Producer Supply Network Success Factors

1. Producer Supply Network Success Factors

2. Producer Supply Network • Identity preserved product • On-farm storage • Just-in-time delivery

3. Producer Supply Network • Quality assurance (ISO 9000) • Logistical support • Agronomic database of information • Market research and analysis

4. Attributes of Successful Supply Networks • Understand the Supply Chain • Concentrate on well-understood products • Understand how to add value • Formal but flexible organization

5. Attributes of Successful Supply Networks • Skilled and aggressive management • Proper incentives and penalties • Extensive documentation at all levels • Third party quality evaluation

7. High initial premiums induce innovation, but premiums decrease as supply increases Marketing alliances enable producers to capture added value due to: high • Economics of • scale (logistics) • Rapid response • Single contract low • Improved skills • and knowledge • of members Added cost of producing a specialty crop time 0 10 • Bargaining power Marketing Alliances Capture Added Value For Specialty Crops

8. Value to End User • One-stop shopping • Consistency of product • Focused technical services • Dependability • In-house research • Documentation of process

9. Certification • Unbroken chain of documentation • Third party verification of process • Customer confidence

10. Certification • Standard procedures where possible • Redundant data collection, records • Primary example is ISO 9000 • Testing becomes confirmatory

11. Value to Producer • Capture emerging opportunities • Reputation • Bargaining power • Shared production information • Increased efficiency • Input purchasing

12. Value to End-User & Producer • Added value to product • Eliminate switching costs • Volume logistics and support • Inventory management, support • E-business capability