International Journal of Physical Distribution & Logistics Management

Joseph L. Cavinato

2005 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030510594530

Purpose – Intends to provide insights from observaions of field practices and initiatives from researchers in supply chain logistics seeking contexts and inspiration for future research. Design/methodology/approach – Describes supply chain logistics practices and initiatives perceived positions and impacts (2003‐2004), based on interviews with protagonists of 19 major practices/initiatives in the field. Findings – The 19 are divided into three groups: new, wide adoption, and traditional. New refers to strategic, high revenue/growth, wide adoption refers to the normal maturing process, whilst traditional refers to commodity, as in business impact. As companies progress in their initiatives from new to wide adoption to traditional, finds that resarch opportunities develop differently. Originality/value – Adds value to the original editorial ( IJPDLM , Vol. 34 No. 1, 2004), which noted five general categories of research.

Faizul Huq; Sanjay Asnani; Vernon Jones; Ken Cutright

2005 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030510594549

Purpose – Inventory control models for perishable products have primarily used a FIFO issuing policy with the objective of minimizing the number of outdated units. This paper aims to develop a model to evaluate an issuing policy for a single product with a fixed shelf life in single echelon inventory system. The issuing policy considers the remaining shelf life of the in‐stock inventory and the expected time that the product will spend in inventory as the decision driver. Design/methodology/approach – The model developed has an objective of maximizing expected revenue over time with a budget constraint. A heuristic algorithm is proposed to iteratively arrive at the best solution to the formulation. The heuristic is tested by employing a simulation model of the system. Findings – The proposed heuristic is tested against both the FIFO and the random allocation approaches and found to be superior for all the in‐stock with remaining shelf life distribution means of above 40 percent. No significant performance differences were found for the three approaches for remaining shelf life distribution. Research limitations/implications – The research is focused on a single product with multiple expiration dates and further research is necessary to determine the best policies for the multi‐product multi‐expiration date environment where the items are substitutable.. Practical implications – Retailers stock items with multiple expiration dates. The customer, for obvious reasons, is more likely to choose the item with the longer remaining shelf life. Therefore, the supply to the retailer's shelves and issuing policies for making available the particular items to the customers affect product outdating and related costs. Revenues will be affected by the extent to which more can be charged for items with a longer remaining shelf life or by the impact of the remaining shelf life on demand. This paper provides for a practical approach to that end. Originality/value – The proposed issuing policy has not been tested before and thus makes a contribution to the body of knowledge. The flexibility of using different values for acquisition costs, selling prices, salvage value and penalty functions is a particular strength of the proposed model. Moreover, its potential application to inventory control problems for a wide range of perishable products is substantial.

M. Douglas Voss; Roger J. Calantone; Scott B. Keller

2005 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030510594558

Purpose – This work seeks to examine how front‐line employee performance and interdepartmental customer orientation affect the service, supply chain, and financial performance of US distribution centers. Design/methodology/approach – The authors approached this subject by utilizing works from the supply chain management, services marketing, total quality management, and logistics personnel literature. Surveys were administered in 18 distribution centers across the USA and canonical correlation was employed to test the propositions that front‐line employee performance and interdepartmental customer orientation have a positive effect on distribution center service, supply chain, and financial performance. Findings – Findings indicate that high levels of front‐line employee performance and interdepartmental customer orientation a positive effect on distribution center service and supply chain performance. The relationship of the two independent variables to distribution center financial performance was only partially supported. Research limitations/implications – The research did not explore how higher levels of front‐line employee performance may be obtained and may not be generalizable beyond a distribution center setting. For researchers, the results may be utilized in studies of logistics best practice. Moreover, studies investigating market orientation may find the results useful, as previous contributions have shown interdepartmental customer orientation to be positively related to the market orientation of the firm. Practical implications – The results provide managers with evidence supporting the value of front‐line employees and the importance of encouraging departments to service other departments in a customer‐oriented manner. Originality/value – This is the first study to detail the relationship between interdepartmental customer orientation and firm performance in a logistical setting, and adds further credence to the importance of front‐line distribution personnel in the delivery of quality output.

Craig R. Carter

2005 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030510594567

Purpose – This paper aims to examine how socially responsible supply management activities, a term labeled purchasing social responsibility (PSR) in the extant literature, affect a firm's costs. There has been much debate, and mixed empirical findings, regarding whether socially responsible behavior on the part of companies improves or reduces firm performance. Design/methodology/approach – A survey methodology and structural equation modeling are used to assess the relationship between PSR and supplier performance, including the mediating role of organizational learning. The theoretical scope is developed through an integration of literature from logistics, corporate social responsibility, the resource‐based view of the firm, and organizational learning. Findings – No direct relationship is found between PSR and costs; however, organizational learning and supplier performance act as key, mediating variables between PSR and costs, with PSR leading to organizational learning, improved supplier performance, and ultimately reduced costs. Research limitations/implications – The significant mediating roles of organizational learning and supplier performance provide one possible explanation for the past, conflicting findings of studies that have investigated the direct relationship between corporate social responsibility and firm performance. Practical implications – The findings suggest that PSR not only is the “right thing to do”, but also can lead to significant improvements in supplier performance and costs. Originality/value – This is the first study to suggest and test the possibility of mediation between social responsibility and firm performance. The research also extends the integration of organizational learning and supply chain management.

Trevor Hale; Christopher R. Moberg

2005 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030510594576

Purpose – Terrorist attacks, natural disasters, and regional power outages from the past several years have all highlighted the low levels of disaster preparedness that exist at many firms. Supply chain disruptions caused by external events can have a significant financial and operational impact on firms not properly prepared. Therefore, improving disaster preparedness in supply chains is critical. One critical component of disaster management planning in supply chains is the storage of emergency supplies, equipment, and vital documents that will be needed in times of crisis. The goal of this paper is propose a decision process for establishing an efficient network of secure storage facilities that can effectively support multiple supply chain facilities. Design/methodology/approach – The authors use the five‐stage disaster management process for supply chains as the framework for a proposed decision process for secure site locations. The decision process combines recommendations from FEMA's Disaster Management Guide with a set cover location model from the location sciences field to help establish a network of secure site locations. Findings – Storing emergency supplies at every supply chain facility can be cost‐prohibitive. In addition, gaining access to emergency supplies that are stored at each facility may be prevented by some external events, such as fires or hurricanes, because items stored on‐site are destroyed or are inaccessible. Therefore, the proposed secure site selection process can balance operational effectiveness and cost‐efficiency by identifying the minimum number and possible locations of off‐site storage facilities. Originality/value – One important contribution of the paper is that it combines recent recommendations for disaster preparedness in supply chains with established models in location sciences research to create an interdisciplinary solution to an important supply chain issue. Even though the storage of important documents, equipment, and materials is only one small part of disaster management planning, it is hoped that this model will do its share in helping supply chains become better prepared for the next emergency.