This episode explores:

• Henkel’s multiyear journey to merge two of its distinct consumer business units. (1:15)
• An overview of the strategic drivers behind Henkel’s business transformation. (2:44)
• The critical role supply chain leadership plays in driving supply chain change management. (4:52)
• Concrete steps that Henkel took during its transformation journey, including real-world examples. (8:40)
• Recommendations for chief supply chain officers (CSCOs) driving large-scale change management in their own organizations. (12:26)

Host Thomas O’Connor discusses Henkel Consumer Brands’ business transformation journey with Dr. Dirk Holbach, the organization’s CSCO. The pair explore the drivers that motivated the transformation, such as Henkel’s concept of “volume to value.” They provide insight into four broad steps that Henkel took as part of its transformation, and close the show with recommendations for CSCOs that find themselves driving similar transformations.

Gartner clients interested in finding out more about this topic can access the following: 

Reorganize by Integrating and Differentiating Supply Chain Activities

Supply Chain Executive Report: Radically Rethinking Reorganization

About the Guest

Dr. Dirk Holbach has been leading the end-to-end (E2E) supply chain and operations for Henkel's Consumer Brands division since 2022, with net sales around €10.5 billion. He collaborates with approximately 10,000 associates in 36 factories and 88 logistics centers around the world. As one global team, Henkel not only delivers daily on the classic triangle “cost,” “cash” and “service,” but also drives a holistic transformation journey along multiple dimensions creating significant business impact. Henkel’s aim is to continuously increase the value delivery, agility and resilience of its global supply chain with the ultimate goal to drive value growth and serve its consumers and customers at its best.

This goal is supported by three strategic priorities:

• People and culture: Henkel puts its people at the center of everything it does. The pandemic has clearly underlined the value of strong individuals collaborating in empowered teams, and Henkel enables strong value creation and business performance via its significant investment into team effectiveness and individual leadership capabilities.
• Digitalization: Continuously accelerating digital transformation at Henkel started in 2013, with migration toward a fully connected, real-time and integrated digital ecosystem and toward an autonomous, self-driving and touchless supply chain. This work is supported by highly qualified associates and Henkel is the proud owner of four World Economic Forum (WEF) Fourth Industrial Revolution (4IR) Digital Lighthouses
• Sustainability: Part of Dr. Holbach’s personal agenda and part of the DNA at Henkel, the company drives sustainable progress leveraging digitalization (e.g., reducing its CO2 footprint by more than 70% since 2005), with 14 sites becoming fully climate-positive (electrical and thermal energy), making the company’s entire mature region footprint carbon-neutral.

When not at work, Dr. Holbach enjoys spending time with his family, or on a race or mountain bike. He has also been listed several times in the Top 28 Supply Chain Executives in Europe, being No. 1 in 2020.