Supply Chain of Milk
Supply Chain of Milk
Supply Chain of Milk
Stage 1 :The cows at the diary farm are milked for at least twice a day and the milk is stored
in a refrigerated silo for up to 2 days.
Stage 2:The refrigerated tanker then collects the milk from the silo located in the diary farm
and transports the milk to a processing factory.
Stage 3:The processing factory pasteurizes the milk and is stored in the refrigerated silos
The supply chain in milk is started by the process of production, which is started by the
milking of cows in the first stage that includes the use of water and grass. When we move
on to the next stage where the milk is processed by refrigeration, treatment processing and
packaged into pallets in a sustainable and efficient way. The next step or stage is where the
milk in pallets is transported in the refrigerated truck to the retailers. The final stage is
where the consumers or end customers buy the milk from the retailers or distributors. The
key challenges within the supply chain of milk would be the Milk prices in Retail
Competition, Upstream Competition and Downstream Buyer power and the Bargaining
power in the supply chain. This explains that the bargaining power of the competition
between the processors and the individual processors. Due to less importance to farmers,
the processors have been taking continuous advantage in the supply of milk to the
distributors.
A value chain is a chain of activities that a firm operating in a specific industry performs
in order to deliver a valuable product or service for the market.
16. allows higher discount on price to wholesaler due large order size.
Demerits:
1. Sometimes Supply Chain Management can be very expensive to implement.
3. For better Supply Chain Management, proper skills and experience is required to achieve
success.