A structured review of upstream supply chain process in dairy industry

Abstract

The diary supply chain, as all other agri-businesses, is complex. Technically, the diary chain starts with the raw milk production & ends when other processors, institutions & consumers utility products which are created in the value chain. As consumer’s habits and decisions are not static, it imposes urgency for change in the supply chain in order to have consumers ever-changing needs met. However, this ever-changing demand has a direct effect on the people within the supply chain, they have to change (or) adjust accordingly. Supply chain is an integrated manufacturing process wherein raw materials are converted into final products, then delivered to customers. At its highest level, a supply chain is comprised of two basic integrated processes. 1. The production planning and inventory control. 2. The distribution and logistics process. Dairy is considered as the important source of income whose agriculture depends upon monsoon. Indian dairy is recognized as one of the instruments for social & economic development. The countries milk supply comes from millions of small producers, dispersed throughout the rural areas. The major challenge for the dairy sector is undoubtedly to raise milk production to meet the increasing demand that arises from almost inevitable expansion of population & presumably growth of income.