Logistics in the global food industry

Abstract

The modern system of the food industry faces a significant number of social and environmental problems of sustainable development. Consumers prefer geographically close food producers, and the regions concerned offer some answers to these challenges. However, all costs associated with the distribution of food from many small producers to consumers have become the main barrier to the long-term success of the food system. The best option in this case is the practical application of logistics, which has a huge potential for increasing the efficiency and optimality of supply chains. Management of today's supply chains is extremely complicated. Depending on the product, the supply chain can cover hundreds of stages, multiple geographic (international) locations, a multitude of invoices, and payments that are involved in a number of individuals and legal entities. In order to determine the optimality of supply chains in world practice, various logistic indicators are widely used, among which the leading role belongs to the logistics performance index.