São Paulo
State University (Unesp), Brazil
E-mail: jessica_gonella@hotmail.com
Eduardo Guilherme
Satolo
São Paulo
State University (Unesp), Brazil
E-mail:eduardo@tupa.unesp.br
Ana Elisa Bressan Smith Lourenzani
São Paulo State University (Unesp), Brazil
anaelisa@tupa.unesp.br
Renato Luis Garrido Monaro
Catholic University Center of Victoria, Vitória-ES
E-mail: rmonaro@ucv.edu.br
Sergio Silva Braga Júnior
São Paulo State
University (Unesp), Brazil
E-mail: sergio@tupa.unesp.br
Submission: 15/01/2018
Accept: 15/03/2018
ABSTRACT
Globalization
and the advent of Information and communication technologies have influenced
substantial changes in forms of management. The intense global competitive scenario
have generated new forms of competition for the various players. Faced with the
unstable and complex environment, organizations need to focus their efforts on
shared strategies. Agribusiness presents a set of specificities that lead to
greater complexity to manage the activities. Regarding the agro industrial
fruit pulp chain, this dynamic becomes even more complex, considering the
peculiarities of the sector. Therefore, this paper aims to describe the fruit
pulp chain from the perspective of the business processes of Supply Chain
Management (SCM). To do so, eight business processes were considered for the
qualitative analysis supported by the bibliographical research on a well-known
scientific basis such as Web of Science, Scopus and EBSCO. Considering the
study of a current phenomenon and according to the profile of the research
agents, it is a multiple case study applied in four fruit pulp processing agro
industries. The results describe the business processes and the activities that
compose it in the fruit pulp sector, allowing understanding the synchronous and
dependent relationship between the processes, as well as the importance of
information sharing in the dynamics among all activities.
Keywords: Supply
chain management; SCM, fruit pulp; business process.
1. INTRODUCTION
The different economic changes, such as the phenomenon of globalization,
have created the need for adaptations in the markets, making them more
competitive and increasing their unpredictability and uncertainty (SHUKLA;
JHARKHARIA, 2013; FERNANDES; BERTON, 2012). Local businesses have become
global, giving new forms of competition faced by the various agents within this
complex (COSTA, 2009).
The competition between companies has led companies to take different
actions to achieve competitive advantage. Often, these actions prioritize
continuous processes of innovation that confer benefits such as better levels
of quality and differentiation of products and services (STEVENS; JOHNSON,
2016).
Supply Chain Management (SCM) emerges with the objective of promoting
the alignment between the links within the supply chains in which corporate
autonomy gives place to the collaborative work. In this way, companies act in a
systemic manner, facilitating the bidirectional flow of business and
information, causing feasible gains in the network (GAYIALIS et al., 2015).
SCM can be considered as an expanded approach to traditional materials
management as it requires a more competitive positioning of its agents. This
breakdown of competitive paradigm clarifies that competition occurs between
productive chains and not between isolated business units. Thus, organizations
cannot be considered closed systems, but open systems and dependent on the
other agents that compose this complex network (FERRAGI, 2016; PIRES, 1998).
The importance of research that applies the precepts of SCM in
agribusiness is based on social and economic impacts because the sector
integrates a representative part in the supply of raw material to the industry,
besides being important in the generation of employment, income and food
security. In this context, Zylbersztajn (2017) presents the concept of
interdependence within agro industrial systems and states that agribusiness has
become part of an interdependent network, meeting the definition proposed by
Davis and Goldberg (1957), corroborating with the concept proposed by SCM.
Scramin and Batalha (1999) argue that in face of
adversities affecting agribusiness, such as decreasing returns aggravated by
structural factors, the studies are
increasingly focused on solutions to the sector (HOWIESON; LAWLEY;
HASTINGS, 2016). Given the complexity associated with its productive
arrangements, this study represents an opportunity to identify bottlenecks and
to promote improvements.
Through bibliographical review, several articles were identified that
used the scope of the SCM, such as Peng et al. (2016), Skrinjar and Trkman
(2013), Hwang and Lu (2013), Cao, Gan and Thompson (2013), De Maio et al. (2016) and Ageron, Lavastre and Spalanzani
(2013). However, they do not go into the business process
completely. In this way, it reinforces the theoretical and practical importance
of the present study, since besides presenting the main theoretical
delineations of SCM, it contemplates the complete analysis of the eight
business processes. Regarding the area of knowledge of the fruit pulp chain,
several studies on the physical-chemical composition of the pulp were
identified, but few are related to the supply chain management.
In view of such assumptions, as well as the unstable and dynamic nature
of the productive arrangements in this productive chain, this paper presents
the general objective of describing the fruit pulp chain from the perspective
of SCM's business processes.
The paper is structured in the following sections: the first section is
composed by the research method; the second section is devoted to the results
and theoretical framework about the SCM and the eight business processes
according to the definition proposed by Lambert, Cooper and Pagh (1998).
Finally, the third section contains the conclusions and propositions for future
studies.
2. METHODOLOGY
The methodological contribution of the work was
carried out through a bibliographical review, with an exploratory-descriptive
approach. Considering the study of a current phenomenon, given the empirical nature
of the research and the profile of the research agents, it is a multiple case
study (YIN, 2010). In order to conduct it, pre-established steps were adopted,
according to the model coined by Miguel (2011): (i) define a theoretical
conceptual framework; (ii) case planning; (iii)
data collection; (iv) analysis of results; (v) report generation.
The bibliographic review provided an understanding of
the current configuration of literature on industrial engineering area, which
includes SCM and business processes. The bibliographic review also provided an
understanding of the specificities that permeate agribusiness and the fruit
industry, allowing for the construction of the results from the SCM
perspective. This step was supported by the research of scientific materials in
the search bases Web of Science, Scopus and EBSCO.
The planning of
the cases included the units’ selection, and the first contacts were made in
August 2017. Regarding the form for data collection, questionnaires with open
questions were used. The questionnaire enables documented measurement and
description of the fruit pulp chain from the perspective of business processes.
Two theoretical approaches were set out for each of the processes and the
questions were constructed from the theoretical approach.
After the planning of the cases and
the elaboration of the questionnaire, the field research was carried out with
four fruit pulp processing agro industries located in the state of São Paulo,
Brazil, as shown in Table 1.
In addition to the application of the
questionnaires, it was contemplated the observation with the professional
responsible. According to Miguel (2012, p.137), “[...] visits to the shop floor
are important in order to verify, in loco
and/or in modus operandis, the
studied phenomenon [...]”
Table 1: Characterization of
Agroindustries
Agro-industries |
A |
B |
C |
D |
Organization |
Private company |
Private company |
Association |
Cooperative |
City |
Dracena |
Parapuã |
Adamantina |
Junqueirópolis |
Annual production |
7 thousand tons |
280 tons |
50 tons |
150 tons |
Number of suppliers |
500 |
50 |
340 |
100 |
Qty of flavors |
5 |
15 |
8 |
8 |
Flavors |
Pineapple, acerola,
guava, mango, passion fruit |
Pineapple, pineapple with mint, acerola, acerola with orange,
blackberry, cashew, guava, mango, papaya, passion fruit, melon, strawberry,
lemon, tamarind, grape |
Pineapple, pineapple with mint, acerola, cashew, guava, passion fruit,
strawberry, grape |
Pineapple, acerola, cashew, guava, passion fruit, mango, strawberry,
grape |
Source: Prepared by the author from data
provided by the research units.
3. RESULTS
3.1.
The
Fruit Pulp Sector Supply Chain
The results indicate that agro-industries are the weakest link in the
chain of the fruit pulp sector and are characterized by the low level of
commercial organization. This reality is in line with scientific studies such
as, Camarano and Abramovay (2017), Castro (2009), Cavalcanti, Andrade and
Rodrigues (2012) and Elias, Muniz and Bezerra (2007). These studies take on the
background of the characterization of the Brazilian rural producer, emphasizing
the present challenges in the sector.
The supply chain presents interdependence as a fundamental
characteristic. The fruit pulp supply chain is no different (CONORADO et al.,
2015). In this way, an agent will not be able to achieve satisfactory results
without interacting with the other agents. In addition, uncontrollable
variables such as perishability should be considered, which generates an
increase in operating costs and a change in quality, compromising efficiency
from downstream to upstream (GUNDERSON et al., 2014).
According to Lavastre, Gunasekaran and Spalazani (2016) there are other
risks linked to the supply chain such as delays, forecasting problems,
purchases, receivables, inventory and production capacity. Christopher and Peck
(2004) classify five categories of risk: process, control, demand, supply and
environment Kleindorfer and Saad (2005) consider risks as operational (problems
with equipment and systems) and natural (including climate instabilities and
natural disasters).
It is worth mentioning that changes in the profile of
the population's food, encouraged by the search for healthier eating habits,
has driven the development of fruit crops (KEPLER;
FAIR, 2015). This scenario, coupled with the climatic diversity and
territorial extension of Brazil, reflects the growth potential of the sector.
Figure 1: represents the fruit pulp supply chain and
the agents interacting with it.
Figure 1: Fruit
Pulp Sector Supply Chain
Source:
Prepared by the author based on data collected
The first tier is composed by necessary inputs for growing
and dealing with crops. The commercial relations between these companies and
the rural producers are direct or through associations, cooperatives or other
intermediaries, depending on the size and degree of organization of the agents.
The second tire is composed of agricultural
cooperatives and associations that operate, in most cases, in the commercial
organization of producers, offering services, trading inputs and other products
at a lower market cost. In this tier, there are also the intermediaries that
commercialize the inputs, linking farmers to manufacturers of agrochemicals.
The rural producer can relate to both, the industrial
sector and the domestic market. Regarding the industry, there is the
possibility of commercialization with the processing companies as of
pasteurized juices and ready to drink juices. Regarding domestic market, it is
possible to sell in natura fruits to
supermarkets or to final consumer in farmers markets for example. Some rural
producers invest in the sale to the foreign market, with the export of the
fruit. However, phytosanitary requirements may pose barriers to small farmers,
since few of them have the financial structure to afford adaptations to market
and legal requirements.
Agro-industries sell the pulp to pasteurized juice
industries or non-pasteurized juice industries. The commercialization of fruit
pulp can take place both in the domestic market (wholesale or retail) and in
the external market. Food market is the main destination of fruit processed
products in Brazil, either for ready to drink juices, pasteurized juices, ice
cream or candies. In addition to having intense participation in several
segments of the food industry, fruit pulps are also used in the cosmetics
sector and for the manufacture of animal feed.
3.2.
Customer
Relationship Management
Costumer relationship allows for identifying the
profile of the client and direct measures to make them loyal. Among the tools
used to facilitate this communication are websites, e-mails, social networks,
call centers, sales points and other strategies that facilitate marketing
management, sales, pricing and production planning (LAMBERT, 2016; CHEN;
POPOVICH, 2003).
The results indicate that one agro-industry that
exports fruit pulp identifies a demand to access a specific market. In order to
reach the marketing channel, it adopts a certification (such as Kosher
certification) or good practice procedures, such as HACCP (Hazard Analysis
& Critical Control Points), to broaden its capillarity of action at
international level. In this sense, empirical evidence corroborates the
importance of the flow of information in the supply chain, whether for the
management of short-term resources or for the expansion of the market.
The results
demonstrate that agro-industries create formal partnerships with key clients or
with all clients. In addition, it was reported that when faced with
eventualities, such as the impossibility of meeting a contractual requirement,
agro-industries choose to buy from another supplier, to avoid contractual
breach in the relation with clients. These actions affect the issues related to
the way agro-industry manage relationship with clients, which includes closing
of purchase orders, bargaining for prices and deadlines, establishing
agreements, ordering changes and all issues that might improve the commitment
between these tiers.
3.3.
Customer
Service Management
This business process refers to the development of
actions to manage customer orders, being supported by the administration of
products and services. The responsible team should establish strategies to
optimize this relationship, determine communication channels and write a plan
of action to measure management alternatives and their impact on company
activities (SIMON et al., 2014).
Regarding the post-sale service, fruit pulp agro-industry
provides the essential information to its clients, such as the manufacturing
lot, expiration date, payment situation, delivery methods, quantity sold, type
of transportation used and other relevant logistical information. In addition,
the team should inform clients about any potential problems.
Regarding the communication channels used in this
process, we identified channels of registered and formal communication
(websites, social pages, emails and phones), and not registered and informal
communication, such as online communication chats or face-to-face
communication, given the physical proximity between them. This business process
stood out positively, revealing the inexistence of problems of greater
complexity in the process of communication between and agro-industries and
clients.
3.4.
Demand
Management
Demand is influenced by the flow of information along
the chain, so if a tier holds strategic information, such as inventory levels,
sales patterns and logistic procedures, it will be difficult to reach
efficiency in its management. Although demand tend to be stable in the food
chains, it is necessary to look at aspects such as infrastructure,
transportation conditions and productive capacity (SCRAMIN; BATALHA, 1999;
MELO; ALCANTRA, 2016).
Demand management in the fruit pulp chain must align
the needs of the clients with the production capacity of the agro-industry. Exchange
variations should be monitored if the production is destined for export, as it
may directly influence the demand by importers.
Fruit Pulp, besides being destined for consumption as
natural juice in domestic market, is also widely used as raw material in the
production of candies, jellies, ice cream and nectars. As the pulp has a longer
shelf-life than fresh fruit, there is the advantage of processing during the
harvest period and marketing in more favorable periods according to the demand
of the consumer market. Therefore, the team in charge of demand management
should have contingency plans to synchronize supply and demand, periodically
review plans, conduct inspection of production capacity, and interact with
other business processes.
3.5.
Order
Fulfillment
Defined as a set of essential factors to fulfill
the requirements, this process is responsible for the interaction between
client and company, including the main transactions of the operational and
strategic level (CROXTON, 2003). Within this scope of action are the
activities of order monitoring, delivery security, monitoring of the structure
responsible for production, logistics and marketing. It stands out
interdependence with the other business processes, such as communication with
customer relationship management (SIMON et al., 2015; CROXTON et.al, 2001).
This business process
can directly influence manufacturing flow management, since it is the
information derived from this process that will initiate production operations,
whether in the purchase of the raw material (fruits), packaging or in the
production and delivery planning of the final product.
The personnel responsible for this management should
determine the specific steps from the order placement to delivery of the final
product as well as verify the customers’ credit and, thereby, direct the
possible forms of payment. They should also identify the productive capacity to
meet higher demands, communicate the management team of customer service when
the order is delivered, and share information to those in charge of demand
management.
In the fruit pulp sector, the fulfillment of the request can become more
complex due to the nature of the requisitions and specificities of agro-industrial
chains. Climate instability, for example, may have great influence, with the
fulfillment of the request of the agroindustry, thus maintaining a good
relationship with suppliers and an essential condition to reduce this risk.
3.6.
Manufacturing
Flow Management
This process refers to production management
strategies, which include capacity plans, needs and constraints. The flow is
established to harmonize the actions of the company according to the demand,
prioritizing the needs of the clients. For this, it acts in the development of
actions aimed at increasing the flexibilities, pointing out the nonconformities
(SIMON et.al, 2015; LAMBERT; ENZ, 2016).
Production in the fruit pulp sector consists of the
following steps: (i) Reception and weighing, depending on the period it is
necessary to store the fruits in temperatures between 5° C to 12° C; (ii)
Selection, washing and rinse. The fruits are separated according to their
physical conditions, discarding those which are spoiled or demonstrate
non-conformity with quality. The first wash aims at cleaning superficial
impurities, whereas in the second wash they are immersed in chlorinated water
for about 20 to 30 minutes; (iii) Peeling and Cutting is the stage where fruits
are weighed to control productive flow. The cutting may be manual or
mechanical, and unused remains should be placed in closed containers to avoid
attracting insects; (iv) Pulping consists of separating the pulp from the
fibrous material. Crusher, disintegrator or industrial blender carries out the
crushing; (v) Packaging and filling can be performed by means of automatic,
semi-automatic or manual dispenser; (vi) Freezing and Storage.
The bags used in the packaging are polyethylene
plastic, the size varies according to the type of marketing channel (domestic
market usually demand smaller portions and drums are usually used for export
markets). The aforementioned productive steps, such as peeling, and filling
will vary according to the type of fruit processed, since they differ in their
physical structure, fibrousness, consistency and bark stiffness. It is up to
the responsible team for the productive process to direct the best way, as well
as the processing sequence to achieve time saving.
3.7.
Supplier
Relationship Management
This process promotes essential conditions in the
process of creating and maintaining the relationship between company and
suppliers (LAMBERT;
SCHWIETERMAN, 2012). It has strong singularities with the management of the
relationship with the client concerning the activities and the structure set up
to develop the strategies of loyalty, communication and selection of these
agents (LAMBERT, 2004).
In the agro-industrial fruit pulp chain of, rural
producers are responsible for supplying the raw material necessary for the
company's production process. Because these are sensitive products with high
perishability, agro-industry must address to some aspects such as the location
of suppliers, deadlines and transportation conditions to not jeopardize the
quality of the product and generate losses. Rural producers should be located
close to the productive units in order to facilitate transportation and reduce
transportation waste.
The deadlines for delivery should be established in
advance among those involved, as well as the requirements such as quality and
maturation of the fruit. In addition to the main suppliers, there are the
suppliers of secondary products as spare parts suppliers of the machinery,
which are important in this business process although they operate with less
periodicity.
3.8.
Product
Development and Commercialization
This process is responsible
for providing structure for the development of new products, being supported by
the relationship management processes with customers and suppliers (ROGERS et
al., 2002). Marchesini and Alcântara (2014) define it as a set of elements that
provide structure for the creation and launch of new products and services. The
functions of manufacturing flow management act in the technological and
strategic development of the productive capacity and analysis of the
possibilities inherent in the production line (LAMBERT; ENZ, 2016).
According to Evangelista and Vieites (2006), the
sector features associated with conditions such as seasonality and high
perishability drive the technological development that guarantees the
commercialization and consumption during an extended period. That allows for
the extension of the shelf life and adds quality and value to the product,
besides acting in the reduction of wastes in the transport and storage of the in natura fruit.
This business process is challenging for the managers
of the fruit pulp chain, as it is a natural product. It was observed that Innovation
and development have focused on aspects related to the mixing of more than one
fruit in a single package, such as orange with acerola and addition of other
ingredients such as mint in the pineapple pulp. In this scenario, the commercialization
of fruit pulp for detox juices, directed to a specific target market, is
glimpsed. This type of drink consists of adding vegetables and other
ingredients such as cabbage, ginger, tomato, carrot, flaxseed, among others to
the fruits. This process is not necessarily related to the creation of an
innovative product. The adoption of partnerships with suppliers to encourage
the production of more exotic or typical fruits from the northeast region as
açaí and cupuaçu is also considered an ongoing practice in this business
process.
The commercialization of fruit pulp is facilitated by possibility
to transport long distances, fact that is not simple for the commercialization
of in natura fruit. In addition, it
is possible to export fruit during the off-season. Sale is carried out by the
company itself or through intermediary agents, such as commissioned dealers or
representatives. The commercialization costs regarding transportation is
responsibility of the agro-industry when the company sells directly to its
clients, requiring investment or outsourcing of the logistics activity.
3.9.
Returns
Management
Return management works to reduce idleness, unwanted
returns, and achieve healthy competitiveness (LAMBERT, 2004). It is related to the activities of reverse
logistics and maintenance and its implementation, besides contributing to the
efficient flow of processes, also serves to identify bottlenecks and generate
opportunities to soften them (LAMBERT; ENZ, 2016; MARCHESINI; ALCÂNTARA, 2014).
Among other quality service procedures, it is
highlighted the inventory control, since the fruits cannot be stored for
extended periods. Thus, the fruits should be stored in sanitized plastic
containers and identified by date, lot, quantity and time. The stock of the
finished product must remain under adequate refrigeration, with cross
contamination control that refers to the possibility of contact of the raw
material with the finished product, so that there is no contamination of
microorganisms present in the fruits.
The cleaning of environments should be carried out
daily, emphasizing the control of pests by using door, window and drain
sealing, being strictly prohibited the presence of any animal in the
agro-industry. Finally, there should be records, and controls performed for
each stage of the production process, as well as any interruptions that have
occurred.
By products resulting from fruit processing such as
peels and seeds can be reused in the manufacture of other products such as
animal feed and cosmetics. Ferrari; colussi e Ayub (2004) highlight the high concentration of fatty
acids in passion fruit seeds having nutritional importance for human food and
animal feed, besides being present in the manufacture of cosmetics, paints and
soaps. The practice of reverse logistics represents the reuse of materials with
the correct and sustainable destination, in addition to providing economic
value to products previously discarded.
In addition to the aforementioned practices, it is
possible to consider the machinery maintenance processes, in which there is a
need for replacement of specific parts and equipment. This maintenance can
generate returns to suppliers of these materials or service providers for
possible repairs, which is a task that is part of the return management
process.
4. CONCLUSIONS
Although the eight business processes have been
analyzed here individually, it is possible to conclude that they have a strong
synchrony relationship. In addition, sharing information among the teams
responsible for each business process is critical to the efficiency of its
execution. Customer relationship management and customer service management
bring together a set of important data that can generate execution and planning
orders in the process responsible for managing demand, manufacturing flow
management and order fulfillment.
Managing the manufacturing flow, besides contributing
to the organization and optimization of the production process, also guides the
quality control procedures that must be strictly follow technical procedures
and good manufacturing practices. Efficient management of this business process
will reduce the potential for failures and bottlenecks in the return management
process. In addition, consideration should be given to the use of fruit byproducts,
such as seeds and bark, which are resold to other agro-industries for the
manufacture of animal feed, cosmetics and soap.
The uncertainties and unpredictability that affect
production chains, coupled with the specificities of fruit pulp chain, imply
greater complexity in the sector's performance. In addition, there are often
failures in performing business processes in different tiers, resulting in a
disorganized configuration and information asymmetries, which makes more
difficult to manage activities efficiently along the chain. Based on such
clarifications, the importance of the practice of business processes in the
supply chain management in the fruit pulp sector to avoid losses and to create
competitive advantage is aligned with literature statements
The practice of information sharing is one of the key
points for achieving synergy in a supply chain. However, we observed that there
are agents who are resistant to the exchange of information as a strategy for
synchronizing activities. Such resistance may be based on the uncertainty or
distrust on other agents' actions, given the possibility of opportunistic behavior.
The analysis from the perspective of SCM and the
business processes in the fruit pulp supply chain represents an academic and
practical advance, being therefore an innovative contribution. Considering the
investigative nature of science, it is noticeable that in finding answers to
old problems, other questions arise from other research problems. In this
context, as a way of improving the intrinsic relationships between the
different supply chain links, as well as overcoming the challenges arising from
other market demands, we see different gaps that represent opportunities for
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