Supplier Relationship Management in the Poultry Supply Chain

Topics: Supply chain management, Supply chain, Management Pages: 8 (2709 words) Published: December 5, 2012
Carton Bros. manor Farm
Co. Cavan
Relationship Management within manor farm supply chain

Estelle Sheanon
Estelle Sheanon

1.0 Introduction3
2.0 Company Analysis3
2.1 Carton Brothers Supply Chain4
2.2 Lifecycle of the chicken4
3.0 Issue Analysis5
3.1 Volatile world market5
3.2 Supermarket price wars6
3.3 Economic downturn and implication on capacity7
3.4 Identification of supply chain issue7
4.0 Best Practice Analysis7
4.1Supply chain collaboration8
4.2 Supply chain formalization8
4.3 Supplier relationship management9
4.4 Successful supplier relationship management initiatives9
5.0 Recommendations9
5.1Supplier-processor-customer summits10
5.2 Actively build and sustain trust with suppliers and retailers10
5.3 Supply chain manager role10
6.0 Conclusions11

1.0 Introduction
This report shall research, analyze and provide recommendations to Carton Brothers, Manor Farm on supplier relationship management in their supply chain. 2.0 Company Analysis
Manor Farm is the chicken brand of Carton Brothers. It was established in 1775 in the Dublin markets. In 1970 the business relocated to a custom built factory in the small east Cavan village of Shercock. The company is now in the 8th generation of Carton family control with Vincent Carton currently holding the position of managing director. The company employs 650 people directly, contract in 150 farmers and provide indirect employment to haulage enterprises, engineers and Department of Agriculture officials etc. Cartons is committed to the “Love Irish Food Campaign” which guarantees food is produced and processed in Ireland thus ensuring standards of hygiene excellence, traceability, job creation and retention. Cartons- EU food production plant number IE803- has one of the most modern and sophisticated processing plants in Europe, producing up to 800,000 birds per week. The company supplies all major supermarkets with own brand and Manor Farm brand chicken e.g. SuperQuinn, Tesco, Dunnes, SuperValu, Aldi, the catering sector and individual butcher shops. Cartons retain total control over all stages of the poultry supply chain to point of processing. Their contracted hatchery is Department of Agriculture approved; ACP registered and adheres to all guidelines imposed by the company themselves. Contracted farmers grow only for Cartons and must comply with E.U, Irish, company processes and guidelines. Cartons is dedicated to the highest quality Irish chicken products. The company had a turnover of €168 million in 2011. It has been awarded the internationally recognised ISO 22000 standard, BRC issue 5 higher level standard, Bord Bia Quality Assured Mark and the EIQA hygiene mark (Carton Brothers, 2012).

2.1 Carton Brothers Supply Chain
Cartons employ a vertically integrated supply chain. They have extended their influence in the domestic market by contracting in all stages (except distribution) and coordinated it as a single supply chain system.

2.2 Lifecycle of the chicken
Eggs are sourced in hatcheries from laying hens; they are then hatched for 21days. When the chickens are 1 day old they are transported to ‘growing houses’ where they are raised for between 5-7 weeks depending on market demand for weight. From the growing houses they are then dispatched to the processing plant; they are killed, plucked, cleaned and processed into the final product within 3 hours to ensure maximum freshness and longevity of shelf life. They are then transported from the factory to central distribution points of the supermarkets, to local distributors for catering and butcher customers and to export markets.

Cartons export surplus chickens to Britain and the rest of Europe....
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