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Changes In Retail Food Delivery: Signals For Producers, Processors And Distributors

Author

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  • Kinsey, Jean D.
  • Senauer, Benjamin
  • King, Robert P.
  • Phumpiu, Paul F.

Abstract

This paper contains two chapters related to changes in retail food delivery and sales. The first discusses trends in consumer demographics and lifestyles and how these continue to drive changes in the way food is prepared and delivered to consumers. Retail stores are responding with new formats: providing more ready to eat foods; more convenient store layouts; lower prices and better service in niche markets across the country. Their demands send signals up the food chain to processors and producers that alter their production and inventory decisions. Electronic information technology speeds these changes and leads to more efficient operation with, allegedly, better service for consumers. The second chapter discusses how advances in information technology affect not only the internal business operations in food firms throughout the food supply chain but also how the product flows and how businesses link their processes together. The reengineering of the food supply chain by way of an industry-wide initiative called "efficient consumer response" (ECR) is explained and analyzed for its motivations and implementation, thus far. The many facets of ECR such as product replenishment and promotion are discussed. Lessons learned from ECR include that it is possible to accommodate the coexistence of firms of various sizes and types, and that the role of trade associations in facilitating industry-wide changes is vital and impressive.

Suggested Citation

  • Kinsey, Jean D. & Senauer, Benjamin & King, Robert P. & Phumpiu, Paul F., 1996. "Changes In Retail Food Delivery: Signals For Producers, Processors And Distributors," Working Papers 14352, University of Minnesota, The Food Industry Center.
    • Handle: RePEc:ags:umrfwp:14352
    DOI: 10.22004/ag.econ.14352
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    References listed on IDEAS

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    1. Manchester, Alden & Clauson, Annette, 1995. "1994 Spending for Food Away From Home Outpaces Food at Home," Food Review/ National Food Review, United States Department of Agriculture, Economic Research Service, vol. 18(2), May.
    2. Jeffrey M. Thomas & John M. Staatz & Thomas R. Pierson, 1995. "Analysis of grocery buying and selling practices among manufacturers and distributors: Implications for industry structure and performance," Agribusiness, John Wiley & Sons, Ltd., vol. 11(6), pages 537-551.
    3. Boehlje, Michael, 1996. "Industrialization of Agriculture: What are the Implications?," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 11(1), pages 1-4.
    4. Alan Barkema, 1993. "Reaching Consumers in the Twenty-First Century: The Short Way Around the Barn," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(5), pages 1126-1131.
    5. Putnam, Judith Jones & Allshouse, Jane E., 1996. "Food Consumption, Prices, and Expenditures, 1996: Annual Data, 1970-94," Statistical Bulletin 154896, United States Department of Agriculture, Economic Research Service.
    6. Urban, Thomas N., 1991. "Agricultural Industrialization: It's Inevitable," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 6(4), pages 1-3.
    7. Price, Charlene C., 1995. "Sales of Food Away From Home Expanding," Food Review/ National Food Review, United States Department of Agriculture, Economic Research Service, vol. 18(2), May.
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    Citations

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    Cited by:

    1. Budd, John W. & McCall, Brian P., 1999. "Decomposing Changes In Retail Food Wage Distributions, 1983-1998: A Semi-Parametric Analysis," Working Papers 14327, University of Minnesota, The Food Industry Center.
    2. Griffith, G.R., 2000. "Competition in the Food Marketing Chain," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 171911, Australian Agricultural and Resource Economics Society.
    3. Alan Barkema & Mark Drabenstott & Nancy Novack, 2001. "The new U.S. meat industry," Economic Review, Federal Reserve Bank of Kansas City, vol. 86(Q II), pages 33-56.
    4. Mangaraj, Sandeep & Senauer, Benjamin, 2001. "A Segmentation Analysis Of U.S. Grocery Store Shoppers," Working Papers 14328, University of Minnesota, The Food Industry Center.
    5. Griffith, Garry R., 2000. "Competition in the food marketing chain," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(3), pages 1-35.
    6. John W. Budd & Brian P. McCall, 2001. "The Grocery Stores Wage Distribution: A Semi-Parametric Analysis of the Role of Retailing and Labor Market Institutions," ILR Review, Cornell University, ILR School, vol. 54(2A), pages 484-501, March.
    7. Jean-Marie Codron & François D'Hauteville, 1998. "Une approche conceptuelle des relations fournisseurs-distributeurs [Cas du vin, des fruits de contre saison et des produits ultra frais laitiers]," Économie rurale, Programme National Persée, vol. 245(1), pages 16-23.
    8. Esbjerg, Lars, 1999. "Consequences of information technology usage on retailer-supplier relations," MAPP Working Papers 68, University of Aarhus, Aarhus School of Business, The MAPP Centre.
    9. McBryde, Gary L., 2000. "Measuring Strategic Intent In The South Texas Food Marketing Industry," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 18(2), pages 1-17.
    10. Bong-Sup Shin, 2008. "Review on Market Power of the Australian Agricultural Chain," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 11(1), pages 191-204, March.
    11. Holmes, Thomas J, 2001. "Bar Codes Lead to Frequent Deliveries and Superstores," RAND Journal of Economics, The RAND Corporation, vol. 32(4), pages 708-725, Winter.
    12. Davies, Terry & Konisky, David M., 2000. "Environmental Implications of the Foodservice and Food Retail Industries," Discussion Papers 10761, Resources for the Future.
    13. Kinsey, Jean D. & Wolfson, Paul J. & Katsaras, Nikolaos & Senauer, Benjamin, 2001. "Data Mining: A Segmentation Analysis Of U.S. Grocery Shoppers," Working Papers 14335, University of Minnesota, The Food Industry Center.

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    Agribusiness; Industrial Organization;

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