Keeping Supplies on Track
To secure continuity of supply, it is important for supply chains to become more interdependent.
As subsidies decline, farmers and fishermen will only continue to produce food if there is a steady demand at a sustainable price. Collaborative supply chains will have the edge, recognising the importance of long term profitability for all parties.
A large part of Graham's Dairies business is supplying retailers with milk on a daily basis. Continuity and consistency of supply is a vital requirement, to make sure that the dairy is always in a position to supply the market. Scottish Organic Milk Producers (SOMP) works with its farmer members to even-out seasonal production patterns, so that consistent volumes of milk are supplied to the dairy each day.
This has been achieved by interacting within an information flow, concerning market requirements and producers' production, so that everyone is aware of production profiles and market demand. Knowing with some degree of certainty what volume of milk will be available to them in the future, is viewed by Graham's as a very important factor in future planning.
Mackays has an open door policy with respect to their Farmer Suppliers and many have visited Mackays' production plant. This helps producers understand what is required and what systems have to be in place both on the farm and concerning transport, in order that continuity of supply and specification is achieved. The open door policy works both ways and Mackays also carries out a technical visit to all of their farmer suppliers. This provides an opportunity to understand the challenges faced by farmers and the chance to inform them of what is happening in the factory.
North Highland Products and Dunbia have worked together to create a range of high quality branded beef and lamb products - 'Mey Selections'. Animals are only selected from farm assured farms, where stockmen have daily contact with their livestock, ensuring the highest welfare standards. The meat is given extra flavour through the skilful processing techniques of dry ageing and slow chilling during maturation and the result is some of the finest Scotch beef and lamb available. North Highland Products and Dunbia work closely with producers to forecast production, so that supply and demand can be kept in balance, and to ensure the availability of livestock of the correct specification.
Key points from this case study:
- Better information flow can help chains forecast supply and demand more accurately
- Open relationships can help all those in the chain to better understand how to improve quality and consistency of supply
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