International Journal of Physical Distribution & Logistics Management

Mikael Ståhl Elvander; Sami Sarpola; Stig‐Arne Mattsson

2007 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030710848914

Purpose – The purpose of this study is to provide for the research community as well as for the practitioners measures that enable the evaluation, categorization and comparison of vendor managed inventory (VMI) systems. Design/methodology/approach – In this paper, a framework is developed for characterizing the design of VMI systems based on a review of prior research and an empirical investigation of industry‐to‐industry VMI relationships in Sweden. Findings – The proposed framework incorporates the main characteristics of VMI systems and serves as a tool for profiling VMI system designs and for facilitating the comparison and analysis of different VMI system configurations. Research limitations/implications – The Swedish industrial context in which the framework was tested should be taken into consideration when generalizing upon the findings. Practical implications – VMI systems come in various shapes and setups, as a result of which the challenges related to their operation and management may differ significantly. This study addresses the issue by providing practitioners with a tool that helps them in the design and management of VMI systems. Originality/value – While categorizations and measures for the VMI systems exist in prior research, this study contributes by synthesizing the existing measures and testing them in empirical setting. The study contributes particularly to the research on VMI systems but also more broadly to the supply chain management research.

Ola Johansson; Daniel Hellström

2007 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030710848923

Purpose – The purpose of this paper is to propose a framework of the potential benefits of asset visibility in the context of returnable transport items (RTI), and uses the framework to examine the effect of asset visibility on the management of RTI systems. Design/methodology/approach – A combined case study and simulation approach was used. A case study was performed to identify and understand how an existing RTI system is managed, while discrete‐event simulation was the method chosen to explore the potential effect of asset visibility. Findings – The paper identifies cost aspects of implementing and operating RTI systems which may be influenced by asset visibility. The study implies that significant cost savings can be achieved through increased asset visibility, and highlights the importance of shrinkage and its impact on the operating cost of an RTI system. However, asset visibility alone is not enough; it requires proper actions and continuous management attention in order to attain the savings. Research limitations/implications – The results are derived from a single, combined case and simulation study. Practical implications – The combined methods proved to be an efficient way of assessing and quantifying the potential effect of asset visibility along with the associated uncertainty in the results. Originality/value – The paper provides an improved understanding of the effect of asset visibility on the management of RTI systems and complements existing visibility literature.

Patrik Jonsson; Linea Kjellsdotter; Martin Rudberg

2007 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030710848932

Purpose – The purpose of this paper is to explore how standardized advanced planning systems (APS) can be used for solving planning problems at tactical and strategic levels, and to identify the perceived effects of using APS. Design/methodology/approach – Multiple case studies involving three cases using APS software for strategic network planning and master production scheduling are conducted. Comparative analysis explores how the planning situation, the model design and use of the APS impact the perceived planning effects. Findings – Findings show how APS support cost‐optimized strategic network design in one case and how efficiency, capacity utilization and delivery service problems were decreased in two cases using APS in global master planning processes. The cases show how APS supports cross‐functional integration and supply chain commitment to a common plan. Research directions are suggested about the feasibility of APS in situations with various planning complexities, how design of the optimization model creates complexity and affects the planning process, data gathering requirements when using APS, the role and design of the planning organization, and how to achieve positive planning effects, such as finding global optimum and single plan commitment. Research limitations/implications – The approach is descriptive and explorative. Only three cases are studied. Practical implications – The findings present experiences of APS usage and identify issues to consider when using APS and potential benefits to gain from usage. Originality/value – The practical use of APS is low and the knowledge about how it impacts supply chain planning and performance is unexplored. The findings of this paper fill some of these gaps.

Nathalie Fabbe‐Costes; Marianne Jahre

2007 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030710848941

Purpose – In the literature authors state that there is a positive relation between supply chain integration (SCI) and performance. They claim that this relation is widely discussed and supported empirically. Other authors, however, suggest that integration might be more difficult in practice than in theory, that it should be differentiated and that it is more rhetoric than reality. As integration has been core of logistics and supply chain management since the 1980s, the purpose of this paper is to investigate these somewhat contradictory statements and analyse prior studies regarding definitions and measures of integration and performance as well as the reported empirical evidence on their relation. Design/methodology/approach – Based on an extensive and systematic review of integration articles within four highly ranked academic journals in logistics, supply chain and operations management, this paper presents and discusses the results of prior empirical studies on relations between integration and performance. Findings – The analysis of the relevant articles indicates that empirical evidence cannot permit to clearly conclude and that integration as well as performance is defined, operationalised and measured in different and often limited ways. This might be a problem and the paper concludes with a provoking question of whether SCI might be the Emperors' New Suit of business. Originality/value – The paper's departure point is a controversial hypothesis: the contribution of SCI is not as obvious as logistics and supply chain researchers usually think. The rigorous selection and analysis of previous studies contributes with systematic knowledge within an important question.