Supply chain management bridges the gap between suppliers, manufacturing and production unit, and distributing the product to the retail stores. SCM plays an important role in the growth and smooth functioning of business operations. Today, we’ll discuss agi supply chain management; or supply chain management in agriculture; its objectives; roles and activities, and benefits.
What is Agri Supply Chain Management?
Agri supply chain management is the process of dealing with the flow and movement of goods and products. It has the obligation of producing and distributing all types of fruits and vegetables, animal-based products, and much more. Some of the main stakeholders in the agriculture SCM are as follows;
Some of the main activities involved in the agriculture SCM process are as follows;
- New product development
- Customer service
In, agriculture SCM integrates supply and demand management. Businesses and companies employ various strategies and approaches for the successful functioning of various stages of the SC process. The goal of various processes is to decrease cost, helping companies to achieve efficiency in the long term, and generating value for the customers and stakeholders.
Objectives of Agri SCM
Some of the main goals and objectives of agri supply chain management are as follows;
- Various stakeholders in the agriculture SCM collaborate with each in order to decrease inventory levels, remove redundancy efforts, streamline various processes, optimize the usage of resources
- It is important to decrease SC costs, when companies are facing economic uncertainty and their capability to save resources
- The Focus of SC managers is to add value along with making affordable goods and achieving cost efficiency
- Satisfying the needs and wishes of customers on a daily basis and trying to meet them
- Maintaining balance in speedy delivery, making inventory available off-season, and personalized merchandise along with increasing the consumer demand for the greater product range
- Merchants employ inventory commonly to satisfy the needs of customers; they also employ distributed order management technology to fulfill orders
Roles & Activities of Agri SCM
Some of the key roles and activities in agri supply chain management are as follows;
Sourcing & Purchasing
First of all, agriculture farmers require a great variety of tools and equipment to perform daily operations. Big farmers need a great volume of necessary materials, fertilizers, and animal feed. Some of the steps you should take are as follows;
- Choosing suppliers and vendors
- Negotiating the contract details like price and logistics
- Shipment and transport method
It comprises helping the producers to find the best available price for the needed farm machinery. It happens often in the online and digital market by amplifying the producer’s industry connections. Food-producing companies should connect with various farmers and producers to receive animal products and develop whatever they need.
Production & Processing
After receiving all the necessary supplies, it is time to produce and process the primary products, and then package them for further processing down the supply chain. For the distribution, processing, and production of agriculture products and goods, you would require a lot of workforces. Many farmers and industries actively look for qualified workers to perform their daily operations.
In order to increase the profitability of your agriculture business, it is significant to keep in mind the following steps;
- Decreasing the cost and increasing the volume of production
- Taking advantage of and implementing the industry techniques
Many farmers are employing digital technology and drones to manage the wide area of farmland, and it minimizes the workforce. Accurate weather reporting helps you to increase the production of crops and fields. However, determining the most accurate information about weather is significant for the growth of your SC decisions.
When your crops are ready and fully ripened, it is now time to deliver them to the end consumers. You can’t sell it directly from the farm. Rather you do it with the assistance of supermarkets, retailers, and wholesalers after processing it at the food plant.
Food times are highly fragile and their distribution and delivery are difficult because lack of care could destroy them. In order to decrease the inefficiency in the distribution processes and decrease the spoilage rate, it is significant to be careful about it.
Benefits of Agri Supply Chain Management
Some of the main benefits and advantages of agri supply chain management are as follows;
- Establishes satisfactory customer relationships and support system
- Offers better distribution processes with a limited delay of demanded products and goods
- Amplifies production and corporate roles
- Decreases the cost of transport and warehouses
- Minimizes direct and indirect costs
- Allows you to deliver the right products to the right location customers at the right time
- Better inventory management system by efficiently implementing the just-in-time model
- Helps you to quickly react to global challenges, economic crises, and changing customer trends
- Assists companies in their SCM processes to generate efficiency, decreasing cost, and waste
Conclusion: Agri Supply Chain Management
After an in-depth study of the agri supply chain management; we have realized that agriculture businesses are the backbone of an economy. If you are learning about the agriculture business, then you should keep in mind the abovementioned factors.
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