LOGISTICS OUTSOURCING RELATIONSHIPS: CUSTOMER PERSPECTIVES

This study attempts to infuse relationship marketing theory into the study of logistics outsourcing relationships. In particular, the study demonstrates that not all of the partnerships between customers and providers of third‐party logistics services are the same in terms of their level of development. The existence of distinct levels of partnership established previously in the logistics literature is partially supported and a relationship between level of partnership development and the customer perceptions of key relationship marketing elements and outcomes is established. While exploratory in nature, these findings suggest there are benefits for the increased costs of developing closer partnerships.     

Commitment and Trust as Drivers of Loyalty in Logistics Outsourcing Relationships: Cultural Differences Between the United States and Germany

This study examines differences in loyalty formation within logistics outsourcing relationships between Germany and the United States. A model of loyalty formation on the basis of commitment and trust is developed and differences between Germany and the United States are hypothesized. They are tested based on 795 logistics outsourcing relationships in the two countries using structural equation modeling. The results indicate that these relationships differ depending on cultural traits relating to trust and commitment. The findings are relevant for practitioners and academics as they paint a more globally informed picture of loyalty formation within logistics outsourcing relationships in which to base both managerial decisions and future research.     

EXPLORING THE POTENTIAL EFFECTS OF FORECASTER MOTIVATIONAL ORIENTATION AND GENDER ON JUDGMENTAL ADJUSTMENTS OF STATISTICAL FORECASTS

The growing adoption of demand collaboration initiatives such as Collaborative Planning, Forecasting, and Replenishment (CPFR) has made judgmental adjustments of forecasts, an already widespread forecasting practice, an increasingly routine part of many logistics managers' responsibilities. This article investigates how logistics managers might improve forecast accuracy by judgmentally adjusting statistical forecasts and potential factors that may influence the effectiveness of such adjustments. In particular, our goal is to expand current knowledge in this area by focusing on individual differences, specifically motivation and gender, which have been thus far neglected in the extant literature. Our findings indicate that motivation has a significant effect on accuracy improvement and this relationship is moderated by gender. Managerial implications of these findings and future research opportunities are also presented.     

Thirsty in an Ocean of Data? Pitfalls and Practical Strategies When Partnering With Industry on Big Data Supply Chain Research

Increased volume, velocity, and variety of data provides new opportunities for businesses to take advantage of data science techniques, predictive analytics, and big data. However, firms are struggling to make use of their disjointed and unintegrated data streams. Despite this, academics with the analytic tools and training to pursue such research often face difficulty gaining access to corporate data. We explore the divergent goals of practitioners and academics and how the gap that exists between the communities can be overcome to derive mutual value from big data. We describe a practical roadmap for collaboration between academics and practitioners pursuing big data research. Then we detail a case example of how, by following this roadmap, researchers can provide insight to a firm on a specific supply chain problem while developing a replicable template for effective analysis of big data. In our case study, we demonstrate the value of effectively pairing management theory with big data exploration, describe unique challenges involved in big data research, and develop a novel and replicable hierarchical regression‐based process for analyzing big data.     

Where Do We Go From Here? Progressing Sustainability Implementation Efforts Across Supply Chains

T he findings from an inductive study conducted in the United States and Europe focused on sustainability implementation efforts across supply chains are reported. In particular, the study focuses on developing a better understanding of: “how do companies involve other members of their supply chain into their sustainability efforts?” Building upon themes that emerged from the data, a typology for the supply chain implementation of sustainability initiatives is proposed. A lack of supply chain integration was identified and companies reported a tendency toward a “mandated” implementation when extending efforts across companies. These efforts are generally initiated by the dominant companies and then forced onto the weaker upstream members. The data suggests that the merits of these initiatives are viewed as being disproportionately awarded to the dominant firm and thus did not receive full buy‐in from the other party. A common vision by both sides of this relationship is to develop a more collaborative implementation that can be supported by all the involved parties. In theoretical implications, empirical findings are viewed through the lens of several prominent management theories in order to augment and elaborate current theory. Managerial implications, limitations, and opportunities for further research are detailed.     

Proactive planning for catastrophic events in supply chains

Supply chains are increasingly vulnerable to catastrophic events such as hurricanes or terrorist attacks. This is not only true because firms are more exposed to catastrophes, but also the result of investments made in recent years to operate supply chains with fewer human and capital resources, especially inventory. Consequently, there is today less “slack” available in supply chains to deal with catastrophic events. Thus, proactively planning for these types of events should be a priority for supply chain managers. A catastrophic event has a very low probability of occurrence but has significant consequences if it does occur. The goal of this research is to develop a process to proactively plan for catastrophic risk events through an integration of diverse research streams related to the management of risk. In particular, the proposed process builds upon an existing risk analysis framework by incorporating an innovative methodology used by the insurance industry to quantify the risk of multiple types of catastrophic events on key supply chain locations.     

Logistics Performance,Customer Satisfaction,and Share of Business: A Comparison of Primary and Secondary Suppliers

The linkage between logistics performance and overall firm performance has received attention in the literature for more than 30 years. However, researchers have not investigated if differences in performance between primary and secondary suppliers affect customer satisfaction and the percentage of business allocated to suppliers. In this research, primary suppliers received more than four times as much business as the secondary suppliers. We investigated the impact of the Marketing Mix on customer satisfaction and share of business for primary suppliers and secondary suppliers, and identified differences between the two groups, using multigroup structural equation modeling. The results indicate that perceived performance on logistics attributes significantly affects customer satisfaction and the percentage of business that is allocated to primary and secondary suppliers, which is key information for developing competitive strategies. Our research findings challenge the practice of providing service levels to customers based on current revenue or profitability which does little to convince customers, who are using a company as secondary source, to make it the primary supplier.     

ANTECEDENTS AND DIMENSIONS OF CUSTOMER PARTNERING BEHAVIOR IN LOGISTICS OUTSOURCING RELATIONSHIPS

In order to be successful in today's competitive environment, third‐party logistics providers (3PLs) increasingly strive to develop close, mutually beneficial long‐term relationships with customers. The current study identifies inter‐organizational conditions and firm‐specific factors that influence a firm's partnering behavior with its 3PL. A model of the antecedents and dimensions of partnering behavior is developed and tested with a diverse set of relationships between a focal 3PL and members of its customer base.