In a time when digital transformation is a popular term across various industries, traditional supply chains might appear as remnants from a past age. With technological progress, particularly the growth of automation and blockchain, one might think that traditional supply chain methods would have disappeared by now. Yet, traditional supply chains not only exist; they continue to thrive. This raises the question: Why? Let’s delve into the reasons behind the persistence and relevance of traditional supply chains in today’s fast-paced market.
Foundations of Trust and Reliability
Traditional supply chains, built on established methods and enduring relationships from farmers to consumers, operate seamlessly with minimal disruptions. The stability and reliability of this network, honed over years, can pose initial challenges for new tech-driven models aiming to match its efficiency.
Compliance, Not Compromise
Traditional supply chains in regulated industries like food and beverage, pharmaceuticals, and aerospace excel in compliance. Standardized procedures ensure adherence to safety norms and quality assurance. While technology boosts efficiency, traditional practices’ meticulous attention to detail ensures unwavering regulatory compliance, especially in the food and beverage sector.
Nurturing Local Economies, Fostering Growth
Traditional supply chains are essential for local economies, fostering growth through community engagement. They create jobs, stimulate consumer activity, and support ancillary industries, contributing to sustainable development and resilience. This localized approach embodies a professional ethos that champions grassroots economic prosperity.
What happens when they break down?
“We can’t replace the traders or agents from this traditional supply chain ecosystem, they are playing a significant role, and they will” – Shashank Singh (co-founder at POSHN). Obviously, an agent is a key player in this supply chain ecosystem, as most of the products that we use on a daily basis are just raw materials until they are procured by the agents for the first time and converted into finished products for the second time.
When traditional supply chains fail, the consequences are significant, impacting production, distribution, and customer satisfaction. Any disruptions can lead to delays and shortages, causing price cuts and low margins for distributors and agents. Amidst changing global trade dynamics and the need for sustainability, there’s a call for revolutionizing agri-trade. This means embracing innovative technologies and practices that prioritize ethical sourcing, environmental stewardship, and fair compensation. Collaboration among governments, businesses, farmers, and consumers is essential to build a supply chain that is profitable, ethical, and resilient. Only through collective action and innovation can we create a better future for all in agri-trade.