Driving Long-Lasting Value through Openness and Trust

Mondelez recognizes DS Smith as a STAR partner for 39 packaging plants in 17 European countries, enriching a long-term relationship in a way that will drive lasting value.

Mondelez recognizes DS Smith as a STAR partner for 39 packaging plants in 17 European countries, enriching a long-term relationship in a way that will drive lasting value. Deep, enduring relationships built on openness and trust are the ones DS Smith truly value, as global food giant Mondelez International will testify. Its Sustainable Transformational Advantaged Relationships (STAR) program aims to revolutionise the way it does business with its closest partners – those it trust to deliver sustainable continuity and value.

DS Smith were proud and delighted when Mondelez recognized DS Smith Packaging as a Mondelez STAR partner, one of only three around the globe. “Our relationship with Mondelez is something very special,” comments Tony Foster, Sales and Marketing Director of the UK Packaging Division of DS Smith. “The mutual trust that underpins it will allow us to drive long-term advantage.”

“Being awarded with the STAR supplier status is an additional responsibility we should enthusiastically take on-board on our journey to excel our business relations with Mondelez,” shares Stefano Rossi, Divisional CEO DS Smith, and Packaging Division. “It is an important recognition that should make us proud and even more committed to deliver quality products and services, exceeding their expectations, to make sure that all at Mondelez will choose DS Smith, every day, again and again.”

Two firms working together as one

The Mondelez STAR program is aimed at further developing supplier relationships that have already shown themselves to go above and beyond; relationships built on deep-seated trust that have already deemed themselves to be safe and long-lasting.

“Within weeks of the announcement, we were sitting in a room together, sharing important thoughts and ideas,” Foster recalls. “It doesn’t feel like a normal customer-supplier relationship. Everyone is free to challenge without fear, and to share business strategies and confidential information. Sometimes it’s hard to tell who works for which company.”

Open conversations like these lead to innovative projects that are deeper and more far-reaching than those possible within a traditional customer-supplier relationship.

Working together keeps implementation ahead of schedule

DS Smith’s relationship with Mondelez has a long history as a retail-ready packaging supplier to iconic brands such as Cadbury Dairy Milk chocolate in the UK. They have relied on DS Smith’s expertise to advise exactly what sort of protection their products need, taking into account distance and storage when calculating the minimum fibre required to make the pack work. DS Smith’s acquisition of SCA in 2012 gave them the opportunity to capitalise on their excellent relationship with brands like Milka chocolate in Germany and Lu Biscuits in France.

Then in November 2013, now with a footprint across Europe matching Mondelez’s own, DS Smith were thrilled to reach an agreement to become their sole corrugated supplier across the region. The agreement spans 17 countries, with DS Smith’s 39 European packing plants supplying a total of 57 Mondelez factories.

The implementation phase of the five-year contract finalized in August 2014 began early, in April 2014. An 18-month project is in the process of replicating 4,000 retail-ready packaging specifications. Each has to be tried and approved before it can go into live production. Steve Cooper, Mondelez Account Director for DS Smith, is delighted with the progress so far: “Detailed planning and weekly meetings run by senior staff from both organisations mean we are ahead of schedule even though we are just a third of the way through the project.”

Adding value through joint innovation

DS Smith’s unique partnership with Mondelez will only get closer and closer. Becoming more integrated will allow them to grow the partnership and their businesses. As Foster explains, “Through the STAR program we will develop new ways of working, sharing information, investments, and innovations that will not only enhance the Mondelez brand, but also help minimize cost and waste throughout the supply chain.”

As Mondelez’s footprint grows, that growth will also be reflected in DS Smith’s own footprint.

Source: DS Smith