Dairy Crest aims for savings with single supply chain

20 February 2013

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20 February 2013 | Anna Reynolds

Dairy Crest expects to make annual savings of £5 million by consolidating its dairy and food businesses into one, creating a unified supply chain.

From 1 April, Mike Barrington will join the management board and lead the integrated supply chain, having been supply chain director for the dairies business. The liquids, spreads and cheese divisions will be merged into one, eliminating duplication and providing a more efficient service to customers.

Mark Allen, chief executive of Dairy Crest, commented: “The reorganisation announced today is right for Dairy Crest. It reflects our focus on consumers and customers as we continue the progress we have made in simplifying the business and becoming more efficient. It will reduce our annual overhead costs by at least £5 million.

“It has also provided an opportunity to refresh the senior management team.  It allows the next generation of talented managers in the business to develop and attack the opportunities we have in front of us with renewed vigour.”

Savings will also be made following the restructure of the group’s management board. Managing director of the dairies division Toby Brinsmead, has overseen the recent modernisation of Dairy Crest’s supply chain, which involved a three-year, £75 million investment programme focusing on three core dairies at Severnside, Chadwell Heath and Foston and closing two dairies at Aintree and Fenstanton. Brinsmead will leave the business in May.

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