Examine the role of supermarkets in supply chain management of fruits, vegetables and food items. How do they eliminate the number of intermediaries? (150 words)
Supermarkets have emerged as an important player in the supply chain management of fruits, vegetables, and food items in India. Their role is significant in streamlining the supply chain process, ensuring the availability of fresh produce, and reducing the number of intermediaries involved in the process. Here are some ways in which supermarkets eliminate the number of intermediaries:
• Direct sourcing: Supermarkets source directly from the farmers or through their own supply chain channels, bypassing the middlemen, which eliminates unnecessary costs and delays in the supply chain process.
• Quality control: Supermarkets have strict quality control measures in place to ensure that only fresh and high-quality produce is available to the customers. This reduces the need for intermediaries who may compromise on quality for higher profits.
• Standardization: Supermarkets have standardized packaging and labeling requirements for fruits and vegetables, which eliminates the need for intermediaries who would typically package and label the produce.
• Aggregation: Supermarkets aggregate demand from multiple stores and locations, which enables them to purchase in bulk directly from the farmers, eliminating intermediaries who would otherwise aggregate demand and supply.
• Technology: Supermarkets use technology to track inventory and manage the supply chain process efficiently, reducing the need for intermediaries who would typically manage inventory and logistics.
Overall, supermarkets play a crucial role in supply chain management in India by eliminating intermediaries, ensuring the availability of fresh produce, and maintaining quality standards. Their direct sourcing, quality control measures, standardization, aggregation, and use of technology are the key factors that help them eliminate intermediaries and create a more efficient and effective supply chain process.