Chapter1: supply chainSupply Chain Management represents the management of the entire set ofproduction, manufacturing or transformations, distribution and marketingactivities by which a consumer is supplied with a desired product. Supply chainmanagement encompasses the planning and management of all activities involvedin sourcing procurement, conversion, and logistics management. It also includescoordination and collaboration with channel partners, which may be suppliers,intermediaries, third-party service providers, or customers. (Rais, 2015) Understanding the process of providing consumerproduct and service as supply chain is now common in most industries. Fromacquiring the raw material, in this case farming the raw material to thedelivery of final process, is viewed as the supply chain. This comprises of the movement of fruits and vegetables starting fromHarvest, processing and handling right up to when the products are at the endconsumer. The supply chain system comprises in various stages which can be describedin the supply of fresh fruits and vegetables as:- PRODUCER/ MANUFACTURER: A producer or manufacturer can beconsidered as someone who generates a product using natural processes orusually stimulated with labor, Nutrients and other resources.
(Businessdictionary). Producers/manufacturersare 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 andstore them in warehouses to be used for different processes or are sold directlyto other retailers. They usually carry non-competitive goods from one level toanother and are usually known as the main distributors in the supply chainmarket. (Businessdictionary).
An example is the Pacificcoast fruits company which is specialized in wholesale distribution with centerin Portland Oregon (Pacific Coast Food Company, 2018). -RETAILER: These are usually main buyers from the Distributors and are directlylink to supplying products to end consumers. They are usually considered as the supermarkets, stores where endconsumers buy goods and services. (Businessdictionary). Examples aresupermarkets such as Safeway, Trader Joe’s, Food Lion and many others.
-CONSUMER: They are usually considered asthe final consumers. They usually can acquire the goods from the Retailers,distributors or manufactures directly. (businessdictionary) this are end userssuch as household citizens. figure 1. Showsthe structure of the supply chain of products from the manufacturer right up tothe end consumer.
It explains the different stages in which the products can besupplied from the producer (farmer) right up to the end consumer. Be itdirectly or going through the different stages of supply chain. Figure 1()The supply chain has created a great level of Jobs worldwide as it managestransportation, warehousing, inventory management, packaging and logisticsinformation. For example, in the U.S., logistics activities represent 9.9% ofall dollars spent on goods and services and this can be translated into10,000,000 U.
S. logistics jobs (CSCMP, 2017)CSCMP continues by explaining that not only the job creation isimportant for the existence of the supply chain but also the fact that the Supplyplays a very vital role in human society of today. Every human being in theworld needs supply chain for one way or the other and it is shown that supplychain 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 availabilityof fresh fruits.Transportation of agricultural products is the movement of freshproducts from one point to another in the supply chain stages.
(Businessdictionary)Datex classifies Transportation, storage and handling as the players ofa more critical role in the supply and distribution of fresh products becauseproviding an efficient, sanitary and last mile delivery service plays asignificant impact on the freshness and quality of the fruits and vegetables. (DatexCorporation, 2018) Postharvest management can beseen as a practice that includes the cleaning, washing, selection, grading,disinfection, drying, packaging and storing of fresh fruits and vegetables. Thesecomprises of the elimination of undesired elements and the improving of theproduct appearance as well as ensuring required quality standard for freshproducts. (Hassan R. El-Ramady, 2015).Post-harvest has to be properly done so as to maintain the fruits andvegetables in a very fresh condition and to avoid wasted and avoid the food from deteriorating since oncefruits are harvested they start to deteriorate.
Base on the Post- harvest thelogistic processes of transportation and delivery can be properly planned and organizedfor the different type of fruits and vegetables as they vary in shelf life.Pre Packaging and Pre CoolingAccording to Ramady et al, cooling is one of the most important aspectsto be considered after the post-harvest as it immediately removes the fieldheat from the products. He continues by explainingthat products such as lettuce are being packaged in the field and transporteddirectly rather than taken them to storage areas for packaging which is a wasteof time.
(Hassan R. El-Ramady, 2015)PackagingRamady also explaining that the Finalproduct packaging usually considered as the packaging when goods are madeavailable in supermarkets must meet certain standards favorable to maintain thefood in a very fresh condition some of which are:i) Facilitate the marketing and Handle base onUnit and size in the packageii) Prevent product injuryiii) 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 areduction in the handling process of fresh fruits and vegetables and will alsogive rise to a reduction in handling cost and reduction in damages and productquality loss. (Hassan R. El-Ramady, 2015)Storage and TemperaturePresently, there are many technological developments as compared to theold days that have been put in place for the storage of fresh fruits andvegetables and to try and maintain them as fresh as possible.Fresh fruits and Vegetables are usually stored and transported at verylow temperatures as the low temperatures keeps it much more fresh by reducingthe rate at which the decay may take place. (Rais, 2015)Once the fruits and vegetables undergo the post-harvest, they are storedand kept at a conducive temperature where they can now be transported andsupplied using one of the Supply chain stages in figure 1.
Chapter – 2: The Demand offresh fruits and vegetablesDemand can simply be defined as the Desire for or willingness forcertain goods and services. (Businessdictionary).Since the mid-seventies, many Americans switched their preference fromthe large consumption of canned food now to the consumption of mostly freshfruits and vegetables (Pollack, 2001).The consumption of fruits and vegetables is shown to be a very importantfactor for a good diet that leads to good health. (Pollack, 2001)Base on the food and drug administration from the United States ofAmerica, it is said that about 48million United States citizens contract foodborne illnesses mostly caused by Perishable food.
(O’Byrne, 2016)Market research report 2017 shows that the global organic food andbeverages market size reached about USD 91 Billion in 2015. The great increasein the awareness of good health associated with the consumption of organicproducts has been of great influence and explains the reason for the increasein demand. (market research report, 2017)Also, the United States department of agriculture economic researchservice explains that The fast growth in fresh fruit and vegetable in theUnited states of America is as a result of a number of institutional andeconomic aspects. The United States Consumer preferences have continuouslychanged as income has risen. (Sophia, 2007)Datax continues bysaying that consumers are now very educated about produce selections availablein supermarkets thus influencing their buying decisions and also leading to anincrease in the demand of fresh fruits and vegetables (DatexCorporation, 2018).
The US organic food market provided a graph showing the trend in theincreasing demand of various organic products which can be seen below in figure2 STATISTICS OFTHE INCREASE IN DEMAND TREND Figure 2: (market research report, 2017)In figure 2, we can see that over the past years from 2014 there havebeen an increase in the overall consumption and demand of various organicproducts such as :- Fruitsand vegetables- Dairyproducts- Meat,Meat & poultry- Frozenand processed food as well as others.This shows that generally there have been and increase but with large increasingdemand in the sector of fruits and vegetable food.Another feature that plays a good increase in demand is the increase inper capita in the United States. The increase in income of a person or a householddefinitely will bring about and increase in food expenditure resulting in anincrease in the desire for the best quality of food. (Gehlhar, 2001).The wealthy desire to enjoy the best quality and to maintain a wellsuitable life style focusing on quality and standards.Pollack also explains that as the per capita income in the developingcountries is at a growth we will definitely be experiencing and increase indemand for fresh fruits and vegetables in various house wholes (Pollack, 2001).looking at the forecast (fig 1) from the market research report, we can seethat the demand for fresh fruits and vegetables is expected to grow in thefuture 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 andvegetables and countries keep developing and standard of living is becomingmore and much more better.