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$100m EU biscuit factory for Mondelez


Mondelez International, the snack maker that owns Cadbury and Oreo, plans to invest over $100 million in a new biscuit factory in the Czech Republic. “We've used all of our supply


chain and R&D expertise to create a state-of-the-art factory with lines capable of making over amillion Oreo biscuits a day. After it is completed, this plant will be a model in our global supply chain network,” said Phil Hodges, senior vice president, integrated supply chain, Mondelez Europe. This is part of


the firm’s wider aim to invest in advantaged assets to drive sustainable and profitable growth. It builds on $240 million


investment across European biscuits network since 2010, including sites in France, the UK and Central Europe. "We've seen phenomenal growth


in our biscuit business in recent years, especially our Oreo and belVita Power Brands. This new facility will help us keep up with future demand by creating


additional capacity,” says Hodges. * In SeptemberMondelez


International, set out supply chain initiatives designed to deliver $3 billion in productivity savings over the next three years. Central to the plan is


restructuring the supply chain network. It said: “To support expected demand, the company will invest in 14 greenfield plants by 2020, to be built on advantaged platforms in locations with optimised logistics. By 2020, the volume produced on advantaged assets will rise from 15 per cent today to about 80


per cent. Similarly,


revenue per plant is expected to more than double by the end of the decade.” DanielMyers, executive vice


president, integrated supply chain, said: "We're building an integrated supply chain organisation that's laser-focused on delivering a demonstrable competitive advantage and generating savings we can reinvest in our growth.”


IAGCargo adds freighter to Hong Kong service


IAG Cargo is introducing an additional air freighter service into Hong Kong, as part of the expansion of its Asia Pacific operations. The new service means that IAG


Cargo nowoffers customers six freighter flights into the country each week. “HongKongisanincredibly


important trade centre, wherewe have seen good growth from the region to all destinations,” said managing director at IAG Cargo, Steve Gunning. “Our additional capacitywill be


welcome as businesses gear up for the peak Christmas season andwe expect to see increasing volumes of consumer goods coming out ofHong Kong over the next few months.” Weak demand in the air cargo


market resulted in a 14.1 per cent fall in commercial revenue at IAG Cargo to €256 million for the third quarter. Volumes of 1,394 million cargo


tonne kilometres represent a decrease of 7.7 per cent compared to


Supply Chain Standard December 2013


the third quarter last year. Cargo capacity was down two per cent. Overall yield (commercial revenue


per CTK) for the quarter decreased by 7 per cent versus the same period last year. Excluding the effect of exchange brings this to a 1.9 per cent decrease. Managing director Steve Gunning


said: “Air cargo demand remains weak and our results have been significantly impacted by exchange rate movements.Despite the difficult trading conditions, we have managed broadly to protect our yield thanks, in part, to the strong performance of our premium product range. “Our focus on premium products


and network continues.We recently opened the Constant Climate Centre atHeathrowfor handling pharmaceuticals aswell as launching a new route to Austin, Texas and expanding services to Hyderabad, which is a major centre for India’s pharmaceutical industry.”


News 07


Adams Foods eyes £500m turnover with joint supply chain


Adams Foods, has teamed up with British farmer-owned dairy co-operative, FirstMilk, to establish a fully integrated supply chain for hard cheese in the UK retail, foodservice, and wholesale sectors, which it reckons will increase turnover to over £500 million. Adams Foods is owned by the €2bn Irish dairy Board.


It reckonsitisthe UK's largestsupplierofpre-packed hard cheese, and supplies retailers, wholesalers, and the convenience and foodservice sectors. "This partnership not only enables us to work with a


partner to deliver a short, integrated supply chain, but most importantly guarantees secure returns for our members' milk,” said chief executive of FirstMilk, Kate Allum. “Additionally, it will provide a platform for us to focus


more of our time and resources in priority growth areas like brand development, lifestyle nutrition and exports." The new partnership will see Adams Foods cut, pack,


and market 50,000 tonnes of hard cheese at its Leek facility, in Staffordshire, which has been produced at FirstMilk’s Lake District and Haverfordwest creameries. Adams Foods will take responsibility for the sales and


marketing of this cheese, while FirstMilk will continue to manage the sales and marketing of its products to export markets.


Schiphol’s cargo rise


Amsterdam Airport Schiphol has seen a 2.6 per cent increase in cargo throughput, at 383,780 tonnes, during the third quarter of 2013, compared to the same time last year. September in particular saw growth of 3.9 per cent at 130,631 tonnes compared to 2012,which brought the total amount of cargo throughput for the first ninemonths of this year to 1,120,389 tonnes. But freightmovements continued to decline, being down


0.2 per cent in September compared to the previousmonth, and 1.4 per cent compared to the same time last year.


Nissan renewsYusen deal


NissanMotorManufacturing has awardedYusen Logistics a contract renewal for the provision of inbound logistics services toNissan’smanufacturing facility in Sunderland. The two companies have been working together since


2008,whereYusen’s services have supported the production ofNissan’sQashqai,Note, Juke, and Leaf models at the facility. The deal seesYusen take responsibility for the delivery of a


range of components fromNissan’s supplier base, transporting them through itsUK network, to provide collection flexibility as required.


ASOS supports degree


ASOS has signed up as a sponsor of the new four-yearNovus Logistics and Supply Chain BSc degree course,which offers successful graduates a guaranteed job. Students at theUniversity ofHuddersfield began the pilot course in September this year. “TheNovusTrust is nowreaching out to all thosewho are


interested in commencing theNovus degree as undergraduates in September 2014,” said founder ofNovus, Andy Kaye. “We encouragemore companies to sign up for the sponsorship opportunities. In doing so theywill be helping to inspire tomorrow’s supply chain professionals and gaining an opportunity to recruit the best new talent.”


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