International Journal of Physical Distribution & Logistics Management

George Deitz; John Hansen; R. Glenn Richey Jr

2009 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030911011423

Purpose – Over the past decade, channels researchers have devoted considerable attention to a potential shift in the balance of power in retailer‐manufacturer relationships. At the same time, a burgeoning body of supply chain research, largely overlooked by marketing researchers, has emerged promoting the benefits of cooperation in technology‐enabled supply chain integration. This study aims to investigate the confluence of these streams. Specifically it aims to consider the effects of retailer supply chain technology mandates on supplier financial performance. Design/methodology/approach – The design and method is a secondary data event analysis including cross‐sectional regression analysis. Findings – The event analysis findings indicate suppliers affected by Wal‐Mart's 2003 RFID mandate experienced net gains in abnormal stock returns. Subsequent cross‐sectional regression analysis show abnormal returns were stronger for suppliers with greater cash flow and for more dependent suppliers. Practical implications – Study results suggested firms with stronger cash flows are better able to absorb the unexpected costs of complying with the retailer mandate. Additionally, the findings indicate mandate‐associated positive abnormal returns were more pronounced for suppliers with a larger percentage of sales through the Wal‐Mart channel. This means that a dependent supplier that follow technology mandates by power retailers will potentially receive above average stock returns. Originality/value – This paper is believed to be the first to address the impact of technology mandates in the supply chain.

R. Glenn Richey Jr; Haozhe Chen; Rahul Upreti; Stanley E. Fawcett; Frank G. Adams

2009 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030911011432

Purpose – Implementation of supply chain management techniques requires thorough integration of processes between supply chain partners in all functional areas, including sourcing, manufacturing, and distribution. Yet insufficient attention has been given to the means by which firms achieve high levels of integration. This study aims to examine moderators impacting supply chain integration barriers. Design/methodology/approach – Supply chain integration drivers and moderating barriers to supply chain integration were identified by extensive search of the literature, and in‐depth interviews with supply chain managers. A survey was developed to measure levels of supply chain integration drivers, barriers to supply chain integration, and firm performance. The measures were validated using EFA, and the responses analyzed using multiple regression. Findings – The study finds that firms with a desire to improve, operating in a challenging competitive environment typically experience high levels of performance. Further, barriers to supply chain integration can actually increase the firm's ability to achieve firm performance as the firm is required to make greater efforts to overcome those barriers and develop effective supply chain linkages. Originality/value – This study answers a call for additional research into factors that enable and inhibit supply chain integration, and offers an empirical analysis of the moderating effect of supply chain integration barriers on the relationship between integration drivers and firm performance.

Daniel J. Flint; Susan L. Golicic

2009 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030911011441

Purpose – Sustainability is becoming increasingly important in supply chains, particularly in those that function in highly competitive industries. The purpose of this paper is to understand more deeply the role sustainability plays within supply chains based on a qualitative study conducted in the New Zealand wine industry. Design/methodology/approach – This research followed a grounded theory methodology which used in‐depth interviews with managers from wineries, retailers, and restaurants; observations of operations; and interpretation of field documents/artifacts. Findings – The findings show that managers within the New Zealand wine supply chains are trying to find ways to leverage sustainability‐related competencies for competitive advantage in what is now a highly competitive industry. Within this context, the emergent theme of searching for advantage through sustainability involves: pursuing and leveraging sustainability; telling a story that involves sustainability; managing supply chain relationships around sustainability; and experimenting with sustainability initiatives. Research limitations/implications – The research is limited to the context and participants of the study. As a qualitative inquiry, findings are exploratory. The research implications, however, involve deeper studies into how wine industry firms in other nations and regions of the world are treating sustainability and searching for competitive advantages. Further validation of the models that emerge can be accomplished through future research, which would draw on aggregate data. Originality/value – The approach and context within which sustainability is explored is unique. By seeking deep insights from managers on the cutting edge of sustainability initiatives, we are able to get close to strategic thinking and explore the impact on distribution relationships.

Jason K. Deane; Christopher W. Craighead; Cliff T. Ragsdale

2009 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030911011450

Purpose – The purpose of the paper is to provide a conceptual foundation to enhance the body of knowledge related to supplier selection in light of global supply chain disruptions and risk. Design/methodology/approach – The proposed tool is based on a multi‐criteria optimization framework, which will enable the user to gain a better understanding of how the consideration of each of these risk measures will affect the recommended solution/supply base. The model serves as a complement to existing supplier selection models by incorporating regional risks associated with potential suppliers' locations and density risks based on great circle distance measures. Findings – The paper demonstrated the proposed model by using the great circle distance measure to calculate the density risk and two secondary data sources to capture environmental risk. One measure captures a variety of environmental issues such as political, legal, security, fiscal, labor, and regulatory issues. The other measure captures the historical effects of weather on dollar and human losses in each country of the world, which represents the potential for severe weather events and the country's ability to react to these events. Research limitations/implications – Although the paper does not consider all possible risks, it augments prior research through the development of a decision support tool that offers supply risk mitigation when sourcing globally. Specifically, the tool allows for the analysis and mitigation of two key global risk measures, environmental risk and density risk, when selecting suppliers for mission‐critical parts. The model is able to support various sourcing strategies such as sole, multiple and cross sourcing and can be used in conjunction with other disruption mitigation strategies such as supply redundancy. Practical implications – Global sourcing has provided significant performance enhancements, but has put firms in a vulnerable position relative to the potential devastating effects of supply disruptions. While supply managers are cognizant of the risks associated with global sourcing, limited knowledge and tools are available to allow them to mitigate these risks. Although it would need to be adapted to the nuances of company supply chains, it is believed that the tool provides value to managerial decision making relative to the sourcing of mission critical parts/products. Originality/value – Prior work in this area has not adequately incorporated contemporary issues and risks in global sourcing. The paper augments prior research through the development of a multi‐objective decision support model for strategic supplier selection that is focused on two important contemporary factors: environmental risk and density risk. The proposed model captures important interdependent relationships between these two factors that have not been considered in prior selection models.