Kari Tanskanen, Hannu Yrjölä and Jan Holmström
The launch of a wave of Internet grocery retailers over the last five years was a serious attempt to challenge the dominant supermarket business model. However, after a string of…
Abstract
The launch of a wave of Internet grocery retailers over the last five years was a serious attempt to challenge the dominant supermarket business model. However, after a string of business failures, it is evident that the task of selling groceries on the Internet and delivering to the home of the consumer is more difficult than was anticipated. Six important lessons can be drawn, based on direct consumer experiences, from a pilot in the Helsinki area of Finland and the in‐depth modelling and study of different logistics solution models from around the world. This paper discusses these lessons in detail.
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Mikko Punakivi and Kari Tanskanen
Recent research into last mile e‐grocery logistics has revealed that goods reception mode is one of the key issues for the operational efficiency of home deliveries. Hitherto, the…
Abstract
Recent research into last mile e‐grocery logistics has revealed that goods reception mode is one of the key issues for the operational efficiency of home deliveries. Hitherto, the research has considered home delivery concepts using attended reception and concepts enabling unattended reception based on customer‐specific reception boxes and delivery boxes. Customer‐specific reception boxes are installed in the consumer’s home yard or garage, while delivery boxes are insulated boxes that are returned to the retailer. Focuses on a third possible concept for unattended deliveries, namely shared reception boxes. Due to shared usage, the utilisation level of the facility is higher than in the case of customer‐specific unattended reception concepts. Analyses the operational cost levels of home delivery concepts using both attended and unattended reception, using real point‐of‐sales data and vehicle routing tools. The results show that transportation costs using the shared reception box concept are 55‐66 per cent lower in comparison with the current standard concept with attended reception and two‐hour delivery time windows. On the basis of our analysis, the cost reduction alone justifies the two‐to‐five‐year payback period of the investment required, even if there is only a fairly small number of deliveries per day. Surprisingly, the payback period is longer when customer density increases.
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In complex buyer-supplier relationships (BSRs), contracts are always incomplete and many of the exchanges non-contractual. Because they occur over a long period of time and…
Abstract
Purpose
In complex buyer-supplier relationships (BSRs), contracts are always incomplete and many of the exchanges non-contractual. Because they occur over a long period of time and include unspecified obligations, non-contractual exchanges might be asymmetrical. The purpose of this paper is to examine BSRs with the aim of identifying the mechanisms that lead to asymmetry in exchanges.
Design/methodology/approach
The author conducts an analysis, based on social exchange theory (SET), of six buyer-supplier dyads using the main SET constructs. From this multiple-case analysis the author develops a set of propositions explaining the exchange asymmetry in complex buyer-supplier relations.
Findings
The results indicate that self-awareness of the determinants of attractiveness, use of power-balancing mechanisms, and primacy can explain the exchange asymmetry in BSRs.
Research limitations/implications
The analysis is limited on the explanations for exchange asymmetry that are based on SET.
Practical implications
The study highlights the importance of firms using the power-balancing mechanism in order to gain value from supply chain partners. The results show that firms can use attractiveness strategically to influence supply chain partners, but the author also observe that firms generally are not well aware of the determinants of their attractiveness in BSRs, which ignorance may pose a major obstacle to using attractiveness strategically.
Originality/value
The paper provides the first systematic and comprehensive insight to social exchange mechanism in complex BSR. In this paper the author makes a major effort to clarify the basic assumptions and scope of the useful concepts and theoretical constructs of SET, and through a multiple-case study the author form a piece of substantive theory of SET in BSRs.
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Juho Soinio, Kari Tanskanen and Max Finne
This work aims to combine the perspectives of logistics‐service providers (LSPs) and small and medium‐sized enterprises (SME) in the development of value‐added logistics services…
Abstract
Purpose
This work aims to combine the perspectives of logistics‐service providers (LSPs) and small and medium‐sized enterprises (SME) in the development of value‐added logistics services. The purpose was to create a theory‐based and initially tested framework that could help both service providers and SMEs identify new opportunities for developing their logistics.
Design/methodology/approach
The research followed design‐science methodology and was carried out via semi‐structured interviews within the case company (a large Finnish LSP), its customers, and experts from the area of logistics services. Data on companies offering value‐added logistics services were also used in the research. The focus of the research was on advanced value‐added logistics services.
Findings
The paper presents a framework for categorizing logistics services for SMEs and proposes new logistics‐service models for SME customers. Altogether, three service models are proposed to bridge the gap between LSP and SME customers. In particular, the consulting‐oriented approach seemed to be appropriate for the SMEs. The other two models, 3PL with planning and Outsourced Chief Logistics Officer, require more effort from both parties.
Research limitations/implications
The paper presents a theoretical framework for categorizing logistics services and discusses the strategic options for an LSP to expand its service portfolio. However, further empirical research related to logistics‐service design is needed to develop the framework further and to improve its external validity.
Practical implications
This work offers insights that support LSPs to develop their service offerings to better match the needs of SMEs, and also allow managers of SMEs to better utilize the available LSP competence and services.
Originality/value
The existing research in the area of value‐added logistics services has mainly focused on either the customer perspective or the service‐provider perspective. The dyad combining these perspectives has been largely neglected. Furthermore, studies in this area have been on large enterprises as opposed to SMEs. This work fills this gap by designing value‐added logistics‐service models that combine SME needs with LSP capabilities.
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Kari Tanskanen, Jan Holmström, Jan Elfving and Ulla Talvitie
The purpose of this paper is to describe the challenge of managing logistics at corporate level in construction industry; and to present and evaluate vendor‐managed‐inventory…
Abstract
Purpose
The purpose of this paper is to describe the challenge of managing logistics at corporate level in construction industry; and to present and evaluate vendor‐managed‐inventory (VMI) as a potential solution for small item logistics.
Design/methodology/approach
The study has a design science approach. It describes and tests a possible solution design for small item logistics in construction.
Findings
The paper finds that VMI is an efficient solution for small item logistics at construction sites, provided that it is well designed and movable. When the construction company owns the solution, it can more potentially be a corporate‐wide solution.
Research limitations/implications
The VMI solution is tested at only three pilot sites, so there might be many situational factors affecting its feasibility that could not be observed.
Practical implications
The proposed solution is potentially a major step in moving from site‐by‐site logistics towards corporate level logistics management in construction industry.
Originality/value
The VMI solution presented in this paper is unique for construction industry. The study indicates that it improves significantly the effectiveness of small item logistics in construction. More generally, the value of the paper is in combining horizontal integration (across sites) and vertical integration (supply chain) views in designing logistics solutions for construction industry.
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Jouni Kauremaa and Kari Tanskanen
The purpose of this paper is to increase understanding on the essential managerial and technical decisions in the design of IOIS for supply chain integration (SCI). Toward this…
Abstract
Purpose
The purpose of this paper is to increase understanding on the essential managerial and technical decisions in the design of IOIS for supply chain integration (SCI). Toward this end, the authors elaborate on IOIS constructs in the SCI context, and propose a framework on the design of IOIS for SCI based on the current literature.
Design/methodology/approach
The paper draws from prior literature on interorganizational information systems (IOISs) and supply chain management (SCM), and builds a conceptual framework that is illustrated by empirical examples from three case studies of a ten-year research program that focussed on e-business in SCM.
Findings
Based on prior literature from several domains, the authors propose a framework, which combines the managerial viewpoints and the technical viewpoints for designing IOIS for SCI. The authors argue that these decisions form the basis for constructing three main elements of the IOIS for SCI design theory, namely, purpose and scope, design principles, and technical framework. Furthermore, the authors suggest that the real thread binding the decisions on all levels – purpose and scope; design principles; technical framework – is the flexible differentiation over use contexts, primarily over partners and focal interorganizational processes.
Research limitations/implications
The key limitation of this work is the propositional nature of the advanced framework. However, the framework is strongly grounded in prior literature and is illustrated by examples from three empirical studies.
Practical implications
The proposed framework provides a systematic tool for both the design and evaluation of the practical implementation of IOISs in SCI context. Furthermore, the results point explicitly to the implications of the benefits received from unilateral and bilateral modes of IOIS design.
Originality/value
The synthesized framework and the observation of the requisite differentiation over use context complement prior work from multiple domains by discussing both managerial and technical questions of IOIS deployment within a single conceptualization.
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Jaana Auramo, Jouni Kauremaa and Kari Tanskanen
To provide empirical evidence of benefits from IT in supply chain management.
Abstract
Purpose
To provide empirical evidence of benefits from IT in supply chain management.
Design/methodology/approach
Data in this qualitative study were collected through multiple enquiries. SCM consultant interviews gave an understanding of the current state of practice. A survey of 48 progressive companies was conducted to identify what IT solutions they have implemented in SCM. This was followed by 18 in‐depth case studies to identify the mechanisms for achieving benefits of IT in SCM.
Findings
Based on the empirical studies five propositions are presented on the use and benefits of IT. First, successful companies have developed focused e‐business solutions for improving customer service elements that are most important in their business. Second, improved efficiency allows company personnel to focus more on critical business activities. Third, the use of e‐business solutions improves information quality. Fourth, e‐business solutions support planning collaboration and improved agility of the supply network. Finally, to gain strategic benefits, the use of IT has to be coupled with process redesign.
Research limitations/implications
The sample of companies used in the study was selected by expert assessment and is biased towards companies willing to discuss and share results openly. Additionally, the focus of the paper was on single companies and not on the entire supply network. However, the findings of this study present an opportunity to further develop understanding of the underlying mechanisms of how IT investments benefit supply chain management.
Originality/value
The paper fulfils an identified need for in‐depth case studies that analyze the possible mechanisms behind the practical benefits of IT in supply chain management.
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Virpi Turkulainen, Katri Kauppi and Emma Nermes
While classical operations strategy research argues that manufacturing organizations should be managed in line with the operational strategic priorities, recent studies have…
Abstract
Purpose
While classical operations strategy research argues that manufacturing organizations should be managed in line with the operational strategic priorities, recent studies have brought up potential institutional explanations for adoption of various managerial practices, including supply chain management practices. The key point in the institutional argument is that organizations are especially affected by other organizations; imitation and isomorphism are a critical part of organizational behavior. The purpose of this paper is to empirically test the institutional argument in explaining the use of supplier integration mechanisms – one of the focal management practices in today’s organizations.
Design/methodology/approach
The authors assess empirically the extent to which various economic institutional factors explain the use of supplier integration mechanisms in manufacturing plants with a multi-country and multi-industry survey sample.
Findings
The results indicate that institutional explanations play a significant role in explaining supplier integration. The findings suggest that further emphasis on building research around the institutional argument in various areas of supply chain and operations management is important.
Originality/value
As research on supply chain integration – including supplier integration – has focused on its performance implications, more research on the antecedents to integration is needed. This study provides a test of institutional theory as an antecedent to supplier integration.
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Mikko Kärkkäinen, Timo Ala‐Risku, Kary Främling, Jari Collin and Jan Holmström
The purpose of the paper is to evaluate the feasibility of implementing a tracking based inventory management system in temporary storage locations of a project delivery chain. To…
Abstract
Purpose
The purpose of the paper is to evaluate the feasibility of implementing a tracking based inventory management system in temporary storage locations of a project delivery chain. To describe the use of tracking based inventory information for improved logistics control in equipment delivery and installation.
Design/methodology/approach
A solution design experiment was carried out in 16 temporary storage locations with one original equipment manufacturer and four installation partners.
Findings
It is feasible to implement tracking based inventory management in temporary storage locations. The challenge is to ensure that installation partners adopt the system. The benefit is improved logistics control of equipment delivery and installation for the original equipment manufacturer.
Research limitations/implications
Tracking information is more useful than conventional stock keeping in project delivery. By monitoring the dwell time of delivery items it is possible to identify and resolve problems in project execution.
Practical implications
Inventory management in temporary storage locations help project management, project logistics, and central logistics organizations carry out their work more effectively. Implementation can be based on tracking.
Originality/value
The paper's value lies in empirical tests and evaluation of tracking based inventory management in temporary storage locations.