mathew thompson adding value through the supply chain: the missing link?
TRANSCRIPT
Mathew Thompson
Adding Value through the Supply Chain:
The Missing Link?
Content
•Globalisation and Traceability
•Importance of Effective Supply
•Effective Technology
The times are a changing - and the pace of that change is very fast, so unless you are growing with it, it is unlikely you will
survive
Globalisation & Traceability
… is giving “inter-dependence”and “inter-connectiveness”
Market Potential
Perishable Products- cost of production remains consistent- opportunity to supply is variable
Therefore failure to supply results inlost revenue
CONSUMER
RETAILER RETAILER RETAILER RETAILER
M M M M M M M M M M M M
ING ING INGING
IP IP IP IPIP
F F F F F FF F F F F FF F F F F FF F F F FF
Failure of Effective Supply
- Dioxin Incident
- Sudan I Dye
- Foot & Mouth
- BSE
Importance of Effective Supply
Analysis of the Existing Supply
ChainMissing Link
Importance of Effective Supply
Importance of Effective Supply
Importance of Effective Supply
Market Surveillance
• Assess QA Product on the Market
• Feedback Reports to Source
• Specific Product and Supply Chain Trials Run
• Same Day Response•Problems Identified
• Quick and Accurate
• Supported the Diary System
•Laboratory Test Confirmation
Typical Problems Identified
Market Surveillance
Flowers on the Island
Growers storage
Flowers transported to UK depot
Flowers are transported to market
Flowers are sorted against invoice (and conveyed to Wholesaler)
Collate Orders
Product Displayed
Stock take of Product
Additional Product Storage
Retailer / Customer
20 Days Shelf Life
17 Days Shelf Life
15 Days Shelf Life
13 Days Shelf Life
FactorsTime
TemperatureHandling
Pest & DiseaseWater QualityStem Quality
ScoreModellingATP Work
Market Information Feedback Loop
Importance of Effective Supply
Success of Effective Supply
- Market Economics
- Supply & Demand Matched
- Improved Quality
- Increased Knowledge
- Use of Feedback Information
- Ability to Trace
Importance of Effective Supply
Business Impact
Example of Supply and Demand Information
QA Product Non QA Product
Product Price Range (£)
Assumed Avg. Price
Price Range (£)
Assumed Average Price
Increase for QA
Price Benefit Opportunity
Lo Hi (£) Lo Hi (£) % (£)
50 - 60 cm Roses 1.25 1.75 1.50 0.80 1.25 1.025 46.3 0.475
Freesia 1.75 2.50 2.125 0.75 1.50 1.125 88.9 1.00
40 cm + Freesia 0.35 0.40 0.375 0.25 0.30 0.275 36.4 0.10
Spray Carnations 0.75 0.75 0.75 0.50 0.75 0.625 20.0 0.125
Importance of Effective Supply
Supply Relationships between Various
Types of Food Businesses
Food processor / manufacturer
Source Auction Hall
Customer “Seller”
Importance of Effective Supply
Reducing the Risk
Risk Management& HACCP
Raw MaterialMonitoring
ProcessImprovement
In-processAutomatic Inspection
ProductInnovation
ProcessInnovation
To Leap-Frog Risks
How Technology May Help
Benefits - Information Service Design
Precise
Accurate
Reliable
Timely
Information
Audit System
Telesales
DiaryDesign Decision
How Technology May Help
The Philosophy
“…have we done all we can…”
If something goes wrong, are we sure that we can identify all affected product?
“…to become price makers
rather than price takers.”
• Ensure business opportunities are market led
• Strategically Drive Up Sale Price
• Promote the Identity of Quality Assured Product
• Improve Product Returns for the Chain
• Improve Strategy for Supply and Demand Picture
• Market Knowledge
Prove you have “controlled it”
Conclusions