Towards sustainable supply strategy in the food industry: the case of Finland

Abstract

Purpose: This paper investigates how sustainability requirements modify supply strategies at different levels in the food industry companies. The paper integrates single supply decisions into firm-level supply strategy and views supply strategy as one coherent strategy in which the decision-making is based on the values and principles of a firm. Design/methodology/approach: The paper captures the decade of change and studies the renewal of supply strategy by utilising two qualitative data sets with a ten years of difference. The data contain 41 interviews from a retailer and 5 of its food supplier companies. Findings: Results confirm that a decade ago only minor attention was channelled towards sustainability whereas today sustainability is a key driver behind supply decisions and supply strategies because firms need to respond to sustainability requirements and challenges. The study presents a framework for analysing different levels (firm, category and supply market levels) of changes and sustainability requirements faced by food companies and their supply strategies. Originality/value: Previously, sustainability has rarely been connected to firm-level supply strategy. This study presents the supply strategy elements that were important for Finnish food industry companies over a decade ago and matches these elements to the needs of today’s firms. As a result, the study incorporates the concept of sustainability with the supply strategy frameworks.