Food security depends on a network of actors and elements working together to produce and deliver healthy, sustainable, varied, safe and plentiful food supply to society. The interactions between these actors and elements must be designed, managed and optimized to satisfy demand. In this chapter we introduce Food Supply Chain Optimization and Demand, providing a framework to understand and improve food security from an operational and strategic point of view.
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Consumers expect product availability as well as product quality and safety in retail outlets. When designing or re-designing fruit and vegetables supply chain networks one has to take these demands into consideration next to traditional efficiency and responsiveness requirements. In food science literature, much attention has been paid to the development of Time-Temperature Indicators to monitor individually the temperature conditions of food products throughout distribution as well as quality decay models that are able to predict product quality based upon this information. This chapter discusses opportunities to improve the design and management of fruit and vegetables supply chain networks. If product quality in each step of the supply chain can be predicted in advance, good flows can be controlled in a pro-active manner and better chain designs can be established resulting in higher product availability, higher product quality, and less product losses in retail. This chapter works towards a preliminary diagnostic instrument, which can be used to assess supply chain networks on QCL (Quality Controlled Logistics). Findings of two exploratory case studies, one on the tomato chain and one on the mango chain, are presented to illustrate the value of this concept. Results show the opportunities and bottlenecks for quality controlled logistics depend on product—(e.g. variability in quality), process—(e.g. ability to use containers and sort on quality), network- (e.g. current level of cooperation), and market characteristics (e.g. higher prices for better products).
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Western-European consumers have become not only more demanding on product availability in retail outlets but also on other food attributes such as quality, integrity, and safety. When (re)designing food supply-chain networks, from a logistics point of view, one has to consider these demands next to traditional efficiency and responsiveness requirements. The concept ‘quality controlled logistics’ (QCL) hypothesizes that if product quality in each step of the supply chain can be predicted in advance, goods flows can be controlled in a pro-active manner and better chain designs can be established resulting in higher product availability, constant quality, and less product losses. The paper discusses opportunities of using real-time product quality information for improvement of the design and management of ‘AgriFood Supply Chain Networks’, and presents a preliminary diagnostic instrument for assessment of ‘critical quality’ and ‘logistics control’ points in the supply chain network. Results of a tomato-chain case illustrate the added value of the QCL concept for identifying improvement opportunities in the supply chain as to increase both product availability and quality. Future research aims for the further development of the diagnostic instrument and the quantification of costs and benefits of QCL scenarios.
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Food production has put enormous strain on the environment. Supply chain network design provides a means to frame this issue in terms of strategic decision making. It has matured from a field that addressed only operational and economic concerns to one that comprehensively considers the broader environmental and social issues that face industrial organizations of today. Adding the term “green” to supply chain activities seeks to incorporate environmentally conscious thinking in all processes in the supply chain. The methodology is based on the use of Life Cycle Assessment, Multi-objective Optimization via Genetic Algorithms and Multiple-criteria Decision Making tools (TOPSIS type). The approach is illustrated and validated through the development and analysis of an Orange Juice Supply Chain case study modelled as a three echelon GrSC composed of the supplier, manufacturing and market levels that in turn are decomposed into more detailed subcomponents. Methodologically, the work has shown the development of the modelling and optimization GrSCM framework is useful in the context of eco-labelled agro food supply chain and feasible in particular for the orange juice cluster. The proposed framework can help decision makers handle the complexity that characterizes agro food supply chain design decision and that is brought on by the multi-objective nature of the problem as well as by the multiple stakeholders, thus preventing to make the decision in a segmented empirical manner. Experimentally, under the assumptions used in the case study, the work highlights that by focusing only on the “organic” eco-label to improve the agricultural aspect, low to no improvement on overall supply chain environmental performance is reached in relative terms. In contrast, the environmental criteria resulting from a full lifecycle approach is a better option for future public and private policies to reach more sustainable agro food supply chains.
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Analyse the results from a representative selection of the supply chain studies for school feeding programmes in Kenya, Ghana and Mali, and make specific suggestions for interventions that can efficiently include SHF in the supply chains.
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The importance of water and energy accessibility and use has become more important as new insight into their role for sustainable development goals has become mainstream. The inclusion of water and energy in strategic decision-making is thus key. Supply chain network design (SCND) in the food industry is an interesting case study for the incorporation of water and energy utilization during the design process of global production systems. In the current green SCND research, frequently, single indicators are used such as carbon emissions to measure environmental impact. This paper presents a case study applied to an orange juice supply chain, formulated as a multi-objective optimization model. A single environmental impact indicator optimization approach is paired against one that includes water and energy use explicitly in the objective function set. Mixed conclusions are shown from the results pairing the two strategies side by side.
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This study proposes a systematic value chain approach to helping businesses identify and eliminate inefficiencies. The authors have developed a robust framework, which food-sector entrepreneurs can use to increase profitability of an existing business or to create new profitable opportunities. The value chain approach provides win-win opportunities for players within the value chain. To test the robustness of the framework, the authors use food waste as an example of a critical inefficiency and apply it to two different food sector business cases, each operating in diverse conditions. Because the suggested framework addresses the core elements and parameters for the existence and competitiveness of a business, the model can be adapted to other sectors.
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Short Food Supply Chains (SFSCs) are gaining attention for their potential economic, environmental, and social benefits. However, they remain hindered by their small scale and lack of efficiency. This study explores the digital readiness of SFSC suppliers and assesses the potential impact thereof on the SFSC’s ability to scale up and gain efficiency. Through an embedded case study design, the study findings highlight a lack of digital readiness of SFSC actors. Their focus on personal relationships and internal processes is found to be incongruent with digitalization as an enabler of SFSC performance.
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The Dutch food and agricultural market has been focusing on producing efficiently and effectively with the aim of cost minimization and profit maximizing. In addition to positive developments (higher efficiency and more effective production), this market system has created negative impact for nature, the environment and local economies. Collaboration is therefore necessary to set up local food supply chains that are sustainable economically, socially and environmentally.This research seeks optimization of business models in which trade and cooperation between food hubs and health care institutions, such as hospitals and residential care homes, thrive. This optimized business model can serve as a business model template and can contribute to strengthening the market position of local food hubs and affiliated farmers. Furthermore, hospitals can provide patients healthier, more regional and attractive diets. In order to develop and optimize the current business practices of food hubs the research aims to investigate business models and see if modifications of these business models would benefit current practices.
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Supply chains have inherent risk given the number of actors that interface. While there are some chains that have low frequencies of unfavorable events, many continuously face uncertainty. Food production has many uncertainties along the global supply chain. The global nature of the large logistical networks increases its complexity. Two main sources of uncertainty arise: External and internal to the SC. External factors mainly come from nature (such as "El Niño" phenomenon) and from human activities (such as food and nutrition policy and standards). Internal factors mainly come from operations such as a cold chain disruption. Thus, one needs to minimize risk and improve resilience in order to achieve food security and sustainability. It is then imperative that risk management practices be integrated into the supply chain design and management process. This chapter presents an overview of the main risks involved in global food supply chains, as well as some techniques for risk management.
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