Developing effective reverse logistics programs

A recent survey in the automobile aftermarket industry examines reverse logistics practices. The research focuses on two key issues: 1) the influence of program design characteristics, i.e., formalization, returns policy restrictiveness, and innovation, on program performance and 2) the differential influence of making versus buying reverse logistics program software. The results provide guidelines for managerial decisions relating to reverse logistics.     

Outsourcing reverse logistics of high-tech manufacturing firms by using a systematic decision-making approach: TFT-LCD sector in Taiwan

Reverse logistics are increasingly crucial for the supply chain strategy of global high-tech manufacturing firms. As reverse logistics operations are significantly more complex than traditional manufacturing supply chains, many high-tech manufacturers are examining the feasibility of outsourcing reverse logistics activities to third party logistics providers (3PLs) from a strategic planning perspective. Internal resources and capabilities are thus examined from a resource-based perspective to identify which reverse logistics service requirements could be fulfilled in-house or outsourced. Therefore, this work presents a systematic approach using the analytical network process (ANP) not only to investigate the relative importance of reverse logistics service requirements, but also to select an appropriate 3PL. Empirical results based on the case of the TFT-LCD sector in Taiwan indicate that information technology management is of priority concern in reverse logistics services. In addition to providing a valuable reference for manufacturers concerned with service requirements for outsourcing, results of this study significantly contribute to the efforts of 3PLs in evaluating whether they comply with potential customer requirements based on their service capabilities.     

Impact of RFID information-sharing strategies on a decentralized supply chain with reverse logistics operations

The integration of environmental practices in a supply chain has been study for the past few decades. However, most of the work relies on centralized decisions made by one player. Few papers address the complex dynamics of environmental decentralized supply chains and how these dynamics can affect environmental and economic outcomes. To study this problem, we consider a supply chain with a manufacturer and two different suppliers: a recycled-material and a raw-material supplier. The players make individual inventory decisions to satisfy demand and reduce cost. Further, this supply chain encompasses stochastic elements such as in demands, returns, and collection leadtimes. These decentralized decisions and random factors can cause underperforming results; therefore, new inventory models and technologies are needed to help companies increase coordination within these systems. We model the implementation of Radio Frequency Identification (RFID) in the supply chain to determine if real-time inventory monitoring and information sharing can help the system attain higher environmental benefits (more returns) and higher economic benefits (less cost). We study two scenarios through a simulation-based analysis: No RFID and RFID. Numerical studies show that environmental benefits are significantly increased with the attainment of more returns. However, although economic benefits are realized, they are less significant than the environmental benefits. Further regression and sensitivity analyses on the cost performance measures reveal that economic benefits depend on several drivers inside the system. We present managerial insights that illustrate what configurations within this complex system can lead to the achieving of environmental as well as economic benefits.     

On supply chain coordination for false failure returns: A quantity discount contract approach

A large proportion of consumer returns fall into the category of false failure returns, which refer to returns without functional defects. In this paper, we consider profits resulting from exerting costly effort to reduce false failure returns in a reverse supply chain. The supply chain as a whole has a strong incentive to reduce such returns for cost saving. However, retailers typically enjoy a full credit provided by suppliers for returns, so they may not have sufficient incentives to exert enough effort for supply chain profit maximization. In some scenarios retailers may even have the motivation to encourage such returns. We suggest using a coordination contract to resolve this profit conflict. We introduce a quantity discount contract which specifies a payment to the retailer with an amount exponentially decreasing in the number of returns. We present explicit forms of such contracts given different assumptions about the distribution of the number of returns. We also prove that the contract is Pareto improving. Besides, it is shown that when the contract is applied in a closed-loop supply chain, it can deter retailer's potential incentive to encourage returns. Moreover, some modifications of the contract can lead to easy allocation of supply chain profit.     

Robust optimal policies of production and inventory with uncertain returns and demand

We consider an inventory and production planning problem with uncertain demand and returns, in which the product return process is integrated into the manufacturing process over a finite planning horizon. We first propose an inventory control model for the return and remanufacturing processes with consideration of the uncertainty of the demand and returns. Then a robust optimization approach is applied to deal with the uncertainty of the problem through formulating a robust linear programming model. Moreover, properties on the robust optimization model are studied, and an equivalent robust optimization model based on duality theory is obtained which allows the solutions to be derived more efficiently. Finally, we provide a set of numerical examples to verify the effectiveness of the approach and analyze the effects of the key parameters on the solutions.     

Green logistics at Eroski: A case study

In today’s highly competitive environment, green logistics issues are gaining interest. This paper analyses how logistics managers could lead the initiative in this area by incorporating environmental management principles into their daily decision-making process. A case study is given to show how they can turn practices into green while simultaneously meet the efficiency objectives. We have chosen one of the leader companies of the Spanish food distribution sector to check this hypothesis. The study covers the introduction of several changes into its fleet management and the implementation of a methodology to solve vehicle routing problems with environmental criteria minimisation.     

The persistence of abnormal returns at industry and firm levels: Evidence from Spain

We apply structural equation models to longitudinal data on profits of firms within industries to study the persistence of abnormal returns. We obtain a two‐way variance decomposition for abnormal returns: at firm vs. industry levels, and at permanent vs. transitory components. This decomposition enables us to assess the relative importance of the fundamental components of abnormal returns discussed in the literature. The method is applied to a panel of 5,000 Spanish firms observed over the period 1995–2000. We conclude that: (a) there are significant and permanent differences between profit rates at both industry and firm levels; (b) variation of abnormal returns at firm level is greater than at industry level; and (c) firm and industry levels do not differ significantly regarding rates of convergence of abnormal returns. Copyright © 2007 John Wiley & Sons, Ltd.     

高校后勤满意度测评系统的体系设计及其实现

高校后勤通常包括餐饮、住宿、物业、交通、医疗等多项保障与服务职能,针对所属行业范围广、跨度大的特点和高等教育对后勤服务与保障的全新要求,将顾客满意度指数模型(ACSI)和层次分析法(AHP)引入高校后勤满意度测评指标体系,并基于ASP技术开发满意度测评软件,可有效实施满意度测评,从而提高管理服务质量。     

Sustainability and business-to-business marketing: A framework and implications

Researchers in several business disciplines have convincingly argued that environmentally responsible strategies can contribute to competitive advantage and superior financial performance. While debates on ecological conservation and environmental practices within marketing have raged for over three decades, much of the focus has been on identifying and targeting the environmentally-conscious consumer. Less attention has been given to marketing's role in a green supply chain and its interface with environmentally-friendly manufacturing and operations. We integrate disparate streams of research and develop a broader framework to understand the appropriate role and focus of business-to-business marketing in the supply chain for achieving environmental sustainability objectives. We identify three major strategies - the reduction of surplus supply of products, reduction of reverse supply, and internal marketing - where marketing's role in environmental sustainability is crucial for achieving superior competitive advantage and financial performance.     

The establishment of industrial branding through dyadic logistics partnership success (LPS): The case of the Malaysian automotive and logistics industry

Logistics partnerships across dyadic and triadic relationship networks have been the basis of extensive research in the extant literature. It is well understood that competitive advantage within logistics and distribution and within supply chains are driven by value-adding aspects of not only the core competencies of each tier in the network, but also via tangential supporting factors. It is also well understood that there is a strong relationship between logistics and distribution and marketing functions, particularly in product-based organisations. In addition to deepening our understanding of how successful partnerships throughout the source–make–deliver continuum can be optimised, this research also seeks to identify how a supporting element in terms of industrial branding and marketing can lead to relational sustainability. Hence, this paper outlines the relationship between logistics partnership success (LPS) factors and the inherent link to industrial branding establishment and business sustainability within the Malaysian automotive industry (specifically, car manufacturers). Adopting a multiple case study approach, findings suggest that there is a strong association between logistics service performance (LSP) provided by the third party logistics provider (TPLP) and the development and support of a mutual brand image for both the TPLP and the car manufacturer. We contribute to the extant literature on logistics partnership and industrial branding through linking LSP with the creation and maintenance of an industrial branding strategy for both parties in the context of the Malaysian automotive industry.     

Purchasing professional services: A transaction cost view of the antecedents and consequences of purchasing formalization

Professional services represent an increasing share of expenditures in contemporary organizations. While these services are often of strategic importance, they are also perceived as being difficult to purchase and use, which creates challenges for the purchasing process. In order to address these challenges, organizations are increasingly engaging in systematic efforts to improve their ability to purchase professional services. These efforts focus on formalizing the purchasing process by introducing policies, guidelines, and other measures for the hiring of service suppliers. Based on a transaction cost economic framework, the current paper investigates the nature, antecedents and consequences of formalization initiatives in the purchasing of professional services. The results from a cross-sectional study of 76 large Swedish organizations show that the formalization of purchasing professional services takes two different forms: the formulation of policies and the establishment of preferred supplier agreements. The former is driven by company size, whereas the latter is driven by the frequency of purchase transactions. Only the establishment of policies, however, is found to be positively related to organizations' perceived ability to purchase professional services.     

Implementation of reverse logistics as a sustainable tool for raw material purchasing in developing countries: The case of Venezuela

This study aims to analyze and understand the benefits that acquiring raw materials through the application of reverse logistics can generate, especially in developing countries. An empirical study has been carried out in the handmade sector of five municipalities in the state of Mérida, Venezuela, into the contingency factors of reverse logistics (information and communication systems, total ownership costs and life cycle of products), as well as the effect of uncertainty. A case study methodology was used to test the effect of the independent variables on the “raw materials purchasing” variable, and involved the technique of stepwise multiple regression. The results reveal that the preference for purchasing raw materials through reverse logistics is mainly determined by the “uncertainty” variable, contingency factors of “information and communication systems” and the “life cycle of products”. According to the results, firms in the handmade sector should implement an information system and be in constant communication with their customers, who play a dual role as buyers of their products and as input suppliers, therefore, greater contact can help reduce uncertainty. Handmade sector workers make products with a long average life cycle and, therefore, with greater chances of being reused, restored, repaired and to finally be subjected to recycling. National and local authorities should encourage the application of reverse logistics in other productive sectors, such as manufacturing, agriculture, services, as it can reduce the problem of acquisition of production inputs and mitigate environmental damage caused by the production of raw materials.     

Forming a 5G strategy for developing countries: A note for policy makers

This paper aims to provide policy makers in low income and middle income countries with a pragmatic review of the critical issues in formulating effective strategies and planning to embrace the next generation of mobile cellular technology. In a context of industry lobbying of governments to promote 5G, the paper attempts to bring clarity to just what are the critical issues, specifically for an industrial policy to deal with this novel but complex technology. Planning for 5G is a series of complicated choices as there are issues at the levels of creating ecosystems to support it, unproven business models, with claims for applications which may not be financially viable, yet, plus confusion over choices of radio spectrum, and selection of equipment suppliers, even potential issues over public health, as well as the real level of industrial and consumer demand beyond the hype. The emphasis here is on the importance of making balanced strategic choices, by identifying the basic issues, in a ‘realpolitik’ fashion - including why embrace 5G at all. The paper develops its insights from lessons learnt in the introduction of the previous mobile generation, LTE, also from policy studies on small cells and on designing auctions for 5G networks, as well as various 5G-focused publications from governments, regulatory authorities, mobile industry associations and global suppliers over the past six years (2015–2020). It examines whether to regulate 5G deployment with a heavy or light-touch regime, also whether to focus on more than the traditional indicators, such as penetration and coverage, or on “transformational outcomes” (as the promotional literature terms them) for the private and public sectors.     

Acquisition announcements and stock market valuations of acquiring firms' rivals: A test of the growth probability hypothesis in China

To examine the impact of acquisition announcements on the stock market returns of rivals of the acquiring firms, we propose a growth probability hypothesis: when an acquisition is announced, it signals the potential for future growth in the acquirer's industry to the market, resulting in positive stock market reactions to rivals of the acquiring firms. We test the growth probability hypothesis with a longitudinal sample of Chinese domestic and cross‐border acquisitions during 1993–2008. The results provide robust support for this hypothesis as a means to explain market reactions to rivals of acquiring firms. We also empirically test and negate alternative theoretical explanations advanced in prior literature to explain positive market reactions to rivals of the target firms. Copyright © 2012 John Wiley & Sons, Ltd.     

A Process model of strategic business exit: Implications for an evolutionary perspective on strategy

The process model of strategic business exit (SBE) maps the activities of different levels of management onto the business and corporate levels of strategy making involved in Intel Corporation's exit from its core dynamic random access memory (DRAM) business. The SBE process model contributes to the development of an evolutionary process theory of strategy making by conceptualizing the pattern of managerial activities through which resources and corporate competencies are internally redirected toward more viable business opportunities, and the strategic context of a core business dissolves. The SBE process model corroborates the usefulness of the Bower-Burgelman process model for conceptualizing strategy making in complex organizations.     

Challenges for a broadband service strategy in rural areas: A Romanian case study

Broadband network deployment plays an important part in the strategic policies in Europe to promote growth and innovation in all sectors of the economy in addition to social and territorial cohesion. In compliance with existing community policies, Romanian strategies in this field seek to provide the necessary support for broadband connectivity in rural areas. The goal of this study is to define a rural end-user profile to plan the most appropriate broadband service strategy from both a technical and a marketing perspective. Our empirical research involves an exploratory survey conducted in rural areas in northwestern Romania (n=1040 respondents). The findings reveal low levels of customer satisfaction and users more interested in data transfer than voice or video applications. Given this rural user profile, simulations of network traffic were conducted. The simulation results suggest that WLANs are the most suitable solution for the “last mile” broadband segment.     

Evaluation of 4PL operating models: A decision making approach based on 2-additive Choquet integral

By being a supply chain integrator who can assemble and manage the resources, capabilities, and technology of its own organization with those of complementary service providers, fourth party logistics (4PL) providers deliver comprehensive supply chain solutions and form an important option for business outsourcing. The adequate design of the partnership between companies in this type of outsourcing activities is essential. In order to support the effective usage of 4PL services, this paper proposes an analytical multiple criteria decision making approach to evaluate 4PL operating models. While decision criteria and their hierarchy were identified, it is observed that there exist interactions, e.g. simultaneous satisfaction of two or criteria is sometimes required. This situation can not be handled with traditional multi-criteria decision making methods which assume criteria independence. 2-additive Choquet integral is appropriate to model criteria interactions by pairs and is used in this study. The proposed framework is applied for a logistics company willing to expand its operations. Finally, an application is provided to demonstrate the potential of the methodology for 4PL operating model selection.     

Performance implications of outsourcing for technological innovations: managing the efficiency and adaptability trade‐off

We explore how increasing efficiency compromises adaptability when a firm outsources during the emergent stages of a technological innovation. Since efficiency ‐related problems differ in complexity and structure from those associated with adaptability, their optimal governance differs. While the former benefits from outsourcing, the latter is better off managed within organizational boundaries. In addition, a firm's ability to engage in complex problem solving buffers the efficiency‐adaptability trade‐off that occurs with increasing levels of outsourcing. In this study, we find support for our theses. Although outsourcing yields efficiency gains up to a certain point, it hurts adaptability. However, a firm's absorptive capacity mitigates this trade‐off. Our data on outsourcing for Internet banking is both archival and based on two surveys conducted with 100 U.S. banks. Copyright © 2011 John Wiley & Sons, Ltd.