International Journal of Physical Distribution & Logistics Management

Göran Svensson

2003 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030310503325

Stresses the crucial importance of the balance between companies' policies of inventory management and the occurrence of disturbances in logistics flows. The study is based upon a mail survey in the automotive industry. It is concluded that there is in part a significant association between companies' inventories and disturbances in inbound and outbound logistics flows. The financial benefits that might be achieved through leanness in inventory management might also negatively influence the financial costs due to increased disturbances. Therefore, it is a crucial managerial task in the automotive industry to achieve a suitable balance between the inventory and the occurrence of disturbance within inbound and outbound logistics flows. It is this balance that generates the best managerial outcome in a competitive business setting. A principle of balance, a process of balance, and a typology of companies' inventories and disturbances in inbound or outbound logistics flows are introduced.

Amy Z. Zeng; Christian Rossetti

2003 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030310503334

Global sourcing is becoming a prerequisite for companies competing in today's market. The logistics costs often comprise a large portion of the total global sourcing cost, thereby determining the effectiveness of this procurement strategy. However, evaluating the logistics cost in a global context is frequently difficult. This paper presents a five‐step evaluation framework and illustrates how this framework can be implemented using a case study at a leading firm in the US aviation industry and its part supplier in Chengdu, China. The framework not only identifies the key logistics cost items, but also suggests a way of quantifying each of the cost elements. The computational part of the framework can be easily implemented on spreadsheets and offers substantial flexibility to accommodate assessment of various transportation alternatives and sensitivity analysis.

Barry Shore; A.R. Venkatachalam

2003 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030310503343

Competitive advantage is often determined by the effectiveness of an organization's supply chain, and as a result, the evaluation and selection of suppliers has become an increasingly important management activity. But the evaluation process is complex. The data that must be considered are both technical and social/organizational. Much of the data are difficult to obtain and ambiguous or vague to interpret. In addition, the dynamic global environment of changing exchange rates, economic conditions, and technical infrastructure, demand that the pool of potential suppliers be re‐evaluated periodically. Nonetheless, a rational process of evaluation must exist to select the most appropriate suppliers. This paper addresses one dimension of the evaluation process, the information sharing capability of potential supply chain partners. It is an especially important dimension since information technology is necessary to horizontally integrate geographically dispersed operations. Fuzzy logic, a subset of artificial intelligence, together with analytical hierarchy process is used to model this process and rank potential suppliers. It is an appropriate methodology to use for this application and has the potential to be used with other supply chain design decisions since it explicitly handles vague, ambiguous, and imprecise data.

A. Gunasekaran; E.W.T. Ngai

2003 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030310503352

In this paper, a case study conducted on a small third‐party logistics (3PL) company in Hong Kong is presented. This company is interesting in that it has been designated as the “king” of Hong Kong's 3PL (in‐bound) logistics companies. The company has been successful in its overall business performance and in satisfying customers. This company's strategic alliances with both clients and customers have helped to improve the utilization of its resources, such as warehouse space and transportation fleets. Also, the company is in the process of expanding its operations across greater China, with the objective of becoming a full‐pledged 3PL company. The analysis of this case focuses on the critical success factors (strategies and technologies) that have allowed a small company started only in 1996 to become so successful in its operations. Also, a framework has been provided for the company to develop its logistics operations as a full‐pledged 3PL company.