Hello and welcome to Modern CEO! I’m Stephanie Mehta, CEO and chief content officer of Mansueto Ventures. Each week this newsletter explores inclusive approaches to leadership drawn from conversations with executives and entrepreneurs, and from the pages of Inc. and Fast Company. If you received this newsletter from a friend, you can sign up to get it yourself every Monday morning.
Companies are rethinking their sprawling, global supply chains. There are all manner of reasons: shortages of raw materials, shipping delays, residual pandemic disruptions, and tensions between the U.S. and China—a key supplier of everything from raw materials such as steel to components such as microprocessors.
Large corporations also need to reduce greenhouse gas emissions in their supply chains, which is prompting companies in the consumer packaged goods and restaurant industries to band together to help educate and support small suppliers on climate goals and targets.
Leading the change
At HP, the giant maker of PCs and printers, the supply chain reset is also an opportunity to advance its circular economy strategy by refurbishing and recirculating used equipment. The company already takes back devices, erases the previous user’s data, and repurposes the machine or its parts. And the broader trend of minimizing disruptions by moving supply chains and manufacturing closer to end users should help make refurbishing more financially and environmentally viable for HP and others. (Machines would be collected, repaired, and redistributed locally instead of shipped around the world.)
But reimagining a supply chain for the circular economy is no small feat, says Ernest Nicolas, HP’s chief supply chain officer. Companies have typically been more focused on the forward supply chain—getting components and materials to their manufacturing plant and then ultimately to their end users. With refurbishment in the mix, Nicolas says he’s trying to align the so-called reverse supply chain with HP’s traditional supply networks.
New process, big questions
In many cases, HP will be required to redesign its manufacturing and distribution operations. “Will I use the same facilities? Can I park in the back of those facilities? Do I need additional facilities?” Nicolas asks rhetorically. “The answer to all those questions is going to be ‘yes.’ ” He adds that the skills needed to make a device are different from the ones needed to refurbish one, which means the talent mix at one of these facilities may change.
Indeed, HP recently moved its supply chain for repairs into Nicolas’s department, underscoring the strategic role he plays in the organization. (The chief sustainability officer also reports to Nicolas.) “Every company should have received the memo that supply chain needs a seat at the table,” he says. “It isn’t about supply chain driving or steering the conversation. It’s about the contributions we can make and how we can manage cost and service in the organization.”
Share your strategic shifts
What roles in your organization have evolved into strategic partners to the CEO? Share your stories of functions or individuals who are now playing key roles in planning and execution to stephaniemehta@mansueto.com. I’d love to share the best examples.
Read and watch: logistics and leadership
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Everlane’s virgin plastic supply chain purge
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