Value Chain of Agricultural-Food Products

Ćejvanović, Ferhat and Potrebić, Velibor (2018) Value Chain of Agricultural-Food Products. In: Sustainable Agriculture and Rural Development in Terms of the Republic of Serbia Strategic Goals Realization within the Danube Region : support programs for the improvement of agricultural and rural development. Institute of Agricultural Economics, Belgrade, pp. 216-229. ISBN 978-86-6269-061-6

Text 3 - Cejvanovic, Potrebic.pdf - Published Version Available under License Creative Commons Attribution Non-commercial No Derivatives. Download (723kB)

Abstract

With its specific determinants, during the previous decades, retail has been characterized by distinct competitiveness, concentration, consolidation and globalization. Diversification of the retail market has led to the saturation of the supply, which imposed the need for searching of sources of competitive advantage and creation of values in other domains besides those classically considered as retail. Companies are trying to change their business in order to find new ways of accessing to customers. Internationalization and consolidation of retail was reversed upside down the appearance of traditional retail. Fast and efficient operating procedures and new technologies are considered as permanent challenges for retailers. The term of supply chain management is relatively new in professional literature. First time it was mentioned in 1982. Supply chain represents a set of institutions involved in the process of goods transfer from the place of production to the place of consumption. Retail is the last link in the supply chain. Successful management of the supply chain will result in significant savings and increased customer satisfaction. Retail is responsible for equalizing the individual needs of customers with the size of supply produced by a large number of producers. Managing to the supply chain of agricultural-food products should take into reconsideration only strategic suppliers within the value chain. Without close interaction with other supply chain members traders cannot fully realize their role in the supply chain. Entities involved in retail of agricultural and food products resort to managing the supply chains in order to face increased market insecurity and complexity, as well as competitive situations trying to reduce level of supplies across the entire value chain. Products’ value chain describes the full range of activities needed to bring the product from production, transportation, processing and retailing to the final consumer. It has been expanded by series of combinations that involve engagement of equipment, labour, knowledge and skills, raw materials for the production of an agricultural or food product. Efficient managing of supply chain of agricultural and food products should support the customers’ satisfaction. Retailers operate at the point closest to customers, so they are in the best position to answer the questions when, where and how customers want certain goods. Supply chain management in retail of agro-food products represents a challenge in the phase of implementation and execution. It should be emphasized that traders of agro-food products which want to be successful, and understand the importance and functioning of supply chain management have to use the capabilities of all supply chain members in order to be more successful and profitable. The value chain of the agricultural and food products is consisted of all members of supply chain that are active in the process of the value creation and products delivery to the final customers. Trade with agrofood products is resulting the value added, creating the assumptions of the competitive advantage at the market.

Actions (login required)

View Item