The problem for the integrated processors and buying
agents is, however, that this type of collaboration
may not be as beneficial as some proponents of lean
suppose. One of the major critiques of the lean approach
is that it may be difficult to implement operationally
if flow production is not possible. The
problem of ‘carcass imbalance’ in this supply chain
militates against continuous flow in production and
this often necessitates a batch production approach.
Relatedly, there is the issue of who will benefit commercially
from any long-term collaboration. In this
supply chain it would appear that the major beneficiaries
of collaboration are the multiple retailers. This
is because they have the power resources to appropriate
the maximum share of value from their own
premium branded products and, while they may
make lower returns from commoditised products,
they can still force their integrated processing partners
to pass the majority of value that lean collaboration
generates to them.
This leverage is, if anythi