Soy is among the most important agricultural commodities in the international market today. The protein-rich plant boasts a higher worldwide consumption than most plants. Recent statistics show that the international soy food market will generate $60.7 billion by 2027.
As a highly traded commodity worldwide, soy has a sophisticated global supply chain that includes many players, such as producers, transporters, and trading companies. While the international trade for soy is rising, the global soy supply chain has become more complex over the years as soy consumption increases.
The complex soy supply chain can be hard to navigate. Since it is highly interdependent, one factor, such as supply chain delays, can affect the entire chain. Consequently, the global supply chain challenges weighing on soy farmers are among the industry’s biggest threats.
We must address these challenges to avoid delays and revenue losses in the future. Every industry player has a role in improving the global soy supply chain. Read more for tips on how to improve the global supply chain for a better future.
Why Understand The Global Soy Supply Chain?
The global soy supply chain comprises a network of stakeholders, suppliers, organizations, and U.S. soy farmers dedicated to solving global challenges. However, the network is vast and complicated.
Despite the need to improve this chain, many industry players don’t survive due to a lack of understanding of how the chain works. The objective of an international soy supply chain is similar to a local supply chain, although it differs in terms of geographical boundaries and scope.
Understanding the international soy supply chain will help industry players navigate the complex chain and make it better each year. It also helps them plan and successfully handle the production of soy products from producers to end consumers across countries and continents.
A detailed understanding of the global soy supply chain makes it easier for stakeholders to integrate multiple networks of soy farmers, transporters, and suppliers. Stakeholders also find it easier to meet their global soy supply chain goals, such as reducing business costs, improving time delivery, and mitigating risks upon understanding the complex chain.
Strategies For Improving the Global Soy Supply Chain
1. Focusing on Sustainability
Today’s global soy supply chain depends heavily on an efficient and stable environment. However, stakeholders must understand how delicate this chain can be when it gets to sustainability issues.
Sustainability is a crucial global supply trend, with soy consumers demanding sustainable products. Soy has high demands for resources such as agrochemicals, land, energy, and water. Its production also contributes to carbon emissions from deforestation.
Stakeholders are increasingly under pressure from governments on sustainable soy production. The increasing scrutiny in the soy industry is causing supply chain delays and affecting the entire global soy supply chain.
Focusing on sustainability can help stakeholders navigate the complex global soy supply chain. It also allows producers and suppliers to maintain a steady supply of soy products globally, ensuring the chain runs smoothly without sudden disruptions and interruptions.
2. Using Soy Supply Chain Analytics
Data is the cornerstone of the modern soy supply chain. Stakeholders in the global soy industry require data to improve the global soy supply chain. Like other supply chains, the international soy supply chain should rely on analytics to support, improve, and manage its efficiency.
Soy supply chain analytics has an extensive reach that can supply the international soy supply chain with a wealth of crucial data. Stakeholders can analyze the data to identify inefficiencies and understand recent trends. Supply chain analysts use complex analytics that stakeholders can utilize for making data-driven decisions.
Analytics offers many benefits to help industry players navigate the global supply chain. For instance, analytics help stakeholders improve their planning, reduce operational costs, and become more efficient in their supply chain management operations.
Industry players can use different soy supply chain analytics in their operations. For example, they can use descriptive analytics to describe trends in the soy industry. Soy supply chain experts can use diagnostic analytics to diagnose supply chain problems. Or, they can use predictive analytics to predict future outcomes.
3. Addressing Transportation Challenges
As with other agricultural goods, global soy farmers rely on transportation to deliver their products to consumers. Soy farmers, however, face infrastructural challenges that disrupt the global soy supply chain by causing delays. Some of these challenges include poor road networks, particularly among developing nations.
The high cost of transporting soy products also threatens the international supply chain. They increase the cost of producing soy, making soy products expensive for consumers. Bad weather can also hamper the transportation of soy to global markets since it can discourage the timely delivery of soy products to international markets.
Transportation will continue to affect the global soy supply chain. The global soy market can only be profitable with an efficient global transportation network. Governments worldwide should address the underlying transportation challenges to help stakeholders easily navigate the global soy supply chain.
A sound transportation network will enhance the global supply from one nation or continent to the other. It will also make the soy global market competitive. An efficient transportation network is thus crucial to an improved international soy supply chain.
Bottomline
Every industry player has a role in improving the rapidly changing global soy supply chain. Most things mentioned here require collective action toward enhancing a better and more efficient soy supply chain for a better world.
