Supply Chain
Technology Podcast

SUMMARY KEYWORDS

Emerging technologies, electrified vehicles, regulatory compliance, digital twin, AI capabilities, supply chain resilience, transport management, agile approach, ESG compliance, multi-category strategy, digital tracking, customer insights, e-commerce network, competitive advantage, innovation mindset.

SPEAKERS

Ian Barber, Scott Mears

Scott Mears  00:00

Virtual reality will revolutionize driver training and simulation in the transportation industry.

Ian Barber  00:06

Thumbs up.

Scott Mears  00:07

Emerging technologies pose a threat to traditional shipping methods?

Ian Barber  00:11

I don’t think a threat but an opportunity.

Scott Mears  00:13

Who is winning a race across London, Usain Bolt, an autonomous electric truck, or a drone?

Ian Barber  00:21

Depending on the time of the day, it could be the drone. They’re in London traffic, it could easily not go very far on that electric truck.

Scott Mears  00:38

Welcome to the Supply Chain Tech Podcast with Roambee. Scott Mears here, Marketing Manager at Roambee and your host. We thank you for joining us today. In this episode, we speak with Ian Barber. Ian is the European Transport Manager at British American Tobacco. We delve into BAT’s journey through emerging technology. First, we learn why BAT is focused on electrified vehicles, not autonomous vehicles or drones, and how tech is helping them overcome regulatory compliance and trade challenges globally. Finally, we discuss the role Roambee is playing in BAT strategy, and how they stay competitive in an innovation driven market. Welcome Ian, how are you doing today? It’s great to have you on board, and it’s really exciting to have you on this episode today. And, you know, we’re going to be diving into, you know, BAT’s journey through the emerging transport technology, which is one we’ve not actually covered as much on this podcast. You know, we’ve done a lot of AI, you know, the AI boom we’ve, at the moment, we’ve done a lot of AI talk and other tech as well, but I don’t feel like we’ve covered this as much, so I’m excited to dive into that, and I feel like you’re the man to guide us through that in this episode today, absolutely. And when I was actually looking at your profile, I must say, you have an impressive 18 year journey with British American Tobacco. You have a really impressive, you know, seven different positions, an 18 year journey. So I really do feel you are uniquely positioned to really dive into this topic. So I am interested and excited to dive into, you know, that really strong journey that you’ve had there. Before we do dive in, I like to do a bit of an icebreaker, you know, I always like to ask a bit of a funny question, just to, you know, get into the episode. So you must have heard of some funny and strange excuses throughout your life, but what specifically, what’s the funniest or strangest excuse you’ve heard for a transportation delay.

Ian Barber  02:45

Okay, so I have a few, but I was trying to think for the funniest, the funniest one. So we had a good one where we had a missed delivery. Then we chased the driver down, we asked him for them, you know, an explanation what’s happened, and the feedback that we got was the taken a stop to go to church on his route, on his way there, and and the priest was late, and then the caused him to be late to his delivery points either. And I’m sure you root cause that as maybe divine intervention, but it was an unusual one, a difficult one to the receiving site where they’re expecting to get their goods. But an interesting one nonetheless.

Scott Mears  03:28

Wow. That is, wow. That is interesting. That really, that’s a great answer. And I love how it’s not the. Yeah, it’s the priest’s fault. It’s the priest.

Ian Barber  03:38

If the priest would’ve been on time, he would have been on been on time. Yes,.yeah.

Scott Mears  03:45

Well, that’s a great one. I love that answer. Fantastic. So now let’s, let’s jump into, you know, the meat of this episode, and that very much, is understanding, you know, BAT’s journey with emerging technology. And I know that not just the tobacco industry, but all the industries out there, and everyone that listens to this podcast is going to get a lot of value from understanding how you guys are navigating emerging technology. Because, as we know, you know, emerging technology can be super exciting, and I look at it like a bull in a china shop. You know, it’s you see all these shiny things, and they’re all there, and they’re all shouting at you, Hey, look at me. Hey, look at me. And you just want to take them all. But I think what we realized definitely supply chain leaders, that you need to sit back and answer, is this actually going to bring value to my strategy and to the company, and that’s what I want to dive in today, is how you navigate this, and what those technologies you have identified are those ones that do take you forward in BAT. So first of all, I just want to get started at the start, and that’s what are some of the emerging technologies and transport that BAT is currently exploring?

Ian Barber  05:02

Well, I think, like most people, yeah, a lot of our, a lot of our focus is now on our emissions. So there’s certainly a big drive there where we need to, we need to start preparing ourselves for for the future and quickly, right? So one of the things we’re focusing on is our roadmap to to achieve our target. So we’ve committed, as many companies are as well, I’m sure, to the 2030 we want to reduce our scope free emissions by 50% but it’s a difficult journey to get there. So certainly, in that space, there’s going to be a lot of emerging technologies which we need to be in a position to capitalize on. So I think electrified trucks is certainly one. But not just though, that. I think we’re going to have to really consider a range of options, and I’m sure there’s a silver bullet to the problem. So we really need to think about what’s the what’s the right fit for the right things in our network, and we have quite an expanse of different sorts of lanes we need to cover. So we’ve got some very long lanes which probably don’t fit with an electric truck in its current capability. We have some very short lanes which would be very practical. So it’s really about trying to map out what’s the right solution for the right fit for that type of demand. So that’s certainly one in terms of the other bits, really is a lot on digital technologies. I think you mentioned AI, yeah, that’s certainly something which is in everybody’s in everybody’s mind. But I think you first of all need to be trying to answer the right questions, right? So our focus a lot is on resilience at the moment, yeah, we want to say that we have resilience in our in our supply chain run and in our transport network. Be it on service, but be on cost. Be it on sustainability. We need to make sure that we’re fit for purpose today and fit for purpose in the future. So a lot of the technologies and emerging technologies around digital capabilities are around, how do we get the right sensing? Where’s the market going? What’s where’s the industry going? How do we make sure that we have the right insights around that to prepare ourselves for, for what we need to deliver?

Scott Mears  07:07

So it seems like you’ve got quite a few you’re, you know, exploring and, you know, identifying that value is very key, as you mentioned, and I just want to dive into so I know initially, before I do dive into that electrified trucks that you did mention, is, why are you not mentioning, and this may be simple to you, but I do want to bring this up to the views as well. Is, why are you not mentioning, you know, autonomous vehicles, and even you know, as far as like drones in your strategy?

Ian Barber  07:46

With these capabilities that we never say never, right? And I don’t think that they’re not within our thinking, but there’s certain challenges to us which maybe limit our capability in the short term, right? So, so one thing is that our products require age verification, right? So, so to deliver something to it to a consumer, you need to make sure that we’ve, you know, delivered that in a compliant way. And you need to make sure that you know, having, having a person do that gives you the opportunity to make sure that you’ve checked those, those things, right? So that’s that’s certainly one of the elements. And I’m sure over time, the technologies will advance, and there’ll be all sorts of face recognition and and they’ll expand. But that’s one of the limitations. I think the other thing is that our industry isn’t, let’s say our traditional industry is not very e commerce heavy. It tends to be more retail outlets where we do our trade now, as part of our our strategy, we’re diversifying massively, right? So we’re moving away from traditional combustibles, we’re bringing a multi category, network and marketing offers to the consumers, and that opens up different opportunities for us, where, in the long run, there may be, let’s say, some some advantages that we can take for those types of technologies. But it’s, it’s a progression we’re aiming to build and be strong and be a big player in this area, and we’ll see potentially, then more opportunities to to get more value from those types of technologies.

Scott Mears  09:18

That makes sense. You know that that’s good. It’s nice to know that, you know, you’re not completely dismissing it. But again, it’s going back to you’ve identified that, you know, there’s not a huge value, and that this moment in time with that technology is and to be honest, I when I asked that question, when I was thinking is, you know, I can’t really imagine drones flying around with packs of cigarettes going round. It’s an interesting world to living in. Yes, the age verification. What you mentioned, you know, how on earth would that? Would that happen? So, yeah, it’s definitely an interesting one. Yes. And how? So, how do envision, you know, you mentioned electrified trucks, AI and a couple of other things. How do you envision these impacting the future of transportation within BAT’s supply chain?

Ian Barber  10:13

Well, I think electrified trucks, everybody will be customer of, right? So the I think we face the same challenges as everybody else, right? So you’ve got a high investment cost in the short term, and you have range of limitations, right? So it’s not something which necessarily is an easy sell sometimes to the organization to say that we need to, we need to invest into these things, but what we want to build on, as I said, Is this roadmap, right? So we say that we’ve committed to an ambition. We need to get there. This is how we’re going to get there. So this is, this is the way that we’re approaching it. We’re in a discovery phase. I would say in terms of electrified trucks. We’ve done a few case studies. We’ve mapped out some, some plots in our network where we think they would bring some advantages. We’ve had some, let’s say, some capabilities in the past, where we’ve used them around sort of shunting operations and things like that, which is, you know, very capable kind of solution for those types of requirements, but they’re not going to make a significant difference to our overall emissions generation unless, unless we come with a proper strategy. So there’s lots of things we’re exploring. I think there’s also things like battery swaps, which I think is an interesting kind of emerging technology, which really could then it seems be a good option to increase the range, right? So you can, if you can lift out the batteries and have a fully charged set, and then keep going. And that’s obviously going to bring a, bring an advantage to that, to those vehicles. So I think certainly we are, we are going to pursue that, and that will be so we’re very interested in the future of that, of that mode. And the other part of the question, Scott, I just remind was on the digital or the digital technologies, right?

Scott Mears  11:55

Yeah. And, you know, any of emerging technologies you have your eyes on, how do you see them impacting, you know, the future of transportation for BAT’s supply chain?

Ian Barber  12:06

yeah, so think in terms of digital capabilities, AI. So for us, it’s about bringing transport into, let’s say, the wider planning of BAT as an important and kind of fully transparent part of the network, let’s say, right? So, so when we’re planning our supply, and a lot of our supply comes from from China, a lot of it’s got long lead times, so we need to make sure that we’re giving really good quality insights to our planning guys when they’re planning their inventories, when they’re planning what they need to supply. I think we’ve had maybe a bit of a disconnect at times where we’ve got good information, we’ve got good data, and maybe we’ve not asked the right questions, right? So certainly, a part of the plan for us is to really create what we consider, what we call an ultimate control tower, right? So, so running, let’s say, from from a demand signal to through a customer receiving their final products, a seamless and synchronized demand plan. And where we see some some good opportunities now coming from emerging technologies, a lot of them, I think, have been around for a while in terms of, you know, tracking systems and eta predictions, but really trying to build on those capabilities and provide really sound insights to our planners on what they should expect and giving them a risk sense of when they need to react. So this is where we’re focusing. And then the next part, then is going to be around, like I mentioned our resilience, yeah, so we we see real opportunities to drive value. I think that a lot of the market insights which are available getting better, getting more accurate, they’re giving us, you know, predictive information which enables us to set up our network, right so to make sure that we’re not reacting to something that happens when we’re in the problem, but actually preparing for it in advance, and being in a resilient way, able to cope with the demands and the changes, and being that we’re kind of expanding our business and diversifying into new markets, it’s really important for us that we’re able to judge those things and to be able to react to them. So they’re, they’re new to us, they’re new to the consumers. They’re new to to the markets themselves. So there’s, there’s a lot of volatility, a lot of change there, and being able to react with good insights gives us a competitive advantage.

Scott Mears  14:39

That’s really great tea, you know, also focusing on that competitive advantage, you know, I what I’m hearing here. You know that sustainability, you’ve been very conscious of sustainability when making these decisions, conscious of the risk. Identify, being able to identify make risk easier and more identify. Bull in your transport, transportation as well, which is, of course, key elements we need to look out for to improve our supply chains. And I’m just wondering, is there, do you see some challenge? Any challenges? You know, we’ve definitely spoken about the opportunities. And please do share more if you feel you haven’t touched on them yet. But what challenge is, do you see when adopting these new emerging technologies that you’ve mentioned?

Ian Barber  15:33

Okay. So I think one of the challenges is it’s about trust a lot of the time as well, right? So I think the technologies are there and they’re capable, and we need to, we need to adapt ourselves, right? So we need to, we need to be able to build trust that we’re providing the right information for people to make the judgments on. So that can be one challenge. It’s a bit of a more of a change management challenge, to be honest. And I think it’s applicable to any time that you bring a new technology, and it takes, it takes time to kind of to build that, that trust. And then if we really want to get to the point where we start to push the about the boundaries a little bit, yeah, and we start to really introduce, you know, some of the, some of the AI capabilities, and really take a step back and allow our systems to drive the output for us. I think that’s been area where we’ve struggled a little bit before we kind of end up with kind of, let’s say, US policing a lot, and kind of sort of taking parts of it and not really being able to really fully kind of unleash the capability. So I think that that’s going to be also a bit of a challenge where we maybe we don’t get that sort of immediate impact that we that we expect, because we little bit cautious sometimes, I think, on the on the more physical kind of technology. So again, talking about the electrification of vehicles. Clearly, there’s going to be changes to the networks that were required from that. So it’s not just the trucks themselves or the whole infrastructure around that is going to be a big challenge for everybody, right? So you’re going to need the charging capabilities, you’re going to need, you know, to be able to keep those networks running. But there’s also a bit around people’s expectations, right? So I think everybody’s lived in the world of diesel trucks for for the last 100 years or so, right? So we’re, kind of, everybody’s familiar with that, with that kind of technology, and everybody’s got an expectation in terms of speed and cost and everything around that the world needs to change. And we need to, kind of, you know, influence our stakeholders to understand that this is, this is where it’s going to this is how it’s going to be, right? This is, this is what’s going to be the requirements going forward for, for the for a transport network. I mean, it might look quite different, in some cases, to how it looks today. So I don’t think there’s, I don’t see major, let’s say technological challenges. I think a lot of it is more on people adopting to those changes, and, let’s say, making the most of what’s available.

Scott Mears  18:04

I really like your answer there. It’s interesting, because I feel like people can be on either side of that, you know, is it a human challenge, or is it a technology challenge? So, you know, I like that. You know, it seems like you’re embracing that technology, you know, is getting there. It’s proving itself. It’s more of, oh, this is very different. This is this. We have to move a lot of pieces here. And you know what? What the roles were a minute ago? They’re not the same. There are now new roles. There are some roles that maybe don’t even exist anymore, and that can be scary. And I completely understand the sense that’s interesting, that you identify that in BAT as it’s more of a human thing that we need to have come.

Ian Barber  18:56

The skills that you require are different. So that’s another part of the learning. And when we focus quite a lot on, you know, building up our digital technologies and capabilities within our organization to to get ourselves fit for this new requirement, right? So we’re investing a lot in in learning to make ourselves capable to take advantage of these opportunities.

Scott Mears  19:21

And I want to get some idea. I know you’ve mentioned a little bit already on some current sort of POVs you’ve done, but is there any you know behind the scenes you can give us into any initiatives or pilots that your projects you’ve run already with some of this technology?

Ian Barber  19:42

One area we’re looking at very closely is on digital twin. So, because of the changes which we’re going through, our networks becoming very dynamic, and we need to be able to judge quickly what’s the. The what’s the cost, or what’s the benefit of those changes, and how do we make sure that we build efficiently a network which is capable to continue to deliver the right value? So that’s certainly an area where we see a lot a lot of potential for us to be able to be agile in our decision making. So as as demand moves different parts of the continent as different commodities and categories are deployed, we see big shifts and and with those come some challenges, but also quite a lot of opportunities in the way that we can be more efficient. But what’s often the challenge of you, you know, I’m sure lots of people have been through kind of heavy network review studies. They take a lot of time to get, to get an answer, and sometimes by time you finish the study, the network’s changed again. So you’re kind of, you need to be more agile in this space. And that’s one an area we see some real kind of, some real potential for us, particularly with the nature of the transition that we’re going through.

Scott Mears  20:59

that where agility comes back. You know, it’s, you know, agility. It’s so important though, isn’t it? You know, it’s just interesting how it does continuously come up in these conversations that I have, and just being able to, you know, the people who can be agile and implement it in, you know, a safe way into the company, the ones that get that competitive edge. So it’s interesting that you bring this up again in this conversation. I’ve definitely got some questioning to dive into that, as I’d love to know how a bat is doing that to, you know, stay agile. But before we do dive into that section is, I want to just do a quick insight into how you’re using tech to overcome regulatory compliance and trade challenges. I think this is also interesting. You know, we’re focusing a lot of our attention we get. I mean, both of us go to a lot of events, and there’s a lot of attention around, you know, technology for sustainability and and visibility, and, you know, understanding the condition and location metrics of all our shipments and assets. But I haven’t seen as much around how people are leveraging technology for compliance and trade challenges, so I want to dive into this for a moment. So just before I do is what was some key considerations for BAT and maintaining compliance with transportation regulations while operating, of course, in multiple, many regions.

Ian Barber  22:22

Yes, good question. I think there’s a kind of a quite a variety of things that existed in this space, right? So I think in terms of, yeah, you mentioned, terms of ESG compliance, and in terms of, certainly, there’s a lot coming with, you know, EU regulations on mobility packages and these things have an impact, right? So we see that. We’re not, let’s say, required to plan around it as much as our carrier base would be, but we see the impact and we’re aware and we need to adjust for that. I think one of the the other big changes for us as an organization is around so I keep mentioning our multi category strategy, just it opens up different areas to the network which we’ve never really kind of had such a need to be so so focused on before, and a lot of that on dangerous goods, is a new one for us. So a lot of our new categories are containing, you know, lithium ion batteries and liquid nicotine and things which require us to really comply with a completely different set of standards that we’ve had to be kind of so exposed to before. So that’s driving a lot of challenge for us, I think probably not an area really, where there’s a lot of technology advances as such, but there’s a lot of kind of capabilities that we need to build within our internal organization to navigate that so that that’s certain. It’s certainly a big one. The other things, I think, are really more on market intelligence and sensing. So what’s coming up? How do we how do we learn quickly what the risks are? How do we then build a map, build a plan to to ensure that we’re compliant to those, to those regulations, and that we can still operate as efficiently as we can. So I think they’re probably when we see probably more of a technology kind of playing a role. It’s, again, it’s on insights and information that gives us the opportunity to plan better.

Scott Mears  24:19

Yea, that’s, yeah. I appreciate this answer because it, you know, dived into a lot there, and there’s a lot of considerations, of course you at BAT needs to consider, and you mentioned about now the multiple categories that you’re involved with that bringing a different complexity altogether, which I’m sure you’re alluding to, all the e-cigarettes, you know, the the increase and demand of, you know, e-cigarettes is huge and, and I know you also mentioned, you know, there’s not, you’ve not noticed as much technology that has come into. To support here. But is there any that you’ve maybe got your eyes on or maybe been using in the last couple of years that you’ve managed to leverage to navigate these regulatory challenges and trade complexities?

Ian Barber  25:15

Not that I’ve seen a lot of it’s not something which is, it seems more of a very traditional part of the of the compliance space that would say a lot of books, sophisticated technology on that space. I think the, I guess the area where we, where we’re kind of emerging from our side is on the ecommerce space, right? So we’ve never traditionally played in that, in that place, with our with our traditional business, but we are now with our new category. So, so we are seeing some through that. It’s a very dynamic kind of part of the network, right? When we talk about e commerce, it’s emerging. It’s probably the fastest moving part of of a transport network in terms of the developments that come in that space, right? So we’re learning through that, and we’re seeing opportunities that come through that. Our approach is we tend to use more partners to support us with our E commerce kind of networks. But there’s good advantages to that, where they can bring their capabilities and they bring kind of cross kind of customer enhancements, which we’re able to utilize as well. So I say it’s an emerging, emerging technology for us in a way when we’re getting new to it, and we’re able to see some good advantages there, and you get to learn a lot more about your customers through through those kind of those kind of networks and capabilities as well, which is really important when you’re entering into a new category and entering into new products, into the market. The more customer insight we can get helps us a lot to understand how we need to move forward as well.

Scott Mears  27:07

It seems like this, you know, you mentioned about the ecommerce piece in BAT has made quite a interesting move in the strategy, and it seems to be bringing a lot of new knowledge and a lot of new positives. So that’s that’s really exciting to hear. And I look forward to hearing, you know, the technologies that come off this as well. And as a marketer, absolutely, you know that that quick understanding of the intelligence from the consumer through ecommerce is is fantastic as well. So this sounds very exciting, and something I’m sure we’ll see more in the future of the learnings from the technology you guys use. Moving on, I want to dive into, I want to shift the gears a little bit and just dive into one specific technology that you’ve used for quite some time now, and that’s romby, us guys, I would love to know what part does Roambee play in your emerging technology strategy?

Ian Barber  28:12

Yeah, happy to share. So, yeah, we’ve been using Roambee the mobile tracking devices for a couple of years now, and they’ve really kind of helped us to kind of that. So they give us an element of, again, agility and flexibility in the in the way that we track our our cargo. So we’ve been using them to on a lot of our, let’s say, sea freight moves that we’ve been sending out of Europe into into the Middle East and other markets. And they give us the visibility on, let’s say the GPS tracking, the temperature, humidity controls, also for some of the security aspects, which are very important to us and so, so not just the GPS, but also things like the light and motion sensing. Tells us everything’s been opened, right? So it’s really important we get an immediate alert, so we’ve been able to get some good value for from from the devices. But what’s really been helpful from those, from those experiences, is this is to start to open up opportunities for us to see well, where else in our network can we unlock value from, from using these devices? And we’ll be seeing some good opportunities within our road space as well, where they were able to get a lot of good features that track our cargo very well and give us good quality insights that help us to maybe move away from all of our traditional methods of doing that, which is going to lock up quite a lot of value for us if we’re able to achieve it. So that’s been our experience so far. I think there’s some good some good opportunities out there, which we’re really trying to try and push forward during the course of 2024.

Scott Mears  29:46

That’s great here. You know, to get that depth of understanding, you know what part Roambee plays, and what is it those I know you did touch on, but what are those challenges you’re coming into today, or how do you foresee Roambee in the future, evolving as part of your part of your emerging technology strategy?

Ian Barber  30:09

Yeah, sure. Certainly, we get a lot of great information right from the from the devices. So that provides us a lot of useful insights, which, yeah, we can. So part of our strategy, in a way, right? We want to, we want to get to a point where we have a almost a huge data lake, which is we can, we can pull out from there and ask those come back to this, asking the right questions, right, and asking the right questions for which we can draw an immediate answer from the data. So having this capability with the Roambee devices, it plays into that space as well. So it gives us good information and opportunities to ask those questions. I think, in terms of the the immediate opportunity for us, it’s about it’s giving us flexibility, right? So flexibility to you know, our cargo is, is high value. It’s fast moving. It’s, it’s something which we want to be able to make sure we’ve got good quality, visibility and control of what it was it’s in transit. So to be able to do that in a really kind of quite simple way, to be honest, with the with the devices, they’re really easy to manage, you know. And so it’s very sort of simple for you know, to give to the guys in the warehouses that you know, to operate the devices, to switch them on, connect them, and then from there we get the information, and it gives us all the answers that we need. So it’s been really helpful in that regard. And as they really does, often open up some opportunities for us to start to ask some questions about, you know, why do we do things the way we do today, and through the use of the devices, can we deliver the same output in a different way? And we see some opportunities there, which we really want to go for now.

Scott Mears  31:59

That’s fantastic, here, and I look forward to seeing the developments and the evolution of this as well. I now want to really get into the strategy piece. So this is where, you know, we’ve dived into, you know, the emerging technology that BAT is looking into. We’ve dived into, you know, the areas of how, where or still looking, I guess, for technology and overcoming regulatory compliance, trade challenges. And then we touched on, you know, Roambee. But now I want to understand the the strategy and how you’re, you know, what we mentioned at the start about the competitive edge and agility is going to come back here. Um, so. So as I mentioned, new innovations can be very exciting and attractive. The AI boom right now, you know, AI, you know, I I give in to ChatGPT, it’s a very useful tool. It’s a very useful tool. But how does BAT cut through that excitement and identify the value you need from new innovation? And I’d love to know if you have any strategies you guys have always done, or maybe some new initiatives you do to ensure this.

Ian Barber  33:16

Yeah, I think for BAT, a lot of the kind of developments we’ve done over the last 1015, years have been, I’ve been around, let’s say building standards, yeah. So, so going down to really basic things on one SAP system across the group, right? So one, it builds you a platform for which you can build, right? So, so we’ve done a lot of, a lot of developments in that space, and a lot of our a lot of our capabilities, a group standard. One area that we’ve not yet kind of cracked is transport. So transport planning and execution in BAT there’s still a variety of ways that we do it. Now we want to, we have a plan to to align there, and we’ve got a we’ve got a suite of capabilities which we’re working with in terms of transport management capabilities, transport tracking capabilities, and load building capabilities, where we’ve defined a suite of technology capabilities which we want to deploy around, and getting everybody to that level playing field is the first step, right? So then we’ve got a synchronized approach. Everybody’s using the same tools. We’ve got a good base which we can now start to build upon. So that’s the first step. The second part of our strategy is around how we organize ourselves. So we have a center of excellence, which we which we re run from, I’m actually part of, which is where we control our transport, our logistics, our last mile, our ESG and our procurement plans, yeah. So we govern that a kind of a global level, and we apply an agile approach to test, to learn, to create capabilities which we then deploy group wide. So this is where this will be our vehicle, and our strategy for getting us there. So so one, we get everybody to the to the same standard, and then two, we build on that standard using the the structure around it that we have in terms of our centers of excellence. Now, where we where we’ll look certainly, let’s say, I’ve shared a few examples there, in terms of what we do, but we will be thinking about, how do we drive the most efficient kind of transport operations? That’s going to be, obviously, very important to us. How do we unlock value, but also, how do we again come to a future fit state? So being an organization in transition, we need to be really looking at, how are these emerging technologies not right for maybe our traditional business, but where are they the right technologies for our future business? And that’s where, that’s where our strategy will focus. How do we, how do we make sure that our future organization, our future business, is equipped with the best, the best solutions and the best capabilities for us to be winners in those categories?

Scott Mears  36:20

I really like that last point you mentioned there. You know that, and that’s very much leading into that competitive edge. And underneath that it’s everyone alignment, you know, that alignment of everyone understanding what the quality standards, I love that you have a standards, you know, standards policy without through BAT, which you’re a part of, and now you’ve identified what the standards and those key metrics of what you’re looking for in technology, in those moments that you find that technology go this is the one we have to adopt it. How is BAT staying agile enough to capitalize in that moment quickly versus, you know, it being implemented a year later. How are you doing that to maintain the competitive edge?

Ian Barber  37:10

Sure. Look, the one thing which we’ve one of our sort of, our main kind of principles as a center of excellence is you have to be prepared to fail as well, right? So often you learn more from your failures than you do your successes, right? So, so we operate as a very an agile approach to the way that we that we test in the way that we deploy capabilities. So we run a quarterly planning cycle. We agree on what it is that we’re going to deploy, and we go ahead and we try to achieve what we call a minimum viable product, right? So what you can always get caught in a trap, I think, of trying to find the perfect solution. And the perfect can be an obstacle for the good. And sometimes you can already start to, you know, realize value in the short term through getting a good product there. So that’s a lot of our focus, right? So we’re not looking to continually, say, develop a product until it’s at a perfect state and deploy it. No, we get to what we call a viable product. We deploy that, we test it, we build on it over time, and it’ll enhance, and it’ll enrich, and it will get better. And then also be cases where we we tried it and we’re not happy, and we give it a go, and we say, No, we move on. It’s not it’s not right for us. So we’re using that center of excellence, say, approach, and that, that agile mentality, to drive that, that innovation mindset.

Scott Mears  38:44

Yeah, I appreciate you saying that, you know, not that perfectionism, you know, trying to get it to that last bolt that it’s the right color, yeah, definitely. You know, being the technology space, you know, there’s always elements of it that you know, every customer, every industry, is so bespoke and so unique supply chain, and getting every bolt in place to cater to every spec is is challenging. So you’re definitely, you know that that’s definitely the right way you know to approach that on, you know, to see through the solution in the value that it’s bringing to you in that day. And finally, just what, what’s your last words of advice for companies navigating the excitement of emerging technologies?

Ian Barber  39:38

Okay, so I think the limit of being bold, right? So I think we you have to be prepared to try, prepared to fail and and I think another of the concerns are obviously in the investment cost. So I think having a having a mind of what’s the minimum amount that I need to start to unlock value is. You get to a point where you you can almost start to pay for the investment early, if you can achieve that value, right? So I think that that’s that would be the advice. I think it’s to ask the right questions, what is the problem that you want to solve? Understand the capabilities that are there, and to what extent are they matching to the to the solution that you’re looking to receive. And then, once you make a decision on the technology that you want to trial, set that standard, what’s, what’s the level that we need to get to do we get there? And what’s the, what’s the failure level that we’re not prepared to accept before we step away so and then the organizing yourselves in that way, in that agile way, I think, is really powerful way to to make progress quickly, in in the number of things, rather than sort of investing all your effort into really making one thing perfect.

Scott Mears  41:00

Yeah. I really, I think that was a great end question. You know, the answer that you brought there is, you know, brings a lot of clarity. And I feel, just in that moment where we’re being that bull in that china shop, it brings them back to be grounded and identify those points that you mentioned there. So it’s thank you for that answer. Before we do end, though, I do like to do a bit of a fun segment called thumbs up or thumbs down. It’s very simple. It’s a yes or no, but you’re just going to be give a big thumbs up or big thumbs down, so both our audio and visual listeners can hear and see. And I was going to hit you with six statements and you just give me a big thumbs up or a big thumbs down. Okay, so electric vehicles are much more environmentally friendly than traditional vehicles.

Ian Barber  42:00

Thumbs up.

Scott Mears  42:01

Virtual reality will revolutionize driver training and simulation in the transportation industry.

Ian Barber  42:09

Thumbs up.

Scott Mears  42:11

Emerging Technologies pose a threat to traditional shipping methods.

Ian Barber  42:19

I don’t think a threat, an opportunity,

Scott Mears  42:21

An opportunity. So thumb, first thumbs down there. Um number four, AI and machine learning will eventually eliminate the need for human oversight in transport management.

Ian Barber  42:42

I don’t think I’ll ever replace I think it will only enhance. Down, maybe in the middle.

Scott Mears  42:48

Yeah, I get where you’re coming from. Number five, blockchain technology will truly provide the transparency needed to trace every step of a product’s journey in the supply chain. Thumbs up. And finally, a bit of fun question, who’s who is winning a foot race? Well, not a foot race. Who is winning a race across London? Usain Bolt, an autonomous electric truck or a drone?

Ian Barber  43:21

Where they going. It would only go 100 meters. I think, I don’t think it’ll be able to run that speed for the whole way. I think depending on the time of the day, it could be the drone. With the London traffic, it could easily not go very far, an electric truck. So I’d go for the drone.

Scott Mears  43:40

No, I think that’s a great answer, because yes, usain’s got to contend with all the fast paced moving people around London, who, I must say, being in London, London. Yeah, people are, they’ve, they’re, they’ve got a mission. Let’s say that they’ve all got their mission, and they’re heading that way, and you cannot be in front of them. So I think you saying, Bob Mike, pushed off to the side a couple times. Oh, fantastic. Well, thank you so much, Ian. I appreciate you coming on. And yeah, thanks so much. And I yeah, I look forward to seeing what BAT and yourself do in the future. Fantastic, if we just throw a bit of a hand up there, a bit of a wave to the audience today. Thank you very much. Hi, my name is Scott Mears, and I’m one of the hosts of the Supply Chain Tech Podcast with Roambee. On this podcast we talk to supply chain heroes from around the world about everything, ranging from the disruptions related to supply chains, their personal experiences with tracking technologies, strategies to build resilience, and much, much more. We already have some recommended videos for you to the side of me, and if any of this sounds interesting to you, do subscribe to our Youtube channel and hit the bell icon so you don’t miss another Roambee video. I’ll see you next time.