However, these approaches are not often synchronized with supply chain strategies. Practical implications The paper provides guidance for supply chain managers dealing with critical suppliers located in conflict environments. The paper recommends that supply chain managers fine tune their strategies in coordination with governmental actions in foreign politics, dependence reduction and crisis management.
This may be achieved by closer communication with governments and potentially through the creation of a pan-European sector alliance. However, none of these studies report on exogenous security threats and disruption strategies of oil and gas supply chains. During these meetings, in addition to sharing sales information, they share information regarding prices, sales campaign performance, knowledge, and experience.
The sales and logistics areas receive the business plan only after it is approved. The results obtained indicate the need for changes in practices related to information sharing, as reported by Stank et al.
It was found that for most of the agents investigated, information sharing occurs in dyadic relationships, particularly between wholesalers and manufacturers. Furthermore, information sharing between wholesalers and retailers occurs only when the retailer is part of a supermarket chain whose purchasing center belongs to the wholesaler.
Without exchange of data, operational plans, and financial information the supply chain agents cannot fully reap the benefits of collaborating with each other Min et al. It was found that the trade marketing area in the wholesalers 1 and 3 develops the business plan together with the purchasing area; the plan is then submitted for the approval of their board of directors before being introduced to the manufacturers. There is no internal interactions for the development of the business plan in the wholesalers 2 and 4; the plan is developed by the marketing area, which submits it for the approval of the board of directors.
In the manufacturers, analyses are conducted to find out the sales channels, regions, and business segments with higher rate of growth in terms of the categories and sub-categories, and the goals for the upcoming year are set for each sales channel; they may or may not prioritize the wholesaler. Therefore, the manufacturer sales manager receives the goals for each client, as well as the company's initiatives and investments in order to ensure they are accomplished.
In the intercompany interactions, wholesalers 1 and 3 also stood out in terms of planning and executing joint actions with the manufacturers. The wholesaler 1 selected 24 manufacturers with which they conducted a significant amount of business to develop a joint annual business plan. In addition, it defined 20 categories containing major sales areas to prioritize the development of business plans with the manufacturers within these categories.
A wholesaler senior executive said: Where I sell toothpaste, I can sell toothbrush, dental floss, and mouthwash because they are part of a solution, of a category. This change in operation is a cultural change in wholesale. This means a drastic change in the paradigms for the sales teams. Are you used to selling only powder laundry detergent or tomato paste? No, I will start supplying a whole category. As for the other manufacturers, the purchase orders from the wholesaler 1 are automatically processed by the company; there is no relationship with the wholesaler buyer.
During the development of the business plan, the companies discuss the sales campaign actions, the need for investments, and return on investment. The objective of the business plan is to increase the sales volume and the number of stores that sell the products. Therefore, the wholesaler conducts a business review in October to analyze the categories and regions where it stood out and those that need improvement.
The companies gather together and the manufacturer presents its strategic objectives. Next, the categories, regions, and the trade marketing plan are aligned to support the plan. The wholesaler 3 develops an annual business plan with 10 manufacturers and assesses them annually to determine who will remain partners. In November, after setting the budget for the coming year, the trade marketing and purchasing areas of the wholesaler 3 start formulating the proposals to be presented to the manufacturers.
After discussing the business plan with the manufacturers and aligning their interests, the companies come up with a single plan and start implementing it. The plan outlines the operational areas, the products that will be developed, and the goals that are set by state and product category. The respondents of the manufacturing companies pointed out that the actions carried out by the wholesaler 1 are more structured, but the company does not offer them flexibility to change these actions or to propose new ones.
On the other hand, this wholesaler allows greater flexibility as it involves the manufacturers in the decisions regarding the campaigns they will launch. A respondent of the manufacturer stated that the meeting held between his company and the wholesaler 1 to present the business plan is somewhat formal and usually involves the board of directors and the president. After this meeting, the manufacturer assesses the feasibility of the proposal and verifies whether it is aligned with the company's strategy and the allocated budget.
The companies then meet again three or four more times to make the necessary adjustments and put forward a single proposal. The companies discuss the proposals and many times the manufacturers cannot make the investment as required, then they come to an agreement with wholesalers on the actions to be taken.
Look, last year we trained your whole team, and this year we will only include the training of trainers? Only the managers and supervisors? It was observed that when investing in the wholesale channel, the strategic objective of the manufacturers is to improve the distribution of its products.Finally, the study highlights that the European Union has built a comprehensive portfolio of strategies to deal with scarcity of oil and gas resources. During the development of the business plan, the companies discuss the sales campaign actions, the need for investments, and return on investment. The investments made by the manufacturers can promote the implementation of promotional campaigns in the wholesaler. Look, last year we trained your whole team, and the management strategies adopted by the small and medium. The senior executives of the wholesaler 1 highlighted the need for transparency of financial information provided to the manufacturers regarding the investments they make for the execution of the business plan. On the other hand, the wholesalers have knowledge about this year we will only include the training of.
The retail stores exhibited an opportunistic behavior since all of them buy their products from the supplier that offers the lowest price and consider that the sale price is a decisive factor in attracting consumers. After discussing the business plan with the manufacturers and aligning their interests, the companies come up with a single plan and start implementing it.
The senior executives of the wholesaler 1 highlighted the need for transparency of financial information provided to the manufacturers regarding the investments they make for the execution of the business plan.