Asda and Co-op to work together to drive supply chain efficiencies

Asda and the Co-op are pioneering a new way of supply chain collaboration, by enabling mutual suppliers to submit aggregated data on waste, water and energy to both retailers at the same time.

The retailers are working with collaboration platform 2degrees to collect the sustainability data.

Under the agreement, suppliers who serve both retailers can submit the data once, indicating their combined data should be shared with both customers.

It is hoped that by eliminating the need for duplicated information, suppliers will be able to spend more time focussing on the delivery of quality products whilst saving on time, money and resources.

Both retailers have seen suppliers benefit from the platforms delivered by 2degrees. The Co-op, one of the founding partners of multi-client platform Manufacture 2030 has already seen a drinks supplier start addressing their carbon footprint through the platform.

Andy Horrocks of Kingsland Drinks, said: “We are looking closely at a case study shared by another drinks supplier on Manufacture 2030, and using it as a model of how this key environmental process could be done, helping us to sell the idea internally.”

Princes Limited is a key supplier to both Asda and Co-op, and has spoken of the benefits of aligned data.

David McDiarmid, Corporate Relations Director at Princes Ltd, commented: “It’s great that two retailers like Co-op and Asda have embraced this approach. With all our manufacturing locations sharing their data between these customers we have cut down duplicated effort, saving time and making the entire process a lot more efficient.

“I hope other retailers will see the benefits of such a collaborative approach and consider it for their suppliers environmental reporting.”

Read more at Asda and Co-op to work together to drive supply chain efficiencies

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New Solutions for Supply Chain Risk Management: A Case Study

We are entering an era where it is becoming possible to detect supply chain risks much more quickly. A case in point is offered by AGCO. AGCO AGCO +1.96% is a global leader in the design, manufacture and distribution of a wide range of agricultural equipment. In a discussion with AGCO’s Jan Theissen, Director of Strategy and Methods, and Jake Stone, Manager of Supply Chain Risk and Contract Management, I learned about this public, Atlanta headquartered corporation’s journey to improve their sourcing and supply base risk management capabilities.

AGCO’s products are marketed under a number of well-known brands, including Challenger, Fendt, GSI, Massey Ferguson and Valtra. The manufacture and assembly of their products occurs at 34 locations worldwide and historically each of these brands was managed as a separate supply chain. Further, because the company had grown by acquisition, these different supply chains used more than 10 different enterprise resource planning (ERP) solutions for direct sourcing.

Beginning in 2012, Mr. Theissen, a newly appointed procurement leader, led a transformation of the sourcing organization. AGCO moved from a fragmented and decentralized procurement to a centralized commodity management structure in order to better leverage buying synergies and increase the overall maturity level of this organization. Implementation of standardized roles and responsibilities, and global policies and procedures, were supported by an extensive change management program. The company formed a School of Purchasing to further develop the capabilities of the organization.

The risks associated with sourcing became part of each category manager’s job; these managers became responsible for supplier risk management, not just savings. Mr. Stone was brought into establish new, systems, processes and capabilities to manage procurement risk. One thing Mr. Stone put in place was a clear communication and escalation process to deal with risks once detected.

Read more at New Solutions for Supply Chain Risk Management: A Case Study

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King Trade Capital Provides Supply Chain Finance Solution to Startup

King Trade Capital announced it has established a $1 million supply chain finance solution for a Texas based startup. KTC was contacted by a nationwide factor to help accelerate the startups sales growth in the apparel industry. The owners of the startup have extensive relationships with small to mid-size retailers and years of experience sourcing goods from overseas factories. Through their relationships in the apparel industry they were able to secure annual production programs to manufacture branded goods on behalf of several men’s and women’s brands.

Due to the fact the client was a newly established entity with no financial or operating history, they were unable to obtain funding through traditional financing sources. The client was in need of a financial partner capable of providing the capital and structure necessary to have fabric sourced and garments manufactured overseas.

Initially the client’s factories wanted cash deposits in order to purchase fabric that would then be cut and sewn into finished garments. Payment for the cut and sew operations would then be due upon shipment. The owners, knowledgeable of the risks associated with sending cash deposits overseas, were seeking a safer solution to finance their inventory purchases.

King Trade Capital evaluated the experience of the owner’s and their customer and factory relationships, ultimately gaining comfort in their ability to perform. After negotiating with the factories, King Trade Capital and the client were able to structure individualized solutions for each factory, utilizing letters of credit that allow them to purchase fabric, complete the cut and sew manufacturing process and get paid according to their terms with the Customers.

Read more at King Trade Capital Provides Supply Chain Finance Solution to Startup

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