dynamics day '11 - manufacturing and distribution roundtable discussion

Nick Johnson, Sue Driscoll, Tim Schofield, Tony Young

10 August 2011

Manufacturing & Distribution Roundtable Discussion

Manufacturing & Distribution Roundtable

U.S. Food and Drug Administration (FDA) reporting

Good Manufacturing Practices (GMP) requirements

FDA regulation 21 CFR Part 11

European Union Food Traceability

EU Food Traceability Law - Regulation (EC) No. 178/2002 came into force on 1st January 2005

Australasian FMCG supermarkets GS1

Meet tough standards


Regulations and sustainability

Regulations for facilities, packaging, food safety, taxes and

duties, environmental protection, ingredient and nutrition

labelling, employee health and safety…

Buying decisions are increasingly more sustainability-driven

Expand markets and product lines

Targeting niche markets, e.g. cultural/religious needs, or growing

economies, e.g. China and India

Service multiple sales channels

Brand extensions

Driving trends


Partner collaboration

Partnering beyond complying with major customer demand

Joint innovations, e.g. develop custom applications

Supply-chain network collaboration, e.g. supplier replenishment

Consumer demand preferences

Consumers willing to pay premium for safety assurance, health

benefits, eco-friendly practices

Demand changes are volatile, affected by e.g. social trends,

economic downturn

Driving trends


Traceability

Much more than just compliance

Provide consumer assurance toward safety and sustainable

practices

Enable fast and accurate retrieval of information in the case of

product recalls

Driving trends


Suppliers

Distributors operate between manufacturers and customers such as

retailers

Buy, repackage, resell, distribute

Manufacturer subsidiary that only distributes (no manufacturing) in a

specific geography

Distributors Customers


Managing Global Complexity Global sources

Changing costs

Supply chain networks


Managing Business Risks

Customer demand

Increasing compliance

Managing margins

Commodity cost volatility

Economic volatility

Business velocity


Strategies for success

Sustainability for differentiation

and compliance

From traditional efficiency and volume

oriented towards innovation and

responsive operating models

Targeting new market segments

and expanding into new regions

Accelerating pace of

change in regulations,

buying patterns,

customer needs, niche

markets Managing the increasing cost of inputs, e.g. fuel,

commodity goods

Increase collaboration with trading partners

Questions

Thank you

dynamics day '11 - manufacturing and distribution roundtable discussion

Documents