Research Article
Author: Will Turner
Building a More Resilient and Adaptive Food Supply Chain in Australia Through Data Analytics
The Australian food supply chain is facing unprecedented challenges. Climate change is causing more frequent and severe extreme weather events, such as floods and fires, which can damage crops, disrupt transportation, and lead to food shortages [1, 2, 3]. The COVID-19 pandemic further exposed the vulnerability of the food supply chain to disruptions. Lockdowns and border closures led to labor shortages, supply chain bottlenecks, and temporary shortages of some imported products [6, 7]. The pandemic also exacerbated food security issues, particularly for people in regional locations who faced challenges accessing healthy and affordable food due to inflexible supply chains and panic buying [8].
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Freight disruptions, such as port strikes and increased shipping costs, add another layer of complexity. These disruptions can lead to delays in accessing essential agricultural inputs, such as fertilizers and machinery, and difficulties in exporting agricultural products, potentially leading to lost market opportunities and decreased revenues [9]. Staff shortages in the food distribution sector, both for warehouse and driver positions, further exacerbate these challenges, leading to delays and disruptions in the delivery of food products [10]. Australia's reliance on road and rail transport for freight movement makes its supply chains particularly vulnerable to disruptions from extreme weather events, as road closures and rail cancellations can severely impede the transport of essential goods like food and fuel [11].
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Inflation is also putting pressure on the food supply chain, with rising input costs, such as fertilizer and fuel, increasing the cost of food production and distribution [12, 13]. This can squeeze profit margins in the foodservice industry, as rising food prices may be difficult to pass on to consumers due to market conditions [14]. While overall food price inflation has eased in recent quarters, some categories, such as cooking oils and fresh produce, have experienced significant price increases due to global pricing pressures and poor weather conditions [15].
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These factors contribute to increased market volatility, making it difficult for companies to predict demand, manage inventory, and ensure the timely delivery of food products. Companies that prioritize cost-cutting over resilience are particularly vulnerable to these disruptions [16]. To survive and thrive in this increasingly complex and unpredictable environment, companies need to adapt quickly. Data analytics offers a powerful tool to build more resilient and adaptive supply chains that can better withstand these challenges............(end of article preview)