Muntons presentation to BC Forum
5th September 2013
Sarah Phillips – Head of Procurement
The facts
A brief history of Muntons plc
1921
Muntons was
incorporated
as a company
1948
Moved to
Stowmarket
1964
Expanded to
Bridlington
2007
Singapore
office opened
2009
US company
formed based
in Seattle
2010
Office opened
in Bangkok
What we do
180,000
20
At Bridlington and Stowmarket we make
around 180,000 tonnes of malt
We are in the
world’s top 20
manufacturers
of malt
45,000
Enough for 2340 million pints of beer!
We produce around 45,000 tonnes of
malted ingredients, the largest in Europe
and arguably the world.
Local Supply – Global Customers
66 Agents and Distributors globally supplying
62 countries
Greenest maltster in the world – lowest carbon malt
commitment
Delivering to customers from 1kg packs to 29 tonne bulk
Product range and industry scope
Diversification of product and customer into sustainable growth
areas through innovation
Malt
Focused on brewing and
distilling markets
Malted
Ingredients
Focused on diverse markets
• Food
• Bakery
• Beverages
• Confectionary
• Pharmaceuticals
• Micro Brewery
• Home beer and wine
Central Services
Division
• Financial services
• Information systems support
• Compliance management
• Human resources.
Investing
Our
People
Investing ininour
people
Investment in
quality staff
Investment in
training
Investment in
relationships with
customers and
suppliers
Corporate Social Responsibility
involve all stakeholders
Community • Customer • Services • Employees
• Principle enshrined in law
• It is not old fashioned
philanthropy/donations to
good causes
• It is the contribution of
business to the
Government’s sustainable
development goals
• Currently voluntary, taking
into account economic social
and environmental impacts
of companies’ operations –
over and above compliance
• Year round
responsibility
• Something we have
done for a while – but not
formalized
• Involvement to
continue in key areas:
- Environment
- Education
- Employees
- Local community.
We like to do business the right way
Striving to constantly improve standards of quality in all we do,
showing consideration for our environment and respecting
business relationships with both customers and suppliers
ISO 9001:2008
Quality
Management System
ISO 14001:2004
Environment
Management System
ISO 22000:2005
Food Safety
Management System
ISO50001:2011
Energy
Management System
BRC
Global Standard
Food ver 5
X
American Institute
of Baking
(Milled products)
All cereal raw materials
sourced from
accredited farms
All products assured Muntons Malt are
GM free
“Assured UK Malt”
Suppliers
Organic Certification
(Stowmarket site)
Muntons:
Building a Sustainable Future
Sustainability
This is the common objective that links all aspects of
Muntons business activities. An ongoing process that
will ensure our goods are supplied in an economical,
environmental and socially responsible way, now and
into the future.
Where has Sustainability taken us?
8 years ago working with consortium on water recycling
5 years ago first carbon footprint calculation: now 5th iteration
Identification of carbon hotspots driven capital programme: energy, recycling
Involvement in government and supply chain advisory groups
Wider supply chain involvement downstream
Focus on practical solutions that have environmental and financial benefit
Muntons are
helping farmers
save money and
reduce the
supply chain
carbon footprint
Factors driving supply chain complexity
Innovation
Volatility
Risk
Technology
Increasingly
complex &
changing
markets
Stakeholder
demands
Position in Supply Chain
Farmers &
Merchants
Customers
Consumers
Manufacturers
Muntons
Manufacturer
& Wholesaler
Retailers
Distributors
Agents
buildingourbusinesstherightway
Supply chain
challenges
Lead time gap
Construction and Engineering
Automotive Europe
Automotive USA and Retail
Time horizon
Source
Make
Deliver
Lead Time Gap
Customer Accepted Lead Time
Order Penetration point
Muntons
Development of
Procurement &
Supply Chain
Management
Dedicated Grain Supply Chain
Team.
Centralised Non-Grain
Procurement Team.
Managing barley risk
Supplier relationships, working closely
with farmers and merchants
Long term supply agreements to secure
supply and manage price volatility
Collaboration with customers through long
term supply agreements backing off risk
Educating customers on barley risk
Supply Chain Collaboration
Agrarfrost, Agroterra, Aviko,
Barilla , CIO Parma, CocaCola,
Danone, Farm Frites, Fonterra,
General Mills, Heineken, Kraft,
Kellogg, Lamb Weston Meijer,
McCain, McDonald's, Nestlé,
Pepsico, Unilever
Logistics is CORE
1 or 2 suppliers per mode of transport,
transactional relationships primarily
driven by cost and turnover
Low level understanding of each others’
businesses and supply chains
Internal inefficiencies driving up costs
Reduce transport costs, “missed tricks”
and untapped potential benefit from
economies of scale
Our chosen strategy is LLP
To reduce operating
costs (e.g. Transport)
Remove non-value
added activities,
share benefits of
improvements
Improve customer
service performance
Supplier management
1300 live vendors, focus on critical and high
value ones, longer term supply agreements
700 direct materials purchased from over 100
vendors going into approximately 750 finished
product lines sold to nearly 600 customers globally
Stringent supplier approval process (quality, food safety, sustainability, ethical,
CSR , capability, business continuity plans/management system) – visits, audits)
SEDEX membership
Continual assessment of supplier performance, complaints
& corrective actions (quality systems), feedback to
suppliers and exchange of information
Overriding objectives
Develop sustainable
supply chains which
our customers want to
lock into
Develop strategic
supplier partnerships
which we want to lock
into
Act as a catalyst for
supply chain
discussions across
many diverse industries