Overview and classification of coordination contracts within forward and reverse supply chains

Among coordination mechanisms, contracts are valuable tools used in both theory and practice to coordinate various supply chains. The focus of this paper is to present an overview of contracts and a classification of coordination contracts and contracting literature in the form of classification schemes. The two criteria used for contract classification, as resulted from contracting literature, are transfer payment contractual incentives and inventory risk sharing. The overview classification of the existing literature has as criteria the level of detail used in designing the coordination models with applicability on the forward and reverse supply chains.Coordination contracts; forward supply chain; reverse supply chain

The impact of private label foods on supply chain governance

Purpose – The purpose of this paper is to investigate the impact of the introduction of private label (PL) foods upon the governance of the food supply chains. Design/methodology/approach – The authors conducted a multi-case study research examining the launch and development of PL cheeses in four large national-wide retail chains. The paper focused on the category of Products of Designated Origin (PDO) cheeses, including the popular feta cheese. Data collection involved semi-structured interviews and secondary sources of information. Data analysis involved single-case and within-case analyses. Findings – There is a strong motive to launch and develop PL cheeses due to increasing consumer demand. Retailers choose suppliers based on criteria such as: compliance to quality assurance standards, modernisation of processing facilities, implementation of legislation, credibility, experience, and reputation. Retailers use contracts and prefer small suppliers than medium-sized companies. Supply chain governance turns from market to hierarchy status, which performs better in terms of supply chain cost, food quality, and consumer satisfaction. The structure of food industry is also affected by pressure put on medium-sized food companies. Research limitations/implications – The paper is based on a multiple case study design that does not provide static generalisations, yet it offers a stepping stone to building new theory about supply chain governance, how it evolves and its effects on supply chain performance. Practical implications – The introduction of PL cheeses favours small and dynamic cheese processing units willing to adopt retailer standards and prices over larger units, which poses a real threat to the survival of regional-wide food companies. Originality/value – Few studies have examined how supply chain governance evolves and what triggers a change in governance structures

Success Strategies Being Implemented in Fresh Milk Supply Chains

Deregulation of the Australian dairy industry, and ensuing supermarket strategies are transforming the fresh milk supply chains. Factors such as increasing consumer awareness, concerns about food safety and environment, innovation, supply chain integration and rationalisation of supply base are adding momentum to this transformation. Milk processors in response to changing market expectations are getting proactive in their relationship with retailers across all aspects of business, innovating to generate sufficient returns from proprietary brands and strategically orienting themselves to develop a mixed customer portfolio and appropriate management structures to service that portfolio. Milk producers are expanding businesses to achieve production and cost efficiencies and strengthening contractual relationships on input and output side for a greater security.Livestock Production/Industries,

Choosing an organisational form: the case of collaborative procurement initiatives

This paper deals with different organisational forms of collaborative procurement and provides insight into when to use which form. Different forms from the literature are compared with empirical examples to give an overview of forms, which are then described in terms of strategy, skills and organisation. Whilst acknowledging variations, the paper distinguishes between two main forms: virtual networks and third-party organisations. Using empirical data and four theoretical perspectives (transaction cost economics, resource-based view, contingency theory, agency theory), the paper reflects on when which form can be used and presents an overall framework to help choose an organisational for

To Greener Pastures: An Action Research Study on the Environmental Sustainability of Humanitarian Supply Chains

Purpose: While humanitarian supply chains (HSCs) inherently contribute to social sustainability by alleviating the suffering of afflicted communities, their unintended adverse environmental impact has been overlooked hitherto. This paper draws upon contingency theory to synthesize green practices for HSCs, identify the contingency factors that impact on greening HSCs and explore how focal humanitarian organizations (HOs) can cope with such contingency factors. Design/methodology/approach: Deploying an action research methodology, two-and-a-half cycles of collaboration between researchers and a United Nations agency were completed. The first half-cycle developed a deductive greening framework, synthesizing extant green practices from the literature. In the second and third cycles, green practices were adopted/customized/developed reflecting organizational and contextual contingency factors. Action steps were implemented in the HSC for prophylactics, involving an operational mix of disaster relief and development programs. Findings: First, the study presents a greening framework that synthesizes extant green practices in a suitable form for HOs. Second, it identifies the contingency factors associated with greening HSCs regarding funding environment, stakeholders, field of activity and organizational management. Third, it outlines the mechanisms for coping with the contingency factors identified, inter alia, improving the visibility of headquarters over field operations, promoting collaboration and resource sharing with other HOs as well as among different implementing partners in each country, and working with suppliers for greener packaging. The study advances a set of actionable propositions for greening HSCs. Practical implications: Using an action research methodology, the study makes strong practical contributions. Humanitarian practitioners can adopt the greening framework and the lessons learnt from the implementation cycles presented in this study. Originality/value: This is one of the first empirical studies to integrate environmental sustainability and HSCs using an action research methodology

Cooperation in manure-based biogas production networks: An agent-based modeling approach

Biogas production from manure has been proposed as a partial solution to energy and environmental concerns. However, manure markets face distortions caused by considerable unbalance between supply and demand and environmental regulations imposed for soil and water protection. Such market distortions influence the cooperation between animal farmers, biogas producers and arable land owners causing fluctuations in manure prices paid (or incurred) by animal farmers. This paper adopts an agent-based modeling approach to investigate the interactions between manure suppliers, i.e., animal farmers, and biogas producers in an industrial symbiosis case example consisting of 19 municipalities in the Overijssel region (eastern Netherlands). To find the manure price for successful cooperation schemes, we measure the impact of manure discharge cost, dimension and dispersion of animal farms, incentives provided by the government for bioenergy production, and the investment costs of biogas plants for different scales on the economic returns for both actor types and favorable market conditions. Findings show that manure exchange prices may vary between −3.33 €/t manure (i.e., animal farmer pays to biogas producer) and 7.03 €/t manure (i.e., biogas producer pays to animal farmer) and thanks to cooperation, actors can create a total economic value added between 3.73 €/t manure and 39.37 €/t manure. Hence, there are cases in which animal farmers can profitably be paid, but the presence of a supply surplus not met by demand provides an advantage to arable land owners and biogas producers in the price contracting phase in the current situation in the Netherlands

Forest-Mill Integration: A Transaction Costs Perspective

In Canada, where public ownership of forestland is prevalent, a central decision facing policy makers is how to allocate timber resources to private forest companies. Debates tend to focus around what proportion of the annual harvest should be devoted to markets opposed to long-term contracts. To give a guide to policy makers, we surveyed forest firms from New Zealand and Sweden where this decision is based purely on a commercial basis. On average, mills source fifty percent of their fibre from the market. However, using a fractional logit model, we test whether theories from transaction cost economics influence this decision. Results are consistent with transaction cost economics; firms decrease the proportion of fibre sourced from a market with increasing fibre specificity, capital intensity, and uncertainty.transaction costs, forest tenure, vertical integration

Participatory Demand-supply Systems

AbstractIntroducing the notion of Participatory Demand-Supply (PDS) systems as socio-technical systems, this paper focuses on a new approach to coordinating demand and supply in dynamic environments. A participatory approach to demand and supply provides a new frame of reference for system design, for which the engagement of all stakeholders plays an important role, as does distributed ICT. This approach has been applied to an industrial case to explore new opportunities enabled by distributed ICT for communication, negotiation, joint decision-making, and collective learning required for coordinating demand and supply. The application results in a platform as a test-bed for collecting relevant information to study the participation of stakeholders (actors) in coordinating a PDS system