Learning mission

As part of its review of supply chain development and efficiency opportunities, representatives of the People’s Republic of China’s Ministry of Commerce (MOFCOM) toured European facilities of leading food retailers, manufacturers, supply chain solution providers and industry groups in May to see how fresh and ambient supply chains are organised in Europe.

Among the European hosts and participants were: retailers ASDA, Carrefour, SPAR and Waitrose; manufacturers Nestlé, Coca-Cola, P&G and L’Oreal; and services providers CHEP, IFCO, DHL, IGD and the Lean Enterprise Institute.

The grocery supply chain in China faces a myriad of barriers to efficiency improvement, including fragmented logistics, rising labour costs and a lack of consistent enabling infrastructure and standards. Vehicles are under-utilised, resulting in higher costs; trailers are manually loaded with limited palletisation, to maximise the available space at the expense of efficient product-handling and packaging; and loading/unloading times are unpredictable. However, because of China’s strong growth and status as one of the world’s two largest economies, significant benefits will come from any improvements in supply chain efficiency.

Peter Mackie, Group President, CHEP, said: “We welcomed the chance to demonstrate ways in which standardised pallets and containers benefit the entire supply chain – from fresh produce growers and packers to retailers and consumers. Increased efficiency at lower overall supply chain costs can be realised with the right organisation, equipment and training.”