David J. Closs

Information technology influences on world class logistics capability

Information technology has been among the foremost topics within the logistics literature of recent years. However, there has been little empirical evidence relating logistics information system (LIS) capabilities to logistics competence. Seeks to close this gap in the research, identify particular LIS capabilities that contribute most to logistics competence, and develop an understanding of the relationship between LIS development strategy and logistics competence. A review of the LIS literature identifies relevant issues. The research findings suggest four conclusions: world class firms perceive both their logistics operating and planning systems as highly capable; internally controlled characteristics generally receive higher evaluations than criteria requiring external co‐ordination; overall logistics competence is primarily influenced by logistics operating timeliness, usage driven formatting, and flexibility; and LIS development strategy does not significantly influence performance evaluations.

INTERNAL AND EXTERNAL LOGISTICS INFORMATION TECHNOLOGY INTEGRATION.

While it is widely believed that information technology is a major differentiator of logistics performance, there has been limited research that empirically tests or characterizes this relationship. The current research investigates the relationship between logistics information technology (LIT) and logistics service performance. The objective of this research is to develop a framework for managers to understand logistics information technology applications and to justify LIT expenditures. The results offer direction for characterizing logistics information technology. The research describes how internal logistics information integration and customer integration can influence customer service performance. These results begin to dimensionalize logistics information technology and the impact it has on strategy and performance.

Using activity‐based costing to reengineer the reverse logistics channel

Activity‐based costing (ABC) is a tool used by managers to more closely approximate the “true costs” of operations. The application of ABC in logistics is more commonplace today than just a few years ago, though still far short of universal. Sound tracking of operational costs is critical when pursuing the logistics objective of providing desired customer service at the lowest total cost. This research illustrates an actual application of ABC to reverse logistics activities performed across supply chain organizations. More specifically, a case study of a Michigan beverage distributor and retailer that collect empty beverage containers for recycling purposes is presented. The case study demonstrates the ABC application in detail and discusses the re‐engineering of supply chain‐wide processes resulting from the analysis.

The Role of Information Connectivity in Making Flexible Logistics Programs Successful

Purpose – Aims to conceptualize flexible logistics programs and information connectivity as two important aspects of logistics flexibility and to examine the role of information connectivity in making flexible logistics programs successful.Design/methodology/approach – A hierarchical regression model is used to test the research hypotheses.Findings – The results suggest that flexible logistics programs are strongly related to all performance dimensions, and that information connectivity fully mediates the relationship between flexible logistics programs and asset productivity and partially mediates the relationship between flexible logistics programs and delivery competence.Research limitations/implications – Future theoretical research can develop a detailed conceptualization of logistics flexibility. In this paper, the constructs are developed utilizing an exploratory factor analysis approach. Future research utilizing confirmatory factor analysis approach will allow a better validation of the performan...

The risk of second-tier supplier failures in serial supply chains: Implications for order policies and distributor autonomy

Abstract As organizations decrease inventory, the potential impact of a supply disruption increases. However, due to supply chain structural changes, the likelihood of a disruption may be less. Additionally independent supply chain actors may react to policy changes, changing supply chain configurations and perhaps reducing loss magnitudes. If risk is a product of likelihood and magnitude, does higher inventory reduce an organization’s supply related risk? This paper examines the supply risk issue within the context of a second-tier supply failure, and is grounded in inventory and resource dependency theories. By evaluating risk assessment in a simulation environment, exploratory findings suggest that increased inventory in a tiered supply chain can sometimes increase supply risk rather than decrease it. Managerial insights into the effects of supply chain stability and coordination are provided. By taking a systems perspective of supply risk management, organizations will be better able to manage supply risk concerns.

Realizing business value of agile IT applications: antecedents in the supply chain networks

This research develops a framework for organizational value creation from agile IT applications. Based on the four themes in the business value research—business process perspective, complementarities, application level of analysis, and extent of use—three antecedents (organizational fit, process assimilation, and network adoption) are identified as pre-requisites for realizing the value of agile supply chain applications. Advanced planning and scheduling (APS) systems are used as examples, and two case studies for their implementation in the electronics and consumer goods industry are reported to support the propositions. The theories of diffusion of innovation, complementarities, network externalities, and technology structuration are applied to develop the propositions for fit, assimilation, and network effects. Information sharing and industry clockspeed are identified as the moderating factors in the proposed model. The framework has both managerial and research relevance. The research guides managers regarding ways to more fully realize the value of agile applications and forms a basis for future research on the business value of IT applications.

Logistics information technology practice in manufacturing and merchandising firms – An international benchmarking study versus world class logistics firms

Logistics information technology (IT) can be a significant source of competitive advantages. Examines logistics IT practices for different industries and global regions and identifies any IT gaps between world class logistics firms and their more average (baseline) counterparts. Overall, the merchandising firms were perceived to have a lead over the manufacturing firms for most of the nine logistics IT issues probed. Among the baseline firms, the European firms seemingly outperformed the North American and Pacific Rim firms in the five‐year improvement in LIS capability, LIS resource share increase, and the adequacy of LIS in meeting the firm’s requirements. The North American firms took a significant lead in issues related to EDI, barcode, and real time communications. However, all these baseline firms probably have to look up to the world class logistics firms for excellency in major IT practice, confirming the notion that being world class does make a difference.

Supply chain security practices in the food industry: Do firms operating globally and domestically differ?

Purpose – This paper compares firms purchasing and/or selling food products internationally to those with domestic supply chains in order to determine if international firms: place greater managerial importance on security; and are more likely to engage supply chain partners in security‐related verification and information exchange. The purpose of this paper is to explore the link between security initiatives and firm performance in terms of security outcomes, product quality, and customer service.Design/methodology/approach – A series of one‐way ANOVA tests are used to assess the differences between firms with international and domestic supply chains. Additionally, cluster analysis is conducted to group firms based on their performance levels.Findings – Initial results indicate respondents with international supply chains perceive that their firms place more importance on security and are more likely to assess the security procedures of supply chain partners. Results further indicate that, in general, re...

The impact of integrating return components planning with purchasing decisions on purchasing performance A contingency perspective

Purpose – The purpose of this research is to apply a simulation experiment to investigate the impact of new components purchasing and used components recovery strategies on multiple performance measures. The research compares the effectiveness of these strategies, given different levels of uncertainty for the return flow from the contingency perspective.Design/methodology/approach – The experimental design is implemented using an ARENA simulation model. Simulation results are used to test the proposed research model. Multivariate analysis of variance is used for data analysis.Findings – The results demonstrate that while a proactive purchasing strategy reduces total system cost, it also negatively affects service level. While there are some general conclusions, it is equally important to make decisions under specific business contexts.Practical implications – The primary implication is that a firm has to align its purchasing strategy and recovery strategy with its business strategy. Given the tradeoff on ...

Brazilian logistics: a time for transition

Este artigo descreve as dimensoes da logistica usadas por empresas de classe mundial para diferenciar suas capacidades em relacao aos concorrentes. Estas dimensoes, que tem sido identificadas por meio de pesquisa internacional, produzem empresas com excelencia logistica. Tais dimensoes sao aqui apontadas e descritas. Usando estas dimensoes como base, o artigo desenvolve as implicacoes para os gerentes de logistica brasileiros ao serem requisitados para a transicao a um nivel de classe mundial de desempenho logistico.