M. Fritz, et al. / International Food and Agribusiness Management Review Volume 7, Issue 1, 2004
Cooperation on the Development and Use ofStandards
Cooperation on the development and use of standards involves
■ standards for product description and
■ standards for transaction processing and organization,
both prerequisites for platform interoperability. In the joint development of
standards, the cooperation usually involves not only the cooperating platforms but,
in addition, standardization organizations such as the Uniform Code Council (UCC).
Product description standards allow the standardized description of products and
their characteristics (Maskus et al., 2000, David et al., 1990) and, in turn, a
reduction of transaction costs (Barzel, 2002, Jones et al., 1996). Initiatives for the
development and use of product description standards are supported by major
platforms such as Transora, CPGmarket, WWRE, and GNX. Transaction standards
focus on the technological aspects of inter-marketplace connectivity and
interoperability. Common transaction standards would facilitate the exchange of
transactions and related information. An example of cooperation in the development
of inter-marketplace connectivity involves the platforms Transora and Foodtrader.
Beyond the dual cooperation efforts, Transora aims at becoming a central platform
providing linkages to others.
Gaining Support by Major Market Participants
Support by major market participants who represent leaders in their field of
operation may be considered as an essential development strategy for platforms.
Support could involve engagement in platform use or in platform organization.
Examples include:
■ the platforms Transora and CPGmarket that were initiated by Consumer
Packaged Goods and major agri-food companies including Kellogg’s,
General Mills, Kraft Foods, Bestfoods, Campbell, Nestlé, and Danone,
■ the retailer platforms WWRE and GNX with companies like Auchan, Tesco,
Safeway, or Carrefour as founding members,
■ Agribuys, the platform for perishable goods, that has gained support from
retailers such as Ahold or Giant, who use them for the purchase of fruits,
vegetables, meat, and dairy products, and
■ Amphire, a platform for the food service industry that gained support from
food service suppliers such as Heinz, General Mills, Campbell Foodservice,
Chicago Meat Authority, McCain, or the poultry producer Perdue.
Improvement of Trading Functionalities
The early mover platform initiatives commonly started with rather basic trading
support functionalities. These functionalities have successively been improved,
extended, personalized, and automated over time to further adapt to customer
requirements and customer process routines. As examples, Agribuys has introduced
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