Intermediaries in power-laden retail supply chains: An opportunity to improve buyer–supplier relationships and collaboration

Hingley, Martin; Lindgreen, Adam; Grant, David

doi:10.1016/j.indmarman.2015.05.025

Cited by 56 publications

(49 citation statements)

References 56 publications

(87 reference statements)

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“…The role of a facilitator for HLC is often advocated by research in this area. Most notably, Hingley et al (2011Hingley et al ( , 2015 argue that in the grocery sector a 4PL may be required to coordinate the actors involved and bring them together to realise the benefits that can accrue from a successful HLC project.…”

Section: Inter-company Collaboration Within and Beyond The Supply Chainmentioning

confidence: 99%

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Horizontal logistics collaboration for enhanced supply chain performance: an international retail perspective

Rodrigues

Harris

Mason

2015

Supply Chain Management: An International Journal

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2015. Horizontal logistics collaboration for enhanced supply chain performance: an international retail perspective. ABSTRACTPurpose -Horizontal logistics collaboration (HLC) initiatives can fail. To improve the chance of success a thorough consideration of the potential issues involved, such as seeking supply chain partners' support, ensuring access to information / data security and assessing whether a HLC model could bring improvements to a wide range of supply chain metrics rather than reductions in distribution costs only, needs to be understood before deciding to proceed with such an initiative. To support this, the paper aims to develop a supply chain-driven model for HLC.Design Methodology and Approach -A two-stage methodology is deployed. As part of Stage 1, a series of 20 semi-structured interviews with senior managers from retailers, retailers' suppliers and logistics service providers were undertaken. Subsequently, in Stage 2, a focus group with practitioners from retailers and logistics service providers was run to verify the findings gathered during Stage 1. Four elements of a new HLC project being considered are investigated by supply chain champions across the UK Fast Moving Costumer Goods industry, namely consideration factors, required synergies, enablers, and anticipated output metrics.Findings -When considering whether or not to embark on a HLC project, the supply chain requirements need to be taken into account and potential supply chain performance benefits projected. The paper identified several consideration factors; synergies and enablers that support the development of HLC projects are identified, such as legislation, trust among partners, common suppliers and delivery bases, capable 3PL and an effective commercial model, including a fair sharing of benefits.Research Limitations and Implications -The research provides new understanding in accounting for the needs of the supply chain when considering a HLC initiative involving leading players from the retail sector.Practical Implications -The importance of taking a supply chain approach when evaluating the feasibility of HLC is demonstrated. HLC arrangements among competing supply chains need to be designed and run by taking account of all supply chain partners, namely suppliers, 3PLs and customers (in this case, retailers).Originality and Value -The contribution is threefold: i) identification of outset consideration factors, ideal required synergies, actioning enablers and wider supply chain metrics of HLC; ii) development of a supply chain-driven model for HLC, which includes in the decision-making whether or not to adopt a horizontal logistics collaboration model, wide supply chain metrics such as stock levels of finished products and shelf availability, inventory, working and fixed capital, and product waste in addition to distribution costs; and, iii) the proposal of a new definition for HLC which challenges published definitions.

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Section: Inter-company Collaboration Within and Beyond The Supply Chainmentioning

confidence: 99%

“…Today, HLC is seen as an increasingly viable strategy for improving logistics performance and thus the performance of the associated supply chains that logistics serve (Hingley et al, 2015). HLC is one form of horizontal coordination in logistics.…”

Section: Introductionmentioning

confidence: 99%

Horizontal logistics collaboration for enhanced supply chain performance: an international retail perspective

Rodrigues

Harris

Mason

2015

Supply Chain Management: An International Journal

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“…This offers new opportunities for 4PLPs to benefit from better technological abilities for integration arise as IT advancements have been always identified to be an important driver in upcoming outsourcing developments [15,23] and an important success factor for 4PLPs [24]. Whereas the 4PL concept has been widely discussed in extant literature [7] and case studies from successful implementations are known (e.g., [8,15,[25][26][27][28][29][30][31][32][33][34][35][36]), information on future configurations of the 4PL concept are rarely available and mainly focus on potential drivers for future development. This situation thrives to identify services future 4PLPs will offer along with benefits for their clients.…”

Section: Introductionmentioning

confidence: 99%

Current Advancements of and Future Developments for Fourth Party Logistics in a Digital Future

et al. 2019

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This paper aims to analyze the potential future of the 4PL concept based on expert opinions withspecial regard to the influence of digitalization coming with a disruptive trans-formation of supply chains.Service arrangements, provider capabilities and benefits resulting from a 4PL partnership are compared incurrent and future configurations. The research follows an explorative mixed methods approach with semistructuredinterviews followed by an expert panel. This builds a basis for an online survey questionnaire toinquire on important future aspects for the 4PL concept by a sample of respondents from multinationalcompanies. Our results show a clear trend away from simply organizing transportation and logisticsactivities towards the provision of an IT platform as well as further value-added service activities such asplanning, analytics and monitoring. Along with this, IT capabilities appear to be an important differentiatorfor 4PL providers in the future. Moreover, relationships between 4PL providers and their clients becomecloser and more strategic, which leads to a customer valuing not only direct cost reductions but ratherimprovements resulting from optimized operations through superior analysis and planning functions.

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“…Channel power indicates the relative strength of the participants (including manufacturers and supermarkets) and their potential actions of both bargaining power and bargaining position (Draganska, Klapper, and Villas-Boas, 2010;Hingley, Lindgreen, and Grant, 2015).Both manufacturers and supermarkets have channel power. Manufacturers' power is provided through consumer demand for their products, thus forcing supermarkets to stock those brands.…”

Section: Introductionmentioning

confidence: 99%

A Model of Supermarket Pricing Behaviour

Henry¹,

Guthrie²

2015

AJBR

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This research aims to shed light on how prices in supermarkets for consumer items are set. It also explores the changing power relationship within the retail food distribution channels.For this qualitative study supermarket employees and manufacturer employees were interviewed about their perceptions of price setting. The research identified that for Key Value Items (KVI) a number of common characteristics in regards to costing and pricing policies applied to both suppliers and supermarkets. Both supermarket customers and supermarkets competitors also influence these items. While the qualitative method used in this project elicits rich commentary it does expose the project to biased data. The fact that it is country specific could be regarded as a limitation or a starting point for international comparisons.As a consequence of the research it was possible to develop an integrated model of supermarket pricing behaviour. The model follows two streams, one for standard products, and one for KVI, and how they are applied in practice. This model has application to multiproduct organisations where their offering is frequently purchased. The role of the supermarkets in the New Zealand distribution channel has come under scrutiny in recent years. Consumers are demanding knowledge of supermarket pricing practices and are voting with their feet if it is not provided. This paper lifts the lid on pricing behavior to some extent. The research is based on primary research and as such is original. It seeks to build on earlier commentaries on supermarket pricing behavior.

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Intermediaries in power-laden retail supply chains: An opportunity to improve buyer–supplier relationships and collaboration

Cited by 56 publications

References 56 publications

Horizontal logistics collaboration for enhanced supply chain performance: an international retail perspective

Horizontal logistics collaboration for enhanced supply chain performance: an international retail perspective

Current Advancements of and Future Developments for Fourth Party Logistics in a Digital Future

A Model of Supermarket Pricing Behaviour

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