Regardless of the geographical area in which food businesses operate, the whole food supply chain confronts certain similar problems.
Food supply chain sustainability
Sustainability is becoming more popular in the food supply chain management sector, just as transparency and traceability are . Many companies like certified supply chain service in Malaysia have recognized customer demand for food items that are sourced and manufactured in a sustainable manner, with as little effect on the environment and people as possible.
Many businesses, for example, are enhancing the sustainability of their food supply chains by recycling trash and packaging materials from consumer to farm, as well as implementing systems that decrease energy usage, minimise resource inputs, and utilise renewable energy whenever feasible.
Consumer behaviours are rapidly shifting.
Convenience is no longer the primary motivator for buying choices. Consumers nowadays are not restricted to buying choices imposed by merchants. They now have more options and diversity thanks to the internet. As a consequence, there is greater variety, ranging from worldwide internet shopping to locally produced, organic goods.
Customers now expect more than just a label that reads “100% organic” – they want evidence that it’s true. In response, fast food restaurants have launched a number of ads that describe their culinary procedures and supply chain in more depth.
In 2014, McDonald’s launched a campaign called “Our Food. Your Concerns.” to address questions regarding food at McDonald’s after research revealed that one of the reasons consumers were not patronising the outlet was due to food quality misperceptions.
The campaign provided answers to queries such as what McNuggets were composed of, if the eggs were genuine, and many more. A year later, they claimed a more informed customer base ready to back them up.
This demand adds complexity and occasionally incurs extra expenses for most fast food businesses. To be open about the whole supply chain, they would need to develop technologies that allow for greater visibility across the supply chain, both upstream and downstream. Alternatively, they would have to enter the supply industry and produce their own ingredients.
Food waste in the supply chain
Poor inventory management is the root cause of resource waste. Wastage may occur for a number of causes. New companies may order goods without anticipating demand, make a mistake while making a product order, fail to keep track of best by dates, and so on.
Using food production software is the key to reducing waste in the food supply chain. Most excellent software includes features like batch and serial tracking, stock management, and forecasting tools.
Whether you are a tiny company just getting started in the food production industry or a big global food store, the food supply chain may present many difficulties. Businesses in the food supply chain can mitigate these issues by ensuring they have the right inventory management software to manage inventory management and to stay up to date on recent trends in food supply chain management. By doing so, businesses can ensure customer orders are fulfilled efficiently and safely, resulting in customer satisfaction, retention, and profitability.