Category Archives: In The Press

7 Procurious Influencers Who Are Smashing Modern Slavery

Not all heroes wear capes! But surely there are few people more deserving of a superhero’s recognition than the procurement pros fighting against modern slavery day in, day out….?

Last week, a heavy-hitting list of 100 modern-day abolitionists was splashed across social media following the 2018 Annual UK Top 100 Corporate Modern Slavery Influencers’ Index Recognition Dinner in London – and the team at Procurious was delighted to see at least seven Procurious members featured in the Index.

Developed by BRE and Sustain Worldwide, the #Top100Index recognises individuals from all business sectors, media and academia who are influential leaders in raising awareness to end modern slavery and labour exploitation; those who advocate for robust ethical sourcing and human rights recognition and practices in UK direct business operations and global supply chains.

The Index was based on a combination of influence on social media (as measured by Klout scores) and advocacy – policy impact, speaking and media engagements – in public life, aggregated via a proprietary algorithm and verified by an independent panel.

Influence is the key word here. While only a few of the Top 100 would be physically involved in busting modern-day slavery at the coalface, this group is arguably making a greater impact through addressing the source of the problem by raising public awareness and getting cut-through with he decision-makers in government and business who can really make a difference.

Procurement and supply management is well-represented in the Top 100, even though the scope of the award went well beyond this profession. This proves, once again, that any efforts to eradicate modern slavery must involve – and often be spearheaded by – procurement and supply professionals.   

Who are the Procurious members in the #Top100Index?

Congratulations to the following members of our online community. Connect with these highly influential professionals here on Procurious by following the links below.

  1. Andrew Wallis OBE of UnSeenUK
  2. Andy Davies of Greater London Authority (GLA) Group
  3. Dax Lovegrove of Swarovski
  4. Katie Jacobs of Supply Management
  5. Professor Jacqueline Glass of Loughborough University
  6. Rob Knott of Virtualstock
  7. Olinga Ta’eed, Entrepreneur

More from Olinga Ta’eed on Procurious:

In other news this week:

Deadline Passes with no renegotiated NAFTA

  • Parties to the NAFTA renegotiations have failed to reach a deal before the Congressional deadline of May 17 passed last week.
  • The deadline was in place due to the upcoming Mexican presidential election, which may introduce a new set of variables depending on the winner’s stance on trade.
  • US House Speaker Paul Ryan has said Congress is willing to vote on a deal within a few weeks, but commentators predict the negotiations are likely to drag on into next year.

Read more: https://www.supplychaindive.com/news/NAFTA-May-17-deadline-talks-extend/523811/

Gig economy in the spotlight

  • New research has revealed the explosive growth of the gig economy in the UK since 2010, with ‘non-employer businesses’ (businesses that only hire on a gig-by-gig basis) growing by 8,431% in the transportation and storage sector, and 1,464% in the accommodation and food service sector.
  • The number of self-employed people in the UK has risen by 41% since 2001, with 15% of the UK labour force classed as self-employed last year. The private sector has seen a 25% increase in non-employer businesses since 2010.
  • Recommendations from the Taylor Review of the gig economy include ensuring a balance between worker’s rights and those that are self-employed, sectoral strategies to ensure people do not face insecurity, and stronger incentives for firms to treat “dependent contractors” fairly.

Read more: https://www.premierline.co.uk/knowledge-centre/the-gig-economy.html

US-China Trade War “On Hold”

  • China and the US have agreed to drop tariff threats while working on a wider trade agreement, according to US Treasury Secretary Steven Mnuchin.
  • Washington has demanded that China narrows the $US335 billion annual US goods and services trade deficit and has proposed tariffs of $US50 billion on Chinese goods. China responded with its own measures targeting US agriculture.
  • The two economies have reportedly agreed to set up a framework for addressing trade imbalances in the future.

Read more: Washington Post

Arianna Huffington: No More Brilliant Jerks In the Workplace

#ISM2018 keynote Arianna Huffington is on a mission to end the collective delusion that burnout is the price we pay for success.

In 2007, Arianna Huffington collapsed in her office. “I hit my head on my desk, broke my cheekbone, and came to in a pool of blood. I asked myself the question: is this what success looks like?”

By any of the usual metrics, Huffington is an undeniably successful businesswoman and a role model for many. The Greek-American author and syndicated columnist has written 15 books and is the co-founder and editor-in-chief of The Huffington Post, later acquired by AOL for US$315 million. She is a regular inclusion in lists such as Forbes’ Most Influential Women in Media, The Guardian’s Top 100 in Media, and Forbes’ Most Powerful Women in the World.

But, as Huffington tells the audience at #ISM2018, having money and power as your only metrics of success is like trying to sit on a two-legged stool. A third leg is required if you’re going to attain balance – and that’s where the concept of “Thrive” comes in.

The size of the prize

We’re currently operating in the midst of a global epidemic of burnout and stress. “What’s sad is that it’s completely unnecessary,” says Huffington. “When we take care of ourselves, we’re more effective in what we’re doing.”

Issues which used to be the province of health magazines are now entering the mainstream. Businesses are increasingly recognising that performance improves when employees take care of themselves. The three pillars of self-care are nutrition, movement and – Huffington’s favourite topic – sleep.

Sleep is the best performance-enhancing drug

Ever heard the phrase “we can sleep when we’re dead”? That kind of attitude, according to Huffington, only brings forward the time when we’ll actually be dead. Sleep affects your well-being, your cognitive performance, and subsequently your company’s bottom line. Not long ago it was common to see business leaders competing in terms of who can operate on the least amount of sleep. U.S. President Donald Trump, PepsiCo CEO Indra Nooyi and television personality Martha Stewart all reportedly operate on 4 hours of sleep or less.

Huffington knows that when she’s exhausted, she is “the least good version of herself”. Lack of sleep translates into lower creativity, a lack of empathy, more reactive behaviour, a greater likelihood that she’ll take things personally and miss red flags. Similarly, former President Bill Clinton famously said that every one of his major mistakes was made when he was tired.

Here’s the good news. High-profile CEOs are “coming out” as champions of a good nights’ sleep, including Amazon’s Jeff Bezos. Bezos wrote a piece about why getting eight hours of sleep is a top priority not only for him personally, but for Amazon’s shareholders, as a well-rested CEO is much more likely to make good-quality decisions.

Fix your culture to reduce attrition

“Taking care of your employees is no longer just a ‘nice’ benefit,” says Huffington. “It directly affects the business metrics.” Burnt out employees are highly likely to change jobs, with their companies bearing the brunt of attrition costs. Lower engagement, reduced productivity and higher healthcare costs are the other risks faced by companies that run on burnout.

When we prioritise a healthy culture, says Huffington, we’re much more able to deal with problems as they emerge, and respond to crises quickly. “A thriving culture means that everybody knows you cannot sacrifice empathy and caring on the altar of hyper-growth”, she says.

Huffington uses Uber as an example, where from her position on the Board she has seen first-hand the negative effects of a hyper-growth culture that is fuelled by burnout. “The idea that everything will be forgiven if you’re a top performer is no longer sustainable. I promised Uber that going forward, no more ‘brilliant jerks’ will be allowed in the organisation. The truth is that no matter how brilliant you are, if you’re not there to support colleagues, be empathetic, and be humane, in the long term you’ll have a deleterious impact on the business.”

Why do people become jerks? “When employees are burnt out,” says Huffington, “they act out.”

Thrive

In the age of machine-learning, artificial intelligence and continuous disruption, it’s more important than ever to protect and project our uniquely human qualities – namely, empathy and creativity. Huffington singles out these two qualities as they cannot be replaced by AI. She notes that although we regularly celebrate advances in the field of augmented reality, we need to prioritise and cultivate “augmented humanity”.

Alibaba Founder Jack Ma spoke in Davos recently where he introduced the concept of LQ (Loving Quotient), or how people treat one another. In business this will become increasingly important as maturity develops beyond IQ, through EQ, and finally to LQ.

Put the smartphone down

“The next stage of technological disruption will involve technology that will help you disconnect from technology,” says Huffington. She speaks persuasively about the negative effect devices have on people’s wellbeing, and the importance of taking the phone out of the bedroom to ensure a proper night’s sleep. “Your phone is the repository of every problem that you’re dealing with,” she says. It certainly shouldn’t be the last thing you see before sleeping, or the first thing you see when you wake in the morning.

“Learning to manage relationships with our phones is key, but putting boundaries on technology doesn’t mean we don’t love technology. At present our culture values people who are always on, always texting back,” she says. “Where we put our attention determines our lives.”

Huffington leaves the audience at ISM2018 with the image of the three-legged stool. The third leg – the Thrive leg, is built from a sense of well-being, connectivity with your own wisdom, giving back, and feeling a sense of wonder about life, she says. “So often, we don’t even look up.”


Are you at ISM2018? Visit Procurious in the Exhibitor Hall – Booth #207!

Don’t miss out on Procurious Founder Tania Seary’s inspirational & informative ISM2018 Session titled “From The Amazon to The Moon: The Possibilities for Procurement” on Tuesday 8th May, 3.45-4.45.

Navigating The World’s Largest Procurement Conference

ISM2018 is nearly upon us! With an action-packed agenda featuring no less than 100 educational sessions to choose from, it’s vital that attendees arrive in Nashville with a plan.

I’ve made the 22-hour journey from my home town of Melbourne all the way to the sequin-studded city of Nashville, Tennessee, to report on the jewel of the international procurement calendar, ISM’s Annual Conference.

No matter where you’re travelling from, it’s crucial to understand your key conference objectives in advance. Why? Because this isn’t a conference with a linear agenda where you simply sit back and watch a series of presentations without having to make any choices. On the contrary, there are 100 sessions packed into four days, with many of the sessions running concurrently. That means that at any one time, you may have to make a decision between nine simultaneous sessions.

My advice is to make your conference plan right now. It’s not ideal to pick your sessions over breakfast at the conference itself, and certainly don’t try to make the decisions in the 5-minute breaks between each session!

Naseem Malik, Managing Partner of MRA Global Sourcing and member of the ISM2018 Conference Leadership Committee, told Procurious that it’s essential to have a plan when you get here. “There are a lot of learning tracks, lots of great presentations, but there’s only a finite number of sessions you can attend. It pays to have an attack plan before you go. You can target a specific learning track, or mix and match.”

SVP of Procurement at NFP, Lara Nichols, has similar words of advice. “Chart a course through the sessions. Read ahead, and think about how to spend your time. Plan it out like you would do before going on vacation! If you’ve done some pre-planning, you’ll have filters in place to help you pick well when you’re presented with a choice.”

To further complicate the decision-making process, this isn’t just about you. Most people who attend ISM2018 will be there as a representative of their wider team, so it’s critical that the sessions you attend are also relevant for your colleagues back in the office.

As such, try to keep these criteria in mind:

  • Does the session align with my personal objectives?
  • Will the session be relevant to my company?
  • Will the session have actionable takeaways?

Have a conversation with your manager or your colleagues who are still in the office about what they would like you to bring back from the conference – whether it’s market intelligence, new contacts or benchmark information. It’s also important to agree on the format that this information will take – do they expect a written report? A formal presentation? Or just an informal update when you’re back at your desk?

So – to take my own advice, I made a plan of the sessions that I’m doing my best to attend at ISM2018. Here it is:

The Keynotes

ISM always attracts impressive keynote speakers who usually provide the highlight of the conference. This year, Arianna Huffington (Founder of Huffington Post and CEO of Thrive Global) will present on how to “thrive” in the digital age and build a culture to win the future. For procurement professionals interested in how the power of social media can help them professionally (hello, Procurious!), this should be a fascinating session.

Everyone is talking about Amazon, which is why John Rossman, a former Amazon executive with wisdom to share on making your supply chain a golden asset, will definitely be speaking to a packed house. Rossman will share the key to scaling, Amazon’s secrets to drive accountability, how to achieve operational excellence, drive innovation, and deliver what customers truly desire.

American politician Mitt Romney was scheduled to complete the keynote line-up, but withdrew after announcing his candidacy for the 2018 Senate election in Utah. But never fear – Romney has been replaced by two giants of the American Intelligence community, General Keith Alexander (CEO and President of IronNet Cybersecurity, Former Director of the NSA and First Commander of U.S. Cyber Command – and John Brennan, Director of the CIA 2013-2017, and former US Homeland Security Advisor. Personally, I’ll be fascinated to see their comments in light of Edward Snowden’s now-famous absconsion from the NSA, and the current White House’s prickly relationship with intelligence agencies.

The Signature Sessions.

If they haven’t been booked out already, the nine signature sessions listed in the agenda will soon fill up, so make sure you register soon. Highlights include:

  • A CPO Town Hall and Networking Event featuring four CPOs who will answer questions on procurement transformation, providing value in M&A activity, innovation, stakeholder alignment, managing risk and retaining talent. (Update: ISM tells me that there are still some places available for this session.)
  • A session on the Evolution of Procurement and the future of the CPO, featuring SAP Ariba’s Chief Digital Officer, Dr Marcell Vollmer and Futurist Tom Raftery.
  • Elevating Employee Engagement – featuring leadership expert and executive coach Dima Ghawi, who will talk about how to tackle generation gaps, virtual teams and the global workforce.

Other Sessions

Still feeling overwhelmed?

The good news is that ISM has provided plenty of tips to guide attendees through the maze of sessions, including Learning Tracks, information on how each session is aligned to certain competencies in the Mastery Model, and proficiencies based on years of experience.

Don’t forget to drop by the Procurious Booth #207 to learn how to supercharge your procurement career through the power of online networking!  

Digital Transformation Skill Gap Shock

Only six per cent  of CPOs possess the strategic leadership trait of being able to lead digital and analytical transformation in their organisation. What’s going on with the skill gap?

It seems that everyone’s talking about digital transformation. Every procurement team globally lies somewhere on the maturity curve that begins at one end with 1990s-style manual processes, to world-beating teams who are embracing tech enablers such as predictive analytics and cognitive technology. Procurement publications (including this one) are writing article after article about the wave of exciting new technology coming down the Industry 4.0 pipeline, while the profession’s biggest conferences always have digital transformation experts high on the agenda.

Key findings in Deloitte’s 2018 Global Chief Procurement Officer Survey, however, suggest that digital transformation isn’t as high as priority for CPOs as we might think. When just over 500 procurement leaders across 39 countries were asked to identify the most common leadership traits in procurement, they listed:

  • acting as a role model – 23 per cent
  • collaborating internally and externally to deliver value – 20 per cent
  • delivering results – 14 per cent

Yet, as the report points out, strategic leadership traits are not widely evident:

  • positive disruption – 5 per cent
  • leading digital and analytical transformation – 6 per cent
  • innovation – 8 per cent

Similarly, modern technology usage is low, with only one-third of those surveyed using technologies such as predictive analytics and collaboration networks. Only one-third of procurement leaders believe that their digital procurement strategy will enable them to deliver on their objectives and value, even though analytics was nominated as the single factor that will have the most impact on procurement in the next two years.

The authors call out these disappointing results twice in the report:

“Progress and adoption has been slow over the past year and the survey findings show that procurement leaders remain hesitant about investigating new digital tools and technologies such as artificial intelligence, robotics and blockchain.”

“Despite recognising digital technologies, their impact and imminent uses, few organisations appear to be progressing at the rate that their c-suite executives consider necessary for achieving overall goals. Indeed, in the majority of areas, the level of impact has declined and the forecast application of new technologies is low … The level and speed of digitalisation across procurement functions is lower than expected and needed.”

So, what’s going on? The answer might be found within the report itself, across the following three areas:

  1. CPOs don’t know where to begin

The main barriers to the effective application of digital technology identified in the report include a lack of data integration (46 per cent), quality of data (45 per cent) and a limited understand of data technology (27 per cent). This suggests that one of the reasons for the disappointing adoption of technology is that CPOs are still coming to terms with the overwhelming task of getting their house (their data) in order before they can effectively roll out a tech enabler such as cognitive procurement.

  1. CPOs are losing faith in their digital strategy

Deloitte found that only 4 per cent of procurement leaders believe that procurement has a big influence in delivering their organisation’s overall digital strategy. Only 6 per cent believe their digital strategy will help them to fully deliver on their objectives and improve enterprise value, while only 18 per cent have a digital procurement strategy supported by a complete business case. The trend in the report appears to be that procurement leaders are struggling to understand the impact of digital technology. One of the stand-out pieces of commentary in the report contains the following:

“Applying digital technologies to the procurement function will enable strategic sourcing to become more predictive, transactional procurement to become more automated, supplier management to become more proactive, and procurement operations to become more intelligent.”

 3. CPOs are not investing in digital capability

Remember last year’s report? The main callout in 2017 was that 60 per cent of CPOs didn’t believe their teams had sufficient capabilities to deliver on their procurement strategy. This figure has improved slightly and now sits at 51 per cent, yet digital skills still remain a red flag. The report found that nearly three-quarters of those surveyed said that their procurement teams possess little or no capability to maximise the use of current and future digital technologies, but only 16 per cent of procurement leaders are focusing on enhancing the digital skills of their teams. Overall, 72 per cent of CPOs are spending less than 2 per cent of their operating budgets on training and development programs for their teams.

Download the full report here: https://www2.deloitte.com/uk/en/pages/operations/articles/cpo-survey.html


In other news this week:

 

Procurious celebrates International Women’s Day – Get Involved!

  • Women account for just 20-35 per cent of procurement association memberships, represent just 30 per cent of procurement conference attendees and 20 per cent of speakers, and earn up to 31 per cent less than their male counterparts
  • To address this disparity, we founded Bravo, a Procurious group that celebrates and promotes the contributions of women in procurement last year
  • Ahead of International Women’s Day on 8th March 2018 Procurious are running a new campaign, “A Wise Woman Once Told Me…”.  We want procurement pros across the globe to take part and  finish that sentence.  Write the best advice you’ve been given by a woman, be it a colleague, mentor, friend or family member and share your advice on both Twitter (Tagging @Procurious_ and #Bravoprocurement) and in the Bravo group on Procurious 
  • We’ll be amplifying all of your great advice to the global procurement community and, to encourage more procurement pros to join Bravo Movement, we’ll donate £1 to Action Aid for every person that joins Bravo before 10th March 2018

Contact Laura Ross via [email protected] to request your  “A Wise Woman Once Told Me…” digital kit.

 

KFC Supply Chain Cock-Up Continues

  • KFC has yet to reopen all of its UK stores after nearly 700 of the the fast food chain’s 900 stores were shut down after the company ran out of chicken last week.
  • Speculation about what went wrong has focused on DHL, which had taken over the contract only one week previously. DHL has one centralised warehouse in contrast to the previous contractor, Bidvest, which operated from six.
  • The hashtag has been trending on Twitter, while KFC’s marketing team has been praised for its handling of the crisis.

Read more: http://www.wired.co.uk/article/kfc-chicken-crisis-shortage-supply-chain-logistics-experts

 

Trump announces steel and aluminium tariffs

  • President Trump has announced a 25 per cent tariff on imported steel and a 10 per cent tariff on imported aluminium.
  • The tariffs are designed to punish China for what the White House has described as unfair trade practices, while reducing blue-collar job losses and wage stagnation.
  • U.S. steel production has fallen from 100 million to 82 million metric tonnes over the past decade, with imports increasing in consequence.

Read more: Reuters

‘Tis The Season To Waste Lots Of Food….

An estimated 1/3 of the world’s food is wasted along the supply and consumption chain from farm to kitchen. What can you do to help this Christmas?

This morning you may have discovered your milk was spoiled and tossed it in the garbage before trying to find something else to eat. Maybe you didn’t finish your whole breakfast and that went in the trash, too.

You’re not alone. An estimated 1/3 of the world’s food is wasted along the supply and consumption chain from farm to kitchen. How much does that add up to? A lot!

And with Christmas just around the corner and an estimated  £64 million’s worth of food set to be wasted in the UK alone, it’s the perfect time to start reducing some of that waste!

There are a lot of programs helping to combat food waste this Christmas. Some supermarkets have started to offer items past its best before date at a reduced rate and are providing food for those most in need. There are also a number of  steps you can take to help in your home as well.

How Much Food Do Humans Waste?

Via: InvestmentZen.com

Read more on food waste and sustainability in our articles on Earth Day and supply chain regulations.

Christmas Supply Chains and Fist Fights in the Toy Aisles

Do you remember the Tickle-Me-Elmo War of 1996? What about the Cabbage Patch Kid Riots of 1983? No amount of long-term forecasting can prepare manufacturers and retailers for the moment a product becomes the “must-have” toy of the season.

Robert Waller, a clerk at a Canadian Wal-Mart, told a harrowing tale about toy-mania in an interview with People after the Christmas rush of 1996. He was unpacking the latest shipment of Tickle Me Elmo (a vibrating, giggling plush toy based on a character from Sesame Street), when he became uncomfortably aware of a crowd of about 300 people watching him carefully. He opened a box, pulled out an Elmo – and the crowd stampeded.

““I was pulled under, trampled—the crotch was yanked out of my brand-new jeans,” Waller told People. “I remember being kicked with a white Adidas before I became unconscious.” Waller also suffered a pulled hamstring, injuries to his back, jaw and knee, a broken rib and concussion.

Tyco, the toy company behind the craze, saw its sales surge to an astonishing $350 million that year as every one of the million Elmo toys was snapped up.  Meanwhile, scalpers were buying the US$29.99 toy by the dozen and asking up to $10,000 on eBay by the end of the year.

The “hot-toy” phenomenon tends to happen  every year, with fist-fights breaking out in toy aisles over prizes such as Mighty Morphing Power Rangers, Teletubbies, Cabbage Patch Kids, Elsa from Frozen (who had been stripped from shelves by November of 2014) and – most recently – Hatchimals. Retailers respond by refusing to accept pre-orders and limiting purchases to one per customer.

Avoiding a Christmas disaster

Unless you’re a parent who missed out on getting the must-have toy of the season, none of the examples above are really “disasters” for the manufacturers and retailers involved. If a toy sells out in November, there’s certainly a missed opportunity if you are unable to get another shipment onto shelves before Christmas, but it’s still a success story.

The real disasters, these days, are taking place in online ordering and fulfilment. Customers are extremely unforgiving when it comes to a Christmas order not being delivered, as was demonstrated when Toys “R” Us first tried to take advantage of the online shopping craze in 1999. The company promised customers that any orders made on or before December 10 would arrive by Christmas, but as an unexpected number of orders rolled in, warehouses managers realised it would be impossible to keep this promise. Toys “R” Us sent an email to customers two days before Christmas, which led to the media making the toy retailer the focus for stories about shipping delays and tarnishing the brand for years. After this disaster, Toys “R” Us (which recently filed for bankruptcy protection in the U.S.) handed over its logistics management to Amazon.

A similar story played out in Australia in 2015 where some customers who pre-ordered their Christmas hams online with Australia’s two largest supermarkets were told at the last minute their orders were not going to be fulfilled. While a missed delivery at any other time in the year may be forgiven, emotive customer backlash at Christmas time is particularly fierce.

In other news this week:

J. Shipman Gold Medal – ISM Calls For Nominations (U.S.)

  • The J. Shipman Gold Medal Award recognises leaders in the profession who have worked diligently to promote the advancement of procurement and supply management. Now in its 87th year, the award is the highest honour conferred by ISM.
  • Nominees are considered role models, mentors and community leaders who have helped others excel in their careers. They have had innovative ideas, and their persistent efforts have helped improve the profession.
  • View a list of previous J. Shipman Gold Medal Award winners here.

Download a nomination form . Nominations must be submitted by February 1st 2018.

12,000 Jobs Gone: Coal Supply Chain Hit Hard

Businesses that supply equipment to coal and gas power plants are cutting costs dramatically in response to the rise of renewable energy. 

General Electric’s new CEO, John Flannery, is cutting 12,000 jobs in its electrical power division. The blood-letting comes in response to GE’s 44% plunge in the Dow this year, and an ongoing battle against overcapacity in an increasingly disrupted industry.

GE’s electrical power division makes turbines and generators used in coal and gas-fired plants, which are estimated to provide around one third of electricity produced worldwide. The company has reported that disruption  in the industry has reduced the need for its products by 40%.

The power division’s European headcount will be reduced by approximately 18%, including 1,100 jobs in the UK and 1,400 in Switzerland.

GE’s problems have been exacerbated by the previous CEO’s gamble last year with an ill-fated $10bn acquisition of Alstom’s power and grid businesses.

German industrial conglomerate Siemens has also announced plans to cut 6,900 jobs, predominantly in its power division. The company expects to sell only 110 large gas turbines for power generation, down from its global production capacity of about 400 a year.

The International Energy Agency reports that renewables currently generate 24% of power worldwide, and expects this figure to grow to 40%  by 2040. GE’s response is not only to shrink its power business, but to invest in renewables, selling about $9 billion in wind turbines last year.

In other news this week:

Infrastructure boom leads to skills shortage

  • The Australian state of Victoria is currently investing in an unprecedented number of infrastructure projects, leading to a shortage of specialist and entry-level skills across the state and related cost increases.
  • Shortages include specialist rail skills, project management, finishing trades, commercial advisory skills, industry analysis, systems engineering and tunnelling.
  • Increased demand for raw materials, quarry materials, cement and sand has also resulted in price pressures in the extractive industries. A similar skills shortage occurred in Western Australia’s mining boom.

Best places to work in 2018

  • Glassdoor has announced its 100 best places to work for 2018, with Facebook taking the #1 spot for the third time.
  • Bain & Company and Boston Consulting Group took out the 2nd and 3rd places.
  • Only three companies have remained winners for 10 consecutive years: Bain & Company, Google, and Apple.

Access the full list here.

Check Out The Keynotes for ISM2018 Nashville

ISM has done it again, with three globally-recognised keynotes announced ahead of its highly anticipated annual conference in Nashville, Tennessee.

About this time every year, the Institute for Supply Management announces its keynotes for its upcoming annual conference. As usual, the lineup for ISM2018 is impressive, with Mitt Romney, Arianna Huffington, and John Rossman set to wow the crowd.

Mitt Romney was the 70th Governor of Massachusetts from 2003 and 2007 and the Republican Party’s nominee for President of the United states in the 2012 election, where he ran against the formidable incumbent, Barack Obama. Romney is also the founder and CEO of Bain Capital.

Arianna Huffington is the co-founder and former editor-in-chief of the Huffington Post, and appears regularly in Forbes’s most influential people lists. Huffington has recently launched a new startup, Thrive Global, focused on health and wellness information.

John Rossman is a former Amazon executive and author of “The Amazon Way: 14 Leadership Principles Behind the World’s Most Disruptive Company.”

Top-tier keynotes at ISM’s annual conference have become something of a tradition. Romney, Huffington and Rossman will join an alumni of household names who have spoken in the past, including:

Focused on “Global Insights, Peak Performance”, ISM2018 expects to draw over 2,500 supply management executives and professionals from around the world. More than 100 interactive sessions are a part of six practitioner-led learning tracks, and will feature executives from firms such as Google, Pfizer, and P.F. Chang’s China Bistro.

ISM2018 will be held from May 6th – 9th 2018 at the Gaylord Opryland Resort & Convention Center in Nashville, Tennessee.


In other news this week:

 Economists warn against NAFTA withdrawal

  • A report in the Wall Street Journal has given the probability of a U.S. withdrawal from the North American Free Trade Agreement is roughly 1 in 4.
  • Private-sector forecasters have said that such a move would likely weigh on economic growth.
  • S. President Donald Trump has threatened to pull the U.S. out of NAFTA if efforts to renegotiate it fail. Talks are set to resume on November 17th in Mexico City.

Read more: Wall Street Journal

 

Driverless shuttle hit by delivery truck

  • Only hours after its debut, a driverless shuttle in Las Vegas was hit by a semi-truck, demonstrating that robotic vehicles are still vulnerable to human error.
  • According to reports, the fault lies squarely with the driver of the semi, whose vehicle grazed the front fender of the shuttle. The robot shuttle’s sensors registered the truck and stopped the vehicle in an effort to avoid the accident.
  • None of the shuttle’s eight passengers were injured in the incident, but proponents of the self-driving vehicle revolution are concerned that incidents like this will delay the uptake of robotic vehicles.

Read more: MarketWatch

Boeing Acquires Robotic Aircraft Maker

Imagine an aircraft that can take off and land vertically, but isn’t a helicopter. It has an intelligent pilot, but there’s no human being sitting at the controls. Boeing has propelled itself into the world of futuristic aircraft with its acquisition of Aurora Flight Sciences.  

Boeing announced on Friday that it will acquire Aurora Flight Sciences Corporation, a company that specialises in advanced robotic aircraft. Aurora already has an impressive portfolio of autonomous aircraft, including vehicles it has been working on with Uber for its flying taxi project.

Much of Aurora’s business in the past has been with the U.S. Military, namely DARPA (The Defense Advanced Research Projects Agency) and NASA. Its aircraft have attracted interest (and funding) mainly due to its advanced Vertical Takeoff and Landing (VTOL) technology, with the small company beating out Boeing and Lockheed Martin last year to build the VTOL X-Plane for DARPA.

What does Boeing plan to do with this technology? The organisation’s press release doesn’t reveal much, but there’s speculation that the acquisition will help bolster Boeing’s own expertise in autonomous aircraft and VTOL tech, with most of that knowledge being funnelled into military aircraft. On the civilian side, the combination of autonomous piloting and VTOL technology are ideal for finally developing the drone taxis we’ve been hoping for. It is unclear whether Aurora will continue to work with Uber on this project.

A report in the Wall Street Journal notes that the acquisition is likely to have an impact on the jet maker’s supply chain long before it produces self-flying planes: “The technology includes … machine learning capability, which could be used to make industrial operations more efficient. Aurora produces composite parts for aircraft and other vehicles, potentially a big attraction to Boeing as it looks to take greater command of its supply chain.”


In other news this week:

Air France Testing Blockchain Technology

  • Air France KLM’s engineering and maintenance division is evaluating the potential for Blockchain to become its new digital ledger for managing replacement parts on in-service aircraft.
  • A spokesperson noted that Blockchain’s resilience, traceability, integrity and disintermediation are well suited to the aviation supply chain.

Elon Musk On Track To Win Solar Battery Bet

  • Elon Musk has announced that Tesla has reached the halfway point of construction on the “world’s biggest battery” in South Australia.
  • The company has a 100-day deadline to complete the construction of a 100-megawatt battery array, or it will build it for free.
  • The batteries, expected to power 30,000 homes, were commissioned as an innovative solution to an ongoing energy crisis in South Australia.

 Image credit: Aurora Flight Sciences

The Supply Vulnerability That Could Kill The Electric Car

Nearly all the pieces are in place for the long-overdue surge in electric car production. But before the automotive industry can finally transform itself, there’s one supply challenge that remains to be solved.  

Prices for rare earth elements are rising. China holds one third of the world’s reserves, and – alarmingly – 97% of global production. Meanwhile, the demand for electric cars and other green technology has led to dramatic surges in prices. A recent report from the Nikkei Asian Review found that spot prices for neodymium (used in magnets found in electric motors) hit $95 per kg in mid-September, a 90% spike from the 2016 and an 80% jump from the beginning of 2017. Similarly, terbium is 36% up from November last year, sitting at around $600 per kg.

Reasons for the price surge include:

  • Rising demand from the U.S., Europe and Japan, particularly by manufacturers of green cars.
  • A Chinese crackdown to enforce environmental regulations at substandard rare-earth smelting works, leading to suspension of operations.
  • Traders stockpiling rare earths in anticipation of higher prices.

Concern is also rising that rare earths are now a major bargaining chip for China ahead of any potential trade war or deterioration of its relationship with the United States.

In the hybrid and electric car space, rare earth metals are typically incorporated into the magnets used in DC motors. Car-makers such as Chevrolet, Nissan and Toyota are actively working to reduce their reliance on the metals, yet will face a steep challenge as the global fleet of electric cars is estimated to grow from around 2 million today to over 14 million by 2025.

Tesla – as usual – appears to be steps ahead of the problem with their use of an AC induction motor, which doesn’t require magnets and therefore has no rare earth elements. Other parts of Tesla’s vehicle, such as the high-end sound system and specialised glass, reportedly do contain rare earth elements.

Electric car batteries are not the only items at risk. Rare earth elements are used in industrial robots, hard disk drives, cordless tools, magnetic hold-downs, jewellery clasps, wind turbines, smart phones and even smart bombs.

The good news is that although China controls 97% of production, two thirds of the world’s estimated reserves lie elsewhere. The US itself is thought to have around 13 million tonnes (the most promising area being the Mojave Desert), while Russia has around 19 million. Other large deposits can be found in Australia, India, Brazil and Malaysia, while Greenland and some parts of Africa also have untapped sources.

Japanese firm Hitachi has responded to the supply challenge by launching a recycling effort to recover rare earths from hard drives and other materials.


In other news this week:

Tech giants hit by CCleaner malware

  • An estimated 2.27 million users of CCleaner, a free software tool for optimising system performance on PCs, have been affected by malware which “piggybacked” on the software.
  • Investigators believe the attack was designed to target PC users working for specific tech firms, including Samsung, HTC, Sony, Singtel, Vodafone, Cisco, Intel, Google and Microsoft.
  • It is unclear whether the malicious code, described as “relatively complex” and “aggressive”, was designed for commercial or state-level espionage.

Read more at Tech Crunch.

Gartner releases European Supply Chain Top 15

Gartner has identified 15 supply chain leaders that have demonstrated strong growth, along with high scores in corporate social responsibility and opinion score performance. Trends across the 15 leaders include digital experimentation, speed to adaptability and a focus on sustainability.

  1. Unilever
  2. Inditex
  3. H&M
  4. Nestlé
  5. Nokia
  6. BASF
  7. Schneider Electric
  8. L’Oréal
  9. BMW
  10. Diageo
  11. Reckitt Benckiser
  12. GlaxoSmithKline
  13. Adidas
  14. Roche
  15. Siemens