“Partnership in produce”: the J Sainsbury approach to managing the fresh produce supply chain

Abstract

Points out that consumers are turning increasingly away from specialist retailers towards supermarkets for their fresh produce requirements, and looks at how supermarket chains are responding. Notes that major retailers are starting to focus on building longer‐term relationships with key suppliers. Discusses J Sainsbury’s “Partnership in produce” agreement with ENFRU, one of the UK’s principal fruit suppliers, examining the marketing strategy behind it, the key points incorporated into the scheme and the benefits for the consumer, retailer and supplier.

Consumer‐driven innovation networks and e‐business management systems

“…Grocery retailers, constrained by the perishable nature of certain products, were at the forefront of the move from inventory-based systems to customer-driven systems (Macdonald, 1994). The ability to use EDl between organisations in real time is a key feature of being able to manage inter-firm systems of co-ordination (Hughes and Merton, 1996;Mason-Jones and Towill, 1998). This ability to manage the supply-chain allowed retailers to switch to customer demanddriven systems of replenishment (Smart, 1995;Winters, 1996;Fernie and Pierrel, 1996;Ody and Newman, 1991 (Figure 1).…”

“…Retailers can also exploit this control by identifying new market niches, and fill them with new differentiated products as quickly as possible, and respond effectively to new eating trends. Retailers in the UK are able to coordinate the development of new products through internal hygiene and product development departments (Fernie, 1997;Hughes and Merton, 1996;Senker, 1986Senker, , 1988. From control of the information systems retailers are able to co-ordinate the innovation process.…”

New perspectives on the supply chain and consumer-driven innovation

“…SCM, as well as strategy approaches in general as outlined in 1.1, have focussed on the benefits of and the process of coordination (Hughes and Merton, 1996;Ross, 1997); the logistics field have examined operational issues and optimal patterns of internalisation and externalisation within the supply-chain (Buck, 1990;Ross, 1997;Bourlakis, 1998), and the optimisation of integrated distribution systems (Van der Vorst et al, 1998;Van der Vorst and Beulens, 1999). These approaches usually assume that efficiency throughout the system benefits all the actors involved (although in relation to outsourcing there has been some acknowledgement that partners may not be equal).…”

“…Food is perishable, and so is the information contained in consumer magazines, and both of these industries provide interesting examples of development of ECR strategies and the evolution of Control Networks. Distribution channels in the food supply-chain have always been constrained by the perishability, spurring food suppliers and retailers to forge close relationships with partners or to integrate to ensure tight coordination (Cox, Mowatt and Prevezer, 2002;Hughes and Merton, 1996).…”

How do consumers differentiate between fresh food stores

“…Improved quality, a more consistent and reliable supply, a guaranteed price and lower cost are the main reasons believed to explain the shift towards more direct sales (Hughes and Merton 1996). However, as food integrity issues become more important, the ability to trace product back to source has become a critical determinant in the retailers' choice of preferred suppliers (Wilson 1996;Fearne and Hughes 1999).…”