Benefits of Interfirm Coordination in Food Industry Supply Chains.

  • Stank T
  • Crum M
  • Arango M
  • 57

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Abstract

The article examines the linkage between inter-firm supply chain coordination and logistical performance on key logistical elements in the food industry. Mounting evidence from academic researchers and business practitioners, however, supports the contentions of the benefits of the integrated supply chain management processes extolled in ECR. Supply chain management extends a firm's capabilities by coordinating operations to encompass source, make, and delivery processes in collaboration with channel partners and suppliers. Coordinated operations enable higher levels of service provision and reduced overall cost, two goals that are mutually exclusive in traditional operating systems. The objective of this research is to investigate the relationship between inter-firm supply chain coordination and performance on key logistical elements. The food industry was selected for the study because of its leadership in ECR and other supply chain management initiatives. The small contribution margins and perishable nature of many of its products make efficient supply chain management extremely important for food companies.

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Authors

  • Theodore Stank

  • Michael Crum

  • Miren Arango

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