USDA Looks To Further Its Food Supply Chain Efficiency

By Melissa Lind, contributing writer

The US Department of Agriculture’s Web-Based Supply Management System has been improving supply chain logistics for agencies such as school lunch programs and food banks since its implementation in 2010. Managers of the system are now looking to expand efficiencies

In 2010, the USDA implemented the Web-Based Supply Chain Management system (USDA WBSCM) which has helped food banks, school lunch programs, and other programs operate more efficiently. The managers of the Agricultural Marketing Service (AMS), which operate the system, are looking for more ways to increase efficiencies in the supply chain.

Before the USDA WBSCM system was implemented, AMS was encumbered by a lengthy and complicated supply process. The “old” way required manual ordering with invoices and payments processed through mail. Payments could often take weeks, leaving vendors to shoulder a cash flow burden.

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The WBSCM has dramatically improved the process with the implementation of a SAP-based platform. Bid requests and proposals, contract awards, and payments are all processed online. The project now has over 8,000 users and includes five governmental and institutional agencies. The Food and Nutrition Service (FNS), Farm Service Agency, Foreign Agricultural Service, and the US Agency for International Development are participating along with AMS in the $100 million project. WBSCM has been able to decrease domestic transportation costs by 11 percent and reduce perishable food spoilage by 15 to 20 percent. The program has processed 8.5 billion pounds of food that has been produced domestically and is awarding nearly $3 billion in contracts yearly.

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WBSCM has also enabled AMS to purchase surplus products in a timely manner, saving time and money in efforts to get food where it needs to go. What previously took months can now be done in weeks. AMS is looking to further streamline the system with performance-based procurement by undertaking a business process review of the entire system. Some functions, such as feedback from suppliers, are still being done manually. Improvement is also needed in conglomerating shipments so that states don’t have to scramble to fill a truck. Additional software which will help improve efficiency is currently in the implementation phase.

Managers from AMS are planning to include vendors, suppliers, and customers in the process changes so that partners at every level will buy-in, helping to smooth the transformation.