Abstract
Longan plays an important role as an economic fruit of Thailand because of its volume and size in markets, both domestic and aboard. It was generally known that serious problems were encountered in current longan production and sale, especially the increased production cost. To understand the overall situation clearly, longan’s supply chain was evaluated using the Supply Chain Operations Reference (SCOR) model and value chain analysis. In-depth interviews were conducted with 73 supply chain members, covering farmers, middlemen, process operators, transporters and exporters, located in Chiang Mai, Lamphun and Bangkok. Performance of the longan supply chain members were evaluated based on four categories, namely, inbound logistics, operations, outbound logistics and supporting activities. It was found that the exporters had the highest score in every aspect of performance criteria whereas the farmers had the lowest score, especially in the outbound logistics part. The findings also showed that the major problem of this supply chain was due to oversupply of longan. It was therefore recommended that the members in the supply chain should have to manage and control the quantity of longan, so that demand and supply are balanced as well as to add value to the longan products by increasing information share between members. Marketing campaign is also important to boost longan demand. By implementing operational best practice to each supply chain member, 25% reduction in waste may be achieved.
Highlights
Longan (Dimocarpus longan L.) is a subtropical evergreen tree species in the family of Sapindacea
This research study aims to study the characteristics of longan supply chain, identify the problem and propose ways to improve the Supply Chain Management (SCM) and logistics of longan
This study focused on the overall processes and activities in longan supply chain where SCM tools are used
Summary
Longan (Dimocarpus longan L.) is a subtropical evergreen tree species in the family of Sapindacea. The longan crops require winter chill to induce flower and normally blossom in spring, allowing fruit development in the humid and warm seasons of late spring and summer (Yang et al, 2010). Longan is an important economic fruit of Thailand because it is widely consumed domestically and abroad. In 2010, around 450,000 tons of longan were produced, where about 300,000 tons were exported as frozen, dried and canned longan, earning over US$200 million in export value (OAE, 2011). The quantity of domestics and export longan was limited by its highly perishable nature, short storage life and susceptibility to postharvest disease. Several preservation methods were employed to extend shelf life or add value to longan, including canning, freezing and drying (Tippayawong et al, 2008)
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