Supply Chain of Rice- Distribution Stage Essay

957 WordsMay 23, 20154 Pages
DISTRIBUTION Rice is one of the worlds most consumed staple food. It is therefore distributed to international markets. The supply chain processes begins with the paddy farmers who supply paddy to the rice processing companies it then moves to wholesalers. The rice is distributed through distribution centres to retailers or industrial buyers. The rice needs to be moved throughout the supply chain process. There is a need for different modes of transport between the processes. The supply chain can become more efficient with some changes. The rice can either be supplied directly or through intermediaries, it depends on the type of farmers and the productivity. The farmers can be categorised into large or small land holding farmers, they are also categorized on the kind of production either organic or inorganic farmers (Sharma, Giri & Rai, 2013) Both large land holding and small land holdings use same distribution strategy for organic crops of paddy. The farmers send the paddy directly to the rice processing company, without any involvement of any intermediary (Sharma, Giri & Rai, 2013). The large land holding farmers most frequently directly supply their paddy to the rice processing companies this cuts the middlemen cost and increases the revenue. It is also cheaper for the rice processing companies to source directly from the farmers there is a reduction in their procurement cost, logistics cost, intermediary cost and the supply chain cost. Large land holding farmers are sometimes not able to directly supply the inorganic paddy because of: low demand, or the quantity supplied has not been prepared for sales. Theses farmers require an indirect mode of distribution, which involves various forms of intermediaries to sell the product (Sharma, Giri & Rai, 2013). Mass distribution of rice is next, which is conducted by wholesalers who export rice to

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