• No results found

The pursuit of Transparency within Supply Chains : A study of how Transparency influences Sustainability within the Swedish Dairy Supply Chain

N/A
N/A
Protected

Academic year: 2021

Share "The pursuit of Transparency within Supply Chains : A study of how Transparency influences Sustainability within the Swedish Dairy Supply Chain"

Copied!
72
0
0

Loading.... (view fulltext now)

Full text

(1)

The pursuit of

Transparency

within Supply

Chains

A study of how Transparency influences Sustainability within

the Swedish Dairy Supply Chain

BACHELOR THESIS WITHIN: Business Administration NUMBER OF CREDITS: 15 ECTS

PROGRAMME OF STUDY: Sustainable Enterprise Development AUTHOR: Frida Heed, Victoria Lejon

TUTOR:Gershon Kumeto

(2)

Acknowledgments

We wish to extend a special thanks to anyone involved in the proceedings of this study, not to forget the support and matured collaboration between the authors.

First and foremost, the assistance and guidance provided by our tutor Gershon Kumeto were greatly appreciated, and we received the feedback with sincere gratitude. Secondly, we wish to show our appreciation to all interviewees for giving genuine answers and provide insight into the field. Any finalization of the project could not have been possible without you.

Last but not least, we are incredibly grateful for the love and support of our friends and families.

Sincerely,

Frida and Victoria

Frida Heed Victoria Lejon

(3)

Bachelor Thesis in Business Administration

Title: The Pursuit of Transparency in Supply Chains: A study of how transparency

influences sustainability in the Swedish dairy supply chain

Authors: Frida Heed and Victoria Lejon Tutor: Gershon Kumeto

Date: 2021-05-24

Key terms: Transparency, Sustainability, and Dairy Supply Chain

Abstract

The unrevealing scandals in the Swedish dairy industry demonstrate severe deficits in terms of animal keeping. Given the advanced code of conduct and sustainability standards presented by Swedish dairy corporations, confusion has arisen, and the demand for transparency within the supply chain has increased. Here is where the concept of transparency becomes relevant and vital. This thesis aims to examine the linkage between transparency and sustainability within dairy supply chains. Further, the aim is to investigate transparency within the supply chain and if and how it influences sustainability within the Swedish dairy industry. This study follows an interpretive research paradigm based on multiple case studies. The approach follows a deductive approach and qualitative method, conducted by semi-structured interviews with different actors along the Swedish dairy supply chain. The main findings of this study show that transparency and sustainability appear to be interrelated. However, as transparency seems to be time and money-consuming, it might emerge in added barriers and complexity in the implementation. Despite this, transparency occurs to prevent any disclosure of information that displays a relation between visibility and trustworthiness.

(4)

Table of Contents

1 Introduction 1 1.1 Background 1 1.2 Problem Discussion 3 1.3 Purpose 4 1.4 Research Question 4 1.5 Delimitation 4

1.6 Definition of Key Terms 5

2 Frame of Reference 6

2.1 Search Parameters 6

2.2 Transparency 7

2.2.1 Organizational Transparency 8

2.3 Sustainability 9

2.4 Sustainability and Transparency 9

2.5 Supply Chain 10

2.5.1 Supply Chain Management 11

2.5.2 Sustainability within Supply Chains 12 2.5.3 Transparency within Supply Chains 13 2.5.4 Sustainability and Transparency within Supply Chains 14

2.6 The Swedish Dairy Supply Chain 15

2.7 Theoretical Aspects 16

2.7.1 Legitimacy Theory 16

2.7.2 Stakeholder Theory 16

3 Methodology and Method 18

3.1 Methodology 18 3.1.1 Research Paradigm 18 3.1.2 Research Approach 19 3.1.3 Research Design 19 3.2 Method 20 3.2.1 Data Collection 21 3.2.1.1 Interview Questions 23 3.2.2 Data Analysis 24 3.2.3 Credibility 25 3.2.4 Data Quality 25 3.2.4.1 Validity 25 3.2.4.2 Reliability 26 3.2.5 Ethical Considerations 26 4 Empirical Findings 28

(5)

4.1.1 Farmer perspective 28

4.1.2 Manufacturer perspective 29

4.1.3 Distribution perspective 30

4.1.4 Retailer perspective 31

4.1.5 Customer perspective 31

4.2 Sustainability within Dairy Supply Chains 32

4.2.1 Farmer perspective 32

4.2.2 Manufacturer perspective 33

4.2.3 Distribution perspective 34

4.2.4 Retailer perspective 35

4.2.5 Customer perspective 35

4.3 Transparency within Dairy Supply Chains 36

4.3.1 Farmer perspective 36 4.3.2 Manufacturer perspective 38 4.3.3 Distribution perspective 39 4.3.4 Retailer perspective 39 4.3.5 Customer perspective 40 5 Analysis 42

5.1 Sustainability within Dairy Supply Chains 42

5.1.1 Farmer perspective 42

5.1.2 Manufacturer perspective 43

5.1.3 Distribution perspective 44

5.1.4 Retailer perspective 45

5.1.5 Customer perspective 45

5.2 Transparency within Dairy Supply Chains 46

5.2.1 Farmer perspective 46 5.2.2 Manufacturer perspective 47 5.2.3 Distribution perspective 48 5.2.4 Retailer perspective 48 5.2.5 Customer perspective 49 5.3 Comparison 50

5.3.1 Sustainability within Dairy Supply Chains 50 5.3.2 Transparency within Dairy Supply Chains 51

6 Conclusion 53

7 Discussion 55

7.1 Theoretical Contribution 55

7.2 Managerial Implications 55

7.3 Limitations 55

7.4 Suggestions for Future Research 56

(6)

Appendix 65

(7)

1

1

Introduction

In this section, an introduction to the topic of the paper is presented, with the help of background, problem statement, purpose, research questions, and delimitations of the study. Additionally, the authors provide a glossary of definitions used throughout the study.

1.1 Background

In the year 2019, one of the most devastating scandals in the history of Swedish dairy industry was revealed. Multiple cattle farms demonstrated severe deficits in animal keeping where numerous deceased cows were found, and reports indicated that the farm had not been cleaned for three years. The unkept animals include animals with dawn eyes, swollen udders, and calves found to be apathetic, all of which resulted in a discolored dairy. In the residual effect of this event, an increased demand occurred on transparency in supply chains, and the consciousness among customers of dairy products raised. Customers demonstrate their anger and vanished trust through comments on social media (SVT, 2020).

Each cattle farm must follow criteria regarding quality of raw materials and fair animal keeping to ensure high-quality products (LRF, 2019). Despite these criteria, the presented scandal connects to one of the largest dairy producers in Sweden. They, among other competitors, communicate that they have high sustainability standards with an advanced code of conduct, which covers animal keeping.

The result of the revealed scandal and the power of social media points out the consequences of not conducting business in a transparent manner (SVT, 2020). Here is where the concept of transparency becomes relevant and vital. Transparency consists of information acknowledgment and sharing information relevant to the stakeholder’s engagement (Foscht, Lin & Eisingerich, 2018). In line with this, the observation of increasing awareness and expectations of responsible actions within the supply chain among stakeholders put pressure on the organizations (Ebinger & Omondi, 2020). Transparency can be implemented in different settings. According to Harrison, van Hoek

(8)

2

and Skipworth (2014), transparency in companies supply chains where all actors along the progression are responsible for their visibility of actions. Further, underlining the importance of transparency throughout the supply chain (Lundmark Hedman, Hultgren, Röcklinsberg, Wahlberg & Berg, 2018).

The supply chain acts as a bridge between all stages in the product line from scratch to the final product and the end-customer and facilitates returns all along each step. Value can be added in each step along the supply chain, both upstream and downstream e.g., the start-, to the final product. As logistics consists of long-, and short-term planning, the end-customer’s needs must be met by coordinating material- and information flow (Harrison et al., 2014). Yet, by looking at an organization's logistical design, there is a need to examine the concept of supply chain management. While the supply chain is looking into operational logistics, the supply chain management considers operational and strategic logistics, covering both aspects (Morana, 2013).

The importance of sustainable actions and more long-term thinking arose in the report written by Brundtland (1987). The authors acknowledged the importance of a more sustainable way of using the resources. Further, sustainability is defined as “Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs” (Brundtland, 1987, p. 37). Hence, the sustainable supply chain is raising its significance, the organization's economic aspects are not forgotten. The intention is to incorporate all three elements of sustainable development i.e., economic, social, and environmental. The sustainable supply chain corresponds to managing the information, material, financial flows, and collaboration with other companies (Morana, 2013). According to the author, there are a handful of requirements to consider e.g., governmental pressures and requirements from stakeholders. In the light of this increased demand on corporation’s actions towards sustainable supply chains, companies might face certain obstacles such as effective costs (Morana, 2013). Hence, by conquering these obstacles, companies might gain a sustainable competitive advantage (Harrison et al., 2014).

Sonesson and Berlin (2003) acknowledge that dairy consumption in Sweden has changed over time, resulting in changes along the supply chain. The changing customer demands have pushed the requirement on increased transportation as there are today fewer dairy

(9)

3

producers, but the ones remaining have more extensive operations. The rising mass production of dairy products puts pressure and stress on dairy corporations. By that, the awareness of animal keeping might be the last prioritized aspect in the supply chain to meet the increased demand for dairy production (SVT, 2013). Harrison et al. (2014) highlight the importance of time dependency in the dairy industry by operating within short-dated products, which, together with increased customer demand, pushes supply chains to speed in order to avoid over-aged products and unsatisfied customers.

1.2 Problem Discussion

Researchers have seen that organizations can benefit from being more transparent. The increased customer awareness and demand for sustainable products increase, thereby companies who adopt a transparent supply chain might benefit from being more transparent (Khosroshahi, Rasti-Barzoki & Hejazi, 2019). In line with this, Relihan (2020) states that being transparent is advantageous for organizations. By investing in visibility, the skepticism decreases, and the organization wins the customer’s trust. At the same time, there are no clear guidelines regarding transparency in Sweden. In 2016 the Swedish Governance implemented a new constitution regarding sustainable reporting for larger corporations (Riksdagen, 2016). Consequently, corporations are responsible for carrying the load of interpretation on legal requirements regarding transparency, hence no clear guidelines are given. Further, enabling companies to solely be transparent in specific factors, choosing to leave out visible information in other aspects (Fredriksson & Edwards, 2019).

Adding the elements of observance and visibility enables stakeholders to follow the actions within the supply chain and gain an understanding of the process (Ebinger & Omondi, 2020). As stated by Bergström, Shanahan, and Solér (2010), organizations might display a sustainable approach, hence, as revealing each step in the supply chain, unsustainable procedures might demonstrate differences from what is disclosed. The existing evidence shows proof that transparency strategy is essential since transparency sheds light on an organization's operations and presents itself as a mechanism for monitoring and controlling its sustainability strategy. Therefore, it is crucial that corporations have a clear supply chain transparency strategy in line with their sustainability strategy. However, the existing literature focuses on sustainability within

(10)

4

the supply chain. An apparent gap in the literature is recognized as a general lack of studies on how transparency and sustainability are interrelated, additionally, how transparency in supply chains can influence sustainability within the Swedish dairy industry.

1.3 Purpose

The purpose of this study is to examine the linkage between transparency and sustainability in supply chains. In light of the problems mentioned above, the aim is to investigate transparency in the supply chain and if and how it influences sustainability with the help of multiple case studies within the Swedish dairy supply chain.

1.4 Research Question

The following research questions have been developed in line with the paper’s topic in order to achieve the purpose of this study.

RQ1: How do actors in the Swedish dairy industry implement transparency within the

supply chain?

RQ2: How can transparency influence companies to operate more sustainably within the

Swedish dairy supply chain?

1.5 Delimitation

At the beginning of 2020, the outbreak of Covid-19 was identified in Wuhan, China, and it rapidly spread worldwide (CDC, 2020). The consequences of the pandemic have been devastating, with illness and closed borders which constraint the authors from visiting all selected interviewees, and thereby, the majority of interviews were conducted through online meetings and phone calls. To solely focus on Swedish located firms is not due to the pandemic, rather a personal interest of the authors. This research will increase awareness about Swedish dairy products as learning more about the largest dairy producers in Sweden.

Furthermore, the context of the research is to investigate the supply chains of the Swedish dairy industry. Particularly the study is looking into organizations that are dedicated to

(11)

5

sustainability and have a clear Code of Conduct concerning social, economic, and environmental focus. Additionally, the research was limited to privately owned organizations as OECD (1998) considers private actors to be an essential factor in society.

1.6 Definition of Key Terms

Degree of disclosure: It refers to the extent of visibility and how much information the

organization wants to share regarding their business (Marshall, McCarthy, McGrath & Harrigan, 2016).

Stakeholder - Person that has an interest in developing a given actuality because s(he) is

affected by it (Mielke, Vermaßen & Ellenbeck, 2017).

Stakeholder Engagement - Practices that the organization engage in to involve

stakeholders (Greenwood, 2007).

Supply Chain: Referring to the process of actors who cooperatively work to convert an

asset into a finished product ready to be delivered to end customers (Harrison et al., 2014).

Supply Chain Management: It regards the planning and control in the production flow

of a product or service. It includes coordination and collaboration between different actors throughout the supply chain. Supply chain management is responsible for the supply and demand between actors to deliver the needs for the end customers (Harrison et al., 2014).

Sustainability- The ability to pursue out of the environmental, social, and economic

pillars in an integrated approach (Elkington, 1997)

Sustainable Development - “The development that meets the needs of the present

without compromising the ability of future generations to meet their own needs” (Brundtland, 1987).

Transparency: Refers to disclosing information and actions that a corporation shares

(12)

6

2

Frame of Reference

In this part of the study, the frame of reference is presented, pursued with a theoretical review of existing literature within the research topic and a presentation of the theoretical aspects used to guide the study.

To shed some light on a relatively complex topic, this frame of reference aims to present findings from preceding researchers in line with the topic of interest. The authors selected a large scope of peer-reviewed articles in the field of relevance connected to this study. A distinct focus was to find relevant and recent research articles and websites to gain updated knowledge. Following, the two chosen theories: legitimacy theory and stakeholder theory will be introduced in the end of the chapter.

2.1 Search Parameters

Database and Search Engine Primo (JU library), Google Scholar

Search Words Transparency, Organizational

Transparency, Transparency within the Food Industry, Sustainable Transparency, Visibility in Supply Chains, Transparency Strategies, Sustainability Strategies, Supply Chain Transparency, Swedish Dairy Industry, Dairy Supply Chains

Literature types Peer-reviewed articles, Academic books, and websites

Publication period 1962-2021

(13)

7

To collect the most relevant articles for this research, the authors glanced over and browsed through a large span of papers and thereafter selected and prioritized the most relevant articles according to the chosen field of the research. The purpose of the frame of reference was to give insight into the research topic. As the concept of transparency lays the ground for this research, it is essential, to begin with, the definition of this topic. The authors will navigate the reader through the notion of sustainability, supply chain, and dairy production in Sweden.

2.2 Transparency

The interest in the concept of transparency has increased in the last two decades, one of the reasons for this is the increase of customer awareness and engagement in corporations' activities and actions (Liu, Eisingerich, Auh, Merlo & Chun, 2015). The increasing usage of the term among researchers has led to a general definition of transparency with varying understanding depending on the approach of the context (Schnackenberg & Tomlinson, 2016). For example, Berggren and Bernshteyn (2007) explain transparency as openness and a key for a trustworthy relation between actors. By being transparent, individual performance and contribution towards the corporation are more conspicuous. Furthermore, by keeping an open approach within the company, a more collaborative relationship between employees arises. In line with this, Mol (2015) states transparency is a kind of disclosure of a corporation’s actions and information in a business situation. Liu et al. (2015) state that transparency is vital for companies to create an honest and sustainable relationship with their customers. By being visible to internal and external actors shows proof of trustworthiness.

Schnackenberg and Tomlinson (2016) acknowledge that the explanation of the concept of transparency can differ depending on what context it applies. For example, ensuring transparency within the corporation can result in more accurate behaviors and contributions between internal actors in the company because of a created relation-based visibility and accessibility of information. Moreover, transparency among leaders is also addressed and explained as continuously sharing information and openly communicating the leader´s feelings and thoughts. To conclude, Schnackenberg and Tomlinson (2016) construct a definition of transparency based on several explanations: “Transparency is the perceived quality of intentionally shared information from a sender.” (p.1788).

(14)

8

2.2.1 Organizational Transparency

Berggren and Bernshteyn (2007) state that organizational transparency is attracting and retaining actors with high performance in the labor market, which leads to driving company performance forward. The authors underline the importance for a corporation to ensure fundamental conditions like communication and openness within the organization to be in place in order to ensure transparency. Organizational transparency is essential for creating valuable and long-term relations between stakeholders (Jahansoozi, 2006).

According to Albu and Flyverbom (2019), transparency is synonymous with the quality and quantity of information communicated to permit the observation of a corporation’s activities and actions. It reflects on the disclosure and how much visibility the company is willing to share. Poli, Marangoni, Agostoni, Brancati, Capurso, Colombo, Ghiselli, La Vecchia, Molinari, Morelli, Porrini, Visioli, and Riccardi (2018) also underline the importance of transparency to external actors to keep an open and trustworthy profile. Furthermore, Albu and Flyverbom (2019) write that organizational transparency also covers the amount of openness within the company. A transparency perspective where the social parts are communicated, such as conflicts, leads to a more open and trustworthy environment. Doorey (2011) states a similar understanding of organizational transparency and describes it as openness and the disclosure of information in a business context. On the other hand, one negative side of being transparent and having an open business profile is the loss of competitive advantage. By communicating the organization's actions and thoughts can be damaging if competitors take advantage of honesty and openness (Gek & Lok, 2019).

Moreover, Jahansoozi (2006) covers organizational transparency by explaining the benefit of relationship building. Transparency is a requirement for building trust and commitment between an organization and stakeholders. The trust between the actors can lead to increased collaboration, accountability, cooperation, and responsibility resulting from an honest and trustworthy relationship between the corporation and the external actors. With an increased demand for strategies of transparency, pressure has come to arise on corporation’s business profiles. With the expansion of customer demand for

(15)

9

transparency, social pressure for a more open profile is claimed (Albu & Flyverbom, 2019).

2.3 Sustainability

The definition of sustainability was firstly published in a report by the World Commission on Environment and Development (WCED) written by Gro Harlem Bruntland (1987). The Brundtland report put sustainability due to the excessive poverty located in the South and the North’s contradictory patterns of mass production and overconsumption. The more affluent part of the population is required to maintain their lives within the means of the planet, in order words, the population size should be aligned with the dynamics of the ecosystem to achieve harmony (Bateh, Heaton, Arbogast & Broadbent, 2013).

According to Robertson (2017), sustainability is to be persistent in the direction of the future, i.e., long-term thinking. Today, sustainability is not solely depending on environmental factors. It also depends on human beings as well as economic aspects. There are three dimensions associated with sustainability: ecological, economic, and social. These dimensions developed into theories in the world of business, for example: “Triple bottom line” (Elkington, 1997), where the theory points out that organizations should focus on the social and environmental aspects as much as they do on profits.

Moreover, the “three pillars of sustainability” representing people, planet, and profit (Elkington, 1997) are examples of a developed theory within the field. As of the increase in population, sustainability became a constantly changing concept that makes it difficult to form a particular definition (Bateh et al., 2013). There are various requirements for sustainability and standards of reporting, hence voluntary schemes exist which put organizations in different participation levels (Mytton, 2019).

2.4 Sustainability and Transparency

According to Kassoy (2010), an organization cannot reach sustainability without transparency. Most companies are not fully transparent with their operations but have a percentage of their product range classified as sustainable. Hence, this does not imply that the company’s whole product catalog is sustainable. Nonetheless, a sustainable certification on a particular product does not reflect the total impact on the environment and community or how the company is treating its employees. By way of explanation, it

(16)

10

could be challenging to tell the difference between a “good company” and a “good marketing” (Guercini & Runfola, 2009).

As recent emergencies of social and environmental problems have resulted from lacking traceability, the need for coupling transparency with the state of sustainability is more issuing forth than ever (Closs, Speier & Meacham 2011). Schnackenberg and Tomlinson (2016) mentioned that reaching transparency means; quality in shared information, and further, Jahansoozi (2006) claims the benefits of building relations. To be successful in terms of sustainability, Robertson (2017) insists on developing long-term thinking, where closer relations with stakeholders could be the case.

2.5 Supply Chain

A supply chain includes all stages realized in a customer request issued directly or indirectly. It consists of all actors needed to reach the final product and end-customer, as a manufacturer, supplier, warehouse, retailers, customer, and all transporters (Chopra & Meindl, 2016). Referring to upstream as being closer to the source and downstream as close to the end-customer. There might be returns at every step in the supply chain, e.g., a material rejection from the retailer (Harrison et al., 2014). According to Hugos (2018), every supply chain faces different needs and requirements. For example, to manage high levels of inventory or cope with long lead times. Hence, all supply chains have a common need for simultaneous developments and to adapt to new requirements from both internal and external stakeholders. However, supply chains face different demands and difficulties, according to Hugos (2018), five areas where decisions can occur: production, inventory, location, transportation, and information. By maintaining the areas, an organization will be able to deliver the right capabilities for the specific supply chain (Chopra & Meindl, 2016). The supply chain is a dynamic process, constantly exchanging new information, funds, and products at each step. These processes can either form a: cycle view or a push/pull view.

(17)

11

Figure 1. General steps of a supply chain (Harrison et al., 2014)

They are containing: customers, retailers, distributors, i.e., wholesalers, manufacturers, suppliers of components, and raw materials. These stages could be managed from all directions and by every external part of the supply chain. According to Chopra and Meindl (2016), organizations must comply with new technology and customer demand to stay competitive. This could be accomplished by planning, design, and decisions regarding operations of the supply chain. The phases of decisions will enhance efficient procedures. As Chopra and Meindl (2016) mentioned, the process of 1. cycle view and 2. push/pull views are executed in a supply chain. The cycle view presents that all stages can be added into replenishment cycles, customer order, manufacturing, and procurement. Hence, depending on the industry, the cycles will not always be separated and enable an organization to distribute responsibilities and simplify operational decisions. Furthermore, the push/pull where the push replies to the expected response and the pull view represents customer demand.

2.5.1 Supply Chain Management

Supply chain management is a highly relevant concept to get the supply chain to function and have an operational network. Supply chain management refers to the supply chain and the network within the supply chain (Schaltegger & Burritt, 2014). Both Harrison et al. (2014) and Chen and Paulraj (2004) explain supply chain management as the logistics between internal and external actors in the supply chain. Together with keeping the information flow and managing the chain of processes, from the raw material supply, manufacturing the raw material, packaging, and the distribution of the end-customer. Miles and Snow (2007) argue that organizational performance increases in line with the

(18)

12

supply chain becoming more efficient. Further, Kim (2007) argues that supply chain management creates a broader span of efficiency and flexibility through operation quality and productivity improvement.

2.5.2 Sustainability within Supply Chains

According to Chopra and Meindl (2016), sustainability and its development in supply chains play greater importance in the 21st century. As the globalization of our market pushed companies to move production facilities to where cost is low and maximize profit. In line with this, Elkington (1997) states that three factors are essential to developing successful logistics: time, quality, and cost. Furthermore, logistics is a central development in these contexts, as the far distance from production, raw material, and customers forced logistics for rapid development. To motivate sustainability in supply chains, Chopra and Meindl (2016) presented three indicators that must be integrated to reach sustainability:

1. A decreased risk and raised financial impact on supply chain 2. Pressures from society and directives from governments 3. Engage customers who value sustainability

Hence, as Santillo (2007) mentioned, the movement to a sustainable state requires careful consideration of ethics by all humans, e.g., all employees of a company. To establish a successful sustainable supply chain, companies need to manage and set a code of conduct at every step in the supply chain regarding the three pillars of sustainability, which contain the environmental, social, and economic values (Harrison et al., 2014). As part of social responsibility, companies are suggested to look over working conditions and the supply chain. Each manufacturer, wholesaler, or distributor is providing safe and gentle conditions for its employees.

The environmental aspects suggest to cover waste management, quality of energy and water, for example. This, in turn, requires further analysis and control of suppliers and other stages of the supply chain to ensure they are aligned with the retailer's code of conduct (Chopra & Meindl, 2016). The non-accessible supply chains must respond to

(19)

13

new demands by implementing a further traceable supply chain dependent on solid collaborations. Additionally, this shift is described as “...purchasing management to sustainable supply chain management” (Teuscher, Grüninger & Ferdinand, 2006, p.2).

2.5.3 Transparency within Supply Chains

Harbert (2020) argues that there exist two elements of supply chain transparency: visibility that identifies and collects data and information from all actors in the supply chain, and disclosure, where communication is the key to inform of the information gathered from the actors in the supply chain. To communicate the information, both internal and external, at the level of detailed information that is required or desired. In line with this, Gardner, Benzie, Börner, Dawkins, Fick, Garrett, Godar, Grimard, Lake, Larsen, Mardas, McDermott, Meyfroidt, Osbeck, Persson, Sembres, Suavet, Strassburg, Trevisan, Wes,t and Wolvekamp (2019) describe the term transparency as connected to communication around sustainability in supply chains.

The increased interest in transparency in supply chains is based on the pressure from the governmental level, customers, and other stakeholders to disclose information about the supply chain and the actions within between the actors (Bateman & Bonanni, 2019). Transparency gives credibility and validity in the supply chain for internal and external actors to examine the company (New, 2010). Additionally, by creating transparency within the supply chain, the corporation implements long-term and ambitious thinking that creates market benefits. By implementing transparency, the organization encourages the customers to act on their tendencies and purchase after their priorities, it can encourage customers to consume socially responsible products (Harbert, 2020).

Transparency shows credibility according to the organization's business profile, visibility decreases the risk of negative reputation and ensures stakeholders that the enterprise is trustworthy (Bateman & Bonanni, 2019). In line with this, Gardner et al. (2019) underline the importance of the quality and reliability of the information communicated through transparency in supply chains to internal and external actors. Supply chain transparency is only adequate if the receiver has the interest and capability to take in the information.

(20)

14

Furthermore, Gardner et al. (2019) present a holistic framework of the concept of transparency composed of; traceability information that reports the actors involved in the supply chain, their role, and mission. Secondly, transaction information reports the economic part of the supply chain. By implementing transaction information, it creates an open environment concerning financial responsibility. The impact information shares the social and environmental impacts that the stages have in the supply chain. Policy and commitment information refers to the policies involved in the actions taken in the supply chain. Another aspect of transparency is activity information, where actions are taken and communicated by actors in the supply chain as sales, purchasing, and processing. This can further lead to change in behavior and influence by different actions and actors.

Lastly, effectiveness information reports the progress made by actors that influence the rest of the supply chain. Harbert (2020) states that increased visibility in supply chains can lead to added value to customers. Moreover, trust is the key to long-term trustworthiness between stakeholders and the companies.

2.5.4 Sustainability and Transparency within Supply Chains

As sustainability refers to the adoption of a sustainable code of conduct ensuring all three pillars (people, planet, and profit) defined by Elkington (1997), transparency is the demonstrated information of such details (Harrison et al., 2014). The importance of transparency in achieving sustainability in supply chains is to choose those suppliers not only ensuring the lowest price, rather looking for suppliers integrating holistic thinking and simultaneously enable transparent development for both internal and external stakeholders (Frentrup & Theuvsen, 2006).

According to Harrison et al. (2014), the challenge is to manage the ownership at each step in the supply chain and develop the overseeing along with the supply chain. For example, increased visibility at every step in the supply chain can enable merging shipments and develop coordination. Furthermore, suppliers and customers are required to access each other's production scheme and stock to reach the state of further synchronized progress. Moreover, the integration of sustainability and transparency in supply chains will “...access to information that is accurate, trusted, timely and useful for operational

(21)

15

reasons and to ensure the reliability of sustainability claims” (Garcia-Torres, Albareda, Rey-Garcia & Seuring, 2019, p. 87).

The development of sustainability and transparency in the supply chain requires new development of complex procedures to give suppliers, and other actors access to information (Carter and Rogers, 2008; Guercini and Runfola, 2009; Huq, Chowdhury & Klassen, 2016). Facing the challenges of transparency and the three pillars of sustainability will enable an increase in efficiency in supply chains (Barratt and Oke, 2007; Cao, Vonderembse, Zhang & Ragu-Nathan 2010; Fernie, Sparks & McKinnon, 2010). Furthermore, Svensson and Wagner (2012) argue for the importance of leadership when implementing sustainability in a corporation’s supply chain management process. Leadership has an important role in making sure to reach sustainability through the core visions. The researcher gives an example where “openness” can be one of the core visions, which refers to transparency to fulfill sustainability. In this case, “openness” was connected to a dairy farm where customers could visit the farm, which means that stakeholders can directly observe the product and process in the supply chain.

2.6 The Swedish Dairy Supply Chain

The Swedish dairy industry includes many actors and consists of a complex supply chain. Svensson & Wagner (2012) gives an example of a general dairy supply chain. Starting with sowing grain for the animal to digest, and the animal waste is taken care of and used for fertilizing the cultivable land. Later on, automatic milking carousels are accustomed to proceeding the milk, and following the dairy manufactures different products and pack them into proper packaging. Following, products are distributed to retailers and, from there, sold to customers that consume the product. Similarly, Harrison et al. (2014) describe the dairy products supply chain from a global perspective as “cow to the customer,” aligned with the previous description. Moreover, the food industry is particularly demanded to be transparent not solely with its supply chain but also with the labels of ingredients to diminish risks of allergic reactions and sickness among customers (Hofstede, 2003; Frentrup & Theuvsen, 2006).

(22)

16

2.7 Theoretical Aspects

2.7.1 Legitimacy Theory

Suchman (1995) describes legitimacy theory as “Legitimacy is a generalized perception or assumption that the actions of an entity are desirable, proper, or appropriate within some socially constructed system of norms, values, beliefs, and definitions”(p. 574). In line with this concept, Hummel and Schlick (2016) give an example that if an organization's stakeholders realize that the company's performance is not sustainable, the legitimacy is threatened and can come to affect the company's long-term performance in a negative way. Furthermore, according to Tang and Luo (2016), legitimacy theory is the process where investigation of the organization's liability and exposure is implemented.

The authors aim to interpret the factors of the legitimacy theory in the process of examining this study. Tang and Luo (2016) argue that a clear example of legitimation strategy is stakeholder engagement, where the management of the corporation has open communication with the stakeholders to keep an honest relation. Furthermore, a lack of openness and disclosure would decrease trust against the corporations and the social responsibility. This can be seen as a result for corporations when faced with different commitments to visibility against stakeholders and other actors affected by the organization's actions. Depending on the actor’s prioritization and perception of transparency in supply chains, the lack of trust against the company may arise from looking into the visibility of the organization.

2.7.2 Stakeholder Theory

Stakeholder theory originates from the framework by Freeman (1994), aiming to face ethics and values within a managerial approach in organizations. As striving for a balance where humans and the environment can flourish, the total financial activities require to assure value at every step in the process to diminish harm to people and the planet. This requires satisfaction among stakeholders, who in turn are able to harm any factor of the three pillars of sustainability (profit, planet, people) if an agreement of policies is not met between stakeholders. The definition of a stakeholder is, according to Freeman (1994), “those groups and individuals who can affect or be affected” (p. 411). Furthermore,

(23)

17

stakeholder shares an important influence on companies and can be divided into “primary” and “secondary” stakeholders. These represent, e.g., customers, employees, public agencies, or suppliers versus secondary stakeholders, e.g., media, organizations that have influence but do not obtain any fundamental support (Garvare & Johansson, 2010).

As both stakeholder theory and sustainability issue inquiring what the purpose and opportunities of the market are. Stakeholder theory aims to create value at every step in the supply chain and for all stakeholders in the process, similar to the sustainable approach of creating long-term value (Hörisch, Freeman & Schaltegger, 2014). In this study, the theory will analyze stakeholders in the dairy supply chain, looking at the shared value and visibility between the stakeholders.

(24)

18

3

Methodology and Method

This section begins by present the methodology of this study, including the research paradigm, research approach, and research design. Secondly, a comprehensive description of the qualitative method of the paper is displayed, including data-collection, interview structure, data analysis, credibility, data quality and validity, reliability, and a confession on ethical considerations.

3.1 Methodology

3.1.1 Research Paradigm

Collis and Hussey (2014) define the research paradigm as a philosophical guide on how research should be managed. Where philosophy of research is “a set or system of beliefs stemming from the study of the fundamental nature of knowledge, reality, and existence” (Waite & Hawker, 2009, p. 685). Continuing, people’s conception of existence and knowledge has changed over time, the paradigm can as of today be maintained in different settings. Historically, Kuhn (1962) meant only one research paradigm could be used for the creation of science solely referring to one source. Collis and Hussey (2014) name this paradigm as natural sciences, and the change of people's conception of existence developed into an additional research paradigm, social sciences.

The model of interpretivism is responding to positivism in critical perception, as the social phenomenon is a response to examining it. Positivism views social reality as objective and not affected by the researcher. Therefore, this study instead used the interpretivism paradigm, which underlined that social reality is not objective and could be framed by people’s conceptions. Additionally, interpretivism is consistent with qualitative data collection and analysis, which is another reason to adopt this paradigm (Collin & Hussey, 2014). An interpretative paradigm enabled observation of the research questions as this research is compounded by various angles of approach, i.e. transparency and sustainability. Further, according to Collis and Hussey (2014), this puts the reality of this

(25)

19

research as dependent on the observer, who in turn, will have a subjective view of the phenomenon.

3.1.2 Research Approach

According to Collis and Hussey (2014), a normal allocation of research divides studies into two different methods, deductive and inductive research. Deductive research is defined as a study where a theoretical structure is chosen and then further analyzed by observations. In addition, Woiceshyn and Daellenbach (2018) explain that the deductive method involves starting with a general theory and then narrowing it down to the specific by extracting the hypotheses from the theory. Further, the main difference between deductive and inductive research is that deductive research begins with an existing theory, while inductive research begins with observations to create a new theory. Bitektine (2008) argues that deductive research is appropriate for qualitative methods as the collected data from social cases may contribute to essential insights to theories and complement theories formed to quantitative methods.

Furthermore, according to Lipscomb (2012), the third research approach is called abductive reasoning, where the approach moves from incomplete observations to best predictions. Abductive reasoning aims to explain observations by interpreting the most developed and creative explanation. The research approach of this study leans to a deductive approach, as the process moves from generalization to empirical data and research findings. Deductive approach focuses on explaining relationships between concepts relevant for this study as it aims to fill in the gap of lacking evidence on transparency strategies and their influence on sustainability in the Swedish dairy supply chain.

3.1.3 Research Design

The research design is connected to the research paradigm, and depending on how to constitute the method and methodology, the research design will enable answers to the research question (Collis & Hussey, 2014). For this study, a multiple case study is conducted, as a supply chain consists of several actors. By adopting a multiple case study approach means that the study can be conducted from the perspectives of all the relevant

(26)

20

actors in the dairy supply chain (Otley & Berry, 1994). This research design enables observation and analyses of the topic of the research in its natural setting. Yin (2009) acknowledges that multiple case studies allow an in-depth understanding of the topic under investigation from various sources. According to Collis and Hussey (2014), a case study “is used to explore a single phenomenon (the case) in a natural setting using a variety of methods to obtain in-depth knowledge” (p.68). The case in this research is supply chains in the Swedish dairy industry, where detailed information is gained through a total amount of seven interviews with various actors in the supply chain, enabling understanding of the context.

Due to the lack of existing research in the field of this study, the choice of conducting a multiple case study strengthens the reasoning to find the answers to the research questions and to enhance the identification of patterns (Collis & Hussey, 2014). A multiple case study could generate a better understanding of the chosen phenomenon, and therefore this type of research design was favored instead of a single case study in this paper. Additionally, a broader data collection will result in further trustworthy research and enable the extent of a greater scope (Yin, 2009).

3.2 Method

In research, the method is the process of how to proceed with the study. The two main methods for conducting research are quantitative and qualitative methods, where quantitative research consists of collecting numerical data and then analyzing the data by using statistical methods. In comparison, qualitative research is based on non-numerical data from a specific context which is then interpreted by the researcher (Collis & Hussey, 2014). This paper follows a qualitative method due to the pursuit of an in-depth understanding of the topic from interviews with respondents working in the chosen industry. By applying qualitative research, the authors could dive deeper into the problem and gain different perspectives on the topic from the primary data collection in the form of interviews. Which is one of the reasons why this study is not following a quantitative method, as it is not aiming to investigate any existing correlation between concepts, rather to gain a further understanding of transparency strategies and their influence on sustainability in the Swedish dairy industry.

(27)

21

3.2.1 Data Collection

For this study, qualitative data collection is chosen by its allowance for interviews with respondents able to give an in-depth understanding of the pursuit of transparency in Swedish dairy supply chains. Firstly, the chosen respondents were identified by an overview of the largest dairy producers in Sweden and the different actors in the dairy supply chain. Secondly, the respondents were selected by determining political initiatives, i.e., sustainable development, following sustainable requirements, and location in Sweden. Hence, selecting respondents for this study faced some difficulties when multiple dairy producers and suppliers declined the interview inquiry. Given the lack of response, additional dairy producers and farmers were contacted.

Figure 2. Data collection

Looking at Figure 2, a number of 25 different actors in the dairy supply chain were contacted, 7 declined, 12 did not respond at all even though the authors sent out a reminder, and finally, 7 accepted an interview. It is evident that the authors aimed to conduct more interviews as a total number of 25 companies e.g. dairies and distributors, were contacted.

(28)

22

By finalizing the interviews, the authors felt saturated with the data collected as no additional perspectives appeared. Boddy (2016) indicated that recognition of data saturation determines whether a sample size is adequate or not. The data saturation is unable to occur before the conduction of at least two interviews, which strengthens the total sample size of this research. In line with this, Henry, Dymnicki, Mohatt, Allen, and Kelly (2015) states that small samples can provide in-depth knowledge about the topic and result in large amounts of complex data.

Figure 3. Information from the interviews

The professional position of the respondents varied between actors along the supply chain. The authors interviewed at least one actor of each general step of a supply chain. From a supplier perspective, the authors interviewed two farmers from different dairy companies, and in line with these, two managers at dairy manufacturing companies were interviewed. One of the managers is working at a dairy company and acting as both manufacturer and distributor, so the interviewee was representative for two perspectives based on two interviews. Further, a retailer and two dairy customers were interviewed. This is considered representative of the Swedish dairy supply chain as all of the general actors of the supply chain's perspectives were covered.

Due to the restrictions of the current Covid-19 pandemic, it prevented the authors from meeting all participants physically, except from Farmer B, who invited for a visit to the farm. The remaining interviews were conducted through the online application Zoom, and one respondent attended the interview through phone call. This faced limitations in the allowance to explore the organizational culture and work environment. Hence, Zoom

(29)

23

allowed the researchers and interviewees to see each other, which in contrast to a phone call giving the favor of observing body language, which stated by Hurn (2014) stands for a majority of the way humans communicate. Thereby allowing the authors to observe the interviewee's face expression, posture, and overall body language.

To extend the knowledge about the chosen field, it seemed relevant to seek secondary data to combine current research with the collection from primary data. Collis and Hussey (2014) define secondary data as “..research data collected from an existing source..” (p. 59). This research derived secondary data from peer-reviewed journals and articles as well as information about the chosen organizations from their websites.

3.2.1.1 Interview Questions

The aim of the interview was to get an insight into the topic and investigate transparency strategies and their influence on sustainability in the Swedish dairy industry. The interviews consisted of both closed and open questions to gain as much in-depth information as possible, for this reason, the interview was semi-structured. Furthermore, it made it possible to ask follow-up questions that occurred during the interview session. The semi-structure suited this paper well as it follows an interpretive paradigm as the aim is to understand and get an insight into the respondent's view on the subject. Questions about the respondents, in general, were asked in the beginning to get an understanding of their position at their companies and their main responsibilities. Further, questions about the individual understanding of transparency´s importance for increased sustainability were asked in order to add particular attention to every individuals’ experiences and thoughts.

The questions presented in the interview guide (see appendix 9.1) were used in all interviews. However, a few follow-up questions may differ from interview to interview depending on each type of respondent to gain the most possible relevant information from each interviewee. This way was chosen to ensure an effective approach for collecting data and staying in line with the time set for the interview session to respect each respondent. All interviews were conducted in Swedish, which was the mother language of all respondents contributing to this study as well as the researchers. This was done to create

(30)

24

a comfortable situation for the respondents and not limit the answers because of language barriers.

3.2.2 Data Analysis

The choice of preceding a general data analysis is highly dependent on the interpretive paradigm assumed in this study. To begin the analysis, the interviews were transcribed right after conduction. In combination with listening to the recordings of the interviews and looking at the transcribed text, further observation of the data was enabled, and various patterns could be identified. This was enabled by the second step, by coding the data collection and finding common themes in the conducted interviews, to simplify the comparison of the respondent’s perspective. Also, according to Miles and Huberman (1994), an interpretive study should include the action of data reduction. As the interviews were conducted in 20-60 minutes, together with loads of secondary data in the form of peer-reviewed journals, the data reduction will be a third priority in the data analysis. This enhances a simplified way of restructuring the research data and enables the authors to summarize the data. The chosen data reduction process is continuous data reduction, aiming to discard bias and irrelevant data (Collis & Hussey, 2014) and further enable drawing conclusions (Miles and Huberman, 1994).

The empirical findings were looked into both from an internal and external perspective. The internal perspectives refer to an analysis of the individual perspective among actors in the same position in the supply chain e.g., farmers. The internal analysis enables a comparison of the perceptions and answers to the interview questions among all interviewed actors along a supply chain. Whereas the external analysis oversees the comparison among the different dairy actors, allowing an understanding of different perceptions of supply chains in the Swedish dairy industry. This claims usage of interpretative progress as it is concerned about the respondent’s understanding rather than the researchers. An external analysis is necessary to answer the research questions as it allows comparison with the collected data (Collis and Hussey, 2014).

(31)

25

3.2.3 Credibility

As mentioned by Shenton (2004), credibility is notably important in qualitative research to enhance the trustworthiness of the study. To facilitate the analysis of whether the data is trustworthy or not, triangulation could be adapted. Triangulation allows multiple methods and data from various sources to be investigated and increases the ability to prevent bias data in sources (Jick, 1979). For this study, the use of data triangulation is considered since the information in the research is based on different sources and included in the same examination. To ensure credibility through triangulation, different actors within Swedish dairy supply chains were interviewed and together with secondary data, the collected data was analysed together of the chosen theories. Further, by asking the following questions to the interviewees: “What is transparency for you?”, “What is sustainability for you?” accumulated a diverse understanding of the concepts.

By interviewing actors along the supply chain, broader perspectives and further accurate data are gathered. Hence, the authors claim the importance of interviewing respondents with a well-developed knowledge in the field, which gave comprehensive answers to the questions to fulfill the aim of this study.

3.2.4 Data Quality

To ensure credibility in research, Collis and Hussey (2014) present reliability and validity as concepts to use in order to evaluate the quality of the study. Furthermore, the concepts indicate how trustworthy the study succeeds to be.

3.2.4.1 Validity

Yin (2009) explains, to ensure validity, multiple sources of evidence should be used in research. By constructing validity, the authors identified useful measures in line with the concept studied, e.g., interview respondents. Validity concerns that what is being studied is in line with what is claimed to be investigated. There are two types of validity, internal and external, where internal validity deals with how the procedure of the study is implemented and how accurately it is performed. While external validity deals with the outcome of the research and the conclusion of whether it can be applied to different

(32)

26

studies. External validity concerns how generalized the findings are and valuable for other researchers (Yin, 2009).

In this specific research, the frame of reference is based on peer-reviewed articles found from applying keywords when searching in different search engines. The frame of reference helps to define sustainability, supply chain, and transparency and further explain the concepts and how they are connected. Furthermore, primary data collection were used in line with the literature review to increase validity. To establish external validity, a clear description of the structure of the study is provided and developed explanations of background, research design, questions, findings, and conclusions.

3.2.4.2 Reliability

According to Saunders, Lewis, and Thornhill (2016), reliability stands for reproduction and consistency. For research to be reliable, the researcher should apply a research approach that has been used before and conclude the same findings and result. In addition, Bajpai and Bajpai (2014) state an explanation of reliability as “the extent to which it is without bias and hence ensures consistent measurement across time and across the various items in the instruments” (p.114). Finally, the authors have been observing each step of the research thoroughly to make sure that the study will be able to conduct again and documenting the moves to increase the reliability of the study.

3.2.5 Ethical Considerations

The ethical considerations are closely correlated to the methodology of the research, according to Finkelstein (1992). It cultivates in terms of interacting with both organizations and people where an objective research design is conducted. Collis and Hussey (2014) describe ethical considerations in the steps of:

1. Justification for the research 2. Access to participants 3. Informed consent

(33)

27

The steps of ethical consideration are sufficient in terms of illegal or unethical findings in the research. As the study is looking at the transparency in dairy supply chains, their development in the field might be a sensitive subject. Therefore, the dignity of the interviewees and corporations were considered. This study is not aiming to disclose a particular participant in the study, instead, it is supposed to overview the supply chains in the Swedish dairy industry in general. To avoid interviewees feeling uncomfortable, requests for anonymity were supplied, and an entire agreement was obtained before starting the interviews. Also, full transparency of which data to present was communicated to gain trust. The participant was furthermore accustomed to the possibility to withdraw their commitment to this study at any moment.

Additionally, the interviewee received information about European Union General Data Protection Regulation 2016/679 (GDPR), required by European Union (2016), and was obliged to sign the form of consent. Another ethical consideration is the risk of objectiveness by the researchers, as studying a university program within sustainable development, the passion of the research topic might result in an instinctive finding of the linkage between transparency and sustainability in supply chains. Therefore, the risk of objectiveness originates from the researchers’ fundamental values concerning sustainability. Hence, the objectivity of the research is highly computed.

(34)

28

4

Empirical Findings

The comprehensive findings and understandings of the respondents are presented below, and it is divided into the perspective of the farmers and managers. The empirical findings begin with the Swedish dairy supply chain continuing by transparency within the supply chain and lastly, sustainability in the organization.

4.1 Swedish Dairy Supply Chains

4.1.1 Farmer perspective

As soon as pushing the call button, the interviewee referred to in the study as “farmer A,” answered in a friendly manner. The interview with “farmer B” was conducted in a physical setting on the outdoor patio and started with a cup of coffee, served with freshly produced milk from the farm. This contributed to a very relaxed setting where the authors felt connected to the nature of dairy production. The physical meeting followed the constraints of Covid-19, and all participants kept their distance from each other and ended with a tour around the farm and an encounter with the colleagues of farmer B, namely the cows.

Farmer A explained that the employment at this particular farm started a year ago and continued to describe the variation of tasks at the farm, including breeding and daily activities. The respondent explains the daily routines to be cleaning, laundry services, taking care of the cows, treating sick cows, and other things that might happen during a day at the farm. Farmer B explains to be the owner of the farm and thereby bearing the main responsibility. This farm has always been family-owned, and farmer B worked as a farmhand before purchasing the farm from the father in the family, i.e., the previous owner. According to farmer A, the definition of values at the farm are to have excellent animal keeping, with a consistent priority of the animals.

“The working hours ideally would be between 7 am – 4 pm, but that would not match the needs of the animals.” (Farmer A)

(35)

29

Following, Farmer B means that the values have roughly been the same during recent years. The care and maintenance of the animals have always been the first priority where for example, all unnecessary transportation of the cows is diminished. Farmer A means that the values have changed over time, where increased demand for animal keeping has emerged recently.

“The cows are no living machines; you cannot push the end button at 4 pm and go home. It’s an around-the-clock employment”. By mistreating the animals, we will not have any production of milk. Animal care is our number one priority.” (Farmer B)

“Today, more farmers are working in terms of the needs of the animals rather than working for their own terms” (Farmer A).

According to Farmer A, the farms are obliged to follow a quality program established by the manufacturer (to ensure a common standard at the farms) but admit that the farm itself extends their values further than what is communicated in the quality programs. Additionally, farmer A points out a lack of communication throughout the supply chain. Where the employees at the farm have no information about what happens with the milk when the manufacturer purchased it, and no one reconnects with the farm. Both Farmer A and B are unaware of what characterizes the supply chain of their collaborating manufacturer and explain that nobody ever told them that.

4.1.2 Manufacturer perspective

When starting the meeting over the video communication tool, Zoom manager B answers with a smile. The respondent has been following product developments with the dairy manufacture and their sustainability journey for 25 years. Today, the respondent is employed as “sustainability manager”, a member of the board, and reports directly to the CEO with direct involvement with all actors in the supply chain, involvement in politics, and external environment monitoring.

(36)

30

The additional manufacturer, further called “manager A” has been working at the company for 36 years and is currently working as a dairy manager and leading the production. The interviewee´s responsibility includes employees, logistics, and strategic sourcing. The manufacturer´s keywords are that the dairy products they produce are 100% made by Swedish milk (manager A), further focusing on locally produced products and suppliers i.e., local farmers.

Manager A tells us that many Swedish dairy producers are moving parts of their supply chain abroad, which is why it is even more important today for the company to stay true to Swedish-produced milk. Manager B works by giving back to Sweden and the Swedish farmers to make their work valuable for farmers, animals, and end-customers. Manager B highlights the importance that every region does what they can with the assets they have. For example, Sweden has good opportunities to produce dairy products due to the good landscapes for animals to pasture.

To conclude, both companies work closely with a sustainable and local dairy supply chain. Manager A points out the importance of working hard to get the farmers and customers to believe in Swedish dairy products to sustain the farming in Sweden and gain a market that provides fair produced products.

“It is important that our society has future beliefs in our Swedish farmers” (Manager A)

4.1.3 Distribution perspective

As the authors know, manager A's acts both as manufacturer and distributor; therefore, the interview's continuation included questions about the dairy supply chain from a distributor’s perspective. The interviewee states that Swedish agriculture is essential for the Swedish economy, not to support the Swedish farmers.

“The key pillar of the dairy is to always and forever maintain 100% Swedish milk in our distribution center” (Manager A).

Continuously, the respondent explains the importance of displaying Swedish production as more competitors are today expanding into a global supply. This particular dairy acts as both manufacturer and distributor in the supply chain. Manager A points out that an

(37)

31

external actor collects the milk at the farms. The following step regards the manufacturer where different products are made and pasteurized, and then the distribution center holds the products and is responsible for dealing with purchases from the retailers. Furthermore, the respondent points out the importance of keeping a good relationship with retailers and having clear communication.

4.1.4 Retailer perspective

The respondent, henceforth called “Retailer A”, has been working at the company for 10 years with different working titles, but the common theme is within dairy. The interviewee is responsible for purchasing dairy products into the store and explains that the store's value has developed during the past years. The retailer considers a circular approach, and one clear example is that the retailer does not throw away products from the store, they donate them to care homes for socially vulnerable individuals. Examples of products that could be a bit broken or have best-before-date in a couple of days, and the retailer knows that customers will not buy them. The store has recognized a customer pattern that the customers demand more local dairy products, and then the retailer forms their selection of dairy products in line with the demand for more locally produced dairy products.

Furthermore, the retailer states that the communication between the store and the supplier and manufacturers can differ but is usually made online. Most of the communication is with the managers in the store, but the manufacturers are consistent with their communication. The respondent answers that it is important with communication and that the manufacturer answers any questions or wonders.

4.1.5 Customer perspective

The interview with customer A was conducted through a Zoom meeting, opening up with a presentation about the research. Customer A describes a change in the purchase of dairy products in the last years, with decreased consumption as moving from the family home. The meeting with Customer B took place outdoors, where the participants took a coffee just right after the respondent stepped out from the gym. Customer B explains similar purchases of dairy in the last year.

Figure

Figure 1. General steps of a supply chain  (Harrison et al., 2014)
Figure 2.  Data collection
Figure 3.  Information from the interviews

References

Related documents

40 Shows that there is a weak correlation between companies reporting their results of energy management and their performance in terms of carbon intensity.. Again,

•  Crisis communication & emergency response essential for public trust & confidence. •  Massive use of social media & networks

Building on the definition by Tsou (2013) on supply chain collaboration and applying a conceptual framework on the mechanisms of coordination (Martinez and Jarillo, 1990), and

Hence, this research was designed to investigate the behaviour and attitude of top management executives towards various transparency dimensions, i.e., Traceability,

PFOS - Waterproofing/Dirtrepellent Dimethylfumarate - Anti-mold HBCDD - Flame retardant Phthalates - Plasticizer Triclosan - Antibacterial. Learn more about each chemical in

Possible interest in the participated companies business models is on production techniques and supply chain, marketing strategies, core values and cues to

Charlotte said that food safety is in place regarding today’s challenges within The Case Company’s supply chain and how they manage them, that is the basic which

Further on, it examines how alternative food networks may impact different aspects of sustainable local development and what kind of a role actors of regional food supply chain