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Handbook
Drawing on his experience as the former CEO of Nestlé ESAR (East and Southern Africa Region), Bruno Olierhoek discusses supply-chain partnerships.
Drawing on his experience as the former CEO of Nestlé ESAR (East and Southern Africa Region), Bruno Olierhoek discusses supply-chain partnerships.
Bruno Olierhoek Teaches
In this course, the former CEO of Nestlé ESAR (East and Southern Africa Region), Bruno Olierhoek, discusses the mechanics and benefits of a holistic, partner-centred approach to supply-chain management.
He highlights the importance of trust and creating win-win outcomes through, among others, employing a combination of hard and soft KPIs to measure supply-chain and team performance.
Usually evaluations are done based on KPIs like cost.
However, trust in a partnership is key.
Trust is your words, actions and emotions divided by your motivations.
Corporate and startups have to communicate to achieve understanding and trust.
They should visit each other’s shop floors to understand how the different entities function.
The principle of gemba in Kaizen applies in building trust.
Innovation should be as important as breathing.
When you innovate in your supply chain, make sure the impact is end to end.
Cross-functional collaboration is very important, especially as your company gets bigger.
You must balance efficiency and flexibility.
Experiment on a small scale and in parallel with your normal operations.
Once you feel comfortable, incorporate the innovation in the mainstream of your business.
Nestlé started sending its milk collection trucks out loaded with products.
The milk collection agents distributed the products and the trucks returned to the city carrying milk.
It was an innovation that combined efficiency and flexibility.
Technology is an emotional topic because people fear for their jobs.
A good approach is to look at technology as a way to replace jobs that are dirty, dull or dangerous.
Technology should enable people to have more meaningful jobs and organisations to be more efficient.
There are many hard KPIs to measure supply-chain success.
Remember that the purpose of the supply chain is to deliver goods in a reliable way.
Therefore, things that create a win-win for all partners must be measured alongside the hard KPIs.
Create a psychologically safe environment in which people feel they can speak their minds without being judged.
Hard productivity measures must be balanced with soft measures.
You need to measure leading and lagging KPIs.
Communities do not necessarily benefit from handouts.
Companies have to work with communities to naturally create mutual benefit.
Nestlé’s RE2AL model achieves this.
Ep 10: How Does Nestlé Ensure Responsible And Ethical Sourcing Of Materials And Products In The Value Chain?
Bruno Olierhoek shares his secret ingredient.