International Journal of Physical Distribution & Logistics Management

Jaana Auramo; Jouni Kauremaa; Kari Tanskanen

2005 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030510590282

Purpose – To provide empirical evidence of benefits from IT in supply chain management. Design/methodology/approach – Data in this qualitative study were collected through multiple enquiries. SCM consultant interviews gave an understanding of the current state of practice. A survey of 48 progressive companies was conducted to identify what IT solutions they have implemented in SCM. This was followed by 18 in‐depth case studies to identify the mechanisms for achieving benefits of IT in SCM. Findings – Based on the empirical studies five propositions are presented on the use and benefits of IT. First, successful companies have developed focused e‐business solutions for improving customer service elements that are most important in their business. Second, improved efficiency allows company personnel to focus more on critical business activities. Third, the use of e‐business solutions improves information quality. Fourth, e‐business solutions support planning collaboration and improved agility of the supply network. Finally, to gain strategic benefits, the use of IT has to be coupled with process redesign. Research limitations/implications – The sample of companies used in the study was selected by expert assessment and is biased towards companies willing to discuss and share results openly. Additionally, the focus of the paper was on single companies and not on the entire supply network. However, the findings of this study present an opportunity to further develop understanding of the underlying mechanisms of how IT investments benefit supply chain management. Originality/value – The paper fulfils an identified need for in‐depth case studies that analyze the possible mechanisms behind the practical benefits of IT in supply chain management.

Juha‐Matti Lehtonen; Johanna Småros; Jan Holmström

2005 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030510590291

Purpose – Aims to examine the value of manufacturer access to downstream demand information in managing product introductions and to Identify factors affecting this value. Design/methodology/approach – Simulation based on actual data on 19 product introductions is used for comparing different types of demand information and their usefulness to a manufacturer. Two metrics are introduced. Bias indicates if there is a consistent difference between demand information from two sources. Delay in demand synchronization measures how long it takes for demand information from two sources to start conveying demand similarly in a transient situation. Findings – Finds that, in the supply chain examined, demand variability is mainly induced by distributors, whereas bias and delay in demand synchronization are mainly induced by retail outlets, especially for products with large wholesale packages compared with their sales. Research limitations/implications – The simulation model is simple and does not enable realistic examination of how a manufacturer could best use downstream demand data in managing its operations. Further research including such mechanisms as forecasts and stock‐outs is needed. Practical implications – Provides a means for manufacturers to assess when they should invest in gaining access to downstream demand information and to estimate when their traditional information sources start to accurately convey end‐customer demand for new products. Originality/value – Although it has been suggested that the value of access to downstream demand information could be greatest in situations with transient or irregular demand, such as product introductions, this claim has not yet been thoroughly examined. This study is a first attempt at filling this gap in the theory.

Jenny Klevås

2005 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030510590309

Purpose – The outcome of product development, i.e. the product design, together with the packaging solution, has a great impact on the logistics performance of supply chains. Despite this, packaging has traditionally been given a very modest role in the product development literature as well as in the logistics literature. The aim of this paper is to show how logistics performance and product design can be affected, and improved, by the packaging organization within a company. Design/methodology/approach – A single case study has been conducted at IKEA, including on‐site interviews and review of internal documents. Along with the case study, a literature study has been conducted within the areas of product development, packaging and logistics. Findings – The IKEA case suggests that the packaging function should have a strong link to both the logistics function and the product development function within a product‐developing company to be able to improve the logistics performance. Research limitations/implications – As the evidence is collected through a single case study, the results are not to be seen as generalizable but should be regarded as a first step to future research within the interface of product development, packaging and logistics. Practical implications – Packaging and logistics are usually considered late in the product development process with the result that possible logistics solutions are constrained. Through considering “the whole package” – i.e. the product, the packaging and the supply chain characteristics – at an early stage in the product development process, savings can be made. Originality/value – This paper includes the aspects of product development, logistics and packaging, an interface with very limited research contributions.

Gyöngyi Kovács; Karen M. Spens

2005 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030510590318

Purpose – To construct a framework for exploring and discussing the use of different research approaches – deductive, inductive and abductive – in logistics. Design/methodology/approach – A review of research articles in three major logistics journals ( International Journal of Logistics Management , International Journal of Physical Distribution & Logistics Management and Journal of Business Logistics ) from 1998 to 2002. Findings – Recognizes the dominance of deductive research in logistics, and the need for more inductive and, in particular, abductive research for theory development. Discusses the use of the abductive research approach in logistics. Research limitations/implications – Keywords searches led to a small sample size; more thorough content analysis is needed to apply the findings from the constructed framework. Practical implications – Useful source of information on the three different research approaches, their possibilities and implications for research. Originality/value – The abductive research approach has not yet been discussed in logistics.