Armacell August 2019

Sustainable supply chain innovation

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Creating value and sustainability through technology in the Armacell supply chain WRITTEN BY

HARRY MENEAR PRODUCED BY

DENITRA PRICE

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ARMACELL

Amber Jesic, General Manager, Supply Chain,Americas at Armacell discusses using technology to pursue best sustainable practice in the company’s supply chain

T

he global perception of the supply chain has undergone a revolution over the past decade. What was once a series of

independent nodes in a scattered network of buyers and suppliers conducting transactional 04

deals has transformed into something far more delicate, complex and effective. “Organizations are becoming more sophisticated in the supply chain space. As they become better at supply chain and inventory management, they’re becoming more aware of the opportunities associated with the supply chain becoming more interdependent and approached from an end-to-end perspective,” says Amber Jesic, General Manager, Supply Chain, Americas at Armacell. “The increasing availability of real-time reporting and visibility, as well as increasing customer expectations, has certainly caused supply chains to evolve in recent years.” As the global supply chain industry changes, this newfound maturity opens up avenues for companies to fulfil ambitions and live up to core values in new ways.

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Production lines in Mebane, NC

Armacell manufactures structural PET panels in Brampton, Ontario, Canada.

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ARMACELL

As a global leader in the insulation market, Armacell’s products are vital to making projects in the construction and manufacturing space more energyefficient, and therefore sustainable.

For Jesic, her role at Armacell was the perfect fit. “Sustainability is not only personally important to me, but it’s also the basis of how Armacell operates,” she says. “The company has a culture of global collaboration and innovation that was appealing and they’re also open to change. I saw the role as a chance to make contributions 06

to the organization, and an opportunity

“ Sustainability is not only personally important to me, but also the basis of how Armacell operates” — Amber Jesic, General Manager, Supply Chain, Americas, Armacell

Elastomeric foam sheets and rolls are stored before shipping out of Armacell’s component foam plant in Conover, NC

CLICK TO WATCH : ‘MAKING A DIFFERENCE AROUND THE WORLD’ 07 to leverage our holistic network and

officially incorporated in 2000, its

supply chain to drive competitive

origins can be traced back to the

advantage and drive efficiencies.

1860s and Armstrong World Industries.

A lot of our products drive sustainability.

In 1954, Armstrong was responsible

Our ArmaFlex closed cell foam

for the invention of ArmaFlex, the

insulation saves 140 times more

world’s first flexible insulation product,

energy over the course of its life than

carving out its own industry niche

needed to manufacture and transport

that it has dominated ever since.

it.” We spoke to Jesic about the ways

In addition to making flexible products,

in which Armacell is harnessing

Armacell is committed to ensuring that,

cutting-edge technology in order to

as a company, it stands by its principles

drive supply chain innovation, not

of sustainability. “As a multi-materials

only to create value, but make the

and multi-product company, we apply

company more sustainable.

world-class practices every day

Although Armacell itself was

and expand into adjacent technical c o rpo ra te .a rma c ell. com

ARMACELL

“ Technology provides an opportunity to simultaneously reduce costs and improve service” — Amber Jesic, General Manager, Supply Chain, Americas, Armacell 08

insulation end markets, continuously

sustainable technology and strategies

extending our temperature range

across Armacell’s supply chain, from

and equipment verticals,” Jesic says.

converting the company’s shipping

“We substitute the legacy materials

lines to an intermodal approach and

of our competition with our innovative

reducing miles travelled, to recycling

solutions and reinforce our premium

over one billion plastic bottles into

brand position to create value for

polyethylene terephthalate (PET)

equipment owners, specifier engineers,

products. “Beyond the benefits we

contractors and investors.”

seek to realize through technology,

Jesic’s role provides a broad mandate

we also are committed to best practices

and list of responsibilities, as she

that impact the environment. To reduce

oversees purchasing, planning, distribu-

waste, we have cases where we also

tion, transportation and compliance.

donate our scrap to prevent it from

She and her team are working to deploy

going into landfills,” says Jesic. “It can

be used in the carpet industry as a padded base for installations, sometimes it’s used for the foam padding in children’s playgrounds – the breadth of application is mindboggling sometimes, given all the different areas you can use foam.”

The core of the company’s innovations and sustainability initiatives involve applying technology to create value in a sustainable way. “Technology provides an opportunity to simultaneously reduce costs and improve service. We’re driving automation wherever possible and easing the

E XE CU T I VE PRO FI LE

Amber Jesic, General Manager Amber Jesic is the General Manager of Supply Chain, Americas, at Armacell. Jesic’s innovative and analytical approaches have redefined and optimized the value of supply chains within select Fortune 500 companies.

A key strategist with an award-winning career in supply chain management, she has proven that with ingenuity, solutions to complex issues can be developed.

She is a thought leader, having led an autonomous truck program as featured in the New York Times.

Amber holds a Six Sigma Black Belt and an MBA from NYU Stern School of Business.

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ARMACELL

$686mn Approximate revenue

2000

Year founded

3,000

Approximate number of employees 10

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Armacell makes foam for gaskets for use in the aerospace industry. c o rpo ra te .a rma c ell. com

ARMACELL

Armacell makes foam for gaskets for use in the transportation industry.

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process of doing business with Armacell, predominantly through EDI integration, but also through our digitalization efforts regarding load planning and shipment consolidation to reduce miles travelled and condense shipments,” Jesic explains.

As a company that has never been afraid to carve its own way using the latest technological developments on offer, Jesic points out that Armacell is watching the development and testing of autonomous freight vehicles with great interest. “They can definitely drive sustainability benefits,” she says.

“ Beyond the benefits we seek to realize through technology, we also are committed to best practices that impact the environment” — Amber Jesic, General Manager, Supply Chain, Americas, Armacell

PA R T N E R FA C T S

Shintech The modern supply chain is becoming more collaborative and interconnected. As Jesic notes, “multifaceted partnerships are much more common. We work with our suppliers to develop mutually beneficial plans for the management, inventory management as well as delivery.” Founded in 1974, Shintech has grown to become a leader in its field in much the same way as Armacell. It is currently the largest producer of PVC in the US and has been partnered with Armacell for more than five years. “Their consistent service has been an asset to our business,” says Jesic.

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ARMACELL

“Autonomous trucks will let you better handle fuel usage, there’s less starting and stopping, you can have a bigger fuel tank without a driver, and of course an autonomous truck will be able to provide much more accurate track and trace capabilities.”

Gathering data from a fleet of autonomous trucks may be years away for Armacell, but Jesic stresses how vital data from other sources has become for the company today, and the importance of having the analytics 14

to draw actionable insights. “We’re in the design and development phase of using forecasting tools that will provide predictive analytics which will be used in our production planning and inventory management to better service our customers,” she explains.

As the leader in the $13.5bn equipment insulation market, Armacell is constantly striving to pursue its multi-pillar growth strategy. Its dedicated R&D teams are continually driving the company’s portfolio growth of intellectual property, having more than doubled the number of patents in the company’s name over the past five years. Looking to the future, Jesic is

excited to continue bringing Armacell’s open, innovative approach to the workings of its supply chain and management of her team. “I encourage a culture of openness to change and present things in a perspective that highlights the benefits of why that change is being introduced. So, in the instance of digitalization, if it improves the ease of doing business with Armacell, our suppliers and customers then I’ll emphasize those benefits to the teams so they understand why we’re pursuing these changes. Also, benefits like automated reporting help keep our focus on best, not budget,” she concludes. Armacell’s future is bright, as it continues to work towards creating not only value, but a bright future for the planet too.

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