HP other info Flashcards
What are the main raw materials used in production?
- Flour
- Yeast
- Grains and seeds
What are the details about flour suppliers?
- Limited supplier options for some flours (coarse grain) creates supply chain risk
- Shortish payment terms could lead to cash flow problems
- Use of local suppliers reduces delivery costs
- 20 to 30 days payment terms
What are the 3 types of flour HP use?
- White (2 suppliers)
- Wholemeal (2 suppliers)
- Coarse grain wholewheat (1 supplier)
What are the details about yeast suppliers?
- Single supplier reliance creates stability but increases supply risk
- Short supplier payment terms create cash flow timing risks
- 30 days payment terms
- Used for over 20 years
What are the details about grain and seeds suppliers?
- Buying at the lowest price lowers cost (better margins), but increases risk to market fluctuations
- May be quality inconsistencies
- Delivery times may differ
- Longer credit terms improve cash flow but may raise costs
- 30 to 60 days credit terms
What are some general points about the distro centre?
- Next door to production - lower transport costs
- Each type of loaf/roll has its own dedicated area - organised efficiency
Why is strict inventory rotation required?
- Aim is to have products dispatched within 2 days of production
- Prevention of waste
Where may AI be able to help in distro?
- Stock tracking systems
- Route optimisation
What are some key details regarding HP’s own fleet?
- Ensures delivery control but increases FC, maybe outsource?
- Route optimisation reduces costs and increases efficiency
- Move to electric vehicles lowers long term costs but requires upfront investment
How does delivery location make a difference?
Direct store deliveries (large supermarket chains and independent grocery) increases costs but increases freshness
What does the employees data show?
- Over 50% in distribution - raises questions over efficiency
- Staffing prioritises fast, fresh deliveries and hands on production
What does bread making require?
Blending of tradition with technology and constant efficiency improvements
What does perishability mean?
Means that HP requires fast logistics and strategic shelf life management
Why is food labelling and safety important?
Protects trust but adds costs
Why is automation important?
Improves efficiency but requires cost benefit analysis
Why do ingredient costs fluctuate?
Due to climate and supply risks
What is the impact of a push for sustainability?
- Long term benefits
- Short term costs
Why is production innovation important?
Drives growth but must be costs effective
