P/OM/12 Buyer power within supply chain (case of fresh food supply)

Abstract The report discusses the buyer power and its impact in the supply chain. At the national level, retailer power is seen to be of concern and the subject of inquiries by competition writerities. The retail concentration can be socially beneficial where it results in buyer power that can be used to counter market power of manufactures. Contrarily, some observers argued that buyer power may ultimately damage the supply chain because they think there may be longer-term detrimental effects, such as forcing manufactures reduce investment on new products and, in the process cause wholesaler prices to small retailer to rise. The report aimed to outline the ongoing debate and to prove that buyer power is beneficial to the supply chain through the fresh food supply chain study.