Unpacking WestRock’s Digital Transformation

Peter Anderson, Chief Supply Chain Officer at WestRock, recently shared his view of the company's comprehensive digital transformation at aim10x digital, providing some valuable lessons for businesses looking to boost and bolster their operational and strategic frameworks.

WestRock is a fiber-based packaging leader with a complex supply chain tailored to its commitment to sustainability and circular economy practices. The company integrates recycling with production and distribution across a vast network to promote environmental sustainability in packaging solutions.

Historically, supply chain management at WestRock was centered on maintaining cost efficiency and reliable service levels, but since 2017, the role has transformed due to external pressures such as global trade policies and the COVID-19 pandemic. These challenges gave rise to a stronger focus on the supply chain's role as a core strategic function within corporate and board discussions.

Let Data Drive…
One of the key drivers of WestRock’s transformation was the recognition of over a billion dollars in value-creation opportunities, with significant contributions from the supply chain; a realization that inspired a series of initiatives aimed at enhancing customer service and operational efficiency. The integration of ERP systems and advanced planning solutions like those offered by o9 facilitated a more dynamic and responsive supply chain, capable of sophisticated demand and supply planning across WestRock’s global operations.

Embracing (Gen)AI
WestRock has strategically integrated AI and generative AI (GenAI) into its operational framework, reflecting a significant shift from traditional methods to more advanced, data-driven approaches. Adopting AI technologies has been instrumental in transforming the planning systems at WestRock. Previously, these systems were heavily reliant on static parameters and manual inputs, which limited their flexibility and responsiveness, but by implementing AI, the company has moved towards dynamic systems that can adapt to changing market conditions and complex supply chain requirements.

Anderson discussed the use of GenAI to capture and codify the vast tribal knowledge within the company. This involves creating digital manuals and training modules that cover decades of operational wisdom, ensuring that this invaluable knowledge is preserved and made accessible for future generations of employees.

Similarly, AI tools are being used to optimize decision-making processes, from forecasting and logistics to resource allocation and manufacturing schedules. This results in a more cohesive and efficient operation that can anticipate market changes and respond with agility.

One significant aspect of AI application at WestRock is in quality management - AI algorithms help monitor production processes to ensure quality and consistency, while also predicting potential issues before they arise. This proactive approach to quality management not only enhances product reliability but also reduces waste and improves overall customer satisfaction; a win-win opportunity for companies experiencing increased supply chain complexity.

Prioritize (Then Execute)
In prioritizing transformation initiatives, Anderson emphasized the importance of a clearly defined end-state vision. This helped guide the deployment of technologies and the restructuring of processes to achieve sustainable improvements. Key priority areas like procurement, logistics, and quality management were systematically addressed through technology enhancements and process optimizations, showcasing a holistic approach to transformation.

Talent and Tech Together
Anderson was also quick to recognize that talent development is as crucial as technological advances in WestRock’s transformation strategy. The company places a high priority on nurturing a learning environment where innovation is encouraged, and new ideas are valued. How? Through initiatives aimed at both attracting new talent and building on the skills of existing employees.

WestRock also collaborates with universities to align curriculum with industry needs, preparing students to enter the workforce with relevant skills. Ongoing training and development programs focus on both technical skills and soft skills like problem-solving and strategic thinking. ‘Hackathons’ and collaborative projects help engage employees in solving real-world business challenges, fostering a culture of experimentation and continuous improvement.

Leadership development programs also play a crucial role, equipping potential leaders with the skills needed to navigate complex global supply chains and drive digital transformation initiatives.

WestRock’s transformation journey serves as a helpful guideline for other businesses navigating their digital and operational transformations. Through a combination of detailed strategic planning, adoption of new technologies, and a focus on talent cultivation, WestRock demonstrates how businesses can adapt to changing environments and emerge as leaders in operational excellence and innovation.

As WestRock continues to innovate and adapt, its journey demonstrates the power of strategic foresight and the integration of advanced technologies in modern business practices.

See o9’s solutions in action

Take a free self-guided tour of the o9 platform to explore the advantages of our solutions at your own pace.

Request access