Scottish food and drink businesses are developing more long-term, positive collaborative trading relationships with their supply chain partners, according to the second SAOS/Cultivating Collaboration (C2) survey on collaboration in the industry.
Date:
Mon, 14 Nov 2011
Source:
C2/SAOS
The first survey took place in 2008 and the questions remained the same in order to monitor changes in attitudes to collaboration and collaborative behaviour over the C2 project's three-year period.
The main findings of the 2011 survey are:
● Over 70% of companies are working with supply chain partners to develop new products, forecast demand and supply and develop new product specifications.
● 88% of those surveyed reported that they had a number of long-term relationships with supply chain partners, based on trust, shared goals and benefits (up 5% from 2008). 35% said many of their relationships were like that (up 3%).
● 80% felt that the benefits of those partnerships were shared fairly between the participants (up 7%).
● Businesses are also sharing more resources in 2011 compared to 2008, particularly sharing equipment (up 10%), transport (up 8%) and training (up 7%).
● Improvements in information flow up and down supply chains were also reported - with 20% stating that there was full, open sharing of information throughout the supply chain (up 8%) and 61% stating that they felt there was openness with their immediate suppliers and customers (up 3%).
Commenting on the survey, Alan Stevenson, SAOS supply chain development director and director of the C2 project said: "We recognised from the start of the C2 project that changing attitudes to collaboration is a long-term process - in other sectors evidence has shown that it can take 10-15 years - but we are very pleased with the progress which has been made so far.
"The results indicate that there has been a positive shift in terms of improvements in the industry's trading relationships, information flows and mutual sharing of knowledge and resources.
"However, we recognise there is still a long way to go before supply chains are fully open and transparent with clearly aligned business goals that can deliver additional commercial advantage.
"The long-term ideal is for businesses to consider collaboration as a readily acceptable standard option when developing strategies for growth."
The survey, which was carried out between June and September 2011, attracted 259 responses from primary producers, marketing co-operatives, wholesalers/distributors, processors and retailers, representing all sectors of the Scottish food and drink industry.
The C2 project, which is jointly funded by SAOS and the Scottish Government, was established to stimulate, encourage and support collaboration in Scottish food and drink supply chains to improve profitability, market responsiveness, efficiency and sustainability.
C2 Project.
SAOS.
More information is available from Fiona Hamill.