International Journal of Physical Distribution & Logistics Management

John E. Mello; Theodore P. Stank

2005 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030510623320

Purpose – To date research focused on cultural dimensions and the role it plays in supply chain management (SCM) has been limited. Executives interviewed as part of the background investigation for this paper report that until an organization can bring about effective cultural change, SCM will remain an artifact of corporate myth. Prior to driving change, however, more must be known about the dimensions of supply chain oriented culture. Seeks to address this. Design/methodology/approach – This paper develops a framework based upon the culture literature to identify and define critical dimensions of cultural orientation that impact implementation of SCM. Findings – The framework serves as the basis for research propositions suggesting likely dimensions of supply chain cultural orientation. Propositions also link these dimensions to behaviors that encourage successful SCM. Research limitations/implications – The research will enable managers to identify the critical factors upon which to focus resources as they try to drive supply chain change. The research will establish a starting point for researchers interested in enhancing our understanding of the phenomena involved in cultural change. Originality/value – The research presented in this paper was undertaken to further discussion of the role that cultural orientation plays in the successful implementation of SCM.

Denis R. Towill

2005 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030510623339

Purpose – To minimise business risk of incurring increased marketability and acquisition costs due to volatile demand exacerbated by the bullwhip phenomenon. Design/methodology/approach – Based on the vision of the seamless supply chain and the active support of the decision support system exploiting the automatic pipeline inventory and order based production control system (APIOBPCS) algorithm. The approach has been tested on simulated real‐world value stream data. Findings – Demonstrates that it is possible to reduce risk via a combination of the APIOBPCS algorithm plus optimal location of the material flow de‐coupling point separating lean and agile pipelines. Research limitations/implications – The methodology only substantially reduces risk generated within the supplier echelon. External bullwhip must be reduced via other routes to streamline flow. Practical implications – Provides businesses with a composite methodology for matching their ordering systems to enable risk minimisation within their span of control. Originality/value – The Bullwhip On‐costs Johari Window is a unique tool for mapping supply chain ordering policy risks.

Fredrik Nordin

2005 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030510623348

Purpose – To provide propositions regarding how product, market, and firm contextual factors influence the appropriate channel structure of product services and to examine organizational actions resulting from maladjusted channel structures. Design/methodology/approach – Building on previous research, six propositions are presented regarding how the choice of direct/indirect service processes is influenced by contextual factors. A seventh proposition is suggested regarding how maladjusted service channels put pressure on the industrial firm to change the service channel, or to compensate for the maladjustment by taking other measures. Five qualitative case studies conducted at American and European companies from different industries are used to test the seventh proposition. Findings – Provides empirical support for the seventh proposition and illustrates alternatives for how compensation for maladjustments may be carried out. Research limitations/implications – Further research is needed into the mechanisms that can compensate for deviations from the appropriate service distribution channel suggested by the propositions put forth in this paper. Statistical generalization of the propositions on the other hand could be achieved through a wide survey. Practical implications – The propositions could function as a managerial tool for identifying inappropriate channel structures, and thus also for identifying the need for change. Originality/value – Refines and extends previous theory on the interrelationship between contextual factors and service distribution channels.

Robert Lieb; Brooks A. Bentz

2005 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030510623357

Purpose – Our annual surveys seek to provide insight into important market dynamics, opportunities and problems in the North American third party logistics (3PL) industry, from the perspective of the chief executive officers (CEOs) of major logistics service companies. The information generated is not only useful to managers considering using such services, but also to provider CEOs to facilitate industry benchmarking. Design/methodology/approach – For the past decade, that insight has been sought by conducting annual surveys of the CEOs of many of the largest 3PL companies serving North America. Findings – The CEOs projected substantial revenue growth in the North American 3PL marketplace over the next three years. Their companies are becoming increasingly customer selective, and aggressively selling along customer supply chains. They are increasingly focusing attention on the possible large‐scale adoption of RFID technology in the industry, and seeking ways to overcome industry pricing pressures. Research limitations/implications – This survey focused on the largest 3PL companies operating in North America. However, many small‐medium size companies now participate in that market, and little work has been done to document developments in that sector of the industry. Further, little research has been conducted concerning the provision and use of 3PL services in other geographies. Practical implications – As previously noted, the findings not only give insight into the industry for those considering the use of 3PL services, but also give provider CEO a means of benchmarking their companies against industry averages. Originality/value – Data generated in this survey provide a basis for comparison with that generated in our previous annual surveys, and an understanding of current 3PL market conditions.