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Article
Publication date: 10 May 2018

Gaetano Marino, Giulio Zotteri and Francesca Montagna

Short delivery time is a feature that can influence consumers’ purchasing decisions and that retailers compete over fiercely. Accordingly, evaluating the effect of delivery time…

2861

Abstract

Purpose

Short delivery time is a feature that can influence consumers’ purchasing decisions and that retailers compete over fiercely. Accordingly, evaluating the effect of delivery time on demand and identifying marketing-mix variables that alter this relationship may influence retailers’ strategies and impact supply chain (SC) performance. The paper aims to discuss these issues.

Design/methodology/approach

This study was performed in collaboration with the largest furniture retailer in Italy, which provided its sales and inventory data for 19,000 units sold over a six-month period in 32 stores throughout Italy. Data were analysed using logistic regression with fixed effects.

Findings

The value of delivery time for consumers, even in an industry generally characterised by long delivery lead times, is surprisingly high. The evidence reveals that when the delivery time changes from two days to seven days, demand is reduced by 37.5 per cent, although variables related to location and the marketing mix moderate this relationship.

Practical implications

Retailers can use the findings presented herein to drive their inventory and facility planning decisions and support investments in SC integration.

Originality/value

Supply chain management (SCM) studies consider the value of delivery time anecdotally and have neglected empirical estimations of the magnitude of the effects of delivery time on consumer demand. Further, SCM studies have not explored the factors moderating this relationship, although intertemporal choice and service management studies have demonstrated the existence of such factors.

Details

International Journal of Physical Distribution & Logistics Management, vol. 48 no. 6
Type: Research Article
ISSN: 0960-0035

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Article
Publication date: 1 December 2002

Gianluca Spina, Roberto Verganti and Giulio Zotteri

As customers ask for increasing levels of performance, functionality and customisation, firms rely on suppliers not only as a source of components, but also as a source of…

2034

Abstract

As customers ask for increasing levels of performance, functionality and customisation, firms rely on suppliers not only as a source of components, but also as a source of innovation. Several researchers have investigated the adoption of co‐design, its potential benefits and its costs. Recently, scholars have increasingly underlined the need for bringing this rich stream of studies within a contingency framework, taking into account context variables and internal characteristics of the firm. This paper contributes to this contingency theory of co‐design adoption. We investigate the role of three factors that might influence the intensity of supplier involvement in product development: structural characteristics (industry, size and degree of vertical integration), strategic priorities (strategic fit) and internal consistency with purchasing and new product development practices. An empirical analysis of 67 Italian manufacturers demonstrates that co‐design adoption is actually related to most of these factors.

Details

International Journal of Operations & Production Management, vol. 22 no. 12
Type: Research Article
ISSN: 0144-3577

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Article
Publication date: 1 June 2006

Matteo Kalchschmidt, Roberto Verganti and Giulio Zotteri

In many industrial contexts, firms are encountering increasingly uncertain demand. Numerous factors are driving this phenomenon; however, a major change that is spreading among…

7245

Abstract

Purpose

In many industrial contexts, firms are encountering increasingly uncertain demand. Numerous factors are driving this phenomenon; however, a major change that is spreading among different sectors is the ever‐growing attention to customers. Companies have identified that customers are critical not only because they directly influence the success of specific products or firms, but also because they play a fundamental role in many internal processes. Although the role of customers in business processes has been deeply analysed, the issue of demand forecasting and the role of customers has not been fully explored. The present study aims to examine the impact of heterogeneity of customer requests on demand forecasting approaches, based on three action research cases. Based on the analysis of customer behaviour, an appropriate methodology for each case is designed based on clustering customers according to their demand patterns.

Design/methodology/approach

Objectives are achieved by means of three action research case studies, developed in cooperation with three different companies. The paper structures a general methodology based on these three experiences to help managers in better dealing with uncertain demand.

Findings

By means of proper analysis of customers' heterogeneity and by using simple statistical techniques such as cluster analysis, forecasting performance can significantly improve. In these terms, this work claims that focusing on customers' heterogeneity is a relevant topic both for practitioners and researchers.

Originality/value

The paper proposes some specific guidelines to forecast demand where customers' differences impact significantly on demand variability. In these terms, results are relevant for practitioners. Moreover, the paper claims that this issue should be better analysed in future researches and proposes some guidelines for future works.

Details

International Journal of Operations & Production Management, vol. 26 no. 6
Type: Research Article
ISSN: 0144-3577

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Article
Publication date: 1 December 2001

Gianluca Spina and Giulio Zotteri

Explores strategic and structural contingencies surrounding customer‐supplier partnerships, in a global sample of 218 firms from the engineering sector. Collaborative practice is…

1252

Abstract

Explores strategic and structural contingencies surrounding customer‐supplier partnerships, in a global sample of 218 firms from the engineering sector. Collaborative practice is analysed along two dimensions, namely operations integration and co‐design. The former concerns the management of logistics (physical and information flows), and the latter refers to suppliers’ involvement in the customers’ product development process. In particular, it was found that the degree of vertical integration, the level of innovation effort and the kind of improvement priorities clearly influence the adoption of partnerships, more than other classical contingencies relating to country, industries and firms’ size. Also, it was apparent that such strategic factors affect operations integration and co‐design practice differently.

Details

Integrated Manufacturing Systems, vol. 12 no. 7
Type: Research Article
ISSN: 0957-6061

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Article
Publication date: 1 October 2000

Gianluca Spina and Giulio Zotteri

Explores the implementation process of the customer‐supplier partnership in the machinery industry. Aims to assess the dynamic impacts on performance of various practices that are…

1722

Abstract

Explores the implementation process of the customer‐supplier partnership in the machinery industry. Aims to assess the dynamic impacts on performance of various practices that are generally regarded as typical of a customer‐supplier partnership. Also, investigates internal consistency of various practices and possible path dependencies. Shows, in the case of single sourcing, the complementarity and the synergistic effects of co‐design, sharing production plans, dedicating up‐stream capacity and assuring down‐stream demand. Finds the key role of a complete performance control system to monitor delivery, quality and cost performance, even when tight control over suppliers might be regarded as less crucial due to trust and long‐termism. Discusses the issue of dedicated EDI assets and shows that, at least in some cases, delaying investments might significantly reduce risks of sunk cost for both partners. Shows that, while some players on both sides of the relationship perceive the relationship as a “win‐win” situation, others play a “zero sum game”.

Details

International Journal of Operations & Production Management, vol. 20 no. 10
Type: Research Article
ISSN: 0144-3577

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Article
Publication date: 1 September 1998

Raffaella Cagliano, Gianluca Spina, Roberto Verganti and Giulio Zotteri

Notes that supporting small to medium‐sized enterprises (SMEs) in their process towards the adoption of business process re‐engineering (BPR) may be essential as the tools and…

1328

Abstract

Notes that supporting small to medium‐sized enterprises (SMEs) in their process towards the adoption of business process re‐engineering (BPR) may be essential as the tools and methodologies of BPR were designed for larger companies. Presents a methodology for the design of support services, developed within the context of a European Union (EU) project. The methodology consists of four major steps. The first step consists of an analysis of users’ needs. Since BPR support needs are differentiated and often implicit, an “ad hoc” methodology was developed to make demand explicit and split the potential market into homogeneous segments. The second step identifies the proper services to meet the needs of SMEs. The third step explores current supply of services and the critical success factors of a BPR support centre. Finally, the fourth step defines guidelines for the design of both the support centre and the specific support services. The methodology was developed also on the basis of the case of the Lombard machinery industry. Finally, the paper discusses the transferability of the methodology to other regions and industries.

Details

International Journal of Operations & Production Management, vol. 18 no. 9/10
Type: Research Article
ISSN: 0144-3577

Keywords

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