Digitially Connected Supply Chains

Our food supply chain is very complex. There is a lack of connectivity and data flow across the food chain. This results in food waste as food buisnesses work on their own forecasting models.

Demand forecasting has many challenges. The food retailer has to make their purchasing decisions and place orders weeks in advance of sales to consumers. In turn, food manufacturers have to make their purchasing decisions in advance of orders from their customers and months in advance of production. While the producer makes their purchasing decisions months to years in before the manufacturer and retailer place their orders. Each of these actor have to take a number of things into consideration, such as customer demand, consumer behaviour, weather events, competitors prices etc. This can make it difficult to accurately predict supply and can result in food losses.

Digital technology makes it possible for companies to collaborate and share data throughout the supply chain for more accurate demand models and timely decision making. This can minimise food losses and contribute to significant cost savings.

However, to use the full potential of digital technology for forecasting supply and demand, collaboration and data sharing across the food chain, between suppliers and customers is important.

What we would like you to do

Please discuss digtially connected supply chains:

• What do you think are the risks of sharing data with other stakeholders in the supply chain?
• Do you think there are any risks with relying on digital technology to forecast demand?