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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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Presentation Transcript
slide1

Muntonspresentation to BC Forum

5th September 2013

Sarah Phillips – Head of Procurement

slide2

The factsA brief history of Muntons plc

1921Muntons was incorporated as a company

1948Moved to Stowmarket

1964Expanded to

Bridlington

2007Singaporeoffice opened

2009US company

formed based in Seattle

2010Office opened in Bangkok

slide3

What we do

180,000

At Bridlington and Stowmarket we make around 180,000 tonnes of malt

Enough for 2340 million pints of beer!

20

We are in the world’s top 20 manufacturers

of malt

45,000

We produce around 45,000 tonnes of malted ingredients, the largest in Europe and arguably the world.

slide4

Local Supply – Global Customers

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

slide5

Product range and industry scope

Diversification of product and customer into sustainable growth areas through innovation

Malt

Malted Ingredients

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.

slide7

Investing in Our People

Investing in our people

Investment in quality staff

Investment in training

Investment in relationships with customers and suppliers

slide8

Corporate Social Responsibilityinvolve all stakeholders

Community • Customer • Services • Employees

  • Principle enshrined in law
  • It is not old fashioned philanthropy/donations to good causes
  • It is the contribution of business to the Government’s sustainable development goals
  • Currently voluntary, taking into account economic social and environmental impacts of companies’ operations – over and above compliance

• Year round responsibility

• Something we have done for a while – but not formalized

• Involvement to continue in key areas:- Environment- Education- Employees - Local community.

slide9

We like to do business the right way

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

X

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

slide10

Muntons:

Building a Sustainable Future

slide11

Sustainability

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.

slide12

Where has Sustainability taken us?

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

slide14

Factors driving supply chain complexity

Volatility

Innovation

Risk

Technology

Increasingly complex & changing markets

Stakeholder demands

slide15

Position in Supply Chain

Farmers & Merchants

Customers

Manufacturers

Muntons

Manufacturer & Wholesaler

Consumers

Agents

Retailers

Distributors

slide16

Supply chain challenges

Lead time gap

buildingourbusiness therightway

Construction and Engineering

Automotive Europe

Automotive USA and Retail

Time horizon

LeadTime Gap

Customer Accepted LeadTime

Order Penetration point

Muntons

slide17

Development of Procurement & Supply Chain Management

Dedicated Grain Supply Chain Team.

Centralised Non-Grain Procurement Team.

slide20

Managing barley risk

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

slide21

Supply Chain Collaboration

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”

slide24

Logistics is CORE

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

slide25

Our chosen strategy is LLP

To reduce operating costs (e.g. Transport)

Remove non-value added activities, share benefits of improvements

Improve customer service performance

slide26

Supplier management

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)

SEDEX membership

Continual assessment of supplier performance, complaints & corrective actions (quality systems), feedback to suppliers and exchange of information

slide27

Overriding objectives

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