A Case Study of Supply Chain Management in Food Industry with Implementation of Backward Integration

Abstract

Inventory systems are a set of operations that support transforming raw materials into finished goods and then distribute them to customers through a well-organized supply chain system according to customer’s need. This system’s major components are purchasing, distribution, and integration. Purchasing is linked to the relationship between the buyer and the supplier. The term “distribution” refers to the process of moving something from one location to another. This relates to different types of organisation that considers functions like Purchasing, Operation and work coordination. Functions such as Vertical Integration, Horizontal Integration, Forward Integration and Backward Integration, etc and Integration can all be viewed as parts of standard organisation.The main aim of this present research paper is to reduce the cost of dehydrated potato in the branded product Bikaneri mixture. This Involved redesign of the supply chain to reduce the cost of uncovered dehydrated potato. Change of organisation methods to achieve this by reconsideration of contract cultivating strategy. Agreement development is a notion of Purchasing that is employed by agribusiness leaders on an ongoing basis. As a result the cost of producing dehydrated potato has been reduced from Rs. 4880000 to Rs. 4573423 per annum, resulting in an improvement of 6.5 percent profit margin for the firm.