Challenges in the supply of perishable products to island communities

Abstract

This article examines the specific retail challenges associated with supplying to the island communities around the UK. It examines the main difficulties in supplying short shelf life products to both remote as well as larger urban island conurbations. Using a qualitative research methodology, this article reports interviews with individuals who had either strategic or operational responsibility for island retailing and supply. The research identifies a variety of factors that disproportionately influence the efficiency and effectiveness of a retailer's operations. It also notes that island retailers operate under a significantly different cost base from that of a mainland operation. While national multiple retailers may choose to absorb this additional expense into their overall cost base, many local retailers have followed a conglomerate strategy and operate wholesale or multi-service functions.

Keywords:

• island retailing
• supply chain
• collaboration
• interdependence
• perishable products

Notes

1. Demurrage refers to the period a vessel is in the possession of a charter company after the time normally given to charge and discharge the cargo (lay time). Demurrage is the amount a charterer will have to pay to the ship owner for its extra use of the vessel.

2. The research did note that a number of retailers had contingency plans in place should ferry disruption continue for more than a couple of days. Typically, this involved the use of air transportation from the UK mainland (although this was considered an expensive option).

3. A number of ferry operators charge on the length rather than the height of the vehicle. Many distribution companies therefore operate twin deck composite transporters.

4. It should be noted that increased stock holding on an island is not necessarily a negative issue. Armstrong, Johnes and McBean (1991) highlighted that because of the unpredictability of supply due to severe weather and technical difficulties, many retailers chose to hold higher levels of buffer stock than their mainland counterparts.

5. Some retailers apply a differential pricing policy depending upon the location of their stores and the format through which the product is sold. Typically, individual stores are assigned to a ‘band’ which indicates the relative price bracket of the goods.