4.6 Article

Procurement best practice in the food industry: supplier clustering as a source of strategic W competitive advantage

Journal

Publisher

EMERALD
DOI: 10.1108/13598540310463314

Keywords

food industry; purchasing; business process re-engineering; supply-chain management; organizational restructuring

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Looks at the way in which a pizza manufacturing company, supplying both branded and own-label products to the Irish and UK retail markets, undertook a major restructuring of its procurement and manufacturing processes. Numerous sub-processing activities were having adverse effects on capability utilization and manufacturing efficiency at a time of increasing demand. Process re-engineering was required. illustrates the approaches taken towards two projects: first, cheese supply and, second, packaging. Notes there was a steep learning curve for the management and operations staff and also resistance to change from within the firm and from some suppliers. Provides a list of critically important points learned from the experience.

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