Emerging Trends of Material Management

Agriculture Supply Chain Management:

The driving forces included the trend towards consolidation of organisations (at farm input, farms,
processor and supermarket levels), along with government deregulation of agribusiness markets.
Interest was also rising in quality-management systems and food safety, and competition in markets
was increasing, associated with global trade in agribusiness products.
Production and marketing arrangements are responding to changing demand, driven by
urbanization and diet change. Government-sponsored schemes in horticulture have mixed results,
generating more jobs than cereal production. Beyond direct government interventions, new forms of
contractual and sharecropping relationships are emerging between private dealers and farmers
(Priyadeshingkar). Agro-industry also generates new demand on the farm sector for more and
different agricultural output, which are more suitable for processing.
SCM implies managing the relationships between the businesses responsible for the efficient
production and supply of agribusiness products from farm level to consumers, to reliably meet
consumers’ requirements in terms of quantity, quality and price. Meeting customers’
requirements
involves integrated management of the transactions and relationships between firms as well as
processes within firms. Managing these relationships provides an opportunity for overtly negotiating
the shares between chain members of the value produced within the chain. More importantly, joint
planning of collaborative strategies is possible, to grow the shared value. The latter contrasts with the
usual conflict between agribusiness suppliers and buyers about their relative shares of the value
generated.
Participants in volatile agricultural supply chain could only effectively manage and mitigate risk if a
detailed identification and descriptions of their root causes are known. In spite of a high farm output,
the status of agriculture in India looks bleak offering more questions than answers. The answer to a lot
of these questions lies in the ineffective supply chain that leads to the transport of the produce from the
farm to the end consumer.
The supply chains of different agricultural commodities in India, however, are fraught with challenges
stemming from the inherent problems of the agriculture sector. The agri supply chain system of the
country is determined by different sartorial issues like dominance of small/ marginal farmers,
fragmented supply chains, absence of scale economies, low level of processing/value addition,
inadequacy of marketing infrastructure etc. Agriculture plays a vital role in the world economy.
However, the production of most agricultural products is affected by a lot of external factors, such as
the weather changes, seeds quality, and culture methods, which are not in full control by the supply
chain members. The situation is further complicated by the fact that there is a long lead time in the
production of agricultural product. It means that it is impossible to adjust the production plan when the
environment changes.
For the agricultural product producers, they lack the market information and are not certain of the final
output when going into production. They are more blindfold to choose what to produce and how much
to produce, especially in the uncertain environment. Then oversupply and shortage of the agricultural
product are quite popular in the agricultural product market, which reduce the profit of the supply
chain and hurt the enthusiasms of the supply chain members. How to reduce the effects of the
fluctuations and share the risks facing the supply chain members is an important topic in the supply
chain management. Coordinating supply chain has been a major issue in supply chain management
research. Supply chain contracts are contractual agreements governing the pricing and exchange of
goods or services between independent members in a supply chain. Properly designed supply contracts
are an effective means to share the demand and supply risk and better coordinate the decentralized
supply chain. It is widely recognized that the supplier and retailer can both benefit from coordination
and thereby improve the overall performance of the supply chain as a whole. Many well-known
contract forms such as buy-back, revenue-sharing, quantity flexibility, sales rebate, two-part tariff, and
quantity discount have shown to coordinate the supply chain. To understand the roadmap and
importance of supply chain management in Agriculture sector, the study carried with major 5 sections.
Section I discussed about supply chain management, section II on agriculture supply chain
management, section III on Agri food supply chain management, section IV about Agriculture
marketing in India and section V deals with market place for agriculture products discusses the role of
APMC, contract farming, private sector initiatives and information services .

Introduction

Manufacturing as a whole has seen dramatic changes over the past few years. It’s a promising trend that
is spurring new innovation and improved processes at every step of the supply chain. From a warehouse
and materials handing perspective, the change has meant greater efficiencies, newer technologies and
streamlined services. Businesses realize the potential for streamlined materials handling and are eager
to make long-overdue improvements. With a strengthening economy that is pushing ahead, expect
manufacturing and warehouses to be at the center of continued change.

The Demand for New Talent in the Workforce Will Increase and Beyond

A notable trend during the economic recovery has been that the talent pool for manufacturing has
dwindled, leaving many key jobs unfulfilled. A large reason for this, and an indicator for what to expect,
is the wave of retiring baby boomers. As the jobs themselves evolve along with technology, the aging
talent pool is either moving on or stepping aside. It’s unlikely to slow in the next few years, so expect to
be another year for rigorous recruiting efforts in manufacturing and materials handling.

Automation and Machines Will Play a Larger Role in the Workplace

This industry is in the midst of a robotic revolution.  Robots don’t get tired and they are incredibly
accurate, and materials handling is an area where they thrive. With a fluctuating workforce and an
increased emphasis on output and efficiencies, watch for a work environment that includes more and
more automation 

Manufacturers will Maintain a Focus on Cost-Savings and Efficiency

If manufacturers learned anything from the recession, it was how to cut costs to stay viable. Even with
the recent upticks in consumer confidence and GDP, manufacturers are hesitant to spend without first
exhausting all options to be more efficient on the front end. and expect them to continue to seek ways
to cut costs. In some ways, those cost-cuttings could be lopsided toward the materials handling sector,
because of the potential there for substantial savings. Processes will be streamlined — for example,
warehouse layouts are likely to be restructured to improve overall workflow. Logistics and tracking
software will grow in popularity. 

Energy Efficiency Will Be a Major Focus

With that same thinking, manufacturers and warehouse managers will keep an eye on savings that can
result from cutting energy costs. Already, the trend is toward warehouses and facilities that make better
use of windows for natural lighting, and older buildings have been renovated to reduce the amount of
heated and cooled air that escapes buildings. New warehouse facilities will be built with sustainability in
mind, with a greater focus on efficient transportation options, alternative power sources and more.
Watch for this trend to play a greater role in the year ahead.

The Industry Will Be Driven By Innovation

One of the exciting trends to emerge from the manufacturing recovery has been the accelerated pace of
innovation — think additive manufacturing (i.e.,  3D printing) and automation. It’s a race to find the
most efficient ways to produce and move products. That means new technologies forklifting and
transporting. It also means the development of better logistics software for sorting, locating, tracking
and ultimately moving materials. With an economy that is expected to continue at a positive clip, expect
more movement in and out of warehouses and more technologies that will make it easier to do your
job.

Data Will Become Increasingly Important

Materials handling facilities are realizing the potential of collecting and using data to improve
efficiencies. As such, sensors and other data collection technologies have emerged. The results so far are
promising, with many manufacturers using that data to monitor production and warehouse processes
alike, and they are relying on sensors to alert them to technical issues before they become expensive
problems. At every level of the supply chain, expect to see a rise of sensor technology which will be
more affordable.

E-commerce Will Change How Warehouses are Managed

While e-commerce and online retail have been in existence for some time now, a growing demand for
information has required further innovation in the warehouse setting. Retailers are promising real-time
tracking, and it’s partly on material handlers to deliver on that promise. By some estimates, all
shipments will be trackable in real time by the year 2025. That includes any time spent in a warehouse,
either from manufacturers and wholesalers or in transit. The implications for materials handling facilities
over the next few years are that they must start adapting now. 

Thank You