Supply Chain Management Implementation in the Spanish Grocery Sector: An Exploratory Study

Abstract

This paper explores the integration process that firms follow to implement Supply Chain Management (SCM) and the main barriers and benefits related to this strategy. This study has been inspired in the SCM literature, especially in the logistics integration model by Stevens [1]. Due to the exploratory nature of this paper and the need to obtain an in depth knowledge of the SCM development in the Spanish grocery sector, we used the case study methodology. A multiple case study analysis based on interviews with leading manufacturers and retailers was conducted. The results of this analysis suggest that firms seem to follow the integration process proposed by Stevens, integrating internally first, and then, extending this integration to other supply chain members. The cases also show that Spanish manufacturers, in general, seem to have a higher level of SCM development than Spanish retailers. Regarding the benefits that SCM can bring, most of the companies identify the general objectives of cost and stock reductions and service improvements. However, with respect to the barriers found in its implementation, retailers and manufacturers are not coincident: manufacturers seem to see more barriers with respect to aspects related to the other party, such as distrust and a lack of culture of sharing information, while retailers find as main barriers the need of a know-how, the company culture and the history and habits.