Showing papers in "Journal of Business Logistics in 2009"

Supply chain process integration: a theoretical framework

Abstract: The current study was undertaken to further understanding of supply chain process integration. It is suggested that supply chain integration, the practice of realigning firms' operating structures, should be understood from an internal-external perspective and a process view. Drawing upon four theories—Strategy-Structure-Performance framework, the resource based view of the firm, transaction cost economics, and social network analysis—and combining industry inputs, a theoretical framework of supply chain process integration is developed. It is argued that a firm's strategic priorities are key factors of supply chain process integration. Superior performance is likely to be achieved when necessary supply chain capabilities are developed through supply chain process integration.

The last mile challenge: evaluating the effects of customer density and delivery window patterns

Abstract: The last 10 years have seen an explosion of consumer direct businesses such as grocery, office supply, package and pharmaceutical delivery. Examples of businesses with consumer direct delivery include grocers such as Freshdirect and Ocado (Delaney-Klinger, Boyer, and Frohlich 2003), office supply retailers such as Office Depot, Staples and Office Max (all of which are in the top 10 Internet retailing business ranked by sales (Love and Peters 2006) and package delivery companies such as FedEx, UPS, Airborne and Deutsche Post. To illustrate, FedEx ground delivers over $5 billion in sales per year in business-to-business packages, with FedEx Home Delivery providing ground-based delivery services to residences. While FedEx does not break out the volume of home delivery versus business delivery packages, it does note in recent financial results (March 27, 2007) that growth in the home delivery segment is stronger than overall growth of 9% in ground delivery. The operational challenges underlying consumer direct delivery are daunting. Numerous companies have failed due to operational and logistical problems encountered with delivering orders directly to customers. The fulfillment process for consumer direct orders can be broadly characterized as consisting of three stages (Campbell and Savelsbergh 2005; Delaney-Klinger, Boyer, and Frohlich 2003): (1) order acceptance, (2) order selection and fulfillment and (3) order delivery. Each of these stages is critical to providing excellent customer service at a cost the customer is willing to pay. The focus in this study is on the third stage—order delivery. The delivery of the final product to the customer’s door is logistically challenging due to a number of factors and potentially very expensive (costs for a single delivery of groceries run between $10 and $20 per order according to Boyer, Frohlich, and Hult 2004). There has been substantial research on how to route and schedule vehicles from an algorithmic point of view toward solving a particular problem. What is not clear is the shape of the efficiency curve and the interaction of two key factors affecting routing efficiency: customer density and delivery window length. In other words, what is the relative change in efficiency/cost as customer density increases or delivery windows are lengthened? This is a problem of critical importance to customer direct businesses. The spectacular collapse of Webvan, the online grocer that went bankrupt after reaching a market capitalization of over $5 billion while only producing sales of less than $400 million, was partly tied to its promise of delivery within a pre-specified window of 30 minutes. While this was great from a customer perspective, it proved to be a huge logistical challenge and cost (Boyer, Frohlich, and Hult

An analysis of supply chain collaborations and their effect on performance outcomes

Abstract: This research examined how operational outcomes, relational outcomes and business performance are affected by a collaboration project between buyers and suppliers in a supply chain. It is hypothesized that interdependence of knowledge and process, supply chain partner insight, and the level of collaboration between the firms affect the outcomes of a collaboration project. Survey data from buyers and suppliers from a wide range of industries and organizations were used in this analysis. Among these participants, higher levels of collaboration led to improvements in operational and relational outcomes, which together led to improvements in asset utilization, competitive position, organizational performance, and profitability.

Defining and operationalizing supply chain process integration

Abstract: Integration has been recognized as critical to successful supply chain management. However, an extensive literature review revealed no consensus in its conceptualization. The current study attempts to address this research gap by providing a better definition and operationalization of supply chain process integration. With empirical support, it is proposed that internal and external supply chain process integration should be treated as two separate constructs, each comprised of two dimensions: connectivity and simplification.

Product returns processing: an examination of practices of manufacturers, wholesalers/distributors, and retailers

Abstract: Few research studies have published specific empirical data regarding the reverse logistics practices of companies. This multi-stage study employed interviews, site visits, and a mail survey to collect responses from 230 members of the Warehousing Education and Research Council (WERC) regarding their reverse logistics practices. Results suggest that in spite of the growing importance of reverse logistics, few executives have product return processing as their primary responsibility and often undertake this activity along with other job responsibilities. Most firms handle the product returns process themselves and typically within the same facilities that handle forward logistics. Returning items directly to stock, repackaging and returning to stock, and selling as scrap, were the three top disposition options employed by firms. Results indicate that, contrary to general understanding, the majority of retailers and wholesalers reported a recovery rate of over 75% of product cost. Several hypotheses developed from the published literature on reverse logistics were tested. In many instances, these hypotheses were formulated on anecdotal information or single case studies and had not been empirically tested prior to this research being conducted.

A refined view of grounded theory and its application to logistics research

Abstract: Logistics research with an objective to construct theory and develop deeper insights into logistics social phenomena and test those theories relies on both qualitative and quantitative methods. Grounded theory is one powerful qualitative research tradition for the theory building objective, yet it is also one that is often misunderstood and misapplied. The result of this misunderstanding can, and has in other disciplines such as marketing and management, resulted in weaker grounded theory studies than ought to be and research claiming to emerge from grounded theory but does not. The article offers a review of the foundations of grounded theory and insights to important aspects of two similar, but different, approaches to grounded theory that most researchers ignore, but are critical for researchers to understand. We argue that (1) logistics needs more qualitative research, (2) grounded theory offers the potential for a unique and specific kind of insight as compared to other traditions, (3) thus specific tenants of grounded theory must be followed, anything does not go, and finally (4) being specific in the application of grounded theory means knowing the differences between the Glaser and Straus views and understanding that a choice must be made as to how to proceed with grounded theory research based on that knowledge.

Responding to Disruptions in the Supply Network – From Dormant to Action

Abstract: Managing risks in supply networks is a complex task; the more so in those supply networks the core competence of which lies in dealing with natural disasters, complex emergencies, and large-scale attacks-namely those of humanitarian, and military organisations where the price of failure can be counted in terms of the loss of life rather than, simply, reduced profits. This conceptual article examines the capabilities of these supply networks to manage such disruptions, based on their resource configuration in a dormant preparation state. The article concludes by presenting how different types of supply networks can manage large-scale disruptions.

Marketing/logistics relationships: influence on capabilities and performance

Abstract: Effective marketing/logistics relationships can help to create, develop, and maintain critical capabilities to support long-term firm success. Recent research focuses on two distinct capabilities—information capabilities and firm-wide integration. Empirical results are provided confirming the proposed relationship between marketing logistics relationship effectiveness and the two capabilities. Further, the capabilities are shown to positively impact logistics performance.

Antecedents and dimensions of customer partnering behavior in logistics outsourcing relationships

Abstract: In order to be successful in today's competitive environment, third-party logistics providers (3PLs) increasingly strive to develop close, mutually beneficial long-term relationships with customers. The current study identifies inter-organizational conditions and firm-specific factors that influence a firm's partnering behavior with its 3PL. A model of the antecedents and dimensions of partnering behavior is developed and tested with a diverse set of relationships between a focal 3PL and members of its customer base.

Do Electronic Logbooks Contribute to Motor Carrier Safety Performance

Abstract: Within the U.S. Department of Transportation and among U.S. motor carriers, there has been increased interest in the potential benefits of electronic logbooks to improve the safety of trucking operations. This paper investigates the specific contribution of electronic logbooks to improving firm safety performance (as measured by the number of crashes and hours of service violations). The models presented demonstrate that electronic logbooks contribute positively to crash reduction and to decreases in hours of service violations, particularly among carriers with poor overall safety records. Moreover, hours of service violations fully mediate the relationship between electronic logbook use and number of crashes. These results have policy significance as the Federal Motor Carrier Safety Administration has proposed a rule that would require the use of electronic logbooks for some carriers.

Logistics and supply chain management applications within a global context: an overview

Abstract: This paper reviews 726 academic research studies covering logistics and supply chain management (L'SCM) applications within a global context. Articles are analyzed according to their publication year and outlet, common themes, and countries or regions investigated. The sample was drawn from the ABI/INFORM Global database, which includes almost 1,800 journal titles. The review offers a starting point for researchers, graduate students, faculty members or practitioners examining international L'SCM applications. The article also draws attention to the wide array of global L'SCM studies conducted, their settings and viewpoints. Additionally, this paper highlights some of the most interesting works and draws attention to lesser-researched countries and regions of the world. The overview also provides an introduction for practitioners and managers to what academic research has covered in the area of global L'SCM. Practitioners can use this review as a starting point for the identification of relevant and useful references for their particular task.

The role of security in the food supplier selection decision

Abstract: This research assesses whether, and under what conditions, firms are willing to trade off price and delivery reliability for greater supplier security. Specifically, international sourcing and concern over security incidents occurring at the respondent's firm are proposed as conditions that may increase demand for supplier security. This research suggests to managers the trade offs their customers may be willing to accept for increased security. The results are useful for firms evaluating whether they should invest in supply chain security measures. Results provide academic insight into the relative importance of security as a supplier selection criterion.

Debiasing strategies in supply management decision-making

Abstract: Human judgment and decision making under uncertainty are vulnerable to decision biases leading to deviations from the standard assumptions of the rational paradigm in economics. This fact is currently not widely reflected by research on decision making in sourcing contexts. However, supply managers are aware of the judgment and decision challenges that result from existing and increasing levels of uncertainty in the external, upstream supply chain, and deploy decision supporting strategies for debiasing their judgments. The analysis of supply management decisions using 441 data units from 133 embedded cases from 15 buying organizations revealed high levels of such debiasing strategies. However, the seemingly most effective mitigation strategy recommended in the general debiasing literature - creating awareness of the underlying mechanics causing decision biases - was only employed by one buying organization, indicating a need to further investigate debiasing strategies specifically in supply management contexts.

Linking exchange governance with supplier cooperation and commitment: a case of container terminal operations

Abstract: Studying the suppliers of a global buyer, we find that relationship stability is positively associated with the use of explicit and implicit contracts in their buyer-supplier relationship (BSR). We also find positive association of implicit contract with supplier cooperation and commitment as well as the influence of business volume in the BSR. Grounded in transaction cost economics and social exchange theory, these findings highlight the need to develop mutual understanding, beyond designing specific contracts, for developing cooperative and committed suppliers in a BSR.

Cutting logistics costs with ocean carrier selection

Abstract: Two decades of survey research has shown that transit-time differences among ocean carriers are often secondary considerations in carrier selection. However, this study found that shippers can pay substantial premiums for superior ocean transit-time service, and cut logistics costs even when substantial variability occurs in landside segments of supply chains.

The role of followers in supply chains

Abstract: Significant attention has been given to the contribution of supply chain leader organizations in the logistics literature. However, the majority of supply chain member firms are not leaders, and the contribution of these supply chain followers has not been described. Arguably the contribution of follower organizations is greater than that of a single supply chain leader since they are found in greater numbers in most supply chains. This paper identifies a conceptual framework of supply chain followership, classified on the basis of the behaviors exhibited by follower organizations. Data was collected via an interactive simulation, using executives as participants. Structural equation modeling was used to evaluate the proposed model. Results indicate that follower organizations make a greater contribution to overall supply chain performance than leaders when transformational behaviors are present.

A framework for developing implementation strategies for a radio frequency identification (rfid) system in a distribution center environment

Abstract: The costs and benefits of RFID adoption by supply chains have been a matter of much debate. As a result, researchers are finding a greenfield opportunity to examine how organizations might make use of the technology in a supply chain context. This paper attempts to further explore the potential contribution and limitations of RFID in a warehouse setting in two ways. First, it discusses the issues surrounding pallet-level tagging and case-level tagging by developing a decision making framework. Second, insights from the framework are used to define an object-oriented modeling framework that facilitates warehouse simulation of the RFID vs. barcode interoperability. This simulation is used to explore some of the cost/performance tradeoffs associated with six implementation strategies. Important cost tradeoffs are reported for the different strategies, and the statistical significance of the differences are evaluated.

Usage and performance impact of electronic procurement

Abstract: This study examines the relationship between the extent of electronic procurement (e-procurement) usage, measured in different dimensions on volume, diversity, breadth, and depth, and the performance gains with respect to operations and financial performance. A survey of companies in Singapore resulted in 141 usable responses for data analyses. Findings reveal that different dimensions of e-procurement usage have different relationships with performance.

Managing change in supply chains: a process comparison

Abstract: Research is necessary to improve our understanding of change processes necessary to successfully implement SCM. One aspect of such inquiry should seek to improve our grasp of how SCM change differs from other types of change. The complex, multifunctional nature of supply chains suggests that processes used to implement SCM changes may differ from those employed for implementing non-supply chain management (NSCM) changes (Lambert, Cooper, and Pagh 1998). Because broader change initiatives are often more difficult to implement (Nadler and Tushman 1989), degree of success realized from implementing SCM changes might differ as well. Understanding the process for implementing SCM is critical because its success drives organizational performance, efficiency and competitive position (Chen and Paulraj 2004). Such an understanding can be found in the change management literature. Research on strategy implementation suggests that it is inextricably connected to change management (Pryor et al. 2007). Successful change embraces both the inner shift in the individual’s values, aspirations and behaviors and the outer shift in process, strategy, practices and systems (Karp 2005). Change management provides insight on changing the organizational structure and staffing to address new changes and insight on adjustment to the administrative system, such as revising systems for planning, performance measurement, and incentive compensation to aid the organization in achieving its strategic goal (Bourgeois and Brodwin 1983). Recent research has indicated relationships between various change process activities and change achievement (Ford and Greer 2005). This study explores differences between SCM and NSCM change using an empirical approach. We seek to determine if there are differences in the change process when organizations implement SCM change as oppose to NSCM change. We define SCM change as planned change that is SCM related. Subsequently, NSCM change is planned change that is not SCM related. Planned changes are premeditated, agent-facilitated interventions that are intended to improve the function of the organization (Lippit, Watson, and Westley 1958). Using concepts from the literature, we first hypothesize about differences in change processes used to implement SCM and NSCM change, and about differences in implementation success realized from them. We then test the hypotheses using data from a sample of managers involved in change implementation. The results and knowledge generated from this study can assist managers with understanding the process for SCM change implementation and what process factors are necessary for SCM change achievement.

Constructing impact factors to measure the influence of supply chain management and logistics journals

Abstract: Data from ten supply chain management and logistics journals are combined with data from the ISI Web of Science database to develop a series of impact factors. The resulting constructed impact factors provide a context for comparing and ranking leading academic supply chain management and logistics journals. They also provide an objective way of comparing the relative influence of supply chain management and logistics journals, as well as a platform for comparing their influence with that of journals in more general fields like management and business.

Modeling uncertain forecast accuracy in supply chains with postponement

Abstract: We examine a situation where a manufacturer operates in a two-mode production environment. The first mode could involve overseas vendors and manufacturing facilities. If additional units are later required, the company must use its second mode—more expensive last-minute domestic vendors and manufacturing sites. We develop a new methodology for analyzing the impact of forecast accuracy on the decision to postpone production. We examine the interaction of forecast accuracy, shortage vs. holding costs, transportation costs and the cost of postponing production in the supply chain of a single product facing uncertain demand. Our model can be used to analyze the cost of important changes, such as increasing forecast accuracy, reducing the cost of backorders, lowering the cost of delaying production, or lowering transportation costs. Our model allows a firm to understand its overall cost structure so that it can accurately evaluate the impact of improved forecast accuracy and lowered costs in the context of postponement.

Impact of rising fuel cost on perishable product procurement

Abstract: This paper models the dynamic interactions between product prices at different regional markets and input costs and derives cost-price thresholds that can be used to evaluate alternative product sourcing and procurement strategies. The model is tested empirically by estimating a vector autoregressive model using data from the U.S. leafy green industry.

Effective performance management

Abstract: The synergistic effect of holistically addressing all of the variables highlighted by this article will result in organizations consistently reaching their intended destination. Skipping steps creates the illusion of speed, but rarely results in progress. While effective performance management is incredibly difficult, it is also critical to an organization's survival and prosperity. Systematically addressing these critical success factors will ensure consistency and success: 1The starting point—A clear, objective understanding of current reality, as it is. 2The destination—A clear point of view on where you want the organization to be, taking the current realities into account. 3The path—A growth plan that will take you from the current reality to the intended destination. 4Variation—A culture and system that expects variation, distinguishes between noise and signal, ignores the noise, and acts on the signals. 5Agile Course Correction—A strong foundation that increases the number of course correction opportunities dramatically. 6Alignment—Ensuring that everyone works towards the same destination. The article uses a flight analogy to explain each of these critical variables.