Be Flexible, And Profit!

The marketplace for fresh fruit and vegetables is becoming increasingly globalised and interconnected. This affects the way that fresh produce is transported from its origin to its destination. The Fruit Logistica Trend Report 2018 looks at ways in which the supply chain must evolve to meet these challenges. 

- Walton Golightly

Fresh fruit and vegetable consumption will continue to rise in North America and Europe, but by 2030 their share of global consumption will be in decline. In contrast, as the populations in Asia, the Middle East and Africa continue to grow, these rapidly developing regions will increase their share of the fresh produce market from 60% in 2015 to almost 70% in 2030.

These trends will result in two major consequences for the fresh produce supply chain:

Increasing consumer demand for higher-quality produce and a broadening of the range in all markets.

Producers and processors will have to meet the higher demand in regions that are currently far from the supply chain.

As a result, while cost and efficiency will continue to play a significant role in driving the fruit and vegetable supply chain in the coming years, four additional key factors, namely speed, flexibility, precision and transparency, will be required.

AMAZON LEADS THE WAY.

The aim of increasing the speed of the supply chain is to enhance the freshness of the produce in order to deliver quality in line with growing consumer expectations. The trailblazer here can be found elsewhere in retail. Amazon, arguably the most advanced online retailer, is increasingly moving towards ‘speed retailing’ through Amazon Prime and its fresh produce operation AmazonFresh. To meet the challenge this presents, other players will need to become more adept at managing the supply chain. This means eliminating inefficiencies and developing an end-to-end view along its entire length. They will have to ensure well orchestrated schedules from order to delivery and reduce any lack of clarity in responsibilities, particularly where there are shared workflows.