Information technology in agri-food supply chains

V Salin
1998 International Food and Agribusiness Management Review  
EXECUTIVE SUMMARY High-tech information systems can be a source of competitive advantage to agri-food firms when they support a supply chain strategy that suits the demand for the product. Understanding the difference between supply chains for functional versus innovative products is an important first step. Functional products, with their stable demand and commodity nature, would use automated systems that reduce the costs of production and handling. Innovative products have much higher value
more » ... much higher value added, which justifies expenditures on a responsive supply chain to prevent over-supply and out-of-stocks. Systems to understand and predict consumer demand are critical to an innovative product supply chain. Managers of agri-food supply chains face complications from the fact that their products are not always clearly distinguishable as functional or innovative. Food safety and quality concerns may dictate supply chain approaches. INFORMATION TECHNOLOGY IN AGRI-FOOD SUPPLY CHAINS ABSTRACT High-tech information systems can offer competitive advantages to agri-food firms when the systems support a supply chain strategy that suits the demand for the product. This article discusses differences between supply chains for functional versus innovative products and the relevance for managers in agri-food firms. Unique characteristics of agriculture and food products and economic concentration in food industries affect the appropriate supply chain approach.
doi:10.1016/s1096-7508(99)80003-2 fatcat:qil556w4wbho3evukcpbzvlgyi