Benchmarking Russian and Finnish food industry supply chains

Abstract

Purpose

The purpose of this paper is to examine the differences between Finnish and Russian, namely Karelian, food industry supply chains. The main objective is to find out the reasons for low productivity in Russian food industry from supply chain management (SCM) point of view.

Design/methodology/approach

Case study method is used to compare the Russian and Finnish food industry supply chains. The comparison is carried out by using SCM scorecard. Furthermore, the comparison is supplemented with the data from non‐structured interviews with Russian food industry company managers. Altogether data from eight food industry companies in the Republic of Karelia, Russia, are gathered and four managers are interviewed. The results of the companies' SCM scorecard analysis are compared to the results of almost 100 Finnish food industry companies.

Findings

The research suggests that based on the SCM scorecard the differences between Finnish and Russian food industry companies' operational methods are modest. The difference in productivity can be rather explained by the differences in operating environment and the level of technology in use. Logistics costs for companies in Russia are estimated to be double compared to Finnish companies. Poor road conditions and underdeveloped 3PL are considered as main reasons of high‐logistics costs.

Research limitations/implications

Considering the relatively low number and small size of the companies interviewed and taken part in the scorecard evaluations, more systematic research in the field is required. In addition, it should be mentioned that all interviewees seemed to be suspicious about intentions of the Finnish interviewer. Two interviewees openly asked if the research was aimed at commercial spying.

Originality/value

Considering the state, size and growth potential of Russian food market, the lack of research in the field is remarkable. This paper aims to bring new valuable information for both practitioners and academics while creating ground for future research in the field.

Citation

Tuominen, T., Kitaygorodskaya, N. and Helo, P. (2009), "Benchmarking Russian and Finnish food industry supply chains", Benchmarking: An International Journal, Vol. 16 No. 3, pp. 415-431. https://doi.org/10.1108/14635770910961416