International Journal of Physical Distribution & Logistics Management

Rommert Dekker; Eelco van Asperen; Geerten Ochtman; Walter Kusters

2009 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030910996297

Purpose – The purpose of this paper is to consider the use of temporary storage offered by intermodal transshipment points to position some stock of fast moving consumer goods in advance of demand; this floating stock concept combines transport and inventory management. Intermodal transport is compared with direct road transport for a supply chain. Design/methodology/approach – First an analytical comparison is made which shows that the floating stock concept has advantages in inventories over pure road and intermodal transport. Next, a simulation study of a real case is made which quantifies the cost‐differences in detail. Findings – It is found that both storage costs can be lowered and shorter response times be gotten by sending shipments in advance to intermodal terminals. The advance positioning can offset the disadvantage of a longer transit time in intermodal transport. Research limitations/implications – Demand needs to be somewhat predictable. The pooling effects depend on geographical layout of the customers. The availability of intermodal transport options is based on the situation in Western Europe. Practical implications – The floating stock concept considers both the transport and inventory issues. By positioning some of the stock at transshipment points close to the customer in anticipation of demand, the concept can yield lower inventory costs as well as a lower customer lead time. The benefit for logistics service providers is a more regular supply chain. Using intermodal transport provides an opportunity to green the supply chain as the environmental impact per ton/kilometer is lower than road transport. Originality/value – This paper draws on the areas of logistics and inventory management to consider the choice of transport mode; most studies look at these issues in isolation. Considering the holding and storage costs in addition to the distribution strategy enables a more thorough comparison of the transport modes.

Premkumar Rajagopal; Suhaiza Zailani; Mohamed Sulaiman

2009 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030910996305

Purpose – The primary purpose of this paper is to examine empirically the significant determinant for supply chain partnering (SCP) that can be applied by the firms to increase their effectiveness in SCP efforts. Next, the paper intends to examine the impact of scalable partnering towards the effectiveness of SCP. Design/methodology/approach – To address the research problem, a survey instrument is developed and a structured model is hypothesized and tested using SPSS tool. Data are collected from a field research on a sample of 584 companies in Malaysia. Findings – The result of this research indicates that resource sharing have positive influences on SCP. Increasing scalable partnering would also lead to increases in the effectiveness of SCP. Research limitations/implications – One of the limitations of the study is that the use of a single key informant for the data collection from the respective companies. A more stringent test of the relationships between scalable partnering and its impact in SCP requires a longitudinal study. Practical implications – Managers must also recognize the influential role of scalable partnering which actually motivates channel partners to continue their investment in SCM initiatives. Thus, managers should pay more attention to the need of channel member to generate a higher level of confidence in scalable partnering. Originality/value – While SCP and its determinant exist in prior research, this paper contributes a new variable “Scalable Partnering” towards strengthening the relationship among the supply chain partners.

Wesley S. Randall; M. Theodore Farris II

2009 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030910996314

Purpose – The purpose of this paper is to show how firm financial management techniques may be used to improve over all supply chain profitability and performance. Design/methodology/approach – This paper uses a case‐based approach to demonstrate how supply chain financial management techniques, such as cash‐to‐cash and shared weighted average cost of capital (WACC), can reduce the financial costs experience by a supply chain. Findings – This paper provides a methodology to identify and quantify the potential opportunities to increase profitability throughout the supply. Scenarios are offered that illuminate potential supply chain improvements gained by collaborative management of cash‐to‐cash cycles and sharing WACC with trading partners. Research limitations/implications – These financial techniques are readily available for use in collaborative supply chain structures. Practical implications – Coordinating financial management across the supply chain is a potential tool to align and improve the financial performance of collaborating firms. This method extends to the supply chain those historically firm‐centric financial management concepts such as return on capital and cash flow. The impact is reduced overall cost generated by leveraging the financial strength of the entire supply chain. During economic downturns and times of tight credit proactively managing financials across the supply chain may be the only way some suppliers remain afloat. Originality/value – Two firm level financial management approaches are extended and they are adopted for use across the supply chain: cash‐to‐cash management; and leveraging a shared supply chain financing rate. This paper builds on the increasing body of research and practice that suggests trading firm‐optimized for supply chain optimized performance reduces overall cost and improves customer value.

James R. Stock; Stefanie L. Boyer

2009 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030910996323

Purpose – Without the adoption of a uniform agreed upon definition of supply chain management (SCM), researchers and practitioners will not be able to “advance the theory and practice” of the discipline. An integrated definition of SCM would greatly benefit researchers' efforts to study the phenomenon of SCM and those practitioners attempting to implement SCM. This paper aims to address these issues. Design/methodology/approach – Using the qualitative analysis software NVivo , this study examines 166 definitions of SCM that have appeared in the literature to determine important components of an integrated definition of SCM. Findings – Three broad themes of SCM are identified, including: activities; benefits; and constituents/components. An encompassing definition of SCM is developed from the qualitative analysis of these definitions. Research limitations/implications – While a large number of SCM definitions have been included in the research design, there may be additional definitions that are excluded given the very large number of SCM publications. Practical implications – A consensus definition of SCM will allow researchers to more precisely develop theory and practitioners to identify the scope and boundaries of SCM. Originality/value – This paper is the first attempt to include a large number of SCM definitions for the purpose of developing a consensus definition of the concept. Previous literature has included only a subset of published SCM definitions.