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

Abstract

This study aims to examine the relationship between resilience and cost across the dimension of sustainability (i.e., economic, environmental, societal) in alternative protein supply chains (SCs). Our global food system is on the cusp of transformation, with new SCs emerging. Traditional food SCs are already inefficient, unsustainable and prone to disruptions. Thus, if these issues are not solved, emerging food SCs will face the same challenges. Hence this research focuses on emerging and evolving food SCs such as alternative proteins SCs. Developing resilience in food SCs is critical, but it may come at a cost. Emerging food SCs in particular, must balance cost-effectiveness and resilience to succeed in a competitive and disruptive environment. While reducing costs is critical to compete in the market, ensuring resilience is essential to withstand disruptions. However, it is widely reported that resilience is expensive, which has led companies to think that they cannot afford it. This perception may be rooted on the limited understanding of the relationship between cost and resilience, and the little guidance companies have on how to evaluate their SC resilience level. Therefore, this research addresses the following research question: “How do companies manage the trade-offs between resilience and cost in the context of emerging food SCs?”. In order to address this question, a research process is designed that involves three stages: (i) a critical literature review to develop a conceptual framework for evaluating the level of SC resilience and cost; (ii) qualitative case-based research and model development; and (iii) a quantitative approach involving system dynamics modelling to simulate different scenarios and test SC resilience under different types of stress. The outcome of this research will include a resilience stress-testing framework to evaluate the performance of SCs on multiple performance dimensions, and trade-offs analyses between resilience and cost which will assist companies in their SC management and decision-making processes. This research will also define the level of resilience for SCs based on the previous two expected outcomes. This study aims to contribute to SC resilience theories by bringing three concepts: cost of resilience, level of resilience, and stress-testing approach. There will be findings that have not been yet conceptualised in the context of alternative protein supply chain design.