Response of Fresh Food Suppliers to Sustainable Supply Chain Management of Large European Retailers

This article analyses new supply chain management (SCM) strategies of the largest retail distribution chains in Europe within the context of differing sustainability concepts and approaches. An analysis is carried out of the strategic plans of such retailers, as well as recent developments in the sector. We begin by identifying the priority actions of retailers and then evaluating, by means of a survey, how small horticultural marketing firms (mainly cooperatives) in southeast Spain respond to the needs of these retailers. Subsequently, an analysis is carried out on these small marketing firm exporters to identify the relative weight which they assign to the variables assessed, while also considering the existing relationships between said weighted variables and business profits. Our results show that retailers tend to establish more simplified supply chains (that is, shorter and more vertical), essentially demonstrating their interpretation of a sustainable supply chain. In contrast, horticultural marketing firms have concentrated more on tactical and operational issues, thereby neglecting environmental, social and logistics management. Thus, their success rate in meeting the sustainability demands of their customers can be considered medium-low, requiring a more proactive attitude. Improved and collaborative relations, and the integration of sustainability concepts between suppliers (marketing firms) and their clients could contribute to successfully meeting sustainability demands. From the point of view of the consumer, close supplier–retail relationships have solved food safety issues, but the implementation of sustainability in other supply chain activities and processes is a pending issue. We propose strategic approximation and collaboration to bridge the gap between the varying sustainability demands in the supplier–retail relationship within perishable supply chains. Although this article specifically addresses fresh vegetable supply chains, the results may be extrapolated to other agri-food chains with a similar structure

Euro-Mediterranean Supply Chain Developments and Trends in Trade Structures, in the Fresh Fruit and Vegetable Sector

Supply chains for fresh fruit and vegetables, are going through considerable re-shaping phase worldwide. This study analyses the trends which impose those changes and focuses mainly at the wholesale and export trading of the Euro-Mediterranean supply chain (namely, on how fruit and vegetable producer, wholesale and export firms react to the market forces that direct them). Producer organizations and wholesale firms one the one hand of The Netherlands, Germany and other EU member countries, and of Non- EU Member Mediterranean countries, on the other hand, are the subject of this study. Two graphical representation of the Dutch and the German supply chains respectively are presented here as the main instrument to demonstrate the dynamics of the sectors structure, by describing the position, function size and development for the main chain partner in each of the aforementioned markets. The Euro-Med dimension of the fruit and vegetable supply chain, is analyzed by attempting an impact assessment and an estimation of the potential development of further supply chain integration or collaboration between firms in EU member countries and Mediterranean partner countries. The existing policy framework (the CMO for the fruit and vegetable sector of the CAP), is also taken into consideration as it particularly affects the relationships developed between producer organizations and wholesale firms and retail chains.Euro-Med Free Trade analysis, Supply chain restructure, supply chain efficiency, fresh fruit and vegetables trade, vertical coordination, Industrial Organization, International Relations/Trade,

A conceptual framework for crop-based agri-food supply chain characterization under uncertainty

[EN] Crop-based Agri-food Supply Chains (AFSCs) are complex systems that face multiple sources of uncertainty that can cause a significant imbalance between supply and demand in terms of product varieties, quantities, qualities, customer requirements, times and prices, all of which greatly complicate their management. Poor management of these sources of uncertainty in these AFSCs can have negative impact on quality, safety, and sustainability by reducing the logistic efficiency and increasing the waste. Therefore, it becomes crucial to develop models in order to deal with the key sources of uncertainty. For this purpose, it is necessary to precisely understand and define the problem under study. Even, the characterisation process of this domains is also a difficult and time-consuming task, especially when the right directions and standards are not in place. In this chapter, a Conceptual Framework is proposed that systematically collects those aspects that are relevant for an adequate crop-based AFSC management under uncertainty.Authors of this publication acknowledge the contribution of the Project 691249, RUC-APS "Enhancing and implementing Knowledge based ICT solutions within high Risk and Uncertain Conditions for Agriculture Production Systems" (www.ruc-aps.eu), funded by the European Union under their funding scheme H2020-MSCA-RISE-2015Alemany Díaz, MDM.; Esteso, A.; Ortiz Bas, Á.; Hernández Hormazabal, JE.; Fernández, A.; Garrido, A.; Martin, J.... (2021). A conceptual framework for crop-based agri-food supply chain characterization under uncertainty. Studies in Systems, Decision and Control. 280:19-33. https://doi.org/10.1007/978-3-030-51047-3_2S1933280Taylor, D.H., Fearne, A.: Towards a framework for improvement in the management of demand in agri-food supply chains. 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Farm SMEs sustainability assessment based on Bellagio Principles. The case of Messinian Region, Greece

Purpose: Sufficient support of the sustainability of farm products embedded in a region (such as Products of Designated Origin / PDOs) to overcome significant obstacles to access domestic and remote markets. Main research question is how to overcome such inherent difficulties and transform them into challenges and opportunities to the new market environment. Design/methodology /approach: Combination of simplicity with the complicated issue of sustainability for awareness of small farmers SMEs and their collective representatives. Improve the understanding of the Sustainable Supply Chain Management (SSCM), to facilitate sustainability through use of the ‘Bellagio Principles’ for assessing sustainability of local farm products and facilitating further enhancement. Use of certain PDOs farm products of the Messinian region of Greece, such as local Sfela Feta cheese, olive oil, olives and raisins, to assess sustainability and improvement. Formation of a conceptual constructive action R&D framework of broader use in building-up and performing implementation of holistic supply chain strategy. Expected Findings: Providing better understanding of the SSCM. Insights on how SMEs co-operatives can collectively apply holistic strategies concerning local farm PDOs to fulfil competitiveness and sustainability requirements, under variant product and market conditions. Originality / Value : Improving the know-how, focusing on the sustainability of regional, traditional products and its effects upon supply chain performance and market access. Practical implications for regional-based farm SMEs in the design of holistic value creation strategies to produce sustainable competitive advantage. Interactive cause and effect dynamic implications of sustainable development on social, economic and physical environment

Differences in retail strategies on the emerging organic market

Abstract: Purpose – The organic product market can be considered as an emerging market. Since the 1990s it has experienced rapid growth, and supermarket chains have become the sales channel with the largest market share and are the main driver for further growth. However, different supermarket retail groups have very different strategies concerning the marketing of organic products. The purpose of this paper is to gain insight into the different strategies of retailers who are active in the organic product market and to explain the drivers which may underlie them. Design/methodology/approach – The strategies of the three most important Belgian retailers that market organic products, and in particular organic beef, are analyzed. Data were collected through interviews with the retailers' staff and through observations in retail outlets. Also, GfK-household panel data which recorded all purchases of 3,000 Belgian households and a postal survey with 529 respondents were used as data sources. Findings – The different strategies used by retailers to market organic foods are associated with the overall characteristics and marketing strategies of the retail groups. Some retail groups have clear “first mover” advantages from engaging in the organic product line, while for others an adaptive strategy is more appropriate. Research limitations/implications – The insights from this paper will help the understanding and facilitate the development of future strategies for organic and other high-value or premium products, which will be of interest to researchers and stakeholders who are active in these markets. Practical implications – The retail sector is not a single homogeneous block, but instead consists of retailers who pursue quite different strategies. This concept may have major implications for the future development of high-value markets. Originality/value – Existing relevant theories were applied to the adoption of the organic product line, a segment in the portfolio of retailers that is becoming more important. The empirical material collected sheds new light on the drivers behind retail strategies

Hybrid Simulation-based Planning Framework for Agri-Fresh Produce Supply Chain

The ever-increasing demand for fresh and healthy products raises the economic importance of managing Agri-Fresh Produce Supply Chain (AFPSC) effectively. However, the literature review has indicated that many challenges undermine efficient planning for AFPSCs. Stringent regulations on production and logistics activities, production seasonality and high yield variations (quantity and quality), and products vulnerability to multiple natural stresses, alongside with their critical shelf life, impact the planning process. This calls for developing smart planning and decision-support tools which provides higher efficiency for such challenges. Modelling and simulation (M&S) approaches for AFPSC planning problems have a proven record in offering safe and economical solutions. Increase in problem complexity has urged the use of hybrid solutions that integrate different approaches to provide better understanding of the system dynamism in an environment characterised by multi-firm and multi-dimensional relationships. The proposed hybrid simulation-based planning framework for AFPSCs has addressed internal decision-making mechanisms, rules and control procedures to support strategic, tactical and operational planning decisions. An exploratory study has been conducted using semi-structured interviews with twelve managers from different agri-fresh produce organisations. The aim of this study is to understand management practices regarding planning and to gain insights on current challenges. Discussions with managers on planning issues such as resources constraints, outsourcing, capacity, product sensitivity, quality, and lead times have formed the foundation of process mapping. As a result, conceptual modelling process is then used to model supply chain planning activities. These conceptual models are inclusive and reflective to system complexity and decision sensitivity. Verification of logic and accuracy of the conceptual models has been done by few directors in AFPSC before developing a hybrid simulation model. Hybridisation of Discrete Event Simulation (DES), System Dynamics (SD), and Agent-Based Modelling (ABM) has offered flexibility and precision in modelling this complex supply chain. DES provides operational models that include different entities of AFPSC, and SD minds investments decisions according to supply and demand implications, while ABM is concerned with modelling variations of human behaviour and experience. The proposed framework has been validated using Table Grapes Supply Chain (TGSC) case study. Decision makers have appreciated the level of details included in the solution at different planning levels (i.e., operational, tactical and strategic). Results show that around 58% of wasted products can be saved if correct hiring policy is adopted in the management of seasonal labourer recruitment. This would also factor in more than 25% improved profits at packing house entity. Moreover, an anticipation of different supply and demand scenarios demonstrated that inefficiency of internal business processes might undermine the whole business from gaining benefits of market growth opportunities

Business Process Modelling in Demand‐Driven Agri‐Food Supply Chains

Agri ‐food companies increasingly participate in demand‐driven supply chains that are able to adapt flexibly to changes in the marketplace. The objective of this presentation is to discuss a process modelling framework, which enhances the interoperability and agility of information systems as required in such dynamic supply chains. The designed framework consists of two parts: an object system definition and a modelling toolbox. The object system definition provides a conceptual definition of business process in demand‐driven supply chains from a systems perspective. It includes an application of the Viable Systems Model of Stafford Beer to supply chains, and classifications of business processes, control systems and coordination mechanisms. The modelling toolbox builds on the terminology and process definitions of SCOR and identifies three types of process models: i) Product Flow Models: visualize the allocation of basic transformations to supply chain actors and the related product flows from input material into end products (including different traceability units based on the GS1 Global Traceability Standard); ii) Thread Diagrams: visualize how order driven and forecast driven processes are decoupled in specific supply chain configurations (positions Customer Order Decoupling Points), and how interdependences between processes are coordinated; iii) Business Process Diagrams: depict the sequence and interaction of control and coordination activities (as identified in Thread Diagrams) in BPMN notation. The framework is applied to several agrifood sectors, in particular potted plants and fruit supply chains. The main benefits are: i) It helps to map supply chain processes, including its control and coordination, in a timely, punctual and coherent way; ii) It supports a seamless translation of high level supply chain designs to detailed information engineering models; iii) It enables rapid instantiation of various supply chain configurations (instead of dictating a single blueprint); iv) It combines sector specific knowledge with reuse of knowledge provided by generic cross industry standards (SCOR, GS1)

Process benchmarking in the fruit and vegetable supply chain

The purpose of this paper is to present the results of an international process benchmarking and to compile models of best practice business processes. The results of our international process benchmarking study allowed us to develop a framework, comprising three models, for better meeting customers’ needs. The first model presents how to understand and meet customers’ needs generally. The second model comprises those operations, work practices and business processes, which are essential in meeting customers’ needs. The third model (organisation designing model) helps the company to check, whether or not the operations, work practises and business processes of the second model can be found in and applied to the company.process benchmarking, customers’ needs, business processes, organisation designing model, Agribusiness,

The Potential of an Enhanced Cooperation Measure in the EAFRD (2014-2020): the case of Ireland

This report was funded by the Department of Agriculture, Food and the Marine (DAFM) through the National Rural Network (February-May, 2012).The current Proposal for a Regulation of the European Parliament and of the Council on support for Rural Development by the European Agricultural Fund for Rural Development (EAFRD) includes Article (36) Cooperation that is potentially instrumental for realising the objectives of FOOD HARVEST 20204. The purpose of this report is to assess the scope and potential of Article 36 in the context of Irish agriculture and its findings have four key aspects. First, the main areas of confluence between Article 36 and primary policy objectives as set out in Food Harvest 2020 are identified. Second, a range of cooperation categories and types relevant to Article 36, many of which are operational in Ireland, are profiled. Third, drawing from case-studies of these co-operation types5, the operational characteristics of each type are presented, focusing on compatibility with Article 36. Possible supports that would encourage and assist the formation and operation of the cooperation types on a broad scale into the future, and also any possible constraints that would prevent success, are indicated. Fourth, a brief discussion of some key implementation considerations arising from the analysis overall is presented.Department of Agriculture, Food and the Marin