Integrating People and Technology to Build a Resilient Supply Chain

Rick McDonald is an accomplished supply chain executive with extensive expertise in global operations within the consumer packaged goods sector. As the former chief supply chain officer for The Clorox Company, he effectively managed procurement, planning, manufacturing, logistics, engineering and quality assurance. Rick also serves as a board advisor for the National Association of Manufacturers, addressing supply chain integrity and resilience challenges. He is recognized as a subject matter expert in supply chain management and leadership, frequently contributing insights on industry podcasts and forums.

A Journey from Manufacturing to Management

Eric has over 40 years of experience in the supply chain industry. He began his career with 10 years at Frito-Lay, working exclusively in manufacturing. This early experience laid the foundation for his expertise in supply chain operations.

For the last 32 years, Eric has been with Clorox, where he has seen the company grow significantly. When he first joined, the company had $1.7 billion in sales, and today, Clorox reports $7.4 billion in sales, reflecting substantial growth during his tenure.

Throughout his time at Clorox, Eric has worked in various areas of the supply chain, including logistics, manufacturing, planning, and procurement. His assignments have taken him around the globe, giving him diverse experience in global operations and supply chain management across different regions and markets.

Economic and Logistical Challenges in Supply Chains

One of the major challenges facing supply chain leaders today is the increasing disruption across various parts of the global supply chain. Logistical disruptions like conflicts in the Middle East and piracy in certain areas are affecting transportation and supply routes. Economic and regulatory challenges in other parts of the world are also contributing to the difficulties supply chain leaders are facing. These global disruptions are some of the most significant challenges in the industry today.

Disruption has also manifested itself in the form of labor and talent shortages, making it difficult for companies to maintain smooth operations.

Many organizations are also striving to digitally transform their processes to become faster, more efficient and focused on consumer needs, which adds another layer of complexity to managing the supply chain.

The Leadership Mindset and Strategies Driving Clorox's Digital Shift

The Clorox Company started a digital transformation journey seven years ago, after recognizing the need to leverage digital assets to address challenges within supply chain and broader organization. 

It began by taking inventory of these challenges and creating a digital roadmap to implement key digital tools. The primary goal was to drive both top-line growth and improve bottom-line margins.

The transformation though, was not solely about the technology and required a leadership mindset that identifies the problems to be solved and fosters digital fluency within the organization. The company also emphasized Upskilling and reskilling employees to use these tools effectively. Ensuring that the workforce has the right skills to leverage the new tools has been a critical component of our approach.

Change management is another essential element of the process. The Clorox Company discovered that digital transformation initiatives are primarily large-scale change management projects with technology as a supporting tool. Managing the organizational change needed for these initiatives has proven to be a key factor in its success.

Practical Approach to Technology Adoption

When evaluating and integrating emerging technologies at Clorox, the primary focus is on the specific problems it aims to solve. It is crucial to work closely with technology vendors, encouraging them to understand the company’s unique challenges and how their solutions can address those needs. This collaboration ensures that it remains grounded in practical applications rather than getting caught up in the allure of technology.

"Technology alone cannot replace the energy, passion and commitment of smart individuals. The true competitive edge in this technologically advanced world lies in having engaged, focused and passionate people driving the purpose of the enterprise."

It also strives to identify solutions that can either drive top-line growth or improve bottom-line margins. One of the key challenges in digital transformations is maintaining alignment with business goals. The company can effectively navigate the complexities of implementing new solutions within existing infrastructure, by staying focused on the objectives and seeking technologies that solve real problem.

Key Trends Shaping the Supply Chain Landscape

In the next five to ten years, several trends pose to shape the supply chain industry. A significant trend is the growing shortage of supply chain talent. The National Association of Manufacturers reports that only seven candidates are available for every ten open manufacturing jobs in North America. This talent gap necessitates organizations to accelerate their digital transformation efforts and utilize digital assets to compensate for labor shortages.

There will also be a significant growth in manufacturing investment, e-commerce and the reshoring of production to the Americas. This shift will increase the demand for warehousing space and technology. While preparing for these changes, it is crucial to prioritize the existing workforce through upskilling and reskilling initiatives while also leveraging digital solutions to fill talent gaps.

Lastly, building resilience across the supply chain will remain a key focus, especially after the lessons learned from the COVID-19 pandemic. Strengthening capabilities within the supply chains and among suppliers and customers will be essential for navigating future challenges effectively.

Advice to Peers

The suggestion to fellow chief supply chain officers and aspiring professionals would be to emphasize the three most important assets within any organization ꟷ people, brands and data. The key to future success is through focusing on people-centricity.

No amount of technology can replace the value of smart individuals who work with energy, passion and commitment to the organization's purpose. Regardless of advancements in technology, one should always prioritize engaged, intelligent and dedicated employees. These employees will ultimately remain the competitive differentiator that drives each organization toward success.