Bjorn Kirchner, Global Head of Supply Chain at Henkel, introduces the company, a global leader with a rich history of 147 years, focusing on their two main businesses: consumer goods and adhesive technologies. The goal of this session is to provide insights into Henkel’s customer experience challenges and their transformational journey in supply chain operations.

The Complexity of Henkel’s Supply Chain

Henkel operates a vast and complex supply chain with 14,000 employees and 300,000 active materials, processing 1 billion order lines per month. This enormous scale, combined with high operational costs, presents both challenges and opportunities for improving customer experience.

Supply Chain's Perception Problem

The pandemic highlighted the need for a cohesive customer experience. Despite being integral to delivering products, Henkel’s supply chain was often seen as a behind-the-scenes function. The challenge was shifting this perception to create a more customer-centric approach.

Reimagining the Customer Experience

Henkel aimed to transform its supply chain by putting the customer at the heart of its operations. The company embraced the idea of supply chain as a competitive advantage, focusing on visibility, reliability, and speed—tailored to different customer needs across industries. Through customer interviews, Henkel identified four core customer needs: innovation, quality, visibility, and reliability. This led to a mission to create an integrated, customer-centric supply chain with a strong digital backbone. They invested in service clouds, performance systems, and track-and-trace technology.

Cultural Transformation and Measurement

Achieving this customer-centric model required not just new systems but also a cultural shift. Henkel reorganised teams, redefined customer service roles, and implemented new KPIs to ensure they met customer expectations. The company also integrated advanced tools like Salesforce for efficient workforce management.

Five Key Takeaways for Supply Chain Leaders

• Align with Company Strategy: Top-level support is essential for success.
• Talk to Your Customers: Direct communication with customers removes filters and enhances understanding.
• Mix Stakeholder Interests: Different stakeholders require different focuses; balancing efficiency and innovation is key.
• Start Small with Proofs of Concept: Rapid prototyping builds confidence and convinces others.
• Go Slow to Go Fast: Careful, considered progress ensures sustainability in large organisations.