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Article
Publication date: 6 September 2021

Arkajyoti De and Surya Prakash Singh

This paper investigates how the channel leadership strategies develop a post-coronavirus disease (COVID-19) resilient agri-supply chain, which reduces supplier and…

Abstract

Purpose

This paper investigates how the channel leadership strategies develop a post-coronavirus disease (COVID-19) resilient agri-supply chain, which reduces supplier and retailer's price loss and enhances the logistics service quality level considering logistics outsourcing of agri-product especially for the rapidly changing market condition.

Design/methodology/approach

Based on the classical leadership theory, two channel leadership strategies, i.e. LPL and SL, are considered. The proposed framework first derives the equilibrium price and service quality level decision among the supplier, the logistics provider and the retailer. Then it compares both leadership strategies in terms of the equilibrium prices and service quality theoretically. This article also presents a case study of Arabian dates pricing and supply chain to test the theoretically derived propositions.

Findings

Selection of suitable leadership strategy is a critical factor for profit maximization of the supply chain drivers and proper optimization of equilibrium price and service quality. Here, the product's quality and the market's socio-economic condition play an important role in selecting a suitable leadership strategy. A random transformation of the physical market to an e-commerce portal creates a wide variation of the market's socio-economic parameters, affecting the equilibrium pricing and the logistics provider's service quality.

Research limitations/implications

This study proposes a post-COVID-19 resilient agri-supply chain framework considering price and quality-dependent stochastic market demand, incorporating a wide range of socio-economic factors in the model to counteract the effect of rapid behavior change of agri-market due to COVID-19 norms. This research examines the effect of different channel leadership strategies to facilitate suitable decisions on prices and service quality and retrieve the profit of the supplier, retailer and logistics provider. The future models can incorporate competitiveness in logistics outsourcing, fourth-party logistics (4PL) and contract farming in the agri-supply chain. Each of the extensions can open avenues in different directions.

Practical implications

As the post-COVID-19 market and the customer behavior is randomly changing, and the traditional market is rapidly converting into supermarkets and e-commerce portals, this paper examines the model with a wide variety of e-commerce portals with multi-variation of product. It is conclusive that the product's quality and the market's socio-economic behavior significantly impact the equilibrium decision. The drivers of the supply chain must take them into account before choosing a particular channel leadership strategy.

Originality/value

This study considers a multi-product and multi-market (e-commerce) model by integrating a wide variety of products and the market's socio-economic parameters. The model is tested in a price and quality-dependent stochastic market condition, contributing to the literature by reconciling two different channel leadership strategies into the global logistics of fresh agri-product.

Details

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

Keywords

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Article
Publication date: 6 July 2015

Kostas Selviaridis and Andreas Norrman

The purpose of this paper is to explore key challenges of adopting, designing and managing performance-based contracts (PBC) for advanced logistics services, as seen by…

Abstract

Purpose

The purpose of this paper is to explore key challenges of adopting, designing and managing performance-based contracts (PBC) for advanced logistics services, as seen by providers. The shift toward performance-based solutions has proved challenging since providers often struggle to link performance to their payment. Despite such managerial challenges, empirical research in this area has been limited.

Design/methodology/approach

A multi-case design was adopted. Three cases of logistics service providers were selected based on purposive sampling. Data were collected through 38 semi-structured interviews and review of 43 documents such as contracts and customer target letters.

Findings

Key PBC adoption challenges include customer and provider intention to align their goals and incentives as well as their views on risk and reward sharing. Contract design challenges center around performance metric definition and weighting, designing performance monitoring systems that consider service co-production effects and help improve customer relationship and designing incentives with appropriate intensity levels. Contract management challenges include fostering provider pro-activity, provider changes in terms of processes and resource investments, perceived fairness of designed incentives and contract re-design to allow for win-win relationship outcomes.

Research limitations/implications

The study empirically contributes to extant logistics service provider literature by identifying specific challenges that extend also beyond PBC adoption and design and cover contract management (and potential contract re-design). It also unpacks the notion of performance attributability by analyzing its role also in terms of contract and performance management as well as its potential effects on customer relationship management.

Practical implications

The study presents implications for logistics provider managers regarding how the observed PBC challenges can be overcome.

Originality/value

The study unearths several challenges of PBC for advanced logistics services, particularly in connection to contract management and re-design.

Details

International Journal of Physical Distribution & Logistics Management, vol. 45 no. 6
Type: Research Article
ISSN: 0960-0035

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Article
Publication date: 3 April 2007

Junjie Hong, Anthony T.H. Chin and Binglian Liu

The article attempts to study the current status and future prospects of logistics providers in the whole country as well as a comparatively developed Chinese city…

Abstract

Purpose

The article attempts to study the current status and future prospects of logistics providers in the whole country as well as a comparatively developed Chinese city (Tianjin); reveal the disparities between China and Tianjin, as well as local firms and their foreign counterparts; and identify the challenges faced by Chinese logistics providers and offer managerial implications for logistics providers in an increasingly competitive environment.

Design/methodology/approach

This research is based on two surveys conducted in China and Tianjin, respectively, under the support from government authorities. Comparative analyses were conducted to ascertain the differences between logistics firms in China and developed countries, as well as regional differences within China.

Findings

The results reveal that Chinese logistics providers depend heavily on transportation and warehousing businesses but lack value‐added services and logistics information management. Rate setting ranks highly in provider priority while the importance of lead‐time performance is largely ignored. Significant regional differences in logistics exist and there is a long way for Chinese logistics providers to go in achieving international service standards. Most local firms wish to establish strategic alliances to enhance competitiveness.

Originality/value

This research enriches the literature by investigating the current status and future prospects of logistics service providers in a transitional economy. China being an emerging player in the world economy, an understanding and assessment of China's logistics service providers is appropriate and timely. It offers invaluable information and implications for local providers, government authorities and foreign logistic service providers that are interested in the market.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 19 no. 2
Type: Research Article
ISSN: 1355-5855

Keywords

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Article
Publication date: 5 December 2019

Timo Gossler, Ioanna Falagara Sigala, Tina Wakolbinger and Renate Buber

The purpose of this paper is to determine best practices of aid agencies for outsourcing logistics to commercial logistics service providers (LSPs) in disaster relief…

Abstract

Purpose

The purpose of this paper is to determine best practices of aid agencies for outsourcing logistics to commercial logistics service providers (LSPs) in disaster relief. Moreover, it evaluates the application of the Delphi method for research in humanitarian logistics.

Design/methodology/approach

The paper is based on a two-round Delphi study with 31 experts from aid agencies and a complementary full-day focus group with 12 experts from aid agencies and LSPs.

Findings

The study revealed 12 best practices for outsourcing logistics in disaster relief and a compilation of more than 100 activities for putting these practices into action. Experts consider a proper balance between efficiency and compliance, a detailed contract and a detailed service request most important. Additionally, the Delphi method was found to be a promising technique for research on humanitarian logistics.

Research limitations/implications

By critically examining the Delphi method, this study establishes the basis for a wider application of the technique in the field of humanitarian logistics. Furthermore, it can help to prioritize future research as the ranking of practices reflects the priorities of practitioners.

Practical implications

The paper provides guidance to practitioners at aid agencies in charge of outsourcing logistics.

Originality/value

This research is one of the first in the field of humanitarian logistics to apply the Delphi method. Moreover, it addresses the lack of literature dealing with approaches for building successful cross-sectoral partnerships.

Details

Journal of Humanitarian Logistics and Supply Chain Management, vol. 9 no. 3
Type: Research Article
ISSN: 2042-6747

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Article
Publication date: 20 February 2007

Chieh‐Yu Lin

With the fast growth in China's economy and China's accession into WTO, the demand for logistics services has been growing significantly in China. China's logistics service

Abstract

Purpose

With the fast growth in China's economy and China's accession into WTO, the demand for logistics services has been growing significantly in China. China's logistics service providers need to pay more attention to adopt more efficient logistics technologies to provide better services for their customers. The purpose of this paper is to study the factors affecting the innovation in logistics technologies for logistics service providers in China.

Design/methodology/approach

Questionnaire survey on logistics service providers in Beijing, Shanghai and Shenzhen is conducted to study the innovation in logistics technologies by China's logistics industry. Logistics technologies are classified into four types: data acquisition technologies, information technologies, warehousing technologies, and transportation technologies. The influencing factors include internal and external factors. Regression analysis is used to analyze the influences of these factors on technological innovation.

Findings

The innovation in logistics technologies is significantly positively influenced by organizational encouragement, quality of human resources, environmental uncertainty, and governmental support for logistics service providers in China.

Originality/value

Owing to the lack of empirical research on the adoption of logistics technologies in China, this paper provides an empirical study on the factors influencing the innovation in logistics technologies by logistics service providers in China. Our research results can help China's logistics companies develop better strategies to adopt innovative logistics technologies, and can make them become innovation‐based logistics service providers.

Details

Journal of Technology Management in China, vol. 2 no. 1
Type: Research Article
ISSN: 1746-8779

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Article
Publication date: 15 June 2010

Yu Tian, Alexander E. Ellinger and Haozhe Chen

Based on customer value theory, this paper aims to propose and test a conceptual model of the relationship between third‐party logistics (3PL) provider customer…

Abstract

Purpose

Based on customer value theory, this paper aims to propose and test a conceptual model of the relationship between third‐party logistics (3PL) provider customer orientation and customer firm logistics improvement.

Design/methodology/approach

The 3PL provider customer orientation is conceptualized as a higher, second‐order construct made up of four key logistics‐driven first‐order indicators: service variety, information availability, timeliness, and continuous improvement. A survey‐based approach is utilized to collect data from managers at 124 manufacturing customer firms in the People's Republic of China; structural equation modeling is performed to assess measures and test the hypothesized relationships.

Findings

Chinese 3PL provider customer orientation significantly influences customer firm logistics improvement.

Research limitations/implications

Findings are based on single source perceptual data from customer firm key respondents. Tests indicate that common method bias is not a problem.

Practical implications

At a time when market pressure is compelling Mainland Chinese 3PL providers to upgrade and expand service offerings, 3PLs with a strong customer orientation create significant value for customers through superior execution on key elements of logistics service.

Originality/value

The paper responds to calls for additional theoretically driven assessment of market orientation in logistics service provider firms by identifying explicit behavioral manifestations of 3PL customer orientation that enhance customer firm logistics performance.

Details

International Journal of Physical Distribution & Logistics Management, vol. 40 no. 5
Type: Research Article
ISSN: 0960-0035

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Article
Publication date: 5 June 2018

Tim Gruchmann and Stefan Seuring

So far, most of the literature on logistics social responsibility (LSR) has prioritized the examination, classification of and adaption toward positive LSR practices…

Abstract

Purpose

So far, most of the literature on logistics social responsibility (LSR) has prioritized the examination, classification of and adaption toward positive LSR practices instead of investigating necessary logistics service providers’ capabilities to implement LSR strategies. Therefore, the purpose of this paper is to contribute to theory by an assessment of LSR and its linkages to dynamic capabilities theory to gain insights into how logistics service providers can foster an enhanced application of LSR practices.

Design/methodology/approach

The paper is conceptual and grounded on dynamic capabilities theory. Relevant literature from logistics management, supply chain management and sustainable supply chain management (SSCM) as well as dynamic capabilities was examined to build upon existing theory by conceptualizing LSR from a dynamic capabilities perspective. In addition, propositions for future research are presented based on the conceptual model.

Findings

With regards to the controversial discussion in the literature about the direct link between dynamic capabilities and competitive advantage as well as the necessary degree of heterogeneity of dynamic capabilities, the conceptualization of LSR from a dynamic capabilities perspective adds new elements to this discussion. Considering long-term or even sustainable competitive advantage, the current degree of homogeneity across logistics services might hinder a sustainable advantage in the long run and demands for more advanced logistical capabilities. In this line, it is important to understand and utilize the causal relationships between different logistical resources and capabilities to achieve a unique long-term advantage allowing logistics service providers to further enhance LSR practices.

Practical implications

Due to the current role of logistics service providers, they should not just foster their resources focusing on the relationship to the focal firm, but they should also develop and implement new logistical capabilities derived from SSCM-related dynamic capabilities to design alternative service portfolio extensions and new business models.

Originality/value

Although dynamic capabilities have been studied intensively in the last two decades, the causal relationships between different logistical resources and necessary dynamic capabilities to achieve advantages by enhancing LSR practices still lack conceptualization. To build on the understanding of LSR, the paper at hand presents a conceptual framework explaining LSR and SSCM practices through the lens of dynamic capabilities theory.

Details

The International Journal of Logistics Management, vol. 29 no. 4
Type: Research Article
ISSN: 0957-4093

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Article
Publication date: 1 May 2007

Peter Wanke, Rebecca Arkader and Maria Fernanda Hijjar

To investigate the relationship between the choice of integrated or functional logistics providers by Brazilian shippers and: the type of their manufacturing process…

Abstract

Purpose

To investigate the relationship between the choice of integrated or functional logistics providers by Brazilian shippers and: the type of their manufacturing process structure, and the level of sophistication of their logistics function, as well as the impact on that choice of possible interactions between these two characteristics of the shippers.

Design/methodology/approach

Data were collected in a comprehensive survey on the use of 3PL service providers in Brazil using a sample of 93 large Brazilian shippers; The analysis tests three research questions on the individual and combined relationships of logistics sophistication, measured on a logistics sophistication index (LSI), and process type (according to Goldratt's V‐A‐T classification for materials flow analysis) with the choice of type of 3PL provider; the methods of analysis were cluster and logistics regression analysis.

Findings

The paper finds: support for an association of sophisticated logistics functions and a preference for integrated 3PLs; support for an association between the A‐type production process structure and preference for integrated 3PLs; and of V and T types for functional 3PLs. However, it also finds that shippers with type T process structure and more sophisticated logistics tend to favor integrated 3PLs.

Research limitations/implications

One limitation is that logistics performance is not considered; future studies may further refine the proposed framework for segmentation.

Practical implications

The paper advocates the use of models by providers to segment their customers, and better understanding by shippers of prevailing trends in logistics outsourcing according to their process structure and characteristics of their logistics function.

Originality/value

The paper unveils significant relationships between shipper sophistication of logistics function, manufacturing process structures, and the choice of type of 3PL. It also proposes a new framework for segmenting the 3PL service provider market in terms of sophistication of the logistics function and the logistics task implied by the type of operation.

Details

International Journal of Operations & Production Management, vol. 27 no. 5
Type: Research Article
ISSN: 0144-3577

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Article
Publication date: 5 October 2015

Baofeng Huo, Chen Liu, Mingu Kang and Xiande Zhao

The purpose of this paper is to develop a theoretical framework involving dependence, relationship commitment, logistics outsourcing and service quality to exhibit the…

Abstract

Purpose

The purpose of this paper is to develop a theoretical framework involving dependence, relationship commitment, logistics outsourcing and service quality to exhibit the roles of the relational factors involved in logistics outsourcing and their outcomes.

Design/methodology/approach

Based on data collected from 361 companies in Greater China, the authors use the structural equation model approach to examine the hypothesized relationships.

Findings

Both normative and instrumental relationship commitment are necessary for third party logistics (3PL) users to cope with their goal dependence on 3PL providers. However, only normative relationship commitment is necessary when users perceive switch dependence. Normative relationship commitment also plays a more important role than instrumental relationship commitment in facilitating the adoption of 3PL logistic outsourcing. In addition, both basic and advanced outsourcing practices have a positive effect on service quality.

Originality/value

This study contributes to both 3PL theories and practices by clarifying how relationships between 3PL users and providers in China are managed.

Details

International Journal of Physical Distribution & Logistics Management, vol. 45 no. 9/10
Type: Research Article
ISSN: 0960-0035

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Article
Publication date: 11 January 2016

Bang-Ning Hwang, Tsai-Ti Chen and James T. Lin

The purpose of this study was to identify the key third-party logistics (3PL) selection criteria for the integrated circuit (IC) manufacturing industry in Taiwan. The IC…

Abstract

Purpose

The purpose of this study was to identify the key third-party logistics (3PL) selection criteria for the integrated circuit (IC) manufacturing industry in Taiwan. The IC manufacturing industry seeks global sourcing, and is facing increasing pressure due to fierce market competition. More than a cost reduction strategy, 3PL is a strategic tool for IC manufacturers to gain a competitive advantage in a global supply chain complex.

Design/methodology/approach

The triangulation method that combines qualitative and quantitative approaches was used in the study. The qualitative approach of focus group discussions was adopted to establish the decision framework, and the quantitative approach of the analytic hierarchy process was used to explore the relative importance of the 3PL selection criteria. Finally, an in-depth proof-by-example interview was undertaken to provide an insightful interpretation of the research results.

Findings

The research shows that performance is the most important criterion group, followed by cost, service, quality assurance, intangible and information technology. At the detailed sub-criteria level, document accuracy, problem-solving capability, continuous cost reduction, value-added services and associated cost control capability are the top five criteria.

Research limitations/implications

This study focused on the IC manufacturing sector in Taiwan. Multi-country and multi-industry studies are recommended to help further validate and generalise the research findings.

Originality/value

Due to its application of triangulation, this study is a pioneering work on the 3PL selection criteria in a high-tech manufacturing industry. Furthermore, the value of this research is that it enhances the body of knowledge of 3PL selection by identifying certain emerging selection criteria, it could serve as a guideline for IC manufacturers in planning logistics outsourcing actions and it could significantly contribute to the efforts of 3PL providers in evaluating whether they comply with customer needs and adhere to core competency development.

Details

Supply Chain Management: An International Journal, vol. 21 no. 1
Type: Research Article
ISSN: 1359-8546

Keywords

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