International Journal of Physical Distribution & Logistics Management

Zailani, Suhaiza Hanim ; Seva Subaramaniam, Karthigesu ; Iranmanesh, Mohammad ; Shaharudin, Mohd Rizaimy

2015 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/IJPDLM-12-2013-0286

Purpose – The security issue in supply chains is among the most pressing concerns that firms are currently facing. As a preliminary attempt to address this lack of empirical research, the primary purpose of this paper is to explore the relationship between security practices and the security operational performance with respect to security culture as a moderator. Design/methodology/approach – With the resource-based view of the firm as the theoretical underpinning, the study utilizes survey data to test the propositions derived from the security literature and partial least squares for the analysis. Findings – The research reveals four crucial practices of supply chain security that collectively affect a firm’s security operational performance among Malaysian service providers. It is also interesting to observe that security culture positively moderates the relationship between facility management and the security operational performance of the firm. Research limitations/implications – Firms in emerging countries need to realize that supply chain security practices can result in significant benefits to their firms that can give them additional incentives to adopt these initiatives. This study may also help policymakers in emerging countries, in general, in setting appropriate policies and strategies, and Malaysia, in particular, for ensuring that it is a secure location for exporting cargo and giving assurance to the local and international investors to continue their investment. Practical implications – This study will assist supply chain managers and logisticians to re-examine their existing supply chain security model by considering the selected supply chain security practices, which have a significant impact on supply chain security operational performance. Individual firms need to strategize their business model with the inclusion of security aspects, which will surely create a competitive advantage over other players in the logistics industry. Firms can develop the best appropriate supply chain security model that will benefit the firm, customers, and business partners, such as suppliers and local authorities. Originality/value – The study highlights is the important role of the supply chain security practices to deliver high quality of service in terms of supply chain security operational performance in emerging countries. In addition, it offers an empirical analysis of the moderating role of security culture on the relationship between supply chain security practices and security operational performance.

Lam, Jasmine Siu Lee ; Dai, Jing

2015 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/IJPDLM-12-2013-0293

Purpose – Supply chain security has been recognized as an important part of managing business risks. The purpose of this paper is to propose a methodology with systematic metrics for logistics service providers (LSPs) to develop their security design to meet customer demands. Design/methodology/approach – The study is based on a three-stage process of desk research, content validation test, and in-depth case study. The study demonstrates an integrated analytical approach which combines analytical network process (ANP) with quality function deployment (QFD), and then applies the approach to an international LSP. Findings – A case study of an international LSP shows how the ANP-QFD approach can be deployed to understand customers’ expectation for security and develop tactics and measures with the aim to achieve the desirable outcome for LSPs’ security design. Originality/value – The paper contributes to supply chain security literature and practice. This study is among the research taking the first step to use ANP-QFD to translate the customer requirements (CRs) for supply chain security into systematic metrics for LSPs to develop their security design. Results from such research into the development of security performance can benefit LSPs in terms of increasing the effectiveness and improving the customer orientation of security efforts. By extension, other firms can enhance their security design by referring to the case study and the integrated analytical method. The flexibility of this ANP-QFD approach offers leeway for firms to change the CRs and design requirements based on their unique circumstances.

Chang, Hsin-Li ; Wu, Jinn-Guang

2015 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/IJPDLM-12-2013-0296

Purpose – The purpose of this paper is to develop a method to measure the difficulties of items required to achieve Authorized Economic Operator (AEO) validation and investigated companies’ abilities to obtain AEO certification based on an empirical analysis of 201 supply chain-related companies in Taiwan. Design/methodology/approach – The Rasch model was applied to convert the ordinal raw data collected from questionnaire surveys into values on an interval scale to measure companies’ abilities and item difficulties for AEO validation. The model was estimated using WINSTEP, which is an iterative computer program. Findings – The study results show that self-risk assessment and the formulation of security policies are the most difficult items to accomplish for AEO validation, whereas establishing security facilities is the easiest task to accomplish. Additionally, a company’s ability to obtain AEO validation was found to be positively correlated with a company’s turnover volume and its number of staff. Research limitations/implications – This research focusses on supply chain-related companies in Taiwan. Thus, the findings may not be transferable directly to other companies, circumstances, or countries. Practical implications – Using the Rasch analysis, both company’s abilities and item difficulties could be measured numerically and compared meaningfully. The study results could be used as references for the government to create polices to guide companies to meet the requirements of AEO validation in the future. Social implications – According to the study results, only 43.28 percent of the respondent companies have sufficient confidence to completely comply with all 26 security items for AEO validation; this implies that AEO validation criteria should be adjusted or some programs should be provided by the government to improve companies’ abilities for AEO validation, if the government genuinely wants to effectively encourage companies to obtain AEO certification. Originality/value – This study introduced a method to estimate items’ difficulties and companies’ abilities for AEO validation with values on a consistent interval scale. Thus, a comparison between companies’ abilities and items’ difficulties could be graphically illustrated. The results of this study provide a useful tool to investigate whether the AEO validation criteria are appropriate for the potential companies that can apply for AEO validation.