International Journal of Physical Distribution & Logistics Management

Ronald S. Tibben‐Lembke; Dale S. Rogers

2006 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030610672037

Purpose – Changes over the last 30 years have given companies increased flexibility and control over their logistics activities. During this same period of time, financial markets have embraced stock options, which allow buyers the right but not the obligation to purchase a stock at a specified price in the future. Recent technological developments could enable the trading of formalized options around transportation and logistics services. This paper aims to propose a framework for enabling managers to extend the use of options to the future use of logistics resources. Design/methodology/approach – Presents a conceptual model that is based on research within the field. Findings – This paper presents a framework for using transportation options in a similar manner to stock or commodity options: a shipper would buy a transportation option from a carrier, or a carrier's agent, which would give the shipper the right but not the obligation to send a shipment in a particular freight lane at a specified future time, for a specified future cost. Originality/value – The paper provides a new method for structuring future logistics shipments.

Susan K. Lippert; Howard Forman

2006 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030610672046

Purpose – User uncertainty and risk are inherent in any technology adoption due to the perceived long‐term consequences (LTC) associated with the internalization process. This study seeks to investigate antecedents of technology trust (TT) and perceived LTC associated with using a technology in order to understand the underlying attitudes and beliefs influencing supply chain members' trust in a specific information technology (IT). Design/methodology/approach – A theoretical model was tested through a survey of 449 supply chain members using an IT innovation for part‐level visibility along the entire first‐tier of a major US automotive supply chain. Findings – Empirical results confirm the basic structure of the model, including the role of TT impacting users' perceptions of LTC relative to internalizing the technology. Results also identify several uncertainty reducing antecedents of TT and perceived LTC including satisfaction with the existing system, task‐technology fit, and prior similar experiences. Research limitations/implications – The study, although significant in terms of its power and the industry from which it is drawn, focuses on one‐tier of a US automotive supply chain. It would be useful for future research in this area to include multi‐tier supply chain members. Originality/value – This study represents an important first step in examining the relationship between uncertainty reduction relating to incorporating technology in the supply chain context.

Tom DeWitt; Larry C. Giunipero; Horace L. Melton

2006 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030610672055

Purpose – To demonstrate the linkage between Porter's cluster theory and supply chain management, and provide evidence of their potential joint positive impact on competitiveness and firm performance. Design/methodology/approach – The paper examines the linkage between cluster theory and supply chain management using data from a case study of the Amish furniture industry in Homes County, Ohio, USA. Findings – Using the Amish furniture industry and a representative furniture firm as examples, the paper shows the positive impact of operating within an integrated supply chain in a geographically concentrated cluster. Research limitations/implications – Use of a single case study approach limits the generalizability of the findings; the paper recommends further study of linkages in other industries and locations. Practical implications – The study suggests that firms build competitive advantage by initially focusing primarily on local resources when selecting supply chain partners, rather than looking only for low cost advantage through distant sourcing. Originality/value – This paper adds to the literature on business linkages by proposing an expanded definition of clusters as geographical concentrations of competing supply networks.

Richard Wilding; Andrew S. Humphries

2006 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030610672064

Purpose – Within the supply chain the need for much closer, long‐term relationships is increasing due to supplier rationalisation and globalisation and more information about these interactions is required. The research specifically tested the well‐accepted Williamson's economic organisations failure framework as a theoretical model through which long‐term collaborative relationships can be viewed. Design/methodology/approach – An exploratory research project was designed and carried out on a self‐selected census of 54 monopolistic relationships representing £575.8 m annual spend on equipment and associated services within the UK defence procurement organisation (a 10 per cent sample). Its aims were to understand the relationship dynamics within long‐term, sustained monopolies and to determine if generic success factors could be found to assist managers to break out of the essentially negative situation. A triangulated data capture approach was employed using both quantitative and qualitative methods from both the industry and MoD sides of each relationship and the research instruments concentrated on the five dimensions of the theoretical model with questions grounded in the literature. Findings – The study demonstrated that the theoretical model could provide powerful insights into the research subject and especially revealed the important part played by co‐operation, co‐ordination and collaboration (C 3 behaviour) in reducing the inherently negative effects of close proximity and limited choice relationships. Research limitations/implications – The research has used a narrow view through a specific theoretical model lens to achieve a broad understanding of business relationships within a single, albeit large, organisation. Practical implications – Managers can reduce sources of frustration that generate negative behaviours by taking joint actions. Central to achieving this is C 3 behaviour where setting synchronised objectives, pursuing joint approaches to service and product delivery, lowering costs and risks and promoting measures to support the growth of trust appear to be the best ways of halting negative behaviour spirals. Originality/value – The prime contribution of this exploratory research is the exposure of relationship dynamics within a large sample of long‐term, collaborative supply chain business dyads using an integrated application of Williamson's organisations failure framework.