Journal article

Achieving better strategic fits and higher surpluses for Australian beef value chains by recognising and countering chain failure

Garry Griffith, S Mounter, E Fleming

Animal Production Science | CSIRO Publishing | Published : 2016

Abstract

Strategic fit is the nature of the link between the customer priorities that a value chain hopes to satisfy, and the capabilities that are available in the value chain to implement that objective. Usually, there is a trade-off between value chains that focus on being responsive to customer needs and those that focus on supplying at the lowest possible cost. If demand uncertainty is low, a low-cost value chain is the best strategic fit; conversely if demand uncertainty is high, a responsive value chain is the best fit. A poor fit means lower chain surplus to be shared among the chain participants. We provide an outline of an analytical framework for determining the optimal level of responsive..

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University of Melbourne Researchers