International Journal of Physical Distribution & Logistics Management

Hellström, Daniel; Kembro, Joakim Hans; Norrman, Andreas; Pålsson, Henrik

2018 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/IJPDLM-06-2018-362

Solakivi, Tomi; Ojala, Lauri; Lorentz, Harri; Töyli, Juuso; Laari, Sini

2018 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/ijpdlm-01-2018-0032

The size of the logistics market is typically estimated from the national accounting and market data. However, this data does not take certain in-house logistics services into account and most likely underestimates the true size of the market. The purpose of this paper is to develop a method for estimating the potential size of the logistics market in terms of overall logistics expenditure and to also account for in-house services.Design/methodology/approachThe research approach involves combining longitudinal industry- and firm-level turnover data, incorporating survey data from Finland on logistics outsourcing and costs, and calculating yearly logistics expenditure and the market demand for logistics services. Descriptive statistics, weighted arithmetic means and analyses of variance are employed in the estimations.FindingsThe research suggests and demonstrates a rigorous method for estimating the size of the logistics market, including both market-based demand and in-house services.Research limitations/implicationsThe empirical data used to illustrate the result are limited to a single country. The methodology should be further validated with data from other countries. The quality of the survey data could be improved by targeting multiple informants from a single firm.Social implicationsOne outcome of the research is that policymakers will be better able to estimate the size of the logistics market on a national level. For service providers, the results provide additional information on the market potential of logistics services.Originality/valueThe novelty of the research lies in combining multiple data sources and expanding the estimation of the logistics market to include services provided in-house.

Stentoft, Jan; Rajkumar, Christopher

2018 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/ijpdlm-01-2018-0020

The discussion of rigor vs relevance is an ongoing debate in academic environment. Ambitions to fulfill one of these two objectives might not exclude the other. Instead, they could and should be achieved simultaneously. However, what seems to be missing in supply chain management (SCM) research is the unfolding of symmetrical balance between the two dimensions of relevance – theoretical vs practical relevance. The purpose of this paper is to advance the understanding of this symmetrical balance and to change the conversation to also include the practical relevance dimension.Design/methodology/approachThe paper is based on literature studies as well as the results of a questionnaire survey distributed to the Danish Supply Chain Panel consisting of 113 supply chain executives (as per the beginning of 2017). A short interview about the questionnaire results was also carried out with three panel members.FindingsWith an increased focus on journal rankings, there is a risk of pursuing more theoretically relevant SCM research at the expense of practically relevant SCM research. Both types of relevance are important for growing the discipline. But the current development seems to favor theoretical relevance, further widening the gap with respect to practical applications. Practical relevance is important both in the knowledge production and in the knowledge transfer stages.Research limitations/implicationsThere is a need to further explore different resources to close the gap between theoretical and practical relevance in SCM research. Researchers ought to follow an ambidextrous research strategy. This paper advises to bring back the core of the profession – the research process. This paper encourages researchers to be more creative and intensify the focus, equally, on both the theoretical and practical relevance in their research.Practical implicationsThis research showcases a variety of different approaches for researchers to engage with practice so as to reduce any prejudices from both sides and enhance SCM decision-making processes. This paper recommends adding a new type of paper “practical paper” and including practitioners in the review board to evaluate the practical content of the research paper. This initiative would strengthen the interaction between researchers and practitioners.Originality/valueThis paper provides new insights on the need for symmetrical balance between theoretical and practical relevance being important for both academia and practice.

Andersson, Joakim; Jonsson, Patrik

2018 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/ijpdlm-01-2018-0025

The purpose of this paper is to explore and propose how product-in-use data can be used in, and improve the performance of, the demand planning process for automotive aftermarket services.Design/methodology/approachA literature review and a single case study investigate the underlying reasons for the demand for spare parts by conducting in-depth interviews, observing actual demand-generating activities, and studying the demand planning process.FindingsThis study identifies the relevant product-in-use data and divides them into five main categories. The authors have analysed how product-in-use data are best utilised in planning spare parts with different attributes, e.g. different life cycle phases and demand frequencies. Furthermore, the authors identify eight potentially relevant areas of application of product-in-use data in the demand planning process, and elaborate on their performance effects.Research limitations/implicationsThis study details the understanding of what impact context has on the potential performance effects of using product-in-use data in aftermarket demand planning. Propositions generate several strands for future research.Practical implicationsThis study shows the potential impact of using product-in-use data, using eight different types of interventions for spare parts, in the aftermarket demand planning.Originality/valueThe literature focusses on single applications of product-in-use data, but would benefit from considering the context of application. This study presents interventions and explores how these enable improved demand planning by analysing usage and effects.

Asmussen, Jesper Normann; Kristensen, Jesper; Steger-Jensen, Kenn; Wæhrens, Brian Vejrum

2018 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/ijpdlm-02-2018-0058

Significant transitions in firms (e.g. outsourcing) may impact the relative importance of production and inventory assets, affecting the hierarchical separation of planning decisions. The purpose of this paper is to contribute to planning literature by investigating how the production system and the planning environment influence the performance difference between hierarchical and monolithic planning. Further, it seeks to reduce the prevailing theory-practice gap in tactical planning.Design/methodology/approachThrough an action research study, a monolithic model integrating tactical production planning decisions, subject to upstream supply chain constraints, with strategic investments decisions was developed, tested and implemented in a global OEM. Using the developed model and a measure of the capital cost of production assets relative to the cost of holding inventory, it is numerically examined how the production system and planning environment influence the performance of hierarchical and monolithic planning.FindingsThe research demonstrates the potential of integrating decisions and reveals significant performance differences between hierarchical and monolithic planning for firms with low capital cost relative to inventory holding cost.Research limitations/implicationsThe findings suggest a fit between planning processes, the production system and planning environment. Future research should empirically validate the findings and propositions.Originality/valueThe paper combine capital investments and production planning decisions, which usually transpire at different hierarchical levels and on different time-horizons, and investigates the consequences of hierarchical separation through a real-life validated case and numerical analysis.