SCG International Solutions to Address Starch Supply Chain Management with End-to-End Supply Chain Strategies
Published On: May 31, 2024

Starch is a key raw material used to produce products in various industries, especially tapioca starch, which plays an important role in the production of adhesives, textiles, biodegradable materials, and paper, as well as in food products like pasta, snacks, instant foods, semi-finished foods, sweeteners, and even medical products.

However, many businesses today face issues with starch procurement and stock management for production processes due to inefficient starch supply chain management and price fluctuations of tapioca starch, which vary by season. Inaccurate demand forecasts can lead to various problems, such as maintaining a continuous starch supply, managing the budget for starch procurement, and ensuring the quality of the starch. These challenges can impact production and product quality, as starch is a sensitive product that is affected by environmental factors like temperature, humidity, and contamination during transport. To keep the business running smoothly, sourcing and supply chain management experts need to be brought in to plug the gaps and support smooth business operations. Handling this type of product requires careful attention and inspection at multiple stages.

This article introduces supply chain solutions that help businesses source quality tapioca starch without interruption. With end-to-end supply chain services from SCG International, the food industry and others that rely on starch can keep their business running smoothly.

SCG International Solutions to Address Starch Supply Chain Management with End-to-End Supply Chain Strategies

SCG International offers end-to-end supply chain services for a wide range of industrial products, including various types of tapioca starch. With over 45 years of experience in international sourcing and supply chain management, we provide comprehensive solutions for businesses that rely on these products, helping them avoid raw material shortages in the production process. We offer three efficient solutions that connect businesses seamlessly and help them avoid potential business challenges.

Managing Supply Chain Challenges for Starch Products
with Three Solutions

Price Volatility Challenges of Starch

Starch supply chain management presents a challenge for nearly every business due to price volatility caused by market demand and other factors. Fluctuating prices can make it difficult to manage the budget for starch procurement, and inefficient starch supply checks or inaccurate forecasts of starch usage may result in purchasing starch at higher-than-normal prices, leading to increased production costs and reduced profits. However, SCG International’s end-to-end supply chain services address this issue. Our extensive experience in holistic supply chain management, combined with our strong network, enables us to comprehensively source raw materials and help businesses navigate any situation.

Solution 1

Market Insight & Forecasting : Accurate Market Analysis and Forecasting

A solution that can help prevent issues arising from price fluctuations in starch supply is Market Insight & Forecasting. This solution helps businesses analyze and plan their procurement with accurate data and forecasts based on real-time market demand. This ensures businesses have sufficient starch stock at reasonable prices throughout the year.

Challenges from Seasonal Risks

Starch products are subject to seasonal risks related to the tapioca harvest season. If it is planting season and there is no harvest, production stops, leading to potential shortages or inconsistent product quality at certain times. Businesses need to plan well to prevent starch supply chain challenges.

Solution 2
A Steady Supply With Top Quality Starch

SCG International’s solution helps businesses source enough high-quality industrial and food-grade tapioca starch throughout the year. We understand that starch quality directly affects the properties, taste, texture, and quality of products. Therefore, we source tapioca starch from SCG International’s certified producers in countries like Thailand and Vietnam. Moreover, we have an advantage in sourcing tapioca starch because we lead the ASEAN region in starch sourcing, and Thailand is the world’s largest producer. If a domestic shortage occurs, SCG International’s starch producer network in other countries will continue to supply starch to keep businesses running smoothly.

Challenges in Transportation and Maintaining Product Quality

Another challenge in managing tapioca starch through the supply chain is transportation delays and maintaining product quality. Starch is highly sensitive to environmental conditions and can spoil due to mold, clumping from moisture, or contamination during transport. Without standardized starch supply inspections of temperature, appearance, color, odor, moisture, and more, starch can get damaged. Even if only a portion of the starch fails to meet standards, it can ruin the entire shipment, leading to financial losses and production delays.

Solution 3
Customized & Hassle-Free Logistics Solution

Starch is sensitive to environmental conditions and easily deteriorates without expert supply chain management and effective logistics standards. To address transportation delays and maintain product quality during shipping, SCG International offers starch logistics solutions tailored to each business’s needs. We ensure hassle-free and on-time deliveries and provide systematic partial shipments.

Our transportation process prioritizes safety and product quality by inspecting the cleanliness of packaging and other items that may come in contact with the starch. We also check the temperature, moisture, color, and appearance according to established standards, ensuring no contamination during transport. By implementing inspections during product loading, you can guarantee the absence of contamination throughout transportation, ensuring the utmost quality and safety.

Sourcing Starch for Food and Industry with E2E Supply Chain Management

Food businesses and industries that rely on starch as a primary raw material must prioritize supply chain solutions for sourcing quality starch to ensure product safety. SCG International has the expertise to overcome supply chain obstacles for starch products with end-to-end supply chain management strategies. As a starch wholesale supplier, we professionally and comprehensively meet business needs. If you are facing supply chain challenges, let us be your trusted supply chain partner. Reach out to us today.