Published In
International Review of Retail, Distribution and Consumer Research
Document Type
Post-Print
Publication Date
2015
Subjects
Business logistics, Industrial procurement, Competition, Retail trade -- Purchasing -- Management
Abstract
Retail purchasing groups consist of small, independent, specialised stores that join together and collaborate on purchasing and other areas. In comparison to large-scale corporate retail chains, often labelled mega-retailers, retail purchasing groups are based on collaborative external integration between a central unit and the independent, local dealers. The overall purpose of this research is to explore the specific characteristics that underscore a retail purchasing group. The paper has two research questions: (1) What are the strengths and weaknesses of a supply chain structure based on external integration? and (2) In what areas are the purchasing groups' ownership structure particularly advantageous in comparison to the mega-retailers' vertically integrated organisations? This exploratory research is empirically grounded in a case study of two Swedish purchasing groups. The paper argues that under certain market conditions, a decentralised supply chain, which relies on collaborative external relationships, can provide a competitive alternative to a more traditional centralised structure. The paper elaborate three areas where the structure is particularly advantageous: (1) service-based competition in an industry otherwise focused on cost leadership, (2) in-depth understanding of local conditions and presence and (3) the ability to incorporate entrepreneurial strengths and innovations in the supply chain.
DOI
10.1080/09593969.2014.982679
Persistent Identifier
https://archives.pdx.edu/ds/psu/26541
Citation Details
Sandberg, E., & Mena, C. (2015). Exploring strategic strengths and weaknesses of retail purchasing groups. The international review of retail, distribution and consumer research, 25(3), 276-297.
Included in
Business Administration, Management, and Operations Commons, Operations and Supply Chain Management Commons
Description
This is the Author Accepted Manuscript of an article published in: Erik Sandberg and Carlos Mena, Exploring strategic strengths and weaknesses of retail purchasing groups, 2015, International Review of Retail Distribution & Consumer Research, (25), 3, 276-297. International Review of Retail Distribution & Consumer Research is available online at informaworld™: http://dx.doi.org/10.1080/09593969.2014.982679
Copyright: Taylor & Francis (Routledge)
Note: At the time of writing, Carlos Mena was affiliated with Cranfield University.