CIO | Jul 30, 2007 8:00 AM PT

RELATED TOPICS

Internet of Things

RFID
COMMENTS
Kimberly-Clark has been around for many years135 to be
exact. And while it may not be a household name, KimberlyClark'sroster of products and brands certainly are: Kleenex,
Scott, Huggies and Pull-Ups, just to name a few. According to the
company, 1.3 billion people use its products every day,
contributing to $16.7 billion in sales last year.

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Behind the nurturing and homey images of those powerhouse
brands is a company with operations in 37 countries and a global
supply chain that enables Kimberly-Clark to sell its wares in 150
countries.
As one of Wal-Marts top suppliers, Kimberly-Clark got onboard
the RFID revolution early and has been one of the technology's
most ardent supporters. Mark Jamison, vice president of
customer supply chain management, talked with CIO Senior
Writer Thomas Wailgum about the companys overall supply

chain strategy, how RFID fits into the mix and how to make RFID
work for the business.
CIO: What's the overall supply chain management strategy at
Kimberly-Clark?
Jamison: Our goal is to evolve the capabilities of our supply
chain to a demand-driven supply network. One of the keys to
achieving that vision is to have a highly integrated suite of supply
chain systems that provide end-to-end visibility and as close to
real-time information as possible.
About four years ago, we started redesigning our supply chain
business processes and integrating our systems to that end. The
first business process we redesigned was forecast-to-stock. We
chose to go with SAP's APO [Advanced Planner and Optimizer]
product, and we finished putting that in the fourth quarter of last
year. Following that was the redesign of our order-to-cash
business processes, and we have chosen an SAP solution for
this system as well.
When we implement our new order-to-cash system, we will have
an integrated suite of systems, and all of our users will be
working with the same information as close to real time as
possible. In addition, we are developing strategies to better
leverage downstream data in our business processes for supply
chain, category management and consumer insights.
CIO: Supply chain integration with other enterprise systems is the
holy grail of making SCM systems pay off. How big a part of your
SCM strategy is focused purely on integration?
Jamison: It was a key driver, but it wasnt the only driver.
Historically, our business processes were managed with what I
described as a patch-quilt of systems. There was a lot of
handing off of information up and down the supply chain. Not
everyone was working with the same informationand not even
close to real-time information. And what that tends to drive in the
supply chain is surprises, variability and waste. We believe that

getting to the end state of high-level integration will allow us to

have a more finite supply chain and also helps to manage that
variability down and helps to take the waste out.
CIO: At Kimberly-Clark, how critical is the management of the
supply chain function for those executives not on the inside? How
much do they care to know about it?
Jamison: Obviously it's critical in many ways, but it is so critical
to working collaboratively with your customers on common
objectives. Supply chains that have the capability to provide high
levels of service for in-stock at retail and on-time delivery, in a
cost-effective manner, can be a competitive advantage that can
be leveraged to help grow the business.
CIO: You mentioned real-time data. There are some potential
downsides to real-time datafor example, making too-quick
decisions based on not fully flushed out supply chain information.
In addition, the term real-time data can mean different things to
different companies. What does real-time data entail at KimberlyClark?
Jamison: [Real-time data] improves your ability to see whats
going on in the marketplace and to understand, in a very timely
manner, whats happening with the promotions, whats happening
with a product in production. And it enables you to respond, from
a supply chain perspective, in a more cost-effective manner, and
in a manner that helps you increase your stock levels and keep
things on the shelf.
Now that doesnt mean to us that we that we need real-time data
at an hour level. But we certainly want to look at it in eight- to 16hour buckets so that we do get a very timely read as to whats
happening in the marketplace. (For more on the risks and
rewards of real-time data in the supply chain, see Managing the
Flow of Real-Time Data.)
CIO: Other supply chain executives that I have spoken with have
told me about the "aha" moment when their supply chain users

finally got the real-time or more up-to-date data they had always
wanted. Did this happen at Kimberly-Clark?
Jamison: It did, when we implemented APO. Now, we won't
realize the full benefit of our integration until our order-to-cash is
fully implemented, which I mentioned earlier. But when we
implemented APO, our production planners saw an immediate
improvement to their ability to service promotions because of
improved visibility to real-time demand information.
CIO: Kimberly-Clark has been a major driver on RFID adoption.
What can you tell me about RFID in 2007 and how you are
currently using the technology?
Jamison: The first thing I would tell you is our strategy around
RFID has been to focus on business processes and develop
repeatable, scalable business processes that are enabled by the
technology. The reason I start out with that is you read today a lot
about whether companies are getting value from RFID. When we
dug deep into those examples, it was because [those companies]
really operated in a slap and ship mode.
The technology in and of itself is not going to bring value to the
supply chain. The value to the supply chain comes from
reengineering your business processes and enabling that new
business processes to work with the technology.
CIO: Can you give an example of where its working now?
Jamison: Our focus is on redesigning business process and
finding a way for the technology to support that process. A
perfect example of that is in what weve done in the area of
promotional execution. We found that only 55 percent of the time
our promotional displays were moving to the floor in time to meet
our promotion, or advertising, dates. And that was missing a real
opportunity to get that product out to our customers along with
our retail partners.

So we redesigned the business process that tracks execution of

our retail displays on sales floors. We developed daily reports,
based on real-time data, and we included our retail operations
people in the process so that on a daily basis we can identify
those stores which have not executed the promotions. The retail
operations people can then be dispatched to go into the stores of
our retail partners, and we can get that display and product
immediately on the floor.
Shortly after we implemented the new process that was enabled
by the technology, we saw our execution of promotional displays
improve from 55 percent to over 75 percent. We also saw a
corresponding increase in point of sale. So while we saw the
execution improve, we also saw sales increase at a
corresponding rate. And I just think thats an excellent example of
how RFID, in combination with redesigning a business process,
can have big effect on the supply chain.
CIO: Is this working for specific products, and what are those?
Jamison: This specific process we have focused on is with the
Depend [adult incontinence] healthcare product. The reason why
this is very critical for us is that we have a first-of-the-month
promotion for that product because thats when many of our
consumers receive their Social Security checks, and we want that
product available when they go shopping.
CIO: Do you think these kinds of examplesthat show real
RFID-enabled resultsis just what the industry needs to keep
the RFID momentum going? Jamison: I think it is, and thats one
of the reasons why Kimberly-Clark is willing to show examples [of
RFID successes]. Because we really believe that for RFID to
work there has to be wide adoption.
CIO: Over the years there has been dissatisfaction with the RFID
tags and read rates of the RFID readerssome products, such
as those that contained liquids or had metal, didnt work so well.
Do you feel now, in 2007, youre getting good returns on

Kimberly-Clarks investment, and are satisfied with the

technology results?
Jamison: Our products are pretty RFIDfriendlylots of bulk
paper products. Our read rates are well over 95 percent, so we
are very comfortable with the accuracy of [our technology]. There
are some products in the marketplace that still are challenging
and are not RFID-friendlymetals and glass and products with
liquids. But Im not a good expert in that area.
CIO: Another challenge been integrating the new RFID data into
enterprises back-end systems. Are you finding that there are
enough software products available to make this work?
Jamison: Yes. In the example of the promotional execution, we
were working with a software provider called Oat Systems. What
they have given us is that supply of information that is actionable.
We dont have to do a lot of data mining ourselves. Were also
working with another company called TrueDemand on
replenishment, so we dont have outof-stock on the shelves.
CIO: The last of the RFID challenges that I have been hearing
about is ensuring that one personor one grouptakes
ownership of the overall RFID implementation, especially
because an RFID program can span so many different functions
from supply chain, to IT, to marketing, to accounting. How have
you dealt with that?
Jamison: We have created two teams at Kimberly-Clark to
develop RFID capabilities. The first is focused on technological
capability such as tag performance and readers. This team is
part of our Process and Technology Development organization.
The second team is focused on utilizing RFID to develop insights
and enhance business processes. This team is part of the
Customer Supply Chain organization and works directly with our
customers to develop these capabilities.
CIO: Has there been any pushback on RFID funding over the
years?

Jamison: Obviously we have to bring a solid business case

forward, but so far weve been successful. And thats because we
are focused on solving business problems and finding real-world
business resultsand that enables us to get money for the
program.
CIO: Are there any other applications of RFID that Kimberly-Clark
is looking at for the future?
Jamison: Another area where were starting to pilot is trailer
management. In our large distribution center, we have some 500
to 700 trailers parked in the yard. Were looking at a process
where we can track the location and the identity of those trailers.
When a trailer comes in the yard, well apply an RFID tag. We
believe well be able to improve the accuracy of information and
cut down on the amount of time it takes to track trailers in our
yard.
In the supply chain, potentially, we could bring RFIDs back into
the manufacturing environments, and trace raw materials. Weve
found that the bigger payback in the short term for us has been
reducing out-of-stocks on the shelf. But we believe there are a lot
more opportunities with RFID.

One of the biggest problems facing marketers today is falling behind the
consumer. The migration away from the interruptive model of communications,
and the evolution into digital technologies and platforms, makes for a very
different marketing game, one in which the consumer is king. Yet, the transition
into a different way of operating has been hard for most marketers.
Despite the growing investment in digital marketing, marketers are still clinging
to methods and models better suited to analog TV advertising.
We dont think in terms of digital marketing, says Clive Sirkin, the chief
marketing officer of Kimberly-Clark KMB +0.37% . We think in terms of marketing
in a digital world.
Most companies and agencies still look for a TV idea, and then, another group
executes the digital. At Kimberly, they are looking for an idea that solves a
business problem regardless of the platform. They have, in fact, changed their
creative brief toward focusing on a solution to a business problem.
Asked how the role of marketers is changing, Sirkin believes that best marketer in
a digital world would be the marketing technologists,
people with heavy digital DNA and technology acumen. Kimberly already
employs a few of them, which it integrates with the marketing groups. The
fundamentals of marketing are always going to be the same, he points out, but its
a question of how one activates the fundamentals; and currently theres a need to
marry understanding of technology to marketing.
While Kimberly-Clarks marketers are undergoing a rapid transformation in
terms of their skill set, many agencies, especially big agencies, are lagging behind
the realities and challenges of the new marketplace. Because they steer away from
specializing, they appeal to the lowest common denominator and they hire
generalists and not tech savvy talent. Another problem is that because of the
holding company structure agencies operate within silod verticals, and the client
has to manage integrated marketing communication. The economics of that
structure are prohibitive for me, says Sirkin. Not unlike most CMOs that I talk

to, he is frustrated by the inability of the holding companies to drive better

collaboration among their agencies.
Kimberly-Clark believes that content creation should be native to the digital
channel that reaches the audience. Which could be a problem. The economics of
marketing in a digital world, if all content has to be native, could be prohibitive.
Sirkin agrees that its a challenge. The single biggest thing that I got to solve, and
which probably a lot of other people havent solved, is how you scale content in
an economic way.
The challenge of transitioning a companys marketing model in an age of vast
proliferation of content is three-fold: improving cycle time, because of the
demands on the approval process; maintaining quality across all the various
content forms; and managing brands in an age in which marketers have less
control over their brands.
That is a challenge because when marketers had control they could manage
brands consistently, but when one has less control, consistency of marketing is
harder to achieve among different platforms.
The reason companies are so slow to adapt to the digital age is that investment in
the status quo is so huge that it is hard to reform organizations that are used to
behaving in a certain way. Even when they see that the world around them is
changing, organizations are invested in the status quo. Sirkin credits the support
that he is getting from his management and the board for his being able to effect
the transformation of marketing at K-C.
Avi Dan is a marketing consultant that specialize in agency search and
compensation, and client/agency relationships

Kimberly-Clark taps
integrated marketing
8 April 2016
SINGAPORE: Brands must not fall into the trap of thinking integrated marketing and digital
marketing are the same thing each requires a different approach, a top regional brand
marketer has said.
Rahul Asthana, Regional Marketing Director for Baby & Child Care, Digital & e-Commerce at
Kimberly-Clark Asia-Pacific, addressed this subject at the Digital Marketing World Forum 2016
in Singapore.
Many brands in Asia are rethinking their marketing strategies as a proliferation of new platforms
and the fast growth of digital requires consistent branding across more touchpoints than ever.
And Asthana stated that integrated marketing which includes both digital and traditional
touchpoints is critical. (For more, including how a campaign combined brand values and
technology, read Warc's report:How 'Huggies Momentcam' changed Kimberly-Clark's
integrated marketing in Asia.)
Asia's marketers should also draw on their own buying experiences to better understand
integrated marketing strategies, Asthana suggested. In 2016, customers research products
across a variety of different mediums, online and offline, and brands must respond accordingly.
Brands should also avoid lumping consumers by age demographics, and target Asia's shoppers
at a much more granular level. "We strongly believe in a customer-centric approach," said
Asthana.
"We really need to understand the customer or the user as an individual. Gone are the days
when we used to define the consumer as a 2545 (demographic) that might be useful in
some context, but you really want to speak to an individual," he said.

Asthana also revealed that CRM is central to the company's marketing efforts, allowing
Kimberly-Clark brands to target shoppers at a one-to-one level and integrate marketing
outreach across multiple platforms in a much more efficient way.
But he added that company culture was crucial. "Are you building a culture where marketing is
different from digital marketing, or where sales is different from marketing?" he asked.