Name: Newell Brands CEO: 2022 will be a 'good year'
Uploaded: 2021-12-22
Duration: 8 min 51 s
Description: CEO Ravi Saligram is prepared for supply chain challenges and Omicron.

CEO Ravi Saligram is prepared for supply chain challenges and Omicron.

Newell Brands CEO: 2022 will be a "good year"

Leadership

Robbie, so glad to have you here with us to talk about your company. Newell brands. You know, many people might not be familiar with the Newell name but they do know you're famous brands like Rubbermaid storage containers, sharpie pans, mr coffee machines, yankee candle. I could go on and on and on when you took over two years ago, the company was struggling and you did a lot of things to turn things around. How's business doing now. We're having a great year yet today through the third quarter, just reeling it off our top line, organic sales growth is 15% Our operating profit is up 21 and gps up 14. So I think and that growth 15% after four years of decline. It is tremendous to see because we brought innovation back. So I feel very good about the business and that we are poised to really become a sustainable profitable growth company. Well, I understand that one of the big changes you made when you came in was simplifying the complicated way that Newell does business, especially when it comes to inventory and ordering systems from what I understand, you streamlined all of that a year ago and your timing was remarkable Robbie because you've managed to avoid many of the supply chain issues that are disrupting many other businesses. Tell us a little bit about what you did Because of the acquisition of garden. There was a lot of complexity. The important thing is we're embarking on a supply chain transformation. We're calling that the Avid initiative and which is all about the metamorphosis and we're going from 23 supply chains to one integrated Newell supply chain. So we're going to a distribution network that will remarkably improve customer service and instead of several supply chains get into one and that I think will help us in the long term. So it sounds like you made business a lot easier for your customers. So what's the feedback that you're getting from? Some of your biggest customers, like walmart and Amazon and Costco? They're very happy with that. Newell historically was not the easiest company to do business with. We have worked with our customers uh in lockstep to drive of it and uh they are very supportive that it is one Newell as opposed to eight separate business units with 23 supply chains. This is going to make are on time fill levels and our customer service levels being in stock in their stores far better, which they are very happy with. So let me pick up on that, Are you saying that these retailers will be fully stocked with your Newell brand products for holiday shoppers? We're still having the supply challenges because About 40% of our goods are sourced from Asia and we are having similar issues to others in the companies in terms of ocean freight, truck driver shortage, labor shortage, etc. So, but we're doing our best because we have improved, we have tried to build up inventories on the fastest selling items. We have improved wages for increased significantly wages for our frontline employees so that our factories are humming? So we're doing our best but we'll still have challenges because we're going through Like everyone in the industry difficult time. Well given that you still have some of these constraints, what is your take on 2022 when it comes to the business environment and consumer attitudes about spending On the positive side? I think the economy will be quite strong in the U. S. In particular on the consumer attitude side I think there will be two things that will shape it. one is homer sahab trends will continue to persist because of hybrid working models. On the other hand, I think with rising inflation and a lot of companies taking price increases there will be more sensitivity on that Voters in 2022. But the key for us is making sure that we come across with our brands as the best value. So innovation will be quite critical uh in that regard. Our turnaround has helped us prepare for a lot of different contingencies. We've improved our supply chain, we've talked about transforming our supply chain. These issues will persist. But I think the important thing is since we've committed so much to innovation and to have superior products that are great value that allows us To really be confident because this is our third year of the turnaround and we think that 22 will be a good year. What about the omicron variant, there are a lot of scary headlines that are coming out every single day. What are you expecting and how are you preparing for it? I think number one is attitude lee not to sort of assume that we're just going to go back to a pre covid world. There is a new normal, there will be new variants and not to look at the world through rose colored glasses but to be constantly prepared. So we're still taking precautions were very strongly encouraging our employees to get vaccinated because we think vaccination is still the best protection against the coronavirus regardless of variants. So we're still practicing social distancing. So we're taking all the precautions and being prepared because I think there's still uncertainty. We're still going to come up with an optimized hybrid working model for employees in office based situations and in our factories. We have already put in a lot of safety protocols and we're going to continue to work on those Robbie. Let's talk a little bit about leadership and the lessons that you've learned during your long career. I hear that you always start with a listening tour when you get in a situation that it's a turnaround. Why is this such an important first step? I firmly believe Susie that the answers lie with your employees, your customers, your investors. You need to be willing to listen a lot of times. People have the ideas. You've got to go deep within your organizations and learn what's on people's mind and that gives you a blueprint for the future. You know, when you first arrived at Newell, the company was still adjusting to that big merger with Garden that you talked about a moment ago and there was low employee morale. What would you say was the key thing that you did to unify everyone From day one from my very first town hall. It was about transparency. Tell it like it is rather than sounding like a corporate chill and in my town hall, I acknowledged the issues that had gone on in the past and then said that the number one priority would be people first and that our actions and words have really proven that out. The second was establishing this whole thing about a noble purpose and that each one of us unified would be able to take the company towards the noble purpose of really having iconic brands that delight consumers in the sense of creating moments of joy and peace of mind. This became a unifying theme for our employees. You know, Robbie, you always talk about the importance of bringing out the best in people. How have you learned over the years? The best way to do that you have to commit and really believe that you are in service of your employees, your customers and consumers be a servant leader. Second, really look at bringing out diverse voices. Making sure that you don't surround yourself with people who are just like you, but also give people a chance. You may not agree with everything, but make sure the voices are heard and make sure that included. That creates a sense of belonging. And make sure you have a dialogue with your employees. I right to my employees. I tell them right to me, and I personally write to them. This creates a feeling that you're not in an ivory tower, that you're a leader who cares and builds affinity with all the employee base.