LEVERAGING TECHNOLOGY IN THE LOGISTICS SECTOR
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TRANSFORMING SUPPLY CHAIN STRATEGIES AT GEODIS WRITTEN BY
SEAN GALEA-PACE PRODUCED BY
JUSTIN BRAND
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GEODIS
Phillipe Mahler, Chief Procurement Officer of GEODIS, discusses how his company is utilising technology amidst a digital transformation
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s businesses across the globe are impacted by digital transformation, companies in a diverse range of industries are tasked
with undergoing a technological change in order to accelerate processes. Phillipe Mahler, Chief Procurement Officer (CPO) of freight transportation and logistics firm GEODIS, understands the importance 04
of embracing technology in a bid to ease operations. Since first joining GEODIS in January 2010 as High-Tech Key Accounts Director, Mahler worked in a variety of different roles, such as Corporate Market Director and Transformation Director, before moving into his current position as CPO in early 2013. Split into five different lines of business, GEODIS’ operations include Freight Forwarding, Distribution and Express, Road Transport, Contract Logistics and Supply Chain Optimisation (SCO) which manages its customers’ supply chain by offering end-to-end solutions, enabled by the company’s processes, systems, infrastructure and personnel. Heading up the operations and procurement division, Mahler recognises the value of utilising his experience in supply chain to help him succeed in his current role. “My previous experience has allowed me to better
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GEODIS
“ Our mission is to solve and assemble resources,capabilities and technologies, and to better design the supply chain on behalf of our customers” — Phillipe Mahler CPO, GEODIS 06
understand the key drivers of the supply chain. After you’ve dealt with several customers and experienced different situations, you can take the time to innovate and begin to understand where the key areas are. I manage these key points very carefully because they’re either the points which are going to create difficulties in operations or the points which you can leverage to create value,” he says. “Our mission is to solve and assemble resources, capabilities and technologies, and to better design the supply chain on behalf of our
CLICK TO WATCH : ‘GEODIS – WE LOGISTIC YOUR GROWTH’ 07 customers. We buy services, resources
happen in the next six months to two
and technologies from the market and
years. Forecasting is taking the data
from our sister lines of business or from
from the past and then leveraging all
any other logistics service provider. We
the data announcing the trends and
assemble these solutions to create an
looking at how the world will change,”
end to end network for our customers.”
he explains. “I believe one of the biggest
With the procurement function trans-
challenges is transitioning from human
forming on an ongoing basis, Mahler
negotiation into a business which
reflects how GEODIS is changing the
scientifically predicts where you should
way it conducts its business to coincide
go. It’s a huge challenge; it’s the leverag-
with the latest industry trends. “On an
ing of Big Data.”
increasing basis, procurement is becoming more of a science that is
INTRODUCING TECHNOLOGY
based on data. It’s based on being
With technology enabling GEODIS to
capable of forecasting what’s going to
make its processes simpler, Mahler
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reflects on how the procurement
scenario which helps decide where
process has been transformed by
you want to go and how you want to
digitalisation. “In the past, procurement
execute the processes.”
was a question of understanding where
With innovation considered a key
the data was and then deciding at what
priority at GEODIS, Mahler understands
price it could be bought from the market.
the importance of ensuring technology
It’s always been a question of simula-
is adopted for a specific purpose that
tion and has all been done manually using
will benefit the company’s operations
Excel,” he says. “These days, we’re
– and is not merely implemented for its
able to capture much more data because
own sake. “When we want to utilise
it’s all in one place and technology has
new technology, the first thing I always
allowed us to use machines that help
do is to have a discussion with a group
us make decisions. Using the machine,
of key users of the current platform
you can do a ‘what if’ in a machine
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GEODIS
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“On an increasing basis, procurement is becoming more of a science that is based on data. It’s based on being capable of forecasting what’s going to happen in the next six months to two years” — Phillipe Mahler, CPO, GEODIS
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GEODIS
“ When you adapt, you’re already a follower.We don’t want to be followers; we want to be the leaders” — Phillipe Mahler, CPO, GEODIS
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to ask ourselves what we can do with
results, we’ll then make a decision whe-
this current machine and how we can
ther we want to adopt this technology.”
implement new technology that will
GEODIS has been recognised as
enhance what we already have,” explains
a ‘Leader’ by information technology
Mahler. “We have to establish an
research and advisory firm Gartner in
immediate need and ask ourselves that
its May 2018 Magic Quadrant for Third-
if we use this technology, will it bring us
Party Logistics (3PL) worldwide, which
value today, tomorrow or in the future?
evaluates third-party logistics providers’
It’s important to think about where we
ability to be a preferred global provider.
want to be in two years’ time and
With the company conducting business
understand how what we’re doing now
in the US, India and Haiti, technology has
will fit into that. When you have an
enabled each individual team to commu-
immediate value, you have future
nicate immediately and has allowed daily
potential value and, based on these two
operations to be sped up significantly.
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FORMING KEY PARTNERSHIPS
Some are very local, while some are
In order to achieve mutual success,
global and are capable of carrying
GEODIS has formed over 500 global
goods from Singapore to Mexico. We
partnerships. In particular, the firm has
really have all sizes of partnership.”
established a key relationship with the
The importance of establishing sign-
Commercial Relocation Network (CRN).
ificant relationships with other compa-
“Our collaboration with CRN has granted
nies to achieve mutual success is
us access to specialists everywhere in
therefore considered a top priority at
the US. Be it in California, Arkansas,
GEODIS. “Due to the way we operate
Seattle, New York or Miami, we have
our procurement activity, we’ve started
access to people who really know our
to move away from the customer/supplier
business and know what our specifics
relationship. We don’t think ‘I’m your
are – it’s very valuable to us,” says Mahler.
customer so you go and execute.’ Or ’I’m
“In general, we have lots of partners.
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GEODIS
execute’. Those days are gone,” he says. “Before beginning a partnership, it’s important to trust each other. You need to accept some level of transparency on the cost and what’s possible, as well as deciding what can and can’t be optimised. Once you’re there, you’re in a relationship which is completely different from a typical, traditional customer relationship because you’re together in the same boat, facing the same challenges and are both trying to create value for each company, as well as seeking 14
the best result for the final customer.”
FUTURE PLANS Looking to the future, Mahler is aiming to ensure GEODIS continues to lead the way and set trends in order to stay ahead of the competition. “We’re passionate about our business, have proven experience and possess a truly global presence. I believe those three things are what make us different from our rivals. It’s vital to have the best people working for us and investing in people is something we rank very highly at our company. We’re always on the lookout for new talent, as well as retaining what we already have through
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providing our staff with the opportunity to progress, change position or relocate to another part of the world. Innovation, technology and the people are considered our three key pillars,” he says. “At SCO we benchmark our solutions, approach and IT tools, and consistently look at the external world to understand what’s coming. Adapting is a word from the past. When you adapt, you’re already a follower. We don’t want to be followers; we want to be the leaders.”
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GEODIS T +44 843 3730999 www.geodis.com/gb