The Supply Chain Behind Indoor Farms: An Upcoming Strategic U-Turn?

Every week, discover an editorial written by me on a trendy topic that affects or will affect the sector in the months/years to come.

Photo by Marcin Jozwiak on Unsplash

Good morning readers, operations management in Indoor Ag is critical both in terms of the crop growth process and the construction of new facilities/solutions.

Since the pandemic, transportation costs have increased both nationally and internationally driving the cost of consumables as well as the costs of goods sold up as companies started to acquire inventory for up to a year of operations.

For many years, companies have increased their vertical integration, acquiring suppliers in order to secure their operations, improve their innovation, centralize decisions, and leverage their market share. Nonetheless, this comes at a cost at a time when the industry is hit by exponential costs.