Lihong Shi, Shabnam Pate, Gilbert Kwimi, Gabriel Mourad Introduction: Innovation and Quality Agricultural output has quadrupled over the past 70 years but the methods have not evolved Local the emerging term Cost effective and better for the environment Summary Traditional Produce Supply Chain Bright Farms Supply Chain
Keeping your fresh and tasty
Simplicity of Greenhouse Farming
From your greenhouse to your shelves
From the shelves to your kitchen
Competitive Advantages of Bright Farms
Bright Farms Supply Chain
VC transportation costs disappear Farming FC Total Cost= (per Quantity Suppply Chain Monthly FC+(V*Q) unit) Spoilage increase with larger Traditional distances of food miles Supply Chain $26,629.61 $15.00 1,000.00 $41,629.61 Traditional Produce Supply Chain Bright Farm Supply Chain $14,408.00 $13.00 1,000.00 $27,408.00 loses 15 billion dollars to spoilage or unsold produce Data based on 1,000 boxes of lettuce Traditional Produce Supply Chain Fixed Costs
Water $19/100m2 $768.90 Transportation 2.71/gallon $27.10 Depreciaiton expense $3,000.00 Sanitation $750.00 Spoilage/Throw Away $750.00 Total: $14,408.00 Operation Processes Instruct greenhouse user on operational procedures Train and supervise workers Assist with the activities of greenhouse users Provides pesticide recommendations Perform routine maintenance Maintain stock of common supplies Bright Farms vs. Traditional Produce
Bright Farms Benefits Traditional Produce Contra-benefits
Bright Farms creates more jobs Subject to Seasonality/Climate
locally Unstable Variable Costs Environmentally Friendly Breeds Food-born Illnesses Cost Effective Huge use of land, water, crude oil Traceability and natural gas Location and Facility Considerations Forecasting and Inventory Management
Bright Farms Traditional Produce
Smaller supply chain Subject to Seasonality/Climate
Inventory doesnt arrive damaged Import produce Longer shelf-life Spoilage/loss Cold Storage Facility Material Challenges Expansion