International Journal of Physical Distribution & Logistics Management

de Goeij, Christiaan; Gelsomino, Luca Mattia; Caniato, Federico; Moretto, Antonella Maria; Steeman, Michiel

2021 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/ijpdlm-04-2020-0125

Reverse factoring (RF) is one of the most prevalent supply chain finance (SCF) solutions. This study challenges the view that suppliers accept financially attractive reverse factoring offers (RFOs) and reject financially unattractive ones. Specifically, it focuses on small and medium enterprise (SME) suppliers and how transaction cost economics (TCE) factors affect their decision.Design/methodology/approachThe authors study eight cases of RFOs, interviewing suppliers, buyers and financial service providers (FSPs) and using several sources of private and publicly available secondary data.FindingsIn five out of eight RFOs, suppliers either accepted unattractive offers or rejected attractive ones. Bounded rationality and opportunism seem to explain such misalignment, while asset specificity and frequency play a minor role in decisions.Research limitations/implicationsThe study shows the need for further investigation linking analytical assessment of SCF benefits with qualitative factors.Practical implicationsSME suppliers cannot assume an RFO will benefit them. They must critically evaluate their buyers' offers, ideally with self-awareness towards how the abovementioned factors might affect their decisions. For buyers and banks, this study gives clear insights on how to approach SME suppliers to avoid rejection of financially attractive RFOs.Originality/valueThis contribution analyses financial attractiveness of RFOs in conjunction with qualitative factors, including rejected RFOs and without assuming that RFOs are financially attractive for suppliers. This is original and relevant for both research and practice, since it extends the understanding of the supplier response to RFOs, thanks to the consideration of TCE factors.

Tsvetkova, Antonina

2021 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/ijpdlm-09-2019-0277

This study explores how human actions affect existing supply chain management (SCM) practice.Design/methodology/approachUsing a narrative approach, this qualitative in-depth case study looks at micro-human activities in SCM practices in the Russian Arctic. Data from personal observations, 13 semi-structured interviews and archival materials are interpreted through the concepts of institutional work and institutional logics.FindingsThe study reveals how human actions and institutions affect each other and change existing SCM practice constrained by institutional order and logics. The findings identify two forms of institutional work, initiated by the presence of conflicts of interest between practitioners engaged in different organisational routines, that become an essential driver for logic change. Social action, often invisible in practice, is indicated by finding compromises and informal arrangements that shape interactive activity among practitioners. The findings show that changes enacted by human actions in SCM practice have envisioned new forms of collaboration among supply chain members, thereby making supply chains in the Russian Arctic more integrated than before.Research limitations/implicationsThis study involves a limited number of supply chain practitioners, making it imperative to study larger samples, specifically from various empirical contexts.Originality/valueThis study suggests an alternative approach focusing on SCM practice as consistent patterns of human actions, to reflect on supply chain integration problems. It provides an understanding of how practitioners are influenced by and active in producing institutional change. An issue of practitioners' responsibility and morality regarding the consequences of their decisions when exerting change in existing SCM practice is further emphasised.

Brandao, Maicom Sergio; Godinho Filho, Moacir; da Silva, Andrea Lago

2021 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/ijpdlm-04-2020-0110

This study aims to identify the main elements that describe the luxury supply chain. It discusses the relationship between them in a framework that organises and summarises the literature.Design/methodology/approachA systematic literature review was conducted that returned 288 papers, which were selected based on specific quality and theme criteria. Content analysis was used to investigate the alignment of critical success factors with the performance goals and configuration elements of luxury supply chains in the final sample of 66 papers.FindingsThe results provide a framework that clarifies the relationship between the configuration elements and supply chain performance goals and the critical success factors for three different levels of the luxury market. Depending on the level of luxury, performance goals and configuration elements assume a different importance and different characteristics. An understanding of these differences is relevant for defining strategies and managing luxury supply chains properly. The three different configurations also reveal new research avenues to be further investigated.Research limitations/implicationsThe study is limited in terms of its data source as the papers reviewed were collected from only three academic databases.Practical implicationsThe findings of this work help incorporate knowledge about luxury supply chain management into a framework that can be easily used for defining strategies and organising the supply chain according to the different levels of luxury.Originality/valueThis study represents an important evolution in organising the current literature on luxury supply chain management into a framework that covers critical success factors, supply chain performance goals and configuration elements for three different levels of luxury, which in turn creates promising opportunities for future enquiry.

Gustafsson, Emmelie; Jonsson, Patrik; Holmström, Jan

2021 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/ijpdlm-10-2020-0334

This paper investigate how fit uncertainty impacts product return costs in online retailing and how digital product fitting, a pre-sales fitting practice, can reduce fit uncertainty.Design/methodology/approachThe paper analyzes the current performance of a retailer's e-commerce and return operations by estimating costs generated by product returns, including product handling costs, tied-up capital, inventory holding costs, transportation costs, and order-picking costs. The estimated costs were built on 2,229 return transactions from a Scandinavian fashion footwear retailer. A digital product fitting technology was tested with the retailer’s products and resulted in estimations on how such technology could affect product returns.FindingsThe cost of a return is approximately 17% of the prime cost. The major cost elements are product handling costs and transportation costs, which together amount to 72% of the total costs. If well calibrated, the fitting technology can cut fit-related return costs by up to 80%. The findings show how customers reacted to the fitting technology: it was unable to verify fit every time, but it serves as a useful and effective support tool for customers when placing orders.Research limitations/implicationsVirtual fit verification using digital product fitting is key to retailers to reduce fit-related returns. Digital product fitting using three-dimensional scanning is more appropriate for some products, but it is unsuitable for products that are difficult to measure and scan.Originality/valueThe paper contributes an empirical estimate of retail supply chain costs associated with fit uncertainty, as well as theoretical understanding of the role of pre-sales fit verification in avoiding product returns.

Dev, Navin K.; Shankar, Ravi; Zacharia, Zach G.; Swami, Sanjeev

2021 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/ijpdlm-04-2020-0120

The purpose of this paper is to examine (1) how the recovery speed using promotional investment and (2) distributed production using additive manufacturing (AM) improve the resilience of the supply chain to manage any disruptions in the diffusion of green products.Design/methodology/approachThe environmental performance, service level performance and economic performance are the measures of interest. These measures are studied through the integration of inventory and production planning (I&PP) of the reverse logistics system and consumer behavior using Bass (1969) model of diffusion of innovation under the paradigm of Industry 4.0 architecture. The Taguchi experimental design framework was used for the simulation analysis.FindingsThe adoption patterns based on the Bass model in conjunction with recovery speed and production on AM during the disruption period suggest that there exist tradeoff decisions between various combinations of information-sharing and I&PP policies.Practical implicationsThe extensive sensitivity analyses provide real-time support for managerial decisions. Besides the potentials of Industry 4.0 capabilities, the present research suggests paying close attention to the recovery speed in conjunction with the inventory management system.Social implicationsThe integration of consumers' behavior (Bass model) to digital technologies is an additional contribution of the present research toward sustainability issues from the social perspective.Originality/valuePrevious research studies have discussed resilience to manage the ripple effect. However, none of them have addressed the changing scope of resilience to manage the ripple effect caused by the disruption in the diffusion of green products in a reverse logistics setup.