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30ТРАНСПОРТ И МЕХАНИКА
CHALLENGES AND OPPORTUNÍTÍES OF IMPLEMENTÍNG SCOR MODEL ÍN AGRICULTURAL SUPPLY CHAÍN MANAGEMENT
ALI GOJAYEV AKBAR
Baku Engineering University Logistics and Transport Technologies department Khirdalan, Azerbaijan
Abstract: Agriculture supply chain management (SCM) is responsible for the production and distribution of all fruits and vegetables, animal-based products and more. Agriculture supply chain includes farmers, transporters, warehouses, retailers, suppliers and consumers. It also includes new product development, operations, distribution, finance, marketing and customer service. A coordinated supply chain involves structured relationships among producers, traders, processors and buyers
However, sometimes this chain faces numerous challenges, including supply chain inefficiencies, lack of transparency, and limited access to markets. The Supply Chain Operations Reference (SCOR) model has been used successfully in various industries to improve supply chain management. The purpose of this paper is to explore the challenges and opportunities of implementing the SCOR model in agricultural supply chain management.
Keywords: logistics, supply chain management, agricultural supply chain management, The SCOR model
Introduction
Agriculture is an important sector that performs a widespread role in food security, economic development, and poverty alleviation.
However, agricultural supply chains face several challenges, along with inefficiencies, loss of transparency, and limited access to markets. The complexity of agricultural supply chains makes it hard to optimize their performance. The SCOR model is an established method that has been used succesfully in various industries to enhance supply chain management. The model affords a complete framework for analyzing and enhancing supply chain performance.
The SCOR model combines elements of business process engineering, metrics, benchmarking, leading practices, and people skills into a single framework. Under SCOR, supply chain management is defined as the integrated processes of PLAN, SOURCE, MAKE, DELIVER, and RETURN—from the supplier's supplier to the customer's customer [1]. This paper explores the challenges and opportunities of implementing the SCOR model in agricultural supply chain management.
Literature Review
The agri-food chain encompasses the individuals and/or businesses involved in the agricultural production and processing of food, encompassing production, processing, storage, trading, distribution and consumption. There are many actors in the agri-food chain who ensure our food moves From Farm-to-Fork
Waste streams , Healthy people Distribution
Figure 1: The Agri-Food Chain (The European Food Information Council - EUFIC)
Primary Producers
Primary producers in agricultural food supply chain management (SCM) are individuals or organizations that are responsible for the initial production of raw materials or agricultural products. They are typically the first link in the supply chain and include farmers, ranchers, fishermen, and other agricultural producers.
The role of primary producers in agricultural food SCM is critical as they are responsible for producing the raw materials that are necessary for the production of food products. They play a significant role in the quality and safety of food products, as the quality of the raw materials can have a significant impact on the final product.
Processors and Packaging
Processors are businesses that transform raw agricultural products into processed goods such as flour, sugar, cheese, and canned fruits and vegetables. They add value to the raw materials through a variety of methods, including sorting, grading, washing, and packaging. By processing the raw materials, they create new products that are more valuable and desirable to consumers, which can lead to increased profits for all stakeholders in the supply chain.
Packaging is also an important aspect of SCM in agriculture. Packaging refers to the process of designing and producing containers or wrapping materials to protect, preserve, and transport products. Packaging helps to ensure that products reach consumers in good condition, preserving their quality and safety.
Effective packaging also plays a role in marketing and branding. Packaging can be designed to catch the consumer's attention and create a positive image of the product. Well-designed packaging can help to differentiate a product from its competitors and increase its appeal to consumers.
Distribution
Distribution management manages the supply chain for a firm, from vendors and suppliers to manufacturer to point of sale, including packaging, inventory, warehousing, and logistics. Adopting a distribution management strategy is important for a company's financial success and corporate longevity.
Marketing
It helps companies and their partners become more focused on customers rather than on the production process. By improving communications, support and collaboration, marketing helps increase supply chain efficiency and create a single extended enterprise with a strong competitive edge.
ОФ "Международный научно-исследовательский центр "Endless Light in Science"
Consumers
Consumers mark the end of the agri-food chain. Consumers can have an influence on the agri-food chain through their buying choices, strongly influenced by food availability, income and their culture, religion, physical, social and economic surroundings.
Methodology
The research methodology will focus on agricultural supply chain management system and analyze the challenges and opportunities of implementing the Supply Chain Operations Reference (SCOR) model.
Managing supply chains requires an integral approach in which chain partners jointly plan and control the flow of goods, information, technology and capital from 'farm to fork', meaning from the suppliers of raw materials to the final consumers and vice versa.
The inefficiencies in agri-food supply chains result in high transaction costs, poor quality, and limited access to markets. The SCOR model is a supply chain management framework that has been used successfully in various industries to improve supply chain performance. The SCOR model presents a structured approach for analyzing and improving supply chain processes. However, the implementation of the SCOR model in agricultural supply chains faces some challenges.
Plan Planning product ¡oil
Chocking inventory
Son ft с Ordering ruw materials
1 Hire lias i rig support materials
Accepting raw materials
Raw material inspection
Make Production process
Product inspection
Packitting product
Storing product
L>eli\'t?ry Product delivery to customers
Billing to customers
Return Identify returns product
Returning raw materials to suppliers
Figure 2. The SCOR based Supply Chain Activity Mapping SCOR Supply Chain Activities [2]
The main challenges:
The implementation of the SCOR model in agricultural supply chains faces several challenges. Firstly, the model assumes a high degree of supply chain visibility, which is not always the case in agricultural supply chains. Agricultural supply chains are often fragmented, with limited communication and coordination between stakeholders. This makes it difficult to obtain accurate and timely data on supply chain processes.
Secondly, the SCOR model requires a high degree of standardization in supply chain processes. However, agricultural supply chains are often characterized by diverse production systems, varying quality standards, and differing regulatory environments. This makes it difficult to standardize supply chain processes across the agricultural sector.
Thirdly, the SCOR model assumes a high level of technology adoption, which may not be feasible in agricultural supply chains. Agricultural supply chains often involve small-scale farmers who have limited access to technology and finance. This makes it challenging to implement technology-based solutions to improve supply chain performance.
Opportunities:
Despite the challenges, the implementation of the SCOR model in agricultural supply chains presents several opportunities. Firstly, the model provides a comprehensive framework for analyzing and
improving supply chain performance. This can help to identify bottlenecks and inefficiencies in agricultural supply chains and provide a structured approach to address them.
Secondly, the SCOR model can facilitate communication and coordination between stakeholders in agricultural supply chains. The model provides a common language and framework for stakeholders to collaborate and improve supply chain performance. The SCOR model is a multi-level hierarchy structure of business processes with a vast library of metrics and practices that can be relevant to one or many business processes. [3]
Thirdly, the implementation of the SCOR model in agricultural supply chains can help to enhance supply chain transparency. As we know , transparency requires develop strong working relationships with your suppliers. [4] .The model provides a structured approach for tracking and monitoring supply chain processes, which can help to identify and address supply chain inefficiencies and improve transparency.
Conclusion
In conclusion, the challenges and opportunities of implementing the SCOR model in agricultural supply chain management are complex and multifaceted.[5] The SCOR model provides a structured approach for analyzing and improving supply chain performance, which can help to address the inefficiencies and limitations of agricultural supply chains. However, the implementation of the SCOR model in agricultural supply chains faces significant challenges, including limited supply chain visibility, lack of standardization, and limited technology adoption. These challenges must be addressed for the SCOR model to be successful in improving agricultural supply chain performance. Nevertheless, the implementation of the SCOR model in agricultural supply chains presents several opportunities, including facilitating communication and coordination between stakeholders, enhancing supply chain transparency, and providing a comprehensive framework for analyzing and improving supply chain performance. Overall, the SCOR model has the potential to improve the efficiency, effectiveness, and sustainability of agricultural supply chains, which is crucial for achieving food security, economic growth, and sustainable development. Further research is needed to explore the specific challenges and opportunities of implementing the SCOR model in different agricultural contexts and regions.
REFERENCES
1. Supply chain excellence A Handbook for Dramatic Improvement Using the SCOR Model Third Edition Peter Bolstorff and Robert Rosenbaum
2. https://www.researchgate.net/figure/SCOR-based-Supply-Chain-Activity-Mapping-SCOR-Supply-Chain-Activities_tbl2_332081265
3. https://www.linkedin.com/pulse/scor-model-start-here-develop-diagnose-supply-chain-eric
4. https://www.shopify.com/enterprise/supply-chain-transparency
5. https://www.gep.com/blog/technology/supply-chain-management-how-to-overcome-challenges
