The Food & Drink Supply Chain Health Index Survey, a first for the industry and undertaken by Culina Logistics, gained feedback from logistics management at 50 leading food and drink companies regarding the efficiency performance of their supply chains in the last year and targets and plans for the next 12 months.

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More than half of the respondents (55.8%) indicated that there were some areas of the supply chain that had underperformed in terms of creating cost efficiencies during the last 12 months. 43.8% of respondents presented a mixed picture, saying that some areas of the supply chain were on target/above target but also some areas below target. However one in five (20.8%) indicated that the outcomes of their efficiency drives over the last year were above target.

With regards to the cost efficiencies gained in the last 12 months the majority (33.3%) reported efficiency gains of between 1-5%, followed by 6-10% (22.2% of respondents) and 11-15% (11.1% of respondents). 15.6% of respondents said their organisations had achieved efficiencies of between 16-25%.

Unsurprisingly most cost efficiency gains were made in the core supply chain activities, with primary transport coming out on top, with 46.7% of respondents selecting this area, followed by secondary transport and warehousing (both 26.7%). Waste management also featured in the top four performing areas (20% of respondents) and added value services, such as product reworking and pallet management, achieved best results for one in ten of the respondents.

However, whilst these areas performed best, they were also seen as underachieving, again suggesting that respondents felt there was more potential for improvement. Warehousing (42.3% of respondents) was seen as the biggest under achiever when it came to driving further efficiencies, followed by secondary transport (30.8%), waste management (26.9%), pallet management/IT systems (both 19.2%) and product reworking (11.5%).

Nearly a third of respondents reported that their companies had identified new cost efficiencies for the first time, however the majority (69.8%) are making efficiency improvements in the same areas.

Maintaining competitiveness in the marketplace was seen as the biggest factor for driving up efficiencies in the supply chain, followed by continued pressure from retailers, downward pressure on prices and the economic climate.

The study also revealed the key focuses of the year ahead in terms of achieving efficiencies in the supply chain. These were still the core areas, with primary transport coming out on top (45.5% of all respondents), despite this being the best performing area in the last year. Primary transport was closely followed by secondary transport and warehousing, 43.2% and 38.6% of respondents respectively. Waste management was seen as increasingly important with nearly a fifth of respondents indicating that this would be one of two main focuses over the next 12 months.

Many respondents are in an upbeat mood about the prospects for the year ahead. Nearly two thirds of respondents (64.3%) are looking to generate cost efficiencies in the next year in order to grow on the success of their businesses over the last year, despite the economic downturn; whilst more than one in five (21.4%) saw cost efficiency gains as putting the company in the best position for when economic recovery returns.

However, more than one in ten reported that they are driving efficiencies to ensure survival during the current harsh trading conditions due to the continued challenging economic climate.

The majority of respondents (38.6%) are targeting cost efficiency gains of between 6-10% and more than a fifth (22.7%) are being even more bullish and targeting 11-20% gains. However, more than a quarter (27.3%) are being more cautious, indicating targets of between 1-5%.

Says Thomas van Mourik, Chief Executive of Culina Logistics: “The tough economic climate for the last two years and continuing uncertainty has put an ever increasing focus on efficiencies in the supply chain".

“The Food and Drink Supply Chain Health Index has been designed to provide a barometer for supply chain efficiencies across the food and drink sector, allowing manufacturers to benchmark their own performance. In doing so it explores efficiency performance against targets over the last year and efficiency targets and plans for the next 12 months.”

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Culina Logistics, the leading provider of logistics services for food and drink companies in the UK and Ireland, has secured a new contract with one of the world’s leading food and beverages manufacturers.

Kraft Foods, which produces brands such as Dairylea and Philadelphia, has awarded Culina Logistics a contract renewal to provide national distribution and warehousing for its wide range of products.

On the appointment of Culina Logistics, Duncan Campbell, Northern Distribution Manager for Kraft Foods Europe, said: “With so many brands and products, it’s important these are delivered to retailers without compromising their quality and shelf life. Working with Culina Logistics for the past 14 years has demonstrated their commitment to providing a fast and efficient service and we’re pleased to continue our working relationship with them.”

Kraft Food’s goods will be warehoused at Culina’s depots where orders will be processed and stock movements managed. Orders will subsequently be distributed to Kraft Food’s UK distribution base, which includes many major food retailers.

Andy Newnes, National Account Manager at Culina Logistics, said: “The extension to our partnership with Kraft Foods reflects the high quality service that we consistently offer our customers. This is complimented further by the flexible, efficient and added value services that we can offer them.”

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Granini and Little Dish have selected Culina Logistics to effectively and efficiently service their UK-wide customer retailers.
These business wins enable Culina, the leading provider of logistics services for food and drink companies in the UK and Ireland, to broaden its services and relationships with these key clients.

Andy Newnes, national account manager, Culina Logistics, says: “We’re thrilled that fantastic overseas brands like Granini turn to us to get their products to market in the UK and that our clients see true value in working with us. With many of our clients, such as Little Dish, we’ve grown and developed the account from the initial contract into expanded, long-term, trusted relationships.”

Granini, an international premium brand and one of the best-known fruit juice brands in Europe, selected Culina to help it replicate its European success within the UK market.

“Our high-quality fruit juices are available in 50 countries worldwide, and we have recently launched a premium quality chilled product,” says Steve Wheatley, Granini UK Managing Director. “The Granini brand is about delivering the highest quality and best tasting juice, and we need a logistics provider that can deliver our brand to UK consumers. We know Culina can do that.”

Little Dish, the manufacturer of fresh and healthy food for kids, has also chosen Culina to support the company’s toddler and baby food products by providing total distribution services into major retailers.

“Since April 2009, Culina has supported our toddler meals business coming out of production sites in Salisbury and then Consett, Durham, and we continue to be impressed with the company’s commitment to excellent service,” says Dave Voss, head of operations, Little Dish. “Because of this, we selected Culina to support our baby food products, which are manufactured in our new production site in south Wales.”

Newnes continues: “We have a strong commitment to provide the best customer service and the most efficient warehousing and distribution services. We work within a very competitive marketplace so we continue to focus on being a quality provider, helping to do what’s right for our clients and creating cost effective and sustainable supply chains.”

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First Milk, which handles 1.6 billion litres of milk every year and is the UK's cheddar specialist, has awarded Culina Logistics a contract to provide UK-wide distribution and warehousing for its many dairy products.

On the appointment of Culina Logistics, Sue Wilson, general manager: procurement First Milk said: “As a farmer owned co-operative, it is important that we deliver sustainable returns to our farmer Members. Working with Culina Logistics will allow us to do this by delivering an economic and efficient service and a flexible platform for future growth.”

Culina Logistics will predominantly collect packed cheese from First Milk’s site in Maelor, near Wrexham. The goods will then be warehoused at Culina’s depot in Stafford with picked orders subsequently being delivered to major food retailers, food processors and food service organisations across the UK. Culina’s Stafford depot will also provide First Milk with a sophisticated warehouse management system that will efficiently process orders and manage their stock movements.

Dave Lowe, Business Development Manager at Culina Logistics, said: “This new contract reflects our high quality service that offers flexibility, efficiency and value to all our customers. This customer focus, coupled with our ability to offer all solutions under one banner, is an important driving force in our strategy to grow the business in both the chilled and ambient markets.”

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