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The purpose of this paper is to propose a maturity model to improve warehouse performance.
Abstract
Purpose
The purpose of this paper is to propose a maturity model to improve warehouse performance.
Design/methodology/approach
This paper will follow De Bruin et al’s (2005) suggested six relevant phases: scope, design, populate, test, deploy and maintain in developing the proposed maturity model. This study concentrates on the first five phases.
Findings
The proposed warehouse maturity model can be used as descriptive, benchmarking and a prescriptive with a road map for improvement.
Practical implications
The warehouse maturity model was proposed to let warehouse managers evaluate their practices and assess them by maturity level. Then, the proposed warehouse maturity model can be utilized to develop a set of plans for conducting projects to improve the warehouse practices, techniques and tools.
Originality/value
The proposed warehouse maturity model contributes to fill the shortages of maturity model addressing the warehouse environment. In particular, it provides a useful tool to establish the overall maturity level of a warehouse system. The proposed maturity model supports strategic decisions oriented toward improvement capabilities of the warehouse and to compete based on service level provided.
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Ismail Abushaikha, Loay Salhieh and Neil Towers
Recent literature recognizes the role of warehouses in enhancing the overall logistics performance. Thus, lean thinking has recently found its way in supporting warehouse and…
Abstract
Purpose
Recent literature recognizes the role of warehouses in enhancing the overall logistics performance. Thus, lean thinking has recently found its way in supporting warehouse and distribution centre operations. The purpose of this paper is to examine the relationships among warehouse waste reduction practices, warehouse operational performance, distribution performance and business performance.
Design/methodology/approach
A two-stage study was conducted. First, a Delphi technique was adopted to develop a relevant questionnaire. Second, this questionnaire was used to measure the degree of waste reduction in the different warehouse activities and to test the developed research hypotheses. The authors test the hypotheses with a sample of Middle Eastern warehouse operators.
Findings
There exists a positive relationship between warehouse waste reduction level and both warehouse operational performance and distribution performance. There was no direct relationship between warehouse waste reduction level and business performance. However, results revealed that the relationship between warehouse waste reduction level and business performance was mediated by warehouse operational performance and distribution performance.
Practical implications
The developed instrument provides a guide for logistics managers as to understand how to reduce waste in each warehousing activity. The results also inform logistics managers of how distribution performance can be improved through lean warehousing. The resulting performance improvements in the distribution operations will ultimately be reflected in the logistics performance of downstream retailers.
Originality/value
The study develops an original instrument for measuring waste reduction in warehouses, and provides insights into the evolving lean warehousing research area. This is the first scholarly work to uncover the relationships among warehouse waste reduction practices, warehouse operational performance, distribution performance and business performance.
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Robin Hanson, Lars Medbo and Mats I. Johansson
The purpose of this paper is to determine whether man-hour efficiency of picking is affected by the use of batch preparation, compared to preparation of one kit at a time. This…
Abstract
Purpose
The purpose of this paper is to determine whether man-hour efficiency of picking is affected by the use of batch preparation, compared to preparation of one kit at a time. This paper focuses on small kit preparation areas.
Design/methodology/approach
This paper is based on two experiments that were performed at a vehicle assembly plant and then analysed quantitatively.
Findings
The results provide a strong indication of the advantages associated with batch preparation, in terms of man-hour efficiency.
Practical implications
The fact that the effects identified during the experiments are substantial, over 20 per cent reduction of average time per picked component in Experiment 1 and 7 per cent in Experiment 2, indicates that the option of batch picking holds potentials for large cost reduction and should be considered when kit preparation systems are designed.
Originality/value
Limited research has dealt with the design of kit preparation systems, thus leaving considerable knowledge gaps. Previous research dealing with batch picking focuses on other environments than kitting and on large picking areas where batching can reduce walking distances. In contrast, the current paper focuses on small picking areas, which are common in industrial kitting applications. This paper provides a considerable contribution by demonstrating improvements in time efficiency that batch preparation can offer to small picking areas in addition to larger areas. The discussion also provides a basis for future research, which could focus on aspects other than time efficiency, such as the quality of kit preparation, and variables that might moderate the effect of batching.
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Johannes Wollenburg, Alexander Hübner, Heinrich Kuhn and Alexander Trautrims
The advent of grocery sales through online channels necessitates that bricks-and-mortar retailers redefine their logistics networks if they want to compete online. Because the…
Abstract
Purpose
The advent of grocery sales through online channels necessitates that bricks-and-mortar retailers redefine their logistics networks if they want to compete online. Because the general understanding of such bricks-and-clicks logistics systems for grocery is still limited, the purpose of this paper is to analyze the internal logistics networks used to serve customers across channels by means of an exploratory study with retailers from different contexts.
Design/methodology/approach
A total of 12 case companies from six European countries participated in this exploratory study. Face-to-face interviews with managers were the primary source for data collection. The heterogeneity of the sample enabled the authors to build a typology of logistics networks in grocery retailing on multiple channels and to understand the advantages of different warehousing, picking, internal transportation and last-mile delivery systems.
Findings
Bricks-and-mortar grocery retailers are leveraging their existing logistics structures to fulfill online orders. Logistics networks are mostly determined by the question of where to split case packs into customer units. In non-food logistics, channel integration is mostly seen as beneficial, but in grocery retailing, this depends heavily on product, market and retailer specifics. The data from the heterogeneous sample reveal six distinct types for cross-channel order fulfillment.
Practical implications
The qualitative analysis of different design options can serve as a decision support for retailers developing logistics networks to serve customers across channels.
Originality/value
The paper shows the internal and external factors that drive the decision-making for omni-channel (OC) logistics networks for previously store-based grocery retailers. Thereby, it makes a step toward building a contingency and configuration theory of retail networks design. It discusses in particular the differences between grocery and non-food OC retailing, last-mile delivery systems and market characteristics in the decision-making of retail networks design.
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Kevin Grant, Roman Matousek, Martin Meyer and Nickolaos G. Tzeremes
The purpose of this paper is to provide a fresh insight into the examination of the comparison between multinationality and firm performance, measured through technical efficiency…
Abstract
Purpose
The purpose of this paper is to provide a fresh insight into the examination of the comparison between multinationality and firm performance, measured through technical efficiency levels by overcoming methodological constraints and misunderstandings presented in earlier research.
Design/methodology/approach
The authors estimate firms’ efficiency levels in a production function-type framework through technical efficiency levels using nonparametric data envelopment analysis. The authors include firms from both developed and developing economies, from different national origins and with different sectoral characteristics, with a particular focus on knowledge-intensive business services (KIBS) and capital-intensive business services (CIBS).
Findings
The study confirms for the case of KIBS the existence of the three-stage sigmoid (S-shaped) hypothesis between multinationality and firm performance measured through technical efficiency levels. Finally, the empirical findings reveal that CIBS exhibit only the first two stages, thus forming a “U”-shape relationship.
Originality/value
The authors propose the application of different firms’ performance measurements, providing us with the ability to unpack a firms’ managerial decision processes with regards to determining the optimised investment(s) in technology and research and development and with a particular focus on KIBS and CIBS.
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Sander de Leeuw, Beatriz Minguela-Rata, Ehsan Sabet, Jaap Boter and Runa Sigurðardóttir
The purpose of this paper is to investigate how online apparel retailers make trade-offs in achieving efficiency in handling consumer returns, attempting to reduce the number of…
Abstract
Purpose
The purpose of this paper is to investigate how online apparel retailers make trade-offs in achieving efficiency in handling consumer returns, attempting to reduce the number of consumer returns they are faced with and increasing sales through returns management.
Design/methodology/approach
The authors use literature to develop propositions and employed a case study research design to understand how online apparel retailers make trade-offs in returns management practices in order to verify the propositions. Case study subjects have been anonimized.
Findings
The authors have developed and verified five propositions with the aim to understand how retailers make trade-offs in reducing the number of online consumer returns, increasing the effectiveness of handling online consumer returns and increasing sales through returns management.
Research limitations/implications
The research is limited by the use of interview data from cases, a focus on apparel retail only and by the use of companies located in the Netherlands only.
Practical implications
The propositions help managers make trade-offs in reducing the number of returns versus increasing sales through returns management versus increasing the effectiveness of handling consumer returns.
Social implications
Consumer returns lead to a significant flow of items from consumers back to online retailers, in particular in fashion. Reduction of this flow decreases social and environmental impacts through reduced transport and handling requirements.
Originality/value
Several authors identify that more empirical research is welcome in the area of returns management. The research aims to contribute to this gap by focussing at how online apparel retailers make trade-offs in achieving efficiency in handling returns, increasing sales through returns management and attempting to reduce the number of consumer returns they receive.
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Jiangxia Liu, Sourish Sarkar, Sanjay Kumar and Zhenhu Jin
The purpose of this paper is to explore the stock market impact of supply chain disruptions for public companies in Japan. The impact in the USA and Japan are also compared.
Abstract
Purpose
The purpose of this paper is to explore the stock market impact of supply chain disruptions for public companies in Japan. The impact in the USA and Japan are also compared.
Design/methodology/approach
Using event study on a data set comprising of disruptions announced by Japanese and US companies during year 2000-2013, the authors measure the stock price reaction to supply chain disruptions.
Findings
The study finds that the Japanese companies, in an 11-day window around disruption announcement, witness an average abnormal return of −0.61 percent, which is statistically significant. In comparison to the USA, this stock decline is qualitatively smaller, yet statistically indifferent. The abnormal return is found significant in the two days before disruption announcement. However, a follow-up study with a refined data set (where the event date is the earlier of the announcement or disruption date) does not find any significant abnormal return prior to the event date. This difference from US market suggests the possibility of insider trading. Factors such as book-to-market ratio, industry type, and market capitalization did not affect the stock decline.
Research limitations/implications
The research is limited to a data set from Japan and the USA. Further generalization of findings may need studies focused on other countries.
Practical implications
The results are of interest for supply chain managers. The results should also help global investors in making investment decisions.
Originality/value
Most supply chain disruptions management research is focused on companies in western countries. The paper is the first to test the impact of supply chain disruptions in Japan.
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William J Rose, Diane A Mollenkopf, Chad W. Autry and John E. Bell
As global populations become increasingly urbanized and urban areas grow in density and complexity, many firms seeking to operate in these areas face significant new challenges…
Abstract
Purpose
As global populations become increasingly urbanized and urban areas grow in density and complexity, many firms seeking to operate in these areas face significant new challenges. The purpose of this paper is to identify the approaches utilized by urban logistics service providers to overcome the issues resulting from urban density and complexity. The paper also identifies potential directions for future research based on the research findings.
Design/methodology/approach
The study followed a grounded theory approach (Corbin and Strauss, 2008) to uncover the approaches utilized by logistics service providers to adapt to urban environments.
Findings
The urban environment exerts certain coercive and mimetic pressures on logistics service providers. To overcome these pressures, urban logistics service providers seek to manage space, resources, and legitimacy in the urban environment.
Research limitations/implications
This research followed an inductive approach, and therefore, further empirical research is required to ensure statistical generalizability. Additionally, all research participants are currently employed in the USA, and so further research at the international level should be conducted.
Practical implications
The framework presented will enable firms seeking to enter the urban market to more quickly adapt to the specific pressures of the urban ecology.
Originality/value
While literature from several academic disciplines outline problems and solutions specific to urban areas, little qualitative, inductive research has been conducted in the field of urban logistics. The current research serves as a starting point for further urban logistics research.
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Haoxiong Yang, Lijun Sun, Shulin Lan and Chen Yang
Many cities implement freight traffic restriction policy (FTRP) intending to reduce traffic congestion and air pollution. At the same time, city distribution had some negative…
Abstract
Purpose
Many cities implement freight traffic restriction policy (FTRP) intending to reduce traffic congestion and air pollution. At the same time, city distribution had some negative effects. The purpose of this paper is therefore to study the freight group behavior under FTRP, and to provide some recommendations for the government.
Design/methodology/approach
This paper establishes a city distribution system model built by a simulation method of Agent, which includes the complex adaptability of freight individual, event of restriction policy, the influence factor of freight group behavior and its changes from the perspective of restriction policy. The rules of microscopic freight group behavior to macroscopic freight group behavior, the effects on freight group behavior exerted by restriction policy and the dynamic mechanism of freight group behavior are all studied. The model is also simulated with the traffic data of Beijing in China.
Findings
Theoretical results ensure that restriction of the passport is not the sole reason that may produce illegal trucks, and other measures need to be taken to solve the traffic problems. And in the long run, increasing fines has a greater effect than strengthening supervision frequency on illegal trucks reduction.
Originality/value
From city distribution perspective, this paper studied freight group behavior under FTRP. This paper also applied the Agent modeling method to build a model of urban distribution system in the FTRP.
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Joakim Hans Kembro, Veronica Danielsson and Granit Smajli
The purpose of this paper is to investigate how modern network video technology could be used to improve different warehouse types and operations and how barriers may prevent its…
Abstract
Purpose
The purpose of this paper is to investigate how modern network video technology could be used to improve different warehouse types and operations and how barriers may prevent its implementation.
Design/methodology/approach
An exploratory multiple-case study with nine case companies was conducted, including on-site visits, interviews, questionnaires and a workshop.
Findings
The authors identified 12 video applications that could improve warehouse operations by making them safer, faster, more transparent and more reliable than they are at present. The authors found that video applications complemented existing information technology and offered a new dimension that provided the real-time analysis of different activities in warehouse operations. The main barriers to implementing video technology included uncertain return on investment, staff integrity, union restrictions and integration with other systems.
Research limitations/implications
The study contributes to the literature by exploring how information technology could be used to improve warehouse operations and by developing a classification matrix that outlines the video applications that suit the warehouse type and operation. Building on the contingency theory, the authors also described a conceptual framework for guiding future relevant research on warehousing.
Practical implications
Video technology provides an opportunity to improve efficiency and cut costs in warehouse operations, which could contribute to increasing the competitiveness of the company and the supply chain. However, several barriers must be overcome to enable its implementation. Furthermore, competing technologies, such as augmented reality and the internet of things, are being developed in parallel.
Social implications
The identified video applications could help to increase safety, sustainability and traceability in warehouse operations and, potentially, across the entire supply chain.
Originality/value
This research is the first to explore the potential of introducing video applications to increase the efficiency and effectiveness of various warehouse types and operations.
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