International Journal of Logistics Economics and Globalisation (11 papers in press)
Reverse Logistics Operations in a Pharmaceutical Retail Environment
by Haidar Abbas, Jamal A Farooquie
Abstract: All sales and deliveries are not always final; neither at consumers end nor at the end of intermediaries. At some point in time, the consumers &/ retailers may return/dispose of their purchased product for a number of reasons. When it comes to medicines, consumers, as well as retailers, may often have some medicines accumulated which, at times, become undesired for them. For retailers, this stock which they want to get rid of may have accumulated either due to poor sales, more than expected customer returns, the shorter life cycle of certain medicines etc. Therefore, there must be a provision of another similar flow or chain which could carry these undesired medicines backward for recovering value or proper disposal. Here one comes to the concept of reverse logistics.
This research aims at providing a detailed account of reverse logistics management dealing with the reverse flow of undesired medicines, various related issues and its performance, with respect to Indian pharmaceutical retail environment. What is being done (return and disposal practices), why it is being done (drivers), how it is being done (return conditions) and what inhibits (barriers) are the major issues related to reverse logistics management covered under this study. Besides these issues, the performance of reverse logistics programs was evaluated from the perspectives of retailers (medical stores and dispensaries of hospitals & nursing homes). The findings of this study are expected to establish some evidence regarding the prevalent reverse logistics practices and related issues for academicians and policy makers at government and corporate levels.
Keywords: Reverse Logistics; Reverse Supply Chains; Returns Management; Recall of Medicines.
Determinants of Profitability in the Indian Logistics Industry
by Madhuri Saripalle
Abstract: The Indian economy has one of the highest transportation and logistics cost as a percentage of gross domestic product (13%) globally. This paper analyzes trends in profitability and discusses some key macro and micro level factors influencing the Indian Logistics industry comprising road transport logistics, storage and distribution. It discusses the role of macroeconomic factors such as tax policy in influencing the logistics network complexity, which in turn increase logistics costs. At a micro level, the paper uses firm-level data of 201 companies from Prowess database and estimates an econometric model to analyze major determinants of profitability in the logistics sector. The study finds that liquidity, market share, debt-equity, and age are significant determinants of profitability in the logistics sector.
Keywords: Profitability; Transportation; Supply chain; Logistics; Third Party Logistics (3PL); India.
Enablers of Warning and Recovery Capabilities in Supply Chains: An Empirical Study
by Santanu Mandal
Abstract: There is a growing challenge for supply chain firms to address uncertainties in a positive manner. Research on resilience and risk mitigation strategies have undersigned two effective capabilities: warning and recovery. However, the literature on the development of these capabilities are yet to be developed. The current study adds to this nascent literature by exploring the role of organization culture and lean production processes in generating warning and recovery capability. Survey instruments were developed based on established sources (with necessary adaptation) and were utilized for survey. 212 completed responses were obtained using online survey and were analyzed using partial least squares. Findings showed that organization culture positively influences warning capability and recovery capability. Lean production processes although positively contributes for the development of recovery capability; its influence on warning capability was not supported. Implications for managers were also provided.
Keywords: warning; recovery; organization culture; lean processes; resilience.
How Logistics Performance Promote the International Trade Volume? A Comparative Analysis of Developing and Developed Countries
by MEILING WANG, CHANGHWAN CHOI
Abstract: This paper analyzes how logistics performance affects international trade volume and compares the different effects between developing and developed countries by employing a gravity model with panel data from 43 countries in 2010, 2012 and 2014. The findings show that logistics performance index (LPI) is positively related to the level of bilateral trade volume. It is very interesting that an improvement of logistics performance index has more impact on export volume than on import volume. And it has a more powerful influence on developed countries trade volumes than on developing countries trade volumes. To improve the competitiveness of developing countries exports in a global economy, developing countries should first and foremost prioritize improvement in procedural sectors like custom process, tracking; in the long run, they would develop infrastructure due to the budget constraint.
Keywords: Logistics; International Trade; Developing & developed countries; Logistics performance index (LPI).
Competitive Logistics Capability for Sustainable Organizational Performance: A Study of the Textile Industry in India
by Siddhartha Rajagopal, Bala Krishnamoorthy, Vivekanand Khanapuri
Abstract: The purpose of this paper is to explore how sustainable organizational performance can be achieved by acquiring competitive logistics capabilities. Data from a national sample of
113 operations and senior managers in Home Textile Companies was gathered. Regression models have been built between competitive logistics capabilities and each of the variables of cost leadership, organizational flexibility, customer service and organizational performance to determine the effects and relationships. The results indicate that acquiring competitive logistics capabilities like organizational flexibility and customer service have a greater positive impact compared to cost leadership on organizational performance. With organizations seeking to deliver value to the market all the time in order to remain competitive, do efforts to develop competitive logistics capabilities result in improved organizational performance? This study provides evidence that acquiring competitive logistics capabilities can lead to enhancement of organizational performance.
Keywords: Logistic Capability; Cost Leadership; Organizational Flexibility; Customer Service; Organizational Performance.
Applications of the Kraljic-Tesfay Portfolio Matrix and the Hyper-Hybrid Coordination in Global Supply Chain Analysis
by Yohannes Yebabe Tesfay
Abstract: This paper is a continuation of the Tesfay (2014) paper on the Bullwhip effects and Tesfay (2015) on the causes of the Bullwhip effect and its implications to the theory of organizational coordination. The major finding of the Tesfay (2014) paper suggests that one way or another Bullwhip effects attacks all the business partners in the supply chain. The major finding of the Tesfay (2015) paper suggests that the solutions from the transaction cost economics are still insufficient to produce the most efficient organizational coordination. This paper applied the panel data regression models and seemingly unrelated regression models on the experimentally simulated data from Beer distribution game. The Cochrane- Orcutt autoregression recursive estimation result of the seemingly unrelated regression models prevails that the Bullwhip effects can be caused by both intra-organizational and inter-organizational coordination of the business partners in the supply chain. The effects of the intra-organizational coordination on the Bullwhip effects showed the drawback of the existing theory of organizational coordination. The analysis showed that in order to make the supply chain more efficient and effective a new coordination type which was not discovered by the transaction cost analysis has to bring together and practiced by practitioners. We named the new coordination type the named hyper-hybrid coordination. The hyper-hybrid coordination helps us to modify the Kraljic portfolio model. Finally, we have shown some the applications of the hyper-hybrid coordination in the supply chain of agricultural products, the airline industry and the global supply chain.
Keywords: Beer distribution game; Bullwhip effects; theories of organizational coordination; stochastic models; hyper-hybrid coordination and Kraljic-Tesfay portfolio model.
Trade concentration and dynamics of the Norwegian imports: An Application of R-MANOVA Model
by Yohannes Yebabe Tesfay, Per B. Solibakke
Abstract: This article proposes to analyse trade concentration and dynamics of the Norwegian imports expenditures by applying the two-way random effect MANOVA (R-MANOVA) model. The MANOVA model factors considered in this econometric analysis are origin continents or countries (spatial effects) and the business cycles (dynamic effects). The R-MANOVA model fit estimation results confirms that the Norwegian import trade is sustainable in both short and long run controlling for the effect of both origin continent and business cycles. More importantly, the expenditure and the share of Norwegian imports across the continents show considerable dynamics. The overall econometric estimation results suggest that across all continents the Norwegian import expenditure is increasing with time. However, the share of the Norwegian import expenditures across continents is relatively stable. The analysis confirms that European exporters will be the leading partners for Norwegian import expenditures in future trade patterns. The ranking of the remaining continents in descending order will be Asia and Oceania, North and Central America, South America and Africa.
Keywords: Trade Concentration; Trade dynamics; MANOVA models and Norway.
Quality issues in the Indian e-commerce delivery Model from viewpoint of young people
by Rajiv Aserkar, Shashank Verma
Abstract: Purpose The purpose of this paper is to identify the issues that affect product delivery in the Indian e-commerce market. It further focuses on the determinants that influence customer satisfaction with delivery quality in e-commerce and aims to establish the relationship between the delivery quality and the determinants identified.
Design/methodology/approach A research survey was conducted to determine the significance of factors influencing the quality of delivery in e-commerce in India. The data were then analysed using the PLS method to establish the relationship between the determinants and the e-commerce delivery quality.
Findings The research finds that e-commerce consumers in India evaluate the quality of e-commerce delivery through factors like the quality of the product delivered, the efficiency of the logistic service provided, flexible and friendly return policies and how well the customer is served from order inception to after the delivery of the product.
Practical implications The study recommends that the determinants identified in this research are employed by Indian e-commerce companies, which will add a competitive edge to their deliveries and aid them in serving their customers effectively.
Originality/value This paper attempts to provide a deeper insight into the e-commerce delivery model in India and the elements that significantly influence the customers as far as e-commerce delivery is concerned. The research focuses on the aspect of product delivery and fulfilment by investigating the responses of e-customers in India, thereby finding the link between customer expectations and e-commerce delivery.
Keywords: Electronic commerce; Delivery; Quality issues; India.
Dimensional weight pricing in transportation and logistics: U.S. shipper knowledge and best practice responses in the e-commerce era.
by James Kling, Jack Ampuja
Abstract: With the rise of e-commerce, a large number of shippers are experiencing increased logistics costs due to dimensional weight pricing. Dim weight pricing calculates a ratio of package volume to weight in order to penalize low density shipments by charging higher rates. This paper explains the methods and rationale of dimensional weight pricing by parcel and LTL carriers. The results from a survey of over 100 U.S. shippers is presented to better understand shipper knowledge and responses to dim weight pricing and to document increasing shipping costs. Shippers were also asked to identify best practices in packaging and negotiation that were used to counter these increased logistics costs. The implications of this rate practice on supply chain costs and practices in e-commerce are discussed; the most serious impact is on manufacturers and distributors of low density products and those unable or unwilling to invest in technologically sophisticated solutions. rnrn
Keywords: e-commerce; dimensional weight; shipping density; packaging; parcel; LTL; freight transportation pricing; dim weight; fulfillment.
POST-HARVEST LOSSES DURING THE TRANSPORTATION OF GRAINS FROM FARMS TO AGGREGATION POINTS
by José Vicente Caixeta-Filho, Thiago Péra
Abstract: All of Brazils competitive advantages and productive gains tend to bleed away as its farm products pass through the various post-harvest stages, mainly due to logistic bottlenecks and deficiencies. To improve the prognosis for food security, one can avoid losses along the supply chain. This research is intended to adapt indicators and mitigation strategies derived through research in the United States to reduce post-harvest losses, especially in the transport of grains, and make this information available in Brazil. The implementation of a specific policy designed to prevent post-harvest loss in the US by either a public or private agent was not encountered during this research, which makes one think that this type of care is mostly driven by the market, economics, and perhaps the farmers interest in protecting their harvested grains and taking pride in a job well done.
Keywords: losses; grains; agriculture; logistics; Brazil.
The Valuation Impact of Carbon Reporting: Assessing Firm-Specific and Extended Supply Chain Carbon Disclosures of S&P 500 Firms
by Ozgur Isil
Abstract: Prior corporate sustainability studies that examine the association between corporate environmental performance (CEP) and corporate financial performance (CFP) primarily focus on firm-specific environmental impacts, avoiding considerations of the much larger environmental impacts within firms extended supply chains. In addition, prior literature has concentrated more on the performance of regulated pollutants, less on unregulated pollutants. This study focuses on these two gaps by examining three interrelated questions: (1) the association between firm-specific greenhouse gas (GHG) performance and valuation; (2) the association between GHG reporting in the extended supply chain and valuation; and (3) the moderating effect of reporting GHG emissions in the extended supply chain on the association between firm-specific GHG performance and valuation. The results suggest that firm-specific GHG emission performance is positively associated with valuation, and that reporting GHG emissions in the extended supply chain affords firms an incremental valuation premium.
Keywords: valuation impact; carbon reporting; firm-specific; extended supply chain; climate change; carbon disclosure.