Abstract:

In order to get competition advantage, reducing cost even a point is more essential in the industrial catering. The study focused on cost benefits of the backward growth among industrial catering firms in the supply chain.  Thus, a survey was conducted on 7 backwards growth firms and 20 traditional working firms in the supply chain. Research results indicate that backwards growth decision of firms resulted positively with increase in stability of supply, competitiveness, firm’s market share, financial risk, firm’s profit and innovation, and negatively in coordination problems. In addition, backwards growth resulted with decrease in supply and inventory cost among vertical mergered firms in the supply chain. Competition in the industry, caterer and supplier relations, capacity utilization, advantages and disadvantages of backgrowth has been also investigated.   Keywords: Cost Reduction, Supply chain, Backward growth, Catering Firm.

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