RELATIONSHIPS WITHIN SUPERMARKETS SUPPLY CHAINS

Abstract

Lately, there has been an increase on foreign direct investment and mergers which results on more concentration of retailing and the formation of global supply chains. As a consequence, co-operative arrangements between producers and retailers have been considered as an interesting alternative to spot market transactions. This study discusses how supermarkets strategies are transferring standards for the different agents involved in beef production and processing. The literature reviews relationships within the supply chains, the transaction costs economics framework and supermarkets strategies. The empirical approach employed in the study is based on qualitative methods focusing on four case studies of large and medium sized supermarket chains located in Brazil. The results have great policy and managerial implications for the retail and food sector and research on supply chain in Latin America. The results also have important implications for managers of the beef chains in particular and other chains in general. From a managerial perspective, the results suggest that investments in management capacity to new forms of organization and brandings have to be considered. Emerging private standards are demanding changes to a more integrated supply chain in order to enhance confidence in the beef production and processing. Supermarkets are the chain leaders in this change.