This paper evaluates the relationship and the supply chain between a UK organization importing food and a Greek organization exporting food. The economic risks, issues of sustainability, environmental problems and scarcity of raw materials will be discussed regarding the concept of a procurement management network. The main question is how such a network can be managed on a global scale, while looking at possible risks and case studies dealing with specific parts of the subject.
The paper is structured linearly to give a clear representation of the important aspects of procurement and supplier relationship management (SRM). The important aspects will be assessed individually with a focus on how a sustainable relationship can be built considering that the economic situation could change rapidly in a cross-border relation.
Firstly, it is essential to look at the SRM as a basis of the process of procurement. This is followed by an assessment of how the authorities should be involved and how a contractual concept can support a supply chain relation network. Furthermore, possible economic risks will be taken into consideration. These economic risks are in juxtaposition to a potential scarcity of raw materials and the difficulties that international trade has to deal with in order to show responsibility for an increasing environmental threat. Finally, it will be discussed, how sustainability can be ensured. All of those various aspects of procurement management will be supported by case studies.
Table of Contents
I. Introduction
II. Procurement Management
a. Supplier Relationship Management
b. Authorities
c. Contract
d. Economical Risk
e. Scarcity of Raw Materials
f. Environmental Risk
g. Sustainability
III. Conclusion
Research Objectives and Themes
This paper examines the strategic management of international supply chains, specifically focusing on the procurement relationship between UK food importers and Greek exporters. The research investigates how companies can maintain operational continuity and sustainability despite cross-border complexities and economic volatility.
- Strategic supplier relationship management (SRM)
- Contractual frameworks and governmental roles
- Economic risk mitigation in international trade
- Strategies for managing raw material scarcity
- Sustainability initiatives and the impact of green marketing
Excerpt from the Book
d. Economical Risk
An economic risk, especially in connection with the supply chain, can refer to the fact that a delayed, prevented or not as defined performance of one of the supply chain actors can result in substantial financial losses (Asbjørnslett 2009, p. 21). Cross-border relations involve a higher risk as stated by Jaradt and Rehman: (2017, p.814) “Entering into any trade contract has its risks, but those risks are always greater when one party is located in another country.” For Greece to withdraw from the EU is a big risk, the Supply Chain agreements would have to be re-evaluated, the contracts as well as the value of the currency would change (Jaradt & Rehman 2017, p.817). And if the government introduces capital controls that freeze or regulate funds, there is a risk that companies will no longer be able to dispose of their funds and therefore their monetary resources. (Jaradt & Rehman 2017, p.817)
The current situation in the UK regarding the Brexit is also a risk that needs to be considered: Uk has been importing food for 50 years, this works through the 750 trade agreements of the EU. The imported goods run through the port of Rotterdam, the safety regulations and inspections are carried out on site and under the control of the European Food Safety Authority and its complex and proven system. Nobody knows how the situation will be approached after the exit of the EU. Not even the authorities know how the risk is to be classified and what impact it will have on the costs and food safety (Lang & McKee 2018, p. e608).
Summary of Chapters
I. Introduction: This chapter outlines the importance of procurement and supplier relationships in the international food trade between Greece and England, establishing the research scope.
II. Procurement Management: This section details the strategic components of managing supply chains, including SRM, legal contracts, economic and environmental risk factors, and sustainability.
III. Conclusion: This chapter synthesizes the findings, highlighting how robust relationship management is crucial for mitigating risks in complex, cross-border supply networks.
Keywords
Supply Chain Management, Procurement, Supplier Relationship Management, Cross-border trade, Economic Risk, Sustainability, Green Marketing, ISO 14001, Raw Materials, Food Industry, Risk Mitigation, Strategic Alliance, Contractual Agreements, Brexit, Quality Control
Frequently Asked Questions
What is the fundamental focus of this paper?
The paper explores the challenges and strategic requirements for managing international supply chains, focusing specifically on the trade relationship between UK and Greek food organizations.
What are the central themes discussed in this work?
Key themes include supplier relationship management, the mitigation of economic and environmental risks, strategies for handling resource scarcity, and the implementation of sustainability standards.
What is the primary research objective?
The objective is to understand how global supply chain networks can be managed effectively across borders to maintain quality and stability while facing significant geopolitical and economic risks.
Which methodology is employed in this research?
The author utilizes a qualitative analytical approach, supporting the theoretical framework with various industry case studies to illustrate real-world supply chain disruptions and successes.
What topics are covered in the main body?
The main body examines SRM, the role of government authorities, contract formulation, economic risks like Brexit, environmental concerns such as pollution, and the complexities of sustainability certification.
Which keywords characterize the work?
The work is defined by concepts such as Procurement, SRM, Supply Chain risk, cross-border trade, sustainability, and resource management.
How does the author view the effectiveness of ISO 14001?
The author notes that while intended to drive sustainability, many companies treat the certification as an "alibi" or symbolic act, which can actually lead to increased bureaucracy without performance gains.
What role does the "Buffering and Bridging" strategy play?
These strategies are presented as essential tools to minimize dependency and mitigate supply chain disruptions caused by temporary shortages or failure of individual actors.
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- Patrick Wiget (Autor:in), 2019, Supply Chain Network Management of a Cross-Border Relation. Project Risk and Procurement Management, München, GRIN Verlag, https://www.grin.com/document/976493
