International Journal of Physical Distribution & Logistics Management

Matthew A. Waller; Andrea Heintz Tangari; Brent D. Williams

2008 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030810893508

Purpose – The purpose of this study is to investigate the impact of a key logistics and distribution variable, case pack quantity, on a consumer packaged goods (CPG) manufacturing firm's performance. The paper builds theory with respect to case pack quantity's dichotomous impact on the retail shelf replenishment process and subsequent impact on market share depending on product rate‐of‐sale (ROS). Design/methodology/approach – The study empirically tests the case pack quantity phenomenon using monthly in‐store data collected over a two year time period, market share data and data provided by a leading US CPG manufacturer in the ready‐to‐eat cereal category. Regression analysis is used to determine if case pack quantity significantly impacts firm market share. Findings – According to compelling theoretical and empirical evidence, the number of units per retail shipping container (case pack quantity) has a significant impact on retail market share. The evidence indicates that the effect of case pack quantity on market share depends upon the ROS of a given stock‐keeping unit (SKU). For faster selling SKUs, larger case packs should increase market share. For slower selling SKUs, larger case pack quantities reduce market share because of additional stockouts at the retail level, resulting from execution problems caused by the larger case pack quantities. Practical implications – Given the study's findings, CPG manufacturing firms must align case pack quantities with SKU ROS to positively affect the shelf replenishment process. Originality/value – The paper demonstrates that case pack quality has a significant impact on retail market share.

Jan Stentoft Arlbjørn; Patrik Jonsson; John Johansen

2008 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030810893526

Purpose – The purpose of this data‐based analysis is to report and reflect on the characteristics of the academic discipline concerned with logistics and supply chain management (SCM) as it is conducted in the Nordic countries (Denmark, Finland, Iceland, Norway and Sweden). The paper further seeks to explain variations in the research field in terms of the demographics, research domains and methodologies, and publication patterns of the study's respondents. Design/methodology/approach – An e‐mail questionnaire survey was distributed to 353 researchers based in the Nordic countries. With 144 answers returned, the response rate was 41 per cent. Findings – The study did not provide a clear picture of a distinct Nordic research paradigm applying to the study of logistics and SCM. The analysis shows as characteristic of research issues pursued by Nordic researchers the focus on supply chains and networks and the use of dyads, chains or networks of organizations as levels of analysis. The use of case study methodology and a highly diversified publication pattern were likewise evident. Most researchers were found to rely heavily on external research funding. Significant differences were also identified for research conducted by researchers holding PhD degrees as compared to research by respondents with lower degrees, for researchers affiliated with institutions based in the technical sciences in comparison to those in the social sciences, and for institutions according to their varying degrees of experience with research in the field and external funding. Research limitations/implications – The research reported here may help individual researchers raise their consciousness about their own research. Originality/value – This is the first empirical study to analyze research paradigms within logistics and SCM in the Nordic countries. It identifies a number of significant differences in regard to research patterns among various categories of researchers and institutions.

Chaodong Han; Martin Dresner; Robert J. Windle

2008 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030810893517

Purpose – The purpose of this paper is to empirically investigate the impact of global sourcing and exports on US domestic manufacturing inventories and quantify the additional inventory costs associated with global operations. Design/methodology/approach – A panel data set of 19 US manufacturing sectors is constructed over the period 2002‐2005. Data are collected from the US economic census and other government statistics. Fixed and random effects models in both linear and LOG terms are estimated and the estimated coefficients used to calculate the cost to US manufacturing industries of additional inventories attributed to global operations. Findings – Imports and exports have a positive, significant impact on raw materials inventory and finished goods inventory, respectively, in terms of days of supply. Based on estimations using 2005 data, a 10 percentage point increase in the import and export ratios for all US manufacturers is estimated to be accompanied by $3.03 billion additional costs for raw materials inventory and $5.33 billion for finished goods inventory, respectively. Originality/value – This study is among the first to quantify the impact of global sourcing and exports on US domestic inventories using secondary data. To macroeconomic policy makers and industry managers, the results may serve as a benchmark to how domestic inventories are affected by global outsourcing and exports, and as a reminder that the benefits of global activities may be overestimated if inventory costs are not explicitly taken into consideration.

Robert Lieb

2008 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030810893535

Purpose – This study attempts to provide insight into the dynamics of the third party logistics (3PL) industry in the Asia‐Pacific (APAC) region. Design/methodology/approach – The data reported in this paper were generated through a survey of the chief executive officer (CEOs) of ten of the largest 3PLs operating in the region. Findings – Those companies anticipate substantial regional revenue growth, with nearly one‐quarter of that growth coming from acquisitions. Private equity (PE) investors have been active in the region, and the CEOs are divided as to whether that is a positive or negative development. Price compression, market entrance of foreign 3PLs, and increased pressure to internationalize services were identified as the most important regional market dynamics. Continued growth of intra‐Asian business and possible expansion of transportation services were cited as the most important regional opportunities. A continuing shortage of management talent, the region's regulatory structure, and inferior transportation services were cited as the most significant regional problems. Practical implications – The region's growth prospects will promote further investments by 3PLs and PE companies. Regional transportation problems will continue to trouble 3PLs, and they must develop strategies to address shifting manufacturing patterns. The regional “talent shortage” will continue, and while 3PLs have taken steps to improve recruiting, training, and retention, there is little short‐term relief in sight. Regional buyers of 3PL services are becoming more sophisticated, and will likely place even more pressure on prices. Continued cost‐cutting measures and growing customer selectivity are the most likely reactions of 3PLs to that pressure. Originality/value – The paper provides insight into the current status and future prospects of the third‐party logistics industry in the APAC region.