Driving innovation for a sustainable business
02
Driving innovation for a sustainable business WRITTEN BY
GEORGIA WILSON PRODUCED BY
MANUEL NAVARRO
JANUARY 2020
03
w w w.we d el. com
LOTTE WEDEL
Poland’s oldest chocolatier shares its innovation journey, focused on ensuring a sustainable business model
S
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
05
w w w.we d el. com
LOTTE WEDEL
06
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
w w w.we d el. com
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
08
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
w w w.we d el. com
09
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
11
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
13
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
15
LOTTE WEDEL
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
17
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