scholarly journals The trade-off between chain performance and fragility considering coordination strategies of agri-food chains: a South African egg chain’s case study

Author(s):  
Letlama Setene ◽  
Daniel du P.S. Jordaan

The mainstream strategy in the coordination of agri-food chains has traditionally focused more on the enhancement of chain performance by adopting lean and highly integrated strategies. These strategies are premised on the principle that governance structures are the result of tactics that economize on transaction costs in exchanges in chains. Due to existing interdependencies between chain players such strategies expose these chains to detrimentally disruptive uncertainty. This paper adopted a heuristic stress-testing approach to measure the fragility of South African egg value chain and performed a comparative fragility analysis of two coordination approaches in the egg chain. Additionally, the analysis of results indicated that the egg chain strategy with high levels of interdependencies between its chain players as significantly fragile. Precisely, the difference between the chain strategies was associated with a variety of differences at the factor and chain player levels that led up to a higher overall chain fragility of the chain with higher levels of interdependency. Inevitably, the paper propositions that there is a trade-off between chain performance and fragility. The results of the study affirmed that there is a trade-off between chain performance and fragility which needs to be balanced.

2021 ◽  
Vol 2021 ◽  
pp. 1-9
Author(s):  
Xinman Zhu ◽  
Jie Dai ◽  
Haoran Wei ◽  
Debing Yang ◽  
Weilun Huang ◽  
...  

This paper integrates nominal group technique (NGT), analytical hierarchy process (AHP), and fuzzy technique for order preference by similarity to an ideal solution (TOPSIS) approach, and a case study has been used to demonstrate the fuzzy optimal selection model. From a literature review on the startup hub and the interviews conducted with officials and experts, the selection criteria are (1) convenience—promoted by the city’s entrepreneurial policies or its traffic infrastructure; (2) potentiality—promoted by a regional network or value chain of startups. Lastly, the best idle land resulted in this case study with equal decision-making power using the fuzzy method is Taipei Jianguo Brewery, and the difference of decision-making power might make the best idle land to be Wanbao Textile Factory.


2021 ◽  
Vol 5 ◽  
Author(s):  
Soledad Cuevas Garcia-Dorado ◽  
Kevin Queenan ◽  
Bhavani Shankar ◽  
Barbara Häsler ◽  
Tafadzwanashe Mabhaudhi ◽  
...  

Livestock value chains globally are increasingly dualistic, with integrated market-leaders co-existing with comparatively disadvantaged small producers who, nevertheless, support rural livelihoods and food access, and can also contribute to more resilient supply chains. The South African broiler value chain provides a highly illustrative case study. The purpose of this study is to identify potential leverage points for policy intervention to support small and emerging producers in the South African broiler value chain, and to discuss the strengths and limitations of system dynamics approaches to promote inclusive food value chains. This study develops a causal loop diagram (CLD) based on semi-structured stakeholder interviews and policy documents. The main challenges, key variables and causal relationships between them are systematically identified. Variables are coded, generalised and graphically represented, and entry points for intervention and their links to existing policies are mapped. The challenges faced by smallholders in the context of our study can be characterised, using a CLD, as a set of interlinked and reinforcing dynamics which perpetuate existing disadvantages and reinforce duality in the value chain. Key policy entry points have been identified that could be targeted by a coordinated policy package, including: Direct support for infrastructure investment and input access through grants, subsidies or other policies; credit and liquidity provision for day-to-day expenses; creation of aggregation mechanisms for both inputs and outputs; regulations or initiatives that directly target the relationship of farmers with the commercial segment to improve access to day-old-chicks and, finally, training in business and technical skills. Although most of these interventions have been addressed at some point, implementation has been fragmented, failing to fully consider their complementary nature, thus undermining effectiveness. Existing approaches to consensus building and stakeholder participation in system dynamics research can present challenges when it comes to engaging with complex policy processes and issues of conflict of interest that are relevant in the context of smallholder promotion and equitable food systems, but there are promising avenues for addressing. Despite some methodological challenges, we find that there is considerable scope for system dynamics approaches to inform policy for smallholder promotion, even in contexts characterised by complex policy processes.


2020 ◽  
Author(s):  
Alexandra Luca ◽  
Alina Iovan Dragomir

In the complicated economic context, will survive only companies who can obtain recognizable products, with higher quality and who are economically efficient by reducing losses of any kind. An example of good practices is represented by SC Fibalco SRL, a footwear company from Craiova, Romania, which emphasizes the development strategy of the Quality Management and the value chain analysis. Fibalco's success is explained by the fact that the value chain analysis is a component of the quality management and the responsibility is distributed pyramidally starting from each employee to the top management. One of the chains in Fibalco's value chain is Industrialization of the new product, which is an element of originality and makes the difference between the theoretical and the practical approaches from the perspective of launching a new product on the market. Due to the Industrialization of the new product chain, in order to make it efficiently reproducible, many risks of failure are eliminated from the design phase, especially those related to the technical execution of the product. The result is a "clean" footwear product with clear lines without unnecessary sophistication. This paper demonstrates that the implementation of quality management and a complex value chain adapted to the company needs leads to brand value and loyalty among consumers.


2016 ◽  
Vol Volume 112 (Number 3/4) ◽  
Author(s):  
Douglas J. Crookes ◽  

Abstract South African rhinoceros (e.g. Diceros bicornis) and abalone (Haliotis midae) have in common that they both are harvested under open-access conditions, are high-value commodities and are traded illegally. The difference is that a legal market for abalone already exists. An open-access deterrence model was developed for South African abalone, using Table Mountain National Park as a case study. It was found that illegal poaching spiked following the closure of the recreational fishery. The resource custodian’s objective is to maximise returns from confiscations. This study showed that a legal trade results in a ‘trading on extinction’ resource trap, with a race for profits, an increase in the probability of detection after a poaching event and the depletion of populations. In contrast with HS Gordon’s seminal article (J Polit Econ 1954;62:124–142), profit maximisation does not automatically improve the sustainability of the resource. Under certain conditions (e.g. a legal trade with costly enforcement), profit maximisation may actually deplete abalone populations. The article also has implications for rhino populations, as a legal trade is currently proposed.


2021 ◽  
Vol 117 (7/8) ◽  
Author(s):  
Takunda Y. Chitaka

The increasing global concern surrounding plastic marine pollution has placed a spotlight on the key items identified as major contributors. The subsequent public outcry has forced key value-chain actors – such as brand owners, retailers and restaurateurs – to be seen to be responding to the issue. However, are their responses motivated by a true desire for environmentalism or are actors engaging in greenwashing? In this case study on plastic straws, the brand owners and retailers interviewed are driven by a desire to meet consumer expectations. This desire has led to the substitution of plastic straws with glass, paper and polylactide alternatives. However, the broader environmental implications of the alternatives are rarely considered. This single-minded focus on marine pollution has the potential to result in inadvertent greenwashing as alternative products may result in more harm in other environmental compartments.


2021 ◽  
pp. 143-164
Author(s):  
Stefano Ponte

This chapter highlights how sustainability and green capital accumulation go hand in hand, operating on the back of a structural logic that allows the extraction of value from producers as they attempt to improve their environmental performance. The case study of the wine industry in South Africa is, at a superficial level, a success story of economic and environmental upgrading and of improved international competitiveness. However, the growing concentration of the wine industry globally has come together with increased bargaining power by retailers and international merchants, which is leading to a cascade of squeezed margins upstream all the way to grape and wine suppliers. This chapter shows that: (1) sustainability is used opportunistically by global ‘lead firms’ for marketing, reputational enhancement, and risk management purposes; (2) South African value chain actors and institutions have invested heavily in portraying the industry and individual companies as caring for the environment; and (3) major economic and environmental upgrading processes in the South African wine value chain have taken place, but have not led to positive economic outcomes for most domestic players. Collectively, these lessons suggest a combined process of capital accumulation by lead firms, coupled with a process of supplier squeeze.


2019 ◽  
Vol 22 (1) ◽  
pp. 137-154
Author(s):  
Daniel du P.S. Jordaan ◽  
Johann F. Kirsten

The ability to determine the fragility of agribusiness value chains is valuable to agribusines management practitioners and scholars in a context where risk and uncertainty are increasingly pervasive, consequential and unpredictable. The paper argues for determining the fragility of a chain to adverse events rather than trying to predict the probability and impact of such events. The paper specifically proposes a framework to detect and quantify non-linear consequences in response to progressively deteriorating chain fragility factors. The paper’s approach is a novel alternative to the traditional value chain ‘risk assessment’. Application of the framework to the South African lamb chain reveals that a number of specific factors, like quality and safety performance and cash flow position, have consistently high fragility scores throughout the chain while some factors are uniquely localized to a specific role-player or activity, which highlights the techno-economic uniqueness of individual activities in a chain.


Author(s):  
Naomi HERTZ

Intensive manual labor enterprises in the developed world face challenges competing with products imported from countries where manufacturing costs are low. This reduces the volume of domestic production and leads to rapid loss of knowledge and experience in production processes. This study focuses on the Israeli footwear industry as a case study. Qualitative methodologies were applied, including in-depth interviews and field observations. A literature review on previous research, and contemporary trends was conducted. The field research examines challenges along the value chain in small factories. It finds that mass production paradigms impose a decentralized process between designers and manufacturers and therefore do not leverage local potential into a sustainable competitive advantage for small factories. The proposed solution is a digital and technological platform for small manufacturing plants. The platform mediates and designs the connections between production, technology, and design and enables the creation of a joint R&D system.


2020 ◽  
Vol 4 (02) ◽  
pp. 34-45
Author(s):  
Naufal Dzikri Afifi ◽  
Ika Arum Puspita ◽  
Mohammad Deni Akbar

Shift to The Front II Komplek Sukamukti Banjaran Project is one of the projects implemented by one of the companies engaged in telecommunications. In its implementation, each project including Shift to The Front II Komplek Sukamukti Banjaran has a time limit specified in the contract. Project scheduling is an important role in predicting both the cost and time in a project. Every project should be able to complete the project before or just in the time specified in the contract. Delay in a project can be anticipated by accelerating the duration of completion by using the crashing method with the application of linear programming. Linear programming will help iteration in the calculation of crashing because if linear programming not used, iteration will be repeated. The objective function in this scheduling is to minimize the cost. This study aims to find a trade-off between the costs and the minimum time expected to complete this project. The acceleration of the duration of this study was carried out using the addition of 4 hours of overtime work, 3 hours of overtime work, 2 hours of overtime work, and 1 hour of overtime work. The normal time for this project is 35 days with a service fee of Rp. 52,335,690. From the results of the crashing analysis, the alternative chosen is to add 1 hour of overtime to 34 days with a total service cost of Rp. 52,375,492. This acceleration will affect the entire project because there are 33 different locations worked on Shift to The Front II and if all these locations can be accelerated then the duration of completion of the entire project will be effective


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