In a recent publication, the multinational avocado supplier shed light on its approach to achieving resilient and efficient avocado supply chains.
The company stresses that the effects of climate change, inflation and personnel shortages, as well as disturbances in the currency market, all add further pressure on the industry, and that this ‘perfect storm’ underscores the urgency of building resilience in the supply chain.
To mitigate risks associated with these challenges, Westfalia Fruit says it is using a number of strategies. Some of these are conventional approaches, with others being more novel.
First and foremost, the avocado supplier claims it is diversifying its sources of supply.
“Historically, the European avocado market has relied on a limited number of sources, previously consisting of less than 7 sources for year-round supply, but today Europe is supplied by more than 17 countries and numerous regions within the source countries,” says Westfalia Fruit.
This diversification approach, says Westfalia Fruit, helps in spreading production and sourcing across multiple locations, thereby reducing the risk of disruptions, improving cost management, and increasing flexibility in response to changes in demand.
“The patterns of supply to various markets continually shift. Therefore, it is of paramount importance to pioneer new sources and regions of supply in a proactive manner to safeguard unhindered supply,” stresses Matthew Churchill, Global Brand Manager at Westfalia Fruit.
While diversifying supply lines is a well-known and established principle to any supply chain manager, the sector is very much still learning how technology can be harnessed to make supply chains more resilient.
Some of the technology used by Westfalia to build supply chain resilience includes “precision agriculture”, automated packing, and blockchain-based traceability systems. The latter is said to improve supply chain efficiency, transparency and threat identification.
The company adds that investment in data management also helps to identify and mitigate potential supply chain disruptions, particularly those related to weather and seasonality.
At the same time, the multinational avocado supplier is placing a strong emphasis on forecasting in its supply chain management.
“Improved forecasting encompassing data management and ‘mining’ leads to improved inventory management, reduced waste, and increased sales, improved collaboration, and communication among different stakeholders in the supply chain,” the company explains.
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