Outsourcing and offshoring engineering projects:understanding the value, sourcing models, and coordination practices

In this paper, we review recent developments in the field of outsourcing and offshoring and the implications for engineering management. We examine three aspects involved in outsourcing and offshoring, namely, sourcing models, coordination, and value extracted from outsourcing projects. We conclude that additional research is needed on recent trends in outsourcing and the impact of such change process on the practice of engineering management. © 2011 IEEE.

Innovation in outsourcing:towards a practical framework

The outsourcing industry is now up for a new challenge: to understand how innovation can be realized from outsourcing engagements. While innovation has been explored and prized within businesses for decades, it is a relatively new topic in the context of outsourcing. And, as such, the perceptions regarding what innovation in outsourcing is, what inhibits or enables innovation in outsourcing, and what client firms are willing to do to ensure they benefit from innovation in outsourcing are still being defined. This paper provides insight into some of the critical aspects in innovation in which both client firms and vendors have taken interest in recent years. We go beyond the simplistic approach we have seen in some recent reports that advocates for the development of trust and close relationships between client firms and vendors as the main enablers of innovation in outsourcing. In our view, innovation in outsourcing can be properly understood only when both contractual and relational aspects are examined as well as the nature of the innovation, i.e. incremental or radical, is explored. Further, we posit that the sourcing model applied has also an impact on the ability to innovate. © 2011 Springer-Verlag.

New studies in global IT and business service outsourcing:5th global scourcing workshop 2011, Courchevel, France, March 14-17, 2011, revised selected papers

This book contains 11 carefully revised and selected papers from the 5th Workshop on Global Sourcing, held in Courchevel, France, March 14-17, 2011. They have been gleaned from a vast empirical base brought together by leading researchers in information systems, strategic management, and operations. This volume is intended for use by students, academics, and practitioners interested in the outsourcing and offshoring of information technology and business processes. It offers a review of the key topics in outsourcing and offshoring, populated with practical frameworks that serve as a tool kit for students and managers. The topics discussed combine theoretical and practical insights, and they are extensively illustrated by case studies from client and vendor organizations. Last but not least, the book examines current and future trends in outsourcing and offshoring, paying particular attention to how innovation can be realized in global or outsourced software development environments.

Investigating local delivery by road to retail and non-retail customers in the UK logistics sector

Over recent years, hub-and-spoke distribution techniques have attracted widespread research attention. Despite there being a growing body of literature in this area there is less focus on the spoke-terminal element of the hub-and-spoke system as being a key component in the overall service received by the end-user. Current literature is highly geared towards discussing bulk optimization of freight units rather than to the more discrete and individualistic profile characteristics of shared-user Less-than-truckload (LTL) freight. In this paper, a literature review is presented to review the role hub-and-spoke systems play in meeting multi-profile customer demands, particularly in developing sectors with more sophisticated needs, such as retail. The paper also looks at the use of simulation technology as a suitable tool for analyzing spoke-terminal operations within developing hub-and spoke systems.

Logistics by rail:is this the key to more sustainable traffic policies in Northern Germany?

Despite the fact that Germany has a well- expanded traffic infrastructure, the country con-fronts a strong growth in freight volumes and it is very likely that in the forthcoming yearsit will not be able to reasonably cope with the increasing demand. Against this back-ground, the aim of this paper is to provide an in-depth analysis of the transport sector in North Germany in an effort to identify, if any, the possibilities of collapse as a result of the continuous increase in the demand of freight traffic. The research based on the DelphiTechnique, collects, analyses and summarizes the opinions of a group of experts in theaforementioned issues. Results indicate that railways could represent the solution to theforecasted growing freight volumes in the next years, not only in Germany, but also in thewhole European transport sector. In spite of continuous efforts undertaken by the politicsand the economy, the existing logistics and freight traffic concepts are not sufficient. Fi-nancing is too scarce; traffic concepts take issues like sustainability, environment protec-tion and working conditions into little consideration.

Technology adoption in small and medium-sized logistics providers

Purpose - The main aim of the research is to shed light on the role of information and communication technology (ICT) in the logistics innovation process of small and medium-sized third party logistics providers (3PLs). Design/methodology/approach - A triangulated research strategy was designed using a combination of quantitative and qualitative methods. The former involved the use of a questionnaire survey of small and medium-sized Italian 3PLs with 153 usable responses received. The latter comprised a series of focus groups and the use of seven case studies. Findings - There is a relatively low level of ICT expenditure with few companies adopting formal technology investment strategies. The findings highlight the strategic importance of supply chain integration for 3PLs with companies that have embarked on an expansion of their service portfolios showing a higher level of both ICT usage and information integration. Lack of technology skills in the workforce is a major constraint on ICT adoption. Given the proliferation of logistics-related ICT tools and applications in recent years it has been difficult for small and medium-sized 3PLs to select appropriate applications. Research limitations/implications - The paper provides practical guidelines to researchers in the effective use of mixed-methods research based on the concept of methodological triangulation. In particular, it shows how questionnaire surveys, focus groups and case study analysis can be used in combination to provide insights into multi-faceted supply chain phenomena. It also identifies several potentially fruitful avenues for future research in this specific field. Practical implications - The paper's findings provide useful guidance for practitioners on the effective adoption of ICT as part of the logistics innovation process. The findings also provide support for ICT vendors in the design of ICT solutions that are aligned to the needs of small 3PLs. Originality/value - There is currently a paucity of research into the drivers and inhibitors of ICT in the innovation processes of small and medium-sized 3PLs. This paper fills this gap by exploring the issue using a range of complementary research approaches. Copyright © 2013 Emerald Group Publishing Limited. All rights reserved.

From syntatic standards to semantic standards in the agri-food logistics domain

This paper identifies gaps in standardization of agri-food logistics. Out of the European FP7 SmartAgriFood project a framework for classifying existing standards within the agri-food supply chain is introduced. Furthermore the characteristics to which a semantic standard should adhere are investigated. The standards classified as semantic out of the framework are assessed along these properties. The resulting conclusion is that the standards that are already present in the chain are more focused on syntax and lack semantic properties.

The role of third party logistics providers (3PLs) in the adoption of green supply chain initiatives

The increasing importance of environmental sustainability has sharpened the focus on the need for innovative approaches to the purchasing of transport and logistics services. This article points out some of the challenges that purchasers of transport and logistics services, as well as their suppliers in the third party logistics (3PL) industry, are facing. These include the need for closer collaboration between 3PLs and their customers, as well as developing systems for the robust assessment of the environmental sustainability of services. The article is based on several years’ research experience in Ireland, Italy and Sweden.

The people dimension in logistics and supply chain management:its role and importance

It is widely recognised that the effective application of logistics and supply chain management (SCM) has a vital role to play in European economic recovery. Experience suggests that success in achieving higher levels of supply chain integration (SCI) depends on both physical and technical components (the hard-wiring), as well as human and behavioural components (the soft-wiring). There is significant evidence that the latter has been largely neglected by the logistics and SCM community. Furthermore, it appears that the majority of supply chain improvement initiatives by practitioners have been primarily concerned with technological, structural and process issues. This chapter argues that the difficulties often encountered in attempting to put logistics and SCM theory into practice are largely a consequence of a lack of focus and understanding of the people dimension. Based on this discussion, it offers some suggestions for improvement in this area to supply chain professionals.

Purchasing green transport and logistics services:implications for small business

Considering its strong environmental impact, logistics plays a critical role in green supply chain management. It provides strategic links in the supply chain and is an essential function in the delivery of green products to the consumer. There is a general consensus on the fact that more environmentally sustainable companies may be achieved only if transport and logistics activities also become greener. To achieve this objective, buyer companies need to incorporate green considerations in the purchasing of transport and logistics services. This appears particularly challenging for small and medium sized enterprises (SMEs) because of their traditional lack of managerial, organisational and financial resources that often result in failure to adopt an environmental perspective. In the extant literature, green purchasing has received increased attention over the past decade and the strategic importance of introducing green aspects into purchasing practices has been recognised. However, little has been written in relation to purchasing green transport and logistics services. The aim of this paper is to explore practices in the buying of green transport and logistics services and to derive implications for small buyer companies. The paper analyses how general environmental company ambitions and environmental purchasing practices are reflected when green transport and logistics services are purchased in three different European countries (Italy, Ireland and Sweden) using a multiple case study research approach. The results of the paper indicate that while the case companies show a relatively high concern for green issues at corporate level, a lower importance is attributed to green issues at the purchasing function level. When green concerns in the purchasing of transport and logistics services are analysed the level of importance decreases further. Thus, a conflicting attitude is evident between the overall corporate level and the purchasing of transport and logistics services specifically. This suggests that there is potential for improvement especially in the area of green collaboration in buyer and supplier relationships.

ICT innovation diffusion in small logistics service providers:an empirical study

For companies competing in highly dynamic markets, innovation is considered a fundamental component of a successful business as it allows companies to sustain profit margins, sales growth and reduce competitors’ pressures. Information and communication technology (ICT) is essential innovation enablers especially in service companies. The focus of the paper is on the analysis of the role of ICT in innovation processes of small third-party logistics service providers (3PLs). On the basis of quantitative evidence emerging from a recent survey carried out on the Italian 3PL market, the paper analyses how ICT is used to support innovation and the factors the inhibit/facilitate the usage of ICT in such companies. Implications for supply chain innovation management are derived from the research and managerial perspectives.