International Journal of Physical Distribution & Logistics Management

Kaufmann, Lutz ; Gaeckler, Julia

2015 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/IJPDLM-05-2013-0150

Purpose – First, this study expands knowledge on the strategic decision process dimension decision-making speed by analyzing decision-making speed and two possible antecedents in a purchasing context. Second, it takes an additional step toward clarifying the relationship between strategic and lateral integration. Specifically, the purpose of this paper is to analyze the potential mediating effect of lateral purchasing integration on the relationship between strategic purchasing integration and purchasing decision-making speed. Design/methodology/approach – This research analyzes survey data of 152 firms from Austria, Germany, and Switzerland using covariance-based structural equation modeling. Findings – The results of the structural equation model provide strong support for the hypothesized relationships. Strategic purchasing integration drives lateral purchasing integration, which in turn positively influences purchasing decision-making speed. Research limitations/implications – This study focusses solely on internal types of integration. A logical next step would be to further enrich the model by including external dimensions, such as supplier or customer integration. Practical implications – This study should help managers gain a better understanding of the relationship between strategic and lateral purchasing integration, highlighting their positive impact on decision-making speed. Decision-making speed is particularly important for companies operating in volatile markets and time-constrained business environments. Originality/value – This study offers new insights into the theoretical and empirical connection between intra-organizational purchasing integration, unpacked as strategic purchasing integration and lateral purchasing integration, and purchasing decision-making speed. Furthermore, it offers insights into decision-making speed in a purchasing context.

Alftan, Annika ; Kaipia, Riikka ; Loikkanen, Lauri ; Spens, Karen

2015 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/IJPDLM-02-2014-0017

Purpose – The purpose of this paper is to present an operations model for retail replenishment collaboration and identifies its expected benefits and limitations for the members of a grocery supply chain. Design/methodology/approach – A case study is conducted on a development project between a grocery wholesaler and two grocery product suppliers. Data are collected through semi-structured interviews with key respondents from four different companies. Findings – Despite advances in collaborative practices in grocery supply chains, retail store replenishment management faces challenges. In particular, demand exceptions management is a challenge in the grocery industry. A replenishment model called Collaborative Buyer-Managed Forecasting (CBMF) creates a proactive planning approach and a platform for close collaboration in the supply chain. The centralised forecasting transforms retailer sales data into a plan which serves the whole supply chain by creating one-order forecast. The CBMF model facilitates efficient demand management, improves demand responsiveness and promotes better availability of products in retail stores. Research limitations/implications – CBMF provides a replenishment planning model for the whole supply chain. It is tested to a limited extent in one supply chain. Practical implications – The study provides managers with a better understanding of the benefits of centralised forecasting and closer replenishment collaboration, especially during periods of exceptional demand. Originality/value – A new approach for managing demand in grocery supply chains with centralised forecasting is provided.

Liimatainen, Heikki ; Hovi, Inger Beate ; Arvidsson, Niklas ; Nykänen, Lasse

2015 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/IJPDLM-10-2013-0255

Purpose – Road freight carbon dioxide (CO 2 ) emissions are determined by a complex interaction between shippers and hauliers within the boundaries set by regulations and economic factors. It is necessary to gain understanding about the various driving forces and trends affecting these to promote low carbon future. The purpose of this paper is to find out what factors affect the long-term future development of road freight CO 2 emissions and whether the long-term emission targets will be achieved. Design/methodology/approach – An international comparison of similar Delphi surveys is carried out in Finland, Norway, and Sweden. Findings – The Delphi surveys indicate that the structural change of the economy, changes of consumer habits, concerns of energy and environment and changes in logistics practices and technology are the overarching trends shaping the future of the energy efficiency and CO 2 emissions of road freight transport. The expert forecasts for Finland and Sweden highlight that reaching the carbon emission target of 30 per cent reduction for the year 2030 is possible. However, the CO 2 emissions may also increase significantly even though the CO 2 intensity would decrease, as the Norwegian forecast shows. Originality/value – This study combined quantitative and qualitative analysis. The results confirmed that similar factors are seen to affect the future in all three countries, but with some national differences in the likely effects of the factors. Future research using the same methodology would enable wider analysis of the global significance of these driving forces.

Dello Iacono, Umberto ; Reindorp, Matthew ; Dellaert, Nico

2015 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/IJPDLM-10-2013-0258

Purpose – The purpose of this paper is to show that market dynamics can significantly influence the lifecycle and value of a supply chain finance (SCF) arrangement. Design/methodology/approach – Based on a review of scientific and trade literature, the authors construct a model of market dynamics for reverse factoring, a specific type of SCF arrangement. The authors assume that firms’ participation in a reverse factoring arrangement is determined by the direct benefits they can derive from it. The authors analyse the model by means of simulation in system dynamics. Findings – The authors identify the following market factors as key for direct benefits: competition, interest rates, receivables volumes, and firms’ working capital goals. The authors find that reverse factoring can yield direct benefits for all supply chain participants, but that these benefits are highly sensitive to market conditions. Research limitations/implications – The model is stylized, but this study shows the need for further research on the dynamic aspects of SCF arrangements. Practical implications – The authors show that supply chain actors should carefully consider the expected evolution of market factors when deciding on participation in a reverse factoring arrangement. Originality/value – Existing research on SCF arrangements almost exclusively considers a static context, where market factors take fixed, known values. The authors provide the first study that links the direct benefits of SCF arrangements to dynamic, interacting market factors. The authors utilize system dynamics, a methodology well-suited to the analysis of such settings, to show that a comprehensive assessment of SCF arrangements cannot neglect the evolutionary perspective.