An Integrated Model in Cañazo Supply Chain: A Research in Apurimac, Peru

Abstract

During the last decades, the sugar cane distillery industry in Peru has shown a stagnation in the production levels causing a fall in the levels of product rotation. This caused a lower economic flow in the main sugar cane (Cañazo) companies impacting negatively the industry sector. This sector is aiming their efforts on reducing their operational costs and performing more efficient processes, in order to remain competitive in the current market. However, the increase in the operating costs and the challenges of obtaining the products with low organoleptic quality have negatively impacted the supply chain. In the Andean region of Apurímac (Peru) there are currently about a dozen of companies that present efficiency problems in addition of the contamination have negatively impacted the manufacturing and product quality, despite the efforts of implementing other traditional management models. This paper proposes the implementation of two management models: safety food management and effective process management; these two models applied simultaneously will show an improvement in operating results and profitability through the supply chain.