Article Abstract:
The grocery and agricultural industries have independently developed strategies ultimately aimed at creating greater consumer value. The Grocery industry have created the Efficient Consumer Response plan which focuses on collaboration between distributors and suppliers. The farming industry has created the concept of Industrialization of Agriculture, which is aimed at providing value at the production end of food supply. A strategy which integrates the whole value-chain from production to distribution, through the use of information technology systems, must be developed to deliver optimal value to consumers.
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Article Abstract:
The performance of J. Sainsbury PLC, a top British food retailer, from 1987-97, is given as evidence for the argument that some elements of the UK model of food retailing can work in US markets. The event supports perceptions indicating a trend of retailer influence in US systems for the future. Additionally, the case study of Sainsbury's US experience contradicts a prediction by Ronald W. Cotterill that 21st century food systems are likely to converge into a US manufacturer-led model.
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Article Abstract:
The positive feedback concept was used to show how the inefficient buying and selling practices of grocery manufacturers and distributors were established during the early 1970s to guard against price controls. Game theory and transaction-cost economics were also used to show why such inefficient practices in food distribution persist despite the possibility of using other and better transaction systems.
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