Exploring geographical dispersion in Thailand‐based food supply chain (FSC)

Abstract

Purpose -The purpose of this paper is to explore the key influential factors and their implications on food supply chain (FSC) location decisions from a Thailand-based manufacturer's view. Design/methodology/approach -In total, 21 case studies were conducted with eight Thailand-based food manufacturers. In each case, key influential factors were observed along with their implications on upstream and downstream FSC location decisions. Data were collected through semi-structured interviews and documentations. Data reduction and data display in tables were used to help data analysis of the case studies.Findings -This exploratory research found that, in the food industry, FSC geographical dispersion pattern could be determined by four factors: perishability, value density, economic-political forces, and technological forces. Technological forces were found as an enabler for FSC geographical dispersion whereas the other three factors could be both barriers and enablers. The implications of these four influential factors drive FSC towards four key patterns of FSC geographical dispersion: local supply chain (SC), supply-proximity SC, market-proximity SC, and international SC. Additionally, the strategy of the firm was found to also be an influential factor in determining FSC geographical dispersion. Research limitations/implications -Despite conducting 21 cases, the findings in this research are based on a relatively small sample, given the large size of the industry. More case evidence from a broader range of food product market and supply items, particularly ones that have significantly different patterns of FSC geographical dispersions would have been insightful. The consideration of additional influential factors such as labour movement between developing countries, currency fluctuations and labour costs, would also enrich the framework as well as improve the quality and validity of the research findings. The different strategies employed by the case companies and their implications on FSC location decisions should also be further investigated along with cases outside Thailand, to provide a more comprehensive view of FSC geographical location decisions. Practical implications -This paper provides insights how FSC is geographically located in both supply-side and demand-side from a manufacturing firm's view. The findings can also provide SC managers and researchers a better understanding of their FSCs. Originality/value -This research bridges the existing gap in the literature, explaining the geographical dispersion of SC particularly in the food industry where the characteristics are very specific, by exploring the internationalization ability of Thailand-based FSC and generalizing the key influential factorsperishability (lead time), value density, economic-political forces, market opportunities, and technological advancements. Four key patterns of FSC internationalization emerged from the case studies.

Structural model of perishable food supply chain quality (PFSCQ) to improve sustainable organizational performance

“…Subsequently, output increases and standardization of products is higher (Mora and Menozzi, 2005;Siddh et al, 2015). Moreover, the use of preventive maintenance makes food processing process smoothly by improving the reliability of the process and controlling disruption in production (Kittipanya-ngam et al, 2011). Adeyeye (2017) reviewed scientific involvements that are essential to decrease the challenges to food security in Africa during food processing and suitable storage technologies.…”

Dealing with quality uncertainty in the supply chains of perishable agricultural produce: consideration of buyer-supplier geographical distance and the choice of procurement channel

“…The variation in quality is more pronounced in perishable produce transactions, due to their biological makeup as they have soft tissue and high level of water content (Kanani, 2016). In this regard, they are highly vulnerable damages and declining in quality due to poor harvesting and handling practices (Blackburn and Scudder, 2009), long transportation lead times, storage (Kittipanya-ngam et al, 2011), processing delays and changes of temperature conditions (Kanani and Buvik, 2018a), Although several studies have described the influence of perishability on product quality uncertainty (Hobbs and Young, 2000;Clements et al, 2008;Abebe et al, 2013), the empirical evidence for this relationship between the degree of product perishability and product quality uncertainty is largely absent. Therefore, this study intended to fill this knowledge gap by testing the following hypothesis.…”

“…Perishability nature of produce tends to place specific requirements on food supply chains, such as dispersion limit among the supply chain actors (Kittipanya-ngam et al, 2011). This means that as buyer-supplier geographical distance increases, the risks of declining in produce quality and spoilage increases, while the ability of the buyer to monitor transaction and ascertain supplier opportunistic behaviour decreases (Deng et al, 2016;Bönte, 2008;Handley and Benton, 2013).…”

Co‐Location Synergies: Specialised Versus Diverse Logistics Concentration Areas

“…Important value drivers in fresh produce supply chains include perishability, value density, and demand uncertainty (Kittipanya‐Ngam et al ). Due to its relative speed and flexibility, the truck transport mode dominates this sector, because product quality and freshness are key (Van Klink and Visser ).…”