Logistics of transport systems is a key driver for the growth of whatever economy. Freight transport allows production systems or common citizens to receive or send materials or finished goods required by processes as well as by everyday life However, the overall transport sector accounts worldwide for more than half of global liquid fossil fuels consumptions which, in turn, is responsible for …
The purpose of the paper is to explore the challenges of integrating corporate social responsibility (CSR) with other strategic foci into the supply/contractor chain, both conceptually and empirically, with a focus on one sectorial case: the Norwegian upstream petroleum industry. It compares contradictory theories of strategic focus and explores their implications for the organisation of the su…
The concept of sea–river shipping is simple: a single vessel sails both coastal and inland waters. Thus, seaport transhipment is avoided resulting in lower transport costs. However, this concept is limited to certain transport waterways. On the Rhoˆne–Saoˆne corridor, sea– river shipping can directly connect inland ports with Mediterranean seaports. The absence of transhipment raises th…
Since the beginning of the 20th century, the principal commercial maritime routes have changed very little. With global warming, the Northern Sea Route (NSR) has opened up as a possible avenue of trade in containerized products between Asia and Europe. This paper verifies the technical and economic feasibility of regular container transport along the NSR. By adopting a model schedule between Sh…
No comprehensive review of macro-logistics cost research is currently available. Thus the aim of this paper is to elucidate where logistics cost research is conducted, to identify research methods, and to present the logistics costs in identified extant research. Altogether 66 textbooks, scientific journals, case studies, and other studies were reviewed. The three dominant methodological app…
The purpose of this paper is to examine current practices of logistics cost management (LCM) in Mainland China and identify factors impacting on the effectiveness of LCM.
This paper presents estimates of logistics costs in Norway. Two different methodological approaches are taken: (i) use of the national freight transport model for Norway, in which logistics costs as a share of gross domestic product (GDP) are obtained from national freight flows between municipalities in Norway and from foreign trading partners and (ii) use of a survey of industry representativ…
Recent literature has emphasized the importance of transport costs and infrastructure in explaining trade, access to markets, and increases in per capita income. For most Latin American countries, transport costs are a greater barrier to U.S. markets than import tariffs. We investigate the determinants of shipping costs to the United States with a large database of more than 300,000 observation…
The adoption of third party logistics is becoming widespread in the industry. Discusses various definitions of third party logistics and the theoretical background for the development of third party arrangements, including both transaction cost theory and network theory. A theoretical framework is then developed to explain the role and motivation for this development. Transaction cost analy…
Purpose – South Africa’s logistics cost measurement was expanded to include externality costs, and scenarios based on the key exogenous risks were developed to inform mitigation strategies. This paper aims to discuss these issues. Design/methodology/approach – The research approach is quantitative, based on a gravityorientated freight flow model, a road transport cost model, actual tr…
Activity-based costing (ABC) is gradually being utilized as more of a decision-making tool than an accounting tool. This paper investigates how, after almost a decade of slow growth, ABC is gaining acceptance as a tool to determine the true costs of marketing and logistics activities. How ABC provides managers with considerable insights into how various products, territories, and customers …
This article investigates the determinants of maritime trade. It focuses in particular on the extent to which variations in trade-related costs between Asia and Europe help to explain the surge in Euro–Asian trade in eight of the most emblematic categories of products related to Asian success: textiles, footwear, confection, machinery, electronic products, vehicles, furniture and pharmaceutic…
Road transportation inevitably causes environmental problems such as air pollution, congestion and accidents. In contrast, inland waterway transportation is a costefficient and environmentally friendly alternative to road transportation. Cost is usually the most critical factor in selecting a mode of freight transportation. With a greater focus on the externalities of transportation systems, th…
In the liner shipping industry, controlling switching costs (SCs) is an important strategy for maintaining customer loyalty (CL). This study proposes a research model comprising four constructs and six hypotheses to examine how SCs helps prevent customers from switching their freight loads from one carrier to the other. Moreover, a submodel is also proposed and tested by two sample sets, separa…
In the liner shipping industry, controlling switching costs (SCs) is an important strategy for maintaining customer loyalty (CL). This study proposes a research model comprising four constructs and six hypotheses to examine how SCs helps prevent customers from switching their freight loads from one carrier to the other. Moreover, a submodel is also proposed and tested by two sample sets, separa…
The Japanese distribution system is often accused of being inefficient and responsible for high consumer prices. Discusses some critical dimensions that make distribution appear to be less efficient in Japan than the US. An empirical study compares distribution costs at all levels of the channel in the two countries, including the costs of distributing industrial products, which are ultimatel…
The purpose of this paper is to systematically describe the key practical contributions of the theory of constraints (TOC) to outbound (distribution) logistics.
Traditionally, research into supply chain management has focused on increasing the availability of products and reducing the cost of doing so by concentrating on coordination between supply chain members. Significant improvements have been made in improving the effectiveness and efficiency of supply chains. In this paper we compare the relative costs of different supply chains for grocery produ…
Integrating business processes across functions is at the heart of logistics and supply chain management. The fundamentals of compressing time across the chain are well understood. There is a common expectation among logistics professionals that cost will fall out of the supply chain from such programs. The theme of supply chain management is that many businesses are not in the trade‐off zo…
Logisticians are trained to identify trade‐offs and to devise compromising solutions which produce the lowest total costs. For example, the economic batch size is a compromise between setup costs and inventory carrying costs. Presents a problem‐analysis technique which helps the analyst to eliminate the problem so that no compromise is necessary. For example, instead of balancing inventor…
The purpose of this paper is to discuss the consequences of the newly introduced Austrian road pricing system on companies.
The purpose of this paper is to reveal how the prices, costs, and logistics develop in the case mill and how these variables correlate with profits, and finally to give suggestions for improvements.
The cost of supporting multi‐million‐pound military systems and equipment during the “in‐service” phase is now often well in excess of two‐thirds of the total cost of ownership. The management approach used to predict, budget, validate and control overall support costs is known as integrated logistic support (ILS). Explains the military approach to “designing for support”, how t…
Packaging costs (direct labor and material) account for a substantial portion of a product’s manufactured cost and so it is desirable to minimize these costs. And since major productivity gains have already been realised in manufacturing operations, the last frontier for productivity improvements appears to be in logistics. A formal methodology is therefore proposed to assess the efficiency o…
This paper aims to assess the usefulness of cost-to-serve for customer profitability management through literature review and a case study in a food-industry company.
The purpose of this paper is to describe the experiences of a wholesaler with time-driven activity-based costing (TDABC). Three research questions are addressed: How are complex logistics operations modeled by TDABC? Does TDABC provide more accurate cost information than activity-based costing (ABC)? How is TDABC cost information used?
The purpose of this paper is to propose using agency theory for assessing the likelihood of quality fade in buyer-supplier relationships and prescribing contractual mechanisms for reducing quality fade. In this paper, quality fade, an element of supply chain vulnerability, is defined as the unforeseen deterioration of agreed to or expected quality levels with respect to product and/or service r…
The purpose of this paper is to provide a service-costing framework for logistics companies that are providing land transportation via trucks.
Coordination is the management of dependencies between activities. Given that supply chains represent the functional integration of many interdependent activities associated with the flow of goods, coordination theory offers a framework for understanding and designing supply chains. Supply chains are separated into two distinct substructures: physical (dealing with the flow and storage of goo…
The purpose of the paper is to develop a framework for low-cost sourcing assessment and to explore the consequences of low-cost sourcing in China for a European manufacturer.
The purpose of this research is to describe how total cost concept with logistical based costing (LBC) is developed in detail and then used to build logistical models on the Microsoft Excele platform that are integrated from the customer’s factory to the supplier’s door.
Due to a long-lasting increase in global trade, only interrupted by the late-2000s economic crisis, container traffic has grown dramatically. As a result, new terminals have opened and existing terminals face much higher container handling than before. In order to meet these challenges, one of the biggest container terminals in Turkey has begun to reconsider its terminal operations and to achie…
Information technology is changing the nature of logistics organization. It is reducing the cost of transactions and redefining organizations and their interconnections. This paper examines the impact through the concept of transaction costs. This leads to discussion of current trends toward electronic integration and outsourcing of logistics services. The use of advanced information technology…