Improve Logistics Performance Research Articles

An exploration of operational excellence methodologies implementation in the logistics sectors: a global study

PurposeThe aim of this study reported in this paper was to explore the application of operational excellence methodologies in a global context.Design/methodology/approachA qualitative interview approach was used to understand the current state, benefits, challenges, success factors, tools and techniques of operational excellence methodology implementation with relevance to logistics companies worldwide. About 16 interviews were undertaken with practitioners working in leading companies and with leading academics in Asia, Europe, Africa, North America, South America and Australia.FindingsThe findings show that operational excellence methodologies including Lean, Six Sigma, Lean Six Sigma and Agile can apply in logistics firms to improve operations and productivity and save costs. Top management support and involvement play an important role in the success of operational excellence projects in the logistics service.Research limitations/implicationsThe findings will be of interest to top and middle managers and logistics practitioners, with a dual aim of improving logistics performance and saving costs.Originality/valueThe present study has been one of the first global study attempts to explore the implementation of operational excellence methodologies in the logistics sectors.

A relax-and-restrict matheuristic for supply chain network design with facility location and customer due date flexibility

In this paper, we study a supply chain network design problem that takes into account several real-world features. Focusing on the growing use of third-party warehouse services, the paper discusses the creation of a network that can adjust to the needs of businesses to enhance operational flexibility and resource utilization. Moreover, it addresses the challenge of delivery date flexibility where the conventional single-day delivery is replaced with a range of possible delivery dates. Considering these two types of flexibility, we formulate a supply chain network design problem that includes all production, inventory, location, and distribution decisions. We propose a solution approach called the relax-and-restrict matheuristic. This approach iteratively solves three versions of the model: two relaxed versions and a restricted one. Through a series of computational experiments, we highlight the efficiency of the proposed method. Furthermore, managerial insights are presented on the role of flexibility in supply chain network design and how it relates to economies of scale. The results demonstrate how synergistic effects between two types of flexibility improve logistics performance by achieving cost-effectiveness.

THE EFFECTS OF INTERNATIONAL LOGISTICS IN GLOBAL VALUE CHAIN TRADE

The current empirical literature shows that logistics plays a vital role in increasing the total volume of international trade. However, there is scarce literature on the impact of logistics performance on global value chain trade. Therefore, the objective of this paper is to investigate the effect of logistics performance on global value chain trade, measured by the value-added exports. The empirical specification of this paper is based on the structural gravity model of international trade. The analysis is based on biennial panel data on bilateral trade flows for the EU-15, CEE, and the Western Balkans and covers the period from 2010 to 2018. The model is estimated with a Poisson Pseudo Maximum Likelihood Estimator. The results show that logistics performance appears to have significant positive effects on global value chain trade and that the logistics performance of the partner country plays a more critical role than the logistics performance of the reporting country. Institutional quality matters greatly for global value chain trade. Individual differences in the observed variables were found between selected groups of countries. The need to improve logistics performance and invest in knowledge and technology will help countries improve in value chains, along with adequate institutional support.

The impact of logistic performance on intra-ASEAN trade

ASEAN has gone a long way in deepening its regional economic cooperation, particularly its trade liberalization. However, ASEAN has comparatively less intraregional trade than the European Union, whose economic integration model they aspire to emulate. As reducing tariffs was no longer an efficient way to increase trade, this study analyzes logistics performance as another factor that may affect trade. Using the gravity model with bilateral trade data from 10 ASEAN member states from 2007 to 2018 with gaps, the results show that the majority of improvements in logistics performance, by both the private sector and government alike, have positive and significant impacts on export value. This finding implies that the collaboration between the private sector and government agencies to improve logistics performance in each ASEAN member state is imperative to foster ASEAN intra-regional trade further.

Asian logistics industry efficiency under low carbon environment: policy implications for sustainable development.

Logistics is a crucial part of every business. The logistics sector not only contributes significantly to Asian economies but also has far-reaching effects on ecological and social concerns. Therefore, it is important to examine the factors that can affect the logistics performance of the country. Hence, the primary objective of the study is to estimate the impact of CO2 emissions, ICT, and human capital on the logistics performance of the 20 Asian economies. In order to investigate the relationship between the variables, we have employed the OLS, 2SLS, GMM, and panel quantile regression. The estimates of CO2 emissions and GHG emissions are significantly negative in 2SLS and GMM methods, implying that environmental pollution hurt logistic performance. The estimates of ICT and education are positively significant, suggesting that increased use of internet and higher education rate are crucial in improving logistics performance. In the panel quantile regression model, the estimates of CO2, internet, and education are insignificant at most quantiles except at a few higher quantiles. Thus, governments should invest in the development of efficient logistics infrastructure to achieve sustainable development.

Modeling the impact of logistic performance, economic features, and demographic factors of countries on the seaborne trade

The shipping industry continues to have strong growth prospects due to increased efficiency and economic liberalization. Through seaborne trade, port infrastructure and logistics impact economic growth in developing countries. This makes studying the factors affecting seaborne trade for such countries particularly important. The current paper aims at analyzing the impact of logistics, economic, and demographic variables on seaborne commodity trade between Qatar, Oman, Turkey, Pakistan, and Iran. Employing a gravity model, results show that a 1% improvement in Logistics Performance Index (LPI) consignments in the importing country can result in a 0.8% increase in total trade flows. Based on results, a 1% increase in the tariff rate reduces the value of trade by 0.4%. Furthermore, a 0.5% increase in trade is caused by the increase in population of the destination country. A sensitivity analysis also shows that logistics variables are more significant than economic and demographic variables. It can be concluded that trade policymakers in developing countries can get better results by improving logistics performance and investing on logistics infrastructure leads to more trade.

Logistic Analytics Management in the Service Supply Chain Market Using Swarm Intelligence Modelling

The industry sustainability in today's globalization relies on cost-effective supply chain management of diverse markets and logistics. Supply chain risks typically limit profits over the overall expense of the supply chain. In the supply chain design practices, the volatility of demand and limitations of levels are essential concerns. In this paper, a swarm intelligence-assisted supply chain management framework (SISCMF) has been proposed to increase profit and improve logistics performance. Due to the simplicity of design and rapid convergence, swarm intelligence (SI) algorithms are widely used in most supply network design fields and efficiently solve large-dimensional problems. A significant increase in resolving these problems has been seen in particle swarm optimization and ant colony algorithm. The simulation result suggested the operational cost (92.7%), demand prediction ratio (95.2%), order delivery ratio (96.9%), customer feedback ratio (98.2%), and product quality ratio (97.2%).

Factors impacting logistics performance

Logistics is an integral part of the supply chain and plays a crucial role in this industry. Therefore, improving logistics performance is the top concern of organizations. This study is conducted to determine factors affecting logistics performance in Vietnam. The authors collected data from 162 Vietnamese logistics enterprises. Applying the structural equation modeling (SEM), the research has demonstrated that logistics efficiency positively correlates with e-logistics, information technology capability, information sharing, and service staff quality. Furthermore, e-logistics have the strongest impact and play the most important role in logistics performance.

The role of logistics performance and decreasing of trade competitiveness in ASEAN+3’s manufacturing products

ASEAN Countries members plus Japan, South Korea, and China (ASEAN+3’S) logistics performance play a significant role in maintaining and improving their export and import values, depending on the various commodities trade. Meanwhile, during uncertain situations today, the stakeholders need to enhance the capability of import and export activities to improve logistics performance. The study focused on the competitiveness of the manufacturing products traded by these countries. The study used panel data analysis based on the panel data of 11 years (2008-2018) from the 10 ASEAN+3 countries. Export value and Net Comparative Advantage (NCA) index (including net export and trade openness) were used as dependent variables in the two model studies, and logistics performance was the primary variable. The result shows that logistics performance positively affects the export and trade competitiveness models of ASEAN+3’s manufacturing products. The Logistics Performance Index (LPI) provides estimates that suggest that logistics performance has a significant impact on ASEAN + 3 export value (ExpM) and manufacturing trade competitiveness (NCAM). Meanwhile, there are different results of the effects of macroeconomic variables between the model of export value (ExpM) and the NCAM in the manufacturing in ASEAN+3’s. The ExpM model follows the theory that Gross Domestic Product (GDP) and Foreign Direct Investment (FDI) increase the competitive value in ASEAN+3 countries. Meanwhile, in the NCAM model, GDP and FDI reduce trade competitiveness because of the high value of ASEAN+3 manufacturing imports.

Digital Technologies for Improving Logistics Performance of Countries

Abstract The logistics performance has a crucial role in the industrial and economic development of countries. This study aims to underline implications for policy makers in improving the logistics performance of countries in terms of Industry 4.0. For this purpose, the effect of digitalisation on logistics performance is analysed by using correlation and multiple regression analysis. The empirical study builds upon dimensions and indicators of the Digital Economy and Society Index (DESI) and Logistics Performance Index (LPI) of the World Bank. The results indicate that governmental policies should target to deliver sound framework conditions for the generation of human capital (here: ICT specialists), sustainable usage of internet services (e.g. professional social networks, online sales, etc.), integration of digital technologies (e.g. Big Data, Cloud computing, etc.), as well as digital connectivity (here: fixed broadband and 4G coverage) in order facilitate improvement of logistics performance.

The Role of Human Resource Competency in Improving Logistic Performance

This study discusses the extent of the role of human resource competencies in improving logistics performance. Along with intense competition in the business world and the emergence of technology, customer demands are also increasingly high. Customers demand responsiveness, innovation and flexibility. Aside from that, human resource competency is seen from the variables of knowledge, skills and attitude whether it gives a high response to the improvement of logistics performance. Data analysis was performed using the structural equation model (SEM) in the model and testing the hypothesis. The results showed that the independent / exogenous variables had contributed to the improvement of logistics performance.

Physical Internet: First results and next challenges

Physical Internet: First results and next challenges

Green Technology Acceptance Model and Green Logistics Operations: “To See Which Way the Wind Is Blowing”

This study provides a new insight to extend traditional technology acceptance model (TAM) in to energy –augmented TAM (EA-TAM) model in order to analyze micro-macro perspective of green enterprise technology to ensure eco-friendly products. The critical review would enhance analytical abilities to understand the main determinants of TAM model at both firms’ and industry perspective. The study proposed micro and macro enterprise energy –augmented TAM models and found that micro enterprise EA-TAM associated with green investment decision that increases the use of renewable energy demand to improve logistics performance, export capabilities, technology advancement, resource inputs and competitiveness. These factors would largely support to green product innovation, which is fueled by green R&D expenditures. The green supply chain process would develop an attitude and behavioral intention towards the use of technology and green products, which ultimately would bond with green system use. The macro perspective of EA-TAM shows that green factors including green supplier selection, industrial green engineering, green procurement, green consumerism, green product recovery, and green innovation would increase green purchase decisions that convert into perceived ease of green products usage. The eco-product choice faced three compelling issues that could negatively affect the use of green products attitude and intentions, i.e., political constraints, carbon pricing, and consumer willingness-to-pay for public goods. The study concludes that the need for green policies is imperative to regulate firms and the industrial decision to go-for eco-friendly production. The use of renewable energy, carbon pricing and willingness-to-pay for public goods would be recommended for long-term sustainable development.

LOGISTICS PERFORMANCE INDEX IN INTERNATIONAL TRADE: CASE OF CENTRAL AND EASTERN EUROPEAN AND WESTERN BALKANS COUNTRIES

The volume of international trade heavily depends on factors facilitating trade and contributing to reducing its costs. The importance of international logistics as trade facilitator is increasingly emphasised in the literature. The aim of the paper is to assess the level of the impact of logistics performance on trade volume in the Central and Eastern European countries (CEECs) and Western Balkans. In order to achieve the aim, the impact of Logistic Performance Index (LPI) on international trade in 2007 and 2018 is investigated. This relationship is examined using the gravity model approach with a focus on overall LPI and its components. The research results show that there is a positive statistical significance and impact of logistics on bilateral trade between CEECs, and logistics justifies the role of a trade facilitator. Besides, the importance of LPI components in intensifying international trade was emphasised. Research implications indicate that improving logistics performance and logistics services lead to a positive impact on the volume of international trade. Better logistics performance in trading countries will lead to increased bilateral trade and reduced trade costs. The limitation of the research is that only two years have been taken into account. This is done in order to highlight the differences between the year the LPI was introduced, and the last year the LPI was calculated.

Relationships of Selected Key Logistics Factors and Logistics Performance Index of Sub-Saharan African Countries

Logistics and supply chain bottlenecks are magnified with inefficient business processes and can result in increases of trade costs. Logistics Performance Index is a measure of how well different countries perform in their logistics activities to increase trade efficiencies. This study tries to explore the relationship of critical logistics factors with logistics performance index (LPI) developed by the World Bank. By taking Rwanda as a case study, the paper also explores the performance differences in logistics between landlocked and coastal countries, among countries within the same region, and income group. It shades light how a landlocked and low-income country was able in a decade to improve its logistics performance. The findings of two-stage least square provides a single estimated logistics index. It can explain the multiple logistic indicators which can be used to improve the ability to compete and improve logistics performance. Moreover, countries in the study, as well as other countries can utilize this estimated index to target policy actions to improve logistics operations.

The Impact of Power on the Relationships and Customer Satisfaction in a Logistics Triad: A Meta-Analysis

It is necessary for TPL firms to understand the source of power and the relationship between buyers and suppliers so that they can improve logistics performance and customer satisfaction. This paper uses a meta-analysis to assess the effect of power on the relationships and customer satisfaction in a logistics triadic relationship. A meta-analysis is useful to systemically synthesize the research findings from the existing literature. The causal relationships between power, relationship and customer satisfaction from the SCM and logistics literature are statistically assessed. Based on the review and analysis, the framework may provide significant implications for supply chain relationships in logistics. This may be the first attempt to analyse the impact of power on the relationship and customer satisfaction in a logistics triad through a meta-analysis. The results of this study will provide useful research information that other researchers can use.

Improving logistics performance by reforming the pillars of Global Competitiveness Index

The logistics performance of a country is crucial to national and international trade, and therefore has a direct effect on economic development. Owing to limited resources, policymakers need a guide for specifying the factors that need to be focused upon to bring about immediate and significant improvements in the logistics performance of their countries. This study aims to propose a methodology to develop a roadmap for policymakers in improving the logistics performance of their countries. For this purpose, we analyze the effect of the competitiveness pillars of the Global Competitiveness Index (GCI) on logistics performance (as measured by the Logistics Performance Index (LPI)), using a three-stage integrative methodology based on a tree-augmented naive Bayesian network, partial least square path model, and importance-performance map analysis. An empirical study is conducted using the GCI pillars of the World Economic Forum and the LPI of the World Bank. The results indicate that governments should focus on technological readiness, higher education and training, innovation, market size, and infrastructure to facilitate improvement in the logistics performance of their countries.

MODELING SUPPLY CONTRACTS TO MANAGE OUTSOURCING RISKS OF LOGISTICS' ACTIVITIES

Many companies managed to improve logistics performance by making outsourcing decisions on logistics activities. The use of logistics outsourcing, not only can maintain their focus on core businesses, but also continue to minimize distribution costs by establishing relationships with third party service providers to create value of their operational performance excellence. But in a decentralized supply chain condition, the control of the supply chain players towards third-party logistics service providers is also limited, while the performance of logistics services affects the availability of products, quality, price, and market share of these companies. Coordination mechanisms are needed in a decentralized supply chain, especially with the implementation of logistics outsourcing decisions, so companies can maintain competitive advantage. In this paper, the model revenue and inventory-risk sharing contract was developed to coordinate the supply chain consisting of manufacturers, third party logistics service providers, and retailers. In addition, incentive and penalty schemes are applied based on the performance of logistics service providers that will affect the level of availability in retailers, so that inventory risk can also be allocated to all stakeholders.

Impacts of supply chain uncertainty and risk on the logistics performance

Purpose The purpose of this paper is to present an empirical evidence of the impacts of supply chain uncertainty and risk on the logistics performance in the Australian courier industry. This study examines the impacts of supply chain and risk on the logistics performance in the Australian courier industry. Design/methodology/approach This study provides an in-depth analysis of supply chain uncertainty and risk’s impacts on the logistics performance. The structure equation modelling approach is applied to examine the relationship between supply chain uncertainty and risk and logistics performance. Company-side uncertainty and risk, customer-side uncertainty and risk, and environment uncertainty and risk are used to measure the impacts of supply chain uncertainty and risk on the industry. This paper gives attention to the supply chain uncertainty and risk in the industry. Findings The results indicate that supply chain uncertainty and risk have negative impacts on logistics performance. Moreover, the greatest impact of supply chain uncertainty and risk was from outside company in the Australian courier industry. Research limitations/implications The study focuses on the Australian courier industry, this may limit the implications of findings in different industries. However, the research models may be examined and validated in the different context. Practical implications The results may provide directions in the implementation of strategies to manage supply chain uncertainty and risk and improve logistics performance. The findings may enlighten both academics and practitioners to understand and pay attention to the supply chain uncertainty and risk in the courier industry. Originality/value There is an argument whether the impacts of supply chain uncertainty and risk are positive or negative in previous studies. In addition, there are very few studies on courier industry. This study clarifies the impacts of supply chain uncertainty and risk on the logistics performance in the courier industry.

Multimodal Freight Transport Regulations in Indonesia And Its Implementation (A Case Study of Tanjung Priok Port)

The purpose of this paper is to present the current situation of multimodal transport in Indonesia and the various ways in which it is implemented. This paper will also examine the existing regulations and overcome barriers in implementation for providers and users of services. The paper also aims to correlate the elements of government regulation into the logistics chain, to understand the need for the application of Multimodal Transport. Indonesia has realized the benefits that can be achieved by implementing multimodal transport, an important alternative to improve logistics performance. As the government plays an important role in offering the legal and institutional framework, this paper assesses the implementation of regulatory linkages, infrastructure, and why multimodal transport is still not implemented properly.