Developing sustainable supply solutions
Donations of food do not always meet demand – in particular there is a significant gap between the amount of staple foods rescued and what is needed by the charities and community groups to provide filling and nutritious meals.
To address this Foodbank partners with food companies who donate or subsidise the ingredients and services to produce, process, package and transport essential items. This collaborative supply approach produces items such as breakfast cereals, pasta and sauce and tinned fruit and vegetables. Financial contributions from the public and corporate sector provide essential funds to cover the elements that cannot be obtained through donations.
To achieve our target of 50 million kilograms of food, Foodbank is keen to work with more of its donor to innovative programs to supply staple products on a sustainable basis.
How the Collaborative Supply Program works:
- Foodbank and the food manufacturertogether identify an appropriate, high priority product from the manufacturer’s current range.
- The manufacturer agrees to produce the product subject to the donation of inputs with the manufacturer’s regular suppliers (e.g. ingredients and packaging).
- The manufacturer becomes the ‘Product Lead’ and assists Foodbank with input supplier discussions.
- Input suppliers are approached and agreement is reached on the donation of their respective product components. Donations need to be sustainable and not just a very generous ‘one off’ as we need to repeat the program every year. Items that cannot be donated are funded by Foodban.
- This way, the cost is shared across the total supply chain of the product i.e. all input costs, processing and transport.
- The food manufacturer produces the agreed quantity of product under its own brand name, according to its standard specifications, using donated components and fitting around its own commercial production schedules (keeping it efficient – no new packaging or recipes needed).
- The finished product is transported to Foodbank warehouses for distribution to welfare agencies.
- Foodbank seeks every opportunity to publicise the availability of the product and acknowledge the role of the manufacturer and all the partners in its own publications and via media releases and other publicity channels.
- The manufacturer has the opportunity to turn its involvement into a company-wide event, enabling employees and other stakeholders to share in the goo work that’s being done.
A example of collaborative supply at work
Foodbank requires 800 tonne of pasta each year to meet demand, so…
- Rinoldi – took on the Product Lead role to manufacture Kookaburra Pasta
- CBH Group – donated the wheat
- George Weston Foods – donated flour and milled the wheat donated by CBH
- Manildra – donated flour
- Perfection Packaging and Shorko – provided packaging at a reduced cost
- Visy – provided cartons at a reduced cost
- Toll Logistics – transported the product fromthe factory to all Foodbank distribution centres
- FaHCSIA, Microsoft, ANZ Bank and CSL – provided funds to pay for inputs that could not be fully donated (i.e. balance of packaging costs)
The above example demonstrates how the load is shared across all participants in the supply chain of the product. This minimises each donor’s costs, which means it’s a sustainable proposition.
For those facing hunger we produced pasta for 8 million meals.
For the financial donors, every $1 provided resulted in enough pasta for 26 hearty meals.
Contact us if you are interested in exploring how you might partner in a collaborative supply project.