Environmental conditions- The vegetables are subjected to environmental conditions along with occasional recurrence.
High investments- The vegetables require high transport requirements and high investments in logistics processes.
Unbalanced market- There is an unbalanced market power that has large uncertainty in the market.
High traffic costs- The traffic is huge, and logistics costs are of high proportion.
Transportation risk- There is a high risk of vegetable transportation from the manufacturer to the consumer.
Vegetable logistics operation modes in America- The principle of operation is that trading is elective, competition is fair and market costs. The operations occur in four different types. The vegetables are directly sold by the farmers to the large-scale market. The retail enterprise and supermarkets purchase directly from the farmers. The vegetables are sold directly at a labor's market. The distribution is done for large overseas markets.
Vegetable logistics operation modes in Japan- The principle of operation is that the main channel is the wholesale market and auction system is done. They have less land and more people that contribute in difficulty of achieving agricultural logistics. Hence, they minimized the transportation risks of vegetable logistics and established a wholesale market.
Vegetable logistics operation modes in Europe- The environmental conditions in Holland are favorable for vegetable logistics and its distribution. Holland is known for its vegetable cultivations and logistics. The corrosion rate of vegetables is low in Holland that show high output value of vegetable logistics. There is an electronic virtual system for vegetable logistics that connect suppliers, wholesalers, producers, retailers and farmers in a single network.
Inefficient costs- The cost of vegetables is not stable as the production sometimes grows and other times fall.
Lack of storage infrastructure- The conditions of infrastructure is important to preserve the vegetables to deliver in the right condition.
Packaging issues- The vegetables are highly decomposable, and thus it needs appropriate and careful packaging to maintain the freshness of vegetables.
Lack of cold chain- The facilities, deficient capacity and lack of a network of cold chains have become challenging for vegetable logistics.
Technological issues- There are technical issues in vegetable logistics such as improper technology, old systems and machines, advancement issues and outdated techniques.
Analysis of overseas vegetable logistics operation modes
Issues in vegetable logistics service provider
Hence, the operations of vegetable logistics service providerrequire huge responsibilities in maintaining the quality of vegetables by overcoming the issues. The different operation modes in different countries show that environmental conditions and proper requirements play a major role in establishing vegetable logistics. The issues should be looked upon to maximize the growth of vegetable logistics.
