Annual report and financial statements 2009
What makes Morrisons different from other supermarkets is that we control our supply chain – we are closer to source by ‘cutting out the middleman’. The advantages of this business model are:
Being closer to source means we can better control the provenance and quality of our food. Ethical and sustainable sourcing is important to us and we work with the producers to develop a relationship that is reasonable and fair to all parties.
UK arable and livestock farmers
Our buyers deal directly with the producer to either select the livestock we believe is good enough or to purchase whole crops of produce which is fairer to the farmer.
We sell only 100% British pork, beef and lamb.
We source entire containers of produce from overseas which is individually packed and graded to our own standards. This effective method of buying also passes on great value to the customer.
We own all our manufacturing facilities, which means we reduce our supply chain lead times allowing us to maximise the freshness in-store and reduce waste and costs. Many of these facilities are situated close to our distribution centres, enabling us to also reduce our food miles. The vast majority of our fresh food is prepared by our production plants providing us with security of supply.
We have 13 manufacturing sites in total comprising:
12 in the UK; and 1 in the Netherlands
We also own:
6 Fruit & vegetable packhouses
1 Food preparation factory
UK food producer
Source: The OC&C Grocer Index, Top 150 suppliers
90% of all meat and the majority of our fresh food is selected and packed through our manufacturing facilities.
We own and operate a very modern transport fleet, ensuring freshness and cost control. We believe we have the quickest turnaround time between order and delivery compared to any other supermarket.
Our transport fleet
We have 680 tractor units and 2,000 trailers moving over 16 million cases of products to stores each week.
12 distribution centres
We have 12 distribution centres operated by ourselves and specialist providers.
Some of our suppliers deliver directly to our stores.
Because we prepare food in-store, we can react to customer trends throughout the day, only producing what the customer wants. This reduces waste, makes us cost efficient and keeps our prices low to the customer, as well as ensuring our products are always freshly made.
Our craft skilled staff prepare more fresh food in-store than any other supermarket.
Rest of store
We take pride in great shopkeeping and having the right produce available for the customer. We have product ranges to suit all budgets.
product lines in a typical store, 32% of which are our own-brand labels.