Supply chain consulting companies all over industries have discovered that integrating digital and analytics technology to innovative business models and marketing strategies may generate significant value especially in the Agrifood Industry.
Leading agricultural firms to follow businesses’ footsteps in other sectors by creating digital twins of their physical supply chains, based on the massive amounts of data they are collecting and processing. Virtual replicas allow businesses to conduct simulations and optimizations, which can save large amounts of money on the cost of transporting crops through the system, as per the company.
What is a supply chain consultant?
Supply chain consulting is composed of multiple departments. Rather than being specialized in a single area, such as logistics, competent supply chain consultants ought to have hands-on expertise in various areas across the supply chain. Someone who comes from a purely logistical background may be unable to understand how a demand planner makes their choices since they have no prior experience as a product developer. A competent consultant should have expertise in more than one area of the supply chain since it is doubtful that they would know every aspect of the supply chain. A varied supply chain consulting experience leads them to consider several points of view, which is one of the most efficient methods of identifying optimum solutions quickly.
Throughout this post, we will explore why agricultural supply chains are so complex and how firms may utilize digital and analytics technology to improve their operations. A competitive edge in a challenging market may be gained by players who use digital twins and virtual reality simulations.
A complicated supply chain is involved.
Manufacturing and distribution supply chains are inherently complex, with many roles interacting with diverse, sometimes competing goals and numerous interconnections between data and information flow. The agricultural supply chain has been further complicated by the scattered nature of the incoming and outbound transportation networks. Traditional agrifood consulting is based on three phases: from farmers to intermediary silos, from silos to conversion plants, and conversion plants to customers (or end-users of agricultural products). A number of choices must be made at each stage.
Companies in agrifood consulting must make a variety of choices to optimize value from the chain.
Benefits utilized in agrifood businesses
The quantity of potential answers for each choice causes optimization analysis to become more complicated. The fragmentation of the supply chain increases the number of potential flows at each stage, resulting in thousands of different outcomes at each step. One business, for example, has more than 300-grain types, more than 300 silos, more than 7,000 additional storage locations, and more than 200,000 transportation alternatives to choose from.
The issue is further intensified by the fact that each result is unpredictable. Uncertainty arises from two main sources: operational factors, such as unpredictable yields in each field, and external factors, such as meteorological conditions, inputs, farmer capabilities, and pricing volatility, which results from a global imbalance in supply and demand.
Operational factors include factors such as unpredictable yields in each field, and external factors include factors such as input prices and farmer capabilities. For example, in the case of sugar, our study of 10 years of crop-yield data shows more than 150 agronomic scenarios (defined as a sequence of possible yields per parcel) that may be important to crop-collection planning and allocation logistics.