As an agro-food sector specialist, I have to say that the company leadership should define the business strategy, operating model, operational performance objectives and talent management process in a competitive way.
I have managed many GAP projects (Good Agricultural Practices) in Turkey such as apple, pear, peach, broccoli, plum, potato, wheat, corn, etc. All were good examples of the excellence in supply chain management.
Now let’s look at the competitive strategy elements and supporting model characteristics of excellent supply chain?
- Ensuring food authenticity and avoid food adulteration.
- Creating new packaging to prolong the shelf life and reduce the spoilage and oxidation.
- Providing long shelf life and maintain freshness and minimize the use of additives.
- Improving the cold chain and prolong the shelf life of products and reduce the energy consumption.
- Entering farming systems and practices that use low agrochemicals.
- Increasing efficiency in processes and energy use.
- Improving water use efficiency in food manufacturing.
- Reducing waste and reusing of waste material.
- Creating products for healthy living and aging.
- Introducing nutraceuticals and healthy foods.
- Introducing low salt, low fat and low sugar foods.
- Launching products for specific consumer groups.
- Performing overall increase in plant and animal productivity and farm output.
- Entering to the markets of developing countries.
- Increasing the growing fields of the fruits and vegetables
- Increasing plant and animal production in urban or enclosed environments.
- Developing and launching high quality convenience foods.
- Educating the people and extending agricultural activities and developing countries to increase the supply.
- Customer response: Company should develop and implement measures such as order cycle time, perfect order fill rates, product quality, and new product time to market.
- Efficiency: They have to assess supply chain capability for converting inputs into outputs. I believe that companies should focus on labor productivity, labor content, cost of supply chain, and waste to improve their costs and competitive power against peers.
- Asset utilization: Company should focus on how effectively facilities and inventories are being used.
Thank you for comments and shares my articles!
Yusuf Tokdemir is a senior agro-food sector specialist/consultant and executive with intensive experience and know-how in the agro-food sector project management, manufacturing operations, quality, EU regulations, food safety, good agricultural practices (GAPs) and supply chain management of the agri-food (food and beverages, soft drinks, baby food, agriculture, bottled water, artisan chocolates) and pharmaceutical industries.