A Shift Towards Diversification in Food Supply Chains

A Shift Towards Diversification in Food Supply Chains

By In Industry News On 26th January 2024

To make the world's food supply stronger and more secure, food shippers and retailers are spearheading initiatives to diversify sourcing locationsRecognising the vulnerabilities associated with concentrated production, industry leaders are championing a shift towards a more robust and diversified approach.

Pawan Joshi, the Senior Vice President of Products and Strategy at e2open, a supply chain management platform, highlights the need for a departure from the strategy of producing food at the lowest cost, which has inadvertently led to a precarious reliance on specific regions. Over the past few decades, a natural concentration of food production has occurred, making supply chains more fragile in the face of disruptions like floods, droughts, or conflicts.

Now, the industry is responding with proactive measures. The focus is on diversification, particularly during times of uncertainty. Mr. Joshi emphasises the importance of having multiple sourcing locations worldwide so that if one region faces constraints, others can seamlessly step in.

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