www.cranfield.ac.uk/som

Global Mega-Trends and implications for Food Supply Chains

Dr. Denyse Julien

Wednesday 23rd November 2016

Welcome to

Cranfield

We are creating leaders

in technology and

management

We unlock the potential of people

and organisations by partnering

with business and governments to

deliver transformational research,

postgraduate education and

professional development.

We are an exclusively postgraduate

university located at the heart of the UK.

• Voted Number 1 outside of USA for expertise and

education in Supply Chain Management

• 35+ years experience as a leading provider of

transformational education and research

• All of our programmes are designed to deliver

practical education that helps managers (current &

future) progress

• Our goal is to help business unlock value across their

supply chains

Centre for Logistics and Supply Chain Management at Cranfield

Global Trends – Impact on your supply chain

Risk

Opportunity

• Business needs to consider

the 3 dimensions when

making decisions about the

SC strategy

• They are all important to the

long term sustainability of

your business

• Numerous examples of

companies being vilified for

issues on the people or

planet dimension

Triple Bottom Line Paradigm

Damaging the

BRAND

• SC Risk & mitigation strategies

• Location of your suppliers

• Long-term Food security and Securing your supply

• Have you considered the impact of your upstream

suppliers on the environment, biodiversity…

Potential Impacts of Mega-Trends on your SCs

Global Warming

Major climatic events

• Collaborating on logistics with others

• Last mile delivery to consumers

• Physical network structure - Hubs

• On-shelf availability & Store Deliveries

• Vertical/Urban Farming

• Incentivising people to stay on the farms

Potential Impacts of Mega-Trends on your SCs

Air Pollution & Urbanisation

Restrictions on transport

• Food Fraud

• Alternative sources of supply

• R&D to develop better water Mgmt systems &

resistant crops

Potential Impacts of Mega-Trends on your SCs

Water Stress

Failed Harvests

• Need to produce more & reduce waste

• Innovation in products, processes & SCs

• Vertical/Urban farms in cities (subways)

• Growth in # of short SCs

• New direct to Consumer offers/channels

• Changing retail landscape

Potential Impacts of Mega-Trends on your SCs

Population Growth

Changing Consumer Demands

Potential Impacts of Mega-Trends on your SCs

Aging Population

Obesity/Malnutrition

• New product development

• Customised meals for consumers

• Legislation (e.g. Sugar tax…)

• New routes to market

Other Factors/Drivers of Change

Child Labour

Modern Day Slavery

Bribery

The Internet of Things

The Cloud

Big Data Analytics

Wearable Technology

Collaboration capabilities vital

Collaboration for Sustainability Framework

http://sfcplatform.eu/

Collaboration for Sustainability Framework

3 STAGES & 7 STEPS

Input

Industry Farmer

Trade

Processor

Food

Manu-

facturer

Restaurant

Consumer Retailer

Catering

Pesticides Food Safety Biodiversity Pollution Labour Issues Traceability

Pollution – chemical/pesticides Soil degradation Long term raw material supply Food Security Human Rights Poverty Child Labour Worker health/safety Biodiversity

Sustainable Agriculture Prices/Farmers income Animal Welfare Water Security Sustainable Aquaculture Power/equity of trading relationships Slavery Traceability Food Waste

Human rights Work conditions Corruption/Bribery Animal Welfare Food Waste Traceability

Eco-efficiency/Energy Food & Water security Food safety/Contamination Traceability Emissions (Air & Water) Packaging Waste/Recycling Health & Safety of employees Diversity Long term raw material supply Food Waste Transport

Quality Food safety Traceability Food & Packaging waste Recycling Transport

Food safety Contamination Traceability Fraudulent materials Obesity Nutrition

Health Allergies Responsible marketing Alcohol abuse Advertising to children Food & Packaging waste Recycling Transport

Mapping Your

Supply Chain RISK

Do you know WHICH RISKS have the highest

POTENTIAL IMPACT on your Supply Chain?

The IDENTIFICATION of the

biggest RISKS to a supply chain is

key to understanding where the

supply chain is most VULNERABLE

and can provide a FOCUS for

management to deploy resources

to MITIGATE those risks.

SC Risk Assessment Tool

https://www.som.cranfield.ac.uk/SC-Risk-Tool/

Critical path profile

•Long lead-times e.g. the time taken to replenish components from order to delivery

•A single source of supply with no short-term alternative

•Linkages where ‘visibility’ is poor, i.e. little or no shared information between nodes

•High levels of identifiable risk (i.e. supply, demand, process, control and environmental risks)

• Improve ability to measure supply chain risk and resilience by geography, product line, customer, etc.

•Mean time to recovery

Resilient Supply Chains: Strategic Approaches

The Resilient

Supply Chain

1. Supply Chain

(re)engineering

Supply Chain

Design

Supply Chain

Understanding Supply Base

Strategy

2. Supply Chain

Collaboration

Collaborative

Planning

Supply Chain

Intelligence

3. Supply Chain Risk

Management Culture

4. Agility

Visibility

Velocity

Supply Chain

Continuity Teams

Board level

responsibility &

leadership

Consider risk in

decision making

Source: Adapted from Christopher and Peck (2004) Building the Resilient Supply Chain, The international Journal of Logistics Management, Vol. 15, No. 2

How well prepared is

your Supply Chain to

mitigate the RISKS and

maximise the

OPPORTUNITIES?