The Food Industry
Research paper about the supply chain management in the food industry Alexane COLOMBET 08
1 – “The cold chain and its logistics” DR. Jean Paul Rodrigue http://people.hofstra.edu/geotrans/eng/ch5en/appl5en/ch5a5en.html 2- “Inventory control”, Columbus IT
http://www.columbusit.com/citp-hq---food/food/inventory-control.aspx 3- “How to Manage food inventory”
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http://www.ehow.com/info_8095550_inventory-methods-food-industry.html 5- “Tesco, British grocer, uses weather to predict sales”, Julia Werdigier, September 2009 http://www.nytimes.com/2009/09/02/business/global/02weather.html?scp=2&sq=Tesco&st=cse
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I. Executive summary
This research paper is about the supply chain management in the food industry. It underlines the different issues related to the food market’s specifics. Indeed, the food market is one of the most attractive in the world but also the most complex because of numerous challenges such as health and food safety scandals. The food market is also becoming more and more global and one issue in a part of the world rapidly leads to a global issue. As a consequence, consumers become distrustful and companies have to find solutions to improve the quality and reassure them. Supply chain managers must meet some conditions such as: * An accurate sales forecasting: an accurate sales forecasting is indispensable to avoid food wasting and respect food freshness. However, in a global market it’s becoming more and more difficult to get accurate sales forecasts. That is why some companies use software based on weather data which helps them to foresee the sales forecast related with temperatures. Other nonlinear models used a close examination of some factors which influence sales such as promotions, media exposure or trend. * An optimized stock inventory: the inventory management system developed is related with the products’ perishability. That is why the FIFO method is the most used. Fortunately the turnover is very rapid which what helps the supply chain managers to reduce the risk of spoiled products but increases the risk of shortage. * Traceability: it is investment worthy to develop a traceability system because it helps to reduce the risk of food safety issues. Traceability is enabled by a flow of information between each partner of the supply chain who collect, record, and share the data. Moreover, RFID systems can easily help to detect faulty products. * Cold chain management: fresh products must be shipped at the right temperature in order to avoid spoiled products. Refrigerated containers such as “reefers” help to control the temperature while RFID temperature tags can provide the condition of each individual pallet.
II. Literature review and summary
The food market is a complex and specific...
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