The impact of coupled-consolidation: Experiences from the Irish food industry

The Irish food industry is of significant importance to the Irish economy. Given its dependence on UK multiple retailers, their supply chain management practices have considerable implications for the whole of the Irish economy. Retailers' attempts at improving efficiency at their regional distribution centres have resulted in the growing use of consolidation centres whereby food products from several manufacturers are consolidated into full loads for delivery into RDCs. Results of three case studies suggest that the use of a particular form of consolidation (i.e. coupled-consolidation where in-bound logistics are coupled with consolidation services) results in the imposition of costs, especially in terms of lost flexibility, to food manufacturers. The distribution of these costs is asymmetric, with smaller firms bearing the greater costs.