Why Sustainability is Central to Novelis’ Supply Chain Transformation

— Utilizing o9’s AI solution, Novelis is revolutionizing its supply chain, balancing centralization and user adoption, while prioritizing sustainability and continuous transformation in its global operations.

The following are the main takeaways from Roland Leder’s session at aim10x live London.

End-to-End Supply Chain Integration:

Novelis is committed to integrating its supply chain across ten production facilities in Europe to optimize operations and drive efficiency. The integration process involves adopting a master supply chain planning approach that focuses on coordinating production across the facilities. The journey, which spans approximately three to three and a half years, aims to enhance asset utilization, reduce inventory levels, and promote sustainability through increased recycling content.

Importance of Recycling and Sustainability:

Roland emphasized Novelis’ unwavering commitment to sustainability and the significant benefits of recycling aluminum. By optimizing the use of recycled material, the company reduces energy consumption, contributing to a more circular economy. This sustainable approach drives the company’s overall supply chain goals and aligns with their vision for a greener future.

Balancing Centralization and User Adoption:

The discussion highlighted the critical need to strike a balance between centralization and user adoption to ensure successful implementations. Novelis formed a central “Supply Chain Innovation” team, combining in-depth knowledge with a strong focus on innovation. This approach prevents potential pitfalls such as low user adoption, while maintaining a seamless implementation process that addresses daily challenges.

Focusing on Transformation:

Roland stressed the importance of viewing supply chain initiatives as transformative endeavors rather than mere improvements. Setting ambitious targets and being transparent about progress are vital to drive meaningful change. Novelis’ leadership prioritizes supply chain transformation over other projects, creating a focused effort that permeates the entire organization. By embracing transformation, Novelis can unlock greater benefits and achieve higher margins.

Lessons Learned and Potential Improvements:

Reflecting on their experiences, Roland shared valuable insights and potential areas for improvement. He suggested that real-time data exchange directly with ERP systems might have been more effective than working with a data lake, as it would eliminate delays and streamline processes. Additionally, clearly defining the system’s capabilities and limitations and communicating these expectations to stakeholders is crucial for a successful implementation.