Retailers purchase products from suppliers in bulk locally or internationally with the goal of reselling them to customers who use the produce directly as food or as raw materials. The efficiency of this supply chain is necessary for adequate food supply and other vital economic reasons. However, it is not all sunshine and rainbows for buyers of agricultural produce in the market. These buyers often face a wide range of challenges in the course of their agricultural product-based transactions. Here are the top five challenges faced by buyers that we have identified.
Finding a consistent supplier
Getting a trusted supplier/producer that will consistently supply you with high-quality products can be a challenge. As a buyer, you need to be assured that you are getting your money’s worth every time you make a purchase. Finding suppliers that can consistently deliver good quality agricultural produce at all times can save you a lot of stress. You are confidently at ease because you know that your supplier is reliable and is only a call away even in very uncomfortable situations. Consistent supply builds trust and strengthens the relationship between the buyer and supplier/producer.
Efficient and fast delivery
Buyers want efficiency when it comes to getting the products they ordered. You want to be able to order for and get them as soon as possible. Buyers find it very discouraging when they have to wait for several days before an order is fulfilled or are told that they have to pay extra for delivery. Producers/suppliers should be able to adopt efficient delivery systems that ensure the suppliers always get their orders delivered at the agreed time.
Poor storage
Although agricultural products are perishable and seasonal, they remain in demand all year round. Therefore, buyers (especially retailers) that purchase these kinds of products must have capable warehouses that are in good condition. This ensures that the perishable agricultural products remain well preserved until they reach the final consumer. On the other hand, producers that do not have the right storage facilities are more likely to sell their products at a lower rate. This time around, the lucky buyer gets his products at a cheaper rate and can decide to keep them till they are out of season to sell at a profit.
Multiple middlemen
One of the biggest challenges in the agriculture produce supply chain is the high number of intermediaries between the producer and the final consumer. To get the best price on produce, the best option is to buy directly from the farmer or from a wholesaler. You’ll end up paying more if you’re buying from a retailer that is several steps down the value chain. Basically, the higher the number of intermediaries between the agricultural producer and you, the higher the price you’ll pay for the produce. The challenge of multiple middlemen would have a greater impact on manufacturing companies that intend to purchase products as raw materials for production as well as buyers hoping to resell the produce.
Finding trusted suppliers
These days, it is possible to find suppliers of agricultural products online. However, the anonymity of many online platforms makes it difficult to trust anyone, especially in large money transactions which is usually the case with agricultural produce purchases. Digital technology helps to solve this problem. With an eCommerce platform like ProduceMart, buyers can purchase produce directly from farmers and agricultural suppliers on a secured platform where suppliers are verified and transactions are safe. A unique escrow payment management system has been built into the ProduceMart platform to reduce financial risk for both buyers and suppliers. Visit the ProduceMart website to learn more about our services or connect with us on social media. You can also subscribe to our newsletter for up to date helpful content to better understand the agricultural produce market