SUMMARY Given the increase in sourcing from low‐cost countries (LCCs), it is important to assess relative supplier performance across these regions. This work investigates the comparative performance of LCC suppliers on 14 operational indicators of international sourcing and supply chain performance. Using survey methods, the study addresses these two questions: (1) How do the LCC regions of Asia, the Western Hemisphere and Europe compare in terms of the 14 operational indicators?; and (2) How do LCC nations within these three regions compare with regard to the 14 operational indicators? Perceived differences exist among the regions of Asia, the Western Hemisphere and Europe, as well as among the LCC nations of these three regions. However, no one region outperforms the others, and no one nation outperforms the others, on all 14 operational indicators investigated. Accordingly, this study also identifies the key areas of comparative advantage and disadvantage that each LCC region and each LCC nation presents in its relationship with U.S. buying firms.
The contemporary supply chains in which container ports logistics operate are characterized by increased uncertainties driven by a range of factors such as socioeconomic factors and changing supply chain strategies in response to market dynamics. Recently, the occurrences and effects of these factors on global economic activities, and thus container port logistics, have been intensified by the COVID-19 pandemic. Enabling flexibility in port logistics is more important than ever to navigate uncertainties, now and in the post-COVID-19 world. This paper seeks to develop a conceptual framework to holistically capture different dimensions of container port logistics capacity. A systematic literature review method is employed to formulate a conceptual framework depicting the structure of various elements of capacity and the interplay among the logistics triad of transport carriers, port operators, and logistics service providers whose interactions and service capacities constitute the overall capacity of the system. The study reveals four dimensions of port logistics capacity, namely seaside interface, platform, landside interface, and system-wide, each of which consists of subelements that can be distinguished into static or adjustable. The proposed framework provides insights corresponding to the logistics triad roles and interactions within the system for understanding uncertainty characteristics, assessing various elements of capacity, and identifying potential levers to build flexibility into these interrelated capacity elements.
PurposeThe purpose of this paper is to identify the components required for more robust landed cost models given the now widespread interest in sourcing finished goods, components for assembly, and basic raw materials from global sources. This study also seeks to establish the need for broad‐based participation in operationalizing such models.Design/methodology/approachInterviews are conducted with several major firms that import a range of merchandise into the USA to develop in‐depth case studies. A taxonomy of variables found in increasingly comprehensive forms of landed cost models is developed from the case studies. These variables are assembled into modules and analyzed with the use of an expert panel consisting of executives responsible for import activities at major firms.FindingsMost major firms are relatively unsophisticated in their approach to making offshore sourcing decisions. Few employ models that are sufficiently detailed and some do not even embrace the basic logistical elements of price, transportation, and inventory. The administrative overhead required for offshoring is seldom considered nor are the potential risks associated with sourcing globally that may result.Research limitations/implicationsThe study considered only imports into the USA. Even with a relatively broad range of industries represented and the in‐depth research design, there are very few data points. Hence, this is theory building research upon which a more broad‐based methodology will be found.Practical implicationsWith firms of all sizes and industries seeking to employ offshore sources of supply, a rational approach needs to be developed to support such decisions. Historically, such actions were taken on the basis of price alone; however, such an approach is clearly suboptimal. Many firms need to develop the ability to collect the requisite data, allow sufficient time to conduct proper analysis, and establish the cross‐functional mechanism for decision making.Originality/valueThis paper provides a range of modules, the more sophisticated potentially useful for supporting effective offshore sourcing decisions. It also advances the idea that while cost advantages may be present, there may be certain risk factors that obviate offshore sourcing alternatives.
PurposeThe purpose of this paper is to investigate the issues pertinent to sourcing internationally from low‐cost countries (LCCs) and to understand which issues are associated most strongly with a firm's logistics performance.Design/methodology/approachComparative examination of supply sources in developed countries and LCCs is conducted using a paired‐sample setting. Data acquired by a mail survey of US‐based manufacturing firms are analyzed using a canonical correlation analysis (CCA). CCA helps to reveal the structure of relationships within and between a set of sourcing issue variables and a set of the logistics performance variables investigated.FindingsResults indicate that the issues that should be priorities for improvement are: supplier production capability; business culture and practices; and communication infrastructure.Research limitations/implicationsThe survey data and analysis focused on US manufacturing firms importing from LCCs. However, there is increasing activity of US retailers importing from LCCs, suggesting a need for a follow‐on study which considers the retailer perspective.Practical implicationsResults not only validate the issues to be considered in sourcing from LCCs, but also provide a direction for logistics managers in allocating an organization's scarce resources to the issues of highest potential for improving logistics performance.Originality/valueThe fast emerging role of LCCs as supply sources of US firms and the cost advantages of sourcing from LCCs are widely recognized. However, challenges associated with sourcing internationally from LCCs and the extent to which they are related to a firm's logistics performance have received limited attention in existing logistics research. This study contributes valuable insights into this area of international sourcing and logistics management.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.