Supply Chain Management

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nIntroduction

nA supply chain involves materials and activities that move from initial producers to a processing firm and finally to the final consumers. As goods and services stream from the producer to suppliers to final customer, supply chain management ensures successful linkages between these stakeholders. Supply chain management ensures that the network between the suppliers and customer is free and smooth. In addition, it reduces time and cost in delivering the products to the consumers at the required place and quantity (Burt, Petcavage and Pinkerton 2010, p. 59). The supply chain management for milk involves proper coordination of activities and goods from the farm through the suppliers to the firm and distribution of processed milk products to final customers.

nHow the product fits in the traditional supply chain model

nTo ensure that milk products fit in the demands of customers the milk processing company balances the customers requirements and farm output. For instance, the company collects milk samples from different farms to ensure quality of milk delivered to the firm. Moreover, the company emphasizes the need to maintain hygiene procedures to the suppliers (Slack et al 2006, p. 405). Delivery of quality milk is crucial as it helps the firm to process quality dairy products in terms of flavour, taste and pathogen free products. Besides, dairy products should have longer self-life and should be free from sediments and debris. Furthermore, the milk should have appropriate acidity and normal composition (Shah 2009, p. 72). Therefore, in order for milk to arrive at the firm and finally reach the consumer in good condition, several things should be carefully considered from the farm to the factory and later to the retailers and customers.

nThe processing factory ensures that there is hygienic production of milk when milking at the farm. Persons who milk are advised to be in good health and to use clean clothes and hands (Slack et al 2006, p. 407). Similarly, milking machines and milk churns should be kept dry and clean all the time. After milking the firm advises, the farmers to store milk at temperatures below 4o C. Farmers are also advised to keep their cow healthy (Burt, Petcavage and Pinkerton 2010, p. 61). During transport, the supply chain management ensures that milk is transported in insulated tankers where milk remains cool until it reaches the factory. The transportation of milk should be faster to avoid poor quality milk. In the factory, the supply chain management ensures that hygienic handling of milk. For instance, it ensures that contact surfaces of milk are kept clean using appropriate techniques (Crandall, Crandall and Chen 2010, p. 33). Disinfection of equipment occurs before and after use to reduce accidental contamination.

nSupply chain management ensures that packaging materials are not toxic and are used in a sanitary and clean manner. The processing factory also incorporates Hazard Analysis and Critical Control Points (HACCP) principles (Shah 2009, p. 79). The HACCP principles ensure that milk is processed in a safe environment to eliminate possible hazards. It also facilitates automated pasteurization, cooling and packaging of milk. Using the supply chain management, dairy products are transported to the customers using trucks, trains and air. The quality of the products delivered to the customers is guaranteed through regular and continuous checking of temperatures regardless of the transportation means (Hugos 2011, p. 39). In this respect, controlling of temperatures ensures that the factory produces reliable and safe products to its customers.

nChallenges in supply chain management

nMany challenges exist in the supply chain management of milk and its dairy products. In the farm, production of quality milk is affected by diverse factors. For instance, the supply chain management fails to meet quality of milk delivered as farmers do not maintain appropriate temperatures at critical points. In addition, some diseases that infect cows limit the quality of milk delivered to the factory (Hugos 2011, p. 45). Many farmers do not use any strategy to ensure safety and quality management of milk. In this regard, many farmers fail to use HACCP system, which reduces the quality at crucial points. Most of the farmers lack sufficient awareness of how to maintain the safety and quality of the milk while others considers them as too expensive to apply.

nBesides, some of the farmers believe that using HACCP systems requires extra work (Shah 2009, p. 143). Other challenges in supply chain management of milk include failure of the processing factory to train its employees on how to maintain quality of the products. The processing factory fails to keep the equipment clean and disinfected. Additionally, when delivering the dairy products to the customers, some of the products, suppliers and retailers fail to keep the products at the right conditions, which affect the products (Burt, Petcavage and Pinkerton 2010, p. 71). The products may be destroyed during transportation, hence failing to meet the customers demands.

nAreas for development and improvements along the supply chain

nIn the supply chain of milk the most crucial area of improvement and development is the use of HACCP principle in critical points (Kulkarni and Sharma 2004, p. 91). In this respect, the farmers should use new technology that determines the quality of milk produced such as acidity level, components, flavour, sediments and tastes. Furthermore, the processing factory should ensure that it utilizes high-quality ingredients, which meets the customers demands (Shah 2009, p. 149). To facilitate quality delivery of dairy products, the supply chain management should improve storage technology during transportation.

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nReferences

nBurt, D., Petcavage, S. and Pinkerton, R., 2010. Supply management. London: McGraw-Hill.

nCrandall, R., Crandall, W. and Chen, C., 2010. Principles of supply chain management. Boca Raton: CRC Press/Taylor & Francis Group.

nHugos, M., 2011. Essentials of supply chain management. Hoboken, NJ: Wiley.

nKulkarni, S. and Sharma, A., 2004. Supply chain management. New Delhi: Tata McGraw-Hill.

nShah, J., 2009. Supply chain management. Upper Saddle River, N.J.: Pearson Education.

nSlack, et al., 2006. Operations and process management. Harlow, England: Prentice Hall/Financial Times.