Red Meat Industry Forum: Value Chain Analysis

Introduction:

Project Background & Aim

RMIF: VCA was the first of a number of three year applied research projects conducted by the Food Process Innovation Unit (FPIU) at LERC.  FPIU was a research unit set up by Mark Francis and David Simons specifically to conduct Lean research within the food (and grocery) sector.

All of these FPIU projects shared in common the application of the VCA methodology developed by Mark Francis from his PhD.  In addition, all were undertaken in collaboration with the FCC and funded via the DTI Industry Forum Adaptation Scheme.  Other such projects undertaken by FPIU included Dairy Industry Forum: Value Chain Analysis (DIF: VCA), Cereals Industry Forum: Value Chain Analysis (DIF: VCA) and Organic Produce: Value Chain Analysis (OP: VCA).

Methods & Activities

The RMIF: VCA methodology involved the mapping of eight complete value chains (VC).  During the course of the project, Welsh devolution occurred.  This resulted in further funding from the Welsh government to add a ninth value chain to the project.

The scope of each of the VC sub-projects was ‘farm to the fork’, with each consequently involves one or more producer, abattoir, processor, and supermarket or food service firm.

To assist with generalising the results, the research design framework required selected VCs to encompass the maximum diversity, and with no single firm being permitted to participate in more than one value chain project.  Case selection criteria consequently includes coverage of the three product species (beef, lamb and pork), fore and hind quarter cuts, regionality (England, Wales and Scotland) and different routes to market (supermarket, food service and local butcher).

Each VC project started by identifying and recruiting a cross-company team for its duration, then having them establish the focal product and specific project objectives. After collecting and analysing general company background information on each of the participant firms, the first phase of analysis proceeded with a workshop attended by all of the team members. The aim was to produce a big picture map of the type promoted by Rother and Shook (1998).

All team members attended all the subsequent company-specific mapping events, during which detail was added to this big picture baseline via a range of mapping techniques. In addition to mapping the workflow, techniques were employed to help understand the prevailing performance measurement, incentive and reward infrastructure within the firm, along with its alignment to the wider goals of the value chain being studied.

During the course of each company-specific event the team members were provided with a video camera to document the whole process as they encountered it. They also photographed important aspects of the operation and collected copies of all the key documents that were used and shared. All of this information was later cross-referenced onto the maps to produce a comprehensive documentary for analytical, training, induction and process improvement purposes. Following the same format established during the initial big picture workshop, each company-specific events ended with a session designed to summarise the inter- and intra-firm issues identified during the course of the event, and to solicit further waste elimination possibilities.

In addition to yielding (nine) whole VC improvement sub-projects, the RMIF: VCA project identified a number of industry level themes that were fed back to the steering committee to facilitate industry-wide improvements.

Publications

Journal Papers:

FRANCIS, M., SIMONS, D. and BOURLAKIS, M. (2008).  Value chain analysis in the UK beef foodservice sector, Supply Chain Management: An International Journal, Vol.13, Issue 1, pp. 83-91, ISSN 1359-8546.

BAILEY, K. and FRANCIS, M. (2008).  Managing information flows for improved value chain performance, International Journal of Production Economics, Vol.111, Issue 1, pp.2-12.

HINES, P., BAILEY, K. and FRANCIS, M. (2006).  Contingent approaches to quality based pricing within the agrifood industry, International Journal of Logistics: Research and Applications, Vol.9, No.3, pp. 223-236.

HINES, P., FRANCIS, M. and BAILEY, K. (2006).  Quality based pricing: a catalyst for collaboration and sustainable change in the agrifood industry?, International Journal of Logistics Management, Vol.17, No.2, pp. 240-259.

SIMONS, D., FRANCIS, M., BOURLAKIS, M. and FEARNE, A. (2003). Identifying the determinants of value in the UK red meat industry, Journal of Chain and Network Science, Vol. 3, No. 2, pp.109-121, ISSN 1569-1829.

Conference Papers:

FRANCIS, M. and BAILEY, K. (2005).  Managing information flows for improved value chain performance in the red meat industry, Proceedings of the 10^th International Symposium on Logistics, Lisbon, Portugal,  July 4-5, pp.127-132, ISBN 0 85358 216 5.

HINES, P., FRANCIS, M. and BAILEY, K. (2005).  Quality based pricing: An agrifood industry application, Proceedings of the Logistics Research Network Conference, Plymouth, UK, pp.185-190, ISBN 1-904564-13-5.

FRANCIS, M. (2004).  Application of the food value chain analysis method in the UK red meat industry, Proceedings of the 9^th International Symposium on Logistics, Bangalore, India, July 11-14, pp.104-109, ISBN 0 85358 129 0.

SIMONS, D., FRANCIS, M. and JONES, D. (2003).  The Red Meat Industry Forum: Value Chain Analysis Research Programme, Proceedings of the 3rd International ECR Research Symposium, Athens, Greece, September 11-12, * No ISBN or page numbers issued.

Books/ Chapters:

SIMONS, D., FRANCIS, M. and JONES, D. (2004).  Food Value Chain Analysis, In  G.J. Doukidis and A.P. Vrechopoulos (Eds.), Consumer Driven Electronic Transformation: Apply New Technologies to Enthuse Consumers, Springer-Verlag, pp.1-14, ISBN 3-540-22611-7.

Other Official Outputs (Reports, Case Studies, Practitioner Publications etc):

FRANCIS, M. and BAILEY, K. (2006). Supplying the Perfect Lamb: A Case Study of Asda, Welsh Country Foods and Wyn Ellis – a Lamb Supplier, Food Chain Centre Publication, Watford, March.

FRANCIS, M. (2005). Performance Measurement System Design: A Literature Review, Hybu Cyg Cymru Project Report, Lean Enterprise Research Centre, Cardiff, 07/12/05.

FRANCIS, M. and BAILEY, K. (2005). Welsh Chain 1 (Lamb-Fresh-Supermarket) Final Report, Hybu Cyg Cymru Project Report, Lean Enterprise Research Centre, Cardiff, 02/12/05.

FRANCIS, M. and BAILEY, K. (2005). Welsh Chain 1 (Lamb-Fresh-Supermarket) Audio Vidual Materials, Hybu Cyg Cymru Project Report, Lean Enterprise Research Centre, Cardiff, 02/12/05.

FRANCIS, M. (2005). Welsh Chain 1 – Performance Measurement in the Value Chain, Hybu Cyg Cymru Project Report, Lean Enterprise Research Centre, Cardiff, 28/02/05.

SIMONS, D., TAYLOR, D., FRANCIS, M., ZOKAI, K., HUTCHESON, C., BAILEY, K. and JONES, O. (2005). Red Meat Industry Forum: Value Chain Analysis – Final Report, RMIF: VCA Project, Cardiff Business School, Cardiff.

FRANCIS, M. (2004).  The Perfect Steak Encounter, Food Chain Centre & Red Meat Industry Forum Publication, Watford.

FRANCIS, M. and SIMONS, D. (2004).  What Can We Learn from Argentina?, Food Chain Centre & Red Meat Industry Forum Publication, Watford.

SIMONS, D., TAYLOR, D. and FRANCIS, M. (2003).  Cutting Costs – Adding Value in Red Meat, Food Chain Centre & Red Meat Industry Forum Publication, Watford.

FRANCIS, M. and SIMONS, D. (2003).  Value Chain 3 Final Report (Beef-Fresh-Food Service), RMIF: VCA Project, Food Chain Centre and Red Meat Industry Forum / Lean Enterprise Research Centre, Cardiff Business School, Cardiff.

FRANCIS, M. and SIMONS, D. (2003).  Value Chain 3 – Audio Visual Materials (Beef-Fresh-Food Service), RMIF: VCA Project, Food Chain Centre and Red Meat Industry Forum / Lean Enterprise Research Centre, Cardiff Business School, Cardiff.

SIMONS, D. and FRANCIS, M. (2002).  Value Chain 1 Final Report (Lamb-Fresh-Supermarket), RMIF: VCA Project, Food Chain Centre and Red Meat Industry Forum / Lean Enterprise Research Centre, Cardiff Business School, Cardiff.