Australian beef supply chain integration: Case studies of the two largest Australian supermarkets

This paper examines the supply chain integration activities pursued
by the two largest Australian supermarkets, Woolworths and Coles. Case study
methods were adopted to analyse their beef supply chains. The research found
that vertical integration enables retailers to have direct responsibility for
managing the distribution processes. Supply chain innovation practices
including strategic alliances, information sharing, information quality, trust and
commitment contribute to the vertical integration. This study provides one of
the few analyses of Australian food supply chains. The work complements
other studies in the USA and UK, and reveals a different set of best practice
principles in Australia. As the lean principle has been widely adopted in the
Australian red meat industry, supplier relationships have a high level of buyer
dependency. Forming strategic relationship among supply chain partners is
critical for containing cost and maintaining operational effectiveness in the
Australian beef supply chain.