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Open Access
Article
Publication date: 4 January 2023

Per Hilletofth and Olli-Pekka Hilmola

Globalization and the importance of emerging markets have increased the pressure of high-cost manufacturing locations to sustain operations. However, there are still some…

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Abstract

Purpose

Globalization and the importance of emerging markets have increased the pressure of high-cost manufacturing locations to sustain operations. However, there are still some countries in which manufacturing is prospering despite high costs (like Germany, Sweden and Switzerland). This study examines seven competitive priorities through 24 different capabilities, using a case survey of four manufacturing companies located in Sweden. This study aims to develop a contemporary understanding from vital priorities and capabilities.

Design/methodology/approach

A case survey was conducted in four different-sized manufacturing companies in Sweden during the autumn of 2018. In total, the survey attracted 89 responses. Respondents were mainly middle managers and other management team members.

Findings

In general, companies assess the importance of manufacturing capabilities higher than performance and improvement. The authors’ analysis shows that quality priority through product and process capabilities is ranked highest in terms of importance, performance and improvement. In addition, delivery capability shows a similarity with quality. At the other end, being lowest ranked are typically different flexibility and advertising capabilities. This study demonstrates with correlation analysis that most often capabilities have a positive correlation in terms of their importance, performance and improvement needs. Some capabilities show potential correlations across importance, performance and improvement.

Research limitations/implications

This research is limited to one high-cost environment and to four companies within that environment. Further research should examine the impact of the pandemic era on manufacturing priorities and capabilities.

Originality/value

In general, case surveys have relatively rarely been used in management studies. This research offers an alternative and deeper perspective from high-cost country manufacturing, as the responses are from numerous persons in management positions.

Details

Journal of Global Operations and Strategic Sourcing, vol. 16 no. 3
Type: Research Article
ISSN: 2398-5364

Keywords

Article
Publication date: 29 April 2020

Olli-Pekka Hilmola, Weidong Li and Andres Tolli

For decades, it was emphasized that manufacturing and trading companies should aim to be lean with very small inventories. However, in the recent decade, time-significant change…

Abstract

Purpose

For decades, it was emphasized that manufacturing and trading companies should aim to be lean with very small inventories. However, in the recent decade, time-significant change has taken place as nearly all of the “old west” countries have now low interest rates. Holding inventories have been beneficial for the sake of customer service and for achieving savings in transportation and fixed ordering costs.

Design/methodology/approach

In this study, inventory management change is examined in publicly traded manufacturing and trade companies of Finland and three Baltic states (Estonia, Latvia and Lithuania) during the years 2010–2018.

Findings

Inventory efficiency has been leveled off or falling in these countries and mostly declining development has concerned small- and medium-sized enterprises (SMEs). It is also found that inventory efficiency is in general lower in SMEs than in larger companies. Two companies sustaining in inventory efficiency are used as an example that lean has still significance, and higher inventories as well as lower inventory efficiency should not be the objective. Two companies show exemplary financial performance as well as shareholder value creation.

Research limitations/implications

Work concerns only four smaller countries, and this limits its generalization power. Research is one illustration what happens to private sector companies under low interest rate policies.

Practical implications

Continuous improvement of inventory efficiency becomes questionable in the light of current research and the low interest rate environment.

Originality/value

This is one of the seminal studies from inventory efficiency as the global financial crisis taken place in 2008–2009 and there is the implementation of low interest rates.

Details

International Journal of Productivity and Performance Management, vol. 70 no. 3
Type: Research Article
ISSN: 1741-0401

Keywords

Content available
Article
Publication date: 31 August 2016

Amir Moslemi, Olli-Pekka Hilmola and Jyri Vilko

This study aims to explore and analyzes the risk factors in container shipping and logistics services using a dual perspective. The authors gather data not only from logistics…

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Abstract

Purpose

This study aims to explore and analyzes the risk factors in container shipping and logistics services using a dual perspective. The authors gather data not only from logistics service companies but also from their most important customers.

Design/methodology/approach

In this research, the authors used case study methodology (interviews and surveys) to examine risk factors that are related to one another within the interaction between logistics service companies and their customers in the emerging markets of the Mediterranean region (Turkey, Algeria, Tunisia and Libya).

Findings

The findings show the most important risk factors and compare them using a dual perspective. Customers identify additional risks and estimate their consequences as wider. Interestingly, oil price change plays a dual role because a price increase could be beneficial to the region; at the same time, however, the competitiveness of shipping would decrease. In both response groups, risk likelihood and risk consequence have a positive and statistically significant correlation.

Research limitations/implications

The findings of the study are limited to one shipping/logistics service company. On a global scale, the company is medium-sized; however, in terms of Northern Europe, it is an important player. Extending its service portfolio to the Mediterranean region is an important step.

Practical implications

In emerging markets, risks go hand in hand with profitability, and companies need to apply extensive risk analysis and mitigation strategies to survive.

Social implications

The southern Mediterranean region is showing some signs of economy recovery. Efficient, robust supply chains are in demand to support sustainable growth.

Originality/value

Using a case study approach in supply chain risk management in shipping is rather rare; this work is ground-breaking in that it uses dual perspective in the analysis.

Details

Maritime Business Review, vol. 1 no. 3
Type: Research Article
ISSN: 2397-3757

Keywords

Article
Publication date: 9 October 2017

Yulia Panova, Eugene Korovyakovsky, Anton Semerkin, Ville Henttu, Weidong Li and Olli-Pekka Hilmola

This research examines factors that determine the improvement of the Russian supply chain sustainability. The strategic business model incorporates ecological, social and economic…

Abstract

Purpose

This research examines factors that determine the improvement of the Russian supply chain sustainability. The strategic business model incorporates ecological, social and economic aspects.

Design/methodology/approach

Considering Trans-Siberian Railway as a typical case, the study selected several cases or the parts of the primary rail connection with the affiliation of important neighbouring countries. The study uses quantitative analyses of a variety of size parameters (e.g. volumes of traffic, logistics costs, delivery distance and air pollutants).

Findings

The empirical findings stress that supply chains should favour in the future railway (or intermodal) connections for piggyback and containerised cargo. Herein lays the reason for the examination of all traditional factors affecting the modal choice and their complementation by the parameters to measure sustainability throughout the supply chains. The inclusion of the green practices positively affected the environmental, social and economic performance of the new approach.

Research limitations/implications

This research focuses on the delivery of cargo in containers and semi-trailers within wagons through the overland corridors. Despite the restrictive empirical findings within the national transport system, some elements can be representative of the international supply chains, provided that intermodal services are the most appropriate for the transportation over long distances.

Practical implications

Clients, media and regulatory bodies stress the consideration of environmental aspects at all stages of a global supply chain. Therefore, their adoption into strategic imperatives of local supply chains becomes inevitable.

Originality/value

An assessment of supply chains for longer distance transportation in Russia has not taken sustainability into account within cost analyses.

Details

European Business Review, vol. 29 no. 6
Type: Research Article
ISSN: 0955-534X

Keywords

Open Access
Article
Publication date: 20 October 2021

Tomi Solakivi, Ain Kiisler and Olli-Pekka Hilmola

This research analyzes the development of logistics outsourcing market in two countries, Estonia and Finland, with different paths as members of the single European market. The…

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Abstract

Purpose

This research analyzes the development of logistics outsourcing market in two countries, Estonia and Finland, with different paths as members of the single European market. The purpose of this paper is to examine whether the two markets have become more similar or whether their logistics costs and logistics markets have developed differently over time.

Design/methodology/approach

The development of the logistics market is addressed through two survey-based variables. Logistics costs are used to measure the size of the logistics market, whereas logistics outsourcing is analyzed to measure the development phase as well as the market potential for logistics service provision.

Findings

Estonian logistics outsourcing market was found to be underdeveloped and small compared to the Finnish market. At the same time, the logistics costs of Finnish companies are high and rising, whereas the costs of Estonian firms are declining.

Research limitations/implications

The results imply that the level of outsourcing might explain the visibility of logistics costs, which should be taken into account when making estimates on logistics costs both at the firm as well as on country level.

Social implications

Logistics sector is an important source of national competitiveness and employment. This research identifies subareas for the two countries on how to develop competitiveness through the logistics market.

Originality/value

This research provides a unique method to estimate the size of logistics outsourcing market in these two countries. It also represents as one of the rare works to provide multiyear comparison between countries in logistics costs.

Details

Journal of Global Operations and Strategic Sourcing, vol. 15 no. 1
Type: Research Article
ISSN: 2398-5364

Keywords

Open Access
Article
Publication date: 1 June 2020

Sergey Tsiulin, Kristian Hegner Reinau, Olli-Pekka Hilmola, Nikolay Goryaev and Ahmed Karam

The purpose of this paper is to examine and to categorize the tendencies of blockchain-based applications in the shipping industry and supply chain as well as the interrelations…

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Abstract

Purpose

The purpose of this paper is to examine and to categorize the tendencies of blockchain-based applications in the shipping industry and supply chain as well as the interrelations between them, including possible correlation of found categories with theoretical background and existing concepts. This study also explores whether blockchain can be adopted into existing maritime shipping and port document workflow management.

Design/methodology/approach

The current study builds a conceptual framework through a systematic project review carried along with scientific and grey literature, published in journals and conference proceedings during the past decade and giving information or proposals on an issue.

Findings

The results showed that reviewed projects can be compiled into three main conceptual areas: document workflow management, financial processes and device connectivity. However, having clear interlinkages, none of the reviewed projects consider all three areas at once. Concepts associated with maritime document workflow received broad support among the reviewed projects. In addition, reviewed projects unintentionally follow the similar goals that were laid down within port management scientific projects before the introduction of blockchain technology.

Originality/value

This study contributes to research by revealing a consistent framework for understanding the blockchain applications within maritime port environment, a less-studied part of blockchain implementation in the supply chain field. Moreover, this work is the first to find out conceptual intersections and correlations between existing projects, mapping current tendencies and potentially increasing knowledge about the field.

Details

Review of International Business and Strategy, vol. 30 no. 2
Type: Research Article
ISSN: 2059-6014

Keywords

Article
Publication date: 9 May 2016

Olli-Pekka Hilmola and Ville Henttu

Most OECD countries will have a considerable challenge ahead with an ageing population and necessary health care produced for retired people. Healthcare costs have increased…

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Abstract

Purpose

Most OECD countries will have a considerable challenge ahead with an ageing population and necessary health care produced for retired people. Healthcare costs have increased continuously from the mid-1990’s in Finland, and growth is likely to continue in the future, as the amount of older inhabitants is increasing. Furthermore, transportation of patients and their visitors between homes and hospitals is a large component of the total health carehealth care related costs. This paper aims to estimate transport-related costs and develop ways to decrease these costs.

Design/methodology/approach

A system dynamics simulation model was developed to examine different scenarios for patients and their visitor transportation to hospitals until the year 2040. Model is driven by age distribution of the region and likely by development of the total population. All parameter values were defined based on real-life observations.

Findings

Patients’ need to travel to hospitals is likely to continue to grow. In addition, quality of travel will change as older retired people are not willing or able to use their own transportation equipment or public transportation modes – this is the main reason for higher transportation costs of patients. Transportation is typically conducted via taxis, private cars and ambulances. Therefore, it is critical that people from the region are able to access hospital services with short proximity.

Research limitations/implications

Simulation study is limited to one hospital investment decision in Finland. Distances and population densities as well as transportation mode alternatives differ from more populous regions in the world.

Practical implications

Research findings stressed the importance of keeping their own hospital operations within the region and placing them in a better location. In an alternative case, where a hospital decision would have been abandoned, total transportation costs during 2012-2040 would have increased by at least the same amount that a new hospital is assumed to cost.

Originality/value

This research is one of the first from the health care sector, where patient transportation modes and ageing is being dealt with in the context of new investments. Patient transportation is often an overlooked issue, which bears significant costs, especially as people age.

Details

Journal of Modelling in Management, vol. 11 no. 2
Type: Research Article
ISSN: 1746-5664

Keywords

Article
Publication date: 24 February 2012

Milla Laisi, Olli‐Pekka Hilmola and Mikko Sutela

The purpose of this paper is to understand the changes in Swedish and Finnish companies' traffic flows and evaluate the future prospects.

Abstract

Purpose

The purpose of this paper is to understand the changes in Swedish and Finnish companies' traffic flows and evaluate the future prospects.

Design/methodology/approach

Research was implemented through web‐based questionnaire. Furthermore, numerous second‐hand sources were used to gain knowledge. Research was conducted in three parts: first research was executed in 2006, second in 2009 and the third was realized in 2010.

Findings

The main findings support previous studies arguing that the traffic between Europe and China will continue to grow in the future. However, contrary to earlier studies, the balance will change from eastbound to westbound traffic. The future prospects to Russian traffic are stated as a slight increase in demand: however, the balance is shifting from eastbound to westbound transport, and it is noted that the transport flows from Russia to Europe might increase in the near future.

Research limitations/implications

Empirical data were gathered from two North European countries, Sweden and Finland. To follow the development in the market, and in order to make more general conclusions, research should be extended to include other countries. Furthermore, economic downturn's influences on traffic flows and its development could be analyzed in a year's time.

Practical implications

The research aggregates data from three surveys and evaluates the companies' standpoints. The study results could be used to evaluate the companies' development trends in Finland and Sweden. In addition, the research provides valuable data for the business world, as well as for academia, by adducing the market actors' outlook.

Originality/value

The paper contributes actor‐level data to the subject, which previously has been scrutinized mainly via second‐hand data and literature analyses.

Details

Benchmarking: An International Journal, vol. 19 no. 1
Type: Research Article
ISSN: 1463-5771

Keywords

Content available
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Abstract

Details

Industrial Management & Data Systems, vol. 116 no. 2
Type: Research Article
ISSN: 0263-5577

Content available

Abstract

Details

Benchmarking: An International Journal, vol. 19 no. 1
Type: Research Article
ISSN: 1463-5771

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