If you are a beginner in the food logistics industry, you might be wondering what the food logistics chain is. If you want to learn more about logistics, make sure to read this article beforehand. Let us cut to the chase and find out what it means! The food logistics chain involves the transferring of products or goods until the final destination, which is usually the customer. Moreover, it is the path, which enables businesses to reach profit and turn products into monetary benefits. Therefore, in the food industry, a company should possess an effective logistics chain to reach success.
In terms of the food supply chain, it involves the coordination and movement of food supply and materials and transferring them from the sources to consumption. At present, the supply and materials in relevance to the food industry are often situated far more distant. Sometimes, these are situated in different countries or even continents. This means that the food supply chain is longer than before and more distant from the users. However, at the same time, the longer the Food Logistics Chain is, the more food waste will take place.
According to a study in 2018, the amount of waste will cost more than 1.2 trillion dollars. This is a huge loss of monetary benefits. Of course, then the delicious food will end up in bins or landfills, without even eating a bite of them. This is inevitable, since the food travels far more long distances all over the world, while in distribution. For instance, kiwi, a fruit, travels more than 18.6km from New Zealand around the whole world.
Logistics chains include starting from the Food Logistics Chain, which is the farm, until the acquisition of goods by the consumer. The logistics chain is not a simple concept as it includes various functions of the entire path. These functions include controlling the inward and outward of manufacturing, sorting, warehousing, transportation, and many more in relevance to the food industry.
Food supply chain management is significant at present in order to reach success and to enhance customer satisfaction. Not only that, there are countless benefits through implementing an effective Food Logistics Chain. The ability to deliver food at the right time and in the right quality is another benefit. On the other hand, the more quality a business has, the more customers it will gain. In addition, food is an integral part of human lives. Of course, in that sense, it is essential to the survival of humans.
In terms of monetary benefits, the Food Logistics Chain will aid the business to cut down additional costs. For instance, it will reduce manufacturing, purchasing costs, and overall supply chain costs. Moreover, supply chain management led to emerging many job roles in functions including warehousing, manufacturing, inventory management, transportation, etc. At the same time, it will improve standards of living and protect the delivery of necessities.
Yes, restaurants are a part of the Food Logistics Chain. In terms of the interactions, the supply chain involves the farmers, suppliers, and consumers. In that sense, restaurants and even hotels can be categorized under the consumers. Moreover, hotels and restaurants are usually referred to as larger consumers. In addition, restaurants are the buyers who bought products or goods from farmers.
Now you know the exact answer to the question of whether the restaurants are part of the food supply chain or not.
Throughout the article, we have explained all the in-depth information about the Food logistics chain. These will help you to be aware of the significance and the functions of the Food Logistics Chain. If you like our articles, stay with us for more mind-blowing facts.
Onsite Global Logistics is a third party logistics provider 3PL helping companies with innovative global logistics and supply chain solutions
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