STRATEGIC APPROACHES TO DEPENDENCE ON RESOURCES AND SUPPLIERS

Recycled Polyethylene Terephthalate, known as Recycled PET, or rPET, is the recycled product of the virgin plastic material PET (Polyethylene Terephthalate). The European Union has announced new regulatory measures that set a target for the usage of rPET in packaging (25% by 2025). The low availably of rPET, its concentration amongst few suppliers, as well as the need for complying, has resulted in supply chain disruptions in which companies are exposed to dependence on the supply of rPET. In attempt to mitigate supply risks, reduce financial impacts, and ensure survival, companies have found themselves in need to manage their relationships with suppliers and define appropriate strategies. This study examines the reaction to the issue of dependence on supply (resources and suppliers), brought by the EU rPET legislation, and seeks to offer insights into what are the most adopted strategies amongst companies under these conditions. For this purpose, it was conducted a survey directed towards companies operating in the food and beverage industry and whose operations and products fall under the announced regulations. The sample consists of a total of 26 companies under those conditions. The results suggest that the most adopted strategy is compliance. That is, the findings insinuate that amongst the companies experiencing, to some extent, dependence on supply (rPET and its suppliers), the most common strategic approach is to maintain a locked-in position, in which they comply with contractual terms and conditions demanded by the supplier.