SUPPLY CHAIN WORLD EUROPE CONFERENCE OCTOBER 2011 RECRUIT THE ‘yes’ gene
Details count so make yourself stand out was one of the tips made by Innocent Drinks founder, Richard Reed. Jokes on pac- kaging, grass covered promotion vans and eccentric advertising all help to ensure that people remember you.
Speaking at the recent Supply Chain World European confe- rence in Amsterdam in October 2011, Reed recalled some les- sons learned over the last ten years as the company has grown from a idea by three 26-year-olds into a thriving business across 13 countries with a turnover of GBP 100 million (115 million).
Vulnerability
From a supply chain perspective, a massive risk analysis of the company a couple of years ago highlighted the vulnerability
of fruit supplies in view of climate change. As the company is dependent on fresh fruit for its smoothies and juices a continu- ous supply is critical. “Since then we have moved in some cases from single souring of fruit to always dual souring,” he said. “For similar reasons we no longer have a single production sites or rely on one bottle manufacturer.” Reed, who set up the company with Adam Balon, and Jon Wright in 1999 stressed the need to constantly remind yourself what the business is about and emphasised the importance of having good people. “If you employ A-type people they in turn recruit A types. If you employ B types they tend to recruit C types and the business sli- des downwards,” he said. “We recruit people who show talent, people with the “yes” gene and who want to make it happen. If you find you take on people who are just there for the ride it’s best to get rid of them.” Many delegates will remember for a long time Reed citing Daniel Wal- ker, former chief talent officer at Apple, “Better a hole [in the workforce] than an arsehole”.
Trust on success Promotional car of Innocent Drinks, covered with grass
With the conference theme Building Supply Chain Capabilities for Future Success, Simon McGlone, of management training company FranklinCovey, described how important his company feels trust is to success. Although often seen as a soft, intangi- ble virtue which is built on integrity he said it can be taught, restored and is quantifiable. Significantly, it speeds up business decisions so that companies can operate more effectively and effi- ciently. He let see how a Speed of Trust management process was implemented at PepsiCo’s Frito Lay shortly before the economic recession in 2008. That year saw a significant rise in raw material costs as well as a potato harvest devastated by floods. With such big challenges to overcome trust is put to the test. By having a business framework within which to work Frito Lay was able to exceed all expectations. “We had five sets of tough decision to make that year but because we could trust each other we could cut through layers of bureau- cracy and make decisions faster,” said Al Carey, Frito Lay presi- dent and CEO. For example market place pricing which normally took 16 weeks was completed in five weeks. Executive wrangling over cost cutting which as a rule took two months were reduced to ten days. As a result, Frito Lay recorded its best profit year for ten years.
Therefore, trust can be implemented, said McGlone, but is has to come from the top down.
PepsiCo’s Frito Lay has implemented the management program Speed of Trust at shortly before the economic recession in 2008
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