Theodore P. Stank

Collaborative planning: supporting automatic replenishment programs

Automatic replenishment systems that restock inventory based on actual demand triggers rather than relying on long‐range forecasts and layers of safety stock have been implemented in a great number of firms in recent years. Now these same firms are taking supply chain cooperation to another level through involvement in collaborative planning/forecasting/replenishment (CPFR). The results of a recent survey assessing current levels of involvement in cross‐organizational collaboration among firms utilizing automatic inventory replenishment are presented. The results provide strong support for positive associations between high levels of CPFR and implementation of operating process change and information system capabilities. Results supported only a very weak association between CPFR and effectiveness in achieving operational performance goals.

Applying the strategy‐structure‐performance paradigm to the supply chain environment

Purpose – The paper extends a central paradigm of the strategy literature to the supply chain environment to foster a better understanding of the elements characterizing strategic decisions that lead to supply chain structural development and performance.Design/methodology/approach – Strategic literature is reviewed to provide a fuller explanation of the strategy‐structure‐performance (SSP) research stream. SSP foundational principles are linked to supply chain management concepts, and synthesized into an explanatory framework. Propositions for future research are presented based upon the framework.Findings – An iterative relationship among internal firm strategy, structure, and performance measurement systems is indicated, implying that firm supply chain strategy should be complementary with that of supply chain partners.Research limitations/implications – The paper presents a content analysis of existing research and a conceptual framework emerging from it. No data were collected nor were research propo...

A framework for transportation decision making in an integrated supply chain

There has been little conceptual work that comprehensively examines the changing role of the corporate transportation function in the modern business environment. Successful managers today require a broad view of transportation management’s role and responsibilities in an integrated supply chain. This paper clarifies the major transportation decision areas and introduces a framework that positions corporate transportation management within the overall integrated supply chain environment. The framework portrays initial transportation decisions as strategic, long‐term decisions that focus on the overall supply chain transportation system. Once decisions are understood at this level, the decision‐making scope becomes increasingly tactical in nature, focusing on operations that implement the overall system decisions.

Lean Launch: Managing Product Introduction Risk Through Response‐Based Logistics

New product launch research has identified four strategic issues that involve activities essential to introduce a new product to its target market. The sum of these decisions is critical to new product success. Substantial research has focused on decisions guiding the proper product, price, and promotion mix to favorably impact market goals. Considerably less research has centered on determining how place capabilities such as logistics and supply chain relationships impact launch performance. Logistics and supply chain collaboration—the processes involved in planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from the point of origin to point of consumption for the purpose of conforming to customer requirements—can greatly reduce risk associated with new product launch. They combine to provide a structure to facilitate rapid response to developing demand by location and intensity. In this article, an effort is made to fill the gap in extant knowledge regarding new product launch strategies by reviewing relevant literature and comparing traditional launch strategies based on anticipatory demand forecasts with alternative lean launch strategies based on the principles of response-based logistics. The result is a lean launch model for continued empirical testing and managerial review. The article contrasts traditional logistics support of new product launch with an emerging logic called lean launch strategy. The traditional launch strategy is forecast driven and is based on anticipatory logistics (push). The lean launch strategy is formulated on principles of postponement and is based on response-based logistics (pull) and supply chain management. Response-based logistics systems provide flexibility that enables better management of inventory levels. Improved replenishment times and in-stock availability of products from a centralized inventory allows managers to rapidly react to actual demand. Lean launch enhances successful introduction by allowing greater flexibility in product variant selection while minimizing out-of-stock potential. Lean launch also can cut losses in product launch failures by reducing launch inventory exposure. Finally, lean launch can improve chances of new product success by helping limited volume technical successes achieve profitability.

Linking firm culture and orientation to supply chain success

Purpose – To date research focused on cultural dimensions and the role it plays in supply chain management (SCM) has been limited. Executives interviewed as part of the background investigation for this paper report that until an organization can bring about effective cultural change, SCM will remain an artifact of corporate myth. Prior to driving change, however, more must be known about the dimensions of supply chain oriented culture. Seeks to address this.Design/methodology/approach – This paper develops a framework based upon the culture literature to identify and define critical dimensions of cultural orientation that impact implementation of SCM.Findings – The framework serves as the basis for research propositions suggesting likely dimensions of supply chain cultural orientation. Propositions also link these dimensions to behaviors that encourage successful SCM.Research limitations/implications – The research will enable managers to identify the critical factors upon which to focus resources as the...

The new supply chain agenda: a synopsis and directions for future research

Purpose – The purpose of this paper is first, to summarize the findings from the book The New Supply Chain Agenda (Slone, Dittmann, and Mentzer 2010). Second, it reviews associated academic research, identifies critical knowledge gaps, and suggests areas for future academic research that will aid scholars and managers in improving supply chain management (SCM) performance.Design/methodology/approach – The paper summarizes and extends The New Supply Chain Agenda and juxtaposes the major elements of that book with a content review of existing literature in logistics and SCM to align gaps in knowledge with a call for future research.Findings – The findings deepen understanding of the complexities and interrelationships prevalent among the five pillars and help identify new ways to improve the performance impact of SCM initiatives.Research limitations/implications – Major areas for future research within the broad topics of talent management, technology, internal integration, external collaboration, and chang...

Enhancing Service Responsiveness: The Strategic Potential of EDI

Reports a recent survey of warehousing firms which examined the extent of involvement in electronic data interchange (EDI) and the impact which EDI has had on the firms′ operations and service capabilities. Warehousing firms providing EDI services to their customers were found to be better able to accommodate selected customers′ requests than firms not providing EDI services. Additionally, the firms providing EDI service were offering more services to their customers than firms not providing EDI service. Based on the research results, EDI firms appear to be more flexible and more responsive to customer requests. EDI offers significant potential for helping firms to gain competitive advantage and enhance customer responsiveness.

Some Propositions on Thrid Party Choice: Domestic vs. International Logistics Providers

The increasingly competitive and deregulated environment for domestic logistics is forcing firms to reexamine private provision of logistics services. Domestic logistics services may increasingly be provided by third party logistics companies, as they are in the international logistics realm. This paper reports results of an exploratory review that compares the influence of key forces that drive the logistics outsourcing decision in the domestic and international setting. The results of this review are used to develop propositions for future research and suggest an agenda for empirical testing. Results should influence strategies pursued by providers and purchasers of third party logistics services.

Computerization: Supporting Integration

Fast and flexible low‐cost data processing and information systems have transformed business operations. Reductions in production setup times, lot sizes and inventory levels have yielded substantial improvements in productivity and profitability. The continuing changes sweeping American business impose significant impacts on the distribution (or logistics) function within manufacturing and merchandising firms. This research assesses current levels of computerization within logistics and examines the relationship between computerization and implementation of the integrated logistics concept. Significant differences between integrated and non‐integrated firms concerning levels of computerization are identified. Integrated firms have developed the information support systems necessary to position their organizations for competitive success.

Insights from a logistics partnership

Highlights insights gained from five years of operating experience in a logistics partnership between a large US retailer and a provider of international logistical service. The insights gained from this partnership show that a third‐party logistics provider can help a firm achieve substantial results. The path to achieving these results is not without its difficulties, but many of these problems can be anticipated and appropriate actions taken to minimize their disruption. Establishing a measurement system that allows easy and integrated reporting of the status of the enterprise is essential if real progress is to be made in a logistics partnership. An extensive formal and informal communication strategy is essential to address the issues arising from the difficulty of combining two different organizational cultures. Finally, this partnership has shown that if the rewards for both partners are real, tangible, and substantial the partnership can endure.