Horticultural cooperative response to the SCM strategy of European Retailers
Juan Carlos Pérez Mesa
Universidad de Almería
Professor in the Department of Economics and Business (University of Almería)Agribusiness specialist
Jose Felipe Jiménez Guerrero
Universidad de Almería
Professor in the Department of Economics and Business (University of Almería)Agribusiness specialist
Emilio Galdeano-Gómez
Universidad de Almería
Professor in the Department of Economics and Business (University of Almería)Agribusiness specialist
Abstract
Retail distribution is in a constant process of restructuring. One of the primary changes in this process is that of retailer growth, which also happens to be the dominant business formula in this sector. This implies profound... [ view full abstract ]
Retail distribution is in a constant process of restructuring. One of the primary changes in this process is that of retailer growth, which also happens to be the dominant business formula in this sector. This implies profound changes in the processes of Supply Chain Management (SCM). In this context, the supplier of these companies is a weak link that must adapt to the requirements of their customer.
This article describes the various SCM strategies of large retail distribution firms in Europe, focusing on products with a short life cycle, namely, fruit and vegetables. An analysis will be conducted on the horticultural supply chain operation which begins with the grower in southeast Spain and finishes at the majority of European supermarkets.
The European horticultural retail sector grosses 23,000 millions of € in contracts of sale in and out of Europe, moving more than 26 million tons. The sale of these products is complicated as there are numerous actors that can be involved simultaneously, such as growers, importers, and exporters. The primary European buyers are located in Germany, Holland, the United Kingdom and France. Dutch firms are the main exporters, due to their capacity for resale. Spain is the second European exporter thanks to its production potential, and its sector is comprised of relatively small social economy firms. On the whole, southeastern Spain represents 35% of the entire European market.
In this context, and continuing the line of study in this field, an empirical study will be conducted on the perception of companies located at the origin in southeast Spain of everything related to current Supply Chain requirements. Aspects such as product programming, logistics, quality and sustainability are evaluated by means of the Analytic Hierarchy Process methodology. This is done through the use of a series of surveys of a sampling of grower-retailer companies. Furthermore, the effects of said factors of change on the firm’s performance are also assessed.
Among the results it is observed that small-scale suppliers are able to provide flexible and efficient service to retailers. This is especially true when dealing with aspects such as programming and supply quality, although other aspects like transport logistics could be improved.
This study seeks to contribute to the analysis of business adaptation processes when faced with changes in agrifood SCM in the current market where growers are based, primarily in the retail sector of perishable products, such as fruit and vegetables.
Authors
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Juan Carlos Pérez Mesa
(Universidad de Almería)
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Jose Felipe Jiménez Guerrero
(Universidad de Almería)
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Emilio Galdeano-Gómez
(Universidad de Almería)
Topic Area
Topic #12 Networks, Collaborations, Clusters
Session
OS-7C » Agricultural Cooperatives No.4 (09:00 - Friday, 27th May, Barceló Sala 4)
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