With the summertime now in full swing, I’ve been enjoying a lot of fresh food. The strawberries that I ate this past weekend were some of the largest that I’ve seen, and wow, were they tasty?! And, the marinated chicken that I threw on the grill this week could not have been better.
And while I am sitting here snacking on yogurt between e-mails and phone calls, I started thinking how lucky we are to be able to enjoy fresh food and what a journey it takes for it to get from the farm to my mouth. Of course, it came through the supply chain, but how did it arrive in such great shape?
As it just so happens, Steve Simonson, a partner here at Tompkins Associates, recently wrote an intriguing article on Transforming Your Fresh Food Supply Chain. The article doesn’t tell me exactly where my food came from, but it does provide keen insight into the challenges that are weaved throughout the fresh food supply chain. Steve also offers up a transformation process that folks involved with fresh food supply chains can implement to make sure their products stay fresh and safe as they travel along the supply chain.
He notes challenges such as:
Seasonal supply and demand: Floods, droughts, wars, etc., can create supply issues.
Food sanitation: Sanitary practices start with the growers and move through the supply chain to the consumer.
Food security: Better traceable and effective product recall is needed. Issues on international supply from other countries / country of origin labeling are of high concern.
Perishability: Once in the distribution system, some foods have shorter shelf lives and require special packaging and handling, while others stay fresh longer with minimal intervention.
Product quality: Although fresh food goes through complex processes such as respiration before it reaches the final consumer, it is still expected to be in good condition.
Organic or natural trends: Although a higher degree of standardization around the terms "organic" and "natural" is needed, these products typically by their nature have shorter shelf lives and require more careful handling to arrive with quality intact.
Water resources: Severe water shortages in different areas of the country are significantly limiting sourcing options throughout the fresh chain -- potentially requiring different handling and transportation practices as regional options disappear.
Immigration Customs Enforcement (ICE): The new U.S. administration may have an effect on the labor force, which is mainly immigrant.
Pursuit of alternative energy sources: With items such as corn, which is used to make ethanol, this can be a major cost driver.
In the article, the five-step transformation process begins with determining and understanding changing consumer preferences. Secondly, the article says to assess current company decision rules, practices, and controls. Next, assess current industry situations, trends, and initiatives. Then, evaluate practices against industry leaders. And finally, determine initiatives, value, and implementation program.
As Steve points out, fresh food producers can achieve profitable growth and overcome the special challenges they face by having a more efficient supply chain.
And this is a win-win for all: the folks in the supply chain are happy…the consumer is happy…and most importantly, I am happy...which, reminds me, I need to add strawberries to the grocery list this week since mine have all seem to have disappeared!
Go!Go!Go!
Jim