Mattel

In discussions with one of my mentors and past supervisors in many years past, we often lamented how the new generation wasn’t prepared for the multiple crises facing us in the supply chain as they haven’t been through the tough times that we have been through. They were frozen and needed help. Often, we discussed we had seen everything and that there was nothing new that we would face. Fast forward to today, as we emerge from the pandemic and unprecedented times, my leadership lessons start with a curiousgrowth mindset. How best can we all prepare for the new era and influence to shape it? I find myself having many more questions than answers, but with confidence in the great team around me to stress test new ideas and concepts that will deliver a better future.

I believe the world is much better than 20 years ago and the gap is closing between the developing and developed worlds. However, with growth and change, there is much more disruption. While our world is big and complex, human progress is still about life at ground zero, up close and in detail. As I’ve traveled the globe, I find local areas dramatically differ from overall country statistics and averages.

The purpose of Logistics exists remains the same, i.e., to get goods to the final destination and provide information that builds confidence in our companies and supply chains by completely answering the internal or external customers’ questions in a manner that builds confidence. The lens and hierarchy of executing this through people, service, cost, and productivity have taken on many new challenges with growth and disruption.

People used to mean safety, training, performance, and engagement. While all these are core, it’s simply not enough in today’s landscape. We focus on culture by relating everyone’s job to a higher purpose and mission. At Mattel, we foster a child’s learning and development by getting toys into the hands of children across the globe. We also care deeply about operating with the highest commitments from a DEI (diversity, equity, and inclusion) perspective. Every role in Mattel Logistics plays an important part in our success in accomplishing the higher purpose and I’m proud to work for a company that makes a difference to our customers, employees, and shareholders through achieving equal pay by gender globally, 2021 Human Rights Best Places to work for LGBTQ equality, and 2021 Forbes Best Employers to Work at.

 Logistics labor shortages across many markets will accelerate technology deployment and it’s exciting to see the amount of investment in our industry. How will these technologies impact logistics work and social order? How will technology, companies, and geopolitics interact to shape our new economy? 75 percent of the world’s population have cell phones, which has made the world a much different place, especially in how we interact in the workplace.

“Service meant On-Time and In Full (OTIF) and rigorously measured every order, every line, and every piece for both On-Time and In Full.”

Service meant On-Time and In Full (OTIF) and rigorously measured every order, every line, and every piece for both On-Time and In Full. We still pay a lot of attention to these and with On-Time measure covering every order for DC dispatch, DC had orders ready at the prescribed pick-ready time. For carrier dispatch, Carrier exited the guard gate at the prescribed dispatch time, and, for customer delivery, goods arrived at the original customer’s promised time. We have also extended this metric to cover merchandise condition (accuracy and damage free) which can vary by customer. There are many unique customer requirements and metrics fororder preparation (ticketing, bagging, labeling, and VAS-valueadded services) that add to Logistics complexity. In addition, the growth of E-Commerce direct-to-consumer (DTC) will add many additional requirements and complexities to your Logistics network. One of the key logistics strategy questions to answer is should you have both B2B and DTC i.e., all channels and brands in a single logistics network. While there are many considerations, the approach is to have great “cost to serve” data to support your overall logistics network strategy.

Service also took on a whole new meaning with supply chain disruptions impacting the international ocean trade during the pandemic. One of the key successes was the ability to find many new ways to flow goods and overcome challenges and constraints. It took advanced teamwork across all the functions in the supply chain working together along with starting a three-year shipper-of-choice strategy before the pandemic to partner with key logistics carriers and partners on best-inclass partnership metrics for equipment turn times, detention, demurrage, volume commitments i.e., do what you say and say what you do. We were able to secure additional capacity during the pandemic based on the credibility and partnerships we formed with our logistics partners. In addition, having endto- end goods flow visibility continues to be a key critical and competitive advantage and requires the best technology, people skills, and processes to ensure goods get to each market to satisfy customer demand OT & IF.

Logistics cost and productivity remain at the forefront of a company’s success. The adage of a dollar saved in logistics falls to the company’s bottom line P & L remains very high in importance. I often use the line “we are in the penny business” and one that I heard for the first time from a successful CEO interviewing me for the next level top global logistics role. I demonstrated during the interview a thorough understanding of logistics costs and a cost-to-serve mindset. Winning at cost and productivity in today’s environment requires logistics leaders to not only understand the details of all cost inputs but can influence and translate across your internal and external organizations. The past two years have ensured that the internal organization understands the inflationary items significantly impacting logistics costs and influencing the overall company’s overall decisions. This will continue to be at the forefront of supply chain performance dominating CEO discussions. With logistics suppliers, it’s ensuring you understand the “should costs” of their business and developing a vested win-win partnership that’s flexible to everyone’s needs. While there is no single, best approach, the 3PL relationships I believe are successful and long-lasting have established levels pre-set for escalation and problem-solving, involve active participation with quarterly reviews, and are open book with high transparency and accountability.

Lastly, it’s about leaving the world a better place and we have organized across 3 ESG pillars; first sustainable design and development of our products to reduce plastic packaging by 25% in 2030, responsible sourcing and production, and thriving and inclusive communities. Especially in Logistics, we have upgraded lighting in our company-owned DCs with the lowest energy consumption at great payback savings, introduced EVs where possible, and expanded our outbound freight networks with our customers. In cases where our customers, have more efficient freight networks, we have negotiated freight collection agreements that significantly reduce energy consumption through more efficient modes of transportation.

As your company transitions to the new era, I hope you are as excited as I am about the roles and contributions you can make as logistics leaders to shape and influence a better world for the next generations to live in!