Identifying Best Practice in Relationships between Buyers and Suppliers along Food Supply Chains in Australia and the UK

Industry Interviews: Qualitative Findings. By Sue Hornibrook and Rob Clark. Kent Business School UK. January 2007

In the UK, food retailing is dominated by a handful of supermarkets, who having rationalised their supply base dramatically in recent years, now deal with just a handful of suppliers in each product area.  The majority of supermarkets have invested heavily in building the retail brand, and have developed a portfolio of own brands aimed at different market segments, ranging from value to premium sub brands, but there are clear differences between retailers in the balance given to different market segments. 

Australia is similar in context to the UK, where food retailing is extremely competitive but own brands are positioned as low cost, value lines.  However, the major players are now following the UK model by developing a range of premium, high quality own brands.  The relationships between buyer and seller along food supply chains in general, and particularly in fresh produce, are therefore a critical factor in the success of such a strategy.

The purpose of this research is to explore the nature and scope of good practice in the relationships that Australian supermarkets have with their suppliers in the main commodity areas, and to compare this with previous research conducted in the UK.  Sharing best practice between UK and Australia will benefit both food retailers and food processors in terms of demonstrating how to develop and maintain collaborative relationships, and to identify the added value to both parties.

Full paper available for download at http://www.kent.ac.uk/KBS/images/assets/Final%20report%20findings%20qualitative.doc