Identifying key success factors in supply chain management for increasing the competitive advantages of Vietnamese coffee

Abstract

Purpose The purpose of this paper is to identify the leverage points in the Vietnamese coffee supply chain (SC) that would be used for increasing competitive advantages of the product. Design/methodology/approach A sequential approach by combining two established modelling techniques (causal loop diagram and Bayesian belief networks) was applied to identify the leverage points in the Vietnamese coffee SC for increasing the competitive advantages of the product. Data for the study were collected from a series of workshops and in-depth interviews with numerous relevant stakeholders of the coffee industry in the central highland of Vietnam. Findings The systems’ archetypes were developed and a sensitivity analysis was conducted to identify potential factors that can increase the competitive advantages of coffee production. The results indicate that higher investment in all elements of the coffee SC will lead to an enhanced competitive advantage. Originality/value Supply chain management (SCM) has become a potentially valuable method for improving competitive advantages, as competition is no longer only between organizations but also among SCs. Therefore, this research focus on enhancing the competitive advantages of production via SCM.

Prioritize the key parameters of Vietnamese coffee industries for sustainability

“…During the past years, the prolonged drought has occurred, while the irrigation techniques of farmers follow long-standing habits. Consequently, the use of waste and inefficient water leads to difficulties in sustainable production goals (Haggar and Schepp, 2012; Nguyen and Sarker, 2018; Nguyen et al , 2017a, b; Tatarski, 2017; Utting, 2009).…”

“…Meanwhile, in another aspect, Nguyen et al (2017a) have approached the qualitative method when adopted the Casual Loop Modeling to clarify which parameter has a significant impact on the Vietnamese coffee supply chain. In the year 2017, in a study attempting to increase the competitiveness for Vietnamese coffee products, Nguyen et al (2017b) have trying to combine one more modeling technique is that Bayesian belief networks into the Vietnamese coffee supply chain.…”

“…These studies have described some of the key factors by considering these four parameters together (Nguyen and Sarker, 2018; Nguyen et al , 2015; Nguyen et al , 2017a, b). These parameters create the individual nature toward the cost, quality flexibility and infrastructure of the coffee industry.…”

“…These parameters create the individual nature toward the cost, quality flexibility and infrastructure of the coffee industry. Among these parameters, Nguyen et al (2017b) focused on the coffee supply chain cost which can influence the relationship between coffee export companies and final customer where coffee export companies come to know the actual demands because customer satisfaction depends on the selling price of the coffee commodity. Meanwhile, regarding the study of Nguyen and Sarker (2018), the main factors affecting the supply chain of Vietnamese coffee were identified like product quality flexibility and responsiveness (Nguyen and Sarker, 2018).…”

“…However, management capacity is not sufficient, backward technology and incomplete supply chain are the specific limitations of emerging economies while participating in the global supply chain. Although approaching different aspects, Nguyen and Sarker (2018) and Nguyen et al (2015, 2017a, b) also pointed out that the lack of interest of coffee producers in the infrastructure along with the government support that will significantly affect the overall coffee SCM. Thus, it is clear that comprehensive solutions for a sustainable approach will help to make profits in a competitive advantage for Vietnamese coffee industry (Nguyen and Sarker, 2018; Nguyen et al , 2015, 2017a, b).…”