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Showing papers in "International Journal of Physical Distribution & Logistics Management in 1994"


Journal ArticleDOI
TL;DR: In this article, the authors look at corporate logistics strategy, particularly with regard to the USA, and discuss strategy referring to a general concept of operations guiding all activities towards an ultimate goal.
Abstract: Looks, in depth, at corporate logistics strategy, particularly with regard to the USA. Discusses strategy referring to a general concept of operations guiding all activities towards an ultimate goal – global rather than local. Itemizes some major American firms and their attitudes and considers their policies and results. Shows supply chain management and cycle time compression to be complementing logistics strategies for progressive US firms.

422 citations


Journal ArticleDOI
Hokey Min1
TL;DR: In this paper, the authors propose multiple attribute utility theory which can help purchasing professionals to formulate viable sourcing strategies in the changing world marketplace, and propose a global supplier selection approach based on multiple attributes.
Abstract: In an era of global sourcing, the multinational firm′s success often hinges on the most appropriate selection of its foreign suppliers. International supplier selection, however, is very complicated and risky owing to a variety of uncontrollable and unpredictable factors affecting the decision. These factors may include political situations, tariff barriers, cultural and communication barriers, trade regulations and agreements, currency exchange rates, cultural differences, ethical standards, quality standards and so forth. Nevertheless, a vast majority of the purchasing literature still focuses on the domestic aspects and neglects international supplier selection research. Proposes multiple attribute utility theory which can help purchasing professionals to formulate viable sourcing strategies in the changing world marketplace.

374 citations


Journal ArticleDOI
TL;DR: A review of the literature reveals a variety of constraints which make it difficult to draw broad inferences from the literature about the relationship between a given logistics strategy and performance.
Abstract: Concerns the definition and measurement of performance in logistics research. A review of the literature reveals a variety of constraints which make it difficult to draw broad inferences from the literature about the relationship between a given logistics strategy and performance. Discusses low logistics performance has been and could be conceptualized, operationally defined, measured and utilized. The limitations of alternative research designs and performance measures are revealed. Recommendations are made to improve the quality of future research.

358 citations


Journal ArticleDOI
TL;DR: In this paper, the attitude of shippers and service providers towards outsourcing of logistics functions performed within large multinational, manufacturing companies engaged in global trade is explored and a model describing the factors which influence the outsourcing decisions is presented.
Abstract: Explores the attitude of shippers and service providers towards outsourcing of logistics functions performed within large multinational, manufacturing companies engaged in global trade and presents a model describing the factors which influence the outsourcing decisions. Indicates that five key factors influence the outsourcing decision: centrality of the logistics functions to the firm′s core competency; risk liability and control; cost/service tradeoffs in operations; information and communications systems; and market relationships. Discusses several drivers, involving product, process and network complexities, which govern these factors.

236 citations


Journal ArticleDOI
TL;DR: In this paper, the state of supplier involvement in the integrated product development (IPD) process, and compares the practices of US and European firms, is discussed, with the focus on the use of multi-functional teams.
Abstract: Increasing competitive parity in the areas of cost and quality has forced global manufacturers to seek other sources of competitive advantage with new product development rapidly becoming the focal point in the quest for sustained growth and profitability. The essence of today′s new product development strategies is the simultaneous development of the new product and the accompanying manufacturing process such that quality is enhanced, costs reduced, and lead times shortened. The implementation of the integrated product development (IPD) process has come to depend on the use of multi‐functional teams. Today, outside suppliers represent increasingly important members of the new product development team. Supplier involvement promotes better resource utilization, the development and sharing of technological expertise, and network effectiveness. Explores the state of supplier involvement in the IPD process, and compares the practices of US and European firms.

228 citations


Journal ArticleDOI
TL;DR: In this article, a number of strategies for reducing supply chain demand amplification and simultaneously improving customer service levels have been modelled and tested via dynamic simulation, where huge improvements are predicted in the damping of upstream order patterns.
Abstract: A number of strategies for reducing supply chain demand amplification and simultaneously improving customer service levels have been modelled and tested via dynamic simulation. To create an environment in which supply chain re‐design methodologies may be exploited, it is necessary to study the distribution of power and influence at individual echelons within the chain. Outlines current management practice in the electronics products industry and concludes by highlighting the steps needed to enhance total system dynamic performance. The likely benefits are estimated via dynamic simulation of the various phases of re‐engineering an international electronics products supply chain wherein huge improvements are predicted in the damping of upstream order patterns.

157 citations


Journal ArticleDOI
John Fernie1
TL;DR: In this paper, the authors discuss the development of quick response techniques in different parts of the world, notably the UK, USA, continental Europe and Japan, and show that the enabling technologies to implement quick response are in place but success at reducing inventory through the supply chain and in minimizing lead times varies not only from country to country but also between companies in specific countries.
Abstract: Discusses the development of quick response techniques in different parts of the world, notably the UK, USA, continental Europe and Japan. While much of the initial work on quick response focused on the fashion sector of business, deals specifically with grocery markets where arguably quick response should be a part of corporate philosophy. Shows that the enabling technologies to implement quick response are in place but success at reducing inventory through the supply chain and in minimizing lead times varies not only from country to country but also between companies in specific countries. The reasons for such variations include the nature of retailer‐supplier relations, the degree of fragmentation or concentration of retail markets, the extent of retail branding and the distribution “culture” evident in different parts of the world.

102 citations


Journal ArticleDOI
TL;DR: The authors predicts that the purchasing function will have to shed its service and operational perspective and take on the challenge of effective contribution to organizational goals and strategies, and describes how, in this evolution, the make or buy decision and increasing reliance on outsourcing will change the purchasing manager into a manager of integrated operations.
Abstract: Predicts that in the decade ahead, the purchasing function will have to shed its service and operational perspective and take on the challenge of effective contribution to organizational goals and strategies. Describes how, in this evolution, the make or buy decision and increasing reliance on outsourcing will change the purchasing manager into a manager of integrated operations.

82 citations


Journal ArticleDOI
TL;DR: In this article, the authors report on the new German packaging laws and on a survey of firms exporting to Germany, which examines their awareness of and compliance with these laws, and argue that exporters are disadvantaged by such legislation, having to adapt their activities to each country.
Abstract: Environmental issues have become progressively more important during the 1980s and 1990s. With greater concern about the environment, pressure, both formal and informal, has mounted on business. One of the most developed formal constraints has emerged in Germany, with the introduction of packaging laws to reduce packaging and encourage reuse and recycling. Such legislation affects both German companies and companies exporting into Germany. It can be argued that exporters are disadvantaged by such legislation, having to adapt their activities to each country. This presupposes knowledge of the legislation and a willingness and ability to change and embrace the new constraints. Reports on the new German packaging laws and on a survey of firms exporting to Germany, which examines their awareness of and compliance with these laws.

79 citations


Journal ArticleDOI
TL;DR: In this paper, the authors report empirical support for the following propositions: higher levels of buyer-supplier co-operation lead to higher product quality, and lower total costs; high product quality yields lower total cost.
Abstract: While the purchasing literature notes the importance of quality, it reports little empirical study into causes and consequences of supplier product quality. Develops, tests and finds empirical support for the following propositions: higher levels of buyer‐supplier co‐operation lead to higher product quality, and lower total costs; higher product quality yields lower total costs. These results are based on survey responses from over 500 members of the National Association of Purchasing Management (NAPM), who purchase components for manufacturing firms.

76 citations


Journal ArticleDOI
TL;DR: In this paper, the authors examine the interorganizational alliance of a buyer and a supplier with the expressed objective of improving the quality of existing purchased parts and examine the relative importance of each dimension of supplier quality improvement.
Abstract: Examines the interorganizational alliance of a buyer and supplier with the expressed objective of improving the quality of existing purchased parts. Supplier quality can be improved through the implementation of various programmes such as statistical process control (SPC). Supplier quality improvement is viewed as two‐dimensional; there may be improvement owing to the modification of product designs or to implementation of process analysis techniques such as SPC. Examines the relative importance of each dimension of supplier quality improvement. The potential for improvement caused by each type of activity has significant organizational and resource allocation implications for both buyer and supplier.

Journal ArticleDOI
TL;DR: In this paper, the focus has shifted to the cost side of corporate strategy and the emphasis has become more on the cost efficiency, and logistics became a vital part of corporate strategies.
Abstract: Corporate strategy in South Africa traditionally focused on turnover management because of a tough economy. However, the focus has shifted to the cost side. Because of this emphasis on higher cost efficiency, logistics became a vital part of corporate strategy. Looking at a barometer for logistics excellence, it can be seen that logistics in South Africa is still functionally fragmented with a relatively low level of co‐operation in the value chain. Improving this is vital as logistics will be important for future competitiveness.

Journal ArticleDOI
TL;DR: In this article, the authors assesses current levels of computerization within logistics and examines the relationship between computerization and implementation of the integrated logistics concept, identifying significant differences between integrated and non-integrated firms concerning level of computerisation.
Abstract: Fast and flexible low‐cost data processing and information systems have transformed business operations. Reductions in production setup times, lot sizes and inventory levels have yielded substantial improvements in productivity and profitability. The continuing changes sweeping American business impose significant impacts on the distribution (or logistics) function within manufacturing and merchandising firms. This research assesses current levels of computerization within logistics and examines the relationship between computerization and implementation of the integrated logistics concept. Significant differences between integrated and non‐integrated firms concerning levels of computerization are identified. Integrated firms have developed the information support systems necessary to position their organizations for competitive success.

Journal ArticleDOI
TL;DR: In this article, a problem analysis technique is presented to eliminate the problem so that no compromise is necessary, instead of balancing inventory carrying and setup costs, a solution which produces both lower setup costs and lower inventory carrying costs would be sought.
Abstract: Logisticians are trained to identify trade‐offs and to devise compromising solutions which produce the lowest total costs. For example, the economic batch size is a compromise between setup costs and inventory carrying costs. Presents a problem‐analysis technique which helps the analyst to eliminate the problem so that no compromise is necessary. For example, instead of balancing inventory‐carrying costs and setup costs a solution which produces both lower setup costs and lower inventory‐carrying costs would be sought. Discusses a description of the techniques and several examples of its application to logistical problems.

Journal ArticleDOI
TL;DR: In this article, a supplier view of the realities of quick response supply chain partnershipping in the grocery sector is presented, and the factors which determine the level of stock held by manufacturers and retailers and the resulting conflicts which occur in reconciling policies pursued by both parties.
Abstract: Presents a supplier view of the realities of quick response supply chain partnershipping in the grocery sector. Discusses the factors which determine the level of stock held by manufacturers and retailers and the resulting conflicts which occur in reconciling policies pursued by both parties. Asks why manufacturers and retailers want quick response partnerships and what their objectives are.

Journal ArticleDOI
TL;DR: In this paper, the economic trade-offs between the investments in cargo handling and ship propulsion technologies are formally analyzed by taking the round trip frequency as the key to performance, and the theoretical analyses as well as the practical cases studied indicate that investments in Cargo Handling technology, such as automation of container terminal operations and hatchless selfloading ships, have indeed considerable profit-making potential for shipping companies.
Abstract: Conventionally, shipping companies have invested in large ships to achieve economies of scale. More recently, high speed ships have been proposed as a means of achieving timely service for customers and improving shipping performance. Yet another solution offered here is to boost the cargo handling speed at port allowing for a higher number of annual round trips. Both the cost efficiency and timeliness of shipping service can be improved. The economic trade‐offs between the investments in cargo handling and ship propulsion technologies are formally analysed by taking the round trip frequency as the key to performance. The theoretical analyses as well as the practical cases studied indicate that investments in cargo handling technology, such as automation of container terminal operations and hatchless self‐loading ships, have indeed considerable profit‐making potential for shipping companies. Other technology investment opportunities appear less promising: ship propulsion due to energy consumption and envi...

Journal ArticleDOI
TL;DR: In this paper, an integrated decision support system (IDSS) linking world-wide communication and distribution networks among the parent company, its foreign business partners and third-party logisticians is presented.
Abstract: As the globalization of business activities broadens and diversifies logistics operations, many logistics managers have found themselves challenged by extreme complexities and uncertainties. Consequently, planning and control of multinational firms (MNFs) have become onerous due to the multiplicity of international decision environments. Perhaps the most effective way of coping with such challenges is to utilize an integrated decision support system (IDSS) linking world‐wide communication and distribution networks among the parent company, its foreign business partners and third‐party logisticians. In response to such a need, provides important guidelines for the design and development of an integrated DSS that helps the multinational firm centrally to control and co‐ordinate international transfers.

Journal ArticleDOI
TL;DR: In this paper, the authors review the structure, characteristics and problems of food supply logistics in the Russian Republic and other former Soviet states and examine the structural causes of food short-ages.
Abstract: Reviews the structure, characteristics and problems of food supply logistics in the Russian Republic and other former Soviet states. Examines the structural causes of food short‐ages, followed by a description of changes in food supply systems since the introduction of free market policies. The major part of the report is devoted to an analysis of the logistical problems in the food supply chain from food production, through processing, storage and transport.

Journal ArticleDOI
TL;DR: In this paper, a decision-making framework for the design and operation of a wholesaling system is proposed, which considers the new roles of wholesaling and proposes an optimization model to satisfy best the service requirements at the minimum cost.
Abstract: Develops a decision‐making framework for the design and operation of a wholesaling system. Considers the new roles of wholesaling and proposes an optimization model to satisfy best the service requirements at the minimum cost. Using this model, a prototype decision‐support system is developed to build various scenarios and suitable models for these scenarios. A number of management reports are prepared to help managers negotiate prices or volumes, consolidate warehouses, select transport modes, and test the effectiveness of proposed service packages.

Journal ArticleDOI
TL;DR: The authors examines the importance of selection factors in modal choice for international sourcing according to geographic location, primary mode of transport, and job responsibilities, and uses empirical data from a group of regional purchasing managers to facilitate understanding of the nested approach.
Abstract: Most firms have traditionally offered one level of logistics service to all customers. This often results in some customer groups receiving more service than necessary, while other groups receive less service than necessary. The emerging concept of logistical segmentation suggests that companies can structure their logistical offerings to meet the needs and requirements of different customer groups. Uses the “nested” approach from industrial marketing to illustrate an application of logistical segmentation. More specifically, examines the importance of selection factors in modal choice for international sourcing according to geographic location, primary mode of transport, and job responsibilities. Uses empirical data from a group of regional purchasing managers to facilitate understanding of the nested approach.

Journal ArticleDOI
TL;DR: In this paper, the authors look at strategic logistics management and technology strategies for manufacturing and groups the contents under four main headings: logistical future; information challenge; 21st century manufacturing;21st century service industries.
Abstract: Looks at strategic logistics management and technology strategies for manufacturing and groups the contents under four main headings: logistical future; information challenge; 21st century manufacturing; 21st century service industries. Aims to look at the many challenges facing logistics practitioners and researchers.

Journal ArticleDOI
TL;DR: In this paper, the authors present the current situation for logistics in Bulgaria and discuss the prospects for applying logistics concepts with respect to the economic environment for privatization and investment, concluding with some cautions concerning the issue of transferring logistics knowledge in Bulgaria.
Abstract: Examines the current situation for logistics in Bulgaria. Reviews the prospects for applying logistics concepts with respect to the economic environment for privatization and investment. Presents the findings. Concludes with some cautions concerning the issue of transferring logistics knowledge in Bulgaria.

Journal ArticleDOI
TL;DR: In this article, the dimensions of service in the co-operative buyer-supplier interaction are analyzed and an interpretative scheme which links some of the basic service management concepts with some critical aspects in the current supply environment is presented.
Abstract: Analyses the dimensions of service in the co‐operative buyer‐supplier interaction and presents an interpretative scheme which links some of the basic service management concepts with some critical aspects in the current supply environment. On the basis of the results from a case study of the Zanussi Appliances Company (Electrolux Group), examines the dimensions of service in the co‐operative buyer‐supplier relationship. Discusses the main organizational and operational implications.

Journal ArticleDOI
TL;DR: Regression model results support the hypothesized relationships between the model components and the JIT waste‐elimination goal and empirically test and attempt to validate a previously developed basic functional model of JIT.
Abstract: It has been proposed that the just‐in‐time (JIT) philosophy can be effectively integrated systemwide to yield increased efficiencies and excellence throughout an organization. Greater understanding is needed as to what this entails. The researchers empirically test and attempt to validate a previously developed basic functional model of JIT comprising three components – respect for people in the system, the execution system and planning process prerequisites – needed to support JIT′s goal of elimination of waste through a process of continual improvement. Regression model results support the hypothesized relationships between the model components and the JIT waste‐elimination goal.

Journal ArticleDOI
TL;DR: The Concise Dictionary of Business Logistics (CDL) as mentioned in this paper is the first Russian-language glossary, in which 1,000 terms are defined, and it is used in the Russian Federal Purchasing System (FPS).
Abstract: Presents a history of logistical planning in the USSR and Russia from 1920‐1992. Describes in detail the functions of the centralized distribution system created in the course of Brezhnev‐Kosygin reforms (1965) and dismantled in 1991; a chronology of changes in distribution of producer goods in 1991‐1992 and explains why the newest are less effective than the dismantled distribution systems. Analyses some of the most important aspects of the Federal purchasing system which is being created in Russia (since October 1992). The core of this system will be two joint‐stock purchasing companies (Roskontrakt and Roskhlebo‐produkt) established as state‐owned agencies. The Concise Dictionary of Business Logistics (out of print in Moscow in 1994) is presented – the first Russian‐language logistical glossary, in which 1,000 terms are defined.

Journal ArticleDOI
TL;DR: An in‐depth case study of the practical experience of applying interactive vehicle routeing and scheduling software at a major brewing company in the United Kingdom (UK).
Abstract: Presents an in‐depth case study of the practical experience of applying interactive vehicle routeing and scheduling software at a major brewing company in the United Kingdom (UK). Illustrates the use of the software at all levels of transport planning and addresses strategic, tactical and operational issues; comprises a review of the software′s overall implementation and its consequences within the organization. Special attention is given to the critical analysis of both quantitative and qualitative benefits, as well as organizational problems arising from the use of such software.

Journal ArticleDOI
TL;DR: In this paper, the specific characteristics of these projects and how the unique nature of the work affects the function performed by today′s purchasing professionals are discussed and several alternative strategies for purchasing restoration services.
Abstract: The field of environmental restoration is unique and highly complex. The purchasing function will be responsible for acquiring the restoration services for much of America′s estimated $500 billion clean‐up. Examines the specific characteristics of these projects and discusses how the unique nature of the work affects the function performed by today′s purchasing professionals. The scope and complexity of the purchasing job is vastly increased, requiring extensive teamwork and the development of dynamic and flexible purchasing strategies to handle the increased complexity and uncertainty at contaminated sites. Examines several alternative strategies for purchasing restoration services. No one strategy will fit every restoration project. The specific characteristics and unique nature of each project, and their effects on the purchasing job, must be considered in order to develop a well co‐ordinated and innovative purchasing strategy.

Journal ArticleDOI
TL;DR: In this article, a two-step model is proposed for assessing individual influence in organizational purchasing decisions made by buying centres. But, the model is not suitable for the assessment of influence as it is manifested in buying centre decision making.
Abstract: Explores antecedents of individual influence in organizational purchasing decisions made by buying centres. Proposes a two‐step model whereby individual influence is a function of decision‐specific variables such as expertise, interest and personal stake in the decision. The decision‐specific variables are affected, in turn, by demographic characteristics and psychological traits of the individual. Proposes a new method which improves on past research; this method allows for the assessment of influence as it is manifested in buying centre decision making. The two‐step model is generally supported based on the path analysis results.

Journal ArticleDOI
TL;DR: In this paper, the authors examine the difficulties arising from the transition from state-run to market systems by examining the restructuring, privatization and deregulation issues of transport in Poland and conclude that research and education must be initiated immediately in order to help formulate properly a transport policy that will provide for an optimum national logistical system.
Abstract: Economies of former Soviet bloc countries are being radically changed from state‐run to market systems. One of the major impacts of such change is on the core logistical component of transport. Transport enterprises and their clients are attempting to adjust to the rules of a market economy. Attempts to delineate the difficulties arising from such transition by examining the restructuring, privatization and deregulation issues of transport in Poland. Examines specifically forms of ownership, privatization regulation, Government passenger carriers and international road transport. Concludes that research and education must be initiated immediately in order to help formulate properly a transport policy that will provide for an optimum national logistical system.

Journal ArticleDOI
TL;DR: In this paper, the authors examined the Japanese food distribution channel structure with special emphasis on food wholesalers and food retailers, and compared these two areas with the comparable US functions.
Abstract: Examines the Japanese food distribution channel structure with special emphasis on food wholesalers and food retailers. Contrasts these two areas with the comparable US functions. Reviews channel inefficiencies in Japan with attention to historical development, regulations, consumer attitudes and food shopping behaviour, transportation and logistics, transportation alternatives, consolidation and new developments, distribution centres and information processing. Presents key issues for Japanese logistics in the future.