Articles
ADOPTING STRATEGIC ALLIANCES TO ENHANCE HORTICULTURE SUPPLY CHAIN SUSTAINABILITY AND PROFITABILITY
Article number
1090_10
Pages
61 – 66
Language
English
Abstract
Agribusinesses with the purpose of growing and supplying horticultural crops to the end-user often realize there is power in numbers; in other words, using some form of organizational structure to provide economic gains (acquiring inputs cheaper, increasing distribution efficiencies, combining selling activities). Accomplishing these growth or survival strategies often involves collaborative purchasing and marketing with supply chain partners.
The horticultural industry, among others, is abuzz with sustainability, emphasizing it as the original green industry.
Sustainability encompasses three components: societal or community well-being, economics and profitability, and environmental quality.
Hence, adopting a strategic alliance among industry partners should enhance the horticulture supply chain sustainability and profitability; but does it? The formation of horticultural crops producer strategic alliances, evaluating the supply chain participation within each of the alliances, and conducting a life cycle assessment to determine the carbon neutrality and sustainability of the supply chain was the impetus of this study.
Net results of five transportation alliances established among small- to mid-sized greenhouse (floriculture) and container nurseries (annuals and perennials) in Georgia indicated a 12% average annual total cost savings to participating firms in each alliance, a 23% average annual total miles driven reduction and savings, an 18% average annual vehicle ownership expense savings to the alliance partners, a 31% average annual savings in driver labor and hours of drive time, and a 19% overall (system-wide) reduction in total carbon dioxide equivalent (CO2e) emissions-reducing the carbon footprint, but not reaching carbon neutrality.
The horticultural industry, among others, is abuzz with sustainability, emphasizing it as the original green industry.
Sustainability encompasses three components: societal or community well-being, economics and profitability, and environmental quality.
Hence, adopting a strategic alliance among industry partners should enhance the horticulture supply chain sustainability and profitability; but does it? The formation of horticultural crops producer strategic alliances, evaluating the supply chain participation within each of the alliances, and conducting a life cycle assessment to determine the carbon neutrality and sustainability of the supply chain was the impetus of this study.
Net results of five transportation alliances established among small- to mid-sized greenhouse (floriculture) and container nurseries (annuals and perennials) in Georgia indicated a 12% average annual total cost savings to participating firms in each alliance, a 23% average annual total miles driven reduction and savings, an 18% average annual vehicle ownership expense savings to the alliance partners, a 31% average annual savings in driver labor and hours of drive time, and a 19% overall (system-wide) reduction in total carbon dioxide equivalent (CO2e) emissions-reducing the carbon footprint, but not reaching carbon neutrality.
Authors
F.E. Stegelin
Keywords
agribusiness, cost savings, life cycle assessment, profitability, strategic alliance, supply chain, sustainability
Online Articles (11)