Uncover the link between agro-processing and supply chain management
Delve into the challenges faced in agro-processing
Explore how fleet management can help you solve these challenges
Discover how Cartrack’s solutions are the keys to ultimate efficiency in agro-processing
Let’s define agro-processing
Agro-processing defines all the activities that are carried out to transform a product from raw goods that come from agriculture, forestry or marine life, into a final, usable product.
With an abundance of raw materials, South Africa is fertile ground for a successful and globally impactful agro-processing business. In 2020, agro-processing products made up about 11% of South Africa’s exports, making the global demand and competitiveness of the industry make the country a globally competitive exporter. With an estimated output of R240 billion per year,agro-processing is considered the country's second most important manufacturing sector based on its gross value added.
As fantastic as this sounds, it doesn’t mean that agro-processing is without its challenges. Let’s find out what they are.
What are the challenges faced in agro-processing
South Africa’s agro-processing industry is designed to meet global needs, which means the challenges it faces are greater. Let’s take a look at them:
The storage of raw materials
Since agro-processing is the entire production process, the storage of raw materials used to make final products is important for a successful operation. Unfortunately, it can be a big challenge that affects efficiency, productivity, and the quality of goods provided.
Keeping temperature sensitive goods fresh
To keep your goods fresh during the production process, cold storage facilities need to be used in every stage, including storage and transportation. With the smallest change in temperature, the quality and freshness of these goods can suffer. These goods include:
- Medical products: From medicine components to insulin and medical devices, medical products need to be protected from heat or cold. - Meat: Meat is susceptible to bacterial growth, making keeping it chilled essential in every step of the production process, from the slaughterhouse to the processing and transportation. - Fruit: From the harvesting to the packaging process, fruits need to be kept cool as this prevents them from losing their nutritional value and spoiling.
Because agro-processing is complex, it has a lot of cost-draining stages. These include:
- Storing raw materials:Keeping raw materials stored according to their individual needs ensures freshness and quality. However, catering to this need through every stage of agro-processing can be both challenging and costly. - Manufacturing final goods with raw materials: Manufacturing processes are very complex, which makes keeping processes efficient, safe, and cost-effective important. - Packaging goods:Packaging goods can be quite costly, as the process and materials need to be specific to the product. For example, the containers used for keeping ice cream frozen aren’t the same as the containers used for packaging cool drinks. - Delivering goods to wholesalers, retailers, and restaurants:The final stage of processing is getting the goods to the places where they will be sold. These deliveries can be complex, as routes need to be optimised, drivers need to be trained, and trailers need to be prepared for temperature-sensitive goods.
All these challenges and the duties sound quite familiar, right? This would be correct because they are closely linked to supply chain management.
Unpacking the link between agro-processing and supply chain management
Knowledge is power, and when you’re in supply chain management, this is important to ensuring product availability. In this step, supply chains need to establish the customer demand for the products they will be supplying because this helps them know exactly how much of a certain product they need to order.
Let’s take John, for example, who runs a frozen fruit business. Before he begins planning how he will package his products or where he will sell them, he needs to establish the demand for his product. With this information, he can effectively budget, keep his inventory balanced, and ensure customer needs are always met.
Sourcing:
Also known as procurement, this stage involves finding and purchasing the materials or ingredients you will need to meet customer demand. In this stage, businesses must find suppliers, ensure that the products being purchased meet the company standards, negotiate the price (who doesn’t love some cost savings, right?), and get the right amount of the product or material needed for production.
Let’s go back to John. In this stage of the supply chain, John needs to place orders for fresh fruits based on the customer demand he identified during the planning stage. With this information, he can make sure he orders the right amount of fruit, to ensure he doesn’t lose money due to overstocked goods spoiling.
Production:
In this stage, your raw materials are turned into finished goods by using specialised equipment. This stage involves using information on the total number of products that need to be produced to create finished products that will meet customer needs.
Let’s look at John’s business of frozen produce. In this stage of the supply chain, John takes the fruit that he purchased, and puts it through a quick-freezing process done by using specialised machinery. His decision on how many packages he needs to produce is based on the numbers he recorded during the “planning” stage.
Distribution:
Now that the goods have been manufactured, it’s time for them to move to where they will be sold. This can include supermarkets, garages, convenience stores, and even customers who wish to buy directly from the business.
For John, this step involves using cold chain logistic solutions to transport his frozen fruits from the factory or warehouse to the various places where they will be sold.
Making agro-processing a breeze with a fleet management system
Whether it be two or two hundred vehicles, fleet management helps businesses stay safe, profitable, and efficient, making it important to the overall success of a fleet. A fleet management system simplifies the entire process, making it possible to keep your fleet running at its optimum level from the comfort of your laptop, computer, tablet, or cell phone.
The top three benefits of a fleet management system for your agro-processing business
The beauty of a fleet management system is that it can be tailored to any industry’s individual needs. Let’s look at the big three benefits a fleet management system can bring to your agro-processing business:
1. Improved vehicle and cargo visibility
Whether you’re in the business of providing raw materials to different businesses or you’re delivering your final products to stores, tracking your vehicles is crucial to the efficiency and safety of your agro-processing operation. With access to real-time location updates, you can quickly locate goods, determine their ETAs, instantly spot delays, and improve your vehicle and cargo safety.
2. Your goods stay fresher for longer
Whether it be fresh fruits or cold meats, your temperature-sensitive goods need to be kept fresh during delivery. A fleet management system gives you access to real-time temperature monitoring that helps you spot sudden temperature spikes or dips. This ensures that you can quickly handle these fluctuations before they damage your stock.
3. Improve driver behaviour and cargo safety
Everyone who sits behind the wheel of a fleet vehicle needs to drive responsibly. A fleet management system simplifies monitoring your driver’s behaviour, helping you quickly spot areas for improvement that could potentially damage the business’s functionality and keeping your drivers safe at all times. Regarding agro-processing, improving driver behaviour helps you ensure safe cargo transportation so your goods reach their destination intact.
Do these benefits sound like something you’d like to unlock for your business? Then we have the key to that: It’s Cartrack’s fleet management solutions.
Trust Cartrack’s fleet management solutions to boost your agro-processing operations
Cartrack is an industry leader when it comes to fleet management, so who better to trust with optimising your agro-processing operations. Let’s go through a few of our next-level solutions:
GPS tracking:
Receive real-time updates on the location of your vehicles and equipment with Cartrack’s GPS tracking. Powered by GPS technology, this solution helps you pinpoint exactly where a specific vehicle or heavy machinery is with a simple tap of a button or screen. In the event that your vehicle is hijacked or stolen, our highly-skilled recovery team uses this device to pinpoint your vehicle's location for quick recovery. With an above 90% stolen vehicle recovery rate, your vehicles are in the safest hands.
Geofencing:
Gain detailed insight into your vehicles and equipment usage and location with Cartrack’s geofencing feature. Create virtual boundaries for your vehicles and equipment, and receive instant SMS or email notifications upon entering or exiting them. This helps you create no-go areas for certain vehicles or equipment, preventing them from being used in dangerous areas that could lead to costly, life-threatening accidents.
Driver ID tags:
Ensure only skilled workers are operating vehicles or equipment with Driver ID tags. Each of your drivers receives a tag that is linked to their personal information. To start a vehicle or piece of equipment, the tag needs to be tapped on a sensor inside. If a driver isn’t authorised to operate a vehicle, you’ll receive an instant alert, and the vehicle won't start, lowering the risk of accidents caused by unskilled workers operating equipment.
Delivery:
Streamline your delivery operations with Cartrack's Delivery feature that gives you full insight into delivery operations. Simplify your driver’s tasks by leaving notes on each job assigned with special instructions. This feature also helps you keep your customers in the loop; from notifying them once their driver has started the delivery to sending them a link that allows them to track their delivery in real time, these steps boost customer satisfaction and your brand's image. Add the app’s offline functionality, and your operations run smoothly no matter where you are.
Reefer temperature monitoring software:
Keep your temperature-sensitive goods fresh and long-lasting with Cartrack’s reefer temperature monitoring software. Receive real-time alerts the minute temperature conditions change in your reefer trailers. These alerts can inform you to quickly check in with your drivers, helping you know whether you should send a replacement trailer to complete the delivery and limit profit losses. Spot and analyse trends in temperature fluctuations with our automatically generated reports, helping you pinpoint potential bigger issues within your cold-chain fleet.
In agro-processing, even a few minutes off schedule can be costly. So hit the brakes on unplanned downtime with Cartrack’s preventative maintenance solution. Our technology, which uses advanced analytics, proactively monitors the health of various vehicle components like brake pads. It also creates maintenance plans suited to your fleet's needs, which prevents scheduling maintenance that interferes with your normal day-to-day operations. This increases your fleet’s longevity, reduces the risk of road accidents and keeps your vehicles in the best condition.
