Market Driven Supply Chains Project

Farming And Food Production Future Policy Group Presentation

31st January 2020

Alan Stevenson

Building supply chain capability, capacity and developing practical solutions to overcome barriers in accessing UK and international and markets

To deliver an aggregated increase in turnover of at least £24m by 2020

MDSC Phase 2 - Key Objectives

Focus

• Starting point - an identified market opportunity

• Clarity - identified supply chain barrier/s preventing exploitation of the opportunity

• More than - individual company development. Tend to work with groups, or a sector

• Complementary – fills clear gap in existing sources of support

• Practical - helps with barriers at any point in the supply chain

• Collaborative – works with partners to deliver solutions

Project Advisory GroupPotential projects identified and scoped and assessed on:

• Scale of market opportunity

• Relevance of market opportunity

• Supply chain issues, proposition and additionality

• Potential benefits & impacts, displacement

• Supporting contributions, industry commitment &

collaboration, timescale

Case Studies www.mdsc.scot

Partnership in Red Meat

Value Generation

6 Year Delivery Cost

£2.1m

Value

£40m+

£6.75 per farm holding

per year

Tr

Increasing Complexity of Supply Chain Drivers

SHIPPING FROM A to B

RESPONDING TO A to Z!

Traditional Market Drivers Additional Emerging Market Drivers

PriceQualityProvenanceConvenienceAdded ValueEthical

Sustainability Climate EnvironmentWasteWaterAuthenticity

Ethical+TransparencyEfficiencyPackagingMinimisation of InputsCircular

SCM Planning Capability – Market Led

• Moving from ‘push to pull’ supply chains led by consumer demand & influence

• Collaborative Planning, Forecasting & Replenishment (CPFR)

• Data Flows & Transparency• Supply Chain Alignment & Balance• Effective Infrastructure

Key Challenges

Value

Dairy Exp - £3.7bnRed Meat - £3.4bn

Dairy Exp - £1.5bnPork Exp - £1.6bn

Dairy Exp - £0.049bnRed Meat - £0.084bn

Spirits - £4.3bnFish/Seafood - £0.9bn

Wine – 0.8bnDairy - £3.9bn

Red Meat Exp - £3.4bn

Produce – £7.5bn

Return on Integrated Market /Supply Chain Export Investment

Proactive market driven development programmes

• Identify, develop and service high growth market opportunities (‘trailblazers’)

• Market responsive supply chain scoping and research

• Feasibility study and business case development

• Supply chain network builds

Supply chain surveillance and resilience programmes

• Track, protect and sustain existing value supply chains

• Proactive monitoring of supply chain categories and ongoing development support

• Close to market resilience stress testing and stakeholder reporting

• Early warning detection and remedial support

Ad hoc strategic supply chain intervention programmes

• Salvage and support at risk strategic supply chains

• Agile rapid response supply chain support as required

‘Future Fit’ Supply Chain Development Approach

Leap or drift….