Supply Chain Collaboration Between Retailers and Manufacturers: Do They Trust Each Other?

This study examines the collaboration in the food supply chain focusing

on two chain partners: the retailers and the manufacturers. The authors

examine the impact of key factors on collaboration performance

including trust and the duration of collaboration. This study compares

and contrasts the perceptions by retailers and manufacturers on the role

of supply chain management. It illustrates that different food supply

chain partners perceive differently the key critical factors which lead to

supply chain effectiveness and casts doubts on the viability of current

collaboration efforts which aim to achieve mutual benefits across the

entire supply chain. It shows that the effectiveness of collaboration, and

thus the functioning of the food supply chain, is highly dependent on

retailers’ initiative to build and foster trust with their partners. It also

depends on manufacturers’ ability to fulfil a complex set of retailers’

requirements including physical distribution management, commitment

to the partnership, and effective information management. Managerial

implications are discussed particularly for small and medium sized

companies and directions for future research are provided.