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Forms of market coordination – market research

The processes of transformation of the Polish economy, which have been ongoing for over fifteen years, have caused noticeable changes in all industries. It should be emphasized that the currently observed processes taking place in industries not only in the country but also abroad concern many specific issues that may testify to the usefulness of conducting research in the field of various forms of market coordination in supply chains. For example, one can mention such factors as: ownership transformations, legal conditions and regulations, demonopolization and liberalization of trade, deregulation and regionalization leading to the creation of local markets, mergers and alliances of Polish companies with foreign investors, or the need for close cooperation in the face of ever-increasing competition.
Transformations in the national economy force the emergence of new forms of relationships between enterprises. Purely market-based buy-sell transactions are no longer sufficient; in order to exist on the market and have the possibility of survival, various, more advanced forms of market coordination are needed. In times when integrated supply chains did not exist, relationships between companies were dependent on the principles of supply and demand, which resulted in a specific coordination of the behavior of producers and consumers through the price mechanism. Currently, the price mechanism is not the only and sufficient condition for the existence of companies in a given market. Closer attention has begun to be paid to the relationships occurring between companies, the degree of commitment and dependence, the level of conflicts, and the possibilities of resolving them.
Taking into account the above considerations and the fact that the assessment of various forms of market coordination has not yet been the subject of systematic research, it seems appropriate to select manufacturing companies visible on the market (belonging to various industries, including pharmaceutical, construction, and food), which most often constitute the main link in supply chains, as a research sample. In the survey conducted in November last year, 80 manufacturing companies visible on the market from various industries operating in the Greater Poland Voivodeship were asked to provide their opinions on the relationships of the surveyed companies as suppliers of semi-finished products or finished components with the recipient company; various opinions on the relationships of the surveyed companies as recipients were analyzed, as well as the level of cooperation, commitment, trust, and conflict between companies and the possibility of its resolution. The interpretation of the survey results in this article will concern factors of cooperation, including trust, commitment, cooperation, and conflict. The research shows that in the case of opinions relating to the access and commitment of partners in the supply chain, respondents believe that all opinions are significant (with the opinion related to loyalty and faith in one’s business partner receiving the highest number of indications). For respondents, both access to the knowledge and experience of their partners in logistics management and their loyalty are important, as well as commitment and discussions regarding misunderstandings, which strengthen the power of the relationship.

The least significant turned out to be the opinion related to access to the partner’s financial resources. This leads to one very important conclusion, which indicates that in the pursuit of greater integration of partners and, at the same time, economic processes in the supply chain, loyalty and trust are more important than mutual material assistance. The results related to the cooperation of producers as suppliers to subsequent links in the supply chain indicate that it is very important for them to perform activities professionally and well in order to be able to satisfy the needs of their customers in the best possible way. It can be said that there is a growing sense among producers as suppliers to the retail network related to increasing the level of customer service and offering the best possible products. It is not without reason that most of the literature in the field of supply chain management is devoted precisely to customer service.

The article comes from the magazine “Logistyka” 1/2007.

L2007-1s22.pdf