Muntons presentation to BC Forum 5 th September 2013 Sarah Phillips – Head of Procurement
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Transcript of Muntons presentation to BC Forum 5 th September 2013 Sarah Phillips – Head of Procurement
Muntons presentation to BC Forum 5th September 2013
Sarah Phillips – Head of Procurement
The factsA brief history of Muntons plc
1921Muntons was incorporated as a company
1948Moved to Stowmarket
1964Expanded to Bridlington
2007Singaporeoffice opened
2010Office opened in Bangkok
2009US companyformed based in Seattle
What we do
20We are in the world’s top 20 manufacturersof malt
180,000At Bridlington and Stowmarket we make around 180,000 tonnes of malt
Enough for 2340 million pints of beer!
45,000We produce around 45,000 tonnes of malted ingredients, the largest in Europe and arguably the world.
Local Supply – Global Customers
66 Agents and Distributors globally supplying 62 countries
Greenest maltster in the world – lowest carbon malt commitment
Delivering to customers from 1kg packs to 29 tonne bulk
Product range and industry scope
Diversification of product and customer into sustainable growth areas through innovation
Malt Malted Ingredients
Central Services Division
Focused on brewing and distilling markets
Focused on diverse markets • Food • Bakery • Beverages• Confectionary • Pharmaceuticals • Micro Brewery • Home beer and wine
• Financial services • Information systems support • Compliance management • Human resources.
Investing in our people
Investment in quality staff
Investment in training
Investment in relationships with customers and suppliers
Investing in Our People
Corporate Social Responsibilityinvolve all stakeholders
Community • Customer • Services • Employees
• Principle enshrined in law
• It is not old fashioned philanthropy/donations to good causes
• It is the contribution of business to the Government’s sustainable development goals
• Currently voluntary, taking into account economic social and environmental impacts of companies’ operations – over and above compliance
• Year round responsibility
• Something we have done for a while – but not formalized
• Involvement to continue in key areas:- Environment- Education- Employees - Local community.
We like to do business the right wayStriving to constantly improve standards of quality in all we do, showing consideration for our environment and respecting business relationships with both customers and suppliers
ISO 9001:2008 ISO 14001:2004 ISO 22000:2005 ISO50001:2011 BRC Quality Environment Food Safety Energy Global StandardManagement System Management System Management System Management System Food ver 5
American Institute All cereal raw materials All products assured Muntons Malt are Organic Certification of Baking sourced from GM free “Assured UK Malt” (Stowmarket site)(Milled products) accredited farms Suppliers
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Muntons: Building a Sustainable Future
SustainabilityThis is the common objective that links all aspects of Muntons business activities. An
ongoing process that will ensure our goods are supplied in an economical, environmental and
socially responsible way, now and into the future.
Where has Sustainability taken us?
Involvement in government and supply chain advisory groups
Identification of carbon hotspots driven capital programme: energy, recycling
5 years ago first carbon footprint calculation: now 5th iteration
8 years ago working with consortium on water recycling
Wider supply chain involvement downstream
Focus on practical solutions that have environmental and financial benefit
Muntons are helping farmers save money and reduce the supply chain carbon footprint
Factors driving supply chain complexity
InnovationVolatility
RiskTechnology
Increasingly complex & changing markets
Stakeholder demands
Position in Supply Chain
Customers Manufacturers
AgentsConsumers
Retailers Distributors
MuntonsManufacture
r & Wholesaler
Farmers & Merchants
Supply chain challengesLead time gap
Muntons
Time horizon
Lead Time Gap
Customer Accepted Lead Time
Construction and Engineering
Automotive Europe
Order Penetration point
Automotive USA and Retail
Source Make Deliver
building our business the right way
Development of Procurement & Supply Chain ManagementDedicated Grain Supply Chain Team.
Centralised Non-Grain Procurement Team.
Supplier relationships, working closely with farmers and merchants
Long term supply agreements to secure supply and manage price volatility
Collaboration with customers through long term supply agreements backing off risk
Educating customers on barley risk
Managing barley risk
“Friends in Rotation”
Agrarfrost, Agroterra, Aviko, Barilla , CIO Parma, CocaCola, Danone, Farm Frites, Fonterra, General Mills, Heineken, Kraft, Kellogg, Lamb Weston Meijer, McCain, McDonald's, Nestlé, Pepsico, Unilever
Supply Chain Collaboration
1 or 2 suppliers per mode of transport, transactional relationships primarily driven by cost and turnover
Low level understanding of each others’ businesses and supply chains
Reduce transport costs, “missed tricks” and untapped potential benefit from economies of scale
Internal inefficiencies driving up costs
Logistics is CORE
Our chosen strategy is LLP
To reduce operating costs (e.g. Transport)
Remove non-value added activities, share benefits of
improvements
Improve customer service performance
1300 live vendors, focus on critical and high value ones, longer term supply agreements
700 direct materials purchased from over 100 vendors going into approximately 750 finished product lines sold to nearly 600 customers globally
Stringent supplier approval process (quality, food safety, sustainability, ethical, CSR , capability, business continuity plans/management system) – visits, audits)SEDEX membership
Continual assessment of supplier performance, complaints & corrective actions (quality systems), feedback to suppliers and exchange of information
Supplier management
Overriding objectives
Develop sustainable supply chains which our customers want to lock into
Develop strategic supplier partnerships which we want to lock into
Act as a catalyst for supply chain discussions across many diverse industries