The Future of Food Chains

CUSHMAN & WAKEFIELD

SUPPLY AND STORAGE: RESHAPING FOOD CHAINS

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 |