International Journal of Physical Distribution & Logistics Management

Hokey Min

2009 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030910962230

Purpose – This paper seeks to illustrate the successful development of a warehousing decision support system (WDSS) that aided the Buckeye Cable Vision Incorporated (BCV) in making its strategic warehouse expansion and re‐warehousing decisions. The WDSS utilized by the BCV can be a blue‐print for other companies which would like to improve their warehousing productivity and strengthen the warehousing link to their supply chain. Design/methodology/approach – Warehousing costs make up a significant portion of a company's business expenditures. Thus, many companies are pressured to control warehousing costs by improving their warehousing productivity. However, it is not an easy task to improve warehousing productivity given the increased complexity associated with today's warehousing activities such as value‐added services and cross‐docking operations. To cope with such warehousing challenges, a specific decision support system (DSS) that incorporates several computer‐based models into the warehouse decision‐making process is proposed. These models include: a simulation model based on computer‐aided design, an analytic hierarchy process, and a forecasting technique. To demonstrate the usefulness of the proposed DSS and provide practical guidance for other companies that seek the DSS as a powerful decision‐aid tool, this paper conducted an in‐depth case analysis of the BCV that successfully exploited the WDSS. Findings – Through the BCV's case, it was shown that the WDSS could not only enhance warehousing productivity, but could also improve supply chain visibility. Also, it was found that the WDSS success lay in the company's ability to sustain high data quality by standardizing, cleaning, and updating relevant data on a real‐time basis. Originality/value – Since the early 1970s, a DSS has attracted attention from both profit and non‐profit organizations. Despite the long history of DSS evolution, it has been rarely applied to strategic warehousing decisions. This paper is one of the first attempts to develop a specific DSS that can assist warehousing managers in documenting warehousing costs, identifying non‐value adding activities, evaluating strategic warehousing alternatives, and utilizing given warehousing resources.

Scott J. Grawe; Haozhe Chen; Patricia J. Daugherty

2009 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030910962249

Purpose – The purpose of this paper is to determine how a firm's strategic orientation affects service innovation capability and the resulting impact on market performance. Design/methodology/approach – A survey was administered to supply chain executives. Structural equation modeling was used to analyze the relationships among the following constructs: customer orientation, competitor orientation, cost orientation, service innovation, and market performance. Findings – Although the relationship between cost orientation and service innovation is not supported, the relationships between customer orientation and competitor orientation and service innovation are supported. Additionally, the relationship between service innovation and market performance is supported. Research limitations/implications – This study is one of a limited number of studies which has empirically addressed service innovation. Additional research is needed to address the impact of a firm's strategic orientation on product innovation capability. Practical implications – The study found that firms seeking to develop a service innovation capability should employ customer orientation, competitor orientation, or a combination of the two different types of strategic orientation. Originality/value – Service innovation has received very little empirical attention in the current innovation literature. This paper fills in some of the gaps in the literature.

Omera Khan; Alessandro Creazza

2009 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030910962258

Purpose – The purpose of this paper is to investigate the interface between product design and the supply chain and to develop a roadmap to the design centric business through better management of this interface. Design/methodology/approach – A case study approach is adopted. This enabled the development of a roadmap to inform businesses on how to develop a design centric business integrated with the extended supply chain. Findings – The research shows that successful companies will be those which seek to extend and develop the contribution of design into all aspects of their business. The roadmap to a design centric business enables firms to better position product design within their business processes and helps facilitate better integration between product design and the supply chain. Research limitations/implications – The findings from this research have been derived from a scoping study of a relatively small sample. However, the findings are grounded by a structured literature review and are generalisable to other industry sectors. Originality/value – Design for the supply chain is an under‐explored area. The conceptual framework highlights the importance of the product design‐supply chain management interface and offers a roadmap for companies to develop a more design centric business.

Richard R. Young; Peter F. Swan; Evelyn A. Thomchick; Kusumal Ruamsook

2009 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030910962267

Purpose – The purpose of this paper is to identify the components required for more robust landed cost models given the now widespread interest in sourcing finished goods, components for assembly, and basic raw materials from global sources. This study also seeks to establish the need for broad‐based participation in operationalizing such models. Design/methodology/approach – Interviews are conducted with several major firms that import a range of merchandise into the USA to develop in‐depth case studies. A taxonomy of variables found in increasingly comprehensive forms of landed cost models is developed from the case studies. These variables are assembled into modules and analyzed with the use of an expert panel consisting of executives responsible for import activities at major firms. Findings – Most major firms are relatively unsophisticated in their approach to making offshore sourcing decisions. Few employ models that are sufficiently detailed and some do not even embrace the basic logistical elements of price, transportation, and inventory. The administrative overhead required for offshoring is seldom considered nor are the potential risks associated with sourcing globally that may result. Research limitations/implications – The study considered only imports into the USA. Even with a relatively broad range of industries represented and the in‐depth research design, there are very few data points. Hence, this is theory building research upon which a more broad‐based methodology will be found. Practical implications – With firms of all sizes and industries seeking to employ offshore sources of supply, a rational approach needs to be developed to support such decisions. Historically, such actions were taken on the basis of price alone; however, such an approach is clearly suboptimal. Many firms need to develop the ability to collect the requisite data, allow sufficient time to conduct proper analysis, and establish the cross‐functional mechanism for decision making. Originality/value – This paper provides a range of modules, the more sophisticated potentially useful for supporting effective offshore sourcing decisions. It also advances the idea that while cost advantages may be present, there may be certain risk factors that obviate offshore sourcing alternatives.