In this episode, Ben and Wim sit down with Johan Van der Straeten, a supply chain leader with experience at Philips Lighting, PwC, and currently working as Group Supply Chain Manager at Reynaers Aluminium.
Johan reflects on his journey from engineering to supply chain leadership, detailing his experiences in planning, procurement, and implementing strategic initiatives.
He shares insights on setting up S&OP processes, leveraging AI in demand planning, and balancing sustainability with cost and quality considerations. Johan also discusses connecting legacy systems, fostering supplier collaboration, and the value of networking in supply chain planning.
Key topics covered include:
Johan’s career journey across industry and consulting roles
Lessons learned transitioning from engineering to supply chain planning
Setting up S&OP processes and adapting them to business needs
Balancing sustainability goals with cost, quality, and service priorities
Leveraging AI in demand planning and defining the role of planners
Challenges of modernizing legacy systems and tools
The importance of networking and continuous learning
(0:03) – Johan’s career path: from engineering to supply chain leadership
(2:42) – Key lessons from transitioning into supply chain planning
(6:33) – Insights into early S&OP experiences and challenges
(13:08) – When and why to involve consultants in strategic initiatives
(16:38) – Setting up S&OP processes and leveraging AI for forecasting
(22:06) – Defining planner roles and evolving organizational maturity
(27:07) – Challenges with legacy systems and transitioning to new tools
(33:34) – Integrating procurement and supply chain for better collaboration
(35:03) – Sustainability as a key parameter in procurement decisions
(39:01) – Networking tips for supply chain professionals and final thoughts
(0:03) Welcome to the Supply Chain Planning Podcast, where we speak to supply chain professionals (0:07) about their experience in planning. (0:09) I'm Ben, co-founder of Horizon, and Wim is our co-host. (0:13) Hi everyone, I'm Wim, I'm Managing Director of Lanark.
(0:16) Our guest for today is Johan van der Straeten, who has been at Philips Lighting, PwC, and (0:21) currently at Reynaers Aluminium. (0:23) Welcome to the podcast. (0:25) Thank you for having me.
(0:27) First of all, I will give a brief introduction to your different roles in the past. (0:31) First, you worked at Philips Lighting for about seven years, first as a production engineer (0:36) and quality engineer. (0:37) Then you moved on to planning there briefly, within demand planning and also supply planning, (0:42) before moving on to PwC for about five years.
(0:46) So you made a switch there to consulting within strategy and operations. (0:50) And then after that, you've transitioned into Reynaers Aluminium, where you've now been for (0:54) two years as a group supply chain manager. (0:57) And for the listeners, Reynaers Aluminium is a manufacturer of aluminum solutions for windows, (1:03) doors, and facades.
(1:04) Did I capture that correctly, Johan? (1:07) Yes, that's a good summary of my career. (1:09) It was nine years at PwC, but that's the only thing I could find in your description. (1:14) Okay, that was pretty far off than actually on mind.
(1:17) But you've basically gone from industry to consulting and back to industry. (1:21) How has that been? (1:22) We haven't really had a guest who's made that transition to consulting and back again. (1:26) I think for me, it was kind of a natural flow.
(1:31) I think I always had the idea, you can only move into consulting when you have experienced (1:37) the thing that your clients experience yourself. (1:40) I had the idea when I graduated as engineer, maybe I should start in consulting, but I (1:45) felt that I was not yet ready. (1:47) I think it's 18 years ago, so it's also a different world.
(1:50) I decided to join industry, learn a lot. (1:53) I also, at that moment, decided to join a big multinational, Philips Lighting. (1:57) It doesn't exist anymore today, now it's called Zynify.
(2:00) But that was really a conscious choice to find out what I was actually good at, because (2:06) you graduated as engineer, but yeah, what can you do? (2:10) What is your strength? (2:11) It's a completely different world beyond academics, if you move in my first job towards quality (2:17) engineer in an assembly department with a lot of, I would say, operators have blue colors, (2:24) but also with a sister factory in China, and you needed to manage the whole collaboration (2:29) between the two. (2:30) I think it was a very good learning experience for me to step into the real world of working, (2:36) I would say. (2:37) And you also made another step there and moving from more production-related engineering role (2:42) into supply chain.
(2:43) I'm an engineer myself as well, so I know what that means, but how did you feel that (2:48) change from pure engineering to planning? (2:51) Did you have to learn a lot of new things or how did it go for you? (2:54) Yes, of course, you need to learn a lot of new things, but I think it's always good to (2:58) expand your own horizon and to understand a bit the things you execute, you have execution (3:04) and you have the planning of execution. (3:05) And if you understand in both areas, what are the pitfalls, what are the important elements, (3:11) I think it's very good. (3:11) I did a smooth transition, to call it like that, because first I was into operations (3:17) execution for four years, but then I stepped into a business improvement role.
(3:22) It was called Lean Six Sigma Black Belt. (3:24) It was at that time in Philips, the kind of internal consultancy role where you were assigned (3:30) to projects and those projects could be in any type of function. (3:34) And that's how I got my first introduction into planning, into demand planning, promotion (3:39) planning.
(3:40) Also in procurement, I had my first project and then I started to see that there's a lot (3:45) of knowledge that I didn't have, but that really connected well with my experience from (3:50) the floor, I would call it, the factory floor and knowing when you do a promotion planning (3:54) from a planning and scheduling perspective, you think about all the elements on how do (3:59) we go position it, what's the timing, but when you also know that whatever you decide in (4:04) planning has a consequence on your shop floor, on your machines, on your output, on your (4:08) shift regimes, on the way everything is managed there, I think it really gives you the end (4:12) to end view of the whole supply chain. (4:15) And I think that was for me a very good, again, lessons learned. (4:18) Would you say that having had that first production experience helped you to be a better planner? (4:24) Yeah, I'm sure of that.
(4:25) No, no, I think I'm pretty sure of that. (4:27) I think it's my general idea. (4:29) It's also, if you look at my career, there was never a point in which I said, now I will (4:33) specialize in one direction and forget about all the other elements.
(4:37) I think one of the things that I always valued a lot is how can I get the best understanding (4:41) of the whole value chain? (4:43) And like I said, there is a score model in supply chain and planning is one component. (4:48) There is execution, but there is also delivery. (4:51) There is the whole sourcing component.
(4:53) And now I can say that I have covered or checked all the boxes, you could say it. (4:57) I'm not a specialist in all of them, but I do have the right understanding of the base (5:03) principles and how you can apply them. (5:05) And again, I continue learning.
(5:07) There are a lot of things that I still don't know sufficiently with enough expertise, but (5:12) I'm young enough. (5:14) You were also involved in the SNOP process there, right? (5:17) When you were in demand planning and supply planning, did you have a good enough concept (5:21) of it, you would say, at the time to be involved in it? (5:24) Or would you say, well, my understanding has evolved a lot since then? (5:27) Because you're also now doing that at Renaers. (5:29) So do you still remember how you felt about it back then? (5:32) The way I was introduced to the process, first, I did a project on demand forecasting and (5:39) how to do that in Philips for different markets.
(5:42) I created a tool, how to find out which are the items that had the biggest deviations. (5:47) At the time before big data was a buzzword, it was how can you, from your ERP, distract (5:53) all the relevant input. (5:55) Then I got introduced to the process and then they asked me to become the demand planner (6:00) for all the, they called it emerging regions.
(6:04) And emerging regions are typically the regions where you have a lot of volatility, where (6:09) the typical standard forecasting with historical data is more difficult, but then the process (6:14) component is a lot more important. (6:16) You need to understand your market, your promotions, your customers. (6:20) So the collaboration with sales and marketing, that process part was, let's say, my first (6:25) experience with the process.
(6:26) I had the luck that as an OP, as a concept, was already introduced years before I joined. (6:33) And being in a multinational, everybody has the understanding and maturity of the process. (6:40) I think in Philips at that time, I also experienced that as an OP, as such, can be very administrative (6:49) sometimes and procedural.
(6:50) If you don't set it up right, it becomes like a talking forum and everybody talks. (6:55) But if you don't assign the right responsibilities, what is the impact of the planner? (7:00) He or she is just consolidating inputs, making a proposal, and that's that. (7:05) I found out that the pure consolidation part of that process for me never worked.
(7:11) I spent at that time, I think one week a month at the first week of the month to create PowerPoints, (7:17) to capture data, to put it in the right format, and then have a one hour discussion with the (7:23) market to understand what went wrong in the past and what do we project for the future. (7:28) It was a bit overdone. (7:29) After six months, I also indicated that, and then there was a supply planner role, which (7:33) was actually the week two of the process where you try to consolidate all the inputs and (7:39) turn it into a supply plan with inventory management, with all the factory scheduling and so on.
(7:45) Also that I did for six months. (7:47) And that's where I started to really see how everything is connected together. (7:50) If you don't do a proper forecasting, you can never make a good supply plan.
(7:55) Your inventory levels will be wrong. (7:57) And you always go back to this continuous loop where everybody has to work together to (8:02) balance all the requirements. (8:04) I think it was very nice.
(8:06) But I also felt that at that time, my career at Philips stopped. (8:10) I only left the company because they went through a whole restructuring, actually the (8:15) fourth one in the seven years I worked there. (8:17) And I said, okay, I'm too young to stay in a company that is continuously declining.
(8:21) I want to be in a growing company, but for the rest, I can only be very positive from (8:25) a perspective of what I learned at Philips, how things were organized and maturity of (8:30) certain processes. (8:31) So I'm very happy that I had a chance to work there for so many years. (8:35) Like you were considering after graduating, you actually did go in consulting at that (8:40) point, right? (8:40) Rather than going to another manufacturing company.
(8:44) Yeah, correct. (8:44) Because I did enjoy my project role. (8:48) I called it the Lean Six Sigma Black Belt, where I did all kinds of projects first internally (8:52) at Philips.
(8:53) And I thought, okay, that's something that I really enjoy. (8:55) You're always exposed to another part of the value chain. (8:58) You're exposed to a new environment that we try consulting.
(9:01) And like everybody that's first starting consulting, you will do that for two years. (9:05) You will learn a lot. (9:06) And then you select the customer you want to work for.
(9:09) That's a bit how a lot of people start in consulting to see where they fit the best. (9:13) It didn't work out like that for me, because I had good reasons to stay longer. (9:18) What were those good reasons? (9:20) I think there are many.
(9:21) I think consultancy has a lot of intellectual challenges. (9:25) You are always exposed to new environments. (9:28) And for a person that is interested in, let's say, new areas, it's a perfect place.
(9:33) Because you learn a lot. (9:35) You're also on top of a lot of new developments, because just to give you one example, after (9:40) a few years, I became responsible for Industry 4.0, digital. (9:45) How do you apply that in manufacturing? (9:47) And I enjoyed that.
(9:48) And I had a lot of insights from what the frontrunner companies were doing. (9:53) But you can only have that if you have visibility on different companies. (9:57) If you work in one company, it depends on where your company is to understand what is (10:02) Industry 4.0. (10:03) And you can go to events.
(10:05) You can go, of course, you can read a lot. (10:07) But feeling it, seeing it in practice, getting the exposure to what is working and what is (10:12) more the marketing story behind and what is really already applied. (10:16) I think there, consultancy was a perfect place to begin.
(10:20) You started in the beginning saying, I first want to have the practical experience before (10:23) I go in consulting, which I really like as an approach. (10:26) Once you are in consulting, how do you make sure you stay in touch with what is really (10:31) happening on the floor and happening out there and not have this kind of almost academic ivory (10:36) tower approach? (10:36) How did you go about that? (10:38) I think in my case, I always did operations consulting. (10:42) And I cannot compare with other types of consulting, but my clients were factories, were operational (10:48) people.
(10:49) Where do you meet them in their location, right? (10:52) You went there, you had to see the process. (10:54) I did so many site visits to understand the way everything was set up, value chain, supply (11:00) chain. (11:00) I think that was a very good way.
(11:02) But I find it inherent to the type of consultancy that you stay connected to the practical world. (11:09) And what I also always enjoyed is that I did projects where there was always a kind of (11:14) design phase or more conceptual strategy phase, you could call it, but also an implementation. (11:20) Of course, not in every project we were involved, but I had the good balance or the good mix (11:25) of executional consulting versus more strategic conceptual consulting.
(11:30) And having been on both sides of the table twice now, do you have an opinion or a vision (11:36) on what things a company should do definitely internally and what things you can use consultants (11:42) for? (11:43) Yeah, I have an opinion about that. (11:44) Is that the reality or the truth? (11:46) I cannot judge that. (11:47) But if I can share my view on it, I am 100% convinced that a company and industry should (11:54) use consultants because I believe that as a company, you have the responsibility to bring (12:00) in fresh eyes and new perspectives.
(12:02) And of course, there are different ways to do that. (12:04) You can have a lot of new hires. (12:06) That's also a way to bring in new fresh blood.
(12:08) But maybe that's a bit too much. (12:10) It has to be a good balance between external expertise. (12:14) That's how you bring in the real, let's say, what's happening outside your four walls.
(12:19) I also think that not every situation requires consultancy. (12:23) So that's now I put it on my head of industry. (12:26) Don't use consultants if you can do it your own, and especially for motivation of people.
(12:31) If it's so straightforward of what has to be done and your people have brought up the (12:35) ideas, give them then also the empowerment and time to do so. (12:39) Again, then you can make a reflection who is in the lead because sometimes you don't (12:44) have the time yourself and then the consultant becomes the enrichment of your capacity of (12:49) your workload. (12:50) So there are many different reasons.
(12:51) But I think in the future, also looking at the way work is organized today, the types (12:58) of expertise you need, and sometimes only for the short term, these are all elements (13:03) that you need to take into account when you consider hiring a consultant, yes or no. (13:08) Do you have like specific problems or areas where you would say their consultants have (13:14) more value than in other problems? (13:16) For instance, setting up a process or implementing a system. (13:21) These different use cases, do you have some sort of best practice? (13:25) There is not, let's say, one truth, I think.
(13:27) What I can share is from my experience. (13:30) Let me also explain a bit how I moved again back to Reinhard's group. (13:35) So back into industry, I was a consultant building the strategy for the future.
(13:40) How should Reinhard's group organize themselves from operational perspective to meet the growth, (13:45) to meet the customer requirements? (13:47) I made a beautiful slideshow and that's your question on how do you stay connected to the (13:51) real world? (13:51) Well, I stay connected to the real world by the challenge of implementing that slideshow. (13:57) Eat your own food. (13:58) Eat your own food.
(13:59) And now I'm doing that for two years and I can say not everything that I put on slide (14:03) has become reality. (14:05) That's also a lesson learned from my side that at a certain moment, you start to overestimate (14:10) a bit what can be done in a particular time window. (14:13) There is always this reality of business as usual.
(14:17) And then you have the forward thinking. (14:19) This is how it should be done. (14:20) And you need to set up programs and improvements and the whole transformation has to go like (14:24) this.
(14:25) But what you forget then when you are on the consulting side is that there are so many (14:29) things that happen in daily business that you cannot neglect. (14:32) So that's a lesson learned from my side. (14:35) The plan was overambitious, but I still stay connected to the vision.
(14:40) Of course, I cannot say it differently. (14:41) I made a plan so I cannot now shoot it at all. (14:44) But I still am very convinced that we've set the right things.
(14:47) I think only the estimation of timeline was too ambitious. (14:51) And of course, there is progressing insight and you can never have full nuances when you (14:56) bring in this strategic thinking. (14:58) You don't get all the details.
(15:00) So you make some errors in, let's say, tweaking of the processes. (15:05) But that, again, is for me a belief that you should hire consultants to do so because they (15:10) are not on the one hand, they will never be detailed enough to give you the full plan (15:14) with all details. (15:15) So don't expect that.
(15:16) But they do bring in some more conceptual thinking. (15:19) They take a bit more distance from the daily mess or the daily issues and the way it's (15:24) set up now. (15:25) It's like sometimes starting with a fresh sheet and to look at things from a different (15:29) angle.
(15:30) That's why I truly value those two perspectives. (15:33) I think especially when it comes to benchmarks or seeing how other companies are doing it, (15:38) what works, what doesn't. (15:39) It's indeed good to have this overview of different projects.
(15:42) I'm wondering for Rennar specifically what that strategy is regarding that you actually (15:49) built and where you are right now. (15:51) Not sure if you can share all the details, but you said the timeline was quite ambitious. (15:56) Do you have specific targets in mind and where are you along that journey? (16:00) I can share a few elements, of course, without telling all the details, but it was a strategy (16:06) for operations.
(16:07) So it was not only for supply chain and procurement, which is today my responsibility, but there (16:12) were elements in it on footprint, where to put your next operational centers, where to (16:18) allocate capacities, how should you really look at the growth from a volume perspective. (16:23) I will not comment on that, but there was also a component on processes and systems. (16:28) On the processes, it was to install the S&OP process and to really use that to better adapt (16:36) your operations to your sales reality.
(16:38) A bit of context, when I was a consultant, I made the plan just after COVID. (16:43) And COVID for the construction industry was Valhalla. (16:48) Demands were growing, everybody was going to renovate their house, everybody needed (16:52) new windows and doors, and that was never forecasted, and operations could not follow.
(16:59) There was a lot of disappointment of customers that we were not able to deliver and so on (17:03) and so on. (17:04) So that created a condition of what happens if you are in this unpredictable demand. (17:09) So we said, let's install the S&OP process.
(17:12) But the S&OP process, you are also a supply chain expert, it requires a lot of different (17:19) components. (17:20) There is demand planning, there is supply planning, there is capacity management, and (17:24) so on and so on. (17:25) And none of these things existed at Rijnaar Group in a structural way.
(17:29) When they did exist, there were, let's say, ad-hoc things and more siloed elements, but (17:34) the connection between all those steps was not made in an explicit way. (17:39) But of course, you start thinking, let's set up demand planning. (17:42) But then if you don't have an organization with demand planners and you need to set up (17:46) demand planning, how do you do that? (17:48) It's a question and you can look at different options.
(17:51) I can install an organization with demand planners and look at it, but yeah, that costs money, (17:56) right? (17:56) And I don't have the capabilities, so I need to hire people with capabilities. (18:00) It will take me six months before I found the right person. (18:03) Before that person is really on board, let's take another six months.
(18:06) So in one year, I can finally say I have started something on demand planning. (18:10) Timeline and so on, take it as an example. (18:12) It's not really linked to the Rijnaar case.
(18:14) But then I said, okay, it's overambitious. (18:17) Let's start with AI. (18:18) Let's forget about the demand planners.
(18:20) Let's use AI software to build that forecast. (18:23) It's a black box. (18:23) And let's only use the outcome and use the typical process of forecast accuracy and (18:28) so on to see if we are good enough.
(18:29) But then I don't need a real demand planner that can tell me what is the right model on (18:34) the data. (18:35) We did that. (18:36) We implemented that.
(18:37) It worked and actually quite well. (18:40) But what I forgot was the people component and how to interpret the results, how to trigger (18:45) the right conversations with your salespeople. (18:47) If they are used to talking euros, how do you translate that to volumes? (18:52) How do you tell salespeople that they need to consider the mix? (18:56) Because in our industry, you cannot push for, let's give an example, this is a type of window (19:01) you need to buy.
(19:03) It's the other way around. (19:04) The architect draws a house and says, this is the window I want. (19:07) Of course, there is a bit of, let's say, general trends that you can follow, but there is not (19:11) this push model that we say we will sell this type of window.
(19:16) It's not feasible. (19:17) Typically in Belgium, it's still the sector where everybody wants to have something very (19:21) unique or they think it's unique. (19:23) That whole process is what I underestimated.
(19:27) And I think it was a lack of sector knowledge from my side. (19:31) Looking back at it, would you do it in a different order where you would first focus more on (19:36) the salespeople and trying to get their insights on what's happening and see, okay, their value (19:41) forecasts or targets? (19:42) Can we translate that into volumes rather than starting with AI on the actual volumes? (19:47) Or would you still have done it the same way? (19:49) I would do it in a different way. (19:52) What I don't regret is that I jumped to action.
(19:55) And that's what I really like about Reynaers group is that if you have an idea, there is (20:00) a vision behind it and you have a good business case, then we do it. (20:04) And I think that is really what I appreciate about the company. (20:07) And I would still move into action.
(20:09) Looking back, did I take the right action at the beginning? (20:11) Knowing what I know today? (20:13) No, I think I should have spent more time on understanding the sales part of the process, (20:17) but also to reflect a bit on how are we going to use it? (20:22) I started from this concept of I know how S&OP works. (20:26) You have demand planning and it goes to that level of detail. (20:29) And then you have supply planning and you need that to build this capacity plan.
(20:33) But all of these components, when I look at it today, maybe we don't need it in the (20:38) way that I envisioned it at the beginning. (20:41) It was too much for what we need. (20:42) And I think that's a lesson learned that you cannot always know that upfront is to really (20:47) say in this company, we need to go to this level of maturity to get this right balance (20:52) of impact versus effort.
(20:54) Because S&OP is a never ending process. (20:56) Every time you can improve, but there is some kind of top point in which you say, now with (21:02) the efforts I have done, I get the maximum output. (21:04) I can always continue and put more efforts in it.
(21:06) But it will be marginal gains. (21:08) I overestimated the thing that were required to get to the top point. (21:13) Do you still have only the AI solution now or did you complement that with a demand (21:18) planner? (21:18) What's the setup now? (21:19) Yeah, I did first do the AI tool, but then I also only a few months later started to (21:25) reshape the role of our supply chain analyst towards S&OP plans.
(21:30) So it was indeed, there was also an organizational component, but it was more not a restructuring, (21:35) but a revision of the roles that we had. (21:38) In our case, we had analysts, but I don't see an analyst in the same way as I see an (21:43) S&OP planner. (21:44) I don't want people just to analyze things that they also have a responsibility for results (21:48) and outcomes.
(21:50) That's for me, the difference between analyst and planner. (21:53) Okay. (21:53) It's my own terminology interpretation of the role, but I do think that you need this (21:58) kind of don't analyze just to analyze, there is a result that you want to achieve and that's (22:03) what you also should have people accountable for.
(22:06) We had that discussion in previous episodes as well. (22:09) It's interesting that you talk about analyst and planner. (22:12) Do you see different skill sets needed in those people and is it easy to move from one (22:16) to the other or was it a difficult evolution for the people involved? (22:21) Not difficult, but it is an evolution and you move from, I will now explain it a bit (22:26) in extremes.
(22:27) It's never like that black and white, but you move from somebody that's very good in (22:30) Excel management and data manipulation to somebody that has a business knowledge that (22:35) knows how things are connected. (22:37) So you need to understand the process. (22:39) So you need to really educate people and they have to like data.
(22:43) Some people enjoy a lot more the data crunching and doing analysis and finding the outcome (22:49) than people that say, yeah, I don't want to be a detailed, an expert in the manipulation (22:53) of data, but I want to understand the data and see how it can be adjusted. (22:58) So it's different skill set, but also I think what people like and enjoy to see where they (23:04) fit best. (23:06) Do they also need influencing skills and getting things done or that's less of a requirement? (23:12) No, it's a good add on.
(23:13) I think it's, if you are a planner to achieve things, to achieve results, you need more than (23:19) just the truth or let's say the analysis and the outcome, you need to be able to influence (23:24) people with the right arguments. (23:25) And again, that is for me, part of the planner role, which I think my definition is a lot (23:30) broader than the analyst role. (23:32) And I don't know if I now have, this is a very personal definition that are probably (23:37) standard for that.
(23:38) That's how I, at least in my team, look at it, that I want my planners to be really outcome (23:46) oriented. (23:46) I'm just driving as an OP process because I have to, I have to have the meeting, okay. (23:52) The people, somebody overruled me and that's that.
(23:54) I have this different thing. (23:55) They need to say, no, no, we owned it. (23:57) We had a discussion.
(23:57) This is the best for the company and I'm fully behind it. (24:00) Or at least I think this is the best we could get. (24:02) That's my vision on it.
(24:04) That goes into the direction of leadership, the next step after purely influencing skills. (24:09) Is that also something you expect from those people and are you coaching and training them (24:13) in that or is it something you see as your responsibility? (24:17) How do you go about that? (24:19) I'm not expecting everything in one person. (24:21) It's also a matter of evolution.
(24:23) I have my role to play as well, of course, but if you look at, let's say, the full organizational (24:30) development, which is also part of this strategy, again, making the connection to the strategy (24:35) we built, that was also organizational part of that. (24:38) How should we connect the dots? (24:40) Who should play which role? (24:41) It's maturity of the company, maturity of the organization, maturity of the processes (24:47) and connected to that, maturity of the systems, so the IT systems. (24:51) All of these things, again, need to be put in the right shape.
(24:56) And what I think is very difficult today, where I'm now after two years, is that we (25:01) made huge progress in certain areas, but we also, in some areas, didn't make the progress (25:06) we should. (25:08) So now we need to have all these components, again, at the right level to say, and now (25:11) we can take a step up. (25:13) And the components being process systems and people, yeah.
(25:17) Yeah, exactly, exactly. (25:18) And I think to give the example of demand planning, yes, we have now a tool that can (25:22) support us in the process. (25:25) We have the frequent meetings and so on.
(25:27) The people are now getting more used to it. (25:30) Now we can make the step towards how are we now better using it or how can we now have (25:35) a better quality forecast because we are discussing the right things. (25:39) And it's step by step that you need to go through it.
(25:42) And it takes time, maturing your organization, maturing your processes. (25:46) That takes time. (25:47) It's not something that, and when you put it on a slide as a consultant that you say (25:51) three months and then you are in the next step.
(25:53) No, there are in those three months, a lot of other things that happen. (25:57) You have the individual growth of people. (25:59) You have also your priorities that come in and maybe then there is a calmer period.
(26:04) So it's really difficult to plan that maturity. (26:09) And you also mentioned within RENAS, there is this appetite to try things, to take action. (26:14) Do you now consider it in a different manner? (26:16) It's again a nuanced answer because the reason why this whole AI forecasting was so (26:23) easy to implement is because there was nothing existing.
(26:26) It's new. (26:28) When you enter the field of there is already a legacy solution, I want to change that because (26:32) I think it could be done better. (26:34) Then you enter this discussion way of why is our existing tool not good enough? (26:40) Can we not upgrade that? (26:41) And there I had the whole journey where I detailed scheduling and planning, which is (26:46) another step we need to make.
(26:48) We have an existing solution for that. (26:50) I try to see what do we need for the future. (26:53) We did the whole year of, I would say, benchmarking, visiting other companies, trying to understand (26:59) what is the best solution for us.
(27:02) But there the convincing part and the trying out things was and is a lot harder. (27:07) We are making the right steps. (27:09) I'm also convinced of that, but it takes more time.
(27:12) Which department specifically do you have those discussions? (27:15) And have you found any specific arguments or specific things that they focus on that (27:19) others can learn from? (27:21) Should they want to improve their current system or current process? (27:24) I think it's a typical discussion. (27:26) On the one hand, you have, of course, the technology people because it is ICT. (27:31) What is the best solution? (27:32) But I think the main discussion we had, and that is also with businesses, can you imagine (27:37) a world where you have more functionality because we are using that existing legacy (27:42) system already a long time and people are used to that? (27:45) Can you imagine a world where you have this option and that option? (27:49) Can you imagine what we will do with that and how it will improve our process? (27:53) So there is also this business case component of what are we actually trying to achieve? (27:58) It started with that.
(27:59) The discussion started, I think we should reduce lead times, but then we need to have (28:04) a better way of planning because now our lead time is composed out of this and this (28:08) component. (28:08) So there is this whole pre-study phase where you say, if we want to improve things, how (28:14) can we achieve that? (28:16) And what do we need as enablers? (28:18) And then the IT or the tooling side comes into play. (28:21) But then you need to look at, OK, can we have that functionality in our legacy system or (28:26) not? (28:26) If we go to an external solution, what can that solution bring? (28:31) And I don't know if it's specific for our company.
(28:34) We have a very strong legacy system. (28:39) And it's never a company like that. (28:40) There is an existing base.
(28:42) And don't touch it because if you touch this, the whole house can collapse. (28:46) That kind of fear, which can be right. (28:49) Yeah, that's something we were struggling or are struggling with.
(28:52) And it's a proper consideration. (28:53) Every time you change the tool, you need to think about the future. (28:57) But you also need to think about today's business case and today's implementation.
(29:01) Mm hmm. (29:02) Yeah, I like the part of imagining a world with other options. (29:07) And I'm also wondering, from your perspective, what you've seen over your career from a system (29:12) side, where do you think significant improvements could still be? (29:16) If you try to imagine in five or 10 years, where do you see the most possible improvements (29:21) still? (29:22) Yeah, this is maybe a bit of an open door if you talk in a supply chain planning podcast.
(29:27) But how many excels are we still using in planning? (29:30) And there are so many solutions today to avoid that. (29:34) And a lot of companies have implemented this whole process. (29:37) And then there is the connection between the supply chain.
(29:41) And there are tools that offer the whole bunch. (29:43) It can become such a complex IT architecture that people start to have their off-grid excels. (29:51) I think that's something we should avoid.
(29:52) And I don't know. (29:53) There's a lot to talk about. (29:55) Self-steering supply chains and with AI, they will
(29:58) Discover everything.
(29:59) I hope to see that, but planning remains also a people business.
(30:04) And I think that combination will remain to have the challenges.
(30:09) That we've experienced today.
(30:10) But I do think there's lots of opportunity out there.
(30:14) And I just don't know, otherwise, I would have found a known.
(30:17) Company, how to solve it.
(30:19) The tool alone will not create a solution.
(30:21) It's part of the solution, but it has to be part of a bigger vision.
(30:26) Of how are we now going to set up our future in planning.
(30:31) With processes, with organization.
(30:34) And with the tools that connect to that.
(30:36) To imagine those other options or to even see what other systems there are.
(30:41) Or that are working for other organizations.
(30:43) You mentioned that you went to several other companies.
(30:46) I know you're also involved in the open manufacturing campus.
(30:49) I think it is.
(30:50) Could you maybe explain what that is and how others can open their eyes.
(30:55) Basically to other possibilities, right?
(30:56) It's not easy to just go and walk in, in any company to just.
(31:00) Understand what they are doing.
(31:02) Yeah, correct.
(31:02) Your first question was what is the open manufacturing campus?
(31:05) So to put it very simple, it's an open campus.
(31:11) Which is based at the locations of the former Philips lighting facility in Turnhout.
(31:17) At the peak of industry in 2006, there were almost 3000 people working for Philips lighting.
(31:21) In the factory in Turnhout.
(31:23) Today, that has reduced to 400 or 500, don't take me on a number.
(31:28) But that means there are spots to work for 2,500 people.
(31:33) The way the open manufacturing campus approaches this is by attracting new.
(31:37) Companies, new industrial companies that have their operations over there.
(31:42) And because it's an open campus, people can learn from each other.
(31:44) They can also still tap into the knowledge of Philips.
(31:48) It has to become a kind of vibrant place for industrial.
(31:52) Manufacturing companies.
(31:53) So that is the vision of the campus.
(31:55) And the way I'm connected is to see how can we make this a propelling vision.
(31:59) And attract those new companies?
(32:01) Because I think, and that's then your second question, how can you get into.
(32:06) Other companies to see how they are doing?
(32:08) That's your network.
(32:09) That's purely based on your individual network.
(32:12) Who do you know?
(32:13) And there are a lot of ways to grow your network.
(32:16) Yeah, I think there is in VOCA, this whole setup on the supply chain community.
(32:20) I don't know, you can subscribe and you visit seven, eight companies.
(32:24) You get in touch with all the supply chain managers, and then you have your.
(32:28) Connection and you can ask, can I pass by to see which system you're using?
(32:31) And that's one way.
(32:32) Second way is to use your consulting friends to come to their events and again.
(32:38) Meet people in similar situations.
(32:40) A third way is then more from my personal background in consultancy.
(32:44) I already know a lot of people that have a similar job as I have today.
(32:48) So why not ask them, can I pass by and do something in return?
(32:53) Because how many people, I think that's a very simple question.
(32:57) If you ask any people, would you be interested to visit my company?
(33:01) Everybody says yes.
(33:02) You know that that question is very valid to ask.
(33:06) And you know, if you will give them the favor of, you can come also and visit mine.
(33:09) That is already a win-win for both.
(33:11) So it's just a matter of making it happen and finding a date.
(33:14) That's typically the hardest part because asking it, it's very easy, but finding a.
(33:19) Date and to organize is the tricky part.
(33:22) And there are of course situations where you cannot visit because there are.
(33:26) Okay, that happens as well, but 80% of the cases, there is nothing.
(33:29) One thing we didn't touch upon yet is as far as I remember, your role is a group.
(33:34) Supply chain manager, but you also have procurement responsibility.
(33:38) Yes, this is a supply chain planning podcast, but being that close to.
(33:42) Procurement and also having them under you.
(33:44) Do you see another value in being that closely linked between both?
(33:48) Yeah, I think again, it's a full supply chain you have to manage and it starts.
(33:53) With procurement and that's the core model.
(33:53) With procurement and that's the core model.
(33:55) So I think the more you have good connections, it doesn't always have to be in the.
(33:59) Same role.
(34:03) That’s also not what I’m saying, but for me, it really makes a benefit.
(34:06) And I will give you one example.
(34:10) We are a company, we are an assembly company in a way, we assemble to order.
(34:17) So we are very reliant on our suppliers to have the right lead times and then to do.
(34:20) The last step towards what our customers want.
(34:26) How do you collaborate on forecast sharing, volume alignment, capacity alignment,
(34:31) Making sure that what we promise to our customers integrates the promise of our.
(34:35) Suppliers? Because in most, in some cases, that is only a cross-docking part that we.
(34:41) Do. So this collaborative forecasting, collaborative planning, we are very.
(34:45) Premature on it.
(34:49) But that’s for me, coming years, something that I want to work on.
(34:52) To translate our customer needs across the whole chain.
(34:53) And then it helps if you are both responsible for your supply chain and your.
(34:56) Procurement.
(34:58) Another hot topic, not these days, but already for a while, is sustainability.
(35:03) Is that also something you can impact from your role or is it other parts of the.
(35:04) Company that have the main impact there?
(35:07) No, no, no. It’s like in every company.
(35:11) A lot of companies, if you look at the scope one, two and three, where scope three is.
(35:14) Linked to your suppliers, very simply put.
(35:18) In our case, I think it’s more than 95 percent scope three.
(35:20) So can I impact it as a procurement manager?
(35:25) Of course, because where I source determines a lot on our scope three.
(35:31) What I discuss with the suppliers, that’s in the end affecting our total score.
(35:33) Because that’s some of the one, two and three.
(35:39) So, yes, and we are in a very, I would say, intense carbon, intense industry.
(35:46) Aluminum industry, because of the nature of the material has high CO2 values.
(35:48) And we are very active in that.
(35:50) We are also, we try to be a front runner.
(35:55) We have all kinds of programs in place to reduce our carbon footprint on the one.
(35:58) Two and three levels.
(35:59) So it’s really part of our DNA.
(36:01) We are SBTI committed.
(36:05) We have targets for 2030.
(36:09) I think Reinhard’s group as a company is also very active in that field.
(36:13) Anything specific that you’re really proud of that you want to share?
(36:19) Yeah, I think what I’m proud of and without going into detail is that for us.
(36:22) Sustainability has become a parameter that is as important as all the other.
(36:26) Typical parameters that you use to judge suppliers.
(36:29) So typically you have this total cost of ownership, you have the service.
(36:32) Component, you have the quality component, you have the risking component.
(36:37) We put sustainability at the same level.
(36:39) When we do an evaluation for every category of our setup, we review our.
(36:42) Suppliers and all of these elements.
(36:47) And based on that, we build our strategy for the years to come.
(36:49) And especially for aluminum, we have done that to the maximum level of detail.
(36:52) Because that is our biggest scope three contributor.
(36:54) And there, I think we now have a really good strategy in place.
(36:56) That touches all the boxes.
(36:56) So we don’t optimize only for cost.
(37:02) We don’t optimize only for sustainability, but everything has been balanced out in.
(37:07) The right way to create the best future for the company.
(37:12) From a planning perspective, that mostly also complicates things more, doesn’t it?
(37:16) Having to take into consideration an extra factor, an extra kind.
(37:18) Of constraint, if you will.
(37:19) Yeah, you’re correct.
(37:24) The more parameters you add to your model, the more complex it becomes.
(37:26) I think it’s a necessity to do so.
(37:30) There is, for good reasons, a lot of push on sustainability.
(37:31) So let’s do it.
(37:33) But let’s then also not overdo it.
(37:36) I always find that there is always a hype of the moment.
(37:38) You need to do something with data.
(37:40) And now sustainability, it will remain.
(37:45) But costs, the more standard things, costs, service, quality, they will.
(37:48) Not disappear for good reasons.
(37:51) So let’s put them all on the same table.
(37:52) Let’s look at the mix.
(37:56) And let’s find, again, the right journey for your company.
(37:59) You cannot overcompensate on the one element because then you will lose.
(38:03) For us, for instance, cost and footprint is something that.
(38:05) Works not always in our favor.
(38:08) You pay more, for instance, for recycled content.
(38:09) How can you balance that?
(38:14) How much would you want to pay more to get a better sustainability footprint?
(38:18) But also, does it then impact your service and your quality?
(38:21) All of these things have to be considered.
(38:24) And it’s complex.
(38:28) I agree with you because if I start explaining how it works for.
(38:32) Aluminum, you have another podcast, I guess.
(38:36) I think it’s really about putting it on a table and balancing it out.
(38:43) You shared a lot of very interesting experiences.
(38:46) I’m wondering for the listeners out there, what would you say is something.
(38:50) That they can look at or do just to improve their understanding.
(38:54) Of supply chain planning?
(38:56) What are some crucial things that you also give to people in your team maybe?
(39:01) I think I will not confuse the listeners with, again, another thing, but I.
(39:04) Think this networking part is something I also, I have to be honest, when I was.
(39:08) Working at Philips, I never went to events.
(39:11) It was not stimulated because you are in the company and the way you do it is.
(39:15) Unique and nobody knows better than you.
(39:17) That was how I was raised when I was at Philips.
(39:20) Then I joined PwC consultancy, the thing you do, you organize events to attract.
(39:24) Customers and you think, they are not interesting.
(39:27) How can I now convince them?
(39:29) Again, I think I already said that during the podcast, you need to open your eyes.
(39:34) There is a world outside of your own company and every event is an opportunity.
(39:39) To learn and I think the way to set up, it’s always nice that you can listen to.
(39:43) Some talks that’s very passive and you just learn and then there is this.
(39:48) Networking part and feel free to use that or not, and if I go to an event, I’m.
(39:52) Not always using that second part, but then at least I have the first part and.
(39:57) Of course, you have to find the right way, but you will always meet somebody that.
(40:00) Is interesting, you can ask them questions on how they go through certain.
(40:04) Challenges and step-by-step, it’s good to have people you can ask questions to.
(40:09) They will not always provide the right answers or have the knowledge, but at.
(40:12) Least you have the opportunity to ask a question.
(40:15) Coming from somebody who also had to grow into networking very much.
(40:20) Because it’s always scary that first time you go to this reception and you.
(40:24) Need to find which table to stand at, did you also need to grow or it came.
(40:29) Naturally and do you have tips or tricks for people to, you’re there on.
(40:32) Your first networking event, what do you do?
(40:34) I don’t want to claim that I’m an expert in networking.
(40:37) I think I’m an engineer.
(40:39) I think it’s a final test.
(40:41) You see, I’m not naturally a good networker.
(40:44) I know that now, but what I always use then, I use a topic because it’s very easy.
(40:51) That’s why there is always an agenda in an event.
(40:53) Then they speak about digitization and the only thing you have to say, you go to a.
(40:57) Table and like you said, and you say, what did you find about this topic?
(41:01) And then immediately you have started the conversation and where are you working?
(41:04) And what are you doing exactly?
(41:06) And how do you look at that?
(41:07) Because that is what connects you at that event.
(41:10) It’s a very simple opening sentence.
(41:13) You can never embarrass yourself with that.
(41:15) You can just ask what you think about the topic.
(41:18) For me, that takes away a lot of this anxiety because yeah, you said it right.
(41:22) What do you have to say?
(41:23) The one thing that connects you at that event, the topic of the event.
(41:27) So say something about that.
(41:28) And you also have to accept that some conversations are done after two.
(41:32) Sentences or three sentences.
(41:34) And then you say, oh yeah, but I’m going to take a drink.
(41:36) Yeah.
(41:38) Yeah. Don’t make it too big in your head.
(41:40) I think that’s the biggest hurdle I had to overcome.
(41:43) Also not a natural small talker and so on.
(41:46) Use the topic at hand.
(41:48) You don’t have to talk about yourself and you can just talk about the topic.
(41:52) Content-oriented.
(41:53) It helps.
(41:54) At least it takes for me to wait.
(41:56) I think we also met at an event, right?
(41:58) Yeah.
(41:59) And I think, or something for listeners, but I also often do, if I’m at an event, I.
(42:03) Like to just ask about the company often because I’m really interested in how the.
(42:07) Company actually works and what the person does there, especially if it’s a name of.
(42:11) A company that I know, and that’s also just an easy opener and they will share.
(42:16) Their experiences and that’s something else.
(42:19) Yeah.
(42:19) And also for yourself, I set realistic expectations.
(42:22) I never had the expectation for myself that I have to have spoken to everyone.
(42:25) When I go to an event, but I do challenge myself, at least go to two tables or two.
(42:31) Groups. You start a conversation and then you speak to the people and you will feel.
(42:36) At a certain moment that there is not so much more to talk to and then you can leave.
(42:39) But I challenge myself to at least do a second attempt with another table.
(42:44) If that doesn’t work, yeah, then you can leave.
(42:46) It’s free to leave, always.
(42:48) But do it because if you don’t do it, you have nothing.
(42:52) In these events, there are typically also these presentations.
(42:55) There’s like always presentations and then the networking section, right?
(42:59) I find, I’m not sure if you agree with it, but I find that these presentations, yeah.
(43:03) There is not always that much to learn because it’s to a broad audience and they’re.
(43:07) Not going to actually discuss the details.
(43:09) So if you do want to know what’s really going on, then you need to have this one-on.
(43:13) One contact.
(43:16) Has it also been your experience or do you say no to those presentations?
(43:19) There’s also a lot to learn from those often.
(43:23) I think you can also learn from the presentation, at least the minimum you can get.
(43:27) Out is how is it presented and how does the structure and what are the few sentences.
(43:29) That do resonate with you?
(43:33) Because I did also myself a lot of presentations at events.
(43:37) And when you are a presenter, people come to you for networking.
(43:40) That’s the best way. You just present yourself and then people come to you to ask.
(43:42) Questions. So do it yourself.
(43:46) If you don’t know who to talk to, go to one of the presenters and say, well, nice.
(43:48) Presentation. Can you elaborate a bit more on that?
(43:52) So people can meet you in the open manufacturing campus at events.
(43:56) Can they also send you something through LinkedIn if they still have any other.
(43:59) Questions? Yeah, of course.
(44:01) I’m very open to see.
(44:02) OK, very good.
(44:06) We’ll share your profile in the description.
(44:10) Thanks a lot, Johan, for sharing all of your experiences and to the listeners.
(44:11) Until next time.