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Abstract

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

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Article
Publication date: 14 March 2018

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

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Article
Publication date: 9 May 2016

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…

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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

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Article
Publication date: 2 January 2021

Oskari Rintala, Tomi Solakivi, Sini Laari, Juuso Töyli and Lauri Ojala

This study aims to investigate the extent to which psychological factors and the agency of decision-makers drive outsourcing decisions. Arguments based on transaction cost…

Abstract

Purpose

This study aims to investigate the extent to which psychological factors and the agency of decision-makers drive outsourcing decisions. Arguments based on transaction cost economics, the core competence approach and the theory of planned behavior are used to explain logistics outsourcing.

Design/methodology/approach

The literature was reviewed to identify constructs that are antecedents of logistics outsourcing intentions, and corresponding measures were developed. The data were gathered through a survey of supply chain professionals in Finnish manufacturing companies. A measurement model was reviewed to ensure reliability and validity and converted into a structural model for analysis. The analysis was based on partial least squares (PLS) structural equation modeling.

Findings

Supply chain managers objectively consider the characteristics of their organization's logistics identified in previous research as requiring assessment during the outsourcing process. However, and surprisingly, they also tend to rely on behavioral subjective factors such as positive attitudes, encouraging subjective norms and competence. Moreover, it seems that firms do not outsource logistics activities despite the high strategic importance of the function, but because of it.

Research limitations/implications

The constructed model is limited to the constructs chosen to represent drivers of logistics outsourcing. Further application with more samples would improve its reliability.

Practical implications

The factors proposed here with respect to assets and the capabilities of third-party partners could facilitate decision-making related to logistics outsourcing.

Originality/value

The findings emphasize the role of behavioral factors in the procurement function and therefore enhance the understanding of behavioral supply chain management.

Details

International Journal of Physical Distribution & Logistics Management, vol. 51 no. 3
Type: Research Article
ISSN: 0960-0035

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Article
Publication date: 3 October 2016

Sini Laari, Tomi Solakivi, Juuso Töyli and Lauri Ojala

Firms that need to address growing concerns about the environmental impact of their activities could benefit from collaborating internally and externally. The purpose of…

Abstract

Purpose

Firms that need to address growing concerns about the environmental impact of their activities could benefit from collaborating internally and externally. The purpose of this paper is to develop and empirically test a theoretical model of the effects of internal and external environmental collaboration with customers on the firm performance of logistics service providers (LSPs).

Design/methodology/approach

Hierarchical multiple regression and generalised linear modelling are utilised to analyse 311 LSPs offering road transport services in Finland. The data set was collected from a Finnish nationwide logistics survey in 2012 and financial reports-based data.

Findings

External environmental collaboration with customers seems to be the most effective way to improve operational and financial performance, while internal environmental collaboration does not yield similar benefits.

Research limitations/implications

Research limitations include the concentrated geographic origin of the respondents and the exclusion of potential indirect effects of environmental collaboration on operational and financial performance through environmental performance.

Practical implications

Managers planning to implement environmental initiatives should extend their focus from internal operations to external partners in the supply chain.

Originality/value

This research is one of the first attempts to focus on performance outcomes with regard to the environmental activities of LSPs. The research provides quantified insights using both self-reported and financial reports-based data.

Details

Baltic Journal of Management, vol. 11 no. 4
Type: Research Article
ISSN: 1746-5265

Keywords

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Article
Publication date: 17 May 2013

Juuso Toyli, Harri Lorentz and Lauri Ojala

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Abstract

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

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Article
Publication date: 1 July 1993

Lauri Ojala

For individual transport customers in Europe, the trend is towards smaller shipment sizes and higher frequencies. At the same time, a considerable reshaping of the…

Abstract

For individual transport customers in Europe, the trend is towards smaller shipment sizes and higher frequencies. At the same time, a considerable reshaping of the transport industry through mergers, acquisitions and alliances, particularly in road freight and freight forwarding industries has taken place. These changes, together with construction of new road and rail arteries, large multimodal load centers in freight transport and an ever‐increasing importance of information technology are changing the pattern of European freight transport. These issues, together with a brief look at transport policy development and implementation, and standpoints in the ongoing European Community (EC) membership negotiations are addressed in this article from a North European point of view.

Details

The International Journal of Logistics Management, vol. 4 no. 2
Type: Research Article
ISSN: 0957-4093

Keywords

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Article
Publication date: 1 August 1992

Lauri Ojala and Reima Suomi

Information technology in its various forms is one key component inthe effort to increase efficiency in the transport industry. Electronicdata interchange (EDI)…

Abstract

Information technology in its various forms is one key component in the effort to increase efficiency in the transport industry. Electronic data interchange (EDI), especially, in its various forms, promises to be one of the key techniques in mastering the growing volume of information. Considers whether remotely (from the markets) situated countries will benefit after the introduction of EDI, with specific discussion of the Nordic countries. No specific data collection phase was conducted for this study, which is conceptual. However, during the last five years both researchers have conducted extensive empirical research in the field, which is covered here.

Details

International Journal of Physical Distribution & Logistics Management, vol. 22 no. 8
Type: Research Article
ISSN: 0960-0035

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Article
Publication date: 1 January 2004

Lotta Häkkinen, Andreas Norrman, Olli‐Pekka Hilmola and Lauri Ojala

In this article, we describe the integration of logistics after Mergers and Acquisitions (M&As) of firms within the same industry and, same industry level (i.e. horizontal…

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2813

Abstract

In this article, we describe the integration of logistics after Mergers and Acquisitions (M&As) of firms within the same industry and, same industry level (i.e. horizontal M&As). First, we present a review of the literature on M&As and conclude that operational issues, in general, and logistics issues, in particular, have received little attention. In parallel with the literature review, we conducted an exploratory survey of Swedish and Finnish manufacturers that had accomplished horizontal M&As during 1995‐2001. The aim of the survey was to find out how management perceives the importance of logistics issues in M&As and also, how difficult it is to realize synergies in logistics. Finally, we present a framework for further studies and the analysis of the interrelationship between logistics and M&As.

Details

The International Journal of Logistics Management, vol. 15 no. 1
Type: Research Article
ISSN: 0957-4093

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Article
Publication date: 28 June 2011

Tomi Solakivi, Juuso Töyli, Janne Engblom and Lauri Ojala

The purpose of this paper is to explore the current state of and future expectations concerning the usage of the outsourcing of logistics operations in small‐ and…

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3695

Abstract

Purpose

The purpose of this paper is to explore the current state of and future expectations concerning the usage of the outsourcing of logistics operations in small‐ and medium‐sized enterprises (SMEs), and to analyse and quantify the relationships between logistics outsourcing, costs and performance, financial performance, and the company context.

Design/methodology/approach

The data were 223 manufacturing and trading SMEs from the Finnish logistics survey combined with detailed financial report‐based data, both referring to the year 2008. Statistical analyses including ANOVA and factor analysis were applied.

Findings

Transport activities are excessively outsourced. Most companies report no outsourcing of order processing and invoicing, and half of them have not outsourced logistics IT systems. Outsourcing is expected to grow in all areas with strongest expectations in materials management, value‐added services, and in IT. The logistics costs for companies engaging in the medium level of outsourcing could be higher than those of other companies. Further research is needed to confirm this finding. No loss or gain in logistics performance due to outsourcing was observed. The more the companies are engaged in outsourcing, the more they monitor as well as collaborate internally and externally, or vice versa. In general, the results imply that management should not expect automatic gains from logistics outsourcing, and should rather analyse the company‐specific characteristics that support or in some cases suffer from the outsourcing decision.

Originality/value

The article explores logistics outsourcing in SMEs combining financial report data with self‐reported measures. It analyses and quantifies the relationship of logistics outsourcing to logistics costs, financial performance, logistics performance, and company context.

Details

Strategic Outsourcing: An International Journal, vol. 4 no. 2
Type: Research Article
ISSN: 1753-8297

Keywords

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