Food Chain Management

1
Food Chain Management

• Background and understanding
• Food chain management (FCM) constitutes the
  integrative base which integrates all
  requirements, opportunities and knowledge
  generated by
• Food and Consumer,
• Food and Health,
• Food Quality and Manufacturing,
• Food Safety and
• Sustainable Food Production
• ? into the reality of food chain operations
  adds value
• ? balancing the interests of all stakeholders
  from inside and outside (society) the
  enterprises

2
From Agriculture ....
The Change in Focus
Farmer
Farmer
Farmer
3
... towards an integrated view ...
Farmer
Consumer
4
... of the agri-food sector ....
Farmer
Consumer
5

... to the global Agri-Food Chain/Network
Europe
America
Asia
Farmer
Africa
GE
Europe
Consumer
Farmer
Europe
America
Farmer
Farmer
Farmer
Asia
Farmer
Farmer
Farmer
Africa
6
legal
political
technology
markets

• Environments
• ? Requirements
• ? Opportunities
• Restrictions

competition
Farmer
Art of FC Management
natural
Consumer
structural
cultural
markets
7
legal
political
technology
markets

• Environments
• ? Requirements
• ? Opportunities
• Restrictions

competition
Management duty Find Organization/Operation
Strategic view ? competitive
(sustainable) ? best fit to requirements
(environment)
Farmer
natural
Consumer
structural
cultural
markets
8

• Key success factors
• Flexibility and speed? Integration of small
  producers? Risk control
• Innovation
• (production, organization, management)
• Market stability
• Coordination macro/micro policies
• (inter-organizational relationships,
  institutional environment)? Trust and
  guarantees (B2B, B2C)
• Ethics, balancing of interests

... of the agri-food sector ....
Farmer
9

• Key success factors
• Flexibility and speed? Integration of small
  producers? Risk control
• Innovation
• (production, organization, management)
• Market stability
• Coordination macro/micro policies
• (inter-organizational relationships,
  institutional environment)? Trust and
  guarantees (B2B, B2C)
• Ethics, balancing of interests

Increasingconsumerdemands
... of the agri-food sector ....
Farmer
10

• Key success factors
• Flexibility and speed? Integration of small
  producers? Risk control
• Innovation
• (production, organization, management)
• Market stability
• Coordination macro/micro policies
• (inter-organizational relationships,
  institutional environment)? Trust and
  guarantees (B2B, B2C)
• Ethics, balancing of interests

... of the agri-food sector ....
Support toadapt to higherstandards
Farmer
11

• Key success factors
• Flexibility and speed? Integration of small
  producers? Risk control
• Innovation
• (production, organization, management)
• Market stability
• Coordination macro/micro policies
• (inter-organizational relationships,
  institutional environment)? Trust and
  guarantees (B2B, B2C)
• Ethics, balancing of interests

... of the agri-food sector ....
productionmarkets/financepolicy
Farmer
12

• Key success factors
• Flexibility and speed? Integration of small
  producers? Risk control
• Innovation
• (production, organization, management)
• Market stability
• Coordination macro/micro policies
• (inter-organizational relationships,
  institutional environment)? Trust and
  guarantees (B2B, B2C)
• Ethics, balancing of interests

... of the agri-food sector ....
Sustainable indynamicsector
Farmer
13

• Key success factors
• Flexibility and speed? Integration of small
  producers? Risk control
• Innovation
• (production, organization, management)
• Market stability
• Coordination macro/micro policies
• (inter-organizational relationships,
  institutional environment)? Trust and
  guarantees (B2B, B2C)
• Ethics, balancing of interests

... of the agri-food sector ....
Farmer
AvailabilityAffordability
14

• Key success factors
• Flexibility and speed? Integration of small
  producers? Risk control
• Innovation
• (production, organization, management)
• Market stability
• Coordination macro/micro policies
• (inter-organizational relationships,
  institutional environment)? Trust and
  guarantees (B2B, B2C)
• Ethics, balancing of interests

... of the agri-food sector ....
Farmer
Globalizatione-marketing
15

• Key success factors
• Flexibility and speed? Integration of small
  producers? Risk control
• Innovation
• (production, organization, management)
• Market stability
• Coordination macro/micro policies
• (inter-organizational relationships,
  institutional environment)? Trust and
  guarantees (B2B, B2C)
• Ethics, balancing of interests

... of the agri-food sector ....
Farmer
Working practicesfair trade relations
16

• Key success factors
• Flexibility and speed? Integration of small
  producers? Risk control
• Innovation
• Market stability
• Coordination macro/micro policies
• Trust and guarantees (B2B, B2C)
• Ethics, balancing of interests

... of the agri-food sector ....

• Challenges
• what to expect? -gt
  Future environment
  (requirements, opportunities,
• 
  restrictions)
• ? what activity options?
• -gt Factor specific
  (many)
• key issue -gt Integration
  (organizational,
  managerial)
  (vertical, horizontal)
• ? what to do? -gt Multi-criteria decision
  (best balancing of
  interests)

Farmer
Consumer
17

• Key success factors
• Flexibility and speed? Integration of small
  producers? Risk control
• Innovation? Market stability
• Coordination macro/micro policies? Trust and
  guarantees (B2B, B2C)
• Ethics

... of the agri-food sector ....

• Challenges
• what to expect? -gt
  Future environment
  (requirements, opportunities,
• restrictions)
• ? what activity options?
• -gt Factor specific
  (many)
• key issue -gt Integration
  (organizational, managerial)
  (vertical, horizontal)
• ? what to do? -gt Multi-criteria decision
  (best balancing of
  interests)

• Research
• Scenarios
• --------------------------------------------------
  -----------
• ? Best Practice options
• (different scenarios, different regions,
• national, international)
• ? through analysis (past)? Best concepts
  options
• ? through modelling/experts
• --------------------------------------------------
  -----------
• Methodology ? chain modelling ?
  multi-criteria evaluation of concepts ?
  experimental design

Farmer
Consumer
18

• Key success factors
• Flexibility and speed? Integration of small
  producers? Risk control
• Innovation? Market stability
• Coordination macro/micro policies? Trust and
  guarantees (B2B, B2C)
• Ethics

... of the agri-food sector ....

• Challenges
• what to expect? -gt
  Future environment
  (requirements, opportunities,
• restrictions)
• ? what activity options?
• -gt Factor specific
  (many)
• key issue -gt Integration
  (organizational, managerial)
  (vertical, horizontal)
• ? what to do? -gt Multi-criteria decision
  (best balancing of
  interests)

• Research
• Scenarios
• --------------------------------------------------
  -----------
• ? Best Practice options
• (different scenarios, different regions,
• national, international)
• ? through analysis (past)? Best concepts
  options
• ? through modelling/experts
• --------------------------------------------------
  -----------
• Methodology ? chain modelling ?
  multi-criteria evaluation of concepts ?
  experimental design

• - Focused - Comprehensive

Farmer

• Reality-match?
• ? Experiments .....

Consumer
19
Scenario Priorities

• Key success factors
• Flexibility and speed? Integration of small
  producers? Risk control
• Innovation? Market stability
• Coordination macro/micro policies? Trust and
  guarantees (B2B, B2C)
• Ethics

? Scenario identification
Sustainability
1-3 years
2-7 years
Farmer
? Best Practice (Focused,
Comprehensive) -----------------------------------
--------- ? New Concepts (Focused,
Comprehensive)
All groups
Challenges -gt Future environment
(requirements, opportunities,
restrictions) -gt Factor specific improvements -gt
Integration -gt Multi-criteria decision
(best balancing of interests)
2-5 years
Methodology ? chain modelling ?
multi-criteria evaluation ? experimental
design
20
legal
political
technology
markets
competition
Providing Support forFC Management
Developmentfor Best Sector Development
Farmer
natural
Consumer
structural
cultural
markets
21
(No Transcript)
22
(No Transcript)
23
(No Transcript)
24
legal
political
technology
markets
competition
Farmer
Art of FC Management
natural
Consumer
structural
cultural
markets
25

• Key success factors
• Flexibility and speed? Integration of small
  producers? Risk control
• Innovation
• Market stability
• Coordination macro/micro policies
• Trust and guarantees (B2B, B2C)
• Ethics, balancing of interests

... of the agri-food sector ....

• Challenges
• what to expect? -gt
  Future environment
  (requirements, opportunities,
• restrictions)
• ? what activity options?
• -gt Factor specific
  (many)
• key issue -gt Integration
  (organizational, managerial)
  (vertical, horizontal)
• ? what to do? -gt Multi-criteria decision
  (best balancing of
  interests)

Farmer
Consumer
26
Scenario Priorities

• Key success factors
• Flexibility and speed? Integration of small
  producers? Risk control
• Innovation? Market stability
• Coordination macro/micro policies? Trust and
  guarantees (B2B, B2C)
• Ethics

? Scenario identification
1-3 years
Farmer
? Best Practice (Focused,
Comprehensive) -----------------------------------
--------- ? New Concepts (Focused,
Comprehensive)
2-7 years
Challenges -gt Future environment
(requirements, opportunities,
restrictions) -gt Factor specific improvements -gt
Vertical/horizontal integration -gt
Multi-criteria decision (best balancing of
interests)
2-5 years
Methodology ? chain modelling ?
multi-criteria evaluation ? experimental
design
27

• Key success factors
• Flexibility and speed? Integration of small
  producers? Risk control
• Innovation? Market stability
• Coordination macro/micro policies? Trust and
  guarantees (B2B, B2C)
• Ethics

? Scenario identification
Sustainability
Farmer
? Best Practice (Focused,
Comprehensive) -----------------------------------
--------- ? New Concepts (Focused,
Comprehensive)
All groups
Challenges -gt Future environment
(requirements, opportunities,
restrictions) -gt Factor specific improvements -gt
Vertical/horizontal integration -gt
Multi-criteria decision (best balancing of
interests)
Methodology ? chain modelling ?
multi-criteria evaluation ? experimental
design
28

• Key success factors
• Flexibility and speed? Integration of small
  producers? Risk control
• Innovation? Market stability
• Coordination macro/micro policies? Trust and
  guarantees (B2B, B2C)
• Ethics

... of the agri-food sector ....

• Challenges
• what to expect? -gt
  Future environment
  (requirements, opportunities,
• 
  restrictions)? what activity options?
• -gt Factor specific
  (many)
• key issue -gt Integration
  (organizational,
  managerial)
  (vertical, horizontal)
• what to do? -gt Multi-criteria decision
  (best balancing
  of interests)

Farmer
Consumer
29

• Key success factors
• Flexibility and speed? Integration of small
  producers? Risk control
• Innovation? Market stability
• Coordination macro/micro policies? Trust and
  guarantees (B2B, B2C)
• Ethics

... of the agri-food sector ....

• Challenges
• what to expect? -gt
  Future environment
  (requirements, opportunities,
• 
  restrictions)? what activity options?
• -gt Factor specific
  (many)
• key issue -gt Integration
  (organizational,
  managerial)
  (vertical, horizontal)
• what to do? -gt Multi-criteria decision
  (best balancing
  of interests)

• Research
• Scenarios
• ? Focused Best Practice
• ? General Best Practice
• (different scenarios, different regions,
• national, international)
• ? Analysis (past)
• ? Modelling (future) (new
  concepts)
• Methodology ? chain modelling ?
  multidimensional evaluation
• of management concepts

Farmer
Consumer
30

• Key success factors
• Flexibility and speed? Integration of small
  producers? Risk control
• Innovation? Market stability
• Coordination macro/micro policies? Trust and
  guarantees (B2B, B2C)
• Ethics

... of the agri-food sector ....

• Challenges
• what to expect? -gt
  Future environment
  (requirements, opportunities,
• 
  restrictions)? what activity options?
• -gt Factor specific
  (many)
• key issue -gt Integration
  (organizational,
  managerial)
  (vertical, horizontal)
• what to do? -gt Multi-criteria decision
  (best balancing
  of interests)

• Research
• Scenarios
• ? Focused Best Practice
• ? General Best Practice
• (different scenarios, different regions,
• national, international)
• ? Analysis (past)
• ? Modelling (future) (new
  concepts)
• Methodology ? chain modelling ?
  multidimensional evaluation
• of management concepts

Farmer
Consumer
31

• Key success factors
• Flexibility and speed? Integration of small
  producers? Risk control
• Innovation? Market stability
• Coordination macro/micro policies? Trust and
  guarantees (B2B, B2C)
• Ethics

... of the agri-food sector ....

• Challenges
• what to expect? -gt
  Future environment
  (requirements, opportunities,
• 
  restrictions)? what activity options?
• -gt Factor specific
  (many)
• key issue -gt Integration
  (organizational,
  managerial)
  (vertical, horizontal)
• what to do? -gt Multi-criteria decision
  (best balancing
  of interests)

Farmer
Consumer
32

... the global Agri-Food Chain/Network
Europe
America
Asia
Africa
GE
Europe
Farmer
Europe
America
Farmer
Farmer
Farmer
Asia
Farmer
Farmer
Farmer
Africa
33
The Complexity of Food Chains
34
Food Chain Management
Proposed Area of Activity

• FCM research activities (goal 1-3)
• future scenarios (what to expect?)
• research on best management practices (what do
  we know?)
• research on food chain modelling for the
  identification of optimal chain management
  alternatives (best practices) and for new
  challenges from technologies or changing
  scenarios (what could be done?).

• Challenges
• anticipation of the future scenarios
• integration of key success factors in
  organizational and managerial integration
  concepts
• Horizontal and vertical integration in the food
  networks (regions sectors)
• complexity and multi-dimensional facets result
  in changes in methodology

35
Food Chain Management
Linkage within ETP Goal 1 future scenarios
Goal 2 best management practices Goal
3 food chain modelling
CTTT HA (scenario studies) Food
Consumer Sustainable Food Procuction Food Safety
(risk, benefit) CTTT CTTT

36

37

• Key success factors
• Flexibility and speed? Integration of small
  producers? Risk control
• Innovation? Market stability
• Coordination macro/micro policies? Trust and
  guarantees (B2B, B2C)
• Ethics

... of the agri-food sector ....
Farmer
38

• Key success factors
• Flexibility and speed? Integration of small
  producers? Risk control
• Innovation? Market stability
• Coordination macro/micro policies? Trust and
  guarantees (B2B, B2C)
• Ethics

? Scenario identification
? Focused Best Practice ? General Best
Practice ? through analysis (past) ?
through modelling (future) (new
concepts)
Farmer
Challenges -gt Future environment
(requirements, opportunities,
restrictions) -gt Factor specific improvements -gt
Vertical/horizontal integration -gt
Multi-criteria decision (best balancing of
interests)
Consumer
Methodology ? chain modelling ?
multidimensional evaluation of
management concepts
39
... in a global economy
Europe
America
Asia
Farmer
Africa
Germ
Germany
Europe
Consumer
Farmer
Europe
America
Farmer
Farmer
Farmer
Asia
Farmer
Farmer
Farmer
Africa
Turkey
40

• Key success factors
• Flexibility and speed? Integration of small
  producers? Risk control
• Innovation? Market stability
• Coordination macro/micro policies? Trust and
  guarantees (B2B, B2C)
• Ethics

... of the agri-food sector ....

• Challenges
• what to expect? -gt
  Future environment
  (requirements, opportunities,
• restrictions)
• ? what activity options?
• -gt Factor specific
  (many)
• key issue -gt Integration
  (organizational, managerial)
  (vertical,
  horizontal)
• ? what to do? -gt Multi-criteria decision
  (best balancing of
  interests)

• Research
• Scenarios
• --------------------------------------------------
  -----------
• ? Best Practice options
• (different scenarios, different regions,
• national, international)
• ? through analysis (past)? Best concepts
  options
• ? through modelling/experts
• --------------------------------------------------
  -----------
• Methodology ? chain modelling ?
  multi-criteria evaluation of concepts
• ? experimental design

• - Focused - Comprehensive

Farmer

• Reality-match?
• ? Experiments .....

Consumer
41

• Key success factors
• Flexibility and speed? Integration of small
  producers? Risk control
• Innovation? Market stability
• Coordination macro/micro policies? Trust and
  guarantees (B2B, B2C)
• Ethics

... of the agri-food sector ....

• Challenges
• what to expect? -gt
  Future environment
  (requirements, opportunities,
• 
  restrictions)? what activity options?
• -gt Factor specific
  (many)
• key issue -gt Integration
  (organizational,
  managerial)
  (vertical, horizontal)
• what to do? -gt Multi-criteria decision
  (best balancing
  of interests)

Farmer
Consumer
42
Food Chain Management
Deliverables Short term (1-2 years,
continuous) - Scenario identification and
analysis Medium term (2-5 years) -
Identification of best practice management
approaches Medium/long term (3-7 years) -
Knowledge from design of modelling approaches
(methodological issues) - Modelling of food
chain management activities in scenario
alternatives.

43
... the global Agri-Food Chain/Network
Europe
America
Asia
Africa
Art of FC Management
GE
Europe
Farmer
Europe
America
Farmer
Farmer
Farmer
Asia
Farmer
Farmer
Farmer
Africa
44

• Key success factors
• Flexibility and speed? Integration of small
  producers? Risk control
• Innovation? Market stability
• Coordination macro/micro policies? Trust and
  guarantees (B2B, B2C)
• Ethics

... of the agri-food sector ....

• Challenges
• what to expect? -gt
  Future environment
  (requirements, opportunities,
• restrictions)
• ? what activity options?
• -gt Factor specific
  (many)
• key issue -gt Integration
  (organizational, managerial)
  (vertical, horizontal)
• ? what to do? -gt Multi-criteria decision
  (best balancing of
  interests)

• Research
• Scenarios
• --------------------------------------------------
  -----------
• ? Best Practice options
• (different scenarios, different regions,
• national, international)
• ? through analysis (past)? Best concepts
  options
• ? through modelling/experts
• --------------------------------------------------
  -----------
• Methodology ? chain modelling ?
  multidimensional evaluation
• of management concepts

Farmer
Consumer