Episode Transcript
Speaker 0 00:04 Make it right. The manufacturing podcast.
Speaker 1 00:09 Welcome to the mega bride podcast. I'm Janet Eastman, an organization wide business and cause transformation initiative can result in multimillion dollar savings. Rajeev ran, Jan prove that recently at a beverage company in India when he transitioned it to right size supply chain infrastructure while optimizing systems, processes and the operating models. And I'm really pleased to have Rajeev Ranjan as my guest. I'll make it right. Welcome to the podcast. Regina.
Speaker 2 00:38 I'm Jenna. That's to be here.
Speaker 1 00:40 So you've had a long career in a supply chain. So tell me a little bit about your career background and have you always worked in the beverage industry?
Speaker 2 00:50 Uh, not really. I have a look about <inaudible> a number of industries. I started with uh, uh, a cement industry and then moved on. Bill, they put in the CNN, uh, see 40 years. I love him too. Primarily engineering and projects kind of goal before they move to, well then the beverage company in India. Uh, and, uh, I worked at in, in video schools, uh, spanning for heading up the production operations, looking at supply chain and distribution and lean and six Sigma operations, a billion cost transformations. Uh, also believed to some extent group to market optimization. I thought India and Southeast Asia.
Speaker 1 01:37 Okay. So have you always approached your work with a lean six Sigma mindset?
Speaker 2 01:46 I would say need based a lean, lean six Sigma. Yeah. Might makes me dancing lean in six. No, I mean this is something which is applicable in all spheres of life apart from the log lines. You know, this is something with victim where I learned that it's always a better and faster way to do things and look for, look for things which are adding to cost and not adding value. I mean, a very simplified form. Uh, this, this, this, this statement I learned that can be a bad anyone else, right? Yeah.
Speaker 1 02:20 Okay. So it's, it's kinda like a, that's, that's your mindset for life, is it?
Speaker 2 02:26 Absolutely. Absolutely.
Speaker 1 02:28 Okay.
Speaker 2 02:29 Big change. A big change. Uh, who, my line of thinking after I, uh, no, this, this, this, I'm just old.
Speaker 1 02:38 So some of the challenges that that are out there that you have seen, are some of them really unique to the food and beverage manufacturing industry?
Speaker 2 02:50 Sure. So let's start with, let's start with the on Zumos or food and beverage industry. Uh, good is consumer. Uh, is, is pretty uh, discerning, but there's consumer is asking for fresh products. Uh, I'm doing is asking for national, national interviews. It's asking for a new position into the, into the food and beverage. It's asking for taste asking for that. I'm going to to the extent possible, that's why he, it's looking for what I did not because the needs are different. Different points in time looking for convenience and for customization. Okay. Speed looking for and the vitamin friendliness of, I wouldn't think that would be manufacturing or food and beverage. And by the way, all of this I'm doing what is marketing could be any patient in getting all this sauce. TV's become very, very important and all this <inaudible> price, which is something we've taken three or four. And if we did that back then so far, the food and beverage manufacturing companies meeting this range of expectation of consumers. It's something that in my mind, the biggest challenge lies organizations which can, which are, uh, which are pretty focused on, I've been defined a few sections from this last was the list of needs red. They think they can create differentiation in the marketplace and in the hearts of consumers. Bye bye. Enlighten the consumers. But except, so the expedience, he's, I think that success of food and beverage <inaudible> lights.
Speaker 1 04:28 So when you, when you look at the consumer now, I mean it hasn't always been this way, the consumer hasn't always been that demanding. In your experience, when did you start to see that the consumer was being very demanding and that their loyalty to a brand could shift very rapidly if they weren't getting what they wanted from their product?
Speaker 2 04:57 I would say I'll fill the after the, so start off information and are there, the information is easily accessible easily to most of the consumers. That's then <inaudible> became more than the mode of F have the knowledge base of Majima beast. And the expectation that this is also possible or this is happening and just part of the board or let's say this is causing damage to the environment. This is how it is causing damage to the environment, to the extent of possibilities here. This is happening in other industries, so why not? We're going to, so I would say this whole thing had started, but I'm going to leave from the time when the information explosion happened and the era of information age skeptical, that's the time I think that's the time from when this slogan has started and very prominent.
Speaker 2 05:49 That's fun. But then I would also say that uh, <inaudible> three, four, five back when the, when the global growth rates and also moving works, the prices, the price on sales <inaudible> the bottom of pyramid and let's say no what I'm 10% of the middle part of the <inaudible> that vendor global growth has tapered down compared to your rapid growth numbers. That's also the focus on pricing has become very, very high and consumer has become very, very discerning in dumps off and bumps of value. That one. Oh, so I'm the price Spence. So I would say it. Ooh, things one is a start off in information age. <inaudible> then when, when this whole <inaudible> and I produce all, when you look at your job, do you see, um, the consumer as your ultimate boss?
Speaker 2 06:57 Absolutely. <inaudible> the one who pays for everything that is done by the organization, the need manufacturing, supply chain, anything which is more adding value to the consumer. It's something that organizations, including of course manufacturing organizations, we'll find a way. Ooh, minimize it. And gradually the community, that's a big challenge because when you think about it, I mean, you have to figure out what the consumer wants and make sure that you're delivering it at the price that they wanted and giving them what they want. But you also have to be able to do that at a price that you as a company or as a business can't afford to do it at. So when you go through, um, a business transformation, you've got a lot of things you have to think about. So tell me, you recently, um, prove that you can save a company, a lot of money with a business transformation, but how does a manufacturing company truly, once they've done that transformation, differentiate itself from its peers to get that competitive advantage and to let consumers know we are doing this on your behalf?
Speaker 2 08:10 Sure. I, my experience in a lunar business transmission assignment that I did, uh, taught me that, uh, differentiation is, is something that is the core of sustainable businesses, which means that, especially in food and beverage industry, it extremely important to keep finding ways of innovating in various aspects of business well businesses, which is innovation either in product development, which means that, and I, and I come up with a product which is the <inaudible>, which is nutritious. And he tell us practical use properties if the organization's focus on these three things. Also <inaudible> nutrition and <inaudible> properties, which means that, let's say if I'm making something for the coffee, then I don't do, I can I get <inaudible> odd, uh, <inaudible> things which are practically required apart from the goodness of the product in terms of using the brand. By the consumer. So on an average amount of focus around our own house of blue, these product development, uh, <inaudible> I would say that is one of the key areas where companies kind of differentiate and an initial nonsense. Second area I would say is again, innovation around convenience. The needs, consumer needs <inaudible> muster. They are more than willing to pay, but the minions, because that is probably, you know, and then there's down the line.
Speaker 2 09:47 So the needs of consumers, can I identify what is it that the consumer is, you know, and is willing to pay for? And can I create convenience consumption, which means consumption occasion, which means condensing portion, which means type of packaging. That was, uh, who is the consumer. And I give conduit a pack, which she can eat, which he or she can consume right on the go. And I get it back, which is so high or so easy to carry. And they get back, which takes root of the hand. Can I make up into the size of a refrigerator, which is in the home of let's say, an average consumer. So these kinds of things. Uh, if I as a, as a, as a company with my second guest, move up on, zoom in and understand when the product moves from the factory, how is the, I'll do what, uh, how can I as a company help increase the convenience in usage and consumption of the program?
Speaker 2 10:56 Maybe as seen by the consumer? Yeah. Think uh, Oh, focused effort on innovation, a Buddha, Amman, buffoonish, Tara media I would say. And this is more that I will not <inaudible> given that food, uh, food production and FMV products has a self life challenge. Also <inaudible> very important that can I read innovation? It's been around, uh, I don't own the packaging, which can help preserve the product inside the packaging for a longer period of time without losing the nutritional value or any of these value. I think the news value, so if organisms focus on these people, innovation embryos and each of these, each of these videos are a big subject, et cetera. Like when my mind is on these <inaudible> can you have wood niche for domination? <inaudible>
Speaker 2 12:02 Oh, limited period of time. So the second challenges once you know, they send, he's done the life of innovation is also Mark something which is very, very nom because there's a large mass of companies and which is also on Spanx stream of innovation, a constant way of keeping figuring out, keeping Diane what keeps getting out. What are the next <inaudible> again, ms Gannon, sustain or give new innovative if to do, I'd want to pay for that <inaudible> that I taped. <inaudible> okay. Media that I think the differentiation is, I would say more on the furniture and the <inaudible> organizations identity. Do you need that? A substantial success of organization concept? The people, uh, people know <inaudible> which supports and his speaking ability certainly is there when risks are, uh, not seen negatively where adequately risks. I've not seen the negativity. People are given the <inaudible> practical freedom to try out things and uh, eight calculated risks and uh, well they are not fearful of the outcome. Once they do all the, all of the assessment of this objective we have controlling the possible downside of it. That sounded, I would say a big, big, big need for a big, the requirement for people who we get focused on innovation and then <inaudible> and clear differentiation. So two things I would say. One is innovation, innovation and second is of any abusive preacher. But
Speaker 1 13:44 a watch,
Speaker 2 13:45 I think it was Katie
Speaker 1 13:47 <inaudible> you talked, I mean there's a lot of areas here that, that you've mentioned and as you said, each area that you focus on is a huge topic on its own. So I'm wondering because the innovation continues because the consumer is always wanting change, as you said, you've got to keep innovating and moving the product forward. So the life cycle is very short. I'm wondering what the information feed is and how you gather that information continuously so that you know that you are giving the consumer what they want, but you can see what their changes in their wants and needs are that are coming down the pipe and you're ready for them. How do you do that?
Speaker 2 14:34 Yeah, that's who approaches that we normally use money is we have a programs where people from various functions in the organization, uh, under little organization invariably moved works. Uh, I mean with customers and consumers and trade partners. But let's say if I am um, supply chain <inaudible> you don't see to go and interact with the customer which is the retail shop on a big issue and try and understand but from the interaction, what are the, what are the needs of this customer, which is, it is stated by that customer and also by virtue of observing their transactions that happens. Then the vendor seal and the partition, it's in its complete day. What are the unstated needs of, of that kind of was a conscious effort by the company, by Skype, by keep looking at stated and unstated, mute, soft skinless last consumers, my senior two fresh pair of eyes.
Speaker 2 15:47 Oh, if there is one step there, how can I use them? I am get that into my, I admit as possible. That's fun. Second of all is it they are just structured a consumer context. Madden red in Oh that envy. That could be the lid, consumers of existing products. Also potential new products of different age profile, different solicitor, economics, Jenna, and interact with them in terms of their needs. There again, the focus is more on student, on city needs, many of the needs. So <inaudible> uh, her self doesn't know that this is something which we'd see needs, but if that product is being also our attorneys, he likes it and sees willing to pay for it. So a very, very focused effort around I'd own the, so you're getting all these stated and unstated needs off the needs of customers, less consumers to a fresh pair of eyes, different set of eyes, different people who would do certain kind of background.
Speaker 2 16:48 I do. If you go to this hour, uh, from various functions of the infant videos, let's say different industry views that I am aware of where the effort is, is continuously being put in to understand what is, what does it <inaudible> and it, it, it, it's, it's just something which is pretty difficult. But, uh, of course pretty exciting and dumps off. Uh, the area that can open, open, open the doors are gonna open for documentation. Second is of course the advent of social media, a lot of analysis around data information which it exchanged in videos that farm and uh, and then it takes off of intuition, which is available. A smart <inaudible> a focus for your bring around. I don't text on our own, the Moyers on around information and rich and dad and the on the Alaskan friends.
Speaker 2 17:42 None of that you have add one gets a sense of what is it that this sent off the new new just, well funny enough consumers are liking not liking, no, I don't know how many extended. I'm old. And from there you also do sometimes some analysis of the data to really figure out the work. If I come up with a product like let's say this will, the consumer likes it or not. So these are the, I would say the other couple of areas where at me make an effort to get the meat sauce. But like you rightly mentioned, it is something which is not a real scientific. It is a very large extent, uh, <inaudible> and, uh, <inaudible>
Speaker 3 18:27 Reggie ranch and has been my guest this week. I'll make it right. He's a manufacturing executive with extensive experience in supply chain and he's based in Asia. He'll join us again next week as we continue our conversation discussing the power of the consumer and how manufacturers can better understand and meet their needs and wants the make it right. Podcast is brought to you by Kevin Snoop, leadership advisor and author of the bestselling book. Make it right, five steps to align your manufacturing business from the front line to the bottom line. I hope you'll follow us on Twitter and LinkedIn and subscribe and share the podcast through iTunes, Google play, Stitcher, Spotify, and YouTube. I'm Janet Eastman. Thanks for listening to make it right.
