Examine different types of relationships between retailers and suppliers.
Assess key factors determining the relationship nature.
Understand the supply chain and the impact of digital technologies.
Analyze how suppliers are recruited and evaluated.
Evaluate the impact on shoppers.
Definition: A series of activities and inputs that produce specific value outputs for customers (Lambert & Cooper, 2000).
Efficient management encompasses:
Product design
Procurement
Planning and forecasting
Production
Distribution
Fulfillment
After-sales support
End-of-life disposal
Key questions:
How is value defined?
How can it be measured?
What is the worth of products/services to customers?
Important for suppliers and retailers to seek efficiencies, risk sharing, and value creation.
Establishing long-term relationships enhances mutual benefits:
Shift from transactional to relational focus is essential.
Relationship value serves as a metric for supplier performance evaluation (Eggert and Ulaga, 2002).
Areas for collaboration include:
Category management
Price promotions
Advertising campaigns
Vendor-managed inventory
Value generation is central to exchange relationships, informing marketing strategies (Lindgreen et al., 2006).
Commitment and trust are key drivers in cooperative relationships (Hunt and Morgan, 1994).
Transition from transactional marketing to relationship marketing:
Focus on customer base stability over short-term sales.
Key traits include:
High trust and commitment levels.
Long-term relationship perspective.
Open communication and information sharing.
Quality commitment and customer orientation.
Mutual benefits in competitive advantages, profitability, and increased sales.
Coca-Cola & McDonald's:
Collaborative relationship with shared benefits.
Innovations like the Extra Value Meal.
Intel & Apple:
Shift towards backward integration with self-manufactured processors.
Key stakeholders: Internal enterprise functions, supplier networks, and distributive networks.
Distribution affects profitability and customer experience:
Channels include wholesalers, retailers, and the internet.
Transition from traditional resource provision to partnership roles in value creation.
Digitalization has enhanced supply chain information flow and real-time decision making.
Disintermediation defined as removing intermediaries, leading to direct relationships with consumers (e.g., Nike, Dell).
Reintermediation involves adding new partners in the supply chain to enhance value.
Threats to traditional retailers from the direct-to-consumer model:
Cost reductions and efficiencies.
Need for a strong brand and digital presence.
Risks of alienating existing partners.
Include production capacity, innovation capabilities, managerial processes, sustainability, quality assurance, and responsiveness.
Issues such as self-interest, greed, and dependency can impact supplier-retailer dynamics.
Rise of dominant retailers (e.g., Walmart, Tesco) impacting manufacturers.
Retailers using power strategically for cost concessions and vendor management.
Effects include lower prices, greater transparency, and potential reduction in market choices due to retailer agendas.
Need for strategic fit across diverse customer segments:
Employing various operations for different products to match responsiveness.
Continuous replenishment supply chain: Predictable demand.
Lean supply chain: Cost efficiency focus.
Agile supply chain: High responsiveness to unpredictable demand.
Fully flexible supply chain: Targets niche markets.