Welcome to Procurement News, part of our ongoing aggregate news series covering recent supply management headlines and trends pertinent to Chief Procurement Officers and other procurement leaders. Contact us with your news story here.
CPO News
BrewDog Appoints First Chief Supply Chain Officer
BrewDog, a multinational brewery and pub chain based in Ellon, Scotland, announced the appointment of Chris Fielden as its first chief supply chain officer, as reported in Food & Drink International. Fielden will be responsible for all aspects related to sourcing, production, packaging, and distribution of BrewDog beers and spirits.
Fielden is currently the supply chain director for Warp Snacks. He has an extensive background in the beverage industry that began at PepsiCo where he held multiple roles over 10 years, before joining Innocent Drinks for six years establishing its sustainable production site in the Netherlands.
“I am very excited about joining BrewDog,” said Fielden. “It’s a company that wants to do business the right way and that’s really important to me. I love the product and I love the company’s ‘people, planet, beer ethos.’”
James Watt, BrewDog CEO, added: “We’re really lucky to have someone of Chris’ caliber and experience join us. This is a new role, reflecting the continuing growth of the business and the ambitions we have for the future.”
Nancy Hapeman Appointed Interim CPO
Washington, DC. Mayor Muriel Bowser announced transitions of executive leadership in the Cabinet and appointed positions, including Nancy Hapeman as interim chief procurement officer, Office of Contracting and Procurement (OCP).
The Executive Office of the Mayor stated that as a longtime District government employee, CPO Hapeman began her District government career as an attorney with the Office of the Corporation Counsel, where she worked for 10 years.
From November 1997 to October 2017, she served as OCP’s General Counsel providing legal advice to the chief procurement officer and procurement staff, served as the FOIA Officer and the Ethics Officer, and helped formulate policies and procedures for the agency.
CPO Hapeman most recently served as deputy chief procurement officer, helping oversee OCP’s operations across government sectors.
Read the full announcement here.
Allen Olson to Lead Procurement at Open Book Extracts
Open Book Extracts (OBX), an NSF cGMP and ISO 9001-certified manufacturer of high-quality cannabinoid ingredients and nutraceutical finished products, announced that Allen Olson will join the organization’s leadership team as vice president of supply chain, reporting to the CEO.
The company stated that as a Lean Six Sigma black belt, Olson will leverage his experience to lead EHS, manufacturing, quality control, procurement, materials management, and logistics at OBX. He will be responsible for ensuring operational excellence across the company and will lead the continuous improvement initiatives that will optimize safety, quality, service, and efficiency to provide the highest level of overall client satisfaction.
According to Dave Neundorfer, OBX CEO, “OBX’s rapid growth in people, product and service offerings over the last four years has increased operational complexity,” he commented. “Olson brings decades of extensive supply chain and operations leadership experience in manufacturing companies and has a special passion for continuous improvement. He will empower our team to continue to raise the performance bar, enhance client satisfaction, and drive continued growth and profitability in the future.”
Read the full announcement here.
Supply Management News
Volkswagen Invests $1 Billion in EV Development and Procurement Center
Reuters reports that Volkswagen is investing around 1 billion euros ($1.10 billion) in a new development and procurement center for electric vehicles in Hefei, China, in a bid to better adapt its cars to Chinese customers’ tastes.
The aim of the center, dubbed “100%TechCo,” will be to reduce development times for new products and technologies by around 30%, involving suppliers at the early stages of product development to accelerate the time to market.
The unit, employing over 2,000 people, will launch in 2024, led by Volkswagen’s chief technology officer in China, Marcus Hafkemeyer.
($1 = 0.9116 euros)
CPOs Face Lithium Supply Uncertainty
Manufacturers that source lithium from Chile for electric batteries and other products may want to begin looking for secondary sources of supply. According to Reuters, Chile is moving to nationalize its lithium industry, leading to supply chain uncertainty for the electric battery market and others.
Currently, the country holds the world’s largest reserves of the metal, accounting for 30% of the global output. Reuters says Chilean President Gabriel Boric announced plans to create a new state-owned company to control its lithium. This could pose a significant supply chain issue for the world’s top automakers who plan to spend nearly $1.2 trillion through 2020 to develop and produce millions of electric vehicles, writes Reuters. Industry executives have been vocal about the impending lithium supply crunch.
According to Caspar Rawles, chief data officer at Benchmark Mineral Intelligence, “Automakers may be more trepidatious around committing to lithium supply deals from Chile until it’s clear what nationalization will look like,” he said. “Most automakers will have been looking for a diversified portfolio of regional supply before this anyway, but perhaps this makes other regions more appealing.”
