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.
CONTRIBUTING TO THE EARTH’S FUTURE WORKING HAND IN HAND WITH OUR CUSTOMERS
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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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