04 SCS:NEWS ANALYSIS NOVEMBER 2008 SUPPLY CHAIN STANDARD
www.supplychainstandard.com
NEWS ANALYSIS: NICK ALLEN
INFORMATION
Taking the
initiative on
data quality
Leading names such as J Sainsbury,
Britvic, Co-op, Morrisons, Unilever,
Nestlé, Cadburys, Boots, Mitchells and
Butlers and Makro have got behind an
initiative, orchestrated by supply chain
standards organisation, GS1 UK, to
develop practical solutions for
improving data quality in the UK retail
supply chain.
The data quality initiative is aimed
at providing a forum for retailers,
suppliers and food service operators,
to collectively develop a standard
approach to sharing common
product information. It also aims to
develop a roadmap for the
implementation of Global Data
Synchronisation.
The first task will be the
development of demand-side new
line forms for the grocery and
foodservice sectors, creating a
strategy to consolidate and
standardise core information. It’s
expected that at least two retailers will
have adopted the strategy framework
by Christmas. Ensuring data quality is
a prerequisite to synchronising data
between trading partners. By tackling
the problem of data quality, initiatives
such as Global Data Synchronisation
stand a far greater chance of wider
adoption.
● See page 52.
ECONOMY
Can we still afford sustainability?
With the world’s banking infrastructure in tatters and
the looming spectre of a global recession, can
business still afford a green conscience? Will
sustainability be put on the corporate back burner? Or
is it the case that we can’t afford not to pursue a
commitment to sustainability and CSR?
Research undertaken by accountants, KPMG, at the
recent CIES World Food Business Summit held in
Munich, indicated that investment in sustainability
may be affected by an economic slowdown. Just over
half (52 per cent) of those surveyed believe that
sustainability investment will either be put on hold or
reduced in an economic downturn. Yet nearly half of
MANAGEMENT
What an idea
There is an inherent danger within any long-established,
reasonably successful organisation to assume that there is
little need for change. “It’s the way we’ve always done it”,
“If it isn’t broken, don’t fix it”, you know the thinking. A sort
of arrogance can pervade a corporate culture, resulting in
outdated practices, lost opportunities, and a systemic lack
of innovation. All too often initiative is stifled.
Every forward thinking enterprise should be geared to
continuous improvement, constantly questioning methods
and looking for ways of introducing better business
processes. The problem is, most companies tend to be
introspective, caught up in their own ways of doing things
and do little to engage in wider initiatives to introduce
new ideas into the company from external sources.
Of course, enlightened management use
benchmarking for charting progress and look far and wide
for examples of best practice. But what really makes a
difference is seeing how someone else approaches a
similar problem to your own. Much can be gained by
those questioned (47 per cent) felt sustainability was
an important driver of innovation.
Unfortunately, it would seem that sustainability is
still largely regarded as a cost on the enterprise rather
than an opportunity to reduce costs by employing
innovative techniques to reduce carbon emissions. As
transport is a large contributor to greenhouse gas
emissions better planning and clever collaborative
initiatives can make a significant difference to both
carbon and cost reduction.
However, we could be about to witness an ironic
twist. Expectations of slowing industrial output is
putting pressure on the price of oil – which is widely
talking to and sharing ideas with others. That’s why it’s so
refreshing to hear of a co-operative arrangement between
two companies to swap jobs.
John Lewis Department Stores has teamed up with
McDonald’s UK distribution company, Keystone
Distribution, to implement an innovative job swap
scheme. The scheme, trialled this summer, involves middle
managers from the two companies swapping jobs and
spending a week working in similar roles. A wonderful
opportunity for middle managers to gain an insight into
how common issues and practices are addressed.
Every manager who completes the scheme will be
required to develop a ten-point action plan to improve
operations by implementing ideas from the job swap.
Warehouse shop floor practices, shift pattern management,
communication and employee engagement have all been
highlighted as areas for study and improvement.
Perhaps more companies would benefit from getting
involved in such schemes.
seen as a good thing – but will this dampen the
incentive to cut carbon emissions? The higher the
price of oil, the stronger the motivation to reduce
consumption, with the added benefit of cutting
carbon emissions. Despite this, there is still hope.
Sustainability is now widely seen as a core element of
business strategy – as revealed by 56.6 per cent of the
survey participants. Perhaps, such ingrained thinking
will ensure the future of sustainable policies.
Nonetheless, if sustainability is seen by so many as
an important driver of innovation surely the pursuit of
green goals is a worthy course of action for any
creative enterprise.
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