Australian food retail supply chain analysis

Abstract

Purpose The Australian retail food sector, comprising mostly small enterprises, is undergoing change as a result of the innovative supply chain approach adopted. This change has implications across the entire food value chain in Australia. The purpose of this paper is to empirically investigate the adoption of supply chain management practices on small and medium enterprises (SMEs) in the Australian food retail industry. Design/methodology/approach The study surveys 120 SME retailers in the food sector. A stepwise multiple regression using SPSS version 14.0 was performed on the data. Findings Statistical results suggest that lean thinking and the quality of information shared can lead to greater efficient supply chain performance. Research limitations/implications The small sample is the main limitation. The findings bear important implications for further research as understanding these dimensions can help to position key changes and industry improvement that will increase revenue and reduce cost to the SMEs in the food retail supply chain. Practical implications Adopting lean thinking and improving information sharing in the supply chain can reduce the cost for SMEs. Social implications This study has unique implications for social sustainability, especially the smaller food enterprises, which are hard pressed to combat the challenges within the food sector. Originality/value Innovative supply chain management helps SMEs to see beyond the silo mentality and helps them to focus on greater value addition in the supply chain.