both our suppliers and customers to ensure a cohesive approach to sustainability. By advocating for and adhering to the guidelines and frameworks provided by initiatives like IMPA Act 2.0, Inchcape aims to lead by example, encouraging a more sustainable and environmentally responsible maritime industry.

 

Procurement Disruption and Innovation: You mentioned the maritime industry’s need for disruption and change in procurement. What innovative approaches is Inchcape implementing to lead this transformation?

While I must be cautious about divulging too much, I can share that Inchcape is actively engaging with technology disruptors to explore innovative procurement solutions. Our focus isn’t just on adopting new technologies for the sake of innovation; it’s about critically evaluating these advancements to enhance our procurement and purchasing strategies fundamentally.

A key area of innovation for us lies in managing costs and logistics beyond the major ports. It’s relatively straightforward to find chandling services in hubs like Rotterdam, Houston, or Singapore. However, the real challenge—and our differentiator—comes in providing cost-effective, efficient services in smaller or less frequented ports. Here, Inchcape stands out by not only offering procurement services but also overseeing the crucial ‘last mile’ delivery directly to the vessel, eliminating the need for intermediaries.

My background in chandling and subsequent experience with shipping owners like Maersk has highlighted the importance of transparency and efficiency in the procurement process. Traditionally, the visibility of an order diminishes once it reaches a local agent or airport, leaving purchasers in the dark until the goods are received on board. Inchcape aims to revolutionise this aspect by ensuring continuous transparency about the costs and status of orders, from procurement to delivery. Our approach provides a clear picture of the total cost of acquisition, including all logistics expenses, to the purchasing team ashore. This level of transparency and efficiency in managing the procurement and delivery process is central to our innovative strategy in transforming maritime procurement.

 

Personal Inspiration and Industry Passion: Having transitioned from various roles within the maritime sector to your current position at Inchcape, what aspects of your job inspire you the most, and how do you maintain your passion for the industry?

The greatest source of inspiration for me is the opportunity to work for a global entity like Inchcape, which allows me to engage with diverse cultures and people from different parts of the world. The chance to visit and interact with colleagues and customers globally is genuinely one of the job’s highlights. This exposure to varied cultures and business practices enriches my understanding and appreciation of the maritime sector.

Another aspect that fuels my passion is the emphasis Inchcape places on ethical governance and standards. It’s one thing to profess a commitment to strict ethics and codes, but at Inchcape, we truly embody these principles. The role of a Chief Procurement Officer (CPO) is rare in the supplier side of our industry, highlighting the value Inchcape places on procurement as a critical function. This contrasts with many sectors where procurement is undervalued.

My role at Inchcape transcends traditional procurement functions like contract management and cost-saving. It encompasses driving value through maximising supplier relationships, maintaining service standards, fostering innovation, and spearheading sustainability and ESG initiatives. Our procurement department operates with a commercial mindset, actively engaging with customers to manage risks and enhance the supply chain they depend on through us.

I find that customers appreciate engaging with procurement professionals who understand their challenges. Being able to sit down with a counterpart and discuss solutions beyond the usual sales pitch not only breaks down barriers but also adds substantial value. This direct approach allows us to address their needs more effectively, showcasing Inchcape’s commitment to driving change and delivering results in the maritime industry.

 

 

BW LPG

BW LPG Article Feature

Procurement Excellence in the Maritime Industry: Insights from Rick Ackermann at BW LPG

Rick Ackermann, Head of Procurement at BW LPG, brings a wealth of experience and strategic vision to the table, steering the procurement department of one of the leading LPG shipping companies. In this exclusive interview, Rick shares his approach to enhancing procurement efficiency, integrating sustainability, and navigating the complexities of the global market. Discover his insights on building supplier relationships, leveraging technology, and the future trends poised to reshape the procurement landscape in the maritime industry. Join us as Rick delves into the principles that guide his leadership and the innovative initiatives driving BW LPG’s procurement success.

 

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Role Overview: Could you describe your role as the Head of Procurement at BW LPG and the primary responsibilities it entails?

 

At BW LPG, the Head of Procurement is responsible for all procurement of goods and services, as well as being involved in all dry dockings. We have a team of four buyers and a Logistics Coordinator in Manila, and two buyers in Oslo. The Head of Procurement is stationed in Singapore. The main goal is to be a solid business partner for the business, which entails working closely with the Technical and Operations teams. Key activities include contract management, inventory management, innovation, ESG, and maintaining best-in-class procurement practices to provide the highest added value for BW LPG.

Strategic Procurement Initiatives: What are the key strategic initiatives you have implemented in BW LPG’s procurement practices since assuming your role?

 

Short and sweet:

  • Value Chain: From day one, I have moved the role of Procurement higher up the value chain. The traditional view of Procurement has changed from a Purchasing department into a strategic business partner.
  • Transparency: In the past, it wasn’t always clear what Procurement did and what people could expect from our department. I have changed our procedures and setup in such a way that it is very transparent on every level. I also changed the perception that Procurement is a group of people taking care of things. We are all part of the Procurement process.
  • Contract Management: We purchased a very intuitive contract management system (Scanmarket), which is easily accessible and currently contains over 170 contracts that we have in place.
  • ESG: I have invested a lot of effort into ESG in our supply chain. This varies from introducing the Supplier Code of Ethics in all of our agreements and purchase orders to plastics reduction programs on board our vessels.
  • Group Procurement: I started a collaboration team with the Heads of Procurement of the other BW entities. Procurement has transformed from a central procurement department in Oslo to a decentralised setup around the world. By collaborating on volumes, best practices, and innovation, we have migrated into a hybrid solution.

Challenges in Procurement: What are the most significant challenges you face in procurement for an LPG shipping company, and how do you address them?

From a procurement perspective, we would like to be as efficient as possible. Planning of transports is very challenging in our industry, as the port of delivery for our goods and services is sometimes changing on a daily basis. Unfortunately, this means that we have to airfreight a lot of our spare parts, which has a negative impact on our carbon footprint.

Another challenge everybody faces in shipping, which makes it more fun at the same time, is that this is a very conservative industry. As a standard, the credo is “if it ain’t broke, don’t fix it!” This means that driving innovation is upstream, and solutions found in other industries still have to be introduced in shipping. The fun part is convincing people and the fact that there is still room for improvement.

Supplier Relationships: How do you cultivate effective supplier relationships to ensure seamless operations and business continuity at BW LPG?

In order to do that, I still rely on the Kraljic matrix. It is a well-known tool to classify the importance of suppliers products and services, and is very effective when it comes to supplier positioning, criticality analysis, and quadrant strategy. As a basis, you should figure out what kind of relationship you have or need to have with a supplier or partner. You then make sure that you assign the right buyer to the right quadrant and thus supplier. Not doing this correctly could potentially damage the relationship and therefore our position. Setting this up in the right way tremendously influences our position and leverage. Above all, whatever you do and in whatever position you are in with regards to the supplier, respect is always the keyword.

Technology in Procurement: Can you discuss the role of technology in enhancing procurement efficiency and transparency at BW LPG?

Especially with regards to the operational part of the procurement process, there are some quick wins when it comes to the role of technology. As we digitise the purchasing role, we can introduce innovations and efficiency improvements. We are, for example, introducing Amazon-type platforms with certain suppliers for technical stores and PPE, such as Source 2 Sea, which makes it easier for the crew on board our vessels to simply click on the picture of the parts or equipment they need. Also benchmarking and forecasting through Closelink for Lube Oil is a new development which we embraced. The role of Procurement is to facilitate this – we can help organise the financial back office, monitor deviations, and take on the more mundane tasks so that our colleagues at sea can focus on the strategic issues and flawless operations. Another major step we are currently investigating is the introduction of new technology regarding inventory management. Together with one of our partners in freight forwarding, Marinetrans, we are developing an inventory management platform, eSeastore, that will give us the tools to plan based on stock levels and have sophisticated tools on board to maintain stock on the vessel. This is a very exciting project.

Sustainability Practices: How does BW LPG integrate sustainability into its procurement processes, especially considering the environmental impact of shipping?

We have the Supplier Code of Ethics as an integral part of everything we do. In addition to this, we are increasingly choosing sustainable solutions for parts and services in different regions of the world. There is a lot more work that we can do on the sustainability front, and we are working hard to improve both individually as a company, and with partners. One example of the latter would be us working with our suppliers to reduce single-use plastics in our victuals.

Impact of Global Markets: How do global economic conditions and market fluctuations impact your procurement strategies?

Obviously, they do, and they disrupt anything that we plan or forecast. I mean, who was counting on COVID-19? Or the political uncertainties in many parts of the world? The blockage of the Suez Canal? Drought at the Panama Canal, etc. The good thing is that we know we are very creative when it comes to problem-solving. Yes, we like to plan as much as possible, but we are agile and switch gears when necessary and required.

 

Future Procurement Trends: What emerging trends do you see in procurement that could significantly impact the LPG shipping industry in the coming years?

From a leverage point of view, unfortunately, increasingly I see large companies buying out the smaller ones, which impacts our ability to leverage in certain parts of the supply chain. This is not a good development.

The two biggest trends, however, are undoubtedly in ESG and AI.

I strongly believe and hope that in a few years’ we will have surpassed the awareness phase of ESG and that there will be more regulation and certification, making it a lot easier for all companies to determine, on the basis of a standard, who to work with. ISO did the same thing for business processes in the 1980s.

Artificial Intelligence is an absolute game changer in any business. A lot of our repetitive activities will be taken over by AI, but also market analytics, supplier dashboards, forecasting, and reporting will be a lot easier and faster. Is this a threat to our procurement existence? Not at all, it simply means that we have more time for actual procurement activities instead of creating tools to help us do just that.

Empowering Procurement: Matt Wilkinson on Agility, Strategy, and Innovation

Matt Wilkinson Executive Insight

With over 25 years of progressive experience in supply chain management, Matt Wilkinson has navigated the complexities of both public and private sectors, demonstrating a remarkable ability to adapt procurement strategies to shifting market landscapes. As the Head of Procurement at Manitoba Hydro and the founder of S2P Inc., Matt combines his deep industry knowledge—from automotive to healthcare—with exceptional negotiation and analytical skills. His innovative approach to “Consumer Sector Procurement” underscores his commitment to empowering consumers in their purchasing decisions. In this interview, Matt shares his insights on the critical role of agility in procurement, the importance of strategic flexibility, and the development of innovative tools designed to streamline the procurement process. Join us as we explore how his leadership and entrepreneurial spirit are driving change in the supply chain landscape.

How do you adapt your procurement strategies to respond to changing market conditions?

Having worked mainly in Canada’s public sector, as well as in the UK automotive and Canadian agricultural manufacturing industries, I’ve seen firsthand how market conditions can drastically shift. In a fast-paced automotive environment, rapid changes in raw material prices and demand swings required quick adjustments in sourcing strategies to ensure production lines kept running. In contrast, public sector procurement in Canada, especially in healthcare and energy, demands a balance between agility and regulatory compliance. I continuously analyse market data, geopolitical factors, and currency fluctuations to adjust procurement tactics and ensure contract provisions are included to negotiate terms as required throughout the life of the contract.

Whether it’s locking in long-term agreements or sourcing domestically to minimise risk, my approach is grounded in strategic flexibility and adapting to local and global market forces. This allows me to make informed decisions and adjust strategies accordingly.

For instance, during periods of inflation or supply shortages, I may negotiate flexible contract terms with suppliers to lock in prices or ensure supply continuity. I also diversify my supplier base to mitigate risks and leverage technologies and data analytics to forecast demand and optimise inventory levels. My focus is always on being proactive rather than reactive, ensuring that my strategies are resilient enough to meet the evolving needs of the organisation.

By staying proactive, I can mitigate risks and keep costs controlled, allowing my procurement strategy to remain flexible and aligned with both market and business needs. Safety stocks are managed on a continuous basis to minimise any obsolescence and ensure cost-effective inventory levels.

Having a 2 year strategic contract plan for known procurements significantly helps to plan the procurement workload, and monthly meetings with key stakeholders and programs to gain insights into future procurements ensure that ebbs and flows are minimised. My father instilled his phrase, “Hindsight + Insight = Foresight” into me during my early teenage years, and this has been very useful throughout my Supply Chain and Procurement career for creating strategic visions and preparing for the future.

How has agility helped you overcome supply chain disruptions?

Agility has been crucial in navigating disruptions across the industries and continents I’ve faced throughout my career. During my time in the UK automotive industry with Omron Automotive Electronics, Kingswinford, when supply chains were disrupted by logistical issues or sudden demand spikes, I learned the importance of diversifying suppliers and building redundancy into the system.

Whether due to geopolitical issues, natural disasters, or pandemics, being agile means having the ability to pivot quickly when disruptions occur.

In Canada’s public sector, particularly during a pandemic, healthcare supply chains became heavily strained. My team and I had to quickly source PPE and medical supplies from non-traditional suppliers while ensuring compliance with government regulations.

In my role as Chief of Logistics for the Regional Incident Command Team with Southern Health, Manitoba, for H1N1 vaccinations, the Medical Officer of Health made me an Honorary Public Health Professional for my recommendation to utilise mobile clinics to help manage the vaccination shortages. Approximately 85% of the population within the health region was vaccinated.

Being agile allowed us to pivot quickly, ensuring critical supplies were delivered where and when they were needed most. I also prioritise a decentralised supply chain model, which helps spread risk and enables faster recovery when one part of the chain experiences issues. In such scenarios, it’s important to have strong relationships with key suppliers based on trust and transparency, which allow for immediate solutions, ensuring business continuity.

When global shipping routes were disrupted by the pandemic, I quickly shifted to local suppliers and utilised air freight when necessary to avoid production delays. This ability to act fast, combined with maintaining open lines of communication with suppliers and customers, allowed me to minimise downtime.

I believe that an agile supply chain is one that can respond swiftly to external shocks, such as natural disasters or regulatory changes, with minimal disruption to business operations.

What strategies do you use to maintain flexibility while ensuring cost-effectiveness?

In both the private and public sectors, flexibility and cost-effectiveness can seem at odds, but I’ve learned how to strike a balance. In the automotive industry, I focused on just-in-time procurement and strategic sourcing partnerships to minimise inventory costs while maintaining supply flexibility. In Canada’s public sector, the focus is on building flexibility into long-term contracts that provide stability but include clauses for volume adjustments, price renegotiations, currency fluctuations, and alternative delivery schedules.

By working closely with suppliers and leveraging internal data analytics to forecast needs, I can negotiate terms that offer the flexibility to adapt to changes while keeping costs under control.

Maintaining flexibility without compromising cost-effectiveness is a delicate balance, but it allows me to reduce inventory holding costs while maintaining flexibility in responding to demand fluctuations. Using data-driven insights and predictive analytics also helps me optimise purchasing decisions, ensuring that procurement activities are both lean and adaptable to changing market conditions.

How do you balance agility with long-term supplier relationships?

Balancing agility with long-term supplier relationships is about building trust and maintaining open, clear communication. In the UK, the automotive sector moves fast, so I developed relationships with suppliers that allowed for flexibility without jeopardising long-term agreements. In Canada’s public sector, especially in healthcare and energy, long-term partnerships are critical for ensuring supply stability.

I work closely with suppliers to build collaborative strategies and business relationships based on integrity and ethical practice. It is important to have clear visibility of suppliers’ own supply chains as far back as the raw material level, so that when there is an interruption, having clear visibility allows us to see where interruptions occur and enables us to make informed decisions to stay the course or pivot and find a solution to fill any gaps in supply.

On many occasions, I have also helped suppliers with their supply chain challenges to ensure they maintain supply to our organisation and cost predictability. I emphasise building relationships that are collaborative rather than transactional.

By maintaining open lines of communication, suppliers are more likely to offer flexibility in response to changes. I also diversify my supplier base while ensuring that I nurture key partnerships. In some cases, I’ll negotiate with long-term suppliers for contingency plans that provide flexibility during volatile periods.

Keeping a mix of long-standing partners and exploring new relationships can maintain agility while securing the benefits of stability and trust that come with long-term arrangements. By establishing mutual goals and creating contingency plans, we can respond quickly to changes without sacrificing the long-term partnership.

In return, suppliers often provide priority access to materials or services during shortages. I ensure that while we focus on maintaining an agile supply chain,our strategic suppliers still feel valued and are aligned with our long-term vision.

Can you share an example of how procurement agility helped your organisation?

In early 2019, I completed my MBA that focused on Supply Chain Management, which was ideal to help set agricultural manufacturer Vaderstad, Saskatchewan, up for success. My final project was titled “Supply Chain Optimization Empowering Global Expansion” and focused on agility, globalisation, and risk management.

Shortly after starting with Vaderstad in June 2020, I was able to reduce part shortages from four A4 pages down to none, and from late 2020 into 2021, there were no production line stoppages, which was a major success story given the market conditions and disruptions at the time. This enabled the organisation to quickly increase its production volume and, in turn, helped increase revenue by over 120%, while gaining significant market share from its main competitors, who had experienced supply chain disruptions.

I also worked closely with our logistics team to expedite shipments and minimise downtime. By leveraging my global supplier network and remaining flexible in my sourcing strategies, I was able to prevent costly production halts, maintain delivery schedules, and meet customer demand. This approach saved costs and also strengthened relationships with both suppliers and internal stakeholders.

Not only did we keep our production lines running, but we also improved our relationships with newer suppliers, creating additional sourcing channels that strengthened our supply chain resilience for the future.

Sea Steward

Enhancing Maritime Operations: Paul Westerman on Streamlining Ship Provisioning with Sea Steward’s New App

In the fast-paced world of maritime operations, efficiency and precision are critical. Managing provisions, monitoring stock levels, and generating accurate reports can be daunting tasks for both on-board crews and office staff. Recognizing these challenges, Sea Steward Limited has developed a groundbreaking app to transform ship provisioning and inventory management. Co-founder Paul Westerman shares how this innovative tool is set to streamline the maritime industry, making operations smoother, more efficient, and cost-effective. Importantly, this app is available to all ship managers and owners on a subscription basis, regardless of whether they have a catering contract with Sea Steward or any other provider.

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A Seamless Solution for Crew and Office Staff

Sea Steward’s app is designed to streamline provisioning processes and simplify inventory management for both on-board teams and office personnel. In this interview, Paul explains how the app is reshaping how shipping companies manage their daily operations. “The app’s goal is to provide an all-in-one solution for maritime provisioning, eliminating the complexities of manual systems and reducing the risk of human error,” he says. “It allows crews and managers to focus on their core responsibilities, knowing that provisioning is taken care of efficiently.”

Streamlining Provision Requests

One of the standout features of the app is its provision request system. Crew members can easily submit requests for supplies through the app, ensuring that all necessary provisions are ordered on time. “This feature helps avoid shortages or delays, which are critical in maritime operations,” Paul explains. The app’s intuitive design allows users to create and submit requests with just a few taps, improving speed, accuracy, and communication between ship and shore.

Real-Time Stock Monitoring

Another key benefit of the app is real-time stock monitoring, giving both on-board crews and office staff a clear overview of current inventory levels. “Keeping track of stock is crucial, especially in maritime where overstocking or understocking can lead to significant operational disruptions,” says Paul. The real-time updates ensure any changes in stock are instantly reflected, enabling swift and efficient management decisions.

Comprehensive Inventory Reports

Gone are the days of manually compiling inventory reports. The app automatically generates full-month inventory reports, offering a comprehensive view of all provisions used, remaining stock, and any discrepancies. “These reports are not only accurate but also customisable to meet specific needs,” Paul explains. Whether for internal reviews or regulatory compliance, the app provides essential tools for efficient inventory management.

Calculating Victualling Rates Made Easy

Managing victualling rates is a crucial component of maritime operations, and the app includes a powerful victualling rate calculator. This feature simplifies the process of determining daily costs per crew member, providing transparency into provisioning budgets. “By offering a clear picture of victualling expenses, the app helps shipping companies better manage their budgets,” Paul highlights.

Available to All Ship Managers and Owners

An important feature of Sea Steward’s app is its availability to all ship managers and owners, not just those who have a catering contract with Sea Steward or any other provider. Paul explains, “This app is designed to be universally accessible, with a monthly or yearly subscription, ensuring that any ship can benefit from its features without the need for a specific catering agreement.”

Beyond Basics: A Comprehensive Solution

While its core features are impressive, the app is designed as a comprehensive solution for modern maritime provisioning. From detailed analytics and forecasting tools to seamless integration with existing systems, it caters to the full range of operational needs. Additional features include multi-language support, offline capabilities for at-sea usage, and secure data storage. “The app is versatile and reliable, designed to adapt to various maritime environments,” says Paul.

Sustainability Built In

Beyond improving efficiency, the app also plays a part in sustainability initiatives. With features that track and reduce food waste through portion control and inventory optimisation, it supports vessels in minimising their environmental footprint. “Sustainability is a core focus for us,” Paul notes. “This app helps shipping companies be more conscious of their resources while still maintaining top-tier operations.”

Final Thoughts

In an industry where precision and efficiency are key, Sea Steward’s app offers a transformative approach to managing ship provisions, stock levels, and victualling rates. With its robust features, real-time capabilities, and user-friendly design, it’s poised to become an indispensable tool for maritime professionals. As Paul Westerman concludes, “This app ensures that both crew and office staff can focus on what they do best—keeping ships sailing smoothly.”

SSAB and Alstom Pioneer in Fossil Emission-Free Steel Initiative

SSAB and Alstom Pioneer in Fossil Emission-Free Steel Initiative

In an ambitious stride toward environmental sustainability, SSAB has teamed up with Alstom to introduce fossil emission-free steel into the rail transport sector. This collaboration, utilising SSAB’s pioneering SSAB Zero™ steel, positions Alstom to incorporate this sustainable material into its forthcoming Traxx Shunter™ locomotives, which is a significant advancement towards their aim of reducing emissions by 30% by 2030.

The move aligns with the global shift towards more sustainable industrial practices, especially in sectors like transportation, which have traditionally been heavily dependent on fossil fuels. The introduction of fossil-free steel by SSAB and its adoption by Alstom not only reflects their commitment to innovative, sustainable solutions but also sets a new standard for the industry at large.

Strategic Implications and Industry Impact

Christophe Gourlay, Alstom’s Chief Procurement Officer, highlights the partnership as a strategic alignment with their sustainability goals. “Our collaboration with SSAB represents a pivotal move towards transforming how key materials are sourced and used in our manufacturing processes,” Gourlay notes. He emphasises that Alstom’s commitment to sustainability is at the core of their operations and that working with SSAB allows them to leverage breakthrough technologies to minimise their ecological footprint.

The partnership also underscores a significant industry trend towards decarbonisation. SSAB’s production process for the SSAB Zero™ steel involves a revolutionary technique that utilises hydrogen instead of coal, significantly reducing carbon emissions. This method not only benefits the environment but also enhances the steel’s quality and durability, making it ideal for the high demands of railway infrastructure.

Technical Advancements and Future Prospects

The technical aspect of producing fossil emission-free steel is complex and involves advanced material science and engineering. SSAB has invested heavily in research and development to ensure that the quality of steel remains uncompromised while removing carbon-intensive processes from its production. This involves the use of hydrogen in direct reduction of iron ore, a method that has been pivotal in achieving their fossil-free steel goals.

Looking ahead, both SSAB and Alstom see this partnership as just the beginning of a broader transformation within the industry. They are exploring further applications of fossil emission-free steel in other models of locomotives and potentially expanding its use to other products within Alstom’s portfolio. The broader goal is to catalyse change across the transportation sector, encouraging other companies to adopt more sustainable practices.

Economic and Regulatory Considerations

The economic implications of this shift are also significant. As global regulations on emissions tighten and the demand for sustainable materials increases, companies like SSAB and Alstom are well-positioned to benefit from early investments in green technology. Additionally, this move could potentially influence global trade policies and encourage governments to reconsider tariffs and subsidies in favour of supporting sustainable practices.

Moreover, this initiative is likely to resonate well with environmentally conscious investors and customers, aligning with the growing demand for corporate responsibility in environmental conservation. As companies across the globe are scrutinised for their environmental impact, initiatives like the SSAB and Alstom partnership set a positive precedent.

In conclusion, the collaboration between SSAB and Alstom to integrate fossil emission-free steel into railway manufacturing not only marks a significant step towards sustainable industrial practices but also exemplifies how technological innovation can drive environmental solutions. It reflects a transformative approach in procurement strategies that could set new standards for sustainability in heavy industries worldwide.

About SSAB and Alstom

SSAB is globally recognised for its high-strength steel with a minimal carbon footprint, while Alstom leads in rail transport and sustainable mobility, continually integrating cutting-edge, eco-friendly technologies.

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Stony Brook University Welcomes Christopher Berger as New Associate VP for Procurement

Stony Brook University Welcomes Christopher Berger as New Associate Vice President

Stony Brook University recently announced the appointment of Christopher Berger as the new Associate Vice President for Procurement, marking a significant addition to its administrative team. Berger, who holds an MBA and a BA in Math & Science from Dowling College, brings over 25 years of extensive experience in procurement leadership, having previously served notable organisations across various sectors.

Extensive Background and Expertise

Berger’s career is distinguished by his tenure as Chief Procurement Officer at multiple prominent institutions, including Suffolk County, where he established a centralised procurement framework that streamlined operations and enhanced service delivery. His roles at Hearst Media, Bloomberg LLP, and CA Technologies have been characterised by his strategic approach to managing procurement functions, implementing innovative technologies, and fostering collaborative supplier relationships.

At Suffolk County, Berger was instrumental in transforming the procurement processes by introducing cutting-edge solutions that significantly reduced costs and improved efficiencies. His leadership at Bloomberg LLP and CA Technologies further solidified his reputation as a forward-thinking leader capable of adapting to and driving change within complex organisations.

Strategic Vision for Stony Brook

In his new role at Stony Brook University, Berger is set to oversee all aspects of procurement activities. This includes strategic sourcing, managing the procure-to-pay processes, and deploying technology systems to optimise procurement operations. His appointment comes at a time when the university is increasingly focusing on enhancing its operational efficiencies and sustainability initiatives.

Berger’s strategic vision for the procurement department involves integrating advanced digital tools to streamline processes and ensure that the university’s spending aligns with its long-term academic and infrastructural goals. He aims to foster an environment of transparency and efficiency, where procurement practices support both immediate needs and strategic initiatives.

Impact on University Operations

The impact of Berger’s leadership is expected to extend beyond the procurement department. His expertise in managing high-stakes negotiations and contracts will play a crucial role in how the university manages its budgets and financial planning. His approach to vendor management and contract negotiations, emphasising mutual benefit and long-term partnerships, is poised to bring new opportunities for Stony Brook University to collaborate with various stakeholders.

Furthermore, Berger’s commitment to sustainability will be vital in aligning the university’s procurement practices with environmental and social governance criteria, making Stony Brook a leader in sustainable procurement among academic institutions.

Looking Forward

As Stony Brook University continues to grow and adapt to the changing educational landscape, Berger’s role will be critical in ensuring that the procurement department not only meets the current demands but also anticipates future challenges and opportunities. His leadership is expected to drive innovation within the department, promoting practices that are not only economically beneficial but also environmentally and socially responsible.

In sum, Christopher Berger’s appointment as Associate Vice President for Procurement at Stony Brook University heralds a new era of procurement management at the institution. His extensive experience and strategic outlook are anticipated to foster significant developments in how the university approaches procurement, positioning Stony Brook at the forefront of operational excellence and innovation in higher education procurement.

About Stony Brook University

Stony Brook University, a prominent higher education institution, is known for its strong focus on research and education. It offers a wide range of programs and is committed to providing exceptional academic and practical opportunities to its students and staff.

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