Positive and negative attributes of the supply chain management in the food and beverage industry
Discussion
Positive and negative attributes of the supply chain management in the food and beverage industry
The food and beverage industry is one of the major industries that has a strong supply chain management system which makes sure to have their positive and negative impacts. The positive and negative impacts of the supply chain management system of the food and beverage industry are as follows –
Positive
- Improvement in product flow – The improvement of product flow is being done by the effective supply chain management of the organization. The product flow makes sure that the customer gets the product in due time (Tayur, Ganeshan and Magazine 2012). In the food industry, product flow is related to the demand of the consumer which varies as the products are perishable.
- Lack of hoarding – The effective supply chain management system makes sure that the hoarding time of the product is lesser which make sure that the products are supplied within the specific period as stated.
- Analysing demands – Due to the effective supply chain management system, the demands of the customers can be analysed by looking at the supplies that are being done by the management process (Mangan, Lalwani and Lalwani 2016). The demand of the food industry is relatively variant as it is basically a perishable industry.
- Decrease in cost – The effective supply chain management process makes sure to decrease the cost of the whole supply and make sure that the company has maximum profit in the meantime (Waters and Rinsler 2014).
- High efficiency – Due to the effective supply chain management system, the high efficiency of the company is being addressed as with the efficiency in the supply chain methods of the same order (Monczka et al. 2015).
- Corporation level – Due to the efficient level of supply chain management system, the corporation level of the employees are being addressed in the level manner. The corporation among the different sects of the employees are being addressed in the same level.
- Profit Increase – Due to the decrease in the wastage and making intensive increase in the supply chain management, the profit of the company increases to a major amount making sure that the companies are in gain (Nestle 2013).
- Lack of delays – Due to the effective supply chain management system, the delays in the production and supply of the products to the concerned places is not delayed and so the customers are satisfied to a great extent.
- Inventory Problems – The problems related to the inventory and the supply of the products to the required people is positively affected due to effective supply chain management (Belasco 2014). The inventory of the food industry as to be kept updated to make sure that each of the supplies that are going to the industry are fresh and makes it one of the best sources of getting the goods.
- Quality – With the implementation of the better supply chain management system. The quality of the products that is being supplied increases to a great extent (Beske, Land and Seuring 2014). The perishable products make sure to get used at first while the sustainable products have a better longitivity.
- Cycle Time – The cycle time of the process of supply chain management is to analyse the time that is required to make a complete cycle of the process of supply. With effective supply chain management system, the time required for the supply process reduces to a great level (Brandenburg et al. 2014).
Negative
- Inability to coordinate with the partners – The negative aspects of the supply chain management system makes a problematic coordination with the partners in the supply chain which in turn results in the lack of coordination in the supply chain aspects (Green et al. 2012).
- Risk management – The risk management is another instance that is being done by the supply chain management. The risk for taking out the supply and not getting the response is the factor of the supply management. The risk of the food industry makes sure that the amount of goods that is being addressed to the industries are getting all the benefits of the risk (Aung and Chang 2014).
- Steep competition for the share of the market – Due to the steep competition for the share of market, the supply chain management is being hampered in the longer process where due to more efficiency, the other companies get the share (Bosona and Gebresenbet 2013). The food market is loaded with competition which makes it essential for each of the companies in the market to have the basic of the share to be addressed in the same manner.
- Lack of trust between buyer and supplier – The lack of trust between the buyer and seller makes sure that the supply chain management of the company is being affected to a great extent. The business is primarily dependent on the trust which is affected by irregular supply chain (Tayur, Ganeshan and Magazine 2012).
- Competency of supplier – Due to the attitude of the supplier in the supply chain management, the supply of the company affects to a great extent making the competency of supply less. The supplier of the food industry are variable and supply their products according to the availability of the raw materials which make it one of the best sources of competency of supplier.
- Interpersonal relationships – Due to the interpersonal relations between the supplier and the other people, the business gets hampered to a large extent making the business of the sector hampered to a great extent (Myerson 2012).
- Adequate skills and training – Due to the lack of adequate training and skills for the supply management, the business of the sector gets hampered to a major extent causing loss to the business organization. The food industry has all the skills and training to make sure that the industry has faced all the necessary claims for the skill training and development of the same.
- Malpractices – The various kinds of the malpractices are there in the organization which make sure that the supply chain management of the business are facing tremendous mal practises in the same manner (Myerson 2012). The food industry have all the required malpractices to make sure that the competitor companies do not gain the required benefit from the supply and other forms of sources.
Gap between the evaluation and implementation of the supply chain improvement in food and beverage industry
The concept of supply chain management is comparatively new to the whole terms related to the business and the other concepts of the modern times such as marketing and other things. However, within a short span of time the concept of supply chain management has reached a bigger stage than the conventional strategies of market (Myerson 2012). The evaluation of supply chain management is done based on the evaluation of a number of factors like warehouse, processing and other functions that are obvious to the core. The global supply chain management is there to make sure that each of the occasions of the supply chain management is made to assure the same manner.
The evaluation of the supply chain management and improvement is the fact that the concept is evaluated based on the factors of the supply chain management. The whole concept of the supply chain management theory is based on the theoretical perspective which makes it one of the major instances of the supply chain management issue. The evaluation of the supply chain is done based on certain factors which help the supply chain management to have the necessary implications of the management task (Monczka et al. 2015). The factors that are necessary for the supply chain management are meant to be assessed at primary level which makes it one of the biggest scope and gap of the supply chain management. The whole aspect of the practical approach cannot be determined in terms of the theoretical perspective that is being adhered in the supply chain aspect of the management.
The implementation of the supply chain management is the fact that all the necessary practical approaches for the analysis of the issue as well as giving the required amount of implementing theories to the same are to be assessed. The implementation of the supply chain management is basically concerned with the practical representation of the supply chain management issue and also with the fact that the concept faces a number of issues in the same manner (Ashby, Leat and Hudson-Smith 2012). The implementation of the supply chain management is not a theoretical concept but deals with the practical approach of the whole situation and measures each of the situation in a way practical manner.
Gap between the evaluation and implementation of the supply chain improvement in food and beverage industry
The gap between the evaluation and the implementation of the food industry is based on the fact that there are a number of differences that are present in the theoretical aspect and the practical evaluation of the supply chain management system that is being addressed in the situation in the same manner (Monczka et al. 2015). The gap between the evaluation and the implementation of the food industry is to be made so that the managers who are conducting the whole situation analysis are to be made according to the practical approach of the whole theme. The practical approach of the theory has different perspective to the overall situation which makes it one of the probable gaps between the evaluation and the implementation of the supply chain management issue.
The food industry is related to the overall charms of the supply chain management system which makes the evaluation and the implementation of the global supply chain management one of the major situations in the case. The food industry is related to the supply of raw materials which are subjected to availability and also of animal and plant based products that are also made to the whole new situation level (Aung and Chang 2014). The food industry have the amount of supply management issue which make it one of the primary factors of the global supply chain management situation. The global supply chain management make sure to have their own set of problems which make the whole gap even further for the particular industry.
Multidimensional global chain supply issues
In the working of the global supply chain management, there are a number of issues that are being faced by the workers of the supply chain management industry. The supply chain management industry makes sure that the problems that are being faced by the global supply and also by the various dimensions of the global supply chain management system. The different kinds of issues that are being faced by the different aspects of the nations are as follows –
- Quality level of the supply – One of the biggest problems of the supply chain management on the global circle is the quality of supply which is one of the prime reasons for the food industry. The food industry is one of the most perishable markets which pose one of the biggest challenges for the suppliers to deliver their goods and raw materials fresh (Monczka et al. 2015).
- Time zones of the nations – The time zones of the different industries and countries pose a serious problem in the sector which makes the suppliers of the food one of the most prominent problems in the market (Wisner, Tan and Leong 2014). The time zones of the food market are also different in various parts of the world which makes the supply problematic and sometimes hampered.
- Logistics problems – Due to the major logistics problems in the supply chain management issues, the supply chain of the global circuit is problematic in some of the way or other (Aung and Chang 2014). The logistics problems is one of the major in the case as with a better system of logistics especially in the food and beverage industry, it becomes way more important in the food industry to supply fresh products in the supply chains.
- Delays in supply – The delays in the supply is one of the major issues in the global supply chain management and especially in the food sector where the delays in the supply can result in major loss and problems of the food industry which can cause serious issues in the whole management of the supply chain issues. The delays in supply is as a result of the lack of availability of the desired facilities of the goods.
- Language and culture problems – The language is one of the major posing problems in the supply chain of the number of issues in the food industry as due to the difference in language and culture it becomes immensely important for the people working in the industry to have the required level of knowledge about the demand of the product in the supply chain (Awudu and Zhang 2012). Due to problems in language and culture, the majority of the people in the different zones supplying the materials face similar issues.
- Prediction of demands – The prediction of demands is surely one of the unique ways to make sure that each of the supply of the industry has the desired amount of predictability in the cause of the situation (Zhu, Sarkis and Lai 2012). The prediction of demands is to make sure that the supply are going according to the demands of the same case and also to address the gap between demand and supply.
- Fast changing markets – The fast changing markets pose a serious concern for the people working in the fast-paced food market with the supply chain issues in the same matter. The fast changing market makes sure to address the required supply requirements in the global supply chain management of the food industry.
Techniques for solving or reducing the problems in supply chain issues in food and beverage industry
There are a number of ways in which the problems that has been discussed above can be solved by implementing the required amount of strategies and discussions in the matter. The techniques for the solving of global supply chain management problems in the food industry can be seen in the following ways –
- Research about the needs – The research about the various aspects of the supply chain management system can make sure to have the required amount of knowledge about the global supply (Ahi and Searcy 2013). The research introduces the various models and strategies for the supply of the food industry products and raw materials which make it one of the potential solutions for the excess and unwanted supply.
- Fast paced delivery service – With the introduction of the fast paced delivery service, the whole issue of the late in supply and time zone problem can be solved which makes sure to have the required amount of effect in the arena (Bosona and Gebresenbet 2013). The fast pace of the delivery make sure to include the various aspects of time and deliver the products to the required destination in the prolonged period of time. The fast paced delivery makes sure to include more attributes to the overall feature.
- Market surveys – Conduction of market surveys is one of the major solutions that can be given for the market surveys in the prolonged period of time (Aung and Chang 2014). The market surveys make sure to have the required amount of benefit for the conduction of the supply chain management.
- Logistics management – The introduction and the knowledge of logistics management is to make sure that the amount of knowledge that is being invested in the logistics supply of the supply chain management is to make sure that the amount of wastage that is being reduced in the prolonged time (Fernie and Sparks 2014). The supply chain management is to make sure that the logistics are done in a proper order.
- Knowledge of culture and others – The knowledge of the other cultures are also important to make sure that the supply chain of the required sector is being addressed in the proper manner. The knowledge of the language barrier is to make for the fact that the supply chain management system is being addressed in the same proper.
Multidimensional global chain supply issues
Conclusion:
In conclusion, it can be said that the supply chain management system is mandatory in the food industry which makes the whole supply chain of the said sector mandatory in the industrial growth. The supply chain management system makes sure to include as many of the aspects of the food industry to have a detailed analysis of the whole sector. The positive and negative aspects of the supply chain management techniques are being addressed and also the gap between the evaluation and implementation of the supply chain management system. The different problems that are being considered in the supply chain management is being addressed and also the probable recommendations for the same manner. The whole report is based on the supply chain management which is one of the major aspects of the supply in the food industry.
The concept of supply chain management or the global supply chain management is one of the major in the business and marketing of the modern world. The concept essentially records to the process of goods distribution and service allocation to the global network in the sectors of trans-national companies in order to minimise the waste production and maximise the profit that is there in the organization (Myerson 2012). The focus of the theme is basically on the six priority sectors in the supply chain management process namely logistics management, competitor orientation, customer orientation, supply-chain coordination, supply management, and operations management. The major objective of the global supply chain management system is to make sure that the various supply chains are being addressed and regulated with the aspects set by the regulations by the government and the non-government bodies of the organizations who are conducting the supply (Christopher 2016). Food and beverage industry is the industry that is related to the working of the food and beverage in the sectors related to the food and beverage supply in the required sector. The supply chain management of the food industry is being done in a number of ways which are primarily the main concerns analysed in the report. The report states the positive and the negative aspects of the supply chain management of the food industry. The gap between the evaluation and implementation is being analysed in regards to the food industry in the supply chain management. In addition, the issues related to the supply chain along with the required recommendations are being raised.
Techniques for solving or reducing the problems in supply chain issues in food and beverage industry
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