Page 67 - Rižnar, Igor, and Klemen Kavčič (ed.). 2017. Connecting Higher Education Institutions with Small and Medium-Sized Enterprises. Koper: University of Primorska Press
P. 67
Thinking Globally, Acting Regionally with Simplified Logistics
ket, which is characterized by the increasing use of outsourcing, partic-
ularly as organisations have moved into foreign markets and globalized
their supply chains and resources of materials and services (Aguezzoul
2014; Anderson et al. 2011; Marasco 2008). These intermediate markets
intensify the partitioning of production and shift the focus from the fi-
nal market of goods and services to the value adding processes in the
intermediate markets (Jacobides 2005).
Globally expanding Internet and e-businesses have brought new
business models with less distribution intercessors resulting in Internet-
based customer logistics, logistics for small-batch production, and zero-
inventory logistics. The development of Internet-based distribution
channels and other mobile marketing media has made it incredibly eas-
ier for consumers to switch their usual brands. For companies, the logic
of going global is recognisable from an economic perspective. Manu-
facturing companies began to outsource part or all of their logistics
function to 3 p l companies who provided expertise in solutions of lo-
gistic systems, transportation, warehousing, freight consolidation, dis-
tribution, inventory management, and logistics information systems
(Anderson et al. 2011; Govindan et al. 2012; Lu 2011). Aguezzoul (2014)
points out the 3 p l services also in a j i t context. Sahay and Mohan
(2003) argue that the major reasons cited for the usage of 3 pl services
include cost reduction 27, strategic reasons 26, process effectiveness
24, and lack of internal capability 11. Anderson et al. (2011) quote
a range of other social exchange factors that do not fit easily into the
listed categories i.e. reputation, innovativeness and managerial involve-
ment. Leuschner et al. (2014) performed a meta-analysis, which is based
on 9,386 observations across 54 samples, and reported a preponderance
of support for beneficial performance outcomes associated with logis-
tics outsourcing arrangements-for both suppliers and customers of the
services.
The 3 p l industry provides a particular challenge to understanding
the way customers value different service components i.e. business-
to-business (b 2 b) and consumer-to-business (c 2 b). Besides that, the
key service components (transport, warehousing, etc.) are inherently
complex, involving the physical movement of goods, information tech-
nology (i t) system support and contact with service personnel. Thus,
i t and information sharing can be viewed as antecedents to material
flow integration. Information and material flow integration are impor-
tant for supply chain integration, having significant effects on perfor-
65
ket, which is characterized by the increasing use of outsourcing, partic-
ularly as organisations have moved into foreign markets and globalized
their supply chains and resources of materials and services (Aguezzoul
2014; Anderson et al. 2011; Marasco 2008). These intermediate markets
intensify the partitioning of production and shift the focus from the fi-
nal market of goods and services to the value adding processes in the
intermediate markets (Jacobides 2005).
Globally expanding Internet and e-businesses have brought new
business models with less distribution intercessors resulting in Internet-
based customer logistics, logistics for small-batch production, and zero-
inventory logistics. The development of Internet-based distribution
channels and other mobile marketing media has made it incredibly eas-
ier for consumers to switch their usual brands. For companies, the logic
of going global is recognisable from an economic perspective. Manu-
facturing companies began to outsource part or all of their logistics
function to 3 p l companies who provided expertise in solutions of lo-
gistic systems, transportation, warehousing, freight consolidation, dis-
tribution, inventory management, and logistics information systems
(Anderson et al. 2011; Govindan et al. 2012; Lu 2011). Aguezzoul (2014)
points out the 3 p l services also in a j i t context. Sahay and Mohan
(2003) argue that the major reasons cited for the usage of 3 pl services
include cost reduction 27, strategic reasons 26, process effectiveness
24, and lack of internal capability 11. Anderson et al. (2011) quote
a range of other social exchange factors that do not fit easily into the
listed categories i.e. reputation, innovativeness and managerial involve-
ment. Leuschner et al. (2014) performed a meta-analysis, which is based
on 9,386 observations across 54 samples, and reported a preponderance
of support for beneficial performance outcomes associated with logis-
tics outsourcing arrangements-for both suppliers and customers of the
services.
The 3 p l industry provides a particular challenge to understanding
the way customers value different service components i.e. business-
to-business (b 2 b) and consumer-to-business (c 2 b). Besides that, the
key service components (transport, warehousing, etc.) are inherently
complex, involving the physical movement of goods, information tech-
nology (i t) system support and contact with service personnel. Thus,
i t and information sharing can be viewed as antecedents to material
flow integration. Information and material flow integration are impor-
tant for supply chain integration, having significant effects on perfor-
65
