Strategies to improve quality and safety and reduce costs along the food supply chain

Summary

The paper aims at contributing to a better understanding of the linkage between supply chain performance and possible performance improvement with respect to food quality and safety. Therefore, the paper addresses the question whether the level of collaborative planning and close supply chain relationships could help improve quality and safety of organic supply chains. The three main weaknesses in the performance of European organic supply chains identified are high logistic and transport costs, the level of input costs and low expenditure on research and product development. While we found a high level of collaboration for information sharing, there is almost no collaboration with respect to joint decisions on optimal order quantity and inventory requirements as well as for all cost relevant issues of the supply chain. As the potential to benefit from economics of scale on a company level is often limited in organic supply chains, we suggest to make use of the cost reducing potential of collaboration.