Supplier choice criteria and the security aware food purchasing manager

Abstract

Purpose – The purpose of this paper is to explore the differences in preferred supplier choice criteria between food purchasing agents who focus on supplier security and those that do not. Specifically, this research determines the relationship between purchasing agents’ supplier security preferences and their preferences for product quality, delivery reliability, price, and supplier location. The influence of international sourcing on demand for increased supplier security is also explored. Design/methodology/approach – Choice-based conjoint analysis with hierarchical Bayes (HB) estimation and t-tests are used to assess and compare the utility food purchasing managers derive from different supplier attributes. Findings – Purchasing managers that place a higher priority on security when choosing suppliers were willing to pay suppliers a higher price and receive lower levels of delivery reliability in return for higher security but placed less emphasis on suppliers’ product quality. Firms that source internationally do not have a significantly greater preference for advanced supplier security. However, purchasing managers that value supplier security were more likely to source internationally, potentially indicating that security allows for global sourcing by mitigating the increased vulnerability inherent to sourcing abroad. Research limitations/implications – This research was limited by its focus on the food industry and a relatively small sample size. Practical implications – This work illustrated that food purchasing managers can be segmented by the emphasis they place on security. Food industry managers will find results useful in formulating their future service offerings with respect to security and other supplier choice criteria. Originality/value – This is one of few works investigating security as a supplier choice criterion and utilizing HB estimation of choice-based conjoint data.