The Future of Food Chains

CUSHMAN & WAKEFIELD

SUPPLY AND STORAGE: RESHAPING FOOD CHAINS

FOOD SUPPLY CHAINS OF TOMORROW

Products within retail supply chains should be categorised into four key groups based on the two key metrics retaillers must balance - demand volatility and perishability. Current supply chains based on the national and regional distribution networks often come with significant cost, due to size, scale, operational solutions, short lead times, and strategic locations.

By segmenting supply chains, operators unlock the ability to deploy varied supply chain solutions specific to the characteristics and demand profiles of each food group. By using this approach of diversified supply chains, operators can unlock operational efficiencies through specialisation and cost savings.

THE DIAGRAMS BELOW OUTLINE PRODUCT CATEGORIES BASED ON THEIR CHARACTERISTICS, AND SUPPLY LOST SALES, OR OVERAGE/WASTE. BY SEGMENTING PRODUCTS BASED ON THEIR CHARACTERISTICS, WE C

DEMAND/STORAGE MATRIX

WASTE/LO

VOLATILE DEMAND

VOLATILE

SALAD

POTENTIAL FOR WASTE - L

ICE CREAM

POTENTIAL FOR MISSED SALES - H

SANDWICHES

LONG SHELL-LIFE

LONG SHELL-LIFE

PERISHABLE

CHEESE

MILK

POTENTIAL FOR WASTE - L

BACON

MEAT

POTENTIAL FOR MISSED SALES - L

STABLE DEMAND

STABLE D