Source: MICHIGAN STATE UNIV submitted to NRP
COORDINATION AND CONSUMER RESPONSIVENESS IN THE MICHIGAN FOOD SUPPLY CHAIN
Sponsoring Institution
State Agricultural Experiment Station
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
0181511
Grant No.
(N/A)
Cumulative Award Amt.
(N/A)
Proposal No.
(N/A)
Multistate No.
(N/A)
Project Start Date
Mar 1, 2004
Project End Date
Feb 28, 2009
Grant Year
(N/A)
Program Code
[(N/A)]- (N/A)
Recipient Organization
MICHIGAN STATE UNIV
(N/A)
EAST LANSING,MI 48824
Performing Department
AGRICULTURAL, FOOD & RESOURCE ECONOMICS
Non Technical Summary
A. There are various inefficiencies in the food supply chain. B. Some firms need assistance, understanding and/or implementing tools and techniques that improve performance and supply chain coordination. A. This project examines various inefficiencies and tools that improve performance. B. The purpose of this study is to understand and examine industry best practices to assist firms in improving performance and supply chain coordination.
Animal Health Component
60%
Research Effort Categories
Basic
20%
Applied
60%
Developmental
20%
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
6035010301040%
6036230303020%
6046220301040%
Goals / Objectives
The overall objective of this research is to understand the factors that improve supply chain coordination and provide consumer responsiveness within the food industry. Sub-objectives of the research are as follows: To identify current and emerging changes in corporate strategy as well as in day-to-day operations as to their ability to improve internal firm, as well as supply chain, performance and coordination; To examine best practices used by leading manufacturers, wholesalers, and retailers in terms of efficient replenishment, store assortment, promotion and new product development; To determine what attributes of firm culture, policies, practices and interrelationships with other channel members contribute to successful supply chain coordination and consumer responsiveness; To provide action guidelines that members of the entire food supply system can use to implement tools, techniques and best practices to achieve supply chain coordination and consumer responsiveness; and To understand the impact of consumer and industry trends on Michigan-based food and agribusiness firms as they relate to the objectives listed above.
Project Methods
First, the identification of current and emerging changes in strategic and operational activities will be accomplished through informal but structured interviews with business people and academics studying this area, through participation in conferences and extension meetings, and through careful literature reviews including academic and trade materials. Next, the examination of best will be conducted through case or field studies that highlight specific firm procedures and literature reviews. The examination of consumer responsiveness will be completed through focus group interaction with consumers as well as survey data. Also, the examination of interrelationships will include a mix of in-depth case studies and quantitative data gathered from questionnaires. The questionnaires will be completed by manufacturers and their alliance partners with material suppliers (e.g., chemicals and/or food products) and packaging suppliers. Statistical analysis and structural equation modeling will be used to analyze the questionnaire data. Finally, the data and insight gained through researching objectives 1-3 will be culminated to complete the final objective. The case material and questionnaire data will be combined with an extensive literature review to develop implementation recommendations as well as to define and describe tools and techniques available.

Progress 03/01/04 to 02/28/09

Outputs
The Efficient Consumer Response (ECR) movement began in the early 1990s. While some individual firms have found significant improvements resulting from their involvement in ECR, the industry as a whole has struggled to realize the expected benefits from ECR. While firms intuitively understand ECR in theory, many do not understand how to implement ECR and how to benefit from its tools/techniques, change the traditional mindset within the firm, and gain the enhanced skills/technologies required in order to make ECR a reality. The progress made over the course of the project has focused on identifying current and emerging changes in corporate strategy as well as in daily operations within firms involved in ECR to determine how ECR is implemented and its resulting performance benefits. This has included identifying opportunities for improvement as well as barriers to successful implementation. Research on strategic alliance formation has also been completed to understand what types of relationships between supply chain members support the ECR philosophy. Further, best practices by leading food manufacturers, wholesalers, and retailers has been examined through in-depth case studies to begin to determine what attributes of a firm's culture, policies, practices, and relationships with other channel members contribute to successful ECR implementation. These case studies have involved Michigan-based firms as well as firms outside the state to make comparisons of best practice. The outcome from the case studies involved the creation of managerial guidelines that firms can use to implement ECR and other collaborative approaches. Further, the researcher has been involved in interviews of Michigan food processing companies to understand retention and expansion issues particular to Michigan. Dissemination of initial results has occurred through publications as well as through presentations/seminars made regionally (e.g., Food Retail Management to USDA - Cochrane Fellowship at MSU), nationally (e.g., World Class Logistics: Creating Value in the Food Supply Chain to the Council of Logistics Management, Toronto), internationally (e.g., ECR Reality: Integration Through Trust in the Agri-Food Supply Chain a poster session at the International Food and Agribusiness Management Association - Building Trust in the Agro-Food System Conference, Florence, Italy) and through extension services (e.g., Agri-Food Integration to New Economic Realties: Industry Trends Affecting Michigan Farmers at MSU Extension Satellite Conference).

Impacts
The impact of this project has been to disseminate information on the benefits, opportunities, and barriers to implementing ECR, its sub-sections, and other collaborative relationships. This has provided managers with actionable guidelines for implementing leading-edge practices within their firms as well as understanding how to form successful alliances and other collaborative relationships. Further this research provides recognition for the changes that are required within the firm as well as across collaborating firms in order to successfully integrate the agri-food supply chain. Further, a 2004 article (Sabath, R., and Whipple, J.M. 2004. Using the Customer/Product Action Matrix. Journal of Business Logistics. 25:2:1-19) was selected for the Bernard J. LaLonde Best Paper in 2005 through the Journal of Business Logistics.

Publications

  • No publications reported this period


Progress 01/01/05 to 12/31/05

Outputs
The Efficient Consumer Response (ECR) movement began in the early 1990s. While some individual firms have found significant improvements resulting from their involvement in ECR, the industry as a whole has struggled to realize the expected benefits from ECR. While firms intuitively understand ECR in theory, many do not understand how to (1) implement ECR and benefit from its tools/techniques, (2) change the traditional mindset within the firm, and (3) gain the enhanced skills/technologies required in order to make ECR a reality. Further, many in the industry believe that ECR has fallen short of its promised efficiencies and value. This belief in part is due to unrealistic expectations as well as the difficulties associated with such major change. Several sub-sections of ECR continue to remain important in the industry, such as category management and efficient replenishment programs (e.g., Collaborative Planning, Forecasting, and Replenishment-CPFR). The research progress for the past year has been to better understand new forms of collaborative relationships with the goal of achieving coordination across the supply chain. Research on CPFR has been conducted to determine its current implementation status and best practices by leading food manufacturers, wholesalers, and retailers via in-depth case studies. These case studies have involved Michigan-based firms as well as firms outside the state to make comparisons of best practice. The outcome from the case studies involves creating managerial guidelines for implementation. Additional research this past year has been creating an on-line survey that was sent to individuals who have procurement responsibilities where they were asked to make comparisons between collaborative and contractual/transactional relationships. Results, upon analysis, will be disseminated through publications and presentations/seminars made to various groups.

Impacts
The impact of this project has been to disseminate information on the benefits, opportunities, and barriers to implementing ECR, its sub-sections, and other collaborative relationships. This has provided managers with actionable guidelines for implementing leading-edge practices within their firms as well as understanding how to form successful alliances and other collaborative relationships. Further this research provides recognition for the changes that are required within the firm as well as across collaborating firms in order to successfully integrate the agri-food supply chain. Further, a 2004 article (Sabath, R., and Whipple, J.M. 2004. Using the Customer/Product Action Matrix. Journal of Business Logistics. 25:2:1-19) was selected for the Bernard J. LaLonde Best Paper in 2005 through the Journal of Business Logistics.

Publications

  • Dutta, P., Huddleston P., and Whipple, J.M. 2005. Is the Specialty Food Store Shopper Ultimately Loyal. Conference Proceedings of the European Association of Education and Research in Commercial Distribution.


Progress 01/01/04 to 12/31/04

Outputs
The Efficient Consumer Response (ECR) movement began in the early 1990s. While some individual firms have found significant improvements resulting from their involvement in ECR, the industry as a whole has struggled to realize the expected benefits from ECR. While firms intuitively understand ECR in theory, many do not understand how to (1) implement ECR and benefit from its tools/techniques, (2) change the traditional mindset within the firm, and (3) gain the enhanced skills/technologies required in order to make ECR a reality. Further, many in the industry believe that ECR has fallen short of its promised efficiencies and value. This belief in part is due to unrealistic expectations as well as the difficulties associated with such major change. Several sub-sections of ECR continue to remain important in the industry, such as category management and efficient replenishment programs (e.g., Collaborative Planning, Forecasting, and Replenishment-CPFR). The research progress for the past year has been to better understand new forms of collaborative relationships with the goal of achieving coordination across the supply chain. Research on CPFR has been conducted to determine its current implementation status and best practices by leading food manufacturers, wholesalers, and retailers via in-depth case studies. These case studies have involved Michigan-based firms as well as firms outside the state to make comparisons of best practice. The outcome from the case studies involves creating managerial guidelines for implementation. Additional research this past year has been on consumer issues, particularly store loyalty. Previous research based on focus groups of Michigan consumers has led to the development of a survey instrument focused on retail food store loyalty issues. The survey was disseminated to 4500 consumers in Michigan and eight other states. Results, upon analysis, will be disseminated through publications, and through presentations/seminars made to various groups as well as media interviews.

Impacts
The impact of this project has been to disseminate information on the benefits, opportunities, and barriers to implementing ECR, its sub-sections, and other collaborative relationships. This has provided managers with actionable guidelines for implementing leading-edge practices within their firms as well as understanding how to form successful alliances and other collaborative relationships. Further this research provides recognition for the changes that are required within the firm as well as across collaborating firms in order to successfully integrate the agri-food supply chain. Additional impacts have been on better understanding attitudes consumer have toward food shopping and loyalty issues surrounding food retail stores.

Publications

  • Huddleston, P., Whipple, J.M., and VanAuken, A. 2004. Perceived Design and Ambient Irritants of Food Store Shopping: A Qualitative Approach. Conference Proceedings of the Academy of World Business Marketing and Management Development.
  • Sabath, R., and Whipple, J.M. 2004. Using the Customer/Product Action Matrix. Journal of Business Logistics. 25:2:1-19.
  • Huddleston, P., Whipple, J.M., and VanAuken, A. 2004. Food Store Loyalty: Application of a Consumer Loyalty Framework. Journal of Targeting. 12:2:213-230.


Progress 01/01/03 to 12/31/03

Outputs
The Efficient Consumer Response (ECR) movement began in the early 1990s. While some individual firms have found significant improvements resulting from their involvement in ECR, the industry as a whole has struggled to realize the expected benefits from ECR. While firms intuitively understand ECR in theory, many do not understand how to (1) implement ECR and benefit from its tools/techniques, (2) change the traditional mindset within the firm, and (3) gain the enhanced skills/technologies required in order to make ECR a reality. Further, many in the industry believe that ECR has fallen short of its promised efficiencies and value. This belief in part is due to unrealistic expectations as well as the difficulties associated with such major change. Several sub-sections of ECR continue to remain important in the industry, such as category management and efficient replenishment programs (e.g., Collaborative Planning, Forecasting, and Replenishment-CPFR). The research progress for the past year has been to better understand new forms of collaborative relationships with the goal of achieving coordination across the supply chain. Research on CPFR has been conducted to determine its current implementation status and best practices by leading food manufacturers, wholesalers, and retailers via in-depth case studies. These case studies have involved Michigan-based firms as well as firms outside the state to make comparisons of best practice. The outcome from the case studies involves creating managerial guidelines for implementation. Additional research this past year has been on consumer issues, particularly store loyalty. This research incorporated focus groups of Michigan consumers to discuss local food retailers and store loyalty issues. Dissemination of results has occurred through publications, and through presentations/seminars made to various groups as well as media interviews.

Impacts
The impact of this project has been to disseminate information on the benefits, opportunities, and barriers to implementing ECR, its sub-sections, and other collaborative relationships. This has provided managers with actionable guidelines for implementing leading-edge practices within their firms as well as understanding how to form successful alliances and other collaborative relationships. Further this research provides recognition for the changes that are required within the firm as well as across collaborating firms in order to successfully integrate the agri-food supply chain. Additional impacts have been on better understanding consumers' attitudes toward food shopping and loyalty issues surrounding food retail stores.

Publications

  • No publications reported this period


Progress 01/01/02 to 12/31/02

Outputs
The Efficient Consumer Response (ECR) movement began in the early 1990s. While some individual firms have found significant improvements resulting from their involvement in ECR, the industry as a whole has struggled to realize the expected benefits from ECR. While firms intuitively understand ECR in theory, many do not understand how to (1) implement ECR and benefit from its tools/techniques, (2) change the traditional mindset within the firm, and (3) gain the enhanced skills/technologies required in order to make ECR a reality. Further, many in the industry believe that ECR has fallen short of its promised efficiencies and value. This belief in part is due to unrealistic expectations as well as the difficulties associated with such major change. The research progress for the past year has been to better understand how insights from early ECR relationships have expanded into collaborative relationships with the goal of achieving coordination across the supply chain. Research on strategic alliance formation has also been completed to understand how collaborative efforts can be enhanced through trust-like behaviors. Further, best practices by leading food manufacturers, wholesalers, and retailers have been examined through in-depth case studies to begin to determine what attributes of firms? cultures, policies, practices, and relationships with other channel members contribute to successful collaboration. These case studies have involved Michigan-based firms as well as firms outside the state to make comparisons of best practice. The outcome from the case studies involves creating managerial guidelines that firms can use to implement ECR. Dissemination of results has occurred through publications provided below, and through presentations/seminars made to various groups as well as media interviews.

Impacts
The impact of this project has been to disseminate information on the benefits, opportunities, and barriers to implementing ECR and other collaborative relationships. This has provided managers with actionable guidelines for implementing ECR practices within their firms, and for responding to new opportunities as well as understanding how to form successful alliances and other collaborative relationships. Further this research provides recognition for the changes that are required within the firm as well as across collaborating firms in order to successfully integrate the agri-food supply chain.

Publications

  • Whipple, J.M., Frankel, R., and Daugherty, P.J. 2002. Information Support for Alliances: Performance Implications. Journal of Business Logistics. 23:2.
  • Frankel, R., Goldsby, T.J., and Whipple, J.M. 2002. Grocery Industry Collaboration in the Wake of ECR. International Journal of Logistics Management. 13:1, 1-16.
  • Anselmi, K., Frankel, R. and Whipple, J.M. 2002. Performance in Product Versus Service Supplier Relationships. Journal of Business-to-Business Marketing. 9:1.


Progress 01/01/01 to 12/31/01

Outputs
The Efficient Consumer Response (ECR) movement began in the early 1990s. While some individual firms have found significant improvements resulting from their involvement in ECR, the industry as a whole has struggled to realize the expected benefits from ECR. While firms intuitively understand ECR in theory, many do not understand how to (1) implement ECR and benefit from its tools/techniques, (2) change the traditional mindset within the firm, and (3) gain the enhanced skills/technologies required in order to make ECR a reality. Further, many in the industry believe that ECR has fallen short of its promised efficiencies and value. This belief in part is due to unrealistic expectations as well as the difficulties associated with such major change. The research progress for the past year has been to better understand realistic time-lines for implementing ECR and its related supply chain activities as well as to understand how firms can better collaborate to achieve coordination across the supply chain. This has included identifying opportunities for improvement as well as barriers to successful implementation. Research on strategic alliance formation has also been completed to understand how collaborative efforts can be enhanced through trust-like behaviors. Further, best practices by leading food manufacturers, wholesalers, and retailers have been examined through in-depth case studies to begin to determine what attributes of firms' cultures, policies, practices, and relationships with other channel members contribute to successful ECR implementation. These case studies have involved Michigan-based firms as well as firms outside the state to make comparisons of best practice. The outcome from the case studies involves creating managerial guidelines that firms can use to implement ECR. Dissemination of results has occurred through publications provided below, and through presentations/seminars made to various groups as well as media interviews.

Impacts
The impact of this project has been to disseminate information on the benefits, opportunities, and barriers to implementing ECR and to the changing food system. This has provided managers with actionable guidelines for implementing various ECR practices within their firms, and for responding to new opportunities as well as understanding how to form successful alliances and other collaborative relationships. Further this research provides recognition for the changes that are required within the firm as well as across collaborating firms in order to successfully integrate the agri-food supply chain.

Publications

  • Schweikhardt, D., and Whipple, J. 2001. Drivers of Change. The 2002 Farm Bill: Policy Options and Consequences. Joe L. Outlaw and Edward G. Smith, editors. The Farm Foundation. 3-6.
  • Stank, T.P., Frankel, R., Frayer, D.J., Goldsby, T.J., Keller, S.B., and Whipple, J.M. 2001. Supply Chain Integration: Tales from the Trenches. Supply Chain Management Review. (May/June):62-69.


Progress 01/01/00 to 12/31/00

Outputs
The Efficient Consumer Response (ECR) movement began in the early 1990s. While some individual firms have found significant improvements resulting from their involvement in ECR, the industry as a whole has struggled to realize the expected benefits from ECR. While firms intuitively understand ECR in theory, many do not understand how to implement ECR and how to benefit from its tools/techniques, change the traditional mindset within the firm, and gain the enhanced skills/technologies required in order to make ECR a reality. The progress made within the past year has focused on identifying current and emerging changes in corporate strategy as well as in daily operations within firms involved in ECR to determine how ECR is implemented and its resulting performance benefits. This has included identifying opportunities for improvement as well as barriers to successful implementation. Research on strategic alliance formation has also been completed to understand what types of relationships between supply chain members support the ECR philosophy. Further, best practices by leading food manufacturers, wholesalers, and retailers has been examined through in-depth case studies to begin to determine what attributes of firms cultures, policies, practices, and relationships with other channel members contribute to successful ECR implementation. These case studies have involved Michigan-based firms as well as firms outside the state to make comparisons of best practice. The outcome from the case studies involves creating managerial guidelines that firms can use to implement ECR. Dissemination of initial results has occurred through publications provided below as well as through presentations/seminars made regionally (co-developing and participating in The Food System of the 21st Century Conference), nationally (e.g., Meal Solutions: The Saving Grace for Supermarkets? to the International Food and Agribusiness Management Association, and Leveraging Effective Alliances in the New Supply Chain Framework, to the Efficient Consumer Response 2000 Conference), and through extension services (e.g., Understanding How Consumer Demand and Technology are Changing the Food System to MSU Extension Satellite Conference, and Agri-Food Integration: Impact on Meal Solutions for the Consumer, for the 2000 Annual Food and Nutrition Conference). Further, one video was scripted and developed video based on interviews with key industry speakers for satellite conference/extension development and class use, entitled Reshaping the Food System: Seed to Supermarket.

Impacts
The impact of this project has been to disseminate information on the benefits, opportunities, and barriers to implementing ECR and to the changing food system. This has provided managers with actionable guidelines for implementing various ECR practices within their firms, and for responding to new opportunities as well as understanding how to form successful alliances. Further this research provides support for what changes are required within the firm as well as within the supply chain in order to create success business opportunities.

Publications

  • Stank, T.P., Frankel, R., Frayer, D.J., Goldsby, T.J., Keller, S.B., Whipple, J.M. 2000. Supply Chain Integration in the Food and Consumer Goods Industry, Michigan State University Staff Paper 00-46.
  • Whipple, J.M., Frankel, R. 2000. Success Factors in an Alliance: Do Both Parties Agree? The Journal of Supply Chain Management, 36:3 (Summer), 21-28.
  • Whipple, J.S., Gentry, J.J. 2000. A Network Comparison of Alliance Motives and Achievements, Journal of Business and Industrial Marketing, 15:4/5, 301-322.
  • Whipple, J.M., Frankel, R. 2000. Strategic Alliances: Long Term Success Factors, American Production and Inventory Control Society.


Progress 03/01/99 to 12/31/99

Outputs
The Efficient Consumer Response (ECR) movement began in the early 1990's. While some individual firms have found significant improvements resulting from their involvement in ECR, the industry as a whole has struggled to realize the expected benefits from ECR. While firms intuitively understand ECR in theory, many do not understand how to implement ECR and how to benefit from its tools/techniques, change the traditional mindset within the firm, and gain the enhanced skills/technologies required in order to make ECR a reality. The progress made within the past year has focused on identifying current and emerging changes in corporate strategy as well as in daily operations within firms involved in ECR to determine how ECR is implemented and its resulting performance benefits. This has included identifying opportunities for improvement as well as barriers to successful implementation. Research on strategic alliance formation has also been completed to understand what types of relationships between supply chain members support the ECR philosophy. Further, best practices by leading food manufacturers, wholesalers, and retailers has been examined through in-depth case studies to begin to determine what attributes of a firm's culture, policies, practices, and relationships with other channel members contribute to successful ECR implementation. These case studies have involved Michigan-based firms as well as firms outside the state to make comparisons of best practice. The outcome from the case studies involves creating managerial guidelines that firms can use to implement ECR. Further, the researcher has been involved in interviews of Michigan food processing companies to understand retention and expansion issues particular to Michigan. Dissemination of initial results has occurred through publications provided below as well as through presentations/seminars made regionally (e.g., 'Food Retail Management' to USDA - Cochrane Fellowship at MSU), nationally (e.g., 'World Class Logistics: Creating Value in the Food Supply Chain' to the Council of Logistics Management, Toronto), internationally (e.g., 'ECR Reality: Integration Through Trust in the Agri-Food Supply Chain' a poster session at the International Food and Agribusiness Management Association - Building Trust in the Agro-Food System Conference, Florence, Italy) and through extension services (e.g., 'Agri-Food Integration' to New Economic Realties: Industry Trends Affecting Michigan Farmers at MSU Extension Satellite Conference).

Impacts
The impact of this project has been to disseminate information on the benefits, opportunities, and barriers to implementing ECR. This has provided managers with actionable guidelines for implementing various ECR practices within their firms as well as understanding how to form successful alliances. Further this research provides support for what changes are required within the firm as well as within the supply chain in order to ECR to be successfully implemented.

Publications

  • Whipple, J.S., Frankel, R., Anselmi, K. 1999. The Effect of Governance Structure on Performance: A Case Study on Efficient Consumer Response. Journal of Business Logistics, Vol. 20, No. 2, 43-62pp.
  • Whipple, J.M., Frankel, R. 1998. The Alliance Formation Process. International Food and Agribusiness Management Review, Vol.1, No. 3, 335-357pp.
  • Whipple, J.M., Frankel, R. 1999. Strategic Alliances: Creating Long Term Success. Michigan State University-Department of Agricultural Economics Staff Paper #99-16.