International Journal of Physical Distribution & Logistics Management

Jay Joong‐Kun Cho; John Ozment; Harry Sink

2008 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030810882825

Purpose – Effective and efficient supply chain management is critical to the success of firms engaging in e‐commerce. The purpose of this paper is to examine the impact of logistics capability and logistics outsourcing on firm performance in an e‐commerce market environment. Design/methodology/approach – This research examines the relationship between firm's logistics capability, logistics outsourcing and its performance. Multiple‐item constructs are used to measure the strength of logistics capability and firm performance. The use of logistics outsourcing is represented by a dichotomous variable. Data obtained via a survey were analyzed to investigate relationships among constructs and various hypotheses were tested. Findings – Study results revealed logistics capability to be positively related to firm performance in the e‐commerce market. However, counter‐intuitively, logistics outsourcing and firm performance were not found to be positively linked. Further, the association between logistics capability and outsourcing was not supported. Finally, the interactive effect of logistics outsourcing on the relationship between logistics capability and firm performance was not sustained. Research limitations/implications – Research findings are constrained, as the study was limited to the computer and consumer electronics retailing industry. However, the importance of logistics capability was confirmed in the e‐commerce supply chain for this segment. And the benefit of using third‐party logistics (3PL) to enhance firm performance was not fully established. Practical implications – Logistics capability is critical for superior firm performance in e‐commerce. However, study findings lead to the presumption that firms should avoid logistics outsourcing if performance is predicated on competitive advantage due to internally strong logistics capability and competencies. Originality/value – This research contributes to the study of logistics capability and 3PL in e‐commerce. The development of a logistics capability measurement construct in e‐commerce originated with this research. Also the impact of logistics outsourcing on firm performance is tested for the first time in an e‐commerce market environment.

Craig R. Carter; Dale S. Rogers

2008 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030810882816

Purpose – The authors perform a large‐scale literature review and use conceptual theory building to introduce the concept of sustainability to the field of supply chain management and demonstrate the relationships among environmental, social, and economic performance within a supply chain management context. Design/methodology/approach – Conceptual theory building is used to develop a framework and propositions representing a middle theory of sustainable supply chain management (SSCM). Findings – The authors introduce the concept of sustainability – the integration of environmental, social, and economic criteria that allow an organization to achieve long‐term economic viability – to the logistics literature, and position sustainability within the broader rubric of SSCM. They then present a framework of SSCM and develop research propositions based on resource dependence theory, transaction cost economics, population ecology, and the resource‐based view of the firm. The authors conclude by discussing managerial implications and future research directions, including the further development and testing of the framework's propositions. Originality/value – This paper provides a comprehensive review of the sustainability literature, introduces sustainability to the field of supply chain management, and expands the conceptualization of sustainability beyond the triple bottom line to consider key supporting facets which are posited to be requisites to implementing SSCM practices. The use of conceptual theory building to develop theoretically based propositions moves the concept of sustainability from a relatively a‐theoretical treatment toward new theory in supply chain management.

Vasco Sanchez Rodrigues; Damian Stantchev; Andrew Potter; Mohamed Naim; Anthony Whiteing

2008 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030810882807

Purpose – Much of the recent research on supply chain uncertainty has focused on relationships between manufacturers and suppliers and existing models have therefore been based on this dyadic structure. The aim is to establish a supply chain uncertainty model that explicitly incorporates transport operations and hence the logistics triad; supplier, customer and transport carrier. Design/methodology/approach – This is a literature‐based activity that synthesises and extends existing models of supply chain uncertainty. Findings – The paper develops a new model to reflect the nature of transport operations. Consequently, it identifies five main categories of uncertainty, namely from the points of view of the supplier, the customer and the carrier, respectively, the control systems used in the supply chain and external factors. The interfaces between the uncertainty categories involving all three parties of the logistics triad are identified, so as to develop a more holistic perspective on supply chain uncertainty and how it can be reduced. Research limitations/implications – This paper is conceptual in nature and empirical research into the area of transport uncertainty will be required to validate its findings. Following this, the model can be used to investigate and evaluate improvements in the economic and/or environmental performance of freight transport within supply chains. Practical implications – The model is intended to provide a framework within which organisations, including logistics providers, can develop a supply chain strategy to mitigate the effects of uncertainty. By categorising uncertainty into the types described, organisations may determine where the greatest uncertainties lie and hence develop a prioritised plan for supply chain re‐engineering by initially targeting those uncertainties with the most significant implications for supply chain efficiency. Originality/value – Little research has been undertaken on the impact of uncertainties on transport in the context of collaborative supply chain management. The model rationalises uncertainties into various types taking into account the nature of the logistics triad.

Omera Khan; Martin Christopher; Bernard Burnes

2008 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030810882834

Purpose – The purpose of this paper is to address the increasingly important issue of the impact of product design on supply chain risk management in an era of global supply arrangements. The need to include product design considerations in the development of global supply chain strategies is highlighted. Design/methodology/approach – The research methodology is based on an in‐depth longitudinal case study of a major UK retailer. Data collection tools included observation of supplier meetings/workshops, semi‐structured interviews and access to key company documentation and archives. Findings – This paper provides a framework for design‐led supply chain risk management and thus presents a case for recognising design as more than a creative function but as a platform to manage risk in supply chains. Research limitations/implications – The empirical research reported in this paper is specific to the clothing manufacturing and fashion retail industry. Though the findings will most likely apply to all industries and supply chains where design has an integral role and plays an important part in the competitiveness of the final product, there would be benefit in extending the research into other sectors. Practical implications – The increased trends to outsourcing and offshore sourcing and the elimination of trade barriers have added to the competitive pressures faced by clothing retailers, hence frameworks to manage supply chain risks are significant to the survival of companies from this sector. Originality/value – Whilst there is a growing literature in the field of supply chain risk there is less empirical evidence providing practical examples of the impact of product design on risk. Design‐led risk management offers a novel approach to mitigating supply chain risk.