Ole Mortensen and Olga W. Lemoine
The purpose of this study is to analyse the extent of the integration between manufacturers and third party logistics (TPL) providers at present and how the integration is…
Abstract
Purpose
The purpose of this study is to analyse the extent of the integration between manufacturers and third party logistics (TPL) providers at present and how the integration is expected to develop in the near future. The focus is on studying what tasks are part of the cooperation, what information and communications technology (ICT) tools are used for support, and what types of services are supplied and are expected to be supplied by TPL providers in the future.
Design/methodology/approach
A multiple case study of seven manufacturers and TPL providers is conducted. As the basis for the study a literature review is presented focusing on supply chain management and TPL provider integration as well as operationalisation of the integration concept. A framework is chosen for developing a detailed interview guide.
Findings
Cooperation is primarily found in sub‐processes of three out of the eight business processes studied. Further integration in the same processes is expected, based on ICT tools and with a focus on cost. ICT competences are primarily seen as a qualifier not a differentiator. Because the future TPL industry is expected to be characterised by more standardised services, more segmented markets for the various services and more intense competition, the manufacturers do not expect increased dependence on the TPL providers.
Research limitations/implications
Managerial and behavioural components are not part of this study and their effect on integration will require further investigation.
Originality/value
From a supply chain management perspective, the study sheds light on a rarely explored area concerning the integration between manufacturers and TPL providers and its future development.
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This paper deals with the dynamics of internationalisation and globalisation of the freight‐forwarding and logistics service providers. A case study, based on E.ON, Stinnes…
Abstract
This paper deals with the dynamics of internationalisation and globalisation of the freight‐forwarding and logistics service providers. A case study, based on E.ON, Stinnes, Schenker, BTL and other European and non‐European firms, is presented in order to illustrate the process. The organisation and strategies developed by the firms under study with the aim to expand their activities on European, transnational and global levels are presented. The information was gathered using the Internet as a research tool. Focus is placed on the organisational routes used by the firms in order to expand their activities outside of their home base, and on their business strategies.
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Logistics service providers (LSPs) are important actors for creating logistics performance in supply chains. However, there is little previous research on how they handle the…
Abstract
Purpose
Logistics service providers (LSPs) are important actors for creating logistics performance in supply chains. However, there is little previous research on how they handle the performance management process. The purpose of this paper is to explore the handling of the performance management process and its obstacles from the perspective of LSPs.
Design/methodology/approach
A multiple‐case study is conducted with the three largest LSPs in Sweden.
Findings
The handling of the performance management process shows similarities among LSPs in selecting performance variables, defining metrics, and capturing real‐time data. The differences are found in target setting, in report‐making and analysing, and in the perceived demand for performance management. The following three perceived obstacles are found for supply chain performance management: lack of understanding and knowledge; poor capabilities for adapting performance metrics definitions; and lagging IT solutions for performance report‐making. The findings indicate possibilities for an increased supply chain scope where activities are handled by the partner that has the best capabilities, improving efficiency in supply chains.
Research limitations/implications
The study contributes to performance management theory by providing exploratory knowledge of the supply chain performance management process and its obstacles from the perspective of three LSPs. The study focuses on large LSPs and has respondents at the managerial level.
Practical implications
The study reveals differing supply chain performance management practices among LSPs, which implies that customers can choose an LSP that handles performance management in the way required.
Originality/value
Little previous research includes LSPs in studies of supply chain performance management. In particular it is unusual to have the perspective of LSPs and apply case‐based methodology.
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Olga W. Lemoine and Tage Skjoett‐Larsen
A large number of firms have reconfigured their supply chains. The general trends entail, among others, the reduction, centralization and re‐location of plants and distribution…
Abstract
A large number of firms have reconfigured their supply chains. The general trends entail, among others, the reduction, centralization and re‐location of plants and distribution centers, the design of new distribution systems, and the reduction of the supplier base. The analysis of the implications of such reconfiguration for freight transport has received comparatively little attention, and most of the analysis has focused on the development of different theoretical models showing how changes in logistic structures and decisions could affect the transport demand. Using empirical data from Denmark, this paper sheds some light on the implications of reconfiguration supply chains on transport. Industry mail surveys among Danish firms as well as an in‐depth case study were performed. The consequences of the reconfiguration process on the present and future demand for transport are measured and analyzed in terms of the quantity of transport units used (trucks/containers), and the transport‐work (ton/km).
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The study seeks to explore the effect of socialization mechanisms on relational embeddedness of logistics service providers (LSP), and relational performance of dyads, and finally…
Abstract
Purpose
The study seeks to explore the effect of socialization mechanisms on relational embeddedness of logistics service providers (LSP), and relational performance of dyads, and finally their resulting effect on the supply chain performance in transitive triads.
Design/methodology/approach
To elaborate on the major constructs of the study, the researchers use the theoretical lens specifically provided by social capital theory (SCT), and relational view (RV). Consequently, the researchers use SCT to examine the role of the socialization process, used by the supplier and customer, to develop relational embeddedness of logistics service providers in triads. Next, the researchers use the RV, complemented by the underpinnings of supply chain practice view (SCPV) to elaborate on the relational performance of dyads and supply chain performance. The study uses partial least squares structural equation modeling (PLS-SEM) to estimate the higher component model (HCM) and test the research hypotheses.
Findings
The results obtained from a sample of 350 transitive triads suggest that relational embeddedness of LSPs is only shaped by the mechanisms of formal socialization, developed by the supplier and customer. Interestingly, informal socialization appears to be insignificant for this process. The results indicate that relational embeddedness of logistics service providers has a positive effect on the relational performance of three dyads, which in turn, has a positive effect on the supply chain performance in transitive triads.
Research limitations/implications
One of the intriguing avenues of future research is to investigate the dynamics of supply chains. It would be also worthwhile to make use of the specificity of transitive triads, formed by the supplier, customer and LSP, to explore whether and under which circumstances (e.g. reciprocity, symmetry) the strong ties encourage the transfer and integration of knowledge among actors, and the weak ties accelerate the search for information. In connection with that, the other interesting research avenue would be to investigate the information benefits derived from the nonredundant triads.
Originality/value
Although there is a number of recent studies that show empirical evidence for developing relational embeddedness in transitive triads, to date, little research interest has been paid to how relational embeddedness of LSPs is shaped within the supply chain structures, and how it finally affects the supply chain performance.
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Jason Monios and Rickard Bergqvist
This paper aims to examine a strategic alliance between a large shipper and a freight forwarder to provide an intermodal service to and from the port of Gothenburg. The supply…
Abstract
Purpose
This paper aims to examine a strategic alliance between a large shipper and a freight forwarder to provide an intermodal service to and from the port of Gothenburg. The supply chain literature discusses various models of supply chain collaboration and integration. When applied to logistics, each has been shown to exhibit different levels of success depending on particular factors.
Design/methodology/approach
The methodology is a single in-depth case paper based on action research, interviews and document analysis.
Findings
According to this innovative model, a new entity is not set up but an open-book basis is established, long-term contracts with other parties are signed, risks and profits are shared and the shipper makes several investments specific to the service. Thus, the benefits of a joint venture are obtained without needing to establish a new organisation, thereby sacrificing flexibility and independence.
Research limitations/implications
A limitation of this study is that it is based on a single case of best practice; it may be difficult to replicate the high levels of trust in other situations. Nevertheless, the evident success of this “virtual joint venture” suggests that some elements are transferable to other cases, and the model may be refined through additional case analysis.
Practical implications
Results indicate several advantages of this “virtual joint venture” model, including risk sharing, knowledge development, long-term service stability and diversification of activities, which all contribute to facilitating the shift of a large customer from road haulage to intermodal transport. Potential challenges mainly relate to contractual complexity.
Originality/value
This paper identifies an innovative business model for logistics integration that can be used in future in other cases to make modal shift more attractive and successful, which is a key aim of government policy in many countries.
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George Kokkinis, Athanassios Mihiotis and Costas P. Pappis
Freight forwarders are intermediary companies involved in Logistics. Their task is to manage all functions involved in transport after the buy process of merchandise is complete…
Abstract
Freight forwarders are intermediary companies involved in Logistics. Their task is to manage all functions involved in transport after the buy process of merchandise is complete. The main objectives of the present work are to evaluate the criteria on which production companies choose particular freight forwarders, to point out the elements that affect quality and to differentiate services provided in various customer categories. In addition, this work presents the characteristics of freight forwarding companies that are active in the Greek market, analyzing their field of specialisation regarding various services and the profile of their manpower, as well as measuring the level of information technology usage in their operations. For the aim of this work, a questionnaire was drawn up and sent to a sample of 98 companies of the sector, selected mainly for their size and their location. Twenty‐four questionnaires were returned, covering roughly 10% of the companies in the market. The companies were asked to evaluate the various choice criteria regarding the carriers they chose to collaborate with and the criteria on which they are selected by their customers. The conclusion is that Greek freight forwarding companies consider that quality is more important for their customers than cost and that small companies seem to evaluate the price of services offered, the offering of special privileges, personal treatment and experience as relatively more important than big companies do.
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Cathy H.Y. Lam, K.L. Choy and S.H. Chung
The purpose of this paper is to provide a decision support system (DSS) to enhance the performance of cross‐border supply chain, the goal of which is to improve order planning and…
Abstract
Purpose
The purpose of this paper is to provide a decision support system (DSS) to enhance the performance of cross‐border supply chain, the goal of which is to improve order planning and fulfill customer orders within the warehouse.
Design/methodology/approach
An intelligent DSS, namely order picking planning system (OPPS) with the adoption of case‐based reasoning, is proposed to support managers in making appropriate order fulfilling decisions when an order involves cross‐border activities. Similar cases in the past are retrieved and adapted in reference to the new order. A case study is then conducted to illustrate the feasibility and effectiveness of the system.
Findings
Recommendations are given to replace the objective decision‐making process in cross‐border supply chain with the help of the DSS. The warehouse order planning time has been reduced and useful information from past order records can be applied to solve new problems.
Originality/value
With the increasing demand for material sourcing across different places, cross‐border supply chain has raised the concern for manufacturers to seek lower material and rental costs. The focus on warehouse operations can increase efficiency in order delivery by considering cross‐border requirements.
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To examine the state of logistics and supply chain management (SCM) research in the last five years from the standpoint of existing methodologies. The state of research is…
Abstract
Purpose
To examine the state of logistics and supply chain management (SCM) research in the last five years from the standpoint of existing methodologies. The state of research is assessed by examining the research design, number of hypothesis testing, research methods, data analysis techniques, data sources, level of analysis and country of authors.
Design/methodology/approach
The review of SCM and logistics research is based on 442 papers published from 1999 to 2003 in the following three academic journals Journal of Business Logistics, International Journal of Physical Distribution & Logistics Management, and Supply Chain Management: An International Journal.
Findings
Major findings show that there is an increase in the direct observation methods like case studies. In general, the research is more interpretive in nature. Survey method is still holding the highest position. More advanced techniques are being used for data analysis in empirical studies and there has been an increase in hypothesis testing. The trend in survey research is moving from exploratory to model building and testing.
Research limitations/implications
The gaps identified in the review were: there are very few inter disciplinary studies; innovative application of secondary data is lacking, (c) research at inter organisation level is scanty; and the current state of research has failed to integrate all the firms in the value chain and treat them as a single entity.
Originality/value
The methodological review will provide increased understanding of the current state of research in the discipline.