The implementation of lean manufacturing in the UK food and drink industry

The structure of the food and drink market in the UK is characterised today by the emergence of major retailers and their own brands and bigger store sizes, greater retailer concentrations, an increasing demand for one-stop shopping, an improved retailer access to information via the Electronic Point of Sale (EPoS), the introduction of loyalty cards and a massive proliferation of choices have caused the shift of power balance from the food and drink industry to the retailer's side in the UK. Most of the food manufacturers have to do business with powerful retailers who demand a wide range of products, short delivery times, frequent deliveries and regular price reductions. In this scenario, it is important for the food and drink industry that there be a mechanism in place that enables it to learn continuously and develop 'world-class practices'. Lean manufacturing has been widely used in the discrete industry as an operational improvement initiative, but nobody has systematically investigated the applicability of lean principles and practices to the food and drink industry. This paper has made an attempt to examine the leanness of six UK food and drink companies and identify the key inhibitors and enablers of lean manufacturing. A multiple case study approach has been used for this purpose.