Supply Chain Collaboration in the Management of Nam Dok Mai Mango Exports from Thailand to Japan
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SUPPLY CHAIN COLLABORATION IN THE MANAGEMENT OF NAM DOK MAI MANGO EXPORTS FROM THAILAND TO JAPAN by SUPAJIT PANICHSAKPATANA A thesis submitted to the University of Newcastle upon Tyne in partial fulfillment for the degree of Doctor of Philosophy NEWCASTLE UNIVERSITY BUSINESS SCHOOL University of Newcastle upon Tyne May 2013 ABSTRACT This thesis aims to develop the supply chain collaboration in the management of fresh Nam Dok Mai mangoes for exports to Japan. To accomplish the research aim, three main objectives are addressed; 1) to provide an overview of existing supply chain of Nam Dok Mai mangoes in Thailand and to identify strengths and weakness in the supply chain; 2) to analyse supply chain collaboration between growers and exporters in the production of mangoes for export to Japan; and 3) to provide recommendations to the government and related agencies on sufficient supply chain management for fresh mango exports. Following a theoretical review, the study employs a conceptual framework for the study of collaborative supply chain that differs from the traditional concepts used in the manufacturing industries literature. The thesis framework presents concepts of supply chain collaboration used for an agro-food industry focusing on the perishable products. The discussion and analysis based on the six case studies of mango export companies which are the main exporters in Thailand. Semi-structured interviews are conducted to gather data from growers and exporters. A cross-case analysis is applied to examine the collaboration and to compare similarities and differences among six companies. The developed theoretical concepts of supply chain collaboration are discussed in the cross-case analysis to determine the good collaborative practices between growers and exporters in each case study. The outcomes of this analysis contribute to the introduction of grower-exporter collaboration in agro-food supply chain. The results demonstrate that information sharing, decision synchronization, relationship and trust are the keys to improve production capability. Incentive alignment can provide the motivation for increasing growers’ performances. Traceability can be determined as a critical issue for product quality improvement in terms of i food safety. The collaboration can increase production efficiency. The consistency in good performance can develop trust and long-term relationship in the supply chain. Thus, the value in collaborative supply chain has a positive impact on the agribusiness in terms of increasing competitive advantage. ii ACKNOWLEDGEMENTS So many people and several organisations have contributed to the completion of this doctoral thesis. They have supported me and my work in various capacities during my PhD study, and I would like to take this opportunity to express my deep and sincere gratitude to all of them. It would not have been possible to write this thesis without the help and support of these kind people around me, to only some of whom it is possible to give particular mention here. This thesis would not have been complete without the help, kind support, and, patience of my principal supervisor, Prof.. Stephen Hughes, who provided valuable guidance and supervision throughout my PhD study. I also would like to thank my co-supervisor, Dr.Tom McGovern for his useful advice for my thesis. Several organisations contributed support to my research, and without them it would have been virtually impossible to complete this thesis. I would like to express my gratitude to Research Development Agency (ARDA), which provided a scholarship for my PhD study. I gratefully acknowledge Department of Agriculture (DOA), Department of Agriculture Extension (DOAE), and National Bureau of Agricultural Commodity and Food Standards (ACFS) for their assistance in accessing information, and managing the field surveys. I would like to express my appreciation to all persons who have kindly offered me their time when I collected necessary information for my research. My sincere thanks are given to Mr. Wichian Kamjaipai, Assoc.Prof. Hirokazu Higuchi, Suriyon Thunkijjanukij, Assoc.Prof. Somyot Chirnaksorn, Dr.Supranee Impithuksa, Mr.Udorn Unahawutti, Ms.Sunantha Puangsema, and Mr.Manop Kaewwongnukul. I would like to express my sincere gratitude to my family for their unfailing love, encouragement and support throughout this long and often difficult period of research and writing. My greatest respect and thanks go to my parents, Prof. Supamard and Sukjai Panichsakpatana. I am very grateful for my mother. Her love and understanding encouraged me to work hard and pursue a PhD study abroad. My special gratitude expresses to my father, who provides me advice, continuous support, and always guides me to wisdom. Dad, you are iii always my professor, my prototype, and my pride. My appreciation also goes to my brother, Naim Satapol, as well as my cousins in Thailand. Above all, I would like to express my deep gratitude to my boyfriend, Tae Nantawut. His unconditional love, and great encouragement made us continue pursuing the PhD together. I do realise that these past several years have not been easy, both academically and personally. I heartily thank Tae for has always been by my side and supported me in every aspect of my life during my good and bad times. I am deeply appreciated his help, sacrifice, and great patience at all times. I feel that what we both learned a lot about life, fulfilled our ambition to achieve our PhD together, and to live life to the fullest. Pursing a PhD research is a long and difficult experience. It is like climbing a high mountain, step by step, accompanied with hardships, frustration, encouragement and trust with help and support from many people. Reaching the peak brought me delightfulness, but the experiences along the journey were the most valuable. I deeply appreciate my family, friends, and those people who help, support, and encourage me till the end. You make my PhD very meaningful. iv TABLE OF CONTENTS Chapter 1 ............................................................................................................................ 1 Introduction ....................................................................................................................... 1 1.0 Introduction ................................................................................................................. 1 1.1 General statement of the problem .............................................................................. 1 1.2 Thai Fruit and Vegetable Trades in Global Market ............................................... 2 1.3 Mango Industry in Thailand ...................................................................................... 3 1.3.1 Production and Major Export Markets ................................................................. 3 1.3.2 Thai Mango Cultivars .............................................................................................. 5 1.3.3 Supply Chain Activities and Problems of Export Production ............................. 5 1.4 The Research Problem ................................................................................................ 7 1.5 Research Objectives .................................................................................................... 9 1.6 Scope of Study .............................................................................................................. 9 1.7 Research Methodology .............................................................................................. 10 1.8 Limitation of the Study ............................................................................................. 11 1.9 Research Contribution .............................................................................................. 11 1.10 An Overview of Thesis Structure ........................................................................... 12 Chapter 2 .......................................................................................................................... 17 Supply Chain and Perishable Products ......................................................................... 17 2.0 Introduction ............................................................................................................... 17 2.1 Concepts of Supply Chain Management ................................................................. 18 2.2 Supply Chain Management for Differential Advantage ........................................ 19 2.3 Agro-Food Supply Chain of Perishable Produce ................................................... 20 2.4 Time-Based Competition versus Perishability ........................................................ 22 2.4.1 Life Cycle of Perishable Produce .......................................................................... 23 v 2.4.2 Time and Loss of Perishable Product Quality ..................................................... 24 2.4.3 Product Quality and Harvesting Time ................................................................. 25 2.4.4 Information Sharing in Control of Perishability ................................................. 25 2.4.5 System Dynamics Model using a "ready-to-eat" Scenario ................................. 26 2.4.6 Mature Supply Chain and Emerging Supply Chain ........................................... 27 2.4.7 Product Information .............................................................................................. 28 2.5 Supply Chain Collaboration ....................................................................................