Evaluating logistics network configurations for a global supply chain

Abstract

Purpose

This paper aims to identify and assess different configurations to design logistics networks in global sourcing contexts. A framework to support the choice of the most suitable logistics network is developed.

Design/methodology/approach

Starting from an overview of previous research on global sourcing and global logistics network design, followed by a series of interviews with international freight forwarders and logistics providers, five main logistics network configurations are identified and the paper proposes a framework to evaluate their cost‐effectiveness, deriving the overall logistics cost by means of simulation.

Findings

On the basis of the analysis of different scenarios the paper develops a taxonomy for selecting the most suitable logistics network configuration, with respect to some key logistics factors and purchasing strategies.

Research limitations/implications

The analysis has been focused on ocean container shipping, the primary transportation mode for world trade.

Practical implications

In a context characterised by the widespread adoption of direct shipment with full container load (FCL) ocean shipping (with implications on inventory levels), the provided taxonomy can represent a useful tool to support companies in choosing the most suitable combination of configurations for setting their global logistics network.

Originality/value

The impact of globalisation on logistics network configuration has received little attention from supply chain researchers to date. The originality of the present paper is twofold. First, a framework to assess the overall logistics costs is developed. Second, the paper presents an original taxonomy for the selection of the most suitable logistics network.

Citation

Creazza, A., Dallari, F. and Melacini, M. (2010), "Evaluating logistics network configurations for a global supply chain", Supply Chain Management, Vol. 15 No. 2, pp. 154-164. https://doi.org/10.1108/13598541011028750