This case study illustrates how a performance evaluation model aimed at creating value is applied. It shows the results of the first phase of measurements and performance analysis of the company. Positioning a company on a maturity level helps to define best practices in order to create value. In this case, the SCALE model is applied to a retailer in the agri-food sector.
Agri-food is the fifth largest sector in Europe in terms of turnover. This sector must deal with market globalization, tight margins and increasing regulations. The agri-food sector is dominated by a few big traders, with most retail business occurring in medium or large supermarkets owned by chains whose power has increased as the sector has consolidated.
The implementation of traceability systems covering the whole of the chain has reinforced supply chain approaches in this sector. To improve their margins, many companies are now deploying new value-creating levers and cost-cutting programs, based mainly on supply chain management principles.
The organization of the supply chain in the agri-food sector is characterized by three main actors: producers, manufacturers and wholesalers-retailers (Figure 5.1) whose characteristics are detailed along market, product and customer aspect lines as shown in Table 5.1.