Challenges and changes faced by the food industry in multichannel distribution
DOI:
https://doi.org/10.5007/2175-8077.2024.e85973Keywords:
Distribution channels, Multichannel strategy, CompetitivenessAbstract
Goal: In searching for alternative means to reach consumers, food processing companies often experiment with new distribution channels, which brings about challenges and organizational changes. Thus, this study aimed to investigate the challenges and changes generated by the adoption of a multichannel distribution strategy in food processing companies.
Methodologt/approach: This qualitative study comprised two phases, including a documentary survey to identify food production sectors and potential companies to be included in the study and a survey of 14 food industries in São Paulo State that distribute their products across multiple distribution channels.
Originality/relevance: The intrinsic characteristics of a multichannel strategy make it highly complex to implement and manage. This study provides insight into the challenges encountered by food processing companies, enabling them to assess their readiness to adopt such a strategy.
Main findings: Accessing new markets, coordinating multiple channels, and managing conflicts between channels were the main challenges reported by food companies. Some challenges and changes were associated with company size and channel structure.
Theoretical contributions: It was found that the challenges and changes documented in the literature indeed occurred in the studied food processing companies, although the degree varied according to company size and channel structure.
Management Contribution: The findings of this study enable companies to better design strategies for controlling and managing a multichannel distribution system, improving their results, and reducing retailers' power over channels.
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