Retailer-led Regulation of Food Safety : Back to Spot Markets?

At the end of the 1990s European retailers had significantly contributed to restructuring fresh agricultural product food chains (meat, fruit and vegetables), and had turned away from spot markets in order to create their own supply chains, based on private technical requirements and verification systems usually managed from within the firm. However, over the last few years a second type of system has appeared, as the range of standards adopted by retailers has been broadened to include generic standards common to several retailers. A telling example of this new approach is provided by the EUREPGAP protocol. In this paper we propose a theoretical analysis of this new procedure and its possible impacts.food safety, spot markets, retailer, supply chain, Food Consumption/Nutrition/Food Safety,

E-logistics of agribusiness organisations

Logistics is one of the most important agribusiness functions due to the idiosyncrasy of food products and the structure of food supply chain. Companies in the food sector typically operate with poor production forecasting, inefficient inventory management, lack of coordination with supply partners. Further, markets are characterised by stern competition, increasing consumer demands and stringent regulation for food quality and safety. Large agribusiness corporations have already turned to e-logistics solutions as a means to sustain competitive advantage and meet consumer demands. There are four types of e-logistics applications: (a) Vertical alliances where supply partners forge long-term strategic alliances based on electronic sharing of critical logistics information such as sales forecasts and inventory volume. Vertical alliances often apply supply chain management (SCM) which is concerned with the relationship between a company and its suppliers and customers. The prime characteristic of SCM is interorganizational coordination: agribusiness companies working jointly with their customers and suppliers to integrate activities along the supply chain to effectively supply food products to customers. E-logistics solutions engender the systematic integration among supply partners by allowing more efficient and automatic information flow. (b) e-tailing, in which retailers give consumers the ability to order food such as groceries from home electronically i.e. using the Internet and the subsequent delivery of those ordered goods at home. (c) Efficient Foodservice Response (EFR), which is a strategy designed to enable foodservice industry to achieve profitable growth by looking at ways to save money for each level of the supply chain by eliminating inefficient practices. EFR provides solutions to common logistics problems, such as transactional inefficiency, inefficient plant scheduling, out-of-stocks, and expedited transportation. (d) Contracting, a means of coordinating procurement of food, beverages and their associated supplies. Many markets and supply chains in agriculture are buyer-driven where the buyers in the market tend to set prices and terms of trade. Those terms can include the use of electronic means of communication to support automatic replenishment of goods, management of supply and inventory. The results of the current applications of e-logistics in food sector are encouraging for Greek agribusiness. Companies need to become aware of and evaluate the value-added by those applications which are a sustainable competitive advantage, optimisation of supply chain flows, and meeting consumer demands and food safety regulations. E-business diffusion has shown that typically first-movers gain a significant competitive advantage and the rest companies either eventually adopt the new systems or see a significant decline in their trading partners and perish. E-logistics solutions typically require huge investments in hardware and software and skilled personnel, which is an overt barrier for most Greek companies. Large companies typically are first-movers but small and medium enterprises (SMEs) need institutional support in order to become aware that e-logistics systems can be fruitful for them as well

The Relationship between Supply Chain Coordination and Quality Assurance Systems: A Case Study Approach on the German Meat Sector

The German meat industry faces a high demand for food safety and traceability. After several meat scandals in the recent past, efforts have to be made to regain consumer trust and to assure access to export markets. Apart from a few niche markets, there is no focal company in the German pork supply chain which efficiently coordinates food chain information, harmonizes the multiplicity of different IT systems or takes on professional public relations in charge of the whole sector. In cases of food crises, essential up- and downstream information slowly flows across the supply chain which hinders both seamless traceability and the harmonization of production processes between the various stages of the supply chain. This contribution focuses on the opportunities for more efficient coordination based on spot market environments. With reference to the theory of organization economics, a case study of the QS Qualität und Sicherheit GmbH as the leading certification scheme that addresses the German meat industry was carried out. Several non-classical certification activities which fall within the scope of coordination were identified with QS. Based on the assumption that the company continuously improves the coordination of the supply chain, there are opportunities for the meat sector as a whole which are pointed out in the conclusion.Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety,

What does the 'New Quality' mean in view of Polish dairy cooperatives?

This paper investigates the relationship between the chosen quality strategy and the vertical co-ordination mechanism of a focal company by using new institutional economics, as well as strategic management approaches. The theoretical findings are tested using evidence from 19 of the largest Polish dairy cooperatives, surveyed in spring 2006. The results show that all co-ops recognise the changing market requirements and are treating food quality as more than plain food safety and the ability to continuously reproduce an ex ante defined set of attributes. However, compared to investor-owned dairies, co-ops are disadvantaged in quality-based competition due to their lower flexibility and access to financial and qualified human resources. To overcome this intense competition, co-ops modify their production profile, which leads to market segmentation. Moreover, the choice of quality strategy is an economic activity, guided by the co-op's profit expectations within the selected market. The chosen quality strategy determines the design of the vertical co-ordination mechanism. Thus, the higher the requirements for the final product, the further quality management systems go beyond a firm's boundaries, and the higher is the intensity of the relationships between the intermediary stages in the dairy chain.network theory, relationship management, quality management, cooperatives, Poland, Agribusiness, Livestock Production/Industries,

Italian country image: the impact on business models and relations in Chinese business-to-business markets

Italy is renowned around the world for its design, fashion, Mediterranean cuisine and other Made in Italy products. These products are often associated with known and famous brands, especially in the luxury sector, but many less well-known Italian firms operating in more technical industries, such as in the mechanical or electronic sectors, have a major presence in international markets. These traditional Made in Italy sectors as well as the specialized product sectors create the so-called \u20184Fs\u2019 of Italian excellence. The first group together traditional consumer goods linked to the person and the home. Specialized product sectors include the automation-\u2013mechanical-\u2013rubber-\u2013plastics sector. Despite offering excellent quality products in these sectors, Italy has a lower perceived image than other countries such as Germany. Country of oOrigin (COO) literature is mainly focused on consumer sectors. The abundance of literature on the subject in the industrial sector is lower, and among theorists, two main research streams can be identified. Some believe that COO has the same importance in the consumer market, while others assert that industrial customers operating in a more informed way are less likely to be influenced by it. This present contributionchapter falls within this debate, with the aim of verifying if the COO effect really matters in business-to-business (BTB) relations, particularly in business relations between firms that belong to markets with high cultural distance. We selected China with reference to this investigation. A second objective is to identify the elements that come into play in the evaluation of Italian offers and whether there are differences of perception according to the business sector considered. The methodology used foresees a study developed over three stages (the first stage is quantitative, the second and third stages are qualitative) on a sample of 338 firms in the first quantitative phase and 14 in the subsequent qualitative phases

Business-to-business E-markets in textile industry: An empirical perspective

This research investigates the attitudes and perceptions of the E-Markets as members of their value chain in the textile industry. The study began by formulating a basic understanding of the nature of buyer-to-buyer (B2B)s well as electronic marketplaces. Fundamentally, E-markets change the relationship dynamics between buyers and sellers from one-to-one to many-to-many

CHAIN QUALITY MANAGEMENT IN CO-OPERATIVES

This paper investigates the relationship between the chosen quality strategy and the vertical co-ordination mechanism of a focal company by using new institutional economics, as well as strategic management approaches. The theoretical findings are tested using evidence from 19 of the largest Polish dairy cooperatives, surveyed in spring 2006. The results show that all co-ops recognise the changing market requirements and are treating food quality as more than plain food safety and the ability to continuously reproduce an ex ante defined set of attributes. However, compared to investor-owned dairies, co-ops are disadvantaged in quality-based competition due to their lower flexibility and access to financial and qualified human resources. To overcome this intense competition, co-ops modify their production profile, which leads to market segmentation. Moreover, the choice of quality strategy is an economic activity, guided by the co-op's profit expectations within the selected market. The chosen quality strategy determines the design of the vertical co-ordination mechanism. Thus, the higher the requirements for the final product, the further quality management systems go beyond a firm's boundaries, and the higher is the intensity of the relationships between the intermediary stages in the dairy chain.Network theory, Relationship management, Quality management, Cooperatives, Poland, Institutional and Behavioral Economics,

Quality Management in Supply Chain Networks - The Case of Poland

In this article we suggest that rising quality requirements are key factors for the redesign of food chains. We argue that the food supply proceeds through pyramidalhierarchical strategic networks coordinated by powerful focal firms. These firms choose a quality strategy and employ chain quality management concepts by exerting managerial discretion to achieve the super-ordinate network aims. We introduce and elaborate upon two types of chain quality management: strategic and operative. The theoretical findings have been tested using evidence from the Polish dairy market. Semi-structured interviews were conducted across the various hierarchical levels of the 19 largest Polish dairy cooperatives during the spring of 2006. The results show that the firms’ activities are generally aligned with current market opportunities for optimal enterprise performance. Thus, we determined that manufacturers of well-branded products create an advanced network structure and apply strategic quality management. Networks that have a focal company acting as an external customer of a processor use operative quality management. Some Polish dairies are still not embedded in any supply chain networks; no chain quality management concepts can be installed in these chains because they have no powerful focal firm.chain quality management, dairy cooperatives, network theory, Poland, Agribusiness, Agricultural and Food Policy, Demand and Price Analysis, Farm Management, International Development, Livestock Production/Industries, Production Economics,

The Business Models of E-Marketplace

An electronic marketplace (EM) is an inter-organizational information intermediary that enables participating buyers and sellers to exchange information about price and product offerings and to cooperate on commodity exchange. Prior researches on EM design have not defined EM business model clearly. With a review of existing literatures on business model, this paper developed taxonomy of EM business models and classified existing EMs business model from a network role perspective. Further discussion of the evolution of EM business model is provided at the end

eEnabled internet distribution for small and medium sized hotels: the case of hospitality SMEs in Athens

Advances in information and communications technologies (ICTs) have strategic implications for a wide range of industries. Tourism and hospitality have dramatically changed by the ICTs and the Internet and gradually emerge as the leading industry on online expenditure. The Internet revolutionised traditional distribution models, enabled new entries propelled both disintermediation and reintermediation and altered the sources of competitive advantage. This paper explores the strategic implications of ICTs and the perceived advantages and disadvantages of Internet distribution for small and medium-sized hospitality enterprises (SMEs). Primary research in Athens hotels demonstrates the effects of the Internet and ICTs for secondary markets, where there is lower penetration and ICT adoption. Interviews and questionnaires identified a number of strategies in order to optimise distribution. The analysis illustrates the strategic role of ICTs and the Internet for hospitality organisations and Small and Medium-sized organisations in general. Most hotels employ a distribution mix that determines the level and employment of the Internet. The paper demonstrates that only organisations that use ICTs strategically will be able to develop their electronic distribution and achieve competitive advantages in the future