title: Determinants of successful vendor managed inventory and strategic supply chain relationships in the New Zealand food industry

authors: Dorling, Kim

abstract: Supply chain initiatives are growing in popularity throughout the food industry, as organisations seek to reduce costs, to improve profitability in an increasingly competitive environment. As Whipple and Frankel (2000, p.21) suggest " ... firms seeking competitive advantages are participating in cooperative supply chain arrangements, such as strategic alliances, which combine their individual strengths and unique resources." Kurt Salmon Associates (1993) estimated that in the US, continuous replenishment processes (CRP), a form of vendor managed inventory (VMI), would provide annual savings of approximately 5% of sales, with the majority of savings realised by retailers. In support of this, Clark and Hammond (1997) found that, in the UK, supplier inventory turns increased 50 to 100% when electronic data interchange (EDI) was implemented in conjunction with CRP. 
In order to assist organisations in the New Zealand food industry benefit from these initiatives, this research seeks to answer the primary research question: "What are the key determinants of successful vendor managed inventory and strategic supply chain relationships in the New Zealand food industry?" In addition, a number of secondary research questions are asked including: "Why has the New Zealand food industry been slow to adopt VMI practices?" and "What supply chain efficiencies can be realised in New Zealand through VMI without EDI?'' 
An action research case study between a large supermarket retailer and a large food manufacturer in New Zealand was undertaken to answer these questions. Underpinning this is a literature review, which provided theoretical insights into global VMI and supply chain best practices. The output of this research is a series of three integrated frameworks covering industry, organisation and managementlevel aspects of VMI and strategic supply chain relationships. These frameworks, which have been justified and triangulated with the literature, are practical, working models, particularly relevant to organisations in highly concentrated food industries. 
The Industry-level framework concentrates on understanding the industry, analysing the competitive environment and developing long-term relationships to facilitate adoption of global best practice supply chain initiatives. These practices lay the foundations for the organisation and Management-level frameworks. 
The Organisation-level research demonstrates that successful supply chain relationships are formed between organisations which are relatively important to each other and have strong management buy-in to a shared vision. To be successful, the relationship must be supported by a number of factors including a win-win attitude, a high degree of trust, and open communication. These factors must be continuously developed and nurtured to ensure the relationship delivers the expected benefits. Documenting agreed goals and objectives, establishing formal communication channels, and reporting progress against the agreed goals and objectives can help organisations establish and develop these factors. This research investigates how these were achieved. Further, in New Zealand, it was found that these practices tend to be informal and based on verbal arrangements. This contrasts with the UK, which has formal relationships based on documented agreements and contracts (Siemienuich, Waddell, Sinclair, 1999). 
The Management-level framework demonstrates that both suppliers and retailers in the New Zealand food industry can realise supply chain benefits, including higher sales, improved customer service and reduced inventory levels, by establishing VMI and supply chain relationships. The Management-level research shows how organisations can minimise the impact of the 'bullwhip' effect (Lee, Padmanabhan and Whang, 1997) through VMI practices. In this research these benefits were realised by adopting VMI practices without EDI. The extent of the VMI benefits was limited to a few key product categories because of the limited resource available to manage the process manually; however, indirect benefits were realised by other product categories as a result of system and process changes in both organisations. These findings are consistent with the international findings by Clark and Hammond (1997). 
In conjunction with developing the frameworks, the research explains why the New Zealand food industry has been slow to adopt global supply chain initiatives, particularly distribution centres (DCs), EDI and VMI. The main reason identified was the power the supermarket retailers have over the industry. Until the supermarket retailers were ready to implement supply chain initiatives, manufacturers had limited opportunity to initiate supply chain relationships. It was found that countries, such as New Zealand, with small regional populations are likely to experience industry consolidation in order to establish and operate efficient and effective DCs. This is due to the high fixed costs associated with operating DCs and the ability of larger organisations to exert their power over other industry participants, forcing them to utilise their DCs. This finding is consistent with the Australian food industry which has experienced increased usage of DCs by the two dominant supermarket retailers (Wright and Lund, 2003). 
Finally this research shows how action research methods, supported by soft systems methodology, can be applied in a New Zealand VMI and supply chain relationship environment to develop general theory. Action research methods were judged appropriate to maximise the flexibility and responsiveness of the research to the rapidly changing food industry and supply chain environment, while allowing the researcher to fully participate in the study. Initial research findings were justified and applied through further action research cycles, using multiple case studies within the main case study. Critical reflection was a key component of each action research cycle and resulted in the identification of factors, such as trust and openness, which may have continued to be taken for granted rather than nurtured and developed. 
In summary, this research provides the opportunity for organisations in the New Zealand food industry to move along the continuum from interdependent partnerships to strategic partnerships, and from competitive parity to sustainable competitive advantage (Mentzer, Min and Zacharia, 2000). Practitioners should consider adopting these findings to improve their supply chain relationships and increase profitability and shareholder returns. Academics should consider applying these findings to other industries and countries displaying similar characteristics to the New Zealand food industry.

text: Determinants of successful vendor managed inventory and strategic supply chain relationships in the New Zealand food industry Supply chain initiatives are growing in popularity throughout the food industry, as organisations seek to reduce costs, to improve profitability in an increasingly competitive environment. As Whipple and Frankel (2000, p.21) suggest " ... firms seeking competitive advantages are participating in cooperative supply chain arrangements, such as strategic alliances, which combine their individual strengths and unique resources." Kurt Salmon Associates (1993) estimated that in the US, continuous replenishment processes (CRP), a form of vendor managed inventory (VMI), would provide annual savings of approximately 5% of sales, with the majority of savings realised by retailers. In support of this, Clark and Hammond (1997) found that, in the UK, supplier inventory turns increased 50 to 100% when electronic data interchange (EDI) was implemented in conjunction with CRP. 
In order to assist organisations in the New Zealand food industry benefit from these initiatives, this research seeks to answer the primary research question: "What are the key determinants of successful vendor managed inventory and strategic supply chain relationships in the New Zealand food industry?" In addition, a number of secondary research questions are asked including: "Why has the New Zealand food industry been slow to adopt VMI practices?" and "What supply chain efficiencies can be realised in New Zealand through VMI without EDI?'' 
An action research case study between a large supermarket retailer and a large food manufacturer in New Zealand was undertaken to answer these questions. Underpinning this is a literature review, which provided theoretical insights into global VMI and supply chain best practices. The output of this research is a series of three integrated frameworks covering industry, organisation and managementlevel aspects of VMI and strategic supply chain relationships. These frameworks, which have been justified and triangulated with the literature, are practical, working models, particularly relevant to organisations in highly concentrated food industries. 
The Industry-level framework concentrates on understanding the industry, analysing the competitive environment and developing long-term relationships to facilitate adoption of global best practice supply chain initiatives. These practices lay the foundations for the organisation and Management-level frameworks. 
The Organisation-level research demonstrates that successful supply chain relationships are formed between organisations which are relatively important to each other and have strong management buy-in to a shared vision. To be successful, the relationship must be supported by a number of factors including a win-win attitude, a high degree of trust, and open communication. These factors must be continuously developed and nurtured to ensure the relationship delivers the expected benefits. Documenting agreed goals and objectives, establishing formal communication channels, and reporting progress against the agreed goals and objectives can help organisations establish and develop these factors. This research investigates how these were achieved. Further, in New Zealand, it was found that these practices tend to be informal and based on verbal arrangements. This contrasts with the UK, which has formal relationships based on documented agreements and contracts (Siemienuich, Waddell, Sinclair, 1999). 
The Management-level framework demonstrates that both suppliers and retailers in the New Zealand food industry can realise supply chain benefits, including higher sales, improved customer service and reduced inventory levels, by establishing VMI and supply chain relationships. The Management-level research shows how organisations can minimise the impact of the 'bullwhip' effect (Lee, Padmanabhan and Whang, 1997) through VMI practices. In this research these benefits were realised by adopting VMI practices without EDI. The extent of the VMI benefits was limited to a few key product categories because of the limited resource available to manage the process manually; however, indirect benefits were realised by other product categories as a result of system and process changes in both organisations. These findings are consistent with the international findings by Clark and Hammond (1997). 
In conjunction with developing the frameworks, the research explains why the New Zealand food industry has been slow to adopt global supply chain initiatives, particularly distribution centres (DCs), EDI and VMI. The main reason identified was the power the supermarket retailers have over the industry. Until the supermarket retailers were ready to implement supply chain initiatives, manufacturers had limited opportunity to initiate supply chain relationships. It was found that countries, such as New Zealand, with small regional populations are likely to experience industry consolidation in order to establish and operate efficient and effective DCs. This is due to the high fixed costs associated with operating DCs and the ability of larger organisations to exert their power over other industry participants, forcing them to utilise their DCs. This finding is consistent with the Australian food industry which has experienced increased usage of DCs by the two dominant supermarket retailers (Wright and Lund, 2003). 
Finally this research shows how action research methods, supported by soft systems methodology, can be applied in a New Zealand VMI and supply chain relationship environment to develop general theory. Action research methods were judged appropriate to maximise the flexibility and responsiveness of the research to the rapidly changing food industry and supply chain environment, while allowing the researcher to fully participate in the study. Initial research findings were justified and applied through further action research cycles, using multiple case studies within the main case study. Critical reflection was a key component of each action research cycle and resulted in the identification of factors, such as trust and openness, which may have continued to be taken for granted rather than nurtured and developed. 
In summary, this research provides the opportunity for organisations in the New Zealand food industry to move along the continuum from interdependent partnerships to strategic partnerships, and from competitive parity to sustainable competitive advantage (Mentzer, Min and Zacharia, 2000). Practitioners should consider adopting these findings to improve their supply chain relationships and increase profitability and shareholder returns. Academics should consider applying these findings to other industries and countries displaying similar characteristics to the New Zealand food industry.

year: 2004

title: Effects of pasture silage on yield and composition of milk from dairy cows

authors: Rogers, Graeme Lindsay

abstract: Factors affecting milk yield and composition were reviewed and it was concluded that feeding level and diet type (notably unwilted pasture silage) may have independent effects on yield and composition of milk.
The objective of this research was to investigate the separate effects of forage type and feeding level on milk yield and composition and to study some of the mechanisms that may effect the efficiency of utilization of DE in these diets for milk synthesis. 

Initially effects on milk yield and composition and nutrient utilization were studied in a series of experiments in which dairy cattle were individually fed in stalls on varying levels of forage diets. Unwilted pasture silage was compared with pasture, wilted silage, formalin treated silage, and unwilted silage supplemented with pasture, maize silage or protein concentrates.
These experiments showed that both level of feeding and the type of forage diet offered to dairy cows can affect milk yield and composition.
Increasing the intake of pasture, increased the yields of milk, fat, protein and lactose, and increased milk protein percentage and decreased milk fat percentage. Similar results were obtained with unwilted silage except that no relationship was found between silage intake and milk protein concentration.

Cows offered unwilted pasture silage produced less milk containing a lower concentration of fat and protein than cows offered pasture at the sane intake of DE. percentage. Neither ration affected milk lactose percentage.
The efficiency of utilization of DE for milk synthesis by cows fed silage was improved by either reducing protein degradation during ensiling, or by providing pasture or protein concentrates as supplements. Maize silage as a supplement had no effect. These studies indicated that the amount of protein entering the duodenum of cows offered unwilted silage was limiting milk protein synthesis.
Subsequently cows were surgically prepared with abomasal cannulae to test this hypothesis. Consistent and significant increases in milk yield, milk protein  concentration and milk protein yield by cows fed unwilted silage were obtained when abomasal infusions of sodium caseinate were given in a series of studies. Further studies showed no responses were obtained with abomasal infusions of glucose which indicated that the response in milk protein synthesis was due to amino acids per se. 

The magnitude of the responses in milk protein synthesis to abomasal infusions of casein were higher for cows offered silage in comparison to those fed pasture at similar intakes of DE. The difference in the responses of the cows on the two rations was due apparently to an inadequate supply of essential amino acids for cows fed silage in comparison with those fed pasture.
Abomasal infusions of L-methionine increased milk yield, milk protein percentage and milk protein yield to the same extent as casein suggesting that methionine might be the major essential amino acid that was limiting milk protein synthesis of cows fed unwilted pasture silage.

text: Effects of pasture silage on yield and composition of milk from dairy cows Factors affecting milk yield and composition were reviewed and it was concluded that feeding level and diet type (notably unwilted pasture silage) may have independent effects on yield and composition of milk.
The objective of this research was to investigate the separate effects of forage type and feeding level on milk yield and composition and to study some of the mechanisms that may effect the efficiency of utilization of DE in these diets for milk synthesis. 

Initially effects on milk yield and composition and nutrient utilization were studied in a series of experiments in which dairy cattle were individually fed in stalls on varying levels of forage diets. Unwilted pasture silage was compared with pasture, wilted silage, formalin treated silage, and unwilted silage supplemented with pasture, maize silage or protein concentrates.
These experiments showed that both level of feeding and the type of forage diet offered to dairy cows can affect milk yield and composition.
Increasing the intake of pasture, increased the yields of milk, fat, protein and lactose, and increased milk protein percentage and decreased milk fat percentage. Similar results were obtained with unwilted silage except that no relationship was found between silage intake and milk protein concentration.

Cows offered unwilted pasture silage produced less milk containing a lower concentration of fat and protein than cows offered pasture at the sane intake of DE. percentage. Neither ration affected milk lactose percentage.
The efficiency of utilization of DE for milk synthesis by cows fed silage was improved by either reducing protein degradation during ensiling, or by providing pasture or protein concentrates as supplements. Maize silage as a supplement had no effect. These studies indicated that the amount of protein entering the duodenum of cows offered unwilted silage was limiting milk protein synthesis.
Subsequently cows were surgically prepared with abomasal cannulae to test this hypothesis. Consistent and significant increases in milk yield, milk protein  concentration and milk protein yield by cows fed unwilted silage were obtained when abomasal infusions of sodium caseinate were given in a series of studies. Further studies showed no responses were obtained with abomasal infusions of glucose which indicated that the response in milk protein synthesis was due to amino acids per se. 

The magnitude of the responses in milk protein synthesis to abomasal infusions of casein were higher for cows offered silage in comparison to those fed pasture at similar intakes of DE. The difference in the responses of the cows on the two rations was due apparently to an inadequate supply of essential amino acids for cows fed silage in comparison with those fed pasture.
Abomasal infusions of L-methionine increased milk yield, milk protein percentage and milk protein yield to the same extent as casein suggesting that methionine might be the major essential amino acid that was limiting milk protein synthesis of cows fed unwilted pasture silage.

year: 1977

title: Aroha

authors: Maxwell, Te Kahautu

abstract: Waita Tira (choral), Lyrics composed by Te Kahautu Maxwell and Performed by Ōpotoki Mai Tawhiti (Kapa Haka group)

Waiata ā Tira: Aroha
Whakaeke: Pinepine Te Kura, Hau Te Kura
Mōteatea: Te Ao o Te Pārerā
Waiata ā Ringa: E pā to reo, Te Matatini, Herewini Parata
Poi: E ia e ia
Haka: Te Kōtiritiri, Te Kōtaratara
Whakawātea: Ōranga Tōiti, tōnui kōrero

text: Aroha Waita Tira (choral), Lyrics composed by Te Kahautu Maxwell and Performed by Ōpotoki Mai Tawhiti (Kapa Haka group)

Waiata ā Tira: Aroha
Whakaeke: Pinepine Te Kura, Hau Te Kura
Mōteatea: Te Ao o Te Pārerā
Waiata ā Ringa: E pā to reo, Te Matatini, Herewini Parata
Poi: E ia e ia
Haka: Te Kōtiritiri, Te Kōtaratara
Whakawātea: Ōranga Tōiti, tōnui kōrero

year: 2023-02-22