Danone’s COO Mike Sloboda’s “3 Tips For Supply Success” Nails It!

Posted on February 17, 2024

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FIRST, SOME BACKGROUND INFORMATION

In August 2007, I wrote an article titled “Procurement’s Expanding Role and the Executive of the Future.” The article focused on the 2006 CPO Agenda London-based panel discussion asking, “Are there any limits to procurement’s role?”

The panel, which included senior procurement personnel from organizations such as Nestlé, Danone, British Airways, and Merrill Lynch, provided some interesting insights into the prevailing (and emerging) attitudes towards procurement from an executive suite perspective.

I am not surprised that Danone was one of the organizations on the leading edge of procurement thought leadership in 2006, discussing the following ideas:

  • Another comment that caught my attention was the position one panel member took. They said that out of his organization’s 20,000 suppliers, only a few (i.e., 100) would merit engagement from a strategic perspective. As a result, there will be a continuing need for “low-level” buyers.
  • However, the same individual concluded, “One strategic business thinker with the right skills and capabilities is worth 10 or 12 of your normal, run-of-the-mill purchasing people.” This “class distinction,” as I will call it, is certainly not new to the industry.

DANONE IN 2023

In November 2023, I had the opportunity to moderate a panel discussion with Daniele Landi, C&P Sourcing Execution and Contract Management Director, Danone, and Chris Donofrio, Senior Procurement Manager, Spirent Communications Inc.

The discussion focused on how Easy Extensibility & Composability in Procurement can impact the modern global procurement practice. As in 2006, Danone was once again an active participant in a leading-edge conversation on where our profession and industry are heading – which brings us to Danone’s Mike Sloboda’s 2024 article in Food Logistics.

MY THOUGHTS

Titled “3 Tips for Food Manufacturers to Better Serve Retailers,” here are my thoughts regarding Sloboda’s insights:

Great post, Mike Sloboda!

After 40-plus years in high-tech and almost as long in procurement, I can confidently say that you have hit on the foundational framework for success – people, process, technology versus technology, process, people!

Technology has and will continue to evolve from punch cards, floppy disks, and CP/M to Windows, Zettabytes, and AI; the one constant piercing the timeline is that technology alone has little to do with digital procurement success but stakeholder communication and collaboration.

Check out the three case references below to learn about the common thread of success over the past quarter century:

1998 – Department of National Defence – Are you chasing solutions or solving problems?
2007 – Commonwealth of Virginia’s eVA – Yes, Virginia! There is more to e-procurement than software!
2024 – Colgate-Palmolive – Latin America E2E Supply Chain 2024 Engagement and Goal Alignment Meeting

Ref Link: https://bit.ly/49rg2ux

KEY TAKEAWAY

STOP chasing technology as a solution to your biggest supply chain challenges, and START emulating (versus copying) the timeless model of people-process-technology used by organizations like Danone, Colgate-Palmolive, Commonwealth of Virginia, and the DND.

Then and only then will you be in a position to leverage the true power of existing and emerging digital technology.

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Posted in: Commentary