LOTTE Wedel January 2020

Driving innovation for a sustainable business

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Driving innovation for a sustainable business WRITTEN BY

GEORGIA WILSON PRODUCED BY

MANUEL NAVARRO

JANUARY 2020

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LOTTE WEDEL

Poland’s oldest chocolatier shares its innovation journey, focused on ensuring a sustainable business model

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upply chain is a challenging role; complexity constantly grows to reflect business needs, products, developing technol-

ogy, optimisation and efficiency,” says Sławomir Kluszczyński, Chief Operating Officer (COO) at LOTTE Wedel. For a business that has a vast 04

amount of history and tradition, it is important to balance innovation with a legacy that has seen it win the hearts of chocolate lovers worldwide since 1851.

“Our industry is continuously changing,” notes Kluszczyński, “in particular our consumers are becoming increasingly aware of the impact of not having a sustainable business. The industry is not waiting, it is doing everything it can to support sustainability, and so is Wedel. It is a core part of our company values, a lot of our activities are focused on our impact on the environment,” he continues.

When it comes to those company values, Wedel underwent a cultural transformation this year: “We have recently undertaken a number of activities in this area: we have redefined the mission and vision of Wedel and we have redefined organisational values. We began to build employee awareness in

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LOTTE WEDEL

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this area, both at the level of the entire

business include, water and energy

organisation (culture research) and at

saving solutions, zero-waste activities

the individual level. The next steps are

and reduced plastic and paper usage.

to support employees with the tools

“We have a zero-waste policy, sensors

and systems that will help us to oper-

that limit the use of both water and

ate in accordance with the the new

electricity have been implemented

organisational culture. All of this is to

throughout the business. In addition, we

develop the competencies that will pro-

use mobile solutions and applications

vide Wedel with an innovative view, and

to reduce the need for paper printing,

quick solutions that will help achieve

as well as streamlining the amount

the goals set in our long-term strategy,”

of printing machines available,” says

Kluszczyński explains.

Kluszczyński. “When it comes to plas-

Current ways in which Wedel is

tic waste, we have eliminated it from

driving sustainability throughout its

our canteens, replacing plastics with

CLICK TO WATCH : ‘WEDEL CORPORATE VIDEO’ 07

“ We value our people at Wedel, our Wedel family’s dedication to ‘Kaizen’ is what drives our success” — Sławomir Kluszczyński Chief Operating Officer LOTTE Wedel

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LOTTE WEDEL

“ Wedel is very proud to partner with big international and local networks and suppliers” — Sławomir Kluszczyński Chief Operating Officer LOTTE Wedel

Wedel’s workers help in building educational farm

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biodegradable substitutes. Where we

developing its CSR strategy, which will

still need to use it, we reuse as much as

incorporate a long-term sustainability

possible in order to reduce our impact

plan. It is expected to be announced in

on the environment.”

early 2020.

However, it is not only company

Besides that, Wedel already under-

implementations that are driving

takes many social responsible activities.

Wedel’s sustainability focus. “We work

For example, the company cooperates

with suppliers and partners in logistics,

with NGO’s, partners and institutions:

that share our environmental goals

“We are very close with Praga-Południe,

as well as educate our employees on

where our factory has been located

environmental best practices, includ-

since 1930. As a result, we are involved

ing workshops detailing correct waste

in many local activities: we support

segregation,” explains Kluszczyński.

our neighbour, The Praga Museum of

Wedel is currently in the process of

Warsaw; we participate as a strategic

partner in Polish-German Gardens, which works to revitalise the park near our factory; and we are titular sponsor of ‘Wedel’s Run’, which has run for 15 years,” Kluszczyński says.

“We appreciate long-term cooperation. An example of this type of work and partner is Stowarzyszenie Serduszko dla Dzieci (Heart for Children Association), with which we’ve already done many interesting projects,” he continues. “For example,

Bee hives on the Wedel factory rooftop

the foundation’s proteges take care of hives located on Wedel’s factory

E XE CU T I VE PRO FI LE

Sławomir Kluszczynski Sławomir is a manufacturing and supply chain professional with 20+ years of experience and focused on continuous improvement, operational excellence and effective leadership. He graduated from the Warsaw University of Technology, Mechanics of Energetics and Aviation faculty. He has also obtained an MBA degree from the Warsaw University/ University of Antwerp. He has gained his professional experience in companies such as: Master Foods, L’Oreal, GlaxoSmithKline, Avon and Cadbury Wedel, getting wide manufacturing and supply chain expertise. Currently, Sławomir holds the position of Chief Operating Officer at LOTTE Wedel

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rooftop while learning the basics of

Wedel, this way of thinking is ingrained

entrepreneurship and sensitising to

in the mindset of our people. We call

environmental issues. We also support

this process ‘Kaizen’ – to change for the

the construction of a city farm in Wawer

better. Wedel is in the early stages of

(Warsaw’s district), which will be a

its industry 4.0 development strategy,”

friendly educational space enabling chil-

Kluszczyński continues. In the last cou-

dren and adults to enjoy the benefits of

ple of years the company has begun to

nature as part of gardening and farming

develop and implement innovative tech-

workshops. Our employees are involved

nology to transform its operations.

in gardening and construction works,

To compete with increasing quantity

including those related to the construc-

demands of its ‘Ptasie Mleczko®’ prod-

tion of the playground.”

ucts, Wedel has developed innovative

When it comes to having a sustainable

industrial-sized technology to allow a

business for long-term growth, “innova-

faster decorative process. In addition, it

tion is needed to bring increased value

utilises sophisticated machinery to per-

to changing customer demand and

fect its packaging process to remove

industry trends,” says Kluszczyński. “At

preservatives: “We have developed a w w w.we d el. com

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LOTTE WEDEL

“Innovation is needed to bring increased value to changing customer demand and industry trends” — Sławomir Kluszczyński Chief Operating Officer LOTTE Wedel 12

tray with a unique foil that prolongs the freshness of the product inside,” says Kluszczyński. The company has also been utilising iTRAK, the Intelligent Track System by Rockwell – the most innovative motion solution on the market today – to standardise its product cartoning process by implementing magnetic drives.

When it comes to digital transformation of its systems, Wedel is working on a scheduling tool to strengthen the company’s production line. “We are currently in the last development stage to digitally transform our scheduling system used for inventory management. With this new technology – which we have begun to use some aspects of – we will be able to optimise our processes to reduce cost and achieve a more efficient production line. To develop this system we have been utilising IBM’s sophisticated algorithms,” Kluszczyński notes.

For Wedel, Artificial Intelligence (AI) and machine learning, is still conceptual, with discussions for using automation in its packaging processes underway.

However, Wedel has begun gathering data to build the foundations for rolling w w w.we d el. com

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LOTTE WEDEL

out these innovative technologies. In addition, it is utilising 3D printing for its products. “We currently use the technology for sample products and the manufacturing of spare parts for some equipment,” highlights Kluszczyński.

We use advanced technologies during consumer research in order to get to know our present and future clients’ needs in the best way. By analysing the micro-expressions of the face, or the brain’s areas of activity, we are able to understand the types of emotions and 14

reactions that our products awaken.

Knowledge acquired in this way has been used to redesign of Ptasie Mleczko® packages, for example,” explains Kluszczyński.

Other key areas the company is focused on include factory expansions and exporting products. Currently, export makes up 10% of the company’s turnover and Wedel’s products can be found in over 60 countries. The company also looks to other directions, for example, Russia. “We are spending a lot of resources and efforts to achieve our investments,” says Kluszczyński. “Our factory expansions have included new products,

1851

Year founded

HQ

Warszawa, Poland

hybrid warehousing, IT systems and production machinery; this expansion is scheduled to be complete in 2021.

In addition, we are continuing to work on exporting to Russia. Today the economic climate is much better now, both in terms of currency rate, custom duties and increased acceptance of foreign products.�

When it comes to partners, Wedel’s key long-term partnership is with its owner LOTTE. For both LOTTE and Wedel this partnership is mutually beneficial in that it provides further market access and helps to develop innovative products and business operations. At the same time, cooperation between Wedel and LOTTE is based on w w w.we d el. com

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partnership. Wedel is autonomous and is locally managed: “The reason for this is that LOTTE trusts us and knows that we have the best knowledge of the Polish confectionery market and the most experience in running a legendary chocolate company. People create Wedel. This is why they continue to have the greatest impact on our organisation, our products, our communication and our relationship with the environment. The company’s long-term strategy is being 16

developed and enforced in Poland,” explains Kluszczyński.

He also emphasises that “Wedel is very proud to partner with big international and local networks and suppliers.

We collaborate with pride, achieving sophisticated solutions and tailor-made offers for customised products. In return we are present in a wide network and benefits from long-term sustainable business partners.”

Reflecting on the company’s transformation to date, Kluszczyński believes Wedel’s biggest success is its ability to maintain its heritage products while continuing to innovate and transform in order to keep up with changing

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industry trends. This is reflected in the

quality and the best taste. At this point,

company’s mission: “We are constantly

I would like to mention our other value:

changing to make us and our clients

‘I provide quality’. However, Wedel

happy’. Kluszczyński attributes the

wants to continue to strive towards a

company’s overall ability to achieve

more sophisticated factory that has

this to its people, explaining that “we

the capacity to harness innovative

value our people at Wedel. Our Wedel

technology. As a result we will have

family’s dedication to ‘Kaizen’ is what

the ability to keep up with customer

drives our success. Also, continuous

demand and changing trends, to fur-

improvement is inscribed in one of our

ther drive a sustainable business both

organisational values ​​- I question the

environmentally and operationally,”

status quo.”

concludes Kluszczyński.

“Ultimately, at Wedel, we always want to have our heritage of guaranteed w w w.we d el. com

LOTTE Wedel Zamoyskiego 28/30 03-801 Warszawa Poland T +22 670 77 00 www.wedel.com