Examine the role of supermarkets in supply chain management of fruits, vegetables and food items. How do they eliminate number of intermediaries?
Answers
Supermarkets play a big role in food distributions. They are also the main gate between consumers and suppliers.
Supermarkets can regulate the price of goods, decide what goods to sell in their stores and also shape customer demand.
They sometime eliminate the number of intermediaries by taking fruits or vegetables directly from farmers. This is applicable for farmers that live near urban areas. Farmers that live in further rural areas gather in different types of cooperatives. By taking their goods from these cooperatives, supermarkets also eliminate the number of intermediaries and are able to offer a good price. Also, they save the farmers from transporting the goods, vegetable and fruits. Therefore both the farmers and the consumers are benefiting from this relationship.
Explanation:
The role of super market in food chain management is remarkable. The value of the goods is decied by the super market according to the demands and the supply of the foods. If the supply is greater than demands of the consumers then the price of the goods gows down. Again if the supply is less than the demands of the consumers then the price of the goods increases.