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Page 1: intune - Resolve Solution Partners · higher customer expectations are also contributing factors. Simply put, an SCCT is a central hub of expertise that captures and uses supply chain

intune

5 t h E D I T I O N | J u l y 2 0 1 6

Page 2: intune - Resolve Solution Partners · higher customer expectations are also contributing factors. Simply put, an SCCT is a central hub of expertise that captures and uses supply chain

index Good people from the Resolve Group

We celebrated the third birthday of Resolve on 1 July. Although it has been a relatively short journey in years, those years have contained far more in terms of experience gained and lessons learned. Did you know the following exciting facts about our business?

| Managed Services is now more than 50% of our business – in line with our strategy to outgrow the traditional service offerings.

| The Resolve group employs more than 1,500 people.

| With age comes simplicity: we have refined and reduced our offering from 28 to 15 service lines

| We have almost tripled our operating profit since we started in July 2013 - phenomenal growth under any circumstances!

| Although our diverse service offering makes our business challenging to manage, it has been our most valuable attribute in the current challenging economic times.

Even though we do not measure success in financial terms only, a financially healthy business leads to a sustainable association for all stakeholders - we as employees, our clients and our shareholders. In light of the severely challenging economic conditions of South Africa and the world at large, our financial performance for the financial year ending June 2016 exceeded all expectations. I wish to thank everyone for your contribution. The incentive that many of you will receive does not replace a sincere “Thank You” to you and your loved ones, whose support is of immeasurable value to Resolve.

Many of you are informed about the international consolidation of Imperial Logistics, which means that the logistics businesses in South Africa, Rest of Africa and International are now unified under a single leadership team. For Resolve, this development holds various exciting opportunities that will be refined in the coming months. There are exciting times ahead!

N E I T H E R H A R D W O R K

O N L Y , N O R H A R D P L A Y

O N L Y , I S S U S T A I N A B L E .

T H E W O R S T I N M Y

O P I N I O N , I S D O I N G

N E I T H E R O F T H E T W O … .

P A G E 0 1

Page 3: intune - Resolve Solution Partners · higher customer expectations are also contributing factors. Simply put, an SCCT is a central hub of expertise that captures and uses supply chain

view from

the

Earlier this year, the executive team identified our key strategic focus areas as:

| Successful establishment of Logistics & Supply Chain Control Towers enabled by ONE Network technology

| Establishing a presence in e-Commerce and e-Fulfilment in South Africa and the Rest of Africa

| International growth in selected specialist areas into preferred markets, including Analytics-as-a-Service, Microsoft AX xMMP suite, Cloud ERP offering and logistics infrastructure deployment.

While these are our key focus areas, and are an integral part of our growth strategy going forward, we will continue to develop the other areas of our business in line with their importance to our future success.

Please allow me to dispense some personal advice, with you and indirectly Resolve in mind:

| Neither hard work only, nor hard play only, is sustainable. The worst in my opinion, is doing neither of the two….

| Refrain from over-committing yourselves financially in your personal capacity. Financial stress negatively consumes almost all aspects of your being.

| Your most powerful contribution to the brand can be to deliver exceptional quality and live the dogma daily: “Consider it done….”

| We already have a critical mass about the values that define us. It is our responsibility to not only protect that, but to truly cement them as cornerstones of our culture.

| We need to remain vigilant. No business is immune to the serious negative headwinds in the economy.

| Spend time and bandwidth on your personal wellbeing and to gain fresh perspective. Be it on a mountain bike, next to a fire with a glass of wine, just hanging with loved ones, or curled up with a book.

| We will continue to amaze the market (and ourselves) if we stay true to our purpose: to make business better.

| We live and work in an exciting time with unique challenges. I reiterate that we are jointly and severally responsible to make Resolve an exceptional business!

Let us be serious about the business of making business better, but let us not take ourselves too seriously. Have a laugh and a proper dose of fun along the way!

Some say our growth aspirations are unnerving… We like a challenge to get out of bed. Join us for the next chapter of this story…..

My best regards,

corner5th EDITION|July 2016

Page 4: intune - Resolve Solution Partners · higher customer expectations are also contributing factors. Simply put, an SCCT is a central hub of expertise that captures and uses supply chain

Resolve’s recent R400-million partnership extension with Pick ‘n Pay represents our biggest logistics control tower project to date.

We were initially awarded a five-year contract by Pick ‘n Pay for transport managed services in 2012. The engagement was expected to yield significant savings on transport costs, largely as a result of integrated planning of demand and supply of transport services.

Core to the service are central planning and proactive execution management, ensuring compliance with distribution plans, which in turn improve customer satisfaction and reduce costs. The integrated service model optimises all logistics activities in Pick ‘n Pay’s outbound supply chain, which enables the extraction of maximum benefits from their strategy of increased centralisation at the distribution centres.

With the contract due to expire in 2017, Resolve and Pick ‘n Pay agreed an extension of the services currently offered to June 2020, as well as new services that include primary transport planning, management and optimisation, and the implementation of an integrated and outbound logistics control tower, enabled by ONE Network technology.

“This commitment by Pick ‘n Pay represents their confidence in our ability to deliver – with R600-million in outbound logistics costs saved thus far, and throughput increased by 16% year-on-year, Pick ‘n Pay sees the value of continuing their partnership with us,” says Heinrich Strauss, Managing Director at Resolve.

The new control tower will provide real-time updates across all aspects of the outbound logistics process, including warehouse performance. It will enable exceptions to the plan to be managed at all parts of the outbound process, and for the plan to be adjusted optimally in real-time, making the operation more efficient.

The system will allow Pick ‘n Pay and Resolve to collaborate with other third-party logistics providers in real-time, meaning better optimisation of labour and reduced labour waste. “It will also provide a forward view of logistics activity and vehicle requirements, enabling everyone involved to improve how they work together,” says Cobus Barnard, Group Executive: Retail Office at Pick ‘n Pay.

“We are excited that we have an opportunity to deploy world class technology to enable our managed services in building this end-to-end solution for Pick ‘n Pay,” says Strauss. “We are also fortunate to have a client like Pick ‘n Pay that is driven to improve and wants to push the envelope, allowing us to implement end-to-end best practice in the supply chain.”

W E H A V E A N O P P O R T U N I T Y T O

D E P L O Y W O R L D C L A S S

T E C H N O L O G Y

P A G E 0 3

contract for PnP

R400m

Page 5: intune - Resolve Solution Partners · higher customer expectations are also contributing factors. Simply put, an SCCT is a central hub of expertise that captures and uses supply chain

Giving back:

5th EDITION|July 2016

Resolve’s activities in the social and economic development sphere continue to grow, in line with our strategy to develop others through empowerment.

Our Enterprise and Supplier Development (ESD) initiative combines administrative, marketing and training support in an effort to assist our emerging suppliers to grow their businesses in a sustainable manner. As part of this initiative, Resolve facilitated training for Exempt Micro Enterprises (EMEs) and Qualifying Small Enterprises (QSEs), with the facilitators being Resolve employees, and the training done on-site in Samrand.

Training sessions included Microsoft Word, Excel, PowerPoint and Outlook skills, as well as supply chain fundamentals, project management training and telephone skills, and all training is at no cost to the suppliers.

Another ESD project Resolve embarked upon this year was to help establish an empowerment art company called Amandla Art. Originally an NPO, Resolve assisted Amandla Art to register as a company, with shares held by the artists themselves, and offers guidance on turning a non-profit organisation into one that can support itself. The artists range from painters, illustrators and graphic harvesters to those who knit, crochet, sew and create beaded artwork.

In a combination of ESD and CSI (corporate social investment), Resolve involved the Amandla Art team in our annual Mandela Day project – this year Resolvers knitted and crocheted 67 blankets for the 67 Blankets for Mandela Day campaign. From humble beginnings, this campaign has grown to include “knitwits for Madiba” from countries all over the world, and holds a Guinness World Records for the biggest hand-crocheted blanket in the world.

The Amandla Art crafters held a knitting and crochet training session at Resolve, stitched together some of the squares created by the Resolve team, as well as helped contribute blankets to our total. On the 15th of July, Resolve handed over the blankets to Carolyn Steyn, founder of the 67 Blankets initiative, who was delighted with our efforts.

empowermentand CSI

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P A G E 0 5

Supply chains across the world have become complex global networks, no longer merely focused on vertical integration within the enterprise. With each trading partner only focused on a narrow slice of the fulfilment or manufacturing process, visibility and control across the broader supply chain have decreased, and enterprise systems and management strategies have largely failed to keep up with the new supply chain business model.

Supply Chain Control Tower (SCCT) technology is increasingly proving to be the answer to these challenges, with the single biggest driver of the development of this technology being the complexity and management challenges of today’s global supply chains. Big data, outsourcing and higher customer expectations are also contributing factors.

Simply put, an SCCT is a central hub of expertise that captures and uses supply chain data to provide improved visibility, which enables better decision-making in both the short and long term, for alignment with strategic goals. It does so using a combination of technology, processes and people that work together in concert to integrate, optimise and synchronise the activities of various parties in the value chain, despite their being otherwise autonomous.

SCCT technology does not stand alone, however. Without the right infrastructure in place, a supply chain control tower would not be able to operate optimally, or sometimes even at all.

Resolve has long seen the need for SCCT solutions across Africa in various applications – from complex healthcare networks to fast moving consumer goods and retail networks. Our combination of centralised expertise and capabilities, processes that drive integration and orchestrate activities, and cloud technologies that make sense of big data, will be the key to unlocking value in supply chains going forward. Our expertise and experience in various industry arenas position us uniquely to deliver this solution anywhere supply chains need improving.

chain control towers

explained

supply

Page 7: intune - Resolve Solution Partners · higher customer expectations are also contributing factors. Simply put, an SCCT is a central hub of expertise that captures and uses supply chain

A D V I S O R Y S E R V I C E S

C O N S T A N T L Y L O O K S F O R

P R O J E C T S W I T H L O N G E R

T E R M T R A N S F O R M A T I O N

P O T E N T I A L

Resolve advisory services

The future for

5th EDITION|July 2016

The Advisory division of Resolve remains positive about the outlook for the business, and focused on finding ways to make business better for our clients, even though the state of the global economy creates a challenging operating environment.

Tertius Hickman, Executive of Advisory Services, says one of the major challenges in selling advisory services is the ability to identify and extract value for clients regardless of the prevailing economic conditions. “Lean times typically force clients to focus more acutely on cost optimisation and improved productivity,” he explains. “Advisory therefore needs to convincingly identify, unlock and enable supply chain savings and address business practices that drive higher costs, low productivity or any matter of opportunity cost in the supply chain. In more expansive economic times we expect to see clients shift focus again to challenges presented by growth such as constrained capacity, expanding their network footprint or placing inventory optimally to capture market share. So if we are not seen as a partner and an enabler of optimisation or profitable expansion we will not be selling much!”

The way Advisory approaches client relationships has been refocused to lower the barriers to entry and to drive longer partnerships through risk-based incentives. Henricus Verhoef, Business Unit Manager of Technology and Enterprise Systems, explains the change in their approach: “Our aim is to be more aggressive with regards to our base pricing while adding performance incentives that are linked to added value for the client. So where possible the focus has moved from pure project scope and deadlines to include identification and delivery of added value, for which we are incentivised.”

Henk van Niekerk, Business Unit Manager of Supply Chain Advisory, sums up the new mandate that is in line with the overall vision of Resolve: “Essentially what you want is that the value to the client should be a multiple of what they pay for the total cost of the engagement.”

A slow economy can, however, test the resilience of consulting teams. “There is a duality in the opportunities brought by tough economic times, because on the one side we potentially get more opportunities, but on the other side client pressure increases,” explains Verhoef. “We can certainly see and feel this pressure and it can put strain on relationships if not managed carefully.”

Advisory Services constantly looks for projects with longer term transformation potential where they can move from high level supply chain diagnostics to quantitative modelling and supply chain strategy, best practice definition and process alignment, technology requirements definition, organisation design or alignment and finally to offer implementation support. The Technology and Enterprise business believes that their project and programme management services for large scale implementation projects hold significant growth potential and are hunting for complex, large scale projects.

So yes, times might be tough but Resolve Advisory are forging purposefully ahead!

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P A G E 0 7

#Life atResolve

Market Day Social

Resolve Turns 3

Microsoft World Partner 2016

AIDS2016 Conference

Youth Day

Integration Conference

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5th EDITION|July 2016

#Life atResolve

Wellness Day

Leadership Development Programme

SAPICS 2016

All American Social Rock the Run

Page 10: intune - Resolve Solution Partners · higher customer expectations are also contributing factors. Simply put, an SCCT is a central hub of expertise that captures and uses supply chain

T H I S P R O J E C T I S O N E

O F A N U M B E R O F

S I M I L A R P R O J E C T S

R E S O L V E C A P A C I T Y H A S

C O N D U C T E D I N A F R I C A

transformingthe Pharmaceutical Supply Chain in Malawi

For the millions of people living with HIV/AIDS in developing countries, cost-effective, reliable, secure and sustainable supply chains can save their lives.

To help improve the healthcare supply chain in Malawi, the UK and US Governments, through the Department for International Development and United States Agency for International Development (USAID), the US President’s Emergency Plan for AIDS Relief (PEPFAR) and Presidential Malaria Initiative, are working together with the Malawi Ministry of Health to reduce the challenge of lack of appropriate medical supplies storage capacity in Malawi’s health facilities.

The Supply Chain Management System (SCMS) awarded Resolve Capacity the contract to install 115 prefabricated storage units across the country using its unique Storage-in-a-Box solution. Work commenced in June 2016, and with teams installing eight units a week, the project is due for completion in October this year.

These prefabricated 70 m² modular storage units are pharmaceutical compliant, validated, fully kitted out units that can be deployed immediately. Delivered in 40 foot containers, Storage-in-a-Box brings supply chain solutions to both remote and urban settings with ease, allowing networks to develop where they are needed, and not just where they have traditionally been able to be deployed.

SCMS is managed by the Partnership for Supply Chain Management (PFSCM), established in 2005, and is administered by USAID. It provides a reliable, cost-effective and secure supply of products for HIV/AIDS programs in PEPFAR-supported countries.

Before SCMS, shortages and stock-outs of commodities caused dangerous “treatment holidays” for patients. Emergency orders wasted money on rush fees and high freight costs. Lack of inventory control wasted valuable commodities due to expiry, improper storage and theft. Poor coordination led to redundancies and gaps in service.

“This project is one of a number of similar projects Resolve Capacity has conducted in Africa,” says Arno Haigh, Managing Executive for Resolve Capacity. “Our Clinic-in-a-Box™ and Warehouse-in-a-Box™ solutions have been instrumental in transforming healthcare solutions in a number of African countries. We look forward to completing this project in Malawi and playing a key role in streamlining the country’s pharmaceutical supply chain, which will in turn have a positive impact on healthcare in the country.”

P A G E 0 9

Page 11: intune - Resolve Solution Partners · higher customer expectations are also contributing factors. Simply put, an SCCT is a central hub of expertise that captures and uses supply chain

efficiency for

Prodist Prodist is a wholesale distributor of agricultural requirements, hardware, general merchandise and irrigation, focused on the development of an efficient channel of supply into the agri-business and hardware retail store markets in South Africa and neighbouring countries.

In 2015, Resolve’s Advisory division performed a complete warehouse assessment for Prodist. This led to the implementation of a new approach, which allowed for the consolidation of all orders, with invoices accompanying the order. The implementation of this system in the Prodist warehouses started in February this year.

Resolve’s feedback dealt extensively with the possible change in direction and philosophy of the warehouse to move from a focus on a pick-and-pack/hand-over-to-courier approach, to a more sophisticated operation supporting a pre-defined customer promise and the ability to hand over consolidated orders within a specified time limit. This process also led to the complete outsourcing of the warehouse operations, both in Pomona and Bethlehem, to InSync Solutions, a Resolve subsidiary and specialist warehouse management company.

InSync’s approach to consolidation and living up to a pre-defined customer promise supports Prodist’s view and strategic direction with regards to service delivery.

Apart from the ability to consolidate orders, the new process will mean faster turnaround times, with improved productivity and accuracy. The system was first implemented in Prodist’s Bethlehem warehouse, and then in Pomona, which was done in stages to accommodate the interfacing of their ERP system with the new warehouse management system in such a way as to minimise disruption. It was completed in June this year.

The new warehouse management system is already showing an improvement in customer service, with fewer boxes going out, and consequently, fewer invoices. More customers are receiving their full order in one delivery, and synchronised picking means that orders are picked on the same day, with picks from different zones performed in a similar time frame to streamline packing.

There are still challenges to be faced, with the new system requiring changes in operator behaviour. Solutions to this include the implementation of a real-time performance management system that records and tracks both performance and deviations from the process. This allows for immediate corrective action, including training and holding people responsible for volume and accuracy of orders.

Over the remaining two and a half years of this 3-year contract, InSync Solutions is looking forward to making an even bigger difference to Prodist’s service levels, helping them deliver on their customer promise.

Improved

5th EDITION|July 2016

Page 12: intune - Resolve Solution Partners · higher customer expectations are also contributing factors. Simply put, an SCCT is a central hub of expertise that captures and uses supply chain

P A G E 1 1

I N O R D E R T O S T A Y A H E A D ,

B U S I N E S S E S N E E D T O S T A R T

F I N D I N G W A Y S T O U S E D A T A

T O C R E A T E V A L U E

Analytics as a service

There is a lot of talk about data in the business world of late – big data, data analysis, real-time data. In the past decade, the leaps and bounds made in the quantity and quality of data are almost incomprehensible. Every day, we create 2.5 quintillion bytes of data — so much that 90% of the data in the world today has been created in the last two years alone.

In order to stay ahead, businesses need to start finding ways to use data to create value, as well as drive business improvement, or even monetise their data. Resolve’s new business unit – Analytics-as-a-Service – helps clients use their data to make their businesses better.

The objective is to identify opportunities using the client’s data, and assist in guiding the client to turn these findings into actionable projects or initiatives. The Analytics team at Resolve uses the term Data:CSI – they look for the “crime scenes”, things that went wrong or were sub-optimal, and identify the reasons behind them, using data. They create supporting, factual information that enables improvement and supports decision-making.

Building a cost-to-serve model is the best starting point for this type of service, as it will uncover several opportunities during the process, and give all parties involved a good understanding of the business concerned. It is also able to be updated and used to generate the value at stake for any identified opportunity, thus providing targets for benefit tracking.

While data analysis typically occurs annually in most organisations, the Analytics-as-a-Service team provides a monthly service, with weekly or even daily views and tracking as a value-add in some instances. Instead of waiting up to a full year to use data to see and understand the impact of certain activities and decisions in a business, these more regular checks mean concerns can be addressed and activities adjusted more rapidly.

Anomalies and deviations from the norm can be investigated, and management can make decisions based on better information, resulting in streamlining at an operational level in a far more responsive manner. This hunt for continuous improvement on behalf of their clients is clearly evident in the Analytics business unit, and data is their weapon of choice.

Page 13: intune - Resolve Solution Partners · higher customer expectations are also contributing factors. Simply put, an SCCT is a central hub of expertise that captures and uses supply chain

Resolve is happy to announce a strategic partnership with South Africa’s fastest growing mid-tier cloud ERP solutions providers, One Channel, to bring Acumatica to the African market – a cloud ERP and business management software solution that empowers mid-size businesses to unlock their potential and drive growth.

Built on the world’s best cloud and mobile technology and a unique customer-centric licensing model, Acumatica delivers a suite of fully integrated business management applications.

Cloud computing (“the cloud”) has quickly become one of the leading technology topics in the world, driving most of the new innovative disruptive business ideas over the last few years – Facebook and Uber are just two of the many.

Resolve foresees a huge adoption of cloud-based applications for mid-sized organisations and there has already been an exponential growth of interest in Software-as-a-Service (SaaS) and cloud-based solutions over the past year.

Acumatica is a 100% web based ERP and a frontrunner in providing a nimble technology platform that can quickly adapt to business changes. Its flexibility is further enhanced by the fact that it is capable of running very large numbers of users in a multi-tenant cloud environment, or can be deployed on-site if a company would prefer. Any of the deployment options still offer the full SaaS advantages with any degree of customisation required.

Thousands of organisations are moving to true cloud ERP and mobile workforce solutions, and PwC has projected that the growth of SaaS will more than double to $78-billion by 2016, while investment in traditional ERP will decline by over 30% to less than $15-billion.

Acumatica is where agility and usability meet peace of mind, and this partnership will expand Resolve’s offering to cater for a broader spectrum of client needs. We understand the dynamics, challenges and opportunities of our clients’ industries and value networks, and we inform and enable their strategies to deliver improved business performance.

welcomeacumatica

C L O U D C O M P U T I N G H A S

Q U I C K L Y B E C O M E

O N E O F T H E L E A D I N G

T E C H N O L O G Y T O P I C S

I N T H E W O R L D

5th EDITION|July 2016

Page 14: intune - Resolve Solution Partners · higher customer expectations are also contributing factors. Simply put, an SCCT is a central hub of expertise that captures and uses supply chain
Page 15: intune - Resolve Solution Partners · higher customer expectations are also contributing factors. Simply put, an SCCT is a central hub of expertise that captures and uses supply chain

LeadershipDevelopment

Programme

5th EDITION|July 2016

As part of our commitment to leadership development throughout the organisation, and in line with the pillars of our employee value proposition, Resolve embarked on a year-long Leadership Development Programme in July last year, facilitated by the well-known Schuitema Excellence Group.

The programme was custom-developed for Resolve due to our unique requirements, and Schuitema not only oversaw the architecture of the programme, but project managed it as well. The main focus of the programme was integration and collaboration, developed through the theme “Leadership Care and Growth”.

Based on Schuitema’s Human Excellence Model, the programme’s foundation was based on the understanding that in all spheres and at all levels of human activity, excellence is dependent on individual intent to serve and to make a contribution.

The “sweet spot” at which this intent is most effective is at the intersection of team excellence (teams excel when interactions between members are collaborative rather than competitive), leadership excellence (people go the extra mile for leaders who care for and grow them), and personal excellence (the maturation of intent to give unconditionally).

The leadership development that results from implementing this model delivers enhanced contributions from employees and leads to improved organisational results. The process combined diagnostic work, facilitated face-to-face workshops, site visits, virtual online tutoring, project work and breakaway sessions. Participants were divided into teams called “pods”, which remained together throughout the development process and worked on projects together.

The final LDP session was held at the end of June this year, and included a last round of exercises to entrench the lessons learned throughout the programme, videos that were made by each pod about their learnings, and an illustrated summary of the year’s key points, drawn by the artists from Amandla Art. The pod with the winning video was The Woo! (Ryan Hollander, Paul Dickson, David Luppnow, Gerald Koeberg and Eldette Davie). Resolve is looking forward to seeing all the participants continue to grow as leaders into the future.

Page 16: intune - Resolve Solution Partners · higher customer expectations are also contributing factors. Simply put, an SCCT is a central hub of expertise that captures and uses supply chain

5th EDITION JULY 2016 +27 12 492 1001

[email protected]