Transforming planning and decision-making in brand manufacturing
Danone COO Vikram Agarwal joins aim10x global 2023 to share
insights from the company’s digital transformation journey.
1. Vikram highlighted the recognition received by Danone's Opole factory in Poland, which was recently recognized as part of the Global Lighthouse Network by the World Economic Forum at Davos. He explained that Opole is a strategic factory that makes specialized nutrition products and has achieved outstanding results through its Digital Manufacturing Acceleration program.
2. According to Vikram, it is essential for digital programs to have a clear business purpose and capture value. Danone has identified almost 30 use cases rolled out to 40 factories, resulting in a 20% reduction in cost savings and a 10% reduction in operating efficiency.
3. Vikram also highlighted Danone's Re-Fuel program, which focuses on emission reduction. He explained that Danone has reduced scope 1 and 2 emissions by 50% since 2015, and by 2030, will reduce it by 40%. All of Danone's electricity by 2030 will be from renewable sources, and fossil fuel-based consumption will reduce by 50%.
4. Vikram discussed Danone's progress in supply chain planning, a significant focus for the company's digital transformation program enabled by the o9 platform. He emphasized that the planning initiative is end-to-end, from suppliers and raw material planning to transport planning and dispatch to customers. Vikram also highlighted the importance of upskilling people to maximize its planning platform’s potential.
5. Finally, Vikram stressed the importance of change management in driving digital transformation while ensuring people's engagement. He explained that Danone's change management objectives are intrinsic to the company's culture and involve the whole organization, not just the supply chain.