Service bundling opportunities for a 3PL in the value network

Thesis (S.M.M.O.T.)--Massachusetts Institute of Technology, Sloan School of Management, Management of Technology Program, 2003.This electronic version was submitted by the student author. The certified thesis is available in the Institute Archives and Special Collections.Originally written by two authors for two different degrees: Massachusetts Institute of Technology, Sloan School of Management, Management of Technology Program (Mr. Chew); and, Massachusetts Institute of Technology, Engineering Systems Division, Technology and Policy Program (Mr. de Graeve). Mr. Chew graduated June 2003; Mr. de Graeve did not graduate until June 2004, and submitted the following thesis with title: Framework for the study of governance in the supply networksIncludes bibliographical references (leaves 96-99).The 3PL industry is currently experiencing rapid growth, high fragmentation and intense competition. In order to survive and stay relevant going forward 3PLs need to re-assess their current position in the value network and develop a clear strategy to position themselves as strategic business partners for the long term. This thesis first explores the supply chain challenges and needs of the major stakeholders in the value network. It then tries to create a roadmap identifying the major opportunities which 3PLs should optimize in order to become true value-added service providers and long term strategic business partners in the value network.by Chee Mun Chew & Denis de Graeve.S.M.M.O.T

On-demand warehousing: Main features and business models

none4Tornese F.; Unnu K.; Gnoni M.G.; Pazour J.A.Tornese, F.; Unnu, K.; Gnoni, M. G.; Pazour, J. A

Merge-in-transit (MiT) retailing: rapid fulfillment, mass customization, and postponement

Purpose: The paper discusses the links between Rapid Fulfilment, Mass Customization, and Postponement in the light of Merge-In-Transit Retailing. The value offering of MiT can be exploited only if this operational strategies can be understood for implementation. Research Approach: The paper reviews concepts in the literature of highly regarded journals in Logistics, SCM, Operations Management to build a conceptual framework framing MiT and the supporting concepts. Findings and Originality: With the explosion of on-line retailing in the last decade a deeper understanding of MiT is required for it evolution in the practical feel. So far limited work has been published on MiT and their operational supporting strategies. Research Impact: The paper contributed in the deeper understanding the logistics under the Internet Retailing therefore his impact is promising. Practical Impact: Managers and people in charge in the design and operations of logistics systems supporting internet retailing can find this paper of interest as the fourth linked concepts have not been yet discussed together

Empirical Evidence of RFID Impacts on Supply Chain Performance

Purpose - The purpose of this paper is to investigate the actual benefits of radio frequency identification (RFID) on supply chain performance through the empirical evidence. Design/methodology/approach - The research reviews and classifies the existing quantitative empirical evidence of RFID on supply chain performance. The evidence is classified by process (operational or managerial) and for each process by effect (automational, informational, and transformational). Findings - The empirical evidence shows that the major effects from the implementation of RFID are automational effects on operational processes followed by informational effects on managerial processes. The RFID implementation has not reached transformational level on either operational or managerial processes. RFID has an automational effect on operational processes through inventory control and efficiency improvements. An informational effect for managerial processes is observed for improved decision quality, production control and the effectiveness of retail sales and promotions coordination. In addition, a three-stage model is proposed to explain the effects of RFID on the supply chain. Research limitations/implications - Limitations of this research include the use of secondary sources and the lack of consistency in performance measure definitions. Future research could focus on detailed case studies that investigate cross-functional applications across the organization and the supply chain. Practical implications - For managers, the empirical evidence presented can help them identify implementation areas where RFID can have the greatest impact. The data can be used to build the business case for RFID and therefore better estimate ROI and the payback period. Originality/value - This research fills a void in the literature by providing practitioners and researchers with a better understanding of the quantitative benefits of RFID in the supply chain

SUPPLY CHAIN INTEGRATION IN THE FOOD AND CONSUMER GOODS INDUSTRIES

The interorganizational structures necessary to implement and achieve the logistical performance improvements identified in the Efficient Consumer Response (ECR) initiative and related supply chain management concepts are difficult to develop. Firms continue to struggle to implement integrated programs and techniques, particularly with respect to changing operating structures, relationships, and mindsets to facilitate true supply chain integration. This research explores the logistical strategies and structures used by selected food and consumer goods firms to integrate their supply chains. It illustrates effective integration strategies and identifies critical success factors and barriers to successful ECR implementation. A framework is used to guide managers in developing the competencies essential to integrating the supply chain and to establishing the relationships necessary to operate in an ECR environment. The framework, entitled Supply Chain 2000, depicts supply chain value creation as achieving synchronization and coordination across four critical supply chain flows: product/service; market accommodation; information; and cash.Industrial Organization,

Technology adoption in small and medium-sized logistics providers

Purpose - The main aim of the research is to shed light on the role of information and communication technology (ICT) in the logistics innovation process of small and medium-sized third party logistics providers (3PLs). Design/methodology/approach - A triangulated research strategy was designed using a combination of quantitative and qualitative methods. The former involved the use of a questionnaire survey of small and medium-sized Italian 3PLs with 153 usable responses received. The latter comprised a series of focus groups and the use of seven case studies. Findings - There is a relatively low level of ICT expenditure with few companies adopting formal technology investment strategies. The findings highlight the strategic importance of supply chain integration for 3PLs with companies that have embarked on an expansion of their service portfolios showing a higher level of both ICT usage and information integration. Lack of technology skills in the workforce is a major constraint on ICT adoption. Given the proliferation of logistics-related ICT tools and applications in recent years it has been difficult for small and medium-sized 3PLs to select appropriate applications. Research limitations/implications - The paper provides practical guidelines to researchers in the effective use of mixed-methods research based on the concept of methodological triangulation. In particular, it shows how questionnaire surveys, focus groups and case study analysis can be used in combination to provide insights into multi-faceted supply chain phenomena. It also identifies several potentially fruitful avenues for future research in this specific field. Practical implications - The paper's findings provide useful guidance for practitioners on the effective adoption of ICT as part of the logistics innovation process. The findings also provide support for ICT vendors in the design of ICT solutions that are aligned to the needs of small 3PLs. Originality/value - There is currently a paucity of research into the drivers and inhibitors of ICT in the innovation processes of small and medium-sized 3PLs. This paper fills this gap by exploring the issue using a range of complementary research approaches

Fusão em trânsito no comércio de varejo: uma perspectiva de micronegócio

This paper suggests links between postponement, mass customization and rapid fulfilment in the light of merge-in-transit retailing (MIT). The paper asserts that the value offered by MIT implementation can be exploited only if these operational strategies are well understood. An extension of this concept is explored to critically consider whether MIT is a feasible strategy in the context of micro-businesses (MBs). MBs are usually treated as if they were big corporations that mainly follow economic-based drivers. However, the owners of MBs operate based on additional motivations such as family orientation, heritage, lifestyle, and prestige. So far, limited work has been published on MIT and strategies for operational support in the context of MBs. This paper contributes to a deeper understanding of the logistics of internet retailing, making its impact promising. Its orientation towards MBs provides an original review of a sector that is often neglected. Managers and those in charge of the design and operations of logistics systems supporting internet retailing may find this paper of interest, since the four linked concepts have not previously been discussed together. The paper may be of particular interest to MB owners

Merge-in-transit retailing: a micro-business perspective

This paper suggests links between Postponement, Mass Customization and Rapid Fulfilment in the light of Merge-In-Transit Retailing (MiT). The paper discusses that the value offered by MiT implementations can only be exploited if these operational strategies are well-understood. An extension of this concept is explored to critically weight whether MiT is a feasible strategy in the context of Micro-Businesses (MBs). MBs are usually treated as if they were big corporations that mainly follow economic-based drivers. However, MBs’ owners operate according to additional motivations such as family-orientation, heritage, life style or prestige. So far limited work has been published on MiT and their operational supporting strategies in the context of MBs. The paper contributes in the deeper understanding the logistics under the Internet Retailing therefore his impact is promising. Its orientation towards MBs provides an original review to a sector that is usually neglected. Managers and people in charge in the design and operations of logistics systems supporting internet retailing can find this paper of interest as the four linked concepts have not been yet discussed together. The paper can be of particular interest for MBs’ owners

Knowledge Integrated Business Process Management for Third Party Logistics Companies

The growing importance of logistics as well as the increasing dynamic complexity of markets, technologies, and customer needs has brought great challenges to logistics. In order to focus on their core competency in such a competitive environment, more and more companies have outsourced a part or the entirety of the logistics process to third party logistics (3PL) service providers. 3PL has played a crucial role in managing logistics processes within supply chain management. Logistics processes require and supply various types of knowledge for planning, developing, operating, controlling and improving business processes. Therefore, in the current knowledge era, knowledge integrated business process management (KIBPM) is of significant importance for 3PL. This work applies KIBPM in 3PL from both a theoretical and practical perspective. The methodology for this study is a combination of literature and primary source research. From the theoretical perspective, it reviews the related literature on knowledge, KM, KIBPM and 3PL. It next analyzes application potentials as well as basic theories of KIBPM in 3PL, and proposes a framework for application. Furthermore, it studies the issues, knowledge sources and content, as well as KM approaches from the strategic and operational perspectives. In particular, it discusses the dynamics, logistics networks, business process networks and tacit knowledge sharing in 3PL. From the practical perspective, a case study of a leading 3PL provider demonstrates the drivers, practices and approaches of KIBPM application. The case study is based on in-depth interviews and extensive access to the secondary data of the firm. It analyzes the core business processes, the process knowledge and key activities of KM in the formulation of business strategy and the operation of business processes in contract logistics. In addition, it applies the proposed framework in this case. Furthermore, it discusses the findings from the literature and case study that relate to the research questions, compares the differences and similarities of KM in 3PL between theory and practice, and puts forward some research and managerial implications. This study has come to the conclusion that it is more effective and efficient to integrate KM in business processes. Knowledge of market, customer requirements, partners, and competitors and collaborative KM in the logistics networks are essential when choosing competitive strategies, process designs and development strategies for business. 3PL needs dynamic capabilities to sustain competitive advantage through KM. In operation, knowledge related business procedures and domains, as well as the results in project management of warehousing, intermodal transport and cooperation between geographic networks, have considerable value for business process execution, evaluation and improvement. 3PL motivates tacit knowledge sharing and effective knowledge acquisition, production, warehousing, distribution and application with a trusting organizational culture, process oriented structure, appropriate technology, and incentive measures. However, while KM is a tool for improving the competency and performance for the organization, learning capability is more important to keeping sustainable competitive advantage in the long term for 3PL. The application of KIBPM in 3PL supports business process management at both the strategic and operational levels. It especially contributes to business development, collaborative projects, intermodal transport, and logistics service improvement

ICT Innovation Diffusion in Small Logistics Service Providers: an Empirical Survey

For companies competing in highly dynamic markets, innovation is considered a fundamental component of a successful business as it allows companies to sustain profit margins, sales growth and reduce competitors’ pressures. Information and communication technology (ICT) is essential innovation enablers especially in service companies. The focus of the paper is on the analysis of the role of ICT in innovation processes of small third-party logistics service providers (3PLs). On the basis of quantitative evidence emerging from a recent survey carried out on the Italian 3PL market, the paper analyses how ICT is used to support innovation and the factors the inhibit/facilitate the usage of ICT in such companies. Implications for supply chain innovation management are derived from the research and managerial perspectives