Spec'ing it Out
It is vital for suppliers, purchasers and users of materials, products, or services to understand and agree upon what they require from each other.
The starting point is the consumer and his/her requirements and the whole supply chain should have that as its focus.
Graham's Dairies sells liquid milk for the retail market. This is sold as a fresh product, which involves keeping the milk at the correct temperature throughout the supply chain. If any problems arise that compromise the temperature of the milk as it moves along the supply, the chances of that milk being rejected for not meeting the required quality criteria are increased.
Therefore, all participants in the chain must ensure they undertake their responsibilities effectively. SOMP works closely with Graham's and shares its commitment to ensuring continuity and consistency of supply according to agreed procedures.
Specification has a direct bearing on price and thereby a huge effect on profitability. The price that Girvan Early Growers receives for its potatoes is dependent on its ability to meet each customer's specification. Therefore, a considerable amount of effort is expended to ensure that it supplies the correct variety, size and skin finish to each of its retail customers.
Specification for malting barley must satisfy a range of criteria for growers and for distillers. A collaborative effort is required among the plant breeders, farmers and distillers to achieve new varieties that are able to meet everyone's requirements, as has happened in the collaborative partnership with Highland Grain and the Edrington Group.
The specifications for the fresh fruit market differ to those of the processing fruit market. The quality of natural raw material varies from season to season and Mackays has worked with is local Farmer Suppliers to develop a common understanding of what needs to be done to maximise the quality of the fruit.
Key points from this case study:
- Everyone in the chain must understand the product specification and take responsibility for meeting it
- A collaborative chain can develop new products or varieties which meet everyone's requirements
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