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Business to consumer (B‐2‐C) e‐commerce offers many potential benefits to firms, including access to geographically dispersed markets across international borders and enabling direct supply chain relationships with consumers. Language and currency differences, consumer liability implications and customs and inspection fees represent barriers to the expansion of international e‐commerce. Comparisons are presented of customs fees for regular and e‐commerce sized shipments of four food products from Canada to the USA. As these fees are largely charged on a flat rate basis, they place e‐commerce shipments at a considerable competitive disadvantage relative to traditional truckload sized shipments. The lack of agreement internationally on how to revise or harmonise customs regulations means that customs fees remain geared towards large shipments. Although the existing system was acceptable when most shipments crossing borders were large truck or container loads, the development of e‐commerce provides a strong incentive for change.

Observes that supply chain management is a rapidly‐evolving subject which offers many insights into how industries are organized and into the efficiency gains which can be made under different organizational structures, pointing out that it is an interdisciplinary concept, drawing on aspects of marketing, economics, logistics, organizational behaviour, etc. Presents a framework from the economics literature which may be useful for those interested in understanding and exploring the concept of supply chain management. Describes the origins and development of transaction cost analysis and explains the key concepts of the framework. Discusses the potential effects of transaction costs on vertical co‐ordination within an industry and, hence, on supply chain management. Finally, suggests methods for empiricizing transaction cost analysis, resulting in recommendations for closer co‐operation between researchers and business managers.

Closer vertical co‐ordination of supply chains is becoming a prevalent feature in the agri‐food sectors of many countries. Presents a framework within which to analyse these changes. The framework links drivers for change to product characteristics, which in turn affect transaction characteristics and transaction costs, thereby leading to a change in vertical co‐ordination. A case study of the US grains industry provides an illustration of the framework. Implications for agricultural producers, producer groups and policy makers are discussed.

New institutional economics suggests that the development of institutions and the existence of transaction costs are important determinants of the speed and success of the transition from command to market systems. Investigates the development of hog marketing channels in Poland during transition using data from a survey of Polish hog farmers. Given the fragmented structure of hog production and processing and the upheaval of transition, different transition paths can be identified. The supply chain relationships, such as contracting, that encourage improved quality and stimulate further investment are likely to exhibit long‐run transaction cost advantages.

The announcement in February 1997, that scientists at the Roslin Institute, Edinburgh and at PPL Therapeutics had successfully cloned a sheep from another adult sheep raised many interesting questions. Ignoring the hotly debated and important ethical issues, this note explores the potential consequences of this breakthrough for vertical co‐ordination in meat supply chains. By reducing the biological variation inherent in animal production, cloning technology could allow the final quality of meat products to be linked more closely to managerial ability. It may result in closer contractual relationships between farmers, processors and retailers. This would bring with it, however, the problems of asset specificity and increased risks of opportunism for farmers if they invest in livestock with a specific genetic code for a single buyer. The purpose of this short paper is to raise interesting questions which bear further investigation rather than to offer definitive answers to these questions.

The rapid transition from a command to market‐based economy in China has required the development of a food safety system for aquatic products where one did not previously exist. The pace of change has meant that food safety systems have struggled to keep up. In 2007 food safety incidents damaged the reputation of aquatic products in export markets. The Chinese Government has moved quickly to strengthen the safety regime for aquatic products. The purpose of this paper is to assess these initiatives in the context of their potential to regain international acceptance of Chinese aquatic products.

A regulatory assessment approach is used.

The findings are that increased government oversight alone is not likely to lead to a fully effective food safety system for aquatic products. The development of private sector‐based incentives to encourage investment in food safety is an essential co‐requisite to increased government oversight if China's access to international markets is to be assured.

The value of this study lies in the light it sheds on the efforts of a major player in the international market for aquatic products to improve the efficacy of its food safety system. China's regulatory regimes are often opaque, limiting the ability of those wishing to assess the advisability of importing food products from China.

Analyses the likely impact of the recent bovine spongiform encephalopathy (BSE) crisis on the organization of the UK beef supply chain. Using concepts from New Institutional Economics, argues that, in addition to the direct financial costs of the crisis, additional hidden transaction costs and long‐term “transaction benefits” should be considered. Hidden costs include the increased need for monitoring and traceability in the supply chain, while hidden benefits may result from a reorientation of the industry towards a more consumer‐driven focus, a greater attention to food safety issues and opportunities for branding and market segmentation. It is suggested that the hidden transaction costs and benefits are likely to lead to closer vertical co‐ordination throughout the beef supply chain.

Discusses how changes in institutional objectives for international food assistance have influenced the organization of supply chains for innovative therapeutic foods designed to address problems of malnutrition and undernutrition.

Draws upon insights from donor and international organization reports, policy documents, and academic publications to reveal the structure, goals, and objectives of international organizations involved in food assistance strategies. Explores how innovations in Ready-to-Use Therapeutic Foods and Ready-to-Use Supplementary Foods fit into food assistance strategies and broader humanitarian goals.

Informed by the United Nations Millennium Development Goals, international food assistance strategies have broadened beyond acute malnutrition to include chronic undernutrition. Food assistance strategies have shifted toward a focus on local and regional procurement (LRP) over transoceanic aid, with Public Private Partnerships (P3s) playing a facilitating role.

This chapter raises important considerations to factor into the design and execution of international food assistance strategies using LRP/P3 modes of organization. It contributes to an understanding of the challenges of organizing international food assistance strategies that include socioeconomic goals of sustainability and nutrition objectives.

Presents a study of the procurement of beef by UK supermarkets. Investigates the hypothesis that a retailer’s choice of beef supplier is influenced by the transaction costs incurred in different supply relationships. Measures the relative importance of the transaction costs incurred by retailers as a result of concerns over quality consistency, traceability and farm animal welfare using conjoint analysis. Data for the conjoint analysis were collected through a postal survey of UK supermarket retailers. From the results, suggests that the information and monitoring costs arising from the need to ensure that beef supplies are of a consistent quality are relatively important influences on the choice of supplier, followed by the traceability of cattle, whether the beef originates from a farm assurance scheme and the price paid by the retailer. Also analyses procurement preferences of individual respondents, revealing some interesting differences between the retailers. Concludes that strategic alliance partnerships between retailers, processors and marketing groups composed of farmers may emerge as the method of vertical co‐ordination which minimizes transaction costs.

This paper introduces a new mathematical model for analyzing the economic benefits of incorporating the fourth party logistics (4PL), which is a contractor (i.e. agent) for the supply chain coordination and construction based on the division of community and the outsourcing development. Based on the physical theory and the wave-particle duality, a supply chain is the special organization whose characteristic has wave-particle duality. The mathematical model enriches the connotation of 4PL and it broadens the thought for 4PL development. Secondly, the proposed mathematical model predicated on transaction costs, is supported by Transaction Cost Theory (TCT) and acts as the theoretical analysis tool of 4PL for coordinating 3-party generic supply chain. Through the model, some trendy conclusions can be drawn to provide theoretical support for 4PL’s practices. Finally, a case illustrates our conclusions.