International Journal of Physical Distribution & Logistics Management

Robert E. Spekman; Patrick J. Sweeney II

2006 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030610714571

Purpose – The purpose of this paper is to present a comprehensive overview of radio frequency identification (RFID) technology. The goal is to provide insights regarding the implementation and use of RFID by focusing on its advantages and its problems. Design/methodology/approach – The paper discusses, what RFID is, how its parts fit; what role management plays in its implementation, and where the pitfalls are. Findings – RFID is discussed as the latest technology to help manage the logistics and inventory problems faced by all companies. Not only has RFID been shown to provide benefits for the firm in its internal operations; its greatest contribution lies in its ability to improve information and materials flows throughout the entire supply chain. With RFID technology visibility in materials flow (from raw material to finished goods) among all supply chain members is improved and the accuracy of the information shared is greatly enhanced. Equally important is the role played by RFID in the development of more collaborative relations among supply chain members. Practical implications – For practicing managers the paper offers suggestions for improving the probability of a successful RFID implementation. The paper discusses implications ranging from dealing with the physics of the aligning the equipment, to validity and reliability testing, to integrating a complete RFID system inside the firm, to developing the requisite metrics, mindset, and managerial systems to link all members of the supply chain. Originality/value – The paper combines practice and theory to demonstrate the potential benefits of RFID and provides insight into how to manage the problems that plague the rapid adoption of this new technology.

Vijay R. Kannan; Keah Choon Tan

2006 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030610714580

Purpose – To analyze the impact of supplier selection and buyer‐supplier engagement on the performance benefits attributable to buyer‐supplier relationships, and the effect of these benefits on broader measures of buyer performance. Design/methodology/approach – Analysis is conducted using a structural equation model using survey data. Findings – Results demonstrate the positive influence of engagement and supplier selection on relationship performance. They also demonstrate that the success of the relationship directly and positively affects buyer performance. Research limitations/implications – Additional analysis is required to examine whether the results hold for specific industry or purchase scenarios, and to identify other dimensions of the constructs of interest. Practical implications – Buyers should pay attention to selecting the right suppliers and developing the infrastructure that will enable successful buyer‐supplier relationships. Originality/value – The paper provides empirical evidence of the impact of cultivating buyer‐supplier relationships on relationship success, and how this directly impacts business performance.

Kwok Hung Lau; Jianmei Zhang

2006 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030610714599

Purpose – To explore the key factors that motivate organizations in China to outsource and the obstacles these companies are facing in comparison with the situation in Western developed countries. Design/methodology/approach – A case study approach was adopted with primary data collected through in‐depth interviews with six companies in China and secondary data aggregated from company reports and documents. Research findings were analyzed within and across all case studies to identify key drivers and obstacles of outsourcing. Findings – Economic factor is a strong motivation for outsourcing in China, of which cost reduction, cost saving, and capital investment reduction are the main concerns. Strategic considerations, such as the use of outsourcing to accelerate re‐engineering benefits, to focus on core competence, to increase flexibility, and to facilitate market penetration, are identified. Environmental factors like information technology (IT) development and capability of supplier can influence organizations' decisions to outsource. Meanwhile, companies in China have encountered obstacles and problems in the outsourcing process. They include the lack of capable service providers, loss of control, poor transportation and IT infrastructure, presence of local protection regulations, and lack of overall post‐outsourcing measurement. Originality/value – This paper presents a systematic exploration of the drivers and the obstacles of outsourcing in China and provides a framework that may guide business organizations to make better outsourcing decisions. It may assist organizations to clearly define their expectations, develop strategic outsourcing plans, and make appropriate decisions to achieve outsourcing objectives.

Qiang Wang; Kenneth Zantow; Fujun Lai; Xiaodong Wang

2006 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030610714607

Purpose – To examine the strategic posture of third‐party logistics (3PLs) providers in mainland China. Design/methodology/approach – A sample survey, obtained by mail, of 3PLs firms in mainland China. Key informant data are used to operationalize Porter's competitive strategy and provides a framework to identify logistics strategies pursued by 3PLs providers. Various aspects of 3PLs providers are compared by different strategy types. Findings – Identified four logistics strategies pursued by 3PLs providers in mainland China. Differentiation strategy outperforms cost leadership strategy. Companies pursuing cost leadership are shifting towards differentiation strategy to cope with the intense competition faced in mainland China's immense logistics markets. Research limitations/implications – Bias may exist due to the mail survey. In‐depth studies on strategy formulation of 3PLs providers could be carried out to examine what factors influence the strategy formulation and explore the strategy evolution path. Practical implications – This study is a very insightful source of information about 3PLs in mainland China for logistics managers, investors and policy‐makers. It provides guidance for 3PLs executives to formulate logistics strategy, adjust business objectives and prioritize operations, and for logistics users to select appropriate logistics providers. There are also suggestions for government to improve the business environment for the logistics industry. The study provides a basis for research on logistics management in mainland China. Originality/value – This study is a pioneer and comprehensive study of mainland China's 3PLs providers. To the best of our knowledge, this is the first study to examine 3PLs providers in mainland China.