Susanne Hertz

Strategic development of third party logistics providers

The growth of the Third Party Logistics (TPL) business has caused many firms from different industries to enter the field. We are interested in how their different strategies develop over time with a special focus on how they balance between general problem solving capability and the degree of customer adaptation. In the development of their strategy the newly entered firms shown to be highly influenced by existing business and its network. However, at a later stage the case firms were all focused on moving into more advanced and complex services (4pl type of services) without considerations to their traditional business strategy. We have also identified some issues of importance when managing the continued TPL business strategy. One issue is about the organisation of the TPL business and its need for neutrality from traditional business. The next issue is about the internationalisation of the TPL business and the need of a partly different pattern and network. Finally, the issue of coping with strategic alliances, mergers and acquisitions seems vital for understanding and developing the business.

Customer‐oriented cost cutting: process management at Volvo

Drawing on an in‐depth case study of the Volvo automobile company’s strategy in the early 1990s, before the Ford takeover in 1999, this paper demonstrates how policies designed to reduce inventory costs and slim the distribution pipeline can affect a business’ network of suppliers and distributors in unexpected ways. It also shows how the implementation of cost reducing reengineering projects naturally lead to sub‐optimization and a need to consider higher‐level processes. In the Volvo illustration a manufacturer’s reengineering of its distribution chain evolved into a complete recasting of its order fulfillment process, and an adoption of a process management structure. The paper traces the effects on the network of distributors and dealers and shows how Volvo’s new structure curtails the distribution role of foreign sales subsidiaries and shifts their tasks towards market analysis, demand forecasting and customer service in foreign markets. It also shows how a process management perspective impacts a firm’s value chain, marketing function and organizational structure. In the end, the case demonstrates how a division can cut costs and still become more customer‐oriented – and become a more valuable asset for a diversified corporation.

Supply Chain Myopia and Overlapping Supply Chains

Purpose – The paper seeks to understand and analyse how integration changes in one supply chain are influenced by the overlap between chainsDesign/methodology/approach – The paper discusses the concepts of supply chain, firm network, overlap and integration. It takes a dynamic perspective focusing on continuing processes of change in the degree of integration within and between networks. The three examples are based on more than 70 interviews over a long period of time of firms involved in the transportation, automotive and construction industries.Findings – The paper finds that the overlap between supply chains in terms of actors, resources and activities could seriously delay, hinder and increase costs to the process when changing the degree of integration in one chain. Therefore, supply chain myopia might lead to an increase in the total costs of a firm. Further, there is a trade‐off between the costs of integration in the focal chain and increasing costs arising from decreased integration in overlappi...

The dynamics of international strategic alliances : A study of freight transport companies

Strategic alliances have historically been an important way of internationalizing for transport companies, in part because of the rules and regulations governing transportation and transport companies in different countries. Another important reason is the necessity to access domestic networks for transport in foreign countries. Transport companies, therefore, have a history of forming, developing, and even breaking strategic alliances, usually with other transport companies. As many countries have deregulated or harmonized their rules and regulations concerning transport, conditions have changed. Furthermore, the manufacturing industry has developed its own international networks of distributors, sales, and production subsidiaries. Today, many industrial production subsidiaries are large autonomous units that are going through their own process of internationalization.

The coordination roles of relief organisations in humanitarian logistics

ABSTRACT The number of organisations involved in relief work in general and humanitarian logistics specifically is large and increasing, creating new complexity. In this paper we analyse different types of coordination and roles in two case studies of the humanitarian cluster system based on its initial development and the Kenyan Post-election crisis. The different and unclear roles of the organisations create significant problems before and after cluster activation and deactivation. Individual organisations take on many roles in the cluster system and beyond it in terms of coordination. The clarity of the roles affects the need for and ease of coordination. We suggest a simple basic categorisation of roles as a starting point for developing this concept in the field of humanitarian logistics and connect this to coordination.

Emergency preparedness planning in developed countries : the Swedish case

Purpose – The purpose of this paper is to understand the needs of the supply-chain (SC) network when coping with permanent and temporary demands, this paper analyzes the Swedish emergency preparedness SC network. This network comprises planning procedures and resources, as well as numerous organizations and other participants in civil society that take part in the system to cope with threats and ongoing crises. Planning constitutes a critical infrastructure because the system must develop the ability to shift SC functions from permanent to temporary networks in ongoing crises and war. Design/methodology/approach – A research study is performed based on data gathered by three qualitative methods concerning the SC network of emergency preparedness planning. Findings – This study demonstrates the relevance of a wide empirical field challenging several theoretical perspectives of the SC network in preparedness planning and the shift to ongoing crises. Further research targeting key capabilities is needed to f...

Challenges and conflicts in sustainable supply chain management: : Evidence from the heavy vehicle industry

The purpose of this paper is to increase the understanding and explore the challenges and conflicts in sustainable supply chain management (SSCM) through empirical examples from the heavy vehicle industry in Sweden and China. An exploratory study of the case company’s supply chains in two countries is conducted for this paper. The major components of the empirical data are interviews with the company’s representatives and its downstream supply chain members in Sweden and China, as well as workshops with the logistics industry’s representatives in China. The findings show that the firms perceive the challenges on the regulatory and organisational levels. The conflicts can be found between several stakeholder groups, the main focus seems to be on environmental and economic aspects. Life-cycle solution for the vehicles’ utilisation is valuable but there are challenges to employing it, especially in the Chinese context. The results show that intensified international collaboration on environment and traffic safety can help tackle challenges and ease the conflicts in sustainable supply chain management.

Exploring the dynamics of global sourcing development over time - – the case of IKEA

This research aims at contributing to the literature on global sourcing and particularly to the literature on global sourcing development over time. Using case study materials on the home furnishing retailer IKEA, this research constitutes a picture of the sourcing landscape of IKEA from the 1950s onward. The case of IKEAs global sourcing development over time is discussed over three dimensions: sourcing market development (where?), sourcing scope development (what?), and sourcing mode development (how?). The results of the study imply that modelling the linkages between the dimensions and the overarching operational principles of the firm provides a more comprehensive view on how, and why, global sourcing development evolves over time.