Customer‐specific adaptation by providers and their perception of 3PL‐relationship successRudolf O. Large; Nikolai Kramer; Rahel Katharina Hartmann
2011 International Journal of Physical Distribution & Logistics Management
doi: 10.1108/09600031111175807
Purpose – The purpose of this paper is to investigate whether there is an impact, from a provider's perspective, of customer‐specific adaptations by third‐party logistics (3PL) providers on the success of 3PL‐relationships. Design/methodology/approach – A document analysis is presented and hypotheses are developed based on research in 3PL, relationship marketing and transaction cost theory. Structural equation modelling and causal analysis with partial least square were used to test the hypotheses. Findings – This study provides evidence that customer‐specific adaptation by providers is an important prerequisite to 3PL‐performance. Furthermore, according to the transaction cost theory, the results express the importance of providers' adaptation to maintain 3PL‐relationships. Research limitations/implications – Further research should compare customers' perceptions of partner‐specific adaptations and 3PL‐relationship success with the results of this study. Originality/value – The paper shows that 3PL‐providers should adapt their systems and procedures to customers' specific requirements, to ensure high‐relationship performance. Satisfied customers should promote the providers' adaptations, because these adaptations enhance the probability of contract renewal and reduce the risk of providers' unexpected termination of the contract.
Interpretive structural modeling of supply chain risksHans‐Christian Pfohl; Philipp Gallus; David Thomas
2011 International Journal of Physical Distribution & Logistics Management
doi: 10.1108/09600031111175816
Purpose – The aim of this paper is the structural analysis of potential supply chain risks. It will demonstrate how interpretive structural modeling (ISM) supports risk managers in identifying and understanding interdependencies among supply chain risks on different levels (e.g. 3PL, first‐tier supplier, focal company, etc.). Interdependencies among risks will be derived and structured into a hierarchy in order to derive subsystems of interdependent elements with corresponding driving power and dependency. Design/methodology/approach – ISM was used to identify inter‐relationships among supply chain risks and to classify the risks according to their driving and dependence power. The theoretical findings of the modeling and the applicability for practical use has been tested in two case studies with two German industry and trade companies. Findings – ISM was proven as a useful methodology to structure supply chain risks in an easy and distributed approach that can also be carried out in a step‐by‐step process on several manufacturing stages. The input to the algorithm has to be well‐defined to give the user an exact understanding of all risks that have to be assessed, i.e. the better the input to ISM is prepared the better the outcome and representation will be. Finally, when applying the method, a moderated process proved to be more reliable than an assessment based on paper questionnaires only. Originality/value – This model's insight would assist supply chain (risk) managers in the effective allocation of risk management resources in the subsequent risk management phases.
Collaboration as an anti‐crisis solution: the role of the procurement functionOihab Allal‐Chérif; Salvator Maira
2011 International Journal of Physical Distribution & Logistics Management
doi: 10.1108/09600031111175825
Purpose – The length and sheer scale of the current economic crisis has surprised most managers, who were unprepared to deal with such a situation. Standing at the heart of their businesses, procurement managers need to limit the negative impact of the crisis. Restructuring and cost killing are usually the first responses. However, some buyers are pioneering a new kind of collaborative management that, instead of increasing the pressure on suppliers and reducing risk‐taking to a minimum, advocates taking new initiatives. The purpose of this paper is to present a new, “collaborative buyer” approach to the management of the procurement function. Design/methodology/approach – This qualitative research uses a constructivist methodology based on interviews of 12 buying experts. It develops scenarios and identifies the features of collaborative procurement. In order to map the future of the procurement function, this research looks at the expectations and forecasts of the players involved. The aim is a comprehensive, long, rational, ownership approach that is action oriented. Findings – The paper offers an overview of new, foresight‐based procurement practices, based on the subtle but precise perception of the faint signs of coming change by people immersed in the procurement sector. The procurement professionals agreed to co‐construct a new buyer profile resulting from changes to the old buyer profile and the convergence of other occupations with new skills and expertise. Originality/value – The aim is to carefully co‐construct a picture of the future of the procurement function. The paper presents new forms of internal and external collaboration, the roles and specific skills of this type of “buyer of the future,” and how the globalised economy is becoming an increasingly community based, collaborative virtual environment.
Tax aligned global supply chains Environmental impact illustrations, legal reflections and crossfunctional flow chartsOskar Henkow; Andreas Norrman
2011 International Journal of Physical Distribution & Logistics Management
doi: 10.1108/09600031111175834
Purpose – Both logisticians and tax lawyers design global supply chains – but based on different logics. If they do not align each other's perspectives, problems might occur in different areas. The purpose of this paper is to illustrate the impact the tax system could have on supply chain design, reflect (from both perspectives) on how the rules function, and propose a common communication platform for supply chain issues and tax issues. Design/methodology/approach – This interdisciplinary research is based on a systems approach, combining logistics system descriptions (based on interviews, workshops and company data) with legal analysis. Main principles of the tax system were applied to the system descriptions (the principle approach). Findings – Logistics and tax systems interact. Issues of implementing drop shipment in different global contexts are shown. One issue is cross‐border rerouting leading to unnecessary environmental impact. Hence interaction between the domains should be improved before starting to optimize global logistics or tax structures. A combined platform for mapping flow charts jointly is proposed. Practical implications – Practitioners from both domains acquire increased understanding of each other's perspectives and a joint tool for flow mapping, combining facts both sides need in their overall analysis. Logisticians will gain better insight into general fiscal principles. Social implications – Societal inefficiencies due to extra cross‐border transports instead of drop shipments were the result when the fiscal rules were applied in reality in certain contexts. This was probably not desired from the policy makers' perspective, so it might lead to policy makers to better try to understand the combined impact of the domains. Originality/value – The paper usefully combines legal and logistics approaches.
The impact on urban distribution operations of upstream supply chain constraintsMichael Browne; Mireia Gomez
2011 International Journal of Physical Distribution & Logistics Management
doi: 10.1108/09600031111175843
Purpose – The purpose of this paper is to investigate and quantify the impact of delivery restrictions on costs and environmental performance for a distribution operation. Design/methodology/approach – Data were gathered from a company and several scenarios with varying delivery restrictions were investigated. Findings – The results show significant reductions in cost and environmental impacts are achieved when restrictions are relaxed. However, the research also highlighted the importance of adopting a supply chain (SC) approach to the removal of restrictions and the need for public/private sector cooperation. Research limitations/implications – The case study is based on one company only. However, the company performs many trips each day to many different customers. Practical implications – The paper provides insight into the scope for change in the SC decision‐making processes in order to reduce environmental impacts (and identifies limitations). Originality/value – The paper is a contribution to better understanding the importance of logistics decisions and not only transport when considering urban freight problems.
Simulation of goods delivery processJean‐Marie Boussier; Tatiana Cucu; Luminita Ion; Dominique Breuil
2011 International Journal of Physical Distribution & Logistics Management
doi: 10.1108/09600031111175852
Purpose – This paper claims that the parking policy is one of the most obvious tools for reducing traffic congestion, pollutant emissions and conflicts between transportation network users. The purpose of this paper is to propose and implement a strategy, via a simulation tool, for the sharing of parking places between light cars and vans for goods delivery. Design/methodology/approach – Temporal and spatial dynamic booking of on‐street parking places is described by using the multi‐agent paradigm. Main agents concerned by the sharing of parking places, their rules and interactions are implemented. Behavioral models and learning process of cognitive agents based on stated preferences collected beside the network users are designed for capturing multi‐agent interactions. Findings – By coupling a 2D traffic simulation tool and the Copert III methodology, it is possible to simulate the traffic and environmental consequences of several scenarios for different infrastructures, occupancy rate of the places reserved for goods delivery and durations of the delivery process. Research limitations/implications – Several points are under development: a 3D environment will capture with more realism the behavior of agents in a larger spatial scale and in real time. The behavioral models will be designed by stated preferences obtained from surveys containing questions coupled with pictures of possible scenarios. Practical implications – Applied in a real context, the sharing of parking places strategy shows benefits for traffic and for the environment. A decision maker can use this strategy for simulating scenarios, in the context of an urban area in particular. Originality/value – The paper demonstrates how a simulation tool based on strategy of parking place sharing can satisfy constraints of transportation network users.