Case Study: Supply Chain Resilience Practice In New Zealand
Supply Chain Resilience practice in New
Fonterra: Dairy for Life
In this report I will examine the supply chain risks and disruptions, supply chain resilience practices currently in place, as well as discuss the key success factors and potential barriers to a New Zealand company that affect supply chain resilience. The company that I have chosen to examine is Fonterra.
Fonterra is a dairy co-operative based in New Zealand, this means that Fonterra is owned by the farmers that supply the company. Fonterra Co-operative Group Limited was formed in October of 2001 by the merger of the two largest New Zealand dairy co-operatives, New Zealand Dairy Group and Kiwi Co-operative Dairies. Between these two co-operatives they controlled roughly 95 percent of the New Zealand dairy production, this makes Fonterra a virtual monopsony in the New Zealand dairy trade. Fonterra exports around 95 percent of its dairy products to overseas countries making it the largest dairy exporter in the worlds and one of the …show more content…
Since a crisis seldom gives warning of its arrival, Fonterra takes the approach that the best course of action is preparedness in all its various forms: sound communication plans, sound tracing and recall systems, regular updating of crisis management plans, regular training and evaluation. In this way Fonterra actively promotes a “proactive SCRES strategy for the ex-ante disruption phase”, (Hohenstein, Feisel, Hartmann, Giunipero, & Saenz, 2015).
Planning and simulation
Fonterra has comprehensively overhauling its incident management processes. These now require two simulations a year, one of which will be a response to a food safety incident that may require a recall involving customers. These exercises will include simulated media