May 17, 2020

Food supply chains at risk in event of 'cliff edge Brexit'

Food supply chains
Brexit
Supply Chain
UK
James Henderson
3 min
Supply Chain Digital analyses the effect Brexit will have on supply chains
Fragile food supply chains are at major risk if the UK fails to secure a Brexit deal, according to the British Retail Consortium (BRC).

The group has w...

Fragile food supply chains are at major risk if the UK fails to secure a Brexit deal, according to the British Retail Consortium (BRC).

The group has written to UK Prime Minister Theresa May and the European Union’s Chief Brexit Negotiator Michel Barnier to highlight the potential for damaging consequences for millions of UK consumers and tens of thousands of EU-based producers if an agreement in the Brexit negotiations is not reached that protects the free flow of goods between the EU and UK from 29 March 2019.

A third of the food consumed in the UK is imported from the EU.

In a statement, BR said: “Our letter highlights how the UK’s highly complex food supply chain – and the excellent value and choice it offers UK consumers – depends upon frictionless trade with the EU. The livelihoods of tens of thousands of farmers and food producers in the EU also depend on it.

“This supply chain is fragile. Failure to reach a Brexit deal – the cliff edge scenario – will mean new border controls and multiple ‘non-tariff barriers’ through regulatory checks, creating delays, waste and failed deliveries.

This could lead to dramatic consequences, with food rotting at ports, reducing choice and quality for UK consumers. It could also lead to higher prices as the cost of importing goods from the EU increases. And in the EU, £21 billion of exports to the UK are at stake.”

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Commenting on it, Richard Pennycook, Chairman of the British Retail Consortium said: “We must avoid a cliff edge scenario on the 29 March 2019 at all costs. Failure to achieve a smooth transition will create a lose-lose scenario for UK consumers and EU producers. Our food supply chain is complex, highly organised and ultimately fragile.

“Frictionless trade is essential if the industry is to continue to provide the level of choice and value in shops that UK consumers are used to seeing. It is now of the utmost importance that the UK Government proposes a workable solution to the backstop that gets the Withdrawal Agreement over the line and allows for a smooth transition.

“We need the EU to be flexible and creative in negotiation and recognise what is at stake for exports to the UK. Time is running out.”

KEY FACTS

• 50% of Britain’s food is imported and of that 60% comes from the EU-27.

• In 2016 3.6 million containers from the European Union passed through UK ports, just under 10,000 per day, delivering 50,000 tonnes of food to UK consumers.

• Salad leaves can be picked and loaded onto lorries in Spain on a Monday, delivered to UK stores on a Thursday and still have 5 days’ shelf life.

• BRC analysis finds that food and beverage products would face an average increase in the cost of importing from the EU of up to 29% from non-tariff barriers, under a no-deal scenario.

• BRC figures estimate that more than 12,500 small retail businesses will be at high risk of going bust in the event of no deal.

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May 13, 2021

5 Minutes With: Jim Bureau, CEO Jaggaer

SupplyChain
Procurement
riskmanagement
JAGGAER
3 min
Jaggaer CEO Jim Bureau talks data, the power of procurement analytics, and supply chain risk management

What is data analytics, and why is it important for organisations to utilise?

Data analytics is the process of collecting, cleansing, transforming and analysing an organisation’s information to identify trends and extract meaningful insights to solve problems. 

The main benefit for procurement teams that adopt analytics is that they’re equipped to make faster, more proactive and effective decisions. Spend analysis and other advanced statistical analyses eliminate the guesswork and reactivity common with spreadsheets and other manual approaches and drive greater efficiency and value. 

As procurement continues to play a central role in organisational success, adopting analytics is critical for improving operations, meeting and achieving key performance indicators, reducing staff burnout, gaining valuable market intelligence and protecting the bottom line. 

How can organisations use procurement analytics to benefit their operations? 

Teams can leverage data analytics to tangibly improve performance across all procurement activities - identifying new savings opportunities, getting a consolidated view of spend, understanding the right time for contract re-negotiations, and which suppliers to tap when prioritising and segmenting suppliers, assessing and addressing supply chain risk and more. 

Procurement can ultimately create a more comprehensive sourcing process that invites more suppliers to the table and gets even more granular about cost drivers and other criteria. 

"The main benefit for procurement teams that adopt analytics is that they’re equipped to make faster, more proactive and effective decisions"


Procurement analytics can provide critical insight for spend management, category management, supplier contracts and negotiations, strategic sourcing, spend forecasting and more. Unilever, for example, used actionable insight from spend analysis to optimise spending, sourcing, and contract negotiations for an especially unpredictable industry such as transport and logistics. 

Whether a team needs to figure out ways to retain cash, further diversify its supply base, or deliver value on sustainability, innovation or diversity initiatives, analytics can help procurement deliver on organisational needs.

How is data analytics used in supply chain and procurement? 

Data analytics encompasses descriptive, diagnostic, predictive and prescriptive data. 

Descriptive shows what’s happened in the past, while diagnostic analytics surface answers to ‘why’ those previous events happened. 

This clear view into procurement operations and trends lays the groundwork for predictive analytics, which forecasts future events, and prescriptive analytics, which recommends the best actions for teams to take based on those predictions. 

Teams can leverage all four types of analytics to gain visibility across the supply chain and identify optimisation and value generating opportunities.

Take on-time delivery (OTD) as an example. Predictive analytics are identifying the probability of whether an order will be delivered on time even before its placed, based on previous events. Combined with recommendation engines that suggest improvement actions, the analytics enable teams to proactively mitigate risk of late deliveries, such as through spreading an order over a second or third source of supply. 

Advanced analytics is a research and development focus for JAGGAER, and we expect procurement’s ability to leverage AI to become even stronger and more impactful.

 

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