Evaluating logistics network configurations for a global supply chain

Creazza, A.; Dallari, F.; Melacini, M.

Abstract

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. © Emerald Group Publishing Limited.

Citation

Creazza, A., Dallari, F., & Melacini, M. (2010). Evaluating logistics network configurations for a global supply chain. Supply chain management, 15(2), 154-164. https://doi.org/10.1108/13598541011028750

• Journal Article Type: Article
• Publication Date: Mar 17, 2010
• Deposit Date: Nov 13, 2014
• Journal: Supply Chain Management-An International Journal
• Print ISSN: 1359-8546
• Publisher: Emerald
• Peer Reviewed: Peer Reviewed
• Volume: 15
• Issue: 2
• Pages: 154-164
• DOI: https://doi.org/10.1108/13598541011028750
• Keywords: Strategy and Management
• Public URL: https://hull-repository.worktribe.com/output/470390
• Publisher URL: https://www.emeraldinsight.com/doi/full/10.1108/13598541011028750
• Contract Date: Nov 13, 2014