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

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 changing market for distribution: implications for Exel Logistics

This paper has been written to compliment a previous Working Paper (The Evolution of a Distribution Brand: The Case of Exel Logistics) and to some extent allows that company’s development (1989- 1993) to be placed in the context of marketplace and industry changes. I wish to examine three of the main trends affecting the distribution industry over the same period. Firstly, the move towards the centralisation of operations by both manufacturers and retailers, secondly at the debate surrounding contracting-out and in-house distribution activities and finally, the issues under consideration must be seen in a wider context - that of distribution and the Single European Market (SEM), which could be said to be the most important development facing the distribution industry for many years. These trends will be discussed in some detail and, where appropriate, from Exel Logistics’ perspective in order to consider how far the company has gone both in dealing with marketplace changes and in achieving its aims.School of Managemen

The Role of Contracts in the Organic Supply Chain: 2004 and 2007

Organic food products are excellent candidates for contract production and marketing because they are produced using a distinct process and are in high demand. This report summarizes survey data on contracting in the organic sector, addressing the extent of contracting, the rationale for using contracts, and contract design for select commodities. The central survey data were collected from certified organic handlers (intermediaries)in the United States who marketed and procured organic products in 2004 and 2007. Contracting is widespread in the organic sector, and, in 2007, firms used contracts most frequently to secure organic products essential to their business and to source products in short supply. Large firms were more likely to use contracts for procurement, and these firms contracted for a larger share of their procurement needs. Nearly all contracts required suppliers to provide evidence of organic certification. Firms using contracts rarely assisted suppliers with obtaining organic certification or the transition to organic. Most contracts include provisions regarding quality, and quality verification was an essential component of these contracts. Prices were determined in a variety of ways and, in some cases, depended on delivered quality.Organic supply chain, contracts, organic marketing, organic procurement, intermediaries, certified organic handlers, contract design, certified organic, Agribusiness, Marketing,

PUBLIC POLICY RESPONSES TO INCREASED VERTICAL LINKAGES IN AGRI-FOOD SUPPLY CHAINS

vertical coordination, vertical linkage, public policy, agri-food supply chains, supply chain management, Agribusiness, Q1, L1,

Supply Chain Management and the Changing Structure of U.S. Organic Produce

Replaced with revised version of paper 08/31/06.supply chain, produce, organic, vertical coordination, Agribusiness,

Smallholder Participation in Agricultural Value Chains: Comparative Evidence from Three Continents

Supermarkets, specialized wholesalers, and processors and agro-exporters’ agricultural value chains have begun to transform the marketing channels into which smallholder farmers sell produce in low-income economies. We develop a conceptual framework through which to study contracting between smallholders and a commodity-processing firm. We then conduct an empirical meta-analysis of agricultural value chains in five countries across three continents (Ghana, India, Madagascar, Mozambique, and Nicaragua). We document patterns of participation, the welfare gains associated with participation, reasons for non-participation, the significant extent of contract non-compliance, and the considerable dynamism of these value chains, as farmers and firms enter and exit frequently.

Regional resilience in recessionary times: a case study of the East Midlands

Purpose: Since the 1990's the fashion industry has reflected the issues generally arising in the manufacturing sector, namely rapid and deep structural changes, the development of new supply chain relationships, ICT impacts and increasing globalisation with the attendant issues of ethical sourcing, off-shoring, new emerging markets and recessionary ripples. This paper focuses on one particular aspect of the fashion industry, namely the apparel sector and in particular 'fast fashion' to explore the issues arising for the SMEs in the supply chain. Approach: The research adopts a qualitative methodology and is longitudinal in nature, spanning 5 years from August 2006. The first stage of the research is reported here, where a series of focussed interview scenarios were conducted over an eighteenth month period. The sample of 12 SMEs was a convenience one, drawn from the 30 participants who took part in a business to business event in Leicester, a geographical location which acts as a microcosm of the apparel industry. Interviews were used to elicit narrative data about was what was actually happening in these apparel supply chains. Findings: The apparel supply chain has changed significantly due to recessionary ripples and structural changes. The SMEs have had more success in managing the upstream rather than the downstream relationships and relationships between buyer and suppliers continue to be fractious. Innovation has occurred but is hampered by the relationships that persist. Culture has proved to be a key dimension

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