Supply Chain Rationalization

Abstract

This article reviews the implementation of supply chain management within the Australian food and grocery industry and examines the workplace implications of this new form of industry rationalization within the manufacturing, distribution and retailing components of the grocery supply chain. Based upon documentary sources and interviews with employers, consultants and trade union officials, we find the dominant workplace trend involves a focus on increased labour flexibility amongst upstream suppliers in response to the strategic power of the dominant supermarket chains. However, variations in labour use strategies and union responses across the supply chain also highlight the continued diversity of workplace regimes that result even within a highly concentrated product market. The implications of this case for broader debates on the process of `systemic rationalization' are explored.