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

A Conceptual Framework of Reverse Logistics Impact on Firm Performance

This study aims to examine the reverse logistics factors that impact upon firm performance. We review reverse logistics factors under three research streams: (a) resource-based view of the firm, including: Firm strategy, Operations management, and Customer loyalty (b) relational theory, including: Supply chain efficiency, Supply chain collaboration, and institutional theory, including: Government support and Cultural alignment. We measured firm performance with 5 measures: profitability, cost, innovativeness, perceived competitive advantage, and perceived customer satisfaction. We discuss implications for research, policy and practice

Agrifood logistics and food traceability

Traceability systems are recordkeeping systems designed to track the flow of product and/or product attributes through the production process and throughout the supply chain from producers to consumers. The aim of this study is to review the current status of traceability systems in food companies, compare different traceablity systems applied by food companies, and analyse the sources of variation in their efficiency. A traceability system is characterized by its breadth, depth, and precision. Differences in efficiency are attributed to the costs and benefits of traceability’s implementation to these three traceabiligy characteristics. Three case studies were conducted during the period April-May 2005. All cases were large food companies, with more than 250 employees, and operating for more than 20 years in Greece. All companies had a traceability system in operation. All companies had implemented a traceability system not because legislation required, but because they found it was a valuable business tool. In the operation level, the main problem was whether or not suppliers could provide traceability information in a useful format. All companies reported the same benefits from the traceability system: Better control of supply chain as well as better quality assurance –higher levels of food quality & safety

Designing effective contracts within the buyer-seller context: a DEMATEL and ANP study

This study examines the factors that contribute to effective contract design within the context of buyer-seller relationship. Research streams on contract factors, supply chain factors, environmental factors, and competitive factors were reviewed to arrive at 18 contract factors. A hybrid model of Decision-Making Trial and Evaluation Laboratory (DEMATEL) and Analytic Hierarchy Process (ANP) analysed empirical data collected from 17 experts to weight the importance of contract factors. It was found that most important factors are, in order of significance: policies, supplier technology, force majeure, formality, relationship learning, buyer power, legal actions, liquidated damages, supplier power and partnership

Investigating e-business practices in tourism :a comparative analysis of three countries

This study examined the behaviour of tourist companies in relation to the adoption of e-business technologies and applications. The study aimed to identify groups of companies with homogenous behaviour among three European countries (Greece, Portugal and Norway). Based on data from a European survey, the study employed two-step cluster analysis which revealed 14 clusters of common behaviour (five clusters in Greece, five in Portugal and four in Norway). These clusters were named as: Leaders’ ‘Technology Experts’, ‘Fast Adopters’ ‘Beginners’, ‘Late Adopters’. In Norway, the group ‘Late Adopters’ also included companies characterised as ‘Beginners’ in the other two countries. We suggest further investigation among European countries in order to reveal more groups of similar behaviour toward e-business adoption

Policy, economic, and industry repercussions of current e-business diffusion rate In European food industry

European policy is focussed on promoting the business techniques and new ways of working which will provide the economic and social foundation of the information society in Europe. To help policy makers define their programmes, and to monitor the effectiveness of these policies, it is essential to examine progress as well as identify areas requiring active support. This study examined the repercussions of e-business progress in the food sector based on the findings of a large quantitative survey that investigated the extent, scope, nature of and factors affecting the speed of e-business development in Europe for the Food, beverages and tobacco sector. For this purpose a pan European survey was conducted by EU market observatory called “European e-Business Market Watch” during the period February and March 2003. This study is based on the findings and reports of “European e-Business Market Watch” which can be accessed in the Internet (www.e-businesswatch.org). This study discusses the economic implications for the individual enterprise, the industry structure as well as policy issues such as quality assurance, promotion of ICT education, training and “cultural” change. Regarding economic implications, e-business has played a indirect role because it has significantly involved only in Large Scale Enterprises which proportionally are a small percentage in food industry. For SMEs, the impact of e-business was mainly to the ICT facilities currently at their disposal: websites, the Internet, and e-mail. Regarding industry implications, e-business has not led to significant structural changes, but it has steamed up certain processes. E-business has armoured supply chain management with advanced but sophisticated network technologies. Regarding policy issues, an e-business solution capable of guaranteeing food safety to consumers and vertically integrating business operations across the supply chain would have a good chance of extraordinary diffusion in the food industry

SMEs e-business behaviour: a demographics and strategic analysis

The aim of this research was to understand the strategic uses of e-business systems and technologies by classifying companies and particularly small and medium businesses according to demographics as well as e-business behavior variables.The study was based on data from a large quantitative survey of European E-business W@tch for the period 2007 using questionnaire interviews (N=409). We employed two-step cluster analysis, multinomial logistic regression and stepwise descriminant analysis as the most appropriate methods for our analysis. The findings revealed six clusters associated to e-business adoption. The six groups differ in terms of demographic characteristics as well as e-business applications they use. We found that the following clusters exist: (a) Leaders: large companies that extensively use ebusiness in a strategic manner (b) innovators: use e-business in an way that allows them to innovate and differentiate from other companies (c Beginners: small and medium companies across all sectors that only recently start to use e-business (d) Unready Adopters: micro and small companies that lag behind (e) Late Adopters: small-size companies but larger that the Unready Adopters, that appear not to be interest in the advances of ICTs and (f) Laggards: micro companies with little use of e-business.The results of our survey can positively contribute to managers aiming to take advantage of technological advances in electronic business as well as to any researcher who study e-business management and applications

The effects of human resource practices on firm growth

Although the connection between firm growth and labour is well documented in economics literature, only recently the link between human resources (HR) and firm growth has attracted the interest of researchers. This study aims to assess the extent, if any, to which, specific HR practices may contribute to firm growth. We review a rich literature on the links between firm performance and the following HR practices: (1) job security (2) selective hiring, (3) self-managed teams (4) compensation policy, (5) extensive training, and (6) information sharing. We surveyed HR managers and recorded their perceptions about the links between HR practices and firm growth. Results demonstrated that compensation policy was the strongest predictor of sales growth. Results provide overall support for all HR practices except of job security. Eventually, selecting, training, and rewarding employees as well as giving them the power to decide for the benefit of their firm, contribute significantly to firm growth

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