Design And Performance Of A Supply Chain In Food Industry -samples

Question: Discuss about the Design And Performance Of A Supply Chain In Food Industry . Answer: Introduction The supply chain is the network that exists between a company and its suppliers that enable the company to produce and distribute their products, the supply chain represents the systematic steps taken by the firm to deliver the product or service to its clients. Supply chain management is an important process since a well-optimized supply chain leads to reduce production costs and faster production cycle hence the company benefits with a significant profit margin. Supply chain involves the suppliers, manufacturers, and retailers who distribute the end product or service to the customer. In a food industry, the supply chain is critical compared to other supply chains since most of the foods are perishable and are prawn to going bad if not handled with care or even if they don't reach the company and consumers at the right time. Its every food industry wish to produce and supply high-quality foods at all time to their clients (Manzini Accorsi 2013, p.256). However this is a challenge since most of the food is produced in small scale, and marketing channels available are considered nonprofit able to local or small scale food producers. Quality, price and on time delivery are the important perspective that is viewed in the food supply chain industry. Australian Dairy Supply Chain In Australia, since the drop of regulation in dairy products in 2000 the stakeholders in the Australian dairy food supply chain have been confronted with a complex and a gradually changing environment. Supermarkets in Australia emerged as the dominant in supply chain development, but they also depended on other supply chain participants. The future supply chain development is highly dependent on the capabilities of the supply chain stakeholders and the strategic organization within the processing companies (Smith, Lawrence and Richards 2010, p146). The companies also need to be vigilant and be responsive to the ever changing user needs and the dynamics of the market environment. In Australia cooperative work as the main link between the farmers and the consumer, they are also concerned with value addition and packaging of commercial dairy products. The coordination between the key participants in the chain has been ongoing with competition being high from the superior performers. The coordination focuses on two fundamental requirements for a successful supply chain; efficiency within the supply chain by cutting costs out of the system and the favorable alignment between what is being produced and what is being provided in the market. Therefore its important to have a healthy coordination between the farmers and the cooperatives to ensure efficiency in service delivery. Activities of an individual participant in a supply chain can impact that of other participants since they revolve under an interdependent system. It's therefore important to sort out the challenges and modify the system so that the joint productivity is increased. However in a supply chain conflicts are inevitable it's important to strengthen the relationship to ensure maximum productivity from the interrelationship. Utilization, Source And Processing Of Milk In Australia The Australian industry is that third largest rural industry in Australia with eighty percent of the milk produced coming from the south eastern part of the country. Fifty-five percent of the milk produced in Australia is exported accounting for sixteen percent of the global dairy export (Bourlakis,Maglaras ,Gallear and Fotopoulos 2014, 61). The milk produced is meant for two broad categories of the market: fluid drinking milk and manufacturing milk that is supposed to produce dairy products like cheese and butter. Cooperatives in Australia have dominated the processing industry accounting about seventy-five percent of all the milk output. The major milk processors in Australia include dairy farmers, national foods, and Parmalat which handles about eighty-six percent of the Australian drinking milk. The Australian domestic market is moved through three principal distribution channels being; the route trade, supermarkets, and food service channels. Supermarkets which include both the major and smaller chain groups represent the largest growing channel of distribution. The route trade which includes small retail outlets and convenience stores is the second biggest dairy product distribution channel. The food service channel is the most minor but still growing including the restaurants, caterers, and fast food outlets. Australia Deregulation Before the deregulation in Australia, the milk manufacturing market was characterized by open access where trading of milk between states was done freely. The state dairy authority came to set the market prices from the farmer up to the retailer. Distribution of milk in the market was also regulated with vendors being limited to make sales at specific zones. Controlled supply characterized the relationships between the producers, processors and the retailers. The deregulation led to supply chain becoming more integrated, and innovation in product process and supply chain is becoming revolutionized in the way the products are being produced, distributed and marketed. Deregulation opened up many opportunities for retailers regarding increasing their margins in the new supply chain. Major supermarkets now demand fresh produce to come from the suppliers and distributors who comply with the food standard code and good manufacturing practices. Having a competitive market with fresh milk and other milk products characterized with oversupply and commodity orientation the only way to a competitive advantage is through innovation. Government Policies Changing of government policies and public perception towards environmental sustainability has resulted in environment consideration at all stages of the supply chain (Peter and Rowley, 2010.p 1327). All stakeholders including supermarkets are emphasizing on minimization of waste, reduction of energy consumption and recycling. Processors, on the other hand, are designing environmental friendly packages while the milk producers are under the scrutiny of water management, land use systems, and animal welfare. Conclusion Evaluation of the Australian dairy food supply chain shows the potential of the supply chain concept for industrial development of the dairy food chains. Conceptualizing the supply chain dynamics provide insights into potential opportunities for change ,resources and capability that are likely to contribute to the dairy success in the short and long term. Continuous improvements in the Australian dairy supply chain will benefit not only the individual firms but also the large cooperatives. Bibliography Peters, G.M., Rowley, H.V., Wiedemann, S., Tucker, R., Short, M.D. and Schulz, M., 2010. Red meat production in Australia: life cycle assessment and comparison with overseas studies.Environ. Sci. Technol,44(4), pp.1327-1332. Parfitt, J., Barthel, M. and Macnaughton, S., 2010. Food waste within food supply chains: quantification and potential for change to 2050.Philosophical Transactions of the Royal Society of London B: Biological Sciences,365(1554), pp.3065-3081. Klerkx, L. and Nettle, R., 2013. 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