Greater co-operation along the supply chain, especially in today’s multi-channel environment, would drive greater innovation and efficiency, Nick Hay, md at Fowler Welch has claimed.
Hay used Foodex, held at the National Exhibition Centre near Birmingham in April, to disclose details of a deal between Fowler Welch and Dairy Crest to share storage and logistics at the dairy company’s national distribution centre at Bermuda Park, in Nuneaton. He explained that because of a restructuring of its product base, Dairy Crest’s distribution volume at Nuneaton had eroded.
“As a result, it was agreed that we would take control of its in-house transport, and the warehouse – while remaining under Dairy Crest’s ownership – would be a space for us to sell volume in to.” Hay added that such a partnership “would have been a lot less likely” under a prescriptive tender, which on paper looks like a successful procurement exercise, but in reality can fail to encourage innovation.
“For example, last December we invested in a new repacking system at our Heywood depot [in Greater Manchester] to help food producer Tulip repack ambient products,” said Hay. “This has reduced food miles and saved them money.”