Glanbia - Company Profile

REACHING FOR A STRONGER SUPPLY CHAIN IN PARTNERSHIP WITH:

REACHING FOR A STRONGER SUPPLY CHAIN Glanbia explores management systems for a better supply chain in the digital age Written by: Sasha Orman

Produced by: Jason Wright

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C O M PA N Y N A M E

W

ith decades of growth and a global reach across more than a hundred countries, Glanbia PLC is a major force in the food industry, branching into several sectors from dairy to nutritional supplements.

It is also a company at the top of its game, ranked as one of the leading producers of cheese, whey powders at various levels of protein concentration and sports nutrition products in the United States.

But even a leading business 4

cannot grow complacent: continuous improvement is vital, and Glanbia is on a journey to make its supply chain leaner and more efficient every day.

Building a stronger supply chain in the cloud As a way to streamline its supply chain operations and build in efficiencies, Glanbia is in the process of integrating an upgraded transportation management system (TMS) through 3PL and technology

SECTOR

Glanbia cheese and whey plants in Idaho and New Mexico take in over 20 million pounds of milk every day from farmer patrons, adding up to over 350 trucks of milk per day

companies. Already successfully partially integrated at Glanbia’s operations, the company is now working to implement the program across its divisions nationwide.

As a cloud-based system, TMS can be accessed anywhere in the world through smartphones and tablets, allowing trucks to be routed and pickups to be requested from anywhere with an internet or LTE connection. Supplying analytics and KPIs, the program also doubles as a business intelligence suite to help

Glanbia optimize its processes and create new efficiencies.

The TMS system will support the company’s SAP-designed CRM and ERP systems to provide a more holistic form of top shelf customer service, from materials suppliers to the end customer. “TMS eliminates the need to install and maintain many different facets of transportation systems,” said Andy Weisel, Executive, Procurement Center of Excellence. “It puts all the information in one source.” w w w. g l a n b i a . c o m

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Nutrition

Consumer Care

Ingredients You Can Trust

Lonza offers evidence-based health ingredients to the food, dietary supplement and pharmaceutical markets. Products carrying the following quality seals on the packaging show the end-consumer that they contain high quality ingredients from Lonza Ltd, Switzerland.

Lonza’s nutritional quality seals signify: – Evidence-based ingredients you and your customers can trust – Regulatory and scientific support – Reliable service

Lonza Inc. Allendale, NJ, USA Tel +1 800 365 8324 contact.allendale@lonza.com

www.lonzanutrition.com

All product information corresponds to Lonza’s knowledge on the subject at the date of publication, but Lonza makes no warranty as to its accuracy or completeness and Lonza assumes no obligation to update it. Product information is intended for use by recipients experienced and knowledgeable in the field, who are capable of and responsible for independently determining the suitability of ingredients for intended uses and to ensure their compliance with applicable law. All trademarks belong to Lonza or its affiliates. © 2016 Lonza

GLANBIA

S U P P LY C H A I N

Glanbia also continues to upgrade other technologies and processes, applying better SAP implementation across all business units, including business intelligence tools, spend & processes analysis, and waste removal.

Glanbia uses eProcurement tools for RFIs, RFPs and eAuctions along with integrated contract databases that alert us to expiring supplier agreements. Meanwhile, the Glanbia Performance System utilizes a lean/six sigma operational excellence-based quality and performance management system, which guides the business on a journey to zero losses in the future.

Andy Weisel, Executive Procurement Center of Excellence

Searching for further efficiencies With its transportation management system

SUPPLIER PROFILE

LONZA INC.

Lonza is one of the world’s leading and most-trusted suppliers to the pharmaceutical, biotech and specialty ingredients markets. Founded in 1897 in the Swiss Alps, Lonza is a well-respected global company headquartered in Basel, Switzerland with more than 40 major manufacturing and R&D facilities.

Lonza is a leading manufacturer of L-Carnitine sold under the brand name Carnipure®.

L-Carnitine plays an important role in energy metabolism and is essential for transporting long-chain fatty acids across the mitochondrial membrane for subsequent fat breakdown and energy generation. ResistAid® is a proprietary natural immune support ingredient consisting of the soluble polysaccharide arabinogalactan and bioactive polyphenolic flavonoids, and thus has antioxidant capacity. Lonza supplies Vitamin B3 ingredients, Niacin and Niacinamide, essential vitamins that must be taken through diet or supplementation.

Lonza’s food emulsifiers are uniquely positioned to provide a broad portfolio of innovative technologies and improved ingredients for the food industry.

Website: www.lonzanutrition.com w w w. g l a n b i a . c o m

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Glanbia’s success as a global ingredients provider is built on its expertise in nutritional solutions supported by significant investment in research and development

GLANBIA underway, Glanbia is now turning its sights to streamlining and optimizing other facets of its supply chain. “We are in the late stages of tender for our proposed supplier information management system (SIM),” said Weisel, explaining the need for Glanbia to develop a more direct portal for interface between suppliers and the company’s procurement and crossfunctional teams. “We would like to further the supplier performance measurement vision of SIM by bringing together in dedicated supplier dashboards all the pertinent KPIs for that supplier. This will support our SRM efforts for our operations and for customers looking for the whole gamut of information,” he said.

From specifications and forecasts to invoice submission and order management, additional technology can optimize vital processes by allowing companies and their suppliers to have further insight into available stock and transport and the timing of orders and delivery.

A more centralized and automated system can increase transparency internally and with suppliers, thus cutting down on mistakes and lost time related to material orders.

S U P P LY C H A I N

Glanbia looks forward to the integration of this technology as a next step along its road to supply chain optimization.

“It’s more efficient, and it’s also a way of getting the right data in the right place at the right time,” said Weisel. That efficiency translates to savings for Glanbia, suppliers and end customers. The transparency afforded by such an implementation will also strengthen communication and synergy between Glanbia and its suppliers through analytics and performance metrics.

“The metrics keep suppliers up to date on how they’re performing against the average of all our suppliers,” said Weisel. “It allows us to segment our suppliers, and it’s also a communication portal between the supplier and Glanbia. There are no secrets—they’ll know exactly where they stand. I think it will raise expectations for the suppliers and make them better, as well as making us more efficient on invoices.”

A company coming together As Glanbia continues to grow, it is also consolidating. In a bid to further its pursuit of efficiency, the w w w. g l a n b i a . c o m

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GLANBIA

Glanbia manufacturers 900 million pounds of American style cheese and 170 million pounds of whey a year, to meet customer demands from around the world

company is integrating three B2B ingredients business units into one global ingredients organization, which will have a single customer interface and standardized systems and processes Along with this shift comes a reshaping of the organization structure for maximum effectiveness.

This will see a regional sales structure and a new product category management function supported by strong centers of excellence including procurement operations.

“As well as providing day-to10

day support to our plants on the operations side, the new procurement structure will have a dedicated team that focuses on longer term solutions across product categories,” said Weisel.

“We’ve done this with our vitamins and amino acids categories already, along with our transportation and packaging side, and we plan to roll it out to all indirect and direct spend.

Developing sound cross-functional strategic sourcing teams will lead the business to future growth opportunities.”

S U P P LY C H A I N

Improving on an executive level As another means to improving business practices, Glanbia is active with the Corporate Executive Board (CEB) organization in order to develop the leadership tools needed to grow leaner and keep improving.

“We are delighted with our membership of the CEB. They provide great training resources thst we have utilized this year across Glanbia,” said Weisel. As the category managers participate in different training courses, they apply what they’ve learned at a practical level for the benefit of the company.

“Our headquarters-led initiative used a “Voice of the Supplier” survey with our top 30 SAP vendors to really understand how they viewed Glanbia, which helped shape our vendor engagement and improvement plans. They also provided training and access to global best practices to apply to our businesses,” Weisel said.

“We’re looking at internal relationship management, and how procurement internally sells the value and benefit we can add to the business.

Through our supplier relationship management, we continue to build strong relationships with suppliers, which leads to strategic category management and more innovation opportunities,” said Weisel. “These are just some of the areas we’re focusing on with the CEB to help Glanbia fulfill its ambition to be a global nutrition company and set truly world class practice.”

Company Information INDUSTRY

Nutrition HEADQUARTERS

Glanbia plc Kilkenny, Ireland FOUNDED

1964 EMPLOYEES

5800 REVENUE

3.5bn

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LOGO 2840 Loker Avenue East Carlsbad, CA, USA, 92010 Tel. +1 800 735 8137 Fax +1 760 438 0336 www.glanbia.com