Grain chain collaboration identifies potential annual savings of £42 million (Project Marlin)
EFFP have joined partners Openfield, DHL Supply Chain and Rank Hovis to announce the results of an industry-wide study: ‘Increasing efficiency through collaborative approaches in the cereals supply chain’ (Project Marlin).
It is estimated that savings could deliver a potential annual saving of £42 million in reduced haulage charges to the grain chain benefiting all involved from farmer to first processor. Project Marlin also outlines that this level of saving and upstream customer benefits does not necessarily require significant capital investment but could be simply achieved by establishing more efficient on-farm loading practices, improved communication and coordination between farmers and hauliers combined with shorter onsite waiting times at delivery destinations.
"EFFP has been working with Openfield, DHL Supply Chain and Rank Hovis for the past two years on this project and it shows what potential driving out inefficiencies could have in delivering cost reductions for all those involved," explains Duncan Rawson, Associate Director, EFFP.
The whole-chain collaboration encompassed a two-day pilot study at Rank Hovis' Solent mill in October 2009 which included testing a 15-minutes haulier delivery window instead of the 2-hour usual slot.
"We have also been working very closely with farmers, hauliers, merchants and other stakeholders such as nabim, and the NFU to identify the issues and the mechanics needed to resolve the chain inefficiencies," Mr Rawson adds. "What's so heartening about the results is that it's not going to be huge capital investment that will make the most gain, it is simple changes to processes which the whole chain can contribute towards to achieve."
As a result of the project, Rank Hovis is now embarking on Project Swordfish which is extending the trial for approximately 3 months, this will also look at the feasibility of a 15-minute slot and include all partners in the chain.
The project was funded by Defra's Agricultural Development Scheme.
Also part of the project a DVD and Good Practice Guidelines have been produced. These demonstrate how the adoption of good supply chain practices and processes, when combined with a positive approach to collaboration, can unlock significant value for all parties to share.
The full press release
What is Project Marlin? Access to DVD link, guide and further information
Project Marlin Guide
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