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1 – 10 of 19
Article
Publication date: 6 April 2010

Mikko Kärkkäinen, Timo Ala‐Risku, Kary Främling, Jari Collin and Jan Holmström

The purpose of the paper is to evaluate the feasibility of implementing a tracking based inventory management system in temporary storage locations of a project delivery chain. To…

1390

Abstract

Purpose

The purpose of the paper is to evaluate the feasibility of implementing a tracking based inventory management system in temporary storage locations of a project delivery chain. To describe the use of tracking based inventory information for improved logistics control in equipment delivery and installation.

Design/methodology/approach

A solution design experiment was carried out in 16 temporary storage locations with one original equipment manufacturer and four installation partners.

Findings

It is feasible to implement tracking based inventory management in temporary storage locations. The challenge is to ensure that installation partners adopt the system. The benefit is improved logistics control of equipment delivery and installation for the original equipment manufacturer.

Research limitations/implications

Tracking information is more useful than conventional stock keeping in project delivery. By monitoring the dwell time of delivery items it is possible to identify and resolve problems in project execution.

Practical implications

Inventory management in temporary storage locations help project management, project logistics, and central logistics organizations carry out their work more effectively. Implementation can be based on tracking.

Originality/value

The paper's value lies in empirical tests and evaluation of tracking based inventory management in temporary storage locations.

Details

International Journal of Managing Projects in Business, vol. 3 no. 2
Type: Research Article
ISSN: 1753-8378

Keywords

Article
Publication date: 1 July 2002

Jan Holmström, Kary Främling, Jukka Tuomi, Mikko Kärkkäinen and Timo Ala‐Risku

The promise of process integration between organizations too often is unfulfilled and new approaches are needed. Distributed control is a new and exciting opportunity to build…

Abstract

The promise of process integration between organizations too often is unfulfilled and new approaches are needed. Distributed control is a new and exciting opportunity to build more effective process networks for a wide range of applications in logistics and product development. A solution based on distributed control around the consumers of services in process networks is proposed. In logistics, it is the physical delivery that becomes the focus for distributed control when you approach the service environment from the consumer perspective. In collaborative design and manufacturing, it is the product model that becomes the focus of control. A consumer perspective provides key guidelines that help manufacturers and service providers identify the design of process networks that most efficiently add value in different industries and for different applications.

Details

The International Journal of Logistics Management, vol. 13 no. 2
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 1 July 2003

Timo Ala‐Risku, Mikko Kärkkäinen and Jan Holmström

The physical distribution of goods is one of the key success factors in fast moving markets. Many companies are involved in the search for efficient distribution alternatives, as…

1733

Abstract

The physical distribution of goods is one of the key success factors in fast moving markets. Many companies are involved in the search for efficient distribution alternatives, as the lead times for customer order fulfillment need to be shortened while the costs and risks of warehousing need to be minimized. Merge‐in‐transit is a distribution model where several shipments originating at different dispatching locations are consolidated into one customer delivery, without inventories at the consolidation points. This removes the need for distribution warehouses in the supply chain, and allows the customers to receive complete deliveries for their orders. However, no guidelines are available for logistics managers on how to evaluate the applicability of merge‐in‐transit operations for their particular business situation. This paper presents a systematic procedure for the evaluation of merge‐in‐transit distribution in a specific supply chain of a company. The procedure is based on recent research on activity‐based costing models in distribution operations. Additionally, the paper clearly defines merge‐in‐transit and makes a distinction between it and cross‐docking with which it is often confused.

Details

The International Journal of Logistics Management, vol. 14 no. 2
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 16 March 2010

Jan Holmström, Timo Ala‐Risku, Jaana Auramo, Jari Collin, Eero Eloranta and Antti Salminen

The purpose of this paper is to propose demand‐supply chain representation as a tool to support economic organizing between original equipment manufacturers going downstream and…

1794

Abstract

Purpose

The purpose of this paper is to propose demand‐supply chain representation as a tool to support economic organizing between original equipment manufacturers going downstream and customers considering how to better outsource maintenance and asset management.

Design/methodology/approach

This paper is a presentation of a representation tool using a design theory template.

Findings

The concept of demand visibility point and requirements penetration point can be used to describe different ways of economic organizing as interaction between demand and supply. The proposed representation scheme supports the identification of visibility‐based changes in economic organization, such as vendor‐managed inventory and reliability‐based maintenance services.

Research limitations/implications

The paper is conceptual and requires further empirical work.

Practical implications

The representation tool can be used both by practitioners engaged in outsourcing maintenance and practitioners involved in the development of industrial service offerings.

Originality/value

The paper introduces demand‐supply chain representation to development of industrial service offerings and outsourcing of maintenance activities.

Details

Journal of Manufacturing Technology Management, vol. 21 no. 3
Type: Research Article
ISSN: 1741-038X

Keywords

Article
Publication date: 12 October 2010

Jan Holmström, Saara Brax and Timo Ala‐Risku

The purpose of this paper is to introduce a representation scheme that helps original equipment manufacturers and their customers choose between different constellations of…

2110

Abstract

Purpose

The purpose of this paper is to introduce a representation scheme that helps original equipment manufacturers and their customers choose between different constellations of visibility‐based service.

Design/methodology/approach

The paper uses conceptual modeling and analysis of visibility‐based service infusion using demand‐supply chain representations.

Findings

In the context of service infusion, increased visibility refers to the improved tracking, retention, and sharing of evidence on which service requirements are based. A representation model of three distinct provider‐customer constellations is conceptualize that reflects specific types of visibility: collaborative service supply chain management: condition‐based maintenance as a service: and visibility‐based asset management. The representation is a useful tool for comparing manufacturers' optional service strategies from the perspective of the demand‐supply chain view. The constellations vary in terms of the type of visibility provided by the customer, the provider's use of this visibility, and the potential benefits and costs of transitioning between constellations.

Research limitations/implications

The demand‐supply chain representations of visibility‐based service infusion are based on conceptual modeling and a literature review. Empirical research is needed to validate the use of the proposed representation for purposes of making comparative choices, and for exploring other purposes in decision making beyond that of comparative choice.

Practical implications

A tool for customers considering the benefits of visibility‐based services, comparative representation of constellations can help providers formulate better strategies for introducing visibility‐based services in a customer relationship.

Originality/value

The study combines supply chain theory with the service infusion literature in a novel way to produce a framework for comparative representation and decision making in visibility‐based service infusion.

Details

Journal of Service Management, vol. 21 no. 5
Type: Research Article
ISSN: 1757-5818

Keywords

Article
Publication date: 4 May 2010

Timo Ala‐Risku, Jari Collin, Jan Holmström and Juha‐Pekka Vuorinen

This paper aims to describe how performance in the project supply chain can be improved by implementing information technology solutions that track site installation and inventory.

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Abstract

Purpose

This paper aims to describe how performance in the project supply chain can be improved by implementing information technology solutions that track site installation and inventory.

Design/methodology/approach

The case study was initiated after observing unexpected problems and subsequent performance improvement in a very large project delivery. Personnel involved in the project were interviewed and project documentation was analyzed to identify the reasons for initial poor performance and the changes that lead to the observed improvement.

Findings

As the scale and complexity of a delivery project increases the role of accurate and robust tracking of installation work and inventory increases. Alignment between participants breaks down in the absence of reliable inventory tracking with potentially very adverse effects on project delivery operations. Introducing reliable inventory tracking can very quickly re‐align participants and improve overall performance in a telecom delivery project.

Research limitations/implications

The findings are based on a case study, with particular characteristics: large number of dispersed installation sites, modular product, remote sensing. Topics for further research are suggested to assess the relevance of inventory tracking in different contexts.

Practical implications

The case shows how an original equipment manufacturer (OEM) can improve project delivery performance by investing in inventory tracking between inventory drop‐off and installation on the site.

Originality/value

Project delivery has received scarce attention in a supply chain management context. This paper contributes to the body of knowledge by showing how site inventory tracking affects performance and alignment of the whole project supply chain.

Details

Supply Chain Management: An International Journal, vol. 15 no. 3
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 1 August 2004

Mikko Kärkkäinen, Timo Ala‐Risku and Kary Främling

Tracking of shipments is an important element of customer service in the transportation industry; and essential for logistics services as merge‐in‐transit. However, contemporary…

3055

Abstract

Tracking of shipments is an important element of customer service in the transportation industry; and essential for logistics services as merge‐in‐transit. However, contemporary tracking systems are designed for use within a single company, and are thus invariably inadequate for multi‐company environments. The single company focus has led to a reduced span of monitoring and a diluted accessibility of information due to proprietary tracking codes and information architectures centred on the tracking service provider. This paper presents a novel forwarder‐independent approach for solving the difficulties of tracking in multi‐company supply networks. The research argues that the proposed tracking approach is superior to contemporary approaches for material flow tracking in short‐term multi‐company distribution networks.

Details

International Journal of Physical Distribution & Logistics Management, vol. 34 no. 7
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 25 May 2012

Olli Lehtonen, Timo Ala‐Risku and Jan Holmström

The purpose of this paper is to examine how the availability of information on the equipment to be serviced affects field‐service delivery performance.

1026

Abstract

Purpose

The purpose of this paper is to examine how the availability of information on the equipment to be serviced affects field‐service delivery performance.

Design/methodology/approach

The research was performed as a case study with a capital goods manufacturer and its service network. The analysis is based on interviews, a survey of companies in the service network, and warranty records.

Findings

In the case setting, it was found that 40 percent of failed service visits were caused by a lack of information. In addition, almost one third of the service visit's duration was used to inquire for detailed information on the equipment in order to be able to diagnose the problem. Preparation of the on‐site visit is identified as a critical information enabled step for high performance field‐service delivery. In the studied case setting, access to reliable information would significantly improve the service call success ratio and shorten duration of on‐site service operations.

Research limitations/implications

The results on the importance of equipment information for the preparation of the service visit are indicative, as the findings are based on a single case study. Further research is needed on how users, service companies and original equipment manufacturers can collaborate on improving availability of equipment information to enhance performance in field‐service delivery.

Practical implications

Service call success ratio is one of the most significant cost‐saving opportunities in field‐service delivery. The paper shows how introducing an information‐enabled preparation step before making the service call can significantly improve service call success ratio, reduce maintenance costs, and improve equipment uptime.

Originality/value

The paper presents an empirical study highlighting the importance of equipment information in preparations performed prior to accessing the servicing site in field‐service delivery.

Article
Publication date: 1 March 2003

Mikko Kärkkäinen, Timo Ala‐Risku and Jan Holmström

A broad product assortment is usually valued highly by customers. However, holding a great number of product variants in inventory increases the costs of a supplier. It is…

4362

Abstract

A broad product assortment is usually valued highly by customers. However, holding a great number of product variants in inventory increases the costs of a supplier. It is possible to reduce need for warehousing with direct deliveries from manufacturing units, but customer value is reduced when orders are received on several shipments. Merge‐in‐transit is a distribution method in which goods shipped from several supply locations are consolidated into one final customer delivery while they are in transit. This article examines the effects of merge‐in‐transit distribution on delivery costs. The analysis is performed with a maintenance, repair, and operations products distributor as the case company. The evidence in this article supports the claim of merge‐in‐transit being a cost efficient distribution alternative in business networks. Based on the results advocates that companies in multi‐company networks should study the possibility of using the merge‐in‐transit delivery model.

Details

International Journal of Physical Distribution & Logistics Management, vol. 33 no. 2
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 21 March 2008

Eric Korpi and Timo Ala‐Risku

Despite existing life cycle costing (LCC) method descriptions and practicable suggestions for conducting LCC analyses, no systematic analyses on actual implementations of LCC…

10869

Abstract

Purpose

Despite existing life cycle costing (LCC) method descriptions and practicable suggestions for conducting LCC analyses, no systematic analyses on actual implementations of LCC methods exist. This paper aims to review reports on LCC applications to provide an overview of LCC uses and implementation feasibility.

Design/methodology/approach

A review of LCC cases reported in academic and practitioner literature. Case reports were compared against one another and against the defining articles in the field.

Findings

Most of the reported LCC applications were far from ideal. Compared to the methods suggested in the literature many of the case study applications: covered fewer parts of the whole life cycle, estimated the costs on a lower level of detail, used cost estimation methods based on expert opinion rather than statistical methods, and were content with deterministic estimates of life cycle costs instead of using sensitivity analyses.

Research limitations/implications

This review is limited to reported LCC applications only. Further research is encouraged in the form of a field‐based multiple‐case study to reveal context‐specific dimensions of LCC analysis and implementation challenges in more detail.

Practical implications

This review highlights the difficulty of conducting a reliable LCC analysis, and points out typical problems that should be carefully considered before drawing conclusions from the LCC analysis.

Originality/value

First systematic analysis of LCC applications that gives directions for further research on the LCC concept.

Details

Managerial Auditing Journal, vol. 23 no. 3
Type: Research Article
ISSN: 0268-6902

Keywords

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