Chapter
1: supply chain

Supply Chain Management represents the management of the entire set of
production, manufacturing or transformations, distribution and marketing
activities by which a consumer is supplied with a desired product. Supply chain
management encompasses the planning and management of all activities involved
in sourcing procurement, conversion, and logistics management. It also includes
coordination and collaboration with channel partners, which may be suppliers,
intermediaries, third-party service providers, or customers. (Rais, 2015)

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

Understanding the process of providing consumer
product and service as supply chain is now common in most industries. From
acquiring the raw material, in this case farming the raw material to the
delivery of final process, is viewed as the supply chain.

This comprises of the movement of fruits and vegetables starting from
Harvest, processing and handling right up to when the products are at the end
consumer.  

The supply chain system comprises in various stages which can be described
in the supply of fresh fruits and vegetables as:

– PRODUCER/ MANUFACTURER:

 A producer or manufacturer can be
considered as someone who generates a product using natural processes or
usually stimulated with labor, Nutrients and other resources.  (Businessdictionary). Producers/manufacturers
are usually considered as the farmer in the supply of fruits and vegetables.

– WHOLESALER / DISTRIBUTOR

Wholesalers are usually considered as bulk buyers.  They buy goods from various manufacturers and
store them in warehouses to be used for different processes or are sold directly
to other retailers. They usually carry non-competitive goods from one level to
another and are usually known as the main distributors in the supply chain
market. (Businessdictionary). An example is the Pacific
coast fruits company which is specialized in wholesale distribution with center
in Portland Oregon (Pacific Coast
Food Company, 2018).

 

 

 

-RETAILER:

These are usually main buyers from the Distributors and are directly
link to supplying products to end consumers. 
They are usually considered as the supermarkets, stores where end
consumers buy goods and services. (Businessdictionary). Examples are
supermarkets such as Safeway, Trader Joe’s, Food Lion and many others.

-CONSUMER:

 They are usually considered as
the final consumers. They usually can acquire the goods from the Retailers,
distributors or manufactures directly. (businessdictionary) this are end users
such as household citizens.

 

figure 1. Shows
the structure of the supply chain of products from the manufacturer right up to
the end consumer. It explains the different stages in which the products can be
supplied from the producer (farmer) right up to the end consumer. Be it
directly or going through the different stages of supply chain.

 

 

 

 

 

 

 

 

 

 

Figure 1()

The supply chain has created a great level of Jobs worldwide as it manages
transportation, warehousing, inventory management, packaging and logistics
information. For example, in the U.S., logistics activities represent 9.9% of
all dollars spent on goods and services and this can be translated into
10,000,000 U.S. logistics jobs  (CSCMP, 2017)

CSCMP continues by explaining that not only the job creation is
important for the existence of the supply chain but also the fact that the Supply
plays a very vital role in human society of today. Every human being in the
world needs supply chain for one way or the other and it is shown that supply
chain is one of the most basic necessities to humans for the supply of food,
water, medications energy etc. (CSCMP, 2017)

Failure to any process of the supply chain can affect the availability
of fresh fruits.

Transportation of agricultural products is the movement of fresh
products from one point to another in the supply chain stages. (Businessdictionary)

Datex classifies Transportation, storage and handling as the players of
a more critical role in the supply and distribution of fresh products because
providing an efficient, sanitary and last mile delivery service plays a
significant impact on the freshness and quality of the fruits and vegetables. (DatexCorporation, 2018)

 Postharvest management can be
seen as a practice that includes the cleaning, washing, selection, grading,
disinfection, drying, packaging and storing of fresh fruits and vegetables. These
comprises of the elimination of undesired elements and the improving of the
product appearance as well as ensuring required quality standard for fresh
products. (Hassan R.
El-Ramady, 2015).

Post-harvest has to be properly done so as to maintain the fruits and
vegetables in a very fresh condition and to avoid wasted and  avoid the food from deteriorating since once
fruits are harvested they start to deteriorate. Base on the Post- harvest the
logistic processes of transportation and delivery can be properly planned and organized
for the different type of fruits and vegetables as they vary in shelf life.

Pre Packaging and Pre Cooling

According to Ramady et al, cooling is one of the most important aspects
to be considered after the post-harvest as it immediately removes the field
heat from the products.  He continues by explaining
that products such as lettuce are being packaged in the field and transported
directly rather than taken them to storage areas for packaging which is a waste
of time. (Hassan R. El-Ramady,
2015)

Packaging

Ramady  also explaining that the Final
product packaging usually considered as the packaging when goods are made
available in supermarkets must meet certain standards favorable to maintain the
food in a very fresh condition some of which are:

i) Facilitate the marketing and Handle base on
Unit and size in the package

ii) Prevent product injury

iii) Guide information to buyer such as grade,
quality, name origin etc

                                                                         
                 (Hassan R.
El-Ramady, 2015)                 

These procedures are usually carried out at the Level of the field as a
reduction in the handling process of fresh fruits and vegetables and will also
give rise to a reduction in handling cost and reduction in damages and product
quality loss. (Hassan R.
El-Ramady, 2015)

Storage and Temperature

Presently, there are many technological developments as compared to the
old days that have been put in place for the storage of fresh fruits and
vegetables and to try and maintain them as fresh as possible.

Fresh fruits and Vegetables are usually stored and transported at very
low temperatures as the low temperatures keeps it much more fresh by reducing
the rate at which the decay may take place. (Rais, 2015)

Once the fruits and vegetables undergo the post-harvest, they are stored
and kept at a conducive temperature where they can now be transported and
supplied using one of the Supply chain stages in figure 1.

 

 

 

 

Chapter – 2: The Demand of
fresh fruits and vegetables

Demand can simply be defined as the Desire for or willingness for
certain goods and services. (Businessdictionary).

Since the mid-seventies, many Americans switched their preference from
the large consumption of canned food now to the consumption of mostly fresh
fruits and vegetables (Pollack, 2001).

The consumption of fruits and vegetables is shown to be a very important
factor for a good diet that leads to good health. (Pollack, 2001)

Base on the food and drug administration from the United States of
America, it is said that about 48million United States citizens contract food
borne illnesses mostly caused by Perishable food. (O’Byrne, 2016)

Market research report 2017 shows that the global organic food and
beverages market size reached about USD 91 Billion in 2015. The great increase
in the awareness of good health associated with the consumption of organic
products has been of great influence and explains the reason for the increase
in demand. (market research
report, 2017)

Also, the United States department of agriculture economic research
service explains that The fast growth in fresh fruit and vegetable in the
United states of America is as a result of a number of institutional and
economic aspects. The United States Consumer preferences have continuously
changed as income has risen. (Sophia, 2007)

Datax continues by
saying that consumers are now very educated about produce selections available
in supermarkets thus influencing their buying decisions and also leading to an
increase in the demand of fresh fruits and vegetables (DatexCorporation,
2018).

The US organic food market provided a graph showing the trend in the
increasing demand of various organic products which can be seen below in figure
2

 

 

 

 

STATISTICS OF
THE INCREASE IN DEMAND TREND

 

 

 

 

 

 

 

 

 

 

 

Figure 2: (market research
report, 2017)

In figure 2, we can see that over the past years from 2014 there have
been an increase in the overall consumption and demand of various organic
products such as :

–         
Fruits
and vegetables

–         
Dairy
products

–         
Meat,
Meat & poultry

–         
Frozen
and processed food as well as others.

This shows that generally there have been and increase but with large increasing
demand in the sector of fruits and vegetable food.

Another feature that plays a good increase in demand is the increase in
per capita in the United States. The increase in income of a person or a household
definitely will bring about and increase in food expenditure resulting in an
increase in the desire for the best quality of food. (Gehlhar, 2001).

The wealthy desire to enjoy the best quality and to maintain a well
suitable life style focusing on quality and standards.

Pollack also explains that as the per capita income in the developing
countries is at a growth we will definitely be experiencing and increase in
demand for fresh fruits and vegetables in various house wholes  (Pollack, 2001).

looking at the forecast (fig 1)  from the market research report, we can see
that the demand for fresh fruits and vegetables is expected to grow in the
future years as the awareness for fresh fruits and vegetables is increasing (market research
report, 2017).

We are expected to face great increase in the demand of fresh fruits and
vegetables and countries keep developing and standard of living is becoming
more and much more better.