Global Sourcing Executive

10 minutes with Dirk Kettlewell….Global Sourcing Senior Executive

Quick Bio: Dirk Kettlewell has held a myriad of executive positions beginning with his tenure at OfficeMax, serving as SVP of Omni Channel where he spearheaded the Fortune 500 retailers’ Merchandising, Marketing, Supply Chain,  Global Sourcing, and Private Label Initiatives. Since leaving OfficeMax, Mr. Kettlewell has enjoyed the opportunity to apply his Value Chain learnings (on a project basis) to such retail and e-commerce giants as Walmart, Amazon, Newegg, Staples, Home Shopping, and more….

Question: What is the biggest mistake you see when Retailers roll out a new Private Label Strategy?

Kettlewell:  Many times, new Global Sourcing Initiatives are driven solely by an entity’s desire to increase product margins compared to its current product offerings. In other words, they don’t spend the time to strategically determine what role the Private Label Product will play in the assortment on a go-forward basis.  For example, will the private label offerings replace the entity’s current product assortment or is it designed to complement these current product offerings?        

This is usually the result of a significant disconnect between the entity’s Domestic Buyers and its Direct/Global Sourcing Department.  The underlying issue in many cases is that these two organizations, within the same entity, have competing objectives in which they are measured and ultimately compensated.  

Question:  Would you say that this “Disconnect” is unique to Retailers who are just getting into the Private Label and/or Direct Sourcing Arenas?

Kettlewell:  No, it is by no means unique to these entities.  However, these retailers/etailers tend to have a longer learning curve as they attempt to right the ship.

Question:  How should a Retailer go about “Righting the Ship” as you put it?

Kettlewell: The entity needs to practice effective Category Management.  First of all, someone needs to play Quarterback and be the ultimate decision-maker.  However, this leader cannot make all these decisions in a bubble.  Rather, this individual needs to be very approachable, while soliciting input from every team member and successfully overcoming any cross-functional obstacles along the way.  Once this collaborative process is complete, it’s paramount that this winning Private Label Strategy is clearly communicated to all stakeholders to ensure everyone understands their role in its success.

Furthermore, once the strategy is rolled out, it is imperative for the Category Management Team to analyze each item’s performance and make changes on the fly based on both internal and external factors.  The marketplace is fluid.  Therefore, it is important that an entity’s Private Label Strategy remains fluid in order to seize upon any and all opportunities.  

Question:  You have had an opportunity to work with so many large Retailers in this Global Sourcing and Private Label space over the past 20 years.  How has this space evolved during this period?

Kettlewell:  I will do my best to keep my answer succinct while remaining generic enough to avoid any confidentiality concerns.

The biggest change I have seen is the increased amount of Private Label in all channels.  It’s no longer a scenario where only the biggest and most renown players are pursuing Global Sourcing Initiatives and Private Label Offerings.

Secondly, many more resellers are looking to license name brands to give their private-label offerings more perceived value in the eyes of their target consumers.

Most importantly, the winners in this space consistently look to improve upon their offerings across all aspects of the Value Chain, including Product Quality, Product Design, packaging, in-store presentation, and promotion.    

Question: What do you see yourself doing next from a career standpoint?

Kettlewell:   Over the course of my career, I have had the opportunity to work across all aspects of the Value Chain as a Retailer, Distributor, and Manufacturer.   I believe this experience has provided me with a unique perspective and relevant skillset.  With this in mind, I would be interested in any hands-on leadership role which would allow me the opportunity to leverage my experience from an Omni Channel perspective.