Conceptual model of floriculture supply chain management

Abstract

The flower industry today is a fairly dynamic international industry. Proof of this is the significant growth rates achieved in recent years in this area. Thus transportation of perishable goods is one of the most difficult types of delivery, and transportation of flowers is even more difficult. Because it is necessary not only to strictly adhere to the temperature regime, but also to preserve the appearance of such a demanding cargo. Conducted analysis of the flower industry has shown that market demand is stagnant, while supply is in surplus. In part, this is due to the fact that flowers are highly correlated with income, not being essential commodities. Although on the other hand, consumer demand is becoming more demanding and differentiated. The main factors influencing the market of floriculture products were identified and studied. It was noted that the market of floriculture products in Ukraine is relatively small and young, but promising and growing rapidly. In addition, it is one of the most complex and time-consuming, due to its features. First of all, the floriculture market is represented by a significant number of participants that have different basic and current resources, goals for the market, needs, and so on. Studies have shown that the floriculture industry can suffer huge losses, mainly due to the lack of proper infrastructure for storage and transportation, as well as due to the lack of control over the conditions of supply. Lack of visibility in supply chains leads to quality problems, which leads to product loss, product returns, rising costs, and time delays. In addition, changing consumer demands, an active lifestyle and an open economy are forcing manufacturers and suppliers to produce higher quality goods and constantly look for ways to optimize costs. The proposed conceptual model of floriculture supply chain management will make it possible to form a new infrastructure that will unite all the subjects of the floriculture market into a single system. Thus, we can say that the priority areas of infrastructure development of the floriculture market should be determined in terms of a systematic approach and consist in the interaction of elements of production, intermediary, floristic, design, marketing, financial, information and agricultural components. Each part of the chain must perform its function effectively in order to maintain the optimal conditions of the environment in which the products of floriculture are located, during its supply from the manufacturers to the final consumers. To this end, a combination of innovative technologies that help to manage the supply of floriculture products in real time through the supply chain was proposed. Therefore, in order to satisfy consumers, it is necessary to form an effective supply chain for floriculture products, all parts of which must work in a whole, so that end consumers can get high quality products.