Vasant Farm Fresh: Reducing Food Wastage
(7 pages of text)
In June 2015, Vasant Farm Fresh (VFF) was creating a supply chain in Ahmedabad, India, to integrate farmers with retailers and provide fresh produce to customers. Fruits and vegetables have a short shelf life, harvesting operations tend to be labour intensive, and produce quantity is unlikely to grow substantially. To increase the shelf life of fresh produce, farmers need storage facilities, such as refrigerators or cold-water vessels, to store freshly harvested produce. VFF established a collection centre to aid farmers in selling their produce and in receiving higher returns. The collection centre was close to the farms so that the produce could be distributed to the agricultural produce market committee market and to VFF’s new retail venture, Vasant Veggies. However, wastage was still considerable even after the centre was established. The founder of Vasant Veggies must identify the optimal procurement quantity for fresh produce.
This case can be used at the advanced undergraduate- or graduate-level program, in courses on operations management, logistics management, supply chain management, supply chain analytics, or business analytics. It can also be used in an executive education program for courses on food supply chain management, business (or supply chain) sustainability, or logistics management. The case discusses the procurement challenges in managing farm-to-fork operations within an emerging economy where farmers are marginalized. After working through the case and assignment questions, students will have developed their ability to
- explain fresh produce supply chain operations, the role of intermediaries, and challenges in managing wastage from farm to fork;
- apply the newsvendor model to determine optimal procurement quantities and limit wastage; and
- explain how managing the shelf life of produce via a collection centre can limit wastage.
India, Small, 2015
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