scholarly journals Exploring supply chain business bullying of small and medium-sized business suppliers by dominant buyers in the apparel retail sector in Gauteng

Author(s):  
Sumayah Goolam Nabee ◽  
Elana Swanepoel

Background: Issues relating to dominant behaviour and bullying practices in supply chains are mostly not reported. Some evidence exists of unfair business practices in the apparel retail sector, but the extent and nature of such practices in South Africa, as well as the business implications for small and medium-sized enterprises (SMEs), have not been researched. The reason could be the sensitive nature of these issues and possible adverse implications for the SMEs supplying apparel to the retailers in Gauteng.Aim: The primary research objective is to determine the incidence and type of supply chain dominance experienced by SMEs in the retail apparel sector in Gauteng, as well as the business implications of such dominant behaviour and how SMEs cope with it.Setting: The setting for this study was the business premises of SME apparel suppliers in Gauteng.Methods: Qualitative semi-structured in-depth interviews were conducted with seven SMEs that were apparel suppliers to the large retailers in Gauteng, to obtain the supplier perspective.Results: Six of the seven SMEs had experienced some form of bullying behaviour by large retailers in the apparel sector, such as late payments and long payment terms. For some of these SMEs, it had serious financial implications. Meaningful insight is provided into this supplier–buyer relationship between SMEs and large retailers in the apparel sector in Gauteng.Conclusion: This is the first study in South Africa investigating supply chain dominance, in particular supply chain bullying of SME suppliers through unfair business practices by dominant buyers in the apparel sector.

2012 ◽  
Vol 6 (1-2) ◽  
pp. 27-33 ◽  
Author(s):  
Harry Bremmers ◽  
Bernd Van der Meulen ◽  
Zorica Sredojevi ◽  
Jo Wijnands

Recent price movements have put food supply chains under pressure. On the one side, upward price tendencies on commodity markets result in higher costs to processing firms. On the other side, these firms are confronted with a strong retail sector that is able to prevent compensation to protect consumers’ and own economic interests. Regulatory impediments of European law, especially with respect to foodstuffs, can adversely be utilized as barriers to protect the interest downstream the supply chain. The problem is that legal-economic instruments which can serve to smooth price volatility in supply markets can also opportunistically be used at the expense of the middlesection in food supply chains (i.e., mainly small and medium sized producers). The aim of this article is to identify the legal-economic mechanisms that effect price transfers in food supply chains in the European Union and define policy adjustments to improve pricing mechanisms, while safeguarding the interests of the processing industry. Policy alternatives to improve the smooth functioning of notably intermediate markets in food supply chains are the restructuring of competition law, improved processor information management and creating transparency of value added in the supply chain by means of labelling devices.


2014 ◽  
Vol 5 (4) ◽  
pp. 36-45 ◽  
Author(s):  
Hassan Nikookar ◽  
Josu Takala ◽  
Daniel Sahebi ◽  
Jussi Kantola

Abstract The ultimate goal of this study is to develop a comprehensive and competitive management system to enhance resilience capability of supply chains. In addition, the study aims to identify and eliminate barriers affecting resilience by identifying the factors may cause trouble in the near future. The theoretical framework was established to summarize the significant finding in the area of resilient supply chain and as a guideline for the empirical part. A qualitative approach based on multi criteria decision making process has been adopted in order to gather data through in-depth interviews. The developed method to evaluate resilience capability through supply chains piloted in a sample of five companies involved in an automotive supply chain.


Author(s):  
Tamás Brányi ◽  
László Józsa ◽  
Erika Seres-Huszárik

Beszállító, gyártó és vevő vállalatok alkotnak egy ellátási láncot. Optimális esetben a vállalatok integrált rendszerben működnek, az együttműködés bizal mi alapon nyugszik, így a közös stratégiai döntések révén versenyképes lesz a lánc. Az ellátási láncban lehet egy kulcsfontosságú vállalat, amelyik domináns hatalmi pozícióval rendelkezik. A kutatás célja, hogy feltárja a hatalommal rendelkező vállalat szerepét a partnercégek és az ellátási lánc versenyképességének alakulásában. A szakirodalom alapján a hipotézis feltételezi, hogy van kapcsolat a versenyképesség és a domináns vállalat szerepvállalása között. A szerzők elemzése primer kutatáson alapul, a kérdőív válaszait SPSS statisztikai kiértékeléssel végezték. Az eredmények azt mutatták, hogy a domináns vállalat versenyképességétől valóban függ a partnercégek versenyképessége. Szignifikáns kapcsolat megléte bizonyítja a hipotézist. A vizsgálatok kiemelik, hogy a verseny már egy szinttel feljebb, az ellátási lánc szintjén értelmezhető: globális ellátási láncok versenyeznek egymással. _____ Supplier, producer and buyer companies make up a supply chain. In an optimal case the companies are integrated, partnership rests on trust which results in common strategic decisions leading to competitiveness. Each supply chain has a key company with dominant power position. The objective of the research is to analyse how the company with power affects competitiveness of partner firms and the supply chain as a whole. Based on theories hypothesis assumes a link between competitiveness and power position and its influence. Methodology of the analysis is based on primary research; the authors used SPSS statistical analysis to evaluate the answers of questionnaire. Findings include that partner firms’ competitiveness rely on competitiveness of the company with dominant power position. Significant connections prove that the hypothesis is true. Results show that competitiveness is being moved up to supply chain level. Global supply chains compete with each other.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Robert Smith ◽  
Gerard McElwee

Purpose Food supply chain theory and practice generally assumes that the business practices and processes involved are ethical, legal and value-adding when this is not always so, as demonstrated by the ongoing 2013 horse-meat scandal. Although it is ostensibly a UK-based affair, it encompasses the meat processing industry across Europe. This study, thus, aims to examine supply chain criminality and to highlight “scandal scripts” which amplify underlying issues. Design/methodology/approach A systematic review of extant literature on the scandal adds to that body of work, updating the existing narrative to include a detailed analysis of convicted “industry insiders”, highlighting supply chain issues involved in the frauds. Micro-stories of businessmen involved are presented to enable an empirical exploration of their illegal involvement in the meat trade. Using storied data from accounts of the scandal as contemporary examples, emerging themes and issues are outlined through a mixed methods qualitative approach consisting of ethical covert research, using documentary research strategy underpinned by narrative inquiry. Findings Media coverage perpetuated various myths notably that the fraud was carried out by “shadowy”, Eastern European “mafia figures” exploiting the extended food supply chains. The analysis is aided by the use of media hypothesis. Far from being a mafia-inspired fraud, the criminal activity was organised in nature and committed by insider businessmen. The findings demonstrate that supply chains are complex and require an understanding of storied business practices, including the ethical and illegal. Research limitations/implications From an academic perspective, there are implications such as the dearth of academic research and policy-related studies into food fraud possibly because of the difficulty in obtaining data because of access to such enterprises and entrepreneurs necessitating reliance upon documentary sources and investigative journalism. Practical implications There are distinct policy implications, particularly the need to legislate against international criminal conspiracies and everyday ordinary organised food frauds perpetuated. Lax penalties do little to prevent such crimes which need to be taken more seriously by the authorities, and treated as major crime. In formulating food laws, rules and regulations, greater cognisance should be taken to consider how supply chains in the food industry could be better protected from predatory criminal actions. Originality/value This novel qualitative study will enable academics and practitioners to better understand illegal enterprise, food fraud and risk management from both operational and supply chain perspectives and will be useful to investigators by furthering our understanding of entrepreneurial practice and morality in the food industry.


2020 ◽  
Vol 12 (5) ◽  
pp. 1874
Author(s):  
Xu Jing ◽  
Yao Guanxin ◽  
Dai Panqian

The quality of agri-foods in e-supply chains confronts more threats than that in the traditional agri-food supply chain. However, most of the existing studies focusing on the quality problems of fresh agri-products are mainly cases studies and statistical analyses, and they do not take into account the farmers’ willingness to comply with safe agri-food supply procedures. To solve the supply quality problems of fresh agri-foods and help participators make a better choice, the decision-making behavior on the supply quality of agri-foods in the e-supply chain was deeply studied in this paper using game theory. Some factors related to the decision behavior of the supply chain were analyzed, including the supervision intension of the government, the rights protection consciousness of consumers, and the intensity of punishment for poor-quality agri-foods. These factors have an important influence on the farmers’ willingness to provide high-quality products and e-business’ probability of inspection. Compared with three different decision models of agri-food e-supply chains, the results show that the decentralized decision model is better than the centralized model from the view of quality protection. The behavior of members of the supply chain is as follows: the farmers’ willingness to supply high-quality agri-foods increases with the increase in the consumers’ consciousness of their rights and the government’s supervision intensity. The “experience deviation” phenomenon also occurs when a new e-business makes a decision about its quality inspection behavior in this e-supply chain where the quality information is traceable. As such, e-business enterprises should reduce their quality inspection behavior based on the increase in the government’s supervision intensity. This happens to be opposite to the traditional experience where quality information is not traceable. This study not only extends the research framework of the novel electronic supply chain, but also provides a certain reference for the subsequent research and e-business practices of fresh produce in developing countries.


2016 ◽  
Vol 21 (5) ◽  
pp. 610-626 ◽  
Author(s):  
Christine Jordan ◽  
Ozlem Bak

Purpose The growing scale and scope of the supply chain requires a greater understanding of the broader supply chain skills picture. This study aims to assess the supply chain skills needs within the context of a UK-based higher education institution involving graduates, academics and employers to appreciate the graduate skills demands of modern supply chains. Design/methodology/approach A mixed methods study entailing in-depth interviews with academics followed by a questionnaire distributed to graduates and employers has been designed and utilised. Findings The findings indicate that the changing supply chain scope encourages the requisition and development of different supply chain skills with varied levels of emphases in relation to 25 skills identified in the literature. Key graduate skills needs are highlighted, including time management, collaborative learning, teamwork and problem solving, with the addition of two supply chain skill areas, namely specialist training and the understanding and application of regulations. The findings of the current study present a limited emphasis on information technology (IT) skills, despite the significant IT advancements and changes in supply chains. Research limitations/implications The study has been carried out in a UK university delivering undergraduate supply chain management courses. It would be beneficial to test whether the findings are exemplary across other supply chain courses and to investigate the integration of these skills within the supply chain syllabus and how employers, graduates and academic parties could actively engage in developing the agenda for future supply chain skills needs. Practical implications This research paper highlights the gaps in supply chain skills, which inevitably puts considerable pressure on operatives and managers whose responsibility it is to ensure compliance with regulations and professional bodies. Originality/value This paper contributes to the supply chain skills discussion and reports subject relevant challenges for supply chain educators by engaging three key stakeholders – graduate employers, graduates and academics. The findings have generated additional supply chain skills to the academic literature, in addition to providing an understanding of the weighting of skills in terms of their importance and application to industry needs.


Author(s):  
Intaher M. Ambe ◽  
Johanna A. Badenhorst-Wess

Locally manufactured vehicles are destined (partly) for the export market and thus, global competitiveness  is  important.  This  article  explores  the  challenges  facing  supply  chains  of locally manufactured vehicles in South Africa. The automotive industry is perceived to be the most advanced in supply chain management practices in South Africa. It has embraced technology and management practices that have transformed the manufacturing environment by using cutting-edge design and visualisation tools. However, the industry has fragilities and faces new and emerging supply chain challenges. A survey research design was employed and  the  data  was  collected  through  face-to-face  semi-structured  interview  questionnaires based on the purposive sampling technique. Data analysis and interpretation was based on descriptive  statistics  using  SPSS  software.  The  findings  revealed  that  there  are  challenges hindering  best  supply  chain  practices  of  local  vehicle  manufacturers.  The  research  also revealed that there is a perceived difference in supply chain challenges between the different manufacturers of different origins in South Africa. Asian manufacturers felt much stronger about the adequacy of their information systems compared to the European manufacturers. Asian  manufacturers  tended  to  agree  more  than  their  European  counterparts  that  labour problems were a challenge. European manufacturers, on the other hand, tended to agree more that rail transport is unreliable. This article contributes to the body of knowledge on supply chain practices in South Africa. 


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Usha Ramanathan ◽  
Olu Aluko ◽  
Ramakrishnan Ramanathan

PurposeAt its peak, the COVID-19 pandemic has created disruption to food supply chains in the UK and for the entire world. Although societal changes created some resilience within the supply chains, high volatility in demand creates supply, logistics and distribution issues. This is reflected in the economic instability of businesses and small and medium enterprises (SMEs). In this paper, the authors explore factors behind this initial disruption in the supply chains and offer suggestions to businesses based on the established practices and theories.Design/methodology/approachThe authors use mixed methods research. First, the authors conducted an exploratory study by collecting data from published online sources. Then, the authors analysed possible scenarios from the available information using regression. The authors then conducted two interviews with UK retail sector representatives. These scenarios have been compared and contrasted to provide decision-making points to businesses and supply chain players to tackle current and any future potential disruptions.FindingsThe findings from the current exploratory study inform the volatility of supply chains. The authors suggested some possible responses from businesses, during and after the pandemic.Originality/valueThe regression model provides a decision-making approach to help supply chain businesses during the pandemic outbreak. Once a complete data set of COVID-19 is available, the authors can create a resilience model that can help businesses and supply chains.


2011 ◽  
Vol 8 (3) ◽  
pp. 535-547
Author(s):  
Johan J. Louw ◽  
Wessel Pienaar

The adoption of a full supply chain approach in the chemical industry is still relatively slow compared to other industries. Although the awareness has been kindled, very few petrochemical companies have advanced to a point where supply chain considerations and influences are proactively taken into account and incorporated in the formulation of corporate- and unit-specific business strategies/tactics, and formally structured and applied. Conventional supply chain integration concepts focus primarily on the internal and external integration of individual supply chains. Due to the highly integrated nature of petrochemical value chains, the related supply chains should also be integrated by taking account of enterprise/industry-wide synergies and interdependencies. Since not much research has been done to indicate the level of advancement in terms of supply chain planning in large-scale, South African-based petrochemical companies, this empirical research is the first of its kind. This research provides useful information regarding an understanding of the petrochemical industry, appropriate supply chain planning practices and the level of advancement in a number of related planning dimensions


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lusine Aramyan ◽  
Matthew Grainger ◽  
Katja Logatcheva ◽  
Simone Piras ◽  
Marco Setti ◽  
...  

Purpose Agri-food supply chains are facing a number of challenges, which cause inefficiencies resulting in the waste of natural and economic resources, and in negative environmental and social impacts. Food waste (FW) is a result of such inefficiencies and supply chain actors search for economically viable innovations to prevent and reduce it. This study aims to analyse the drivers and the barriers that affect the decision of supply chain operators to adopt innovations (technological – TI, organisational – OI and marketing – MI) to reduce FW. Design/methodology/approach The analysis was carried out using a four-step approach that included: a literature review to identify factors affecting the decision to adopt innovations; analysis of FW drivers and reduction possibilities along agri-food supply chains through innovations; mapping the results of Steps 1 and 2 and deriving conclusions regarding the factors affecting the adoption of innovations to reduce and prevent FW. Findings Results show that different types of innovations have a high potential in reducing and preventing FW along the supply chain; however, they still must be economically feasible to be adopted by decision makers in the food supply chain. TI, OI and MI are often interrelated and can trigger each other. When it comes to a combination of different types of innovation to reduce and prevent FW, a good example of combining TI, OI and MI may be observed in the retail sector in Europe. Here, innovative smartphone apps (TI) to promote the sale of products nearing their expiration dates (OI in terms of organising the sales differently and MI in terms of marketing it differently) were developed and adopted via different retailing channels, leading to the creation of a new business model. Practical implications This study analyses the drivers of FW generation together with the factors affecting the decision to adopt innovations to reduce it and provides solutions to supply chain operators to prevent and reduce FW through different types of innovations. Originality/value Literature has not systematically addressed innovations aiming at the reduction of FW yet. This paper provides a comprehensive literature review of the determinants of innovation adoption and offers a novel view on the problem of FW reduction by means of innovation, by linking factors affecting the decision to innovate with FW drivers.


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