- Producer Operations: at least 5% of animals incorrectly graded
- Demand Management: no coordinated effort between end-user, processor and farmer to connect the planning of animal production to future market demands.
- Customer Value: misalignment between consumer requirement and product specification due to changing consumer needs and enhanced technical capability.
- Opportunistic Trading: the predominance of a “market trading approach” focuses on short time price.
- Processor Efficiency: Overall Equipment Effectiveness (OEE) performance varied between 26% and 40%, compared to world-class performance of 85%.
- On-Shelf Availability: Retail store waste ranged from 3% to 7.5%, with an estimated average of 5.25%.
- Carcase Balance: carcase balance problems are estimated to cost up to 3% of sales.
- Develop a dedicated chain. Create of a consistent source of supply and a set of suppliers that work together over the long term to plan production to meet customer needs and demand patterns.
- Develop Horizontal Co-operation Farmer-Supplier Associations. Select a specific group of farms as dedicated suppliers for a specific retailer. These farms would specialize in growing the “ideal animal” as specified by that retailer. Production would be scheduled in relation to the retailer’s demand. Farms would be selected so as to minimize transport distances and procedures would be monitored and feedback of animal quality will be returned to improve farm performance.
- Develop Vertical Co-operation Demand Management. Link the supply of animals to the demand for meat products. The dedicated farms could supply 85% or 90% of the retailers’ requirements, with the remainder being sourced from the open market to meet the variability in end-user demand.
- Improve operational performance. Pursue the systematic elimination of waste and introduce “flow systems” both within and between companies would lead to year on year cost reductions and permit the chain to become progressively more competitive in terms of cost, quality and service.
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3. Red Meat Chain Must Become Lean. Retrieved from http://www.foodmanufacture.co.uk/Business-News/Red-meat-chain-must-become-lean
4.Lean Food Production, Retrieved from http://aut.researchgateway.ac.nz/bitstream/handle/10292/3861/NZIFST09.pdf?sequence=5