Supply Chain Management in the food industry


In this modern world with an abundance of technology and the Internet, every company will have to cope up with the fast paced development to be able to survive the competition. The food industry is no exception to this. Effective supply chain management is a very important and critical to this industry because the food is spoiled.

Large companies in the food industry such as Nestle, Unilever, Magnolia, among others utilize efficient SCM. They take advantage of the Internet to reach out to their end-user customers to be able to get feedback and improve the quality of their products. Satisfaction or customer dissatisfaction can directly related to the performance of the supply chain of the company. Each company changes their internal structure to celebrate eMarketplace where everything can be done by using modern technology. Suppliers, wholesalers and distributors can easily track here.

Why some companies lost a lot of money and even went bankrupt when the food industry is one of the most profitable industries. They eat constantly so there is no reason why the industry would lose its market. This is due to the ineffective and incompetent SCM.

SCM is not only the management of the flow of goods or services from producers until it reaches, but it is a bilateral management of the flow of goods or services and information. The company is solely responsible for the goods or services provided as it will be the brand that the consumer will remember.

A consumer does not know which suppliers of milk for its cheese or make him care who delivers it to the store where he would buy it; what matters to him is that he gets his cheese in the store when he needs it.

A consumer products company more profitable if it has the right product at the right time and the right place. Achieving these three happens only when the entire supply chain acts as one.


Leave a Reply

Your email address will not be published. Required fields are marked *