BBS Hons (Management)
Supply Chain Management
Examine the importance of the Supply Chain function in a chosen company.
Lecturer: Ethna O’Connor
Submission Date: 15 April, 2013
Student Details:Word Count
Ronan Lennon X00072792 2692
Table of ContentsPage Number
1. Executive Summary3
3. Kepak’s Beef Procurement4
4. Kepak’s Supply Chain5
5. Global Supply Chain Strategy8
6. The Role of E-business10
7. The Future of Supply Chain10
8. Appendices + Diagrams11
10. Terms of References13
Kepak is a company based in Co. Meath, Ireland. They are a great example of how the supply chain management if done to the highest standard can affect the company in a positive way. Supply chain management is extremely important for fresh food companies especially with such controversy over beef products in Ireland. The standard of Kepak’s supply chain has ensured this is not a problem for them as you can see in the following report. After the process of procurement the report will show how Kepak control every detail of their supply chain. They refrigerate their beef throughout the logistic process in a meticulously detailed manor. Their business model has been adjusted so that all supply is utilised with the addition of their convenience food section. Kepak have expanded their operations globally while bringing the same standard to their procurement process. They maintain that reliability, responsiveness, flexibility, involvement and cost effectiveness is the key to their supply chain both in Ireland and abroad. Kepak have used e-business in a very effective way. They have used information systems to establish that there was excess meat they could use for their convenience foods products. The future of supply chain will be based around the advancement in technology. Such systems such as the voice control in Glanbia are leading the way in the future of supply chain. These advancements will help companies increase efficiency and lower costs. These are important factors for businesses in an economic downturn.
The Kepak Group is an Irish food processing company that has grown into one of Europe’s leading companies in this market. Kepak is divided into three Strategic Business units comprising Kepak Meat Division (KMD), Kepak Convenience Foods (KCF) and Agra Trading. Each plays a pivotal role in their growth and expansion. Supply Chain management is defined as: coordination of production, inventory, location, and transportation among the participants in a supply chain to achieve the best mix of responsiveness and efficiency for the market being served. (Hugo, Michael “essentials of supply chain management, 2nd edition p.04) Kepak’s Beef Procurement
The supply chain begins from the farmers they use. Kepak process 300,000 cattle and ensure that these 300,000 are locally sourced and make sure it performs to the highest quality. Procurement is the task of obtaining specific goods, in the timeliest way and at the best price. Kepak have a full procurement team headed by Livestock Group – Procurement Manager Johnathon Forbes. They also have a feeding specialist, Charlie Purcell on the Kepak farm which assures their beef is of a high standard. Kepak should look to update their e-procurement process in any way possible as this may cut the overall costs of their procurement. “Reducing procurement costs can have a powerful effect on a firm’s finances – a 5% cut can translate into a 30% jump in profits “- (Kothari et al., 2005)
Selection of producers
The farmers that supply their beef are covered by Bord Bia beef quality assurance scheme which...