With the global population expected to reach nine billion by the year 2050, the question of how to produce food for all those extra mouths is a worrying one for anyone involved in agriculture.

1. Digital Re-print -
May | June 2014
The importance of a secure supply chain
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2. W
ith the global population
expected to reach nine
billion by the year 2050, the
question of how to produce food for all
those extra mouths is a worrying one
for anyone involved in agriculture.
Suppliers of feed and grain to the world’s
livestock and animal industry are under
immense pressure to not only provide an
efficient service, but to ensure that products
meet tough safety standards.
While few companies are completely
transparent about their supply chain –
intense competition makes them wary of dis-
closing too much – in a market where trust
and reliability is a crucial element of business,
customers need to see the full picture.
It’s a point that Chris Barnes knows all
too well, in his new role as head of supply
chain and procurement at pathogen control
specialist Anitox.
“Trust is what underpins the client rela-
tionship in any business,” says Mr Barnes and
the animal feed safety industry is no different.
“Coupled with that is the expectation
from key customers, of an ever increasing
range of value-added services and innovative
products that will improve their feed conver-
sion ratios (FCRs),” adds Mr Barnes.
Supplying clean and safe feed is of para-
mount importance to businesses in the feed and
grain market, especially where animal health is
concerned - there is no room for error.
As a specialist in the control of pathogens
and microbes in feed, Anitox has to ensure
that its products reach customers in the
best possible condition, being able to fulfill
potential and perform at maximum efficacy.
“In this marketplace your commercial
success is dependent on the reliability and
performance of your products. Anitox prides
itself on its science-backed approach to busi-
ness, so the challenge is to build a supply sys-
tem that reflects this principle while building
us a reputation as a reliable supply partner.
“In the feed safety industry that kind of
reputation is invaluable,” says Mr Barnes.
Understanding demand
Supply excellence starts with a thorough
understanding of a company’s clients’ businesses,
he explains. That means gathering a full under-
standing of demand and how it fluctuates –
fundamental knowledge if you’re to ensure your
product is in the right place at the right time.
“There’s no substitute for this. Neglect it
and all confidence will be lost.”
Mr Barnes cites the example of one of
the company’s main products, Termin-8.
It’s a feed additive that’s used to eliminate
pathogens and microbes from animal feed.
“To reach the intended results and fulfill
customer’s expectations, our product must
be delivered on time, in a safe and secure
manner. Part of the success of our products
depends upon a fully-functioning supply
chain system, that can guarantee safe passage
of our product so that it delivers the results
we promise.”
Armed with the knowledge and under-
standing of a client’s demand profile, fore-
casting models can identify and highlight
occasions when the supply chain might fall
short, as well as predicting when product
needs to be readily available for despatch.
Planning to match demand is the core of
a solid and reliable supply chain model.
Global supplies
Modern global trade means many manu-
facturing companies are reliant on raw mate-
rial supply from anywhere in the world,
thanks to ever more efficient transportation
links.
Of course, while that means costs can
be reduced, it brings with it a particular type
of risk.
“Price and quality may dictate that you
buy your raw materials from halfway across
the world,” Mr Barnes acknowledges.
“But the further the product has to travel,
the more likely it is that something will go
wrong at one point or another.
“In a supply chain role, you’re prepared
to expect the unexpected. What is Plan B?
“For us, it’s about ensuring there’s always
someone else who can supply your most
important raw materials at very short notice.
No matter what the problem, or whose
fault it was, telling your customer that our
supplier let them down simply won’t suffice.
We must be prepared to present alterna-
tives and work on a solution to supply our
customer’s needs.”
Supply chain links
It’s inevitable that supply chain links will
break from time to time, but the measure
of a good company is how well it deals with
those situations.
“Demand fluctuation presents us with
our trickiest challenge,” continues Chris,
“which results in two problems in particular:
over-stocking and short supply time.
“Over-stocking can mean a prod-
uct is stored for longer than anticipated.
Sometimes that happens in locations that
aren’t ideal for long-term, or even medium-
term storage. That can result in product loss
and economic losses.
“Meanwhile, short supply creates the
opposite problem: an inability to fulfill an
order while leaving the customer with a loss
of confidence and without the product it
needs,” Mr Barnes.
Now that Anitox is in an expansion
phase, that brings with it an entirely new set
of challenges. Growing size and customer
base demands that plans are put in place to
stop gaps appearing.
“If you’re moving into new areas, then
inevitably it increases the distance between
the production base and the customer’s
location.
“At Anitox, for example, we have half of
our manufacturing sites in North America
and yet our customer base is global. By 2020
we expect to be doing more business in
Latin America and Asia than the rest of the
world put together.
“We’re continually scrutinising our supply
chain, to identify and resolve potential risks
with our manufacturing set-up. The constant
reassessment of potential solutions, whether
that’s relocating manufacturing plants, build-
ing new ones or looking for alternative
sourcing to better supply our wider markets,
means we’re always best placed to react to
events.”
Creation of new local manufacturing
plants can bring huge benefits, creating
new business opportunities and increas-
ing consumer confidence by shortening
the link in supply – but they’re reliant on
having the volume of product flowing into
that area.
“By predicting and modeling this type of
movement, we can make plans that allow
us to secure an efficient supply chain system
into the future,” says Mr Barnes.
Whatever the line of business, customer
commitment and confidence-building is
enhanced through the creation of honest
and transparent supply chain models. Not
only does it identify potential risks, but it also
forces the business to address any problems
head-on.
The importance of a
secure supply chain
50 | May - June 2014 GRAIN&FEED MILLING TECHNOLOGYF

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May - June 2014 | 51GRAIN&FEED MILLING TECHNOLOGY F

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