Big cost savings from small supply chain changes

By Matt Atherton contact

- Last updated on GMT

Related tags: Management

Food and drink manufacturer’s costs could be reduced by making small changes to be more sustainable throughout the supply chain, said the Food and Drink Federation’s (FDF’s) chief scientific officer Helen Munday.

If just one truck reduced its average speed by just a little, then the fuel efficiency benefit would be fractional, Munday explained in this exclusive audio interview. But, if every truck in an entire manufacturer’s fleet made that change, the reduction in costs would make “a huge difference”​, she said.

‘Really good business sense’

“I think it just makes really good business sense ​[to be sustainable],”​ Munday said, speaking after the FDF’s Ensuring Sustainable Supply Chains convention. “All the things we think of in our own little world as being sensible things to do – if you look after the pennies, the pounds will look after themselves – get scaled up at a massive level if you’re a really big business.”

Munday explained the meaning of sustainability for business, and why food firms should care about being sustainable.

‘The future of your business’

She said: “If you’re going to be a food manufacturer you need to use resources as carefully as you can, because basically you’re trying to take care of the future. If you’re thinking really big, it’s the future of the planet, and if you’re thinking on a business level, it’s the future of your business.”

Meanwhile, Wyke Farms md Richard Clothier said the dairy firm had not only cut costs​ by being more sustainable, but also found a commercial alternative to fossil fuels that stood up well on a cost-for-cost basis. 

Related topics: Supply Chain

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