Episode Details

Welcome to Episode 6 of the Preferred Shares Podcast.

This episode is our first interview with a special guest; friend of the show Warwick from Down Under (Australia). Warwick is a chemical process engineer by training and has worked at some of the world’s most secretive food companies, including Mars and Cargill. We are privileged to share his expertise and stories with you.

“One thing I've learned is the thing that you think is so unlikely that it will never happen, even though the consequences are pretty bad—that's waiting for you next week.” - Warwick from Down Under

In this episode

* (0:02:20) Warwick’s background in the food industry, spanning back more than two decades

* (0:03:04) Warwick’s current role overseeing a plant that processes 400 tons of carrots into carrot juice PER DAY

* (0:03:55) Extreme quality control at Mars is not hyperbole

* (0:05:31) Plant safety, GMP (good manufacturing processes), and what can go terribly wrong

* (0:06:54) Differences between Mars and its publicly-held competitors. The importance of culture, consequences, and morale

* (0:10:13) The shortcomings of business improvement systems (Six Sigma, Lean, etc.)

* (0:13:41) Manufacturers losing technical strength over the last 20 years

* (0:14:31) How the pandemic altered the manufacturing landscape

* (0:20:54) Step changes in process automation, technical debt, and managing key systems

* Siemens and Allen-Bradley (Rockwell) - Automation and digitization

* (0:25:55) Approaching evolving regulation and comparing the Australian system to the United States

* (0:30:02) Quality and consistency problems as a leading indicator prior to major food safety risks

* (0:31:04) The story of when Warwick presented to John Mars, a notably intimidating character

* (0:33:00) Implementing rigorous safety systems and the importance of on-site evaluations

* (0:35:35) Learnings from the Deepwater Horizon disaster

* (0:39:37) Critical inputs - Industrial Staples:

* FUCHS and Klueber - Industrial lubricant oil suppliers

* GEA - Expansive provider of industrial equipment and services

* EcoLab and Diversy - Cleaning chemical suppliers

* Fastenal and Coventry Group - Critical industrial parts distributors

* Spirax-Sarco, TLV, and Armstrong International - Steam equipment suppliers

* (0:48:02) Capital equipment, warranties, maintenance, and the benefits to scaled operators

* (0:54:17) Energy availability vs. post-production transport costs and the formation of geographic moats

Episode resources

* Praise for an Unlikely ‘Whistleblower’, Food Safety News, 9/25/2015

* Workers on Doomed Rig Voiced Concern About Safety, New York Times, 7/21/2010

* EPSC Learning Sheets Booklet, European Process Safety Centre, 2023

* Knowledge, Service, Products, Spirax-Sarco, 2019, Order a free copy of the book!

Additional reading

Along with the resources above relating to episode 3, below are some pieces we’ve written independently that we think you’d like:

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