Supply Chain Management in The Milk Industry - Essay Example

Transportation of milk is the major key logistic that challenge the supply chain of milk. A logistic like transportation ensures that the milk gets to the consumer in time, at a fair cost, at the right place, and the product is of the best quality. Different methods of transport of the milk determine the achievement of the above four elements of logistics. Transport of milk by road is not the best method since it causes unreasonable delay due to traffic jam and its slow means thus the milk perish.

Consequently, the temperature is hot in a vehicle, and thus road means is only for short distances. Rail transport of milk is the worst because milk is a perishable good and, thus the slow nature of this transport way can cause loss considering time is of great essence in business. Transport by sea ship can also be a bit inconvenient because it may take long before the milk gets to the market or the distributors and can also temper with the cool temperature needed for milk. Air transport is the best convenient for most perishable goods like milk since it is fast, so the product reaches the customer in time.

It preserves the cool temperature of the milk and thus the quality is not tempered ( Altekar 2005). Another great challenge in the supply chain in milk industry is the competition from other dairy industries. Unhealthy market competition results in the occurrence of great loss to a retailer or manufacturer who occasionally lowers the product price to match that of his competitors.