Increasing Capacity Exploitation in Food Supply Chains Using Grid Concepts

Abstract

Food supply chains today are characterized by fixed trade relations with long term contracts established between heterogeneous supply chain companies. Production and logistics capacities of these companies are often utilized in an economically inefficient manner only. In addition, increased consumer awareness in food safety issues renders supply chain management even more challenging, since integrated tracking and tracing along the whole food supply chain is needed. Facing these issues of supply chain management complexity and completely documented product quality, this paper proposes a full lifecycle solution for dynamic capacity markets based on concepts used in the field of Grid [1], like management of Virtual Organization (VO) combined with Service Level Agreement (SLA). The solution enables the cost-efficient utilization of real world capacities (e.g., production capacities or logistics facilities) by using a simple, browser-based portal. Users are able to enter into product-specific negotiations with buyers and suppliers of a food supply chain, and to obtain real-time access to product information including SLA evaluation reports. Thus, business opportunities in wider market access, process innovation, and trustworthy food products are offered for participating supply chain companies.