A Truly Global Business
When we speak about the evolution of the global economy in general, there probably is not another word which is referred to as much as to ‘Globalisation’ – a term, which has become one of the defining buzzwords of our time. A true consensus and its definition or true scope of meaning are yet to be reached. It is for certain, however, that Globalisation has changed the world and our industry in an unprecedented manner.
In fact, the fresh produce industry is one of the earliest examples of a truly global business. Antique empires were not shy of long-distance trading, as for instance via the silk road. It was Christopher Columbus, however, who changed the game when he sailed for the new world under Spanish sails in 1492. Quickly all sorts of fruit and vegetables spread around the world in when we now call the ‘Columbian Exchange’.
For centuries, the fresh produce industry has been built on its ability to adapt, adopt, and change quickly. Let’s, for instance, think of vital inventions such as refrigeration, steam engines, or air transport, all of which enhanced the pace, distance as well as the entire scale of fruit and veg trading tremendously.
Innovations and inventions such as these all led in their own part to the ramification of a truly global business that we see today. Lately, companies use the setting of Globalisation to their own advantage. ‘Chain Collaboration’, for example, appears when two or more completely autonomous companies, competitors even, start working together towards a common goal. Associated benefits include optimization of processes, greater transparency, lower costs, and more reliable supply channels. In fact, 83% of experts believe Chain Collaboration has already become a crucial competitive advantage.
Another development we see in our global business is that experience itself has overtaken product and price as the key brand differentiator. Moreover, 86% of buyers state that they are willing to pay more for a better experience. Hence, companies start to create a ‘Total Experience’ by interlinking all kinds of experience disciples to achieve a superior shared experience.
Of course, the COVID-19 pandemic has altered our industry in its own right. As much as 86% of industry members experienced noticeable effects. Especially regional and online providers experienced a rise in sales, whereas food services and event-driven sales almost broke down entirely. For that reason, the number of providers has generally decreased whereas demand for fruit and veg has increased as customers seek the associated health benefits and a better immune system. This, in turn, led to higher end market prices. Furthermore, we can see a rise in investment in Digitalisation and a general digital and online shift in the industry with regards to supply channels and sales.
The COVID-19 pandemic, however, is not the first global concern that has put pressure on our food system. We at Keelings Knowledge are firmly committed to digitally shifting the industry to the benefit of many people as possible. We, as a collective industry, are all in this together. Now, let’s tackle these new challenges together and learn how our ERP solutions can help to transform your business and international trading. Contact us for more insights and information.