The measurement of benefits from the enablers for supply chain partnership in the UK fresh produce industry

Abstract

This paper is concerned with the nature of the benefits from and the factors that enable successful supply chain partnerships to be developed between suppliers and retailers in the UK fresh produce industry. A review of the literature on buyer-supplier relationship is presented which highlights three main elements: intangible pre-requisites, tangible enablers and benefits, from which a theoretical model is derived. The categorisation and composition of enablers, internal and joint and the benefits hypothesised in the model are then tested empirically through the analysis of data collected through a postal survey of UK fresh produce suppliers. The results provide support for the hypotheses, derived from the literature, that the benefits from supply chain partnerships come in the form of cost savings, improved customer service, more effective marketing and sales growth and that key partnership enablers may be categorised as specific internal capabilities based around innovation, cost control and communication systems, and joint (buyer/supplier) capabilities in activities relating to innovation, management, communication, production planning, investment and control.