Contract coordination of new fresh produce three-layer supply chain

2019 ◽  
Vol 119 (1) ◽  
pp. 148-169 ◽  
Author(s):  
Zilong Song ◽  
Shiwei He
Keyword(s):  
Supply Chain ◽  
Cost Sharing ◽  
Fresh Produce ◽  
Third Party ◽  
Coordination Mechanisms ◽  
Agricultural Product ◽  
Target Market ◽  
Selling Price ◽  
Market Demand ◽  
Content Type

PurposeThere are particularly high fresh agricultural product (FAP) loss rates in actual supply chain operation and the development of FAPs e-commerce is hindered to some extent. The purpose of this paper is to achieve the coordination of three-layer FAP supply chain and maximize profit through the contracts among the supply chain members.Design/methodology/approachA three-layer FAP supply chain that consists of a fresh produce e-commerce enterprise, third-party logistics service provider (TPLSP) and community convenience store under e-commerce environment is considered. New game models are developed and optimal decisions in centralized and decentralized channel are characterized. Different contract coordination mechanisms are designed to improve the supply chain performance. Finally, computational studies are conducted.FindingsThe decentralized supply chain cannot be coordinated by a freshness-keeping cost-sharing contract, and it can be coordinated by a freshness-keeping cost-sharing and revenue-sharing contract. The optimal unit online selling price, unit logistics distribution price, fresh-keeping effort and unit self-collection service price can all be achieved.Practical implicationsThe paper provides a practical guideline to managers in fresh produce industry in terms of how to cooperate with other supply chain members so as to maximize total profit and achieve Pareto improvement while also supply the freshest and safest produce to the target market under e-commerce environment.Originality/valueFew studies have explored the coordination of three-layer FAP supply chain under e-commerce environment with TPLSP and community convenience store’s participation in decisions, especially considering that the market demand for FAPs is affected by freshness and unit online selling price. In this paper, all these scenarios are taken into account and corresponding mathematical models are developed. In particular, different contract coordination mechanisms are designed and examined simultaneously.

scholarly journals Three-level supply chain coordination of fresh agricultural products in the Internet of Things

2017 ◽  
Vol 117 (9) ◽  
pp. 1842-1865 ◽  
Author(s):  
Bo Yan ◽  
Xiao-hua Wu ◽  
Bing Ye ◽  
Yong-wang Zhang
Keyword(s):  
Supply Chain ◽  
Internet Of Things ◽  
Supply Chain Coordination ◽  
Revenue Sharing ◽  
Agricultural Product ◽  
The Internet ◽  
Market Demand ◽  
Content Type ◽  
Revenue Sharing Contract ◽  
The Internet Of Things

Purpose The Internet of Things (IoT) is used in the fresh agricultural product (FAP) supply chain, which can be coordinated through a revenue-sharing contract. The purpose of this paper is to make the three-level supply chain coordinate in IoT by considering the influence of FAP on market demand and costs of controlling freshness on the road. Design/methodology/approach A three-level FAP supply chain that comprises a manufacturer, distributor, and retailer in IoT is regarded as the research object. This study improves the revenue-sharing contract, determines the optimal solution when the supply chain achieves maximum profit in three types of decision-making situations, and develops the profit distribution model based on the improved revenue-sharing contract to coordinate the supply chain. Findings The improved revenue-sharing contract can coordinate the FAP supply chain that comprises a manufacturer, distributor, and retailer in IoT, as well as benefit all enterprises in the supply chain. Practical implications Resource utilization rate can be improved after coordinating the entire supply chain. Moreover, loss in the circulation process is reduced, and the circulation efficiency of FAPs is improved because of the application of IoT. The validity of the model is verified through a case analysis. Originality/value This study is different from other research in terms of the combination of supply chain coordination, FAPs, and radio frequency identification application in IoT.

Outlook on organized retailing of perishable produce in India: cross-city comparison

2019 ◽  
Vol 9 (4) ◽  
pp. 352-368 ◽  
Author(s):  
Aravazhi Selvaraj ◽  
S. Nedumaran ◽  
Disha Bose ◽  
Jyosthnaa Padmanabhan ◽  
Yesudas Pangiraj ◽  
...  
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Management Practices ◽  
Fresh Produce ◽  
Market Potential ◽  
Market Demand ◽  
Buying Behavior ◽  
Chain Management ◽  
Content Type ◽  
Retail Formats

Purpose The purpose of this paper is to estimate the market demand and compare the average market margins for six broad categories of fresh produce in different retail formats across five select cities of the country. It also tries to qualitatively understand the supply chain management practices of these retailers across cities. Design/methodology/approach Registered retail outlets were selected randomly from online sources. Market potential was estimated as the average sales of each category of fresh produce. Personal interviews were conducted with the market players in order to collect qualitative data about their supply chain management practices. Findings Potatoes, onions and tomatoes are the largest consumed category of fresh produce across cities. Consumers in Tier 1 and Tier 2 cities exhibit different buying behavior and preferences. Large retailers and small retailers coexist in the cities. Marketing margins of retail formats are not uniform across cities. Research limitations/implications The study did not capture the reasons for the differences observed in consumer preferences and buying behavior across cities. The study has taken into consideration only registered neighborhood stores in the study locations. Originality/value To the best of the authors’ knowledge, the paper is first of its kind which has attempted to estimate the categorywise market potential of fresh produce across study cities.

Cost-sharing models for green product production and marketing in a food supply chain

2018 ◽  
Vol 118 (4) ◽  
pp. 654-682 ◽  
Author(s):  
Qinghua Zhu ◽  
Xiaoying Li ◽  
Senlin Zhao
Keyword(s):  
Supply Chain ◽  
Food Supply ◽  
Cost Sharing ◽  
Food Production ◽  
Real Case ◽  
Market Demand ◽  
Food Supply Chain ◽  
Content Type ◽  
Green Food ◽  
Green Performance

Purpose The purpose of this paper is to explore the coordination mechanism of cost sharing for green food production and marketing between a food producer and a supplier who both contribute to the sales of green food. Design/methodology/approach This paper first develops demand functions for both a food supplier and a producer, considering their influence on green degree of food and associated consumers’ acceptances. Then, cost-sharing contracts-based game models are proposed. At last, regarding to optimal supply chain profits and green performance, the proposed contracts and the non-coordination situation are compared and tested by a real case. Findings When green cost is only shared by one side, the cost-sharing contracts cannot optimally coordinate the food supply chain, but it can improve profits for both the supplier and producer. When consumers’ sensitivity to the green degree of food increases, a mutual cost-sharing contract will bring more profits for both the supplier and producer than those under the non-coordination mode in a decentralized supply chain situation. A real case verifies the conclusions. Research limitations/implications The models are in complete information, and the market demand is assumed to be linear to sales price. Mutual cost sharing is only for material processing and food production, which can be extended to include sharing for sales cost. Coordination ideas on the proposed contracts development and solutions for optimal decisions can be applied in the other industries. Practical implications The study shows that coordination between a supplier and a producer is needed to improve the food supply chain’s green performance. Originality/value This paper first extends the existing profit functions by considering the green efforts of both a supplier and a producer as well as their effects on green degree of products and consumers’ acceptances to the green degree.

scholarly journals Decision and Coordination in a Dual-Channel Three-Layered Green Supply Chain

Symmetry ◽  
2018 ◽  
Vol 10 (11) ◽  
pp. 549 ◽  
Author(s):  
Zilong Song ◽  
Shiwei He ◽  
Baifeng An
Keyword(s):  
Sustainable Development ◽  
Supply Chain ◽  
Environmental Performance ◽  
Fresh Produce ◽  
Green Supply Chain ◽  
Market Demand ◽  
Equilibrium Solutions ◽  
Sustainable Performance ◽  
Dual Channel ◽  
Social And Environmental Performance

This paper investigated, for the first time, the game and coordination of a dual-channel, three-layered, green fresh produce supply chain, with regard to its economic, social, and environmental performance. Considering that the market demand is dual-channel priced and sensitive to the degree of greenness and the freshness-level, four game models, under different scenarios have been established. These included a centralized scenario, a decentralized scenario, and two contractual scenarios. The equilibrium solutions under the four scenarios were characterized. From the perspective of a sustainable development, the economic, social, and environmental performance of the supply chain was analyzed. To enhance the supply chain performance, two contract mechanisms were designed and the conditions for a multi-win outcome were obtained. Accordingly, many propositions and management implications were provided. The results showed that, (1) compared to the centralized supply chain case, the performance of the decentralized supply chain case is inferior; (2) in addition to increasing the concentration of the supply chain decisions, the two contracts proposed can effectively coordinate the green supply chain and improve its sustainable performance; and (3) the performance of the supply chain is positively driven by the consumers’ sensitivity to greenness degree and the freshness level of fresh produce. This paper fills a research gap and helps the participants of the channel recognize the operational decision principle of a complex green supply chain, in order to achieve a higher and a long-term sustainable-development performance.

Comparison analysis on the bilateral efforts of farmers and the third-party organization under multiple contract modes

Kybernetes ◽  
2019 ◽  
Vol 48 (5) ◽  
pp. 818-834 ◽  
Author(s):  
Lanying Sun ◽  
Xiaoyan Li
Keyword(s):  
System Theory ◽  
Supply Chain ◽  
Supply System ◽  
Third Party ◽  
Purchase Price ◽  
Party Organization ◽  
Content Type ◽  
The Third ◽  
The Stability ◽  
Agricultural Supply

Purpose The purpose of this paper is under the analysis framework of the system theory, analyzing the optimal contract mode of agricultural supply chain to guarantee the stability of agricultural supply chain and the equilibrium of agricultural product market, to analyze the effect of farmers’ risk attitude on the selection of contract modes and to find the way to encourage farmers’ productive effort and to avoid farmers’ hitchhiking behavior, to guarantee the stability of agricultural supply chain. Design/methodology/approach Under the guidance of the system theory, using the Stackelberg model and the nonlinear programming theory, this paper comparatively analyzes farmers’ effort (productive effort and sales effort), farmers’ income and the stability of agricultural supply system of four types of contract modes between farmers, third-party organizations and market. Findings First, in the agricultural market, market-type contract cannot maximize farmers’ income. The main reason is that farmers do not have enough ability to avoid market risk and to bargain. Second, for farmers of risk seeking, choosing a market-type contract and secondary-income contract can increase their income. Third, under the fixed-purchase price contract, the hitchhiking behavior would happen. Fourth, when farmers’ productive efforts are the same, farmers’ income under the secondary-income contract is higher than under the fixed-purchase price contract. Because under the secondary-income contract, farmers have the opportunity to obtain the secondary distribution of benefits, farmers’ hitchhiking behavior could be avoided. Originality/value Analyzing the contract modes between farmers and the third-party organization in the agricultural market could reduce the influence of price fluctuation, avoid the uncertainty of the relationship between the supply and demand, stimulate the productive effort of farmers and provide theoretical guidance for establishing efficient and stable agricultural supply system.

Sustainable logistics barriers of fruits and vegetables

2018 ◽  
Vol 25 (8) ◽  
pp. 2589-2610 ◽  
Author(s):  
Rakesh Raut ◽  
Bhaskar B. Gardas
Keyword(s):  
Supply Chain ◽  
Value Chain ◽  
Fruits And Vegetables ◽  
Structural Model ◽  
Fresh Produce ◽  
Sustainable Transportation ◽  
Three Dimensions ◽  
Interpretive Structural Modeling ◽  
Content Type ◽  
Sustainable Logistics

PurposeThe reduction of food wastage at every stage of a fresh produce supply chain helps in achieving balance among all three dimensions (social, ecological and economic) of the sustainability and helps in stimulating the growth and development in the agricultural domain. The purpose of this paper is to address the causal factors of post-harvesting losses (PHLs) occurring in the transportation phase.Design/methodology/approachThrough exhaustive literature survey and expert opinions, 12 crucial barriers to sustainable transportation of fruits and vegetables (F&V) are identified. The interpretive structural modeling (ISM) methodology, a multi-criteria decision-making (MCDM) approach, is employed for developing a structural model of the identified barriers.FindingsThe results of the analysis highlighted that two factors, namely, the non-availability of refrigerated vehicles, and excessive loading on the vehicles, are the most significant barriers to sustainable transportation which are found to have the highest driving power.Research limitations/implicationsThe results of the present research are applicable to the F&V supply chains only. The established interrelation among the identified factors depends on the judgments given by the experts which could be biased. The developed ISM model is intended to guide the policy and decision makers for formulating the policies for the performance improvement of the fresh produce value chain.Originality/valueIt is the first research of its kind focusing on the model development of critical factors causing PHLs in the transportation phase of the agricultural fresh produce supply chain using MCDM process.

Factors affecting the diffusion of traceability practices in an imported fresh produce supply chain in China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ying Yi ◽  
Phil Bremer ◽  
Damien Mather ◽  
Miranda Mirosa
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Diffusion Of Innovation ◽  
Food Supply ◽  
Fresh Produce ◽  
Content Type ◽  
Factors Affecting ◽  
Integrated Framework ◽  
Food Supply Chains ◽  
Food Recalls

PurposeThe purpose of this paper is to facilitate the successful adoption of traceability technologies, such as blockchain, into food supply chains and facilitate the understanding of the barriers and enablers to their uptake by channel members' needs so that appropriate enabling strategy can be put in place.Design/methodology/approachIn this paper, an integrated framework involving five components was used as the methodology: (1) diffusion of innovation theory, (2) the innovation concept, (3) the business structure-conduct-performance paradigm, (4) legitimacy and (5) trust was developed and assessed for validity through interviewing 21 channel members, including distributors, wholesalers, Internet retailers and traditional retailers associated with a global fresh produce company's supply chain in China.FindingsBarriers negatively framing channel members' attitudes and decisions included a perceived lack of need owing to fresh produce having a short shelf life and being of low value and risk. However, the importance of traceability and the need for effective food recalls were not always understood among channel members, and distributed trust innovations were also suppressed by their lack of compatibility with the Chinese hierarchical culture.Originality/valueTo date, channel members' perception of innovations in food supply chains has not been considered in light of the components proposed in the integrated framework. The adapted framework used in this study ensured a comprehensive assessment of channel members' attitude and motivations toward traceability practices.

Operational decisions and game analysis in the agricultural supply chain: invest or not?

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Qinyi Zhang ◽  
Wen Cao ◽  
Zhichao Zhang
Keyword(s):  
Supply Chain ◽  
Agricultural Products ◽  
Price Sensitivity ◽  
Agricultural Product ◽  
Sales Volume ◽  
Product Price ◽  
Content Type ◽  
Game Analysis ◽  
Preservation Technology ◽  
Agricultural Supply

PurposeWith the rapid growth of the economy, people have increasingly higher living standards, and although people simply pursued material wealth in the past, they now pay more attention to material quality and safety and environmental protection. This paper discusses the lack of motivation for investing in fresh-keeping technology for agricultural products by individual members of an agricultural supply chain composed of a supplier and a retailer by means of mathematical models and data simulations and discuss the optimal price-invest strategies under different sales models.Design/methodology/approachFirst, based on the model of no investment by both sides (NN), this paper considers three models: supplier only (MN), retailer only (NR) and cooperative investment (MR). Then, the authors analyze the influence of consumer price sensitivity and freshness sensitivity on the investment motivation of agricultural products under four models. Subsequently, the paper makes a sensitivity analysis of the optimal strategies under several models, and makes a game analysis of the suppliers and retailers of agricultural products. Finally, we conduct an empirical analysis through specific values.FindingsThe results show that (a) when the two sides cooperate, the amount of investment is largest, the freshness of the agricultural products is highest, and the sales volume is greatest; however, when both sides do not invest, the freshness of agricultural products and sales volume are lowest. (b) The price and freshness sensitivity of the consumer have an impact on investment decisions. Greater freshness sensitivity corresponds to a higher investment, higher agricultural product price, greater sales volume, and greater supply chain member income and overall income; however, greater price sensitivity corresponds to a lower investment, lower agricultural product price, lower sales volume, fewer supply chain members and lower overall income. (c) The investment game between the supplier and retailer is not only related to the sensitivity to price and freshness but also to the coordination coefficients of interest. At the same time, the market position of agricultural products should be considered when making decisions. The market share of agricultural products will affect the final game equilibrium and then affect the final benefit of the supply chain and individual members.Practical implicationsThese results provide managerial insights for enterprises preparing to invest in agricultural products preservation technology.Originality/valueAt present, the main problem is that member enterprises of agricultural supply chains operate based on their own benefits and are resistant to investing alone to improve the freshness of agricultural products. Instead, they would prefer that other members invest so that they may reap the benefits at no cost. Therefore, the enterprises in each node of the agricultural product supply chain are not motivated enough to invest, and competition and game states are observed among them, and such behavior is definitely not conducive to improving the freshness of agricultural products. However, the current research on agricultural products is more about price, quality and greenness, etc., and there are few studies on agricultural investment. Through the establishment of the model, this paper is expected to provide theoretical suggestions for the supply chain enterprises that plan to invest in agricultural products preservation technology.

Building resilience in retail supply chains: Lessons learned from COVID-19 and future pathways

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Atif Saleem Butt
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
United Arab Emirates ◽  
Cash Flows ◽  
Lessons Learned ◽  
Third Party ◽  
Structured Interviews ◽  
Cross Sectional ◽  
Content Type ◽  
The Impact

PurposeThis study explores the countermeasures taken by retailers to mitigate the effects of COVID-19 on supply chain disruptions.Design/methodology/approachThis research uses a multiple case study approach and undertakes 36 semi-structured interviews with senior management of the four largest retailers of the United Arab Emirates. The respondents were designated at different positions such as Vice President, Director and Project Manager.FindingsResults reveal that retailers are employing six countermeasures to mitigate the effects of COVID-19 on supply chains. Particularly, retailers are securing required demand, preserving cash flows, redirecting inventory, adding capacity to their distribution centres, becoming more flexible with their direct or third-party logistics provider and finally widening delivery options for their suppliers to mitigate the impact of COVID-19.Research limitations/implicationsThis study has some limitations. First, the results of this study cannot be generalized to a broader population as it attempts to build an initial theory. Second, this study uses a cross-sectional approach to explore the countermeasures employed by retailing firms to mitigate the effects of COVID-19.Originality/valueA notable weakness in a supply chain disruption literature is an unfulfilled need for research examining the strategies employed by retailers to respond to/address the challenges posed by COVID-19. Our study fills this gap.

Understanding the role of big data analytics for coordination of electronic retail service supply chain

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fatao Wang ◽  
Di Wu ◽  
Hongxin Yu ◽  
Huaxia Shen ◽  
Yuanjun Zhao
Keyword(s):  
Big Data ◽  
Supply Chain ◽  
Data Analysis ◽  
Big Data Analytics ◽  
Big Data Analysis ◽  
Coordination Mechanism ◽  
Market Demand ◽  
Content Type ◽  
Service Supply Chain ◽  
Retail Service

PurposeBased on the typical service supply chain (SSC) structure, the authors construct the model of e-tailing SSC to explore the coordination relationship in the supply chain, and big data analysis provides realistic possibilities for the creation of coordination mechanisms.Design/methodology/approachAt the present stage, the e-commerce companies have not yet established a mature SSC system and have not achieved good synergy with other members of the supply chain, the shortage of goods and the greater pressure of express logistics companies coexist. In the case of uncertain online shopping market demand, the authors employ newsboy model, applied in the operations research, to analyze the synergistic mechanism of SSC model.FindingsBy analyzing the e-tailing SSC coordination mechanism and adjusting relevant parameters, the authors find that the synergy mechanism can be implemented and optimized. Through numerical example analysis, the authors confirmed the feasibility of the above analysis.Originality/valueBig data analysis provides a kind of reality for the establishment of online SSC coordination mechanism. The establishment of an online supply chain coordination mechanism can effectively promote the efficient allocation of supplies and better meet consumers' needs.

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