First, Please find attached Article for summarizing (Only 1 page).? Second, is about to explain the topic of just-in-time ‘JIT’ in supply chain management using secondary data through inter

Food supply chain management: systems, implementations, and

future research Ray Zhong and Xun Xu

Department of Mechanical Engineering, University of Auckland, Auckland, New Zealand, and

Lihui Wang Department of Production Engineering,

KTH Royal Institute of Technology, Stockholm, Sweden

Abstract Purpose – The purpose of this paper is to review the food supply chain management (FSCM) in terms of systems and implementations so that observations and lessons from this research could be useful for academia and industrial practitioners in the future. Design/methodology/approach – A systematical and hierarchical framework is proposed in this paper to review the literature. Categorizations and classifications are identified to organize this paper. Findings – This paper reviews total 192 articles related to the data-driven systems for FSCM. Currently, there is a dramatic increase of research papers related to this topic. Looking at the general interests on FSCM, research on this topic can be expected to increase in the future. Research limitations/implications – This paper only selected limited number of papers which are published in leading journals or with high citations. For simplicity without generality, key findings and observations are significant from this research. Practical implications – Some ideas from this paper could be expanded into other possible domains so that involved parties are able to be inspired for enriching the FSCM. Future implementations are useful for practitioners to conduct IT-based solutions for FSCM. Social implications – As the increasing of digital devices in FSCM, large number of data will be used for decision-makings. Data-driven systems for FSCM will be the future for a more sustainable food supply chain. Originality/value – This is the first attempt to provide a comprehensive review on FSCM from the view of data-driven IT systems. Keywords Case studies, Food supply chain management, Review, Data-driven systems, Implementations, IT systems Paper type Literature review

1. Introduction Food industry plays an important role in providing basics and necessities for supporting various human activities and behaviors (Cooper and Ellram, 1993). Once harvested or produced, the food should be stored, delivered, and retailed so that they could reach to the final customers by due date. It was reported that about one-third of the produced food has been abandoned or wasted yearly (approximately 1.3 billion tons) (Manning et al., 2006). Two-third of the wasted food (about 1 billion tons) is occurred in supply chain like harvesting, shipping and storage (Fritz and Schiefer, 2008). Take fruit and vegetables for example, such perishable food was wasted by 492 million tons worldwide in 2011 due to the

Industrial Management & Data Systems

Vol. 117 No. 9, 2017 pp. 2085-2114

Emerald Publishing Limited 0263-5577

DOI 10.1108/IMDS-09-2016-0391

Received 22 September 2016 Revised 11 November 2016 Accepted 25 December 2016

The current issue and full text archive of this journal is available on Emerald Insight at: www.emeraldinsight.com/0263-5577.htm

© Ray Zhong, Xun Xu and Lihui Wang. Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article ( for both commercial & non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode

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inefficient and ineffective food supply chain management (FSCM) (Gustavsson et al., 2011). Therefore, FSCM is significant to save our food.

FSCM has been coined to depict the activities or operations from production, distribution, and consumption so as to keep the safety and quality of various food under efficient and effective modes (Marsden et al., 2000; Blandon et al., 2009). The differences of FSCM from other supply chains such as furniture logistics and supply chain management are the importance reflected by factors like food quality, safety, and freshness within limited time, which make the underlying supply chain more complex and difficult to manage (La Scalia et al., 2016). The complexities are significant in the case of perishable products where their traversal time through FSCM and the use warehouses or buffers against demand and transportation variability are severely limited. Additionally, as the coordination from worldwide scale, the complexities have been compounded, thus, the focus from a single echelon such as food production was shifted to the efficiency and effectiveness of holistic supply chain. That means the resources like trucks, warehouse facilities, transportation routes, and workers within the food supply chain will be used efficiently so as to ensure the food quality and safety through effective efforts such as optimization decisions (Wu, Liao, Tseng and Chiu, 2016).

As the development of cutting-edge technologies, FSCM has been widely recognized both by practitioners and academia. Information technology (IT) has brought dramatic improvements to FSCM in terms of automatic food processing like cleansing and packing as well as freshness storage (King and Phumpiu, 1996; Caswell et al., 1998; Wang et al., 2015). However, the discipline of FSCM is still incapable of addressing many practical real-life challenges satisfactorily. The reasons for the inadequacy are attributed to low operational levels from farmers (Folkerts and Koehorst, 1997), information obstacle among different stakeholders (Caswell et al., 1998), and inefficient decision-making systems/models (Ahumada and Villalobos, 2009). Strategic decision-makers require comprehensive models to increase total profitability while data input into those models are usually ignored in most of traditional myopic models. In order to address current challenges, it is necessary to investigate better approaches to accommodate emerging global situations after taking a critical look at the current FSCM practices and conditions.

This paper selects total 192 articles from 1993 to 2017 by searching the key word “FSCM” in Google Scholar (until November 2016). Special concentration is placed upon the data-driven IT systems which are used for facilitating the FSCM with particular aims of re-designing and re-rationalizing current supply chain to a globally integrated fashion for food industry. Among these articles, there are seven reports from website, 25 papers are case studies, and the others are typical research papers related to FSCM. Most of these reviewed papers are from leading journals such as International Journal of Production Economics (19), European Journal of Operational Research (4), Journal of Cleaner Production (10), Food Control (13), Supply Chain Management: An International Journal (7), Journal of Operations Management (3), British Food Journal (4), etc. Figure 1 presents the selected papers in a yearly view. As demonstrated, there is only a few studies about data-driven IT systems in FSCM in early 1990s. Then, the related papers are fluctuated slightly from 2000 to 2014. Currently, as showing from the prediction curve, there is a dramatic increase of research papers related to this topic. Looking at the general interests on FSCM, the quantity can be expected to increase in the future.

This paper categorizes related topics in a hierarchical organization. Figure 2 presents the scope of the review that each focus is dissected to organize this paper. Section 2 talks about the supply chain management for food industry that covers three themes such as frameworks, models, and worldwide movement. Section 3 presents two major IT systems – traceability systems and decision-making systems for FSCM. Section 4 demonstrates FSCM implementations in terms of reported cases and data-driven applications. Section 5 summarizes the current challenges and future perspectives in

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four aspects: supply chain network structure, data collection, decision-making models, and implementations. Section 6 concludes this paper through identifying some insights and lessons from this investigation.

2. Supply chain management for food industry 2.1 Frameworks A framework for FSCM is a basis for manufacturing, processing, and transforming raw materials and semi-finished products coming from major activities such as forestry, agriculture, zootechnics, finishing, and so on (Dubey et al., 2017). In order to identify the

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Supply Chain Management for Food Industry

Current Challenges and Future Perspectives

Implementation of Food Supply Chain Management

IT Systems for Food Supply Chain Management

Frameworks

Models

World-wide Movement

Traceability Systems

Decision-making Systems

Reported Cases

Data-driven Implementations

Supply Chain Network Structure

Data Collection

Decision-making Models

Implementations

Figure 2. Organization of

this review paper

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relationships among different items, interpretive structural modeling (ISM) was used to establish a hierarchical framework (Faisal and Talib, 2016). This framework helps users to understand the interactions among logistics operators in a food supply chain. ISM-enabled framework was also used to support risk management in identifying and interpreting interdependences among food supply chain risks at different levels such as first-tier supplier, third-party logistics (3PL), etc. (Colin et al., 2011). It is observed that this framework was proven as a useful method to structure risks in FSCM through a step-by-step process on several manufacturing stages. Information plays an important role in making FSCM more efficient. In order to assess the information risks management, an ISM based framework was proposed by twining graph theory to quantify information risks and ISM to understand the interrelationships in FSCM (Nishat Faisal et al., 2007). As the global FSCM is emerging with international collaborations, ISM-enabled framework confines to explain causal relationships or transitive links among various involved parties. A total interpretive structural modeling was then introduced to analyze some enablers and barriers of FSCM (Shibin et al., 2016). In this paper, ten enablers and eight barriers are examined by separate frameworks to further understand the interactions within a dynamic era of globalization FSCM.

Value chains play a critical role in FSCM to benefit the producers and consumers. Stevenson and Pirog (2008) introduced a value chain framework for strategic alliances between food production, processing and distribution which seek to create more value in the supply chain. The proposed framework concerns about food supply chain economic performance that correspond to the organization, structure, and practices of a whole supply chain. Food traceability has been widely used in the last few decades with large number applications. However, frameworks for a general or common implementation are scarcely reported. To label whether a framework with respect to food traceability application, Karlsen et al. (2013) observed that with a common framework, traceability is prone to be similar and implementation processes are more goal-oriented and efficient. Thus, Regattieri et al. (2007) presented a general framework and used experimental evidence to analyze legal and regulatory aspects on food traceability. They designed an effective traceability system architecture to analyze assessment criteria from alphanumerical codes, bar codes, and radio frequency identification (RFID). By integrating alphanumerical codes and RFID technology, the framework has been applied for both cheese producers and consumers.

Currently, coordination in the food supply chain from production to consumption is significant to ensure the safety and quality of various food. Take agri-food supply chain for example, Hobbs and Young (2000) depicted a conceptual framework to achieve closer vertical collaboration in FSCM using of contracting approaches. This work has critical impacts on transaction cost economics by developing a closer vertical coordination. In an international food supply chain, Folkerts and Koehorst (1997) talked about a framework which integrates the chain reversal and chain management model to make vertical coordination. In their framework, an analytical service designed particularly for benchmarking food supply chain projects is used so that an interconnected system of high performance and effectiveness are achieved as an integrated supply chain. Facing a global FSCM, strategic decision-making is important since the profitability of an entire chain could be increased by the holistic efforts from an efficient framework. To this end, Georgiadis et al. (2005) presented a system dynamics modeling framework for the FSCM. In this framework, end-users are able to determine the optimal network configuration, inventory management policy, supply chain integration, as well as outsourcing and procurement strategies. Collaboration is becoming more of a necessity than an option despite some barriers which deteriorate coordination among enterprises in food industry all over the world. Doukidis et al. (2007) provided a framework to analyze supply chain collaboration in order to explore a conceptual landmark in agri-food industry for further

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empirical research. It is observed that, from this framework, supply chain collaboration is of critical importance and some constraints such as time and uncertainties arise due to the nature of agri-food industry.

2.2 Models Globalization of food production, logistics and consumption have resulted in an interconnected system for FSCM whose models play crucial role in ensuring food products of high and consistent safety and quality (Choi et al., 2016). In this section, we present related work using various models for considering five major aspects like food quality, supply chain efficiency, food waste, food safety, and value chain analysis. An incomplete list of the leading authors covering these five aspects is shown in Table I. In order to better demonstrate the literature, key contributions for each paper are highlighted at the last column.

From Table I, it could be observed that food quality, supply chain efficiency and food safety are more concerned in these models. And multi-objectives are commonly considered, for example, food quality and safety are integrated in the decision models. However, food waste is specifically looked at without twining with other aspects. Recently, supply chain efficiency and value chain analysis are placed special emphasis since the global FSCM is becoming more and more significant.

2.3 Worldwide movement Current movements on FSCM frommajor districts are presented in this section which covers Europe, North America, and Asia Pacific.

2.3.1 Europe. The food industry is the EU’s largest sector in terms of employed people and value added. From one report about the data and trends of EU food and drink industry 2014-2015, the employment is 4.2 million people with 1.8 percent of EU gross value added and the turnover is €1,244 billion (FoodDrinkEurope, 2015). The turnover is increased by 22.32 percent compared with that from the year 2011 (€1,017 billion). Despite the significant increase of turnover, European Commission recently pointed out that the EU food industry is facing a decrease in competitiveness caused by a lack of transparency in food supply chain (European Commission, 2016). In order to enhance global competitiveness, in November 2011, 11 EU organizations like AIM, FoodDrinkEurope, European Retail Round Table (ERRT), CEJA, EuroCommerce, Euro Coop, Copa Cogeca, etc. signed a Supply Chain Initiative document which is based on a set of principles of good practice. After two years, seven EU level associations agreed to implement the principles which have been converted into 23 languages.

Retailers play important roles in FSCM since they are selling thousands of different products each of which has its own supply chain with distinct features and complexities. ERRT, an organization including the CEO’s of Europe’s leading international retail companies conducted a framework of the EU High Level Forum for a better food supply chain that often involves large number of business partners. Under the framework, leading retailers are going to build up a well-functioning and competitive supply chain in maintaining good relationships with their suppliers so as to bring the best and most innovative foods and drinks to the customers (ERRT, 2013). Retailers in EU are also aware that it is their environmental responsibilities to delivery of foods via a more sustainable model by contacting with consumers and suppliers. Thus, in March 2009, in response to the European Commission’s Action Plan on Sustainable Consumption and Production, ERRT set up the Retailers Environmental Action Programme (REAP) which aims to reduce environmental footprint in the food supply chain. REAP not only facilitates the sustainability dialogue with food supply chain key stakeholders, but also stimulates retailers to adopt new FSCM models (European Commission, 2015).

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Model Food quality

Supply chain

efficiency Food waste

Food safety

Value chain

analysis Contributions

Caswell et al. (1998)

X X Proposes a Metasystems-enabled model Enhances product quality Considers the transaction costs and system efficiencies

Vorst (2000) X Introduces a KPIs-based model Assessment of the key impact factors in FSCM

Reiner and Trcka (2004)

X Introduces an improved product-specific supply chain design model Enhances the performance

Gorris (2005) X Introduces a food safety objective model Concerns operational food safety management at different food chains

Beulens et al. (2005)

X X X Introduces a network-based supply chain model Improves the products quality, safety and food chain transparency

Taylor (2005) X X Applies lean value chain improvement Proposes a value stream analysis (VSA) model Uses a multi-echelon structures

Kim et al. (2006)

X Presents a modified three-stage methane fermentation model Reduces the food waste

Manning et al. (2006)

X X Introduces an organizational business model Analyzes the efficiency in the integrated FSCM

Aramyan et al. (2007)

X Illustrates a performance measurement Uses a balanced scorecard model Proposes applicable performance appraisal indicators

Trienekens and Zuurbier (2008)

X X Concern marginal costs and standards Revalue the cost/effectiveness of the food production

Oliva et al. (2008)

X Introduces a system dynamic model Ensures the food quality

Akkerman et al. (2010)

X X X Reviews the literature on related models in strategic network design, tactical network planning, and operational transportation planning

Ruiz-Garcia et al. (2010)

X X Establishes an architectural model Keep the quality and reduce waste

Parfitt et al. (2010)

X Uses a data model Examines losses at immediate post-harvest stages

Marucheck et al. (2011)

X X Presents the operation management theory models and methodologies Examines food safety and values in FSCM

Garnett (2011) X Introduces a model to estimate food-related greenhouse gas emission Improves the total value of food supply chains

(continued )

Table I. List of models for FSCM

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Logistics is a bridge between food retailers and manufacturers. It was reported that, in 2012, there were 24 million people employed in the food supply chain and 21 percent of the employment comes from logistics-related companies (European Commission, 2016). European Logistics Association (ELA) is a federation with over 30 organizations from Central and Western Europe. Recently, in order to achieve green logistics, ELA developed a sustainable supply chain scheme for FSCM (ELA, 2012). From economic, environmental, and social perspectives, this scheme focuses on realistic financial structure, sustainable FSCM, and successful cases implementation which are should be truly sustainable. Take European Logistics Hub, Limburg – a province in the south of the Netherlands for example, high developed logistics facilities and modern logistics infrastructures offer an advanced logistics with lowest supply chain costs and environment impacts (Hemert and Iske, 2015).

Model Food quality

Supply chain

efficiency Food waste

Food safety

Value chain

analysis Contributions

Wu and Pagell (2011)

X Proposes a theory-building model Balances short-term profitability and long- term environmental sustainability

Gustavsson et al. (2011)

X Introduces a hierarchical model Analyzes the food waste within a whole food supply chain

Rong et al. (2011)

X Proposes a decision-making model Uses a mixed-integer linear programming model

Zarei et al. (2011)

X X Uses quality function deployment model Improves the efficiency and increases the food value chain

Zhang and Li (2012)

X X Analyzes an agri-food supply chain management Optimizes internal costs and productivities

Kummu et al. (2012)

X Presents a data analytic model Conducts food waste Examines food wastes’ influences on freshwater, cropland, and fertilizer usage

Zanoni and Zavanella (2012)

X Proposes a joint effects model Considers different objective functions

Yu and Nagurney (2013)

X Proposes a network-based FSCM model Increases the value chain

Aung and Chang (2014)

X X Presents an information-based traceability model Considers safety and quality in the food supply chain

Meneghetti and Monti (2015)

X X Introduces an optimization model Considers specific characteristics Increases the whole cold chain value

Chadderton et al. (2017)

X X Introduces a decision support model Considers site-specific capabilities and supply chain efficiency

Eriksson et al. (2016)

X Proposes an environmental and economic model Enhances the biogas production from food waste Table I.

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Food production as source of FSCM is extremely important in Europe since about 9.12 million people were employed in agricultural industry including planting, harvesting, and so on. There are approximately 1,700 food manufacturers from 13 European countries. European Federation of Associations of Health Product Manufacturers (EHPM) aims to develop a sort of regulatory frameworks throughout the EU for health and natural food. Recently, EHPM is in support of producing the harmonization of health, safety, and qualified aspects for food supplements through an optimization of positive economic impacts on Food Supplements sector in the EU market (EHPM, 2013). Advanced technologies bring large benefit to food industry globally. A food Tech innovation Portal was launched by European Commission to apply innovative technology, such as biotechnology, nanotechnology and information and communications technology (ICT) to help food manufacturers to provide more health, safe, and natural foods (European Commission, 2014).

2.3.2 North America. North America is the second largest food industry in the world with a turnover of about €650 billion in 2013. Take USA for example, from an incomplete report in 2013, there were 40,229 grocery stores with $634.2 billion in revenues, 154,373 convenience stores with $165.6 billion annual sales, and 55,683 non-traditional food sellers with $450 billion turnover (Global Strategy, 2013). Consisting of multi-tiered food supply chains in North America, FSCM is both large and complex so that innovations are highlighted in food industry to meet the steady growing rate of 2.9 percent yearly.

Companies from North America are aggressively viewing new food market with large numbers of potential consumers. Thus, a far reaching and more sophisticated food supply chain is prone to risks caused by disrupted disasters, oil prices’ fluctuations, and political upheavals, which greatly influence food production and transportation (Lan et al., 2016). Using advanced technologies such as bio-tech and ICT, food production and harvesting are innovatively improved (Fraser et al., 2016). Genetically modified organisms for instance with higher productivity and stronger anti-viruses are used in plants, mammals, fish, etc. (Hemphill and Banerjee, 2015).

For innovative warehousing of food, robotics and automation have been adopted in North America in food and beverage supply chain. Given the improved efficiencies in terms of sorting, packing, and processing, funding sources, in recent years, have invested in warehouse automation significantly. In 2012, the US Government granted $50 million to research institutes and universities for robotics aligning with creation of the next generation of collaborative robots from the Obama administration’s National Robotics Initiative (Pransky, 2015). With the assistance from robots, warehouses for food and beverage are the most technologically advanced for facilitating FSCM.

Logistics and transportation are innovatively improved from improving the railroad, flight routes, marine and land roads. North America has the comprehensive and satisfactory logistics network. Currently, Genesee & Wyoming Inc. agreed to acquire Providence and Worcester Railroad Company (P&W) for approximately $126 million to meet customary closing conditions following the receipt of P&W shareholder approval in the fourth quarter of 2016 (BusinessWire, 2016). 3PL plays a major role in food supply chain. The top 3PL and cold storage providers in 2016 are AFN, Niles, Ill., Allen Lund Company, La Canada, Calif., and Americold, Atalanta, Ga. who are the top listed companies using latest technologies in transportation management systems, warehouse management systems (WMSs), and logistics scrutiny systems for a better food supply chain services.

2.3.3 Asia Pacific. China, as the third food and drink producer has a turnover of €767 billion in 2011 which is the largest food entity in this area (European Commission, 2016). As the biggest country in Asia pacific, China has around 400,000 food-related companies. Japan with €466 billion turnover between 2012 and 2013 employs 1.4 million workers.

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India, Australia, South Korea, and New Zealand, as major food producers in this area, their turnovers (2012-2013) are 95, 62, 32, and 27 billion Euro, respectively. It is no debate that this area is the most important food and beverage supplier from its enormous turnovers. However, FSCM in this area is mainly based on sacrificing manpower, for example China used 6.74 billion employees to achieve the total turnover, which is one-third more people than that in the EU.

With small margins attainable in most links of food supply chain in Asia Pacific, consolidation across various food categories and levels of the FSCM was necessary to reduce cost and maximize profits. To this end, a robust logistics and FSCM network program was initiated to enhanced focus on food availability and growing number of organized retail outlets for food supply chain development (Simatupang and Sridharan, 2002). Take India for example, the government proposed a multi-tiered network desi

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