India is the largest producer of various fresh vegetables, fruits, and meat; groceries and spices; and fibrous crops. The produce of the vegetable alone is around 146 million tons per annum.
Marketing of these vegetables and groceries is challenging than other goods or products because of their perishability and seasonality. However, the proper supply chain management helps to tackle challenges and reap profits for any business.
Let’s dive into the details.
What is the supply chain?
Within each organization, the elements of a supply chain include Farms, mills, Warehouses/collection/distribution centers, retail outlets, and doorsteps of the end customer. And the people involved in the chain include farmers, prime suppliers, manufacturers, transporters, retailers, and customers.
In general, products/goods are moved from suppliers to manufacturers to distributors to retailers to customers along a chain. This supply chain is dynamic and information flows along the chain in both directions.
The importance of supply chain management:
The primary purpose of any supply chain management is customer satisfaction which impacts the bottom line of an organization or company.
There will be unexpected changes in demand and supply. And it is challenging to meet the fluctuating needs and diversified orders of customers.
The objectives of supply chain management include:
• To fulfill time-sensitive orders
• To manage transaction flows-information, inventory, and financial
• To resolve execution errors in inventory, shipment, and payments
• To cut costs and increase profits
• To build strong and healthy relationships with farmers, prime suppliers, and business customers.
• To eliminate waste from the supply chain
Hence, it is mandatory to think for a simplified yet effective supply chain management.
How to simplify the supply chain to improve its performance?
Firstly, make sure everyone in the supply chain adheres to the same objective of your business – Delivering quality services.
Here is the 10-step model (M.A.N.A.G.E.M.E.N.T). Manage management.
M – Model Your supply Chain
A - Adopt & Leverage Latest Technologies
N – Nullify execution errors
A – Agreement with farmers and prime suppliers
G – Go for Green Initiatives
E – Ensure freshness every time
M – Mobilize the supply chain to globalize your business
E – Embrace the Inherent CSR
N – No compromise on quality and faster delivery
T – Track, Assess, the performance every time
Model Your Supply Chain:
Act strategically to improve the supply chain.
• A service provider should define the roles of all the staff in the supply chain so that there would be no scope for conflicts.
• Have well-trained and skilled staff to be productive and to work on the “big picture” of your company.
• Have the latest transport system even for long-distance to eliminate intermediaries.
• Have modern packaging to improve the longevity of freshness.
• Provide round-the-clock customer support for greater customer loyalty and brand credibility.
Adopt and Leverage Latest Technologies:
Stay abreast of the latest advancements in technologies.
• Integrate Blockchain technology to streamline your supply chain by enabling quick and cost-efficient delivery, traceability, and improve collaboration between two ends of the supply chain.
• Harness the power of AI for data collection, tracking, and evaluating to get detailed analytics, demand forecasting, and insights into your business.
• Automate orders: Based on the historical data, forecast accurate demand, and reduce unmet demand and excessive ordering. With Live POS data, you can be more responsive to fluctuations in demand. Integrate both historical and live POS data into ordering tools to automate orders.
Nullify execution errors:
Resolve execution errors in procurement, inventory, shipment, and payments. Follow the top players in vegetables and grocery supply such as Qwipo that has built its supply chain on agility, adaptability, and alignment.
Agreement with farmers and prime suppliers
Find reliable suppliers (farmers and prime suppliers) and have a contractual agreement with them to deliver the best quality to your customers.
• It helps farmers and prime suppliers to know the market demand, price, etc.
• It helps them to receive the right price.
• It forms strong and healthy relationships with them.
• It ensures a disruption less supply for retailers and higher prices for farmers.
• Educate farmers about the latest farming practices (if possible).
• Provide storage requirements whenever required because small farmers may not have facilities to process the vegetables and fruits after harvesting.
Go for Green Initiatives
• Provide simple and seamless digital payments/transactions.
• Have tech-driven green logistics and reduced optimal routes from the farm to the doorsteps of your customers to reduce the footprint on the go.
Ensure freshness every time
Fresh vegetables have a short lifetime and seasonal groceries as well. As a provider/supplier, make sure you supply them on time before they damaged/rotten.
Buy fresh and good quality vegetables and fruits from farmers directly. Ensure your collection center has all the facilities to keep the stuff clean, nutritious, and hygienic to maintain the quality. For groceries, you can store them in a clean and hygienic ambience.
Mobilize the supply chain to globalize your business
As services increases, the supply chain becomes more complex. So, it is better to have a mobile application to cater the global needs. Technology-driven supply chain lets you organize your inventory data, manage shipping, monitor distribution, etc. remotely.
Embrace the Inherent CSR
Embrace the inherent corporate social responsibility like Qwipo, a vegetable and grocery provider whose motto is is to improve the ROI of the farmers, prime suppliers, and business customers.
No compromise on quality and faster delivery
Quick and quality supply wins the game.
• Be ready to cater to different consumer orders/demands at different hours.
• Centralize both the manufacturing and distribution facilities to reduce the transportation time while increasing the number of orders.
Track, Assess, and Improve the performance
Track the whole supply chain using software tools, perform a logistics assessment to know where improvements can be made. And repeat this step constantly.
Proper supply chain management is the fuel for effective business. If you want to maximize returns, maximize the supply chain’s performance. Focus on sustainability and practice ethical ways of doing business within your supply chain. It is a great way to expose your business values, ethics, and culture to your suppliers and customers.
Stay connected and collaborative all the time!.