Henkel’s Global Business Solutions: Empowering Talent and Investing in Egypt’s Future
Updated 12/24/2024 8:00:00 AMArab Finance: Henkel's Global Business Solutions (GBS+) network plays a crucial role in the company's global operations, providing essential services and support across various functions.
With over 3,600 skilled professionals operating from key locations, GBS+ acts as a strategic partner, managing processes ranging from finance and HR to IT, logistics, and marketing.
This global network ensures seamless support to more than 75 countries globally, enabling Henkel to optimize operations, deliver innovative solutions, and effectively address the diverse needs of its worldwide business.
In this exclusive interview, we sat down with Roland Haefs, Corporate Vice President of GBS+, and Sherine Alaa, Head of GBS+ Cairo to discuss GBS+ operations. They delve into the strategic importance of this network, with a particular focus on the Cairo center's contributions to Henkel's growth and its impact on the Egyptian market.
1- Could you elaborate on the current size and geographic scope of Henkel’s GBS+ network? What is your vision for this network’s future strategic direction?
Henkel’s GBS+ network currently consists of over 3,600 highly skilled professionals who play a vital role in Henkel’s value chain. Over the past 20 years, GBS+ has evolved from a transactional function into a strategic partner, offering support across all time zones and languages.
Today, GBS+ operates in key locations worldwide, including Manila (Philippines), Bratislava (Slovakia), Mexico City (Mexico), Shanghai (China), and Cairo (Egypt). The organization is structured around specialized teams that manage a diverse range of processes, such as finance, HR, IT, planning, sourcing, production, logistics, marketing, and sales.
This broad expertise enables Henkel to deliver innovative solutions and effectively address the diverse needs of our global operations. Looking forward, our strategic direction will focus further on digital transformation and process optimization.
2- What were the strategic reasons for selecting Egypt as the location for the GBS+ Center? How does the Cairo Center contribute to Henkel’s expansion plans in the Middle East and North Africa region?
Henkel selected Egypt for its GBS+ Center due to several strategic advantages. First, Egypt’s central geographical location enables real-time collaboration with countries across the EMEA region and beyond.
Second, Egypt boasts a highly qualified and multilingual talent pool, which is essential for establishing and operating a successful GBS+ Center. This decision aligns with Henkel's long-term objective to strengthen its presence in Egypt as a key hub for exports—not only for products but also for solutions and services.
The Cairo-based GBS+ Center is a cornerstone of Henkel’s broader strategy to enhance its footprint in the MEA region. It reflects Henkel's vision of building a robust digital presence in the region.
The center plays a pivotal role in strengthening Henkel’s service offerings by advancing our digital capabilities and enabling us to deliver high-impact solutions that cater to diverse market needs.
3- Could you outline GBS+ Cairo’s specific role in supporting Henkel’s global operations and its contribution to the company’s overall business performance?
The GBS+ Center in Cairo supports Henkel’s global operations by driving process optimization and standardization through automation and digital solutions. With over a decade of experience, GBS+ Cairo focuses on adopting higher-value activities that significantly enhance efficiency and effectiveness across the organization.
The center provides a comprehensive range of services, including human resources, accounting and financial analysis, sales order processing, payments, customer service, sales reporting, and marketing support. This diverse service portfolio allows Henkel to streamline operations, improve responsiveness to market demands, and ultimately contribute to enhancing overall business performance.
In recent years, the center expanded its capabilities by incorporating IT and data analytics services. This further strengthens its operational efficiency and ensures Henkel remains competitive in a rapidly evolving market.
Moreover, GBS+ Cairo has expanded its language support from three to eight languages, enabling it to effectively support over 75 countries, broaden its global reach, and reinforce its operational effectiveness.
By leveraging local expertise and innovative practices, GBS+ Cairo contributes to advancing Henkel’s strategic objectives and supporting its global operations. This positions Egypt as a central hub for advanced services and solutions, benefiting not only the Middle East and Africa (MEA) region but also Henkel’s global operations as a whole.
4- How does inflation impact the cost of expanding the GBS+ organization globally?
Inflation presents both challenges and opportunities for Henkel's GBS+ organization. Rising costs in areas such as labor, raw materials, and logistics pose concerns, but they also drive innovation in optimizing operations and enhancing efficiency.
For instance, inflation may accelerate the adoption of automation and AI-driven solutions that help streamline operations and reduce long-term operational costs.
5- How is the Cairo GBS+ Center contributing to the development and upskilling of young Egyptian talent?
The GBS+ Cairo Center is dedicated to developing young Egyptian talent by providing unique opportunities for hands-on experience. We believe that continuous upskilling is crucial for building a skilled workforce and increasing employability.
On-the-job training programs strengthen our employees’ expertise, while job rotation programs broaden their knowledge. From a soft skills perspective, we provide training sessions that equip our team members with essential communication and project management skills.
Additionally, we support university students with programs that prepare them for the job market and internships to provide hands-on work experience.
6- How does the Cairo GBS+ Center integrate sustainability and social responsibility into its operations?
At Henkel, corporate social responsibility (CSR) is central to our purpose. Our CSR initiatives aim to make a lasting positive impact on society through education and community involvement.
At GBS+ Cairo, we have fostered a strong culture of volunteering; each team member contributes an average of 7.5 hours annually, totaling 10,000 volunteer hours over the past decade. This effort highlights Henkel’s commitment to giving back to the communities we serve through meaningful initiatives.
7- How does the GBS+ Center promote women's participation in the workplace? What role does female leadership play?
We actively promote women’s participation at GBS+ Cairo as part of our commitment to diversity and inclusion. Women constitute almost 70% of our total workforce, a testament to our core values.
We believe enhancing women's participation is crucial for achieving balance and inclusivity while fostering innovation. Our female leaders hold more than 65% of our leadership roles, driving operations and promoting collaboration.
8- What is your vision for future expansion of the GBS+ Center in Egypt? What potential do you see in this market?
Since its establishment in 2014, GBS+ Cairo has experienced remarkable expansion, growing from 10 employees to 260. Hence, the number of departments has broadened from one to nine, supporting eight languages, up from three. This progress enables the center to provide services from Egypt to over 75 countries worldwide.
Looking ahead, Henkel remains deeply committed to its long-term strategy for GBS+ Cairo, which continues to serve as a key pillar of the company’s growth regionally and globally.
The center will continue building on its capabilities by investing in new services, digital solutions, and talent while further strengthening its role as a global hub for innovation and technological advancement.
This ongoing development aligns directly with Henkel’s strategic vision to expand its digital footprint, enhance its service offerings, and foster a diverse and inclusive work environment. These efforts back the company’s continued success and leadership in the global market.
Moreover, Egypt's evolving infrastructure and workforce marks an immense potential in tapping into local multilingual skilled talent and fostering a culture of innovation.
By investing in upskilling and training programs, we can cultivate a skilled workforce that meets the evolving demands of both regional and global markets. Our goal is to create more job opportunities and contribute to the economic growth of the region, positioning GBS+ Cairo as a leader in providing high-value services and solutions.
9- Can you share any unique skills or departments at the Cairo GBS+ Center that differentiate it from other GBS+ centers globally?
At GBS+ Cairo, we have the only global digital solutions hub and global survey team across all Henkel locations. This is thanks to the unique skills in the talent pool in Egypt.
Additionally, we differentiate ourselves from other GBS centers in Egypt by having unique departments such as the in-house marketing agency. This supports the business in creating its marketing and communication materials and reduces its reliance on external marketing agencies.
10- What are the key opportunities for foreign companies looking to expand in the Egyptian market?
Egypt offers significant opportunities, driven by the country's growing economy and sectors such as technology and manufacturing. The country’s strategic and central location enables it to cover multiple time zones, facilitating real-time collaboration with countries across the EMEA region and beyond.
Additionally, the presence of a young, dynamic, highly skilled, and multilingual talent pool enables companies to provide their innovative services and solutions to the entire world.
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