International Journal of Physical Distribution & Logistics Management

Gunnar Stefansson

2006 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030610656413

Purpose – This paper aims to derive and verify a collaborative framework that specifies the role of different parties in contemporary logistics setups. Design/methodology/approach – To prepare this paper, a study of the logistics literature has been conducted together with several case studies. The empirical evidence has been collected in Europe as well as in the USA. Different aspects of collaboration between organizations in logistics setups have been studied where the services and the activities have been analyzed to understand the characteristics of the role of third‐party service providers. Findings – The results from the work cluster the different third‐party service providers in three different groups: carriers, logistics service providers (LSPs) and logistics service intermediaries (LSIs). All of these parties have different roles and provide various services in outsourced logistics setups. A collaborative logistics management (CLM) model has been derived that embraces the role of the different parties, the information and material flows between them, the interface attributes and the information systems architecture. In this paper, a focus is mainly on the part of the model that reveals the role of the third‐party service providers. Practical implications – The practical implications of the work has its foundation in that activities, performed by two parties, can be adapted to each other so that their combined efficiency is improved. The CLM model can be applied when designing and negotiating third‐party services for specific logistics assignments. Originality/value – The paper offers a model of logistics collaboration between the different parties in contemporary, outsourced logistics setups.

Nathalie Fabbe‐Costes; Marianne Jahre; Aurélien Rouquet

2006 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030610656422

Purpose – Logisticians have always viewed standards as solutions for improving operational compatibility and coordination. This paper aims to contribute to a greater understanding of how standards, upon which logistics systems are designed, developed and coordinated, interact with each other and with other resources in a logistics network for the purpose of improving efficiency and effectiveness. Design/methodology/approach – The literature review permits: defining standards as a coordination mechanism focusing on development, use and evolution of interconnected standards; pointing out the importance of standards for logistics efficiency and effectiveness; and analysis of interrelatedness referring to increasing returns, basic technology and dominant design. The empirical evidence is based on a meta‐case from the automobile industry with information collected from nine case studies based on observations, documents, drafts of standards and interviews. Findings – The case study illustrates major points in prior literature and provides new propositions that enrich the theory and have important managerial implications. Main findings include a better understanding of how standards interact over time, and how they help, as well as hinder technological development in logistics networks. Being exploratory in nature, the paper concludes with theoretical propositions for further research. Originality/value – The paper contributes to the understanding of an issue is been important, but still not much addressed in prior logistics literature: the use of standards. The combining of literature from three streams of research: logistics, industrial networks and technology development provides interesting insight on which the case analysis is based and from which further research can be developed.

Chee Yew Wong; John Johansen

2006 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030610656431

Purpose – Just‐in‐time (JIT) retailers replenish continuously according to the consumer demand. Under unpredictable and seasonal consumer demand, it is essential to coordinate planning and responsiveness with the manufacturers. The purpose of this paper is to study the coordination journey between a toy manufacturer and a JIT retailer, and generates several theoretical propositions on coordination process, behaviours and strategies. Design/methodology/approach – A one‐year case study to describe the unfolding coordination process between the toy manufacturer and JIT retailer. Rich case data is collected because the researcher is one of the manufacturer's project team members. Findings – The coordination process followed some generic sequential stages – evaluating, deriving, offering, assessing and implementing of coordination strategies. Furthermore, the physical flow behaviours and the ordering behaviours are found interactively influencing each other. Especially, the speculative and risk‐averse ordering behaviours have created cyclical excess inventory and low shelf‐availability. Under such uncertain conditions, two counter‐productive coordination strategies were implemented. The two parties later realized several effective coordination strategies – accurate response, differentiated responsive, and coordinated responsive. Moreover, the responsiveness of the manufacturer was actually affected by the order behaviours of all other retailers. Research limitations/implications – There is generalizable limitation to generate theoretical propositions based only one case study on a dyadic toy supply chain. Originality/value – Low‐responsive supply for unpredictable and seasonal demand leads to irrational ordering and coordination behaviours, which create mismatch of supply and demand. This paper studies an alternate strategy – the JIT retailing. It includes the problems of coordination behaviours, some observed effective coordination process and strategies.

Hongze Ma; Chenxia Suo

2006 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030610656440

Purpose – This study aims to provide a model for designing logistics networks with multiple products. In such a design model, it is important to determine the operation‐related parameters accurately. Design/methodology/approach – An iterative process is used to design a logistics network. First, a mixed integer‐programming (MIP) model is used to determine the configuration of the network. Then, based on the output of MIP model, an inventory‐planning model for multiple products is developed to decide the lot size and ordering frequency for each product at each node of the logistics network, and a vehicle routing model is used to find the shortest product delivery routes from wholesalers to retailers. After that, the operation‐related parameters are recalculated and updated, and the configuration of the logistics network is re‐optimized. Such process proceeds until it converges. By this iterative process, the operation‐related parameters can be determined more accurately. Findings – The iterative process proposed in the paper possesses following advantages: determining operation‐related parameters accurately, and adapting to changing market quickly. Research limitations/implications – A typical logistics network used to distribute multiple products is considered as target system to apply this model. This paper does not handle a real case study as an application example. Originality/value – This paper proposes a modular design approach: different types of mathematics are used for different modules. The model developed in this paper is realizable as software tool in logistics management.

Irina Gribkovskaia; Bjørn O. Gullberg; Karl J. Hovden; Stein W. Wallace

2006 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030610656459

Purpose – The value chain of the Norwegian meat production industry has recently been through major structural changes resulting in increased flows and transportation needs at all levels. The purpose of this paper is to present results of the initial stage of a five‐year research project between the Norwegian Meat Research Centre, Norwegian meat companies and Molde University College. The main goal of the project is to develop a decision support system for the transport of live animals to a slaughterhouse to reduce transportation costs while maintaining high level of livestock welfare and meat quality, as these are three main factors for the profitability of both farmers and industry. Design/methodology/approach – The paper presents a mixed integer programming model that combines vehicle routing and inventory control. We introduce the possibility for multiple routes for a given vehicle on a given day in a multiple‐period planning perspective. Arrival times of the loaded vehicles to the slaughterhouse are controlled by production (slaughter) rate and inventory level at the abattoirs so that the supply of animals for slaughter is steady and production breaks are avoided. Livestock welfare is secured by the route duration constraints. Findings – The model has been formulated and tested on small data sets. The major future challenge is to solve real‐life problems from the involved companies. Research limitations/implications – The main limitation is the present inability to solve large cases. Originality/value – The model combining transportation and inventory control in a setting of animal welfare constraints is original.

Marcus Einbock

2006 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030610656468

Purpose – The purpose of this paper is to discuss the consequences of the newly introduced Austrian road pricing system on companies. Design/methodology/approach – As road pricing offers a good opportunity for infrastructure owners to generate revenues, the system was introduced in January 2004. Trucks and buses are now charged per kilometre driving on Austrian motorways with the amount depending on the number of axles. Therefore, enterprises whose trucks and buses use motorways are confronted with higher transport costs. These costs can be generally divided into direct and indirect ones. The main cost categories concerning indirect costs are costs for pre‐financing, for bad debts losses and for toll‐control. The paper assesses these kinds of costs and evaluates the cost effects in different branches. Further, empirical evidence based on a survey conducted in autumn 2003 is included, where enterprises were asked about their expectations concerning consequences of road pricing on their company. A major part of the paper discusses the changes in the planning system of enterprises. There exist a lot of strategies and measures reducing the total systems costs after introducing such a road pricing. Some of these strategies are presented more in detail. Besides description and evaluation, the strategies are faced with results generated by the survey. Findings – This road toll systems leads to different effects on enterprises in Austria. At first accounting is confronted with a new cost type. Toll costs can be separated into direct and indirect toll costs. Both result in an increase of transport costs depending on the industry and partly the region. Higher transport costs can have an influence on the competitive ability in Austria and in foreign countries compared to inland and foreign companies. It is a general goal to reduce the toll‐based rise of logistics system costs that cannot be equated with minimising toll costs. Enterprises can pursue strategies in the field of procurement and distribution, changing the logistics network or in the scope of transportation and packing. Originality/value – The paper points to an interesting implication of the system, which is an intensified use of logistics service providers to improve efficiency in transportation and logistics.