Supply chain contracting with product substitution and partial vertical integration

Purpose The purpose of this study is to analyze the post-harvest supply chain enablers (PHSCEs) for vertical integration to enhance rural employability, farmer profitability and rural produce marketability (i.e. market prospects) in the post-harvest supply chain (PHSC). The impact of vertical integration is also explored for various commercial produces. Design/methodology/approach A structural equation modeling (SEM) of PHSCEs for vertical integration was developed to enhance market prospects, rural employability and farmer profitability. The impact of business-to-business (B2B) and business-to-customer market prospects are explored in various dimensions for stakeholders such as farmers, manufacturers (processors), distributors and retailers. The fuzzy technique for order of preference by similarity to ideal solution (F-TOPSIS) was used to prioritize these PHSCEs to improve market prospects and rural employability. Findings The PHSCEs are clustered into three groups, namely, initiatives at the strategic frontier, initiatives at the tactical frontier and concerns for rural employability via vertical integration using exploratory factor analysis, confirmatory factor analysis and SEM to prove the null hypothesis. With F-TOPSIS results, the availability of warehousing was found to be the most crucial enabler when observing the PHSCEs from the initiatives’ perspective. The technology adaptability and availability, institute for training and research and information infrastructure and information visibility were found to be the key PHSCEs when observed from PHSC stakeholders’ perspectives. Research limitations/implications The implementation of this study will improve the rural produce marketability, rural employability, B2B marketing (i.e. effective distribution) and subsequent value chains with the practice of vertical integration for fresh produce at the rural level. Practical implications The outcomes of this study have a key role in developing the rural regions and improving rural livelihoods via value addition. The awareness of commercial cultivation and value addition in rural areas needs to be improved. This will help farmers to earn better revenues with improved market prospects in comparison to the revenues obtained from the cultivation of staple/conventional crops. Originality/value In an era of cold chains and food processing, this study aims to disseminate awareness about value addition for commercial and fresh produces at the rural level. The implication of this study will improve rural produce marketability, rural employability and farmer profitability at the rural level with the level of vertical integration.

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A Generic Framework for Internet-Based Supply-Chain Interaction

Volume 5: 17th Computers in Engineering Conference ◽

10.1115/detc97/cie-4300 ◽

1997 ◽

Author(s):

D. Veeramani ◽

S. M. Joshi

Keyword(s):

Supply Chain ◽

Vertical Integration ◽

Core Competencies ◽

Integrated System ◽

The Internet ◽

Manufacturing Companies ◽

Global Marketplace ◽

Research Challenges ◽

Generic Framework ◽

Chain Interaction

Abstract To remain competitive in the global marketplace, manufacturing companies are transforming their organizational structure and operational philosophy from one based on vertical-integration to one based on core competencies. This trend has resulted in an economy wherein practically every manufacturing company has become dependent on a supply-chain of vendors in order to serve its customers. In the context of this distributed manufacturing environment, the Internet and related technologies such as Java, VRML and intelligent WWW agents are creating fundamentally new approaches to supply-chain interactions that offer greater flexibility in identifying suppliers and the ability to dramatically reduce the response time within a supply-chain for processing requests-for-quotation (RFQs) and orders from customers. In this paper, we describe a generic framework for Internet-based customer-vendor interactions, and present a computer-integrated system for rapid and effective processing of RFQs in such an Internet-based supply-chain. We also identify some key research challenges within this framework that need to be overcome for Internet-based supply-chain interaction to be successful.

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Behavioral Supply Chain Contracting

10.1007/978-3-658-23885-8 ◽

2012 ◽

Cited By ~ 1

Author(s):

Michael Becker-Peth

Keyword(s):

Supply Chain ◽

Supply Chain Contracting

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Supply Chain Contracting with Linear Utility Function

International Journal of Information Systems and Supply Chain Management ◽

10.4018/ijisscm.2017040101 ◽

2017 ◽

Vol 10 (2) ◽

pp. 1-20 ◽

Cited By ~ 2

Author(s):

Ningning Wang ◽

Jibao Gu ◽

Qinglong Gou ◽

Jinfeng Yue

Keyword(s):

Decision Making ◽

Supply Chain ◽

Utility Function ◽

Wholesale Price ◽

Profit Maximization ◽

Newsvendor Model ◽

Supply Chain Contracting ◽

Linear Utility ◽

Linear Utility Function ◽

Linear Setting

The supply chain contracting has traditionally been based on the profit maximization assumption. Recent research has shown that some behavior factors may influence the decision making of supply chain members. The authors utilize a linear utility function to depict such behavior factors and incorporate these into the newsvendor model. The linear utility function provides sufficient flexibility to better capture people's various behavior factors. By supposing the agents are concerned with behavior factors, the authors first investigate how the factors affect the supply chain under wholesale price contract, and find that they do not influence coordination condition, but can adjust the distribution of profits. Then they extend their study to other four common contracts with a similar method and systematically demonstrate that the behavior of agents in such a linear setting has no effect on the conditions of coordinating supply chain.

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