Value Chain Analysis

Libra enhanced Supply Chain collaboration between a leading UK retailer and a global food manufacturer, leading to a £6.2m saving a contract agreement that continued to deliver savings across its lifetime.

Background

The end-to-end supply chain model between Bakkavor and Marks & Spencer was acknowledged to be sub-optimal in both design and execution. Consequently an opportunity existed to design an operating model which achieved a lower cost whilst also meeting and exceeding existing quality and service expectations. The project focused on identifying opportunity within the Italian Ready Meal supply.

Approach

Working collaboratively with teams from both Bakkavor and M&S, over 40 stakeholders were engaged to complete a desktop analysis of the entire supply chain. Quantitative analysis from M&S Forecasting Processes through Manufacturing through to Store Waste was supported by observations and interviews with key stakeholders to challenge existing custom and practices, affecting not only the Italian Ready Meals category but the wider chilled and short shelf life supply into M&S.

Project Findings

Five key focus areas were identified where immediate benefits could be realised: Raw Material Sourcing, Product & Process Value Engineering, New Product Development Process, Store Waste Reduction and Supplier Performance Management System. A programme of work was defined and agreed to be jointly delivered by Cucina Sano and M&S.

Results

A key output from the project was the acceptance of the joint commitments required through the supply chain to unlock the identified opportunities. As a result a 4-year supply deal was agreed between supplier and retailer with results plans committed across the end-to-end supply chain, including changes to “A” List ingredients, non-value adding activities were identified for removal, NPD process redesigns & agreed and reduction in make days per week.