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Article

Chris Caplice and Yossi Sheffi

Logistics encompasses a complex set of activities which require a collection of metrics to adequately measure performance. Ideally, the performance metrics used should be…

Abstract

Logistics encompasses a complex set of activities which require a collection of metrics to adequately measure performance. Ideally, the performance metrics used should be selected and maintained as a system, so they complement and support each other and provide the decision makers with a well balanced picture of the logistics process. Often in practice, however, performance measurement systems are not formally managed or evaluated. The result is a performance measurement “system” where the interrelations between the metrics are not known, duplication is frequent, and omission is undetectable. This paper addresses this shortcoming by developing a set of evaluation criteria for logistics performance measurement systems and applying it in two case studies.

Details

The International Journal of Logistics Management, vol. 6 no. 1
Type: Research Article
ISSN: 0957-4093

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Article

Chris Caplice and Yossi Sheffi

Performance measurement in the logistics function, like all business functions, begins at the individual metric level. A performance measurement system that is well…

Abstract

Performance measurement in the logistics function, like all business functions, begins at the individual metric level. A performance measurement system that is well designed at the strategic level can be flawed at the individual metric level; the Achilles' Heel of any measurement system. The pressing need is not for the development of novel performance metrics: there is a great abundance of sufficient metrics already in existence. Rather, there is a need for a method with which to evaluate existing metrics. This paper addresses this need by suggesting a set of evaluation criteria for individual logistics performance metrics and identifying the inherent trade‐offs. A taxonomy of logistics performance metrics, organized by process rather than by function, is also presented and the metrics are evaluated using the established criteria.

Details

The International Journal of Logistics Management, vol. 5 no. 2
Type: Research Article
ISSN: 0957-4093

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Article

Yossi Sheffi

In this paper, several “disruptive” technologies are considered and the paths they have taken from the early innovation phase to full implementation are traced. The…

Abstract

In this paper, several “disruptive” technologies are considered and the paths they have taken from the early innovation phase to full implementation are traced. The technologies include: refrigeration; the automobile and highway system; incandescent lighting; the television; and, the personal computer. Each technology is traced through several steps leading from the early innovation to wide adoption. Then the same steps are applied to RFID, placing it in this historical context and speculating on the possible future adoption and impact of this technology.

Details

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

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Article

Liliana Rivera, David Gligor and Yossi Sheffi

The purpose of this paper is to analyze the benefits of logistics clustering, with the intent to explain their growth and popularity among private agents and policy makers…

Abstract

Purpose

The purpose of this paper is to analyze the benefits of logistics clustering, with the intent to explain their growth and popularity among private agents and policy makers during the last decade.

Design/methodology/approach

Because of limited knowledge about the benefits of logistics clustering a main objective of this paper is theory building. The authors employed a grounded theory approach and conducted 135 open and semi structured interviews with logistics executives, government officials, academics, and chambers of commerce representatives.

Findings

Study results revealed that, the agglomeration of logistics firms provides several key benefits to companies. Specifically, it was found that logistics clustering facilitates collaboration-related benefits, offering of value added services, career mobility for the logistics workforce within the cluster, and promotes job growth at multiple levels within the cluster. The authors offer a rich description of these benefits and the mechanisms that facilitate these outcomes.

Research limitations/implications

This paper uses a qualitative approach. Further research using a quantitative approach to measure the magnitude of the impacts and benefits of logistics clusters would be desirable.

Originality/value

This paper identifies the benefits associated with logistics clustering and thus provides justification for public authorities and private agents to invest in this phenomenon.

Details

International Journal of Physical Distribution & Logistics Management, vol. 46 no. 3
Type: Research Article
ISSN: 0960-0035

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Article

Duncan McFarlane and Yossi Sheffi

Automated Identification (Auto ID) applications can provide corporate information systems with the identity of each physical item in the supply chain in an automated and…

Abstract

Automated Identification (Auto ID) applications can provide corporate information systems with the identity of each physical item in the supply chain in an automated and timely manner. The real time availability of item identity allows other information, related to the item, to be drawn on in order to assess both the current state of the product and future actions required. In the context of supply chain operations, widespread introduction of such systems represents a major opportunity to overhaul and improve tracking and tracing systems, process control and inventory management. In the longer term, it is possible that Auto ID systems may enable a complete re‐engineering of the supply chain, by removing a number of the constraints that limit today's supply chain structures. In this paper, we review some key challenges in supply chain operations and introduce the main elements of an Auto ID system. Using a simple categorization of supply chain operations, areas for short term deployment of Auto ID are identified and opportunities for longer term re‐engineering of different sections of the supply chain are highlighted.

Details

The International Journal of Logistics Management, vol. 14 no. 1
Type: Research Article
ISSN: 0957-4093

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Article

Yossi Sheffi

On the morning of September 11th, 2001, the United States and the Western world entered into a new era ‐ one in which large scale terrorist acts are to be expected. The…

Abstract

On the morning of September 11th, 2001, the United States and the Western world entered into a new era ‐ one in which large scale terrorist acts are to be expected. The impacts of the new era will challenge supply chain managers to adjust relations with suppliers and customers, contend with transportation difficulties and amend inventory management strategies. This paper looks at the twin corporate challenges of (i) preparing to deal with the aftermath of terrorist attacks and (ii) operating under heightened security. The first challenge involves setting certain operational redundancies. The second means less reliable lead times and less certain demand scenarios. In addition, the paper looks at how companies should organize to meet those challenges efficiently and suggests a new public‐private partnership. While the paper is focused on the US, it has worldwide implications.

Details

The International Journal of Logistics Management, vol. 12 no. 2
Type: Research Article
ISSN: 0957-4093

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Book part

Castillo Juan Marcos, Guerra de Castillo Zoila Yadira, Arosemena Pablo Alcides and Kelso Ada Carolina

Since the sixteenth century, Panama has been an important logistic node for communication between South America, North America, and Europe for trade and load transit…

Abstract

Since the sixteenth century, Panama has been an important logistic node for communication between South America, North America, and Europe for trade and load transit. Panama ports move more than 700 million tons per year while Panama Canal moves 325,428,407 tons, according the statistics of 2014. Most of the maritime cargo moved through Panama is transit and transshipment cargo. Consequently, and due to the geographical position and future opportunities based on the expansion of the Panama Canal, Panama could be a strategic hub of global trade flows. This is an opportunity to develop value-added logistics services (VALS) in Panama Canal. Thus, this research aims to present a preliminary analysis of VALS industry in Panama, identifying critical variables that could enhance these services. This is a survey-based research, using interviews with the main suppliers of VALS in Panama and some of their customers. The methodology applied to analyze the data is means-end value hierarchy model (MEVHM), which was used to understand VALS industry in Panama and identify what is valuable to customers. Results showed that each VALS provider serves a mean of 20 companies, 22% of them are national clients while 78% are international clients, which recognized the geographical position as their main reason to work with logistics experts from Panama. Furthermore, 92% of them were very satisfied or satisfied with the service received. Main VALS in Panama are labeling, tagging, and packaging. In contrast, areas to be improved are customs procedures, national logistics processes, product’s traceability, competitive prices, and human resources training.

Details

Supply Chain Management and Logistics in Latin America
Type: Book
ISBN: 978-1-78756-804-4

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Abstract

Details

Transport Economic Theory
Type: Book
ISBN: 978-0-08-045028-5

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Case study

Russell Walker and Joanna Wilson

In March 2000 a fire broke out at the Royal Philips Electronics plant, damaging its supply of semiconductor chips. Nokia Corporation and Ericsson LM relied on these chips…

Abstract

In March 2000 a fire broke out at the Royal Philips Electronics plant, damaging its supply of semiconductor chips. Nokia Corporation and Ericsson LM relied on these chips to produce their cell phones; together they received 40 percent of the plant's chip production. Both companies were about to release new cell phone designs that required the chips. At Nokia, word of the setback spread quickly up the chain of command. Nokia's team, which had a crisis plan in place, sprang into action. With an aggressive, multipronged strategy, Nokia avoided any cell phone production loss. In contrast, the low-level technician who received the information at Ericsson did not notify his supervisors about the fire until early April and had to scramble to locate new sources for the chips. This search delayed production and proved a fatal blow to Ericsson's independent production of mobile phones. Nokia's handling of its supply chain disruption provides a dramatic example of how a company's strategic risk management can alleviate financial disaster and lay the groundwork for success in the future. Perturbations in supply chain management are inevitable, and grow harder and harder to assess as the marketplace becomes more globalized.

Students will learn the following concepts:

Details

Kellogg School of Management Cases, vol. no.
Type: Case Study
ISSN: 2474-6568
Published by: Kellogg School of Management

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Case study

Timothy J. Pettit

The i-AM Tablet is an evolving gadget in a world of fast-paced technological change. Facing a new partnership with a major customer, the market for the i-AM is about to…

Abstract

The i-AM Tablet is an evolving gadget in a world of fast-paced technological change. Facing a new partnership with a major customer, the market for the i-AM is about to explode! This case explores the innovative concept of Supply Chain Resilience as the CEO of i-AM, Inc, develops a strategic plan for expansion. This case is based on theory and practices evolved at the Dow Chemical Company.

Details

Council of Supply Chain Management Professionals Cases, vol. no.
Type: Case Study
ISSN: 2631-598X
Published by: Council for Supply Chain Management Professionals

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