Martin Hingley

Power Imbalance in UK Agri-Food Supply Channels: Learning to Live with the Supermarkets?

This study investigates the issue of power in the context of UK agri-food industry vertical business-to-business relationships, where the majority of control lies in the hands of large multiple retailers. Predominant in agri-food channels is the reduced supplier sourcing model; featured is the widespread application of Category Management (CM) and network supply co-ordination, through a new breed of super middlemen. The received view from the Relationship Marketing (RM) literature with its emphasis on trust, dyadic symmetry and mutuality is questioned. It is contended, alternatively that other types of relationships, for example, those based on selfishness are equally relevant; and that power imbalanced business relationships are just as important to the understanding of business exchange. Further, power should be a central consideration when concerned with business relationships and imbalance in power is no specific barrier to parties entering into collaborative relationships or to their success. This article contends that acceptance of power-imbalance is a key first-step to successful relationship building in agri-food channels and although collaborative chain activity is endorsed, suppliers are advised that this still means operating within conditions of imbalanced power and reward.

Power imbalanced relationships: cases from UK fresh food supply

Purpose – This study investigates the issue of power in business‐to‐business relationships and constitutes an appraisal of the theory relating to issues of supply chain relationships; in which the received view from the relationship marketing literature with its emphasis on trust, dyadic symmetry and mutuality is questioned. It is contended, alternatively that other types of relationships, for example, those based on selfishness are equally relevant; and that power imbalanced business relationships are just as important to the understanding of business exchange.Design/methodology/approach – Specific reference is made to power relationships in vertical food supply channels in the UK, where the majority of control lies in the hands of large multiple retailers. The paper cites case material drawn from studies into the relationships between UK‐based fresh food supplier organisations and their principal customers, the leading UK food retailers.Findings – Specific outcomes are determined with regard to issues o...

Relationship Management in the Supply Chain

In this paper, the focus is on relationship management and its implications for Small‐Medium Enterprise suppliers (SMEs). Specific insights are provided into retailer‐supplier relationships in the UK fresh produce (fruit and vegetable) market. This sector faces a process of concentration in all parts of the supply chain determined by backward vertical integration at the initiation of powerful multiple retail buyers. The author examines the nature of relationships in a generic product group from the perspective of buyers and sellers and their interaction, utilizing material from multiple depth interviews. Results concern issues of relationship formality, exclusivity, power‐dependency, relevance of organizational size, partnered growth potential and risk which lead to a number of provisional conclusions regarding the management of relationships in the supply chain

Using fourth‐party logistics management to improve horizontal collaboration among grocery retailers

Purpose – There is a paucity of literature considering horizontal collaboration among grocery retailers, suppliers, and third‐party logistics (3PL) providers. This paper seeks to investigate benefits of and barriers to the use of fourth‐party logistics (4PL) management as a catalyst for horizontal collaboration.Design/methodology/approach – Three suppliers, three logistics service providers (LSPs), and one grocery retailer participated in semi‐structured interviews for this exploratory qualitative study.Findings – Large LSPs can establish 4PL management but the significant investment required to do so is a deterrent. Interviewees believed 4PL would negatively influence the grocery retailer‐supplier dynamic but simultaneously would provide key potential benefits. Retaining supply chain control means more to grocery retailers than cost efficiencies realised through horizontal collaboration.Research limitations/implications – Fierce competition among major grocery chains means that most are unwilling to part...

Traceability as part of competitive strategy in the fruit supply chain

This paper discusses traceability as part of information management in fruit supply chains of Emilia-Romagna, Italy. A review of the rules in use for traceability distinguishes between a proper traceability and a traceability plus (T+), embedded of many value attributes. Elements of competitive strategy, considered in the analysis of fruit supply chins of Emilia-Romagna, try to demonstrate that not only strategic but also operative choices determine the way a single firm or filiere manages traceability and information issues. Applications of such elements to buyers and sellers selection as well as to competing retailers of fruit supply chain, verify the hypothesis.

The importance of brand in the industrial purchase decision: a case study of the UK tractor market

Purpose – With brands being an important source of competitive advantage, knowledge of branding is needed to inform their management. After reviewing the literature, the article aims to report the findings of a case study that investigated the role of branding in the industrial purchase of agricultural tractors in the UK. The studys overall conclusion is that branding can play an important role in industrial purchase decisions.Design/methodology/approach – Various attributes, together with levels of these attributes, were identified from the literature and a series of semi‐structured interviews with three farmers and farm contractors. Subsequently, conjoint analysis was employed to reveal how purchasers made their purchase decision. A total of 428 farmers and farm contractors (a 28.7 per cent response rate) ranked 25 cards that had been constructed to profile various hypothetical tractor designs.Findings – Five attributes appeared from the literature review and interviews – brand name, price, dealer prox...

Supplier-retailer relationships in the UK fresh produce supply chain

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).

Marketing of agricultural products: case findings

This article focuses on the relationship marketing approach to marketing of agricultural products. The article provides specific insights into, and comparisons between, suppliers of two particular agricultural products sectors: in Britain, the fresh produce (fruits and vegetables) sector and, in New Zealand, the wine sector. The article examines the nature of marketing relationships from the perspective of the suppliers in these sectors and their relationships, networks, and interactions with importers and retail buyers in the food and beverage industry. The research methodology is qualitative and inductive in nature and utilises multiple cases. Interpretation is first through content analysis of each individual case in order to identify important themes, clusters, and patterns in the research data and secondly through across-case analysis. Investigated marketing issues include the following: nature of relationship marketing, implementation of relationship marketing, and monitoring and measurement of relationship marketing.

Exploring growth in vertical inter‐firm relationships: small‐medium firms supplying multiple food retailers

This paper presents new insights into the growth of small and medium‐sized enterprises (SMEs) engaged in vertical inter‐firm relationships. It adopts a processual and resource‐based perspective and focuses on the experiences of fresh produce businesses which have achieved high rates of growth while supplying the UK’s large multiple food retailers. The context in which these suppliers operate is shown to be a complex and dynamic supply chain, characterised by increasing structural concentration and close vertical linkages. The primary research investigates how certain SMEs have prospered in an apparently “hostile” environment. It includes a programme of matched‐depth interviews, conducted across the retailer‐supplier dyad. Content analysis of transcripts reveals six factors which appear to be strongly associated with the formation of “successful” relationships. In subsequent interactions, securing “developmental” supplier status appears to open the way to a self‐reinforcing cycle of Penrosian learning and reinvestment. This cycle contributes to growth in the supplier firm. The authors argue that, with certain crucial caveats, growth‐oriented SMEs can develop mutually beneficial relationships with much larger “customer” firms. The paper concludes by drawing out wider policy implications and indicating how this contextualised approach might be used in other contexts.

Development of the grocery retail market in China: a qualitative study of how foreign and domestic retailers seek to increase market share

Purpose – The purpose of this paper is to investigate the development of the grocery retail market in China. International retailers have been in China for more than ten years, during which period a series of profound changes has occurred in the Chinese retail sector. International retailers introduced advanced retail techniques and managerial approaches; domestic retailers grew more sophisticated in their supply chain management. Foreign‐based retailers in China can compete in hypermarket and supercentre formats because they offer higher‐quality products and achieve larger economies of scale. Domestic retailers compete by operating smaller formats and maintaining good relationships with governments and local communities. However, formerly state‐owned domestic retailers appear less competitive because they lack funds and adopt poor management styles. This study aims to make recommendations about future developments by domestic and foreign grocery retailers.Design/methodology/approach – The paper takes the...