International Journal of Physical Distribution & Logistics Management

Jonsson, Patrik; Mattsson, Stig-Arne

2013 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/ijpdlm-07-2012-0204

– The development of information technology has made it possible for companies to get access to information about their customers'future demand. This paper outlines various approaches to utilize this kind of visibility when managing inventories of end products on an operative level. The purpose is to explain the consequences, for capital tied up in inventory, of sharing four different types of planning information (point-of-sales data, customer forecasts, stock-on-hand data, planned orders) when using re-order point (R,Q) inventory control methods in a distribution network. Design/methodology/approach– A simulation study based on randomly generated demand data with a compound Poisson type of distribution is conducted. Findings– The results show that the value of information sharing in operative inventory control varies widely depending on the type of information shared, and depending on whether the demand is stationary or not. Significantly higher value is achieved if the most appropriate types of information sharing are used, while other types of information sharing rather contribute to decreased value. Sharing stock-on-hand information is valuable with stationary demand. Customer forecast and planned order information are valuable with non-stationary demand. The value of information sharing increases when having fewer customers, and when the order quantities are large. Sharing point-of-sales data is not valuable, regardless of the demand type. Research limitations/implications– The use of simulation methodology is a limitation, because the study has to be limited to a specific model design, and because it is not based on primary empirical data. The study is especially limited to dyadic relationships in supply chains, and to distribution networks with a rather limited number of customers. Practical implications– Guidance is given about what type of information should be appropriate to share when different types of demand patterns and distribution networks, and how order batch sizes and lead times affect the value of information sharing when using re-order point (R,Q) methods. Originality/value– Very limited research providing specific assessments of potential inventory control consequences when sharing planning information in various contexts has been found in the literature. The findings and conclusions also question some previous research on information sharing.

Jonsson, Patrik ; Mattsson, Stig-Arne

2013 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/IJPDLM-07-2012-0204

Purpose – The development of information technology has made it possible for companies to get access to information about their customers ' future demand. This paper outlines various approaches to utilize this kind of visibility when managing inventories of end products on an operative level. The purpose is to explain the consequences, for capital tied up in inventory, of sharing four different types of planning information (point-of-sales data, customer forecasts, stock-on-hand data, planned orders) when using re-order point (R,Q) inventory control methods in a distribution network. Design/methodology/approach – A simulation study based on randomly generated demand data with a compound Poisson type of distribution is conducted. Findings – The results show that the value of information sharing in operative inventory control varies widely depending on the type of information shared, and depending on whether the demand is stationary or not. Significantly higher value is achieved if the most appropriate types of information sharing are used, while other types of information sharing rather contribute to decreased value. Sharing stock-on-hand information is valuable with stationary demand. Customer forecast and planned order information are valuable with non-stationary demand. The value of information sharing increases when having fewer customers, and when the order quantities are large. Sharing point-of-sales data is not valuable, regardless of the demand type. Research limitations/implications – The use of simulation methodology is a limitation, because the study has to be limited to a specific model design, and because it is not based on primary empirical data. The study is especially limited to dyadic relationships in supply chains, and to distribution networks with a rather limited number of customers. Practical implications – Guidance is given about what type of information should be appropriate to share when different types of demand patterns and distribution networks, and how order batch sizes and lead times affect the value of information sharing when using re-order point (R,Q) methods. Originality/value – Very limited research providing specific assessments of potential inventory control consequences when sharing planning information in various contexts has been found in the literature. The findings and conclusions also question some previous research on information sharing.

Wieland, Andreas ; Marcus Wallenburg, Carl

2013 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/IJPDLM-08-2012-0243

Purpose – The purpose of this research is to explore the resilience domain, which is important in the field of supply chain management; it investigates the effects relational competencies have for resilience and the effect resilience, in turn, has on a supply chain ' s customer value. Design/methodology/approach – The research is empirical in nature and employs a confirmatory approach that builds on the relational view as a primary theoretical foundation. It utilizes survey data collected from manufacturing firms from three countries, which is analyzed using structural equation modeling. Findings – It is found that communicative and cooperative relationships have a positive effect on resilience, while integration does not have a significant effect. It is also found that improved resilience, obtained by investing in agility and robustness, enhances a supply chain ' s customer value. Practical implications – Some findings contrast the expectations derived from theory. Particularly, practitioners can learn that integration has a limited role in enhancing resilience. Originality/value – The study distinguishes between a proactive and reactive dimension of resilience: robustness and agility. The relational view serves as the theoretical basis to explain the effects between three types of relational competencies (communication, cooperation, and integration) and the above-mentioned two dimensions of resilience.

Wieland, Andreas; Wallenburg, Carl Marcus

2013 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/ijpdlm-08-2012-0243

– The purpose of this research is to explore the resilience domain, which is important in the field of supply chain management; it investigates the effects relational competencies have for resilience and the effect resilience, in turn, has on a supply chain's customer value. Design/methodology/approach– The research is empirical in nature and employs a confirmatory approach that builds on the relational view as a primary theoretical foundation. It utilizes survey data collected from manufacturing firms from three countries, which is analyzed using structural equation modeling. Findings– It is found that communicative and cooperative relationships have a positive effect on resilience, while integration does not have a significant effect. It is also found that improved resilience, obtained by investing in agility and robustness, enhances a supply chain's customer value. Practical implications– Some findings contrast the expectations derived from theory. Particularly, practitioners can learn that integration has a limited role in enhancing resilience. Originality/value– The study distinguishes between a proactive and reactive dimension of resilience: robustness and agility. The relational view serves as the theoretical basis to explain the effects between three types of relational competencies (communication, cooperation, and integration) and the above-mentioned two dimensions of resilience.

Hofmann, Erik ; Lampe, Kerstin

2013 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/IJPDLM-08-2012-0229

Purpose – Despite the relevance of financial information relating to logistics service providers (LSPs), recent research has paid little attention to the financial analysis of LSPs. The aim of this paper is to examine the balance sheet structure of LSPs in order to find out if there are differences between single providers or defined LSP groups (clusters), respectively. Furthermore, the dependency of asset, capital and liquidity structures on LSPs specific characteristics is pointed out. Finally, we show which financial indicators positively influence profitability. Design/methodology/approach – A total of 150 quoted LSPs from all over the world, allocated to six different clusters depending on scope of service were examined. A detailed balance sheet analysis using contingency theory, complemented by a correlation analysis, provides information about the financial structure, similarities and differences within and in-between the LSP clusters. Findings – It was found that there are many differences regarding the financial structures of LSPs. The asset and liquidity structure of LSPs show significant differences, while the capital structure is mostly homogeneous. Profitability is achieved in various ways: Focusing on high net profit margin or asset turnover rates. Research limitations/implications – Only quoted LSPs are analyzed. With this broad research approach the authors point out the range of possibilities for financial statement analysis of LSPs and demonstrate the potential for future research. Practical implications – Financial analysis yields information for making strategic decisions including organic growth, outsourcing, mergers and acquisitions or cooperation between LSPs. Originality/value – This paper contributes to further performance examinations of LSPs by providing a profound financial statement analysis with potential benefits for logistics executives, analysts and researchers.

Hofmann, Erik; Lampe, Kerstin

2013 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/ijpdlm-08-2012-0229

– Despite the relevance of financial information relating to logistics service providers (LSPs), recent research has paid little attention to the financial analysis of LSPs. The aim of this paper is to examine the balance sheet structure of LSPs in order to find out if there are differences between single providers or defined LSP groups (clusters), respectively. Furthermore, the dependency of asset, capital and liquidity structures on LSPs specific characteristics is pointed out. Finally, we show which financial indicators positively influence profitability. Design/methodology/approach– A total of 150 quoted LSPs from all over the world, allocated to six different clusters depending on scope of service were examined. A detailed balance sheet analysis using contingency theory, complemented by a correlation analysis, provides information about the financial structure, similarities and differences within and in-between the LSP clusters. Findings– It was found that there are many differences regarding the financial structures of LSPs. The asset and liquidity structure of LSPs show significant differences, while the capital structure is mostly homogeneous. Profitability is achieved in various ways: Focusing on high net profit margin or asset turnover rates. Research limitations/implications– Only quoted LSPs are analyzed. With this broad research approach the authors point out the range of possibilities for financial statement analysis of LSPs and demonstrate the potential for future research. Practical implications– Financial analysis yields information for making strategic decisions including organic growth, outsourcing, mergers and acquisitions or cooperation between LSPs. Originality/value– This paper contributes to further performance examinations of LSPs by providing a profound financial statement analysis with potential benefits for logistics executives, analysts and researchers.