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The Balance of Risk Management in Business Networks and How to Enhance Trust Towards a Collaborative Food Network

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  • Mau, Markus

Abstract

The development in food network perspective forces the demand for a proper configuration of the risks that occur from the ongoing trend towards the globalized supply chain. The paper shows the requirement shift through globalized procurement. As an effect towards long distance purchasing activities the direct control of production, logistics processes and processing are out of direct control for most of the person in charge in downstream processes. Process transparency and information readiness are essential to reduce risk in (e-)business networks. Outputs of this requirement are vertical coordinations through interorganizational agencies as EurepGap and IFS. Especially for brand marks relationship management and vertical coordination are needed to secure the continuously high quality of the product. That is directly related to controlling the whole value chain - fulfilling additional traceability requirements in case of risk. A comprehensive control platform for decision makers is required.

Suggested Citation

  • Mau, Markus, 2006. "The Balance of Risk Management in Business Networks and How to Enhance Trust Towards a Collaborative Food Network," 99th Seminar, February 8-10, 2006, Bonn, Germany 7725, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae99:7725
    DOI: 10.22004/ag.econ.7725
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    Keywords

    Agribusiness; Risk and Uncertainty;

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