Implanting the benefits of buyer‐supplier collaboration in the soft fruit sector

Abstract

PurposeThe paper aims to show how a collaborative approach to demand management can improve customer service to the benefit of both supermarkets and suppliers in sectors characterised by volatile consumer demand.Design/methodology/approachThis insight paper is based on face‐to‐face interviews conducted with key representatives from the two businesses involved, to gain insight into the nature of the problem, the approach adopted and the benefits achieved.FindingsSupermarket buyers have neither the time nor the capability to manage demand effectively at store level, resulting in excessive waste and lost sales, which hurt both the supermarket and their suppliers. Giving access to internal demand management systems to trusted suppliers can have significant impacts on service levels and supply chain performance.Research limitations/implicationsThe insights presented are specific to one supermarket supply chain but the lessons are generic.Practical implicationsThe paper demonstrates the impact which delegation of responsibility for demand management to those with product‐specific expertise can have in supermarket supply chains.Originality/valueThe paper provides insight for supermarket buyers and account managers in commodity sectors to improve the efficiency of their demand management processes through greater collaboration.