Showing papers in "The International Journal of Logistics Management in 1998"
TL;DR: In 1998, the Council of Logistics Management modified its definition of logistics to indicate that logistics is a subset of supply chain management and that the two terms are not synonymous as discussed by the authors.
Abstract: In 1998, the Council of Logistics Management modified its definition of logistics to indicate that logistics is a subset of supply chain management and that the two terms are not synonymous Now that this difference has been recognized by the premier logistics professional organization, the challenge is to determine how to successfully implement supply chain management This paper concentrates on operationalizing the supply chain management framework suggested in a 1997 article Case studies conducted at several companies and involving multiple members of supply chains are used to illustrate the concepts described
2,380 citations
TL;DR: A description of how to analyze and synthesize data is followed by a section on an approach to planning strategic and operational change together with a framework in which to do this.
Abstract: Value Stream Management is a new strategic and operational approach to the data capture, analysis, planning and implementation of effective change within the core cross‐functional or cross‐company processes required to achieve a truly lean enterprise. This paper describes the method in detail including a summary of the previous Value Stream Mapping approach and its weaknesses. The new approach involves a strategic review of a business or supply chain's activities, the delimitation of key processes and the mapping of these processes. A description of how to analyze and synthesize these data is followed by a section on an approach to planning strategic and operational change together with a framework in which to do this. The benefits and limitations of the new approach are summarized.
356 citations
TL;DR: In this paper, the similarities that exist between business process reengineering and supply chain management (SCM) are reviewed and their application to SCM is explained, and the similarities allow supply chain practitioners to obtain valuable lessons from the mistakes associated with BPR implementation.
Abstract: Business Process Re‐engineering (BPR) appears to have had its 15 minutes of fame and is now viewed by many managers as an unqualified failure. It is important that managers realize that every concept has some merit and that lessons can be learned even from a failure. This paper reviews the similarities that exist between BPR and Supply Chain Management (SCM). These similarities allow supply chain practitioners to obtain valuable lessons from the mistakes associated with BPR implementation. These lessons are reviewed and their application to SCM is explained.
150 citations
TL;DR: In this article, a framework for the analyses of supply chain reconfiguration patterns in the context of internationalization strategy is introduced and used in eight case studies, and different postponement applications have been found, suggesting that the existing framework for customization in supply chains needs extension.
Abstract: It is expected that, as the next step in the development of distribution channels, companies will decentralize their final manufacturing into their distribution centers. It has also been suggested that companies are increasingly beginning to customize products based on customer orders. Both the repositioning of final manufacturing into the distribution channel and the move towards customization‐on‐order are related to the implementation of postponed manufacturing. A framework for the analyses of supply chain reconfiguration patterns in the context of internationalization strategy is introduced and used in eight case studies. Results suggest that the implementation of postponed manufacturing require not only the reconfiguration of the logistics systems, but also that of other operations in the supply chain, thus creating a cross‐functional effect. In contrast to the literature different paths are found which are viable for structuring the reconfiguration process. Finally, different postponement applications have been found, suggesting that the existing framework for customization in supply chains needs extension.
149 citations
TL;DR: In this paper, three generic models were developed to describe the ways in which manufacturers manage relationships with their major suppliers and major customers, and a set of financial and non-financial practice and performance measures was selected.
Abstract: This paper describes preliminary research into the effect of different approaches to supply chain management on manufacturing company performance. Three generic models were developed to describe the ways in which manufacturers manage relationships with their major suppliers and major customers. A set of financial and non‐financial practice and performance measures was selected. Practice and performance data were collected from 74 U.K. manufacturers from the clothing and electronics industries. Data supplied by participating companies were used to test the appropriateness of the three generic models, and to investigate the ways in which their supplier‐customer relationships impact upon their performance.
131 citations
TL;DR: In this paper, the authors assess the impact of the new model of modular production on the dynamics in supply chains as a whole and the consequences for individual players, based on innovative cases such as that of the SMART car.
Abstract: The principle of modular production has been applied internally by companies since the 1960's. Innovative companies in various industries are now experimenting with application of the concept in a supply chain setting. Modular production makes it possible to further involve distributors and suppliers in the manufacturing process and create a new tier of suppliers in the automotive industry; that of the “zero‐level supplier”. Expected benefits of the increased integration in the inbound and outbound flow of goods are improved responsiveness to customers and increased efficiency. It can be questioned, however to what extent manufacturers can increase the amount of control over operational activities based on networking, as opposed to control based on ownership, without becoming an empty design and marketing company. This paper assesses the impact of the new model of modular production on the dynamics in supply chains as a whole and the consequences for individual players, based on innovative cases such as that of the SMART car.
124 citations
TL;DR: In this paper, the authors define deterministic chaos and demonstrate that supply chains can display some of the key characteristics of chaotic systems, namely: chaos exhibits sensitivity to initial conditions; it has Islands of Stability; generates patterns; invalidates the reductionist view; and, undermines computer accuracy.
Abstract: Since the late 1950's it has been recognized that the systems used internally within supply chains can lead to oscillations in demand and inventory as orders pass through the system. The uncertainty generated can result in late deliveries, order cancellations and an increased reliance on inventory to buffer these effects. Despite the best efforts of organizations to stabilize the dynamics generated, industry still experiences a high degree of uncertainty. The failure to significantly reduce uncertainty through traditional approaches may in part be explained by chaos theory. This paper defines deterministic chaos and demonstrates that supply chains can display some of the key characteristics of chaotic systems, namely: chaos exhibits sensitivity to initial conditions; it has Islands of Stability; generates patterns; invalidates the reductionist view; and, undermines computer accuracy. The implications for the management and design of supply chains are discussed.
110 citations
TL;DR: In this paper, the authors used a pilot study, a large-scale survey of manufacturing managers, and linear structural relations (LISREL) to develop measures and test relationships among six constructs: physical supply, physical distribution, logistics spanning processes, customer service, manufacturing flexibility, and firm performance.
Abstract: Logistics is considered to have a significant impact on a manufacturing organization's performance. This research utilizes a pilot study, a large‐scale survey of manufacturing managers, and linear structural relations (LISREL). The research methods develop measures and test relationships among six constructs: physical supply, physical distribution, logistics spanning processes, customer service, manufacturing flexibility, and firm performance. The results from the research confirm that logistics influences a manufacturer's ability to satisfy customers and overall performance. The level of manufacturing flexibility in the firm, as indicated by the presence of advanced process technology and the participation of manufacturing management in strategy formulation, alters logistics role in organizational success.
88 citations
TL;DR: In this article, the authors report simulation research that empirically investigates and compares supply chain performance under varying conditions of information exchange and demand uncertainty and conclude that the response-based model consistently outperforms the anticipatory model in terms of customer service delivered under conditions of low and high demand variation.
Abstract: This paper reports simulation research that empirically investigates and compares supply chain performance under varying conditions of information exchange and demand uncertainty. Specifically, the research objective is to quantitatively document the characteristics and performance impact of information exchange among supply chain entities. The findings suggest that the response‐based supply chain model consistently outperforms the anticipatory model in terms of customer service delivered under conditions of both low and high demand variation. Comparisons of inventory holdings across supply chain models demonstrate that the retailers' inventory burden is significantly lower in the response‐based scenario. The inventory savings enjoyed by retailers in the response‐based model are substantial enough to lower system‐wide inventories. In sum, the study supports the feasibility of achieving both improved service and lower inventories as a result of information sharing.
74 citations
TL;DR: In this article, the authors make a case to amalgamate the advantages of both schools of thought to allow long-term views to be represented by short-term performance measurement, which is an alarming prospect for the environment which has no place in future supply chain performance measurements, thus running the risk of being increasingly side-lined.
Abstract: Although there has been considerable effort placed on measuring supply chains in order to assess their performance, these techniques have been found to be time and cost focused, aimed at coping with rapid change. This approach tends to have a short‐term outlook. Work on greening supply chains is much longer‐term in outlook. Is information intensive and biased towards the supply side? These two mindsets appear to be diverging, developing in conflicting directions. This is an alarming prospect for the environment, which has no place in future supply chain performance measurements, thus running the risk of being increasingly side‐lined; and for performance measurements, which is unconcerned with longer‐term sustainability in terms of the environment. The case is made to amalgamate the advantages of both schools of thought to allow long‐term views to be represented by short‐term performance measurement.
73 citations
TL;DR: In this paper, a model is described, which enables differentiation of the logistics service that a company offers to its customers, and each customer order profile can be drawn up for an appropriate logistics service arrangement, in order to balance service and costs.
Abstract: In this article a model is described, which enables differentiation of the logistics service that a company offers to its customers. Differentiating this service is essential for businesses with a large variation within their customer and/or products portfolio. The model consists of four phases: cost structuring, profiling, evaluating and differentiating. The application of the model results in a number of customer order profiles that group customers according to their ordering behavior. Each customer order profile can be drawn up for an appropriate logistics service arrangement, in order to balance service and costs. The model helps to transform logistics service from a cost generator to a powerful marketing tool.
TL;DR: In this paper, the authors propose that many businesses are not in the trade-off zone where cost must be balanced against service, but are in the area where good supply chain practice can drive service up and cost down simultaneously.
Abstract: Integrating business processes across functions is at the heart of logistics and supply chain management. The fundamentals of compressing time across the chain are well understood. There is a common expectation among logistics professionals that cost will fall out of the supply chain from such programs. The theme of supply chain management is that many businesses are not in the trade‐off zone where cost must be balanced against service, but are in the area where good supply chain practice can drive service up and cost down simultaneously.
TL;DR: In this paper, the authors propose two types of changes to the supply chain: structural changes, including processes, physical resources and linkages/relationships; and, system changes including how information is used and decisions taken.
Abstract: Logistics managers are faced with greater customer volatility, higher customer service expectations and pressure to reduce costs. If these conflicting pressures are to be reconciled, increased supply chain flexibility is vital. Enhanced flexibility is achieved through two types of changes to the supply chain: structural changes, including processes, physical resources and linkages/relationships; and, system changes, including how information is used and decisions taken. Structural changes include reducing lead‐times from suppliers, JIT manufacture, and holding stocks at customers' sites. System changes may include speeding information flow and deploying information technology to improve planning and control of the supply chain.
TL;DR: In this paper, the authors argue that the low status and poor image of customs clearance has actually become outdated and argue that fundamental changes taking place in the area have worked to raise the importance of the customs clearance in general, and they examine the specific drivers of these changes and assess the ways in which these drivers might impact businesses involved in moving goods across borders.
Abstract: As far as most people are concerned, customs clearance is not a term that is likely to excite enthusiasm. For some, customs clearance represents tedious border checks, irritating delays and complicated form‐filling. For others, it is one of the oldest examples of government interference and bureaucracy. Something that does little to improve its tarnished image in an era supposedly dominated by free markets and private initiative. But regardless of the ambivalence in which it is held, the fact remains that when goods are moved across borders, customs clearance is usually involved. In this paper we will argue that the low status and poor image of customs clearance has actually become outdated. Now, fundamental changes taking place in the area have worked to raise the importance of customs clearance in general. These changes have linked customs clearance to innovative technological developments, and propelled it into becoming a key area for management in cross‐border, time‐sensitive industries. We will examine the specific drivers of these changes and assess the ways in which these drivers might impact businesses involved in moving goods across borders. Finally, we will focus on what such businesses might do to respond.
TL;DR: In this paper, the authors describe a possible change of strategy whose interpretations and limits will be described in this article, while the few current experiments in relational contracts may mean a possible changing of strategy.
Abstract: Since the end of the 1980s, logistics in French mass distribution has undergone a progressive vertical disintegration, with contractors taking a greater role in physical distribution. While food retailers state in the professional press that this disintegration has the inevitable consequence of leading to contractual based relationships rather than transaction based relationships, the reality appears to be to think in terms of price competition with short‐term contracts renewable at the expiration date. There is a lack of intent to share capital investments in outbound logistics between retailers and contractors to improve customer service. The few current experiments in relational contracts may mean a possible change of strategy whose interpretations and limits will be described in this article.
Journal Article•
TL;DR: In this article, the authors identify some of the more significant changes that have affected the industry and offer considerations for decision making to those who are tasked with making critical marketing decisions, and a vision of the future of the transportation/logistics industry is presented.
Abstract: Since deregulation of the airlines in 1978, and rail and truck in 1980, the transportation/logistics Industry has undergone significant changes. The trend has been one of improved efficiency and extreme price and cost pressures, requiring more of a customer driven marketing approach on the part of transportation/logistics service providers. This article identifies some of the more significant changes that have affected the industry and offers considerations for decision making to those who are tasked with making critical marketing decisions. Finally, a vision of the future of the transportation/logistics industry is presented.