Evaluating Food Supply Chains From a Resilience and Cost Perspective: A Study on the Alternative Protein Industry

Abstract

Existing scientific research has made significant contributions to the field of supply chain (SC) resilience; however, without considering cost, resilience remains an abstract concept, detached from practical implementation. The purpose of this research is to study the concepts of SC resilience and cost within the context of novel foods, particularly alternative proteins (AP). These SCs, continuously evolving, face increasing pressure to bring down costs and develop resilience for success amid competition and disruptions. However, the perception that resilience is costly has led companies to doubt their ability to afford it. Adopting a qualitative multiple case-study approach, this research presents empirical observations from the AP industry, considering plant-based, fermentation, and cultivated meat technologies. Specifically, this study examines four stages of the SCs—(i) breeding and farming, (ii) processing, (iii) production, and (iv) distribution—to gain an in-depth understanding of novel foods SC configurations and the cost-resilience relationship, leading to three key contributions to Operations Management. First, the research uniquely contributes to SC resilience theories by bringing together two concepts: (i) cost of resilience, and (ii) level of resilience. Second, we develop a pragmatic view of resilience in novel food SCs, and propose a process development approach to balance resilience and cost through multi-purpose ‘complementary’ capabilities that address vulnerabilities in a cost-effective way. Third, there are findings that have not yet been conceptualised in the context of AP SC design. By bridging theory and practice, this research provides a foundation for designing cost-effective resilient SCs in the rapidly expanding novel foods industry.