Supplier-retailer relationships in the UK fresh produce supply chain

Hingley, Martin and Lindgreen, Adam and Casswell, Brett (2006) Supplier-retailer relationships in the UK fresh produce supply chain. Journal of International Food & Agribusiness Marketing , 18 (1 & 2). pp. 49-86. ISSN 0897-4438

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Abstract

Over the past decade, the UK fresh produce (fruit, vegetables, and salads) supply chain has undergone numerous changes, with retailers becoming increasingly powerful. The overall trend is towards the industry being dominated by a few large corporations operating on a national level, with some corporations even operating on a European or global scale. This process, which could significantly impact on the supplierretailer relationships, is examined in this study using indepth interviews with participants from the fresh produce supply chain. Amongst the findings are the following: Supply chain advancements, including backhauling, and factory gate pricing are causing some controversy because suppliers feel that these initiatives do not benefit their relationships with retailers. There is room for supplierretailer relationship improvement in areas such as trust, co-operation, and collaboration. Retailers, who have significant supply chain power, are starting to acknowledge the importance of suppliers in the gaining of gaining retail market share. Lastly, the intense process of supplychain rationalisation that we have seen in recent years appears to be leveling out in the UK fresh produce supply, such that there is less anticipated further rationalisation. The study outlines a series of recommendations for how suppliers (retailers) can improve their relationships with retailers (suppliers).

Item Type:Article
Additional Information:Over the past decade, the UK fresh produce (fruit, vegetables, and salads) supply chain has undergone numerous changes, with retailers becoming increasingly powerful. The overall trend is towards the industry being dominated by a few large corporations operating on a national level, with some corporations even operating on a European or global scale. This process, which could significantly impact on the supplierretailer relationships, is examined in this study using indepth interviews with participants from the fresh produce supply chain. Amongst the findings are the following: Supply chain advancements, including backhauling, and factory gate pricing are causing some controversy because suppliers feel that these initiatives do not benefit their relationships with retailers. There is room for supplierretailer relationship improvement in areas such as trust, co-operation, and collaboration. Retailers, who have significant supply chain power, are starting to acknowledge the importance of suppliers in the gaining of gaining retail market share. Lastly, the intense process of supplychain rationalisation that we have seen in recent years appears to be leveling out in the UK fresh produce supply, such that there is less anticipated further rationalisation. The study outlines a series of recommendations for how suppliers (retailers) can improve their relationships with retailers (suppliers).
Keywords:Supplier retailer relationships, marketing practice, purchasing practice, fresh produce industry
Subjects:D Veterinary Sciences, Agriculture and related subjects > D631 Food and Beverage Manufacture
N Business and Administrative studies > N100 Business studies
N Business and Administrative studies > N240 Retail Management
D Veterinary Sciences, Agriculture and related subjects > D640 Food and Beverages for the Consumer
Divisions:College of Social Science > Lincoln Business School
ID Code:4369
Deposited By: Rosaline Smith
Deposited On:12 Apr 2011 09:03
Last Modified:18 Jul 2011 16:40

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