A case study analysis on information and communication technology usage in small logistics service companies

The impact of ICT (information and communications technology) on the logistics service industry is reshaping its organisation and structure. Within this process, the nature of changes resulting from ICT dissemination in small 3PLs (third party logistics providers) is still unclear, although a large number of logistics service markets, especially in the EU context, are populated by a high number of small 3PLs. In addition, there is still a gap in the literature where the role of technological capability in small 3PLs is seriously underestimated. This gives rise to the need to develop investigation in this area. The paper presents the preliminary results of a case study analysis on ICT usage in a sample of 7 small Italian 3PLs. The results highlight some of the barriers to effective ICT implementation, as well as some of the critical success factors.

Logistics Innovation in Small 3PLs:what is the Role of ICT?

For companies competing in highly dynamic markets, the search for new sources of competitive advantages is mandatory. Innovation is considered a fundamental component of a successful business as it allows companies to sustain profit margins and sales growth and to reduce pressures coming from competitors. In the knowledge-driven economy, information and communication technology (ICT) plays an important role as it enables innovation in product/service, processes and organisations especially in service companies. This paper investigates the role of ICT in logistics innovation. The focus of the paper is on the effects that ICT usage is having on the management of small third-party logistics service providers (3PLs). On the basis of quantitative and qualitative evidence emerging from a recent survey carried out on the Italian logistic service market, the paper analyses how ICT is used to support logistics innovation and the factors inhibiting/facilitate the usage of ICT in such companies. Implications for logistics innovation management will be outlined from both research and managerial perspectives.

An exploratory study of ICT usage in small logistics service providers

Information and communication technology (ICT) developments have strongly affected supply chain management (SCM) in recent years. ICT has had a great impact on all supply chain processes including planning, purchasing, production management, stock management, physical distribution and related integration management. Technology has become an important dimension of third party logistics (3PL) service supply as competitive advantage increasingly depends on the ability to create value for customers through the effective application of ICT. Within this process, while large 3PLs are gaining substantial benefits from technology usage and implementation, the magnitude of changes spurred by ICT dissemination in small logistics service providers remains unclear. This is reflected by the existing gap in literature where the role and competitive developing processes of small 3PLs are seriously underestimated. This gives rise to the need to develop research and investigation in this particular area. The objective of this paper is to narrow the knowledge gap in the field of ICT adoption in small 3PLs through an empirical investigation. It presents the results of a survey on a sample of small Italian 3PLs.

Purchasing green transport and logistics services:implications from the environmental sustainability attitude of 3PLs

Environmental sustainability is an area of increasing importance for third party logistics (3PL) companies. As the design and implementation of services requires interaction between buyer and 3PL, the 3PLs are in a critical position to support the efforts towards greening operations of different supply chain participants. However the literature in this field reflects a gap between the perspectives of buyers and 3PLs. This chapter attempts to fill this void through an explorative case study analysis on the environmental attitude of 3PLs in order to derive implications for buyers’ behavior. The results indicate that the buyer’s role is critical in different ways in the development of green initiatives among 3PLs. An increased orientation towards longer-term contracts and joint development would likely enhance the level of green initiatives. Indirectly, the buyer has the opportunity to influence its 3PLs through interaction with employees on different levels in the company, including top management.

ICT adoption by logistics service providers:developing a learning agenda

Recent years have seen innovations in the logistics and freight transport industry in relation to Information and communication technologies (ICT) diffusion. The implementation of such technologies by third party logistics providers (3PLs) allows the real-time exchange of information between supply chain partners, thereby improving planning capability and customer service. However, the logistics and freight transport industry is lagging somewhat behind other sectors in ICT diffusion. In relation to the latter point, it is important to note that the dissemination of ICT in logistics and supply chain management (SCM) is shifting the 3PL industry to an increasingly knowledge-intensive approach. In this process, the role of learning becomes more central and an assessment of the impact of future ICT learning needs for the logistics providers is a strategic imperative. The aim of this paper is to assess the impact of ICT on logistics and freight transport industry in Italy and Ireland, and to identify learning needs for more effective ICT adoption in 3PLs.

The use of ICT by logistics service providers and implications for training needs:a cross-country perspective

Changes in the international economic scenario in recent years have made it necessary for both industrial and service firms to reformulate their strategies, with a strong focus on the resources required for successful implementation. In this scenario, information and communication technologies (ICT) has a potentially vital role to play both as a key resource for re-engineering business processes within a framework of direct connection between suppliers and customers, and as a source of cost optimisation. There have also been innovations in the logistics and freight transport industry in relation to ICT diffusion. The implementation of such systems by third party logistics providers (3PL) allows the real-time exchange of information between supply chain partners, thereby improving planning capability and customer service. Unlike other industries, the logistics and freight transport industry is lagging somewhat behind other sectors in ICT diffusion. This situation is to be attributed to a series of both industry-specific and other factors, such as: (a) traditional resistance to change on the part of transport and logistics service providers; (b) the small size of firms that places considerable constraints upon investment in ICT; (c) the relative shortage of user-friendly applications; (d) the diffusion of internal standards on the part of the main providers in the industry whose aim is to protect company information, preventing its dissemination among customers and suppliers; (e) the insufficient degree of professional skills for using such technologies on the part of staff in such firms. The latter point is of critical importance insofar as the adoption of ICT is making it increasingly necessary both to develop new technical skills to use different hardware and new software tools, and to be able to plan processes of communication so as to allow the optimal use of ICT. The aim of this paper is to assess the impact of ICT on transport and logistics industry and to highlight how the use of such new technologies is affecting providers' training needs. The first part will provide a conceptual framework of the impact of ICT on the transport and logistics industry. In the second part the state of ICT dissemination in the Italian and Irish third party logistics industry will be outlined. In the third part, the impact of ICT on the training needs of transport and logistics service providers - based on case studies in both countries - are discussed. The implications of the foregoing for the development of appropriate training policies are considered. For the covering abstract see ITRD E126595.

Enhancing competitive advantage with radio-frequency identification (RFID) enabled returnable transport equipment (RTE)

Fierce competition within the third party logistics (3PL) market has developed as providers compete to win customers and enhance their competitive advantage through cost reduction plans and creating service differentiation. 3PL providers are expected to develop advanced technological and logistical service applications that can support cost reduction while increasing service innovation. To enhance competitiveness, this paper proposes the implementation of radio-frequency identification (RFID) enabled returnable transport equipment (RTE) in combination with the consolidation of network assets and cross-docking. RFID enabled RTE can significantly improve network visibility of all assets with continuous real-time data updates. A four-level cyclic model aiding 3PL providers to achieve competitive advantage has been developed. The focus is to reduce assets, increase asset utilisation, reduce RTE cycle time and introduce real-time data in the 3PL network. Furthermore, this paper highlights the need for further research from the 3PL perspective. Copyright © 2013 Inderscience Enterprises Ltd.

A New Charging and Billing Model and Architecture for the Ubiquitous Consumer Wireless World

In a Ubiquitous Consumer Wireless World (UCWW) environment the provision, administration and management of the authentication, authorization and accounting (AAA) policies and business services are provided by third-party AAA service providers (3P-AAA-SPs) who are independent of the wireless access network providers (ANPs). In this environment the consumer can freely choose any suitable ANP, based on his/her own preferences. This new AAA infrastructural arrangement necessitates assessing the impact and re-thinking the design, structure and location of ‘charging and billing’ (C&B) functions and services. This paper addresses C&B issues in UCWW, proposing potential architectural solutions for C&B realization. Implementation approaches of these novel solutions together with a software testbed for validation and performance evaluation are addressed.

Making sense of microposts (#MSM2013) concept extraction challenge

Microposts are small fragments of social media content that have been published using a lightweight paradigm (e.g. Tweets, Facebook likes, foursquare check-ins). Microposts have been used for a variety of applications (e.g., sentiment analysis, opinion mining, trend analysis), by gleaning useful information, often using third-party concept extraction tools. There has been very large uptake of such tools in the last few years, along with the creation and adoption of new methods for concept extraction. However, the evaluation of such efforts has been largely consigned to document corpora (e.g. news articles), questioning the suitability of concept extraction tools and methods for Micropost data. This report describes the Making Sense of Microposts Workshop (#MSM2013) Concept Extraction Challenge, hosted in conjunction with the 2013 World Wide Web conference (WWW'13). The Challenge dataset comprised a manually annotated training corpus of Microposts and an unlabelled test corpus. Participants were set the task of engineering a concept extraction system for a defined set of concepts. Out of a total of 22 complete submissions 13 were accepted for presentation at the workshop; the submissions covered methods ranging from sequence mining algorithms for attribute extraction to part-of-speech tagging for Micropost cleaning and rule-based and discriminative models for token classification. In this report we describe the evaluation process and explain the performance of different approaches in different contexts.

Practitioner perspectives on supply chain management and logistics:a study from the United Kingdom

Purpose: The focus of this paper is the evolution of supply chain management (SCM) and logistics, as well as of the relationship between them. Its purpose is to generate deep insights into practice, particularly in relation to the fundamental issue of how practitioners define these key terms and phrases. Research approach: A largely qualitative study which involved in depth interviews with managers from two third party logistics providers (3PLs)/distributors, two retailers and two manufacturers from the United Kingdom. This interview protocol is based on the template used in a previous study published over a decade ago. Findings and originality: The data collected during the focussed interviews in the United Kingdom is contrasted with results from the earlier study. The findings suggest that there is variation between practitioners particularly in relation to what SCM is specifically concerned with. This variation mirrors to a large extent the differing orientations and emphases evident in the many theoretical definitions of SCM that have been proposed in recent decades. Research impact: The authors introduced the concept of refined replication in SCM research. This allows previous research to be built upon in order to test understanding of SCM theory and its practical implementation among SCM professionals in the United Kingdom. Practical impact: A profile of SCM understanding and adoption by firms in the United Kingdom is presented .

Capabilities for advanced services:a multi-actor perspective

Servitization involves manufacturers developing service offerings to grow revenue and profit. Advanced services, in particular, can facilitate a more service-focused organization and impact customers' business processes significantly. However, approaches to servitization are often discussed solely from the manufacturer's perspective; overlooking the role of other network actors. Adopting a multi-actor perspective, this study investigates manufacturer, intermediary and customer perspectives to identify complementary and competing capabilities within a manufacturer's downstream network, required for advanced services. Interviews were conducted with 24 senior executives in 19 UK-based manufacturers, intermediaries and customers across multiple sectors. The study identified six key business activities, within which advanced services capabilities were grouped. The unique and critical capabilities for advanced services for each actor were identified as follows: manufacturers; the need to balance product and service innovation, developing customer-focused through-life service methodologies and having distinct, yet synergistic product and service cultures; intermediaries, the coordination and integration of third party products/services; customers, co-creating innovation and having processes supporting service outsourcing. The study is unique in highlighting the distinct roles of different actors in the provision of advanced services and shows that they can only be developed and delivered by the combination of complex interconnected capabilities found within a network.

Current State of Management/Union Relations in Hospitality Sector

Labor management relations in the hospitality sector is an important aspect of effective management. Increasingly, unions are becoming proactive in organizing hospitality workers. This manifests itself in strikes, boycotts, picketing, sexual harassment complaints, and complaints to OSHA regarding safety and health workplace violations. This research monitors the current scene with respect to labor management relations and analyzes work issues that have been brought up for third-party resolution by NLRB staff or arbitrators. The study reports on 66 NLRB cases and 104 arbitration cases. Issues brought before the NLRB include mostly contract interpretations. In arbitration, there were mostly discipline issues, including work rule violations, disorderly conduct, poor performance and employee theft. Quite often, the proposed job action on the part of the employer was discharge. In NLRB cases, the employee usually prevailed, while in arbitration the employer usually prevailed.

Entrepreneur's Dilemma: Hotel Investments in Emerging Markets

Estimating the required rate of return for hotel properties is a daunting task because a lodging property is considered a hybrid between a real estate asset, and a revenue-generating enterprise affiliated with a hotel brand. Computing the expected rate of return for a hotel becomes even more complicated when a third party foreign investor/entrepreneur is the one performing the computation for an investment hotel in an emerging country. This clinical case illustrates the challenges surrounding the estimation of a project’s cost of equity in the multinational hotel industry. The results reveal that estimating cost of equity in emerging markets for hotel investments continues to be a conundrum. Future investors should make multiple adjustments and use several models when making their capital investment decisions.

Adult Alternatives for Social Drinking: A Direction

In their survey/study - Adult Alternatives for Social Drinking: A Direction - by John Dienhart and Sandra Strick, Assistant Professors, Department of Restaurant, Hotel and Institutional Management, Purdue University, Dienhart and Strick begin with: “Changes in consumer habits have brought about a change in the business of selling alcoholic drinks and have impacted upon hotel food and beverage operations. The authors surveyed a sample of hotel corporate food and beverage directors to ascertain how they are handling this challenge.” Dienhart and Strick declare that the alcoholic beverage market, sale and consumption thereof, has taken a bit of a hit in contemporary society. “Even to the casual observer, it's obvious that the bar and beverage industry has undergone a great deal of change in the past few years,” say the authors. “Observations include a change in the types of drinks people are ordering, as well as a decrease in the number of drinks being sold,” they qualify. Dienhart and Strick allude to an increase in the federal excise tax, attacks from alcohol awareness groups, the diminished capacity of bars and restaurants to offer happy hours, increased liability insurance premiums as well as third-party liability issues, and people’s awareness of their own mortality as some of the reasons for the change. To quantify some empirical data on beverage consumption the Restaurant, Hotel, and Institutional Management Department of Purdue University conducted a study “… to determine if observed trends could be documented with hard data.” In regards to the subject, the study asks and answers a lot of interesting questions with the results presented to concerned followers via percentages. Typical of the results are: “When asked whether the corporation experienced a change in alcoholic sales in the past year, 67 percent reported a decrease in the amount of alcohol sold.” “Sixty-two percent of the respondents reported an increase in non-alcoholic sales over the past year. The average size of the increase was 8 percent. What Dienhart and Strick observe is that the decrease in alcoholic beverage consumption has resulted in a net increase for non-alcoholic beverage consumption. What are termed specialty drinks are gaining a foothold in the market, say the authors. “These include traditional cocktails made with alcohol-free products, as well as creative new juice based drinks, cream based drinks, carbonated beverages, and heated drinks,” say Dienhart and Strick by way of citation . Another result of the non-alcoholic consumption trend is the emergence of some novel marketing approaches by beer, wine, and spirits producers, including price increases on their alcohol based beverages as well as the introduction of faux alcoholic drinks like non-alcoholic beer and wine. Who or what is the big winner in all of this? That distinction might go to bottled water!

Managua Relief

Bob del Toro, Dianne Haley and Others with Toys for Managuan Relief. On December 23, 12:29 a.m. local time in Managua, Nicaragua, a magnitude 6.2 earthquake occurred. The earth caused widespread damage among Managua, the capital city. In Managua, 5,000 residents were killed, 20,000 were injured and over 250,000 were left homeless. In Miami, residents and relief organizations focused on helping children. Wife of General Arturo Somoza pleaded on efforts on gathering sporting goods and toys for Managua’s young people. Relief committees purchased 230 dozen balls – basketball, rubber, and volley, soccer, and others. Nearly $500 came from students in Hialeah High School. Jump ropes and jacks were donated from a sorority at Florida International University. Arrangements were made to bring 44,000 pounds of baby formula and canned meat and 13,000 pounds of medicine. Many of Miami’s corporations, associations, and residents contributed to the Managuan Relief effort. Source: The Miami News, March 19, 1973 by Lynn Feigenbaum 887-3400. april 30, 1973. Cutlines: More than 350 dozens of various balls, skate boards and games were recently purchased by the Student Governance Committee of Florida International University for the young people of Managua, Nicaragua who not only do not have enough toys but are unable to attend schools which are closed. Left to right are, Bob del Toro, Dianne Haley, Chairman of the Student Governance Committee, Hialeah Councilman Jack Weaver of the Hialeah-Managua Sister City Committee, Barbara O'Nan and Margaret Klein.