International Journal of Physical Distribution & Logistics Management

Lutz Kaufmann; Craig R. Carter; Christian Buhrmann

2012 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600031211246492

Purpose – The nascent behavioral supply management (BSM) research stream has raised the level of attention given to deviations from the standard assumptions of the rational paradigm in economics. The adaptation of cognitive heuristics , which add vulnerability to judgment and decision making, creates a pressing need to identify and develop mitigation strategies to debias decision making in the supply chain management environment. The purpose of this paper is to investigate debiasing measures, corresponding contextual variables in the supplier selection process, and their implications for financial decision effectiveness. Design/methodology/approach – The authors used a large‐scale empirical survey among 306 buyers to investigate the relationships among individual and organizational contextual factors, debiasing measures in the supplier selection decision, and the financial effectiveness of the supplier selection decision. Findings – It was found that organizational and individual contextual factors have differing effects on the use of debiasing approaches in the supplier selection decision. Further, the debiasing tactics can have a positive (in the case of supplier selection task decomposing) or a negative (in the case of an interactional challenging of the supplier selection) impact on the financial effectiveness of the supplier selection decision. These findings suggest that supply managers must better understand the contextual factors that influence the supplier selection decision, and carefully choose the correct debiasing tactics when selecting suppliers. Originality/value – This paper relaxes the economic assumption of rational actors and addresses the need to identify and use debiasing tactics in supply chain management contexts. The research also complements the broader‐based behavioral decision‐making literature, which has often relied upon experimental methodologies that use undergraduate or MBA students, by employing a survey‐based approach with supply managers as key informants.

Avi Herbon; Shalom Moalem; Haim Shnaiderman; Joseph Templeman

2012 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600031211246500

Purpose – The purpose of this paper is to develop a user‐oriented decision‐supporting applicable tool for selection of a single supplier out of a group of potential suppliers in a dynamic business environment over a finite planning horizon. Design/methodology/approach – A qualitative and quantitative description of the impact of a change in one or several business environment parameters on current and future supplier choice; the methodology is accompanied by a visual representation of those impacts for the decision maker. The paper presents extended simulation experiments to test the proposed methodology. Findings – A strategy of replacing suppliers over a definite planning horizon based on a forecast of the business environment is significantly (2‐9 per cent) more efficient than a strategy of relying on a single leading supplier throughout the planning horizon. This efficiency gain is greater the more the business environment is dynamic. Practical implications – The proposed methodology is applicable to a broad range of service and manufacturing organizations that operate in dynamic business environments and rely on complex purchasing systems. Thanks to its simplicity, it can be applied to very large systems with a broad range of selection and/or environmental parameters. Originality/value – Although the supplier selection process has been extensively studied, the literature still lacks appropriate reference to the effects of a dynamic business environment on this process.

Dieter Kerkfeld; Evi Hartmann

2012 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600031211246528

Purpose – The purpose of this paper is to empirically evaluate the effect of resources and capabilities in purchasing and supply management (PSM) on operational performance. Specifically, to examine whether managers who neglect investments into key knowledge‐driven PSM resources will be foregoing the opportunity for a higher performance return from their core supplier‐related capabilities. Design/methodology/approach – Based on an international cross‐industry survey of 273 major companies, two conceptual models grounded in the resource‐based view (RBV) theory are analyzed for moderation and mediation effects, and provide both researchers and practitioners with means of determining targets for investment prioritization. The models are tested using multiple regression techniques and structural equation modeling. Findings – The authors' findings suggest that the impact of supply base practices on operational performance is stronger in firms where more advanced PSM resources are deployed; and that these improvements can be explained by a higher leverage of supply base practices on advanced PSM resources. Research limitations/implications – The paper documents the combined positive effect of knowledge‐driven resources and supplier‐related capabilities on operational performance. Additional resources and capabilities, e.g. PSM integration, deserve further research. A longitudinal survey of relationships would help us to gain a better understanding of sequential relationships between the examined constructs. Practical implications – This paper will help to guide senior management in balancing investment decisions for PSM development. The applied measurement model can be used to identify specific potential of improvement in individual organizations that can lead to increased operational performance. Originality/value – The simultaneous consideration of moderation and mediation based on the RBV's conceptualization of resources versus capabilities provided a contribution in PSM. The results support management in maximizing the return of investments into PSM.

Mengying Feng; John Mangan; Chandra Lalwani

2012 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/09600031211246537

Purpose – The purpose of this paper is to report a comparative investigation of port performance between Western Europe and Eastern Asia and develop a strategy to improve their port performance accordingly. Design/methodology/approach – A comprehensive literature review is conducted in order to identify factors for port performance evaluation. A large‐scale questionnaire survey is employed in two port regions for comparative analysis. Findings – Descriptive techniques and t ‐tests indicate that port performances in the case port regions are different from each other in some factors and that they share some common features in certain other factors. The findings reveal that the most critical differences between the case ports are government support, proximity, speed of cargo handling, safety and port technical infrastructure in descending order. The Western European ports need to improve on government support, reduce port charges, diversify port ownership and improve port connectivity, while the Eastern Asian ports need to improve customs services, expand hinterlands, enhance logistics demand, encourage intermodalism and set up “dry ports”. Research limitations/implications – This study was restricted to two port regions in China and the UK and data used in this research were mainly generated from questionnaire surveys, responses to which are, to some extent, subjective. Practical implications – Ports must provide services that meet and exceed customers' expectations to be competitive. This research yields practical insights for port managers to improve port performance as quantifying factors allows them to prioritize and compare the factor performance. The results of the empirical study can also assist port stakeholders to formulate their operational strategy for port performance improvement. Originality/value – The paper contributes to knowledge by addressing a gap in empirical research concerning performance comparison between Western European and Eastern Asian ports.