Leaders in Supply Chain and Logistics

#71: Pascal Bouye Vice President Supply - Global Emerging Markets of Mars

February 20, 2020 Alcott Global Season 1 Episode 71
Leaders in Supply Chain and Logistics
#71: Pascal Bouye Vice President Supply - Global Emerging Markets of Mars
Show Notes Transcript

Pascal has been with the company for more than 20 years, having served in different leadership positions in manufacturing, supply chain, and engineering, across Asia, Europe, and North America. He is now in charge of Supply for Global Emerging Markets, which include Latin America Middle East and Africa as well as Asia and Australia.

Discover more details here.

Some of the highlights of the episode:

  • Having the right people on the right job
  • How Mars handles the Coronavirus crisis
  • How e-commerce is changing the way Mars operate
  • Managing 20 time zones in a global supply chain role
  • Examples of digital transformation in Mars
  • By 2025 Mars plans 100% of plastic packaging to be reusable, recyclable and compostable

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Radu Palamariu:   0:00
this episode is brought to you by Amazon Logistics. The delivery service partner program is in the opportunity of business leaders who want to own and operate their own package delivery business. Get access to Amazon's logistics training and technology, and start building a team of motivated drivers in your community to learn more about becoming an Amazon delivery service partner. Go to logistics that amazon dot hello and welcome to the leaders in supply chain protest. I am your host. RODDY COLUMN Are you managing director of Global? Our mission is to connect the supply chain ecosystem in Asia and globally by bringing forward the most interesting leaders in the industry. I'm very happy to empty this today, Bosco. Yet who is vice president? Supply chain or global emerging markets for Mars? Ours is American global, manufacturer of confectionery, pet food and other products close to 30 billion annual sales, and some of the most recognizable brands are sneakers, Mars and weeks. Chocolate bars pedigree risk us and world with friends as well as we lose and order chewing gum. Among many, many others, Company is one of the largest privately held in the United States. Pascal has bean with Mars for more than a vintage. It's having served in different leadership positions in the veterans Find Jane and Engineering across Asia, Europe and North America. He is now in charge of his life for global emerging markets, which include letting America, Middle Eastern Africa as well as Asia and Australia. A pleasure to have you and thanks for making the time

Pascal Bouye:   1:30
for stuff. Thank you Rather and very pleased to be part of your podcast. Let's start maybe, firstly, with your career in Mars,

Radu Palamariu:   1:38
it's 22 years. 14 Rose. Why quite a feast? So maybe tell us a little bit about your your progress in the company.

Pascal Bouye:   1:47
22 years, actually. How are people? Start to calm your victory in the company, but many people, including my Children, asked me, No, why did I stay so long in the company? Why was not more serious to explore their sinks? But when I reflect on my carrier first, I think I was very fortunate to join. The company's absolutely believe in the development of the people as a way to develop some success, and I think when you combine this with my curiosity, my willingness is trial. I seek. Over the last 22 years, I've never been born one day and I was looking enough to be able to walk across four continents on Europe, America's Middle East Africa in now based in Asia and that wonderful experiences,

Radu Palamariu:   2:38
you know for sure. I mean, it is quite it's quite a feast, and I was just with the thought that comes to my mind. I was recently asked what makes a good chips pledge an officer in a different podcast with one of the transportation associations in Europe. And I guess this versatility of moving ground continents and international mindset is one of the key aspects and and great to see Mars doing that. There's a couple of other great companies doing that and also was curious. In terms of this responsibility, you are in a global role in vice president of supplying emerging markets. Sounds like a great scope, huge scope scope that would keep you up at night because, you know, one part of the world would never sleep, no matter what times on our own. So tell us a little bit about what's your role? What's the scoop day

Pascal Bouye:   3:27
today? So I've been in this sport for eight months now. And when we created this role and I was off the wall e felt quite scary because we talk about 15 different factories over 100 market six close tales with different route to market on dhe Yes, continents, about 20 time zones. So they are humanity's and a sick. It forced me on my team to resync about other.c You delight our customers, our customers with the great product. And we can track where whenever we're prices and the last point or so is emerging. Market is a mine off opportunity thistles where we believe most of focus will come from not only for must Wrigley chocolate government means, but also for most incorporated on, therefore, his other. Make sure that supply and suppression remain relevant to the fast evolving shift that we see the in the industry with the country males with channels with authority, so that that's just tragic.

Radu Palamariu:   5:19
So I need to ask you this because, you know, we live in a time of crisis that we live in a town with crisis and business continued. He plans on the new normal because there's always something happening from, you know, or in Iran Toe volcano erupting in Philippians. Now we have a run a virus crisis that is badly infecting. How do you How do you manage all this? And you know, especially when it took him or, you know, 20 times.

Pascal Bouye:   5:47
Well, I think that when you get the first crisis when you learn from it and you start to t c r do you manage a crisis protocol? Are you try to bring back you know, a production assistant You can to minimize business, Continue t And after the second you do it in the self when you do it. And then you realize that where business description is becoming part of the war out of the job and therefore sink off. The realization of the geography is we have to plant a crisis. We have to plan for the unexpected, so I don't know what it looked like. But the way we approach it is really looking at our core business. The tragic part of the business are we secure it, and that can be wrong. You know, defining second resourcing options on for these, making sure that we anticipate any registration we have to deal with waste some of the Southeast Asian country, for example. It's also making sure you all some static in victory on some of your critical excuse Andi. It's also training your people, brings them tow, practically anticipate crisis. You say you're planning simulators where one or twice a year a significant disruption and this liver or preparedness becomes a competitive advantage when it surprises like the corner. He was visiting us

Radu Palamariu:   7:10
for sure, and I'm just thinking from lipstick that is an example cause It's very real and it's happening right now, you know, there's not necessarily and clear and inside. Hopefully, you know he's gonna clear up the coronavirus in the next couple of months. But in this particular situation, how do you Maybe, maybe you can share with us. Um, some Berries hands on a practical steps that you've taken in in Mars, like you also have a crisis team that gets deployed. How would you you know, how would you react? Very many pregnant. So the

Pascal Bouye:   7:41
first piece we've done is really looking at till the safety before associates. So providing advice around travel? No, making sure that people that I cannot go back to China for isn't pulled up ticket get off while they are waiting for humans to be able to travel back to the arm on. So we first focus really on the safety off. People, then is trying to understand the magnitude of the risk and women back or business. Or basically, with China New Year in the corner violas China shut down, and this is an important source of seeing location for us. So we play. We get into how much cooperation we get until we run out off, stop firing. Or can we activate second resourcing tradition, Andi, So way enter into this? And of course, we put in place in a crisis team at the China liver because this is where we have a lot off description, but also to say more cock liver twin shows up. You get my guidance. Or so for all the units that are beyond China. And practically, it's trying to money toe when we get the license to start up again a factory in China and knowing that chocolate on me mentally priority for that for Chinese government and Chinese authority. But the interesting pieces when you get it slices, do you have the man for will be able to stop them, knowing that the food country has been traveling over the Chinese New Year and most of the people cannot go back home. So we're trying to deal with that and understand what organizations need to put in place so that particular associates for any contamination, but also start to be able to operate. And then, as we feel those pieces, we realize that now we need to be able to ship the product and when that such a shutdown order potion on phrase across Asia. We do see a replay it back towards our country's. So my number with finding difficult to ship for them from Australia was a part of Asia because of the ripple effect. So I think we are green in the face where we are already watching what's happening with no this week and next week, where first we know more about the virus stabilizing. Our continued contaminated and also our business operation are resuming in China. And it's a lot off work detail walk. It's a lot off quick focus on making sure we connect with the authority to get, you know, the key events of some documented on the border customs. So this is very hands on. I think the piece we have to do a swap leadership is to assess what if this remaining when ongoing issue for more for six weeks and three buns like six months issue all that stands for business way? Don't have the answer yet, but that's what this little planning is important. 12 shows that we say in every crisis there's a part of danger to your business, but there are many opportunities are. Can we translate that into opportunities

Radu Palamariu:   10:55
on? I wanted to ask you because the point that you're making you need you know you need backup. You need alternative sourcing hubs and routes and options. All that is linked to having quality data is thing to having quality inputs from your supply chain to identify that, asking your broader question in terms of your supply chain and they die images of transformation, of the buzzword that everybody's talking about. How have you done a certain proteins that you're most proud of in Mars around that specifically around getting the right data inputs from your supply, Jen. And how would that help you in this type of

Pascal Bouye:   11:31
situation? Yeah, I think you know the digitalization off the circulation is fascinating, and it's actually the new tools. New possibilities are giving a party to leap for some off the tension we've been facing. So, for example, across media for unit, despite being a last Operation, Excel is the planning tool, and not only for you.

Radu Palamariu:   11:55
I think I was reading some of 90% of the

Pascal Bouye:   11:57
way spent the last 10 to 15 years trying to implement ASAP. Some of those big software and now is the cloud with the disease from the soup ation. You can actually go to Reno Club based solution that transformed the way we operate, and it makes us realize that our, you know, we know business or Mr Data has a good eye. Can we kept you for the information and provide insight from that? So it's really running Jonah and pushes to have Sprint, which is really testing number a solution way. Don't want sex to be perfect before we implement them, which wiser if we feel successful and we quickly replicate them if we feel that it's not walking with top. So it's a very different approach that's with historically depot in common systems everywhere and some off. The direct implication is we looking at more tender on sea freight? But I mean, is this visibility understanding what we want? A ship from where to where we can have live options about separate, which reduced significantly your manners deflation that cost off see shipment? What's China has done Because China is a pilot forced way faster deployment, they're probably full visibility off the stock from customer until she player being making articulated decision around want to sell at what time went to ship the product, and that's accelerating our ability to make decision. And also this is a better integration between defendants. Reply on sharing we minimize to stop people. So that's how does our example. And the project we're working on is also what we call control tower, which is start full visibility off. Uh,

Radu Palamariu:   13:54
and what are some of the cover com challenges that you face when you're trying to implement this thing?

Pascal Bouye:   14:02
So obviously very, very good

Radu Palamariu:   14:04
example with this prince and the fact that you don't need to do something organization of wine because they take years and usually just pilot off the pilot off the planet, and nothing really actually gets implemented. But even even when you do the screens and then you need to roll it out with an organization level from your experience, what what have seen some of the challenges that you have seen? You've done this many times at work, and what was some ways in which you overcome that? Because I think that's a situation where most people are also

Pascal Bouye:   14:30
Facebook. I think the first pieces weigh Don't know what we don't know and so many possibilities available with the new tools that be aware that the trends eyes possible is critical and therefore being about to partner with the external Cos off getting the white excellent that's effective is critical. So this is forcing us to be more externally focused. That's just previously looking at internal situations. But that's the first driver sing. The 2nd 1 is also to be clear about what we're trying to sew for, because it's great to use digital. And but we want more. We can execute what we tried to sew for. The bit of a solution will be on the more salary with your business, and I seen the self appointed moron mindset in the view in the organization. Sometimes it's very difficult to change. I did. I've been using the Senate extend spreadsheets for the last 15 years is with defecated job. I'm very comfortable with it, moving to a different tool or accepting that we can use it differently. It's not always easy and many ABS system implementation held in the organization because people did not use the system for what they were designed for and what we have some system in place and not be used became obsolete because people go back to where they used to do on. Except I think this is making sure that way, stay away about what's happening. Exterminate. And then we engage the organization in this country or shift. You know, embracing

Radu Palamariu:   16:11
the new tools and this pops into my mind is a question just strictly related on the past. Demographics as well as differences in between the geography is that you oversee right. I'm letting America's wanting medalists nothing. Africa is another thing. Southeast Asia, China, Australia. How how do you you be against localization is affecting our way. We had another guest on the podcast, which is an expert in trade, and he was arguing the case that the way that local companies will be more successful in the future is by being hyper localized and managing to to get this plantation localizing and as much as possible. But how? How does Mars and just do you in your role managed to have that local focuses? I'm guessing something that might work in less in America, even from item with repeal. Delivery perspective may not be the same. You need at least a new partner. There might not be the same in the Middle East on just thinking. Andi hoping that I'm you know, No, I spirit. And I think this is one of the

Pascal Bouye:   17:14
reasons we created a global market, because one it may be very different in them. Off deliver of development. Uh, you frustrate you. We do see a lot off. Come on. Similarities. So some of the wood market between modern trade or commerce a role being quite rapidly, vessels, traditional trade and how you yourself literally no Mom and Pop's shop. You see the same in India as you see in Egypt as you see Brazil potentially similarly to Southeast Asia. So therefore, what you can do is look commonplace. Books that to deploy another properly with the frame argument, the same thing capabilities are very similar, and that's the benefit of in such organization is to rapidly deploy solution that relevant to mask it with that for inventing the win. And we do see a lot of benefits with that. Similarly, you know, when you look at where we operate, energy market is very much around the equator. So what countries so far, so great, you know, it is difficult to split our product, so I mean solutions that can leverage chillers off. And a lot of problems that can be unstable at higher temperatures will be relevant to all of these countries. See, this is where localization is important. But I think what we're trying to develop is a common friend. Well, that can be applicable and the productively

Radu Palamariu:   18:52
like Lupin, you mentioned e commerce. Let's just talk about that because it's changing everything, really. And it's also changing quite rapidly. The M C J supply chain. How is it? How is it for you? How is it for Mars?

Pascal Bouye:   19:07
But this Gil you trends of the Cabinet. You know, Andi seeing the coronavirus is just swings, and people are shifting faster. It's quite fascinating. I don't want to go to the store anymore. So they're leveraging online and some of the tensions a defensive jeez and is we have become very, very efficient of skill and equal mouse is challenging this mother specifically, I would say the last part of logistics chocolate. Those need control for two shipments. How did you do that? No equal. You find that can point this capability. So whenever we have rejoiced in customers that they were the comments capability. This is the year for us when we have the right to consumers, and the more we can be directed considerable more, we can connect with them. We can create an experience. But the agency's becomes a real challenge on shifting from more than trade a scale actually, equal Mills Chinese business model. And that's something we're trying to never gets through. Its first to find the capabilities that any brothers toe give the same experience without a political instrument was online, but but also make sure that the business model that developing neighborhoods to continue to grow and develop as a company. And I would say this is a learning Jonah on were friendly to walk this path nest. So she was the best way to make sure we can deploy, uh, just anybody for

Radu Palamariu:   20:52
restoration. And this has been a multitude of tools, and I think the technology around analyzing consumer behavior has grown tremendously in the last couple of years, and obviously that has an impact in terms of supply, chain planning, inventory stocks, stock accuracy and and all of that. Do you have any case studies of using such tools for Mars. We're increasing your

Pascal Bouye:   21:15
productivity well, what's right? You know, to really analyze shift in the industry and access data because a critical foetus and now with the smartphones with or the integration of Titan is it's mine for the time being, able to never get that is becoming, you know, data inside becoming critical. What we're trained to do is to partner with some of your customers, to understand some of the baton at them off chasing. We do have quite a seasonal business. So if you talk about Chinese New Year in China, if we talk about other winning the U. S or Ramadan, read a list of some of the key festival in India as well. The volatility officers. No, it's quite big on. So what we're trying to do is to use a particular indigents as a way to predict what may so looking back at the last five years or six years, looking at the off tech leukemia constable give you depending on if, for example, Chinese New Year is in January, February is close to a Valentine's as well can change. You can change you all say older as well So we're tryingto not use of artificial intelligence to give that some kids sites because we do have a believes that year one year, 80 85% of the same on only maybe 10 to 15% viability. But we planned against your perfect war. Then we got it for most of the time. So that's an example of application where they use off. I doubt that SWAT security Asians can give you some insight to better organize our supply ship in a very volatile.

Radu Palamariu:   23:09
And I need to ask you a topic that I think is on the agenda most more supply chain professionals and in general, the world, which is the topic of sustainability. We need to but our heads together in act a bit even more with a sense of urgency that we have done so far. So I wanted to ask you what are some? Some of the areas where you're on focused on in terms of sustainability is supplanting, maybe packaging. Maybe, you know, other areas, but at Mars Well, thanks for the

Pascal Bouye:   23:41
question is, actually this is really a passion for us. Uh, that must really believe that the world we want to know stuff in the way we do business today. And therefore we have a big ambition around sustainability. And we do have a very active form call sustainability in action. And this problem, sweet killer on the 1st 1 is on Elsie planet. A zip in it means what action we take toe, you know, take the time it reduce, you know, really? Ask s a mission. What else? He wants you. We know that what else cavity will become an issue in the future Sustainable packaging. And I go back to packaging in more detail because that's a brutal reality for us in terms of where we are on land use. Is this the one so? So that's the first hit out on their ship. In it, we all saw the piano room striding people and want to increase the opportunity for in the workplace. But also, you know, in all the community with Dutch from our cocoa trees and you know, the consummate eating a product off us. Andi, this is walking with farmers, for example, in the origins for cocoa, for means wise increases their income anything them know for better. For me, I'm not sustainable farming It's also, you know, making sure we respect the human right everywhere we operate. It's also looking opportunities for women on Bovary product in India and Egypt. We've broken some beliefs where we could actually have a woman working in the factories, which, when we talked about this topic, waas so to be impossible and then the last element off our sustainability. Pilar is really nourishing well being, and people should be able to access the product and information they need for. But let me get back to maybe the festival which was around the planet because, you know, Virginia is a G concern, actually, Andi weft from brutal fact. When you look at the hole for you on most of our packaging is plastic. And currently I would say most of it is actually known respectable. We cannot accept it on. That's why we are completely re sinking the way we need perspective. And we are very proud of the 24 product way have toe. Except that the packaging we use is not just a never currently so we've developed a big program and then we met some big public commitment and encourage you know you and also all of our auditors to go to bury the body. You don't know that come where you can see in detail some of this problem but basically by 2025 which is really old. 1% of the plastic packaging that we used with the reasonable recyclable, compostable way  also reduced by 25% they use are getting practice plastic and want to develop reuse program on. But with some key countries also to make sure that recyclable so you should become available. And we want to promote this and we also want to provide recycling. Use it for on guidance for consumers, especially some of the country where it's not very much developed and a sick in Asia. We can see when we go toe Malaysia we can go to some of those countries that this is a significant problem. Andi, what will emit immunity VC as well and the way we are receiving the approaches first read you seeing the use of packaging and that means reconsidering the space we leave in the packaging. Oh, in packs. It's also minimizing the use off secondary and self aka Jean off. And once we use it, we want to redesign it with more environmental friendly solution use maybe a recycled paper capital. I've been in mind that we need to keep the functionality of packaging way shot guarantee Chef like to protect the product from any, uh, temporary on de. So we want to invest in closing the look to make sure that after 2025 by registering off packaging, we don't need by way designing the packaging. We do need an investing in close look Way Believe we can. Bidding a certain laugh economy with packaging no longer becomes a West, Asai said. This is a significant shift which may cause there were sinking some off you. Are we sinking some off business model because 2025 is two more? And it's our responsibility to make sure that we can change at the reality which is not acceptable. I

Radu Palamariu:   28:47
wanted also to ask you and come back to the to the topic that you raise several times and for good reason, because ultimately it's all about people. It's although talent companies are run by by people now, hopefully for or the time to come. I wanted to ask for your views in terms of the type of skills and talent and on dhe knowledge of the end of the day that you see being needed in the supply chain of today. And for the, you know, for the next next couple of years, what would be some of the hard soft skills that you see explosion professionals need to get on board with. To be used

Pascal Bouye:   29:25
to say, as we've been discussing it in the last few minutes is stipulation is transforming way are seeing significant shift, Andi. Therefore, it means that also, the way we take care of suppression is change. You don't know this kid. Oh, and it will depend them a defense living off seniority of the organization. But some office repression of right we need to be about toe problem solving a za cost. Why? Why? Why don't find wood was a the ability or Soto get inside from the data extrapolation. People deal with tons of it. All. Those is simply fighting size that can get about the writer actually, um and your understanding being able to transfer tear on the ships, we see the channel to e commerce, for example. So that changed the way we need to deploy products on digital. We talked about adoption contract, I think a new skill set of the emerging coming. We need to make sure we build the right capabilities without people. But I think the most important case against small on the leadership capabilities that we need faster suppression and a strongly believes that the whole of suppression the enterprise is shifting as well. Maybe that was the flaws unnecessary, a leading to be the problem that we said to the consumer I c. Company and seeing that as a competitive advantage, potentially so. Therefore this virtuous pleasure. The pleasure, really there that we need are people that have that's 15 business acumen can really on this time. What's your place? It's good for the company, cross or looking values that enable company to invest in driving rules on this is, you know, maybe different from the typical suppression people that you speak quite strong ing with different expectations on well, seeing on logistics off and also because we see, as we need to accept that description is part off. We need people that can be a resilient people that can engage also the team to be able to operate in this environment, and it's these people also that can also be a bit anticipating doing some planning, so strategy community may be getting too complex challenges to really love this reflection. Possibilities for company unfortunately way are not seeing this type off. It's not very easy. And I think, as a stipulation, leaders across the industry. We need to see what we need to do when she feels that we can really live law sometime capabilities, even serious way by partnering across industries, battering with universities and promoting supplication a za place to be as a place to grow because this is a fantastic place to really and have a big impact. So, yes, I truly believe that, you know, future suppression talent will be key in a playoff success of companies, but I think we see have some work to do to define onto the local leaders

Radu Palamariu:   33:10
work what would be one piece of advice that you would give Thio, maybe to the younger side of the audience, that is, or is about to graduate, or maybe a spent 3 to 5 years in supplication and wants to become a leader on executive at some point over 20 years. What were some of the things that have helped you the most in your

Pascal Bouye:   33:29
career? It's an advice I was given on. It's also his promise to be true with my best experience, which waas all your development. All your destiny takes charge for your carrier. And to be able to do that, I think you need to be curious. But the possibilities So very early on in my career. If I tried to understand the different falls in the company, the wall of the different department interdependencies which help me define type off experiences, I wantto I wanted to go abroad. I wanted to walk in. He manufacturing leading plants supply shed. So therefore I took ownership of my personal development and it took your ownership of my carry options. The 2nd 1 is Don't know what you do. The when is the special people. I can see them develop and grow. I can see them, you know, having a couples and usually they find the right balance and in them off the respiration and they're over expression for life. And I would say the server one is the courageous risk. If you feel job, he's got to be for you, but take it on my experiences. You know, four years ago, five years ago I was in the UK My genius. You pleasure is one factory. After five years, I end up in trouble. Imagine market energy. You know, this complex environment with 15 factories. I would never believe that would be able to develop that way. But I think you know, I waas curious. People changes on me. I felt it was safe to take the risk on taking a bigger hole. And when you have an environment, when you love what you do, you have supported by the organization by your manager on you have Tito. No, no. You're receiving and without people to support you. Usually you goto the fastest. So yes, take responsibility. Be curios. Be bold and passionate.

Radu Palamariu:   35:49
Thank you, but no. Great great sharing. And yo know, on that note, I'd like to encourage our listeners to follow your advice because yeah, they would. They would go far. Thank you for listening. If you like what you heard, we should to go to www dot elka global dot com. Intrigued the podcast button for all the show notes of the interview. also subscribe to our mailing list to get our latest updates. First, if you're listening through a streaming platform like iTunes Spotify arts teacher, we would appreciate a kind of you five star works best keep us going and our production team happy and, of course, share it with your friends. I most active on Lincoln's, So do feel free to follow me. And if you have any suggestions on what what to do and who to invite next, don't hesitate to drop me a note. And if you're looking to hire top executives in supply chain or transform your business, of course, contact us as well to find out how we can help.