The International Journal of Logistics Management

Stephen Hanman

doi: 10.1108/09574099710805637pmid: N/A

Benchmarking is an improvement technique that considers how others perform a similar activity, task, process or function. This article details the application of benchmarking as an improvement technique. It provides a background of what to benchmark and the selection of benchmarking partners. A methodology for defining supply chain management best practice is explained as well as the marriage between benchmarking and networking to provide an ongoing improvement focus.

James K. Higginson; Ashraful Alam

doi: 10.1108/09574099710805646pmid: N/A

Discussions of supply chain management (SCM) techniques have focused on large manufacturers and retailers. Smaller firms are part of a larger supply chain(s), and also experience market uncertainties and difficulties in maintaining efficient material and information flow. This paper reports on a study of the use of SCM techniques in medium‐to‐small manufacturing (MTSM) firms. The study consisted of interviews with executives, and a mail questionnaire asking participants to indicate the extent of their firm's use of specific techniques identified in the literature as contributing to the success of SCM. The study found that the use of SCM techniques vary in extent and between industries, and that the organizational structure of MTSM firms has both helped and hindered the implementation of SCM. Greater education about the benefits, costs, and techniques of SCM is required at all levels of organization.

Amit K. Ghosh; Martha C. Cooper

doi: 10.1108/09574099710805655pmid: N/A

Canadian and United states managers identified NAFTA‐related benefits and threats. These factors were related to the managers' overall perceptions of the effect of NAFTA on firm performance. Results indicated that NAFTA's perceived benefits include increased access to the Mexican market and to other Latin American markets, improved customs procedures, and increased effectiveness and efficiency in logistics. However, managers were concerned about inefficiencies in logistics and customs procedures, currency fluctuations, and differences in culture and business practices. Managers with little experience in Mexico had lower estimates of NAFTA's potential benefits, the barriers to trade in Mexico, and NAFTA's potential positive impact on their firm's performance. They also believed that NAFTA's primary influence on firm performance arises from the increased access to Latin American markets, while barriers in Mexico were discounted. The view of experienced managers was balanced: NAFTA's benefits were weighed against Mexico's drawbacks. Access to the Mexican market was important, but not as important as logistics‐related benefits.

Rachel Mason‐Jones; Mohammed M. Naim; Denis R. Towill

doi: 10.1108/09574099710805664pmid: N/A

The use of pipeline feedback to ensure good control of material flow systems has been developed over the years on a pragmatic basis. More recently, the mechanism by which the improved control is achieved has been the subject of theoretical analysis. In turn, this has led to recommendations for good parameter settings which may be used with confidence when applied to a particular generic decision support system (DDS) known as the “to make” model. One consequence of utilizing pipeline feedback is the enhanced damping capability of this system. In our experience, many supply chains may be represented by the coupling together of a series of To‐Make models. In this paper, we show that the use of supply chain feedback within each echelon greatly reduces the order amplification as it proceeds upstream from the market place. Using as an example a model of the Beer Game Supply chain, it is concluded that demand amplification is readily reduced by a factor of 2:1.

Martin Christopher; Helen Peck

doi: 10.1108/09574099710805673pmid: N/A

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.

Alan Harrison

doi: 10.1108/09574099710805682pmid: N/A

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.

Patricia J. Daugherty; Alexander E. Ellinger; Quentin J. Plair

doi: 10.1108/09574099710805691pmid: N/A

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.