From Top to Bottom

For agribusiness and food company Bunge, founded in the Netherlands in 1818 and now operating from Brazil, a smooth-running supply chain is key. While its main focus is the soybean business, it is also involved in fertilisers, from the manufacturer to the ports, providing a rare, full-scale commitment to its end product.

Last year, the company’s global operations brought in a net income of $15.6bn. With 8,900 employees and a global footprint for export, the company is one of Brazil’s largest in the agribusiness sector and is the third-largest exporter out of all industries in this developing nation.

We caught up with Bunge director of marketing Michel Henrique Santos to find out what makes an efficient supply chain.

Foodprocessing-technology.com: You recently won an award for supply chain sourcing, in particular for how you source products for it. Can you talk us through your process?

Michel Henrique Santos: Bunge is fully integrated, from the field to the dining table. But it does not produce the grains that are used in its production chain, so the relationship with this weaker link in the chain is important when guaranteeing sustainability in the whole food processing industry. Therefore, Bunge produces fertilisers used in the crops, trades grains and produces soybean meal, edible oils, flour, margarines, mayonnaise and food ingredients, as well as ingredients for animal nutrition. It also operates with logistic services worldwide.

FPT: How to you integrate technology into your supply chain?

MHS: Technology is key to enhancing productivity throughout the chain. It is not only used internally, but we also help farmers to increase their yields by providing means such as precision farming services. By doing so, Bunge is working with suppliers to leverage production in the fields.

FPT: What is the driving force behind your supply chain?

MHS: The continuous search for excellence and better quality in products, ensuring we can provide safe products with less impact over environment, addressed according to customers needs.

FPT: So would you say Bunge is a real innovator with its supply chain?

MHS: By sourcing oilseeds and grains from our agribusiness unit and by using the same logistics systems, we improve efficiency. Our edible oil manufacturing and distribution footprints in Brazil, North America and throughout Europe enable us to reach a large customer base in a given country. We also develop market opportunities by creating new and innovative products. Bunge’s Oil Center of Excellence in the US helps us to research new and improved products, including low trans-fat oils.

FPT: How often do you think a company needs to work at improving its supply chain?

MHS: The improvement is continuous, not only with investments in new technologies but also in facility locations.

FPT: Has this helped you overcome the global financial crisis seen during this last year?

MHS: The crisis affected primary producers due to credit availability. Thus, we have had to provide better services and more efficient commercial negotiations in order to supply raw material down the chain in a profitable manner. Also, new investments in facilities are leading to better productivity and access to markets.