Automation sparks layoffs at UPS & Siemens, Swisscom invests in digital transformation & operational efficiency

AXA seeks BPM expert to lead center of excellence and AZZ showcases ESG commitments and OPEX achievements

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Michael Hill
11/22/2024

PEX Network’s weekly news bulletin rounds up the latest from the process community including operational excellence (OPEX), digital transformation, business process management (BPM), process mining, artificial intelligence (AI) and much more.

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UPS to lay-off hundreds of workers in automation push

United Parcel Service (UPS) could layoff more than 400 workers at its Commerce City package processing facility as it adds more automation to the location. “As a part of our Network of the Future initiative we’re modernizing our Commerce City facility at 5190 Ivy Street, Commerce City, and will temporarily close half of the facility on Jan. 15, 2025,” Tom Lopez stated in a letter sent to the Colorado State Rapid Response Coordinator.

UPS is working to place as many dislocated employees as possible in other positions and providing other support, with the upgraded facility expected to fully reopen in 2026, reported The Denver Post. The firm claimed that Denver customers will not be impacted during the transition.

The UPS Network of the Future initiative is targeting all activities for automation, Nando Cesarone, president of the company’s US operations, told investment analysts in March. “These building consolidations and automations yield real savings. For example, we’ll have fewer feeder runs. We’ll be able to eliminate both a.m. and p.m. ground and air feeds in many, many locations.”

Thought leader Doug Shannon discusses adopting automation without cutting staff

Siemens to cut up to 5,000 jobs in struggling automation business

Industrial manufacturing giant Siemens could cut 5,000 global jobs from its global factory automation business after a downturn in profit, according to chief executive Roland Busch. “Sometimes we have to do some re-engineering because the developments weren’t as positive as we expected them to be,” commented Busch as Siemens reported a 46 percent plunge in profit at its flagship digital industries business. “This means we are going to have a low- to medium-sized four-digit amount which will affect some areas,” he added.

Siemens, which employs 70,000 in digital industries globally, stated that no exact figure for the job cuts has been decided, reported Reuters. Despite the proposed job losses, Busch said that he sees long-term potential for the automation market, driven by shrinking populations and the low level of mechanization at small- and medium-sized companies.

Experts from Johnson & Johnson, Siemens Healthineers and Venera explore empowering change managers with technology

Swisscom invests in digital transformation and operational efficiency

Swisscom, one of the largest mobile, broadband and TV providers in Switzerland, is partnering with with Netcracker to support improved efficiencies and advanced digital services. Swisscom will leverage Netcracker’s cloud-native OSS and operations solutions to support its strategy of adopting TM Forum’s Open Digital Architecture to achieve decoupling and autonomy of architectural domains, according to a press release. This will enable Swisscom to respond to future technical and market requirements across the business through a decoupled system that increases efficiencies and removes bottlenecks, it added.

“After many years of successful collaboration with Netcracker in the OSS domain, we are excited to plan for additional network transformation requirements,” said Markus Reber, head of networks at Swisscom. “Netcracker’s expertise and our synergies in developing a robust platform for our lines of business will help map our next steps towards a modern digital architecture.”

The deployment of cloud-based autonomous operational domain management functional blocks brings Swisscom closer to achieving a lean and fully modular IT architecture, added Felix Jaeger, co-head of software development at Swisscom. “By fostering closer collaboration and adopting an agile approach, we will enhance customer experience and boost operational efficiency through the creation of simpler IT solutions.”

Nao Anthony, Commonwealth Bank, and Tariq Munir, PepsiCo, discuss the complexities and challenges of digital transformation

Former deputy police chief champions a S.A.C. approach to OPEX

Adoption of the principles of standards, accountability and consistency (S.A.C.) can drive long-term OPEX success at all levels of an organization, according to Andrew Senzer, retired deputy chief with the City of Atlanta Police Department. “S.A.C. represents three intrinsically linked ideals that need to be embraced at all levels of leadership throughout an organization. Every team within an agency must have explicit standards of performance, and these standards must be reinforced through mechanisms of accountability,” he wrote.

Without accountability, standards become mere suggestions that may or may not be followed, Senzer added. When those who meet or exceed the standards observe that others are being allowed to fall short of the bar without being remediated and challenged, team dynamics will quickly break down, and morale will disintegrate. This will happen regardless of the amount and quality of resources at hand.

“S.A.C. principles are easily scalable and should be implemented at every level of an agency, from the Office of the Chief through the divisions, sections and units. By adopting the principles of S.A.C., you will set the tone for operational excellence and long-term success.”

AXA seeks BPM expert to lead center of excellence

AXA UK, part of the multinational insurance corporation AXA, is looking to recruit a new BPM center of excellence (CoE) lead to join its business change team. The successful candidate will be responsible for managing and optimizing the ARIS platform, ensuring its effective use across the organization alongside the ARIS administrator, according to the job specification. They will also manage the establishment of the CoE to drive best practices, standardization and continuous improvement in BPM.

The full-time position offers an annual salary of up to £70,000, annual company and performance-based bonuses, 28 days annual leave plus Bank Holidays and AXA employee discounts.

Leona Holzbecher, psychologist, organizational developer and thought leader, reflects on accountability in process management

AZZ showcases ESG commitments, OPEX achievements

AZZ Inc., the leading independent provider of hot-dip galvanizing and coil coating solutions in North America, published its 2024 Sustainability Report demonstrating an ongoing commitment to integrating environmental, social and governance (ESG) principles across its operations.

“For nearly 70 years, AZZ has fostered a safer and more sustainable world through our innovative metal coating solutions,” said Tom Ferguson, CEO of AZZ Inc. “Our 2024 Sustainability Report reflects the progress we have made over the past year toward our ESG goals. We are proud of our achievements, which underscore our commitment to environmental stewardship, employee safety and conducting responsible business practices.”

AZZ has received national recognition for sustainability efforts, winning the Newsweek “Americas Most Responsible Companies 2024” and Forbes “America’s Most Successful Small Companies in 2024” awards.

Kindeva Drug Delivery appoints new CIO to lead digital transformation

Kindeva Drug Delivery appointed Prakash Pandian as chief information officer (CIO) to power technological initiatives across the organization. As Kindeva continues its digital transformation journey, Prakash will be responsible for a host of technology-enabled initiatives across the organization designed to drive manufacturing automation, business efficiency and revenue growth, according to a press release. Prakash will focus on driving automation across operations to boost manufacturing efficiencies and support Kindeva’s colleagues in adopting new technologies, deliver step changes in speed, efficiency and business process automation, it added.

“Staying ahead in a highly competitive market means taking advantage of the latest technologies,” commented Milton Boyer, CEO of Kindeva. “Prakash will create a global IT roadmap enabling us to capitalize on the best-in-class technologies and future-proof our processes. His appointment marks a pivotal point in our growth strategy as we continue to innovate and invest in the right people and technologies to deliver business value.”

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