Healthcare and Consumer Products sponsored by Kewill: Henkel

GlaxoSmithKline’s entry was innovative in that it tackled the pharmaceutical company’s R&D supply chain and involved the development of a novel, risk-based planning tool for clinical trials supply.
CPG manufacturer, Procter & Gamble, demonstrated that it had implemented best-in-class demand planning practices, focusing on the generation of a single company forecast that encompassed finance, operations and sales. It was also clear that the company regarded its supply chain as a strategic asset, with customer collaboration being used to create customer intimacy. But, again the judges thought that the scope of the entry was limited.
The winner had to be either Stryker Leibinger or Henkel. With a customer-orientated supply chain strategy for delivering surgical implants in a decentralised organisation, Stryker completely changed its operating mode from push to pull over an 18-month timeframe. The improvements in flexibility, customer service, inventory, and costs – and all with double digit sales revenue growth – impressed the judges.
However, it was Henkel, the CPG manufacturer operating in the laundry and home care market that took the category prize. Centred on a set of core principles its strategy was to produce close to the market, use economies of scale and to build on smart technologies/processes. In the past two to three years it has moved to European distribution, with one inventory layer and has enabled real-time demand visibility across Europe.
It was clear to the judges that: “The company has really changed the way it is working in the marketplace, both in terms of complexity and performance.” This was an end-to-end supply chain transformation on a global scale touching many areas, from manufacturing to R&D, taking the company on a five-year journey. Looking at the five core disciplines against maturity – “Henkel has it”.