Supply chain management, 3rd party logistics & food quality & safety: evidence from Greece

The aim of this study was to examine whether or not the efficiency of the supply chain management affect the food quality & safety. We focused upon transportation, warehousing, and inventory management. We also examined why food companies choose to outsource logistics functions such as transportation and warehousing and to what extent outsourcing affected food quality & safety. We conducted a large scale quantitative survey during January to March 2005. We faxed 400 questionnaires to Greek food companies with more than 5 personnel. We got 79 usable questionnaires (response rate 19.8%). The data analysis showed that food companies have no doubt that improving food quality means increased market share and profits. Transportation & warehousing are the main cost drivers. The most significant problems of the logistics function are: (1) re-occurring failures to quality control (2) overdue expiration date (3) inefficiencies in product sorting and handling. 44% of the companies have a logistics department. 35% of companies reported that prefer to get 3rd party logistics; most of them are SMEs. 50% of Greek food companies have acquired ISO certification in production, transportation and warehousing. ISO 14001 is rarely used. Almost all companies reported that training of personnel is a factor of improving food quality.