International Journal of Physical Distribution & Logistics Management

Martin Schwardt; Jan Dethloff

2005 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030510611639

Purpose – A variant of Kohonen's algorithm for the self‐organizing map (SOM) is used to solve a continuous location‐routing problem that can be applied to identify potential sites for subsequent selection by a discrete finite set model. The paper aims to show how the algorithm may be customized to fit the problem structure in a way that allows aspects of location and routing to be integrated into the solution procedure. Design/methodology/approach – A set of test instances is used to compare the solutions of the neural network to those obtained by sequential approaches based on a savings procedure. Findings – Compared to the results of the sequential approaches, the neural network yields good results. Research limitations/implications – Future work may cover the expansion of the neural approach to multi‐depot and multi‐stage problems. Additionally, application of procedures other than the savings procedure should be evaluated with respect to their potential for further enhancing the solution quality of the sequential approaches. Practical implications – This paper shows that strategic location decisions in practical applications with long‐term customer relationships can be taken using simultaneously generated routing information on an operational level. Originality/value – The paper provides a new variety of applications for SOM as well as high quality results for the specific type of problem considered.

Rainer Lasch; Christian G. Janker

2005 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030510611648

Purpose – An efficient supplier management is of central importance for successful supply chain management. It begins with the identification of potential suppliers and leads to the controlling of the supplier‐buyer‐connection. This paper aims to design a new supplier‐rating system that fits the practical needs of supplier rating and supports many other steps of the suppliers management process. Design/methodology/approach – An empirical study on supplier rating among 193 industrial companies revealed that the existing methods for supplier rating do not satisfy the needs in practice. This paper describes a multivariate analysis tool for managing a pool of engaged or future suppliers. A constructed ideal supplier serves as a reference to compare all suppliers by means of multivariate analysis methods. A case study illustrates the application of the tool. Findings – The empirical study found out new needs for supplier‐rating methods such as graphical representation of the suppliers. The designed supplier‐rating system uses principal component analysis to create a classification and ranking of the potential suppliers by means of ellipsoid clusters. If this new supplier‐rating system is applied repeatedly, a dynamic observation of the suppliers is guaranteed, always corresponding to real market conditions. Originality/value – The new system has to run computerized and can be used for pre‐qualification, selection and controlling of suppliers. It is easy to handle and practicable without using manual criteria‐weighting.

Rudolf O. Large

2005 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030510611657

Purpose – Management approaches, such as supply chain management addressing cooperation among firms emphasize communication among people from different companies. The objective of this research was to investigate the impact of individual and contextual factors on the external communication behavior of purchasing managers in Germany. Design/methodology/approach – Based on the literature, oral and written communication capabilities, purchasers' attitudes and the internal communication climate were identified as potential impact factors. A structural equation model containing 11 constructs was designed. Six hundred and seventeen responses were available for statistical analysis. Findings – Summing up the results, oral communication capability and purchasers' attitudes toward individual communication with the suppliers play important roles in explaining external communication behavior of purchasers. Regarding indirect effects, there are strong total effects of the oral communication capability and the attitudes on the supplier management success as well as satisfaction. Research limitations/implications – Several measures were operationalized using two‐item or three‐item scales. Future research should focus on the development of more comprehensive scales. Practical implications – Various conclusions from the results were drawn. Particularly, there are important managerial impacts on supply management and human resource management. Originality/value – The paper provides the first scientific insight into the relationships between oral communication capability, attitudes toward communication, communication behavior and managerial performance in the field of supply management.

Daniel Corsten; Jan Felde

2005 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030510611666

Purpose – To examine the conditions under which the proposed benefits of collaboration between a firm and its suppliers will occur. Design/methodology/approach – This paper examines buyer‐supplier relationships from the point of view of the buying firm. The paper is based on a Swiss sample of OEM‐supplier relationships. The research question is empirically tested employing a sample of 135 Swiss buyer‐supplier relationships and using structured equation modelling as well as multi‐group comparison to test for quasi‐moderation effects. In this paper it is investigated under which condition collaboration with key suppliers is beneficial for buyers. By linking collaboration with key performance measures and contrasting its effects with relational constructs like trust and dependence it is hoped to add to the growing literature on inter‐organizational relationships in supply chain contexts. Findings – The results demonstrate that supplier collaboration has a positive effect on buyer performance both in terms of innovative capability and financial results. As expected, trust and dependence play an important role in supplier relationships. Research limitations/implications – This research is based on a single country (Switzerland) multi‐industry study. Generalizability to other industries or countries may be limited. Practical implications – Supplier relationships need governance modes that balance control and relational elements. Relationship controlling is an important element in building successful supplier relationships. In order to be able to reap the benefits of collaboration for the entire company, the purchasing department needs incentives that support relationship building. Managers leading a purchasing department can learn what structural elements and processes are necessary to obtain optimal benefits from their supply base. Originality/value – From a manager's viewpoint, this paper will provide additional insight into when and how collaboration can improve financial performance, enhance innovation, and reduce transaction costs..