Supply chain study in food industry in Bulgaria

Abstract

Purpose

The article examines the supply chain (SC) in a food industry in Bulgaria. The relations between suppliers and the degree of integration of the activities along with the SC will be studied by building forms of partnerships with suppliers and the areas of cooperation they work in. The relevance of the topic is determined by the increasing pressure exerted by the consumers in terms of quality and safety, caused by the scandals with food products, the regulations concerning the traceability along the SC and providing safety and quality. The purpose of the study, in the present paper, is the theoretical and applied aspects of collaboration along the SC and the use of modern information systems and technologies in the food industry in Bulgaria.

Design/methodology/approach

The objectives of the study, in the present paper, are the theoretical and applied aspects of collaboration along the SC and the use of modern information systems and technologies in the food industry in Bulgaria. The subjects of this study are the enterprises of the food industry in Bulgaria. The number of companies surveyed is 93. Small and medium-sized enterprises generate 48.7% of the turnover in the industry and 63% of the employment in the sector. A research survey with structured questionnaire was conducted in the period 2018–2019. The interrelations in the SC are underdeveloped and there is a low degree of integration between the participants in the food industry in Bulgaria. The implementation of information and communications technology (ICT) and blockchains in the SC in the food industry in Bulgaria is at a low level.

Findings

The subjects of this study are the enterprises of the food industry in Bulgaria. The number of companies surveyed is 93. Small and medium-sized enterprises generate 48.7% of the turnover in the industry and 63% of the employment in the sector. The sectors which are traditionally included in the food industry are as follows: flour milling, milk processing, meat processing, canning industry and production of dried and canned fruit, vegetables and seeds, fishery, production of sugar and confectionery, chocolate and desserts and production of spices. The present research study does not focus on production of drinks, mineral water bottles and production of alcoholic drinks, as well as production of tea and coffee, bread and bakery products. A research survey with structured questionnaire was conducted in the period 2018–2019. The questions included in the questionnaire helped to study general indicators for the evaluation of the degree of cooperation and the implementation of modern ICT in organizations in the food industry. The first part of the questionnaire included questions related to the general information about organizations, which determines the form of ownership, the existence of foreign participation in the enterprise, the number of settlements where the activity is carried out and geographic distribution of sales in the country and abroad. These questions are important to frame a general characteristic of the studied enterprises.

Research limitations/implications

The study had few limitations, which in turn suggest avenues for further research. This study does not include the production of beverages, mineral water bottles and the production of alcoholic beverages as well as tea and coffee production. With regard to the subject of the study, the article focuses mainly on relations between suppliers and the degree of integration of the activities along the SC, which will be studied by building forms of partnerships with suppliers and the areas of cooperation they work in, while remaining outside the scope of the study themes and challenges in making SCs environmentally sustainable. Although a large amount of data were analyzed, there exists an opportunity to widen this study significantly. The possibilities of omnichannels along the SC in the food chain will be explored first as well as the possibilities for building an omnichannel strategy in the food supply chain.

Practical implications

This study provides insights to manufacturers, retailers, wholesalers and managers of the food industry for supply chain management (SCM) and for connections and cooperation with suppliers and partners. The research study provides clarity about the degree of integration in the management of SC and the opportunities for development of the cooperation between the SC participants.

Originality/value

This study reveals for the first time the SC in the food industry in Bulgaria and provides directions for development. This study shows the degree of SCM integration as well as the opportunities for developing cooperation between the actors in the chain.

Citation

Vodenicharova, M.S. (2020), "Supply chain study in food industry in Bulgaria", International Journal of Retail & Distribution Management, Vol. 48 No. 9, pp. 921-938. https://doi.org/10.1108/IJRDM-03-2019-0080