Buyer–supplier relationship's influence on traceability implementation in the vegetable industry

doi:10.1016/j.pursup.2006.02.003

Journal of Purchasing and Supply Management

Volume 12, Issue 1, January 2006, Pages 39-50

https://doi.org/10.1016/j.pursup.2006.02.003 Get rights and content

Abstract

The increasing importance of food safety has made traceability a crucial issue in the agri-business industry. In this article, we have analysed the factors that shape buyer–supplier relationships, and how they influence the traceability of raw materials. In order to do so, first, we have reviewed the literature to develop an analytical framework. Next, we have carried out four case studies on vegetable firms with the purpose of uncovering the variables that characterise buyer–supplier relationships, and their influence on traceability in this sector. Finally, we have compared the observed links with the conceptual framework derived from the literature in order to build an improved model.

Introduction

In the food industry, products to be consumed must be free of any kind of hazards for consumers’ health. Traceability is the registering and tracking of parts, processes, and materials used in production (Cox et al., 2002). In this sense, traceability becomes an indispensable process to prevent consumer's hazards and a crucial mechanism to assure quality in food firms. As of January 2005, European Union authorities require that food firms ensure quality by tracing all products in all stages, from the supplier all the way to the end consumer.

Traceability is a mechanism that requires and reinforces a maximum level of co-ordination between firms and suppliers, and between firms and retailers. Therefore, for researchers interested in the supply chain literature, traceability in food industries may become a relevant aspect to study.

The main objective of this article is to determine how the variables that shape the buyer–supplier relationship influence the implementation of traceability of raw materials in the specific case of vegetable firms. The paper is organised in four sections. In section two, we have carried out an extensive literature review on buyer–supplier relationships in different industries in order to derive an analytical framework. In the third section, the methodology employed in this project is described. We have conducted in-depth case studies in four vegetable firms. Cases are described in the fourth section. Then, in section five, we have analysed the data contained in the cases, and have isolated those variables that determine buyer–supplier relationships in the vegetable industry and its influence on traceability implementation. Finally, we sum up our conclusions, presenting an improved model, and ideas for further research.

Section snippets

Literature review

With the review of the literature, our intention has been twofold. On the one hand, to find out those variables, previously studied, that influence the relationships between buyers and suppliers in order to establish a general framework; and on the other hand, to examine what has been studied regarding traceability as a management tool.

Methodology

For this project, we have used Case Study methodology. As described by Yin (1984), Miles and Huberman (1984), and Voss et al. (2002), Case Study is a research strategy that tries to understand the dynamics present within single settings and is appropriate to study phenomena that take place in rich contexts where there are always many variables to consider in comparison to the number of observations made. This methodology typically combines data collection methods such as archives, interviews,

Case analysis

The vegetable industry in Spain is mostly concentrated in two regions: Ebro Valley and Murcia (see Fig. 2). Around 60% of the Spanish vegetable firms are located in these two geographical areas. Our empirical research was carried in the first region, the Ebro Valley.

There are three kinds of suppliers of raw materials: farmers, trading companies and co-operatives of first degree. Trading companies act as intermediaries between the farmers and transforming firms, even though it is common to find

Findings and propositions

The four cases describe the kind of relationship each firm maintains with their suppliers. Following, we develop a set of propositions specifying the influence that a number of variables uncovered in the analysis has on the degree of co-ordination between buyers and suppliers, the connection between some of the variables and the resources employed in traceability, and the relationship between co-ordination and traceability. We have grouped the variables into three factors, which resemble the

Conclusions

The variables we have found in the analysis have been clustered into three factors: those associated with the firm (buyer); those associated with suppliers; and finally, those linked to the competitive environment. These three factors coincide with the ones described in the conceptual framework derived from the literature review, even though we have found some slight differences. These are:

1. Supplier-specific factor. In the case of vegetable industry, we have found two additional variables

Acknowledgements

Financial support for the project, provided by the Ministry of Education and Culture of the Government of Navarra, and by the Foundation “Empresa—Universidad de Navarra,” is gratefully acknowledged.

We thank the managers who participated in this study. We also appreciate the numerous useful comments from the reviewers, and the help in preparing this article provided by Javier González-Benito, and Sanjeev Nath.

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Buyer–supplier relationship's influence on traceability implementation in the vegetable industry

Abstract

Introduction

Section snippets

Literature review

Methodology

Case analysis

Findings and propositions

Conclusions

Acknowledgements

Journal of Operations Management

European Journal of Purchasing and Supply Management

European Journal of Purchasing and Supply Management

Omega

Computers & Chemical Engineering

Industrial Marketing Management

International Journal of Information Management

Journal of Operations Management

Journal of Production Innovation Management

The influence of power driven buyer/seller relationships on supply chain satisfaction

Journal of Operations Management

Traceability in Manufacturing Systems

International Journal of Operations and Production Management