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Abstract

Details

International Journal of Physical Distribution & Logistics Management, vol. 47 no. 7
Type: Research Article
ISSN: 0960-0035

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Article

Harri Lorentz, Anna Aminoff, Riikka Kaipia and Jagjit Singh Srai

The study develops a structure for procurement digitalisation by identifying its context drivers, technology interventions and performance-inducing mechanisms and…

Abstract

Purpose

The study develops a structure for procurement digitalisation by identifying its context drivers, technology interventions and performance-inducing mechanisms and exploring the linkages between these variables.

Design/methodology/approach

The study draws on rich interview and workshop data on 48 digital intervention projects, as reflected by mental models of managers from 12 case organisations in manufacturing, retail and service sectors. Supported by an a priori structure, the study employs an abductive cross-case analysis approach.

Findings

Results suggest several categories within the elements of context, intervention and mechanism to structure procurement digitalisation and the linkages between them. Seven propositions that reflect digitalisation strategy options in procurement are developed regarding the linkages. Internal complexity dominantly drives procurement digitalisation, motivating communication support and process structuring interventions, which in turn aim at procurement coordination and control as well as process improvement. External coercive pressure and external dynamism also drive interventions for information processing and decision aiding, which appear to be linked with supply market knowledge, strategic alignment and supplier capability assessment. Therefore, an internal–external dichotomy is observed as the main thrust of procurement digitalisation.

Practical implications

The study supports decision makers in developing digitalisation strategy options for different procurement contexts. The results also raise awareness of a possible bias in existing strategies for procurement digitalisation.

Originality/value

A novel forward-looking approach is employed to enable the design and construction of systems that do not yet exist by focusing on the mental models of managers in a systematic way.

Details

International Journal of Operations & Production Management, vol. 41 no. 2
Type: Research Article
ISSN: 0144-3577

Keywords

Content available
Article

Jagjit Singh Srai, Gary Graham, Patrick Hennelly, Wendy Phillips, Dharm Kapletia and Harri Lorentz

The emergence of distributed manufacturing (DM) is examined as a new form of localised production, distinct from previous manifestations of multi-domestic and indigenous…

Abstract

Purpose

The emergence of distributed manufacturing (DM) is examined as a new form of localised production, distinct from previous manifestations of multi-domestic and indigenous production.

Design/methodology/approach

Supply network (SN) configuration and infrastructural provisioning perspectives were used to examine the literature on established localised production models as well as DM. A multiple case study was then undertaken to describe and explore the DM model further. A maximum variation sampling procedure was used to select five exemplar cases.

Findings

Three main contributions emerge from this study. First, the research uniquely brings together two bodies of literature, namely SN configuration and infrastructure provisioning to explore the DM context. Second, the research applies these theoretical lenses to establish the distinctive nature of DM across seven dimensions of analysis. Third, emerging DM design rules are identified and compared with the more established models of localised production, drawing on both literature and DM case evidence.

Practical implications

This study provides a rich SN configuration and infrastructural provisioning view on DM leading to a set of design rules for DM adoption, thus supporting practitioners in their efforts to develop viable DM implementation plans.

Originality/value

The authors contribute to the intra- and inter-organisational requirements for the emerging DM context by providing new perspectives through the combined lenses of SN configuration and infrastructural provisioning approaches.

Details

International Journal of Operations & Production Management, vol. 40 no. 6
Type: Research Article
ISSN: 0144-3577

Keywords

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Article

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

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…

Abstract

Purpose

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/approach

The 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.

Findings

The 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/implications

The 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 implications

One 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/value

The novelty of the research lies in combining multiple data sources and expanding the estimation of the logistics market to include services provided in-house.

Details

International Journal of Physical Distribution & Logistics Management, vol. 48 no. 5
Type: Research Article
ISSN: 0960-0035

Keywords

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Article

Harri Lorentz, Tomi Solakivi, Juuso Töyli and Lauri Ojala

The purpose of this paper is to provide evidence of how the business cycle affects net-trade-credit and its components in firms on different tiers of the value chain…

Abstract

Purpose

The purpose of this paper is to provide evidence of how the business cycle affects net-trade-credit and its components in firms on different tiers of the value chain, including retail, wholesale and two consecutive manufacturing tiers.

Design/methodology/approach

Data were collected by the means of four surveys in the years 2006, 2009, 2012 and 2014, representing different phases of the business cycle, that is, from strong economic growth to a deep recession and on to slow recovery and finally into decline. Descriptive statistics and three ANOVA models were used in the analysis of the data.

Findings

The distinctive profile of each value chain tier appears to have an effect on tier-specific trade credit dynamics. Overall, upstream positioned firms and small firms are likely to experience a decline in the net-trade-credit during uncertain economic times. The type of task interdependence between tiers also appears to affect trade credit dynamics in some tiers of the value chain. Furthermore, initiated by recession, certain trade credit dynamics in the value chain suggest a mechanism that transmits an increased working capital burden from customers to suppliers along the value chain.

Research limitations/implications

Results are based on survey research with a limited amount of respondents and geographical coverage, implying limited generalisability. The use of implicit measures limits the conclusiveness of the research.

Originality/value

The conventional perception of the power-based determination of trade credit policies is complemented with a value chain-related task interdependence perspective. The results of this paper also highlight that a more holistic value chain perceptive on working capital management would be more sustainable in comparison to firm-centric approaches.

Details

Supply Chain Management: An International Journal, vol. 21 no. 3
Type: Research Article
ISSN: 1359-8546

Keywords

Content available

Abstract

Details

International Journal of Physical Distribution & Logistics Management, vol. 43 no. 4
Type: Research Article
ISSN: 0960-0035

Abstract

Details

Benchmarking: An International Journal, vol. 19 no. 1
Type: Research Article
ISSN: 1463-5771

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Article

Harri Lorentz and Juhana Lounela

The purpose of this paper is to identify the relevant assessment criteria for retailer supply chain capability from the perspective of foreign food manufacturers, in an…

Abstract

Purpose

The purpose of this paper is to identify the relevant assessment criteria for retailer supply chain capability from the perspective of foreign food manufacturers, in an emerging market context, and to evaluate the development level of Russian retail chains in this sphere.

Design/methodology/approach

The authors use analytic hierarchy process (AHP) for the modelling and research method, with an exploratory workshop for the specification of the model structure, a web‐based questionnaire for priority weight development, and semi‐structured interviews for the validation of results. A food manufacturing‐based focus group participated in the modelling process.

Findings

A four‐level capability assessment model was created, with operational assessment criteria allocated into management, logistics or marketing categories. The results indicate that management‐related criteria have a dominant role in assessing the supply chain capability of a retail chain company. Furthermore, the priority weight of logistics capability is only somewhat higher in comparison to marketing capability, although it is ranked significantly lower in comparison to management capability. Operational level criteria weights are also provided. In terms of the evaluation of Russian retailers, the results indicate the slight dominance of logistics capability over marketing.

Research limitations/implications

The research is based on an AHP process with a focus group discussion, implying a limited level of generalisability to other contexts.

Practical implications

This research provides practical insight on how to assess retailer supply chain capability in general, and describes the level of development of various capabilities and functional areas among Russian food retailers.

Originality/value

Our research provides a framework that may be used in Russia and other emerging market settings to evaluate the capability of retail partners from the manufacturer perspective.

Details

International Journal of Retail & Distribution Management, vol. 39 no. 9
Type: Research Article
ISSN: 0959-0552

Keywords

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Article

Harri Lorentz, Juuso Töyli, Tomi Solakivi and Lauri Ojala

The purpose of this paper is to find out the current SCM skill development priorities in manufacturing firms and how the structural properties of the supply chain…

Abstract

Purpose

The purpose of this paper is to find out the current SCM skill development priorities in manufacturing firms and how the structural properties of the supply chain translate into demand for SCM skills in manufacturing firms.

Design/methodology/approach

An internet survey was designed and conducted. The responses of 154 manufacturing companies operating in Finland were analysed through descriptive statistics and regression analyses.

Findings

The supply chain management skills with an inter‐organisational focus tend to have a higher development priority than the skills with an intra‐organisational focus. The top five skills for development are: demand forecasting and supply planning; sourcing and supplier management; customer and distribution channel management; production planning and control; and information systems for logistics and production planning. Structural properties of the supply chain seem to have an effect on skills that are related to supply chain design and information flow infrastructure, i.e. the ability to locate the various nodes in the network, and to connect and coordinate their respective activities in the face of often uncertain demand.

Research limitations/implications

The results are based on survey research with a limited sample size and geographic coverage with bias towards large firms. The research scope is further limited to investigating the influence of structural properties of the supply chain, leaving opportunities for further research on the demand for SCM skills.

Originality/value

The authors report original findings that provide input to the development processes of training programmes and university curricula, related to supply chain management. They also initiate theory development on the determinants of demand for SCM skills.

Details

Supply Chain Management: An International Journal, vol. 18 no. 4
Type: Research Article
ISSN: 1359-8546

Keywords

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Article

Olli‐Pekka Hilmola and Harri Lorentz

The purpose of this paper is to shed light on the development and change in priority of international warehouse location criteria during a business cycle (i.e. from years…

Abstract

Purpose

The purpose of this paper is to shed light on the development and change in priority of international warehouse location criteria during a business cycle (i.e. from years 2006 to 2010), by examining the responses of Finnish and Swedish companies on their European‐based facilities. The authors also investigate how the size of European warehouses will develop within medium term.

Design/methodology/approach

The authors' research is based on three online surveys completed during years 2006, 2009, and 2010. The 120 respondents were large Finnish and Swedish companies.

Findings

Finnish companies tend to focus on the emerging East European markets through their warehousing network structure, while Swedish companies focus more on Western Europe. Selection of warehouse location is dominated by three criteria, namely distribution cost, road transportation connection, and proximity of assembly and manufacturing units. Most of the longitudinal changes occur in less important warehousing criteria; companies seem to see warehousing decisions as less complex, incorporating a lower amount of criteria in the decision. Warehouse size analysis shows that in the future, the average size will slowly continue to increase, however, both small and large warehouses have justification for their existence. Finnish and Swedish respondents were mostly aligned in terms of warehouse location criteria, however, in terms of warehouse size Swedish companies are in favor of larger units.

Research limitations/implications

Research is limited in terms of geography and respondent size. This will limit the generalizability of the results.

Originality/value

This research is based on a longitudinal survey, and provides insight on the evolution of warehouse location criteria in changing economic conditions.

Details

Industrial Management & Data Systems, vol. 111 no. 3
Type: Research Article
ISSN: 0263-5577

Keywords

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