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Fig 1. Excess of supplies are thrown away at Dambulla Economic Centre
Background
Throwing away of agriculture produce is common and controversial news in public media, but it occurs seasonally with different production of crops. This mainly happens in the economic centre of Dambulla, where the highest amount of produce is collected.
This malpractice happens due to not mana
ging the influx and inventory of the centre in a scientific way. There are many tested simple applications and models available in the logistic systems to counter the waste. That “economic centre” concept has to be changed in order to make an efficient system to connect producers to the market. Therefore, it is a paramount requirement to change the word ‘economic centre’.
There is no relevance to the core functions and subsidiary functions operating in the economic centre with this particular phrase. In Sri Lanka these economic centres are distributions centres throughout the national market. The best word has to be ‘National Distribution Centre’, because vegetables arrive from various districts to Dambulla. The bulk is cross docked and back loaded to other districts for distribution purposes.
Cross docking is an important function in which bulk is broken to different sizes to suit the requirement of different markets. Breaking of the bulk is depend on vital information of the market, slight changes to the information flow is the misanalysis of the supply to different geographical sectors.
There are many supporting IT platforms to analyse, control and network the distribution system which name as back office management systems or entrepreneur resource planning (ERP). Logisticians and the supply chain managers are the outfit of professionals trained to operationalise this system. Transportation and the warehousing are the two main functions of the trade. Most importantly, the particular system can reduce the present 40% of the vegetable waste to a negligible level.
Fig 2. Underground warehouse that can maintain the temperature at 19 degrees centigrade
Operationalisation
Transporting and warehousing are the key distribution functions of the logistics system. In order to support the functions, there are many other supplying functions embedded into the system. Apart from that, if the system can be supported by an IT platform like ERD (relationships between database tables) or EDI (Electronic Data Interchange), one can call the system a supply chain management system. These systems are important for the control of the consignment and control the inventory and the space. It will help continuous supply of the product to the market without effects of seasonal surges. 
Temperature management is very important for the perishable products like vegetables and fruits. Countries are using many systems to manage the temperature; even companies had gone to the extent of controlling the temperature on transportation and monitor the temperature by interfacing with a GPS tracking system with support of satellite communication technology.
At present, economic centres are not following the above mentioned theories or concepts than using traditionally-used practices.
The other main function is the transport and warehousing functions. These functions too are simultaneously automated with the IT platform because the distribution system has to be work on deadlines to be with continuous satisfaction of the customers and the stakeholders.
Warehousing has many subsidiary functions. Apart from storing, the value additions like packaging, preserving, making by-products are conducting basically with the technology of post-harvest management. Therefore, it is a need to enlist professionals to activate these methods.
These professionals are called logisticians not any other professionals as presently employed. Therefore, the establishment has to be reorganised and re-engineered in order to keep up with the efficient and professional logistics and distribution. Then the Government will be able to support the producers and improve the profit margins and get rid of mismanagement of vegetable or fruit supplies in the whole country.
Social aspects
The other facet is the existence of Mafias and other thuggery in economic centres. I have read many articles in the newspapers continuously and research about the findings after physically being in the Meegoda, Narahenpita and Dambulla centres. Many of the present practices are unethical p
ractices that have to be rectified. Therefore, the establishments have to be re-organised with incorporation of Government and private sector players.
When considering the present scenario in the country, the highest logistics knowledge is possessed by military personnel. Therefore, the support from the military is a viable option to function the logistic parts or vegetable distribution centres. Subsequently the process can be transferred to the civilian logisticians from the Government and the private sector.
There are also many spill-over effects to the region; villages around the distribution centres can build warehouses and rent it to various organisations. Further, the Government can offer tax-free interest holidays to the investors who are investing on related business to boost the supply chains.
Temperature control is not a critical issue in fruits and vegetable warehousing. Commercial air conditioners can do the job because the fruits and vegetables can be preserved at 19 degrees centigrade. There will be more logistic-related job opportunities can emerge and the population in the area will be able to benefit from the system. Finally, the life standard of the area will be upgraded and support the country’s economic system.
Local model
Sri Lanka must develop an active local distribution model to suit the different needs of perishable items produced in Sri Lanka. The second aspect is identifying the high yielding areas and high consumption areas of the space depending on the level of social imprints and different land use models. At present, the Ministry had identified three main areas to setup the centres, i.e. Dambulla, Meegoda and Narahenpita, which has to be reanalysed and the centres relocated depending on yield and consumption by end users.
The centres should be connected through the rail network as much as possible because it is the mode which gives scale economy to the business while supporting the spill-over effect to reduce road congestion, which one can observe routinely during early morning. Subsequent areas can be supported with transloading by light truck loads and other light modes of transport like Battas and hand tractors.
Considering the high yielding areas recommended by the Ministry of Agriculture, the following areas can be set up as collecting centres which supply perishables to the distribution centres: Jaffna, Puttalam, Trincomalee, Polonnaruwa, Galle and Mannar. Further to that, distribution centres can be located at Dambulla, Colombo, Nuwara Eliya, Hambantota and Batticaloa. Another category is the dual support centres which can perform the both collecting and distribution functions, which can be segregated to Dambulla, Anuradhapura, Nuwara Eliya and Hambantota.
Transportation at the following centres should be rail linked and facilitated by intermodal transportation systems including on dock terminals, intermodal equipment and necessary service areas. Apart from that can use the equipment like ‘roadrailers’ which can move both on road and railways, reducing the intermodal terminal time and extending the line haul. That will increase the efficiency of consignments and profit margins of vendors while customers benefit with a competitive price.
Conclusion
Distribution centres are a critical institute to link the farmer/producer to the market. I have given a few tools and concepts in previous paragraphs regarding the supply chain compatible with the Sri Lankan concept. India has established this concept to a certain extent but not through the Government machinery. They established this concept through a prominent super market chain. They have developed the back office management system in support with the ERP systems and introduced this to the total farmer community.
In Sri Lanka, Cargills and Keells supermarkets are implementing this system to a certain extent to a realistic negotiated price for a farmer as well as to the customer. Government involvement is minimal for the vegetable distribution system but has the potential to give more impetus to the respective supermarket chain in order to give better win-win solutions to the country. Even for the Government sector, this is a new kind of business but there are more avenues for employment generation.
During the late ’70s and early ’80s the Government was doing this business in a profitable way under the concept of ‘Markfed’, but that efficient system was destroyed due to malpractices and lethargy at the end of the ’80s. However, the Government cannot neglect the procedures and the agriculture sector cannot be driven on subsidisation continuously. If this trend continues, the total agricultural sector might collapse and farmers may leave the agricultural sector due to losses and uncertainty.
Therefore, an available and realistic model has to be implemented in coordination with the transport sector and warehouse sector with efficient IT platforms like SAP to develop quality, accuracy and speed. The system also block many avenues presently open for corruption and malpractices in the sector and help the farmers and the country to prosper.
(The author is a specialist in transportation logistics systems and management. He presently conducts lectures on the subject for the Transportation and Logistics Management Degree and Masters at CINEC Maritime University. He had published many articles on transportation, logistics and management.)
