UK supermarkets need to understand the challenges of the weather and plan resource sourcing, the IGD has warned.
IGD chief executive Joanne Denney-Finch told FPJ proper communication is vital in modern supply chains after an in-depth study into various journeys from farm to shelf.
She said: “My bugbear is about the forecast of demand. Everybody is second guessing everybody else. We cannot afford to have waste in the supply chain.”
Denney-Finch said all businesses need to take a “cold hard look” at removing risks and maximising opportunities.
IGD research found that 20 per cent of all costs in the average supply chain added no value for consumers.
An in-depth report following a two-year pilot by the Food Chain Centre in partnership with Cardiff Business School and the Industry Forum urges the industry to adopt lean thinking.
Lean thinking prioritises understanding customer value; managing weekly demand; tracking and reducing product loss; reducing transport inefficiency; and creating operational effectiveness.
The report also urges firms to ensure key performance indicators in terms of packhouse output, lead time from harvest to consumer, waste and reduction in store and studying farm to packhouse delivery performance.
At the IGD’s annual convention in London last week, Denney-Finch told delegates that “we need better functioning chains, not just better products and stores.”
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