The dark side of logistics outsourcing - Unraveling the potential risks leading to failed relationships

We identify and empirically examine the potential risk factors and their structural relationships that can cause a logistics outsourcing relationship to fail. Specifically, we investigate how the relationship risk as perceived by apparel wholesalers as user firms influence their evaluation on the asset and competence entrusted with their logistics service providers, which are logistics outsourcing risk factors considered important by the former in determining continued relationships with the latter. The results highlight the need for relationship management by user firms to mitigate the risks in asset and competence specifically invested in logistics service providers for their outsourced activities.     

Regional traffic impacts of logistics-related land use

The outsourcing of logistics activities to logistics service providers leads to a demand for new logistics-related land development. At the moment (minimising) regional traffic generation is not a major decision criterion for site selection and development. For a sound traffic impact assessment, information on trip generation of logistics facilities like transfer depots, distribution centres and warehouses is necessary. Surveys conducted in the case study region Hamburg, Germany, provide such information. Applying the survey results, different logistics land use development scenarios are assessed in this paper. The results show that strategic location of logistics areas can reduce traffic and traffic impacts.     

Intangible resources of competitive advantage: Analysis of 49 Asian airlines across three business models

Without sustainable competitive advantage firms have limited economic reasons to exist and will decline. Competitive advantage concerns the factors which provide competitive strength. This paper is based upon the resource-based view which considers firm resources to be heterogeneous and which believes that firms only have a small bundle of core resources irrespective of their overall performance. This research establishes the role of 36 intangible resources for 49 Asian airlines across three business models: network airlines; low-cost subsidiaries from network airlines; and low-cost carriers. It uses the VRIN framework which examines whether resources are valuable, rare, inimitable, and non-substitutable. Research participants distribute points between their chosen seven resources according to their perceived role in firm performance. Resources which meet all four requirements of VRIN are considered core competences and sources of sustained advantage. Across all 49 Asian airlines, the top-three most important resources of advantage are slots, brand, and product/service reputation. While these core resources are predictable, they have not previously been proven within the context of airlines, let alone geographically and by airline model. Results show that the core bundle of resources vary for each model, which helps to explain the difference in performance across models, and that some resources which were expected to be high-ranking, such as organisational culture and customer focus, were not.     

Design and planning for green global supply chains under periodic review replenishment policies

We quantify the impact of jointly optimizing strategic network design and tactical inventory planning on the cost and CO₂ emissions of multi-echelon logistics networks. The obtained insights indicate that longer optimized replenishment cycles reduce a node’s transportation cost and CO₂ emissions but increase its inventory costs. Moreover, under a fixed replenishment cycle, a node’s service level increases when supplied by a satellite warehouse. Finally: (i) the costs of implementing optimal green network design decisions could be misleading if inventory planning is neglected, (ii) greening of supply chains could become expensive, (iii) current legislative CO₂ ton prices hardly influence logistics networks.     

Managing the risks of outsourcing: Time,quality and correlated costs

Cost, quality and time to market are three main factors for outsourcing management. A game theoretic model is used to design optimal outsourcing contracts including these three factors for a buyer and a supplier under Full Information (F) case and Asymmetric Information (A) case where the buyer does not share her internal variable cost information with the supplier. Optimal outsourcing contracts are derived and results of numerical experiment are also presented. Several insights of managing the outsourcing risks due to the Asymmetric Information are given for various industries, like cost-sensitive industry, time-sensitive industry, and quality-sensitive industry.     

A qualitative study of outsourced aeronautical maintenance: The case of Brazilian organizations

The outsourcing of aeronautical maintenance has been criticized for the quality of services offered. According to the literature, airlines have contracted repair stations to perform maintenance activities on their aircraft or parts when attempting to optimize resources (time, facilities, personnel, money). The attempt to reduce costs in maintenance activities and regulatory deficiencies can lead to maintenance management practices that could threaten equipment airworthiness. Therefore, the aim of this research was to evaluate whether outsourced aeronautical maintenance is aligned to common industrial maintenance management practices. To achieve this goal, qualitative exploratory research was conducted on Brazilian repair stations. For data collection, a questionnaire was developed based on seven factors related to aircraft maintenance. The data revealed that a mismatch exists between the best maintenance management practices and expected repair station performance.     

对建设遵义车务段战略装车点的认识与思考

战略装车点是全面改进货运作业流程的高效运输与管理模式。结合遵义车务段规划、建设战略装车点的实践,探讨如何通过科学选点和布局、改善作业设施、充分运用现代信息技术,建设战略装车点,提高运输综合效率。     

From traditional to professional Air Navigation Service Provider: A typology of European ANSP business models

This paper proposes a business model typology based on factor analysis of mixed data sourced from the 2016 Air Traffic Management Cost Effectiveness (ACE) benchmarking report, European air navigation service provider (ANSP) websites and annual reports. It provides ANSP management insight into the key strategic business model decisions to be made, their resulting models as well as how these business model decisions contribute to ATM/CNS profits. The findings suggest that ANSPs can benefit from increasing both their level of corporatisation as level of outsourcing. The paper can be used by ANSP managers to position themselves within the European air navigation services (ANS) landscape and as a discussion starter for future business model developments; or by ANS customers to better understand the strategic objectives of the ANSPs.     

Booking and flying with low‐cost airlines

The first part of the paper develops a theoretical framework for the analysis of strategic behaviour of European low‐cost airlines that emphasises the role of product differentiation. The second part uses original survey data to assess the effectiveness of low‐cost airlines' distribution strategies. Finally, an econometric model is developed to assess the joint impact of the factors affecting the level of the fares charged by low‐cost airlines. The evidence suggests that, among other things, the highest prices normally are paid for tickets bought between 30 and 8 days before departure, and thus indicates an original pricing strategy that differentiates low‐cost airlines from traditional carriers. Copyright © 2002 John Wiley & Sons, Ltd.     

Modeling and optimizing the integrated problem of closed-loop supply chain network design and disassembly line balancing

This paper describes an integrated model that jointly optimizes the strategic and tactical decisions of a closed-loop supply chain (CLSC). The strategic level decisions relate to the amounts of goods flowing on the forward and reverse chains. The tactical level decisions concern balancing disassembly lines in the reverse chain. The objective is to minimize costs of transportation, purchasing, refurbishing, and operating the disassembly workstations. A nonlinear mixed integer programming formulation is described for the problem. Numerical examples are presented using the proposed model.     

Multi-objective optimization for planning liner shipping service with uncertain port times

This paper considers a joint tactical planning problem for the number of ships, the planned maximum sailing speed, and the liner service schedule in order to simultaneously optimize the expected cost, the service reliability and the shipping emission in the presence of port time uncertainty. The problem is formulated into a stochastic multi-objective optimization problem at the operational level. The relationships between the objectives and the decision variables are established. A simulation-based non-dominated sorting genetic algorithm is then presented to solve this problem. A case study is provided to illustrate the results and the application of the model.     

TPL的物流服务水平与物流成本决策

物流服务水平与物流成本之间存在效益悖反,对于第三方物流,进行物流服务水平与物流成本的权衡与决策是一项重要的战略性工作。借助经济学中的弹性概念进行TPL服务-成本能力分析,用以表明不同环境下物流成本对于物流服务水平变动的敏感程度,结合竞争环境和竞争对手水平、顾客需求等相关影响因素,实现对物流服务水平与物流成本的综合决策。     

Human resource management at Star Alliance: Pressures for standardization and differentiation

In this paper, the need and potential for standardization of human resource management (HRM) at the Star Alliance, the largest strategic alliance in the airline industry, is analyzed. The study shows that, in contrast to other functions such as procurement, IT systems, facilities and marketing, in the area of HRM pressures for differentiation are still dominant. Possible explanations for this are discussed.     

Efficiency and patterns of service mix in airport companies: An input distance function approach

In this paper an input distance function approach is used to evaluate efficiency and technological characteristics of Italian airport companies for the period 2000–2005. This approach is robust to deviations from neoclassical paradigm in terms of cost-minimizing behavior. Duality relationship between the input distance function and the shadow cost function is exploited to derive cost complementarities among outputs. Empirical findings are used to discuss the economic implications connected to changes in airport organization, involving in particular outsourcing of handling operations and development of commercial activities.     

Travel stimulated by international students in Australia

The international student (IS) market in Australia has been a growing export economy. Because of the traditional definition of tourism being that of ‘a leisure activity outside a usual work scope area for a period of less than a year’, tourism research on IS has been minimal. This research investigates the tourism demand stimulated by IS in Australia. Besides tourism statistics, the research involved 23 IS in focus groups who provided responses of their tourism activities while in Australia. The research illustrates that such IS are significant contributors to tourism by visiting places of interest, purchasing souvenirs, casual work in hospitality and visits by friends and relatives. Copyright © 2006 John Wiley & Sons, Ltd.     

Endogenous control of service rates in stochastic and dynamic queuing models of airport congestion

Airport congestion mitigation requires reliable delay estimates. This paper presents an integrated model of airport congestion that combines a tactical model of capacity utilization into a strategic queuing model. The model quantifies the relationships between flight schedules, airport capacity and flight delays, while accounting for the way arrival and departure service rates can be controlled over the day to maximize operating efficiency. We show that the model estimates the average and variability of the delays observed at New York’s airports relatively well. Results suggest that delays can be extremely sensitive to even small changes in flight schedules or airport capacity.     

Criteria for services of air cargo logistics providers: How do they relate to client satisfaction?

This study investigates the factors that influence client satisfaction with logistics outsourcing, taking into account the client's subjective attitude towards service criteria for air cargo logistics providers. We define the construct of service criteria of air cargo logistics providers, provide an empirical validation of the construct, develop scales for service criteria and client satisfaction with desirable psychometric properties, and explore theoretical and practical applications. Empirical evidences support five key service criteria factors of importance; delivery value, knowledge innovation value, service value-added, information value, and performance satisfaction value. Four key client satisfaction factors are reliability, agility, customization, and flexibility. A significant relationship between the service criteria of air cargo logistics providers and client satisfaction is also identified.     

The travel cost method and the economic value of leisure time

Recent estimates of high values for tourist related recreation USA amenity values indicate that allocation of basic water and terrestrial resources to recreation activities should be given precedence over conventional market oriented activities that often degrade or even extirpate the resource. We discuss at length the travel cost method (TCM), a survey based technique that quantifies the non‐market benefits of trips to recreation sites. The TCM has been cast in the role of an ‘umpire’ in recent resource allocation debates. Understanding the key role of the TCM in the debate will aid tourist agency officials throughout the world. This article is a U.S. Government work and is in the public domain in the U.S.A.     

现代物流对武汉汽车工业的支撑作用

以神龙汽车公司为例,对武汉汽车工业发展现状和存在问题进行分析,说明现代物流对武汉汽车工业具有支撑作用,利用现代物流可以降低企业的库存水平和零部件采购成本,以及通过将物流业务外包,可提高企业的核心竞争力。     

Ride service outsourcing for profit maximization

Transportation service subcontracting is becoming an effective means of business for many leading carriers to maintain their market dominance and profitability. This research is based on an outsourcing practice in one of the few largest limousine fleet companies in the US, whose (mostly advance) demand for services often exceeds its capacity. We develop a model for ride service outsourcing. A column generation method is proposed. The outsourcing decision is made simultaneously with pre-scheduling of in-house ride services as well as staffing. Test with services data indicates that the developed method dramatically improves the carrier’s outsourcing decision.