SUPPLY CHAIN MANAGEMENT


RESHAPING SUPPLY CHAINS WITH COLLABORATION AND TECHNOLOGY


With the bakery sector facing rising costs and sustainability pressures, collaboration across the supply chain, combined with software technology adoption, has never been more important. Suzanne Callander reports.


R


ising raw-material and energy costs, volatile ingredient markets, labour shortages and fast-changing consumer


demands have combined to squeeze margins for bakery manufacturers, making planning more complex. The bakery industry is also no stranger


to disruption. With the distribution of baked goods often depending on a well-synchronised flow of raw materials, production scheduling, packaging, storage and delivery – when any link


in that chain falters it can affect the whole supply chain – a situation that is exacerbated by the short shelf life of most bakery products. The


implementation of the EU


Deforestation Regulation (EUDR) also poses supply chain challenges, as users of commodities such as palm oil and cocoa are now required to prove that their products are deforestation-free. Ingredients need to be sourced from areas not affected by deforestation or forest degradation after 31 December


2020 and they must have produced in


accordance with the relevant


legislation of the country of production. This includes compliance with that country’s land use rights, environmental protections, forest-related rules and labour rights. Bakeries purchasing palm oil or cocoa from operators or traders are also now required to ensure there are due diligence statements from suppliers. So, ingredient shortages, changing


regulations, and an increasing demand for sustainable production as well as


34 • KENNEDY’S BAKERY PRODUCTION • DECEMBER/JANUARY 2025/26


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