Trends in the U.S. Food Supply Chain(PPT 34)

Overview of Traditional “Competitive” Supply Chain Structure
The Supply Chain of Yesteryear
Overview of Emerging “Partnership” Supply Chain Structure
The Supply Chain of Today
Reasons for Change:
Channel Blurring
Changing Consumer Preferences
Retail Differentiation
Retail Concentration
Growing Importance of Foodservice
Technological Capabilities
Changing Structure of Production Agriculture
Competitive” Structure

Traditional supermarkets dominated retail marketplace
Many shippers sold to many buyers in wholesale and retail markets; no large buyers drove the market
Buyers tended to be more transaction and price-oriented; not open to cooperative partnerships with suppliers
Daily sales transactions were typical
“New technology” equaled a fax machine and PLU stickers
“Anticipatory” supply chain system in place where suppliers
Forecast product sales
Buy the components and manufacture the products
Warehouse the products
Sell the products produced
Deliver the products to the consumer

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