In the category efficiency, all chain members but one found
two indicators of medium importance – i.e. transaction costs
and inventory – the exception being the breeder, who found
inventory costs important (see Table II). A possibleexplanation can be that this chain is structured such that
transaction costs (e.g. searching costs and transportation
costs) are kept to a minimum. Since growers are not allowed
to sell their products to wholesalers outside the chain, they do
not seek other channels such as auctions or direct marketing.
Growers benefit from the arrangement with the wholesaler
since they have no transportation costs and save time for
marketing their products. On the other hand the wholesaler is
assured of a constant supply of products. Unlike the other
chain members, the breeder emphasized the importance of
inventory costs. Inventory costs are important for the breeder
given the large amount of expensive seeds that are kept in
storage for a long time-period, which increases the costs of
warehousing. The wholesaler and the distribution center sell
their whole stock within one day and therefore inventory costs
are not of interest to them. There is a high level of agreement
between chain members on production cost and profit
indicators in the efficiency category, which shows that the
costs remain one of the major concerns for measuring supply
chain performance.