1. Developing a 'best practice' supply chain performance and operational framework for dairy producers : a multiple case study analysis in Egypt
- Author
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Gad, Sama, Shaw, Sarah, and Kumari, Sushma
- Subjects
Business - Abstract
Supply chain management is based on the global concept, where different companies are connected worldwide. Moreover, supply chain performance management is a growing field of study, especially for perishable products. Egyptian dairy producers have suffered a significant drop in their production since 2011, due to the poor quality and quantity of raw milk, changes in governmental regulations, hazard risks, and volatility in consumer taste. This has threatened meeting the increasing market demand for dairy products. Extant literature highlighted the following gaps: limited research assessing the dairy producers' supply chain performance in a detailed view from an operational perspective, and lack of specific performance measures especially in Egypt as a developing country in this context. Therefore, this thesis introduces a best practice performance framework for dairy producers in Egypt to optimise and assess their performance, in terms of sustainable production of safe and secure dairy products to fulfil the Egyptian market demand. The research adopts three theories to explore and understand the research problem. The resource-based view theory is used to identify the operational capabilities and the critical control points within the production. Network theory is used to explore the risks in the wider dairy supply chain and identify solutions to overcome them. Last, the institutional theory is used to understand the pressures faced by dairy producers, all of which will help to develop a best practice performance framework by following the mimetic approach to contrast and compile the performance measures of the top six large Egyptian dairy producers. That is achieved by referring to the Supply Chain Operation Reference (SCOR) model key attributes as a guide. This research utilises a narrative literature review to consolidate the background knowledge on the dairy sector's operations and supply chain risks. Then, classify the different operational and supply chain performance measures and models to provide future research directions based on the research gaps identified. A multiple case-study methodology is adopted in this study. It follows a qualitative research approach across two phases by using the NVivo12 software to conduct a thematic analysis. Firstly, two observations and seventeen exploratory semi structured interviews with key informants within six case studies were conducted to explore the operational capabilities, critical control points and performance measures and the risks affecting large Egyptian dairy producers. Secondly, two focus groups were held with a diversified sample of practitioners, government officials, and suppliers to validate the results of the first phase. The key findings of the research highlighted that those dairy producers performing on a satisfactory level qualify them to adopt the SCOR model to enhance their performance and imitate the dairy producers' practices in developed countries. The following key areas were addressed: 1) identifying the current operational capabilities needed to produce milk products, defining and classifying new critical control points for the production of UHT milk and pasteurised milk which up until now remains vague and not well determined, 2) each producer has designed their performance measures which has left them exposed to vulnerabilities and limits their optimum utilisation of their capabilities and to be able to continually improve. Thus, standardisation of performance measures and sharing of best practice, with a detailed classification for applicability is key for Egyptian dairy producers. A major contribution of this research is the development of an operational and supply chain performance-based best practice framework, based on SCOR, to guide the dairy producers through optimising and enhancing their production of safe and secure dairy products. Further, the research has identified three new SCOR attributes: a) suppliers' improvement and traceability, b) health and safety environment, and c) employees' morale, also seven new critical control points and capabilities. Besides, utilising the qualitative approach to provide in-depth within and cross-case exploration of six large dairy producers' current state. This research also recommends that the government should leverage the small farmers within a milk hub, with a tracking system, to close the gap of raw milk supply shortage to Egypt. That addresses the shortcomings in the extant literature, which will significantly contribute to enhancing the performance and sustainability of the Egyptian dairy industry as a whole, and consequently will benefit the Egyptian economy. That sets the base for future researchers to utilise the proposed best practice for a wider scope of dairy producers with similar characteristics.
- Published
- 2022