Agriculture Reference
In-Depth Information
modest fi nancial performance. Today, the national and international fi nancial markets expect
performance in agriculture comparable to that in other industries if they are going to provide
the agribusiness sector with the funding needed for expansion, growth, consolidation, tech-
nological advancement, and modernization.
The sheer amounts of funds needed to fi nance the future operations of a company will
continue to increase dramatically. So will the need for managers who understand the tools
and techniques used to source and manage those funds. For most agribusinesses, fi nancial
management will be a critical component of agribusiness management.
Supply chain management
New technologies and concepts are rapidly hitting the workplace. This, in turn, changes the
way agribusinesses do what they do. The push for quality, the drive for lower costs, changes
in the supply chain, and general pressures to be more effi cient in meeting consumer demands
are swiftly altering the production and distribution activities of agribusiness.
Supply chain
management
focuses on these areas and provides the tools managers need to meet these
operations and logistical challenges. As a result, supply chain management has come to the
forefront as a key management function for the agribusiness manager.
Operations management
focuses on the direction and the control of the processes used
to produce the goods and services that we buy and use each day. It involves several interre-
lated, interacting systems. Operations management involves the strategic use and movement
of resources. For instance, a snack food factory begins its process with corn from a food-
grade corn producer and ends with tortilla chips, corn chips, crackers, etc. Managers must
worry about issues of scheduling, controlling, storing, and shipping as the corn moves from
the producer's truck to the supermarket.
Logistics management
involves the set of activities around storing and transporting
goods and services. Shipping and inventory costs are huge costs of doing business for many
food and agribusiness fi rms. The logistics management function is focused on new ways to
lower these costs, by fi nding better ways to ship and store product. Given advances in infor-
mation technology, the analytical tools of supply chain management, and improved shipping
technologies, this has been a dynamic area for food and agribusiness fi rms. In addition, the
growth of global markets depends upon the performance of well managed supply chains.
Successful agribusinesses are those who consistently produce faster, better, and cheaper.
The management of logistics in food and agricultural supply chains will become increas-
ingly focused on building such time-based advantage. Quicker response to consumer needs,
faster delivery times, shorter product development cycles and more rapid recovery after
service problems are all components of time-based advantage in supply chain management.
At the same time, there is an incredible push for quality, safety, and integrity in food system
production processes. Effective supply chain management will continue to be crucial in the
successful execution of any strategic plan for agribusiness fi rms.
Human resources management
In the end, management is about people. Without the ability to manage the human element—
the resources each business has in its employees—businesses do not succeed. When combin-
ing effi cient management of the marketing/fi nance/supply chain functions of the business,
with the thoughtful management of the human side of the business, managers are on the road
to successful implementation of their strategy.
