Catching up with Anthony J. van der Hoek, The Coca-Cola Company
What keeps you up at night?
I find it challenging to persuade senior managers to invest in building capabilities (technical and process) to standardize and segment master data. This has important benefits, even though they may seem inconsequential. The industry has standards (UPC, EAN and now GTINs) that are sometimes not implemented and validated correctly at suppliers and retailers. The practice of "reusing" codes is still occurring on both sides of the trading partner relationship.
As one would expect, companies typically focus on identifying their own manufactured products and focus less on interfaces with retailers, distributors or the industry. Each organization feels they need to define different master data identifiers, which is not true. There are different attributes, yes, but there should be a "single set" of master data identifiers. Presently, the breadth of master data management (MDM) is also unknown and unappreciated at a senior management level. Imagine an item that needs brand, product, package, physical case configuration and promotion information -- all very common MDM attributes. Now imagine the tax accountant who needs to identify which products are manufactured in which state to determine different tax consequences based on interstate commerce. Or imagine the upstream supply chain professional trying to determine core commodity ingredients to forecast. Even more important is the issue of product tracking for containment of a recall. The U.S. peanut butter recall of 2009 is an example of trying to identify not just which plant manufactured the items, but also the exact piece of equipment causing salmonella poisoning. And lastly, many retailers require their category advisors to assess accurately how their categories are performing. This simply is not possible without consistent master data.
How do manufacturers and retailers better collaborate?
Collaboration is more important now than ever. The speed and complexity of our changing environment cannot be managed by any single entity. Retailers and manufacturers have to get closer to the shopper and the end consumer. Partnerships that remain at the transactional level will not be sustained, as both parties suffer from a lack of sharing of critical information that could lead to mutually beneficial initiatives.
Partnerships that embrace collaboration do so for two main ends: to reduce costs and to enhance revenue growth. The term collaboration implies a level of trust between the two partners. But this level of trust is on a sliding scale and exists between organizations and a cross section of individuals within those companies. We have all experienced management changes that have caused almost immediate improvements or consequences between business partners. Trust is built over time and what one hopes for is that your partner gives you the opportunity to fix something that goes wrong or gives you the option of "going first" in a tie. No one could ask for more.
All of us are relying more and more on technology to enable and enhance these collaborative relationships. It is an evolution where technology plays a role of binding us together. Even if there are management changes, the fundamental relationship of interdependence is forged through technology and standards. This is not technology for technology's sake, but technology that continually drives cost reductions and revenue growth.
Trusting relationships will grow if retailers and manufacturers help fill each other's gaps and enhance existing capabilities by sharing best practices. Technology can help greatly in facilitating this collaboration and allow us to build ever-more valuable business networks based on relationships and trust. This will in turn lead to the ability to deliver superior service and products to our consumers and shoppers.
How can consumer goods companies leverage the Demand Signal Repository (DSR) as a collaboration vehicle?
The next frontier of technology collaboration is for two partners to work on shopper scan data! Today, many companies are investing in DSR solutions; some for the purposes of sales and category management (to grow revenue), others to improve supply chain efficiency and effectiveness (to reduce costs).
The manufacturer has expertise in the category and with their consumers, while the retailer knows what, where and when the shopper buys. The collaborative partnership starts with a level of trust in which the retailer says to the manufacturer: "I will provide sales and inventory data in my stores for free if you invest in analyzing the data, making recommendations and providing insights to improve our collective business and reduce our mutual costs.
"The trust continuum slides "up and down" based on the intended and unintended consequences of our actions. For example, those retailers that sell scan data hope to enhance their business by reinvesting these funds in their proprietary systems, thereby reducing technology costs. The unintended consequence may be that the manufacturer would invest less in mining this data and would find less revenue enhancing solutions or cost savings, and those benefits may dwarf the revenue generated from selling the data.
The DSR is a solution that allows partners to collaborate on improving the service and products to our mutual shoppers and consumers. It is the next generation in actionable, insight generation. Partners with visions of RFID do not realize that if they cannot efficiently and effectively manage DSR insights, then they will never manage RFID insights. The DSR solution also is much broader than just technology and insights. It has everything to do with people, processes and results. With positive results comes greater trust; with greater trust comes a more mutually beneficial investment -- this at a time when investments are scrutinized and people are weary of investments in unknown innovation.
We must be bold and trusting . . . if we are to grow.
First job:
I worked on an automobile production line, rust-proofing vehicles in Germany as a summer job
I worked on an automobile production line, rust-proofing vehicles in Germany as a summer job
Who inspires you?
Individuals with the intellect and peace that provides them with a calm confidence in knowing who they are and where they belong in the world.
How do you reward yourself?
Playing tennis
Favorite Movies:
Gladiator, The Usual Suspects, It's a Wonderful Life
Favorite Musicians:
Depeche Mode, David Bowie, Eurythmics, Clash, Queen, U2, British 80's music!
Depeche Mode, David Bowie, Eurythmics, Clash, Queen, U2, British 80's music!
Favorite Vacation Spot:
A beach...
Proudest Moment:
Being there when my sons, Alex and Marcus, are recognized for their accomplishments.
Biggest Challenge:
Balancing work and personal life; or winning when playing Halo or Call of Duty with my youngest son Marcus (I am not even close!)
Favorite Quote:
"You either get busy living or get busy dying." -- The Shawshank Redemption