Making supply chain traceability strategic: insights from the food industryHoang, Trang T.; Bell, John E.; Goldsby, Thomas J.
2023 International Journal of Physical Distribution & Logistics Management
doi: 10.1108/ijpdlm-03-2022-0064
This paper aims to present an emergent framework that proposes the strategic importance of supply chain (SC) traceability beyond the traditional role in supporting product safety, recalls and sustainability initiatives.Design/methodology/approachA grounded theory (GT) approach with 22 in-depth interviews with managers from 10 countries/territories and 3 different echelons of the food SC is employed to arrive at the strategic traceability framework and framework's propositions.FindingsThe framework suggests that traceability can sometimes help expose and modify firms' core and non-core SC capabilities and provide an opportunity to align them better with SC strategies. This alignment may require a complementary execution of human coordination and the adoption of technological traceability components.Practical implicationsThe research suggests that firms may be able to extract greater value from the firms' traceability investments. While traceability continues to serve the key purposes of preventing and mitigating the risks of recalls, this can sometimes illuminate sustained business growth opportunities.Originality/valueThe study extends traceability beyond a means to meet the requirements of product safety, recalls and sustainability. Rather, this study establishes traceability's role in exposing and aligning firms' capabilities for business gain and not merely recall risk mitigation. This reframing of the premise for traceability can invigorate both research and practice on the subject of traceability.
The role of scarcity-inducing post-stockout disclosures on consumer response to stockoutsKumar, Pritosh; Hofer, Adriana Rossiter; Peinkofer, Simone
2023 International Journal of Physical Distribution & Logistics Management
doi: 10.1108/ijpdlm-02-2023-0070
Applying a middle-range theorizing to premises of signaling theory and the scarcity principle, this study aims to investigate the mechanisms and effects of different patterns of post-stockout disclosures that highlight the limited supply and high quality of a durable good on consumer satisfaction with the shopping experience and purchase intention, mediated by consumer perceived product scarcity.Design/methodology/approachThe hypotheses are tested with two scenario-based experiments. The first experiment—a between-subjects design—explores the effect of post-stockout disclosures on consumers' perceived scarcity, satisfaction, and purchase intention. The second experiment – a within-subject design – examines the impact of time on consumer responses to stockouts.FindingsResults indicate that perceived product scarcity mediates the relationship between post-stockout disclosures and consumer outcomes. Specifically, post-stockout disclosures present an indirect positive effect on consumer purchase intention, despite reducing satisfaction beyond the effects of the stockout. These results are consistent when disclosures are sent through multiple channels. Results also show that consumers' perceived scarcity and purchase intention decrease over time while dissatisfaction levels remain the same when stockouts persist.Practical implicationsEven though consumers will be dissatisfied upon experiencing a stockout, specific patterns of post-stockout disclosures can be a valuable strategy for consumer retention and lost sales prevention.Originality/valueWhile recent consumer-centric supply chain management literature has investigated mitigation strategies of detrimental consumer response to stockouts, such as “save-the-sale” tactics and price discounts, the mechanisms and effects of different patterns of post-stockouts disclosures highlighting the limited supply and high quality of the product are yet to be investigated.
A typology of the collaboration willingness of carriers in hinterland logisticsReinecke, Pauline Charlotte; Wrona, Thomas; Rückert, Nicolas; Fischer, Kathrin
2023 International Journal of Physical Distribution & Logistics Management
doi: 10.1108/ijpdlm-07-2022-0216
A large part of maritime container supply chain costs is generated by carriers in port hinterland logistics. Carriers which operate in the hinterland are under pressure to reduce costs and increase profitability, and they face challenges of fierce price competition. This study aims to explore how collaboration is perceived and implemented by carriers in truck container logistics in the port hinterland as a way to tackle these issues.Design/methodology/approachThis study adopts a qualitative multiple case study approach. Qualitative interviews with carriers in the port hinterland of Hamburg, Germany, were conducted and analyzed using grounded theory.FindingsThe study reveals two collaboration types in the hinterland, based on the different carriers' interpretation of market conditions as changeable or as given, driving their collaboration mindsets and strategic actions: The developer, who has a proactive collaboration mindset and practices strategic maneuvers toward changing poor market conditions through collaboration, and the adapter, who has a defensive collaboration mindset and perceives market conditions as given and constraining collaboration.Research limitations/implicationsThe qualitative results will help researchers better understand how collaboration practices depend on the carriers' subjective interpretations and perceptions of the market.Practical implicationsBased on the findings, managers of carriers gain an understanding of the different types of actors in their market and the relevance of acknowledging these types. Consequently, they can design appropriate strategic measures toward collaboration.Originality/valueThe findings for the first time provide exploratory insights of carriers' mindsets.
Extending and understanding: an application of machine learning to the World Bank's logistics performance indexShepherd, Ben; Sriklay, Tanaporn
2023 International Journal of Physical Distribution & Logistics Management
doi: 10.1108/ijpdlm-06-2022-0180
The authors extend the World Bank's Logistics Performance Index (LPI) for 30 additional countries and 13 additional years. The authors develop an inexpensive method for extending survey data when frequent, universal surveys are unavailable. The authors identify groups of country characteristics that influence LPI scores.Design/methodology/approachUsing data from the World Development Indicators—the broadest global dataset of country socioeconomic features—the authors test machine learning algorithms for their ability to predict the LPI. The authors examine importance scores to identify factors that influence LPI scores.FindingsThe best performing algorithm produces predictions on unseen data that account for nearly 90% of observed variation, and are accurate to within 6%. It performs twice as well as an OLS model with per capita income as the only predictor. Explanatory factors are business environment, economic structure, finance, environment, human development, and institutional quality.Practical implicationsMachine learning offers a simple, inexpensive way of extending the coverage of survey data. This dataset provides a richer picture of logistics performance around the world. The factors the authors identify as predicting higher LPI scores can help policymakers and practitioners target interventions.Originality/valueThis paper is one of the first applications of machine learning to extend coverage of an index based on an international survey. The authors use the new data to provide the most wide-ranging analysis of logistics performance across countries and over time. The output is an important resource for policymakers tracking performance, and researchers particularly in smaller and lower income countries. The authors also examine a wider range of explanatory factors for LPI scores than previous work.
What is the right purchasing strategy for your company? The fit between strategic intent, strategic purchasing and perceived environmental uncertaintyPatrucco, Andrea S.; Luzzini, Davide; Krause, Daniel; Moretto, Antonella Maria
2023 International Journal of Physical Distribution & Logistics Management
doi: 10.1108/ijpdlm-07-2021-0286
The authors empirically examine purchasing strategy typologies based on strategic intent (i.e. competitive priorities) and practices used to achieve these priorities. The authors further investigate the implementation conditions of such strategies based on perceived uncertainty and strategic purchasing.Design/methodology/approach The authors utilize case study data from 11 international service and manufacturing firms with global supply chains. Each company was profiled based on the level of perceived environmental uncertainty, the characteristics of strategic purchasing, the use of relevant purchasing practices and its ability to create value through purchasing.FindingsThe study findings show that four purchasing strategy types exist: Purchasing Rationalization, Supply Base Optimization, Purchasing as a Service and World-Class Supply Base Management. Lower levels of perceived environmental uncertainty favor the adoption of rationalization strategies (i.e. Purchasing Rationalization and Supply Base Optimization), while increased uncertainty leads companies to switch to relationship-focused strategies (i.e. Purchasing as a Service and World-Class Supply Base Management). Further, that specific components of strategic purchasing (i.e. strategic planning, maturity, status and report level) enable the successful implementation of different strategy types.Originality/valueThis research contributes to the existing literature by outlining the different types of purchasing strategies and the external and internal factors that need to be considered to achieve strategic alignment and value creation in purchasing, and by classifying purchasing strategy types at the functional level based on empirical evidence.
Green supplier governance and firm performance: a comprehensive understanding of three governance approachesLiu, Junjun; Chen, Yuan; Zhu, Qinghua
2023 International Journal of Physical Distribution & Logistics Management
doi: 10.1108/ijpdlm-07-2022-0232
This study aims to develop a comprehensive green supplier governance (GSG) concept and explore whether specific GSG approaches (green supplier assessment, green supplier assistance and green strategic partnership with suppliers (GSPS)) bring environmental and economic performance. Moreover, this study aims to reveal a synergistic effect of three GSG approaches on performance improvement.Design/methodology/approachUsing data collected from 200 Chinese manufacturing firms, regression analysis was employed to reveal the relationship between specific GSG approaches and firm performance. Further, cluster analysis was used to identify groupings of firms regarding implementation levels of three GSG approaches and compare the performance of the firm groups.FindingsGreen supplier assessment (GSA) can bring environmental performance, but GSA is not associated with economic performance. Green supplier assistance is positively associated with economic performance, while green supplier assistance cannot improve environmental performance. Only GSPS leads to improvement for both environmental and economic performance. Furthermore, firms with high implementation levels of GSA and GSPS (whether with high or low implementation levels of GSAS) can achieve the best environmental and financial performance.Practical implicationsThis study provides implications for firms to more strategically and comprehensively implement GSG approaches, which can be more effective in bringing environmental and economic performance.Originality/valueThe authors' study extends the GSG concept with two approaches by subdividing the collaborative approach into green supplier assistance and GSPS based on the collaboration levels. This study also sheds light on how to improve firm performance by different GSG approaches and reveals a synergistic effect of three GSG approaches on performance.