Electronic Trade Platforms in Food Networks: An Analysis of Emerging Platform Models and Strategies

Abstract

This paper presents empirical evidence on electronic trade platforms in food chains and networks. It identifies emerging platform models and shows that an e-commerce infrastructure has evolved in food supply chains.
Based on an empirical analysis, four principal platform models operating in the agrifood sector were identified. “Neutral verticals” perform transactions along the entire agrifood chain and act in spot market environments. “Downstream re-intermediaries” are specialized in supporting existing business relationships at specific later stages of the agrifood chain. “Ag output subsectorials” mediate particular agrifood product lines and focus on agriculture related segments of the chain. “Large consortia” are driven by agrifood players and particularly adapt to their participants’ requirements.
Results show that cooperation initiatives between platforms exist and evolve. Cooperation initiatives focus on the joint use of trading functionalities and the development of standards regarding product descriptions and platform transactions. Cooperation initiatives result in the emergence of networks of interconnected platforms. It could be shown that existing collaborations between platforms already relate to a platform infrastructure that could cover the marketing processes of a complete agrifood chain.