Examine the role of super market in supply chain management of fruits vegetables and food items house do the
Answers
Supermarkets directly procure from the farmers near the urban areas.
For the farmers living faraway from urban areas, the supermarkets usually tie up with “aggregators” (such as farmers’ cooperatives and private logistics companies) to obtain the cereals, pulses, fresh fruits & vegetables.
In either case, procurement is done at the farmgate, saving farmers from the aforementioned intermediaries of a traditional-Mandi.
This is not to say that supermarket SCM doesn’t require Hamals, transporters, weighmen and graders but variety of agents, brokers and middlemen are eliminated.
As a result, even if supermarket doesn’t offer the farmer prices higher than Mandi, still his transportation & unloading costs are saved.
Supermarkets usually work on “low-margin-high-volume” business strategy, as a result the end-consumer may get the said items at a reasonable price.
Thus, supermarkets’ supply chain management (SCM) of fruits, vegetables and food items benefit both farmers and the consumers.