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Commodity-Procurement Strategies of Food Companies: A Case Study

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  • Jones, Kraig M.
  • Raper, Kellie Curry
  • Whipple, Judith M.
  • Mollenkopf, Diane A.
  • Peterson, H. Christopher

Abstract

This research evaluates the main characteristics considered in commodity-procurement decisions made by food manufacturers. Procurement characteristics are examined and a framework is developed which classifies procurement characteristics into three categories: product constraints, company constraints, and service constraints. A case-study approach is used to determine the importance of various procurement characteristics and their impact on the buyer’s procurement-mechanism choice. The research also examines the strategic role that a commodity-procurement department plays within a corporation and how that role relates to the three commodity-procurement decision classifications.

Suggested Citation

  • Jones, Kraig M. & Raper, Kellie Curry & Whipple, Judith M. & Mollenkopf, Diane A. & Peterson, H. Christopher, 2007. "Commodity-Procurement Strategies of Food Companies: A Case Study," Journal of Food Distribution Research, Food Distribution Research Society, vol. 38(3), pages 1-17.
    • Handle: RePEc:ags:jlofdr:46586
    DOI: 10.22004/ag.econ.46586
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    References listed on IDEAS

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    1. Seifert, Ralf W. & Thonemann, Ulrich W. & Hausman, Warren H., 2004. "Optimal procurement strategies for online spot markets," European Journal of Operational Research, Elsevier, vol. 152(3), pages 781-799, February.
    2. Sterns, James A. & Schweikhardt, David B. & Peterson, H. Christopher, 1998. "Using Case Studies As An Approach For Conducting Agribusiness Research," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 1(3), pages 1-17.
    3. Marvin L. Hayenga, 1979. "Risk Management in Imperfect Markets: Commodity Procurement Strategy in the Food Manufacturing Sector," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(2), pages 351-357.
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    Cited by:

    1. Donkor, Emmanuel & Mbeche, Robert & Mithöfer, Dagmar, 2021. "Purchasing Behaviour and Relational Contract Decisions of Retailers in Grasshopper Value Chains in Uganda," 2021 Conference, August 17-31, 2021, Virtual 315105, International Association of Agricultural Economists.
    2. Donkor, Emmanuel & Mbeche, Robert & Mithöfer, Dagmar, 2023. "Strategic business decisions of retailers in the edible insect value chain in Uganda," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 26(2), January.

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