Raw Material Procurement and Delivery for the Food Processing Industry

The food processing industry relies on an accurate supply of spatial information related to markets, transportation, distribution networks, status of processing facilities, and raw material supplies to manage widely dispersed assets and maintain maximum profitability. Shortfalls or breakdowns in any part of the production chain such as redundancy at a processing facility can result in substantial losses, so ensuring timely product deliveries is essential.

Understanding the processes and movements along the transportation network from the point of production in the field to the processing facility is where GIS can assist greatly. Large food processing companies manage their operations in fine detail, contracting farmers prior to planting for delivery of specific quantities on specific dates. This management aims to reduce, as much as possible, a situation where either the processing capabilities of an asset (e.g., a mill) are underutilized or market demand outstrips production capacity. The management chain could be extended to include the delivery of the processed goods to either a retail distributor or even as far as the consumer shelf in a shop, but whether extended or not, the underlying principles remain the same.

Business models that are built and inherently contain natural phenomenon without consideration of variations outside of the control of normal land management practices are significantly weakened. The food industry is no exception and frequently suffers as a result of natural variations in such agricultural parameters as precipitation and temperature. Understanding the potential risks to agricultural production and food processing capacity relies on statistical analysis of historical information in a spatial or location-specific context. 1-Geostatistical Analyst offered as an extension of ArcGIS software provides the tools to calculate these risks and, therefore, better prepare for them when they occur.

Locating transportation assets in real time is an essential element that only becomes intensified as the perishability of the food products increases. Time constraints between harvesting a crop and delivery only increase the value and therefore the margin of profit. Managing the movement of such commodities cannot afford delays. Planning and coordinating an efficient transport network is possible by using ArcLogistics software. GPS receivers and transmitters located on vehicles allow transport managers to better coordinate supplies to processing facilities and, consequently, enhance profitability.