The International Journal of Logistics Management

Lambert, Douglas M.; Burduroglu, Renan

doi: 10.1108/09574090010806038pmid: N/A

In order to receive adequate rewards for the firm's innovations and performance in logistics, managers have to measure and sell the value that is being provided to customers. Value, once determined, must be sold to customers and also to top management within the firm. There are several value metrics mentioned in the literature, ranging in financial sophistication from customer satisfaction to shareholder value including: customer satisfaction, customer value‐added (CVA), total cost analysis, segment profitability analysis, strategic profit model and shareholder value. While customer satisfaction and CVA may lead to the achievement of higher shareholder value, the specific connection to changes in value for the customer or the supplier are typically not made. The other measures focus on the measurement of value in financial terms. However, financial measurements such as total cost analysis only capture part of the value created by logistics. One of the problems faced by logistics professionals over the years is that logistics has been viewed simply as a cost that needs to be reduced. Segment profitability analysis and the strategic profit model are more complete measures of the impact of logistics, but they are used to evaluate historical performance and lack measures of risk and the time value of money that are included in shareholder value.

Eric Johnson, M.; Anderson, Emily

doi: 10.1108/09574090010806047pmid: N/A

The value of postponing product differentiation until final distribution for manufacturers who market a family of product derivatives through multiple channels is examined. A model is developed of a supply chain that distributes many short‐lived products through different channels. Using the model, we find the postponement is particularly valuable for managing short‐life products. Postponement increases distribution service levels while reducing costs and order fulfillment risk. Postponement is particularly valuable when there are many derivative products and forecast error is high. Trade‐off curves are presented, that allow managers to evaluate the benefits of investing in postponement strategies.

van Hoek, Remko I.

doi: 10.1108/09574090010806056pmid: N/A

Mass customization is coming to the forefront of international supply chains, contributing to an increasing focus on postponement. Third‐party logistics providers, are targeting postponement applications as an extension of their service portfolios. Findings from a multi‐annual survey (1996‐1999) are presented to generate insights into the supply chain mechanisms service providers can use to develop postponement services. A framework for achieving extension of their activities is then developed.

Dadzie, Kofi Q.; Lee, Euehun; Dadzie, Evelyn W.

doi: 10.1108/09574090010806074pmid: N/A

This article addresses the issue of adoption timing in the diffusion of logistics technology. An event history analysis of warehouse automation technologies confirms the conceptual soundness of this relatively new procedure for predicting adoption of logistics technology. Implications for logistics technology research and managerial practice are presented.

Småros, Johanna; Holmström, Jan; Kämäräinen, Vesa

doi: 10.1108/09574090010806065pmid: N/A

Currently, efforts in the e‐grocery business focus on improving the purchase transaction and physical distribution of goods. However, simply improving ordering and fulfillment does not make e‐grocery shopping a viable competitor to the current supermarket business model. To become a profitable growth business, the e‐grocers have to offer their customers more value. It is not enough to offer customers a range of physical products. A range of new meaningful services is also needed. This article investigates how such new, breakthrough services can be developed. A framework for systematically examining customer demand and identifying corresponding services is presented. The importance of the e‐grocer being able to offer the right mix of services to meet the customers' individual and changing needs is demonstrated. Concrete examples of both new services and a service mix are described.

Kallio, Jukka; Saarinen, Timo; Tinnilä, Markku; Vepsäläinen, Ari P.J.

doi: 10.1108/09574090010806083pmid: N/A

The focus on reengineering in the early 1990s, and the more recent emphasis on process management and change management have increased both practitioners and researchers interest in the issues of measuring processes. The contradictory results of process change projects reported in the literature and our observations from research suggest conflicting requirements for measurement systems. In this article, we review process measurement schemes with particular emphasis on the measures of time, quality, costs and efficiency. With five case studies, we illustrate process structures and related measurements for both customized and standardized deliveries. A framework for setting objectives for different process types is proposed. The result is a normative scheme for different processes that suggests ways to set meaningful objectives for time, quality, costs and efficiency. Finally, conclusions and implications are presented.

Vokurka, Robert J.; Lummus, Rhonda R.

doi: 10.1108/09574090010806092pmid: N/A

In today's competitive environment, markets are becoming more international, dynamic, and customer‐driven. Customers are demanding more variety, better quality and service, including both reliability and faster delivery. Technological developments are occurring at a faster pace, resulting in new product innovations and improvements in manufacturing processes. The resulting competitive environment requires low cost, high quality products in increasing varieties. These changes have instigated changes in business and manufacturing strategies.

Wagner, William B.; Frankel, Robert

doi: 10.1108/09574090010806100pmid: N/A

Due to the increasingly competitive global business environment supply chain compression (reducing or eliminating the number of unnecessary logistical activities in a given supply chain) will be imperative for carriers, shippers and customers. Consequently, a premium will be paid for those carriers that are convergent. That is, convergent carriers performance must exceed expectations regarding achievement of established logistics cost and service objectives by performing whatever functions are required to satisfy supply chain participants. Such carriers will proactively work with both shippers and their customers to compress the supply chain by limiting unwanted actions while accomplishing mutually beneficial goals. In so doing, service to their customers is being elevated to the next level.