bluuebunny/crossref_metadata_2025 huggingface dataset:
Just‐ In‐ Time : Some Effects on the Logistics Function
Authors: Swenseth Scott R. , Buffa Frank P.
Published: June 2007

This article provides an analysis of inbound logistics incorporated in a JIT manufacturing environment. An inventory‐theoretic model is presented that measures the implications of JIT manufacturing on the logistics process and the ability of inbound consolidation opportunities to accommodate these implications. Key components of the inventory‐theoretic model are indentified and the sensitivity of the model to these components is analysed.
Implementing Drum‐Buffer‐Rope to Control Manufacturing Lead Time
Authors: Fry Timothy D. , Karwan Kirk R. , Steele Daniel C.
Published: June 2007

Drum‐Buffer‐Rope (DBR) is a relatively new approach to inventory and logistics management that effectively supports reduced manufacturing lead‐time. Previous studies have not emphasized this fact nor explained how it is accomplished. This paper describes DBR mechanics, proposes appropriate implementation steps, identifies key ideas, and reports experience with one DBR application. Key ideas identified include the use of input control and excess capacity. Input control is readily implemented within DBR while excess capacity permits DBR flow to be maintained. The reported application demonstrates both the effectiveness of DBR in reducing lead‐time and its vulnerability to misunderstanding.
Perspectives on Global Logistics
Authors: Capacino William C. , Britt Frank F.
Published: June 2007

The global dimension of logistics management will become increasingly prominent through the 1990s. As such, logistics managers will face new challenges and they must begin preparing for these challenges now. This article outlines six imperatives or principles which should guide the thinking of logistics managers as they develop their global logistics capabilities.
Co‐Makership Relationships in European Distribution
Authors: Backler Gary
Published: June 2007

Co‐makership is the process by which two or more participants in an enterprise cooperate to produce a good or a service. Co‐makership relationships have become increasingly advanced at the production end of the supply chain. They are now extending downstream, to the physical distribution end. The extension of such relationships implies significant changes for the distribution industry and its major players.
A Shipment Information Centre
Authors: Sheffi Yosef
Published: June 2007

The revolution in information processing and communication technology has transformed the logistics business and opened new opportunities. To capitalize on these opportunities one can imagine a computer system which can manage and provide decision support across all facets of the transportation and logistics function for today's complex worldwide business enterprises. This paper outlines such a system — the shipment information centre. It includes information gathering, processing and reporting from the point a shipment is ordered through its movement, delivery, the associated payment, and subsequent analysis based on its movement.
The Status and Impact of Logistics Issues in the Success of Co‐Production via Maquiladoras
Authors: Fawcett Stanley E.
Published: June 2007

Co‐production through maquiladora operations has become an increasingly popular approach to meeting the competitive challenges presented by economic globalization. To take full advantage of the benefits available through co‐production, a comprehensive logistics system must be put in place to support the geographically separated production activities. This article explores the level of emphasis companies place on logistics issues in the initial decision to establish maquiladora operations. Findings indicate that much greater emphasis is placed on manufacturing issues than on logistics issues; however, those firms that were classified as high‐emphasis firms experienced higher levels of performance than low‐emphasis firms.
The Paradox of Logistics in Europe
Authors: Cooper James
Published: June 2007

The completion of the Single European Market in 1992 has major implications for logistics throughout the 1990s and beyond. However, as logistics has come under the spotlight, many managers and academics have come to realize that their understanding of the field is limited. In particular, both the differences in practice between countries and the future directions for innovation in logistics remain obscure. This paper focuses on manufacturers and retailers ‐ both key players in many European supply chains ‐ to assess the current and future development of logistics. It then develops a market segmentation model for logistics services which is applied to a selected number of countries. Application of the model shows it to be a useful tool in developing an understanding of the European marketplace for logistics services.
Some Propositions About Outsourcing The Logistics Function
Authors: La Londe Bernard J. , Maltz Arnold B.
Published: June 2007

As business firms and even public sector operations opt to run leaner operating systems, the question of outsourcing becomes an increasingly popular topic for discussion. There are substantial differences between countries and between industries on what is considered “best practice” in outsourcing. There is ample evidence that some of these views on outsourcing are changing and will continue to change during the 1990s. This paper offers eight central propositions on logistics outsourcing with special emphasis on warehousing. The paper briefly reviews selected foundation literature in the area and then shapes the eight propositions. Findings are reviewed from an empirical study of U.S. firms. Among the findings are that there are significant differences across industries in their use of outsourcing. Each of the propositions are examined in turn, the evidence reviewed and conclusions and implications presented. The thrust of the findings suggest a new level of consideration for outsourcing as an element of logistics strategy.
International Purchasing Alliances: An Empirical Study
Authors: Ellram Lisa M.
Published: June 2007

In this exploration of formal international purchasing alliances, a broad overview of why firms become involved in international purchasing alliances is developed. Then, using a data base developed based on formalized international alliance activity reported in The Wall Street Journal, characteristics of international alliances are explored. The research also uses exploratory case studies to corroborate and develop a deeper understanding of international purchasing alliances. Implications of international alliance involvement for the purchasing function are also discussed.
Purchasing Intelligence Systems In Small Manufacturing Firms: Present Status and Future Direction
Authors: Festervand Troy A. , Meinert David B.
Published: June 2007

Information obtained from a Purchasing Management Intelligence System (PMIS) can provide the valuable input into a firm's strategic planning process. Because of scarce resources and the criticality of market mistakes, it is even more essential that small firms take advantage of this information resource. This articles reports the results of a study undertaken to determine the status of purchasing intelligence systems in small manufacturing firms. The results indicate that while purchasing intelligence systems exist in most small manufacturing organizations, their focus is on conventional rather than strategic activities. The results also indicate that numerous obstacles limit the effectiveness of purchasing intelligence systems. In addition to a lack of preparedness respondents identified procedural problems, a lack of resources and a weak effort/outcome relationship.
Becoming a “World Class” Company With Logistics Service Quality
Authors: Stock James R. , Lambert Douglas M.
Published: June 2007

A “world class” organization must provide high levels of logistics service quality to customers. Knowledge of customer expectations and an understanding of the firm's performance on logistics service attributes relative to competitors are vital to achieving service excellence. Research studies in four industries identify the most important logistics service attributes in business‐to‐business settings. There is consistency across industries in terms of the attributes considered most important by customers. Typically, vendors within an industry do not perform up to customer expectations, which provides the opportunity for a firm to gain a competitive advantage over industry rivals.
A Decision System to Aid Canadian Exports to Europe
Authors: Barkhouse Carolynn I. , Bookbinder James H.
Published: June 2007

Today, many Canadian firms are seeking additional profits through sales to the European Community (EC). Successful market development in Europe will first require good contacts to obtain the best distribution channels. Access to the EC can hence be complicated through lack of knowledge of logistics systems in Europe and in particular countries. Secondly, vast numbers of rules, regulations and laws govern the exportation business. A firm can get bogged down simply from red tape. A European logistics information system could facilitate expansion to the EC. If properly designed and implemented, such a system could support a user in dealing with the two preceding issues. That system could furnish data on European logistics, and help especially with legal questions and paperwork. This article presents a conceptual model, and the general requirements and capabilities, of such a decision system to aid Canadian exports to Europe.
International Logistics: A Diagnostic Method for the Allocation of Production and Distribution Facilities
Authors: van de Ven A.D.M. , Ribbers A.M.A.
Published: June 2007

Since the 1970s, companies have become more global, resulting in complex production and distribution networks, and in flows of goods across oceans and borders. The management of these complex systems is a real challenge.
Firms nowadays face the questions: “Where is the best place to manufacture our products?” and “What is the best way to distribute them to the markets in the different countries?”
When a firm considers expanding its production capacity, managers are confronted with the questions: “Where should the new factory be located?” or “What is the best opportunity for a merger or takeover”? In order to answer these and related questions one needs a systematic method to evaluate existing and alternative production and distribution structures and their related material flows. In this article a diagnostic method is presented which can be used as a decision support system for such strategic questions.
Strategic Options For Road Transport In Europe Beyond 1992
Authors: Gentry Julie J. , Vellenga David B.
Published: June 2007

With the “EC 1992” deadline already elapsed, the European logistics environment continues to go through unprecedented change. European shippers are making significant modifications to their distribution networks and their overall logistics strategies. Although more price/service offerings and lower transportation rates have been forecast as benefits for shippers, the overall impact of the Single European Market on the operating strategies of carriers and other logistics providers remains unclear. The European transportation industry is quite different from that found in the United States in either the pre‐ or post‐deregulatory environments. Therefore, shippers cannot easily forecast what the future will hold with respect to the structure of the evolving European motor carrier industry. The objective of this research is to assess the changing European motor carrier conditions and predict how carriers may adapt to the new environment by moving into various operating strategies. By more fully understanding the probable pricing and service options available in the emerging pan‐European motor carrier industry, shippers can maximize the likelihood of selecting motor carriers that can meet the needs of their overall logistics strategies in the new operating environment.
Characteristics of Supply Chain Management and the Implications for Purchasing and Logistics Strategy
Authors: Cooper Martha C. , Ellram Lisa M.
Published: June 2007

The concepts of a supply chain and supply chain management are receiving increased attention as means of becoming or remaining competitive in a globally challenging environment. What distinguishes supply chain management from other channel relationships? This paper presents a framework for differentiating between traditional systems and supply chain management systems. These characteristics are then related to the process of establishing and managing a supply chain. A particular focus of this paper is on the implications of supply chain management for purchasing and logistics.
Constraint Management: A Description and Assessment
Authors: Jackson George C. , Low James T.
Published: June 2007

In recent years a growing number of firms have reported dramatic results from an operation's improvement technique called Constraint Management (CM). For example, Ford Motor Company's Electronics division attributes reductions in manufacturing cycle time as high as 89 per cent, 76 per cent fewer product returns, reductions in inventory of 49 per cent and 43 per cent lower freight costs to its implementation of CM. Others such as GM, Grand Rapids Spring and Wire, Valmont/ALS, and Kent Moore Cabinets report similar results. The purpose of this paper is to provide the reader with a basic understanding of Constraint Management, which has also been referred to as synchronized manufacturing; the Drum, Buffer, Rope technique; OPT (Optimized Production Technology); the Theory of Constraints, and to explore its potential impact on logistics managers.
A Framework for Total Cost of Ownership
Authors: Ellram Lisa M.
Published: June 2007

Total cost of ownership is a concept which strives to analyze and understand the true cost of doing business with a supplier, going well beyond price. This paper briefly explores trends which have increased interest in total cost of ownership analysis. Barriers and benefits of total cost of ownership are also discussed. The main thrust of the article is to present an eight stage framework for total cost of ownership implementation. This framework was developed based on case studies of seven firms which use total cost of ownership in purchasing. The framework includes a number of decisions that firms considering total cost of ownership must face, and a discussion of how these decisions were resolved by some of the case study companies. The paper concludes with an evaluation of the framework, and some suggestions for future total cost of ownership research directions.
Foundations for Successful Continuous Replenishment Programs
Authors: Andraski Joseph C.
Published: June 2007

In the future, earnings ‐ perhaps even survival, will depend upon strong and enduring relationships between manufacturers and their customers. Continuous replenishment is rapidly emerging as a value‐added service that enhances the development of these relationships. For the most part, such partnerships have been engaged with positive expectations of reducing costs in the near term. However, in order to realize the real, mutual benefits of continuous replenishment, it is critical that both parties have a foundation of second business practices which will support this new way of doing business and its many and various effects upon the supply chain. This means establishing organizational alignments which facilitate a process, installing new or different technology and securing the support of senior management to champion the concept of supply chain management.
Benchmarking Logistics in Manufacturing Firms
Authors: Daugherty Patricia J. , Dröge Cornelia , Germain Richard
Published: June 2007

Benchmarking has become more commonplace in recent years as managers sought to improve their firms' operations by examining strategic practices of leading companies. The focus of the current research is the benchmarking of logistics among United States manufacturers. The researchers explore the relationships between benchmarking practices and selected organizational variables. Benchmarking relates to size, internal and supplier performance measurement, organizational formalization, and technology adoption.
Incremental and Breakthrough Process Improvement: An Integrative Framework
Authors: Ahire Sanjay L. , Waller Matthew A.
Published: June 2007

The total quality management (TQM) revolution of the 1980s and recent emergence of business reengineering (RE) has shifted the focus of quality improvement efforts from individual products to processes which lead to the creation and supply of these products. The literature, however, lacks a comprehensive framework for process improvement. In this paper, we present a seven‐dimension framework of process quality. These dimensions are explained with illustrations of three important business processes: logistics, order fulfillment, and new product development. These dimensions are further used to develop a model for long‐term improvement in a business process. The model proposes a blend of breakthrough improvements (B‐I) achieved through RE and incremental improvements (I‐I) realized through TQM. Furthermore, it provides a framework for improving the quality of the process along the seven dimensions in the context of B‐I and I‐I. Finally, implications of this work for the theory and practice of business process improvements are discussed.
Internationalization and Localization of the Kyoryoku Kai: The Spread of Best Practice Supplier Development
Authors: Hines Peter
Published: June 2007

The article reviews how lean production can be taken into supplier bases in both Japan and the West. The exemplar supplier network as demonstrated by Toyota and Hitachi in Japan are seen to be the result of a lengthy process whereby all members of the supplier network, both direct and indirect sources, have been developed to be world class. The most important factor exhibited by the Japanese in building these inter‐company relationships and creating a world class supplier base is the Kyoryoku Kai or Supplier Association. These Kyoryoku Kai have been utilized to spread the types of innovative strategies, work practices and manufacturing techniques synonymous with large Japanese final assemblers throughout the extended supplier network. However, until very recently the Kyoryoku Kai has not been seen outside Japan. The paper explores why this is the case and how this is beginning to change by reviewing some pioneering ventures in Europe. Further, a four stage model for internationalization of the Kyoryoku Kai is proposed, designed to help companies steer a course towards the creation of their own world class supplier networks.
Product Variety and Just‐in‐Time: Conflict and Challenge
Authors: Bennett David , Forrester Paul
Published: June 2007

This paper addresses the question of how just‐in‐time can be implemented within high variety manufacture. To illustrate some of the principles in relation to the high variety‐low volume situation the case of a computer manufacturer is considered in detail. For contrast the paper also considers the case of the manufacture of highly‐configured four wheel drive vehicles where both variety and volumes are high. The most important issue in high variety/low volume production is that JIT operation should be seen in terms of the tactical holding of inventory in upstream buffers within the supply chain so that value is not added to work in progress prematurely. Tactical buffers ensure that service levels are maintained and the risk of stock‐outs is minimized. In high variety/high volume production schedule integrity is the key factor, unreliable schedules being a major inhibitor to the introduction of JIT.
An Investigation of the Determinants of Extrinsic Job Satisfaction Among Drivers
Authors: Richard Michael D. , LeMay Stephen A. , Stephen Taylor G. , Turner Gregory B.
Published: June 2007

Driver turnover is one of the most pressing issues facing the trucking industry. Low job satisfaction has been identified as a major reason for turnover among employees. Conventional wisdom in the trucking industry is that low pay and lack of home time are the factors that cause driver dissatisfaction. This manuscript investigates this conventional wisdom and draws on the theory of met expectations to help identify other factors that lead to driver dissatisfaction. The results indicate that conventional wisdom is only partially correct, and that the factors that cause driver dissatisfaction are directly controllable by the firm.
Supply Chain Redesign
Authors: Hewitt Fred
Published: June 2007

One criterion by which the relative importance of various business processes may be judged is their potential impact on relationships with external customers. Another criterion is the potential impact that re‐engineering the process might have on business results. It is suggested that on both of these counts “Supply Chain Redesign” should rank near the top of most enterprises' list of re‐engineering initiatives. The concepts of process efficiency and process effectiveness are investigated by reference to the supply chain redesign experiences of a number of major corporations. The conclusion is drawn that process‐oriented supply chain redesign can lead to levels of intra‐enterprise and inter‐enterprise operational efficiency and effectiveness which have previously been unobtainable even in leading edge companies.
Organizational Structure: Influence on Logistics Integration, Costs, and Information System Performance
Authors: Stank Theodore P. , Daugherty Patricia J. , Gustin Craig M.
Published: June 2007

Organizational structure significantly influences firm performance. A recent survey of logistics professionals revealed that centralized structures accommodated logistics system integration better than decentralized structures. Also, centralized firms spent a lower percentage of net sales on logistics costs and information system support costs than decentralized firms. On the other hand, no signficiant differences were identified between centralized and decentralized firms in terms of information system performance. Information system support needs were addressed comparably regardless of organizational structuring. However, while centralized and decentralized firms exhibited similar capabilities in terms of effectiveness (reaching goals), centralized firms appeared to be more efficient (resource utilization).
Logistics Process Redesign: Some Useful Insights
Authors: Persson Göran
Published: June 2007

During the 80's many companies made major changes in their logistics system. They redesigned their logistics processes and very often achieved significant performance and productivity improvements. Based on some of these experiences, the author of this article is suggesting a general framework for logistics process redesign, introducing a set of concepts and a set of related strategies for redesigning any logistics process.
Supply Chain Reengineering: A Supplier's Perspective
Authors: Coleman Julian L. , Bhattacharya Arindam K. , Brace Gordon
Published: June 2007

One of the more significant structural changes in Western manufacturing industry is the redistribution of “value addition activities” in product supply chains. Final assemblers are often choosing to subcontract the design and manufacture of large sections of their products in an attempt to focus their effort. In turn suppliers take on more of the design and assembly of the end product and may also choose to delegate some of their own activities to second line suppliers. These changes require that the profile of capabilities necessary to design and manufacture the product is also redistributed among the partners in the chain. Competition between suppliers is fierce, particularly in view of the fact that the changing structure favors fewer sources. The suppliers which survive will probably be those who successfully position themselves in terms of appropriate value adding capabilities and differentiation through high levels of customer service.
Logistics Network Design: Modeling and Informational Considerations
Authors: Ballou Ronald H.
Published: June 2007

This article provides an overview of the practical application of modeling to the business logistics network design problem. Various location models are categorized and selected ones are illustrated that represent an example of the class and/or that have been used extensively in practice. Suggestions are made as to how data can be aggregated to facilitate the modeling process. Numerous examples are given as to how and where these location models have been applied.
Reducing the Need to Forecast
Authors: Rafuse Maynard
Published: June 2007

Virtually every substantial business devotes a good deal of effort to forecasting demand. There are of course sound reasons for this. Companies require long term projections for capacity planning, for product development and for other strategic purposes. Medium term data are needed for tactical planning for financial, marketing and personnel. The value of short term forecasts, essentially used for production planning, is more problematical. This activity does not add any apparent tangible value and, moreover, is almost inevitably doomed to failure. Attempts to improve forecasts, a very common activity, often merely serve as tactics to divert management's attention from far more critical problems in a product's value system. An alternative approach is to develop value systems in which production forecasts are no longer needed.
Issues in Supply Chain Costing
Authors: LaLonde Bernard J. , Pohlen Terrance L.
Published: June 2007

Integration of the supply chain offers many opportunities to improve customer service and eliminate unnecessary costs. However, many firms lack the capability to determine the cost of moving product to market and where potential savings may exist. Supply chain costing provides an approach for measuring the cost of activities spanning the entire channel. Using cost information to evaluate channel performance has strategic implications regarding the composition and structure, evaluation of performance, and the allocation of benefits within the supply chain. Possessing the capability to improve customer value while targeting opportunities for cost reduction opens new frontiers for supply chain management.
Purchasing's Role in Supply Chain Management
Authors: Giunipero Larry C. , Brand Richard R.
Published: June 2007

The concept and importance of supply chain management (SCM) has been introduced and described at length in the literature. Several mostly conceptual definitions of SCM were found. To classify these multiple definitions and extend SCM to include a process orientation a conceptual model of SCM evolution was developed. This research proposes that SCM is an evolving concept with individual firms at different stages in their adoption of the concept. In its most advanced form SCM is not a subset of logistics but is a broad strategy which cuts across business processes both within the firm and through the channels required to reach the customer and involves the firm's suppliers. Thus SCM as a concept is organization‐wide; not logistics‐specific. An exploratory study of purchasing professionals was performed and it was determined that their definitions of SCM focused on developing relations with suppliers including partnerships. SCM provided purchasers multiple benefits including improved supplier coordination. This improved coordination resulted in greater commitment to long‐term supplier relations, with a focus on reducing cost to the buying organization.
The Structure Conundrum in Supply Chain Management
Authors: Bhattacharya Arindam K. , Coleman Julian L. , Brace Gordon , Kelly Paul J.
Published: June 2007

Supply Chain Management leading to concepts such as lean enterprise is much in vogue today fuelled by the adoption of strategies and partnership practices used so successfully by the Japanese companies. As part of this change, product owners are outsourcing more value through both components and systems which has effectively meant redistributing competencies. This change is concurrent with the initiative to reduce the number of suppliers. The Japanese perfected their SCM strategies and practices within their compatible supply chain structure or keiretsus. The structures emerging in the western automotive supply chains (the paper is based on research on European automotive industry) are different in many key characteristics from the keiretsus. Secondly, they appear to be emerging in an ad‐hoc rather than a planned manner. This poses a critical question for western buyers ‐ is supply chain structure critical for superior performance and if yes, then which type of structure(s) provides the most benefits while maintaining or enhancing product uniqueness?
The New Logistics in Latin America: An Overview of Current Status and Opportunities
Authors: Zinn Walter
Published: June 2007

Latin America is undergoing significant changes in its business environment. As a general rule, trade is liberalized, inflation is significantly reduced, and firms are free to import technology. As a result, competition among firms in most industries has become intense. The initial objective of this paper is to review the notable impact of these environmental changes on the logistics function of firms competing in Latin America. Second, seven rules designed to help firms making logistics related decisions in the current Latin American environment are distilled from the review. The third objective is to present five logistics strategies representing growth opportunities for the near future. These strategies were chosen because the economic and technological foundations needed for their development are now in place.
Performance Indicators in Distribution
Authors: Ploos van Amstel Rien , D'hert Guido
Published: June 2007

Recently, several developments have led to the necessity for more control of the distribution process in terms of effectiveness and efficiency. Not only has the distribution element of total product costs increased significantly, but also distribution has become more important in fulfilling customer service. This paper presents a means to achieve better control of distribution by the use of a control system, using performance indicators comprising four hierarchical decision levels. Suggestions for making a suitable choice of performance indicators are presented.
European Logistics Alliances: A Management Model
Authors: Bagchi Prabir K. , Virum Helge
Published: June 2007

European business environment is experiencing major changes. The process of integration in Europe, the GATT agreements, the developments in Eastern Europe, and above all, global competition are pushing European businesses to become more competitive. One area that is receiving increasing attention of managers is logistics. The gradual deregulation of the transport marketplace and the lifting of border controls have added to the efforts to become more efficient in logistics.
Developing and Implementing Supply Chain Partnerships
Authors: Lambert Douglas M. , Emmelhainz Margaret A. , Gardner John T.
Published: June 2007

Many executives are developing supply chain partnerships in an attempt to reduce costs, improve service and gain competitive advantage. While partnerships can be beneficial, they are not appropriate in all situations. This article provides a model which can be used to determine whether a partnership is warranted, and if so, how close of a partnership is warranted.
Manufacturer‐Distributor Relationships and Channel Service Quality
Authors: Lemmink Jos , Wetzels Martin , Koelemeijer Kitty
Published: June 2007

In today's marketplace for fast‐moving consumer goods, many brands exist with similar characteristics. Development and maintenance of product differentiation becomes increasingly difficult to realize for manufacturers. Consequently, non‐price competition particularly by offering high quality customer services, becomes increasingly important as a marketing instrument by producers towards distributors. In this article, an empirical investigation has been conducted into the interrelationships between customer services offered by an international beverage manufacturer and customer sentiments towards partnership and dependence. It appears that despite the well‐established premium brand offered by the manufacturer and the context of a long‐term relationship, customer service significantly affects customer dependence and closeness of the relationship. Furthermore, a high degree of partnership increases customer perceptions of dependence and quality of services. In the long run, manufacturer‐distributor relationships striving for service quality and partnership will benefit from mutual reinforcement.
Commodity Indexed Surplus Asset Disposal in the Reverse Logistics Process
Authors: Chandrashekar Ashok , Dougless Thomas C.
Published: June 2007

An important function in purchasing is the disposal of excess material. Often the material is in the form of waste products such as paper, metals and plastics which are difficult to value. However, by utilizing a commodity‐market based approach, many items can now be disposed of in a timely, profitable and environmentally friendly manner. This paper discusses some of the issues involved in disposing of surplus material using commodity indices. The discussion also shows how surplus asset disposal is linked to developments in environmental logistics, reverse logistics and recycling. The general methods, issues and challenges in commodity disposal have been explained through a case study. The case study includes a total cost model showing the costs and the benefits of commodity based or commodity indexed disposal.
Assessing International Allocation Strategies
Authors: Vos Bart , van den Berg Edwin
Published: June 2007

Allocating the operations of multinational enterprises to geographic locations where performance can be optimized has become an important strategic issue. In view of the continuing growth of international trade and foreign direct investment, managers need systematic procedures to determine global allocation strategies. Available frameworks on global business strategy are typically abstract and generalized, making them less suited for the development of tailor‐made allocation strategies. Quantitative allocation models in operations research tend to be biased towards optimizing mathematical algorithms, making them less suited to support managerial decision making. This paper bridges the gap between generic strategy frameworks and highly quantitative operations research models by presenting a scanning tool to support decision making on strategic allocation issues. An important feature of this tool is to systematically filter available data, intended to quality and quantify critical product, process and market characteristics for specific product classes. The scanning tool has been applied in two cases, involving allocation decisions of a European multinational in the fast moving consumer goods industry.
Outsourcing Logistics Management Activities
Authors: van Damme Dick A. , Ploos van Amstel Marinus J.
Published: June 2007

In most developed economies the costs of logistics management are steadily growing and account for an increasing proportion of the gross national product. Logistics costs have become an important part of the added value of products and logistics management is increasingly regarded as an important weapon in the international competitive struggle, in particular by large market‐oriented companies. The emphasis in marketing strategies is shifting from product and price to promotion and place. Rapidly changing customer demands have an increasing effect on company policies. Reduction of product life cycles and assortment expansion will lead to faster development and delivery of new products and to smaller‐sized and more frequently placed delivery orders. Advancing technology will cause production to require more focus. Customers are becoming more demanding and manufacturers have to react faster to changing demand on the part of both private consumers and industrial customers. This requires enormous flexibility, which will be increasingly aimed at conquering and securing sales potential in the liberalized European market. Successful companies will focus on core activities. Activities other than core activities, but serving them, will have to be outsourced.
Mastering Logistics Change
Authors: Carlsson Jan , Sarv Hans
Published: June 2007

This article draws attention to the how of logistics management or logistics as part of the learning organization. The logistics discipline has advanced over the years, but these advances have been mainly on the what side, what could be done rather than how it is done. In a world of increasing opportunities, the restraining factor is increasingly how. New product and market strategies depend upon supply chain redesign to be effective. Components and production skills can be purchased, as can transportation. But implementing new systems designs in an increasingly turbulent and complex world requires unprecedented skills of change management.
Closing the Supply Chain Loop: Reengineering the Returns Channel Process
Authors: Clendenin John A.
Published: June 2007

Business process reengineering applied to the returns channel is becoming increasingly important as a result of marketplace requirements for productivity and customer satisfaction. This article provides an overview of a reengineering approach to “reverse logistics” and presents methodologies which may be helpful to management. Several examples from the literature are provided as illustrations of issues involved in reengineering the returns channel process and measuring return to available (RTA). The core processes of the Xerox Business Process Architecture (XBPA) are studied to identify the issues involved with solving the business issue by process rather than with functional strategies. Issues associated with business problem benchmarking as an input to reengineering and the key aspects of managing by process are also presented.
The Status of Supply Chain Management in Argentina's Food Industry
Authors: Sánchez Chiappe Ignacio , Angel Herrero Victor
Published: June 2007

In recent years, the food industry has evolved dramatically showing Argentina's real capacity for food production. A survey on supply chain management was developed and data were collected from both suppliers and buyers at three levels of the supply chain. Statistical significance in difference of means for both groups is analyzed and drivers and trends emerging from those samples are shown.
Managing Logistics in Fashion Markets
Authors: Christopher Martin , Peck Helen
Published: June 2007

The fashion industry has been beset by the problems of volatile and difficult to predict demand. Many companies involved in manufacturing and retailing in fashion markets have seen the profitability severely affected by their inability to match supply with demand. Traditionally, it was assumed that the problem lay with inaccurate forecasts and that if only those forecasts could be improved then everything would be fine. In fact, experience seems to suggest that even though forecasting techniques and methodology have continued to develop in their sophistication, they can never deliver the accuracy required for managing logistics in fast moving markets. The answer, we would suggest, lies not in better forecasts but in reducing the dependency on the forecast. The way to bringing this about, it can be argued, is through lead‐time management.
Investigating the Sources and Causes of Schedule Instability
Authors: Harrison Alan
Published: June 2007

The sources and consequences of schedule instability at an automotive assembler producing two models on the same assembly track are described. One model was produced under conditions of relatively lengthy stable schedules, the other under more unstable schedule conditions. The two logistics processes were compared, and measures of schedule uncertainty identified. The relative impact on human resources was explored by investigating constructs of the two production systems according to people who worked in the processes. Relative quality and productivity of the two systems were evaluated. It was concluded that there were advantages in both of these measures for the more stable production system, and that the supply chain and core manufacturing process were relatively lean. But the less stable production system provided greater responsiveness to the market and greater discretion to people working in the process.
Using Service to Create Loyalty with Key Accounts
Authors: Daugherty Patricia J. , Ellinger Alexander E. , Plair Quentin J.
Published: June 2007

In recent years, many retail industries have come to be dominated by a few extremely large competitors. For example, Wal‐Mart, Kmart, and Target prevail in the discount competitive set. Such customers are referred to as key accounts and are “treated differently” by selling firms. The accounts are given special treatment to keep them happy. The current research explores the issue of whether the extra services and commitment to key accounts are warranted. Based upon a survey of buyers within the personal products industry, the answer appears to be affirmative. Buyers for key accounts indicated significantly higher levels of customer satisfaction and customer loyalty in relation to distribution service than did the buyer respondents at all other accounts. The key account respondents apparently both recognize and value the extra efforts expended to service their accounts.
Strategic Sourcing
Authors: Anderson Matthew G. , Katz Paul B.
Published: June 2007

Procurement is playing an increasingly important role in helping major corporations achieve their savings and profitability objectives. What companies buy has been increasing in importance, size, and complexity, and thus, how companies buy has changed. Leading procurement organizations are exploiting several opportunities to leverage the corporate buy, optimize the supply base, minimize linked costs in the supply chain, and maximize the value of goods and services for the users. These opportunities can be described in a systematic framework of strategic sourcing that is applicable to services as well as materials. With the emphasis on shareholder value growth, industry leaders are turning to new business designs to capture and sustain profitable growth. Strategic sourcing can be taken to new levels and applied to the business designs that will shape corporate revenue realization as well as competitive cost position. By building sourcing process excellence and aligning capabilities with the requirements of the corporate buy, procurement can have a key role in the corporate quest for value growth.
The Effect of Just‐in‐Time with Customers on Organizational Design and Performance
Authors: Claycomb Cindy , Dröge Cornelia , Germain Richard
Published: June 2007

Faced with environmental volatility and increased competition, firms are turning to supply chain management and associated time‐based initiatives to develop sustainable competitive advantages. This research examines just‐in‐time (JIT) as one such logistics strategy. While prior research has focused on internal and upstream JIT (i.e., production and purchasing), the present research examines the extent to which exchange with downstream customers is just‐in‐time oriented. The results of the research show that JIT with customers is associated with organizational designs that are more decentralized, integrated, and formalized and with better performance in terms of less finished goods inventory and higher overall financial performance. The analysis controls for firm size, production technology, and tenure of the senior logistics executive and shows that the effects of JIT with customers on organizational structure and performance are, with a limited number of exceptions, relatively robust.
Third‐Party Logistics: Is There a Future?
Authors: Berglund Magnus , van Laarhoven Peter , Sharman Graham , Wandel Sten
Published: June 2007

In this article, the authors describe the results of a study on strategies of third‐party logistics (TPL) providers. The size of the TPL industry and the different requirements placed on logistics as opposed to basic services, such as transportation or public warehousing, justify the need to treat TPL as a separate industry. The authors describe three waves of entrants into the TPL industry and a taxonomy for value creation by logistics providers. Empirical findings for a strategic segmentation of the industry are presented. The strategic segmentation is connected to the waves of entrants and the taxonomy by an evaluation of required skills of TPL players. The TPL industry will soon reach an initial stage of maturity, but further changes are to be expected.
Using the Information Decoupling Point to Improve Supply Chain Performance
Authors: Mason‐Jones Rachel , Towill Denis R.
Published: June 2007

Traditionally, the decoupling point methodology has been associated with the material flow pipeline. However, to maximize improvement in supply chain dynamics, information flow is equally important. Many of the problems exhibited in the material flow pipeline are the result of the distortion of marketplace sales information as it is transferred upstream through the supply chain. This research expands on the traditional material decoupling point methodology and establishes the role of an information decoupling point within the supply chain. The authors demonstrate the business opportunities generated by first recognizing the existence of the supply chain information decoupling point and then learning how to utilize it to gain strategic advantage. In order to make sensible planning and delivery decisions, a business must be able to separate out contingency from real orders as they move upstream from the marketplace. It is the basis for supply chains moving towards continuous flow and away from point‐to‐point movements and ultimately, where appropriate, to holistic control.
Virtual Teaming in the Agile Supply Chain
Authors: Bal Jay , Wilding Richard , Gundry John
Published: June 2007

This paper describes the information flows in the supply chain, and identifies knowledge and expertise as richer more capable entities for its management than data or information. It briefly explores how the structure of the automotive supply chain is changing due to the pressures of increasing complexity and urgency. Then it highlights the inevitability of instability in the supply chain, through an evaluation of turbulence. Agility is identified as a response for coping with this uncertainty. The tool identified for introducing agility in the supply chain is Virtual Teaming. It achieves this by forming collaborative supply chain partnerships, unconstrained by geography that can quickly apply knowledge and expertise as corrective and preventive mechanisms. A survey of the suppliers to a major automotive manufacturer has highlighted the need for this form of working.