UK grain supply chain collaboration could save producers millions

Improvements in the UK grain supply chain could help producers realise savings of millions of pounds, new research predicts.

According to the study, which focused on increasing efficiency through collaborative approaches in the cereals supply chain, efficiencies could deliver a potential annual saving of GBP42 million (US$62.3 million) in reduced haulage charges.

The plan, dubbed Project Marlin, was created by EFFP, Openfield, DHL Supply Chain and Rank Hovis. The report said that this level of saving and upstream customer benefits does not necessarily require significant capital investment. Instead, it can be achieved by establishing more efficient on-farm loading practices, improved communication and coordination between farmers and hauliers, combined with shorter onsite waiting times at delivery destinations.

"EFFP has been working with Openfield, DHL Supply Chain and Rank Hovis for the past two years on this project and it shows what potential driving out inefficiencies could have in delivering cost reductions for all those involved," said Duncan Rawson, associate director, EFFP.

The whole-chain collaboration encompassed a two-day pilot study at Rank Hovis' Solent mill in October 2009 which included testing a 15-minute haulier delivery window instead of the two-hour usual slot.

"We have also been working very closely with farmers, hauliers, merchants and other stakeholders and the National Farmers Union (NFU) to identify the issues and the mechanics needed to resolve the chain inefficiencies," Rawson said. "What's so heartening about the results is that it's not going to be huge capital investment that will make the most gain, it is simple changes to processes which the whole chain can contribute towards to achieve."

As a result of the project, Rank Hovis is now embarking on Project Swordfish which will extend the trial for approximately three months. The project will also examine the feasibility of a 15-minute slot and include all partners in the chain. This project is funded by Defra's Agricultural Development Scheme.