Overview of the Perishable Goods Industry
In the recent years, the consumers have been more demanding and are augmenting the need for quality in their food products. With the presence of temperature-sensitive products such as perishable goods, the transportation of goods becomes more complicated from the source to the final destination. Due to the varied environmental conditions, leading businesses in the perishable goods space should ensure efficiency in their logistics process to retain the properties of the products. The growth of perishable goods space can be attributed to factors such as frequent changes in the lifestyle and dietary patterns of the customers.
Some of the factors that may curtail the growth of the industry include:
- Robust packaging- When dealing with perishable products such as fruits and vegetables, the products have to be protected from dust, pressure, and any impacts. So, packaging plays a prominent role in retaining the quality of the products. Moreover, stringent compliance regulations are also compelling businesses to ensure that the perishable goods should stay within the safe temperature.
- Maintaining efficiency– When it comes to a product line, perishable goods suppliers are finding major concern to maintain efficiency in their supply chain activities. A safe distribution of goods requires proper planning and the use of right tools. So, to reach out to the customers in an efficient manner, businesses are planning to find the most efficient route for the distribution to ensure a fresh delivery of products.
To address such challenges and identify the flaws in the supply chain, businesses are augmenting the need for a supply chain risk analysis solution.
The Business Challenge and Our Journey
The client, a renowned perishable goods supplier, wanted to identify, monitor, and detect threats to ensure supply chain continuity and profitability. With the help of industry best practices, the client wanted to forecast the potential risks in terms of cost volatility, material shortages, and supplier financial issues and suggest best practices to manage supplier information. Moreover, the perishable goods supplier wanted to identify red flags that may indicate problems and leverage technology to detect the problems early.
To understand the procurement process in the perishable goods space, the procurement experts at SpendEdge carried out extensive research comprising interviews and discussions with prominent stakeholders in the food industry. To track and report the supply chain metrics, the experts also compiled information across a wide array of reliable sources such as trade shows, paid industry databases, and company presentations.
The supply chain risk management solution offered by SpendEdge assisted the perishable goods supplier to identify the typical risks associated with the key suppliers and their impact on the supplier performance. The client was able to tailor their solutions to meet the business requirements. Moreover, the perishable goods supplier was able to understand and effectively manage supply chain risk to ensure business continuity.
Fundamental questions answered in this supply chain risk analysis include:
SpendEdge’s supply chain risk management solution helped the perishable goods supplier understand the macro and micro-economic risks and the regulatory environment to improve their production capacity. Moreover, the solution also sought ways to realign their financial structure to allocate their resources in an effective manner.