Procurement and Supply Chain
Growers with a firm grasp of leading-edge procurement and supply chain practices can leverage significant savings in costs and time.
The Procurement Cycle is generally known as a six-part process, involving:
- Strategic planning: ensuring the purchasing decision benefits your business in the long-term rather than only serving your immediate needs.
- Needs identification: analysing exactly what is required in order to source the right product or service at the right time.
- Tendering/Sourcing: Analysing the market to shortlist the best suppliers, or inviting suppliers to bid for your business.
- Evaluation and selection: Choosing the right supplier and evaluating benefits beyond the lowest price.
- Negotiation and award: Negotiating and agreeing upon contract terms.
- Contract management: Setting up KPIs and milestones to ensure the supplier delivers to contract.
Procurement can bring value to your organisation through:
- Discovering and working with new suppliers
- Analysing your spend to understand costs such as over-ordering and duplication
- creating better contracts
- Increasing your negotiating and purchasing power
- Driving innovation in the supplier base
- Gaining other benefits beyond getting the lowest price, such as environmental benefits
Supply chain optimisation means thinking beyond the farm gate because growers are ultimately assessed on what the end-customer is willing to pay.
Growers therefore need to assist other parties by sharing information that will optimise scheduling and maintain fruit quality all along the supply chain. This may involve:
- Providing crop forecasting to packing houses to assist with labour scheduling
- Using crop forecasting to order the right number of boxes
- Helping purchasers (such as supermarkets) plan for customer demand
- Reviewing transit arrangements to ensure your product reaches the end-customer in an optimal state
- Using sophisticated tracking (IoT devices) to identify the good and bad players in your supply chain
- Providing end-customers with data about the provenance of the product.
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