IUP Publications Online
Home About IUP Magazines Journals Books Archives
     
A Guided Tour | Recommend | Links | Subscriber Services | Feedback | Subscribe Online
 
The IUP Journal of Supply Chain Management :
Supply Chain: A Differentiator in Marketing Fresh Produce
:
:
:
:
:
:
:
:
:
 
 
 
 
 
 
 

Supply Chain Management (SCM) not only helps in cutting costs, but also adds to maintain and improve the quality of fruits and vegetables (F&V) marketed. In marketing F&V, which are perishable in nature, Supply Chain (SC) plays a crucial role. The very nature of land holding by the farmers, varied climatic conditions, production spread over wide geographical area, mainly in remote villages, diversified consumption patterns and poor SC infrastructure makes SCM for F&V more complicated. In India, SCM is at its nascent stage in marketing of F&V. Marketing of F&V is challenging because of the perishabality, seasonality and bulkiness and consumption habits of the Indian consumers. In addition to this, poor SC infrastructure, poor private equity in SC and conventional small-scale unorganized retailers, make state-of-the-art SC challenging in the present scenario. The Indian retail market is mainly dominated by unorganized retailers. The unorganized retailers are not a homogeneous group. Recent development in retailing is the entry of large number of organized retailers. Current SC catering mainly to the unorganized retailers is riddled with number of drawbacks. As per the survey conducted for this study, important drawbacks of the current SC are number of intermediaries, high level of wastage, quality degradation, poor infrastructural facilities and high cost. Fresh produce market has immense influence on the socioeconomic and even political conditions. Close to 30% of the F&V grown is going waste. All the stakeholders have to join hands to improve SC mechanism to take produce from the farmers to the consumers. This would facilitate the consumers to get quality produce at economical rates. The middlemen and all the stakeholders in the SC benefit from the improved SC infrastructure. Government and private operators have to join hands to improve the physical infrastructure, information sharing, and the service required for quality improvement of the SC.

 
 
 

Supply Chain Management (SCM) plays an important role in marketing of goods and services. "It is the supply chains that compete, and not individual businesses"—is an accepted axiom. Every business plans to cut costs, which do not add value to goods or services. SCM not only helps to cut costs, but also adds to maintain and improve the quality of goods and services delivered. In this direction, Supply Chain (SC) has played a major role across the world in varied sectors. In marketing fruits and vegetables (F&V), which are perishable in nature, SC plays a crucial role. The very nature of land holding by the farmers, varied climatic conditions, production spread over wide geographical area, mainly in remote villages, diversified consumption patterns and poor SC infrastructure makes SCM for F&V more complicated, in India. As a result, SCM throws both challenges and opportunities in marketing of F&V. Efficient SCM in marketing, not only increases the profitability and efficiency of retailers, but also adds value to different stakeholders like cultivators (farmers), consolidators and consumers.

F&V play a vital role in human diet as fresh food sources of calories, vitamins, dietary fiber and special nutrients. India's vast geographical area coupled with varied climatic conditions facilitates to grow a variety of F&V. If concerted effort is made by all the stakeholders, there is every possibility that India emerges as the leading horticultural crops producing, processing, exporting and consuming country in the world.

 
 
 

Supply Chain Management Journal, Indian Retail Market, Marketing Fruits and Vegetables, World Health Organization, WHO, Horticultural Products, Marketing Chain, Economic Development, Marketing Strategies, Domestic Market, Foreign Direct Investment, Consumption Patterns, Joint Inventory Management, Government Interventions, Information and Communication Technology, Mobile Communications.