Westrock Supply Chain Simplifies Operations at Scale for Business Success

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Warehouse scene featuring workers and a forklift navigating aisles for logistics and inventory management.
Credit: pexels.com, Warehouse scene featuring workers and a forklift navigating aisles for logistics and inventory management.

Westrock's supply chain is designed to simplify operations at scale for business success. By leveraging its global network of manufacturing facilities and distribution centers, the company can efficiently manage its inventory and shipping processes.

Westrock's business model is built around its paper and packaging products, which are used in a variety of industries including food and beverage, pharmaceuticals, and consumer goods. Its supply chain is optimized to meet the unique needs of each of these industries.

Westrock's supply chain is supported by its advanced technology platform, which enables real-time tracking and monitoring of inventory and shipping. This platform is integrated with its manufacturing and distribution operations to ensure seamless communication and coordination.

Westrock's focus on supply chain simplicity has allowed it to achieve significant cost savings and improve its overall efficiency.

Solving Complexity

WestRock's supply chain is complex, with over 30 mills and 300 converting facilities. This complexity was exacerbated by multi-week lead times between production and conversion, a global footprint, and highly dynamic customer demand.

Credit: youtube.com, CHAPTER 6 Complexity and The Supply Chain

The company faced a common but critical challenge: disconnected systems and siloed processes prevented end-to-end visibility and coordination. Converting plants didn't know what the mills were producing, planners were reacting instead of orchestrating, and thirty-six ERP systems made alignment almost impossible.

To address this, WestRock built a digital planning layer powered by the o9 platform to unify demand, supply, and inventory decision-making. This effort ran in parallel to a broader ERP transformation, allowing WestRock to unlock planning value immediately while preparing for deeper integration over time.

Solving Complexity at Scale

Solving complexity at scale requires a strategic approach. WestRock's supply chain is a prime example of this, with over 30 mills and 300 converting facilities.

Their complexity was further exacerbated by multi-week lead times between production and conversion, and a global footprint with highly dynamic customer demand. This led to disconnected systems and siloed processes that prevented end-to-end visibility and coordination.

Delivery worker unloading Coca Cola crates from truck on city street, showcasing beverage supply logistics.
Credit: pexels.com, Delivery worker unloading Coca Cola crates from truck on city street, showcasing beverage supply logistics.

Thirty-six ERP systems made alignment almost impossible, and planners were forced to react instead of orchestrate. WestRock recognized the need for a step change and appointed its first-ever Chief Supply Chain Officer.

To tackle this complexity, WestRock built a digital planning layer powered by the o9 platform to unify demand, supply, and inventory decision-making. This effort ran in parallel to a broader ERP transformation, allowing WestRock to unlock planning value immediately.

The o9 platform helped WestRock to overcome its challenges and achieve immediate wins. "We can’t wait on ERP. We needed wins now. And with the o9 platform, we’re getting them."

Change Management: The Make-or-Break Factor

Change management is often the biggest hurdle in implementing new systems. WestRock's leadership understood this, and instead of just pushing a tool, they focused on building trust and buy-in across functions.

To achieve this, they used various tactics such as lunch-and-learns, stakeholder walkthroughs, and value-first conversations. These helped create a sense of ownership and understanding among the teams.

Credit: youtube.com, 5 Steps in the Change Management Process | Business: Explained

WestRock also made a bold move by assigning top talent to the transformation on a full-time basis. This sent a clear message that change management was a priority.

Having the best people on board helped drive the change forward, and some of those roles won't even exist in two years. This is exactly the point – building future leaders who can take the organization forward.

By taking a people-first approach, WestRock was able to overcome the biggest challenge in implementing their new system.

Demand First, Then Momentum

Westrock's supply chain is designed to meet demand before momentum builds, which is a key differentiator in the industry. This approach allows the company to stay ahead of customer needs and avoid stockouts.

By analyzing historical sales data, Westrock can identify trends and patterns that inform their production and distribution strategies. This data-driven approach enables them to adjust their supply chain to meet changing demand.

Credit: youtube.com, Demand Planning in Today's World: A Demand Planner's Perspective in Retail

Westrock's focus on meeting demand before momentum builds is reflected in their just-in-time production model. This model ensures that products are manufactured and shipped just in time to meet customer demand, minimizing waste and excess inventory.

By meeting demand before momentum builds, Westrock can also reduce the risk of stockouts and overstocking, which can have significant financial and operational consequences.

Data and Technology

Data is the real bottleneck in supply chain management, as WestRock learned the hard way. They initially planned for five data resources but needed ten to harmonize and contextualize their data.

Accurate, business-ready data is key to unlocking efficient supply chain operations. WestRock's investment in data collection paid off, enabling them to execute scenario-based planning and improve inventory allocation.

Collecting inventory data used to be a four-week project for WestRock, but now they have a system that does it in real-time. This shift from manual to automated processes has become a way of life for the company.

WestRock's experience shows that technology is not a constraint, but rather a means to an end. With the right data and technology in place, companies can achieve significant improvements in their supply chain operations.

Ensuring Excellence in Medical Packaging

Credit: youtube.com, How WestRock is Transforming Its Circular Supply Chain

Westrock's medical packaging solutions are designed to meet the unique needs of the healthcare industry, where precision and reliability are paramount. Westrock's expertise in converting and packaging solutions ensures that medical products are packaged safely and efficiently.

The company's sterile packaging solutions are designed to maintain the sterility of medical products, which is critical in preventing contamination and ensuring patient safety. This is achieved through the use of materials and processes that prevent the introduction of contaminants.

Westrock's medical packaging solutions are also designed to be compatible with a wide range of medical products, including pharmaceuticals, medical devices, and diagnostics. This flexibility allows healthcare companies to package their products in a way that meets their specific needs.

Westrock's expertise in packaging solutions has been recognized by the industry, with the company receiving certifications such as ISO 13485 and ISO 9001. These certifications demonstrate the company's commitment to quality and its ability to meet the rigorous standards of the healthcare industry.

Consider reading: Westrock Company Evadale

Sustainability

Credit: youtube.com, WestRock Digital Chief Amir Kazmi on Creating a Sustainable Supply Chain | Technovation 604

Sustainability is at the forefront of Westrock's supply chain efforts. Smurfit Westrock, formed from a merger between Smurfit Kappa and Westrock, has built a strong reputation for sustainable innovation.

The company's paper pallet wrap is a 100% paper-based alternative to traditional polyethylene stretch wrap. It's designed to help businesses cut their Scope 3 emissions by reducing carbon in their supply chains.

Jemma Jones, National Account Manager at Smurfit Westrock, notes that switching entirely to the paper wrap would lead to an extremely significant reduction of emissions. Traditional stretch wrap is still widely used, but the paper-based alternative is much easier to recycle at the end of use.

The innovative new solution is made from Nertop Stretch Kraft paper, which is fully recyclable. This is the latest addition to Smurfit Westrock's Better Planet Packaging Portfolio, which aims to reduce the environmental impact of packaging.

Frequently Asked Questions

What happened to WestRock?

WestRock was acquired by Smurfit Kappa, resulting in the formation of Smurfit Westrock, one of the world's largest packaging companies. The combined entity now has a global presence with headquarters in Dublin and Atlanta.

Elmer Kassulke

Lead Assigning Editor

Here is a 100-word author bio for Elmer Kassulke: Elmer Kassulke is an accomplished Assigning Editor with a keen interest in storytelling. With a keen eye for detail and a passion for research, Elmer has covered a wide range of topics, from the Port of Bristol to the works of Isambard Kingdom Brunel. Their expertise spans various categories, including geography, history, culture, and transportation, making them a versatile and reliable voice in the world of journalism.

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