International Journal of Physical Distribution & Logistics Management

Pfohl, HansChristian; Large, Rudolf

1993 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600039310049763

Describes the countryspecific conditions and developments inCentral and Eastern Europe, the risks and opportunities of sourcing inthis region and the measures necessary to implement supply systemsincluding eastern suppliers. In order to use the future capabilities ofeastern companies, it will be necessary to shape longrunning,cooperative relations. Four major tasks of implementing procurementsystems involving suppliers from Central and Eastern Europe can bedistinguished the establishment of an appropriate internal organizationto facilitate sourcing in Central and Eastern Europe theidentification, assessment, and selection of eastern suppliers thedevelopment of suppliers capabilities and performance and theimplementation of logistical and legal relationships between the buyerand the supplier necessary for the operation of the procurement system.Therefore, not only the purchase prices have to be considered inprocurement decisions, but also any other related costs. Higherlogistics costs and higher transaction costs are the prices which haveto be paid for realizing large arbitrages caused by lower labour costs.Accordingly, the efficiency of sourcing from Central and Eastern Europecrucially depends on the ability of the western procurement managers torecognize specific conditions and to shape appropriate procurementsystems. Then logistics and transaction costs will be endurable.

Mattson, Melvin R.; SalehiSangari, Esmail

1993 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600039310049772

Compares the processes for decision making during the acquisitionof equipment and materials among firms in the USA, Sweden, France andSoutheast Asia. Reports the findings from a detailed questionnaire inwhich 236 firms in the fourcountry area participated. The companiesprovided data on buying centre influences and supplier search criteriawith half reporting for capital production equipment acquisition and theother half for key production materials. It was found that buyingdecisions in Sweden have the highest team effort while the USA has theleast, even though the American and Swedish firms had very similardemographics. Sweden depended on technical staff, both their own andsuppliers, much more than the other countries. There was no consistentpattern for purchasing department involvement. Except for the USAcapital equipment buying centres were much more inclusive than materialsbuying centres.

Chao, Chiangnan; Scheuing, Eberhard E.; Dubas, Khalid M.; Mummalaneni, Venkatapparao

1993 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600039310049817

Chinas foreign trade and investment policies have appeared moreattractive to Western marketers in recent years. China presents anopportunity for huge market potential and rapid growth for Americanmultinational firms. However, Western marketers have only limitedknowledge about Chinese purchasing decision making, particularly thesupplier selection and evaluation criteria of Chinese purchasingmanagers. Highlights six key criteria of supplier selection anddescribes the responses of a sample of Chinese purchasing managers.Segments the respondents into three clusters, based on similarities intheir supplier evaluation processes and differentiates these clusters interms of whether the managers emphasize reliable deliveries, pricecostconsiderations, or product quality. While these findings are of apreliminary nature, they reveal that serviceresponsiveness of asupplier is not a high priority as opposed to purchasing managers inWestern industrialized countries. As China moves rapidly towards amarket economy, many Chinese purchasing managers will require suppliersto improve their responsiveness, given comparable levels of price andquality. An understanding of this transition will help Western marketersto enhance their market positions in China.

Vickery, Shawnee K.; Carter, Joseph R.; DItri, Michael P.

1993 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600039310049826

Examines the cost performance of various strategies for managingforeign exchange risk in international sourcing. The strategiesrepresent a broad spectrum of approaches to exchange risk, ranging fromnave to active. Of particular interest is the comparison of thosestrategies which use exchange rate forecasts with those which do not.Focuses on movements in the German markUS dollar exchange rate for theperiod January 1986 through December 1990. Employs a historicalsimulation methodology to compare the performance of various strategiesover this time frame. The results suggest that active approaches toexchange rate management warrant further attention.

Maltz, Arnold; Riley, Linda; Boberg, Kevin

1993 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600039310049835

One strategy for dealing with the increasing problem ofcrossborder movement is to involve thirdparty specialists. Reports onan investigation of thirdparty use in maquiladora or twinplantlogistics across the USMexico border. A mail survey of 250 companiesoperating in the El PasoJuarex area was carried out. Results showedthat the surveyed firms used third parties more than US firms ingeneral.