*Episode hosted by Radu Palamariu*
In this episode, I interviewed Vikram Agarwal, Danone’s Chief Operations Officer. Vikram provided an overview of Danone’s global supply chain, which spans 55 countries and 48,000 employees and integrates economic growth with social responsibility. As well as shared his career journey and the strategic role of supply chains in driving business value.
Vikram outlines Danone’s approach to balancing short-term challenges with long-term vision using the 4C framework: Customer Centricity, Cost Competitiveness, Cash Efficiency, and Carbon Reduction. He shares how these strategies have improved customer service and sustainable growth.
He also emphasizes the importance of authentic leadership and building organizational capabilities. Vikram offers advice for young supply chain professionals, highlighting the need to focus on creating business value and inspiring teams.
Listen to the full discussion here:
Connect with the Guest:
With 35+ years of experience in supply chains around the globe, Vikram Agarwal has worked at leading companies like Unilever, Avon Cosmetics, Dole Packaged Foods, and PE Funds. Since January 2022 he has been Chief Operations Officer at Danone.
During his career, he has held multiple supply chain roles across Plan, Source, Make, and Deliver, and possesses a successful track record in supply chain turnaround, digitalization of operations, route to market expansion, procurement strategies, new business development, sustainability, and M&A projects.
His breadth of experience working with international teams in global/ regional/ local roles while based variously out of India, Singapore, South Africa, UK and France has informed his belief that agile supply chains play a pivotal role in helping businesses grow faster and become more competitive. And, that a talented team of people in the supply chain inspired into excellence by authentic leadership lie at the heart of this value creation.
Questions I Asked:
- What were some of the key inflection points in your career, and how did they help you understand the role of supply chain?
- How is the Danone’s supply chain structured?
- As a Chief Operations Officer, how do you enable business growth?
- How do you maintain the balance between short-term and long-term goals in Danone?
- How are you working with your organization to ensure that customer centricity is constantly improved?
- Can you share some examples of the sustainability and carbon reduction initiatives you have implemented at Danone in the last two and a half years?
- What programs and initiatives have you implemented in terms of building the capabilities and skill sets of the operations team in Danone to deliver all these great programs?
- What advice would you give to young supply chain professionals stepping into the world of supply chain?
Show notes:
- [0:46] When you look back, what were some of the key inflection points, and how did they help you understand the role of the supply chain in order to create a competitive advantage?
- [1:12] “I’ve been privileged to work in different parts of the world, which has enabled me to get a very good understanding of how to relate to different cultures and how people’s minds work in different parts of the world […]”
- [7:20] How is Danone’s supply chain structured?
- [11:09] How do you think in terms of business growth and enabling that growth from where you sit as the Chief Operations Officer?
- [13:38] “I believe we have been critical in driving the company’s growth, particularly through what I call the four C’s: cost competitiveness, cash, customer service, and carbon. These areas are key to operations and supply chain success […]”
- [15:39] In your first two and a half years at Danone, how did you balance achieving quick wins with developing a long-term vision for the organization? Were there specific strategies or actions early on that contributed to your current success?
- [18:59] “I think we managed to benefit from all the learnings in the industry and leapfrog many things. By doing so, we started understanding the decarbonization of the supply chain. Not just managing the immediate, we also began putting capacities in place to stimulate growth.” Therefore, we were not only rising to the business challenge but also investing in our future.
- [20:06] How are you working with your organization to ensure that customer centricity is touched upon, is improved, and constantly gets that 5% that ultimately will get you more clients?
- [27:10] How important is it for supply chain executives to have access to and direct communication with clients in achieving true customer centricity, particularly in industries where this connection is often disjointed or lacking?
- [28:16] “I look at it as something that has to be given to the customer as a full-value offering rather than just a commercial proposition.”
- [31:59] On the sustainability front, could you share more examples of the carbon reduction efforts and achievements you’ve made over the past two and a half years?
- [37:06] Are there any specific programs or initiatives you’ve implemented to build the capabilities and skill sets of the operations team at Danone to deliver these various programs?
- [40:13] “We want people who are joining us to be in sync with what we want in the Danone brand leadership. We have used the concept of ambidexterity in creating that framework. The idea is that people whom we want in the business and operations are those who exhibit ambidexterity.”
- [42:16] What advice would you give to young supply chain professionals or recent graduates stepping into the world of supply chain, who one day aspire to be a Chief Operations Officer of a great multi-billion dollar company?
- [42:31] “Always see how you’re creating business value, rather than just supply chain value, a supply chain that works for itself is going to fail, and a supply chain that works to generate business value is the one that will succeed.”
Quotes from the Episode:
About the Host:
What a great discussion I had with Vikram Agarwal. I am your host, Radu Palamariu, Group CEO of Alcott Global, working on C-level and top management executive search assignments with Top Fortune 500 companies and local conglomerates in value chains for manufacturing, logistics, transportation, supply chain management, and e-commerce and also the co-author of “From Source to Sold – Stories of Leadership in Supply Chain”.
Alcott Global provides Executive Search Solutions for key positions at all pillars of the end-to-end value chain: planning, procurement, manufacturing, logistics, e-commerce, and overall supply chain operations.
In our Makers & Movers face-to-face events, we bring together value chain executives to connect, collaborate, and innovate – a forum focused on business value creation.
Join us on September 12 to celebrate the Top 30 Leaders in Supply Chain for their achievements in digitizing operations, decarbonization, and sustainability and in creating a diverse and equitable environment for supply chain teams to thrive and excel.
Related Episodes:
#195: The CEO’s view of Supply Chain, PEs and Indian brands
#196: Smarter Collaboration: A New Approach to Breaking Down Barriers and Transforming Work