International Journal of Physical Distribution & Logistics Management

Terrance L. Pohlen; Thomas J. Goldsby

2003 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030310499268

Supplier managed inventory (SMI) and vendor managed inventory (VMI) have emerged as potential first steps towards successfully integrating activities and information across multiple firms. Despite the potential benefits, managers interested in these programs often cannot generate the “buy‐in” among fellow management and executives or among those in the collaborative firm. The barriers stem from a misunderstanding of the concepts and an inability to demonstrate their potential effect on shareholder value across both firms. This paper draws a distinction between SMI and VMI and identifies where the approaches should be applied. A simultaneous economic value added (EVA) analysis from the customer and supplier perspectives is proposed as a means to demonstrate the effect on shareholder value, measure performance, and overcome the obstacles confronting implementation.

B.S. Sahay; Ramneesh Mohan

2003 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030310499277

Increasing uncertainty of supply networks, globalization of businesses, proliferation of product variety and shortening of product life cycles have forced Indian organizations to look beyond their four walls for collaboration with supply chain partners. With a gross domestic product (GDP) of over US$474.3 biilion, the Indian industry spends 14 percent of its GDP on logistics. Considering this scenario, it is necessary to study the supply chain practices being followed by the Indian industry and to suggest areas for improving the same. This paper is based on a joint survey, covering 156 organizations, carried out by Management Development Institute, Gurgaon and KPMG India. The paper primarily focuses on the status of four major supply chain dimensions. The paper recommends that the Indian industry should align supply chain strategy with business strategy, streamline processes for supply chain integration, form partnerships for minimizing inventory and focus on infrastructure and technology deployment to build a India‐specific supply chain.

Robert J. Trent; Robert M. Monczka

2003 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030310499286

The ability to satisfy customer demands while responding to relentless competitive pressure requires creative and often complex approaches to managing a firm's supply chain. Perhaps more than any other area, executive managers increasingly believe that a concept called globalization offers the best opportunity to achieve major performance gains. One area where many companies can begin to capture the benefits of globalization is global sourcing, which involves the worldwide integration of engineering, operations, and procurement centers within the upstream portion of a firm's supply chain. Unfortunately, capturing the benefits potentially offered by globalization is often limited by a lack of understanding concerning how to pursue this important topic. To help overcome this limitation this article presents a five‐level continuum that illustrates the differences between international purchasing and global sourcing, examines the factors that are the most critical to global success, and concludes with a brief discussion of future global sourcing directions.

Ross L. Chapman; Claudine Soosay; Jay Kandampully

2003 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030310499295

Service industries hold an increasingly dynamic and pivotal role in today's knowledge‐based economies. The logistics industry is a classic example of the birth and development of a vital new service‐based industry, transformed from the business concept of transportation to that of serving the entire logistical needs of customers. Quantum advances in science, technology, and communication in the new millennium have compelled firms to consider the potential of the so‐called new “resources” (technology, knowledge and relationship networks) that are essential if firms are to operate effectively within the emerging business model, and to utilise the opportunities to innovate and gain market leadership. Through an extensive literature review, this paper examines the factors that nurture innovation in logistics services, identifies the contributions of the new “resources” and, using industry examples, examines the application of these resources to logistics firms as they assume an extended role within the new business model.