Answer: 

Introduction:

A supermarket is a self-service retail shop offering a wide variety of food and household products under a single roof. They are the primary retail channels for these products and directly impact the supply and demand dynamics.

Body:

Role of supermarket in supply chain management of food items:

• Faster movement: In comparison to conventional methods, supermarket chains move their goods faster.
• Diverse products: Supermarkets host diverse forms of products. This means that consumers have a larger choice for selection and consumption.
• All-round availability: In comparison to conventional systems, supermarkets host products all-round the year, even in off seasons. This creates demand for storage and value-added items.
• Quality control: Supermarkets have strict quality control measures in place to ensure that only fresh and high-quality produce is available to the customers.
• Benefits to farmers and the consumers:
  • Even if the supermarket doesn’t offer the farmer prices higher than Mandi, still the farmers’ transportation & unloading costs are saved making it profitable for him.
  • Supermarkets usually work on “low-margin-high-volume” business strategy, as a result the end-consumer may get the said items at a reasonable price.

They eliminate a number of intermediaries by:

• Direct Procurement: Supermarkets often have a direct procurement mechanism with suppliers, eliminating the need for middlemen such as wholesalers. This ensures a more efficient and cost-effective supply chain as supermarkets can negotiate directly with suppliers and ensure the best possible prices and quality.
• Reduced transportation charges: Transportation is one among many factors that involve middlemen. The supermarket chains can ensure that farmers no longer have to worry about transportation.
• Controlled Supply Chain: Supermarkets have a controlled supply chain that is closely monitored and managed, reducing the risk of spoilage and transportation issues.
• Use of Technology: Supermarkets have implemented advanced technology such as RFID, barcoding, and GPS tracking systems to monitor the supply chain and improve its efficiency.

Conclusion:

Direct sourcing, quality control measures, standardization, aggregation, and use of technology are the key factors that help supermarkets eliminate intermediaries and create a more efficient and effective supply chain process. This results in fresher produce and lower prices for the consumer.

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