CIMB, Philippines First Digital Bank on Innovation, Sustainability & Supplier Relations Success
Katlyn Ignacio is the driving force behind CIMB Bank Philippines’ sustainability efforts, instigating change and speeding up the sustainability efforts for the bank and it’s future. Having begun her career in Healthcare, Kaylyn has risen quickly to the top of the executive table – proving herself as a leader and future thinker. In this fantastic interview, Katyln reveals her perspective on localization, meeting ESG requirements, driving sustainability for the business, rationalization, the impact of successful supplier collaboration and much, much more.
1. Could you tell us more about what you do in CIMB Bank?
I am Katlyn Ignacio. I head the Procurement, Outsourcing and Facilities department in CIMB Bank Philippines. Concurrently, I also head the Sustainability program for the bank. I’ve been in the banking industry for almost 10 years. I previously worked with Citibank as a category manager for consumer banking in APAC and EMEA, where I also lead the APAC sustainability and inclusion function.
2. How important is the localization of activities such as purchasing, manufacturing and R&D for CIMB to be able to stay competitive and prosper in the next 5 years?
Modern procurement teams are facing an increased level of risk with threats to the supply of goods and services brought about by a multitude of factors such as economic inflation and geopolitical uncertainty. It was also during the COVID-19 pandemic where we witnessed how limited mobility and the shift of behavioral trends forced supply chains to localize. For CIMB, localization is an important aspect given the volatility in the current global landscape that demands flexibility from us. This is also given an increased importance as we are the first digital bank in the Philippines and agility comes as a necessity in adapting to new technologies. The pandemic magnified the importance of third-party management, and it was key to look into contingency plans locally for supply assurance.
3. Your background in procurement involves sustainability – what bold actions have you taken in your career have made a decisive difference in meeting sustainability goals?
In the Philippines, ESG programs have only been picked up recently as the government is pushing for more regulation and involvement. It’s difficult to say that what I’m doing are bold moves since a lot of people have been pushing for similar initiatives, but I am proud to be part of the small group of inclusivity and sustainability advocates that was interviewed to help guide the establishment of a certifying organization in the country. Apart from this, I’ve also pushed the company towards a more sustainable strategy in procurement through forums where WBEs and MSMEs can connect to different stakeholders in the company.
4. Do you think regionalization could be the answer to supply chain risk mitigation?
With multiple operating elements in the supply chain that hold the risk for inefficiencies, regionalization will be beneficial in optimizing process design and implementation as this set-up is able to address the varying needs of each region. However, it remains crucial to identify the differentiation that the organization needs or if it is needed – despite the aforementioned benefits. Standardization and differentiation can both bring substantial benefits depending on the company’s context. The former can be considered a conventional approach in improving efficiency while the latter is more open to flexibility. Given this, striking a balance between global, regional and local strategies, as well as the company’s plans, is an important aspect that should not be left out in mitigating risks in the supply chain.
Image Source: https://www2.deloitte.com/xe/en/pages/finance/solutions/turnaround-restructuring/supply-chain-risk-mitigation.html
5. What are you doing to improve further resilience through supplier collaboration and what joint efficiencies have you made?
Many times, we get into a narrow approach that is focused on bringing down the cost which limits the potential of suppliers. Given the finite resources of the bank, it is important to be able to balance time and effort of procurement professionals and potential benefit of thorough collaboration. With this, the need for a structured approach in supplier collaboration is highlighted.
When it comes to supplier collaboration, the key step is understanding the type of relationship with suppliers to maximize their capabilities. Recognizing potential in suppliers comes in crucial as well, along with holding open discussions to be able to share information with each other and come up with strategies that will benefit both parties.
6. As the first digital bank of the Philippines, CIMB is forward thinking compared to other banks from the region. How else is CIMB digitalising the procurement function and adopting digital tools to improve supply chain visibility?
Given that CIMB is only in its fourth year in the Philippines, leveraging on digitalization comes crucial for us to create substantial competitive advantage against the existing banks in the market. Even though we are still in the process of digitalization, the company’s innovation culture and high digital readiness help us gain this advantage. It is also beneficial for us that we are starting from scratch as we are able to customize tools based on business needs and cater to an end-to-end process with no issues in integrating old systems. Apart from this, the constant involvement of key stakeholders and tools allow agility of the decision-making process.
7. In your experience having worked in several large banks, what has been your experience in encouraging a team culture that supports digital transformation and how you empowered your procurement team to use the latest digital transformation technologies?
Finding and developing talents play a big role in digital transformation as it requires proactive and agile minds to apply new technologies to traditional processes in the businesses. There exists a common concern among companies where new technologies are adopted but in an uncoordinated and passive manner which results in a waste of resources and further inefficiencies. With this, I’ve particularly looked for certain skills in people such as intellectual curiosity and business acumen to be able to maintain a team culture that can keep up with the fast-moving process of digital transformation. Above all, it’s important to invest in people who are equipped with the critical thinking skills to see beyond what is given to them and act upon whatever needs changing in the strategic landscape.
Image Source: https://unsplash.com/photos/IgUR1iX0mqM
8. How has trade and supplier relations been impacted by geopolitical changes and what has been the knock-on effect to the procurement and supply chain?
Recent events in geopolitics have only highlighted that supply chain management goes beyond having the agility to be able to respond to major trends in the market; it now also calls for strategic planning for what can happen next. COVID-19, for instance, has caused supply disruptions with the decreased mobility between countries, while the war in Ukraine has also greatly affected food supply, forcing even multinational companies to make the necessary adjustments in their usual processes. This now gives rise to the value of data insight as companies now understand the need to prepare for these unforeseen events. This preparation allows them to work on their weaknesses before they cause significant losses and also explore future opportunities with their strengths.
9. What are you doing to establish deeper relationships with your suppliers and how is this helping you unlock value from your supply base?
I’ve found scheduled review sessions to be the key in establishing deeper relationships with our suppliers. Investing in open communication to be able to understand the supplier’s capabilities helps us optimize these relationships as this allows us to collaborate on mutually-beneficial decisions. I also make sure to give suppliers visibility on important data so we can work towards the company’s goals.
Image Source: https://unsplash.com/photos/Oalh2MojUuk
10. What is CIMB doing to strengthen supply chain resilience and enhance agility through adopting digital analytics?
CIMB is shifting its use of digital analytics from simply describing the organization’s historical procurement journey to applying data insights for a more prescriptive approach to decision-making. We’ve recognized that while technology has long been considered to be a defense strategy (usually in the management of systems and operational efficiency), it is now increasingly being used as an offense to gain competitive advantage and actualize growth. With this comes CIMB’s more proactive approach in our use of technology where we are constantly trying to respond to the growing needs of the procurement function. We have also been making an active effort to involve our key stakeholders to maximize the possible benefits of our on-going digital transformation and support growth through hidden opportunities.
11. What will you be sharing at pCon Asia?
At this year’s pCon Asia I will be talking about how the pandemic has forced the procurement function to shift its way of thinking and the implications of being unable to adapt to these changes. I will also be touching on how professionals balance concepts on resiliency amidst the uncertainties of the new normal.
12. Why is pCon Asia a must not miss event?
pCon Asia is a must not miss event because you won’t find a bigger opportunity to network with the most brilliant procurement minds in Asia. With the shift in procurement priorities brought about by recent global events, there is much to learn when it comes to resiliency and digitalization. This is an amazing opportunity to catch yourself up on the rapidly moving market changes in the market and learn how the procurement function can benefit from these. Another plus is that the event will be held in-person again, making this year’s pCon Asia its first in the new normal.
Katlyn will be speaking on the 6th July 2022, 2pm at ProcureCon Asia on "How has COVID-19 changed the way we think of resilience, globalisation, regionalisation and localisation, and how can you balance these concepts while still remaining competitive?"