Leopold Center for Sustainable Agriculture

Completed Competitive Grant

Supply chain options for biobased businesses

Project ID: 2004-M13

Abstract

This research paper investigates and evaluates the supply chain structures currently being used in biobased businesses, as well as presenting corollary examples of supply chains in businesses of all types (in the United States and abroad).

Key Question: How can supply chains help producers?

Findings: Supply chain partners are connected through the business relationships between partners in the chain. There are many forms that these relationships can take, i.e., spot market sales, contracts, etc. New biobased business partners, including farmers, should evaluate the various relationship models available to them before signing a new contract or forming a relationship. This research defines the various types of relationships and the advantages and disadvantages to each. Strategic alliances may provide the best advantage for farmers as they begin to acquire a marketing perspective of the supply chain rather than a production view, and look for long- term commercial success.

Lead investigator: Rhonda Lummus, ISU Operations and Supply Chain Management

Year of grant completion: 2005

This competitive grant project was part of the Leopold Center's Marketing Initiative.

Topics: Bioeconomy and energy