Look at supply chain 'through lens of vertical integration' to solve problems

Will Green is news editor of Supply Management
13 November 2014

Imagining how your supply chain would look if it was vertically integrated can provide solutions to problems, a conference was told.

Malcolm Basey, supply chain director at Morrisons, said the company was the second largest manufacturer of fresh food in the UK and this gave them a high level of control over the supply chain.

Speaking at the IGD Supply Chain Summit, Basey said: “Not everybody can have vertical integration but what we can do is look at the problem through the lens of vertical integration, and look at where opportunities might lie in an end-to-end supply chain. What would you do differently if you were vertically integrated?”

Basey said it was a "challenging time" for supermarkets because of changing shopping habits and the rise of discount stores.

“To thrive supermarkets need to have a point of difference,” he said. “The supply chain has a really important role to play because it’s one of the biggest controllable costs.

"Sixty per cent of fresh food in Morrisons comes through this vertically integrated supply chain.”

Basey also said their beef supply chain was strictly controlled, with buyers visiting farms in person and cattle tracked with ear tags and passports.

“Right product, right place, right time really is the goal. Supply chain will play a key role in delivering success in any evolving marketplace,” he said.



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