Trends in the U.S. Food Supply Chain(PPT 34)

 Overview of Traditional “Competitive” Supply Chain Structure
 The Supply Chain of Yesteryear
 Overview of Emerging “Partnership” Supply Chain Structure
 The Supply Chain of Today
 Reasons for Change:
 Channel Blurring
 Changing Consumer Preferences
 Retail Differentiation
 Retail Concentration
 Growing Importance of Foodservice
 Technological Capabilities
 Changing Structure of Production Agriculture
Competitive” Structure

 Traditional supermarkets dominated retail marketplace
 Many shippers sold to many buyers in wholesale and retail markets; no large buyers drove the market
 Buyers tended to be more transaction and price-oriented; not open to cooperative partnerships with suppliers
 Daily sales transactions were typical
 “New technology” equaled a fax machine and PLU stickers
 “Anticipatory” supply chain system in place where suppliers
 Forecast product sales
 Buy the components and manufacture the products
 Warehouse the products
 Sell the products produced
 Deliver the products to the consumer