Article

AN APPROACH TOWARDS OVERALL SUPPLY CHAIN EFFICIENCY

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... LLPs and 4PL providers notably offer complete logistics service without necessarily possessing the physical assets (means of transport, warehouses, etc.). They may be defined as the single connection between a customer and the logistics operators, being responsible for hiring other 3PL and 2PL, and managing the logistics process end-to-end (Lu andSu, 2002 cited in Krakovics, 2008). Whether they own the means of production, warehouses and trucks (the case of LLP) or not (the case of 4PL provider), these LSPs mobilize their logistics engineering competencies to optimize flows and select the best providers. ...
... This means that they are usually associated with the offering of multiple, bundled logistics services, rather than just isolated transport or warehousing functions (Leahy et al., 1995). An interesting point of view explaining the differences between the first-, second-, third-and fourth party logistics providers is presented by Lu andSu (2002 via Krakovics, 2008). According to their work 1PL is a small company that executes its own logistics; 2PL is a provider of simple services, such as storage or transportation; 3PL is a logistics operator that offers a whole range of services and management. ...
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Currently, intensified globalization and consequent competitive pressures have reemphasized the importance of logistics service providers (LSPs) in managing logistics processes as well as customer and supplier relationships within the supply chain management. This requires them to develop their business performance measurement systems (BPMSs) towards supply chain performance measurement systems (SCPMSs) a scope of which depends on the LSP advancement thus whether it operates as a third-party logistics (3PL) provider, a lead logistics provider (LLP) or a fourth party logistics (4PL) provider. However research on the topic of LSP SCPMSs remains scarce as it usually concentrates on SCPMSs of the focal companies orchestrating the whole supply chain (SC). At the same time LSPs have an exceptional impact on SC performance as the operators connecting the SC links, and since they operate within a portion of or the whole supply chains of the sectors they serve, they need to develop not only the internal BPMSs, but also the external SCPMSs. The present paper aims to consolidate knowledge on supply chain performance measurement systems perceived and developed from the perspective of LSPs and makes a threefold contribution to the discussion. First, it proposes the LSP SCPMS definition. Second, it develops a research framework that distinguishes key issues which need consideration when examining the LSP SCPMSs, namely the LSP advancement, the LSP SCPMS components such as applied subsystems, approaches, ICT technologies and metrics including methods for metric selection followed by the LSP SCPMS adoption consequences, characteristics and life cycle and finally contextual factors constituting stimuli and barriers for the LSP SCPMS development. Then a research agenda is presented to guide future research on the LSP SCPMSs. This work is designed to inspire researchers to continue expanding the knowledge about how to develop high-performing SCPMSs for different supply chain players including LSPs. Key words: LSP supply chain performance measurement system (LSP SCPMS), logistics service providers (LSPs), research framework
... Overall, in logistics services human labor is a dominant force. Furthermore, logistics services are often outsourced (Lu and Su, 2002). The need to take many different aspects and stakeholders involved into account makes precise control difficult (Ellram et al., 2004). ...
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Purpose This paper aims to analyze the application of Lean Six Sigma (LSS) framework for supporting continuous improvement (CI) in logistics services. Both the lean philosophy and the Six Sigma methodology have become two of the most important initiatives for CI in organizations. The combination of both alternatives – LSS – brings significant benefits for companies applying this method, and its influence in logistics services can be relevant. Design/methodology/approach A case study on the logistics services of a large consumer electronics company is performed. In this sector, high quality in logistics services is crucial. Using within-case and cross-case analyses, the paper discusses the implementation of LSS in two internal logistics processes. Findings The paper identifies important implementation aspects when applying LSS to logistics services, such as CI structure, strategic analysis, cross-functional teams and process management. Furthermore, the paper discusses the potential in logistics services of the DMAIC (define, measure, analyze, improve and control) approach and tools such as value stream mapping, SIPOC (supplier, input, process, output, and customer) and process mapping. Practical implications The paper analyzes two logistics processes where LSS has been applied – a payment process and a request-to-ship process. The analysis of both processes offers relevant information about organizational implementation in a logistics services environment about process improvement and about the use of LSS tools. Originality/value First, this paper addresses the gap in literature about LSS and logistics’ activities. Furthermore, the case company, with more than 9,000 employees and distributing its products to more than 100 countries, constitutes a valuable source of information to obtain insights into the implications of implementing LSS in logistics services.
... An interesting point of view is presented by Lu and Su (2002). According to their work 1PL is a small company that executes its own logistics; 2PL is a provider of simple services, such as storage or transportation; 3PL is a logistics operator that offers a whole range of services and management. ...
Article
Recent developments in logistics have led to the use of third-party-logistics firms in different industries. However, outsourcing the logistics operation to a 3PL requires close monitoring of the logistic system performance, and also of the service level effectively delivered to customers. Issues related to the concept, definition and design of a quantitative system to measure such performance are discussed in this paper, and the experience of building a performance evaluation system is also described. The system was designed from the point of view of a 4PL firm contracted by a chemical company in Brazil to contract and monitor the work of a 3PL. The authors have developed a method to calibrate an S-curve used to evaluate the performance indicators. In the application case, the design of a set of indicators to evaluate the services of this 4PL firm in the Chemical industry in Brazil is described. The calibration method was applied to help the evaluation process by the 4PL firm in practice, and showed a great potential for application in the whole segment of logistics operators and companies.
Chapter
Outsourcing can be a very effective strategy to increase operational performance and improve customer service; at the same time, that minimizes capital investment, freeing up capital to other important projects according to the company strategy that will increase revenue and profitability. However, when outsourcing is not performed in the right way, as there are several examples in the marketplace, it can also decrease performance and hurt customer service, reducing company competitiveness. Therefore, it is critical to establish a robust Outsourcing Execution Process to reduce risks of vendor failure due to lack of operational capability, performance management, and conflict of culture between 3PL and the company, just to enumerate a few possible real life problems. This chapter provides a broad and updated introduction of transportation and distribution operation, and based on literature review and practical experience from the authors, several best practices are reviewed to support outsourcing execution in transportation and distribution operation.
Conference Paper
Free convection flow of nanofluid through an exponentially accelerated porous plate with variable viscosity in the presence of radiation and chemical reaction has been discussed in this paper. Here we have considered variable viscosity in the effects of radiation and chemical reaction in both the cases. The governing equations are transformed into non-dimensional form by the as usual mathematical technique of transformation. Then the obtainednon-dimensional nonlinear partial differential equations are solved by using explicit finite difference technique. Also, the numerical results has been calculated by computer programming languageCOMPAQ VISUAL FORTRAN 6.6a. Then the numerical solutions for velocity, temperature and concentration profiles are obtained graphically for various dimensionless parameters and discussed after stability test by using graphics software tecplot- 9. The skin friction coefficient, Nusselt number and Sherwood number are also investigated by tabular form.
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zet Günümüz dünyasında dile pelesenk olmuş küreselleşme ile birlikte Dünya'da birçok şey değişmekte, teknoloji gelişmekte, sınırlar kalkıp mesafeler daralmaktadır. Bugün Türkiye'den gönderilen bir ürünün yarın herhangi bir Avrupa ülkesine ulaşması mümkün hale gelmiştir. İşletmeler açısından gönderilen ürünlerin istenilen yere, istenilen zamanda ve eksiksiz ulaştırılabilmesi rekabet edebilirlikleri açısından büyük önem taşımaktadır. İşletmelerin bu rekabet gücünün oluşmasında en büyük rol lojistik faaliyetlerindir. Lojistik faaliyetlerde dış kaynak kullanımı; işletmelerin asıl işlerine, ana faaliyetlerine daha fazla zaman ayırmaları anlamına gelmektedir. Bu çalışmada üçüncü ve dördüncü parti lojistik kavramları ele alınmaktadır.
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A dynamic technological development that promotes the dynamics of the overall environment imposes, as a condition of survival, a flexible and adaptable, or dynamic behaviour of a modern enterprise in accordance with changing business conditions. Traditional business management focused on the efficiency of the qualitative transformation processes (production), the organizational structuring and optimization of the status of separate business subsystems in order to optimize the functioning of enterprises as a system, cannot, due to the recent condition of permanent discontinuous changes, result in a successful modern enterprise. A targeted network linking of all processes through the logistics system into a value creation system - a company as a socio-economic system of the environment highlights the holistic approach and the orientation towards flows as the basis for the dynamic optimization of modern business operations. Logistic management as a model for controlling space-time transformations of goods, energy, information and knowledge through qualitative transformation processes of an enterprise, according to the needs of the users and the goals of the enterprise, is simply imposing itself as an area of exploration of the possibilities to increase the success of modern business operations. The paper explores the potential for success which is derived from the application of the logistic concept of management and the perspective for the development of the competitiveness of enterprises by focusing on logistics as a management function within the globalized environment of permanent discontinuous changes.
Chapter
Supply chain management (SCM) is related to the management of all activities along a network of organizations to provide a good or a service to final customers. The efficiency of these activities can have a great impact on customer's satisfaction and cost reduction. However, SCM is not just the sum of activities along the supply chain but, instead, it must consider the organization, supervision, and control of all activities in the chain from an integrated and collaborative perspective aiming to provide a competitive advantage. From this point of view, an increase in the dimension and complexity of the decision problems involved is expected, as several actors with different goals must be considered to administrate efficiently the activities within the supply chain. © Springer International Publishing AG, part of Springer Nature 2018. All rights reserved.
Chapter
One of the most important topics in the study of the management of contemporary manufacturing and distribution is Supply Chain Management (SCM). Over the past decade, the business literature as well as the popular press have been filled with books and articles describing the dramatic changes occurring in productive processes and organizational structures emanating from the radical breakthroughs taking place in management methods, the implementation of business process reengineering techniques, the globalization of the marketplace, and the explosion in information and communication technologies. Today, academics, consultants, and practitioners alike have begun to explore how these often divergent threads can be woven together to form compelling new strategies, providing companies with exciting marketplace opportunities and the capability to uncover whole new competitive regions in the search for marketplace advantage.
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This publication contains reprint articles for which IEEE does not hold copyright. Full text is not available on IEEE Xplore for these articles.
The reason for this research originates from the time- and functional dependencies between firms’ activities and resources in supply chains. These dependencies cause vulnerability. The principal objective of this research is to conceptualize the construct of vulnerability in firms’ inbound and outbound logistics flows. The vulnerability construct of this research consists of two components: disturbance and the negative consequence of disturbance. This research is based upon a two-phase process utilizing sequential triangulation. It is proposed that the vulnerability in the inbound logistics flows from sub-contractors, and the vulnerability in the outbound logistics flows to customers, may be measured and evaluated by four principal dimensions, namely: service level, deviation, consequence and trend. In addition, a model of inbound and outbound vulnerability scenarios in supply chains is introduced for teaching and training purposes, as well as to position and compare the outcome of replication studies of vulnerability in firms’ inbound and outbound logistics flows.
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Sumario: In a time of shortening product life cycles, complex corporate joint ventures, and stiffening requirements for customer service, it is necessary to consider the complete scope of supply chain management, from supplier of raw materials, through factories and warehouses, to demand in a store for a finished product. Hewlett-Packard has developed a framework for addressing the uncertainty that plagues the performance of suppliers, the reliability of manufacturing and trasnportation processes, and the changing desires of customers. The author describes several cases in which entire product families have been reevaluated in a supply chain constext. The methodology he presents should help others to manage their own supply chains more successfully
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