Effect of Trust on Supply Chain Collaboration Enhancing Downstream Logistics Efficiency of Agricultural Supply Chains

Abstract

With the growing world population and diminishing agriculturally productive land, the global agricultural production has become barely sufficient to meet the requirements of the world population. As a consequence, agricultural logistics has emerged in order to ensure that agricultural productions are not spoiled on the way to the consumer and reach the consumer with better quality. Today the consumers are more demanding on food quality and sustainability, resulting the requirement of redesigning the Agricultural Supply Chain (ASC) networks and establishing best practices in place, especially in the perspective of logistics. Thus, infrastructure such as, temperature controlled storage facilities and vehicles, access to cutting edge technologies, real time access to information regarding demand, supply, weather conditions ,price fluctuations etc., proper handling of surplus and agricultural value addition should be introduced to the traditional ASCs. Although having sophisticated infrastructure is important to enhance the efficiency and the productivity, it is difficult for small farmers, retailers, wholesalers, etc., to invest on these new-fangled infrastructures. It’s a known fact that collaboration is a strategic decision which aids in gaining competitive advantages, superior supply chain performance and it is a key for achieving logistical performance excellence. In order to maintain a close and fruitful relationship with the participants of supply chain, trust has been considered as a core factor. Accordingly, this study is concerned with the applicability of two concepts, “Trust” and “Collaboration” in resolving downstream logistics issues in less sophisticated, and less organized supply chains, such as the ASCs, to improve logistics efficiency. This scrutiny presents the findings of a comprehensive and systematic review of literature in the areas of trust, collaboration and logistics efficiency of ASCs and subsequently presents a conceptual framework for factors involved in trust building and collaboration in improving downstream logistics efficiency of ASCs.