What is Success?
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Once partners in a supply chain have agreed to work together and have developed a shared vision and mutual goals, it is important that they develop and set performance measures.
Many companies have their own internal performance measures and, as some of these are shared with the supply chain partners, it can highlight issues occurring in other parts of the chain.
LambLink is a unique ASDA/Welsh Country Foods scheme, promoting collaborative working. Against a background of static consumption of lamb in the UK, ASDA has seen sales increase by 10% a year since LambLink was introduced. The ability to produce lambs that provide what the market wants is fundamental to the success of the scheme. For example, by reducing the amount of fat in each carcase results in higher meat yields. This means less waste needs to be disposed of, which has resulted in significant savings in cost.
For SOMP, the benefits of working together across the supply chain are clear - increased stability in the market, better planning and forecasting, improved coordination of activities and the introduction of greater efficiencies in haulage and production are all evident in the supply chain with improved results for the farmers.
Girvan Early Growers (GEG) has more than doubled its throughput since working collaboratively with suppliers such as Cygnet Potato Breeders, despite increased competition from elsewhere in the world. Mackays business has grown from using 30 tonnes of fruit in 1995 to 350 tonnes in 2007, providing local farmers with an outlet for fruit that may not be suitable for selling direct to consumers. Highland Grain and the Edrington Group increased their trade in malting barley from 1,000 tonnes in 1995 to 13,000 tonnes in 2007, demonstrating hard evidence of the successful relationship between the two organisations.
The 150 farmers supplying North Highland Products trade on average 150 cattle and 700 lambs per week, making a premium over the Scottish average price of typically £37 per head for cattle and £3 per head for lambs.
Key points from this case study:
- Information flow and product specification across a chain can reduce waste and increase sales
- Collaboration can improve market stability in certain sectors, as well as increase efficiency
- Collaboration can open up new market opportunities
- Fair and open dealings can benefit all those in a supply chain
Download the full case study as a PDF
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