International Journal of Physical Distribution & Logistics Management

Kim Dorling; John Scott; Eric Deakins

2006 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030610661787

Purpose – To identify the key determinants of successful vendor managed inventory (VMI) and strategic supply chain relationships for industries characterised by oligopolistic competition. Design/methodology/approach – The study used action research in the New Zealand (NZ) food industry supported by a literature review, triangulation and case studies from other industries and countries. Findings – Seven key industry‐level factors impacting the success of VMI and strategic supply chain relationships were identified. These were integrated into a step‐wise framework that provides a path for practitioners to follow when establishing VMI and strategic supply chain relationships in the NZ food industry. Research limitations/implications – This research was conducted using action research in the NZ food industry; hence, the research findings may need to be modified and further adapted before applying to other, less concentrated, industries. Practical implications – A step‐wise framework provides a path for practitioners to follow when establishing VMI and strategic supply chain relationships in the NZ food industry. Detailed practical guidelines are provided for practitioners who wish to improve the profitability of their supply chain. Originality/value – The key outcome was a working model that identifies the key determinants of successful VMI and strategic supply chain relationships in the NZ food industry, at an industry‐level. A secondary outcome was the contribution to knowledge from an action research perspective.

Shaukat A. Brah; Hua Ying Lim

2006 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030610661796

Purpose – Total quality management (TQM) and technology are fast becoming essential features of business strategy for the success of many leading organizations in the world. More and more companies are using technology and adapting TQM for sustaining competitiveness in the marketplace. TQM works well for internal integration of logistics companies and they can benefit from the use of technology, including information technology (IT), to gain further internal and external integration. Seeks to examine this issue. Design/methodology/approach – This research examines the relationship between quality management practices, technology and performances of the logistics companies. The study seeks to gain insights from organizational variables and their effect on operational, quality, technology and overall business performance. Findings – TQM and technology play important and complementing roles in improving the performance. The analysis shows that both high technology firms and high technology TQM firms perform significantly better than their low technology peers. Research limitations/implications – The use of IT is crucial in improving operational, quality and overall business performance. The information and management technologies strongly correlate to TQM and serve as an enabler to quality performance. Practical implications – The use of technology assists logistics operations in many ways, such as cutting down information and processing lead‐time, improve efficiency and minimize errors to the minimum. Perhaps, the logistics companies should look at the long‐term benefits of technology and gradually engage its use to streamline their operations. Originality/value – The results in this research provide recognition for the importance of technology in quality management in the logistics industry.

Jeff Hoi Yan Yeung; Willem Selen; Chee‐Chuong Sum; Baofeng Huo

2006 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030610661804

Purpose – Aims to investigates the relationship of strategic choices of pure cost‐, pure differentiation‐, or a combination‐strategy on a composite measure of financial performance for third‐party logistics (3PL) providers in Hong Kong. In addition, it seeks to identify the importance of operations priorities underlying the respective adopted strategy, as well as the importance given to future competitive challenges for each strategy. Design/methodology/approach – Uses cluster analysis, ANOVA. Findings – Logistics service providers classified to follow different strategies report different financial performance, with companies adhering to the combined strategy of cost and differentiation performing best, followed by pure differentiation companies, which in turn outperform pure cost‐, commodity driven‐companies. Research limitations/implications – Future research may be widened to include customer, and not solely competitor, perceptions. Further studies could elaborate on technology adoption, information sharing, strategy formulation, operations practices, and benchmarking. Other studies could focus on the differences between high and low performers in terms of business performance, and the processes that enable low performers to become high performers; as well as comparing logistics strategies and practices between different countries. Practical implications – Third‐party logistics providers, solely competing on cost and offering basic services only, need to differentiate to gain improved financial performance. Logistics companies can improve along multiple operational dimensions to achieve competitive advantage in the marketplace. Research identifies operational areas to be emphasized to drive strategy according to strategic orientation, as well as generic factors that will drive future logistics management in Hong Kong. Originality/value – Linking perceived financial performance to strategic choices of pure cost‐, pure differentiation‐, or a combination‐strategy for 3PL providers in Hong Kong.

Cristina Gimenez

2006 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030610661813

Purpose – This paper sets out to empirically analyse the integration process that firms follow to implement supply chain management (SCM). This study has been inspired by the integration model proposed by Stevens. Design/methodology/approach – Uses the survey method. Findings – The results show that there are companies in three different integration stages. In stage I, companies are not integrated. In stage II, companies have a medium‐high level of internal integration in the logistics‐production interface, a low level of internal integration in the logistics‐marketing interface, and a medium level of external integration. And, in stage III, companies have high levels of integration in both internal interfaces and in some of their supply chain relationships. Research limitations/implications – First, only one side of the manufacturer‐retailer relationship was considered, and, second, there was a reduced number of cases in each cluster. Practical implications – As firms' survival lies on integration, a good understanding of the integration process is a key aspect. In this subject, this study has a main implication for managers: in the integration process, firms must achieve a relatively high level of collaboration among internal functions before initiating any external integration. Originality/value – The contribution of this study is to describe the integration process, comparing two levels of internal integration (logistics‐marketing and logistics‐production) and analysing the relationship between these internal integration levels and the level of external integration. Many studies consider internal or external integration from the logistics point of view, but very few consider both levels of integration simultaneously. This study differs from the existing literature in the fact that it explores the sequence of integration stages in an integration process.