Business-to-business e-commerce: an innovative tool for food chain management

A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished goods, and the distribution of the final goods to customers. The management of food chains, particular of fresh produce chains, need to achieve two goals: (a) create efficient physical flows of products by minimising logistics cost, and reducing lead times (b) run an effective value chain by safeguarding mutual gains for all members of the chain, building trust between suppliers and buyers and at the same time maintaining quality for end consumers. Food chain management was always at a loss for tools to leveraging its efforts on achieving value for chain members and eventually the end-consumers. Although food industry, both in USA and Europe, has experimented with various alternative solutions to this multimillion chain management, yet more can be expected. Business-to-business e-commerce (B2B) appears to be an innovative tool that meets the high standards of the industry and the potential growth. This study examines the uses of B2B in food industry to give chain management solutions. It reviews the uses of B2B and, in particular, highlights the applications of B2B by small agribusiness in order to forge their ring in food chains. It builds upon communication in supply chain. It describes contracting as an example how B2B e-commerce can advance supply activities and reports the development of a B2B olive oil supply chain application. It concludes that B2B can be a strong leverage for food chain management to achieve its goals and produce value for the members of the chain and the end consumers

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

Leveraging Open-standard Interorganizational Information Systems for Process Adaptability and Alignment: An Empirical Analysis

PurposeThe purpose of this paper is to understand the value creation mechanisms of open-standard inter-organizational information system (OSIOS), which is a key technology to achieve Industry 4.0. Specifically, this study investigates how the internal assimilation and external diffusion of OSIOS help manufactures facilitate process adaptability and alignment in supply chain network.Design/methodology/approachA survey instrument was designed and administrated to collect data for this research. Using three-stage least squares estimation, the authors empirically tested a number of hypothesized relationships based on a sample of 308 manufacturing firms in China.FindingsThe results of the study show that OSIOS can perform as value creation mechanisms to enable process adaptability and alignment. In addition, the impact of OSIOS internal assimilation is inversely U-shaped where the positive effect on process adaptability will become negative after an extremum point is reached.Originality/valueThis study contributes to the existing literature by providing insights on how OSIOS can improve supply chain integration and thus promote the achievement of industry 4.0. By revealing a U-shaped relationship between OSIOS assimilation and process adaptability, this study fills previous research gap by advancing the understanding on the value creation mechanisms of information systems deployment

EDI and intelligent agents integration to manage food chains

Electronic Data Interchange (EDI) is a type of inter-organizational information system, which permits the automatic and structured communication of data between organizations. Although EDI is used for internal communication, its main application is in facilitating closer collaboration between organizational entities, e.g. suppliers, credit institutions, and transportation carriers. This study illustrates how agent technology can be used to solve real food supply chain inefficiencies and optimise the logistics network. For instance, we explain how agribusiness companies can use agent technology in association with EDI to collect data from retailers, group them into meaningful categories, and then perform different functions. As a result, the distribution chain can be managed more efficiently. Intelligent agents also make available timely data to inventory management resulting in reducing stocks and tied capital. Intelligent agents are adoptive to changes so they are valuable in a dynamic environment where new products or partners have entered into the supply chain. This flexibility gives agent technology a relative advantage which, for pioneer companies, can be a competitive advantage. The study concludes with recommendations and directions for further research

Determinants of Informal Coordination in Networked Supply Chains

Purpose – Provide insight into the determinants or constructs that enable informally networked supply chains to operate in order to achieve improved operational performance. Design/methodology/approach – The research is based on a wide literature review, focused on the identification of dimensions of informal networking in supply chains along network connectivity, supply chain relationship alignment, informally networked supply chain, and operational performance. These determinants or constructs of informal networking were statistically validated for validity and reliability, using a sample of 231 supply chain professionals. Findings – Four determinant of informal networking were derived: capability connectivity, describing the ability of supply chain partners to rapidly and informally integrate capabilities to service an ad hoc market requirement; relationship alignment or the ability to informally integrate resources across supply chain partners in the context of highly dynamic market situations; the informally networked supply chain itself, measuring the ability of supply chain partners to respond to transient opportunities in the context of highly dynamic markets; and finally operational performance which measures the effect informal networking has on company performance. Research limitations/implications – Future research may investigate the effects of informally networked supply chains on a broader array of measures of company performance, and additional measures of operational performance. Practical implications – These newly developed constructs or determinants give managers further insight into which dimensions need to be fostered to enable informally networked supply chains to operate, and what operational gains may be potentially realised as a result of informal networking. Originality/value – This paper contributes to enhancing the understanding of the newly emerging phenomenon of informal networking in supply chains and how it may yield operational efficiency and effectiveness gains.construct development;coordination;informal networking;supply chain

Supplier-retailer collaboration in food networks: a typology and examination of moderating factors

The aim of this study is to examine Supplier-Retailer Collaboration (SRC) in food networks. Based on an extensive literature on the structural characteristics of trade collaborations, we develop a three dimensional construct of SRC which includes trade marketing, supply chain coordination, and relationship quality. We surveyed a large sample of Greek food retailers and their supplier and found that all three variables are positively related to collaboration efficiency. The findings were verified by a qualitative follow-up study. The differences between retailers and suppliers regarding collaboration factors are also discussed

Multi Agent Systems in Logistics: A Literature and State-of-the-art Review

Based on a literature survey, we aim to answer our main question: “How should we plan and execute logistics in supply chains that aim to meet today’s requirements, and how can we support such planning and execution using IT?†Today’s requirements in supply chains include inter-organizational collaboration and more responsive and tailored supply to meet specific demand. Enterprise systems fall short in meeting these requirements The focus of planning and execution systems should move towards an inter-enterprise and event-driven mode. Inter-organizational systems may support planning going from supporting information exchange and henceforth enable synchronized planning within the organizations towards the capability to do network planning based on available information throughout the network. We provide a framework for planning systems, constituting a rich landscape of possible configurations, where the centralized and fully decentralized approaches are two extremes. We define and discuss agent based systems and in particular multi agent systems (MAS). We emphasize the issue of the role of MAS coordination architectures, and then explain that transportation is, next to production, an important domain in which MAS can and actually are applied. However, implementation is not widespread and some implementation issues are explored. In this manner, we conclude that planning problems in transportation have characteristics that comply with the specific capabilities of agent systems. In particular, these systems are capable to deal with inter-organizational and event-driven planning settings, hence meeting today’s requirements in supply chain planning and execution.supply chain;MAS;multi agent systems

Etransactions in the Australian supply chain setting

Many sectors of the Australian economy have, in recent years, undertaken an analysis of their supply chain structures. Each sector has determined the underlying technologies to be recommended for use on the basis of past practice in that sector and, in some cases, international practice in the sector. In this article, the authors examine the current role of e-transactions within the context of Australian supply chains. Our analysis indicates that there is a bifurcation of technical choices along the demarcations of XML and EDI business solutions. For instance, while Mining and Finance have gone the XML route, Wholesale and Retail Trade, along with Transport and Storage have chosen EDI. Moreover, the Health sector appears to be leaning towards keeping both options open to its organizations. We argue that two factors will need to be considered which will be affected greatly by this parting of the ways on the technology issue. One is the concept of ‘design for supply chain’ which involves demand generation through joint development of new products and the flow of material across different supply chain entities. The second is the impact of the growth of global trade within international economic blocs. A natural conclusion is that Australian industry must support a merging of EDI and XML standards

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

Determinants of EDI (Electronic Data Interchange) Adoption and Integration in the US and Japanese Automobile Suppliers

This paper examines determinants of EDI adoption and integration in the US and Japanese automobile suppliers. The paper constructs several hypotheses based on the transaction-cost and resource- dependence approaches, and tests these hypotheses by using data from the automobile suppliers. Our study shows: (1) the resource-dependence approach seemed more effective in explaining EDI adoption, while the transaction-cost approach seemed more effective in explaining EDI integration; (2) the transaction-cost approach seemed more suited to the US context, while the resource-dependence approach seemed more suited to the Japanese context; (3) EDI adoption and EDI integration had positive impacts on EDI performance in the US, suggesting the higher validity of our framework in the US.Electronic Data Interchange (EDI), Business-to-Business Electronic Commerce, Automotive Industry, Automobile Suppliers, Technology Adoption