SME Food Suppliers Versus Large Retailers: Perspectives in the International Supply Chains
The market share of international retail chains substantially increased from the beginning of the nineties. The supplier’s market has been adapted to the evolutions of retailers’ market in terms of modified purchasing processes. Due to these changes, the requirements for food industry suppliers grew in number and quality. The paper shows how the relationship between suppliers and retailers is affected by several important changes, above all at international level. In particular, the analysis is focused on the Italian food SME suppliers related with large retailers. In-depth interviews to 89 Italian food SME suppliers have been conducted in 2008. Results have been analyzed and compared to the retailers’ point of view, resulting from public reports (such as Annual report, CSR report, etc.). Considering the selection criteria used by retailers, one of the main results of the analysis is that the growth of small and medium suppliers is stimulated when they operate with international large retailers. At the same time, the pressure on price and the required organizational qualifications lead to a selection process in which smaller manufacturers seem to be the more vulnerable actors.
Volume (Year): 13 (2010)
Issue (Month): ()
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