IMIB Journal of Innovation and Management
issue front

Aman Dua1 and Sanjay Sahu2

First Published 1 Apr 2024. https://doi.org/10.1177/ijim.241234969
Article Information Volume 2, Issue 2 July 2024
Corresponding Author:

Aman Dua, Food Business Management and Entrepreneurship Development, National Institute of Food Technology Entrepreneurship & Management, Plot No. 97, Sector 56, HSIIDC Industrial Estate, Kundli, Sonipat, Haryana 131028, India.
Email: dramandua.office@gmail.com

Food Business Management and Entrepreneurship Development, National Institute of Food Technology Entrepreneurship & Management, Kundli, Haryana, India

National Institute of Food Technology Entrepreneurship & Management, Kundli, Haryana, India

Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 License (http://www.creativecommons.org/licenses/by-nc/4.0/) which permits non-Commercial use, reproduction and distribution of the work without further permission provided the original work is attributed. 

Abstract

Procuring raw materials (RM) is essential in the supply chain (SC), particularly in the current business landscape where organisations actively seek innovative ideas to cut costs and maintain competitiveness. The procurement operation enables these organisations to navigate through increasing cost pressures. Within SC logistics, the procurement of RM faces numerous obstacles and complexities. To address these challenges and propose potential solutions, examining the specific issues that impact the procurement of RM in the Food Processing Industry (FPI) is necessary. Therefore, this article explores the challenges affecting the procurement process. The authors also provided recommendations for mitigating the identified challenges. This study utilises interpretive structural model methodology, a qualitative and interpretive approach that produces solutions for complicated issues through discussions based on the structural mapping of intricate relationships between elements to look at and analyse the challenges that affect the procurement process. A systematic review of the existing literature provides a comprehensive understanding of these challenges. The study found that challenges in contract and procurement, infrastructure and transportation, technology, govt regulations, quality and safety standards, etc., are the factors that constitute severe challenges and affect the growth of FPI. Data were collected from only those working in Indian companies or multinational companies operating in India. Every step of the process, starting from the development of the questionnaire to the data collection itself, is carried out with a focus on the Indian perspective. Addressing these problems and obstacles will yield advantages for decision-makers and stakeholders, including farmers, manufacturers, customers and consumer Food Business Organisations. It will enhance their comprehension of the current situation, identify issues and confront challenges, thereby facilitating improved planning and management strategies.

Keywords

Inbound logistics, Food Processing Industry, raw material, supply chain management, challenges, ISM

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