Question

You have a supply chain of your choice which serves your needs in the service industry of selling fresh fruits and vegetables to super market chains.

• Define supply chain management as it relates to your industry.
• What are the benefits and drawbacks of having a supply chain support.
• What are normally the supply chain performance drivers as you view it.

Answer 1

Supply Chain for Selling fresh fruits and vegetables to supermarket chains

Supply Chain management is all about the design, planning and operations decisions of movement of products or services. It involves effectively managing the information, process, asset flow in an efficient way. In case of selling fresh fruits and vegetables, the timeliness is the key factor as the goods here are perishable.

Benefits of having supply chain support:

1. It helps in reaching the product/service to the destination in time.

2. It helps in increasing the efficiency and effectiveness

3. It helps in utilizing the optimum transportation routes for the flow of assets

4. It helps in selecting supply chain vendors, partners and distributors in a better way

5. It helps in managing the inventory in optimum levels and reduces total costs.

6. It reduces any bottlenecks and system hindrances in the process flow.

7. It increases the cooperation and co-ordination among the partners such as farmers, suppliers and distributors etc.

Disadvantages:

1. Inefficient supply chain practices hinder the product

2. Tight supply chain sometimes lead to inventory costs and outage costs.

3. Rigid supply chain sometimes hinder the effectiveness and going for various vendor partners.

4. Any manual errors in any phase of supply chain will have reciprocating effect on other functions.

Key Drivers of Supply Chain

1. Facilities: The places where the production of goods, storage of vegetables occur. Having best facilities actually help in serving the end customer in a better way. Storage facilities should be of utmost priority for vegetables industry in order to reduce spoilage and keep the vegetables fresh till they reach the supermarket.

2. Inventory: effectively maintaining the inventory will help in meeting the supermarket demands in both pull and push supply chain. Maintaining optimum levels of inventory will help the supply chain function in smooth manner.

3. Transportation: As we are dealing with perishable goods such as vegetables and fruits. It is necessary to have best transportation system available with optimum costs. It is one of the key driver of supply chain

4. Information: Any information from all the vendor partners or demand issues, key information flow is ideal in any supply chain.Information flow in this industry is critical as the farmers need timely information in shipping the fruits or vegetables and

5. Sourcing: Sourcing of the important raw materials such as current and fixed assets, human resources are key in driving the supply chain

6. Pricing: Having optimal price point for the products according to the demand is very important in order to have a smooth and efficient supply chain. Pricing decisions with key partners, vendors and distributors which serves best for the organization to function a smooth supply chain.