Dive Brief:

• Tupperware announced a new vice president of supply chain to help the company optimize operations and reduce costs as it struggles to turn around declining sales.
• Jim Van Ingen will serve as the company’s executive vice president of supply chain, according to a July press release. Van Ingen will work to introduce new efficiencies to Tupperware operations and lead the manufacturing, procurement and distribution teams to reduce costs in areas including resins and logistics.
• Van Ingen was previously president of the automotive powertrain components at Novares Group, an automotive components manufacturer based in France. Tupperware President and CEO Miguel Fernandez said in a statement Van Ingen’s "ability to build high-performing supply chain teams around the world will be an especially valuable asset to our rapidly evolving company.”

Dive Insight:

Tupperware is securing supply chain expertise as it works to pull off a three-year turnaround plan and offset declining sales. Net sales declined 14% this quarter compared to last year, CFO and COO Mariela Matute said on a Q2 earnings call.

The home products maker is moving away from its direct selling model in favor of omnichannel services with the aim of expanding its customer reach. 

“We are investing ahead of expected growth to open new channels and distribution… and to attract new talent that can help us successfully take the Tupperware brand to all consumers wherever they shop,” Fernandez said on the call.

Lower sales come as the company grapples with higher costs of raw materials and transportation. In Q2, the price of resin increased between 9% and 13%, with freight and distribution costs rising “in a similar fashion,” according to Matute.

Other retailers have also worked to diversify their services. Walmart set the bar in 2019 when it restructured leadership and merged its supply chain team to create a “seamless omnidirectional experience” in response to consumer demand.

However, for Tupperware, expanding service channels is less of a choice.

“This investment ahead of growth is common, but for us, it’s necessary,” Fernandez said.