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Forming and Maintaining Strategic Relationships with Suppliers to
Increase Efficiency & Achieve a Full Product Range
Marketing Week Conference January 14th 2005
Dr.Jo Head : Group Technical Director
Dawn Meats Group - a brief outline
• Part of Queally Group which is the largest privately owned agri-food business in Ireland• Operations span abattoirs & boning to retail packing & added value ranges with sites in
Ireland, UK & France with trading offices in Holland, Spain & Italy processing red meat• Dawn Group turnover Euro 663m (2002)• Serving major supermarket customers
Dawn Bletchley
Highland Meats
Dawn Carnaby
ConvenienceFoods
Dawn Midleton
DawnGrannaghCarrolls
Cross
Dawn Pac
Dawn London
Joe Smokes
Dawn Cardington
Dawn Midlands
DawnPontardawe
Dawn Italia s.r.l.
Dawn HollandMeadow Meats
Scagro S.A.
DawnBallaghaderreen
DawnBallyhaunis(beef/ lamb)
DawnBallyhaunis(rendering)
Dawn Spain
Sandyford Foods
: Beef, value added, frozen & rotisserie.
: Lamb & value added.
: Beef, lamb & value added.
BUDGENS : Lamb & value added.
: Beef, lamb, pork, value added & rotisserie.
: Value added.
: Value added.
RETAIL CUSTOMERSRETAIL CUSTOMERS
: Beef, value added, frozen & rotisserie.
: Lamb & value added.
: Beef, lamb & value added.
BUDGENS : Lamb & value added.
: Beef, lamb, pork, value added & rotisserie.
: Value added.
: Value added.
RETAIL CUSTOMERSRETAIL CUSTOMERS
A full range of added value meats
Garnished Joints & Steaks
Fresh
Ready to Cook Raw
Prepared Joints, Steaks & Kebabs
Comminuted Ranges
Fresh & Frozen
Cooked Ribs & Steaks Fresh &
Frozen
Cooked Centre of Plate Meats Fresh & Frozen
Primal Meat Added Value Foods
Cooked Comminuted Ranges
Fresh & Frozen
Kits & Snack IdeasFresh
Dawn Efficiency Improvements
•Integrated Group NPD Team
•Consolidated Business Function
•Group Supplier Technical Approval
•Group Specification Management
•Group Purchasing
•Electronic Solutions
Why ?•We are only as good as our worst supplier•We are liable for unsafe/illegal ingredients•Suppliers can have as much (sometimes more) influence on our business than our manufacturing operation
–Raw material quality is integral to product quality–Late delivery often leads to late delivery–Lead time has a significant influence on our ability to respond to customers–Purchased material is often the biggest single component of manufacturing cost
Dawn Meats Approved Suppliers
13
10
3
5
5
11
65
18
Dried
Chilled
Dairy
Grocery
Bakery
Produce
Meat
Packaging
Supplier SelectionWho:Development Chef & Purchasing Manager
What:•Competencies•Cultural fit•Innovation•Commitment•Efficiency•Consistency
How:•Existing: -Review for suitability against brief•New: -Reputation/Recommendation
(Customers;Equipment Manufacturers)-Visit to verify suitability
Product Innovation
•Novel Packaging•Facilitated development between 3 suppliers
•Solid Sauces • New technology
•Increased efficiency•Cost benefit
Purchasing/Supplier Performance
Group-Vertical Integration
External-Service-Cost-Quality
Monitoring-Ad hoc.-Individual databases
• Complete Suppliers List & approval status• Records history of supplier problems• Supplier correspondence recorded• Supplier ratings calculated• Classification search
• Highlights all actions due•Detailed information on actions• Reporting on departments or individuals• Reduces time needed for Management Reviews• Provides measurable outputs on system activities • Graphical analysis
Customer Influence
•Pressure to use alternative suppliers•Pressure on supplier management regimes•Pressure to diversify•Pressure to increase speed to market
Supplier Partnerships
Griffith Laboratories
•Manufacture dry ingredients & wet sauces
•Supplier of 8 years standing to Dawn
•Dawn is one of their top 10 customers
•Purchased 507 tonnes in 2004
•Value of £1.2M across the UK & EIRE
Griffith Laboratories What They Do For Us•Business Management
•Dedicated Team - Account Manager (1); NPD (3)
•Quarterly Review - Commercial; Service; Quality; Partnership/Relationship; Continuous Improvement
•Cost Savings - 42.5K in 2004
•Global Support•US & EU Market trends•Market Visits
•Marketing •Retail Reviews•TNS Data•Mintel•Focus Groups
Griffith Laboratories What They Do For Us•Technical Expertise
•European Technical Structure•Anticipate Legislation
•Project Management •Monthly Reviews•Salt & Sugar Reduction•Quality Improvement•Ingredient Matching
•Preferential Treatment•Policy Exceptions •Queue jumping
•Innovation
•Supplier Consolidation
Griffith Laboratories What They Do For Us•Training
•Seasoning Workshops•Sensory Workshops•Functionality
•Sensory Analysis•Focus Groups•Product Assessment
Supplier Partnership
•Provided business case to customer justify non-diversification into sauce manufacture•Working together to build an electronic seamless information transfer regime•Shelf life validation •De-fused customer pressure on supplier management
Supplier Partnership- Retail pressure on Supplier
Management
•Audit on behalf of customer identified 6 non-compliances relating to 2 sauces
–Implication for supplier auditing alone amounted to 33 in total–UK (10); Belgium(1); Greece(1);Canada(1);USA (4); NL(1); Spain(4); Egypt(1);Morocco(2); China(1); France(1);Turkey(1);Tunisia(1); Albania(1)
• Meeting between Griffith technical manager and retailer •Resulted in significant changes to a number of retailer Codes of Practice
Griffith Business Growth
2002 2003 2004
LiquidsBBQSeasoningsIngredients
Acknowledgements
Alison Haselgrove
Mark Pielou
Helen Netherwood
Dawn Head of Development
Griffith Technical Manager
Griffith Sales Account Manager
