Logistic Manager: Supply Chain
A supply chain is a scheme of administrations, activities, people, information, and resources used in moving various products from a supplier to customer. Piotrowicz et al. (2015, p. 125) argues that the Supply chain events comprise the conversion of natural properties. Also, raw materials are constituents into a complete product distributed to the end customer. Refined supply chain schemes may reuse products at any level where the remaining value can be recycled. Moreover, supply chain management was established to precise the necessity to incorporate the key business practices from customers through initial suppliers. Initial suppliers provide products, services, and the required information that increase the value for end customers and other stakeholders in the organization. This paper analyzes the entire process of the supply chain in raw Agricultural products to the finished product delivery.
The major goal of Supply Chain Management in the agriculture industry is to fulfill taste and preferences of customers through the effective use of resources. Piotrowicz et al. (2015, p. 125) outline the requirements of customers that include spreading capacity, labor, and inventory. Farmers are the major suppliers of raw materials to agricultural based industries. On the other hand, the same farmers act as the final consumers of the processed materials from those industries. A Logistic Manager of an agricultural-based industry should ensure that raw materials move from the suppliers, through the processes within the organization then out to the end users in an effective way.
Connecting the farmers to marketplaces
A common tactic that a Logistic Manager should use in the supply chain is linking the farmers to their organizations. Managers should come up with ways of connecting producers of agricultural products to relevant organizations. There should be a well-established channel where farmers can bring their products to the firm.
Connecting farmers to the market is also concerned with the provision of relevant and up to date information regarding market needs. The supply chain management should ensure that farmers produce products that reflect the needs of the market. Farm materials delivered should be centered on the standard and delivery needs of the purchaser. The delivery of the product should often be at a price established in advance. In providing information, Logistic Managers should recommend their companies to help farmers to prepare their land, identify farming requirements, provide farming advice and transportation of farm products to agricultural industries.
Logistics managers should work to encourage market relations in less developed countries. Market relations are centered on the idea of comprehensive supply chains. Managers should concentrate on detecting potential means in which small-scale farmers are comprised in supplying products. Therefore, small farmers can extract more benefits from the supply chain by either improving the efficiency or by conducting out operations more alongside the organization supply chain.
Agricultural Sector Supply Chain for Finance
Agricultural sector supply chain for finance refers to the movements of finance outside and inside a supply chain to fulfill its basic requirements among the various stakeholders. The stakeholders can secure deals to buy necessary farm products or for progress of effectiveness in the operations. Piotrowicz et al. (2015, p. 125) explains that Logistic Managers should examine and ensure a prospective value chain finance that comprise a universal method to evaluate the supply chain. Also, staffs involved in a supply chain, and their inter-linkages should be evaluated. These efficient linkages enable the finances to flow at all levels of the supply chain. The farm inputs may be delivered to needy farmers, and their cost price paid later after they supply farm products.
It is not essential for farmers to secure loans from banks to deliver the products. Chandrasekaran et al. (2014, p. 8) outlines that this practice is more popular in contractual farming activities. An example of a good supply chain for finance consists of produce funding via a trade. Besides, credit delivered by a promotion company is a part of agricultural products value supply chain. Logistic Managers should introduce trade finance instruments that comprise of receivables finances. In this case, the financial institution provides the required funds contrary to an obligation of impending receivables from the buyer. The corporate then trades its receivable accounts at a certain discount. Assets collateralization may fall below the value of finance supply chain.
The Use of ICTs in Value Supply Chains
Logistics managers should introduce the use of Information and Communication Technologies in their organization. The use of technology is essential in promoting agricultural value supply chain efficiency. According to Li (2011, p. 534), use of modern technologies in agricultural sectors has increased over years. The cost of modern technology services is decreasing, and the information know-how is becoming less expensive. Therefore, Logistic Managers should equip their organization with technology to facilitate their operations. Applications of the Modern Technology can support farmers to access information through short messages on their mobile phones. Applications such as Mobile banking can uphold the contact of payment of farmers through mobile services. Mobile banking has been facilitating transactions of money in the supply chain of a firm.
ICT is used with an aim to reach farmers at the correct time with perfect information. Li (2011, p. 534) further outlines that modern technology also help the organizations capture data from a targeted field. Since the farmers supply agricultural products to most industries, they should be taught how to use current skills on a Smartphone to offer the relevant information in agriculture and additional support to the farmers.
Most of the information about the price of agricultural products in the market is now available to the farmers inform of text messages. Also in the supply chain, modern skills provide substantial opportunities to improve traceability. Traceability is mainly significant in improving quality. Where required, most of the people who export are now able to find deliveries back to specific agriculturalists and take the required actions to report their problems.
Piotrowicz et al. (2015, p. 125) argues that there are aspects necessary for the improvement of the supply chain in the agricultural sector. These aspects include forming the required surroundings for agriculture and financing rural stakeholders. The logistic Managers have a responsibility of creating a conducive environment for farmers who are the suppliers of raw materials to industries as well as the consumers of their products. A stable environment indicates peace and order to the public and macroeconomic stability. Also, stability involves inflation beneath control, the rate of exchange that is centered on market essentials instead of government apportionment of the foreign currency, and the property rights having an expectable proportion of taxation.
There exists a direct positive relationship between the growth of agriculture with investment in irrigation, transportation structure, and other skills. Piotrowicz et al. (2015, p. 125) explains that the government has the duty to provide the necessary products, structure, and agricultural exploration. Value supply chain improvement is influenced by corruption within the organization. The development of supply chain is both at a higher level and at the universal barriers in many less developed countries especially in Africa. Logistic managers ought to take measures to improve the supply chains. The above discussion explores some of the approaches that can be used to improve the supply chain in agricultural organizations.
Chandrasekaran, N., and Raghuram, G. (2014). Agribusiness Supply Chain Management. Hoboken, pp. 8.
Li, D. (2011). Computer and computing technologies in agriculture IV. New York, pp. 534.
Piotrowicz, W. and Cuthbert, son, R. (2015). Supply chain design and management for emerging markets, pp. 125.