AN OPERATION AND MARKETING MARGIN OF HYDROPONICS VEGETABLE SUPPLY CHAIN
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Abstract
The objective of this research is to study the supply chain management and marketing margin of hydroponic vegetables business in Kao Kho district, Phetchabun province, which is the important hydroponic vegetables production and distribution source of Thailand. The data was collected from 3 groups of stakeholders throughout the supply chain, namely, the group of growers consisting of 15 samples, the group of collectors consisting of 5 samples, and the group of customers (packing houses, department stores, hotels/restaurants, and fresh markets) consisting of 10 samples. The Supply Chain Operations Reference (SCOR) model was applied to study the connection. Data were analyzed with qualitative data analysis. As for the results of the study, three hydroponic vegetable supply chains were identifed: (1) the supply chain from the growers to the collectors and continue to the fresh markets, which had the marketing margin of 69 percent; (2) the supply chain from the growers to the collectors and continue to the packing houses and then to hotels/restaurants, which had the marketing margin of 80 percent; and (3) the supply chain from the growers to the collectors and continue to the packing houses and then to the department stores, which had the marketing margin of 95 percent. The data analysis results showed that the group of growers had the highest cost and risk in their production. In addition, the collectors played an important role to balance demand and supply along the supply chain and were the middle men to deliver hydroponic vegetables to all stakeholders in all chains. The main limitation of management process in the chain was the quality control that resulted in high marketing margin from the growers to the department stores being the supplu chain with the highest marketing margin.
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