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As organizations globalize to reach new markets and achieve higher production and sourcing efficiencies, logistics will play an increasingly important role in moving materials and products throughout the organizations' supply chains. For many companies, third party logistics providers (or logistics providers) represent a viable and effective alternative to fulfilling their own logistics requirements. Amidst growing competition, the logistics providers must strategize to determine how they want to position their logistics services in terms of cost, quality, features, and value‐added to their customers. This research represents the first study that examines the different strategic postures of logistics providers using Porter's competitive framework and analyzes the business performance, technologies, operations objectives, and future plans of each strategic type. The differences among the strategic types generate new managerial insights and implications for logistics managers and executives.

ABSTRACTThis paper presents a new framework for manufacturing planning and control systems which we call iterative manufacturing planning in continuous time (IMPICT) that appears to have several advantages over the well‐known material requirements planning (MRP) framework. IMPICT explicitly considers capacity constraints and total system cost (including tardiness) to determine order sizes, order release/due dates, and operation schedules in a deterministic, multi‐level, finite horizon, dynamic demand environment. Continuous time scheduling variables allow setups to be carried over from one period to the next.Three new heuristics built on the IMPICT framework are presented and tested in a simulation‐based, full‐factorial experiment with a wide variety of problem environments. The benchmark for the experiment was materials requirements planning with operations sequencing (MRP/OS) implemented with best‐case, fixed planned lead times. The experiment showed that all three heuristics were statistically better than MRP/OS. The total cost for the order merging (OM) heuristic was 25 percent better than the total cost for MRP/OS. Computational times for OM were substantially larger than for MRP/OS; however, the computational times in the experiment suggest that OM is still computationally viable for large‐scale batch manufacturing environments found in industry.IMPICT is superior to standard MRP systems because it explicitly considers capacity constraints and total system costs when it creates a materials plan. IMPICT is superior to linear programming‐based approaches to finite loading and scheduling found in the literature because it allows setups to be carried over from one period to another and because it is computationally viable for realistic‐sized problems.

PurposeThe purpose of this paper is to examine the simultaneous effects of two process variables: functional involvement in strategy formulation, and manufacturing improvement programs, on manufacturing performance and financial performance of manufacturing firms in China.Design/methodology/approachRigorous empirical research methods are used to ensure proper data collection process, and reliability and validity of constructs. Structural equation modeling is used to examine the relationships between functional involvement, improvement programs, manufacturing performance and financial performance.FindingsIt was found that involvement of marketing, finance and operations in strategy formulation have an effect on cost and quality whereas the involvement of emerging functions such as human resources, public relations, research and development and information technology have an effect on all aspects of manufacturing performance.Originality/valueStudies of manufacturing strategy have primarily focused on choices and plans that denote strategic intent, rather than on the process of formulating and realizing strategy. Typical studies have used data from developed countries, such as Europe and North America. Insufficient attention has been paid to the process variables of manufacturing strategy and their effects on manufacturing performance. The study addresses these gaps in the literature using data collected from Chinese firms.

In today's highly competitive environment, many companies are going global to acquire market share and take advantage of higher production and sourcing efficiencies. A key determinant of business performance is the role of the logistics function in ensuring the smooth flow of materials, products and information throughout the company's supply chains. To compete effectively, companies must recognize the strategic importance of the logistics function. The strategic management of logistics and supply chain practices of companies in Singapore is examined. A framework is proposed to classify companies according to the extent that logistics is used as a competitive weapon. The practices and characteristics of the various strategic groups are then examined and analyzed. The best practices of companies with strategic logistics are also identified. The use of information technology (IT) and the factors that will shape the logistics industry in the future are also explored. Being one of the first major studies on the Singapore logistics industry, generates new insights and information for logistics managers and businessmen interested in the Singapore logistics landscape.

In recent years, many foreign firms have flocked to China (People's Republic of China) to take advantage of the opportunities in the large market. However, some of these firms have faced logistical problems in transporting and distributing their goods in China. Identifies the transportation problems faced by foreign firms operating in China and examines the possible actions and factors for minimizing such problems. The objectives of this study are achieved through a survey of Singapore‐based manufacturing firms that have operations in China. The survey results show that some transportation problems were more serious than others. The type of transport mode and ownership of the transport services used can affect the degree of satisfaction for the transportation of goods in China. Also identifies the actions taken by the firms that were most effective in alleviating the transportation problems. The government can play an important role in improving the logistical environment.

Small and medium enterprises (SMEs) are recognized as playing a pivotal role in the economic growth and technological progress of many countries, yet there is a dearth of research that examines the operational performance and strategies of these smaller enterprises, especially in the Asian context. Of particular interest is the operational posture in terms of the key operations priorities adopted by successful SMEs in carving out their own competitive niches. This study is the first to develop a taxonomy of operations strategies based on the operational performance of high performing SMEs in Singapore. As Singapore is one of the most competitive countries in the world and a highly successful newly industrializing nation in Asia, the use of Singapore data provides benchmarking and best practice information for international business communities and newly industrializing countries. Three strategic clusters were identified. Analysis showed significant differences in the operational posture, financial performance and the kinds of improvement programs undertaken by the three strategic clusters. The strategic role of operations in terms of its contribution to corporate strategic formulation and financial profitability was also investigated. Managerial implications of our findings are presented.

PurposeAims to investigates the relationship of strategic choices of pure cost‐, pure differentiation‐, or a combination‐strategy on a composite measure of financial performance for third‐party logistics (3PL) providers in Hong Kong. In addition, it seeks to identify the importance of operations priorities underlying the respective adopted strategy, as well as the importance given to future competitive challenges for each strategy.Design/methodology/approachUses cluster analysis, ANOVA.FindingsLogistics service providers classified to follow different strategies report different financial performance, with companies adhering to the combined strategy of cost and differentiation performing best, followed by pure differentiation companies, which in turn outperform pure cost‐, commodity driven‐companies.Research limitations/implicationsFuture research may be widened to include customer, and not solely competitor, perceptions. Further studies could elaborate on technology adoption, information sharing, strategy formulation, operations practices, and benchmarking. Other studies could focus on the differences between high and low performers in terms of business performance, and the processes that enable low performers to become high performers; as well as comparing logistics strategies and practices between different countries.Practical implicationsThird‐party logistics providers, solely competing on cost and offering basic services only, need to differentiate to gain improved financial performance. Logistics companies can improve along multiple operational dimensions to achieve competitive advantage in the marketplace. Research identifies operational areas to be emphasized to drive strategy according to strategic orientation, as well as generic factors that will drive future logistics management in Hong Kong.Originality/valueLinking perceived financial performance to strategic choices of pure cost‐, pure differentiation‐, or a combination‐strategy for 3PL providers in Hong Kong.

ABSTRACTThis paper addresses the dearth of empirical research on the relationship between service guarantee and perceived service quality (PSQ). In particular, we examine the moderating effects of a service guarantee on PSQ. While a recent study provided empirical evidence that service quality is affected by service guarantee and employee variables such as employee motivation/vision and learning through service failure, the nature and form of the relationships between these variables remain unclear. Knowledge of these relationships can assist service managers to allocate resources more judiciously, avoid pitfalls, and establish more realistic expectations. Data was obtained from employees and customers of a multinational hotel chain that has implemented a service guarantee program in 89 of its hotels in America and Canada. As the employee variables could affect performance in a non‐linear fashion, we relaxed the assumption of model linearity by using the Alternating Conditional Expectations (ACE) algorithm to arrive at a better‐fitting, non‐linear regression model for PSQ. Our findings indicate the existence of significant non‐linear relationships between PSQ and its determinant variables. The ACE model also revealed that service guarantee interacts with the employee variables to affect PSQ in a non‐linear fashion. The non‐linear relationships present new insights into the management of service guarantees and PSQ. Explanations and managerial implications of our results are presented and discussed.