Question.
What is supply chain management? Highlight its importance in the context of the food processing industry in India.
( UPPSC, UP PCS Mains General Studies-III/GS-3 2022)
Answer.
Supply chain management is the coordination of activities throughout the production and distribution of goods and services. It involves the management of the flow of goods, services, and information from the point of origin to the point of consumption to meet customer requirements effectively.
For example, in the context of food processing in India, supply chain management:
- It directly connects farmers, food processing units, and consumers.
- It manages the flow of agricultural produce from farmer to consumer and also manages the flow of instructions from consumer to farmer.
The food processing Industry in India is one of the largest in the world and is expected to grow rapidly in the future. However, food processing units is facing several challenges related to supply chain management adequate storage facilities, inefficient coordination between farmer and consumers, middlemen, and poor infrastructure including transportation system.
Effective supply chain management can help to overcome these challenges and can benefit farmers, consumers, and the food processing industry in India.
The following are the benefits of supply chain management for food processing in India-
Increase traceability; Supply chain management help in tacking food products from farm to table which helps in improving transparency and accountability. This also builds trust, which enhances the reputation of food processing companies in India.
Efficiency increase; Supply chain management can help optimize the flow of goods and services which reduces costs, and improves overall efficiency.
Food safety; Supply chain management help in professional transportation and storage facilities of food products which maintain their quality and safety. So, it reduces the risk of contamination and improves overall food safety.
Better inventory management; Supply chain management helps food processing companies in India to manage their inventory more efficiently, reducing waste and improving profitability.
In conclusion, supply chain management is very important to the food processing industry as it increases traceability, and efficiency, and enhances food safety.
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