Supply Chain Council of European Union | Scceu.org
Technology

‘The supply chain is getting shorter and shorter’

The company is able to closely analyse sales patterns and consumer demand, leveraging FururMaster software to reduce stock and achieve 99.5% service levels on deliveries.

This is important because it allows the group to reduce food waste for its fresh, short-shelf-life products.

“What is essential is to ensure a good customer service level without [a high] unsold rate degrading therefore the profitability. That is why it is very important to make the most reliable forecasts possible and to have good industrial reactivity,”​ Stephanie Ricot, head of forecasting at Fleury Michon, told FoodNavigator.

Meeting demand for fresh, organic food

Fleury Michon, a €725m company, sold 380 million units last year and is present in 79% of French households. It is shifting its portfolio towards organic and healthy eating ranges in response to evolving consumer demand in France.

Over the last few years, the group has launched a growing number of organic products and cold meats which are free from additives like nitrates, antibiotics and genetically modified ingredients. Recent product launches include veggie burgers, salad bowls and ready meals with no additives.

This drive includes a reduction in preservatives in Fleury Michon’s recipes. Since 2002, the company has eliminated preservatives from 92% of its range and the producer aims to be 100% preservative-free by 2020. 

This shift places greater pressure on Fleury Michon to move fresh products through its supply chain efficiently.

At the same time, the group’s sales channels are also becoming more complex. Currently, 85% of annual sales are through French supermarkets. However the company is branching out into new overseas markets and the food service sector.

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