DCA Markets: director in chain integration
Agricultural
chains are sometimes long. Between the planning of the production and the final
consumption is often months. The proper coordination of supply and demand in
terms of quantity, quality, price and delivery times is not easy. Agricultural
markets are often supply-driven, so not always fits in well with the demand of
that moment.
All in all,
this leads to surpluses and alternately shortages of certain types of product.
A phenomenon that it is often called the the pig cycle
If
different links in the chains are better aligned with each other and focus on
the final demand, the pig cucle can be broken in principle. This also provides
a cost advantage. That is easiest in a closed chain, where one party literally
owns all links in the chain. This is true for For example, the restaurant chain
Van der Valk in the Netherlands for example, who has beef cattle farms and
vineyards under their own management to serve their customers steak and wine. Planning,
quality, pricing and margin distribution are in one hand.
In other
chains this must be done in mutual consultation
As an independent
director, DCA-Markets offers support in these types of processes through benchmarking
revenues and costs in the column to establish agreements on mutual settlement. Supply
and demand are thus better matched and the quality is better guaranteed. This
method promotes efficiency in the chain and offers room for long-term plans.
Cash flows are therefore higher and more stable. The chain as a whole is
becoming more robust and competitive.
The
challenge in this area plays in various sectors.
Are you
curious how we as DCA approach and guide the above? Or would you like to ‘spar’
with us to solve similar challenges within your company? Then call 0320 269 523 or mail to contact@dca-markets.com