Organic produce Value Chain Analysis (OF0344)

Growth in the Organic food market has been rapid in recent years. According to the soil association, retail sales of organic food are now worth £1.2 billion – an 11% increase on the previous year. Organic Supply Chains have developed to serve different routes to the consumer. Some chains are simple and involve direct supply to the consumer through, for example, box schemes and farmer’s markets. However in the main greater complexity is involved. Some 75% of organic food is sold through the multiple retailers. Generally speaking, this introduces more stages into the supply chain and as a result there is more complexity. All organic businesses have to be profitable and this requires them to operate efficiently. The Food Chain Centre has undertaken three projects dealing with organic producers supplying through multiple retailers. The projects applied the concept of ‘lean thinking’ and ‘value chain analysis’. The projects were led by the Food Process Innovation Unit, which is part of Cardiff University’s Lean Enterprise Research Centre. The Lean Enterprise Research Centre enjoys a global reputation in the application of lean thinking and their work demonstrates that businesses can use the concept to secure long term competitive advantage. Lean thinking provides a way to do more and more with less and less – less human effort, less equipment, less time, and less space – while coming closer and closer to providing consumers with exactly what they want. In other words, the project focused on removing waste from supply chains and focusing on customer value. This is an established approach based on practices first developed in the Japanese motor industry. Lean thinking has become widespread in UK manufacturing and according to a recent survey by McKinsey it is what sets apart the best performing manufacturers. Many companies that have embraced lean thinking have delivered dramatic improvements over a three year period including: • 90% reduction in defects • 90& reduction in response time to customer orders • 75% reduction in inventory • 50% reduction in space • 50% reduction in variable costs Organic production has some unique features that challenge the lean approach. These include: • The ethical underpinning for many businesses involved in organic production • The highly regulated nature of production that prohibits many practices prevalent in conventional food production • The small scale nature of a substantial part of organic production • The environmental factor – in that organic farming also makes a major contribution to higher levels of bio-diversity and lower levels of pollution The Cardiff team are not typical consultants, neither are they experts in organic production. They are expert facilitators, guiding teams drawn from businesses and helping them to see their supply chains in new light. Each project starts from a recognisable product that consumers purchase. The three projects deal with organic carrots, potatoes and lamb. In each case more than one business is involved in getting the product to market. The project constructed a team with members drawn from each business within the supply chain and support from Cardiff University facilitators to draw a ‘process map’ of the current state of affairs, making sure to capture what is actually happening (‘warts and all’) and not what is supposed to happen. The Cardiff team then helped each project team to investigate issues such as: • Do products flow through the chain as quickly as possible or are there unnecessary hold-ups? • Do some activities add more costs than value? In which case what can be done about it? In particular, are there activities that add absolutely no value to the consumer that can just be eliminated? • Have people learned to live with errors, treating them as inevitable or are they constantly striving to eliminate them? • Are the right quality tests in the right place in the chain and are they working effectively? • Are the right performance measures in place? • When problems are identified, are they traced to their source and dealt with? • Is the right information shared along the chain? • Are there effective ordering and stock holding policies that impose heavy costs on suppliers? The team then created a second map of how they would like the chain to operate in the future. Finally, they draw up an action plan of how to work in partnership to get there. The projects discovered that there were substantial opportunities to transform the profitability of business within the supply chain, whilst maintaining or improving customer value. These improvement opportunities include: • Re-designing the layout of factory and farm • Creating supply chain teams to focus on reducing faults at particular stages of the supply chain • Forums for customers and suppliers to work jointly on improvement projects • Agreeing to exchange information that is currently unavailable in a practical format • Collecting new performance measures and sharing these more widely • Making better use of Information Technology to share information • Working in partnership, to increase long term commitment to supply chain objective

Improving financial flows of a product claims handling process

Paper delivered at the 20th Annual Logistics Research Network Conference, 9th to 11th Sept 2015, Derby

The Lean Concept in the Food Industry: A Case Study of Contract a Manufacturer

The paper discusses how the lean concept could be applied to a food-manufacturing company. The paper first presents the lean concept and value-stream mapping tools. The empirical section discusses how a case company, operating as a contract manufacturer in the food industry, has applied the lean production concept and tools. In the case study, three analysis tools are examined and the structures of demand chains of different customers are presented. The delivery times will decrease and more flexibility will be needed from the contract manufacturer. The case study shows that much movement is possible toward the lean supply chain and partnership-based cooperation. By implementing the lean concept, food companies can increase customer value through cost reduction or through provision of additional value-enhanced services.Agribusiness,

Procurement push and marketing pull in supply chain management: the conceptual contribution of relationship marketing as a driver in project financial performance

? The agenda for supply management practices on construction projects originated from clients. It is largely procurement driven, the dominant strategy of contractors being to emulate the client approach, and hence push the procurement model along the chain.? This procurement push along the supply chain translates the intrinsic client interest in value into a contractor interest in repeat business from the same client or through referral markets, the consequence being: (i) loss of interest in adding further value along the chain, (ii) continuous improvement prematurely reaches the law of diminishing returns through a primary cost reduction focus, (iii) supply chains may be rationalised in terms of the number of suppliers for each link in the chain, yet the procurement push increases chain length in order to squeeze the lowest costs possible, hence those doing the work at the bottom of the chain will not have the resources to add value nor necessarily be aware of the strategic principles at the top of the chain. ? Marketing is the other side of the same ?procurement coin?; relationship marketing (RM) soliciting a pull in the supply chain, potentially adding value for continuous improvement. ? Finally, the RM approach will be related to the theoretical and actual decoupling point for construction, with the potential to move the point towards the start of the chain, hence increasing the potential for agile manufacturing

Analyzing the Value Stream Mapping to Achieve Lean Manufacturing via Line Balancing

Value stream mapping (VSM) visually depicts the flow of materials and information as a product passes through the manufacturing process; this information enables companies to meet customer demand by getting these materials and information for improvement at the right place and at the right time. This paper reviews the existing literature on VSM, describes the concepts and techniques of line balancing, and demonstrates through empirical study how the concepts and techniques of line balancing can help optimize VSM implementation to enhance business performance

Leanness and agility as means for improving supply chains. A case study on Egypt

Supply chain management has received greater attention from the academics and the practitioners, however the literature review lacks a comprehensive view for supply chain management practices and how its members should act to contribute to its overall success (Li el at., 2005). In this era, where the business organisations are working in several challenging threats and opportunities, greater attention is given to supply chain management. Nowadays, companies are always searching for means to improve their supply chains. The main aim of this research is to show "how leanness and agility approaches can be used within the same enterprise as complementary means for improving its supply chain". To achieve this research objective, the research has provided an assessment and summarised the literature on the supply chain management, lean thinking and agility thinking including their importance; their definitions; their practices and the relationship between lean and agility. The resulted proposed framework deduced from the literature has been applied in the Egyptian Manufacturing Business to show the relationship between the agility principles, lean principles, entity performance and the successful supply chain

From Supply Chains to Total Product Systems

The evolution of supply chain management and practice has had an integral and expanding role in contemporary global economic and socio-political change over the past 25 years or so. Thi srole is moving closer to centre stage with the emergence of business models equating to 'total product systems'. The impacts of advanced supply chain practice include driving fundamental changes in approach to product design, the concept of 'product', production methods, distribution, marketing, aftermarket support and end-of-life (EOL) reprocessing. Viewed in their full context, methods in supply chain management (SCM) have major influences on societal functioning and on economic development at global, national and local levels. Even the supply chains for simple products can involve several different industries and link many companies, large and small. Those for complex products may span several technological domains and economic sectors, linking hundreds or sometimes thousands of companies

Information technology and performance management for build-to-order supply chains

En las siguientes líneas se plantea un artículo de reflexión que tiene en cuenta parte del marco teórico que sustenta la investigación titulada “Prácticas pedagógicas que promueven la competencia argumentativa escrita (CAE) en niños campesinos de los grados 4° y 5° del Centro Educativo Municipal La Caldera, Sede Principal de Pasto”, desarrollada en el año 2012. En él se contemplan los aportes de las ciencias del lenguaje y la comunicación, la teoría de la argumentación, la didáctica de la lengua escrita y los géneros discursivos, que dan cuenta de la necesidad de desarrollar la capacidad crítica en los estudiantes a través de la argumentación, lo cual implica transformar las prácticas pedagógicas para que se alejen de la transmisión de conocimientos y den paso a la comunicación, para que la palabra escrita sea apropiada de manera significativa

Australian Lamb Supply Chain: A Conceptual Framework

In the last decade, supply chain management has played an important role to lead agribusiness today to succeed in their business goals, to gain competitive advantages, and to improve business performance. As the result of that, there has been extensive studying in a popular topic of strategic supply chain management in order to improve business performance as well as along supply chain performance under the real situation. This is because in current business world, supply chain practices are crucial to influence many agribusinesses to continuously adapt proper supply chain management in their nature of business. This paper will propose a conceptual framework of supply chain practices and supply chain performance indicators of the Australian Lamb Industry.Lamb Supply Chain, Supply Chain Management, Livestock Production/Industries,