Supply Chain Management in Food Industry - Essay Example

The paper “Supply Chain Management in Food Industry" is a delightful example of an assignment on management. Supply chain management is a concept that optimizes the supply chain by helping the companies in getting the best products to their rightful places in a cost-effective and timely manner. In the food industry, the upward stream starts from the farmer to the middlemen and then the creators who are the industry players. An effective supply management aims at removing unwanted barriers such as middlemen in order to optimize the company’s efficiency. 

The food industry is arguably the largest sector with categories of primary, secondary and tertiary products. Primary products include food items that people can consume in their original state without any value addition. Secondary products include food items that only require a basic level of processing such as grading; grinding or drying. Tertiary products are the food items that are produced by combining multiple tertiary and primary products and then high-value addition is applied to the products (Shah, 2009, p. 100).

The success of supply chain management rests on the ability of a food processing company to link with the right partners that would enable them to optimize their profits. A fresh fruit company may have to procure their raw products directly from the farmers, and they further have to do the procurement with an Agro-scientist. The Agro-scientist can further guide the farmers with the inputs from the company on how to cultivate good quality apples. After the harvest, the company gives the farmers a fair bargain and then uses its trucks to transport the apples. At the company’s premises, the apples are then stored using the state-of-the-art storage technology and the company workers keep an updated inventory. All the above factors amount to an efficient supply chain management in the food industry.

- Identify three important characteristics of SCM excellence. Using relevant examples, discuss how each of these characteristics impact on safety issues in a food company’s supply chain.

The three main characteristics of an excellent Supply Chain management system are end-to-end segmentation, multi-level supply chain visibility, and integrated analytics to measure factors such as time-to-serve demand.  End-to-end segmentation enables the company to identify core and strategic suppliers that significantly contribute to the business operations. This strategy allows companies to sieve out transaction suppliers in order to decrease the complexity of the supply chain (PWC). When food companies do away with middlemen, it enables the firm source for raw materials direct from the farmers, and they also have a lot more say over the quality of the material. Segmentation assures that the quality is not compromised, and the food is safe for human consumption.

Multi-level supply visibility is a concept where companies can play a key role in different areas of the supply chain to ensure the seamless delivery of goods from the firm to the factory and finally to the consumer (Basu and Wright, 2010, p. 45). Real-time information about shipment and transportation enables companies to know where their products are during transit. This concept is especially important for the perishable goods market because filling such visibility gaps allows them to gain control and better plan for their products while optimizing profits. Integrated analytics to measure factors such as time-to-serve demand allows companies to respond to real-time requirements of their customers. Companies, therefore, need access to large volumes of customer activity, buying trend and needs. Database platforms such as SAP HANA provide professionals with an avenue for monitoring and analyzing customer activities.

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