Why Managing Food Supply Chain is a Challenge
Food supply chain overview In the present competitive environment customers have become more demanding and asking for quality food which guarantees the safety. On time delivery is becoming a norm to reduce the inventory holding costs. The food industry is facing challenges due to increasing operational complexity, frequently changing consumer needs, government regulations and short product life cycles. It requires a very smart, efficient and agile supply chain to manage the ever changing needs of the end customers
Why managing Food Supply Chain is a challenge?
The food supply chain is complex and difficult to manage due to its perishable nature and short shelf life of the products as compared to other supply chains like electronics, home needs, consumer durables etc. It also requires a robust infrastructure of warehouses and transportation network connecting suppliers, manufacturers, distributors and retailers.
The complexity of food supply chain increases further because of the below mentioned parameters
1 Food safety requirements 2 Regulatory requirements 3 Short shelf life of products leading to expiry and wastage 4 Product recalls 5 Product traceability requirements 6 Effective handling of customer complaints 7 High order frequency and low volumes
Food Supply Chain categorization It is basically categorized into two broad categories Perishable and non Perishable
Perishable Supply Chain
In perishable supply chain the shelf life for the products is very low. It requires managing the end to end supply chain with utmost care. The perishable supply chain typically requires a cold chain to manage it properly. The cold chain infrastructure is very capital intensive. The infrastructure consists of pre-coolers, temperature controlled warehouses, refrigerated transport etc
Non- perishable Supply Chain
The shelf life for the product is considerable (varying from 3-18 months). Typically FMCG/Processed
Why managing Food Supply Chain is a challenge?
The food supply chain is complex and difficult to manage due to its perishable nature and short shelf life of the products as compared to other supply chains like electronics, home needs, consumer durables etc. It also requires a robust infrastructure of warehouses and transportation network connecting suppliers, manufacturers, distributors and retailers.
The complexity of food supply chain increases further because of the below mentioned parameters
1 Food safety requirements 2 Regulatory requirements 3 Short shelf life of products leading to expiry and wastage 4 Product recalls 5 Product traceability requirements 6 Effective handling of customer complaints 7 High order frequency and low volumes
Food Supply Chain categorization It is basically categorized into two broad categories Perishable and non Perishable
Perishable Supply Chain
In perishable supply chain the shelf life for the products is very low. It requires managing the end to end supply chain with utmost care. The perishable supply chain typically requires a cold chain to manage it properly. The cold chain infrastructure is very capital intensive. The infrastructure consists of pre-coolers, temperature controlled warehouses, refrigerated transport etc
Non- perishable Supply Chain
The shelf life for the product is considerable (varying from 3-18 months). Typically FMCG/Processed