Agricultural Value Creation through Effective Supply Chain Management
Journal Title: Current Investigations in Agriculture and Current Research - Year 2018, Vol 2, Issue 2
Abstract
Agriculture is the most important industry for humanity. Unfortunately, however, it is also one of the least effectively managed industries. It is true that for the last several decades, there have been enormous scientific advancements that have increased the agricultural productivity. However, the question is whether the world has been able to reap the benefits to the fullest extent of such scientific advancements. The agricultural supply chain is characterized with an extremely long and fragmented system consisting of many gatekeepers throughout the value chain. As a result, it is vulnerable to a serious systemic malfunctioning such as the bullwhip effect. When a supply chain is inflicted by the bullwhip effect, it suffers huge inefficiencies, which include increasing costs, hampering innovation, and weakening problem solving capability. Unless it overcomes such inefficiencies, the industry as a whole will lose its competitiveness and perish eventually. As such, in order for the agricultural industry to sustain and thrive, it is vital to implement supply chain strategy effectively through coordination among the entire participants in the agricultural value chain.There is no doubt about that the agricultural industry is the most essential one for humanity [1]. It also employs a great number of people, providing economic means to them. But it is not easy to answer whether the agricultural industry is an effective one. On the quite contrary, the industry is perhaps the least effectively managed one for the last several thousand years. As people in the world are enjoying longevity, the world consumes more and more food. Can the world’s agricultural industry feed all the people on earth? It is a vital question. If the earth capacity is limited and the crops are not produced enough, the only possible solution is to increase the productivity of the agricultural industry. In order to find ways to increase such productivity, we first have to understand why the productivity of the agricultural industry is so low. Then we can suggest how the agricultural industry changes itself to be more productive and effective. In this paper, we endeavor to answer the question from a value chain perspective. The Agricultural Value Chain
Authors and Affiliations
Bowon Kim
Keywords
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- EP ID EP570328
- DOI 10.32474/CIACR.2018.02.000132
- Views 82
- Downloads 0
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