How The Supply Chain Can Solve The World’s Food Problem
- September 30th, 2013
- By: Navdeep Sidhu
Global food shortage is a big concern. On one hand countries with large populations struggle to keep the cost of basic food items in control, on the other hand lack of storage and poor supply-chain infrastructure leads to up to 50% loss during storage and transit.
So, in reality we do not have a production problem. If we solve the storage, transportation and logistics problem then we have enough to sustain the population growth for the next few decades.
Food shortages in developing countries can be a serious problem. From grain storage issues in Brazil to Onion crisis in India, the problem exists more or less in every country but flares up every once in a while. How can Supply Chain fix that?
First, lets start comparing our Agricultural output to Industrial output. Every industry accounts for waste - defective parts, returns, DOAs etc. Can you think of a single industry which accounts for 50% waste? There is none and the reason is that Industrial output is handled much more efficiently powered by a sophisticated supply chain.
By integrating producers, warehouse providers, logistics and other entities in the chain, this problem can be solved. Lack of automation and information exchange in real-time does not connect buyers and sellers in a timely manner. It leads to increased lead time in every step of the process and causes food to rot.
Connecting every entity electronically to manage this complex B2B process is the only way to reduce the enormous waste and provide sustainable food for generations to come.