Supply Chain Management for food processing | Daily News


Supply Chain Management for food processing

This paper explores ways of improving transportation and supply chain management within the food processing industry, it involves the concept of lean tools, transportation model and supply chain management in the food processing industry.

Consistent supply of quality raw material for processing industry is missing with improper handling and transportation systems with chances in loss of productivity. In today’s competitive market, it is extremely difficult to successfully produce high quality, low cost products without any other extra cost of suppliers. A supply chain management is an integrated network including people, organizations, information, activities and resources. Supply chains management must be able to accommodate uncertainty and variation of supply because these are vital factors that affect supply chain performance. In supply chain management information sharing system is most important for batter performance. This paper represents the ways to reduce in lead time using lean tools and supply chain management.

Food industry plays an important role in providing basics and necessities for supporting various human activities and behaviours. Once harvested or produced, the food should be stored, delivered and retailed so that they could reach to the final customers by due date. It was reported that about one-third of the produced food has been abandoned or wasted two-third of the wasted food is occurred in supply chain like harvesting, shipping and storage therefore, FSCM is significant to save our food.

The concept of Supply Chain Management (SCM) was developed in processing management is related to customer service, demand, flow of material and distribution for making an improvement in production. It is a combination and coordination of business activity that control the flow of material dispatch from supplier to customer. Supply Chain management network deals with analysis of information from every node on the Supply Chain to cut down working cost. How supply chain management work in any food processing industry is define as the agro-industrial system aims for plantation, cutting, transport and processing form farm to mill and mill to market. All food processing industry supply chain is highly integrated and contains, Food Plantation, Cutting, Food Transportation to Industry, and Industry for Processing, to Market.

Irregularity in the food processing industry happens due to many logistical, social, economic and physiological linked across the supply chain. Most of this factor is related, such as the cutting and transporting of raw material, many physiological and social are difficult to quantify. Irregularity makes a risk and profitability for the firm involved in the supply chain. For that reason, lessen the irregularity in the food processing supply chain has the potential to increase profitability. Impact of supply chain irregularity can be over by flexible strategies. However, flexibility is difficult due to the varying irregularity of firm in the food processing supply chain, their, the geographical span of the system, managerial issue, as well as raised in cost.

The combination of arrangement in plantation, cutting and milling systems are huge and differ from factory to factory. Cooperation between firms is an important component, to support well organized business operations and to less irregularity in food processing supply chains. Other supply chain makes unreliability and irregularity in food processing unit. These aspects are related with each other in supply chain. The main thing for the supply chain starts from farm to the processing unit. Two main aspect are reviewed are quality of raw material and flow of raw material regularity in required as per factory need per day capacity. It is difficult to manage the relationships fall beyond the scope of the study. Get maximum recoveries using maturated food by computerized harvesting programmed, plantation of fresh variety of product, transport of food from farm to industry within the lowest time, decrease in process stock, byproduct usage up to its micro level, delivery of finished goods to customer can be achieved by expanding intelligent supply chain in and around the firm.

Continuation of the capable in the new description of the worldwide and liberalization policy many firm are coming to stop as a result of this. In the field of supply chain there are huge changes. Information technology along supply chain makes an effective tool towards the success of business. All firms are moving towards independent goals, planning for maintaining in competition. Supply chain management is area, which can give clear outlook about the future of business and hold against the competitive market

 Remove communication gap between agriculture and transport to avoid delays in deliveries and avoid quality complaints. Combine the firm wise product range by buildup the customer base and formulate product as main business, Eliminate all raw material cost to be competitive in the market, minimize the stock levels. Reduce export and documentation and customer clearance and in delays Supply Chain Management should be adopted for the continuous improvement in every part of industry. Supply chain management exists in, marketing, planning, manufacturing, purchasing, distribution within and beyond the firm. Supply Chain Management shows a way to cost minimize all around the chain, the supply chain not only includes manufacturers and suppliers, but also transporters, warehouses, retailers, and customers themselves.


Radio frequency identification (RFID) is a form of wireless communication that uses radio waves to identify, track objects and data collection technology. An RFID system has tags and reader that communicate with each other by radio waves. RFID tags are so small and require so little power that they do not even need a battery to store information and exchange data with readers. This makes it easy and cheap to apply tags to all kinds of things that people would like to identify or track. In addition, the technology usually includes an information management

The complex processes that characterize the food and beverage industry bring an extensive list of challenges, including low profit margins, perishable products, stringent government regulations and changing consumer tastes, consumers have become more accustomed to instantaneous response and reaction, so companies must maintain more efficient communication, productivity and supply chain optimization to stay relevant and effective with consumers. Some of the other variables that can cause instability are oil prices, as well as carrier capacity and availability. If you have a global supply chain, it might produce benefits, such as access to seasonal foods and exotic ingredients. However, the international scope of operations could expose a company to many variables in the suppliers’ locale, such as geopolitical issues and weather-related transportation disruptions, including natural disasters.

The more options can bring more opportunities for something to go wrong, so it is crucial that organizations recognize this and have contingency plans to further improvements of the industry. It would be unreasonable to expect processors to be prepared for every possible risk or unexpected change. However, the best way to guard against these things causing major upheavals in business productivity is to have a resilient supply chain. A risk intelligent approach to managing global supply chains as being characterized by four things:

Flexibility: Having the ability to adapt quickly to a problem while not increasing operational costs. Visibility: having the ability to track and monitor supply chain activities in real time. Collaboration: working effectively with supply chain partners to develop a relationship that will help both companies achieve productivity goals. Control: Putting robust policies and procedures in place to monitor and control all operational processes.

So, how does a company start building this resilience? A good place to start is looking at increasing automation.

The food and beverage supply chain involves many steps and processes, most of which continually repeat as operations progress. These repetitive processes present the perfect opportunity for automation.

Inventory management

As previously mentioned, consumer demand is one of the most volatile components of the supply chain. Because so many products are available to choose from and tastes are rapidly changing, demand is a rather fluid variable. To address this, the point of data collection has been shifting. There has been a trend within the industry of gathering information about products and sales as close as possible to the consumer in order to make supply chain decisions. Through store and distribution centre analysis, companies can figure out the overall demand of a particular product and see where that product is within the supply chain to determine if it is sitting at the wrong place. Having data about the shelf life of a product, as well as inventory and demand, is helpful to managing the supply chain. However, the supply chain will have multiple systems, configurations and sources of data, so it can be a challenge to standardize all that data. To address this, companies should implement “harmonization” solutions, to bring together data from multiple sources in a consistent format. This way, information can be collected and analyzed in a centralized location to better understand the entire distribution, production and consumption processes. Once data is in a unified format, it must be cleansed to make sure it is consistent and reliable. It’s not so important whether this is done internally or through a solution provider, but that it is done. If that does not exist, in time and in scale, inaccurate and misinterpreted data becomes a problem for the organization. By centralizing information on demand, distribution and consumption, the entire supply chain can react as if it has one inventory distributed in multiple places and supply chain modeling can help determine the costs and benefits of lead times, network design, transportation costs and, ultimately, the freshness of product to the end consumer.

Lean manufacturing and “just-in-time” ordering can help adequately maintain inventory without overstocking materials. Additionally, ERP solutions can assist in keeping track of spoilage dates, inventory levels and trends in quality control issues. ERP systems can now maintain real-time awareness of the shelf life of materials in your supply chain and ensure that materials are used properly within that timeframe to dramatically reduce waste and the costs associated with it. The results have several theoretical and managerial implications. Theoretically, it provides further evidence of the importance of supply chain management as a driver of business performance in food processing industries within developing countries. However, at business level, it is important that competent supply chain professionals be recruited. Once they are recruited, further and regular training and development of these professionals is essential to update their knowledge, skills and proficiency. To lessen technology-related problems, the faster adoption of disruptive technologies, regular maintenance of key technologies as well as integration of the benefits of technology into all business operations to remain competitive is required. The standards as well as sustainability or green supply chain management systems could be implemented to counter problems associated with facilities management.

To mitigate supplier relationship management problems, regular meetings and even workshops should be organized to discuss how buyer–supplier interactions can be improved and how the changes can be handled. In terms of customer relationship management, regular and consistent communication with customers is essential to understand their needs and how to adapt the products to these needs. Compliance with government legislation and policies regarding issues such as taxes, food safety standards, labour laws, environmental laws and business ownership, among others, could be used to counter the effects of regulation-related problems. The effectiveness of logistics and transport mechanisms may be improved by considering the utilization of proper load and delivery route planning as well as outsourcing transportation to expert businesses when this is regarded as a non-core function.

Super supply chains

Consolidating supply chains is certainly an interesting area. To ensure a cost-efficient practice is in operation for all those involved in fresh fruit and vegetables, there must be investments made to simplify the steps between growers, packers and processors. So rather than having the different stages of production sitting with separate companies, what if they were owned and organized by one large outlet, from farm to fork? Implementing high-quality systems, though, will make this process cost-effective. Yields could be increased, compared against the ‘family farm’ growers, as the systems are in place to wean any damaged or rotten produce out from the start.

The food technology revolution isn’t on the horizon, it’s already here. Developments in processes throughout the supply chain can help reduce waste.

They bring an end to disparate processes and take the data acquired by growers, packers and processors to the next level – all of which are beneficial to the future of the food industry

A proper organize supply chain is usually important in food processing industry. Supply Chain Management is a systematic approach to improve the total productivity of food processing industries by reducing timing, providing quality raw material flow from farm to industry, review has been conducted on various properties which affect harvesting and transport issues in food processing supply chains, harvesting is done as per maturity period of food and then transportation for safe delivery and lower time to milling with the help of RID technology and supply chain management. Global food processors, packers and growers are in the middle of a technological revolution. Innovations are helping optimize yields, reduce waste and maximize profits like never before, from precision agriculture to automated sensor-based sorting systems. But there is still much more to come.

The global food supply chain is plagued by billions of tons of food waste due to inefficient sorting and grading systems.

And the wealth of data available from millions of devices throughout the supply chain is not being integrated and connected to optimize production

As the increasing awareness of food quality, safety and freshness, food supply chain management (FSCM) is facing ever pressure to meet these requirements.

How to upgrade and transform current FSCM to suit the ever increasing demands in the future with the aggregating population in the world? This presents a state-of-the-art review in FSCM from systems, implementations and worldwide movements.

Current challenges and future perspectives from supply chain network structure, data collection, decision-making models and implementations are highlighted based on the facts some ideas and observations are significant for academia and industrial practitioners, advanced technologies like Big Data Analytics, and Cloud Computing, will be employed to transforming and upgrading FSCM to a smart future, data-driven decision-makings for FSCM would be adopted for achieving more sustainable and adaptive food supply chain. 

Visit Sri Lanka's Largest online shop. Over 125,000 unique categories such as Fresh Flowers, Cakes, Food, Jewllery, Childrens Toys and other Sri Lankan e-commerce categories. Low delivery cost to most cities here and free delivery in Colombo.


Add new comment