Benefits of Short Food Chains
Originally Published on: SpendEdge |Benefits of Short Food Industry Supply Chains
Few intermediaries and reduced distances between food producers and consumers characterize short food supply chains. These supply chains are advantageous for increasing the profits of farmers and other producers, reviving rural economies, and providing consumers with access to fresh, reasonably-priced foods. As consumers become more concerned about the spread of infectious diseases and issues such as the discovery of horse meat in packaged foods in Europe, there is a growing interest in short food supply chains. In this article, we have discussed some of the greatest advantages that brief food industry supply chains provide:
Advantages of Brief Supply Chains in the Food Industry
1.) Improved bargaining positions for producers
These short supply chains in the food industry provide producers with increased bargaining leverage, particularly with retailers. Utilizing short food industry supply chains that do not involve multiple processors, merchants, and wholesalers provides farmers and small producers with greater market access.
2) Enhanced communication between producer and consumer
The creation of jobs, particularly in rural areas, can result from short supply chains, which can also enhance the farmer's or producer's reputation and consumers' trust in them. Operating locally enables producers and consumers to engage in more direct communication and interaction, which helps to foster both loyalty and trust.
3)Reductions in transportation expenditures
Short supply chains typically serve a local area, reducing the energy costs, transportation costs, and CO2 emissions incurred by extended supply chains. As a result, these supply chains have a greater capacity to be made sustainable and to remain sustainable over time.
4)Transparency enhancement
Short food industry supply chains with few or no intermediaries are simpler to make transparent than longer, more intricate chains. In addition, producers are able to provide more detailed information about their business and practices, which assists in enhancing their reputation, boosting customer retention, and fostering brand loyalty. It also facilitates procurement decision-making.
5.)Decreased danger
Short supply chains in the food industry reduce the possibility of product loss, contamination, or larceny during transport, packaging, or production. Reducing the number of participants in the supply chain makes it safer and more secure, thereby protecting farmers, producers, and consumers.
6.) Quality enhancement
Doing business and transporting commodities locally improves their overall quality by reducing the need for freezing and preservatives, thereby providing customers with access to a fresh food supply. In addition, brief food industry supply chains reduce food waste and disposal expenses for farmers and producers.
7)Enhanced earnings
Short supply chains in the food industry provide farmers with higher profits while keeping the final price for consumers relatively unchanged. By eliminating middlemen, shortening the length of the food industry's supply chains, and operating on a more independent basis, farmers and small producers are able to retain a greater portion of the resulting profits rather than distributing them to other suppliers.
Logistics strategies for limited food distribution chains
•Inventory Management: Maintain optimal inventory levels by closely monitoring product turnover rates, minimizing deterioration, and ensuring product availability.
•Develop strong relationships with suppliers, distributors, and retailers in order to enhance communication, coordinate efforts, and respond effectively to change.
•Cold Chain Management: Maintain temperature-controlled environments for the preservation of food quality and safety, particularly for perishable products.
•The importance of straightforward communication in a short food supply chain
Simple communication strategies have significant value in short food supply chains (SFSC).
Clear and concise communication between producers, distributors, retailers, and consumers promotes transparency, reduces inefficiencies, and nurtures confidence. By exchanging information about product availability, quality standards, and delivery schedules, SFSC stakeholders can coordinate effectively to reduce food waste and ensure timely access to fresh products. Furthermore, straightforward communication helps convey the sustainability and local sourcing aspects that SFSC frequently emphasizes, which resonates with environmentally-conscious consumers. In the end, these uncomplicated communication strategies strengthen the resiliency and success of SFSC by fostering strong relationships and meeting the demands of an increasingly conscientious market.
