Home: Issue 6 2008 › A catalyst for change
A catalyst for change
01/12/2008 | Channel: Manufacturing, Business
With its products used in 130 countries, Novozymes’ bio-innovations improve industrial performance on a massive scale and safeguard the world’s resources
As a biotech-based company, Novozymes is the world’s largest producer of industrial enzymes and micro-organisms, boasting a market share of approximately 46 per cent and 50 per cent respectively. The company’s products are used in more than 40 different industries to improve industrial processes and quality, as well as save water, energy, raw materials and waste. Its technology has numerous applications and is employed in such diverse product areas as detergent, animal feed, leather and alcoholic beverages.
Elaborating further on this diversity, supply chain operations director Karl Poulsen says: “Novozymes is a biotech company offering sustainable solutions ranging from enzymes producing bio-ethanol to detergents, to enzymes for feed, and further into the food sector with products such as juice, wine and bread. We cover all aspects of industries, supplying the big detergent producers in the world, such as Proctor & Gamble and Unilever. Another large market is feed products, where we have an alliance with DSM Nutritional Products.”
It is partly through these relationships with renowned firms that Novozymes has been able to cement its market position. More important though is the company’s dedication to delivering inventive solutions and technologies. Reflecting on Novozyme’s strengths, Karl says: “We have reached our position of world market leader in enzymes because the entire company has an innovative culture; this is seen in our products, which we develop with new applications that have never before been seen. We spend a very large proportion of our profits reinvesting in R&D.”
The company invests considerable resources in the logistical side of its business as well, to the extent that Novozymes was recognised with an award for supply chain excellence in the consumer-manufacturing sector last year. Winning the accolade was the culmination of an 18-month improvement programme that focused on enhancing Novozymes’ lean operation and its philosophy of lean thinking. Speaking about this success, Karl comments: “There was a major revamp of every aspect; establishing a lean programme, investing in new equipment, integrating with customers and getting some decent reductions on inventories. Having undertaken this work for the past few years, we are transferring our focus to a global strategy for our supply chain, which will support the overall business objectives of Novozymes that relate to our ability to handle our growth rate. We recognise the need for a much
higher degree of agility, adaptability and flexibility within our supply chain.”
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Further explaining the organisation’s approach, he continues: “Part of our overall strategy is collaboration, so we are concentrating on our suppliers and customers. We have a firm belief in long-term relationships. The sustainability element is also key – we want to work with companies that behave ethically whilst being as innovative as we are. This allows us to jointly work on improving our products and services.“
New technology has gone some way towards improving Novozymes’ supply chain already as the company is working on one total ERP system that is functioning extremely well. “We’ve supplemented that with some other modules for creating visibility and ensuring performance management, so we’re using state-of-the-art IT,” Karl adds.
Besides making improvements that enhance the profitability and running of its business, Novozymes treats ethical conduct as an integral element in each of its activities by considering human capital and environmental impact. “These are equally important,” Karl asserts. “We actively monitor and take all three elements into account. We have been monitoring our carbon dioxide emissions for a number of years and submit those records alongside our financial statements. We have more or less achieved our aim of being carbon neutral by 2012 – whenever we set out to achieve something, we get there – and we’re capable of producing greater volumes of enzymes with less total energy consumption. Our key strength is our ability to develop our products, whilst having a strong environmental focus.”
The company envisages a future where its biological solutions create the necessary balance between better businesses, a cleaner environment and improved lives. In order to achieve this, the organisation plans a significant expansion of the market for industrial biotechnology, with enzymes and micro-organisms as its basis. It also aims to find new and improved solutions to serve the market for biopharmaceuticals, and achieve double-digit growth with a leadership position in all its markets.
Summing up the business’ future plans, Karl concludes: “The current recession means that everybody is hurt to some degree but the last year has been very busy for us, so we have enjoyed respectable growth rates. I believe this will continue in the future. In terms of improving our supply chain, we’re looking into our global sales and operations planning processes. Having a high growth rate means we need to be able to manage our global capacities to a higher degree than we have in our traditional regional set ups.”
Novozymes
Employees: 2500 in Denmark
Industry: Biotech
Elaborating further on this diversity, supply chain operations director Karl Poulsen says: “Novozymes is a biotech company offering sustainable solutions ranging from enzymes producing bio-ethanol to detergents, to enzymes for feed, and further into the food sector with products such as juice, wine and bread. We cover all aspects of industries, supplying the big detergent producers in the world, such as Proctor & Gamble and Unilever. Another large market is feed products, where we have an alliance with DSM Nutritional Products.”
It is partly through these relationships with renowned firms that Novozymes has been able to cement its market position. More important though is the company’s dedication to delivering inventive solutions and technologies. Reflecting on Novozyme’s strengths, Karl says: “We have reached our position of world market leader in enzymes because the entire company has an innovative culture; this is seen in our products, which we develop with new applications that have never before been seen. We spend a very large proportion of our profits reinvesting in R&D.”
The company invests considerable resources in the logistical side of its business as well, to the extent that Novozymes was recognised with an award for supply chain excellence in the consumer-manufacturing sector last year. Winning the accolade was the culmination of an 18-month improvement programme that focused on enhancing Novozymes’ lean operation and its philosophy of lean thinking. Speaking about this success, Karl comments: “There was a major revamp of every aspect; establishing a lean programme, investing in new equipment, integrating with customers and getting some decent reductions on inventories. Having undertaken this work for the past few years, we are transferring our focus to a global strategy for our supply chain, which will support the overall business objectives of Novozymes that relate to our ability to handle our growth rate. We recognise the need for a much
higher degree of agility, adaptability and flexibility within our supply chain.”
')";>')";>
Further explaining the organisation’s approach, he continues: “Part of our overall strategy is collaboration, so we are concentrating on our suppliers and customers. We have a firm belief in long-term relationships. The sustainability element is also key – we want to work with companies that behave ethically whilst being as innovative as we are. This allows us to jointly work on improving our products and services.“
New technology has gone some way towards improving Novozymes’ supply chain already as the company is working on one total ERP system that is functioning extremely well. “We’ve supplemented that with some other modules for creating visibility and ensuring performance management, so we’re using state-of-the-art IT,” Karl adds.
Besides making improvements that enhance the profitability and running of its business, Novozymes treats ethical conduct as an integral element in each of its activities by considering human capital and environmental impact. “These are equally important,” Karl asserts. “We actively monitor and take all three elements into account. We have been monitoring our carbon dioxide emissions for a number of years and submit those records alongside our financial statements. We have more or less achieved our aim of being carbon neutral by 2012 – whenever we set out to achieve something, we get there – and we’re capable of producing greater volumes of enzymes with less total energy consumption. Our key strength is our ability to develop our products, whilst having a strong environmental focus.”
The company envisages a future where its biological solutions create the necessary balance between better businesses, a cleaner environment and improved lives. In order to achieve this, the organisation plans a significant expansion of the market for industrial biotechnology, with enzymes and micro-organisms as its basis. It also aims to find new and improved solutions to serve the market for biopharmaceuticals, and achieve double-digit growth with a leadership position in all its markets.
Summing up the business’ future plans, Karl concludes: “The current recession means that everybody is hurt to some degree but the last year has been very busy for us, so we have enjoyed respectable growth rates. I believe this will continue in the future. In terms of improving our supply chain, we’re looking into our global sales and operations planning processes. Having a high growth rate means we need to be able to manage our global capacities to a higher degree than we have in our traditional regional set ups.”
Novozymes
Employees: 2500 in Denmark
Industry: Biotech