International Journal of Physical Distribution & Logistics Management

Robert F. Lusch; Stephen L. Vargo

1998 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600039810247515

Globally a new wave of retailers are threatening the viability of many wholesalers, especially smaller more vulnerable wholesale distributors, as these new wave retailers aggressively compete for the business customer. To better understand this new form of competition, a theoretical model is developed from the organizational buyer behavior literature to explain the relative patronage preferences of business customers for wholesale‐distributors as a supply source versus two types of multiplex retailers ‐ warehouse home centers and office supply superstores. The model, previously untested in the business‐to‐business literature, postulates that business buyers select supply sources based on a “total value of purchasing” criterion. The total value is a function of price and the perceived costs associated with credit services, product‐acquisition services, and risk‐reduction services. The model is empirically tested in both an office supply superstore and warehouse home center setting with survey research conducted in six cities in the USA. Substantial empirical support, with the exception of the credit component, is obtained for the model.

Richard Wilding

1998 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600039810247524

Since the late 1950s it has been recognised that the systems used internally within supply chains can lead to oscillations in demand and inventory as orders pass through the system. The uncertainty generated by these oscillations can result in late deliveries, order cancellations and an increased reliance on inventory to buffer these effects. Despite the best efforts of organisations to stabilise the dynamics generated, industry still experiences a high degree of uncertainty from this source. The “supply chain complexity triangle” describes the interaction of deterministic chaos, parallel interactions and demand amplification. It provides a framework for understanding the generation of uncertainty within supply chains. The implications for supply chain strategy and manufacturing logistics are discussed.

Karel van Donselaar; Graham Sharman

1998 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600039810247533

Describes an experiment begun in 1994 at Eindhoven University in The Netherlands, which aimed for the integration of research, education and knowledge transfer to industry. This experiment focused on the transportation and distribution (T&D) sector in a province in The Netherlands. The aim was threefold: to find the key success factors for companies in the T&D sector; to involve a group of students who were ready to start their graduation project; and to help T&D companies to improve their competitiveness. Benchmarking was used to find the key success factors. Discusses the organizational setting and the methodology of the experiment. Pays attention to the issue of segmentation, which is considered to be crucial in benchmarking.

Robert E. Spekman; John W. Kamauff Jr; Niklas Myhr

1998 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600039810247542

States that we have witnessed, over the last several years, a profound change in understanding the dynamics of competitive advantage. Managers now acknowledge that a firm’s success is tied, in part, to the strength of its weakest supply chain partner. This paper develops the concept of supply chain management and argues that only through close collaborative linkages through the entire supply chain, can one fully achieve the benefits of cost reduction and revenue enhancing behaviors. Data are presented that look at a range of supply chain management practices and processes. By examining differences in practices and processes between buyers and sellers, along with the supply chain, attempts to understand better the challenges facing managers who espouse supply chain management. Also proposes a change in mind set for the traditional procurement manager and present insights for him/her to adapt to the requirements of the new competition.