Catching Up With Joe Wisdo, Former Senior Director, Customer e-Business and Knowledge Management at Pfizer Consumer Healthcare

This month, CGT Executive Editor Kara Romanow sits down with Joe Wisdo, former senior director, customer e-Business and knowledge management at Pfizer Consumer Healthcare, and a former director of IT within Johnson and Johnson's Consumer IT group. Wisdo talks about the challenges that companies face in adopting e-commerce strategies; poses some questions that should be answered before implementing new technology; and shares insights on data synchronization.

What keeps you up at night?
Wisdo: The on-going drive to reduce costs and improve trade effectiveness is my main worry stone. On one hand, suppliers are living with tight budgets while retailers insist on better services at better prices. The service expectations normally require additional costs and sometimes the ROI is not easily quantifiable. Also, since all suppliers and retailers do not have the same methods for reducing costs and improving services, individualized requirements have become the "norm." This typically leads to added costs over a period of time. When compared to other business priorities, it is sometimes dropped from the project list. Several examples of this are RFID, data synchronization and even CPFR. While CPFR is now a very common service requirement, it still comes at a high price to suppliers. The good news with CPFR is almost all suppliers and retailers have recognizable value in their relationships.

How do manufacturers and retailers better collaborate?
Wisdo: They need to begin their relationship with common goals and objectives and with a mutual value equation. If the value is one-sided it will be a short-lived collaboration, but when there is equal value or substantial value for both, it will be long-lived. Setting and reporting on common objectives are always key ingredients to a successful collaboration, it builds trust and opens doors to new opportunities. Another key to success, is having face-to-face meetings early on in the process and then reducing the frequency as time passes and results are consistent. 

What are some of the challenges associated with e-business today?
Wisdo: Unfortunately, for most suppliers, e-business begins with a demand from a retailer partner, not a planned company strategy. This causes cost pressures and resource issues that the supplier was not expecting, and in most cases, would not even consider if it were not from fear of lost business.

Let's consider a small to mid-size supplier whose supply chain business model was consistent for years. It probably initiated several cost reduction programs and has a very effective supply model in place. Now, along comes a retailer demand, like RFID, that requires specialized technologies, logistic processes and people. Next, it is required to do data synchronization, which requires specialized technologies, logistic practices and people. Then comes sustainability. It may not require special technologies, but it does require special logistic practices and specialized people. How do these companies fulfill these needs while keeping their costs in tact? The only advantage to large suppliers living in this demanding market place is that they typically have resources that can be reassigned to address these demands.

Consider new technology issues: Will it work? At what cost? How long to implement? What's the impact to my current infrastructure? How does it integrate with other applications? How do I use the information? Can I combine it with other data to drive value? Do I buy expertise or develop it in house?
 
Once you develop your strategy around technology, you then must look at the disruption this new process will have across your supply chain. How does this impact my warehouse? Or, how do I get the third-party warehouse to do what needs to get done, and at what cost? What process steps will be impacted? How will I sustain the process? How does this change my production plans or my ability to pass on the right information across the chain? Lastly, and another key for success, how do I retain this expertise and keep my costs in line with my current staffing? 

I believe if you are going to be successful in e-business, then you must address each opportunity as such - and they are opportunities! Overcome the barriers with a solid strategy and then measure the results.