SCM Leaders Forum: Philippe Gretz, Barry Callebaut
Industry IoT's SCM Leaders Forum saw the brightest minds in supply chain, manufacturing and sustainability convene for two days of fascinating insight and discussion.
Staged at HP Innovation Center in Barcelona, the event featured presentations from inspiring leaders representing the likes of Bayer, Coca-Cola Europacific Partners, Danone, L'Oréal and McKinsey & Company.
Supply Chain Digital caught up with Philippe Gretz, CFO for Global Operations and Supply Chain at Barry Callebaut, who discussed the need to navigate cocoa price volatility and why sustainability is crucial to the coffers.
Managing supply chain costs
Hailing from Switzerland, Philippe Gretz occupies a critical role at Barry Callebaut, one of the world's largest chocolate manufacturers.
As CFO for Global Operations and Supply Chain, his responsibilities are both complex and essential.
"My day-to-day role is to manage our costs, supply chains and transportation, so we can deliver product to the customers at the most effective cost," Philippe explains.
Unsurprisingly, Philippe's position has become increasingly challenging as the chocolate industry faces unprecedented pressure when it comes to obtaining raw materials. Such volatility in cocoa markets presents particular difficulties for financial planning.
Navigating cocoa price volatility
Recent market conditions have created extraordinary cost pressures that demand careful management and inevitably require innovative approaches to procurement.
Philippe continues: "For chocolate, you need cocoa beans and that's the major issue we have in the industry because, maybe a year ago, a ton of beans was £3,000 (US$4,000) and now it's £9,000 (US$12,000).
"So, you have scarcity of beans, you have less quality beans, but you have almost the same demands."
As the largest buyer of cocoa beans worldwide, Barry Callebaut has had to adapt its sourcing strategies in response to these dramatic price increases.
Making sustainability profitable
For Philippe, sustainability isn't just an ethical choice but a business imperative in the chocolate industry.
Without sustainable cocoa production, the entire business model is at risk.
"We are big on sustainability because, without cocoa beans, there's no chocolate – it's critical for us," Philippe emphasises.
He shares a compelling example from a recent trip to South America: "Three weeks ago, I was in Brazil on a farm talking to the farmer. She has developed sustainability in her farm and last year was actually the first year in 20 years that she was profitable."
The value of knowledge sharing
Events like the SCM Leaders Forum provide valuable opportunities for supply chain professionals to connect and learn from diverse perspectives.
Such gatherings expose participants to innovations they might otherwise miss.
Philippe certainly appreciates the breadth of topics covered at such events: "Everything is interesting, from sustainability to integrated business planning, because you are learning. If you look at your own shoes, you don't learn."
Stay tuned to the Supply Chain Digital website for more from Industry IoT's SCM Leaders Forum.
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