advantage disadvantage of food supply channel in India
Answers
ADVANTAGES
Fidelity of the clients. Thanks to the efficiency in the production processes, customer service improves in aspects such as delivery time, purchase conditions … This causes customers to have the brand in mind when they think about these specific products. If the shopping experience is satisfactory, they will repeat.
Better control When the whole process is defined, we can know in real time and at all times in which link of the chain the product is located. This allows greater control with external actors such as suppliers, being able to quickly and easily access a greater number of offers. In addition, it allows to track the dates of supply entries, production, distribution dates, etc.
As a result, small conflicts or everyday problems are reduced.
More profitability All operating costs of the supply chain are reduced by 20-30%.
Improves competitiveness and allows reaching new markets.
Leadership. A good implementation of the supply chain, besides having good results for an organization, will also make you stand out in the market as a leading company. Customers also play a decisive role, if they choose you they will end up becoming a reference.
Greater unity in the team. Each actor in the chain knows what their functions are, when they should be carried out and the importance of working as a team. They work like a real chain in which each piece is key to achieve that the product arrives in the best conditions to the final customers.
DISADVANTAGES
vDepartmental wars. Supply chain projects involve multiple departments, such as purchasing, planning, manufacturing, distribution and Information Technology.
Weak leadership When intervening multiple departments, supply chain projects need a strong senior executive and that is capable of acting to eliminate those points of interdepartmental disunity because there will be numerous challenges to be solved.
Slowness of reach.It is often observed how projects become complicated over time, due to the addition of new functions and features. In the end you end up with an inflated project that is so extensive that it will never be completed or that, if completed, you will not get a profit on solid investment.
More attention is paid to Information Technology, than to the quality of the data and the security of the same.
The benefit on investment is difficult to measure
The bad habits take time to disappear
The costs are difficult to quantify.
The time and planning required for its implementation.
Advantages of food supply channel in India are:
- Better communication between the producer and the consumer
- Effective negotiations for the farmers with the retailers
- Increases transparency in dealings
- Reduces costs of transportation
- Increase the level of quality and reduces risks.
Disadvantages of food supply channel in India are:
- Lack of infrastructure facilities
- Low income for the farmers
- Lesser value addition due to low processing
- Poor quality and standards of safety.
Explanation:
- Lack of infrastructure facilities leads to an increase in transportation costs.
- Poor transportation facilities, lack of equipment, tractors and trucks, and travelling long distances to the city markets make it difficult for farmers to get proper prices for their products.
- It leads to low income for the farmers. On the other hand, the advantage of the food supply chain is that brings transparency in the dealings and the farmers are able to negotiate good prices with the retailers.