International Journal of Physical Distribution & Logistics Management

Marcello Braglia; Alberto Petroni

2000 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030010318829

In an era of global sourcing, the firm’s success often hinges on the most appropriate selection of its suppliers. Supplier selection is sometimes very complicated, owing to a variety of uncontrollable and unpredictable factors which affect the decision. Describes a multiple attribute utility theory based on the use of data envelopment analysis (DEA), aimed at helping purchasing managers to formulate viable sourcing strategies in the changing market place. An application of the methodology using actual data retrieved from a firm operating in the bottling industry is illustrated. DEA has proved to be capable of handling multiple conflicting attributes inherent in supplier selection while simultaneously trading‐off key supplier selection criteria.

Tage Skjoett‐Larsen

2000 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030010318838

The adoption of third party logistics is becoming widespread in the industry. Discusses various definitions of third party logistics and the theoretical background for the development of third party arrangements, including both transaction cost theory and network theory. A theoretical framework is then developed to explain the role and motivation for this development. Transaction cost analysis (TCA) explains the conditions under which third party agreements become preferable to the classical choice between market and hierarchy. Network theory explains the dynamics in third party cooperations. Three specific cases of third party logistics are included and analyzed on the bases of the theoretical framework. Concludes that third party logistics are not merely a means to cost efficiency, but also as a strategic tool for creating competitive advantage through increased service and flexibility. Furthermore, the discussion points to the importance of investment in human resources and change in attitudes as part of the success of third party arrangements.

John E. Tyworth; Alex Ruiz‐Torres

2000 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030010318847

Current studies indicate that buyers can improve lead‐time performance and reduce total inventory‐system costs by splitting orders between two suppliers. These studies, however, treat transportation only implicitly as an element of the cost of placing an order. This is an important limitation, because shipping costs increase disproportionately as the size of shipment decreases and typically comprise a sizeable portion of total logistics cost. Investigates the role of transportation in the decision to procure from either one or two suppliers. A state‐of‐the art model was first modified to treat transportation costs explicitly and then used to conduct 54 experiments to measure the gains or losses in total logistics costs under a variety of representative conditions.

Jay Sankaran

2000 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030010318856

It is well known that within an economic region, shippers’ practice of logistics is shaped significantly by various factors, such as transportation regulation. The precise purpose of this paper is to describe these factors and their influence on logistics practice in the New Zealand context. Discusses the various modes of domestic freight transport, as well as the deregulation and privatization of the transportation sector of the New Zealand economy. Also examines international shipping and airfreight in the context of New Zealand’s foreign trade. Identifies three sets of contextual factors (structural, regulatory, and developmental) that, in the New Zealand situation, shape shippers’ practice of freight logistics.