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Supply chain management: the case of a UK baker preserving the identity of Canadian milling wheat

Julie Kennett (Julie Kennett is Rural Development Analyst, Prairie Farm Rehabilitation Administration, Calgory, Alberta, Canada)
Murray Fulton (Murray Fulton, Centre for the Study of Co‐operatives, Department of Agricultural Economics, University of Saskatchewan, Saskatoon, Sackatchewan, Canada)
Pauline Molder (Pauline Molder, Co‐operative Education Program in Agriculture, University of Saskatchewan, Saskatoon, Saskatchewan, Canada)
Harvey Brooks (Harvey Brooks, Department of Rural Economy, University of Alberta, Edmonton, Alberta, Canada)

Supply Chain Management

ISSN: 1359-8546

Article publication date: 1 September 1998

Abstract

This paper examines bread wheat quality and its effect on vertical co‐ordination in the wheat supply chain. Wheat quality is defined by many different characteristics, which poses limitations on the effectiveness of industry grading schemes in meeting the quality needs of end‐users. Consequently, individual processors may have an incentive to segregate wheat based on their own quality specifications. The costs and benefits of wheat segregation are analysed using a simple economic model, and illustrated with a case study of supply chain management taken from the UK bread industry. Warburtons Ltd procures bread wheat varieties with specific intrinsic quality attributes from Canada using identity preserved supply contracts. The paper concludes that the benefits of wheat quality control will encourage millers and bakers to develop closer vertical linkages with wheat suppliers in the future.

Keywords

Citation

Kennett, J., Fulton, M., Molder, P. and Brooks, H. (1998), "Supply chain management: the case of a UK baker preserving the identity of Canadian milling wheat", Supply Chain Management, Vol. 3 No. 3, pp. 157-166. https://doi.org/10.1108/13598549810230912

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MCB UP Ltd

Copyright © 1998, MCB UP Limited