Jan Sher Akmal, Mika Salmi, Roy Björkstrand, Jouni Partanen and Jan Holmström
Introducing additive manufacturing (AM) in a multinational corporation with a global spare parts operation requires tools for a dynamic supplier selection, considering both cost…
Abstract
Purpose
Introducing additive manufacturing (AM) in a multinational corporation with a global spare parts operation requires tools for a dynamic supplier selection, considering both cost and delivery performance. In the switchover to AM from conventional manufacturing, the objective of this study is to find situations and ways to improve the spare parts service to end customers.
Design/methodology/approach
In this explorative study, the authors develop a procedure – in collaboration with the spare parts operations managers of a case company – for dynamic operational decision-making for the selection of spare parts supply from multiple suppliers. The authors' design proposition is based on a field experiment for the procurement and delivery of 36 problematic spare parts.
Findings
The practice intervention verified the intended outcomes of increased cost and delivery performance, yielding improved customer service through a switchover to AM according to situational context. The successful operational integration of dynamic additive and static conventional supply was triggered by the generative mechanisms of highly interactive model-based supplier relationships and insignificant transaction costs.
Originality/value
The dynamic decision-making proposal extends the product-specific make-to-order practice to the general-purpose build-to-model that selects the mode of supply and supplier for individual spare parts at an operational level through model-based interactions with AM suppliers. The successful outcome of the experiment prompted the case company to begin the introduction of AM into the company's spare parts supply chain.
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Ivan Russo, Ilenia Confente, Jan Holmström, Mikael Öhman and Travis Tokar
The purpose of this research is to highlight the significance of advancing research methodologies in logistics, operations and supply chain management. It seeks to expand the…
Abstract
Purpose
The purpose of this research is to highlight the significance of advancing research methodologies in logistics, operations and supply chain management. It seeks to expand the scope of research questions and explore areas previously constrained by traditional methodological approaches, thereby enhancing the exploration of complex, real-world business issues.
Design/methodology/approach
This commentary introduces and discusses the special issue on “Advances in Research Methodologies for Logistics and Supply Chain Management,” exploring methodological innovations, diversity and their potential to address complex business and disciplinary challenges. The commentary assesses a broad spectrum of methodologies, ranging from traditional qualitative and quantitative approaches to overlooked methods such as qualitative comparative analysis, netnography, design science, Bayesian networks, machine learning and repertory grid technique. This diverse methodological approach enables a comprehensive examination of emerging and ongoing challenges in the supply chain. In the final summary section, we highlight additional areas of research method innovation not covered in this special issue, offering a broader perspective on future directions for methodological advancements in SCM research.
Findings
The findings suggest that integrating less explored methodologies from various disciplines encourages a richer, multi-level analysis of the supply chain management landscape. This integration facilitates a deeper understanding of emerging challenges, such as geopolitical issues, global supply chain disruptions and the integration of new technologies. Additionally, the exploration of ‘white space' in research methodologies indicates significant potential for discovering new insights that bridge practical problems with theoretical contributions.
Originality/value
The value of this methodological diversity extends beyond academic enrichment. It catalyzes the generation of innovative insights crucial for business practitioners, policymakers, consultants and academics. By adopting varied research designs and methodologies, the research note can offer a broader spectrum of analytical perspectives, crucial for uncovering nuanced insights into complex, cross-cultural and relationship-based dynamics in supply chain research.
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Emmelie Gustafsson, Patrik Jonsson and Jan Holmström
This paper investigate how fit uncertainty impacts product return costs in online retailing and how digital product fitting, a pre-sales fitting practice, can reduce fit…
Abstract
Purpose
This paper investigate how fit uncertainty impacts product return costs in online retailing and how digital product fitting, a pre-sales fitting practice, can reduce fit uncertainty.
Design/methodology/approach
The paper analyzes the current performance of a retailer's e-commerce and return operations by estimating costs generated by product returns, including product handling costs, tied-up capital, inventory holding costs, transportation costs, and order-picking costs. The estimated costs were built on 2,229 return transactions from a Scandinavian fashion footwear retailer. A digital product fitting technology was tested with the retailer’s products and resulted in estimations on how such technology could affect product returns.
Findings
The cost of a return is approximately 17% of the prime cost. The major cost elements are product handling costs and transportation costs, which together amount to 72% of the total costs. If well calibrated, the fitting technology can cut fit-related return costs by up to 80%. The findings show how customers reacted to the fitting technology: it was unable to verify fit every time, but it serves as a useful and effective support tool for customers when placing orders.
Research limitations/implications
Virtual fit verification using digital product fitting is key to retailers to reduce fit-related returns. Digital product fitting using three-dimensional scanning is more appropriate for some products, but it is unsuitable for products that are difficult to measure and scan.
Originality/value
The paper contributes an empirical estimate of retail supply chain costs associated with fit uncertainty, as well as theoretical understanding of the role of pre-sales fit verification in avoiding product returns.