International Journal of Physical Distribution & Logistics Management

Bente M. Flygansvær; Lars‐Erik Gadde; Sven A. Haugland

2008 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030810857184

Purpose – The purpose of this paper is to address the prerequisites for achieving coordinated action in reverse distribution systems. It is an underlying assumption in distribution, logistics and supply chain management that a higher level of coordination between the actors is superior to a lower, and a higher levels of coordination will in turn lead to increased performance. Coordination requires the actors to implement efficient coordination mechanisms. The separate distribution flows need to be coordinated individually with appropriate coordination mechanisms. Furthermore, actors need to pay close attention to how different coordination mechanisms co‐exist in order to achieve a higher level of coordinated action and superior system performance. Design/methodology/approach – The paper is based on a comparative case study of reverse distribution systems for electrical and electronic products in Norway. Findings – The empirical results indicate that lack of coordination across flows increases costs and reduces the service level, and a low level of coordinated action is achieved. In contrast, it is also found that well functioning coordination mechanisms across flows decrease costs and increase the level of service, indicating that coordinated action is achieved. It is also found that end‐user characteristics are driving forces leading to different types of reverse distribution systems. Originality/value – The paper builds an important bridge between separate flows in distribution systems, and addresses a void in distribution research.

Andreas R. Holter; David B. Grant; James Ritchie; Nigel Shaw

2008 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030810857193

Purpose – The purpose of this paper is to present a framework for purchasing transport services to enable small and medium size enterprises (SMEs) to improve relationships with logistics service providers (LSPs) and enhance their own competitive advantage and profitability. Many SMEs lack competence in purchasing transport services and a subsequent lack of “purchasing power” may cause SMEs to be treated as “order takers” rather than “order makers” by LSPs, who have more leverage in the purchasing process. Design/methodology/approach – This research stemmed from a knowledge transfer research project between the focal company and a university comprising a longitudinal single case study using action research for developing and implementing the framework. Findings – A framework using several tools for purchasing transport services and improving transport performance has emerged from this research. Benefits from using this framework were enjoyed by both the focal company and its LSPs and the focal company improved the relationship power balance. Research limitations/implications – The research and resulting framework are based on a single case study and have not been tested in other firms or markets. However, the proposed framework may be applied in other contexts, entirely or in parts. Practical implications – The research offers practical insights to a frequently‐encountered logistics issue for SMEs through developing and applying specific processes for practical transport purchasing. Originality/value – The paper contributes by synthesising the literature relating to the transport purchasing process generally and in SMEs. It also provides a framework for SMEs to improve their transport purchasing efforts, thereby enhancing economic and operational efficiency.

Joseph B. Skipper; Christopher W. Craighead; Terry Anthony Byrd; R. Kelly Rainer

2008 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030810857201

Purpose – The purpose of the paper is to provide a conceptual/theoretical foundation to enhance the body of knowledge related to supply chain interdependence and technology‐enabled coordination. Design/methodology/approach – The paper heavily engaged itself in the theory/literature related to coordination theory, interdependence theory, interdependence, coordination and supply chain technologies to formulate the theoretical propositions. Findings – From the literature/theoretical bases, the paper derived a total (include sub‐components) of eight theoretical propositions related to interdependence, coordination and technology enablers. Research limitations/implications – While technology enabled‐coordination is central to supply chain management, there is a lack of a prescriptive view present in the literature. By deriving insights from the rich literature related to coordination theory and interdependence theory, we provide a theoretical foundation for future research to enhance the body of knowledge related to the systematic application of technology to foster the appropriate coordination strategy. Practical implications – Although empirical support is warranted, the proposed concepts related to technology‐enabled coordination offer pragmatic advice to managers. Originality/value – The paper provides a theoretical foundation for future research to enhance the body of knowledge related to the systematic application of technology to foster the appropriate coordination strategies.

Juuso Töyli; Lotta Häkkinen; Lauri Ojala; Tapio Naula

2008 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030810857210

Purpose – To explore the present logistics performance of Finnish small and medium‐sized enterprises (SMEs) and to analyse the relationship between logistics performance and financial performance in these firms. Design/methodology/approach – The dataset comprises 424 SMEs that participated in a nationwide Finnish logistics survey in 2006. Logistics performance measures were derived from the survey data, and based on these values logistically top‐performing firms were identified within different industry groups. The financial performance of these firms was then examined vis‐à‐vis their industry peers using financial reports‐based data. Findings – The results imply that the overall level of logistics performance among the examined companies might be at such an elementary level that no statistically observable positive linkage between logistics performance and financial performance exists. The group of firms for whom logistics is a key source of competitive advantage in this sample is small and therefore statistical analysis at an industry level might be too aggregate to reveal this linkage. It is also surprising that service level and logistics cost efficiency are positively related; thus, companies who have a relatively high‐service level tend to have relative low‐logistics costs. These findings might imply that logistics is just starting to gain more attention among SMEs in Finland and at least in the short‐term, it might be relatively easy for SMEs to gain competitive advantage by focusing more on logistics performance. Originality/value – This study is the first large‐scale attempt to focus on the logistics performance of SMEs and analyse the linkages between financial and logistics performance among the companies using both self‐reported data and financial reports‐based data. In addition, a theoretical framework of the linkages between logistics performance and financial performance is suggested and revised based on the findings of the study. The revised framework requires testing as a part of future research.