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Muntons presentation to BC Forum 5 th September 2013 Sarah Phillips – Head of Procurement Muntons presentation to BC Forum 5 th September 2013 Sarah Phillips.

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Presentation on theme: "Muntons presentation to BC Forum 5 th September 2013 Sarah Phillips – Head of Procurement Muntons presentation to BC Forum 5 th September 2013 Sarah Phillips."— Presentation transcript:

1 Muntons presentation to BC Forum 5 th September 2013 Sarah Phillips – Head of Procurement Muntons presentation to BC Forum 5 th September 2013 Sarah Phillips – Head of Procurement

2 Muntons have been supplying malt and malted ingredients for 90 years and are set to continue for many more.

3 The facts A brief history of Muntons plc 1921 Muntons was incorporated as a company 1948 Moved to Stowmarket 1964 Expanded to Bridlington 2007 Singapore office opened 2010 Office opened in Bangkok 2009 US company formed based in Seattle

4 What we do 20 We are in the world’s top 20 manufacturers of malt 180,000 At Bridlington and Stowmarket we make around 180,000 tonnes of malt Enough for 2340 million pints of beer! 45,000 We produce around 45,000 tonnes of malted ingredients, the largest in Europe and arguably the world.

5 Local Supply – Global Customers 66 Agents and Distributors globally supplying 62 countries Greenest maltster in the world – lowest carbon malt commitment Delivering to customers from 1kg packs to 29 tonne bulk

6 Product range and industry scope Diversification of product and customer into sustainable growth areas through innovation MaltMalted Ingredients Central Services Division Focused on brewing and distilling markets Focused on diverse markets Food Bakery Beverages Confectionary Pharmaceuticals Micro Brewery Home beer and wine Financial services Information systems support Compliance management Human resources.


8 Investing in our people Investment in quality staff Investment in training Investment in relationships with customers and suppliers Investing in Our People

9 Corporate Social Responsibility involve all stakeholders Community Customer Services Employees Principle enshrined in law It is not old fashioned philanthropy/donations to good causes It is the contribution of business to the Government’s sustainable development goals Currently voluntary, taking into account economic social and environmental impacts of companies’ operations – over and above compliance Year round responsibility Something we have done for a while – but not formalized Involvement to continue in key areas: - Environment - Education - Employees - Local community.

10 We like to do business the right way Striving to constantly improve standards of quality in all we do, showing consideration for our environment and respecting business relationships with both customers and suppliers ISO 9001:2008 ISO 14001:2004 ISO 22000:2005 ISO50001:2011 BRC Quality Environment Food Safety Energy Global Standard Management System Management System Management System Management System Food ver 5 American Institute All cereal raw materials All products assured Muntons Malt are Organic Certification of Baking sourced from GM free “Assured UK Malt” (Stowmarket site) (Milled products) accredited farms Suppliers X

11 Muntons: Building a Sustainable Future

12 Sustainability This is the common objective that links all aspects of Muntons business activities. An ongoing process that will ensure our goods are supplied in an economical, environmental and socially responsible way, now and into the future.

13 Where has Sustainability taken us? Involvement in government and supply chain advisory groups Identification of carbon hotspots driven capital programme: energy, recycling 5 years ago first carbon footprint calculation: now 5 th iteration 8 years ago working with consortium on water recycling Wider supply chain involvement downstream Focus on practical solutions that have environmental and financial benefit

14 Muntons are helping farmers save money and reduce the supply chain carbon footprint

15 Factors driving supply chain complexity Innovation Volatility Risk Technology Increasingly complex & changing markets Stakeholder demands

16 Position in Supply Chain CustomersManufacturers AgentsConsumers RetailersDistributors Muntons Manufacturer & Wholesaler Farmers & Merchants

17 Supply chain challenges Lead time gap Muntons Time horizon Lead Time GapCustomer Accepted Lead Time Construction and EngineeringAutomotive Europe Order Penetration point Automotive USA and Retail SourceMakeDeliver building our business the right way

18 Development of Procurement & Supply Chain Management Dedicated Grain Supply Chain Team. Centralised Non-Grain Procurement Team.



21 Supplier relationships, working closely with farmers and merchants Long term supply agreements to secure supply and manage price volatility Collaboration with customers through long term supply agreements backing off risk Educating customers on barley risk Managing barley risk

22 “Friends in Rotation” Agrarfrost, Agroterra, Aviko, Barilla, CIO Parma, CocaCola, Danone, Farm Frites, Fonterra, General Mills, Heineken, Kraft, Kellogg, Lamb Weston Meijer, McCain, McDonald's, Nestlé, Pepsico, Unilever Supply Chain Collaboration



25 1 or 2 suppliers per mode of transport, transactional relationships primarily driven by cost and turnover Low level understanding of each others’ businesses and supply chains Reduce transport costs, “missed tricks” and untapped potential benefit from economies of scale Internal inefficiencies driving up costs Logistics is CORE

26 Our chosen strategy is LLP To reduce operating costs (e.g. Transport) Remove non-value added activities, share benefits of improvements Improve customer service performance

27 1300 live vendors, focus on critical and high value ones, longer term supply agreements 700 direct materials purchased from over 100 vendors going into approximately 750 finished product lines sold to nearly 600 customers globally Stringent supplier approval process (quality, food safety, sustainability, ethical, CSR, capability, business continuity plans/management system) – visits, audits) SEDEX membership Continual assessment of supplier performance, complaints & corrective actions (quality systems), feedback to suppliers and exchange of information Supplier management

28 Overriding objectives Develop sustainable supply chains which our customers want to lock into Develop strategic supplier partnerships which we want to lock into Act as a catalyst for supply chain discussions across many diverse industries

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