Driving Forces of Supplier Integration - A Case Study from the Grocery Industry

Research output: Chapter in Book/Report/Conference proceedingPaper in conference proceeding

Abstract

The focal company in this study is establishing a partnership style of’ relationships with a few selected suppliers. The article focuses on the driving forces behind such an initiative. It attempts to answer the questions why this company is trying to develop a closer working relationship with one of the selected suppliers, the supplier of corrugated board. The purpose of the article is thus to analyse the driving forces behind the initiative. The article distinguishes between internal and external driving forces.
The method used has been a case study. The case company is a manufacturer in the grocery retailing industry, and the relation studied is between the manufacturer and the supplier of corrugated board.
The external driving forces influencing the manufacturer are mainly customers, competitors and external industry initiatives such as ECR (Efficient consumer Respon34. However, the selected supplier in our case cannot be considered strategic, according to our model of supplier selection. The company focused on in this study is trying to pursue a partnership like relationship with the supplier of corrugated board.
However, the results show that there is a time dimension in the selection of appropriate suppliers. According to the case, the long term supplies are secure since there is no problem of finding appropriate suppliers of corrugated board which can meet the required specifications.
Nevertheless, since the purchased content is relatively large with frequent deliveries the risk of missed supply and inefficiencies in this supply in the shorter term is rather big. Therefore, to ensure a safer supply at low cost it is necessary to develop a closer working relationship, that this rests on the foundation that it will be successful improving service requirements and reducing costs, due to the interchange ability of suppliers.

Details

Authors
  • Peder Bergström
Organisations
Research areas and keywords

Subject classification (UKÄ) – MANDATORY

  • Other Mechanical Engineering

Keywords

  • packaging logistics
Original languageEnglish
Title of host publication[Host publication title missing]
PublisherPackaging Logistics, Lund University
Number of pages19
Publication statusPublished - 1999
Publication categoryResearch
Peer-reviewedYes
Event11th Annual NOFOMA Conference, 1999 - Lund, Sweden
Duration: 1999 Jun 151999 Jun 16

Conference

Conference11th Annual NOFOMA Conference, 1999
CountrySweden
CityLund
Period1999/06/151999/06/16