The advent of agricultural technology platforms has led to a revolution in the methods of sourcing fresh produce from farmers. However, accomplishing effective operations that connect farmers and urban consumers is not an easy task. Effective management of the high volume of processes, including operating the stores and regional fulfillment centers, as well as supply chain and technology processes, puts a considerable strain on the internal capabilities of an organization.
Fresh produce has to be handled immediately and demands strict compliance with temperature requirements. The growing volume of orders causes various challenges in terms of efficiency and effectiveness of fresh produce platforms; thus, bottlenecks in the fulfillment process, high labor costs, and significant losses of perishable inventory occur.
1. The Case for Fully Managed Operations Outsourcing
Managing day-to-day retail and warehouse operations presents a huge burden of capital and leadership effort. From facility management to different shift arrangements, various interruptions in operations prevent the company from focusing on farm procurement and customer acquisition.
Outsourcing store management may allow switching to a fully outsourced, managed, and scalable model. Logistics and operations companies will take care of daily store and warehouse operations and allow changing fixed costs into flexible operational expenses.
2. Doubling Fulfillment Productivity with Multi-Shift Workflows
The fresh produce supply chain is characterized by the need to perform logistics work as quickly as possible. Produce harvested in the morning should be graded and dispatched early enough for it to make it to stores before their busiest trading hours. Performing logistics work in single shifts results in delays in order delivery and loss of products.
To avoid the overwhelming costs of having additional facilities while boosting the efficiency of fulfillment, the leading companies have developed effective multi-shift processes.
- The first shift : (Inbound operation and grading) Deals with the delivery of bulk materials from farms, checking their quality, and performing primary sorting.
- The second shift : (Outbound processing and packing orders) Performs operations connected with picking orders, packing them together, and sending them to stores and customers.
3. Maintaining Produce Quality Through Standardized SOPs
Maintaining freshness from warehouse receipt to store transfer entails adequate protocols. Consistently applied SOPs help prevent bruising, exposure to temperature, and deterioration. Collaborating with qualified logistical partners like Edgistify, specializing in end-to-end outsourcing logistics for retail and fulfillment center activities, allows agri-tech companies to optimize numerous shifts, increase productivity of fulfillment centers, and provide farm-to-market quality on a large scale.