Supply Chain in Small Market Food Industry: Increasing Competitive Advantage

Abstract

The research presented in this paper aims to determine the practical implication to increase competitive advantage for food companies in a small market. The literature review was made aiming to analyze the research of the authors who considered the food industry. It was founded that researches analyzed supply chain models for competitive advantage increases, but many of them are created for large markets. In order to determine the main supply chain problems in a smaller market a specialist interviews have been used for data collection. It was determined that many problems appear in the supply chain, but the largest number of problems is related with partial cargo transportation - export and import are transported in small quantities, what causes an increase in cost. The main technology that could decrease transport cost is several temperature zone transports with flexible partitions or consolidation warehouses. The particular method usage was analyzed by doing a case study of a refrigerator manufacturing company and temperature controlled logistic solution provider. It was determined that improving the temperature control transportation or developing consolidation warehouses would decrease the cost of import and increase competitive advantage. Moreover, this strategy could be implemented in a food industry of the small market.
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