Episode Transcript
Speaker 0 00:04 Make it right. The manufacturing podcast, food and beverage manufacturing is highly competitive and ever changing with manufacturers working to tap into the needs and wants of the consumer while differentiating themselves and rising above their competition. Last week on the makeup right podcast, my guest was Regeve ran Jan and he talked about the challenges he's addressed in his career as a manufacturing and supply chain executive trying to transform food and beverage companies. Today. We continue that conversation and we pick it up talking about when things don't go as planned. Have you ever had or seen something that go badly wrong where you thought, or not even badly wrong but just go wrong, where you really thought you had what the consumer wanted and yet it turned out to be not at all what they were looking for?
Speaker 1 01:02 Yes. There are many examples to want us that I, that I've, uh, many times the part that this is the productive, no, this will do, uh, this ha this or this. I think all the boxes for us in terms of, uh, in terms of what the park, uh, the <inaudible> like for example, in dumps of another price segment, voting bumps off nutritional value things which are to be, to start off <inaudible> if I offered a product which has about high amount of nutrition, secondary if I offered up or not, which has good amount of shelf life, which means they can last forever, it's a full month of a time period. And third is it is in a packaging, which is no <inaudible> environment. I need to do that. The price point was this, which is very, very compelling and which is probably among the bottom 10% of the customers we have in. I am still in the program cell
Speaker 0 01:59 <inaudible>.
Speaker 1 02:00 It is, it remains that there have been instances where, uh, man, he part though you see deeper and if it didn't need me a lot of investment into the business or somehow the product didn't take off, it happens. It happens on Buddha Bula outs at the moment of, uh, introspection that really, what is it that we missed out or for the back? Uh, <inaudible> <inaudible> it comes like a substantial cost to the company, but it comes with immense learning. And that's uh, and then we'll that loading, making something, the foundation for the next set of uh, um, products in the next one. <inaudible>
Speaker 0 02:40 right. Are they, I think it's fascinating. All the things that you have to think about and all the things you have to analyze and still, you know, it can be a huge success story. It's deal may not work. Very interesting. How does a company actually integrate their manufacturing with their supply chain to actually achieve their overall business goals? And what are
Speaker 2 03:00 some of those best practices?
Speaker 1 03:04 I would say they send that, I would say a seamless flow of information I think is one of the three, three things I think seamless flow of information across the uh, and UN supply team, which then in turn supply team. I mean that starting from Alexei then does starting from vendor's database still our <inaudible> database, let's say, you know, if you are buying now for example, and that would, having information about, about our vendors, um, let's say buying process. Yeah. Manufacturing process. There a order processing system as the lender dispatch process, integrating that information with my own <inaudible> ordering process and the servicing process <inaudible> flow of information. They didn't. My <inaudible> manufacturing system, bill <inaudible> in the final productive medium sold to the consumer. He's the visibility of this food information that end to end and somebody on, let's say depending upon the different needs of stakeholders, people can access that information across the supply chain in a meaningful way, analyze that data and take Amy decisive actions.
Speaker 1 04:28 That is something which I think helps a lot in gums off a seamless integration of all the process causes. But that's what I'm, there are many, there are many, I would say technology <inaudible> which are there many tools available today? Which game? Hello and lie that information in an optimal way. And uh, diva cutting edge to the organization in terms of, in terms of taking decisions which are, which are really optimal. I didn't, don't stop weeping the need some of the customer or meeting Lexi Austin needs of the organization. Oh, meaning the quality in each of the organization or the combination of all of these people are there? Well, sometimes even those times if we'd have long term use of organization, um, in dumps off, uh, are there <inaudible> a seamless integration of information from then does vendor to supply supplier and <inaudible>. Right, right, right.
Speaker 2 05:35 And do you see, do you think that most companies are seeing that and pursuing that now?
Speaker 1 05:42 I would say there is good amount of a badness now at this point in time, but often, often the, the ability to really create a business case around this is that the things get stuck. Foster. Now why there is a <inaudible> there is a clear understanding that this is, somethings have value. Mark. I see many organizations not able to really convert that value into upon be fired number. Uh, as a result of which, uh, many times that have required investments in this area. I did remain half-baked or, but then got to <inaudible> into the organization, not able to relay the full battle that Liz, uh, from the solution.
Speaker 0 06:35 Right. So explain to me, um, the process and value of pragmatic digitization to a manufacturing company.
Speaker 1 06:45 I would say I'd say the writer, of course the Dyson is something which is, which is the way forward. That is more denying. But I have in my, in my limited experience, I have the Alliance that, uh, it is very, very important, uh, for organizations to <inaudible> from the vast options possible. <inaudible> which are the areas where my organization needs investing into and very limited capital on money I need to, the options are many options are many or the ability to do a systemized, the different meditation options available to my neutral businesses where I think the differentiation lies and what I have seen is the first step is, is digitizing the business processes, which means that Oh, step is, can I look at, uh, from the pure consumers last customer's eyes, which is the most optimal business process that I should have in my business. So from starting from, uh, from the supplier, my customers, what should be my optimal business process for each of the steps of the a business is the first step there.
Speaker 1 07:57 I would like to spend my money in terms of identifying what should be my optimal business processes, processes. That's one second level is, and I would like to automate that in terms of as much automation which is possible with, with the cutting edge technology of optimizing the processes. Second is I would, I would like to focus on a good amount of RPA or robotic process automation where in each of these optimize business processes, how many of these can be done without human intervention and tool, a smart use of AI. And, uh, in order to do that <inaudible> second step, I would say that B, once I have done optimize my business processes and I have tie them to RPA and the next step is where, uh, who I have no, I have <inaudible> lot of data, huge, huge amounts of your daddy got every process, every transaction, every flow of flow of money and every floor product across the length and width of supply chain.
Speaker 1 09:00 He's now getting captured to data. So suddenly I have also normally <inaudible> it's for the next challenges. How much am I able to use that information to a big data analysis process? Any other smart way by which I can analyze the data and come out with meaningful, meaningful analytics from that bust mass of data and use that for my decision making. So next step I would say is in big data and analytics based solution. And lastly, once I have that, these two things done, lastly that can I use the advance optimization tools which can help me optimize my, uh, businesses in bumps of, uh, customer service or in terms of cost? Well, I would say in a, in a structured manner, the order, uh, this is, this may not be the best solution for, uh, for a couple of organizations. But in my limited understanding, I have found that this approach is pragmatic to the extent that you make good money, most of the areas which are, uh, which has a potential to generate return, you know, for me <inaudible> ah, seamless end to end collaborative manner.
Speaker 0 10:18 What do you see as the single most important step that a manufacturing leader can take to move his company forward? To be more competitive? At this stage of the game.
Speaker 1 10:31 If I could put one team, keep working on finding ways to create differentiation. True innovation to my mind. <inaudible> differentiation and innovation are your new link. A sustainable law organizations have to keep differentiating, uh, for them to be in a position to have a respectable margin, uh, otherwise otherwise compensation we'll, we'll catch up, need to productively catch up and then the margin would normally be there. So the only way to be successful, uh, in, in, in this environment is learning ability, building muscles around how can I keep creating innovation? How can I keep driving differentiation through innovation? And the areas of innovation are immense. It can start from, uh, uh, <inaudible> of supply chain to business model distribution or went out to market. Um, I know execution. So, so the vast scope of innovation is he's already there, but single thing that organizations should focus to my mind is how can I keep working on finding these clear differentiation through innovation?
Speaker 0 11:45 Standing still doesn't work anymore, does it? I remember when I was in college and we were talking about advertising, product development and whatnot. And one of the things that our instructor had said was, if you look at how products are now, you'll see that say something like, um, I dunno, a washing powder. They start changing their formula and he said what they're doing is they're taking their market away from their main product and spreading it out across a whole bunch of products. And he thought that that was a bad idea. But I think that what we're seeing now is that the reason that those products are differentiating is because the consumer is demanding it and they've been demanding it all along and companies have slowly started to understand that yeah, the consumer is the, the key customer here and they want to buy what they want to buy and they will not pay for something that they don't want to buy. Absolutely.
Speaker 0 12:46 All the eyes have to be focused. We as a company spend money on. Yeah, that'd be, that's, that's it. Exactly right. So there's only one place you're getting your money from and it ultimately ends up being that consumer receive. This has been a fascinating conversation and I really thank you very much for your time and your insights. Thank you so much. Lovely talking to you for J brand. Jan is a manufacturing executive with extensive experience in supply chain. That is our show for this week. 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, and it's available on amazon.com. Please follow us on Twitter and LinkedIn and subscribe to the podcast through iTunes, Google play, Stitcher, Spotify, and YouTube. I'm Janet Cheesman. Thanks for listening to make it right.
