Supply Chain Management and its Benefits in Food Industry

Effective supply chain management is essential for the food industry because of the fact that the food gets spoiled. The business should take care that the right products reaches the right customer at the right price and at the right time in right condition and this can be done by the managing the supply chain effectively. This improves the customer satisfaction.

The supply chain process involves the two way flow of goods or services and the information between the manufacturers and the customers. Lot of companies in the food industry Nestle, Unilever, Magnolia etc., are getting the feed back from the customers and they utilize the suggestions given by the customers in the development of the products. Globalization has its impact on the supply and demand in the food industry, globalization of the supply chain means transporting food across the world to be processed and back again to the country of origin to be sold can make environmental and commercial sense. Ineffective and incompetent supply chain management can lead to the bankruptcy of the business.

The technological changes in the supply chain management improves the communication, and brings the significant changes in the relationship between the partners in the supply chain, enhances the productivity and the profits of the businesses in the food industry.