Background

The UK grocery retailers have made flowers accessible and available to consumers, encouraging more and more people to buy as gifts or as treats for themselves. There is a never ending programme for innovation in creating an ever changing portfolio of bouquet designs to meet consumers desire for new fashions in flowers. A sophisticated procurement plan sources flowers from all over the world. The aim is to ensure that exactly the right quality ingredients are available for use in a bouquet at the right time bearing in mind a typical bouquet might contain raw materials from six different countries. For the supply chain to meet the marketing ambitions whilst handling such a delicate product is the ultimate challenge.

Activities

Initially we analysed the current operations within the supply chain to ensure a full understanding of the demanding requirements in handling such a delicate product in a very time sensitive and temperature controlled environment. The current suppliers’ performance / costs were analysed to act as a benchmark for assessing any future proposals. We them investigated all the potential suppliers and commenced open negotiations which allowed the suppliers to also make their proposals in determining the optimum service / cost solution to the challenge. This was followed by conducting trials to ensure that service offerings were achievable and could be sustained on an on- going daily basis. We then helped in the decision making process which lead to us supporting the negotiations to establish a contract with a new supplier.

Outputs

• Reliable data from which change decisions could be made with confidence
• Established a new, open and understanding relationship with “market leading edge” suppliers
• Detailed contracts, which are primarily service orientated, but still managing to show significant cost savings

Results

• The dependability which was being sought
• Fewer higher performing suppliers in the shipping areas of the supply chain
• Full visibility of service performance which enhances communications and problem resolution with suppliers
• Significant cost savings without impacting or compromising service performance
• Coached and mentored staff, who are now motivated to further investigate the on- going development of the supply chain