DC Velocity - July 2019

Derek Hornsby is a seasoned supply chain professional who has made a specialty of helping retail companies adapt to rapidly shifting market conditions. He spent 11 years at Target, the last seven as director of distribution, as well as six-plus years at Ulta Beauty, where he served as chief supply chain officer. Just recently, Hornsby took on the challenges of grocery retailing, taking over as executive vice president and chief supply chain officer at Giant Eagle, a Pittsburgh-based grocery chain. His areas of responsibility include distribution, transportation, procurement, inventory planning, and fresh-food manufacturing.

Q You have just started a new job as chief supply chain officer for the Giant Eagle grocery chain. What made this position attractive to you?

A First of all, it was a very hard decision to make. Ulta is an absolutely amazing company, and I know it is going to continue to do great things. I could not be prouder of the team we built there, and it was so cool to see one of my direct reports, Elliott Rodgers, named my successor.

Now back to Giant Eagle …. While the dynamics are changing rapidly across all sectors of retail, grocery may be the most challenging. In my discussions with senior leaders at Giant Eagle, it was very apparent that they had a great vision for the future and knew the supply chain was ripe for transformation. I really enjoy building and transforming a business, and it was particularly encouraging to have Laura Karet [Giant Eagle’s CEO] and the rest of the senior leadership all aligned on the need to evolve.

Q Many people feel the grocery market is ripe for change, especially with the growth of e-commerce and home delivery services. How has your experience prepared you to address these challenges?

A When you work in an environment like Ulta’s, where you’re supporting an operation with 60-plus
percent year-over-year e-commerce growth and still
opening 100 stores a year, you learn to be adaptable.
We were able to test a “learn” quickly and put those
“learnings” into action quickly. I think that is what a lot
of grocery retailers are experiencing now as they go from
a case-pick environment to an each-pick environment.
Throw in the grocery business’s low margins, food-safe-
ty considerations, and the requirement for different
temperature zones and it can get a bit intimidating and
lead you to try to do too many things at once. I think the
experience at Ulta of making sure you cover the basics
like inventory accuracy, the right operating model, and
the right network plan before thinking
about where to test innovation will be key.

Q What has been your most satisfying career achievement? A That is an easy one … building great eams and seeing others succeed beyond their perceived potential. I have always benefited by quickly identifying good leadership already in a company and supplementing as needed. I have not seen a company yet that did not have talent in the organization that had untapped potential. You combine that with a few new leaders in key roles, and you can really create something special. I would like to think that was how we built the team at Ulta, and I’m looking forward to seeing what we can do at Giant Eagle.

Q As an experienced supply chain professional, you’ve managed many people in various supply chain roles. What do you look for in the people you choose for your team?

A While every situation is different, I usually look for leaders who have shown the ability to adapt and change their point of view while still relentlessly pursuing the company’s vision. It is tough to be able to live in ambiguity and shifting dynamics while still needing to deliver on your commitments. I also have stolen [Ulta Beauty CEO] Mary Dillon’s list of the three things she expects from her directs. I am paraphrasing a bit, but it is as follows: Bring your functional expertise, take an enterprise view, and lead through collaboration. I think leaders who struggle with changing their thinking or are in it for themselves or their particular function slow down the broader team and limit the possibilities.

Q What advice would you give someone just starting out in the profession? A First of all, I’d tell them it’s a great field to be in, so they made an excellent choice. That said, I would also encourage them to take on assignments in other parts of the organization to give them a broader background. Since supply chain touches just about every part of the organization, serving in different roles will really round out your perspective and make you a more effective supply chain leader.

The time to do that is early in your career if you can. It gets really easy to just focus on progression to the next role. I have leaders who made lateral moves or took on a riskier assignment and have thrived and ultimately gotten farther in their careers than those who took the traditional path.