Q&A Series: GoodyCo on Navigating Challenges and Leading in Sustainability in the Supply Chain

For Muath Abdulkarim , Director of Operations at GoodyCo , the key to their Supply Chain Success lies largely in its commitment to leveraging digital solutions. He highlights AI, machine learning, and advanced analytics as instrumental in optimizing inventory, forecasting demand, and planning production, allowing them to adapt swiftly to changing markets.

Supply Chain and Logistics Summits Global Series speaks to several trailblazers in the Supply Chain industry across Saudi Arabia on how they are positioning their organizations to prepare to meet the Saudi Arabia Vision 2030.?

With innovation as its cornerstone, Goody, a small food product company, has grown to have a global footprint, with technology driving its ability to overcome supply chain challenges across markets and different product lines.?

Muath, previously a seasoned supply chain expert with over a decade of experience at Procter & Gamble, now leads the Supply Chain division as the Director at Saudi Goody Products Marketing Co. Ltd and has consistently demonstrated a talent for optimizing operations and ensuring product availability.

SCLS: The past couple of years have been just about the scariest environment imaginable for every supply-chain executive. Can you tell us what you and your team are most proud of accomplishing during the crisis?

Muath: Over the past three years, we have faced numerous crises that have significantly impacted our global supply chain network. From the challenges posed by the COVID-19 pandemic to container scarcity, port strikes, natural disasters, the Suez Canal blockage, the Russian-Ukrainian war, and the recent Red Sea challenge, our supply chain professionals have navigated a tumultuous environment.

At GoodyCo, we take pride in our accomplishments during these crises:

Protecting Product Availability:

Despite the challenges, our team successfully ensured high stock coverage and secured the needs of our customers and consumers. Through effective supply planning and inventory management, along with robust risk management strategies, we maintained a resilient supply network.

Supply Chain Digital Transformation:

We implemented various digital technologies to enhance supply chain management. These technologies improved efficiency, visibility, and decision-making capabilities. Examples include our MRP module (SAP) for replenishment management, E2open for supplier collaboration and contract/PO management, Clarizen as a project management platform for innovation development, and Promena as an e-procurement platform for logistics bidding. We also developed an in-house digital tool, the Advanced Shipment Notification (ASN) using ZOHO, which integrates with platforms like Project 44 to provide enhanced visibility of shipping routes and container movement. Our ASN tool was recognized with the ZOHO Global Award for "Digital Transformation Star" in 2022.

Building Supply Chain Capability:

We focused on strengthening our foundation by enhancing the capabilities of our people, processes, and sites. Notably, we achieved the BRC grade AA+ certification for our warehouse in Jebel Ali, making us the first FMCG company in the Middle East and Africa to attain this milestone. Additionally, our efforts in uplifting the maturity of our business planning processes earned us the prestigious Oliver Wight certification (IBP-Class A).

SCLS: With the global geopolitical situation, instability in commodity pricing, trade risk, and global health developments, how are you preparing to meet these challenges in 2024?

Muath: Our company is taking proactive measures to meet these challenges head-on in 2024. Here's how we are preparing:

Scenario Planning and Visibility:

We understand the importance of anticipating and preparing for various potential scenarios. We analyze geopolitical, economic, and health-related situations through the robust scenario planning part of our IBP framework to identify potential risks and opportunities. This allows us to develop contingency plans and make informed decisions to mitigate potential disruptions. Additionally, we prioritize enhancing visibility across our supply chain network by leveraging the technologies we have already invested in to drive insights. By having real-time information, we can proactively manage potential challenges.

Diversification of Suppliers:

To mitigate the impact of commodity price instability and trade risks, we are actively diversifying our supplier base. By expanding our network of suppliers geographically, we reduce our reliance on specific regions or sources. This diversification strategy helps us to mitigate risks related to geopolitical tensions, trade disputes, and market fluctuations. We carefully evaluate potential suppliers, considering factors such as reliability, cost competitiveness, quality, and sustainability, to ensure a resilient supply chain.

Resilience, Agility, and Flexibility through Digital Solutions:

We recognize that digital solutions are essential in building a resilient, agile, and flexible supply chain. By leveraging technologies such as artificial intelligence, machine learning, and advanced analytics, we enhance our supply chain capabilities. These digital solutions enable us to optimize inventory management, demand forecasting, and production planning, allowing us to respond quickly and efficiently to changing market conditions. Furthermore, we continue to invest in digital platforms that provide real-time visibility into our supply chain, enabling us to promptly identify potential disruptions and implement proactive measures.

SCLS: Surveys of supply chain leaders show the need for visibility on sustainability performance and a holistic business case to drive results. How big a role do you see sustainability playing in the future of the supply chain and how are you approaching this within your organization?

Muath: Technological advancements, such as autonomous vehicles, are revolutionizing last-mile delivery and transportation logistics, enhancing speed and efficiency.

SCLS: Surveys of supply chain leaders show the need for visibility on sustainability performance and a holistic business case to drive results. How big a role do you see sustainability playing in the future of supply chain and how are you approaching this within your organization?

Muath: We are witnessing a paradigm shift in supply chain management with these technological advancements, which will have a positive impact on the way we operate and manage the supply chain. Reflecting on the Goodyco supply chain, visibility and real-time tracking played a major role in our performance.?

I believe that technology like autonomous vehicles has the potential to transform the industry further. Autonomous vehicles, including drones and self-driving trucks, have the potential to revolutionize last-mile delivery and transportation logistics, improving speed and efficiency.

SCLS: Another thing that has become a big topic of conversation recently is worker shortages and the problems associated with finding the right talent, whether in distribution centers, manufacturing, or transportation. How do you ensure that your organization keeps winning the talent battle?

Muath: To ensure that GoodyCo keeps winning the talent battle and attracts the right talent in the supply chain field, we have implemented several strategies focused on building a capable supply chain organization. These strategies encompass people, processes, and systems to address the challenges associated with worker shortages effectively. Here are the key areas we focus on:

Employee Engagement and Retention:

We prioritize creating a positive work environment that fosters employee engagement and satisfaction. This includes providing opportunities for growth, recognizing and rewarding achievements, and promoting a strong company culture. We encourage open communication, active employee involvement in decision-making processes, and initiatives that promote work-life balance. By prioritizing employee well-being and engagement, we aim to attract and retain top talent.

Succession Planning and Talent Development:

We recognize the importance of developing a strong talent pipeline for critical roles in our supply chain. Succession planning ensures that we have a robust talent pool ready to step into key positions as needed. We identify high-potential individuals within the organization and provide them with targeted development programs, mentoring, and growth opportunities. By investing in talent development, we ensure a continuous flow of skilled professionals within our supply chain.

Competitive Compensation and Benefits:

To attract and retain top talent, we offer competitive compensation packages and comprehensive benefits. We regularly benchmark our salary and benefits packages against industry standards to ensure they remain attractive. By providing competitive compensation and benefits, we aim to incentivize and retain talented individuals in our organization.

Skills Matrix-Based Training:

Continuous learning and upskilling are essential to keep pace with the evolving supply chain landscape. We invest in training programs that enhance the skills and knowledge of our team. This includes providing access to industry certifications, technical training, leadership development programs, and cross-functional exposure. By equipping our employees with the necessary skills, we empower them to adapt to changing demands and contribute to the organization's success.

Employer Branding and Recruitment:

We actively promote our organization as an employer of choice within the industry. We focus on building a strong employer brand that highlights our company values, career opportunities, and commitment to employee development. This includes leveraging social media platforms and maintaining a strong online presence. Additionally, we utilize targeted recruitment strategies to attract top talent, such as collaborating with educational institutions, professional associations, and industry networks.

SCLS: What will the supply chain look like in 10 years?

Muath: Predicting the future of the supply chain is challenging, as it is influenced by various factors such as technological advancements, economic trends, environmental concerns, and evolving consumer expectations. Based on my view, I can imagine that the supply chain will evolve more in the region with the 2030 vision of making KSA a regional Supply chain hub. With the focus on building infrastructure, manufacturing, and new shipping routes, the following areas will change rapidly in the future:

1. Self-driving trucks and Drones to be used in transportation focusing on last-mile delivery.

2. More focus on sustainability and circular economy.

3. Increasing use of AI in the supply chain in planning, logistics, and manufacturing.

4. Rise in demand for new skills for the supply chain people.

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