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Dynamics Day '11 - Manufacturing and Distribution Roundtable Discussion

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Presented at Intergen's Dynamics Day '11

Presented at Intergen's Dynamics Day '11

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  • 1. Manufacturing & DistributionRoundtable DiscussionNick Johnson, Sue Driscoll, Tim Schofield, Tony Young10 August 2011
  • 2. Manufacturing & Distribution RoundtableMeet tough standards U.S. Food and Drug Administration (FDA) reporting Good Manufacturing Practices (GMP) requirements FDA regulation 21 CFR Part 11 European Union Food Traceability  EU Food Traceability Law - Regulation (EC) No. 178/2002 came into force on 1st January 2005 Australasian FMCG supermarkets GS1
  • 3. Manufacturing & Distribution RoundtableDriving trends Regulations and sustainability  Regulations for facilities, packaging, food safety, taxes and duties, environmental protection, ingredient and nutrition labelling, employee health and safety…  Buying decisions are increasingly more sustainability-driven Expand markets and product lines  Targeting niche markets, e.g. cultural/religious needs, or growing economies, e.g. China and India  Service multiple sales channels  Brand extensions
  • 4. Manufacturing & Distribution RoundtableDriving trends Partner collaboration  Partnering beyond complying with major customer demand  Joint innovations, e.g. develop custom applications  Supply-chain network collaboration, e.g. supplier replenishment Consumer demand preferences  Consumers willing to pay premium for safety assurance, health benefits, eco-friendly practices  Demand changes are volatile, affected by e.g. social trends, economic downturn
  • 5. Manufacturing & Distribution RoundtableDriving trends Traceability  Much more than just compliance  Provide consumer assurance toward safety and sustainable practices  Enable fast and accurate retrieval of information in the case of product recalls
  • 6. Manufacturing & Distribution RoundtableDistributors operate between manufacturers and customers such asretailers Buy, repackage, resell, distribute Manufacturer subsidiary that only distributes (no manufacturing) in a specific geography Suppliers Distributors Customers
  • 7. Manufacturing & Distribution RoundtableManaging Global Complexity Global sources Supply chain networks Changing costs
  • 8. Manufacturing & Distribution RoundtableManaging Business Risks Customer demand Increasing compliance Managing margins Commodity cost volatility Economic volatility Business velocity
  • 9. Manufacturing & Distribution RoundtableStrategies for success From traditional Sustainability for efficiency and volume differentiation Targeting new oriented towards and compliance market segments innovation and and expanding responsive operating into new regions models Accelerating pace of change in regulations, buying patterns, customer needs, niche markets Managing the Increase increasing cost of collaboration with inputs, e.g. fuel, trading partners commodity goods
  • 10. Questions
  • 11. Thank you

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