Tag Archives: procurement news

Australia Next Victim of Political Uncertainty

The political environment in Australia is tense, even as the Liberal Coalition claims victory by the slimmest of margins. How the corporate landscape will be impacted by the outcome is merely a guessing game.

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It’s been something of a topsy-turvy year, and couple of months in particular, for political uncertainty around the world. The on-going US election campaigns ahead of the November election have polarised opinion, while in the UK the Brexit vote has individuals and organisations alike trying to uncover the full extent of the changes.

And while there is likely to be more instability in the coming months, the ongoing uncertainty around the Australian election has the business community and procurement leaders watching with baited breath, given that what elements of business trade could be impacted by this is anyone’s guess.

With 80 per cent of the vote counted, we do know that Malcolm Turnbull will be returned as Prime Minister, after opposition Leader Bill Shorten admitting defeat on Sunday, according to recent media reports.

The Liberal Coalition is expected to win just enough seats (76) to form a majority government. But the rest of the line-up could take weeks to finalise. And Turnbull has an uncertain and challenging year ahead, as he faces difficult negotiations with independent members of parliament, a hostile Senate, and potential mutiny within his own party.

Complicated Situation

The election was held against the backdrop of a particularly complicated political environment. Laura Tingle, the Australian Financial Review political editor, helped to outline why in her keynote address to the Asia-Pacific CPO Forum in Melbourne earlier this year.

Back in 2013, Australian voters wanted to get rid of the Labor government, with many viewing it as a “soap opera“, as Julia Gillard first took over from PM Kevin Rudd in 2010, before being challenged by Rudd twice, resulting in Rudd leading Labor again at the 2013 election.

However, Tingle explained that the ‘coup’ in 2013 from Rudd isn’t the only reason the electoral situation was in flux.

“Voters have been utterly disappointed by the Coalition under Tony Abbott, and confused and angered by what has happened since Malcolm Turnbull took over,” she says.

The highly respected journalist and political commentator told forum attendees that it’s rare for there to be a uniform swing across seats in an election, and that she can’t think of an election where there are so many unknown factors at play that could create wild outcomes.

For example, the Melbourne seat of Batman, once considered technically the safest Labor seat in Australia (with margins of 21 per cent), was only just held by Labor during the election. The significant change is due in part to rapidly changing demographics in the seat.

In addition, there was a lack of clarity in the state of Queensland as to how the votes would be cast, with independents including the hard-right Pauline Hanson picking up support from dissatisfied voters.

Political Instability Ahead

Tingle argued that Australia was heading into a period of instability.

“When I say ‘uncertainty’, I mean it in the sense that we really don’t known what the election outcome will be if we judge it purely by the numbers.”

Prior to the election, the question was really about whether or not the electorate really wanted yet another change in prime minister.

“Ironically, I think it is the Coalition – the current government – which is more of a policy unknown that the Labor Party.

“The Coalition has been thrown off course in the last couple of years. First by its political incompetence and lack of policy savvy. The 2014 budget has become the byword for this, but there was much that proceeded it in terms of policy towards business even before the budget was brought down,” she says.

Complex Issue Resolution

Even if the government is returned to power, and it looks likely that it will happen, Tingle argued that the major issues, such as health funding, schools funding, and universities funding, would have to be sorted out one at a time, due to the complexity of the issues in the political environment.

“None of this, in reality, leads you to think that either side of politics can have a real breakthrough moment. There has already been a lot of commentary to the effect that much will depend on the size of the majority Turnbull is able to command in the House of Representatives.”

The most basic measure Tingle has learned covering politics and policy making for so long is the capability of politicians to react to the issues of the day.

“When I say that, I mean it is assessing what you believe their underlying capability is to deal with the stuff that comes along every day when governing a country, rather than the set piece policy positions you draw up beforehand.”

Government Procurement

However, it’s not all bad news, particularly from the point of view of public sector spending and government procurement. Even in the midst of the political upheaval and turmoil, it appears to be a case of “business as usual” for procurement.

The Federal Bureaucracy, which is unelected, and as such unaffected by the election until a result is declared, has assured people that the chaos is mainly isolated to the parliament itself. 

They have stated that since the election, there have been a large number of state and local government authorities calling for tenders, announcements of grants, and new public works projects. In addition to this, there are tender notices still being issued for on-going projects, suggesting that business will continue however the final few seats fall.

What are your thoughts on the Australian elections? How will your business be impacted by the political uncertainty?

Meanwhile, we’ve been keeping track of the all the major procurement and supply chain news headlines this week…

China Cosco to invest in Port of Piraeus

  • One of the largest seaports in the world, the Port of Piraeus, was sold to China Cosco Shipping Corporation for €368.5 million in April this year,
  • The deal represented a major privatisation and was a central plank of the €86 billion bailout deal agreed with Eurozone partners.
  • This week, China Cosco announced its plans for the site, including an investment of over €500 million in the port over the next five years. The company will focus on developing the cruise and shipbuilding industry.
  • Chinese president Xi Jinping said this week, “We are certain that Piraeus will open new prospects for the broadening of Greece-China cooperation in transport, infrastructure, telecoms and shipping”.

Read more at the Wall Street Journal

Estonian Startup Tests Robot Package Deliveries

  • Robot maker Starship Technologies has launched a test programme for their self-driving robots.
  • The test will involve the robots delivering packages, groceries and goods in the UK, Germany and Switzerland.
  • The robots drive autonomously in a 2-3 mile radius and are monitored by human operators. 
  • Rolling on six wheels, the robots find their destination using GPS, radar and camera, and are able to navigate around obstacles and follow traffic rules. Customers open the secure compartment to access the delivery using their phone.

Read more at Engadget and Watch the Robots here

Hackers Use Social Media for Identity Theft

  • The number of victims of identity theft in the UK rose by 57 per cent in the past year, with more than 148,000 victims in the UK in 2015.
  • According to Cifas, the fraud prevention service, hackers are now using social media sites like LinkedIn and Facebook to harvest information on individuals.
  • Names, addresses, dates of birth, and names of banks are some of the information fraudsters are able to piece together from social media profiles.
  • Cifas has urged individuals to look at what information their profiles have on them, and to ensure that security settings on all networks are correct.

Read more at The Telegraph

Hyperloop “Proves” Cost Effectiveness

  • Hyperloop, the high speed transport solution and brainchild of Elon Musk, has released a feasibility study which makes the case for the affordability of the system.
  • The study examines the cost of connecting Stockholm and Helsinki using Hyperloop, and compares it to California’s high-speed rail project.
  • Hyperloop estimates this project to cost $40 million per km, while the rail project is estimated by The World Bank at $56 million per km.
  • The report is considered a significant step in proving the validity of the Hyperloop concept, with the technology due for its first test before the end of the year.

Read more at Engadget

Dubai Securing Its Future Through Innovation

Traditionally a prime hub for trade, logistics and communications, Dubai, the UAE, are looking to secure the future as a hub of business innovation.

On the 27th of November 2013, Dubai was voted as the host city for Expo 2020, an event that aims to bring together a global audience to discuss issues pertinent to every person in the world. Based on central theme of “Connecting Minds, Creating the Future”, Expo 2020 will also cover key sub-themes of sustainability, mobility and opportunity.

While the event will place the country at the heart of an event with an estimated 25 million visitors, it also helps to cement Dubai’s place as a centre for technology and business innovation.

Smart Cities

Dubai is already well on its way to becoming a ‘smart city‘, with huge sums of money being invested in making the emirate a hub for IT and technology. In September 2015, Dubai was named as the second-best city in the world for expats wishing to start a business, while the UAE was among the top 10 countries for expats to work in.

These titles run in line with Dubai’s aim to open its doors to the best and brightest technology innovators and entrepreneurs. As part of its investment in infrastructure during its ‘Year of Innovation‘ in 2015, provisions were made to assist small to medium-sized startups with technological assistance, aimed at creating growth in this sector.

And, as part of this drive to encourage more global technology organisations to come to Dubai, Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, announced a $544 million fund to finance innovation in the city.

While the fund doesn’t actually go live in terms of investment until later this year, it is anticipated that it will provide funding to companies based in the UAE, as well as those providing “exceptional innovative ideas“, helping to drive growth and economic development across the region.

Innovation…and Procurement

All of this comes as part of the UAE’s ‘Vision 2021‘, which aims to make the country one of the most innovative in the world. And it’s good to know that procurement and supply chain have a key role to play in this process too.

In the coming months, a huge procurement and contracting effort will be undertaken to award build work for the site, infrastructure and transportation to support the hosting of Expo 2020. Dubai is forecast to spend around $8 billion on infrastructure mega projects in the build up to Expo 2020 including hotels, new metro links and malls.

Kicking it off last week, the RTA awarded a $2.88 billion contract for the construction of its Expolink metro. This will be followed by purchase of trains to service both the new, and existing, Dubai metro lines.

It’s estimated that Dubai’s Road and Transport Authority (RTA) will look to 30 per cent of the project cost through private funding, with public-private partnerships mooted for the remainder.

Is it too much to ask for to have a little innovation in the procurement process? While traditional processes might still hold sway, we can only hope that the profession can get in on the act in the next few years.

Need something to chat about in the tea room? Or something to enjoy with your coffee? Here are the week’s big headlines…

States Come Together for Purchasing Agreement

  • TheNational Association of State Procurement Officers (NASPO) has been formulating a collective procurement agreement which is expected to benefit 34 states in America.
  • The Value Point platform will give states purchasing similar items cooperative buying power as one organisation, rather then by state basis. 
  • The Cloud-based platform will enable information storage and allow for different payment structures. 
  • The final agreement is expected to be signed off in August and will the states to move forward with a cohesive, cooperative approach to procurement.

Read more at Government Technology

Rolls-Royce Announce Robot Cargo Ships

  • The Rolls-Royce led Advanced Autonomous Waterborne Applications Initiative (AAWA) presented their vision of autonomous shipping at the Autonomous Ship Technology Symposium 2016 in Amsterdam.
  • The group is working on a series of virtual decks, where land-based crew would control every aspect of the ship
  • There will also be drones and VR cameras to assist with spotting issues that humans cannot control.
  • Rolls-Royce aims to launch first remote-controlled cargo ship by 2020, with the aim for automated fleets to follow soon after.

Read more at Futurism

New World Bank Procurement Framework Live

  • The new procurement framework at the World Bank was officially launched on the 1st of July.
  • The new Procurement Framework will allow the World Bank to better respond to the needs of client countries, while preserving robust procurement standards.
  • The Framework also enables the Bank to work more closely with country partners in improving their own procurement systems.
  • Hart Schafer, World Bank Vice President for Operations Policy and Country Services, said, “The Bank can now offer a more modern and nimble procurement system to help promote sustainable development.”

Read more at The World Bank

US-Japanese Underwater Cable Goes Online

  • A 9,000km, six-fiber cable linking the USA and Japan, and backed by Google, went online at the end of last week.
  • The $300 million ‘FASTER’ cable is a project backed by a consortium of six companies including NEC, China Mobile, China Telecom, Global Transit and KDDI, aimed at better connecting the two countries. 
  • The cable can deliver up to 60 terabits per second (Tbps) of bandwidth, about 10 millions times faster than standard cable modems.
  • The cable will support Google’s Cloud Platform East Asia region, with dedicated bandwidth supporting faster data transfer and reduced latency.

Read more at Tech Crunch

The EU Referendum – Supply Chain Trade at Stake?

No matter where you are in the world, you’ll have heard about Thursday’s referendum in the UK about its EU membership. Have both sides overlooked a critical point in the debate?

This article was written for Procurious by Chris Cliffe.

Procurious is a global platform, but wherever you are, you’ll have heard about this week’s referendum in the UK.  Will the UK #RemainIn or #brexit the EU this week?

Far from being specific to the EU, I think it’s a global issue. And one I find myself thinking about sitting on a train…

Referendum & the Supply Chain

No one can agree on the exact figure (£350m-£380m per day), but the UK is a ‘net contributor’ to the EU. In fact, the UK is one of the biggest net contributors along with France and Germany. But what about taking this issue in (very) simple supply chain terms?

Customers pay suppliers for products. Suppliers make profit from product sales. Therefore we can view customers as ‘net contributors’ to suppliers, much like the UK to the EU. What would happen if a supplier were to lose one of its biggest customers?

The loss of that customer’s revenue needs to be mitigated.  Replacing that customer with new business of equivalent size will be difficult, or at least take a long time. Whilst costs may have gone down through no longer servicing that customer, cost reduction is not proportionate to the lost business, leaving an increased cost to be recovered from remaining customers.

What are the options? The supplier can: take the hit; make efficiency savings; increase prices for other customers; or pass on the cost to the supply chain.

So, if the EU loses a large net contribution, other member states will either see a reduction in EU funding, as there is less money to share out, or they will have to renegotiate their contributions to the EU to make up for the shortfall.

Contributions are proportionate, so all member states will either see their contribution increase, or their share of the funding reduced. France and Germany would likely be most affected.

Shifting Issues

The UK might view this as the EU’s problem. However, all that will have happened is the ‘problem’ has just changed.

Assuming France and Germany – two of the UK’s largest trading partners – did pay more into the EU to cover the loss of the UK’s contribution, how will they take the hit? More austerity? Or will they pass on the cost to their customers – particularly if the customer caused their cost increase!

The UK will want to continue to trade with the EU member states.  That will be possible, and the member states will want to trade.  However, having left and caused those very same member states to see higher costs as a result, I’m struggling to see why we aren’t more concerned about potential ‘tariffs’ which may be applied.

The risk is that the EU will want to recover the ‘cost’ it suffers from a Brexit. Furthermore, the EU will debate and agree their stance on this. And guess what – the UK won’t be at that table.

Supplier Perspective

From a supplier perspective, losing a large customer simply to find that customer still wants your product, but just didn’t want to pay for it is frustrating enough. But what example would you set to your other customers if you actually agreed?

Of course, suppliers will be happy to supply those products, and even though the commercials of the deal might change, you’ll inevitably be charged the same (or more as the deal is no longer standard and will have introduced complexity, risk and cost). Other customers will be watching you.

But the UK isn’t just a customer, it’s a supplier too. Exiting the EU may mean higher costs for the UK’s customers, meaning they have less money to spend. They may want to trade, but could buy less, or need lower prices to compensate.

Let’s consider Framework Agreements. Frameworks are really useful commercial vehicles (a separate debate!) to access products and services without complex, lengthy advertised procedures.

Typically, a set of suppliers are appointed to a Framework for a fixed period. Suppliers who are not appointed to the framework cannot trade through it, and consequently find it more of a challenge to trade with the public sector, who want to use the ‘easy’ route.

Think of the EU as a framework, and the member states as the suppliers appointed. The UK could be about to give up its hard fought position on the framework. In doing so, the UK will be making itself more difficult to trade with, and it will be natural for current EU customers to look at other, less complex, sourcing options.

So, if the referendum goes for #Brexit, does the UK become just a country geographically in Europe, but in the ‘no longer free to trade’ area? Is the UK’s slice of the EU trade pie more at risk than either campaign have realised?

Well, I conclude that…my train has arrived on-time! Don’t forget to  vote if you’re eligible!

Want something to take your mind off the referendum? Here are the week’s procurement and supply chain headlines…

Starbucks Names New Supply Chain Chief

  • Hans Melotte, former Johnson & Johnson CPO, and current Chairman of the ISM Board of Directors, has been appointed by Starbucks as its new Executive Vice President of Global Supply Chain.  
  • Starbucks has approximately 16,000 suppliers and operates in over 70 countries and has recently announced plans to open a 20,000 square-foot roastery in New York.
  • Mr Melotte will oversee supplier relationships, distribution, transportation and store delivery, and is expected to transform stores’ distribution channels in line with company expansion.
  • Mr. Melotte also featured in Procurious’ recent article on the use of the term ‘strategic’ in the profession.

Read more at the Wall Street Journal

World Day Against Child Labour

  • The ILO’s World Day Against Child Labour took place on Sunday 12th June, with this years’ focus on child labour in supply chains.
  • An estimated 168 million children are found in supply chains across the world, in every sector and region.
  • “The time for excuses is over”, said ILO Director General Guy Ryder. “With redoubled from governments, employers, workers organisations and enterprises, child labour in supply chains can be stopped.”
  • The ILO has developed a new app designed to help business managers and auditors to create checklists that will help ensure a child labour-free operation.

Read more at the International Labour Organisation

M&S Unveils New Supply Chain Mapping Technology

  • M&S released its first online supplier map alongside its inaugural human rights report last week, showing 1,231 factories in 53 countries.
  • The interactive map has the capability to zoom in on individual facilities to see the address, number of workers on site, and gender of those workers.
  • The data for the map comes from supplier-reported information and third-party audits.
  • The mapping technology is expected to greatly improve supply chain visibility, and can be tailored to include more data.

Read more at Green Biz

How one tweet from Elon Musk wiped $580 million from Samsung SDI

More than half a billion dollars was wiped from Samsung SDI’s market capitalisation this week in response to a single tweet from Elon Musk about Tesla’s supply chain. 

Rumours were swirling earlier this week about Tesla’s supply chain for its lithium-ion battery packs. Investors believed that the official supplier, Panasonic, may not be able to produce enough batteries for the much-anticipated Model 3, and that Samsung SDI (Samsung’s battery and display division) would be brought in to meet production targets.

Elon Musk set the record straight on Tuesday with the following tweet, clarifying that the arrangement with Panasonic is exclusive.

Musk

The effect of Musk’s tweet was immense – Samsung SDI’s shares plummeted by US$580 million (or 8%) on Wednesday, while Panasonic added $800 million to its market value on the same day.

Tesla’s Model 3 is slated to be a comparably affordable electric car with a range of at least 215 miles (346 km) per charge. At $35,000, it’s Tesla’s first step away from the luxury space into a price range affordable by mid-level buyers. It’s expected to be an enormous success, leading to significant interest from investors who follow Tesla news very closely indeed. This has led to a situation where a single tweet from Musk can cause huge disruptions in the share market, comparable to the shockwaves caused when Apple makes announcements about its supply chain.

A similar situation occurred in April when shares for Taiwan’s Hota Industrial Manufacturing, Tesla’s sole supplier of gearboxes, plunged rapidly as news broke that Tesla may be looking for a second supply source.

Stock market shocks are compounded by Wall Street firms’ usage of high-frequency trading, where computers use algorithms to comb through the internet to read news items (including tweets), executing thousands or millions of small trades per second based on that information.

Gizmodo’s Matt Novak has observed that if Musk’s Twitter account has so much power, the consequences of a hacking could be disastrous. “We hope he has a strong password and two-factor authentication turned on … If Musk ever got hacked, it could send markets into a minor tailspin.” Novak gave the example of a fake tweet that caused a $130 billion stock market crash in 2013, when hackers used the Associated Press Twitter account to announce that Barack Obama had been injured in an explosion at the White House.

Musk has a longstanding partnership with Panasonic, which invested $30 million in Tesla in 2010. This investment is now estimated to be worth more than $300 million, and Panasonic holds a supply agreement for 1.8 billion cells through to 2017 for Tesla’s luxury Models S and X. Panasonic is also playing a significant role in Tesla’s Gigafactory in Nevada, which will supply 500,000 Tesla cars per year with lithium-ion battery packs by 2020.

Tesla has since tweeted that Samsung may still be involved in making Tesla Energy products, namely its Powerwall and Powerpacks (stationary batteries used in homes). 

We’ve been keeping track of the major stories making the procurement and supply chain news this week…

Amazon’s massive investment in logistics

  • Amazon continues to make aggressive capital investments, with some observers claiming the company is positioning itself to take over the last mile of delivery from UPS, FedEx and the U.S. Postal Service.
  • Recently, Amazon purchased an air cargo network previously owned by DHL, purchased thousands of 53-foot trailers, and is leasing 20 Boeing 767s at a cost of $300,000 per month.
  • The organisation has built over 100 global fulfilment centres between 2009 and 2016, with 125 million square feet of global warehousing. The warehouses themselves contain 30,000 Kiva Robots (acquired by Amazon for $775 million).
  • Amazon’s founder and CEO Jeff Bezos said his company’s goal is to “heavily supplement and support”, rather than take over, peak season fulfilment.

Read more: https://logisticsviewpoints.com/2016/06/06/does-amazon-have-a-first-mover-advantage-in-logistics/

 World Bank to launch modernised procurement framework

  • The World Bank will launch a new procurement policy on July 1, 2016, modernising an outdated framework that has remained unchanged for decades.
  • Moving away from a rules-based procurement system to one that focuses on performance and achieving development goals, the new framework allows for much greater flexibility.
  • Changes in the new framework include a sharper focus on achieving value-for-money, an increased number of procurement methods and approaches, greater streamlining, more attention to contract management, and enhanced support for borrowers in low-capacity environments.

Read more: http://blogs.worldbank.org/governance/imminent-transformation-world-bank-s-procurement-framework

 Johnson & Johnson: Controls need to be in place when buying digital ad placements

  • Johnson & Johnson was recently alerted by shocked customers that one of their baby product ads was played before a video about paedophilia, leading senior digital marketing strategic Louisa Thraves to comment that more responsibility needs to be taken. The issue is caused by automated keyword matching, such as “baby” or “children”, and can be remedied by creating a watch-list of topics to avoid being paired with.
  • Thraves used cold and flu remedy Codrol as an example of a brand that could be damaged by erroneous media placements, which she said could never be associated with alcohol in an advertising environment.
  • Marketing procurement professionals must ensure they know where and when digital ads will be played, and what other content they will be associated with.

Read more: https://mumbrella.com.au/jj-marketer-says-clients-need-take-responsibility-brand-safety-series-shocking-ad-placements-372929

Have you met the Chief Procurement Officer of the Year?

It’s taken less than two years for Johanne Rossi to implement and lead a major transformation at fuel and oil giant Caltex Australia.

Johanne Rossi

Her goal is to transform the company to become the customer of choice for suppliers. What this means is Caltex gets higher quality, a lower total cost of doing business, priority supplier support and access to the latest innovations.

“I came on board to kick off this journey for Caltex procurement at a time when Caltex was transitioning to stay current and create a bright future for itself. We realised that the fuel industry is being challenged with new trends and new competition is entering the market. The entire procurement function and what we stood for as a company needed a complete rethink,” Rossi says.

The process required long-standing internal silos to be broken down so that company teams could integrate and work closer together through the change, challenging the status-quo and doing things smarter.

The confidence and determination she displays in her role with Caltex are some of the key reasons Rossi has been named Chief Procurement Officer of the Year at the 9th Asia-Pacific CPO Forum in Melbourne.

Upon winning the award, Rossi praised the work done by The Faculty’s Founding Chairman, Tania Seary, adding that the innovation and collaboration she’s fostering within the procurement community is vital to ensure the function evolves.

At Caltex, Rossi is responsible for a $1.8 billion spend. She’s led a transformation program of the entire procurement function, leading to a saving of more than $100 million through improved agreements, cost avoidance, process improvement in both Opex and Capex and revenue generation. She is credited with delivering on company-wide strategy, and creating value in key supplier partnerships.

Rossi, meanwhile, came to Caltex after being headhunted for the role. She has a background in FMCG, management consulting, mining, airline industry and also construction with blue-chip companies like Nestle, Qantas and Accenture.

A determined approach to CPO leadership

“I recall during the interview process for Caltex I was asked about whether I was aggressive in my approach and how determined I was. It was a strong indication of what sort of leader they were looking for in the role.”

Rossi has had to rely on these skills to implement far-reaching cost reductions, as well as a major review of what the procurement function encompassed within the company. This has involved re-structuring and organising internal teams in new ways to better partner with stakeholders and supply partners. A global sourcing team has also been set up in Singapore. A procurement innovation manager has been hired to achieve benefits for the company in the longer term, such as finding new, mutual value with supply partners through innovation and implementing efficiencies. The focus of the team is on reducing the total cost of ownership of external goods and services for the company, bringing innovation from supply partners, reducing wastage in dealings with partners, as opposed to just being price focused, says Rossi.

“I believe that a lot of people know how manage and evaluate tenders, but that’s not where we want to spend most of our time – that’s not where the sustainable value lies. As the role of procurement within Caltex evolves, we want to be spending more time in building internal and external relationships, and developing stronger business and commercial skills.”

A supplier relationship program called Catalyst has been developed and is currently being rolled out. It focuses on building mutually beneficial relationships with supply partners, and goes beyond supplier performance management, Rossi says.

“The entire focus for us is to become the customer of choice for our suppliers. To do this, we’ve segmented our supplier base, which consists of about 3,500 suppliers. It’s very difficult to treat each of our suppliers in a special manner, but that’s what we’re working to achieve,” Rossi says.

“We’ve also worked to get closer with internal stakeholders to better understand their growth targets and how we fit into those and bring solutions from our external spend networks. We’ve transformed relationships with our suppliers. We want to have a far more frictionless relationship with them by integrating systems, simplifying the transactional activities, and benchmarking our actions so that our achievements are visible.”

While the transformation process has been under way for more than 18 months, there are still a number of improvement efficiency opportunities that Rossi wants to implement. Conscious of the evolving workforce, she is interested in looking at ways to better organise the procurement function and create new skills to find greater efficiencies, continuously bring new value and anticipate the future, she says.

“My focus is on creating a strong team that will be nimble and adapt to the changing conditions of the market and the company. A team that will develop new capabilities to create its own future, focused on continuously bringing new value.”

“The experiences I’ve had in my career have made me a stronger person. It’s been a tough journey, even though I’m fully aware I have sometimes created my own obstacles. I now want to give back and make the journey more enjoyable for others if I can.”

“Thinking about how you can better support those around you is paramount”, says Rossi. “The world is completely different to what it was a decade ago. It’s incredible to realise how much impact you can have on others’ lives.”

The  2016 CPO of the Year Award is sponsored by Avetta Global.

Buying a better future – Procurement’s sustainability leaders recognised

Once seen as a ‘niche’ part of the profession, sustainable purchasing is fast moving into the mainstream. The misbelief that sustainable solutions cost more is quickly giving way as businesses recognise that competitive advantage lies in developing innovative, sustainable supply chains.

Evidence of this came this week with the Sustainable Purchasing Leadership Council (SPLC) recognising 12 organisations and one individual who are using their purchasing power to advance the long term health and vitality of society, economies, and the planet.

Winners were recognised across a range of sustainable purchasing initiatives, including cooperative buying contracts for green cleaning products, a week-long zero waste initiative at the Phoenix PGA Open and supplier incubator programs designed at improving environmental performance.

Background on some of the award winners includes:

Leadership Award for Overall Sustainable Purchasing Program (SPLC’s highest honour), presented to The District of Columbia for having put in place a comprehensive sustainable purchasing program that exemplifies the qualities defined in SPLC’s Principles for Leadership in Sustainable Purchasing. DC conducted extensive market research and stakeholder engagement to develop sustainable purchasing guidance and specifications for more than 100 priority products. Hundreds of employees have been trained on the guidance, which DC shares publicly.

Leadership Award for a Special Sustainable Purchasing Initiative, presented to The Commonwealth of Massachusetts and the Responsible Purchasing Network for leading the establishment of a cooperative contract through which agencies in multiple states can now buy independently certified green cleaning products at favourable pricing and with specialised training and outreach.

Leadership Award for Public Interest Advocacy, presented jointly to International Campaign for Responsible Technology and the GoodElectronics Network for organizing the “The Challenge to the Global Electronics Industry”, which has been endorsed by more than 200 organizations and individuals in 40 countries. The Challenge calls on the global electronics industry to respect human rights, workers’ rights, and community rights, including the right to a safe and healthy workplace, and to healthy communities and a safe environment.

This award was also presented to the Initiative for Responsible Mining Assurance for bringing together a coalition of businesses purchasing minerals and metals, mining companies, NGOs, affected communities, and trade unions in order to promote a world where the mining industry respects the human rights and aspirations of neighbouring communities, provides safe, healthy and supportive workplaces, minimises harm to the environment, and leaves positive legacies. Through the many years of collaboration, IRMA has developed the Standard for Responsible Mining, which is currently being piloted.

Leadership Award for Purchasing Innovation
Two organisations were recognised for leveraging sustainability to find and promote innovation: King County (Seattle, WA) for purchasing battery-electric busses for its Metro Transit fleet and documenting significant cost savings and environmental benefits associated with this new technology; and Philips Corporation for innovative procurements that have enabled the company to achieve carbon neutrality in its North American operations while saving money. The Philips’ Procurement and Sustainability groups have collaborated on energy efficiency, onsite renewables, renewable energy certificates, and long-term Power Purchase Agreements for wind power.

Sam Hummel, Director of Outreach and Operations for SPLC, says that the breadth of award categories demonstrates that sustainable procurement is about more than just buying green. “We are talking about human rights, ethical conduct and supplier diversity”, says Hummel. “Sustainable procurement is a holistic approach.”

In other news:

China mandates renewable energy procurement across 11 provinces

  • China’s National Development and Reform Commission has forced grid companies to buy enough renewable power to enable wind farms to operate at least 1800 hours per year, and solar farms to be utilised at least 1300 hours per year.
  • The mandatory procurement is applicable across 11 provinces, including Xianjing and Gansu.
  • Solar capability in China has increased seven-fold and wind has almost doubled since 2012, with China aiming to generate 15% of its power from renewable and nuclear energy by 2020.

Read more at http://www.bloomberg.com/news/articles/2016-06-01/china-s-order-for-green-power-purchases-lifts-wind-solar-shares

World’s longest – and deepest – rail tunnel opens in Switzerland promising to transform Supply & Logistics in the region

  • The Gotthard rail link has taken 20 years to build, cost more than $12bn (£8.2bn), and is tipped to revolutionise Europe’s freight transport.
  • At 57.1km in length, 4,00,000 cubic metres of concrete were used to create the tunnel, employing 2600 people.
  • Its maximum freight amount is 377,000 tonnes per day, the equivalent of 15,080 shipping containers.

Read more at http://www.bbc.co.uk/news/world-europe-36416506

Human Rights Watch calls for binding global convention on supply chains

  • HRW has released a report calling for governments to effectively regulate business activity to protect human rights in supply chains.
  • The report highlights abuses including child labour, labour rights, environmental damage, and lack of safety.
  • Juliane Kippenberg, Children’s Rights Director at HRW, said. “It’s clear that a binding standard on human rights in supply chains globally is needed to ensure that businesses live up to their human rights responsibilities.”

Read more: http://www.cips.org/en/supply-management/news/2016/may/binding-international-convention-is-required-to-protect-human-rights-in-supply-chains/

Autonomous taxi startup nuTonomy raises $16 million in funding to compete with Uber

  • Autonomous taxi startup nuTonomy hopes to bring self-driving taxis to the road by 2018.
  • The company counts the government of Singapore as one of its main partners. It runs a fleet of R&D vehicles in Singapore and is the first private company approved to test on public roads.
  • The startup is promising to develop the whole suite for driverless taxis, from autonomous navigation software (nuCore), fleet routing and management, remote vehicle teleoperation, and smartphone-based ride requesting.
  • The firm uses retrofitted Mitsubishi iMiev electric cars and is expected to add Renault Zoe EVs in its autonomous cab service later this year.

Read more: http://futurism.com/a-new-uber-competitor-just-raised-16-million-in-funding-for-complete-autonomous-taxis/

Coupa R15 – delivering agility and measurable value

David Hearn, former CPO Indirect Procurement at Kaiser Permanente, Sun Microsystems and Juniper Networks, talks to Procurious about how Coupa’s latest product releases (Coupa R15) deliver more value to businesses.

Coupa R15 InvoiceSmash

One of the benefits of being a leader in cloud-based spend management solutions is that you can push innovative enhancements to customers rapidly and efficiently. Coupa does so three times per year, with each release being something of an event as customers eagerly await the latest improvements to the platform.

We’re talking with Indirect Procurement guru David Hearn about which of the more than 45 new features he’s most excited about in Coupa Release 15.

Hyperlocalised Languages and Suggest-A-Translation™ (Patent Pending)

People access Coupa in over 100 countries and more than 20 different languages. Coupa has recognised that their customers have unique language requirements, and also that every organisation has a business language of its own. Hyperlocalised Languages allows customers to modify any of Coupa’s 20+ languages for their own purposes, with changes limited to their organisation only and not impacting other customers. Coupa also added Suggest-A-Translation to collect end-user translation suggestions and route to the customer administrator for real-time updates. This personalises the cloud platform in ways never before seen in this industry and is a key reason for the patent pending status.

David says: “The hyperlocalised language feature helps all users of the platform feel included in the management of the tool which is a huge benefit to getting 100% adoption. Language is important, and if an employee in Japan (for example) thinks that an on-screen word doesn’t fit their organisation’s business vocabulary, they can simply suggest a change to better suit their local business needs.”

Unified Platform Innovations and Enhanced Analytics:

Coupa has updated its sourcing recommendations engine to add real-time monitoring expenses, along with a new supplier risk recommendations engine, an inventory trends dashboard and enhanced embedded analytics functionality that adds more visibility and control. The platform embraces ‘suite synergy’, which means applications are fully unified, and the user experience improves with the use of multiple applications.

David says: “I can’t stress enough the importance of having everything seamless on one platform. Having the Coupa platform provide recommendations across all the ways an employee spends money is a game changer. The entire end-to-end process is electronically sharing data and pro-actively prompting procurement teams with new ideas for better sourcing. This enables those teams to focus on being strategic – and that’s a huge value. These latest updates help companies be more agile and make decisions faster”.

Contract Collaboration

Contract Collaboration is a new Coupa application that brings real-time authoring to contracts and extends Coupa Contract Lifecycle Management. It removes the need to use Microsoft Word for redlining documents passed around via email. The new application provides automatic versioning, captures key terms and conditions and transfers them electronically into the ordering system.

David says: “For as long as I’ve been a CPO, we’ve struggled with the entire lifecycle management of contracts. This latest application from Coupa captures the upfront authoring collaboration and links it to the actual transaction – no one has done this before in a unified suite that captures all spending from expenses, to invoices, to requisitions. There’s no longer a need to manually input the contracts terms and conditions into the system; it auto-fills the whole process. It frees up time to focus on better sourcing instead of clerical duties. It also reduces the risk of contract errors.”

Check out Coupa’s great video on Contract Collaboration (watch for the procurement professional smashing up his keyboard in frustration at Microsoft Word). 

InvoiceSmash

While we’re talking about smashing things, Coupa InvoiceSmash enables suppliers to automatically parse emailed PDF invoices so details are auto-filled into Coupa. One of the most exciting aspects of this product is its machine learning, which ensures the same mistake won’t be made twice and minimises the need for human intervention. The application is currently available in an early access program.

David says: “No one wants to use their limited headcount budget to fund clerical duties of manually entering data from invoices.  It’s archaic. Many have tried using OCR for invoice processing, but this is expensive and the human review and rework on invoices is extensive. InvoiceSmash automates this mundane data entry through accurate digital data extraction and means companies can remove most of their clerical team members and re-invest back into the business.”

Coupa released a clever parody video showing AP and AR professionals on the couch with a relationship counselor – their “marriage” can only be saved by InvoiceSmash.

And much more in Coupa R15:

For the full list of R15 updates, visit http://www.coupa.com/newsworthy/press-releases/release-15/

The Double Edged Sword for Fast Fashion Brands

The impact of fast fashion can be seen on the high street and in the newspapers. But the trend may be about to take down one of the world’s most recognisable brands.

Gap Brands

There are few people in the world who wouldn’t recognise Gap’s brands on the high street, in shopping malls, or on the Internet. However, the fashion and retail giant is facing up to major issues thanks to the ever-growing fast fashion trends.

With consumers moving their shopping habits away from in-store purchasing, Gap may seek bankruptcy in order to help it transform its business model and organisational set up.

Sinking Sales

All three of Gap’s major brands – Gap, Old Navy and Banana Republic – have seen sales decrease again in the first quarter of 2016. In April 2016, Gap sales dropped by 4 per cent, Old Navy by 10 per cent, and Banana Republic by 7 per cent.

The company is now on a run of 24 straight quarters without a growth in comparable sales, and 13 straight months of declining sales. In the face of this, Gap’s shares are down by 9 per cent since the start of the year, leading many analysts to suggest that these brands still aren’t learning lessons from fast fashion retailers such as H&M, Uniqlo and Zara.

Gap is yet to successfully match the design-to-shelf timelines of fast fashion, with many of its products still taking up to nine months to hit the shops. This is roughly double the length of time that it takes fast fashion trends to reach consumers on average.

Wider Impact

It’s not just Gap who are suffering from the fast fashion spread. Other US-based brands, including J. Crew, Abercrombie & Fitch, have experienced a sales downturn, while traditional retail icons, such as Sears and Macy’s, have both closed a number of stores this year.

In Australia, Wesfarmers Ltd, the country’s biggest company by sales value, announced its worst yearly profit in two years, and looks set for its first net loss in almost 20 years. The organisation puts its decreasing sales down to the impact of fast fashion brands on its in-country discount stores.

Double-Edged Sword

However, not all is rosy in the garden for the fast fashion retailers. Uniqlo appear to be struggling to gain a foothold in the US market, opening fewer stores than anticipated, and with slower than anticipated sales.

Chief Executive, Tadashi Yanai, has gone to the USA to assess the company’s strategy and to work out how to raise the brand’s profile outside of major cities. The company has consistently lost money in its US operations since expanding there five years ago, but still maintains a plan to open over 100 stores in the country in the coming years.

Could this be a turning point for retail brands? Or is it just the natural progression of a business’ rise and fall, just sped up in line with the increasing pace of change in trends and demands? Whichever it is, it will be interesting to see how the fashion industry changes in the coming years.

We’ve been keeping track of the major stories making the procurement and supply chain news this week…

Procurement “Underpaid and Unrecognised”

  • A new salary survey report from Next Level Purchasing Association (NLPA) has suggested that procurement professionals are being underpaid.
  • The Purchasing & Supply Management Salaries 2016 report has shown that average global salaries for the profession have decreased by 7.5 per cent.
  • This leaves the average global salary around $53,000 USD, although the average covers professionals at all organisational levels, and across six continents.
  • The NLPA has suggested the best way for professionals to combat this is to get themselves recognised for value contributions to their organisation.

Read more at Supply Chain Quarterly

ISM Announces Annual Awards

  • ISM has announced its Persons of the Year, Affiliate of the Year and Affiliates of Excellence Awards at ISM2016
  • The Persons of the Year Awards sit across five categories: Education; Innovation; Leadership; Marketing & Communications; and Volunteer of the Year.
  • The Affiliate of the Year Award, won by ISM Cleveland this year, recognises excellence in core competencies, membership growth, and professional development opportunities.
  • ISM Cleveland was also one of the eight affiliates recognised with Affiliate Excellence Awards, for demonstrating an awareness and distinction in their professional operations.

Read more at ISM

Oil Settles Under $50 as Supply Worries Resurface

  • Oil prices touched  the $50-per-barrel mark on Thursday 26 May as production outages brought a faster-than-expected recovery to an oversupplied market.
  • Global benchmark Brent crude oil was down 35 cents at $49.40, having earlier risen as high as $50.51 in intraday trading.
  • Adding to outage concerns, a source at Chevron said the producer’s activities in Nigeria had been “grounded” by a militant attack, worsening a situation that had already restricted hundreds of thousands of barrels from reaching the market.
  • Investors will be watching next month’s OPEC meeting for signs of an output hike now that oil had reached $50.

Read more at CNBC

Adidas Unveils New Robotic Factory in Germany

  • Adidas, the German maker of sportswear and equipment, has announced it will start marketing its first series of shoes manufactured by robots in Germany from 2017.
  • The company is facing rising production costs in Asia where it employs around one million workers.
  • It plans to open similar factories in the UK or France following a test period in the third quarter of this year.
  • Arch-rival Nike is also reportedly developing a robot-operated factory.

Read more at The Guardian

Hyperloop Reveals New Material for Capsules

  • Hyperloop, the revolutionary transportation system and brainchild of Elon Musk, has announced more details on the manufacture of their travel pods.
  • Vibranium, more commonly known as the material used for Captain America’s shield, is the name for a new alloy created specifically for Hyperloop.
  • The material is made of woven carbon fiber, and the company claims it is ten times stronger and five times lighter than steel, and eight times stronger and 1.5 times lighter than aluminum.
  • Vibranium has also been designed to be a ‘smart’ material, able to relay real-time data on temperature, damage, structural integrity.

Read more at Futurism

Automation & Giant Aircraft – Revolutionising Logistics

As new technologies take hold across the supply chain, we take a look at the main disruptors revolutionising the logistics industry around the world.

There seems to be two approaches to the next steps for organisations and disruptors revolutionising logistics – go automated, or go huge! From new technology for driverless trucks, to the soon-to-be-largest aircraft in the world taking off in the UK, there are game changing disruptions afoot in the logistics industry.

Plane vs. Blimp

In the past week, the world’s largest freight aircraft touched down in Australia, following a 14,000km journey around the world from the Czech Republic. But, even this huge plane looks set to be usurped by an even bigger aircraft, about to undergo flight tests in the UK.

The Antonov 225 Mriya, weighs in at an astonishing 175 tonnes, is 84 metres in length and needs six engines to help it get off the ground. It’s capable of carrying loads of up to 640 tonnes, and is the only one of its kind. Perhaps most surprising is that this behemoth is nearly 30 years old.

The plane has mostly been used in recent years in the logistics field to transport heavy commercial items, such as heavy mining equipment, around the world. It touched down for the first time in Australia earlier this week carrying a 117-tonnes mining generator to a customer in Western Australia.

However, it’s about to be surpassed in size (although not in load capacity) by a new aircraft hoping to carry out its first UK-based test flight in the coming weeks. The Airlander 10 stands at 92 metres long, and has required the world’s largest hangar to be constructed in order to allow it to be housed.

The key difference about the Airlander? It’s a blimp. While this currently limits its payload to 10 tonnes, it’s hoped that successful flight tests, and commercial use, will enable a larger craft, with a 50-tonnes payload to be manufactured.

While it’s never likely to rival the Antonov for capacity, the Airlander has a number of potential uses in the logistics field, including commercial, military and scientific research.

Driverless Big Rigs

From the giants of the air, to giants of the road, but with a difference. In the past 12 months, Mercedes, Volvo and Daimler have unveiled their own driverless trucks, with the intention of removing some of the potential danger from the trucking industry.

However, they may be overtaken by a new team on the market. Otto, a team formed by former engineers from Google, Apple, Tesla, and including Anthony Levandowski, the former leaders of Google’s self-driving car project, is approaching this issue from the other side.

Instead of designing autonomous trucks, the Otto team and aiming to create technology that can be fitted to trucks already on the road. The technology is aimed at increasing safety by allowing drivers the chance to sleep, while the truck drives itself along the long American highways.

While this might not seem as impressive, there are a number of benefits from this approach:

  • The technology can retrofitted to the majority of vehicles retrofitted to existing vehicles;
  • It’s cheaper than the outlay for a new truck in its own right;
  • It aims to help, rather than replace drivers, meaning there will be human control for some of the journey;
  • It doesn’t fall foul of legislation in a number of US states which require steering equipment, or a driver, to be in the vehicle cab.

The next steps in this area will be fascinating to see, particularly how the major manufacturers react to this, and potentially adapt their offerings to account for it.

Procurement Awards Season Here

We couldn’t let this week pass without congratulating some of the worthy winners of procurement awards around the world.

  • Johanne Rossi, CPO at Caltex, took home the ‘CPO of the Year‘ Award at The Faculty’s Asia-Pacific CPO Forum
  • Rising star Joanna Graham, Strategic Sourcing Manager (Asia Pacific) at BP, received the ‘Future Leaders in Procurement‘ Award at the same event
  • Timothy R Fiore, CPSM, C.P.M., was awarded the 2016 J. Shipman Gold Medal Award, by ISM, in recognition of his distinguished service for the cause and advancement of the supply management profession.
  • Volvo, Flex, Roche and J&J were among the winners at the Procurement Leaders ‘World Procurement Awards‘. See a full list here.

Is bigger necessarily better in logistics? Could we see a combination of both larger size and automation for vehicles in the future? Let us know what you think below.

We’ve been keeping an eye on the headlines this week, giving you something to share over your morning coffee…

Gartner Reveal Supply Chain Top 25

  • Research firm Gartner has revealed its annual Supply Chain Top 25 for 2016, now in its 12th year
  • For the first time, Unilever has topped the list, ahead of McDonald’s (2), Amazon (3), Intel (4), and H&M (5)
  • Previous multiple winners Apple and P&G have been awarded a place on the ‘Masters’ list by Gartner, which celebrates 10 or more years of sustained supply chain leadership
  • New entries to the list include BMW and Schneider Electric, with both HP and GlaxoSmithKline returning after a few years’ absence

Read more at Supply Chain Digital

HP Release “Large-Scale” Manufacturing 3D Printer

  • HP have announced the release of the HP Multi Jet Fusion 3D Printing Solution, the world’s first large-scale manufacturing 3D Printer.
  • The model prints items 10x faster than current machines, and one version offers an end-to-end solution (including software).
  • 9 companies, including Nike, BMW and J&J are currently testing the machines on a large scale
  • Stephen Nigro, who runs HP’s 3-D printing business, said that “Customers are looking at how to transform their (3-D printing) business from prototyping to production.”

Read more at USA Today

Procurement “Cut Off” Says Report

  • According to a new report, procurement teams in hotels are seen as not collaborating with other departments.
  • The Hotelier Middle East’s Hospitality Procurement Report 2016 shared the perception that procurement were “trying to do it cheap” from members across the region.
  • The report goes on to share some examples of best practice in getting procurement more involved.
  • These included having procurement represented at meetings with key suppliers, as well as in design meetings for major hotels.

Read more at Hotelier Middle East

UK SME Spend “Stalling”

  • A report from the Public Accounts Committee (PAC) has claimed that efforts to direct more public spending to UK SMEs has stalled.
  • The current Government set a target of 33 per cent of overall spend to be with SMEs by 2020, though despite major efforts, it doesn’t appear to be working.
  • One issue the PAC highlighted was a lack of clarity on whether the money was being spent directly with SMEs, or via larger contractors.
  • The PAC has also disputed figures stating that spend with SMEs was up from 6.8 per cent in 2010-11 to 27.1 per cent in 2014-15

Read more at Supply Management

Good News-Bad News Week for Global Tech Giants

The good news is that one of your favourite social networks is booming, the bad news is that one of your favourite tech companies is not.

Good News Bad News

It’s been something of a good news, bad news kind of week for a number of major global organisations this week. On one hand, alongside the success of the Big Ideas Summit 2016 (we couldn’t resist one last mention…), Facebook is bucking the trend for growth in 2016.

On the other hand, continuing (and very public) supply chain issues, as well as declining sales, put Apple firmly in the bad news column. And outside of the tech industry there was bad news in global manufacturing, as it became clear that lessons don’t appear to have been learned in Toyota’s supply chain following recent earthquakes in Japan.

Golden Quarter

At a time when other technology companies are beginning to feel the pinch, and slow growth is causing some real concerns, Facebook appears to be bucking the trend with its good news announcement on its first quarter growth.

Q1 of 2016 was the company’s strongest single quarter growth since 2014, with an overall revenue increase of 51.9 per cent. Combined with an increase in user activity (it’s estimated that two-thirds of Facebook users are on the site or app every day), it served to place Facebook far out in front of its competitors in both the social media, and tech, fields.

The revenue growth has been put down to a marked increase in the sales of mobile advertising on both its original platform, and on Instagram, which it purchased for over $1 billion in 2012.

What’s more, there is plenty potential for more good news, as Facebook is yet to release advertising for it’s other 2 major platforms – its Messenger service, and Whatsapp. There is also the release of Oculus Rift, the company’s virtual reality headset, to be taken into account, although this is unlikely to happen until next year.

‘The Fruit’ in Decline?

Facebook’s good news came as welcome relief for investors and markets, particularly in light of other first quarter announcements from the large technology companies came in under expectations.

Twitter’s earnings fell short of Wall Street predictions, with $595 million, compared to an expectation of over $607 million. Bigger problems for Twitter were a less than expected growth in user numbers, hindering the platform’s ability to drive advertising revenues.

However, the biggest news (though some might say not as surprising) came with the quarterly announcements from Apple. For the first time in 13 years, Apple reported a fall in quarterly sales, at nearly 13 per cent, to $50.6 billion. The tech giant expects this trend to continue in Q2, with estimated sales falling to around $41 billion.

Apple were not alone in feeling the effects of the slowing Chinese economy, where its sales dropped by more than a quarter. However, there was some good news for Apple fans. CEO Tim Cook told analysts that, “The future of Apple is very bright”, with a 20 per cent growth in revenue from Apple Music and App Store areas of the business.

However, many analysts are concerned that, in a market saturated with smartphones, unless the iPhone 7 is a game changer, then this decline could continue. With an announcement, and launch, expected later this year, it seems we will just have to wait and see.

Vulnerable Supply Chains

Technology wasn’t the only bad news area this week either. Toyota have come under fire for not learning the lessons of Japanese earthquakes in 2011, with their supply chain again showing severe vulnerability following earthquakes in the country in recent weeks.

Following the events of 2011, Toyota set out to create an “earthquake-proof” supply chain, working with suppliers to create the RESCUE (REinforce Supply Chain Under Emergency) system, aimed at spreading the risk in the event of future natural disasters.

The new supply chain was put to the test in April, and despite early promise, it seems that the same vulnerabilities in the supply chain still exist. The manufacturer shut 26 of its 30 Japanese production facilities in the middle of April, only reopening 5 at the tail end of the month.

With both Honda and Nissan now operating at full capacity, with minimal shutdowns, it seems that Toyota has yet to learn its lesson.

Do you work in the technology industry? What do you make of the latest announcements from Facebook and Apple? We’d love to hear from you – you can get started in the comments section below.

As ever, we’ve been keeping an eye on all the major headlines just for you…

Congress Votes Yes on Russian Rocket Purchase

  • US Congress have voted to purchase $540 million worth of Russian rocket engines, despite a ban on trading
  • The intention of the 2014 procurement ban was to end US reliance on Russian-made RD-180 rocket engines
  • The US relies on these engines to launch national security satellites into orbit, as the US-built engines are still under development
  • Critics say the $540 million will be spent by Russian on modernising its military

Read more at Space Daily

Japan Fury at Australia-France Deal

  • Australia has awarded France the submarine ‘deal of the century’
  • The $AUS50bn submarine contract is the largest defence deal in Australian history, but the move has infuriated Japan.
  • Japan’s Mitsubishi Heavy Industries and Kawasaki Heavy Industries submarine had been seen as early favourites for the contract.
  • In an unusually blunt criticism, Japan’s defence minister Gen Nakatani described Australia’s decision as “deeply regrettable”.

Read more at The Telegraph

Slow Progress on US-EU TTIP

  • Progress is slow on negotiations for a comprehensive Trans-Atlantic Trade and Investment Partnership, or TTIP, between the EU and the USA
  • Negotiators said they would push for a comprehensive TTIP before US President Barack Obama leaves office in January.
  • Among the deepest divides concern Europe’s food safety rules that exclude American beef raised with hormones, genetically modified foods and Europe’s many local food naming rules.
  • The deal exclude European demands for greater access to US federal, state and local government procurement, which often carries “buy American” or local content standards.

Read more at Euractive

Gorman Failing Overseas Workers

  • Australian fashion brand Gorman has come under fire for not doing enough to protect overseas workers in its supply chain
  • The 2016 fashion report by Baptist World Aid Australia graded Gorman as an ‘F’ for policies on preventing exploitation of workers in overseas factories
  • Although the organisation has an ethical compliance statement on its website, fans and wearers of the brand have reacted angrily to the company’s alleged lack of action
  • The company’s founder, Lisa Gorman, has now stated that they will be publishing supply chain audit reports on its website in the coming months to help prove transparency

Read more at The Guardian