As a company’s business drivers change, business processes, SCM technology investment and the overall approach to supply chain management must change and keep pace with the current market scenarios. Nowadays, demanding consumers are causing changes in how shippers and supply chain providers work together. In the past, consumers have had very little or no influence at all on the supply chain because they were oblivious of what it was. A consumer would order an item but could have no clue where it is made or who makes it or even when to expect the delivery. However, today’s consumers are though indirectly, but actively involved in the creation of the supply chain. Order Tracking: Consumers today are actively involved in each process of the supply chain activity. With the ability to track orders, consumers expect more from their suppliers. Order tracking allows the customer to gain insight into where their order is at any given point of time. From the time an order is placed until it is delivered, the customer wants to know everything. Answering the customer requires visibility across multiple processes and systems. Companies must pay more attention to their supply chain and quickly solve any shortcomings that could possibly delay the delivery time. Whether it’s for a manufacturer or distributor, order accuracy is positively impacted by order tracking. Customers are easily able to double-check orders as they move through the fulfillment process, in many cases allowing them to catch mistakes before orders are shipped or order alternative items when a desired item is out of stock or backordered. Sustainability: Consumer demand for more sustainable business practices can have significant supply chain implications. For instance, mobile phone purchasers may typically consider four key factors into consideration when buying a new phone: the desire to upgrade, the need to stay within a budget, the durability of the product and environmental sustainability. Consumers today are willing to pay more money for a product they consider to be more sustainably efficient. Supply Chain players should therefore focus more on making their supply chain environmentally sustainable to attract these group of customers. Companies that have a pro-environmental view need to be ready to take responsibility and to move towards sustainable business practices. Consumers’ interest towards recycling and sustainable solutions has increased. They appreciate the idea of recycling waste to produce something new; circular products have become “the new normal”. Consumers are asking for more visible and concrete information about how the products that they are using has affected the environment. Increasing Customer Satisfaction: Understanding consumer trends and order histories serve as a sort of blueprint when companies need to make decisions about how to boost sales. Instead of guessing, one can make informed planning based on actual data and trends. That includes keeping accurate inventory, even during the busiest periods. Maintaining stocked shelves so as not to miss out on sales opportunities. Distributors and suppliers must innovate and optimize every step of the shipping process to meet consumer expectations. Understanding consumer trends and demands helps the networks to increase business efficiency and eliminate customer pain points by integrating new supply chain activities to ensure overall customer satisfaction. Evolving Customer Channels: The ongoing shift away from traditional retail to direct-to-consumer(DTC) shipping is rapid. 40% of brands now sell directly to the consumer. The DTC sales are projected to reach around $130 billion by 2025. Supply chain players should therefore focus on reorganization of the supply chains. They should emphasize on providing a Unified Brand Experience i.e., creating a DTC model that gives full control of the brand and develop direct engagement with customers to gain real time feedback and optimize supply chain accordingly. Selling DTC allows you to collect first-hand data and own it to focus on improving customer experience. A global sports accessories brand is focusing on its DTC channel and aims to reach $16 billion through the DTC channel by 2020 (a whopping rise of more than 140 percent from 2015). By choosing the right systems, approaches, and partners within the supply chain, companies are providing the customers with great service, transparency, and visibility they desire. Having an efficient supply chain means one can beat the competitors on price and improve profitability. Having high performing operations means one can meet or exceed the customers’ expectations on delivery of the product. The relationship between Customers and supply chain players have created a network to incorporate individual components of the supply chain into an interconnected web that enables seamless information transfer and support, thus providing opportunities to improve bottom lines and provide exceptional experiences to consumers. At Radhakrishna Foodland, we strive to provide accurate demand planning, forecasting and inventory solutions by analyzing historic demand, historic sales and trends in consumption pattern to help reduce the pressure to match stock to anticipated sales as accurately as possible and inculcate greater transparency in all supply chain operations. Our Order and process management solutions assure seamless integration of order receipts to cash receipts to consumer feedback and ensure standardization of processes across all domains. We strive to warrant safety and authenticity of data to provide real-time traceability throughout the supply chain. This helps businesses to focus more on increasing their profitability and enables them to optimize their overall customer satisfaction. Sources:
Many organizations begin with small-scale warehousing and transportation activities and naturally handle their own supply chain. However, there comes a time when partnering with an outsourced supply chain provider makes sense. It could be a result of increased complexity, quick expansion in revenue, planning for future growth, or the introduction of additional distribution channels. Working with a 3PL expert can increase performance and help respond to market changes. In terms of efficiency the partnership provides, the benefits include lower costs, reduced inventory, shorter lead times, and greater resource utilization Longer-term efficacy improves customer service, market share, and revenue. Capital investment is frequently considered to be a barrier in developing an internal supply chain and its infrastructure. Perhaps it is more prudent to manage a greater portion of this function as a variable cost. According to a Deloitte survey, 79% of organizations with efficient supply chains outperform their competitors. Businesses with optimal supply chains also have 3x faster cash-to-cash cycles and 15% cheaper supply chain costs while storing 50% less inventory than those with sub-optimal supply chains. Supplementing the statistics here are a few key benefits that food brands can reap by outsourcing their supply chain to experts. Defined Processes Supply chain outsourcing organizations provide a variety of solutions for food brands to efficiently service their end customer. This includes inventory management and operational optimization of the entire supply chain. Supply chain experts can manage stock, invoices, deliveries, and refunds through well-defined processes. Organizations handling supply chain outsourcing are experts at measuring performance, determining which areas to prioritize and how to implement improvements most effectively while planning to grow the business. Clear controls will increase operational efficiency and help businesses prevent unanticipated expenses. Strategic Alliances A supply chain partner’s network is a crucial resource for moving finished products. Finding the right equipment, insurance, and other credentials might be difficult. However, supply chain partners filter their network to ensure only qualified service providers are included. They can also use their relationships to achieve total cost reduction and improve service. A 3PL provider’s network of partners enables businesses to expand their geographical presence by being able to manage inventory in a potential market without having to invest in vehicles, equipment, or staff. Along with a well-outlined route to market strategy investing in the services of a supply chain provider can save both time and money. Focus on core business activities With an outsourced supply chain taking care of the end-to-end fulfillment, businesses can concentrate on their core competencies to innovate, produce new ideas, products, and business offerings. Outsourcing the SCM to a reputable partner with extensive knowledge and experience can result in significant time and resource savings. This would make food brands more productive and assist their long-term success. Consequently, processes like marketing, customer relationships, and support are enhanced. As the business scales across the country, supply chain outsourcing experts can offer insight into how to expand their fulfilment strategy and optimize inventory, whether it can be executed through the addition of new fulfilment centres, or the expansion into new markets and sales channels. Advantage of knowledge and expertise It is difficult to predict and accommodate internal expertise in all the capacities and geographies required in today’s complex market environment. A 3PL partner will have expertise and experience in a variety of areas, including transportation and its paperwork, sourcing, compliances, and economic rules, to name a few. The supply chain expertise and know-how that a partner can provide to a business wanting to grow across the country can reduce costly delays, shorten the cycle time, and smooth the introduction into a new territory. Access to state-of-the-art infrastructure A significant benefit of partnering with a firm providing supply chain outsourcing is the ability to leverage its existing infrastructure. A 3PL provider will have a broad network of interconnected routes that enables them to maximize efficiency when transporting various clients’ things around the country. Additionally, they will have access to warehouses and distribution centers in strategic locations to facilitate fulfilment and delivery. When a supply chain provider is hired, they can harness this network to determine the most cost-effective methods of transporting your products or materials around the supply chain. If any obstacles or issues develop, they already have a good grasp on alternate routes and solutions that will meet the complex needs of a food brand. Meanwhile, without pre-existing infrastructure, the in-house supply chain would have to address these difficulties on the fly. Enable futuristic technology According to the 2018 Annual Third-Party Logistics (3PL) Study, businesses desire increased analysis to enable them to make more informed supply chain decisions. A technologically driven outsourced partner delivers expanded visibility, offering users more insight into relative data that impacts their operations. Businesses are able to aggregate data and improve their organization’s decision-making process. Futuristic technology like artificial intelligence, machine learning, and automation play a large role in increasing the processing and output capacities of the workforce along the supply chain. Regardless of the scale or industry, integrating automation into supply chain management can be extremely advantageous for operations such as order tracking, data analysis, transportation, and warehouse management. Automation enables businesses to make more informed decisions by lowering costs and eliminating errors along the value chain. Organizations can better allocate critical products and supplies while saving money, time, and resources with a technology-enabled supply chain. With numerous benefits associated with outsourcing to a 3PL provider, including cost savings, increased flexibility, access to a robust supply chain, and ultimately more time and energy to focus on business, it is a strategic investment food brands should consider if they intend to scale their business across the country.
The demand-driven supply chain, or demand-driven supply network, is a combination of technology and processes that detect and respond to real-time demand across a network of consumers, suppliers, and employees. This has been significantly enabled by the increased use of new technologies brought about by the Internet of Things (IoT). While traditional supply chain inventories and services are provided based on forecasted demand and historical sales patterns; in a demand-driven supply chain, the companies that comprise the supply chain collaborate to shape market demand by sharing and collaborating information, thereby avoiding time lags in information flow and avoiding the bullwhip effect across the supply chain. A demand-driven supply chain is one that is focused on the demand generated by consumer data and feeds this data to the supply base, hence increasing inventory availability through a demand-pull strategy. The DDSC planning process is driven by customer needs. It implements a tactic known as ‘demand-pull.’ This helps the market to work more effectively with other supply chain players by sharing new information. Below are five key anchors to a demand-driven supply chain: Anchor 1: Evolving Consumer Demand in India Today’s customer environment is more dynamic than ever before. Technology innovations driving substantial shifts in customer behavior challenge organizations across the food service industry. The supply chain of yesterday was linear, sequential, and static. It is now dynamic, multi-directional, and evolving. To achieve their goals, supply chain leaders must make decisions quickly enough to keep up with the market. In this continuously changing market, planning teams need to refocus their efforts on the unique demands of individual customers. Food trends are influencing traditional Indian cuisines. To appeal to health-conscious consumers, food manufacturers have altered their menus to include healthful options. Some restaurants now serve nutritious meals, plant-based meat, and organic food. Internet and smartphone usage will raise the demand for specialized foods. Web-based ordering and the usage of AI and IoT in order are altering the market. These advancements have revolutionized home delivery by bringing food to the consumer’s door faster. According to Research and Markets, the Indian online food delivery industry is expected to reach US$ 21.41 billion by 2026, up from US$ 4.66 billion in 2020. This changing landscape, along with forthcoming trends and India’s growth trajectory, is propelling the foodservices business forward. This growth rate is projected to continue, driven by consumers and foodservices businesses. By being able to quickly identify shifting consumer sentiments and how demand might respond, food brands can increase profitability, lead time, and margins. So, in this continuously changing industry, professionals can refocus their efforts on the unique demands of individual customers in order to scale across the country. Anchor 2: Decision-Driven Integrated Planning To compete in a rising market and maintain business processes, companies must connect their supply chain planning in an integrated manner from start to finish. Traditionally, organizations have relied solely on past data, limiting their ability to adapt to future disturbances. Finally, food manufacturers can manage their supply chains holistically, with real-time insight across the network. Integrated planning enables a dynamic, collaborative S&OP process to sense and drive demand. By utilizing the rolling forecasts feature within the value chain, food brands can predict demand two months in advance and can accordingly prepare and plan for it. Anticipating consumer desires, when they desire it, and where they desire it can be difficult for many firms. Gaining end-to-end visibility across the supply chain enables food brands to detect customer demand signals. To aid demand planners in planning more quickly, accurately, and precisely, predictive planning based on statistical functions might be beneficial. This is accomplished by analyzing historical data and forecasting future demand, providing the planner with a variety of statistical methodologies from which to pick. Anchor 3: Supplier Relationship Management More complex supply chains necessitate precise, measurable techniques to evaluate each provider. Supplier Relationship Management (SRM) helps determine how suppliers contribute to or detract from a company. SRM aims to increase efficiencies and value for all stakeholders. It identifies essential suppliers and lays the groundwork for buyer-supplier engagement. Finding suppliers who share the same goals as food brands might result in improved overall efficiency. Suppliers will better grasp business requirements with open and effective communication. This knowledge helps avoid supply chain delays and makes debugging difficulties easier. SRM aims to increase a company’s value and profitability. SRM can improve supply chain performance, reduce wholesale prices, and increase efficiencies. It can also assist reduce risk, improving administrative and onboarding efficiency. To compete in the marketplace, the entire supply chain operations process needs to focus on improvements that needs be measured by key performance indicators like SIFOT. Supplier in full and on time – SIFOT is fundamental in running a supply chain effectively. It allows food brands to gauge the performance of a supplier by understanding what percentage of their supplier deliveries are being delivered in full. Anchor 4: Enhanced Supply Chain Execution Supply chain execution is the daily implementation of the supply chain plan. It comprises managing inventory levels, taking orders, planning and executing work orders, picking and packing orders, and scheduling shipments. Execution may also include revising the strategy to address changing demand or a supply chain challenges. Efficient supply chain execution ensures order fulfilment and increases customer satisfaction. It also helps businesses gain a competitive advantage by attracting new customers and increasing revenue. Complexity increases when it comes to food brands and their challenges. A production strategy is developed in conjunction with supply chain execution but supply chain professionals must act quickly. To pull it off in a timely manner for order fulfilment, companies need to employ technology like warehouse management, transportation management, planning and forecasting, supplier management, order management, and more to help them make better decisions. Anchor 5: Supply Chain Visibility Supply and demand changes require companies to obtain visibility into this complicated network of customers, suppliers, and logistics providers. Enhanced supply chain visibility is critical in a demand-driven supply chain. Companies require visibility from the supplier dock to the customer door to know what is going on and...
One of the fastest-growing sectors in India and the world is the QSR sector. In the years 2021-2025, the Indian market for Quick Service Restaurants (QSR) is expected to develop at a CAGR of over 18%, according to a report by Research and Markets. Multiple causes, including urbanisation, food delivery service expansion, the rise of working professionals and millennials alike, and an increase in disposable income, are fuelling a boom in the fast-food industry. As a result, this is the most competitive restaurant-style due to the large a number of new entries and aspirations. The QSRs also face a variety of issues in their business. External factors like food inflation and agriculture reliance on the monsoon affect the business. Demonetisation also had a negative impact on the firm, resulting in lower revenues. The Indian market is very fragmented. Several local firms compete with larger international firms. This reduces system standardisation and increases dietary variability. So, the buyer demands more choice everywhere. The businesses sell the same cuisine at varying prices. This reduces client loyalty. Then there are internal business concerns like supply chain, logistics, and warehousing. Training of manpower is vital; it is a major concern due to the high attrition rate in this industry. Inefficient employees produce system inefficiencies. If the company is well-known, then this sector requires greater attention. The supply chain is critical to a QSR’s success. A better supply chain means more value for the company. But the QSR supply chain in India is highly fragmented which means there are many middlemen involved leading to wastage of resources. The supply chain is becoming increasingly important in today’s competitive QSR industry. To compete effectively, QSR brands try to establish formidable supply chains. Traceability Nowadays, many consumers demand traceability, wondering exactly where all products and ingredients come from. Having trustworthy data on food goods throughout the supply chain is crucial now more than ever. Every step of the food supply chain should be tracked and communicated to ensure quality, product integrity, brand integrity, and consumer loyalty. Lack of transparency and traceability in the supply chain can expose it to undue risk given the fact India witnesses nearly 5-15 % (About USD13 Bn in value) wastage in fruits and vegetables annually. It can harm a QSR brand’s reputation, resulting in lower sales and profits. It can also cause legal issues that delay product launches. Traditional monitoring mechanisms and human inspections are often to blame for food supply chain traceability. A communication breakdown occurs owing to errors and omissions. In the event of contamination, traceability may allow for targeted recalls. Transparency, traceability, and trust in the food industry have long proven difficult. The supply chain data can give producers, suppliers, distributors, retailers, and consumers with trustworthy product and ingredient origin information. Inventory visibility is improved and stock-outs are avoided, which is critical when giving limited-time promotions. Managers can take action if a QSR store uses too much of a limited ingredient. It also helps with internal shrink and inventory loss statistics. Temperature-Controlled Supply Chain Fresh, frozen food is becoming an essential menu item for many QSRs. Temperature changes can affect the shelf life, flavour, and sensory experience of refrigerated foods. With a well-constructed temperature-controlled supply chain, QSR businesses may improve their ability to maintain product quality and reduce losses. Through real-time monitoring and historical analytics of the cold supply chain, including crucial environmental factors for products, a temperature-controlled supply chain assists QSR companies in reducing spoiling costs. A well-maintained cold chain leads to enhanced product quality, safer delivery, and predictive maintenance. Having a well-designed temperature-controlled supply chain enables the QSR industry to quickly identify and address temperature and humidity issues in the cold chain—before they escalate into larger problems. By partnering with a third-party supply chain specialist who specializes in cold chain management, QSR brands can monitor and manage the cold supply chain more effectively in real-time, distribute products more safely and efficiently, improve delivery quality while decreasing costs, and increase customer satisfaction. Data-driven Forecasting With technological improvements enhancing the supply chain, QSRs can invest in solutions that bolster supply chain activities such as demand forecasting. A data-driven forecast generates demand predictions based on historical data, economic trends, and market analysis, allowing for more efficient inventory planning and the avoidance of losses. A data-driven demand estimate might mean the difference between profit and loss for a quick-service restaurant brand. Accurate forecasting that takes events, promotions, and other sales-related aspects into consideration is critical to avoiding losses, especially for QSRs that operate on razor-thin margins. With precise projections, operators at a quick-service restaurant (QSR) can generate data-driven predictive orders, which are critical for inventory management. An accurate forecasting system reduces capital retained on a restaurant shelf, improves bargaining positions with suppliers, allows for space reduction or reallocation inside a restaurant, and reduces waste. Supply chain professionals with excellent technological skills can help QSRs by predicting labour, ordering, and production needs. This estimate is based on POS transaction data and a complex algorithm that considers seasonality, events, promotions, and other factors. With new technologies, operators can adjust projections to account for both positive and negative consequences, such as increased sales activity due to neighbouring sports events, boosting forecast accuracy. Inventory Management Technological advances in inventory management systems provide better food tracking. With efficient inventory management, QSR businesses may improve food safety and reduce health hazards. Accelerate the placing of food products on shelves, ensuring that they are still fresh for customers, and optimise transit and packing methods to save money. Inventory management systems can also connect to the QSR supply chain for real-time product information. In the event of a problem, they may track specific shipments. A large amount of data is being shared, which can shed light on safety, delivery, and overstock concerns. Finding the correct inventory management technology can also assist QSR brands in more successfully balancing their supply. If they have a surplus of inventory, they run the danger of it going bad and being thrown away. However, if...
Supply chain sustainability has been building up steam in recent years, as consumers are becoming more environmentally conscious and are expecting businesses to do the same. A growing number of companies are looking to build sustainability into their supply chain operations as it has direct impact on the environment as they try to compete with a growing consumer base. It is widely established that sustainable business can equate to profitable business. So, how can a sustainable supply chain benefit your business? Reputation Ensuring that companies focus on the planet along with their profits makes good business sense and enhances their reputation as a sustainable company. Profitability Thinking sustainably will help drive down costs and reduce expenditure in the long run, which will further help towards increasing the profitability of the firm. Innovation Establishing a sustainable supply chain enables companies to work with partners who provide environmental friendly products and services that foster innovation. There is no quick and easy path to sustainability, but the right solutions can help achieve a defined sustainable supply chain. Companies tend to account for waste and activity at every stage as part of their overhead. Therefore, having a comprehensive understanding of how sustainability impacts every unit of business including the supply chain is essential. An early step is to evaluate inventory suppliers, identify the most significant environmental and social challenges and then to prioritize efforts. Establishing and communicating expectations through a code of conduct is a critical step in involving every unit in the sustainability efforts. Simplifying procedures and eliminating wasteful practices contributes substantially in improving supply chain efficiency and reducing waste. It is important to focus on small, iterative improvements along with major changes to bring simplicity in the processes. Every change that reduces waste, speeds up delivery or enhances quality makes an incremental improvement to sustainability. Misalignment between supply and demand results in too much or too little production of raw materials, manufacturing of goods and distribution of products. This creates rework and excessive inventory which is a massive source of waste. Lead times are one of the greatest areas of waste within a company that should be controlled through process improvement. Good predictive analytics combined with machine learning can forecast likely demand and ensure more efficient supply and manufacturing processes. The warehouse is an important component of efficient sustainable supply chains. When it comes to creating sustainable value, there are several practices that warehouses can implement such as automating both warehouse solutions and management processes, increasing energy efficiency within a warehouse, and optimizing warehouse design. Some practices like smartly located inventory which can bolster efficiency and productivity or use of electric forklifts which eliminate the need for gas and oil in warehouse operations can revolutionize the way how companies adopt green approach to procurement and warehouse management. Route optimization as well as using renewable fuels considerably helps to reduce the environmental impact of transportation and distribution. Artificial intelligence can work with GPS devices to optimize shipping routes. Advanced analytics can even help update routes in real time, to take account of congestion and other issues. Through our expertise, we, at Radhakrishna Foodland have helped a leading QSR chain to tackle the problem of disposing off used cooking oil by converting it into biodiesel and used it in vehicles for transportation to stores. This helped the QSR chain to reduce misuse of used cooking oil as well as air pollution during transportation. The environment friendly solution added credibility to the brand and enhanced its brand image.
India is now the world’s third-largest startup environment, after the US and China, and development shows no signs of slowing. According to ResearchAndMarkets, the Indian foodtech sector will develop at a CAGR of 39% from 2021 to 2025, reaching INR 1,868.19 Bn. Growing consumer demand for an intriguing new food product necessitates increased production volume. Adding people and equipment to the operations and supply chain can help meet the rising demand. While sales volume increases, supply chain costs increase proportionately. A supply chain architecture that requires constant resource expansion to keep up with sales growth is unsustainable in nature. A scalable supply chain’s objective is to grow capacity while maintaining or improving efficiency, hence lowering supply chain costs per unit. We have outlined a few ideas for young food brands to build a scalable supply chain. We know from our extensive industry experience that not every entrepreneur wants to grow their business beyond a certain size or reach initially. Supply chain consolidation requires short-term sacrifices to scale the organization. If growth is a priority for the organization, it must commit to scaling, establish a reasonable growth objective, and develop a strategy and action plan to accomplish it. Standardize and automate processes While a startup must be agile and innovative, consistent processes help it scale. Standardized processes facilitate automation. Hands-on approaches and manual processes are difficult to scale without extra manpower and infrastructural resources. Standardization is the foundation of a robust supply chain management. Standardization specifies the manner in which a task or group of tasks should be completed. Every task needs scope, quality, and technique standards. For a competitive advantage, these rules can recognize and capture supply chain data using the appropriate tools or technology. With standardization, a part or process may be developed and measured more efficiently, resulting in a more sustainable supply chain that benefits all entrepreneurs. It saves time and money by keeping everyone on the same page. Automating back-office and operational procedures inside the supply chain is critical to cutting costs, speeding up time-to-market, and fostering innovation. A more technology approach will improve supply chain management, safety, and efficiency. Automating the back office reduces human error and streamlines processes. Modernizing the back office and automating will help reduce stress on people and processes. Outsourcing Given the necessity of these procedures, most companies concentrate on product development, fundraising, marketing, and sales. The lack of in-house logistics professionals creates a vacuum and a risk for startups. 74% of logistics leaders anticipate boosting logistics outsourcing spending in the next two years, according to Gartner Inc. A supply chain specialist may assist in filling that gap and acting as an extension of their team, providing the organization with a competitive edge. Outsourcing fulfilment to a 3PL saves initial capital. A startup usually manages fulfilment first to learn about the process and how to optimize it. From the start, a business must be hands-on, from packaging to returns. As the business expands and orders increase, outsourcing fulfilment may be more cost-effective and time-efficient. A supply chain specialist can help startups save money on warehouse space and personnel, source raw materials, move processed foods while maintaining product integrity, and most significantly, can guide startups with their expertise in the Domain. Expansion All food startups want to grow their business in a way that is sustainable. A Supply Chain Specialist can help a food startup scale by allowing for business and operational flexibility. Their fulfillment centers allow food entrepreneurs to expand without having to manage and operate their own facilities. A supply chain specialist’s national fulfilment network can also be leveraged to deliver orders as food startups develop new products and versions. A well-defined network allows start-ups to reach remote and potential markets faster. In addition to finding new sales channels, and an established Supply Chain Specialist may help organizations reach a larger consumer base. They can also help a food business better deal with seasonal demand while continually ensuring that the brand’s final product is transported to market in a temperature-controlled environment. A supply chain professional is better positioned to address any issues that arise during the transportation of the finished product. Collaborative Approach At the start of a food brand’s growth journey, often they struggle with their volumes due to variations in demand, which can be a cause of concern for them. Transporting low volumes of finished goods through a dedicated carrier can be expensive for a startup. Hence, it is advised for startups to opt for a more collaborative approach, where they can share their resources through supply chain specialists enabling them to transport variable volumes of products to different markets according to their demand. A collaborative approach will also give the food startups information about how a specific market is reacting to a product produced by another food brand, helping them string a better strategy for that specific market. A collaborative approach can save organizations 5-10% on costs and increase revenue by 7-10%, according to a report by McKinsey’s. Collaboration helps food brands to harness the collective intelligence of numerous stakeholders in order to plan and meet consumer demands. This primarily entails the sharing of real-time demand information among supply chain partners. Supply Chain as a Service (SCaaS) Investing in the Supply chain as a service module benefits startups by providing them with technology-driven, end-to-end supply chain management solutions. The SCaaS module is expected to grow at a 7.5% CAGR from 2018 to 2025, led by the expansion of mobile devices and internet penetration in emerging markets. This highly adaptable supply chain approach leverages a SCaaS provider’s experience and skills to assume responsibilities for production management, manufacturing, warehousing, inventory tracking, order fulfilment, and transportation. Finally, SCaaS provides the infrastructure and technology necessary to reduce the total value chain costs by offering customizable fulfilment solutions and adopting technology and automation to increase speed, visibility, and accuracy throughout a whole supply chain network. Around half of startups fail during the first five years of business, according to some estimates. There are numerous reasons for a startup to fail, but the majority of the time it boils down to...
Cold chain logistics companies provide distribution and storage services for products that are temperature sensitive. At present, India is the largest producer of milk in the world and is second when it comes to growing fruits and vegetables. India also produces marine, meat and poultry products. The Indian cold chain industry was valued at INR 1425.49 billion in 2020. It is expected that this market will grow at a CAGR rate of 14.6% during the 2021-2026 period.
There has been a radical shift in the way the Fast Moving Consumer Goods (FMCG), Quick Serve Restaurants (QSR), and the Food and Beverages (F&B) industries operate to meet the growing needs of today’s consumers. B2B food trends like the growth of QSRs, the need for centralized kitchens for large enterprises, and increasing demand for cold chains are high capital-intensive markets that open up new investment opportunities.