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When should you begin planning for food supply chain management and logistics?

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Food supply chain management and logistics are crucial aspects of agribusiness that affect the quality, safety, and profitability of your products. However, planning for them can be challenging, especially in a dynamic and uncertain market. In this article, you will learn when and how to start planning for food supply chain management and logistics, and what factors to consider along the way.

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ocheng Richard benson

Integrity is key in all your work
May Ahmed AlSuwaigh

Excellence Manager | Quality Improvement Expert | Strategy and Business Developer| Change Management| Policymakers &…
Daryl Biggart

1 Identify your goals

The first step in planning for food supply chain management and logistics is to identify your goals and objectives. What are you trying to achieve with your products? Who are your target customers and markets? How do you want to position yourself in the industry? How do you measure your performance and success? These questions will help you define your vision and mission, and guide your decisions throughout the planning process.

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ocheng Richard benson

Integrity is key in all your work
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You should begin planning for food supply chain and logistics as early as possible, ideally months in advance. this early planning is crucial because: Lead Times: Procuring food items often involves long lead times, especially for perishable goods or items sourced from distant locations. Coordination: Coordinating with suppliers, distributors, and transportation partners requires time to negotiate contracts, establish relationships, and ensure alignment of schedules and expectations. Risk Management: Early planning allows you to identify potential risks and develop strategies to mitigate them. This includes factors such as weather disruptions, supply chain disruptions, or regulatory changes.

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May Ahmed AlSuwaigh

Excellence Manager | Quality Improvement Expert | Strategy and Business Developer| Change Management| Policymakers & Regulation Developer
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In my experience, I believe that planning the food supply chain management ahead of it is important for certain reasons, such as (Accurate demand forecasting, managing your inventory level efficiently, effective supplier coordination, optimizing transpiration logistics, identifying and mitigating risk in the food supply chain, as well as ensuring that food safety and quality standards are met throughout the supply chain).

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Daryl Biggart
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The first question that should be asked is how perishable is the product? Milk with a life span of weeks or Potatoes with a life span of a year - planning is key here without knowing your product how do you plan transport or logistics? You then must consider that the product maybe imported or exported - customs is a key requirement, does the product require inspection before loading or will it be carried out at port/ customs borders. Food transportation and logistics is one of the hardest to oversee due to the fragility of the product the slightest sudden change it weather can throw your plan a curve ball.

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Matheus Ohana (PcD)

Advogado | Analista Pleno de Contratos (Suprimentos) | Analista de Compras e Licita??es Master | Gest?o de Contratos | Gest?o de Terceiros | Strategic Sourcing | Procurement | Supply Chain Management | Lean Six Sigma
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Para come?ar é necessário enxergar o processo como um todo, inicialmente entendendo as expectativas que a Diretoria Executiva tem para os rumos da Empresa e as demandas dos clientes internos, identifica??o dos maiores demandantes e os principais Fornecedores. Nessa etapa inicial é importante estabelecer metas de curto, médio e longo prazo e solidificar a base de dados com categorias, centros de custos, códigos de itens com as unidades de medida. Após esse primeiro momento é importante a valoriza??o da cultura de Compras na Empresa e que as principais aquisi??es e contrata??es sejam realizadas somente pela equipe de Compras, é desejável um software para elabora??o e automa??o das ordens de Compra e recebimento das notas fiscais também.

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Vinicius Oliveira

Analista de Planejamento Logístico III na Solar Coca-Cola
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O primeiro ponto é alcan?ar ótimos resultados de indicadores por meio de um trabalho de excelência. Essa é uma meta primordial. Ser referência, garantindo um ótimo nível de servi?o com a ajuda de uma governan?a afiada de recursos e processos!

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2 Assess your resources

The next step is to assess your resources and capabilities. What are your strengths and weaknesses as an agribusiness? What are the opportunities and threats in your external environment? What are the legal, ethical, and social implications of your activities? How much capital, labor, land, equipment, and technology do you have or need? These questions will help you evaluate your current situation and identify your gaps and needs.

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Márcio Silva Oshiro

Gerente de Marketing na ICL Group | Agronegócio | MBA em Customer Experience
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A gest?o da cadeia de suprimentos de alimentos e logística no agronegócio deve ser planejada desde as fases iniciais do ciclo produtivo. O planejamento estratégico deve come?ar antes mesmo do plantio ou cria??o, considerando a demanda do mercado, os requisitos regulatórios e as condi??es climáticas. Avaliar os recursos disponíveis, como maquinário, infraestrutura e capital, é crucial para determinar a capacidade de atender às demandas logísticas. Iniciar o planejamento cedo permite antecipar desafios, otimizar processos e garantir eficiência ao longo de toda a cadeia. Além disso, permite ajustes conforme necessário, levando em considera??o as flutua??es sazonais e as condi??es do mercado.

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3 Design your processes

The third step is to design your processes and activities that will transform your inputs into outputs. How do you produce, process, package, store, transport, and distribute your products? What are the quality standards and safety regulations that you have to comply with? What are the best practices and innovations that you can adopt or adapt? How do you manage your inventory, orders, contracts, and payments? These questions will help you optimize your operations and efficiency.

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4 Analyze your costs

The fourth step is to analyze your costs and revenues that will determine your profitability. How much do you spend on your inputs, processes, and logistics? How much do you earn from your outputs, sales, and services? What are the fixed and variable costs that you have to cover? What are the margins and returns that you have to achieve? How do you price your products and compete in the market? These questions will help you budget your finances and maximize your income.

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5 Plan your contingencies

The fifth step is to plan your contingencies and strategies that will help you cope with uncertainties and risks. What are the potential problems and challenges that you may face in your food supply chain and logistics? How likely and how severe are they? How can you prevent, mitigate, or solve them? What are the alternative options and scenarios that you can consider? How can you monitor and evaluate your performance and outcomes? These questions will help you prepare for the unexpected and adapt to changes.

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6 Review your plan

The final step is to review your plan and make sure that it is realistic, feasible, and aligned with your goals. How well does your plan address your needs and expectations? How well does your plan fit your resources and capabilities? How well does your plan match your market and industry? How well does your plan balance your costs and revenues? How well does your plan account for your contingencies and strategies? These questions will help you refine your plan and improve your results.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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When should you begin planning for food supply chain management and logistics?

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1 Identify your goals

2 Assess your resources

3 Design your processes

4 Analyze your costs

5 Plan your contingencies

6 Review your plan

7 Here’s what else to consider

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