Mondelez – Brochure 2020

Procurement at Mondelez: Fearless Business Leaders and Trusted Partners who bring The Outside in to Win

P R O J E C T PA R T N E R S

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Procurement at Mondelez: Fearless Business Leaders and Trusted Partners who bring The Outside in to Win Alexandre Turolla, VP Procurement Global Raw Materials at Mondelēz International, explores how procurement at Mondelez can drive real change for the business and the world around us...

WRI T T EN BY PRODUCED BY

D al e Bent on Hey kel Ouni

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W

hen we talk about the evolu-

the business and becoming an enabler

tion or transformation of

to what the business wants to do. This

procurement, we often

has really opened up a large avenue for

speak in broad terms. “Procurement has

procurement that was never there before.”

‘moved from a back-office function’, or it has obtained a ‘seat at the table’, and

Procurement and Mondelēz

while these sentiments are, in fact, true,

So, what does procurement mean to

they often diminish the real change in

Mondelēz? As the global conversation

procurement,” says Alexandre Turolla –

continues to be defined by stories of

VP Procurement Global Raw Materials at

companies recognizing (at last) that the

Mondelēz International.

function can and should be a key strate-

“The real change in procurement is

gic driver of growth, on what side of that

about how we can do that together with

conversation does Mondelēz find itself?

9

M O N D E L E Z I N T E R N AT I O N A L

“Mondelēz procurement has always been highly valued. Since my very first day, I have experienced a company which

and looking for the next stage of evolution.”

Mondelēz was created as a spin-off

really understands the value of the func-

from Kraft Foods in 2012, with a clear

tion and brings it along with a high degree

vision to be a ‘growth engine’. The first

of appreciation. The function’s relevance

years of the journey were focused on

to the business comes from its ability to

getting the organization fit to win. Every

connect and steer both the supply land-

process and spend was streamlined

scape and Mondelēz business as part of

and benchmarked against the best in

a two-way value creation. It keeps evolv-

the market. 100% of the company spend

ing, and this is the exciting part of being at

was managed through a process called

Mondelēz Procurement,” says Turolla.

“ZBB – Zero-Base Budget”. Robust

“We are always positively dissatisfied

category management processes and 10

Driving Change, Delivering Advantage Will Rook, Director of Refined Sugar, Ingredients and VIVE at Czarnikow, talks about how to drive change and deliver advantage across supply chains. Czarnikow has a legacy spanning over 150 years in the food ingredients industry, bringing strong relationships and a wealth of experience to its modern supply chain service offering.

CLI CK TO LE A R N M O R E

www.czarnikow.com www.viveprogramme.com

What is the most important element in optimising supply chains?

The reality is that there is no single solution.

As a supply chain encompasses many stages, processes and people, it’s important that a range of solutions can work together to optimise it. But in order to do this effectively, it is important to have a team of people who are willing to invest time understanding a client’s business, and then working creatively to implement a bespoke plan to really drive change; recreating the status quo is never an option for us.

Czarnikow recently expanded its product portfolio – what was the rationale for this?

While best known for sugar, Czarnikow has expanded its product offering to include other food ingredients, packaging and renewable energy. It was actually our clients who asked us to do this – the expansion gives us the ability to implement our service offering across a portfolio of over 50 products, allowing clients to build a richer relationship through a single service provider.

“ Sustainability is absolutely critical for all businesses to thrive and is increasingly present on the global agenda” What role does digitisation play in ensuring supply chain efficiencies?

Digitisation is vital for any organisation’s ability to communicate directly with clients and partners, and to facilitate trade in an efficient manner. At Czarnikow, we have built our own proprietary operations software which allows us to seamlessly integrate with client systems

where needed. We also launched Czapp, a mobile app that enables users to share the company’s unique market view and generate the latest prices, explore our product offering and track current trades.

What role does sustainability play in successful supply chains?

Sustainability is absolutely critical for all businesses to thrive and is increasingly present on the global agenda. Through the VIVE Sustainability Programme, Czarnikow is able to facilitate fully sustainable supply chains, through our continuous improvement and commercially-driven programme.

With global supply chains comes increased complexity – how do you manage working across so many countries and cultures?

We certainly think that local knowledge is crucial. Czarnikow has ten global offices and a local presence in a further six countries, and we have ambitious plans to increase our presence in a number of other important markets – all to give us a vital on-the-ground presence to support our clients. The ability to manage this is strengthened by what we have previously discussed: a diverse service, digitisation, strong client relationships and sustainable development.

structure were implemented to achieve an impressive 650 BPS margin improvement and 60+ days improvement on Cash Conversion Cycle. “We are finally ready to grow and win. We needed the fuel to climb the summit,” beams Turolla.

In 2018, Mondelēz launched the current “Snacking Made Right” strategy, based on three key foundations: growth, execution and culture. For Turolla, it was important to recognize that Procurement not only played a fundamental role during the margin expansion phase but continues to play an equally important role in growth and “is deeply embedded into the three pillars of our Snacking Made Right strategy,” he says.

Turolla highlights that the procurement function is guided by its mission statement

ordinary,” explains Turolla. “We try to make

(launched in 2017) of becoming “Fearless

a connection with business performance

Business Leaders and Trusted Partners

and the personal growth of our people.

who Bring the Outside in to Win.” As a

The idea is to ask ourselves: How to have

procurement man at heart, having forged

fun in going beyond our comfort zone?

his career in various procurement and

What is in it for the people? By stretching

supply chain disciplines, Turolla knows

our limits, one can become better, learn

well the value of the function and insists

new skills and push to go beyond. “We

that communicating this in a broader busi-

have only one career. Do you know what

ness language is an ever-evolving chal-

to do with yours? We do,” adds Turolla.

lenge for any CPO. So, what does it mean to be “Fearless” in Procurement at Mondelēz?

“Simply put, it’s about going beyond the 13

M O N D E L E Z I N T E R N AT I O N A L

Fearlessness comes from moving away from the traditional incremental approach to change. Turolla leads by example and is always looking for the next “Thinking

Big” idea or opportunity and invites the

wins in the end, these are the best games

team to join. The secret is to invest in the

and the ones we learn the most because

change management required to excite

you pushed and pushed hard.”

the team to enable them to focus on the possibilities ahead. “We don’t just jump on target-setting, we invest precious time on

Establishing and maintaining a position of true “Business Leaders”

creating a joint ambition at the start,” says

Procurement is transitioning from func-

Turolla. “What do I and others gain from

tion excellence to become a true busi-

that? Increased capabilities. We get to

ness partner. Cementing this position is an

work with exciting people that challenge

ever-pressing challenge and Turolla is no

and support each other, ever expanding

stranger to this.

the boundaries. “It’s like sport, when the

The business landscape and consum-

game finishes on a tight six to five and

ers exigences continue to evolve. Turolla

you sweat like crazy, regardless of who

believes that what once was competitive 14

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will no longer be affordable in the future.

procurement always starts with the busi-

At the same time, speed and agility have

ness and not with the function itself,” he

fast become the essence of success. No

says. “I normally use the analogy of a

company will be able to address or afford

bridge. Imagine that we have a bridge

to develop and maintain a consumer

between suppliers and the business. We

winning proposition on its own. “Forget

need to cross that bridge and hold the

about reinventing the wheel. You need

business’s hands. We then invite them to

to be with the best suppliers and hold

cross the bridge back together. It’s about

hands with the people who will keep the

being genuinely interested in the stake-

momentum going,” says Turolla.

holder’s agenda, opportunities, dilemmas

On paper, this may seem easy but Turolla is keen to stress the importance

and pain points.”

These conversations and the actions to

of investing in fostering and maintain-

create “that bridge” speak to the “Trusted

ing effective connections with the busi-

Partners” component of the mission

ness leaders and suppliers alike. “Good

statement. Trust and credibility are often

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M O N D E L E Z I N T E R N AT I O N A L

recognized as the most significant compo-

getting to know people we deal with.

nents of a successful leader. Mondelēz

Then we can be more flexible and more

certainly recognizes it and uses its own

forgiving of the not so good moments

approach to nurture and improve trust.

and inspired by the good ones.”

Turolla notes that all these good

The “Trust Equation”:

intentions and investments can easily

“Our Credibility has been built over

fall down the drain if perceived as

the years by being able to deliver and

driven by the wrong motivation; “We

to thrive when we are needed,” says

need to be clear and loyal to what

Turolla. “Reliability is about putting your-

makes us thrive and what our purpose

self in the shoes of others. Do what you

is and keep it front and center as our

said you would be doing; always think-

motivation.”

ing about how to enhance the work and potential of others.”

“When it comes to Intimacy, it’s about

Bringing the best of the “Outside In”: Procurement is an open door to the

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“ The function’s relevance to the business comes from its ability to connect and steer both the supply landscape and Mondelēz business as part of a two-way value creation. It keeps evolving, and this is the exciting part of being at Mondelēz Procurement” — ALEXANDRE TUROLLA, V P P R O C U R E M E N T G L O B A L R AW M AT E R I A L S AT M O N D E L Ē Z I N T E R N AT I O N A L

outside world. Turolla and his team

Mondelēz chooses who and how to invest

strongly believe in the power of co-cre-

its resources. “We invest heavily on the

ation and leveraging the complementary

partners that are aligned with our vision

capabilities of its suppliers and partners

and we hold each other accountable for

together with the Company to arrive at

driving mutual value,” adds Turolla.

the best outcome. A genuine interest

“Through our Supplier Partnership

and investment in the suppliers is a must,

Excellence program, we develop a mutual

understanding them better and a realiza-

value program and review it periodically.

tion that Mondelēz simply cannot do it all

Are we growing with the right partner?

alone.

How many projects have we developed successfully? How well are we aligning

“To Win”

our future supply chain needs? How are

The final part of the mission statement

we progressing on our service and quality

is perhaps the most important and most

excellence program? The ever-evolving

fluid. “Managing our holistic value chain

quest for the cost leadership and the joint

as one, from shelf to field, is the key to

sustainability complement our ambition.”

success,” says Turolla. “We try hard to

This approach allows the suppliers and

foster greater relationships and to under-

Mondelēz to openly and honestly give

stand a uniqueness and sweet spot

each other the chance to feedback and

between Mondelēz and our suppliers,” he

react to the positives and negatives.

says.

Through supplier segmentation,

Innovation plays a key role in Mondelēz’s Supplier Partnership w w w . c p o s t r a t e g y. c o m

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Excellence (SPE) supplier proposition and

more attractive, catching the attention of

it has pioneered a number of approaches

our suppliers, start-ups and innovators.

that deliver bold results:

Likewise, the suppliers also adopted the new approach, using highly effective short

Ecosystem Approach:

videos that easily reach different decision

“We teamed a few SPE suppliers with

makers at Mondelēz globally.”

complementary capabilities and raised a

For Mondelēz, Turolla notes that the

business challenge,” says Turolla. “From

winning is when the wheel is spinning in

more than 100 ideas that were presented,

the right direction. “It’s about ensuring that

11 new products are on the launch pipe-

all the connections are working in a way

line spread over three years, starting from 2020.”

One complementary Network footprint (make vs. buy) “We started to holistically manage our manufacturing footprint with our SPE suppliers, generating several improvements to eliminate inefficiencies and optimize assets on the combined (Mondelēz + SPE suppliers) footprint.”

Innovation fairs “Through multiple innovation fairs, SPE suppliers had a stall at Mondelēz offices to present their capabilities applied to real specific open opportunities.”

Digital platform for innovation “We learn with the influencers how to be “catchy” and make business briefings

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M O N D E L E Z I N T E R N AT I O N A L

that enable success for all involved,” he adds.

“Our global food system is facing numerous challenges and calls for solutions that require coordinated efforts

Sustainability and Mondelēz

by governments, industry and scien-

When discussing how winning is defined

tific, social and environmental experts.

by Mondelēz, it opens the door to the

Smallholder farming communities need

Sustainability conversation. The compa-

support to increase their resilience.”

ny’s sustainable snacking vision is focused

“The Sustainability agenda grew from

entirely on creating a future where people

being the cherry on the cake to become

and the planet thrive and win.

the cake itself,” shares Turolla. “It is a

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M O N D E L E Z I N T E R N AT I O N A L

fundamental component of every sourc-

us at the leading edge of technology and

ing strategy and we are leveraging our

partnerships. These experts in turn build

market presence and relevance to foster

sustainability into the core competence

the right attitude, actions and responsibili-

of our buyers. As a result, our buyers are

ties from all payers in the value chain.”

sustainable sourcing experts who seam-

Mondelēz recently updated its “Snacking Made Right Report” that each

lessly blend sustainability and commercial strategy into sourcing.”

We would be remiss to explore the

year tracks the progress made against its ESG (environmental, social and govern-

procurement journey of Mondelēz and not

ance) strategy, objectives and programs..

look at the role that digital and data solu-

Its signature community program

tions are playing. Turolla is first to admit

“Cocoa Life” is a great example of

that there is still a lot of testing and learn-

Mondelēz engagement with communi-

ing on this front but make no mistake that

ties at the origins. “We are committed

for Mondelēz the digital journey is fast

to working with the suppliers that share

gaining space and enhancing success.

While Mondelēz leverages digital solu-

our values and thrive by doing things the ‘right’ way; fighting climate change,

tions in cost modeling, recipes compari-

preserving forests, improving water and

son, and complexity, spend and revenues

energy efficiency, and respecting human

simulations and market insight to equip

rights,” says Turolla.

procurement for better decision-making,

“To accelerate our journey, we have

Turolla is keen to stress that he is much

a small team of sustainability experts

more interested in approaching the digi-

embedded within Procurement who keep

tal equation in reverse. “We spend time at

“ It [sustainability] is a fundamental component of every sourcing strategy and we are leveraging our market presence and relevance to foster the right attitude, actions and responsibilities from all payers in the value chain” — ALEXANDRE TUROLLA, V P P R O C U R E M E N T G L O B A L R AW M AT E R I A L S AT M O N D E L Ē Z I N T E R N AT I O N A L

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the problem stage first,” he says.

“Only when we clearly define the

plan in place, expediting deliverables and qualifying and booking alternative

Problem Statement, we move to create

suppliers. Through a massive cross

fit-for-purpose analytics and dashboards.

functional endeavor, Mondelēz success-

Once those are created, we push hard

fully executed >200 BCPs (Business

on democratizing the data to all buyers

Contingency Plans), monitored supplier

and R&D researchers. This means making

performance, OTIF and managed to antici-

reporting tools simpler and more effective

pate tier-2 disruptions ahead of time, gain-

for the category and research managers,

ing precious days to react as well as rais-

as well as looking further into the realms

ing inventory for critical unique materials.

of artificial intelligence for data analytics.”

These decisions were driven by data,

There is no better example to illus-

focusing on origination from turbulent

trate the Mondelēz digital journey than

areas and suppliers with difficult upward

its Covid-19 crisis management. Within 48

chain or constrained supplies. In taking

hours of the COVID-19 outbreak in China,

these steps, Mondelēz avoided disruption,

Mondelēz was able to map all materials

securing particularly admirable service

originated in China and delivered to all

levels throughout the crisis. “The Covid-

other countries and put a contingency

19 crisis accelerated the way we leverage w w w . c p o s t r a t e g y. c o m

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“ Be curious about the world around you, have courage to operate out of your comfort zone and the confidence to lead the change then add a bit of self-confidence” — ALEXANDRE TUROLLA, V P P R O C U R E M E N T G L O B A L R AW M AT E R I A L S AT M O N D E L Ē Z I N T E R N AT I O N A L

data and analytics,” says Turolla.

“We are moving fast on our digital transformation and we are only at the beginning. The value creation of a digitally enabled category management and sourcing strategy is immense.”

Since joining Mondelēz, Turolla has witnessed an incredible amount of success and growth as part of this procurement journey and he excitedly beams that the best part is that Mondelēz are “only half way through it”. For him, the next phase of procurement is all about moving from functional excellence to living and breathing the business agenda, bringing all the different elements of excellence together to form a truly integrated approach from shelf to field. “We want to be agents of change for a thriving ecosystem,” he says. “This makes a good link to our renewed commitment to fully integrate supplier diversity and economic inclusion into Mondelēz Global strategies,” “We believe that healthy thriving communities need to include everybody and so we are expanding our business to small, diverse suppliers that have often been 27

M O N D E L E Z I N T E R N AT I O N A L

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disadvantaged in the opportunity to

says. “It’s an ever-changing world.

engage with multi-national and/or other

Get excited to be out of your comfort

mid to large corporations.”

zone.” In order to achieve this, Turolla

In a world where obsolescence is happening faster and faster, success

has his very own formula.

“It’s all about the three Cs and one S,”

is no guarantee. But Turolla reflects

he adds. “Be curious about the world

on the original mission statement of

around you, have courage to operate

procurement at Mondelēz, particu-

out of your comfort zone and the confi-

larly when it comes to being fearless.

dence to lead the change then add a bit

“Think big, don’t think ordinary,” he

of self-confidence. This formula will give

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M O N D E L E Z I N T E R N AT I O N A L

Alexandre Turolla VP Procurement – Global Raw Material Mondelez International Alex leads the procurement function for global Raw Materials ($6.1Bn spend).

He joined MDLZ in 2010 as the LATAM Procurement Lead and moved to different global positions co-creating the current globally-led and locally-executed procurement function that saw the connection with the Business Units and suppliers strengthened. An evolving data driven agenda, together with sustainability, has moved to the centre of the sourcing strategies.

Prior to MDLZ, Alex held several positions in Procurement and Supply Chain at Unilever, Bitron Electronics and General Electric. Alex has a dual Brazilian and Italian citizenship, lived and worked in Brazil and France and is you a lot of fun creating the

currently based in Zurich, Switzerland.

future and keeping obsoles-

Alex earned an MBA from Fundação

cence far out of your way.”

Dom Cabral, a specialization from Kellogg and Insead Business School and an Engineering degree from the Federal University of Rio de Janeiro. He was born in Rio de Janeiro, is married and has a 17-year-old daughter

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www.mondelezinternational.com