The Future of Food Chains
CUSHMAN & WAKEFIELD
S U P P LY AN D S TO R AG E : R E S H A P I N G FOOD C HA I N S
LONGER SHELF LIFE PRODUCTS
APPROPRIATE FLOW & UTILISATION OF INFRASTRUCTURE & ASSETS
RETAIL STORAGE
POST PRODUCTION STORAGE
NATIONAL DISTRIBUTION CENTRE
REGIONAL DISTRIBUTION CENTRE
PRODUCTION
BREAKING THE CHAIN
STORE
Utilise longer shelf-life benefits Hold greater inventory downstream - In store (where excess retail space) or RDC
DEMAND LED SUPPLY CHAIN
The outcomes of taking this approach results in multiple diversified supply chains, appropriate to the characteristics and order profiles of different food groups Reducing risk, and better allocating the right product through the right flow with the right resource and infrastructure at lowest end-to-end cost. In terms of real estate this would also result in a greater spread of food chain locations, for supply chains focusing on supply-led models real estate should be acquired in markets where rental values are relatively low. For demand-led supply chains strategic location analysis will be key, with proximity to key retail channels and urban populations critical in facilitating quick fulfilment times.
Reduce replenishment frequency Reduce break-bulk requirement
REDUCE SECONDARY FREQUENCY
STABLE DEMAND PRODUCTS
APPROPRIATE FLOW & UTILISATION OF INFRASTRUCTURE & ASSETS
RETAIL STORAGE
POST PRODUCTION STORAGE
NATIONAL DISTRIBUTION CENTRE
REGIONAL DISTRIBUTION CENTRE
PRODUCTION
STORE
Utilise stability of demand to maximise production e ciency Hold greater inventory upstream - from greater production volumes Flow secondary distribution to match shelf-life Just In Time (JIT) replenishment enabled through demand stability
SUPPLY LED SUPPLY CHAIN
FREQUENCY TO MATCH SHELF-LIFE (JIT)
VOLATILE PERISHABLE PRODUCTS
APPROPRIATE FLOW & UTILISATION OF INFRASTRUCTURE & ASSETS
RETAIL STORAGE
POST PRODUCTION STORAGE
NATIONAL DISTRIBUTION CENTRE
REGIONAL DISTRIBUTION CENTRE
PRODUCTION
STORE
Shortening of the end-to-end supply chain Local sourcing from greater number of suppliers Some local aggregation (cross-dock), where required Direct supplier to retailer chain
49 FUTURE OF FOOD CHAIN |
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