Assessing Values-based Sourcing Strategies in Regional Food Supply Networks : An Agent-based Approach
as many suppliers as possible . For a regional food hub , having a large and diverse set of suppliers is recommended to hedge against the many disruptive risks ( e . g ., weather , pests ) that are inherent to food production ( Moragham & Vanderbergh- Wertz , 2014 ).
Because of their emphasis on transparency and traceability , VBOs should be especially rigorous in evaluating and selecting suppliers — they must ensure that suppliers ’ practices are consistent with the values of the VBO and its customers . Methods for including environmental criteria in supplier selection decision are well established ( Handfield , Walton , Sroufe , & Melnyk , 2002 ; Humphreys , Wong , & Chan , 2003 ). However , incorporating social concerns into sourcing decisions has proven challenging , and there is little existing research that investigates how consumer values can be translated into principles and rules to guide sourcing decisions ( Zorzini , Hendry , Huq , & Stevenson , 2015 ). A case study by Pullman and Dillard ( 2010 ) provides one example , in which a natural beef producers ’ cooperative has developed specific values-based requirements for membership in the cooperative , including a codified set of sustainable land and water management principles , a detailed list of mandatory production standards ( e . g ., prohibitions on hormone / antibiotic usage ), quality and capacity criteria , and connection to the land ( i . e ., ownership and plans for future ranch management ). Trust , egalitarian values , and freely shared information and ideas characterize the cooperative ’ s supply system .
For VBOs and VBSCs , a natural tension often exists between the often opposing objectives of profitability and social / environmental responsibility . Organizations that do not go far enough to meet consumers ’ values-based requirements may be in danger of accusations of “ green-washing ” and lose legitimacy , whereas those that focus on social and environmental aspects at the expense of financial sustainability will struggle to remain viable ( Walker & Wan , 2012 ). Thus , maintaining an appropriate balance is challenging but critical to a VBO ’ s organizational success . Accomplishing this requires that organizations have a clear understanding of their customers ’ values and provide products and services that are aligned with these values .
Empirical Data Elicitation and Analysis of a Regional Food Hub Regional Food Supply Chain
The food hub described in this paper is a VBO that operates as an online grocery store , using its website to broker sales between small-scale Iowa food producers and the food hub ’ s consumer members . The food hub operates a small warehouse to facilitate sorting , short-term storage , and distribution , but it does not actually take ownership of any inventory , and there is no comingling of different producers ’ products — every item that passes through the food hub is
27