The emergence and development of the concept of supply chain management is closely related to the application of information technology. It can be said that supply chain management cannot be implemented today without the rapid development of information technology.

Strengthen logistics

For Cargill, it started from a storage and transportation company, and logistics has always occupied an important position in the company.

On February 20th, 2002, Cargill announced that it would join the logistics network of Nistevo. With the implementation of Ntstevo's Internet-based transportation, Cargill's sweetener business department in North America plans to reduce its logistics costs through cooperation. Jeff Gryu, the logistics manager of this business unit, pointed out that cooperation with Nistevo in the supply chain is an important logistics strategy of Cargill, and cooperation will improve Cargill's logistics performance. Cargill will establish a long-term cooperative relationship with it, which is win-win for both sides.

avoid risks

After 140 years of development, Cargill has taken risk management as its core competitiveness, which determines the life and death of agricultural products trading and processing companies. Cargill's internal risk management involves many aspects, such as grain, orange juice, sugar, meat and other fields. Cargill protects its value and avoids risks through standardized futures market and broker market. For example, if an agricultural processor can't protect itself from the price fluctuation of imported raw materials and exported products, it will inevitably lose money even if it has the world's top technology.

After so many years of development, Cargill has established a risk management system, the core of which is to clearly define the scope of risks, and then allocate the risks to all business departments of the company. The reason why this strict daily reporting system is implemented is to ensure that the company always grasps the recorded risk level. The company's distributors have the freedom to display their fists, but they must always operate within their own scope.

Cargill is willing to share its innovative risk management tools with customers, such as climate risk solutions. With this tool, even in bad weather such as rain, snow and drought, those industries closely related to the weather can still maintain rich income and profits. Cargill also has a risk management tool specially developed for farmers, which enables farmers to reduce price risks and focus on production activities.

Cooperation creates success.

In Cargill's publicity materials, "cooperation to create success" has been put forward more than once, and the success of an enterprise can not be separated from good cooperation with other enterprises, such as ADM and AT& etc. The cooperation between T, ADM and SMI, Cargill and Nistevo are all successful cases.

Cargill itself is an agricultural product supply chain service provider. As a global company, Cargill has rich experience in supply chain management. Cargill can optimize its supply chain according to customers' needs, from problem solving and practical solutions to efficient implementation of one-stop service. When Cargill's customers need to build a new factory, Cargill will provide him with knowledge in transportation, warehousing and inventory management to help optimize his supply chain design. With the joint efforts of all parties, the cost of supply chain management will be reduced for customers 10%.

In Guatemala, Honduras, Nicaragua, Costa Rica and other countries, there are some small shops called tiendas, and their cold storage facilities for storing fresh food are very limited, which means that shopkeepers need to rely on frequent import and export to maintain low inventory. With the help of local supply chain experts, global positioning system and portable computer technology, Cargill's Sun Valley Central America Company optimized its delivery route to improve efficiency. By closely linking the supply chain with customer demand, shopkeepers can ensure the freshness of products, reduce losses and improve the reliability of products and delivery without increasing equipment investment.

At Cargill's China Training Center, Cargill animal nutrition experts help pig and cattle farmers learn how to rely on animal nutrition technology and knowledge of feeding and farm management to increase production and income. Cargill also provides similar training for farmers in Vietnam and South Korea. So far, more than 2.5 million Asian farmers have benefited from it.