High street bakery chain Greggs has announced it is examining possibilities concerning the chance to improve profit levels through adapting its supply chain, a supplychainjobs.com report has confirmed.
Greggs enjoyed a rise in total sales last year of 7.1 per cent, although conversely experienced a drop in operating profit of 7.2 per cent.
The bakery's operating profit now stands at £44.3 million out of £628 million in sales.
Supply chain management is often used to create a sleeker supply chain and one which would save a company a great deal on superfluous costs.
Contracting a third-party supply chain could cut the costs of a company significantly and, in the case of Greggs, could solve problems potentially overlooked by those familiar with a company's existing structure.
Supply chain management companies could also raise sales revenue by making an organisation's supply chain greener, adding value to the finished product.
Spplychainjobs.com quoted Greggs as saying: "We are examining the longer term opportunities to enhance quality and productivity through the consolidation of manufacturing to allow more efficient production of higher volumes.
"This is likely to follow the successful example of our central savouries unit at Balliol Park in Newcastle upon Tyne, which opened in 1998 and has delivered real benefits in enhanced product quality and consistency, as well as substantially increased productivity."
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