International Journal of Physical Distribution & Logistics Management

Yu Tian; Alexander E. Ellinger; Haozhe Chen

2010 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600031011052822

Purpose – Based on customer value theory, this paper aims to propose and test a conceptual model of the relationship between third‐party logistics (3PL) provider customer orientation and customer firm logistics improvement. Design/methodology/approach – The 3PL provider customer orientation is conceptualized as a higher, second‐order construct made up of four key logistics‐driven first‐order indicators: service variety, information availability, timeliness, and continuous improvement. A survey‐based approach is utilized to collect data from managers at 124 manufacturing customer firms in the People's Republic of China; structural equation modeling is performed to assess measures and test the hypothesized relationships. Findings – Chinese 3PL provider customer orientation significantly influences customer firm logistics improvement. Research limitations/implications – Findings are based on single source perceptual data from customer firm key respondents. Tests indicate that common method bias is not a problem. Practical implications – At a time when market pressure is compelling Mainland Chinese 3PL providers to upgrade and expand service offerings, 3PLs with a strong customer orientation create significant value for customers through superior execution on key elements of logistics service. Originality/value – The paper responds to calls for additional theoretically driven assessment of market orientation in logistics service provider firms by identifying explicit behavioral manifestations of 3PL customer orientation that enhance customer firm logistics performance.

Keah Choon Tan; Vijay R. Kannan; Chin‐Chun Hsu; G. Keong Leong

2010 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600031011052831

Purpose – The purpose of this paper is to examine the effects of inter‐organization information exchange on supply chain information and relational alignment. Drawing on literature on information systems, supply chain management, and logistics, the paper aims to present a multidimensional framework for considering electronic data interchange (EDI) adoption in supplier management and its effect on information and relational alignment. Design/methodology/approach – Theories drawn from resource‐dependent and transaction cost economics, and the resource‐based view of the firm were used to establish hypotheses. Structural equation modeling using survey data of manufacturing firms was used to test the hypotheses and research model. Findings – Results support the central premise that firms must consider EDI adoption in supplier management to improve information and relational alignment between supply chain partners. It is through this alignment that firms achieve superior performance. Research limitations/implications – This study used a single respondent from each firm due to cost considerations, and hence might have affected the inter‐rater reliability of the survey data. Practical implications – Results show that firms should consider EDI adoption in supplier management because of its positive effect on information and relational alignment, which in turn impacts firm performance. However, EDI does not affect performance directly. Originality/value – The role of EDI adoption in supplier management was examined and shown to indirectly affect firm performance via improved information and relational alignment. Moreover, supply chain information alignment was found to enhance relational alignment among supply chain partners.

H.I. Hsiao; J.G.A.J. van der Vorst; R.G.M. Kemp; S.W.F. (Onno) Omta

2010 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600031011052840

Purpose – The purpose of this paper is to present a decision‐making framework for outsourcing levels of logistics activities. These are: execution level of basic activities (such as transportation, warehousing); value‐added activities; planning and control level of activities (such as transportation and inventory management); and strategic decision‐making level of activities (distribution network design). Design/methodology/approach – The research design comprises three stages. Literature review was undertaken to study outsourcing theories. Successively, case studies on three food manufacturers were conducted resulting in a framework for make‐or‐buy decision. Finally, an exploratory survey was undertaken to examine the determinant factors for outsourcing the different activities. Findings – Results indicate that logistics activities at different levels are outsourced for different reasons. Three main determinant factors are identified: asset specificity, core closeness and supply chain complexity. This implies that the evaluation of outsourcing different activities requires insights of three theories, namely transaction cost, resource‐based and supply chain management theory. Research limitations/implications – The research and resulting framework are based on three small cases. Furthermore, there are few companies that outsource higher levels of activities, which limits the statistical assessment of the survey results. Practical implications – The framework can support the decision‐making process for outsourcing different logistics activities in food industry. Originality/value – The key contribution of this paper is that it creates a comprehensive framework for outsourcing of both basic and advanced logistics activities specifically for the food industry.

Yuan Xing; David B. Grant; Alan C. McKinnon; John Fernie

2010 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600031011052859

Purpose – Many traditional retailers use the internet as a complementary business channel while “pure player” retailers only sell products via the internet. The question of who is better at offering electronic physical distribution service quality (e‐PDSQ) is open to debate. But, despite e‐PDSQ's importance there are few empirical studies and most have focused on general service quality of internet shopping or web site design. The purpose of this paper is to discuss and empirically test a conceptual framework for e‐PDSQ from the consumer's perspective. Design/methodology/approach – This paper follows a two‐stage paradigm for scale and construct development, which is presented in a framework based on the concept of order fulfilment as a key driver in e‐PDSQ. Consumer postal surveys were conducted in Edinburgh, UK. Findings – The consumer survey confirmed the appropriateness of the adopted e‐PDSQ framework. The finding that price is the most important online purchasing criteria is in accordance with Verdict which suggests that price is the principle motivator in the home delivery market as the retailing market is getting more price‐transparent and consumers are becoming more price‐sensitive. Originality/value – Earlier work has provided insight into how e‐PDSQ, represented by availability, timeliness and reliability. This paper extends this work and empirically tests and confirms an e‐PDSQ framework to investigate differences between multi‐channel and pure player retailers, and provides a parsimonious set of e‐PDSQ variables and constructs for retailers to use to design and operate their online offerings.