Juice Industry - Vertical Integration, the key to success

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Juice Industry - Vertical Integration, the key to success

A Supply Chain is a system of moving a product from supplier to customer. It involves the transformation of raw materials into a finished product, which is delivered to the consumer. Gat Food's supply chain will vary depending on the product being produced. While the majority of their innovative beverage products may use fruit as a raw input. Products such as Gat Food's organic juices could be sold directly to the consumer or to the retailer. On the other hand, products such as their advanced integrated solutions must first be sold to another beverage company to use in the creation of beverages, before it can be sold directly to the consumer or retailer.

Supply Chain Management is the management of the flow of goods and services. Through supply chain management, business can effectively design, plan, execute, control, and monitor supply chain activities to create net value, build a competitive infrastructure, leakage worldwide logistics, synchronize supply with demand and measure performance globally. In order to have more control over their supply chain, businesses will often attempt to vertically integrate. This means that they will be involved with, and retain ownership over, the majority of the supply chain.

In the case of Gat Foods, they have stated that their vertically integrated structure is advantageous, as they own and manage their supply chain "from the grove to the shelf". As a result, there is better communication between different segments of the business, allowing for total control over the transformation processes that are used by the business. This allows them to conduct effective research and alter parts of the supply chain when necessary, to create better quality, innovative beverage products that better suits the needs of consumers, and become a leader in the juice industry .

The success Gat Foods organic and innovative beverage products is only made possible with complete vertical integration on the supply chain. To find out more about Gat Foods vertical advantage, visit their website.

For more information about our products: Essential OilWhole Fruit ComminutesOrganic Juices