Coping with the postponement boundary problem: an empirical investigation in global food supply chains

Purpose – The postponement boundary problem entails that duties and cross-border trade complexity can lead companies to geographically postpone operations to downstream global facilities. The present study aims at investigating the problem to provide insights into the drivers behind the choice of different postponement strategies for global food supply chains. Design/methodology/approach – A single case study was conducted considering an Italian company exporting olive oil toward the United States. Two global postponement strategies, previously formalized in the literature, were tailored for food supply chains. A multi-methodological approach was adopted, combining data obtained through exploratory case research with empirically grounded analytical modeling. A sensitivity analysis was also performed, to investigate outcomes related to the considered problem when changing key parameters. Findings – Bulky and heavy packing materials account for a big percentage of finished products’ volume and weight, and this can deeply affect strategies’ cost-effectiveness. Postponing packaging operations could allow for taking advantage of lower tariffs levied on bulk goods, contributing to significantly lower duties to be paid. However, important trade-offs could arise related to the required investments, and the fiscal regulatory frameworks must be carefully examined. Originality/value – This study offers an empirical investigation of the postponement boundary problem, which is largely unexplored in the current literature. It also tackles an understudied empirical context as global food supply chains. It summarizes the drivers behind and explores the costs related to the implementation of different strategies, offering an original quantitative approach that could support practitioners’ decision making. Lastly, it formalizes five propositions that could pave the way for further research inquiries

Improving eco-efficiency through waste reduction beyond the boundaries of a firm: Evidence from a multiplant case in the ceramic industry

To pursue eco-efficiency, one of the most important principles is the sustainable use of resources. The challenge in resource use improvement lies in a clear assessment of resource utilization. However, this evaluation is currently performed within the scope of a company and such an approach is not sustainable anymore in a world with increasingly complex production systems. This paper provides a decision support system (DSS) to disclose where wastes absorb resource capacity of a whole production system beyond the boundaries of a firm. In this way, an intervention priority plan can be established to effectively improve the eco-efficiency of production systems by considering interactions among players of a multiplant or supply chain context. An implementation of the DSS is proposed for the ceramic industry to test it and explore the potential benefits. Results confirm that the DSS can effectively enable different actors to understand how significant inter-firm saving opportunities can be identified

A Critical Comparison of Alternative Distribution Configurations in Omni-Channel Retailing in Terms of Cost and Greenhouse Gas Emissions

New opportunities and challenges forced by the ever-increasing importance of the online channel have arisen for retailers. The retailing industry is moving to a new phase, in which the distinctions between traditional and online channels disappear, namely omni-channel (OC) retailing. At the same time, the awareness of environmentally sustainable processes has been enhanced around the world and the environmental impact that results from the online order fulfilment process is becoming a key issue for logistics managers. The new challenge is to understand how multiple channels can be synergistically managed to provide a seamless customer experience, taking an economic and environmental perspective simultaneously. Retailers need to define the distribution configuration for serving the online demand, making decisions on the integration level between online and traditional channels. In this paper, we developed an assessment model of the operational costs and greenhouse gas emissions for three distribution configurations in OC retailing. The model was also applied to a real case operating in the consumer electronics industry. Results highlighted that the search for synergies between online and traditional flows in both warehouse and transport activities is a key factor for the economic and environmental sustainability of OC systems

Modeling, Analysis, and Design Insights for Shuttle-based Compact Storage Systems

Shuttle-based compact systems are new automated multi-deep unit-load storage systems with lifts that promise both low operational cost and large volume flexibility. In this paper, we develop novel queuing network models to estimate the performance of both single-tier and multi-tier shuttle-based compact systems. Each tier is modeled as a multi-class semi- open queuing network, whereas the vertical transfer is modeled using an open queue. For a multi-tier system, the models corresponding to tiers and vertical transfer are linked together using the first and second moment information of the queue departure processes. The models can handle both specialized and generic shuttles, and both continuous and discrete lifts. The accuracy of the models is validated through both simulation and a real case. Errors are acceptable for conceptualizing initial designs. Numerical studies provide new design insights. Results show that the best way to minimize expected throughput time in single-tier systems is to have a depth/width ratio around 1.25. Moreover, specialized shuttles are recommended for multi-tier systems because the higher cost of generic shuttles is not balanced by savings in reduced throughput time and equipment need

Coping with the postponement boundary problem: an empirical investigation in global food supply chains

Purpose – The postponement boundary problem entails that duties and cross-border trade complexity can lead companies to geographically postpone operations to downstream global facilities. The present study aims at investigating the problem to provide insights into the drivers behind the choice of different postponement strategies for global food supply chains. Design/methodology/approach – A single case study was conducted considering an Italian company exporting olive oil toward the United States. Two global postponement strategies, previously formalized in the literature, were tailored for food supply chains. A multi-methodological approach was adopted, combining data obtained through exploratory case research with empirically-grounded analytical modeling. A sensitivity analysis was also performed, to investigate outcomes related to the considered problem when changing key parameters. Findings – Bulky and heavy packing materials account for a big percentage of finished products’ volume and weight, and this can deeply affect strategies’ cost-effectiveness. Postponing packaging operations could allow for taking advantage of lower tariffs levied on bulk goods, contributing to significantly lower duties to be paid. However, important trade-offs could arise related to the required investments, and the fiscal regulatory frameworks must be carefully examined. Originality/value – This study offers an empirical investigation of the postponement boundary problem, which is largely unexplored in the current literature. It also tackles an understudied empirical context as global food supply chains. It summarizes the drivers behind and explores the costs related to the implementation of different strategies, offering an original quantitative approach that could support practitioners’ decision-making. Lastly, it formalizes five propositions that could pave the way for further research inquiries

Shaping the international logistics strategy in the internationalisation process

Internationalisation has increasingly become a strategic issue for companies. Ample evidence confirms the key role of logistics in supporting the company internationalisation process, especially in today’s context characterised by growing demand in speed and flexibility. Setting the logistics strategy in line with corporate objectives for each export area over time is crucial and represents a challenge for logistics directors worldwide. The aim of this paper is to address this gap by providing empirical-based evidence on how the international logistics strategy should be shaped accordingly with company internationalisation choices. The research is based on case studies with a sample of 14 exports areas of six companies. Results offer a new approach with respect to previous contributions that studied specific logistics issues separately. From a practical viewpoint, managers can benefit from a full picture of both the variables to be set up and the potential alternatives to be selected when designing the international logistics strategy

Incorporating the environmental dimension in the assessment of automated warehouses

In today's competitive context, the paradigm of sustainable development is becoming more and more significant, also in warehousing. Managers are progressively considering not only purely economic aspects but also environmental concerns. Despite such consciousness, the selection of automated warehousing solutions has been mainly based on operational and economic performance in both practice and theory so far, whereas energy consumption and environmental performance have not been adequately taken into account. To fill this lack, a model is proposed to evaluate the energy consumption and environmental impact of automated warehousing solutions. The model has been used to investigate whether and how the selection of automated solutions changes depending on the dimensions involved in the analysis (i.e. only economic, only environmental or both). The analysis has been performed considering autonomous vehicle storage and retrieval systems (AVS/RSs) and its natural alternative, i.e. automated storage and retrieval systems (AS/RSs). Results confirm the importance of considering both dimensions in the assessment of automated warehouses, as depending on the scenario, the technology selection shifts from AS/RS to AVS/RS when considering not only the economic but also the environmental impact. Additionally, this study provides new insights on the suitability areas of AVS/RSs

E-fulfilment and distribution in omni-channel retailing: a systematic literature review

Purpose – Given the progressive growth of e-commerce sales and the rising interest in omni-channel (OC) retailing amongst academics and practitioners, the purpose of this paper is to provide an up-to-date literature review on the logistics involved when moving towards OC retailing. Specifically, we have examined the main issues relating to e-fulfilment and distribution, highlighting how the topic has been developed over time, and identifying the most promising research streams for the near future. Design/methodology/approach – A systematic literature review methodology is adopted. The review is based on 58 papers published from 2002 to 2017 in 34 international journals. The papers were analysed and categorised according to their defining characteristics, methodologies adopted and themes addressed. Findings – This paper provides an overview of the main issues relating to e-fulfilment and distribution experienced by companies shifting towards OC, mapped along three dimensions: distribution network design, inventory and capacity management, delivery planning and execution. Despite the growing interest in OC retailing, many key topics are still under-represented, including the evolution of retail distribution networks, assortment planning over multiple channels, the logistics role played by stores in the delivery process and the interplay between different logistics aspects. Originality/value – The paper offers insights into the main logistics issues in MC and OC retailing, as well as highlights potential fields for further investigation. From a managerial perspective, this paper is useful for retailers adopting an OC approach to guide their future efforts concerning their business logistics model

Analytical model to estimate performances of autonomous vehicle storage and retrieval systems for product totes

In today’s competitive scenario of increasingly faster deliveries and smaller order sizes, material-handling providers are progressively developing new solutions. A recent, automated material-handling technology for unit load storage and retrieval consists of an autonomous vehicle storage and retrieval system (AVS/RS). The present paper presents an analytical model to estimate the performances (the transaction cycle time and waiting times) of AVS/RS for product tote movement. The model is based on an open queuing network approach. The model effectiveness in performance estimation is validated through simulation