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Muntons presentation to BC Forum 5 th September 2013 Sarah Phillips – Head of Procurement. The facts A brief history of Muntons plc. 1921 Muntons was incorporated as a company. 1948 Moved to Stowmarket. 1964 Expanded to Bridlington. 2007 Singapore office opened. 2009 US company
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5th September 2013
Sarah Phillips – Head of Procurement
1921Muntons was incorporated as a company
1948Moved to Stowmarket
formed based in Seattle
2010Office opened in Bangkok
At Bridlington and Stowmarket we make around 180,000 tonnes of malt
Enough for 2340 million pints of beer!
We are in the world’s top 20 manufacturers
We produce around 45,000 tonnes of malted ingredients, the largest in Europe and arguably the world.
66 Agents and Distributors globally supplying 62 countries
Greenest maltster in the world – lowest carbon malt commitment
Delivering to customers from 1kg packs to 29 tonne bulk
Diversification of product and customer into sustainable growth areas through innovation
Central Services Division
Focused on brewing and distilling markets
Focused on diverse markets • Food • Bakery • Beverages• Confectionary • Pharmaceuticals • Micro Brewery • Home beer and wine
• Financial services • Information systems support • Compliance management• Human resources.
Investing in our people
Investment in quality staff
Investment in training
Investment in relationships with customers and suppliers
Community • Customer • Services • Employees
• Year round responsibility
• Something we have done for a while – but not formalized
• Involvement to continue in key areas:- Environment- Education- Employees - Local community.
Striving to constantly improve standards of quality in all we do, showing consideration for our environment and respecting business relationships with both customers and suppliers
ISO 9001:2008 ISO 14001:2004 ISO 22000:2005 ISO50001:2011 BRC
Quality Environment Food Safety Energy Global Standard
Management System Management System Management System Management System Food ver5
American Institute All cereal raw materials All products assured Muntons Malt are Organic Certification
of Baking sourced from GM free “Assured UK Malt” (Stowmarket site)
(Milled products) accredited farms Suppliers
Building a Sustainable Future
This is the common objective that links all aspects of Muntons business activities. An ongoing process that will ensure our goods are supplied in an economical, environmental and socially responsible way, now and into the future.
8 years ago working with consortium on water recycling
5 years ago first carbon footprint calculation: now 5th iteration
Identification of carbon hotspots driven capital programme: energy, recycling
Involvement in government and supply chain advisory groups
Wider supply chain involvement downstream
Focus on practical solutions that have environmental and financial benefit
Muntonsare helping farmers save money and reduce the supply chain carbon footprint
Increasingly complex & changing markets
Farmers & Merchants
Manufacturer & Wholesaler
Lead time gap
Construction and Engineering
Automotive USA and Retail
Customer Accepted LeadTime
Order Penetration point
Dedicated Grain Supply Chain Team.
Centralised Non-Grain Procurement Team.
Supplier relationships, working closely with farmers and merchants
Long term supply agreements to secure supply and manage price volatility
Collaboration with customers through long term supply agreements backing off risk
Educating customers on barley risk
Agrarfrost, Agroterra, Aviko, Barilla , CIO Parma, CocaCola, Danone, Farm Frites, Fonterra, General Mills, Heineken, Kraft, Kellogg, Lamb Weston Meijer, McCain, McDonald's, Nestlé, Pepsico, Unilever
“Friends in Rotation”
1 or 2 suppliers per mode of transport, transactional relationships primarily driven by cost and turnover
Low level understanding of each others’ businesses and supply chains
Internal inefficiencies driving up costs
Reduce transport costs, “missed tricks” and untapped potential benefit from economies of scale
To reduce operating costs (e.g. Transport)
Remove non-value added activities, share benefits of improvements
Improve customer service performance
1300 live vendors, focus on critical and high value ones, longer term supply agreements
700 direct materials purchased from over 100 vendors going into approximately 750 finished product lines sold to nearly 600 customers globally
Stringent supplier approval process (quality, food safety, sustainability, ethical, CSR , capability, business continuity plans/management system) – visits, audits)
Continual assessment of supplier performance, complaints & corrective actions (quality systems), feedback to suppliers and exchange of information
Develop sustainable supply chains which our customers want to lock into
Develop strategic supplier partnerships which we want to lock into
Act as a catalyst for supply chain discussions across many diverse industries