May 24, 2020

Deglobalization in Corporate Supply Chains? – with Jimmy Anklesaria

Show Notes

Supply Chain has never been more talked about, as the pandemic strains the availability of goods and services & the ability of companies to secure raw materials and components.

Today we have Jimmy Anklesaria, Supply Chain Pioneer, Tech Founder, Professor, Author and Philanthropist, joining us on Things Have Changed, and we dive into his beginnings in the field, his varied larger than life consulting experiences during the heydays at HP, IBM and others, as well as his passion for giving back be it through teaching or through philanthropy.

We dive into what the future of supply chains would look like, with trends such as de-globalization gathering steam, as multi national corporations aim to de-risk their supply lines.
One of the biggest trends in the field has been Big Data, with Jimmy elucidating an incredible example of how Flex, is able to manage its supply chain using a sophisticated in-house intelligence platform, Pulse which provides deep insight and visibility into its supplier operations.

About -
Jimmy Anklesaria, is the Founder & Chairman of the Anklesaria Group, a Cost Management and Supply Chain Consulting firm which for over 30 years has consulted with & guided some of the biggest companies in the world such as HP, IBM, Chevron & Shell to name a few.

Jimmy has also authored books such as "Supply Chain Cost Management: The AIM & DRIVE Process for Achieving Extraordinary Results" & "Zero Base Pricing: Achieving World-Class Competitiveness Through Reduced All-In-Costs."  

Over the past three decades, as an Adjunct Professor at UC San Diego & University of San Diego, Jimmy Anklesaria has taught graduate and undergraduate level courses in strategic cost management, finance, investments and supply chain management.


Jimmy Anklesaria [00:00:01] Treat your critical suppliers as well, if not better than you treat your best customers. Collaboration is the name of the game. And ever since then, for 30 years now, that's been my mantra. Collaboration trumps confrontation. 

Shikher Bhandary [00:00:18] That was supply chain pioneer, tech founder and philanthropist Jimmy Anklesaria Jimmy is the founder of the Anklesaria group, a cost management and supply chain consulting firm, which for over three decades has consulted with and guided some of the biggest companies in the world. Jimmy is also an adjunct professor at the UCSD Rady School of Management. Believe it or not, Jimmy and I went to the same high school, St. Joseph's in Bangalore, India. Listen to our insightful conversation into the origins, present and future of the supply chain. 

Jimmy Anklesaria [00:01:32] Well, I mean, it's been quite a journey, as you correctly introduced, that I grew up in Bangalore, went to St. Joseph's, both school and college and academically. You know, I was at the St. Joseph's College of Commerce. So that sort of navigated me into the world of chartered accountant, kind of grew up in a family. We are passes by ethnic background and community. So very entrepreneurial and very charitable. There's a saying posse. Thy name is charity. So I grew up in that environment of the the Catholic school, the policy community. Clearly, I think that framed the person I am today. And I guess I got thrown into a family business, which at that time it was almost embarrassing to tell people that you're in the liquor business. So in school, hardly anybody knew that in college, everybody knew it because right across the road, across the wall from St Joseph's College on Brigade Road, Bangalore was one of our Oreck shops. And everyone was like, Hey, dude, can you get it for free? So, yeah, we you know, in the 1970s when I was a college student in direct business was one of the most profitable businesses you can imagine. Very few people knew it, but that was the introduction to the supply chain that I didn't even know. We were the ones who ran the arrack business with a bunch of partners. But then the partners in general, you know, each one had their own claim to fame. Between us, we control the entire supply chain fabric. I didn't realize it at that time that it would be my future. But from the distillery where we distilled the sugar molasses into our it, put it into tankers and we owned the trucks and we then owned the bottling plant where it was a manufacturing facility and making about seven hundred and fifty thousand to a million barrels a day from one hundred to seven fifty mill. So we had a supply chain of bottles and labels and fireproof caps and we had capital equipment. And then every day we we sent out the bottles to two hundred and ten bars and our shops in the city of Bangalore. And, you know, it was a pretty much end to end. So that's how I grew up, you know, in a very, very business community, business world. And life was great. And then in the early 80s, I was given this opportunity to go study anywhere. And I came to the United States and I landed up at the University of San Diego. So that's the turning point. And not only the University of San Diego, but then meeting someone as a professor. And I think that's the message I'd like to send to your audience, which is opportunity strikes in various forms. And in some cases, you are so oblivious to the fact opportunities staring you in the face and you don't take it. In my case, you know, so I always thought two years, I have some fun, go back and get deep rooted back into the world of Iraq. So I took a course in marketing, ironically, from a professor, David Burke, and I felt very strange that this was a marketing class. But every opportunity we had Dr. Birdwood debate and get into what he called the mirror image of marketing, which is procurement. So I remember saying once they said, excuse me, doctor, but forgive me for being so forward here, but what the heck is procurement? Why do we have to discuss procurement in an MBA course, which is supposed to be strategic? So right after class, he said that Jimmy come to my office and my first thought was, oh, wow. You know, I had grown up in a Jesuit school. And when you were ever called to the office of the principal's office, they usually took out a cane and whacked you. My initial thought was, oh, my gosh, this is America. I don't think they do that. But nevertheless, I very sheepishly went to the office and he asked me to come in. He started asking me why did I comment in class that procurement was a low level, nonstrategic type activity? And I said, well, work quite honestly. You know, I've grown up in a world that I've had experiences from the distilleries to the bottling plants and banks and newspaper and non-profits, et cetera. I said so many different companies where I've been and I've never met any of the procurement guys. Procurement is usually in those days it wasn't even procurement, it was purchasing. He gave me a pen and he said, Jimmy, in one of these marker pens and he said, Go to the buy. In his office and he said, you're a chartered accountant, so, you know, 

Jimmy Anklesaria [00:06:35] the accounting and the income statement and stuff, and he said, take any company from any industry, any manufacturing company from any industry of yours, and write down the five lines, you know, what we call the industry profile material, labor overhead, general expenses, profit. Just write those five and and give us the percentages. So, you know, I was like, oh, jeez, man, this is like a silly quiz. So I scribbled some some garbage on the top and I said, OK, typically about 60 cents on every dollar is paid to material suppliers. About five cents is labor. About fifteen cents is what we call, you know, manufacturing overhead. That takes us to about 80 and then Gisenyi or general selling administrative corporate expenses, 15 and profit five. And that's equal to 100 big. So he said, go ahead, Jimmy, take another color. What is this, you know, in some kindergarten using different colors and stuff. So he said take a different color. And next to your list, write down how much of this 100 percent for every revenue dollar, what percentage is spent on third party. So what is spent on the third parties? I added it up and it was 70. By the time I finished writing that, I realized what he was about to tell me and he did. And the light went on in my head, oh my gosh, if you think of it and in this hypothetical scenario, I had a profit of five dollars or five percent. And he said, just imagine if it was one hundred million dollar company, 70 million dollars is spent on third parties and your profit is five. If you were able to put a good process, good people and were able to save 10 percent of what you spend on third party with no strategy, no analytics, nothing, 10 percent of Seventy-Seven, you add the seven to the five, you've increased the profit. One hundred and forty percent. The light went on in my head and I said to myself, wow, opportunity stares you in the face. I said to doctor, but I said, you know, doctor, but you really struck home. I want to read every book of yours. I want you to kind of mentor me and tell me more about this purchasing and procurement and stuff. And the more I read it was all about sourcing and selecting supplies, etc.. Just great. Absolutely fantastic. But there was no analytics. I said, you know, we should really start working on analytics. And he said, let's make time for you to say this, because he had been talking with a gentleman named Warren Nordquist, who was at that time the head of procurement at Polaroid Corporation. And Warren had come up with this thing called zero based pricing. It was basically a way of rather than take a supply price and negotiate down, you build a cost model. But they didn't have the real analytics. The thought was there. So the three of us combined and said, you know, let's let's write a book. And Jimmy can bring his accounting background and David Birch's professorial and academic theory and Warren, the guy who lives it every day. And, you know, I was so excited. I'm going to be an author of a book. And and this is a totally new life and I can actually make a difference. So I I kind of became Dr. Burt's sidekick, if we can, you know, go in and buy companies. Well, there's a great opportunity to train people who do not have these analytical backgrounds and to bring in people, etc. And that's what got me into this world of teaching people some of the tools, helping them apply those tools. And, you know, 30 some years later, here I am supposedly in the having made a difference. So I guess that's a long way, long way from a chartered accountant from Bangalore, India in our business to transforming some of the biggest and best companies in the world. Actually, Nokia at its heyday, which was a few years ago at forty one percent market share. And in fact, I worked with Nokia for about 12 years, and they had a slogan from my program called Knowing Doing Being. My focus has always been don't just write a book, teach people so they know, work shoulder to shoulder. So they do. And then, yes, give them a little kool aid because it's got to become part of their DNA. So part of my life has also been motivating companies to do what I call the right thing, stop taking suppliers and beating them up and stuff. It's all about collaboration. So. So here we are. 

Shikher Bhandary [00:11:25] Yeah. You mentioned this briefly, Jimmy. You mentioned manufacturers. Taking suppliers for granted and it being more a collaboration and I guess competition, can you dove in a bit more into that, just how it was in the early days like, say, in the 90s and how your frameworks have actually helped create a better collaborative environment? 

Jimmy Anklesaria [00:11:51] Sure. Well, I mean, first of all, it hasn't really changed totally, OK. There has been a tremendous dent. But I would definitely not be honest if I said, you know, we've managed to change the world. We haven't. But if I go back to the 80s, yes, it was extremely confrontational. There was no except for a few maybe Honda or Harley Davidson and others. But by and large, it was. And the buyer I have the power and particularly I dealt with the big guys, you know, they just beat the crap out of suppliers. And I felt, No. One, you can do all the analytics, but there's always people who make a difference in your life. So zero based pricing was also initially a little bit confrontational in the sense that you were taking your cost models, your data, and using that in a pretty aggressive way to tell the supplier there's no way you could charge a hundred dollars for this widget. It should be sixty two dollars because it should cost. So it was still rather confrontational. And, you know, my whole point was I'm going to give the buyers of the world the data, the ability to get that data, the ability to put it into a model and and go after the suppliers with a toolkit of knowledge. I think my change came around in about nineteen ninety nineteen ninety. I had the I get a life changing experience of meeting what I think would be another mentor in my life. The late Gene Rickter. Was the head of procurement at HP. And I got the opportunity to and I was only thirty three years old when I made a presentation somewhere in the Bay Area. And I remember the guy coming up to me and saying, Wow, you've got to meet my boss, Jean Richter, because you're speaking exactly his language. And so I got invited to HP in nineteen ninety Jun and. I made a presentation there and Gene and I got very close. He was the veteran and I was this little kid, but he gave me the opportunity literally to write the book for HP. As part of that, I had another unbelievable experience of running into the great Dell Hewlett Packard. I just ran into these two gentlemen and it was so amazing because I'm not very shy. I walked right up to them and like, oh, my gosh, you know, to be in the same room, they were they were just two individuals waiting for the elevator. No security, nothing. I walked right up. And of course, this was pre 9/11. So I guess things were different. And I got I got to the to say hello. And, you know, they just such a wonderful human being. Stick out their hand. Hi, I'm Dave Packet. I'm Bill Hewlett. And I'm like, oh, yeah, I'm sorry. You know, I'm shivering. 

Jimmy Anklesaria [00:14:53] And and it was so wonderful. You know, they said, Jimmy, thank you for all you do for HP. And I thought, oh, boy, this is a line they give everybody, you know, and I said, Sorry sir, I don't work for HP. And they said, Oh no, we know that you've done a lot with the procurement guys. We've heard about you from Jean Richter and Bill Kate and Bill was Jeanne Richter's boss. And I thought, wow, unbelievable. So so I got invited to literally to a coffee shop and for a late supper. And I even remember I had French fries and ice cream and they laugh their heads off because I had French fries and Ice said. But at that meeting I learned so much. And this was Dave Packard, if I can remember the two of them. This so profound in their statements. The fact that said, Jimmy, you're going around the world of HP, you're going to fifty five different HP divisions. Would you do us a favor, please? Wow, sure. I'm being asked for a favor. And they said when you when you go to these different HP locations, would you tell those procurement guys that a dissatisfied customer of HP can cause financial harm? You know, when we don't want to see a major customer of us get upset with HP but will survive, a dissatisfied, critical supplier can shut us down tomorrow. So so please tell those procurement guys who always think of beating the crap out of suppliers. Treat your critical suppliers as well, if not better than you treat your best customer. To me, that was a changing moment. I was like, you know, that's why these guys are so great. They're not even procurement people. They just got to keep our business going. Suppliers are an extension of our manufacturing facilities. We could manufacture things themselves. They are big enough. They could buy a supplier if needed. But when you partner with a supplier, especially in a world of technology, a dissatisfied supplier, well, one, if they control a certain technology, they could choose to give it to your competitor before they give it to you and you lose the technological advantage. Or if there's a shortage of supply, they could give it to your competitor before they give you anything. Or maybe you get nothing and it shuts your plant. The collaboration is the name of the game. And ever since then, for thirty years now, that's been my mantra. Collaboration trumps confrontation. 

Jed Tabernero [00:17:20] That's awesome. Thank you for sharing that story, by the way. That's really sick. But you were able to go around and educate other HP employees, especially the procurement officers, about this operation. I was wondering, like, what does it look like to really build that relationships? How do you foster the relationships to become something that, you know, they'll back you versus your competitor? 

Jimmy Anklesaria [00:17:41] What does that really interesting? Yeah, so that's that's a very good question and I always highlight to people relationships between people, not between companies. So this is something we took even further. So when Gene Richter left HP in 1994, went over to IBM, we pretty much were reworking let's be honest, we took the HP cookie cutter model and we started doing at IBM. But IBM's culture was very different from HP. HP was a typical Silicon Valley jeans and sneakers and very informal technology driven company, IBM. The old IBM was the suit and tie and very formal, very, very arrogant. IBM, as would be the first to admit, you know, when we began our journey at IBM, I was literally standing in line at one of the conferences that we had at IBM. I was in line with Gene at the buffet and we were chatting about precisely the question you asked, you know, what should we do to get IBM in procurement, particularly to treat the suppliers the way we managed to do it at HP, the Dave Packard way. And I told Gene, I said, Gene, you're going to have to literally lay down the rule. So he said, well, Tony, you know, what would you do? I said, gee, the first thing you need to do to build a relationship is to treat someone the way you'd like to be treated. It's so basic. If I were to go back to the Packard, treat your critical supplies like you treat your best customers. So I said, how do you think IBM's sales or HP sales would treat their best customers? And I'm not IBM or HP sales guy, but I tell you, if I had my way, how I would treat my best customer. He said, what would you do? I said, very basic. There some rules when our suppliers come for a meeting to say Soma's or Armonk or, you know, Poughkeepsie, that the IBM headquarters were in the New York area. And I said, you know, most of them are Japanese, Taiwanese, Koreans, Chinese suppliers. Protocol is very important to them. I said, you know, instead of doing the typical old IBM. Send them a message. The meeting will be in building to launch at 9:00 a.m., and maybe you're lucky they'll send you you'll send a map, right? Instead of that, why doesn't someone from IBM procurement team go to the airport and meet them when they arrive on the flight, bring them to the hotel, then the next morning, instead of giving them a map, pick them up at the hotel, drive them into IDM, make sure all the badges is ready so they don't waste half an hour filling in forms. Take them to the meeting room, make sure that someone from IBM, a senior most person on campus that day, drops in for even five minutes and says, thank you for all you do for IBM is my business card. Let me know if there's anything I can do, etc., etc. and let the meeting continue. And at the end of the day, and I think this is something I really got carried away, I said at the end of the day, you know, instead of saying, OK, see you tomorrow or have a safe flight back, you know, try to arrange something like you would do for your best customer. You know, it doesn't have to be a fancy dinner. I mean, I've spent 30 some years being the so-called not celebrity, but someone that they want to take out and and impress. And I tell my wife, you know, they take me to all these fancy places. I think it's more for them. I'd rather go to Panda Express, but but find out what they like. And in many cases, sometimes even today, the memories are not about the ones who have taken me to a five hundred dollar per person dinner, the ones I remember would be in the Quad Cities, in the Midwest, asleep. Friends of John Deere took me home to meet his wife and his kids, take that personal relationship and convert it into the business relationship. Now, if you're taking someone home for dinner or gone to a place, you'd be surprised. You know, your listeners would be surprised. Some Japanese suppliers, if you ask them what do they really want to do and took the time to listen, they want to go to Costco or and this was, of course, some years back, or in some cases they want to go watch high school or a college basketball game. But if you bothered to learn about them, learn about their family, learn about their children, that's where relationships are made. Now, if there was a shortage, you will call Kumagai son and say, hey, there's a shortage. Can you help me? And by the way, that's because you've talked about his family, his children, et cetera, et cetera. And he'll be saying, oh, gee, son, how is Zubin doing? You know? And they talk about so that's how relationships are made. And I cannot overemphasize how important it is to make relationships. Now, those things are the same not only in a procurement world, it's in anything. So today, if I want to raise funds for my beloved school or my children's school or anything else, I just pick up the phone and call somebody. And invariably that person remembers. They've had dinner at my house. They've met my family, they've seen my dog, and the bond just fires up. And so now when you ask for a hundred thousand or a million dollars, I mean, it's like, how can you say no to Jimmy? 

Adrian Grobelny [00:23:11] That's awesome. I want to say I can't agree more with you, Jimmy, on how important relationship building is in business, and especially Supply-Chain, because you're working with all these different vendors, all these different suppliers for different products. It's essential you have to be mutually beneficial to each other and you have to be pleasantly working with each other, because if you are there and you can depend on the other person and they can do the same with you, then it just makes the business way more streamlined and smoother. And so I wanted to transition into learning about supply chain, how it was in the 90s. So how has supply chain evolved and what kind of trends do you see companies benefiting or struggling with the change in technology currently? 

Jimmy Anklesaria [00:23:58] Oh, absolutely. So in the nineteen eighties it was all about purchasing with a little bit of strategy coming in in the 90s. And I'd say I'll give credit to Gene Richter for that. He changed it at Black and Decker, Ford, HP and IBM where he really got the visibility, where for the first time you had someone call the chief procurement officer, sea level officer, and now it's it's become commonplace. But that was the time. And maybe it was partly because I was involved in a book like zero based pricing where the purchasing procurement world started getting a little bit more involved early in the design stages, unheard of in the past. You would never, ever imagine engineers being a major part of the procurement function. In fact, I even wrote an article way back in the nineteen eighties about and the article was about the importance of the purchasing engineering interface. So it started evolving that old mentality of you take an admin who has worked for you for twenty five years and you make him or her a purchasing agent. They would call these people a bias that evolved to a procurement professional, some better than others, where we were attracting engineers so that you would have what we call procurement engineers who work with the procurement people, work with the suppliers early in the design stage. That was a that was a huge evolution in the 1990s. Then came the data boom. And suddenly now, thanks to the Internet data was available, so research so suddenly now you find people entering procurement, where in my own case I would look for people who had research capabilities. So we started finding PhDs who were taken into procurement roles once they had subject matter knowledge and so that they would add authority, but more importantly, that they could do research so they could do market research, they could understand the supply market, they could do financial analysis. And that listing and that was my whole dream when I wrote the zero based pricing and later on supply chain cost management. It is to elevate these people in the procurement supply chain somewhere around the tables in the world's supply chain. Kaiman, which was great because now it went belly beyond just buying from supplier A, you were looking all the way up the first, second, third, fourth year suppliers. We started getting into things like conflict minerals ET, where the law demanded that we tracked who was supplying three, four or five levels up the supply chain. But it also started getting customer focused as we got into the mid to late 2008. Data analytics started putting its head up today. Quite honestly, data, big data is more important than anything else in the world for the procurement function. They just want the data. It's all about speed, speed up information. I'll give you an example. It just shows where technology has taken us into genuine world class. A dear friend of mine I've known for over twenty five years, Thomlinson, whom I consider one of the greatest procurement people after Jean Tom had a really illustrious career from IBM to a junior Freescale Semiconductors, LG Electronics, and he retired last year from Fleck's, which used to be called Flextronics, and narrate a story that will tell you where this world of supply chain has evolved with intelligence. So a few years ago, you probably remember there was a major explosion in Tianjin, China. OK, now I won't go to the greatest of details here. It'll take a little while. But to give you in a nutshell what happened, it took about twenty six minutes for Reuters to pick up the story. Put it on the wire. CNN picks it up. Breaking news. Twenty six minutes. What happened at Fleck's during those twenty six minutes? Thanks to the technology that they implemented, they've got something called the Pulse Center, which is something like The Situation Room. If you were to put it into the political world in twenty six minutes, the people at the Pulse Center at Fleck's and Thomlinson would get this on an app in his pocket if he wanted in twenty six minutes. This is what they did. They found out where this incident is taking place. What was the area that was devastated or affected? Which of the select suppliers had a plant or any kind of, you know, warehouse in that area? What part numbers came out of that with the alternative suppliers for those spot numbers, which of the hundreds of flat sites around the world use those spots? What was the current level of inventory at those places? Which areas where they're likely to be in shortfall? Who could they buy from all of this? Found out, contacted or displaced? Most importantly, before any of that happened, we knew exactly which Fleck's employees were there. Get them out of there. So American Express was told there are seven people from our Silicon Valley offices who are currently in Tianjin, identified them. Chicca just had coffee at Starbucks in Tianjin. So he's certainly there to get him out of there. So we took care of the people. We took care of the inventory. We took care of the alternate suppliers orders replaced before it was even announced. Now, that speed and what it did for Flex was it cornered the market. They had all that stock before everyone else started buying 500 to 600 percent premiums to get their product. Wow. So that's just one example. Just one example. And it could go on and on. So technology today is playing an unbelievable role. Unbelievable. And it can only get better not because I tell my students I tell the professionals that you've got to keep up, otherwise you're not going to have a job. So start figuring out what you can do. And I strongly advise those in the MBA world, you know, get into data analytics, get into AI and things like that. There's a whole new market which we haven't even touched. 

Shikher Bhandary [00:30:33] And Jimmy just wanted to, like you mentioned, how Global Flex was in this whole pursuit of figuring out which part numbers might be affected. Who were the employees, customers who are out there during such an event now fast forwarding a bit in the current state with how supply chains have come to focus the lockdown. Did localization might be a possibility where people would want to source locally a bit more than have outside vendors? Do you see something like that playing out, considering how global the whole economy is? I mean, my cell phone has gotten like a million parts from a million different places in the world. You think that's a viable future? Holding back on the global stage, 

Jimmy Anklesaria [00:31:23] you're using the future tense? I use the past tense. That's already been happening. OK, so this is something this is a movement that started a few years ago called the resourcing. And we had this outsourcing and it kind of went a little bit to the extreme where strategy was not looked at. It was pure labor arbitrage. Labor arbitrage is over, you know, today if you take the total cost of ownership. Of components that are going over the oceans back and forth before it's finally into an assembly and then assembled in some places like China and brought over here. The cost is now almost equalized. The labor content is getting smaller and smaller and smaller as robotics and automation take over. So the machine that you buy from Siemens and they don't give China a 90 percent discount for the equipment. So equipment is going to be the same regardless of where you buy it. And it's the labor content that gets squeezed out. So so that resourcing had already started. But this has brought it to the limelight. And this is something again, the supply chains have already taken this into consideration way before covid. So up. What companies have started doing is you don't do the same thing that we did before, outsource everything to China. Similarly, you don't lift everything and bring it back. There has to be a strategy that says I've got to de risk my supply chain. It has nothing to do with politics. This is pure risk management. And you could have a single source. Nothing wrong with that. There's nothing wrong with having a single source. But you want a single source who has multiple locations, as you cannot be dependent on one source in one country at one location. So that's with or without a virus. So suppliers are now being invited to say, look, if the majority of our demand is in the United States, a significant portion of that demand should be manufactured in the United States, not for any vindictiveness against another country, but pure good supply chain. It doesn't have to be like the old days where it's literally next door. It could be in Mexico, but at the same time, you don't lift up the entire manufacturing and bringing it back because much of our customers would be in China, Taiwan. You know, it makes no difference. We've got the plan in such a way that we have manufacturing and logistics capabilities in and around the area of our major customers. Now, the thing is, it could be seventy five percent of the demand. It could be a hundred percent of the demand. But to have zero is extremely risky. To have zero supply and everything dependent on another part of the world is extremely risky. 

Jed Tabernero [00:34:20] I guess there's a risk practice being born into procurement as well. Now, I was just curious, like, I know that you had done business with these people, helping them develop their procurement office and their strategy towards that. So included in your consulting, do you also suggest for them to create supply chain lines? So, for example, if they've been taking one hundred percent of their supply chain coming from, let's say, China, you come in as as a consultant, do you suggest for them to develop other supply chains elsewhere so that they could risk that? I'm just wondering how that practice works, because I imagine it would start at something like that before they go into operation. 

Jimmy Anklesaria [00:35:00] Great question. Yeah. So I think everybody's heard a lot of what we call SRM supplier relationship management. What what I proposed and I've been preaching this for 30 years, in addition to supplier relationship, there should be a supplier development program and I wouldn't for a moment claim claim any of this as my own. I learned this from the old Honda story. And to give you that story in a nutshell, Honda, if you remember and of course, this goes back to the late 60s, early 70s, Honda did not manufacture cars, OK? Honda was known initially as just a motor company, and that's why it's still called on the motor company. And Honda made motors. Then they realized that if you put a chassis in a couple of handles, a couple of wheels, four wheels, that you can make a little lawnmower. And then you could they started baking in the 60s, the Honda motorcycle. And they really wanted to build a motor car, but the Japanese Kerissa, which is so strong that Toyotas and Mazuz and, you know, Nissans and others use their influence with the Japanese ministry to block Honda. But Mr. Honda, once he became a very dominant in the motorcycle business, he was very, very, very keen on building a motor car. And once he was powerful enough himself, he said, you know, with or without you, we're going to build a motor car. And the Koritha pretty much boycotted Honda. I mean, they were they were squeezed by companies like Toyota and others who said to all the suppliers who provide everything from motor car, from, you know, anything from chassis to, you know, drivetrain to tires to electronics, you shall not supply Honda. And if you do, you will you won't supply to any of us. So all the suppliers were pretty loyal. And Mr. Honda was still very I guess he's a very stubborn guy. And from the as the story goes, he called all the motorcycle suppliers and he said, we're going to build the best motor car in the world in 15 years. We're going to be number one. And he asked them, if you build carburetors for my motorcycle, why can't you build carburetors for a motorcar? And we'll help you. We'll help you build a new factory. We have to we will put Honda engineers to work with you guys. The bottom line is, 15 years later, almost to the day, 15 years later, the JD Powers automobile of the year was the Honda. Acura and Acura held that for about three years in a row. So this is a signal and that's what we did at HP and other places, work with suppliers. We created new suppliers by telling them we'll share our technology, et cetera, will help build use of developing suppliers. Became a really big deal and the best in class today in the world. They have structured supply development programs where they literally build supplies from a small little factory to multi billions of dollars. Harley Davidson is the ultimate example of the supplier relationship and supplier development, and in that case, loyalty grew to such a level. And I'm not saying for a moment that I would do that. But there are suppliers who have Harley-Davidson captains that, well, you know, 

Adrian Grobelny [00:38:25] so. So how many tattoos do you have, Jimmy? 

Jimmy Anklesaria [00:38:29] Zero zero. I like to say that that's a brilliant idea. Yeah. No, I always joke there's a limit to which there's a limit to which I would go. And at Nokia, the ultimate thing was to go to the sauna together with a supplier. And I'm like, I'm not sure I'm ready for this level. And not only go to a sauna and sit in a sauna with a whole bunch of your customers and other members of your team. But every few minutes to jump out in freezing weather, jump into a freezing water and then run back in after that. But but no. But coming back in a supplier relationship supply development, fantastic data analytics has made this such an exciting professional. 

Adrian Grobelny [00:39:20] I bet Jed, Shikher and I are a lot younger and we never got to see the growth and development of Honda, but we are seeing other current companies coming to light. One thing I can think of is actually Hyundai in the early 2000s was just a really new, fresh Korean company. And now they are building luxury cars through their brand Genesis. I think that's fantastic. Parallel to the Honda. Fantastic. So I wanted to move into your experience as a professor at UCSD and what that's like. How have you applied all of these frameworks, your understanding of supply chain, your extensive experience working with different companies into the classroom? 

Jimmy Anklesaria [00:40:05] First of all, you know, when people called me a college professor, it's it's an honor, but that's not my job. Going back to my history, he had a nineteen eighty five when Dr. but had convinced me that this was a new profession and given this opportunity to to write the book. But I had to keep occupied doing that. I couldn't just stay here writing a book. So I started teaching before I started teaching at the University of San Diego from nineteen eighty five to twenty five. That's 20 years. And that's when I spent time with Dr. Byrd. But one of the conditions was you can't take money for teaching. So so I was doing it more like a little bit of philanthropy, giving my time instead in my teaching, first of all, it's the greatest thing in the world. I mean, I wouldn't like to say this too publicly, but I would pay to be heard because I got so much I want to share and I'm so excited. But teaching for me has always been something where I feel you've got to give back. It's more philanthropy than anything else. I felt, you know, what I need to do is to bring real life into the classroom. And that's that's what I've done for now. It's nearly thirty five years since I taught my first class. So for my students, it's all about the real world. The Rady School of Management was started and I had the opportunity to do a guest lecture to the very first cohort. So I've been involved with the UK's Radio School of Management since inception and I look at it as a startup. So I've been part of a startup in the founding Dean Bob Sullivan, develop this whichever way there was no big academic committee. So I got a chance to put my own stamp on the program for the supply chain side. And a couple of years ago, my wife and I decided to do an endowed chair for the supply chain side. And part of the part of the expectation is that I get to start an institute, which we did call the Institute of Supply Excellence and Innovation. And there again, back to relationships when we formed the board. What what better than the friends? I call them friends, not customers of mine from some of the biggest and best companies in the world, from IBM to the former HP people and Hershey's and Dell and you name it, you know, Betty and JLL. I mean, I'm probably missing a whole bunch of people, but these are all my friends and they're all part of the board. So the whole program is being built by industry stalwarts. So rather than have university develop a course with a lot of academia behind it, but no real practical application, we teach courses from Lockshin to Supply-Chain Technologies to supply market analysis, financial stuff. My own classes is clearly not the typical run of the mill procurement in a business analytics. And so I'm really thrilled right now. This isn't about the best position I could be in. That's where my retirement shall be. So students get an opportunity at all our classes, every class of mine. I reserve a section where people like Thomlinson or, you know, maybe Susanna's you from Gucci's. Someone calls in and we have a Zoome guest speaker every single class. And I think that's an opportunity that we didn't have when we were going to college. 

Jed Tabernero [00:43:34] How do you keep up with with getting your students informed about these these new technologies? Of course, you're you're practicing this stuff every day. So probably a lot of the cases that you get to your students are stuff that you work on in in that class area group. Is that is that some some of the material that you use for the class? 

Jimmy Anklesaria [00:43:52] Partly, yes. But also, as I said earlier, I've been very fortunate because of my friends who are now in high places and some of the other companies on my board that I didn't get a chance to mention include things like FedEx, Facebook, Salesforce. So a lot of their examples. And part of what we try to do, especially in my classes, you know, depending on the number of students, we break them into groups of three or four. So I could have about eight, eight teams. And the biggest part of that grade is a project where they apply what they learn to something that is needed out there, an industry. So they could be working on a project for Facebook or for Nordstrom or for Bush. So they get to interface with these people. They get to see what technologies those companies are using. The students get the unbelievable opportunity of taking a real world situation and working with it. The companies get the opportunity to see results, I mean, which they would have paid in many cases, tens of thousands, hundreds of thousands of dollars for a consultant to do. And many times the solution that the students come up with with a slight modification saves the customer or the company, the host company here, millions of dollars. And when one of your students becomes the head of supply of a multibillion dollar company and a kind of very casually mentioned her name, Susanna Eisuke, Susanna was in my class around in the late nineties at the University of San Diego. And she was this young woman from China just so eager to learn something. I don't think in her wildest dreams she thought she would be in procurement. But she took my class. She got a. I did about it. We found her a job at again through relationships at  United Technologies. She spent a fabulous few years at UTC, went on to PepsiCo, and then a few years ago, she switched over to Hershey's as the chief procurement officer. And now she's the chief supply officer. And and she was my student just 20, 22 years ago. So I think, you know, that dream of opportunity, as I said, and I started this podcast with that. Opportunity strikes and you've got to take advantage of it. And what I feel I was lucky enough to take advantage was to say, OK, if we don't do it in the private equity world of buying and selling companies, we could do it by upskilling people and providing them a career that would make anyone proud. It's a very satisfying feeling. 

Adrian Grobelny [00:46:34] And talk about adding value and just seeing that value here in different industries, different companies, leaders and procurement. It's it's amazing. I wanted to ask, where do you think you got the most influence to your philanthropic philosophy of giving back? 

Jimmy Anklesaria [00:46:50] There's no question it's my family and it's my community, the policy community. So we've always had that sort of, you know, policy. Thy name is charity. As I was growing up, as I said, family wise, we did a lot of charity. When I graduated from high school, St. Joseph's, I jumped straight into the alumni association. And so that gave me something which was defined by me, not by the rest of my family. And I could give a little bit of money to begin with. Later in life, I was able to do a little bit more. But philanthropy has always been something. It's magical, the pleasure I get to 

Jimmy Anklesaria [00:47:29] make a difference in someone else's life. It's undescribable. And at the end of the day, if you can even change one human being, one human being, we've had a chance to do it many times. But if we can change one human being, I think you can step back and say all the money in the world can't pay you enough for that satisfaction. So philanthropy, I think, is not so much about everyone thinks it's about giving. I think it's about taking and taking, because I'm taking in all these blessings and all these, you know, kind words and watching people succeed. No money can pay for that. So, again, I go back to my family roots and my community and, you know, there you got to pass that on to your kids because, you know, sometimes and I know some of the things you've read, you know, with which I would rather have been anonymous. So this gives me an opportunity to talk to your listeners about giving or giving sake or giving for your name sake. Yeah, and there's a little bit of both. 

Jimmy Anklesaria [00:48:42] There are times when you give anonymously, and that is the most 

Jimmy Anklesaria [00:48:46] noble of all. But there are times that you've got to give and people need to know you've given if the goal is to slip something under the table quietly and just watch how great you've done in terms of philanthropy. Good for you. That's a very noble goal. But if the goal is to spur others to give. No one's going to notice in philanthropy sometimes, you know, you've got to lead by example. The real philanthropy comes when you're always focused on the good outcome. 

Shikher Bhandary [00:49:20] Jimmy just wanted to get an understanding about your new enterprise, Salu Tech and the problem that you're trying to solve and the goal that you guys are trying to achieve being security for us. 

Jimmy Anklesaria [00:49:32] Sure. Thanks for that opportunity. Well, I think having heard my life's story, almost, you would realize that academic institutions, you know, played a major role in some form or the other. And, you know, I've been a student, obviously, I've been on the teaching side. I've been on the board. I've been the chair of a board of independent school out here. I've been a parent of children going to school and colleges, et cetera. And, you know, it struck me that. From every angle, there was a need for some form of safety as a member of the board. We would always question, ah, you know, you know, whether it's a school, university or a school from a risk management, you know, we've got insurances and part of the premium is based on what precautions you've taken in the very unlikely and unfortunate event of someone having a problem. You know, whether it's I hope it's not a shooting, but if it was some sexual assault, harassment, medical emergency, etc., if something happens on your campus, the first thing is, of course, you show your sympathy et for the victim and then the next thing is about you get ready for a lawsuit. Sadly, in this country. So if there was a lawsuit, as you very well know, most lawsuits are settled and the amount of the settlement is dependent on how good or weak your case is. Now, if you showed that you have. Been taking every possible precaution and despite that, the event has taken place. The settlement is going to be pretty low because no judge is going to slap you with a huge penalty or, you know, the jury's not going to hit you with huge damages if you showed good intent. But if you have done nothing. And something happens, and you saw that 20 years ago, you have the situation and since then you've done nothing about it. So this was an accident waiting to happen again and it happened. Now you're in real trouble as a parent. Obviously, your heart's in your mouth when you send your children off to school, especially when you have daughters. You know, the percentage of students. It's it's it's mind boggling. The percentage of students at universities who have been sexually assaulted, not not the ones that you hear about, the ones that you don't hear about is mind blowing up. You can't stop everything, but you can at least save one person's life. So what I thought of, you know, that maybe I was watching TV and I found this lady on the ground, you know, life like Albi fallen. And we've got to have some signaling, some alert thing. And I said she had talked with one of my fellow parents of robotics team of our children's school, and he had just left Qualcomm. He had about 100 some patterns behind his name and stuff. And I mentioned the to said, oh, yeah, we can do this and we can do that. And before you know it, we will be developing an app and funded it a little bit to get going. And now suddenly we've got an app, we've got an actual device because an app is a, you know, by definition using your cell phone. And what if you are in a position where you're a twenty two year old girl on campus and someone's behaving inappropriately or stalking you? It's very difficult for you to pull out your phone, take a you know, open up the app, etc. So up and cellular may not work or your Bluetooth may not be on. So we have I gave you the open part of it. The proprietary part of it is we've got a device that is not Bluetooth based. It is what we call an LP man, both wide area network, pretty much a Iot device. So we put our own network on a campus. So it's pretty much the insurance policy in case your mobile phone is not available or not not accessible, etc.. And so we built that and then realized why do we restrict only to a campus? There are so many other places and now it's it's unimaginable. We can do this in hotels and casinos and this and that. And it's it's really become a very, very wide market. And we're still very, very much in our infancy. We haven't even gone to the first series. We're we're still at a seed level, but we're up and running. And unfortunately, covid pushed us back a little bit. Everything's shut down. And but but they so let's cross our fingers and hope this is successful. And I made a personal commitment that should we do well in this anything that that I make out of this will go to charity. So we're back to philanthropy again. 

Shikher Bhandary [00:54:33] That's incredible to me. Seems like he has this, like, really energized your entrepreneurial spirit that you fully embraced in the 80s and the 90s and the 2000s. And here you are in 2020. Back at it with. 

Jimmy Anklesaria [00:54:51] Yeah, I don't think I don't think my wife would like to hear that. 

Shikher Bhandary [00:54:55] But we could take the sport out of the season. 

Jimmy Anklesaria [00:55:00] Now, she she like me. She'd like me to just retire and, you know, have fun. But but no, this is fantastic. And as I said, you know, it's it's it's going to be worth it even if we save one person's life. 

Shikher Bhandary [00:55:15] Absolutely. On that note, it's been such an incredible conversation. We've learned so much and hopefully we can share this to so many people all across the world. Thanks for listening to things have changed.