SUPPLY CHAIN INTEGRATION IN THE FOOD AND CONSUMER GOODS INDUSTRIES

The interorganizational structures necessary to implement and achieve the logistical performance improvements identified in the Efficient Consumer Response (ECR) initiative and related supply chain management concepts are difficult to develop. Firms continue to struggle to implement integrated programs and techniques, particularly with respect to changing operating structures, relationships, and mindsets to facilitate true supply chain integration. This research explores the logistical strategies and structures used by selected food and consumer goods firms to integrate their supply chains. It illustrates effective integration strategies and identifies critical success factors and barriers to successful ECR implementation. A framework is used to guide managers in developing the competencies essential to integrating the supply chain and to establishing the relationships necessary to operate in an ECR environment. The framework, entitled Supply Chain 2000, depicts supply chain value creation as achieving synchronization and coordination across four critical supply chain flows: product/service; market accommodation; information; and cash.Industrial Organization,

Supply chain management implementation in the Spanish grocery sector: An exploratory study

This paper explores the integration process that firms follow to implement Supply Chain Management (SCM) and the main barriers and benefits related to this strategy. This study has been inspired in the SCM literature, especially in the logistics integration model by Stevens [1]. Due to the exploratory nature of this paper and the need to obtain an in depth knowledge of the SCM development in the Spanish grocery sector, we used the case study methodology. A multiple case study analysis based on interviews with leading manufacturers and retailers was conducted. The results of this analysis suggest that firms seem to follow the integration process proposed by Stevens, integrating internally first, and then, extending this integration to other supply chain members. The cases also show that Spanish manufacturers, in general, seem to have a higher level of SCM development than Spanish retailers. Regarding the benefits that SCM can bring, most of the companies identify the general objectives of cost and stock reductions and service improvements. However, with respect to the barriers found in its implementation, retailers and manufacturers are not coincident: manufacturers seem to see more barriers with respect to aspects related to the other party, such as distrust and a lack of culture of sharing information, while retailers find as main barriers the need of a “know-how”, the company culture and the history and habits.Supply chain management, grocery sector, logistics integration process

Channel Management and differentiation strategies: A case study from the market for fresh produce

The paper analyses the current differentiation strategies in the market for fresh produce. First a short review of the literature on channel structure and product differentiation is presented, in order to identify, on a theoretical grounding the incentives for differentiation strategies. Second, a case study is drawn of a UK channel intermediary organisation carrying out differentiation policies in the fresh produce category (on behalf of UK multiple retailer customers) supplied by a dedicated Italian grower. Results show that in the fresh produce industry there is room for product differentiation, but with contradictory welfare effects.fresh produce, product differentiation, channel structure and management, Agribusiness, Marketing,

Think Local-Act Local: Is It Time to Slow Down the Accelerated Move to Global Marketing?

In view of the accelerated move of great corporations towards global marketing, the strategic changes of such companies raise interesting questions. Is marketing globalization reaching its limits after years of implementation? Is it time for companies to rethink their strategies and move back, like Coca-Cola, to a multi-domestic marketing approach?Global Marketing, Multi-Domestic Marketing Approach, Brand Equity, Drawbacks of Marketing Globalization, Coca-Cola

Innovation in Marketing Channels

In more recent years, the context of globalization in which market channel structures and strategies are developing is bringing to a more complex concept of marketing channels, with disintermediation or reintermediation, multichanneling and new roles/specializations that are emerging as new issues.In this context, innovation in marketing channels becomes a complex, multiorganizational, multidisciplinary activity that requires collaboration and interactions across various entities within the supply chain network. In recent years, the innovation processes in marketing channels have occurred with high intensity and speed, especially following the changes spurred by technology that allowed the adoption of more efficient organizational solutions.Retail; Channel Structure; Innovation in Marketing Channels; Retail Technological Innovation; Global Markets

Retailing under resale price maintenance: economies of scale and scope, and firm strategic response, in the inter-war British retail pharmacy sector

The article examines the impact of resale price maintenance (RPM) on market structure, productivity, and competitive advantage in British retail pharmacy. In contrast to influential studies, but consistent with contemporary and recent work, it is shown that the major multiples were able to ameliorate the negative growth impacts of RPM. Higher profit margins ‒ principally from larger manufacturer discounts and backward integration – were used to fund initiatives aimed at boosting aggregate sales and economies of scale and scope. These relationships are explored using a recently discovered national establishment-level survey of retail pharmacists’ costs and margins, together with internal data for Boots Ltd

The 2020 Vertical Merger Guidelines: A Suggested Revision (March 26, 2020)

The FTC and DOJ requested comments on their draft Vertical Merger Guidelines in January 2020. This article is a complete alternative set of suggested Vertical Merger Guidelines that reflects and supplements the approach explained in the comments submitted by the author along with Jonathan. Baker, Nancy Rose and Fiona Scott Morton, as well as their other comments, and might be read in conjunction with those comments. This suggested revision of the Agencies’ draft expands the list of potential competition harms and provides illustrative examples. It expands and unifies the discussion and treatment of potential competitive benefits. It deletes the quasi-safe harbor and suggests the circumstances under which competitive harms raise lessened concerns on the one hand and heightened concerns on the other

Vertical integration and firm boundaries : the evidence

Since Ronald H. Coase's (1937) seminal paper, a rich set of theories has been developed that deal with firm boundaries in vertical or input–output structures. In the last twenty-five years, empirical evidence that can shed light on those theories also has been accumulating. We review the findings of empirical studies that have addressed two main interrelated questions: First, what types of transactions are best brought within the firm and, second, what are the consequences of vertical integration decisions for economic outcomes such as prices, quantities, investment, and profits. Throughout, we highlight areas of potential cross-fertilization and promising areas for future work