Managing the supply chain to meet customer needs
A Warburtons case study

Page 1: Introduction

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It is easy to take for granted everyday fast-moving consumer goods (FMCG) such as bread. When consumers go to a corner shop or the supermarket, they simply expect these products to be there and to be freshly baked. An average family will probably replace their supplies of bread several times a week. Behind these consumer needs for fresh products, there is a complex process of production. In the...
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Page 2: Sectors of industry

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The first sector of industry is the primary sector. This is concerned with natural resources and the extraction of raw materials. For Warburtons, this means working with farmers who grow the grain that is required to make its bread and bakery products. The next sector of industry is the secondary sector. This involves the manufacture or refining of goods from the raw materials obtained in the...
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Page 3: Primary sector

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Primary industries deal with natural resources. They include farming, fishing and mining. Although Warburtons does not own farms or actively farm itself, the company works very closely with farmers in the UK and Canada. The basis of Warburtons sustainable supply chain is to provide 'quality without compromise'. It feels it has a responsibility to continue to deliver fresh, great tasting and...
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Page 4: Secondary sector

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The secondary sector involves manufacturing products and turning them into part-finished or finished goods. Wheat grown for Warburtons is kept separate from other wheat and cereals so supply can be traced back to the farms. It is also milled separately by flour millers, some of whom have supplied flour for Warburtons for more than 50 years. They turn grain into a part-finished good flour the...
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Page 5: Tertiary sector

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The tertiary sector involves providing a range of services throughout the supply chain. Although the services themselves are not physical goods, they provide added value for customers linked with the products that they buy. For example, consumers expect a range of fresh bread products to be delivered to retailers daily. From its 14 bakeries and 15 depots around the country Warburtons is able to...
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Page 6: Conclusion

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Warburtons has come a long way since the 1870s. The key has been the commitment that the business has made to high-quality products. A bakery is not just about baking. For Warburtons, managing its business involves taking responsibility for managing the whole supply chain. It does this by working with farmers and supporting them as they plant the seeds on farms within the UK and Canada. It also...
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