International Journal of Physical Distribution & Logistics Management

Kenneth J. Petersen; Jeffrey A. Ogden; Phillip L. Carter

2007 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030710723291

Purpose – The purpose of this article is to develop a typology of e‐marketplace functionality and then link the typology to the associated value creation potential of differing types of e‐marketplaces. Design/methodology/approach – In‐depth interviews with the executives of 50 e‐marketplaces, a web/mail‐based survey of another 350 e‐marketplaces and interviews with several e‐marketplace customers were conducted. Findings – B2B e‐marketplaces offer a variety of different value propositions. Leading e‐marketplaces have a well‐developed strategy for reaching a particular segment of the buying community, based on service needs. Developing e‐marketplaces do not demonstrate the same focus. On one hand, only a few e‐marketplaces had developed the same winning constellations of services, while on the other hand, most were planning a roll‐out of a wide variety of services that would carry them far beyond a focused strategy. The success of this approach seems problematic. Practical implications – The prudent customer of an e‐marketplace should weigh their requirements against the functionality found across the broad set of e‐marketplaces as well as against the constellations of functionality (and value creation potential) developed in this research. Only after a careful assessment of needs, can companies make rational decisions about how to effectively use e‐marketplaces. Originality/value – This research employs a strong research method to create a unique typology of e‐marketplace functionality. This research also links the typology of e‐marketplace functionality to its value creating potential.

Kofi Q. Dadzie; Evelyn Winston

2007 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030710723309

Purpose – Consumer response to merchandise shortage in the online supply chain outlet is an interesting and important issue for e‐vendors because of the high risk associated with the online environment. The purpose of this study is to examine the effects of the online environment on consumer out‐of‐stock behaviors. In addition, it aims to examine the relative impact of non‐web site situational factors on consumer out‐of‐stock behavior. Design/methodology/approach – The study proposed an expectation confirmation‐disconfirmation framework based on the utility maximization principle in consumer research. This framework was validated with data from online shopping transactions gathered in two field studies. Findings – The occurrence of a stock‐out had a pervasive negative impact on consumers' assessment of their online transactional experience and repurchase intentions. Furthermore, item substitution behavior was positively linked with merchandise information content, vividness of web site content, and service speed and a few situational factors. Overall, it was found that consumers' reaction to the “shock” effect of a stock‐out was best explained by an expectation confirmation‐disconfirmation model rather than a performance‐only or expectation‐only model. Research limitations/implications – While the focus on the total expectation confirmation‐disconfirmation process limited the scope of the study to a single stock‐out event, future research should examine multiple stock‐out events to further validate the proposed framework. Practical implications – Managers can take advantage of the positive linkage between web site design features and item substitution behavior by tracking the online consumers' expectation confirmation‐disconfirmation evaluative process and its effect on how consumers respond to high priced versus low priced items during a stock‐out event. Design features for low priced items such as CDs and books require product specific information to reduce item switching or exit from the e‐supply chain during a stock‐out event. Originality/value – Scholars need a systematic framework for examining consumer response to a stock‐out that is applicable in the e‐commerce context because of the effects of abundant information access, low switching cost and the high service expectations of online customers.

Beth Davis‐Sramek; Brian S. Fugate; Ayman Omar

2007 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030710723318

Purpose – The purpose of this paper is to propose a means‐end value chain framework to understand two supply chain party's values by presenting a value‐matching framework. Design/methodology/approach – Using means end theory, qualitative data from third party logistics (3PL) providers and manufacturers were used to construct means end value hierarchies to demonstrate how values between buyers and sellers can be mismatched. Findings – In comparing the responses from the 3PLs and manufacturers, examples were found of exchange‐specific value matches and exchange‐specific value mismatches. The analysis showed that the 3PL managers interviewed were seeking to provide the value of being “market‐driven” (refers to a reactive business logic, which favors incremental adjustments to changes in the business environment), while the manufacturers desired their 3PLs to be “market‐driving” (refers to innovative business logic by providing break‐through ideas, practices and processes). Research limitations/implications – This research focuses more attention on an important objective of the marketing concept often overlooked in the business‐to‐business relationship literature: fulfilling the local firm's needs. This paper extends the use of the MEVHM and expands its applicability beyond understanding the focal firm's values to all exchange parties, including suppliers, third parties and cooperative alignments with competitors. Additionally, this paper contributes to the literature by suggesting that exchange values are a type of value important in achieving functional exchanges, and the concept of “value matching”. Practical implications – Applying the MEVHM to both the focal firm and their supply chain exchange party provides a decision analysis tool for the management of exchanges. Additionally, this paper's model can be a guiding mechanism for managers to assist in the exchange party search and selection process. Originality/value – The literature and the qualitative study suggest that the MEVHM could be a useful tool in understanding supply chain partners. However, this should be performed while fulfilling the firm's need (e.g. at a profit). In order for a focal firm to fulfill these needs from a particular exchange, it must understand the value it desires from that exchange. Not only is the MEVHM applicable to gain understanding of the exchange party's values of a particular exchange, but it is also an appropriate tool to gain understanding of the focal firm's exchange values.

Alan Smart; Andreas Dudas

2007 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030710723327

Purpose – The purpose of this paper is to report on research undertaken within a European‐based airline services firm. As a result of pressures within the airline industry the firm embarked on a cost reduction programme, recognising the need to achieve more synergy from its procurement spend, located in semi‐autonomous business units (BUs). The paper describes sequentially the two stages of the author's involvement in the project and the outputs and results realised. Design/methodology/approach – The aim was to design a practical tool, based on academic inputs, which could be used by the business to achieve purchasing synergy. The research is reported in a case study format and develops an original mixed method approach. This approach combines interviews, a focus group, cognitive mapping and portfolio analysis and leads to the production of a decision‐making framework for implementing purchasing pooling. Findings – The results illustrate that prior to the study, procurement was highly fragmented with little co‐ordination between BUs. The company needed to standardise many of its item specifications to facilitate purchasing pooling. A hierarchy is created as a valuable tool for understanding the various and conflicting factors in item selection for pooling initiatives. In addition, four purchasing strategies are identified, to support synergy in the firm. Practical implications – The decision‐making framework developed for the business is used to illustrate how the firm achieved purchasing synergy across its BUs. The approach can similarly be adopted in organisations with a high level of fragmentation in their spend. Originality/value – The research demonstrates the value of applying academic knowledge and multiple methods in creating practical solutions for managers. It also addresses some of the weaknesses identified in using single methods of analysis such as portfolios.