Isak Rizell – Published: 2024-10-01
Erik Wendel, Supply Chain Director at Orkla Foods Sweden, has had a fascinating journey. In an interview, he talks about his background as a professional cyclist, his path into business, and his work to improve and manage supply chain processes at one of Sweden’s largest food and beverage companies. Here he shares his insights, challenges and the keys he sees as crucial to success within the company.
The road to Orkla
After four years as a professional cyclist in Italy, Erik returned to Sweden and started studying economics, not really knowing what direction he wanted to take. It was during his studies that he came into contact with Orkla, which kick-started his career with the company. “I was fascinated by the whole supply chain, from raw material to finished product on the shelf,” he explains. After several different roles within Orkla, including internal consultant and factory manager, he is now responsible for seven factories and a large team.
Developments within Orkla – from centralization to decentralization
Orkla has undergone major changes during Erik’s time with the company. He describes a shift from centralization to a more decentralized structure, which he finds both exciting and challenging. “I don’t have a strong opinion on centralization or decentralization. I’m mostly focused on influencing and improving where I am,” Erik says, emphasizing that he is positive about the changes taking place. An important part of this development has been to strengthen the collaboration between different functions within the company, where the supply chain now comes closer to the customer than ever before.
Measuring success – key performance indicators in supply chain
When asked how Erik knows he is doing a good job, he describes the different business objectives and KPIs he is monitored on. “We always have health and safety at the top of the agenda,” he says, explaining that this is the first KPI that is measured. This is followed by quality, delivery reliability and financial KPIs such as fixed costs and conversion costs. “We measure how much it costs to produce one kilogram of our products, making sure we have the right balance between fixed and variable costs,” he explains.
Challenges in a changing world – balancing security of supply and productivity
One of the major challenges in the supply chain is to find the right balance between delivery reliability and productivity, especially at a time when interest rates are high and tying up capital has become a priority. “We work actively to maintain the right level of inventory, both in finished goods and inputs, to avoid tying up capital prematurely,” says Erik. He explains that it is a constant balancing act where the company must ensure that production runs smoothly while avoiding overproducing or having too much in stock.
From Excel to SAP – data management and predictive forecasting
Like many other companies, Orkla has moved from working extensively in Excel to now trying to utilize the business system it has, SAP. “We want to use SAP to manage our forecasts and production plans, but it’s important that we trust the data,” says Erik. The goal is to automate as much as possible, but he emphasizes that human intervention is still needed to verify and double-check figures. Maximizing the value from the system is a work in progress, and the company has recently taken new steps to get the full effect of the SAP solution.
Lessons from professional cycling – mental strength and self-awareness
Erik’s background as a professional cyclist has also given him valuable insights that he has taken into his working life. “Getting to know yourself and being confident in dealing with challenges is something I take with me from cycling,” he says. He emphasizes the importance of mental strength, setting goals and breaking them down, and dealing with adversity. “The season is long, and even if things go badly one day, you always have a chance to come back tomorrow,” says Erik, emphasizing the importance of being your own coach.
Challenges as a factory manager – building a united force
One of the biggest challenges Erik faced during his time at Orkla was when he was factory manager in Eslöv. The factory had major investment needs, and the management team needed to unite to perform at its best. “It was a tough period, but it was also a great opportunity to develop leadership and create a stronger organization,” says Erik. He often reminds himself of a lesson he learned from his boss: “You are not part of the problem, but part of the solution.”
The balance between hard facts and soft values
At the end of the interview, Erik is asked by a previous guest how he views waste in IT systems. Erik replies that although he hasn’t given much thought to the specific question, the company has started to review the use of their systems and licenses to ensure they are getting maximum value. He concludes by reflecting on the balance between working with hard facts while taking into account the soft values: “How do you balance KPIs with human values without being too square or too soft?” is a question he often returns to in his leadership.
Erik Wendel is a person who constantly challenges himself and his team to reach higher, both through improved technology and by developing his employees. His journey from the bike path to the top of Orkla’s leadership shows that both mental strength and technical understanding are important components in creating success in today’s business world.
