Business-to-business e-commerce: an innovative tool for food chain management

Vlachos, Ilias (2002) Business-to-business e-commerce: an innovative tool for food chain management. In: 1st Pan-Hellenic Conference of Hellenic Association of Information and Communication Technology in Agriculture, Food and Environment, 6 June 2002, Crete.

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Abstract

A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished goods, and the distribution of the final goods to customers.
The management of food chains, particular of fresh produce chains, need to achieve two goals: (a) create efficient physical flows of products by minimising logistics cost, and reducing lead times (b) run an effective value chain by safeguarding mutual gains for all members of the chain, building trust between suppliers and buyers and at the same time maintaining quality for end consumers.
Food chain management was always at a loss for tools to leveraging its efforts on achieving value for chain members and eventually the end-consumers. Although food industry, both in USA and Europe, has experimented with various alternative solutions to this multimillion chain management, yet more can be expected.
Business-to-business e-commerce (B2B) appears to be an innovative tool that meets the high standards of the industry and the potential growth. This study examines the uses of B2B in food industry to give chain management solutions. It reviews the uses of B2B and, in particular, highlights the applications of B2B by small agribusiness in order to forge their ring in food chains. It builds upon communication in supply chain. It describes contracting as an example how B2B e-commerce can advance supply activities and reports the development of a B2B olive oil supply chain application. It concludes that B2B can be a strong leverage for food chain management to achieve its goals and produce value for the members of the chain and the end consumers.

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