The document summarizes a roundtable discussion on manufacturing and distribution. It outlines key regulations manufacturers must meet from the FDA, EU, and other groups. Driving trends include stricter regulations, sustainability demands, expanding markets, partner collaboration, volatile consumer preferences, and increased demand for traceability. Distributors operate between manufacturers and customers, buying, repackaging, and reselling goods. Managing global complexity and business risks such as demand, compliance, margins, costs, and economic volatility are also discussed. Strategies proposed include focusing on innovation, responsiveness, collaboration, sustainability, new markets, and managing increased input costs.

1. Manufacturing & Distribution
Roundtable Discussion
Nick Johnson, Sue Driscoll, Tim Schofield, Tony Young
10 August 2011

2. Manufacturing & Distribution Roundtable
Meet tough standards
 U.S. Food and Drug Administration
(FDA) reporting
 Good Manufacturing Practices
(GMP) requirements
 FDA regulation 21 CFR Part 11
 European Union Food Traceability
 EU Food Traceability Law - Regulation (EC)
No. 178/2002 came into force on 1st
January 2005
 Australasian FMCG supermarkets
 GS1

3. Manufacturing & Distribution Roundtable
Driving trends
 Regulations and sustainability
 Regulations for facilities, packaging, food safety, taxes and
duties, environmental protection, ingredient and nutrition
labelling, employee health and safety…
 Buying decisions are increasingly more sustainability-driven
 Expand markets and product lines
 Targeting niche markets, e.g. cultural/religious needs, or growing
economies, e.g. China and India
 Service multiple sales channels
 Brand extensions

4. Manufacturing & Distribution Roundtable
Driving trends
 Partner collaboration
 Partnering beyond complying with major customer demand
 Joint innovations, e.g. develop custom applications
 Supply-chain network collaboration, e.g. supplier replenishment
 Consumer demand preferences
 Consumers willing to pay premium for safety assurance, health
benefits, eco-friendly practices
 Demand changes are volatile, affected by e.g. social trends,
economic downturn

5. Manufacturing & Distribution Roundtable
Driving trends
 Traceability
 Much more than just compliance
 Provide consumer assurance toward safety and sustainable
practices
 Enable fast and accurate retrieval of information in the case of
product recalls

6. Manufacturing & Distribution Roundtable
Distributors operate between manufacturers and customers such as
retailers
 Buy, repackage, resell, distribute
 Manufacturer subsidiary that only distributes (no manufacturing) in a
specific geography
Suppliers Distributors Customers

7. Manufacturing & Distribution Roundtable
Managing Global Complexity
Global sources
Supply chain networks
Changing costs

8. Manufacturing & Distribution Roundtable
Managing Business Risks
 Customer demand
 Increasing compliance
 Managing margins
 Commodity cost volatility
 Economic volatility
 Business velocity

9. Manufacturing & Distribution Roundtable
Strategies for success
From traditional Sustainability for
efficiency and volume differentiation Targeting new
oriented towards and compliance market segments
innovation and and expanding
responsive operating into new regions
models
Accelerating pace of
change in regulations,
buying patterns,
customer needs, niche
markets Managing the
Increase increasing cost of
collaboration with inputs, e.g. fuel,
trading partners commodity goods

10. Questions

11. Thank you