Value Added Efficiency in LA

At the start of January Duncan Mills, operations manager for Well-Pict European took up an offer from Thierry Delapre and Sinera Chau Pech to visit AMS exotics in California to evaluate their packhouse and operations systems. AMS Exotic has been operating from a purpose built site in Los Angeles for the last four years. Over the last two years the retail business has been really taking off. AMS Exotics are at the forefront of the value added packing. As well as exporters, they specialise in the production of prepared microwaveable bags of produce, product lines include beans, sprouts and squashes, both for the retail consumer and the catering market. All the products are ready to eat, the beans are top and tailed and the sprouts peeled (a surprise best seller). As current market leaders in this area, AMS Exotic has traversed the toughest hurdle, in a world where the “customer is king”, in the eyes of a supplier, it’s the “order” that rules. But as all suppliers know, there is always someone knocking on the door witih products or services to surpass those currently on offer.

In order to remain competitive and ahead of the game AMS Exotics with the help of skills learnt in the UK, are seeking to build on their already impressive physical facilities and improve production and operations infrastructure. Over the last five years, Mills and his team have worked tirelessly to improve the efficiency of the WPE packhouse based in Evesham. This expertise was applied to the American packhouse to help then get a head start on their competitors, “the American produce industry is still very much market orientated, which means packing facilities are not geared up to operating at the highest efficiency as demanded by the UK industry”, the American retailers are still very much in the shadow of their UK counterparts when it comes to fresh produce retailing, it is not out of nicety that Wal*Mart leaves ASDA to its own devices when it comes to produce, they concede that ASDA is the expert in this particular area of retail.

Every task within a packhouse needs to be monitors, from goods in, quality measurement and storage, but it is the production process where the real money can be generated within the operation. The efficiency of this process adds profit by good management. Mills believes a key element in achieving this is getting people to think outside of their remit. “it’s the classic office comment, “someone else did it”, everyone needs to be trying to bridge the gap between all aspects of the process. As far as I am concerned the guy who unloads a lorry is as important as the guy who buys the product. After all it’s the warehouse guy who gets to see the product, the buyer doesn’t” Efficiencies in production can only be made if you have the information. “information is key, it is all to easy to hide costs away, in order to become efficient you need to highlight the costs, and then question them, everything from electricity to cleaning fluids”.

Mills was highly impressed with the AMS Exotic staff, “they are a real asset, and the lines are all manned by women, in contrast to the UK where we have roughly a 50/50 split. The majority are Mexican, and they come across as hard working, and very friendly, the atmosphere is very positive”. The site operates two shifts a day, 1am till 10am and 6am till 2pm. The one area holding back the smooth running of the site, is the lack of a direct operations manager with real decision-making. "Currently they base pricing on an average, whilst in the UK we do it on a consignment basis, this means that we are able to give prices up front, and the procurement guys have an exact figure to bade their costs on."

Hygiene and health and safety are key aspects of packhosue life. "it's a perception that if you have a clean and tidy packing area, you have an efficient business, people tend to think that they go hand in hand." The legislation in America is catching up with Europe in terms of H&S issues. Mills has given the American team a helping hand in some of the basic areas that are second nature in a UK packing environment but "extras" in America. "Basic skills in chemical storage and cleaning as you go , rather then at the end of the day, all help to create a smooth running systerm". Mills believes that AMS Exotics can be a real market leader not just in terms of product innovation but also in terms of production processes. "AMS Exotics has massive potential, applying systems we have been developing over the last five years will give them a real edge in the LA market".

In addition to his busman's holiday, Mills also paid a visit to one of the largest growers in California; Well Pict Incs production at Oxnard is strawberry production at its biggest and best. "It's often easy to forget what goes into growing fruit, visiting a place like this really gives you an understanding of how hard it is". the team at Oxnard is understandably very proud of their production, "the whole process runs like a well-oiled machine. Everyone knows his or her job, American packhouses could learn a lot by looking at the seamless practices used by growers such as Well Pict Inc."

If you have a production based query or are looking for bespoke packaging then contact Duncan Mills on 01386 832926 or email Duncan on duncanwellpict-european.com

Winter 2003