Logistics Support for Agrobusiness in Context of the Supply Chain of Perishables
1322 WordsJul 14, 20186 Pages
Bangladesh economy is primarily dependent on agriculture. About 84% 0f the total population lives in the rural areas and is directly or indirectly engaged in a wide range of agricultural activities. Agriculture contributes about 20.29% to the country’s GDP (23%) About 43.6% of the labor force is employed in agriculture with about 57% being employed in the crop sector.
Bangladesh has resource endowments to develop agro-based industries. It has rich alluvial soil, a year-round frost-free environment, available water and an abundance of cheap labor. Increased cultivation of vegetables, spices and tropical fruits now grown in Bangladesh could supply raw materials to local agribusiness for both domestic and export markets.…show more content…
The reverse channels are considered to be within the scope of logistics planning and control.
Salient Issues and Impediments SME Agri food manufacturers observe that the customers increasingly expect higher quality and service and some customization. The customers perceive fewer real product differences and show less brand loyalty. They obtain extensive product information from the Internet and other sources, which permit them to shop more intelligently. They are showing greater price sensitivity in their search for value.
SME manufacturers in Bangladesh are facing intense competition from domestic and foreign brands, which is resulting in rising promotion costs and shirking profit margins. They are being further buffeted by powerful retailers who command limited shelf space and are putting out their own store brands in competition with national brands. For this store-based retailers are suffering. Small retailers are succumbing to the growing power of giant retailers and `category killers. Store-based from catalog houses, direct-mail firms, newspaper, magazine, and TV direct-to-customer ads home shopping TV and e-commerce on the Internet. As a result, they are experiencing shrinking margins. In response, entrepreneurial retailers are building entertainment into stores with coffee bars, lectures, demonstrations, and performances. They are marketing an experience rather than a product assortment.