I interviewed Bruno Roman who discussed Supply Chain Process.
Can you provide a brief background of yourself?
Okay. I'm in Brazil and an executive in supply chain. I have about 30 years’ experience in the supply chain area. I have been working all my life in companies which are the leader or top-tier in your segment, like [inaudible 0:00:46] tobacco for 16 years. Then I moved to a logistics company in another state here in Brazil. In fast food, like KFC in Pizza Hut in Brazil, a beverage company. Then the last company, AT&T, Sky in Brazil.
In all of those companies, I'm [inaudible 0:01:28] like a head of supply chain, but my focus was, every time, in the advertising area. That I considered the most important area when you talk about supply chain.
It's that good for you, Dustin, about my experience?
That's great. So my first question is what is supply chain process?
I can divide supply chain paralysis in four main areas. First of all, we need planning where I can include the main process, S&OP. Then we have purchasing area, of course, responsible for all needs that the company requires. Then we have a logistical area and distribution. That's my simple definition about supply chain. Of course, we're have one in each area, different characteristics of the process and of the people who are working there. But I consider supply chain the heart of the companies because supply chain is exactly in the middle of all that you need to work well in the companies in general.
We are connected with the sales area, financial, when you talk about S&OP, to discuss all the sales planning of the company, what are the objectives, the main targets that the company is looking for. And then you use the planning area, more specific S&OP cycle planning to define all that you need. And then you put your needs for purchasing area.
I consider purchasing the most intelligent area for the supply chain, the companies. When you talk about your raw material or investments, when you need to apply the best of strategic resourcing, [inaudible 0:04:44] to do the best sourcing. And when you need to save other money that the companies spend...
For example, the last company where I worked, we had more than $1.5 billion dollars a year as [inaudible 0:05:08]. And my team used to save something around $100 million dollars a year. It's impacted directly in the result of the company in the yields that you send for the stakeholders. So that's the reason what your consider the supply chain area the heart of the companies.
Can you share your experience with supply chain process?
For example, I will talk about the cycle planning in Sky. Sky, the first most became Direct TV in the US, but as you know, was bought by AT&T, and you have a cycle with five meetings per month to define how we will supply the company based on the [inaudible 0:06:47] of the sales department. So of course, we have our year targets. So you have a month to sell, and their sales area told you that we will sell 100,000 new clients. So what do you need to turn on 100,000 clients in our base? And then, of course, you explode the S&OP planning for all the mtls using, of course, the ABC curve. And I think we discussed in the [inaudible 0:07:52] of the president of the company directors and myself, of course, and B and C are things in the [inaudible 0:08:04] operational team. But everyone has a method to have the best supply with the best price. That's [inaudible 0:08:24] the last company. It was very difficult because a company like Sky, it's a service company, not an industry. In an industry, it's a little bit easier because you have your raw mtl and packaging, and it's much more easy then with a service. But we can apply the concepts, the best practice, and do a good job, of course. That's it.
Can you talk a little bit about how to implement, to put this into practice?
Well, in using Sky, again — I keep using Sky as an example — we implement all the processes when I started there in 2011. On that occasion, we had only methodology to support the AI things in the curve. They basically have no treatment for the B & C [inaudible 0:10:19] things. I was in charge to create in the purchasing area much more strategy than operational. And of course putting intelligence in the area, not only simple buyers to make a purchase, and nothing more, nothing intelligent in that area, completely automatic using SAP system to support all the intelligence of the company.
I used to make this implementation during the first two years of the company to achieve the high level of the intelligence and strategy. I made deals with great success.
Thanks, Bruno, for sharing today.
About Bruno Roman
Senior Supply Chain Executive | Compras | Logística | Planejamento | Distribuição