The Benefits of Supply-Chain Practice in Developing Countries – Conclusions from an International Workshop

Abstract

Interest in supply-chain management (SCM) in developed countries has grown as consumers demand product quality and integrity that can be achieved only by integrated management from farm to retail shelf. Effective relationships between members of a supply chain have been shown to contribute to improving its efficiency and innovativeness, and enhance its competitiveness. As food security is achieved in developing countries, farmers are seeking to generate income by sale of a more diverse range of products. This trend, combined with increasing urbanisation, population growth, rising standards of living and gradual changes to traditional markets for foodstuffs, has created interest in application of the concept of SCM to market situations in developing countries.
An international workshop (Bali, August 2003) attended by personnel from Asia–Pacific countries associated with projects that had a supply chain dimension reviewed the theory of SCM as it relates to developing countries, and the approaches that are being used to work with local supply-chain members on improving their products and service to meet the demands of markets. A key question considered by workshop participants was the distribution of the benefits which arise from SCM approaches, and the extent to which small farmers and traders share in these benefits. This paper reports on the key conclusions of the international workshop.