global mega-trends and implications for food supply...
TRANSCRIPT
www.cranfield.ac.uk/som
Global Mega-Trends and implications for Food Supply Chains
Dr. Denyse Julien
Wednesday 23rd November 2016
Welcome to
Cranfield
We are creating leaders
in technology and
management
We unlock the potential of people
and organisations by partnering
with business and governments to
deliver transformational research,
postgraduate education and
professional development.
We are an exclusively postgraduate
university located at the heart of the UK.
• Voted Number 1 outside of USA for expertise and
education in Supply Chain Management
• 35+ years experience as a leading provider of
transformational education and research
• All of our programmes are designed to deliver
practical education that helps managers (current &
future) progress
• Our goal is to help business unlock value across their
supply chains
Centre for Logistics and Supply Chain Management at Cranfield
Global Trends – Impact on your supply chain
Risk
Opportunity
• Business needs to consider
the 3 dimensions when
making decisions about the
SC strategy
• They are all important to the
long term sustainability of
your business
• Numerous examples of
companies being vilified for
issues on the people or
planet dimension
Triple Bottom Line Paradigm
Damaging the
BRAND
• SC Risk & mitigation strategies
• Location of your suppliers
• Long-term Food security and Securing your supply
• Have you considered the impact of your upstream
suppliers on the environment, biodiversity…
Potential Impacts of Mega-Trends on your SCs
Global Warming
Major climatic events
• Collaborating on logistics with others
• Last mile delivery to consumers
• Physical network structure - Hubs
• On-shelf availability & Store Deliveries
• Vertical/Urban Farming
• Incentivising people to stay on the farms
Potential Impacts of Mega-Trends on your SCs
Air Pollution & Urbanisation
Restrictions on transport
• Food Fraud
• Alternative sources of supply
• R&D to develop better water Mgmt systems &
resistant crops
Potential Impacts of Mega-Trends on your SCs
Water Stress
Failed Harvests
• Need to produce more & reduce waste
• Innovation in products, processes & SCs
• Vertical/Urban farms in cities (subways)
• Growth in # of short SCs
• New direct to Consumer offers/channels
• Changing retail landscape
Potential Impacts of Mega-Trends on your SCs
Population Growth
Changing Consumer Demands
Potential Impacts of Mega-Trends on your SCs
Aging Population
Obesity/Malnutrition
• New product development
• Customised meals for consumers
• Legislation (e.g. Sugar tax…)
• New routes to market
Other Factors/Drivers of Change
Child Labour
Modern Day Slavery
Bribery
The Internet of Things
The Cloud
Big Data Analytics
Wearable Technology
Collaboration capabilities vital
Collaboration for Sustainability Framework
http://sfcplatform.eu/
Collaboration for Sustainability Framework
3 STAGES & 7 STEPS
Input
Industry Farmer
Trade
Processor
Food
Manu-
facturer
Restaurant
Consumer Retailer
Catering
Pesticides Food Safety Biodiversity Pollution Labour Issues Traceability
Pollution – chemical/pesticides Soil degradation Long term raw material supply Food Security Human Rights Poverty Child Labour Worker health/safety Biodiversity
Sustainable Agriculture Prices/Farmers income Animal Welfare Water Security Sustainable Aquaculture Power/equity of trading relationships Slavery Traceability Food Waste
Human rights Work conditions Corruption/Bribery Animal Welfare Food Waste Traceability
Eco-efficiency/Energy Food & Water security Food safety/Contamination Traceability Emissions (Air & Water) Packaging Waste/Recycling Health & Safety of employees Diversity Long term raw material supply Food Waste Transport
Quality Food safety Traceability Food & Packaging waste Recycling Transport
Food safety Contamination Traceability Fraudulent materials Obesity Nutrition
Health Allergies Responsible marketing Alcohol abuse Advertising to children Food & Packaging waste Recycling Transport
Mapping Your
Supply Chain RISK
Do you know WHICH RISKS have the highest
POTENTIAL IMPACT on your Supply Chain?
The IDENTIFICATION of the
biggest RISKS to a supply chain is
key to understanding where the
supply chain is most VULNERABLE
and can provide a FOCUS for
management to deploy resources
to MITIGATE those risks.
SC Risk Assessment Tool
https://www.som.cranfield.ac.uk/SC-Risk-Tool/
Critical path profile
•Long lead-times e.g. the time taken to replenish components from order to delivery
•A single source of supply with no short-term alternative
•Linkages where ‘visibility’ is poor, i.e. little or no shared information between nodes
•High levels of identifiable risk (i.e. supply, demand, process, control and environmental risks)
• Improve ability to measure supply chain risk and resilience by geography, product line, customer, etc.
•Mean time to recovery
Resilient Supply Chains: Strategic Approaches
The Resilient
Supply Chain
1. Supply Chain
(re)engineering
Supply Chain
Design
Supply Chain
Understanding Supply Base
Strategy
2. Supply Chain
Collaboration
Collaborative
Planning
Supply Chain
Intelligence
3. Supply Chain Risk
Management Culture
4. Agility
Visibility
Velocity
Supply Chain
Continuity Teams
Board level
responsibility &
leadership
Consider risk in
decision making
Source: Adapted from Christopher and Peck (2004) Building the Resilient Supply Chain, The international Journal of Logistics Management, Vol. 15, No. 2
How well prepared is
your Supply Chain to
mitigate the RISKS and
maximise the
OPPORTUNITIES?