The supply chain plays an integral role in your business and tends to maximize customer value. It encompasses all the activities beginning from the production process to delivering the products.
All supply chain components serve diverse business functions and processes that allow the organization to gain a sustainable competitive advantage. Regarding food delivery, food supply chain management software manages all the activities and increases the delivery time.
In This article, we will understand the factors affecting the supply chain management process. Let’s begin.
Factors that influence food supply chain management
- Environmental Uncertainty
Global warming is increasing the temperature with time. Rainfall is more in some places but decreasing in others, leading to high temperatures. This directly affects the farming process, and crop production is less.
This major factor badly affects the food supply chain, and the overall process is very slow. Organizations are now addressing such uncertainties and formulating strategies to tackle environmental changes.
- Water Stress
Nowadays, supplying water to crops is a tough task, and the rainfall is also not accurate to have the proper growth. Irrigation is the foremost solution to provide water for countries, but it is expensive. Not every individual is able to afford it on such a budget.
Somehow, this is also a big drawback to be considered for a slow food supply chain management system.
With the advancement in the competitive market, technology is changing its approaches for to better. It can overcome temperature, water, and nutrient deficiencies in the form of the greenhouse, irrigation, and fertilizers.
High-income countries import food from across the globe, which is a costly process. The growth of the biofuel market is taking up valuable farmland, which is not good for the supply of food.
- Efficient Inventory Management
With the establishment of global markets, data is input at every link in the supply chain. Decision-makers have access to a wealth of information. To have effective inventory management, such data must be used as effectively as possible.
There is a deficiency of effective systems that will be effective for the growth of the food supply chain.
The war forces peasants to flee their lands or fight in conflicts. At such a time, food can be used as a weapon, and enemies cut off food supplies to gain status and prosperity.
Crops also are destroyed during combat, and food shortages cause riots and conflicts. Food never is transported adequately due to such conflicts, and this automatically influences the food shortage in many countries.
Lastly, the food supply chain management system satisfies customer demands, but some factors badly affect the process with time. Along with the five factors, it is a compilation of various aspects that affect the supply chain process and the decisions that bring about the rise and fall of an organization.
There’s no denying the difficulties inherent in the food distribution system. Maintaining a high standard of quality and security for your final products is essential whether you are operating on a global scale or relying on local vendors.
Always consider the following aspects while developing food supply chain software. Technology disruptions with blockchain empowered the traceability systems to counter not only food safety issues but also go with sustainability.