defined purpose and value. To ensure innovation development is integrated with supply from the outset, key teams from R&D are integrated within our supply teams. Also, our global category supply reps in the markets coordinate with R&D and the category leader, who is usually headquartered in Amsterdam. These category supply reps are some of our most experienced supply leaders who run regions or factories at same time. They are very sharp at ensur- ing that the innovation will bring industrialization benefits and will channel options into the portfolio. They also consider costs, because as a business we have gross margin as a target, but equally they make sure that the business is not centred around supply: Supply is here to enable the business. Because our category organizations want to do more than just turn product into profit, this also resonates a lot with our suppli- ers. When we started our Hygiene journey we initiated our part- ner-to-innovate program with a few selected partners. Whereas in the past we were primarily a transactional type of business, now we work much closer together with suppliers. By sharing information and working towards a joint goal we achieve mutual benefits.”
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It sounds very entrepreneurial for a multinational. Have you used systems/programs to align the strategy? “Alignment and consensus are not words that I believe resonate with the agility needed today. One of the reasons for me join- ing RB was that I wanted to be in business in which there is an objective, you discuss different views and conclude a mutual plan with which to go forward. This is not a democracy in which we reach a compromise every time. We all know what we’re responsible for: We respect each other, we can challenge, a deci- sion is made and then we move on. But yes, we have S&OP which is connected to the digital work- flow. We also have global capacity outlook so we check demand and have decision meetings to connect demand to our financial ambitions and what is needed in terms of investment. Then we can synchronize decisions.
In supply, the big factories have very strong 1-2-3-year outlook and are enriched by the three-year category plans. This was all valid until COVID came along. Our financial plan had to be reworked but because we are integrated and it is clear who is responsible for what, we could make decisions very fast. Already in March 2020 we signed partnership and investment programs to increase capacity in certain segments where we now have nine times capacity compared with pre-COVID. But that’s our job: minimize the problems and help the organization grow.”
But aligning dashboards to create a common goal is crucial? So what is the company strategy: customer intimacy, product lea- dership or operational excellence? “Yes, but we already know who is accountable for what and who makes the decision. It’s not complicated. So when we have to make quick decisions, such as during the COVID pandemic, it is very clear who decides what. Regarding the overall strategy, it’s intertwined. Our vision is to create a cleaner world and provide superior product solutions that fulfil consumer needs, such as our leading disinfectant Lysol. It is certified to be fully active against COVID-19 and so, while it originates in the US, we launched it in many countries in 2020. In each segment we want to fulfil a purpose, do good and yet at the same time generate funds to reinvest in innova- tion and in our employees.”
What challenges keep you awake at night? “2020 was a very critical time for us. Everyone in the supply organization is extraordinary but as a leader you still ask your- self, have I done everything possible to ensure that they are fully enabled to do their job? Do we have systems in place to ensure all plant managers stay safe? Are there pressure points which may limit their ability to make judgements? I firmly believe that the business starts with the people and for leaders to be effective and successful it’s paramount that they care for their people and ensure they are fully enabled. 2020 was intense for the first few months because so many deci-
SUPPLY CHAIN MOVEMENT, No.40, Q1 2021
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