MANAGING

A
SUPPLY CHAIN
(A Case study based on Warburton’s Business
structure)
 Supply Chain
The total sequence of business processes, within a single or
multiple enterprise environments, that enable customer
demand for a product or service to be satisfied—(logistic
bureau UK)
A supply chain is a system of organizations, people,
technology, activities, information and resources involved in
moving a product or service from supplier to customer.
Supply chain activities transform natural resources,
raw materials and components into a finished product that is
delivered to the end customer. In sophisticated supply chain
systems, used products may re-enter the supply chain at any
point where residual value is recyclable (Wikipedia)
Supply Chain cycle

Supplier Material Flow Customer

Management Management
Information Flow

Schedule / Stock
Resources Deployment Delivery
Goals of Supply chain management

Compression (Planning/Manufacturing/Supply)
Conformance (Forecasts/Plans/Distribution)
Co-operation (Cross -Functional)
Communication (Real Time Data)
 About Warbutons
130 years old organization with headquarters in Bolton, Lancashire,
second largest grocery brand in the UK
The company is the largest wrappedbread brand in the country, with a
market share of 25.2%.
Warburtons employs approximately 5,000 people in 14 bakeries and 15
distribution depots.
Every day more than two million bakery products are made and
distributed around the country.
Warburtons is a family business with family values. The fifth generation
of the family is dedicated to the tradition of baking.
Warbutons are known for their Corporate social responsibility, they
follow “Success with responsibility “ as their moto.
Long term plans of Warburtons
Sectors in Warburtons Supply chain
Primary sector
Secondary sector
Tertiary sector
Primary Sector
This is the first sector of industry in the supply chain
process. Generally this sector is concerned with
natural resources and the extraction of raw materials.
 A good quality standard and measures for sustainable
development at this stage add real value to the final
products.
Secondary Sector
This is mainly the service sector in the supply chain
cycle, this generally involves the manufacture or
refining of goods from the raw materials obtained in
the primary sector.
Establishing long term relation with service providers
and proper quality specifications at this stage helps in
getting consistent and timely service.
Teritory Sector
This is where services are provided to businesses and
consumers. This is the final leg of supply chain and
need at this stage is to have “appropriate channels” and
establishment of support system to add proper value
Warburtons Primary Sector
Warbutons work very closely with farmers in the UK and
Canada and 95% supply comes from established sources.
Warburtons specify the types and varieties of wheat that are
grown. This helps to ensure that the quality of bread is
maintained. It also helps Warburtons to bake bread that is
consistent in taste, softness and freshness.
Warburtons work with farmers to develop more sustainable
practices, particularly through the reduced use of fertilisers.
In its aim to develop long-term sustainable relationships with
its farmers, Warburtons prefers to pay a little more for its
wheat to ensure high quality consistent supply of materials.
Warburtons secondary Sector
Wheat grown for Warburtons is kept separate from other
wheat and cereals so supply can be traced back to the
farms.
Wheat is milled separately by flour millers, some of
whom have supplied flour for Warburtons for more than
50 years. They turn grain into a partfinished good – flour
– the basic ingredient for bread
Wheat is shipped to the ports closest to the mills. The
mills in turn produce flour for their closest bakeries. This
reduces transport costs and helps to create a responsible
supply chain.
Warburtons Teritory market
From its 14 bakeries and 15 depots around the country
Warburtons is able to meet this expectation.
Warburtons has more than 900 delivery vehicles at its
various bakeries. It manages the distribution to stores
from bakeries across England, Scotland and Wales. This
ensures that products are delivered on time. It also means
that the products are fresh when they are delivered and
that quality is guaranteed.
Warburtons, provides retailers with market research data
purchased from market research agencies. This data
informs retailers of selling trends and buying habits.
Warburtons contribution to society
Apart from Delivering satisfaction to customer it contributes to
society through various means
Warburtons is investigating the use of alternative and
renewable sources of energy.
To reduce its carbon footprint, Warburtons uses software to
track delivery routes to ensure that they are as efficient as
possible. It also makes deliveries at different times of the day to
avoid much of the congestion on the road and save a substantial
amount of fuel. Warburtons customers are retailers. These may
be large supermarkets or small local independent shops.
Provides market research data and inputs.
A Success story.. through supply chain
management
Warburtons understood the needs and tried to address
them in a socially responsible manner
It developed and supported the basic input market
leading to synergistic development of both.
It developed sustainable relationship with service
providers and ensured timely service of desired quality.
It developed well defined distribution networks which
helped customers to get fresh products and gave
Warburtons its eligible repute.
.
Examples where good SCM has
become a strategic asset
Wal-Mart’s partnership with Proctor & Gamble to
automatically replenish inventory
Dell’s innovative direct-to-consumer sales and
build-to-order manufacturing
ICICI Lombards cash less tie up with 4800
Garages 2800 hospitals across India
RIM’s JV with almost all leading mobile service
providers for sale of its mobile and connectivity.
SCM in a Nut shell
Thank
you