Value-adding partnerships and co-opetition models in the grocery industry

Leading representatives of the European grocery industry formed the European Efficient Consumer Response (ECR-)Initiative in 1995. The goal of this strategic alliance is set to reengineer the way business is done in the industry by implementing cooperative strategies between retailer and manufacturer in order to fulfill consumer wishes better, faster and at less cost. ECR appears thereby in many facets, from a ‘simple’ dyadic value-adding partnership to a sophisticated form of co-opetition, where Supply Chain members have both relationship types – competition and cooperation – at the same time. Our paper discusses these issues first on theoretical bases and then presents empirical results of a comprehensive analysis within a selected European ECR-initiative showing the success factors of managing ECR-partnership relations

The importance of key supplier relationship management in supply chains

Purpose: This paper investigates the impact of key supplier relationship management (KSRM) – understood as an aggregated supply chain management (SCM) process in the upstream direction – on the overall level of the execution of SCM within organizations. Methodology: A conceptual model is developed from a theoretical framework and proposes the capability to do KSRM as a mediator between internal and external SCM resources and SCM execution. A survey of 174 managers representing different supply chain stages is used to test the model through variance-based structural equation modelling. Findings: The findings reveal that external SCM resources directly affect the capability to do KSRM. Nevertheless, internal resources show a considerable indirect impact through external resources and can thus be considered an indirect determinant. The capability to do KSRM in turn impacts upon the level of SCM execution, measured in terms of the integration of business processes, directly and substantially, as well as mediating the effect between SCM resources and the level of SCM execution. Value: The main contribution of this paper is to empirically demonstrate the potential of KSRM for enhancing the level of SCM execution within organizations and consequently the level of integration in supply chains, leading to higher customer and shareholder value

Development and Empirical Test of a Grocery Retail Instore Logistics Model

The purpose of the paper is to introduce a model of Instore Logistics for retail stores. The model attempted to give a picture of all logistics processes that are carried out within a retail outlet from an incoming dock to the check out. The model has afterwards been empirically validated by analyzing the Instore Logistics processes of dairy products in 200 stores in the Austrian grocery retail sector. The findings of the survey show typical problem areas within store operations and identify the impact of the final 50 metres in the store as a key factor impacting upon the success of retail business. The paper continues the work of Raman, DeHoratius & Ton (2001) and Cachon (2001) and the findings contribute to close the execution gap in retail operations

State of the art of Supply Chain Performance Measurement in Danish industrial companies

Purpose: We have examined which dimensions are used by the largest Danish manufacturing companies to measure SCPM at operational, tactical and strategic level, how can these dimensions be classified, and how do these empirical results have implications for practice and selected SCPM-theories. Design/methodology/approach: A deductive structure based on a theoretical framework was used to design an empirical investigation of 54 Danish manufacturing companies, which all have revenue of more than DKK 500 million. Furthermore, qualitative investigation was done by analyzing four casecompanies in order to get a more in-depth picture of how SCPM is used in practice. Findings: The four most used SCPM metrics have downstream focus. Companies that use SCPM have a more deliberated split between metrics with focus on operational, tactical and strategic level. While the quantitative data indicates that non-financial measurements are most frequently used, the qualitative data implies that the companies use financial measures as basis for performance measurement and that results from non-financial measures have second priority. Research limitations/implications (if applicable): The model is limited to large Danish industrial companies and we propose to widen the model to upstream and downstream supply chain partners. Practical implications (if applicable): The paper shows the most important and most frequently used supply chain relevant key performance indicators as well as a process model of how to implement supply chain performance measurement in a company. Original/value: This paper closes the gap between theory and practice within the area of performance measurement and management within the context of supply chain management. The proposed SCPM model has been theoretically developed and empirically validated

The Consumer Direct Services Revolution in Grocery Retailing: an exploratory investigation

Purpose - To provide empirical evidence and explanation of the phenomenon that providers of home delivery of groceries are still of minor importance in highly concentrated retail markets. Design/methodology/approach - Based on a critical literature review three propositions were set up. A web based survey was conducted with two prospective consumer groups for home delivery providers: time starved consumers and consumers with Internet affinity. A structural equation modeling analysis was applied in addition to uni- and bivariate analysis. Findings - In contrast to some assumptions in the literature shopping in stores for groceries was not generally perceived to be an annoying activity. Respondents were aware of their own shopping logistics efforts in terms of spatial and temporal distance when shopping in stores but were unable to convert these efforts into costs. Any perceived inconvenience connected with shopping for groceries had no impact on respondents’ willingness to pay for home delivery services or their future intentions to use such services. Research limitations/implications - The study only investigated two specific consumer groups within highly concentrated urban grocery retail markets. However these groups may be considered typical of most western European countries and thus the study’s findings are of importance to retailers. Practical implications - The major findings suggest that in general home delivery service may not be considered a strategic competitive advantage in grocery retail markets. Other marketing issues such as pricing, assortment and store personnel still substantially affect a consumer’s choice of retail formats. This leads to the conclusion that home delivery providers should either appeal to niche markets and/or offer additional differential criteria compared to traditional retail formats. Originality/value - The paper argues for a different viewpoint for researchers investigating the topic of Internet-based distance retailing. Further, the reintegration of logistical tasks from consumers should not be considered detached from other format choice criteria

Key competences of logistics and SCM professionals - the lifelong learning perspective

Purpose The purpose of this study is to identify specific qualifications and competences required within the field of logistics and supply chain management from the perspective of lifelong learning and hierarchical level. It also reveals a hierarchy level-specific job profile for logistics and supply chain management jobs based on the European Framework for Key Competences and the German Federal Employment Agency. Design/methodology/approach A review of the literature on competences and skills in the field of logistics is combined with an analysis of 832 job postings by means of content analyses and thematic mapping. Findings The academic literature discusses more than 280 skills and competences related to the job profile of logistics and supply chain managers. The majority of these skills represent social skills. Analyses of job postings show significant differences in the required portfolio of skills and competences depending on the hierarchical level of the position. Contrary to the literature, job postings include more cognitive competences and meta-competences than social skills. Originality/value The first contribution of this research is that competences were examined from the perspective of lifelong learning, revealing how this is applied in the field of logistics. The second is that this conceptual framework can be utilised to compare skills and competences between different hierarchical levels. The third contribution refers to identifying a set of skills and competences different to what had been presented in the literature

Analyzing logistical challenges to address food waste in the grocery retail sector

This paper examines the causes of food waste in the grocery retail sector and develops a framework for how logistics and supply chain management actions could mitigate this problem. Customer preferences and perceptions for food are analyzed to determine their influence on the structure of food supply chains and their indirect contribution to food waste at grocery store levels. Based on the literature review, our study identifies five main categories that influence food waste: information flow, demand uncertainties and forecast, inefficiencies in the safety stock and inventory management, disruptions of the cold supply chain, and customers’ perceptions and preferences for food in stores. We propose solutions to these causes as a possible way to alleviate and minimize food waste in the grocery retail sector. At a managerial level, the findings of this paper can lead to positive changes by creating a more efficient food supply chain structure that minimizes food waste in the grocery retail sector. Additionally, the results can have individual implications at a social level regarding customer preferences for and perceptions of food at grocery stores

A Model for Structuring Efficient Consumer Response Measures

Purpose: The purpose of this paper is to propose a model which structures and links different types of efficient consumer response (ECR) measures; it does so by considering the use of both quantitative or ‘hard’ and qualitative or ‘soft’ measures in ECR, emphasizing the importance and causal role of ‘soft’ measures throughout the ECR process. Methodology/Approach: This paper reviews the ECR and performance measurement literature and proposes a model that explains linkages from intra-organizational, inter-organizational and industry prerequisites through ECR activities to ECR outcomes; and highlights the role of performance, behavioural, attitude and capability measures. Two extant studies from Austria and Denmark are examined in the context of the model to exemplify some of its features. Research limitations/implications: The proposed model is presented for primarily future investigation; thus there is no empirical study in this paper other than a comparison of the two extant studies to support some constructs and variables. However, the model represents a structure that can guide future research on more specific ECR elements. Practical implications: The model makes a practical contribution by providing a structure from which measurement or scorecard systems can be established. Originality/value of the paper: The model makes a theoretical contribution by providing an overall structure to link different areas of ECR research such as barriers for ECR implementation, and specific ECR concepts, activities, and their outcomes

Assessing network structures within container shipping industry

Purpose - Container shipping, due to its boundary crossing nature, is generally seen as an international business. A first look into the physical networks of the industry has shown that container-shipping companies operate however rather differently, with different motives for internationalization, and infact show different patterns to their international development. However, there are other important transactional and market-oriented considerations, and overall dynamics that need to be examined before concluding on the internationalization levels of container shipping companies, and the industry. The purpose of this paper is to further investigate the patterns of internationalisation by the examination of the more demand-oriented considerations. Design/methodology/approach - In order to answer the research question, the paper focusses on the examination of the front-end activities and structures like sales office networks and the overall extent of market presence. For this the fundamental sales networks of the companies were considered as a key indicator, and the port networks of the 20 largest container-shipping companies in the world (by TEU capacity) were analyzed. Findings - The resulting data set allows an examination on each company’s overall network at various geographic levels, and a direct comparison of the networks of the companies. It shows that not all shipping companies are highly international. It also shows that market share and total capacity are not necessarily a good indicator for the worldwide presence of a company. Research limitations/implications (if applicable) - The paper adds yet another piece to the interesting puzzle on internationalization patterns of container shipping companies. However, for a complete picture on the internationalization process further work will be required that is based e.g. on the development pattern of single companies and that may also take more the dynamic aspects and comparisons into account. Practical implications - Preceeding work provides insights that are directed towards the port networks and thus toward the more back office oriented resource architecture and the more geographical aspect of physical coverage. By reorganising the focus on the sales network of the single container shipping companies, this paper presents findings that are also applicable to the front end, towards the customer, The comparison of both views is promising interesting insights such as ownership structures and entry modes along with the specific location commitment as a basis for strategic considerations. Originality/value – In the academic literature there is not much to find on the internationalization process and the dominating internationalisation patterns related to container shipping. The paper makes an important contribution in this regard by considering the different aspects of the international shipping networks and by bringing these closer to extant frameworks on internationalization

An International View

This paper discusses factors affecting the execution of supply chain management and presents a conceptual model and six hypotheses based on such factors identified in the literature. The model was tested in two European country-specific cases using structural equation modelling. Findings in both cases confirm the hypothesized hierarchical order of three proposed antecedents: ‘internal SCM conditions’ affect ‘joint SCM conditions’ which in turn influences collaborative ‘SCM-related processes’. Managerial implications are that firms in both countries should adopt these hierarchical steps to ensure a rigorous and appropriate approach to achieving full and integrative SCM