International Journal of Physical Distribution & Logistics Management

Towill, D.R.; Naim, M.M.; Wikner, J.

1992 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600039210016995

Reviews the dynamic operation of supply chains and reaches somesimple conclusions for reducing demand amplification, which consequentlyattenuates swings in both production rates and stock levels. The resultsare based on one particular supply chain, for which the use of systemssimplification techniques has generated valuable insight into supplychain design. Although different strategies are compared for reducingdemand amplification as witnessed by one particular supply chain model,the conclusions are nevertheless thought to have wide application and,indeed, implication. Comments in depth on the significance of thesimulation results for the demand chain as a whole, and for the role ofan individual business within the chain. In the first instance, supplychain integration, and in particular free exchange of information, is aprerequisite for progress. In the second case, shows that reduction inlead times throughout the supply chain via JIT is similarly beneficial.Clearly pinpoints the limitation to supply chain improvement which canbe obtained as a result of using JIT alone. This can be an expensive andongoing process of improvement with many spinoff benefits.Nevertheless, shows that the improvement possible by JIT operation of anindividual business can be negated by the failure to design and managethe supply chain dynamics as a total system. The message for anindividual business is thus quite specific. Not only must lead times bereduced via JIT, but also the business must seek to be part of the rightsupply chain, if it is to remain competitive and stable.

Whyte, James L.

1992 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600039210017002

The UK market for freight transport services used to becharacterized by buyer inertia and high levels of source loyalty. Forthe last decade, suppliers of freight transport services have beenoperating in competitive markets in which supply has exceeded demand.Simultaneously attitudes to distribution management have been changing.Although transport costs account for a large percentage of totaldistribution costs, little is known of the effect of these changedattitudes on this function and on the nature of the relationshipsbetween buyers and suppliers. Using the Interaction Model of the IMPGroup as a conceptual framework for the research, reports the results ofa survey of transport managers conducted in Scotland, a coherentgeographical region within the United Kingdom. Contains tables showingthe distributions of ages and years of experience of transport buyers,their qualifications, the annual sum spent on transport and thecontribution of the cost of haulage to the final cost of the majorproduct transported, the frequency with which transport cost informationgoes to senior management and transport managers assessments of theirfirms senior managements attitudes to distribution. Shows thattransport managers have a higher status in their organizations thanbefore and greater independence of decision making. Provides profiles ofthe transport managers job in companies with an advancedand traditional approach to distribution. These changes inthe characteristics of transport managers and in the organizationalfactors which influence their behaviour are important to hauliers, asthey affect both the nature and the duration of the relationship betweenbuyer and supplier and the determinants of haulier selection.

Chan Cheung Ho, Dick

1992 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600039210017011

Studies the marketing system of the Manila International ContainerTerminal MICT in the Philippines. The data collection methodscomprised overseas trips to carry out unstructured field observation andinterviews, a nineitem structured questionnaire, and unobtrusivemeasures from Government statistical publications in four differentcountries. In the dataanalysis process, the questionnaire data wereused to rank the importance of services required by major shipping linesin order to formulate the appropriate marketing strategy. The Governmentstatistics data were used to test a hypothesis that Manila is morecosteffective as a transshipment centre compared with three other majorAsian ports. Testing of the hypothesis was based on the theory ofGeneral Equilibrium. A response rate of 60 per cent was obtained fromthe 30 mailed questionnaires. Finds that the most important servicesrequired by the major shipping lines were 1 berth availability, 2efficient operation, 3 cost. On the transshipment economics analysis,the alternative hypothesis It is more costeffective to use Manila as atransshipment centre compared with Hong Kong, Kaohsiung and Singapore,was found to be sustained. Notes, however, that, although Manila isfound to be the most costeffective on the whole system, Singapore isthe cheapest, when considering stevedoring cost only, while Hong Kong isthe cheapest when considering port charges and vesselsteaming cost. Onthe whole, the existing marketing strategy of MICT, as observed duringthe various trips, was found to be sound and welljustified.Nevertheless, makes recommendations, based on the findings in thisstudy, aimed at increasing berth availability, ensuring efficientoperation and being costcompetitive and effective.

Felix Offodile, O.; Arrington, David

1992 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600039210017020

As more and more companies embark on the neverending journey ofcontinuous improvement and worldclass manufacturing, their success willdepend to a great extent on their ability to win the purchasing battle.It is common knowledge that it is purchasings charge to oversee theacquisition and delivery of inventoried materials in a company. In aJustinTime JIT environment this traditional role of purchasing iscontinually changing to support production and service. Purchasing nowemphasizes ontime delivery of the right amount of competitively priced,high quality products to the right place. Any variation in this doctrineis considered wasteful under JIT. Discusses the strategic roles of JITpurchasing by examining the responsibilities, functions, and methodscurrently used by purchasing in the areas of vendor sourcing, transport,and product development. Further identifies purchasing as one of the keyelements to a companys competitiveness.