Research On The Coordination Mechanism Of Dairy Dual-channel Supply Chain

With the rapid development of e-commerce, as well as the rapid rise of foreign dairy products in the domestic,the competition among dairy enterprises heats up, the form of competition changes from competition between enterprises into the competition between the supply chains. In order to expand the market, improve competitiveness, dairy companies have to build the e-commerce channels. However, the establishment of e-commerce channels will inevitably compete with traditional retail channels for customers, resulting in channel conflict. Dairy producers are both suppliers of retailers and dual channel benefit-sharing participants. This cooperation and competition between them makes producers particularly concerned about the channel conflict in the dual-channel supply chain, because the degree of coordination is a critical factor that determined whether the product will success. In view of this, the paper took dairy double-channel supply chain as the research object, integrated optimization theory, contract theory, as well as non-cooperative game theory, research on how to design contract in order to achieve the supply chain coordination and to ensure a win-win situation for channel members, so as to enhance the overall competitiveness of the dual-channel supply chain, in the coexistence of traditional retail and e-commerce channels of dual-channel supply chain.Firstly, the paper analyzed the structures of three modes in the traditional retail channels, they are "producer-wholesalers-retailers-consumers","producer-branch-retailers-consumers" and "producer-direct sales stores-consumer", This paper also analyzed virtual retailers and electronic direct sales stores two modes in the e-commerce channels on the basis of the study of the dairy supply chain process features. At the same time, the thesis compared the advantages of traditional retail channels and e-commerce channels from aspects of producers and consumers.Secondly, the paper summarized the characteristics and application scope of four types of double-channel supply chain:separated channel mode, hybrid channel mode, bricks and clicks mode and integration channel mode, and discussed the double-channel supply chain mode which dairy producers currently adopted through a case. It analyzed the channel conflicts of double-channel supply chain and the reasons why it emergedFinally, the paper discussed the coordination strategy of dual-channel supply chain, such as pricing tactics, product tactics and channel tactics. According to the characteristics of the hybrid channel of dairy dual-channel supply chain, this paper established the Stackelberg game model which set producer as leading, proved that the equilibrium price reached by the independent decision-making game does not make the best of the overall profit of the supply chain system and exist Pareto improvement opportunities in a hybrid channel mode; through raised benefit-sharing contract, the profit of manufacturers and retailers can be improved, It showed by an example that the overall profit of supply chain reach optimal, and supply chain achieved coordination by using the contract. Simultaneously, according to the separated channel mode of dairy dual-channel supply chain’s features, the thesis established a two-stage Bertrand game model involved producer, retailers and e-commerce operators tripartite, proved the equilibrium price of independent decision-making is a sub-game perfect Nash equilibrium; Though designed pricing contract, which allowed producer to participate in the decision-making of the supply chain, while improved the profits of the parties of the supply chain, and make the overall profit of the supply chain system reach optimcal. Furthermore, the paper used a numerical example test the designed contract well.