Business relationships and their connectors in fresh produce supply chains in New Zealand

Abstract

This research investigates the way that firms in New Zealand fresh produce supply chains manage business relationships to fulfil customer requirements and take account of market and situational factors. A theoretical research framework was created by adapting models from De Moura (2002) and Cannon and Perreault Jr, (1999) and combining these. This framework represents the impact of customer requirements and market and situational factors on supply chain management components, and the effect that buyer and seller relationship connectors at each dyadic level have in product delivery according to customer requirements. The study differs from other fresh product supply chain studies in that it takes a more holistic approach than other studies, and in that way analyses New Zealand supermarket fresh produce supply chains. Two important research insights were generated from the case study analyses. Firstly, both chains show the relationship connectors that are necessary to ensure the supply chain management components are met. High levels of information exchange, cooperative norms, specific buyer-seller adaptation and strong operational linkages make it possible for logistics management, quality management, procurement management and information flow to respond to the challenges provided by customer quality requirements and market and situational factors like perishability, availability and value adding. The second research finding concerns the difference in the way the business relationships are structured in two different New Zealand supermarket fresh produce supply chains. This difference shows that the relationship connectors can be set up in different ways, in fresh produce supply chains, to ensure the efficient operation of the supply chain management components.