04 - Dr Santos Best Practices in Food and Agricultural ......BEST PRACTICBEST PRACTIC AGRICULTURA INEGI – UP Prof. Alcibíades S Assist. Prof. Gisel CES IN FOOD ANDCES IN FOOD AND

BEST PRACTICBEST PRACTICAGRICULTURAINEGI UPINEGI – UP

Prof. Alcibíades S

Assist. Prof. Gisel

CES IN FOOD ANDCES IN FOOD AND AL LOGISTICS

Soares Guedes

la Tavares dos Santos

PORTUGAL/PO

92,090 km2

Population: 10,637,713Capital: Lisboa (pop. 545

ORTO/UP/INEGI

5,245)

PORTUGAL/PO

66 km²pulation: 237,584

RTO W ld H it UNESCORTO World Heritage UNESCO

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PORTUGAL/PO

he University of Porto is the lahe University of Porto is the la1,0004,3643 845

Students1st Cycle / Degree (BSc) and I2nd Cycle / Masters (MSc) Stu3,845

2,049742

2nd Cycle / Masters (MSc) Stu3rd Cycle / Doctorate (PhD) StPost-Doctoral Researchers

2,200 Teachers

ORTO/UP/INEGI

argest university in Portugalargest university in Portugal

ntegrated Masters (BSc + MSc) Studedentsdentsudents

PORTUGAL/PO

Th U i it f P t i thThe University of Porto is the Portugal, producing one fifth oeach yeareach year.

69 Research Units693113

Research UnitsUnits classified as “ExcellenState Associated Laboratori

1,72122.4%

Scientific articles indexed inOf scientific articles produce

University of Porto has 2World’s Top 100, MechanicaEngineering.

ORTO/UP/INEGI

bi t d f i ibiggest producer of science iof scientific articles published

nt” or “Very Good”es the ISI Web of Science in 2007

ed in Portugal in 2007

Scientific Areas among thCal Engineering and Chemica

e are an University - Inde are an University Indented to Research and

d T h land Technolo

dustry interface Institutidustry interface InstitutiDevelopment, Innovat

T fogy Transfer.

PORTUGAL/POINEGI NSTITUTE OF MECHANICAL ENGINMANAGEMENT

With 6.0M€ turnover (2/3 financeof the top 3 largest Technology UP (1 in health sciences, 2 in En

ORTO/UP/INEGI

NEERING AND INDUSTRIAL

ed directly by industry), INEGI is oTransfer & Innovation Institutes gineering & Technology)

Permanent Staff92

Temporary Staff (scholarshi63

TOTAL BOARD

Consultants University

155

70 Consultants – University

TOTAL

70

225

e are an University - Inde are an University Indented to Research and

d T h land Technolo

dustry interface Institutidustry interface InstitutiDevelopment, Innovat

T fogy Transfer.

Practices in Food and AST PRACTICES

1.

Agricultural Logistics

Practices in Food and AST PRACTICES

1.


Practices in Food and A

Prog

The Food and Agr1 The Food and Agr1.

T d i S l C2 Trends in Supply C2.

3 Best Practices exa3.


gram

ricultural Supply Chainricultural Supply Chain

Ch i M tChain Management

amples

Practices in Food and AE FOOD AND AGRICULTURAL SUP

1.

Packaging Manufacture

Packaging Packaging ProducerProducer

A new supply chain arises industries as traditional pla

Agricultural Logistics PPLY CHAIN

Source: adapted from MRO

in the food and agricultural ayers assume new and more

Practices in Food and AENDS IN SCM

E l i f St k K i U it (SKU )1.

Explosion of Stock Keeping Units (SKUs)

Supply chain integration is now occurring

Worldwide sourcing

Supply chains will become further globalizSupply chains will become further globalizinstrumented.

Optimization skills and transparency in thOptimization skills and transparency in th

Pressures for cost reduction in the supplyremain presentremain present.

Supply Chains will have to adjust fast and

The organizational weight of the Supply C


g in most industries

zed interconnected interdependent and fzed, interconnected, interdependent and f

he supply chain will be even more necessahe supply chain will be even more necessa

y chain, from product design to delivery, w

d frequently to business and market chang

Chain area will continue to grow.


1.1.

Source: IBM - “The smarter supply chain of the fut


ture”


On top of these trends, we have to accounagricultural Logistics:1.

– Traceability (Lot numbers, expiratio

– Perishability

– Temperature Control

– Limitations to Postponement

– Legal issues and regulations (HACC

– Packaging


nt for specific issues of the food and

on dates, …)

CP, pallets fumigation, …)


Traceability to origin along the Supply Ch

ENDS IN SCMTraceability to origin along the Supply Ch

– Food Safety has become a priority to t– An effective traceability system allowsy y

may have been detected risk related tounit, or even a specific area of a farm;The usage of internationally recognize– The usage of internationally recognizecommunication significantly improvesincreased efficiency and cost reductio

– Each player in the value chain is respocode insertion and grant records secu


ainain

he Food and Agricultural Supply Chain;s accurately tracing of every product in why g y po its geographic origin, harvest or process

ed standards for identification anded standards for identification and s information speed and accuracy, resultingn in the food and agricultural supply chain

onsible to supply the right information for rity and accuracy.


Traceability to origin along the Supply Ch

ENDS IN SCMTraceability to origin along the Supply Ch

– In meat supply chain the goal is to assA reference code binding meat to a A reference code binding meat to a

Birth country;

C t / i f f tt i Country / ies of fattening;

Country of Slaughter;

C / i f C County / ies of Cut;

Approval / license number of slaugSlaughter House Cutting RoomSlaughter House Cutting Room

• Ear tag individual ID• Individual records

kept by owner / farmer

• Carcasse label• EAN 128 (AI’s)


ain(2)ain(2)

sure connection between all parts of the ananimal or group of animals;animal or group of animals;

ghter house and dress and cut room.Retailer ConsumptionRetailer Consumption

• Processing label• EAN 128 (AI’s)

• Retail label• EAN 13


In the food and agricultural Logistics (1): W

ENDS IN SCMIn the food and agricultural Logistics (1): W

Agricultural Agricultural P d tiP d ti

Winemaking/ Winemaking/ i ifi tii ifi ti BBProductionProduction vinificationvinification BB

Concentration to gain critical mass and quality standardization.

• Upstream shift of the vinification process to reduce transport and warehousing and gain

• Offer dand poincreas

• BottlingProcess Automation.ncrease in farm / and dimension.

R&D.

R&D control.• Separation between

winemaking companies and brand owners companies

gactivitieto mark(postpo

• Upstread towners companies. downstintegra

MRO


Wine sectorWine sector

RetaiRetaiDistributionDistributionBottlingBottling RetaiRetaiDistributionDistributionBottlingBottling

iversification rtfolio

se. g and labeling

• Brand globalization.• Economies of Scale.• Market specialization.• Higher service levels

• Change in cohabits to lessalcohol free d

• Growing g ges according ket needs onement).am and t

• Higher service levels to a wider portfolio (increased complexity).

• Demand integrated

gconsumptionpremium win(increased advalue) in speoccasionstream

ated planning.

gmanagement.

occasions.

Practices in Food and AENDS IN SCMIn the food and agricultural Logistics (2): F

FlourFlourManufacturersManufacturers

In the food and agricultural Logistics (2): Feal eal

ucersucersIngredient Ingredient

ManufacturersManufacturers

l logisticsssingage

I&DProduction

QualityPacking

I&DProduction

QualityPacking

• Increased R&D activities to search for final consumer added

on to gain s, bargain quality

• Product diversification and portfolio increase.

• Postponement ofvalue solutions (processes and product level)

q ytion.tomation.farm / sion.

Postponement of activities conferring products final features.

• Upstream and downstream integrated planning.

• Production scale (strategic partnerships) topartnerships) to increase market share in a mature market.

• Processes re-design for cost reduction and


Flour sectorFlour sector

CarriersCarriers TraditTraditIndustriaIndustriaResellersResellers

Distribution DistriDistribution

• Greater importance of bulk transportation

• Quicker response becomes a competitive advantage.

• Change in habits obliand deepeportfolio (dp

over bag.• Return

optimization.

g• Higher service

level.

p (healthy pr

• Concentraindustrial cspectrum dt h ltechnologyexpansion

• Traditionaa path of bnicheniche.

• Clients preprice redu(greater sensitiven

Practices in Food and AENDS IN SCMIn the food and agricultural Logistics (3): PIn the food and agricultural Logistics (3): P

PastaPastaManufacturersManufacturersss

I&D

Ingredient Ingredient ManufacturersManufacturers

I&D

• Increased

ProductionQuality

Packing

nd • Product diversification and

ProductionQuality

Packagingn

Increased R&D activities to search for final consumer

dd d l

nd Product diversification and portfolio increase.

• Postponement of activities conferring products final features.

added value solutions (processes and product level)

n

s)

e

• Upstream and downstream integrated planning (permanentinventory, web based customerorders, collaborative planning).

• Production scale (strategic)e • Production scale (strategic partnerships) to increase markeshare in a mature market.

• Investment in new products (fresh pasta, new flavors, new (formats, new packages

• Product traceability to origin.• Processes re-design for cost

reduction and increased ffi i


Pasta sectorPasta sector

CarriersCarriers Modern / TModern / TDistriDistriWholesalersWholesalers

Distribution DistriDistribution

• Greater delivery • Quicker response • Change inGreater delivery frequency.

• Less average quantity per delivery.

Quicker response becomes a competitive advantage.

• Higher service

Change in habits obliand deepeportfolio (dhealthy pr

t r

• Near JIT deliveries.

level. • Concentraindustrial cspectrum dtechnologyexpansion

et expansion

• Traditionaa path of bniche.

• Retailers pplabels grow

• Hard discogrowth.


Main Portuguese Retailer – Full upstream

ST PRACTICESMain Portuguese Retailer Full upstream

Mission and Goal: Assurance of a highcompetitive


integrationintegration

h quality standard product, food safety andvalue proposition

Practices in Food and AST PRACTICESMain Portuguese Retailer – Full upstreamMain Portuguese Retailer Full upstream

Meat Processing Centre

Fish


integration (2)integration (2)

h Distribution Centre

Bakery andProduction



integration (3) – Meat Supply Chainintegration (3) Meat Supply Chain

Active SKU’s: 340– Active SKU’s: 340

– Cuvettes: 500.000 pper week

MPC10 967 m2



integration (4) – Meat Supply Chainintegration (4) Meat Supply Chain

Strorage

Dress and Cutting



integration (5) – Fish Supply Chainintegration (5) Fish Supply Chain

CPC10 967 m2



integration (6) – Fish Supply Chainintegration (6) Fish Supply Chain

CPC10 967 m2


B&PPB&PP

Dough Production

Fermentation


integration (7) – Bread and Pastry Supplyintegration (7) Bread and Pastry Supply

C 1 200 m2C 1 200 m

DouProdu

Decoration

Processo

Processo

Processo

Processo

Practices in Food and AST PRACTICESDairy Producer: Full upstream integrationDairy Producer: Full upstream integration

– The main Iberian dairy producer was odairy producers cooperatives. The comda y p oduce s coope at es e coproduce and market in national and inproducts through its brands.

U t i t ti ith Milk f– Upstream integration with Milk farms, collection, preservation, inbound transconditions up to the milk processing sagreed price for all farm production quagreed price for all farm production qu

– Unloading at factory site fully controllesafety and traceability, and quality tes

– Brand new processing plants, centrali(eg. milk, yogurt, cheese) and type of p


(1) – Milk Supply Chain (1) Milk Supply Chain

originally founded by 3 mpany’s purpose is to pa y s pu pose s to

nternational markets, milk

i d il ilkensuring daily milk sportation in the best site. Also ensuring a pre-uantitiesuantities.

ed in terms of hygiene, ts and analysis.

ized by type of product packaging technology.

Practices in Food and AST PRACTICESVegetables / Salad Producer: Full upstreamVegetables / Salad Producer: Full upstream

– In the early 1980s, the company was watercress.ate c ess

– The group owns farms in Hampshire, excess of 300,000 m2 of growing bedsproducerproducer.

– The company is Europe’s largest growleaf salads.

– The company has a commitment to torequirements, drilling and cultivating crops and, equally importantly, procep , q y p y, p

– Once crops are harvested in the field to customers, through the simple phi


m integration (1) – Vegetable Supply Chainm integration (1) Vegetable Supply Chain

formed in Portugal, to secure winter supp

Dorset, Wiltshire, Kent and Portugal, and s, the Group is the world’s leading watercr

wer / packer of organic watercress and bab

otal integration, growing a proportion of itsthe seeds, harvesting and transporting its

essing, packing and distributing its producg, p g g p

the aim is to pass on the maximum freshnlosophy of “keep it cold – move it fast”.

Practices in Food and AST PRACTICESVegetables / Salad Producer: Full upstreamVegetables / Salad Producer: Full upstream

Full ProSoil PreparationAssurance of a well-prepared soil, ventilatefinished product requirements and featuresHarvestDe elopment of o n machiner to grant a sDevelopment of own machinery to grant a sTraceabilityTraceability from “seed to fork” allows a coInspectionInspectionAll leaves are inspected to ensure uniform pWashWash and disinfection in a automatic and eWash and disinfection in a automatic and ePackagingPackaging in a maximum of 24 hours to entemperature of 4°C.Distribution within24 hours.


m integration (2) – Vegetable Supply Chainm integration (2) Vegetable Supply Chainocess Control

d and drained. Seed development according .

single c t point (point of o idation)single cut point (point of oxidation).

mplete salad history.

packaged quality.

ffective process.ffective process.

nsure greater freshness at a

Practices in Food and AST PRACTICESWine Producer: Full upstream integrationWine Producer: Full upstream integration – The company was created in 1942 and

on exports and international markets, 830 h t f i d i P t l830 hectares of vineyards in Portugal, the most well known wine brands.

– To the expansion of vineyard land, the p y ,study, selection and planting and consperformed an active support of universviticulture and enologyviticulture and enology.


– Wine Supply ChainWine Supply Chain is a family-run business with a strong focbeing today is the proud owner of more thb i M k t L d d fbeing a Market Leader and owner of some

company associated large investments inp y gstruction of modern wineries. Additionally sity research in the areas of biotechnology

Practices in Food and AST PRACTICESWine Producer: Full upstream integrationWine Producer: Full upstream integration

– The company started with the acquisitDouro treatment and bottling in a rentDouro, treatment and bottling in a rent

– Progressively, the company grew and 1,200 hectares of vineyards in the mainZealand and Chile.

– Quality control operations are performthe reception of the grapes used in winthe reception of the grapes used in win


(2) – Wine Supply Chain(2) Wine Supply Chain

ion of wine casks to small producers in thted cellar in Vila Realted cellar in Vila Real.integrated production owning today more n Portuguese wine regions, in Argentina, N

med at all stages of the production system, nemaking, to packaging and shipping.nemaking, to packaging and shipping.

Practices in Food and AST PRACTICESPasta, Breakfast Cereals and Cookies ProPasta, Breakfast Cereals and Cookies Pro

– The Company was created in 1919. No400 000 tonnes of grain It is one of the400,000 tonnes of grain. It is one of theand is leader in the pasta market.

– The company integrates semola, semoThe company integrates semola, semoproduction of pasta, cookies and break

– New and automated pasta plant in MaiaL i ti t d t ti ll tLogistic center and automatic pallet wa

C


oducer: Partial upstream integrationoducer: Partial upstream integration

wadays it transforms annually approximate most important Portuguese agri-food groe most important Portuguese agri-food gro

oline and flour production used for theoline and flour production used for the kfast cereals.a (the largest in the Iberian Peninsula).

harehouse.

Practices in Food and AST PRACTICESPET Packaging Suppliers integration (1): “PET Packaging Suppliers integration (1):

– 60 factories, 16 countries. Among the tPortuguese, Canadian and Brazilian rig

– 160 000 tons of raw material processed– 160.000 tons of raw material processed– over 7.200 million plastic packages so


“Hole-in-Wall”Hole in Wall

top 10 largest rigid plastic converters. Larggid plastics converter.d (in 2009)d (in 2009).ld worldwide (in 2009).

Practices in Food and AST PRACTICESPET Packaging Suppliers integration (2): “PET Packaging Suppliers integration (2):


“Hole-in-Wall”Hole in Wall

– 1st in hole-in-wall operations in EurBrazilBrazil.

– “The hole in the wall” concept has bdeveloped and applied in dedicated operations to deliver PET bottles dirfrom the bottle production plant to tbottling / filling line of a beverage/FMg g gproducers trough a vacuum system

– The PET plant co-located within/nexpremises owned and run by the suppremises, owned and run by the sup

– Fully synchronization of supply withdemand/production requirements.

– Quality assured by supplier when dedirectly to line.

Practices in Food and AST PRACTICESGlass Bottles Suppliers integration: VMI inGlass Bottles Suppliers integration: VMI inBeer Supply Chain

– The beer company, founded in 1890, isdrinks, beer and bottled water. With 15North to South of the country with 10 eNorth to South of the country with 10 ebeer and soft drinks, juice and wine; wand operations.

– The bottle producer, founded in 1912, oover 10 million units (bottles, flasks an


n then the

s the biggest Portuguese company of soft 500 employees, the company is present froestablishments include production centersestablishments include production centers

water collection and bottling centers, sales

owns 5 plants with a total daily productionnd jars).

Practices in Food and AST PRACTICESGlass Bottles Suppliers integration(2): VMGlass Bottles Suppliers integration(2): VM

– Inventory levels agreement,– Stock managed by supplier at client prg y pp p– Cost and profit share,– Near exclusivity gained for the bottle s– Less than 24h daily

deliveries,– Visibility of– Visibility of

productionruns/plan.

Downstream Suppliers integration: Beer S

– Downstream integration with exclusivedistribution channel/large distribution)channel (big cities).


MI in the Beer Supply ChainMI in the Beer Supply Chain

remises,,

supplier,

Supply Chain

e distributors (out of the big cities and foo) and direct / capillary deliveries in the HOR

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04 - Dr Santos Best Practices in Food and Agricultural ......BEST PRACTICBEST PRACTIC AGRICULTURA INEGI – UP Prof. Alcibíades S Assist. Prof. Gisel CES IN FOOD ANDCES IN FOOD AND