Supply chain event to emphasis technology and collaboration: IGD

A supply chain conference next month will focus on managing risk in a volatile trading environment as well as how to use technology to optimise efficiency, claims a UK food and drink industry think tank.

The IGD argues that good collaboration is based on strong relationships, not just complicated systems and processes, and it claims that presentations at the event from drink companies such as PepsiCo and Diageo as well as retailers like Sainsbury’s and Tesco will underline this.

According to IGD, a session on technology will emphasis how it directly supports the synthesis of collaborative business processes, including Collaboration Planning, Forecasting and Replenishment (CPFR) and Sales and Operations Planning (S&OP), to help deliver flexibility and speed as well as competitive advantage through end-to-end supply chain optimisation.

The agency said that attendees will also receive a presentation from UK retailer ASDA about some of its proactive strategies to manage risk and maintain supply in a globalised ecomony.

The conference is taking place on 6 November in London.

Greener networks

Meanwhile, IGD last week announced that its Sustainable Distribution project, which involved the teaming up of the UK’s leading food and consumer goods companies to reduce the environmental impact of transporting food and groceries, has surpassed its targeted saving of 48 million miles.

IGD president, Sir Alastair Sykes, claims that the 53 million road miles saved is equivalent to removing 900 lorries from Britain’s roads or conserving 26 million litres of diesel fuel per year.

“These results are a significant achievement for the food industry and demonstrate the determination that exists among manufacturers and retailers to minimise our environmental impact,” added Sykes.

He said that as a result of the initiative, Nestlé was able to identify that United Biscuits was running empty trucks from close to Nestlé’s factories in the north to the midlands: “Nestlé and United Biscuits were therefore able to work together to create roundtrips which are more efficient and avoid empty truck movements.”

According to Sykes, United Biscuits trucks now collect a load of Nestlé products each day from Nestlé’s factories in York and Halifax and deliver to the Midlands.

Spread the word

He said that while the project has mainly involved larger companies, the IGD is seeking to share the outputs of the initiative across the industry to encourage improvements from companies of all sizes, and as a result a free guide explaining how small and larger businesses alike can make similar savings is available from the IGD website.

The IGD shared transport initiative is in line with the Food and Drink Federation (FDF) to embed environmental standards in the sector’s food transport practices, said Callton Young, FDF director of sustainability and competitiveness.

He said that one aim of the FDF’s environmental policy is for members to embed best practice in their transport contracts with hauliers as they fall for renewal, to achieve ‘fewer and friendlier’ food transport miles.

“To deliver our ambition, the FDF launched a Checklist and Clause for Greener Food Transport in July, which sets out transport best practice. Nearly 40 FDF members, with a combined turnover of £16 billion, signed up to the policy at its launch.

“Their widespread adoption of best practice will allow FDF to contribute fully to an industry-wide target thrown down by the Department for the Environment, Food and Rural Affairs (DEFRA) to reduce the external costs of domestic food transportation by 20 per cent by 2012 compared to 2002.”