Andreas Reichhart and Matthias Holweg
The purpose of this paper is twofold: first, to develop a typology of co‐located supplier clusters, such as logistics centres or supplier parks, and second, to evaluate the…
Abstract
Purpose
The purpose of this paper is twofold: first, to develop a typology of co‐located supplier clusters, such as logistics centres or supplier parks, and second, to evaluate the theoretical perspectives at hand to investigate the co‐location phenomenon.
Design/methodology/approach
The research encompasses 28 semi‐structured interviews with key operations executives from vehicle manufacturers, component suppliers and logistics service providers at nine co‐located supplier clusters, the findings of which are triangulated with secondary sources.
Findings
The investigation yields two main findings: first, a typology is proposed based on two key dimensions “spatial integration and infrastructure” and “local value‐added”. From a theoretical perspective, the paper further concludes that transaction cost economics is less suited for studying dedicated co‐location, and suggests that future investigations should focus on consolidating the contributions on the spatial dimension of sourcing configurations into a novel theoretical framework.
Research limitations/implications
The study is based on an exploratory research design, investigating a selected number of co‐located supplier clusters only. While the research does not claim to provide a comprehensive survey of co‐located supplier clusters, it proposes a general categorisation that aims to provide a structure currently lacking further research into this phenomenon.
Originality/value
A structured overview of the phenomenon of co‐located supplier clusters is provided, extending the existing morphological debate. Furthermore, the discussion of their theoretical foundations provides novel insights into this phenomenon as well as into the operational implications of value chain modifications in general, with the intention of guiding further research in this area.
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A.I. Millington, C.E.S. Millington and M. Cowburn
This paper explores the conditions under which motor component manufacturers may choose to supply car assembly plants through decentralised production in local assembly units…
Abstract
This paper explores the conditions under which motor component manufacturers may choose to supply car assembly plants through decentralised production in local assembly units (LAUs). The analysis is based on a case study of the decision to supply motor exhausts through an LAU where demand from the OEM company is sequenced. The case suggests that local assembly may result in significant efficiency gains. However, most of these gains flow to the OEM company, while most of the costs of local assembly flow to the component supplier. This finding emphasises the importance of trust and collaboration within supplier relationships, but suggests that significant possibilities for opportunistic recontracting may exist after the establishment of the LAU. Both supplier and OEM company should consider these possibilities when making the initial investment decision.
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David Bennett and Florian Klug
In recent decades the automotive industry has established a variety of new forms of logistics integration between automobile assemblers and their suppliers, in particular those in…
Abstract
Purpose
In recent decades the automotive industry has established a variety of new forms of logistics integration between automobile assemblers and their suppliers, in particular those in the first tier. The purpose of this paper is to outline which form of logistics integration original equipment manufacturer (OEM) assembly plants use to link up with proximate suppliers, and to classify and compare different types of logistics supplier integration.
Design/methodology/approach
The data and insights for this paper come from a literature review of research and practitioner papers and studies to survey logistics integration models in theory and practice. In addition, data are collected through semi‐structured interviews and site visits.
Findings
The main findings are summarised in five conditions which characterise logistics supplier integration in the automotive industry. These conditions vary significantly between local dedicated supply as discussed in this paper and the traditional supply, which is distant and scattered around suppliers. These main conditions are “geographical proximity”, “delivery contents, volume and sequence”, “shared investment and asset specificity”, “information sharing and information technology system integration” as well as “transport system”. Although all of the five conditions were considered relevant for the description of existing integration forms, only the “geographical proximity” dimension is emerged as most suited for a formal typology. Therefore, a seven‐step integration model was developed which allows for a categorisation and comparison of existing logistics integration forms of proximate supply.
Research limitations/implications
This research aims to support the academic study of cross‐company and inter‐organisational supplier integration by providing consistent criteria for cross‐site comparisons. A holistic and consistent understanding of different logistics integration types will be necessary, which will help in evaluating the actual integration forms such as supplier parks.
Originality/value
The majority of studies into the supplier integration phenomenon conclude that logistical concerns are the driving factor behind supplier co‐location. Therefore, the focus of this research is on the spectrum of vertical integration in logistics between the vehicle manufacturers and their suppliers.
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Mickey Howard, Mike Lewis, Joe Miemczyk and Alistair Brandon‐Jones
This paper investigates the stalled adoption of a supplier park at Bridgend Engine Plant in the UK. It starts from the position that not all firms can or should implement the same…
Abstract
Purpose
This paper investigates the stalled adoption of a supplier park at Bridgend Engine Plant in the UK. It starts from the position that not all firms can or should implement the same set of practices.
Design/methodology/approach
Critical incident technique and semi‐structured interviews over five years were used to understand the influence of institutional and strategic choices during the implementation of a supplier park. A conceptual framework was developed to incorporate practices broadly associated with parks, i.e. improving supply stability, supply coordination, redefining the OEM/supplier boundary and enhancing interaction between co‐located firms.
Findings
The findings demonstrate a limited implementation of supply practices at Bridgend with only one component supplier brought onto the site. The original plan was to create a supplier park that would “grow” to an industrial park, creating an automotive sector in the area. However, a combination of operational, processual, and contextual factors have conspired against the plan.
Research limitations/implications
The combination of a broad range of theoretical and practical elements means there are associated discussions that could be more fully explored. Condensing the interview notes has resulted in the researchers' own interpretation of events becoming a significant reality filter. Whilst single case studies raise inevitable concerns over comparability, our focus is on theoretical generalizability through richness of empirical data.
Originality/value
As firms continue to use best practice as a core ingredient of strategy, researchers must respond with robust theoretical concepts explaining adoption and implementation. This paper integrates disparate perspectives across multiple levels in order to build a richer and more believable picture of a stalled initiative. Three key conclusions can be drawn: the contingent nature of “bundles of practice” implications of political ambiguity over the efficiency argument and the effect of isomorphic or bandwagon responses by firms.
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Kedar Joshi, K.N. Singh and Sushil Kumar
The purpose of this paper is to demonstrate a newly developed integrated multi‐criteria decision method (MCDM) with two‐sided preferences or selection scenario in build‐to‐order…
Abstract
Purpose
The purpose of this paper is to demonstrate a newly developed integrated multi‐criteria decision method (MCDM) with two‐sided preferences or selection scenario in build‐to‐order supply chains so as to explore the future applications like supplier parks.
Design/methodology/approach
The current state of the consolidation scenario of original equipment manufacturers (OEMs) and suppliers is presented and build‐to‐order imperativeness in the case of a supplier park is highlighted. These motivations guided the need for development of a new technique in two‐sided selection scenario. The MCDM technique, like analytical network process (ANP), is integrated with a mutual compatibility index. A hypothetical example is presented to demonstrate the proposed methodology.
Findings
The newly developed integrated methodology helps the decision maker to incorporate both sided preferences in the final supplier‐manufacturer selection.
Originality/value
This paper allows the reader to understand the build‐to‐order supply chain and supplier park situation. The emerging trends in the automobile sector in India are also highlighted. This new integrated technique certainly adds value to the decision maker in today's competitive world.
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To identify operations and logistics issues which are critical for the operational performance in modular assembly processes.
Abstract
Purpose
To identify operations and logistics issues which are critical for the operational performance in modular assembly processes.
Design/methodology/approach
Based on case studies of Volvo Cars, Toyota, and Saab, the paper identifies operations and logistics issues that are critical for the operational performance of modular assembly processes. The issues are used for extending our understanding of the design and operation of modular assembly processes.
Findings
The issues identified concern production planning, deviation handling, assembly flow balance, small unit disadvantages, and module flow control. They reveal that a modular assembly process design brings structural disadvantages related to the dispersion of activities and resource needs. The issues also demonstrate the need for extensive coordination across the interfaces of the decoupled parts of the process.
Research limitations/implications
The findings will mainly be relevant for firms that design and produce complex products involving several technologies and that use company‐specific modules as is the case in the automotive industry, for instance.
Practical implications
Operations and logistics managers may use the findings in order to design and operate modular assembly processes, provide input to the design of modular products, analyze operations and logistics issues before the firm decides to go modular, or not.
Originality/value
Complements existing research on modular assembly processes by outlining structural disadvantages and explaining the need for extensive coordination in such processes.
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Ana M. Mejías, Enrique Paz and Juan E. Pardo
The purpose of this paper is to analyze the best way to implement sustainable practices in the Logistics Social Responsibility field. Using the best practices (BPs) approach, the…
Abstract
Purpose
The purpose of this paper is to analyze the best way to implement sustainable practices in the Logistics Social Responsibility field. Using the best practices (BPs) approach, the authors have answered the question about how logistics function can take on board the principles of sustainability.
Design/methodology/approach
A systematic literature review has been applied, with an analysis of 194 papers from relevant logistics/supply chain management (SCM)-related journals over a 20-year time frame.
Findings
The authors have identified a first set of traditional BPs that are still relevant in the sustainability context, a second set of innovative sustainable BPs and a third set that can be considered sustainable BPs evolved from the traditional cost-efficiency approach, serving as a link between the other ones. This proposed taxonomy of BPs charts a progressive path toward integration of sustainable principles in SC-logistics operations.
Research limitations/implications
The methodological approaches applied entail inherent limitations. However, the authors have set out to ensure rigor by following a structured process approach.
Originality/value
The work contributes by filling two recurring gaps identified in the literature: the need to integrate social and environmental issues and develop more practical tools for implementing sustainable SCM. The progressive way of implementing sustainable BPs has advantages for logistics managers, especially when companies have limited resources for transforming their logistics process into a sustainable process. Additionally, future academic research topics are proposed.
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Fredrik von Corswant and Peter Fredriksson
Intense competition and structural changes characterize the car industry. Several trends (i.e. general changes over time) concerning sourcing strategies and supplier relations can…
Abstract
Intense competition and structural changes characterize the car industry. Several trends (i.e. general changes over time) concerning sourcing strategies and supplier relations can therefore be identified. The article aims to analyze how these trends correspond to the actual situation in the car industry. Based on a survey answered by both car manufacturers and first tier suppliers, this article provides facts and analyses regarding sourcing‐related trends over the past decade as well as some future predictions. The results show that both car manufacturers and suppliers continue to reduce product development time. They also increase supplier involvement in product development and the share of inbound JIT‐deliveries. However, while suppliers increase their outsourcing and globalization of production and product development activities, car manufacturers do not. Only some of the identified sourcing‐related trends are actually supported by the presented results. Hence, this article modulates the picture of the current development within the car industry.
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This paper aims to investigate one crucial aspect and inherent difficulty of modular assembly systems, which is how the dispersed activities, resources and organizational units…
Abstract
Purpose
This paper aims to investigate one crucial aspect and inherent difficulty of modular assembly systems, which is how the dispersed activities, resources and organizational units are coordinated with one another and the corresponding effects.
Design/methodology/approach
The paper is based on a subset of the data collected during a four‐year case study of Volvo Car Corporation's modular assembly system. For this particular paper, 15 semi‐structured interviews were conducted with representatives from different functions related to both pre‐ and final assembly activities.
Findings
The paper concludes that the efficiency of a modular assembly system is dependent on the use of several coordination mechanisms, such as the use of plans, standardization and mutual adjustment. The efficiency‐related rationales of activity synchronization, resource sharing, and activity and resource development can then be achieved. These mechanisms should cross the boundaries of the organizational units performing pre‐ and final assembly activities. The efficiency of a modular assembly system thus relies on an integral coordination pattern.
Research limitations/implications
The findings are mainly relevant for companies which design and produce complex products involving several technologies, and which use company‐specific module interfaces.
Practical implications
The importance of using a variety of mechanisms for coordinating activities in modular assembly systems is highlighted. The paper also shows what effects can be obtained by using several coordination mechanisms. For practitioners, the detailed case description may also provide valuable reference material.
Originality/value
The paper highlights how efficiency of a modular assembly system can be achieved through the planning and use of several mechanisms when designing and operating it.