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Scm in Food Industry

In: Business and Management

Submitted By Parveen82
Words 7627
Pages 31
Vol. 4, No. 12

International Journal of Business and Management

Supply Chain Management and Challenges Facing the Food Industry Sector in Tanzania
Juma Makweba Ruteri (Corresponding author) & Qi Xu Glorious School of Business and Management, Donghua University PO box 474, 1882 West Yan an Rd Shanghai, China Tel: 86-21-6237-3965 Abstract The complexities of food supply chain impose enormous challenges to the processors. As compared to multinational food companies operating in Tanzania, local firms have been performing inefficiently or going out of the business because they could hardly withstand the competition. SCM in the food industry sector was studied in a qualitative survey covered 23 food processing firms in Tanzania, with the purposes of identifying the existing supply chain operation, knowledge of SCM concept and challenges facing the sector. The findings of this study suggest that a lot of efforts need to be addressed to ensure that food processors benefit from SCM concept. The understanding of SCM concept among the processors seems to be low, thus, hindering them from taping up the advantages that SCM concept offer. The sector still faces a number of factors which impede the firms to grow fast and compete in the global market. Such factors include technical know-how, research and development, capital, managerial and physical infrastructures. Keywords: Supply chain management, Inventory management, Customer perceived value, Food industry 1. Introduction Food industry is one of the largest branches of industries in Tanzania which is made up of micro, small, medium and large processors. Micro and small food processors operate in an informal sector and use labour intensive and poor technologies, while medium and large scale industries use improved and modern technologies with large capacity output. Small and medium industries are the majority of local…...

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