Producer Supply Network Success Factors
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Producer Supply Network Success Factors. Producer Supply Network. Identity preserved product On-farm storage Just-in-time delivery. Producer Supply Network. Quality assurance (ISO 9000) Logistical support Agronomic database of information Market research and analysis.

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Producer supply network l.jpg
Producer Supply Network

  • Identity preserved product

  • On-farm storage

  • Just-in-time delivery


Producer supply network3 l.jpg
Producer Supply Network

  • Quality assurance (ISO 9000)

  • Logistical support

  • Agronomic database of information

  • Market research and analysis


Attributes of successful supply networks l.jpg
Attributes of Successful Supply Networks

  • Understand the Supply Chain

  • Concentrate on well-understood products

  • Understand how to add value

  • Formal but flexible organization


Attributes of successful supply networks5 l.jpg
Attributes of Successful Supply Networks

  • Skilled and aggressive management

  • Proper incentives and penalties

  • Extensive documentation at all levels

  • Third party quality evaluation


Marketing alliances capture added value for specialty crops l.jpg

High initial premiums induce innovation, but premiums decrease as supply increases

Marketing alliances enable producers to capture added value due to:

high

  • Economics of

  • scale (logistics)

  • Rapid response

  • Single contract

low

  • Improved skills

  • and knowledge

  • of members

Added cost of producing a specialty crop

time

0 10

  • Bargaining power

Marketing Alliances Capture Added Value For Specialty Crops


Value to end user l.jpg
Value to End User decrease as supply increases

  • One-stop shopping

  • Consistency of product

  • Focused technical services

  • Dependability

  • In-house research

  • Documentation of process


Certification l.jpg
Certification decrease as supply increases

  • Unbroken chain of documentation

  • Third party verification of process

  • Customer confidence


Certification10 l.jpg
Certification decrease as supply increases

  • Standard procedures where possible

  • Redundant data collection, records

  • Primary example is ISO 9000

  • Testing becomes confirmatory


Value to producer l.jpg
Value to Producer decrease as supply increases

  • Capture emerging opportunities

  • Reputation

  • Bargaining power

  • Shared production information

  • Increased efficiency

  • Input purchasing


Value to end user producer l.jpg
Value to End-User & Producer decrease as supply increases

  • Added value to product

  • Eliminate switching costs

  • Volume logistics and support

  • Inventory management, support

  • E-business capability