Wealth from Water
Supply chain detail
Building a fresh food supply chain
© This material is copyright and has been developed and provided to Tasmanian DEDT&A for use in support of the Wealth for Water Program.
Contents
• What are you seeking to build
• What it requires
• The six elements of supply chain
• A workshop example
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Building Fresh Supply Chains
1
What are you building
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It requires
• Looking outside your business
• Thinking about competitive advantage
• Being serious about collaboration
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Building Fresh Supply Chains
2
Building – the 6 platform elements
1. Physical Logistics
2. Information flow & visibility
3. Customers & Consumers
4. Value added & acknowledged
5. Relationship Management
6. Use of technology
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2. Serviceconsiderations
delivery & management - supply chain methodology
Building
1. Physical Logistics
•The extent of scale efficiency & integration of catch/processing/
wholesaling/retail.
•Product specifications
•Treatment of “out of spec” product claims
•Cool chain spec & consistency
•Transport utilisation
•Order process and lead times
•Regulations & compliance costs
2. Information flow & visibility
•The transparency (or lack of it) of market prices and costs through the chain
•Transaction visibility
•Data poling and sharing
•Informed status (low, med, high) of the market
•Extent of electronic inventory data capture
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Building Fresh Supply Chains
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2. Serviceconsiderations
delivery & management - supply chain methodology
Building
3. Customers & Consumers
•Understanding of market size by
channel and product
•The extent of a shared view of
market requirements
•Understanding of customer and
consumers needs
•Extent of supplier and retailer
branding
•Protein category competitive
dynamics
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Marketing planning, customers & consumers
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Building Fresh Supply Chains
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2. Serviceconsiderations
delivery & management - supply chain methodology
Building
4. Value added & acknowledged
•Value added at each step in the chain
•Margin taken relative to value added along
the chain
•Understanding of the value that trading
partners add
•Acceptance/demand/ approach to added
value initiatives
•Price setting mechanisms & determinants of
price
•Capital employed
•Negotiating power of integrated enterprises
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Providing better value to compete
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Building Fresh Supply Chains
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2. Serviceconsiderations
delivery & management - supply chain methodology
Building
5. Relationship Management (RM)
•Status and awareness of RM as business requirement
•Skills, processes and practices for RM
•Degree of trust in place
•Business planning approach and systems
•Access to chain participants
6. Use of technology
•Synergies in common/compatible technology infrastructure
•Paper vs E transactions
•Electronic inventory management
•Understanding of IT requirements and process to select new systems
•Communication methods
•Exploration and adoption levels of new technologies
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A working example
• You are a Tasmanian based producer of carrots. These carrots have
unique taste attributes and you are going to finish them with some
carrot stem in place.
• You have identified two markets you want to supply in Sydney and
Melbourne. They are;
– Top and mid tier restaurants
– High service greengrocers who sell higher quality product
• Your workshop task is to define
– What is your offer to these markets
– What sort of businesses need to be in your supply chain
– What criteria will you use to select each potential partner
– How can you add value to compete
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Building Fresh Supply Chains
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Keeping customers
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A starting checklist
1. Defined what will be produced including product forms, variants and
pack sizes.
2. Target markets are defined and broadly quantified.
3. Direct competitors identified and a basis to compete defined.
4. Supply chain (pathways) to the target markets are defined and the
costs incurred for the value added are understood.
5. Target customers and distribution partners are identified.
6. The proposition that will go to target customers is developed and
ready to go.
7. Market information sources identified, performance metrics defined
and customers advised.
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Building Fresh Supply Chains
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More questions than answers?
Contact
Martin Kneebone
Freshlogic
PH 03 9818 1588
E-mail [email protected]
© This material is copyright and has been developed and provided to Tasmanian DEDT&A for use in support of the Wealth for Water Program.
Building Fresh Supply Chains
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