Morrisons revamps supply chain

28 March 2007
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29 March 2007 | Antony Barton

Supermarket chain Morrisons will improve its distribution and supply chain as part of a three-year £450 million investment plan.

Marc Bolland, the chief executive since September, announced in his six-month strategic review that Morrisons would bring in more "shelf ready" products.

A spokesman told SM that such products include bread and fresh produce, which are delivered from the store's own suppliers. They come in crates that are ready for store display and can be returned once used, reducing packaging.

The move is in line with the "Courtauld commitment", which Morrisons and 12 other grocery retailers signed up to in 2005, agreeing to cut food waste and packaging.

The spokesman could not say how much money would be invested in new product lines but he did state that the chain was always searching for "new and innovative suppliers".

It will also invest in its manufacturing businesses to maintain control of vital parts of the supply chain. Bolland said they were vital to its aim of being "the food specialist for everyone".

He added that owning such functions provides better quality sourcing and swifter passage for products to market.

SMmar2007

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