Evaluating logistics network configurations for a global supply chain

Evaluating logistics network configurations for a global supply chain

Purpose - This paper aims to identify and assess different configurations to design logistics networks in global sourcing contexts. A framework to support the choice of the most suitable logistics network is developed.Design methodology approach - Starting from an overview of previous research on gl...

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Bibliographic Details
Published in:Supply chain management Vol. 15; no. 2; pp. 154 - 164
Main Authors: Creazza, A., Dallari, F., Melacini, M.
Format: Journal Article
Language:English
Published: Bradford Emerald Group Publishing Limited 01-01-2010
Subjects:
Alliances
Distribution costs
Distribution management
Freight forwarding
Global economy
Inventory
Literature reviews
Logistics
Manufacturers
Manufacturing
Mathematical programming
Production planning
Sensitivity analysis
Studies
Suppliers
Supply chain management
Supply chains
Taxonomy
Transportation
Transportation services
Vertical integration
World economy
Supply chain management
Distribution management
Transportation
World economy
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Summary:Purpose - This paper aims to identify and assess different configurations to design logistics networks in global sourcing contexts. A framework to support the choice of the most suitable logistics network is developed.Design methodology approach - Starting from an overview of previous research on global sourcing and global logistics network design, followed by a series of interviews with international freight forwarders and logistics providers, five main logistics network configurations are identified and the paper proposes a framework to evaluate their cost-effectiveness, deriving the overall logistics cost by means of simulation.Findings - On the basis of the analysis of different scenarios the paper develops a taxonomy for selecting the most suitable logistics network configuration, with respect to some key logistics factors and purchasing strategies.Research limitations implications - The analysis has been focused on ocean container shipping, the primary transportation mode for world trade.Practical implications - In a context characterised by the widespread adoption of direct shipment with full container load (FCL) ocean shipping (with implications on inventory levels), the provided taxonomy can represent a useful tool to support companies in choosing the most suitable combination of configurations for setting their global logistics network.Originality value - The impact of globalisation on logistics network configuration has received little attention from supply chain researchers to date. The originality of the present paper is twofold. First, a framework to assess the overall logistics costs is developed. Second, the paper presents an original taxonomy for the selection of the most suitable logistics network.
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ISSN:1359-8546
1758-6852
DOI:10.1108/13598541011028750