Supply Chain Collaboration Between Retailers and Manufacturers: Do They Trust Each Other?

This study examines the collaboration in the food supply chain focusing on two chain partners: the retailers and the manufacturers. The authors examine the impact of key factors on collaboration performance including trust and the duration of collaboration. This study compares and contrasts the perceptions by retailers and manufacturers on the role of supply chain management. It illustrates that different food supply chain partners perceive differently the key critical factors which lead to supply chain effectiveness and casts doubts on the viability of current collaboration efforts which aim to achieve mutual benefits across the entire supply chain. It shows that the effectiveness of collaboration, and thus the functioning of the food supply chain, is highly dependent on retailers’ initiative to build and foster trust with their partners. It also depends on manufacturers’ ability to fulfil a complex set of retailers’ requirements including physical distribution management, commitment to the partnership, and effective information management. Managerial implications are discussed particularly for small and medium sized companies and directions for future research are provided