Showing papers in "International Journal of Physical Distribution & Logistics Management in 2006"

A content analysis of research approaches in logistics research

Abstract: Purpose – Based on a framework developed by Kovacs and Spens, this paper seeks to assess the use of the three different research approaches in logistics research; discuss the use of different research methods within the three research approaches; find and discuss applications of the abductive research approach to logistics problems.Design/methodology/approach – Content analysis is used in order to categorize the different research approaches. While content analysis commonly uses smaller units such as paragraphs, sentences, words or characters, this study used entire articles as the unit of analysis. The scope of the review encompassed five years (1998‐2002) of articles in IJLM, IJPDLM and JBL. A total of 378 articles was reviewed and categorized.Findings – The findings of the study corroborate earlier studies regarding the main research approach used in logistics. Published logistics research is hypothetico‐deductive, with a strong emphasis on using survey methods. Nevertheless, inductive as well as abduc...

Managing product returns for reverse logistics

Abstract: Purpose – The purpose of this paper is to present a framework to manage product returns for reverse logistics by focusing on estimation of returns for select categories of products in the Indian context.Design/methodology/approach – The paper develops a conceptual model and thereafter an integrated modeling framework borrowing from existing literature and industry practices. It utilizes product ownership data, average life cycle of products, past sales, forecasted demand and likely impact of environmental policy measures for estimating return flows. Informal interviews with 84 stakeholders are carried out to estimate significant parameters. Software packages, decomposition methods and heuristics are utilized for solution.Findings – The integrated framework helps in estimating returns for select categories of products and thereafter taking simultaneous decisions on their disposition, location and capacity of facilities and flows of returned products for a given time horizon under various strategic, operati...

Buyer‐supplier relationships: The impact of supplier selection and buyer‐supplier engagement on relationship and firm performance

Abstract: Purpose – To analyze the impact of supplier selection and buyer‐supplier engagement on the performance benefits attributable to buyer‐supplier relationships, and the effect of these benefits on broader measures of buyer performance.Design/methodology/approach – Analysis is conducted using a structural equation model using survey data.Findings – Results demonstrate the positive influence of engagement and supplier selection on relationship performance. They also demonstrate that the success of the relationship directly and positively affects buyer performance.Research limitations/implications – Additional analysis is required to examine whether the results hold for specific industry or purchase scenarios, and to identify other dimensions of the constructs of interest.Practical implications – Buyers should pay attention to selecting the right suppliers and developing the infrastructure that will enable successful buyer‐supplier relationships.Originality/value – The paper provides empirical evidence of the i...

Collaborative logistics management and the role of third‐party service providers

Abstract: Purpose – This paper aims to derive and verify a collaborative framework that specifies the role of different parties in contemporary logistics setups. Methodology/Approach – To prepare this paper, a study of the logistics literature has been conducted together with several case studies. The empirical evidence has been collected in Europe as well as in the US. Different aspects of collaboration between organizations in logistics setups have been studied where the services and the activities have been analyzed to understand the characteristics of the role of third-party service providers. Findings – The results from the work cluster the different third-party service providers in three different groups: Carriers, Logistics Service Providers and Logistics Service Intermediaries. All of these parties have different roles and provide various services in outsourced logistics setups. A Collaborative Logistics Management (CLM) model has been derived that embraces the role of the different parties, the information and material flows between them, the interface attributes and the information systems architecture. In this paper, a focus is mainly on the part of the model that reveals the role of the third-party service providers. Practical implications – The practical implications of the work has its foundation in that activities, performed by two parties, can be adapted to each other so that their combined efficiency is improved. The CLM model can be applied when designing and negotiating third-party services for specific logistics assignments. Originality/value – The paper offers a model of logistics collaboration between the different parties in contemporary, outsourced logistics setups.

A balanced approach to building agile supply chains

Abstract: Purpose – Parallel developments in the areas of agile systems and manufacturing, and supply chain management led to the introduction of the agile supply chains (ASC) concept How to achieve agility in supply chain is, however, a subject of question and research This paper proposes a framework for the development of ASC that is based on the integration of existing supply chain analysis and development models and techniques with those of the supply chain design (SCD) and also the design for the supply chain (DfSC)Design/methodology/approach – The framework mainly relies on research previously carried out by the authors in the areas of developing agile manufacturing and systems and models for demand network alignment An extensive literature survey is carried out to support the ideas and derive the constructs of the conceptual model as a basis for further empirical researchFindings – The model suggest that responding proactively to the market and business environment changes, agility, can be facilitated b

The effects of technology and TQM on the performance of logistics companies

Abstract: Purpose – Total quality management (TQM) and technology are fast becoming essential features of business strategy for the success of many leading organizations in the world. More and more companies are using technology and adapting TQM for sustaining competitiveness in the marketplace. TQM works well for internal integration of logistics companies and they can benefit from the use of technology, including information technology (IT), to gain further internal and external integration. Seeks to examine this issue.Design/methodology/approach – This research examines the relationship between quality management practices, technology and performances of the logistics companies. The study seeks to gain insights from organizational variables and their effect on operational, quality, technology and overall business performance.Findings – TQM and technology play important and complementing roles in improving the performance. The analysis shows that both high technology firms and high technology TQM firms perform si...

Drivers and obstacles of outsourcing practices in China

Abstract: Purpose – To explore the key factors that motivate organizations in China to outsource and the obstacles these companies are facing in comparison with the situation in Western developed countries.Design/methodology/approach – A case study approach was adopted with primary data collected through in‐depth interviews with six companies in China and secondary data aggregated from company reports and documents. Research findings were analyzed within and across all case studies to identify key drivers and obstacles of outsourcing.Findings – Economic factor is a strong motivation for outsourcing in China, of which cost reduction, cost saving, and capital investment reduction are the main concerns. Strategic considerations, such as the use of outsourcing to accelerate re‐engineering benefits, to focus on core competence, to increase flexibility, and to facilitate market penetration, are identified. Environmental factors like information technology (IT) development and capability of supplier can influence organiza...

Organizational commitment and governance for supply chain success

Abstract: Purpose – To examine the nature and extent of commitment to supply chain collaboration Also, to explore the state of supply chain governance structuresDesign/methodology/approach – A multi‐method survey and in‐depth interview methodology was employed to gather data Content analysis was then used to identify the types and extent of managerial support for supply chain initiativesFindings – Four types of managerial support are needed to achieve the highest levels of supply chain success: top management support, broad‐based functional support, channel support, and infrastructural/governance support None of the interview companies have put all four types of support in place Leading‐edge governance relies on cross‐functional/inter‐organizational teams, executive governance councils, customer advisory boards, supplier advisory councils and a modified reporting structure that overseas all value‐added activities from product conceptualization to customer relationship management Again, none of the interview

RFID: from concept to implementation

Abstract: Purpose – The purpose of this paper is to present a comprehensive overview of radio frequency identification (RFID) technology. The goal is to provide insights regarding the implementation and use of RFID by focusing on its advantages and its problems.Design/methodology/approach – The paper discusses, what RFID is, how its parts fit; what role management plays in its implementation, and where the pitfalls are.Findings – RFID is discussed as the latest technology to help manage the logistics and inventory problems faced by all companies. Not only has RFID been shown to provide benefits for the firm in its internal operations; its greatest contribution lies in its ability to improve information and materials flows throughout the entire supply chain. With RFID technology visibility in materials flow (from raw material to finished goods) among all supply chain members is improved and the accuracy of the information shared is greatly enhanced. Equally important is the role played by RFID in the development of ...

Competing in the 21st century supply chain through supply chain management and enterprise resource planning integration

Abstract: Purpose – To investigate the integration of supply chain management (SCM) and enterprise resource planning (ERP) systems for competing in the twenty‐first century supply chain.Design/methodology/approach – A case study with a paper manufacturing company in China is conducted. Primary data is collected through interviews with managers of the company. The reengineering activities and processes, and the soft issues of supplier relationship are examined.Findings – Breaking the traditional decentralised system and introducing the concept of a single, integrated plan, which a company could work together with their suppliers has led to cost reduction, lead‐time reduction, improved visibility, reduced time to market, and increased efficiency in the company.Research limitations/implications – This research is based on a single case study in process manufacturing industry in China, which perhaps limits its usefulness elsewhere.Practical implications – One should not rely solely on ERP systems for managing their sup...

3PL practices: an Indian perspective

Abstract: Purpose – To carry out a comprehensive survey on 3PL practices in India and to establish the impact of usage of third party logistics services on business results.Design/methodology/approach – Begins by analysing the studies carried out on 3PL practices and establishing a research framework. The input variables to the research framework depict the organization‐specific characteristics, such as the extent of usage of 3PL services, the reasons for outsourcing and the impact of the usage of 3PL services. The output function of future usage of 3PL services is influenced by the three input variables. Data collected through survey questionnaire on the input and output variables are used to establish impact of usage of 3PL services on business performance through statistical analysis.Findings – The usage of 3PL services reveals positive and significant impact on business performance though 3PL practices are still at a nascent stage in India. Additionally, results clearly indicate that significant increase in out...

The potential for reducing empty running by trucks: a retrospective analysis

Abstract: Purpose – The aim is to examine the recent trend in empty running by trucks in the UK and assesses the potential for a further reduction in empty running in the food supply chain using a new technique.Design/methodology/approach – Data from the UK Government's main road freight survey and other studies are used to investigate the causes of the decline in empty running. Previous attempts to quantify opportunities for backloading are reviewed. The 2002 KPI Survey in the UK food supply chain created a large multi‐fleet database of over 20,000 trips, which permitted retrospective analysis of backloading opportunities. A method was devised to screen these opportunities against four selection criteria and assess the overall potential for cutting empty truck‐kms.Findings – Suitable backloads were found for only 2.4 per cent of the empty journey legs, representing 2 per cent of empty truck‐kms. The analysis highlights the operational constraints on backloading in a sector characterised by short average trip lengt...

A conceptual model for quality of service in the supply chain

Abstract: Purpose – The objective of this paper is to propose a model for assessing the quality of service at various interfaces of supply chain using third party logistics.Design/methodology/approach – Based on a rich combination of extensive literature review and insights gained through exploratory interviews, gap analysis methodology is used in developing the model. This was followed by an in‐depth analysis of gaps at various interfaces in supply chain. Further, both qualitative and quantitative techniques are suggested for data collection and analysis.Findings – The key gaps in both the directions (forward and reverse) that are likely to affect the service quality at different levels are extensively defined. These gaps may exist between a 3PL service provider and the manufacturer, the marketing function and the 3PL service provider, etc. The paper also proposes frameworks such as data envelopment analysis for measurement of these gaps. A set of possible performance indicators is also proposed at various interfa...

Linking financial performance to strategic orientation and operational priorities: An empirical study of third‐party logistics providers

Abstract: Purpose – Aims to investigates the relationship of strategic choices of pure cost‐, pure differentiation‐, or a combination‐strategy on a composite measure of financial performance for third‐party logistics (3PL) providers in Hong Kong In addition, it seeks to identify the importance of operations priorities underlying the respective adopted strategy, as well as the importance given to future competitive challenges for each strategyDesign/methodology/approach – Uses cluster analysis, ANOVAFindings – Logistics service providers classified to follow different strategies report different financial performance, with companies adhering to the combined strategy of cost and differentiation performing best, followed by pure differentiation companies, which in turn outperform pure cost‐, commodity driven‐companiesResearch limitations/implications – Future research may be widened to include customer, and not solely competitor, perceptions Further studies could elaborate on technology adoption, information shar

Logistics integration processes in the food industry

Abstract: Purpose – This paper sets out to empirically analyse the integration process that firms follow to implement supply chain management (SCM). This study has been inspired by the integration model proposed by Stevens.Design/methodology/approach – Uses the survey method.Findings – The results show that there are companies in three different integration stages. In stage I, companies are not integrated. In stage II, companies have a medium‐high level of internal integration in the logistics‐production interface, a low level of internal integration in the logistics‐marketing interface, and a medium level of external integration. And, in stage III, companies have high levels of integration in both internal interfaces and in some of their supply chain relationships.Research limitations/implications – First, only one side of the manufacturer‐retailer relationship was considered, and, second, there was a reduced number of cases in each cluster.Practical implications – As firms' survival lies on integration, a good un...

The role of 4PL as the reverse logistics integrator

Abstract: Purpose – An effective return policy is used as an important competitive weapon in the marketplace to substantially influence product sales. However, return policy is also seen as a problem for all parties in the supply chain due to the headache in processing returned merchandise. While retailers are efficient in selling, they do not usually have the expertise in handling the reverse flow. The purpose of this paper is to propose the use of a fourth party logistics (4PL) as a return service provider, and develops optimal decision policies for both the seller and the 4PL.Design/methodology/approach – A profit‐maximization model is presented to jointly obtain optimal policies for the seller and the 4PL through the use of Stackelberg like game theory, where the seller acts as the leader and the 4PL acts as the follower.Findings – Optimal values for the seller's and the 4PL's decisions are presented. Conditions under which profits for the seller and 4PL both increase are shown.Practical implications – This pap...

Dynamics of relationship governance in TPL arrangements – a dyadic perspective

Abstract: Purpose – To improve the understanding of the inter‐organizational dynamics of the dyadic relationships between a buyer and provider of logistics services (TPL dyads).Design/methodology/approach – Analyzes the preparation, implementation, and operation of a particular case of third party logistics (TPL) arrangements. Based on a single case study of a dyadic relationship, the paper confronts the static view of the transaction cost approach and the agency theory on “governance structures” and “contracts” by showing how “relationship governance” emerges and develops over time.Findings – TPL dyads are subject to both controllable and non‐controllable forces of change, which may not always have a positive effect on the logistics performance or the relationship itself. Inter‐organizational dynamics not only relate to learning, competence development, or adaptation, as suggested by other studies, but also to how the dyadic relationships are governed. As the dyad accumulates experience over time, changes will occ...

Clusters and supply chain management: the Amish experience

Abstract: Purpose – To demonstrate the linkage between Porter's cluster theory and supply chain management, and provide evidence of their potential joint positive impact on competitiveness and firm performance.Design/methodology/approach – The paper examines the linkage between cluster theory and supply chain management using data from a case study of the Amish furniture industry in Homes County, Ohio, USA.Findings – Using the Amish furniture industry and a representative furniture firm as examples, the paper shows the positive impact of operating within an integrated supply chain in a geographically concentrated cluster.Research limitations/implications – Use of a single case study approach limits the generalizability of the findings; the paper recommends further study of linkages in other industries and locations.Practical implications – The study suggests that firms build competitive advantage by initially focusing primarily on local resources when selecting supply chain partners, rather than looking only for lo...

Understanding collaborative supply chain relationships through the application of the Williamson organisational failure framework

Abstract: Purpose – Within the supply chain the need for much closer, long‐term relationships is increasing due to supplier rationalisation and globalisation and more information about these interactions is required. The research specifically tested the well‐accepted Williamson's economic organisations failure framework as a theoretical model through which long‐term collaborative relationships can be viewed.Design/methodology/approach – An exploratory research project was designed and carried out on a self‐selected census of 54 monopolistic relationships representing £575.8 m annual spend on equipment and associated services within the UK defence procurement organisation (a 10 per cent sample). Its aims were to understand the relationship dynamics within long‐term, sustained monopolies and to determine if generic success factors could be found to assist managers to break out of the essentially negative situation. A triangulated data capture approach was employed using both quantitative and qualitative methods from ...

Strategic postures of third‐party logistics providers in mainland China

Abstract: Purpose – To examine the strategic posture of third‐party logistics (3PLs) providers in mainland China.Design/methodology/approach – A sample survey, obtained by mail, of 3PLs firms in mainland China. Key informant data are used to operationalize Porter's competitive strategy and provides a framework to identify logistics strategies pursued by 3PLs providers. Various aspects of 3PLs providers are compared by different strategy types.Findings – Identified four logistics strategies pursued by 3PLs providers in mainland China. Differentiation strategy outperforms cost leadership strategy. Companies pursuing cost leadership are shifting towards differentiation strategy to cope with the intense competition faced in mainland China's immense logistics markets.Research limitations/implications – Bias may exist due to the mail survey. In‐depth studies on strategy formulation of 3PLs providers could be carried out to examine what factors influence the strategy formulation and explore the strategy evolution path.Pra...

Supply chain management – back to the future?

Abstract: Purpose – Distribution arrangements are becoming increasingly complex and dynamic in business as well as in consumer markets. The purpose of the present paper is to explore and discuss the theoretical frameworks available to interpret these distribution arrangements, to uncover how they are interrelated and to suggest extensions.Design/methodology/approach – A survey of extant research is undertaken, starting with the literature on supply chain management (SCM). It turns out that prior to the launch of the SCM concept in the early 1980s, two separate research streams coexisted which both pertain to aspects of distribution. These two research streams are described and traced back to a common root.Findings – It is suggested that SCM may be regarded as an attempt to unite the two separate research streams known as business logistics and marketing channels, respectively. These two approaches have focused on different aspects of distribution arrangements, but both are preoccupied with managerial challenges fac...

Plan for supply chain agility at Nokia

Abstract: Purpose – The purpose of this paper is to describe how demand planning can increase agility in supply chains. The paper builds on a case study from mobile infrastructure industry with explicit focus on project business environment.Design/methodology/approach – The paper contains a short theoretical review on supply chain agility, different planning and forecasting concepts and explores the linkages between them. Empiric evidence is collected from Nokia Networks as a case study. Main lessons are primarily taken from integrated project management program that is to implement a truly customer‐focused delivery process in the case company.Findings – Suppliers should pay more attention on effectively utilizing customer's project plans for aligning their supply chain. Supply chain agility does not just happen but requires continuous planning.Practical implications – Common project planning is the most natural way for customers to share future demand information between the supply chain players. Instead separate ...

A comparative study on the use of third party logistics services by Singaporean and Malaysian firms

Abstract: Purpose – The aim of this research is to undertake a comparative analysis on the use of third party logistics (3PL) services by manufacturing firms in Singapore and Malaysia.Design/methodology/approach – This study is based on a questionnaire survey conducted in Singapore and Malaysia in 1998 and 2000, respectively. The paper addresses key issues relating to the extent of usage of 3PL services, specific contract logistics services used, benefits for the user firms, obstacles encountered in implementing contract logistics relationships, impact of the use of contract logistics services on logistics costs, customer satisfaction, and employees of the user firms and the future plans of current users of contract logistics services.Findings – Analysis shows that there are similarities on the use of contract logistics services in Singapore and Malaysia. These include the proportion of firms utilising contract logistics, the extent of involvement of functional managers, budget allocation and activities outsourced....

Reverse logistics in the publishing industry: China, Hong Kong, and Taiwan

Abstract: Purpose – This paper compares the characteristics of reverse logistics in the publishing industry among China, Hong Kong, and Taiwan.Design/methodology/approach – A multiple‐case approach in combination with EIQ (entry of order, items, and quantity) analysis is selected to allow analytical generalization of the findings.Findings – The research findings show that the reverse logistics of Chinese publications is still in early stage and is not mature enough to be interconnected in China, Hong Kong, and Taiwan. The reverse logistics cost in these areas is unlikely to be significantly reduced in the near future.Practical implications – Instead of making effort to process returned goods, logistics firms or publishers may consider discarding the returned goods directly. The loss on material cost is far less than the manpower spent on processing. Also, publishers can sort returned goods in off‐peak season to save cost on reverse logistics.Originality/value – This research provides the first empirical study by ap...

A supply chain study of technology trust and antecedents to technology internalization consequences

Abstract: Purpose – User uncertainty and risk are inherent in any technology adoption due to the perceived long‐term consequences (LTC) associated with the internalization process. This study seeks to investigate antecedents of technology trust (TT) and perceived LTC associated with using a technology in order to understand the underlying attitudes and beliefs influencing supply chain members' trust in a specific information technology (IT).Design/methodology/approach – A theoretical model was tested through a survey of 449 supply chain members using an IT innovation for part‐level visibility along the entire first‐tier of a major US automotive supply chain.Findings – Empirical results confirm the basic structure of the model, including the role of TT impacting users' perceptions of LTC relative to internalizing the technology. Results also identify several uncertainty reducing antecedents of TT and perceived LTC including satisfaction with the existing system, task‐technology fit, and prior similar experiences.Res...

Interacting standards: a basic element in logistics networks

Abstract: Purpose – Logisticians have always viewed standards as solutions for improving operational compatibility and coordination. This paper aims to contribute to a greater understanding of how standards, upon which logistics systems are designed, developed and coordinated, interact with each other and with other resources in a logistics network for the purpose of improving efficiency and effectiveness.Design/methodology/approach – The literature review permits: defining standards as a coordination mechanism focusing on development, use and evolution of interconnected standards; pointing out the importance of standards for logistics efficiency and effectiveness; and analysis of interrelatedness referring to increasing returns, basic technology and dominant design. The empirical evidence is based on a meta‐case from the automobile industry with information collected from nine case studies based on observations, documents, drafts of standards and interviews.Findings – The case study illustrates major points in pri...

Partnering motives and partner selection: Case studies of Finnish distributor relationships in China

Abstract: Purpose – To study the motives for partnership in marketing channels and provide an empirical study on mutual selection between manufacturers and distributors.Design/methodology/approach – The data were collected mainly from the interviews which present the perspectives of both the Finnish manufacturers and Chinese distributors and agents.Findings – Based on the empirical study, the new finding is that task‐related and partner‐related dimensions in partner selection of international joint ventures also apply to distributor relationship. We argue that a distributor relationship is a product‐tied relationship, and product innovation can be used as an approach for performance improvement in distributor relationship.Research limitations/implications – The study consists of four case companies so the result cannot be of general application. Nevertheless, it provides valuable information for further utilization.Practical implications – The study provides empirical evidence of the motives of partnership and mutu...

Optimization model for a livestock collection problem

Abstract: Purpose – The value chain of the Norwegian meat production industry has recently been through major structural changes resulting in increased flows and transportation needs at all levels. The purpose of this paper is to present results of the initial stage of a five‐year research project between the Norwegian Meat Research Centre, Norwegian meat companies and Molde University College. The main goal of the project is to develop a decision support system for the transport of live animals to a slaughterhouse to reduce transportation costs while maintaining high level of livestock welfare and meat quality, as these are three main factors for the profitability of both farmers and industry.Design/methodology/approach – The paper presents a mixed integer programming model that combines vehicle routing and inventory control. We introduce the possibility for multiple routes for a given vehicle on a given day in a multiple‐period planning perspective. Arrival times of the loaded vehicles to the slaughterhouse are c...

On assessing the sensitivity to uncertainty in distribution network design

Abstract: Purpose – The design of distribution networks is prone to risks due to the uncertainties associated with factors that change over time. The purpose of this paper is to present a new method to identify those factors that the structure of a distribution network is most sensitive to. Design/methodology/approach – A new method presented in this paper combines simulation and the Taguchi technique to allow a wide range of factor uncertainties to be evaluated without excessive computation time and effort. The simulation model developed is based on real world data of a European after-sales business in the automotive industry. Findings – The optimum design is most at risk due to the uncertainties associated with stock holding costs and delivery frequencies rather than customer volume changes and transport tariffs. This was found to be counterintuitive by the business managers and fore-warned them of the likely future risks. Practical implications – The analysis indicates that when developing the network a careful consideration has to be given to reliably estimating the inventory holding costs and the mechanism for determining the capital holding charge. The model is sensitive to these variables and hence a company is prone to higher risk of designing the wrong network if these variables are incorrectly estimated. Furthermore, the analysis suggests that higher customer expectations on delivery frequency have an impact on total logistics costs and therefore, companies should consider charging customers different rates for different levels of customer service. Originality/value – A useful generic method has been presented in this paper for investigating the sensitivity of a scenario. This novel approach combines the use of simulation, brainstorming, Taguchi technique and ANOVA with distribution design modelling.

The impact of various levels of collaborative engagement on global and individual supply chain performance

Abstract: Purpose – Most collaborative SCM research has focused on the ideal situation of a manufacturer engaging with all its downstream partners. In view of extensive entry costs, lack of trust or simply non‐suitability of electronic data processing systems this, however, provides only limited support to actual problems of many companies. The paper seeks to investigate various common supply chain performance measures to show what impact increasing adoption of collaborative replenishment between manufacturer and several major customers has on each market participant.Design/methodology/approach – The study uses discrete event simulation to evaluate various adjustments within the distribution frameworks of two food‐manufacturers and their major customers.Findings – The analysis suggests that manufacturer and customers can substantially benefit from even a partial increase in demand visibility. This nevertheless can be costly since favouring some customers due to sharing a collaborative replenishment system, while ot...