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Article
Publication date: 3 December 2020

Shong-lee Ivan Su, Xuemei Fan and Yongyi Shou

The study aims to explore and develop a smart route planning system for the cross-docking delivery operations of a large supermarket chain using an action research (AR…

Abstract

Purpose

The study aims to explore and develop a smart route planning system for the cross-docking delivery operations of a large supermarket chain using an action research (AR) approach and assessing through a design science research (DSR) lens.

Design/methodology/approach

This study took a problem-solving AR (PAR) approach toward the delivery operational issue of the case firm. The research process has accorded with the solution incubation and the refinement phases defined by a DSR framework. An intervention-based research framework for DSR is developed to assess the validity of this study as a DSR research and derive mid-range theories.

Findings

Dramatic operational and financial improvements were achieved for the case firm. Significant and unintended environmental and social benefits were also found. A design proposition (DP) and several mid-range theories are proposed as an extension of AR research to DSR research.

Research limitations/implications

A problem-solving DSR research can be better assessed by the intervention-based DSR framework developed in this study. DSR studies should be encouraged for both practical and theoretical advancement purposes.

Practical implications

A challenging business problem-solving study can be tackled effectively through an industry/academic collaboration taking a PAR approach to deliver substantial values and organization transformational results.

Social implications

Drivers and store associates are safer with smart delivery operations in the case firm.

Originality/value

There are still limited PAR design science case studies in the supply chain/logistics research literature. The research experience and findings gained from this study provide more insights toward how this type of research can be conducted and assessed.

Details

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

Keywords

Content available
Article
Publication date: 2 October 2017

Shong-lee Ivan Su

Abstract

Details

International Journal of Physical Distribution & Logistics Management, vol. 47 no. 9
Type: Research Article
ISSN: 0960-0035

Content available

Abstract

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: 5 October 2015

Jian-yu Fisher Ke, Robert J. Windle, Chaodong Han and Rodrigo Britto

The purpose of this paper is to propose that transportation modal mix in global supply chains is a result of the strategic alignment between industry characteristics and…

Abstract

Purpose

The purpose of this paper is to propose that transportation modal mix in global supply chains is a result of the strategic alignment between industry characteristics and supply chain strategies.

Design/methodology/approach

Using annual US trade statistics and manufacturing industry data for the years 2002-2009 between the USA and its top 12 Asian trading partners, this study applies various regression methods to examine key factors associated with the transport modal decision.

Findings

The results show that industry characteristics have an impact on the transportation modal mix in global supply chains. Manufacturing industries use more air freight and less ocean freight when facing positive sales surprises, high-monthly demand variation, a high-contribution margin ratio, a high cost of capital, and increased competition.

Practical implications

The findings provide important insights for logistics managers and freight forwarders. While transportation cost remains an important concern, a logistics manager must also consider non-cost factors such as competition, working capital, and demand uncertainties in their modal decisions. Freight forwarders should be supply chain solution providers who consider all of these industry factors and suggest a proper mix of transportation modes for their customers.

Originality/value

This study is among the first efforts to examine the impact of industry characteristics on the transportation modal mix in global supply chains. This study first develops a theoretical framework for the modal choice decision for international transportation movements and then, using an extensive and innovative data set, provides new findings regarding current air freight practices in global supply chains.

Details

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

Keywords

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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

Keywords

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Article
Publication date: 5 October 2015

Yi-Chun Huang, Shams Rahman, Yen-Chun Jim Wu and Chi-Jui Huang

The purpose of this paper is to investigate the impact of the salient task environment on reverse logistics (RL) practices and organizational performance in the context of…

Abstract

Purpose

The purpose of this paper is to investigate the impact of the salient task environment on reverse logistics (RL) practices and organizational performance in the context of Taiwanese computer, communication, and consumer (3C) electronics retail industry.

Design/methodology/approach

A hierarchical regression analysis was employed to test relationships between four constituents of the task environment and RL, as well as relationships between RL and environmental/economic performance. In addition, a regression analysis was used to examine the mediating effect of RL on relationships between the constituents of the task environment and environmental/economic performance. Data and information collected from a sample of 284 companies from the Taiwanese 3C retail industry were used for analysis.

Findings

Results suggest that three out of four constituents of task environment including government agencies, suppliers, and customers are associated positively with RL activities. In other words, as the salience of the constituents of the task environment increases, their level of influence on the firm’s RL also increases. This study also found the mediating effect of RL, indicating that superior performance emerges when a company’s RL matches the salient task environment.

Practical implications

The findings provide an insight into the relationships between the constituents of the task environment, RL, and environmental/economic performance which can assist firms within 3C retail industry in designing and developing appropriate strategy for RL. In practice, some retailers, especially SMEs, have outsourced their RL to professional recyclers. Investment in RL activity may be an option for some 3C retailers.

Originality/value

While previous research provides a strong foundation to further develop RL and subsequent policies, analysis of the factors affecting the decision processes to implement RL specially in the retail sector is scarce. This study fills this gap.

Details

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

Keywords

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Article
Publication date: 5 October 2015

Nyoman Pujawan, Mansur Maturidi Arief, Benny Tjahjono and Duangpun Kritchanchai

In transportation and distribution systems, the shipment decisions, fleet capacity, and storage capacity are interrelated in a complex way, especially when the authors…

Abstract

Purpose

In transportation and distribution systems, the shipment decisions, fleet capacity, and storage capacity are interrelated in a complex way, especially when the authors take into account uncertainty of the demand rate and shipment lead time. While shipment planning is tactical or operational in nature, increasing storage capacity often requires top management’s authority. The purpose of this paper is to present a new method to integrate both operational and strategic decision parameters, namely shipment planning and storage capacity decision under uncertainty. The ultimate goal is to provide a near optimal solution that leads to a striking balance between the total logistics costs and product availability, critical in maritime logistics of bulk shipment of commodity items.

Design/methodology/approach

The authors use simulation as research method. The authors develop a simulation model to investigate the effects of various factors on costs and service levels of a distribution system. The model mimics the transportation and distribution problems of bulk cement in a major cement company in Indonesia consisting of a silo at the port of origin, two silos at two ports of destination, and a number of ships that transport the bulk cement. The authors develop a number of “what-if” scenarios by varying the storage capacity at the port of origin as well as at the ports of destinations, number of ships operated, operating hours of ports, and dispatching rules for the ships. Each scenario is evaluated in terms of costs and service level. A full factorial experiment has been conducted and analysis of variance has been used to analyze the results.

Findings

The results suggest that the number of ships deployed, silo capacity, working hours of ports, and the dispatching rules of ships significantly affect both total costs and service level. Interestingly, operating fewer ships enables the company to achieve almost the same service level and gaining substantial cost savings if constraints in other part of the system are alleviated, i.e., storage capacities and working hours of ports are extended.

Practical implications

Cost is a competitive factor for bulk items like cement, and thus the proposed scenarios could be implemented by the company to substantially reduce the transportation and distribution costs. Alleviating storage capacity constraint is obviously an idea that needs to be considered when optimizing shipment planning alone could not give significant improvements.

Originality/value

Existing research has so far focussed on the optimization of shipment planning/scheduling, and considers shipment planning/scheduling as the objective function while treating the storage capacity as constraints. The simulation model enables “what-if” analyses to be performed and has overcome the difficulties and impracticalities of analytical methods especially when the system incorporates stochastic variables exhibited in the case example. The use of efficient frontier analysis for analyzing the simulation results is a novel idea which has been proven to be effective in screening non-dominated solutions. This has provided the authors with near optimal solutions to trade-off logistics costs and service levels (availability), with minimal experimentation times.

Details

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

Keywords

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Article
Publication date: 5 October 2015

Shao Hung Goh and Stephen Eldridge

The purpose of this paper is to investigate the implementation and performance benefits of sales and operations planning (S & OP) within organizations in Asia…

Abstract

Purpose

The purpose of this paper is to investigate the implementation and performance benefits of sales and operations planning (S & OP) within organizations in Asia Pacific.

Design/methodology/approach

A case study method was used, with two companies selected. The first company had recently commenced S & OP and applied it to facilitate new product introduction, while the second had integrated its supplier into an existing S & OP program. Supply chain performance data were collected and analyzed in the context of an S & OP maturity framework.

Findings

Both cases show significant improvements in supply chain performance. In one case, the implementation of a common form of S & OP resulted in a 67 percent reduction in order lead time for newly introduced products. The second case demonstrated a 30 percent reduction in inventory levels and a 52 percent improvement in forecast accuracy through more advanced S & OP processes.

Research limitations/implications

This paper studies just two companies and is not intended to be representative of outcomes at all companies implementing S & OP. Further studies are required for a more generalized picture of S & OP implementations in the Asia Pacific region to emerge.

Practical implications

The findings illustrate the potential quantitative benefits of adopting S & OP and the circumstances under which these benefits may be achieved. The results are also supportive of the notion of a maturity model for S & OP implementations.

Originality/value

This paper strengthens the link between practitioner and academic literature by providing empirical evidence of the benefits of S & OP. Furthermore, the findings are derived from the Asia Pacific region for which there have been few academic studies on S & OP to date.

Details

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

Keywords

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Article
Publication date: 5 October 2015

Yenming J. Chen, Yenchun Jim Wu and Tienhua Wu

The purpose of this paper is to explore how corporate environmental strategies, namely, environmental management strategy (EMS) and green product strategy (GPS), affect…

Abstract

Purpose

The purpose of this paper is to explore how corporate environmental strategies, namely, environmental management strategy (EMS) and green product strategy (GPS), affect the competitiveness of a firm. In addition, this study investigates whether the environmental collaboration in supply chains (ECSC), namely, environmental collaboration with suppliers (ECS), and environmental collaboration with customers (ECC) moderate the environment-performance relationship.

Design/methodology/approach

Survey methodology and regression modeling are adopted to assess the relationship between corporate environmental strategy and competitive performance of a company, including the moderating effects of ECSC.

Findings

Competitiveness is positively affected by EMS and GPS. ECSC moderately affects the links among EMS, GPS, and competitiveness. Regarding the differences between the impacts of ECS and ECC on performance, only ECS acts as a moderator in the enhancement of EMS and GPS. Thus, ECS positively contributes to enhance competitive advantage. In contrast to perceptions, ECC directly improves firm competitiveness.

Research limitations/implications

The findings support the understanding that the moderating role of ECSC may explain the conflicting results in environment-performance linkages. In particular, suppliers and customers could impact EMS and GPS in direct or interactive ways, or both, to enhance the performance of a firm.

Practical implications

Significant performance improvements are influenced not only by the real environmental commitment of companies to internal green management but also by the positive relations of firms with their external cooperative capabilities in environmental relationships with chain partners.

Originality/value

This research is the first to suggest and empirically test the moderating impacts of ECSC on the relationship between corporate environmental strategy and competitiveness.

Details

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

Keywords

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Article
Publication date: 5 October 2015

Sanjay Kumar, Jiangxia Liu and Jess Scutella

Supply chain structure, characteristics, and applicable policies differ between developing and developed countries. While most supply chain management research is directed…

Abstract

Purpose

Supply chain structure, characteristics, and applicable policies differ between developing and developed countries. While most supply chain management research is directed toward supply chains in developed countries, the authors wish to explore the financial impact of disruptions on supply chains in a developing country. The purpose of this paper is to highlight the importance of effective supply chain management practices that could help avoid or mitigate disruptions in Indian companies. The authors study the stock market impact of supply chain disruptions in Indian companies. The authors also aim to understand the difference in financial implications from disruptions between companies in India and the USA.

Design/methodology/approach

Event study methodology is applied on supply chain disruptions data from Indian companies. The data are compiled from public news release in Indian press. A data set of 301 disruptions for a ten-year period from 2003-2012 is analyzed. Stock valuation of a company is used to assess the financial impact.

Findings

The results show that Indian companies on average lose −2.88 percent of shareholder wealth in an 11-day window covering the event day and five days pre- and post-disruption announcement. A significant stock decline was observed as early as three days prior to announcement, indicating possibility of insider trading and information differentials between investors. Irrespective of the location and responsibility of a disruption, companies experience significant negative returns. Company size, book-to-market ratio, and debt-to-equity ratio were found to be insignificant in affecting the stock market reactions to disruptions. The authors also compiled supply chain disruptions data for US companies. When compared to the US companies, Indian companies register a significantly higher stock decline in the event of a disruption.

Research limitations/implications

Supply chain disruptions data from India and the USA are analyzed. Broad applicability of results across countries may require studying other developing countries. The research demonstrates potential effectiveness of investment in supply chain management initiatives. It also motivates research focussed specifically on supply chains in developing countries.

Practical implications

Supply chain decision makers in India could benefit from investment in disruptions management and mitigation practices. The results provide a valuation of effective supply chain management. The findings provide guidance for investors in making decisions when supply chains face disruptions.

Originality/value

The paper studies the financial consequences of supply chain disruptions in a developing country. The study is valuable because of increasing globalization, outsourcing, and the economic role of developing countries.

Details

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

Keywords

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