Supply chain risk management (SCRM) is of growing importance, as the vulnerability of supply chains increases. The main thrust of this article is to describe how Ericsson, after a fire at a sub-supplier, with a huge impact on Ericsson, has implemented a new organization, and new processes and tools for SCRM. The approach described tries to analyze, assess and manage risk sources along the supply chain, partly by working close with suppliers but also by placing formal requirements on them. This explorative study also indicates that insurance companies might be a driving force for improved SCRM, as they now start to understand the vulnerability of modern supply chains. The article concludes with a discussion of risk related to traditional logistics concepts (time, cost, quality, agility and leanness) by arguing that supply chain risks should also be put into the trade-off analysis when evaluating new logistics solutions -not with the purpose to minimize risks, however, but to find the efficient level of risk and prevention.

Purpose – The performance of service supply chains in terms of service levels and cost efficiency depends not only on the effort of service providers but also on the inputs of sub-contractors and the customer. In this sense, performance-based contracting (PBC) entails increased financial risk for providers. Allocating and managing risk through contractual relationships along the service supply chain is a critical issue, and yet there is scant empirical evidence regarding what factors influence, and how, provider willingness to bear PBC-induced risk. This paper aims to address this gap. Design/methodology/approach – The paper draws on agency theory and two cases of logistics service supply chains, in the food retail and automotive industries respectively, to identify key influencing factors. Data were collected through semi-structured interviews with 30 managers of providers and sub-contractors and review of 35 documents, notably contracts and target letters. Findings – Four influencing factors were found: performance attributability within the service supply chain; relational governance in service supply chain relationships; provider risk and reward balancing; and provider ability to transfer risk to sub-contractors. The propositions developed address how these factors influence provider willingness to bear PBC-induced risk. Research limitations/implications – The factors identified are external to the provider mindset and refer to the management of contractual relationships and service delivery interactions along the service supply chain. The paper contributes to agency theory by stressing the risk allocation implications of bi-directional principal-agent relations in service supply chains. Practical implications – The study suggests ways in which providers can increase their capacity to bear and manage financial risk related to PBC design. Originality/value – The paper identifies factors that influence provider willingness to bear financial risk induced by PBC in service supply chains.

Purpose -The purpose of this paper is to increase the understanding of how warehouse operations and design are affected by the move toward integrated omni-channels. Design/methodology/approach -A structured literature review is conducted to identify and categorize themes in multi-and omni-channel logistics, and to discuss how aspects related to these themes impact and pose contingencies for warehouse operations and design. Findings -The review revealed a lack of focus on warehouse operations and design in multi-and omnichannels. Instead, most articles published in scientific journals discuss changes in consumer demand and implications for the network level, concerning aspects such as the organization and management of material and information flows, inventory management, resources, actors and relationships. Ten themes in omni-channel logistics were identified and grouped into two categories: the value proposition and channel management; and the physical distribution network design. The themes and related aspects have implications for warehousing, and by combining these with general warehousing knowledge, the authors derive a comprehensive and structured agenda is derived to guide future research on omni-channel warehousing.Research limitations/implications -This paper outlines a research agenda, including detailed research questions, for advancing the theory on warehouse operations and design in omni-channels. Practical implications -The agenda can inspire practitioners in their work to understand the upcoming challenges and address relevant issues in omni-channel warehousing, taking into consideration its interdependence with value proposition, channel management and network decisions. Originality/value -This is the first comprehensive review focusing on and synthesizing available literature on omni-channel warehousing. This topic has until now received limited coverage but is of increasing importance to scholars in the field.

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The main purpose of this research is to provide an agenda for future warehousing research relevant for both academic development and practitioners' needs. In order to suggest a practically relevant future research agenda, first a comprehensive literature review was performed to identify research areas covered in the literature. Then, 15 warehouse managers and senior consultants were interviewed to add empirical input to the development of potential future research areas. The literature review reveals gaps, both methodology-and topic-wise. A considerable methodological imbalance is observed. Some of the highlighted managerial concerns have been investigated in the literature extensively, but the managerial concerns emphasized mostly do not belong to the most researched categories. While most of the practitioners' concerns relate to supportive aspects of warehousing business, a relatively high number of the reviewed studies highlight operational problems. The suggested future research agenda highlights the importance of supportive aspects of the warehousing business, employment of real data in analysis and empirical research methods. The insights from practitioners stress the expected trends of business environment such as more volatile demand, higher desire for customized services and more expansion of e-commerce.

Purpose – The purpose of this paper is to explore key challenges of adopting, designing and managing performance-based contracts (PBC) for advanced logistics services, as seen by providers. The shift toward performance-based solutions has proved challenging since providers often struggle to link performance to their payment. Despite such managerial challenges, empirical research in this area has been limited. Design/methodology/approach – A multi-case design was adopted. Three cases of logistics service providers were selected based on purposive sampling. Data were collected through 38 semi-structured interviews and review of 43 documents such as contracts and customer target letters. Findings – Key PBC adoption challenges include customer and provider intention to align their goals and incentives as well as their views on risk and reward sharing. Contract design challenges center around performance metric definition and weighting, designing performance monitoring systems that consider service co-production effects and help improve customer relationship and designing incentives with appropriate intensity levels. Contract management challenges include fostering provider pro-activity, provider changes in terms of processes and resource investments, perceived fairness of designed incentives and contract re-design to allow for win-win relationship outcomes. Research limitations/implications – The study empirically contributes to extant logistics service provider literature by identifying specific challenges that extend also beyond PBC adoption and design and cover contract management (and potential contract re-design). It also unpacks the notion of performance attributability by analyzing its role also in terms of contract and performance management as well as its potential effects on customer relationship management. Practical implications – The study presents implications for logistics provider managers regarding how the observed PBC challenges can be overcome. Originality/value – The study unearths several challenges of PBC for advanced logistics services, particularly in connection to contract management and re-design.

Purpose The Physical Internet (PI) is an emerging concept that applies the Digital Internet as a design metaphor for the development of sustainable, interoperable and collaborative freight transport. With the aim of aiding researchers and policy makers in their future efforts to develop efficient logistics systems, the purpose of this paper is to present a review of the existing literature on the PI, to critically discuss the concept and to outline a research agenda. Design/methodology/approach The literature review investigates scientific papers, project reports, specifications and other publications related to PI. In total, 46 publications were finally analyzed. The approach used in this paper is technology adoption by firms. The authors examine the PI based on four factors: organizational readiness (technological blueprints), external pressure (promised effects), perceived benefits (business model) and adoption. Findings A growing number of strategies, blueprints and specifications have been developed for PI, yet there are no currently developed models that illustrate how the move from the entrenched logistics business models to the PI could ensue. There is a lack of understanding of the business models needed that can involve critical actors and promote the adoption of the PI concept. Research limitations/implications While using the internet as a metaphor for reimagining physical transports is certainly exciting, this review and analysis suggest that several research questions need to be addressed before further PI blueprint work is carried out. Practical implications The “grand challenge” of sustainability in logistics needs to be addressed and improved, but the authors’ analysis suggests that, to some extent, it is uncertain how the PI will contribute to improving sustainability, and why logistics service providers should engage in PI. Policy makers and practitioners are provided with critical issues to consider in the practical development and adoption of the concept. Originality/value This paper provides an outsider and technology-adoption perspective of PI research, as well as important implications for policy makers and researchers.

Purpose The purpose of this paper is to develop a framework for measuring the S&OP process performance. Design/methodology/approach The method used is a multiple case study of five companies from different industries based on data from 12 structured interviews. Findings The main result is a framework to measure the S&OP process. It includes concrete suggestions for organizations when developing measures to increase effectiveness and efficiency of the process. It will also help organizations to standardize measures and to enhance organizational transparency. Our results include measures for every step of the process as well as for the outcome of the process. The authors highlight the importance of cross-functional measures along with measures that focus on how to conduct the process. The framework is founded on a set of criteria on appropriate measures such as comprehensiveness, internal process efficiency, horizontal and vertical integration, internal comparability, and usefulness. The study contributes to performance measurement literature and the S&OP literature. Research limitations/ implications Validation of the framework is desirable in similar as well as other contexts. Implementation challenges should also be investigated. Practical implications The framework provides guidelines in order to measure, analyze and improve the effectiveness and the efficiency of the process. Originality/values This is the first framework for measuring the S&OP process that includes detailed measures for each step of the process, for the outcome of the process as well as how to conduct the process itself.