scholarly journals Risks in emerging markets: logistics services in the Mediterranean region

2016 ◽  
Vol 1 (3) ◽  
pp. 253-272 ◽  
Author(s):  
Amir Moslemi ◽  
Olli-Pekka Hilmola ◽  
Jyri Vilko

Purpose This study aims to explore and analyzes the risk factors in container shipping and logistics services using a dual perspective. The authors gather data not only from logistics service companies but also from their most important customers. Design/methodology/approach In this research, the authors used case study methodology (interviews and surveys) to examine risk factors that are related to one another within the interaction between logistics service companies and their customers in the emerging markets of the Mediterranean region (Turkey, Algeria, Tunisia and Libya). Findings The findings show the most important risk factors and compare them using a dual perspective. Customers identify additional risks and estimate their consequences as wider. Interestingly, oil price change plays a dual role because a price increase could be beneficial to the region; at the same time, however, the competitiveness of shipping would decrease. In both response groups, risk likelihood and risk consequence have a positive and statistically significant correlation. Research limitations/implications The findings of the study are limited to one shipping/logistics service company. On a global scale, the company is medium-sized; however, in terms of Northern Europe, it is an important player. Extending its service portfolio to the Mediterranean region is an important step. Practical implications In emerging markets, risks go hand in hand with profitability, and companies need to apply extensive risk analysis and mitigation strategies to survive. Social implications The southern Mediterranean region is showing some signs of economy recovery. Efficient, robust supply chains are in demand to support sustainable growth. Originality/value Using a case study approach in supply chain risk management in shipping is rather rare; this work is ground-breaking in that it uses dual perspective in the analysis.

2017 ◽  
Vol 9 (3/4) ◽  
pp. 269-291 ◽  
Author(s):  
Alessandra Cozzolino ◽  
Ewa Wankowicz ◽  
Enrico Massaroni

Purpose The purpose of this paper is to explore the contribution of logistics service providers’ (LSPs) initiatives to disaster relief and how LSPs are engaged with humanitarian sector. In recent years, the importance of logistics services in disaster relief operations and the capacity of LSPs to improve humanitarian supply chain management have become an increasingly interesting topic for both professionals and academics. Design/methodology/approach This research follows a qualitative approach based on multiple case studies. Findings The current research, after considering the differences and similarities among collaboration, cooperation and coordination and underlining how crucial these mechanisms are in the humanitarian context, explains the contribution of LSPs to relief operations alongside humanitarians. Research limitations/implications There has been increased interest in humanitarian logistics on the part of international academic and professional communities. This study constitutes a first exploratory step in the research to build a platform for benchmarking analysis of logistics services that aims to ensure the effective implementation of social responsibility principles. Practical implications The managerial implications arising from the research offer a range of current responsible actions from which strategic and operative directions to contribute can be derived. Originality/value Humanitarian logistics represents a crucial field in logistics management. This paper addresses the innovative socially responsible initiatives undertaken by the main international LSPs in the area of humanitarian logistics.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Huay Ling Tay ◽  
Hui Sen Aw

Purpose Outsourcing logistical activities have become a widely used approach for firms to avoid high fixed costs and heavy investment requirements and to achieve competitive advantages. Lean six sigma (LSS) has been accepted globally across sectors as a management strategy for achieving process excellence. The purpose of this paper is to feature the application of LSS for improving the supplier selection process (SSP) of outsourced logistics services in a multinational health-care company. Design/methodology/approach This study is based on an action research case study conducted on the SSP of the freight and distribution department in a multinational health-care company. This paper reports on the application of the LSS define-measure-analyze-improve-control (DMAIC) approach for reducing supplier selection lead time. Findings The study features a real-world case study of the LSS DMAIC application to improve the supplier selection process of a large health-care company. The key issues that were identified are lack of information visibility, top-down changes and unclear communication lines. To counteract these three root causes, the lean six sigma techniques that are implemented are the 5S, stakeholder analysis and standard operating procedure. Research limitations/implications This research provided empirical evidence of how practical challenges in SSP can be managed with the use of LSS. It further proposed plausible solutions for reducing and sustaining improved outcomes. As the study is limited to one case, the validity of the results can be improved by including more organisations and more case studies from other similar organisations. Originality/value Research in supplier selection processes rarely links continuous improvement ideology such as LSS to support strategic selection and procurement of logistics services. This paper could serve as a resource for both practitioners to derive useful implications and to academicians as it contributes to the LSS body of knowledge for further theory testing.


2019 ◽  
Vol 21 (2) ◽  
pp. 129-145 ◽  
Author(s):  
Yaroslav Eferin ◽  
Yuri Hohlov ◽  
Carlo Rossotto

Purpose This paper aims to test the “winner-takes-all” vs the “winner-takes-some” scenarios in digital platform competition dynamics in emerging markets. Design/methodology/approach This paper uses an analytical reference framework to assess the emergence of digital platforms in Russia, including four elements: definition of multi-sided platforms (MSPs), platform enablers, business models and competitive dynamics. Findings This paper concludes that Russia shows that a healthy competition between national and foreign MSPs led to the emergence of a shared equilibrium, where local platforms were able to retain a significant, often majority, share vis-à-vis foreign and global platforms. Research limitations/implications This paper stands as a counterpoint to the widespread conviction that digital platform dynamics will result into a “winner-takes-all” scenario and dominance of global platforms. Practical implications This case study offers practical data and analysis that can be used to create a baseline and evaluate the dynamics of digital platforms in emerging markets. It offers data, trends and evidence on Russia’s digital economy. Social implications This research provides a logical framework to help policymakers take decisions on a policy framework to regulate platforms in emerging markets. The good outcome of competition between local and foreign platforms should emerge as a policy objective to achieve in most emerging markets. Originality/value This case study is the first baseline to assess the dynamics of competition between national and foreign digital platforms in the Russian market. It is one of the first papers to tackle the market of digital platforms in an emerging and developing economy. It tries to address the debate between “winner-takes-all” and “winner-takes some” competition equilibrium through a concrete case study in an important G20 emerging market economy.


2020 ◽  
Vol 10 (1) ◽  
pp. 1-9
Author(s):  
Neetu Yadav

Learning outcomes Learning outcomes are as follows: to learn about the application of Bartlett and Ghoshal’s model of international strategy; to compare and contrast the global strategy of IKEA in India and China; and to understand how adaptability can create a new competitive advantage in emerging markets. Case overview/synopsis The case study enables discussion about the global strategy of a well-established multi-national company, IKEA in an emerging market. IKEA is a well-established and well-known brand in the international market in furniture retailing. It has decided to make a debut in India in 2017 with its first store in Hyderabad. However, it was yet to open it in 2018. The case emphasizes upon understanding the global strategy of IKEA, positioning itself in the fragmented Indian furniture industry, managing differences in emerging markets and adapting to the local environment of the particular country. The case highlights how adaptability can create a new competitive advantage in managing global strategy in different countries of emerging markets. Complexity academic level This case study is developed for post-graduate management programs as an MBA, Executive MBA and executive development programs. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 11: Strategy.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jessica Wehner ◽  
Ceren Altuntas Vural ◽  
Árni Halldórsson

PurposeService modularity promotes efficiency at the provider end of the supply chain and customisation at the customer end. The purpose of this paper is to investigate how logistics service modularity contributes to sustainable development through the means of energy efficiency. This is analysed in the context of logistics services for household waste collection.Design/methodology/approachA single case study methodology with embedded units is adopted where semi-structured interviews were conducted with a waste service provider (WSP) and buyers (municipalities) in Sweden, focussing on five types of logistics services for waste collection: collection of food and residual waste at apartments and one-family houses, as well as collection of gardening waste. Service modules are identified and analysed by blueprinting the service.FindingsThe findings show different service modules – standardised or customised – and their contribution to sustainable development operationalised through energy efficiency. Principles for an energy-centric service design are proposed.Research limitations/implicationsThe research is limited to Swedish household waste collection setting. Promising efficiency through standardisation, logistics service modularity has a potential to improve energy efficiency as well. This neglected link between sustainability and service modularity offers fruitful research avenues.Practical implicationsThis research is of practical relevance to waste logistics service providers and the municipality by suggesting principles for energy-centric service design. The service blueprint enables using logistics service modularity for improving energy efficiency in different logistics service settings.Originality/valueThis research incorporates an environmentally sustainable development perspective into logistics service modularity and contributes to the literature by exploring how energy efficiency is improved by modular design of logistics services. Furthermore, the study is one of the first to use service blueprinting to analyse logistics service modularity, providing a methodological contribution to that field in general and logistics in particular.


Author(s):  
Kostas Selviaridis ◽  
Andreas Norrman

Purpose – The purpose of this paper is to explore key challenges of adopting, designing and managing performance-based contracts (PBC) for advanced logistics services, as seen by providers. The shift toward performance-based solutions has proved challenging since providers often struggle to link performance to their payment. Despite such managerial challenges, empirical research in this area has been limited. Design/methodology/approach – A multi-case design was adopted. Three cases of logistics service providers were selected based on purposive sampling. Data were collected through 38 semi-structured interviews and review of 43 documents such as contracts and customer target letters. Findings – Key PBC adoption challenges include customer and provider intention to align their goals and incentives as well as their views on risk and reward sharing. Contract design challenges center around performance metric definition and weighting, designing performance monitoring systems that consider service co-production effects and help improve customer relationship and designing incentives with appropriate intensity levels. Contract management challenges include fostering provider pro-activity, provider changes in terms of processes and resource investments, perceived fairness of designed incentives and contract re-design to allow for win-win relationship outcomes. Research limitations/implications – The study empirically contributes to extant logistics service provider literature by identifying specific challenges that extend also beyond PBC adoption and design and cover contract management (and potential contract re-design). It also unpacks the notion of performance attributability by analyzing its role also in terms of contract and performance management as well as its potential effects on customer relationship management. Practical implications – The study presents implications for logistics provider managers regarding how the observed PBC challenges can be overcome. Originality/value – The study unearths several challenges of PBC for advanced logistics services, particularly in connection to contract management and re-design.


2020 ◽  
Vol 5 (3) ◽  
pp. 313-330
Author(s):  
Szu-Yu Kuo ◽  
Ching-Chiao Yang ◽  
Po-Lin Lai

Purpose Recently, inland Chinese regions have become the major manufacturing base for most manufacturing firms. Accordingly, with this change, many shipping companies attempted to provide proper logistics service activities to maintain their business. Hence, this study aims to empirically examine the logistics service preference segments for Chinese landlocked regions from a manufacturer's perspective. By understanding these attributes, not only shipping companies but also logistics companies can provide proper service to their customers. Design/methodology/approach The preliminary logistics service attributes are determined using an interview and in-depth questionnaire with logistics experts from the local private and government sectors in southwest China and few international logistics coordinators. This study conducted importance-performance analysis (IPA) and used a customer dissatisfaction attitude index to evaluate the priorities for improving logistics service attributes. Cluster analysis is subsequently performed to group respondents on the basis of their factor scores. Findings Five crucial logistics service dimensions were identified by the factor analysis, namely, packing and storage, logistics supporting, logistics information, transportation planning and information inquiry. The results also revised the IPA model. The top five service attributes that needed to be improved were carrier selection, ship scheduling inquiry, route planning and inquiry, cargo receiving station and freight forwarding. By applying the factor analysis, this study reduced the 27 logistics attributes derived from the literature review to five underlying critical factors. Originality/value This study contributes to the inland logistics by investigating the preferences of manufacturers in Chinese landlocked regions. Moreover, in land logistics in China is lacking in the literature; hence, several important implications can be derived from this study's results.


2016 ◽  
Vol 7 (3) ◽  
pp. 324-342 ◽  
Author(s):  
Leopoldo Gutierrez-Gutierrez ◽  
Sander de Leeuw ◽  
Ruud Dubbers

Purpose This paper aims to analyze the application of Lean Six Sigma (LSS) framework for supporting continuous improvement (CI) in logistics services. Both the lean philosophy and the Six Sigma methodology have become two of the most important initiatives for CI in organizations. The combination of both alternatives – LSS – brings significant benefits for companies applying this method, and its influence in logistics services can be relevant. Design/methodology/approach A case study on the logistics services of a large consumer electronics company is performed. In this sector, high quality in logistics services is crucial. Using within-case and cross-case analyses, the paper discusses the implementation of LSS in two internal logistics processes. Findings The paper identifies important implementation aspects when applying LSS to logistics services, such as CI structure, strategic analysis, cross-functional teams and process management. Furthermore, the paper discusses the potential in logistics services of the DMAIC (define, measure, analyze, improve and control) approach and tools such as value stream mapping, SIPOC (supplier, input, process, output, and customer) and process mapping. Practical implications The paper analyzes two logistics processes where LSS has been applied – a payment process and a request-to-ship process. The analysis of both processes offers relevant information about organizational implementation in a logistics services environment about process improvement and about the use of LSS tools. Originality/value First, this paper addresses the gap in literature about LSS and logistics’ activities. Furthermore, the case company, with more than 9,000 employees and distributing its products to more than 100 countries, constitutes a valuable source of information to obtain insights into the implications of implementing LSS in logistics services.


2019 ◽  
Vol 26 (10) ◽  
pp. 2223-2242 ◽  
Author(s):  
Hande Aladağ ◽  
Zeynep Işık

Purpose In build-operate-transfer (BOT) transportation projects, design and construction phases are critical in terms of their effect on time and cost overruns. The purpose of this paper is to identify the role of risk factors affecting these phases and their significance level for BOT transportation projects. Design/methodology/approach Design and construction risks were determined and then validated by focus group discussions. Afterwards, an illustrated case study was presented to better understand the effects of determined risks in a BOT mega transportation project. As the last step of the study, the fuzzy analytical hierarchy process method was used to prioritize risk factors. Findings The prominent risk factors were found out as occupational accidents, integration between design and construction phases and excessive design variations. Research limitations/implications Different kinds of BOT transportation projects in different countries might be executed very differently considering specific social, political, economic and other factors. However, the results of the study are important in terms of the specific lessons learned from the case study that can be used as a foundation for developing possible risk mitigation measures. Originality/value Though the risk management of BOT projects has been investigated frequently in the literature, there is a knowledge gap in the quantitative evaluation of risk significance specific to design and construction risks. The prioritization of determined risks with an associated case from a mega transportation project will contribute to the BOT project practitioners about possible challenges in design and construction phases in BOT mega transportation projects.


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