International Journal of Physical Distribution & Logistics Management

Erik Hofmann

2009 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030911008175

Purpose – Against the background of the scanty knowledge about inventory financing in supply chains, the goal of this paper is to provide a conceptual explanation of the relevance and the implications of alternative inventory financing by a logistics service provider (LSP). Design/methodology/approach – First, based on a literature review, inventory‐related conflicts of interest between actors in the supply chain are discussed. Second, a concept of inventory financing through an LSP is developed. Third, the concept introduced is illustrated by means of a numerical example. Findings – The results of an illustrative example from Switzerland and a rough revenue and expenditure calculation highlight the effects that inventory financing through a logistics service provider may have for LSP. For the LSP profit depends mainly on the value and amount of the goods to be financed. Practical implications – The results of this paper can be applied to logistics service providers. The model developed can accordingly be used to calculate the additional effects of inventory financing service. Originality/value – This research offers initial insights into the importance of inventory financing from an LSP perspective. As activities in this field may offer additional profits and differentiation options, decision makers at logistics service providers might want to estimate the potential resting in this expansion of their service catalogue.

Ari‐Pekka Hameri; Juha Hintsa

2009 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030911008184

Purpose – This paper aims to systematically document drivers of change and the implications they will have on international supply chain management in the coming two decades. Design/methodology/approach – This study was commissioned by the World Customs Organization (WCO) at the end of June 2006. Because of increased trade volumes, emerging complex supply networks and heightened security concerns, the WCO saw the need to assess future trends and drivers in supply chain management. The Delphi method was applied to identify a set of foreseeable drivers of change and to assess their predicted impact on global supply chain management in the coming ten to 20 years. Based on a literature review of 150 recent publications and interviews among 33 industry, academic and customs experts, a survey was designed and conducted to collect current and potential change drivers in global supply chains. These drivers were compiled and prioritized by an eclectic team of 12 specialists. Findings – The main results of the study are strongly connected to strategic and operational supply chain planning for the next ten to 20 years. They are related to increased off‐shoring of operations through truly global manufacturing, characterized by its intercontinental supply of materials; increased product complexity with shorter product life cycles; increased importance of business‐to‐government networking for operational and security efficiency; introduction of new supply chain services integrating financial, physical and information flows leading to further consolidation in the logistics markets; and the overall increase in risks and vulnerabilities in international supply chains. Originality/value – This paper provides a 360 degree view of the future of international supply chain management and the challenges companies will face to compete in the twenty‐first century business environment.

Carlos Mena; Andrew Humphries; Richard Wilding

2009 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030911008193

Purpose – Theoretical models of collaboration assume that intra‐organizational relationships are more collaborative that inter‐organizational ones. This paper seeks to question the validity of this assumption by comparing the levels of collaboration in two cases that comprise both types of relationship. Design/methodology/approach – Two case studies in the UK food industry were conducted, in each two relationships were analyzed: one inter‐ and one intra‐organizational. Data were collected through a questionnaire followed by semi‐structured interviews. Findings – This exploratory research indicates that in both case studies intra‐organizational relationships have lower levels of collaboration than inter‐organizational ones. This appears to contradict the commonly held assumption that intra‐organizational relationships involve closer collaborations than inter‐organizational ones. Research limitations/implications – Case study approaches have reliability and generalisability limitations, however, the paper was given in‐depth access to four relationships (two per case), which provide a basis for further research. The use of multiple informants and two methods of data collection helped to increase reliability and efforts were made to reduce bias in responses by ensuring confidentiality and engaging with participating companies in an impartial way. Practical implications – A better appreciation of collaboration in inter‐ and intra‐ organizational relationships will result in managers making better decisions about how their organization relates internally and externally. This could have implications for decisions on make‐buy, alliances, and acquisitions. Originality/value – The paper shows that it is possible to have relationships with customers and suppliers that are more collaborative than those between departments within a single organization. This finding appears to challenge traditional assumptions and provides a new perspective of the management of supply chain relationships.

Gino Marchet; Alessandro Perego; Sara Perotti

2009 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600030911008201

Purpose – Companies in the freight transportation industry can currently make use of an increasing number of applications based on Information and Communication Technology (ICT) to improve the performance of their processes. Although these applications have become more widely used in recent years, there is still little research focussing on the actual adoption rate. The present study aims to fill this gap and provide a broad empirical analysis of the use of ICT‐based applications in the freight transportation industry in Italy. Design/methodology/approach – The analysis uses multiple‐case studies. It is based on semi‐structured interviews with the management of leading Italian companies involved in transportation processes. Findings – The study provides an insight into the current adoption of ICT applications among companies involved in freight transportation activities in Italy. The results point out the most used functions in each application area and the level of integration across these application areas. Research limitations/implications – The sample of companies examined in this study was selected by expert assessment, and is biased towards companies willing to provide data and share results. However, the findings provide some interesting results on how and where investments in ICT can be suitable for companies in the logistics and transportation industry. Originality/value – The paper fulfils an identified need for in‐depth case studies focussing on the adoption level and the implementation process of ICT applications in transportation, and it is of interest to researchers and practitioners in the field of logistics and transportation management.