Exploring geographical dispersion in Thailand-based food supply chain (FSC)

Purpose: The purpose of this paper is to explore the key influential factors and their implications on food supply chain (FSC) location decisions from a Thailand-based manufacturer's view. Design/methodology/approach: In total, 21 case studies were conducted with eight Thailand-based food manufacturers. In each case, key influential factors were observed along with their implications on upstream and downstream FSC location decisions. Data were collected through semi-structured interviews and documentations. Data reduction and data display in tables were used to help data analysis of the case studies. Findings: This exploratory research found that, in the food industry, FSC geographical dispersion pattern could be determined by four factors: perishability, value density, economic-political forces, and technological forces. Technological forces were found as an enabler for FSC geographical dispersion whereas the other three factors could be both barriers and enablers. The implications of these four influential factors drive FSC towards four key patterns of FSC geographical dispersion: local supply chain (SC), supply-proximity SC, market-proximity SC, and international SC. Additionally, the strategy of the firm was found to also be an influential factor in determining FSC geographical dispersion. Research limitations/implications: Despite conducting 21 cases, the findings in this research are based on a relatively small sample, given the large size of the industry. More case evidence from a broader range of food product market and supply items, particularly ones that have significantly different patterns of FSC geographical dispersions would have been insightful. The consideration of additional influential factors such as labour movement between developing countries, currency fluctuations and labour costs, would also enrich the framework as well as improve the quality and validity of the research findings. The different strategies employed by the case companies and their implications on FSC location decisions should also be further investigated along with cases outside Thailand, to provide a more comprehensive view of FSC geographical location decisions. Practical implications: This paper provides insights how FSC is geographically located in both supply-side and demand-side from a manufacturing firm's view. The findings can also provide SC managers and researchers a better understanding of their FSCs. Originality/value: This research bridges the existing gap in the literature, explaining the geographical dispersion of SC particularly in the food industry where the characteristics are very specific, by exploring the internationalization ability of Thailand-based FSC and generalizing the key influential factors - perishability (lead time), value density, economic-political forces, market opportunities, and technological advancements. Four key patterns of FSC internationalization emerged from the case studies. © Emerald Group Publishing Limited.

The design of an agent for modelling supply chain network dynamics

A useful insight into managerial decision making can be found from simulation of business systems, but existing work on simulation of supply chain behaviour has largely considered non-competitive chains. Where competitive agents have been examined, they have generally had a simple structure and been used for fundamental examination of stability and equilibria rather than providing practical guidance to managers. In this paper, a new agent for the study of competitive supply chain network dynamics is proposed. The novel features of the agent include the ability to select between competing vendors, distribute orders preferentially among many customers, manage production and inventory, and determine price based on competitive behaviour. The structure of the agent is related to existing business models and sufficient details are provided to allow implementation. The agent is tested to demonstrate that it recreates the main results of the existing modelling and management literature on supply chain dynamics. A brief exploration of competitive dynamics is given to confirm that the proposed agent can respond to competition. The results demonstrate that overall profitability for a supply chain network is maximised when businesses operate collectively. It is possible for an individual business to achieve higher profits by adopting a more competitive stance, but the consequence of this is that the overall profitability of the network is reduced. The agent will be of use for a broad range of studies on the long-run effect of management decisions on their network of suppliers and customers.