Henkel has officially opened its global supply chain hub in Singapore. This is a major milestone which follows the successful set-up of the company’s global supply chain headquarters in Amsterdam. Working closely together, the two hubs in Amsterdam and Singapore will steer Henkel’s strategic initiative to consolidate all its supply chains company-wide around the world.
A single global supply chain is a key initiative of Henkel‘s strategic priority to continuously simplify the organization in order to drive operational excellence and build a scalable business model, increasing Henkel’s competitiveness in terms of speed, agility and efficiency. As such, the initiative will be a key driver for realizing the company’s vision to be ‘a global leader in brands and technologies’.
The global hubs will centrally manage the purchasing, production and logistics processes of Henkel’s three business units – Adhesive Technologies, Beauty Care and Laundry & Home Care. The effort spans across supply planning, sourcing, manufacturing, inventory and distribution. This harmonization across the entire company will lead to higher process standardization, improved customer service levels and enhanced efficiency.
Bertrand Conquéret, Corporate Senior Vice President of Global Purchasing at Henkel, said, “Together, the Amsterdam and Singapore global supply chain hubs will steer Henkel’s biggest initiative in business transformation. Singapore was selected for its excellent logistics capabilities, availability of supply chain talent and geographical location in the heart of Asia, which is a key growth market for Henkel.”
Singapore also serves as a conduit to the trade routes that extend to India and the Middle East and Africa region. Both Singapore and Amsterdam are amongst the largest sea ports and logistics centres in the world. With their strategic locations, the two global hubs are well-positioned to manage the supply chains that connect all our markets globally.
Notably, the new global supply chain hub builds upon the success of Henkel Singapore, which was established in 1983 and serves as a strategic business and technical services sub-regional hub for the company’s adhesive and beauty care businesses in Southeast Asia.
Thomas Holenia, Managing Director of the global supply chain hub in Singapore and President of Henkel Singapore, said, “Our successful business presence here of more than 30 years and the global supply chain hub provide a strong foundation for developing Singapore into a global centre of excellence for Henkel – through the implementation of best practices in supply chain management, sustainability, digitalization and talent management.”
In terms of sustainability, the Singapore hub is partnering with suppliers and business partners to continually improve the sustainability impact across the entire value chain.
Digitalization is a key component of the global supply chain hub, enabling the standardization and harmonization of data and processes across the businesses and functions. It creates transparency on the vast amount of data on customers, products, raw materials and logistics. This improves the exchange of knowledge significantly, brings consistency in customer service and enables managers to make informed decisions faster resulting in quality processes across markets.
With a corporate culture that strongly promotes diversity and inclusion, the global supply chain hub currently employs an international and cross-functional team of more than 14 nationalities. In the global supply chain hub, employees from purchasing, supply chain, operations and IT collaborate with other departments as an integrated team on a common agenda. As a result, the team is able to harness the diversity of knowledge, insights and experiences to deliver best solutions.
In its ramp-up phase, the global hub is in the process of hiring new graduates and experienced managers. It is working closely with the National University of Singapore and Nanyang Technological University to identify local talents who have a global mind-set and strong leadership skills. With an inclusive corporate culture and attractive career development opportunities, Henkel aims to be an employer of choice.
Chan Ih-Ming, Director of Consumer Businesses for the Singapore Economic Development Board (EDB), said, “Henkel’s decision to house one of its two global supply chain bases in Singapore marks a significant milestone in the Henkel-Singapore partnership. Henkel’s expansion in Singapore is testament to our strategic position as a key supply chain control tower for both Asia and the world. This investment also builds on the growing community of German companies – both Mittelstand and multi-national companies – that are using Singapore as a business hub for the region.
“The EDB will accelerate our work with companies to equip the Singapore workforce with the right capabilities to seize the exciting professional opportunities in the logistics industry, such as those created to enable Henkel’s sustainable supply chain.”
Dr Steffen Koch, Acting Head of Mission of the German Embassy in Singapore, congratulated Henkel on choosing the city-state to base its global supply chain hub, and said, “Singapore’s prime geo-economic location at the core of the dynamically developing Asia, its business-friendliness as well as its highly efficient ports and airport make it an ideal choice for all kinds of logistical operations.”
Dr Tim Philippi, Executive Director of the Singaporean-German Chamber of Industry and Commerce (SGC) congratulated Henkel on opening the new global supply chain hub in Singapore, which is a highly desired location in Southeast Asia for its favourable business environment. “The SGC is tasked to promote bilateral business relations between Singapore and Germany and as a chamber, we welcome companies such as Henkel as they contribute towards the bilateral relations between our two nations.”