When it comes to reviving food supply networks, a real renaissance manager is required. The year 2020 revealed a variety of problems with food supply systems. Despite the fact that technology has been used in supply chains for years, just 41% of companies use it for supply chain mapping. For example, certified BV supply chain service in Malaysia that has years of experience in supply chain, and caters to a wide spectrum of reliable and trustable services for your business. To put it another way, there is space for improvement.
Other industry standards are assisting in supply chain modernization, but the improvements are gradual and difficult to execute. The issue with this approach is that many supply chains already have processes in place that are difficult to change.
There are three main areas where food supply chains may be made stronger and more resilient: digitalization, adaptation, and flexibility.
Seventy-nine percent of supply chain executives think an internet or platform-based strategy is necessary, but which platform will they select? Will it be able to adapt to current models and work with different platforms?
Device integration enables for the recording and tracking of supply chain transactions. Consider a single truck’s function in a supply chain. With a linked data marketplace, you can track when a truck picks up apples from a supplier, how traffic affects it as it travels through cities and across state borders, and when it’s scheduled to arrive. The associated data points may be as specific as you like.
Supply chain mapping can inform people on the receiving end when to reserve a loading dock and how many apples should be delivered to which shop as the truck approaches its destination.
Due to parasites, the old saying that one rotten apple spoils the lot is actually true in the case of food shipments. Digital monitoring technologies can indicate where and when that defective apple came from, alert suppliers and purchasers if a recall is required, and break it down into a single tiny unit, leaving the rest of the apples on the shelf. This is an excellent illustration of how digitalization improves market visibility and transparency.
In a supply chain, the capacity to respond to changes is critical. Low fuel supply, a lack of labor to harvest crops, product shortages, and severe drought are all examples of challenges.
Supply chain managers may use technology to simulate a variety of situations, from the worst-case to the most frequent, and prepare appropriately. COVID-19 proved to be a greater difficulty than we had anticipated.
61 % of supply chain executives expect a decrease in globalization and offshore production. For the food sector, this implies more domestic supply chains, but they’ll still need to be strong.
Another advantage of technology when it comes to flexibility is the ability to monitor and react to supply and demand problems using aggregate data. Supply chain visibility can show which regions are in desperate need of essential goods and which have enough.
During the pandemic, essentials like bottled water and toilet paper couldn’t be maintained on stores. Part of the issue stemmed from supply chain logistics, with suppliers and factories failing to produce critical goods, and part stemmed from businesses’ inability to properly monitor and manage distribution.
The general people would be less inclined to impulse purchase and hoard goods required by their whole communities if merchants could guarantee a gradual and steady flow of resources.
Technology will not be the savior of food supply systems, but it may help if used correctly. Governments and businesses may advocate for standards, but if we don’t plan how to put them in place, it’s all for nothing.