PLEASANTON, CA - With demand for local, organic, and sustainable options in fresh produce splintering the traditional supply chain, more comprehensive solutions are becoming necessary for its management. That’s why I sat with Ray Connelly, VP of Business Development at iTradeNetwork, to discuss the viability of fresh in today's diverse market, and the whitepaper the company just released in response to the industry call for answers.
“Managing perishable food across a fragmented supply chain network requires the right processes, the right partners and the right technology. Taken holistically the risks of fresh food can be marginalized, ensuring profitable transactions for each network participant, and ultimately improving each consumer’s experience,” Connelly expanded.
As it stands, the fresh food supply chain suffers from communication gaps which can result in too much product or too little inventory on store shelves. The consequences of these communication gaps are serious, leading to customer dissatisfaction, shrink due to waste, and out-of-stocks which undermine profitability. Additionally, the industry is suffering from a loss of tribal knowledge which makes communication more important. This issue stems from loss of industry experts in the form of retiring baby boomers, along with a lack of experienced workers to fill those shoes. Spanning the gap, and connecting produce buyers to the source are great ways to address this issue.
Fresh perimeter aisles are the key to retail differentiation, and meeting consumer expectations in “fresh” is crucial for success. But, delivering "fresh" can present a major challenge, with a product that starts to turn the instant it is harvested. The window of opportunity is short with no room for error in communication, according to iTradeNetwork. This is why Food Lifecycle Management, spanning key stakeholders, is critical for the category.
According to the whitepaper, building a business ecosystem which allows access to analytics, early visibility to data, and maintains good data hygiene is the foundation for a successful Food Lifecycle Management framework. A proper framework will embody the following seven core components:
- Food Centric Network
- Responsive Supply Chain
- Connected Quality
- Improved Fresh Experience
- Food Safety Compliance
- Sustainable Sourcing
- Cross Network Insights
Proper Food Lifecycle Management assists retailers in sustaining value through high quality to win consumer business, while also eliminating food waste and decreasing shrink. With one-third of food wasted globally, that equates to 1.6 billion tons of produce annually, improving transparency through communication along the supply chain is imperative to effective category management.
For further information on the core components of Food Lifecycle Management framework and more information on this topic, download the iTradeNetwork whitepaper here.
