A resilient pricing and service quality level decision for fresh agri-product supply chain in post-COVID-19 era

Abstract

PurposeThis paper investigates how the channel leadership strategies develop a post-coronavirus disease (COVID-19) resilient agri-supply chain, which reduces supplier and retailer's price loss and enhances the logistics service quality level considering logistics outsourcing of agri-product especially for the rapidly changing market condition.Design/methodology/approachBased on the classical leadership theory, two channel leadership strategies, i.e. LPL and SL, are considered. The proposed framework first derives the equilibrium price and service quality level decision among the supplier, the logistics provider and the retailer. Then it compares both leadership strategies in terms of the equilibrium prices and service quality theoretically. This article also presents a case study of Arabian dates pricing and supply chain to test the theoretically derived propositions.FindingsSelection of suitable leadership strategy is a critical factor for profit maximization of the supply chain drivers and proper optimization of equilibrium price and service quality. Here, the product's quality and the market's socio-economic condition play an important role in selecting a suitable leadership strategy. A random transformation of the physical market to an e-commerce portal creates a wide variation of the market's socio-economic parameters, affecting the equilibrium pricing and the logistics provider's service quality.Research limitations/implicationsThis study proposes a post-COVID-19 resilient agri-supply chain framework considering price and quality-dependent stochastic market demand, incorporating a wide range of socio-economic factors in the model to counteract the effect of rapid behavior change of agri-market due to COVID-19 norms. This research examines the effect of different channel leadership strategies to facilitate suitable decisions on prices and service quality and retrieve the profit of the supplier, retailer and logistics provider. The future models can incorporate competitiveness in logistics outsourcing, fourth-party logistics (4PL) and contract farming in the agri-supply chain. Each of the extensions can open avenues in different directions.Practical implicationsAs the post-COVID-19 market and the customer behavior is randomly changing, and the traditional market is rapidly converting into supermarkets and e-commerce portals, this paper examines the model with a wide variety of e-commerce portals with multi-variation of product. It is conclusive that the product's quality and the market's socio-economic behavior significantly impact the equilibrium decision. The drivers of the supply chain must take them into account before choosing a particular channel leadership strategy.Originality/valueThis study considers a multi-product and multi-market (e-commerce) model by integrating a wide variety of products and the market's socio-economic parameters. The model is tested in a price and quality-dependent stochastic market condition, contributing to the literature by reconciling two different channel leadership strategies into the global logistics of fresh agri-product.

Innovation-oriented dynamic capabilities of logistics service providers, dynamic resilience and firm performance during the COVID-19 pandemic

“…Following either an internal approach, in which LSPs construct attributes for assessing their services, or a more objective approach, in which customers' perceptions are compared with their expectations (Thai, 2013), many scientific studies have been conducted in order to develop LSQ scales (Bienstock et al, 1997(Bienstock et al, , 2008Rahman, 2006;Politis et al, 2014), to describe the relationship between LSQ and customer satisfaction (Mentzer et al, 2001, Kilibarda et al, 2016Sohn et al, 2017), or to address a particular context and perspective concerning LSQ (Thongkruer and Wanarat, 2021;De and Singh, 2021). In the conceptual framework, five items are used to define LSQ.…”

“…, 2016; Sohn et al. , 2017), or to address a particular context and perspective concerning LSQ (Thongkruer and Wanarat, 2021; De and Singh, 2021). In the conceptual framework, five items are used to define LSQ.…”

Coordinating a three-level contract farming supply chain with option contracts considering risk-averse farmer and retailer

“…In recent years, FAPs are receiving more attention, and numerous scholars have studied FAP issues in operations management [1,10,11]. Most of studies about coordination of FAP supply chain have focused only on two-level supply chain.…”

Fourth-Party Logistics Environmental Compliance Management: Investment and Logistics Audit

“…Logistics service demand management is critical to service supply chain management, as it significantly influences customer demand [34]. De and Singh [35] examined the impact of different channel leadership strategies to promote proper decision making on prices and logistics service quality in the fresh agri-product supply chain in the post-COVID-19 era. Zhang, et al [36], investigated the attractiveness and effectiveness of the 4PL-driven and private lending-driven financing models when a capital-constrained 3PL seeks credit loans.…”