“Managing the Provence feature effectively in our downstream supply chain is extremely complex and remains a challenge.”
our risk management and contingency planning across the wider supply chain, including manufacturing. When it comes to esti- mating natural raw material risks, we continue to look for oppor- tunities to ensure continued supply, such as strategic inventory, and we are willing to invest when needed. In the last eight years we have rolled out a program with multiple Sales & Operations planning processes to address predicted challenges regarding the imbalance between demand and supply. We bring decision mak- ers to the table to balance the write-off risk against not being able to supply. We hear a lot about VUCA but is everything so volatile and unpredictable? Often change can be predicted so the challenge is to model the trend. This requires knowledge management and creating synergy within the regions so that if people are travelling or leave the company their knowledge is still readily available. Our global procurement organisation has set itself ambitious targets to increase the sustainability of our raw material sourcing in the years to come.”
awareness comes in many dimensions, from understanding the ethical side of the supply chain and preferences for certain key ingredients to the importance of organic and natural elements. As market leader in natural flavours, Givaudan is keen to provide solutions for all tastes and this requires more transparency, smaller average order and pack-sizes, a larger range of natural ingredients available and a more agile supply chain. We aim to have more visibility in inbound supply chain and, with 30 factories in four regions, we manufacturer as close to customers as possible.”
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Which supply chain challenges keep you awake at night? “Consumers want natural flavours, yet what our planet can offer is limited. At Givaudan, we invest to ensure access to natural ingredi- ents, from our origination programmes where we work with farm- ers in a variety of countries to our joint ventures with citrus grow- ers. Our raw materials come from all corners of the globe and we have developed a unique raw material risk assessment and mitiga- tion programme between procurement and supply chain to antici- pate risks and maximise our ability to serve. Sometimes sourcing raw materials uniquely from one region or country, in particular botanical materials is unavoidable. Here, a bad storm, a prolonged draught or a wet spring can potentially limit our ability to supply. Also, in China for example, we find that suppliers might suddenly have to close their factories as they adjust to comply with the coun- try’s new environmental regulations.”
What do you do about these challenges? “Resilience is one of our five strategic pillars. This aims to improve
Who do you like to meet for exchange of knowledge? “I like to observe other market participants to help us develop our roadmap for the future. We recently did a benchmarking exercise with suppliers and customers. I am keen to link to organisations that manage a large palette of natural raw materials and derivatives. More and more we experience situations where two raw materials are intrinsically the same, but still need to be handled separately in our supply chain. A good example is lemon oil, sourced from Sic- ily but identical in taste and colour to other lemon oil. Some con- sumers find the Provenance feature very important so we have to mange the product separately and be able to prove, through a track and trace system, its origin and how it was produced, organic or non-organically. Managing this effectively in our downstream sup- ply chain is extremely complex and remains a challenge.”
Which book has inspired you the most and why? “I am a keen reader and there are many books that have inspired me. In the early stages of my career, one book that particularly impressed me was The Goal by Eliyahu Goldratt. Although it was written more than 25 years ago, it is still a must-read for supply chain professionals. More recently I enjoyed The Conqueror pen- talogy by Con Iggulden about the amazing but cruel history of the Mongol leader Genghis Khan. These thoroughly enjoyable books describe the key elements of leadership in a very subtle way and are perfect for long flights.”
Where do you expect to be professionally in 5 years time? “I enjoy working on change management topics within opera- tions. As our company is rapidly evolving and expanding due to new acquisitions, there are many great opportunities to continue to grow and help our customers be successful in the market place. During my time at Givaudan, I have had the pleasure to work and live in five countries and gain valuable experience. I see a lot of scope for personal growth and development in this operations space in the years to come.”
SUPPLY CHAIN MOVEMENT, No.29, Q2 2018
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