The effects of innovation on channels on distribution

There exists a certain wisdom in management which accepts that there will always be problems which by their very nature are insoluble; nevertheless many remain which, due to the application of particular management skills, are potentially more capable of solution. This research programme is pitched at the latter category in the belief that at least some improvement in current practice is feasible provided a more fundamental level of understanding of the relevant (underlying) mechanisms can be achieved. Professor E.C. Zeeman of Warwick University confirms this view with the comment, made to the writer in conversation, that "explanation should reduce the arbitrariness of description". It is only through attainment of this 'explanation' level of understanding that meaningful strategic action becomes possible. Primarily our aim here is to explain and, if possible, predict how channels of· distribution react when subjected to the forces of· change, and more specifically, change in the form of innovation A review of the literature pertinent to innovation reveals some disturbing knowledge gaps. In particular, there appears to be a general ignorance of the possible consequences of innovation, and a corresponding lack of any concerted attempt to suggest how innovation (and its consequences) may be managed in an interorganizational context. Similarly, a state-of-the-art review of the distribution channels literature leads us to conclude that, like so much of the_ general marketing literature, it is predominantly descriptive in nature. Many of the issues are developed in piecemeal fashion and hence there is no generally applicable conceptualization. Given these problems,· any attempt at predicting the effects of innovation on channel behaviour patterns is premature and bound to fail. In order to even approach our original objective therefore, it firstly becomes necessary to attempt development of a new conceptual scaffolding with 'explanation' and 'predictive' capabilities. to do this we chose to search well outside the accepted boundaries of management science literature, seeking concepts from a wide range of disciplines and inter-disciplines, building the bridges between these and observed behaviour, and using systems theory as the core around which to develop a model with more general applicability. Our research orientation is therefore predominantly theoretical but, nevertheless has substantial practical relevance. Two actual cases of significant recent innovations in the UK food/ grocery industry are used as vehicles to partially test the model, and the analysis is extended into the predictive dimension using changes delineated by a Delphi futures forecast. The intention is to use the model to anticipate (or predict) what systemic effects can be expected subsequent to the introduction of innovation. The emphasis throughout is on assessing the implications of such changes using the language and concepts -central to our model. Because the external environment is such a key influential in any 'open system' situation, considerable attention is paid to developing this aspect. Since. we are concerned with finding a new way of viewing distribution channel systems, we have adopted a macro orientation throughout" in the belief that detailed refinements can be undertaken by future researchers working within the framework established here. As such soundness of the overall logic scheme is regarded as critical, and certainly of more fundamental importance than any requirement to measure .,, individual parameters. The value of such a broad orientation should overshadow any imperfections in detail which will almost certainly emerge. Generally, the model (and its component parameters) look promising, and our findings tend to indicate that it is no longer necessary to dilute the true complexity of distribution channel systems in order to achieve some understanding of what is happening within. It is now possible to evaluate in a conceptual sense, the effects of innovation on a channel system using stability criteria, and further, to assess the viability of such innovation in terms of Ashby's 'variety' principle.Ph

Does collaboration pay in agricultural supply chain? An empirical approach

This paper examines the effect of different types of collaboration on the level of Postharvest Food Losses (PHFL) and the proportion of low-quality peaches produced using a unique data-set of Greek peach producers. Quantile regression techniques are adopted to estimate the effects at different points of the conditional distribution of our variables of interest. The findings of this study suggest that high levels of collaboration between producers and cooperatives are associated with both low levels of PHFL and a low proportion of low-quality peaches. We also find that specific types of collaboration, such as ‘goal congruence’, can play a significant role in reducing PHFL and improving the quality of peach production at the extremes of the distribution. Important policy implications regarding collaborative practices and systems that can be implemented to reduce PHFL and boost a producer’s performance together with sustainability credentials are drawn from this study

Realities of supply chain collaboration

Successful supply chain collaboration (SCC) practices are rather exceptional, yet collaboration is believed to be the single most pressing need in supply chain management.In this paper we discuss the realities of SCC, present prerequisites for the collaboration process, indicate where the process starts and where it may terminate.During the discussion we make use of the concepts of Theory of Constraints (TOC) and approach SCC as an ongoing effort dealing with the supply chain constraints.The roles of the entities in this ongoing effort are not always clear.Often SCC is proclaimed to be a joint decision-making process.However, keeping in mind the powerhouses in the chain, we believe that other structures are possible as well.We emphasize the need for: 1) having an adequate supply chain strategy and well-articulated goals, which form the basis for: 2) leading supply chain change, and: 3) governing the continual process of strategy alignment and supply chain change, which is itself a dynamic process.These three tasks are featured by many interactions and characterize the continuous improvement of a SCC process.A step-by-step approach like this enables the involved chain entities to climb the ladder of collaboration and take the supply chain performance to a higher level.

An empirical investigation of 3rd and 4th party logistics provider practices in Australia

19 page(s

Customer segmentation based on buying and returning behaviour

Purpose – The purpose of this paper is twofold: first, to empirically test whether a "one size fits all" strategy fits the fashion e-commerce business and second, to evaluate whether consumer returns are a central aspect of the creation of profitability and, if so, to discuss the role of returns management (RM) in the supply chain strategy. Design/methodology/approach – Transactional sales and return data were analysed and used to categorise customers based on their buying and returning behaviours, measuring each customer’s net contribution margins. Findings – The e-commerce business collects a vast quantity of data, but these data are seldom used for the development of service differentiation. This study analysed behaviour patterns and determined that the segmentation of customers on the basis of both sales and return patterns can facilitate a differentiated service delivery approach. Research limitations/implications – This research empirically supports the theory that customer buying and returning behaviours can be used to appropriately categorise customers and thereby guide the development of a more differentiated service approach. Practical implications – The findings support a differentiated service delivery system that utilises a more dynamic approach, conserving resources and linking the supply chain and/or organisational strategies with customers’ buying and returning behaviours to avoid over and underservicing customers. Originality/value – Consumer returns are often viewed as a negative aspect of doing business; interestingly, however, the authors revealed that the most profitable customer is a repeat customer who frequently returns goods