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Purpose The digital advances in modern industry are accelerating changes in the broad social, economic, political and business environments within which supply chain management (SCM) is practiced. Given this extraordinary contextual upheaval, the conduct of research to identify, define, understand and explain how the digital revolution will impact key SCM concepts is imperative. The purpose of this paper is to introduce a theoretically grounded Digitally Dominant Paradigm (DDP) framework that demonstrates how digital concepts and insights can be infused into existing elements of best-practice SCM, in order to help guide future research. Design/methodology/approach Middle-range theorizing is proposed as a means to explore the ways in which researchers can explain supply chain phenomena (i.e. build theory) in the age of digitalization. Findings An example of how a DDP framework can be applied to a well-entrenched logistics/supply chain concept is provided, and the authors conclude by identifying exemplary research propositions for future exploration. Originality/value The broad goal of the paper is to spark forward-looking supply chain scholarship based upon development of a DDP of SCM.

Over the past several decades, the disciplines of marketing and logistics grew apart from their common historical origins as marketing became more behavioral and more quantitative, while logistics leaned toward a more operational orientation We argue in this editorial that social and technological changes in the past 20 years, coupled with the effects of the COVID pandemic, have created the conditions for the two disciplines to reconnect We propose that scholars and practitioners consider a consumer‐centric approach to supply chain management Such an approach advocates that the entire supply chain should focus on consumer experience rather than mere customer service and that experiences might include issues such as last‐mile delivery, supply chain visibility, and consumer values We also introduce the papers appearing in this issue of the journal

Academic conferences serve the critical purposes of bringing together scholars to not only advance the state of the art in research, teaching, and practice, but also to socialize with established and prospective members of the academic society. In this way, conferences help to instill and reinforce the values of the academic society. Logistics and supply chain scholars are increasingly targeted to join in the dialogue of different academic networks and attend conferences in tangential disciplines. This editorial speaks to the growing affinity for logistics and supply chain scholars in different disciplinary settings, yet underscores the CSCMP Annual Global Conference (AGC) and its Academic Research Symposium (ARS) as the premier forums for advancing the state of the art in supply chain scholarship and reinforcing the discipline’s traditions and values.

The merger of logistics, operations, supply management, and related disciplines into the broader field of supply chain management (SCM) has brought together academic fields with different professional identities and competing visions of what SCM ought to be, what students ought to be taught, and what the priorities for research and publication should be. This raises serious concerns because logistics faculty are less numerous than faculty in related fields. Logistics professional identity risks being diluted by the merger, resulting in potentially serious consequences for the future of logistics education and research. This paper explores these issues and offers suggestions to preserve logistics' professional identity, education and research in a supply chain world. We propose that logisticians expand the journals where they publish logistics research, continuing support for strengthening the Journal of Business Logistics as the “A” journal in logistics, rethink the way we train doctoral students, and work to preserve our community both inside and outside business schools.

Achieving impact in research is the goal of any singular article and for the journal, in total. This editorial helps to define how impact in scholarship and practice is achieved in the Journal of Business Logistics. We encourage scholars to “get out ahead” of practice by identifying problems that truly matter to industry and to conduct those inquiries using state-of-the-art methods, such that relevance, rigor, and impact are fully realized.

This article discusses the recent phenomenon of social supermarkets (SSMs) founded in Austria in the late 1990s. In essence, SSMs receive food and consumer products that are still consumable but no longer of merchantable or saleable quality from supermarkets and food processors for free, and sell them to customers who are people living in poverty or at the risk of poverty. Products are sold at significantly reduced prices thus providing an indirect support for a socially disadvantaged group. From a logistics and supply chain management perspective SSMs impose several challenges for all parties involved in the operations. In addition to traditional logistical requirements such as timely information sharing and prompt distribution, the recollection of product also affects reverse logistics and flows.

Determining appropriate inventory levels has been a subject of interest for both researchers and practitioners. Standard practice is to treat lead time demand as a random sum of random numbers and rely on established probability theory to calculate both reorder point and safety stock levels. A key assumption in these calculations, however, is that lead time and demand are not correlated. In this paper, we first explore situations where this assumption is untrue and then develop equations to determine the reorder point and the safety stock when lead time and demand are correlated. More specifically, we (1) derive formulas for the average and variance of the demand in a lead time, which can then be used to calculate the reorder point and the safety stock, (2) apply these formulas to two distributions for which there is a closed-form solution: normal and Poisson, and (3) examine the effect of correlation on safety stock requirements under the normal distribution.

Studies of consumer response to stockouts typically capture intended behavior. After a stockout experience, consumers are asked what they intend to do. In contrast, this research measured both intended and actual behavior. Consumers were interviewed twice; once immediately following the stockout experience to gauge intended behavior and a second time 30 days later to ask what they had actually done in response to the stockout. Accordingly, the goals of this research are to (1) compare consumer actual and intended behavior in response to stockouts and (2) examine product characteristics, consumer characteristics and situational variables that may explain the consumer's response. Key results suggest that indicated behavior is a good indicator of actual behavior in situations where the consumer intends to quit the search and a rather poor indicator when the consumer intends to delay the search. Finally, of the several product characteristics, consumer characteristics and situational variables examined, store loyalty, pre-visit agenda and product uniqueness have shown most promise to help managers understand consumer actual and intended response to stockouts.

Supply chains are increasingly vulnerable to catastrophic events such as hurricanes or terrorist attacks. This is not only true because firms are more exposed to catastrophes, but also the result of investments made in recent years to operate supply chains with fewer human and capital resources, especially inventory. Consequently, there is today less “slack” available in supply chains to deal with catastrophic events. Thus, proactively planning for these types of events should be a priority for supply chain managers. A catastrophic event has a very low probability of occurrence but has significant consequences if it does occur. The goal of this research is to develop a process to proactively plan for catastrophic risk events through an integration of diverse research streams related to the management of risk. In particular, the proposed process builds upon an existing risk analysis framework by incorporating an innovative methodology used by the insurance industry to quantify the risk of multiple types of catastrophic events on key supply chain locations.

When determining order quantity, logistics managers can choose between ordering the Economic Order quantity (EOQ) or a Quick Response (QR) quantity. QR is a general term that collectively describes several rapid-replenishment inventory methods such as Just-In-Time or Continuous Replenishment. The QR order quantity is defined as the minimum inventory needed to support operations until the next delivery. The EOQ and the QR methods are substantially different because the EOQ minimizes the joint cost of ordering and holding inventory whereas the QR method minimizes only the cost of holding inventory. The goals of this research are to compare the costs of the two methods and to propose rules that help managers select the more appropriate method to use in specific situations.

Network design is a cornerstone of logistics management. It is traditionally used to determine the number and location of warehouses that optimize the joint transportation and fixed warehousing cost. We propose a network design model that enables managers to include inventory cost simultaneously with transportation and fixed warehouse cost in the optimization process. The proposed model treats inventory cost as a discrete function of the number of warehouses. The research also includes an illustration of the application of the proposed model using data obtained from a national retailer based in the Midwest. Results show that savings can be substantial and that the proposed model might also be used to define different configurations for C items than for A and B items.

Businesses today are facing an unprecedented rate of change by virtue of disruptive technologies – many of which are focused on achieving “reach” efficiently in the marketplace. Organizations must evolve their business models to leverage the opportunities presented with the advent of these technologies, yet the pathways to success and failure remain unclear. Researchers of logistics and supply chain management find themselves on the front lines for these exciting developments. As editors, we encourage the research community to “get ahead” of business actions, inform strategy, and shape the next generation of competition.

Traditional measures of inventory availability, such as fill rates, focus on the availability of individual items, not availability to individual customers. This is inadequate because managers today need to be customer oriented and focus on the service delivered to specific customers. This is especially true of key customers. The purpose of this research is to introduce customer-based measures of inventory availability. Four such measures are proposed. Each is designed to enable managers to select the level of inventory availability to be offered to a specific customer. These measures use a customer's purchase history to estimate shortages in future purchases. The shortage frequency may then be managed.

Traditional measures of inventory performance focus on the availability of individual items, not individual customers. In this paper, customer based measures of inventory performance are developed. The problems with traditional item based measures are reviewed, followed by the development of four customer based measures. A discussion of the inventory management implications is presented next.

A transition in editor teams will occur at the Journal of Business Logistics before the end of the year. This brief editorial addresses vital facets of the transition. We emphasize the importance of maintaining the journal's key traditions, namely publishing applied logistics and supply chain research yielding meaningful managerial implications. We speak to remaining open to diverse research questions and assorted research methods, while emphasizing the imperative for state-of-the-art application of methods. Next, we iterate important aspects of the journal's review process. The provision of timely, knowledgeable, constructive, and detailed reviews is underscored as essential to assuring JBL's reputation as the “journal of choice” for leading-edge logistics and supply chain research.

L’environnement economique latino-americain connait actuellement des transformations majeures. D’une maniere generale, le commerce a ete liberalise, l’inflation a ete en bonne partie maitrisee, et les entreprises sont libres d’importer des technologies. Par consequent, la concurrence s’est intensifiee entre les entreprises dans la plupart des secteurs d’activite. Ce document examine, en premier lieu, l’incidence notable de ces mutations de l’environnement sur la fonction logistique des entreprises en Amerique latine. Il en deduit, en deuxieme lieu, sept regles destinees a aider les entreprises a prendre des decisions d’ordre logistique dans l’environnement actuel de l’Amerique latine. Enfin, il presente cinq strategies logistiques a meme de renforcer la competitivite des entreprises dans un proche avenir. Ces strategies ont ete retenues parce que les bases economiques et technologiques necessaires a leur mise en oeuvre existent deja

Consideramos um modelo de reabastecimento de estoque com revisão periódica junto a uma doutrina operacional encomende-até-R para o caso de prazos determinísticos de reposição e um processo de demanda estocástica com covariância estacionária. Derivamos um método para fixar o estoque de segurança a fim de obter a probabilidade da falta de estoque desejada quando a função de autocovariância de uma demanda Gaussiana é conhecida. Dado que o método não requer que modelos paramétricos de séries temporais sejam ajustados aos dados, ele é facilmente posto em prática. Ademais, o método tem se mostrado assimptoticamente válido quando a função de autocovariância da demanda é estimada com dados históricos. Os efeitos dos vários níveis de demanda autocorrelacionada no índice de falta de estoque são demonstrados em situações em que a autocorrelação de demanda é ignorada ou desconhecida pelo gerente de estoque. Similarmente, os efeitos no nível de estoque de segurança são demonstrados para vários níveis de autocorrelação.We consider a periodic-review inventory replenishment model with an order-up-to-R operating doctrine for the case of deterministic lead times and a covariance-stationary stochastic demand process. A method is derived for setting the inventory safety stock to achieve an exact desired stockout probability when the autocovariance function for Gaussian demand is known. Because the method does not require that parametric time-series models be fit to the data, it is easily implemented in practice. Moreover, the method is shown to be asymptoticaly valid when the autocovariance function of demand is estimated from historical data. The effects on the stockout rate of various levels of autocorrelated demand are demonstrated for situations in which autocorrelation in demand goes undetected or is ignored by the inventory manager. Similarly, the changes to the required level of safety stock are demonstrated for varying levels of autocorrelation.

Strategic alliances are at the forefront of current management practice. Firms with complementary skills are taking advantage of synergies among them to reduce operating costs and to secure competitive advantages. Whereas strategic alliances can take many forms, this article focuses on logistics-based strategic alliances. In these alliances, buyers, sellers, and third-party service providers in the distribution channel engage in business relationships designed to reduce the joint cost of two or more firms. We propose a typology that classifies logistics based strategic alliances along the dimensions of scope (broad versus narrow) and intensity (high versus low). Based on this typology, we offer guidelines for firms involved or interested in logistics-based strategic alliances and raise issues for further research on this topic.

We consider a periodic-review inventory replenishment model with an order-up-to-R operating doctrine for the case of deterministic lead times and a covariance-stationary stochastic demand process. A method is derived for setting the inventory safety stock to achieve an exact desired stockout probability when the autocovariance function for Gaussian demand is known. Because the method does not require that parametric time-series models be fit to the data, it is easily implemented in practice. Moreover, the method is shown to be asymptotically valid when the autocovariance function of demand is estimated from historical data. The effects on the stockout rate of various levels of autocorrelated demand are demonstrated for situations in which autocorrelation in demand goes undetected or is ignored by the inventory manager. Similarly, the changes to the required level of safety stock are demonstrated for varying levels of autocorrelation.

Competitive performance analysis typically relies on customer service surveys. This research highlights the importance of systematically including non‐customer input to customer service surveys. Findings indicate that perceptions of customers and non‐customers both on service importance and on firm performance can be significantly different. This research also examines the special requirements needed to apply results of customer service surveys in Latin America. Finally, a method for the simultaneous evaluation of multiple competitors is recommended. Strategies for developing competitive advantage based on the findings are discussed.

This paper presents the results of a survey on the marketing standardization and adaptation practices of US multinationals operating in Latin America. It expands the literature in two ways. First, previous papers on this subject have a mostly European orientation; this is the first paper to take a comprehensive look at all marketing mix variables in an underdeveloped region. Second, we offer a comparison with a previous study done in Europe. The questionnaire used in this survey replicates that of Picard, Boddewyn, and Soehl (1988). Results show that many of the standardization and adaptation practices of US multinationals operating in Latin America are significantly different from US multinationals operating in Europe.

The decision to assemble products for shipment to warehouses and retail stores is typically based on a sales forecast. This article advocates that substantial savings in transportation and inventory carrying costs can be achieved by delaying product assembly until after a customer arder is received. This delay, known as postponement, is also a lasting source of competitive advantage because firms are able to ofter customers a broader assortment of models, package sizes, and colors for its products. The article first distinguishes between four types of postponement and then points to research results which suggest managerial guidelines for the identification and implementation of postponement opportunities. A numerical example is provided to illustrate the application of the postponement.

The Principle of Postponement suggests that the final configuration of a Product be delayed until a customer order is received, thus reducing a firm's need to forecast demand for every product variation in its product line. Four heuristics which facilitate the identification of postponement opportunities are developed in this paper. These heuristics estimate percent safety stock saving from postponement. The analysis shows that these savings are explained by the correlation of sales among items in the firm's product line, the number of items in the product line, and magnitude, which is the ratio of standard deviations for every pair of items in the product line. An actual example of the application of these heuristics is presented at the end of the paper.

Most companies address these questions by supplying stores on the basis of a sales forecast that estimates sales by product and by store. Benetton's alternative approach illustrates the subject of this article. The company keeps inventories of white clothing components that are only knit and dyed once an order specifying the desired style and color is received from a store. This delay in finalizing the configuration of a product until a customer order is received is known as "postponement." Postponement is effective as a distribution strategy when errors in demand forecasting are high. Difficulties in forecasting demand arise from uncertainty regarding future market conditions and are enhanced by the size of a firm's product line. It is clearly more difficult to predict sales for sweaters of a certain color and style than sales for sweaters in general. Thus, the greater the number of colors and styles made, the greater the percentage error in sales forecasting. Forecasting error causes inventory misallocations when stores are supplied on the basis of sales forecasts, creating understocks in some stores and overstocks in others. Typical quick fixes for this situation are costly transfers between stores or price reductions in stores sustaining an overstock. When pos tponement is applied, assembly of a product is not finalized until a customer order is received, thereby eliminating the uncertainty involved in deciding where to ship it. The distribution system is hence adjusted to become less dependent on demand forecasting. Assembling in smaller batches does raise production costs, but these increases can be more than offset by savings in other areas. For example, reductions in the number of inventory misallocations reduce transportation costs. Inventory carrying costs are also reduced because separate inventories for each color and style are no longer needed. In addition to savings in transportation and inventory carrying costs, pos tponement provides greater flexibility in assembly. Products are assembled in response to a customer order, allowing the firm to improve customer choice of colors and styles with less investment in inventory. Benetton enjoys a competitive advantage in the market by offering a greater variety of garment colors and styles and by tailoring them to specific market segments. A much larger inventory would be needed if Benetton decided to keep stocks of all colors and styles in their product line. A final advantage of pos tponement is sustainability. Postponement decisions require significant changes in manufacturing and distribution. The amount of time and organizational commitment required to implement such changes makes pos tponement a difficult target for emulation by competitors and, hence, a source of lasting competitive advantage. This discussion on pos tponement will (1) distinguish among four types of pos tponement and examine costs associated with each; (2) show pos tponement research results pointing to managerial guidelines for the identification of pos tponement opportunities; and (3) discuss the measurement and implementation of decisions regarding pos tponement opportunities.

Scholars and managers in international distribution have advocated a global approach to distribution as the best strategy to cope with the globalization of markets. This research provides empirical evidence from US multinational firms that globalized distribution is not happening and is not expected to happen in the next five years. Local government regulation and competition are the major barriers preventing firms from adopting a global approach to the management of International distribution systems. The research also shows that despite this lack of success in Implementing a globalized approach to distribution, US multinationals have been more successful at implementing a globalized approach to the process utilized in making major distribution decisions.

Consideramos um modelo de reabastecimento de estoque com revisão periódica junto a uma doutrina operacional encomende-até-R para o caso de prazos determinísticos de reposição e um processo de demanda estocástica com covariância estacionária. Derivamos um método para fixar o estoque de segurança a fim de obter a probabilidade da falta de estoque desejada quando a função de autocovariância de uma demanda Gaussiana é conhecida. Dado que o método não requer que modelos paramétricos de séries temporais sejam ajustados aos dados, ele é facilmente posto em prática. Ademais, o método tem se mostrado assimptoticamente válido quando a função de autocovariância da demanda é estimada com dados históricos. Os efeitos dos vários níveis de demanda autocorrelacionada no índice de falta de estoque são demonstrados em situações em que a autocorrelação de demanda é ignorada ou desconhecida pelo gerente de estoque. Similarmente, os efeitos no nível de estoque de segurança são demonstrados para vários níveis de autocorrelação.

What is the best place for a speculative inventory in a marketing channel? Here is a theoretical analysis.

Logisticians must make strategic level decisions in order to manage uncertainty, customer service and cost. This research explores the relationships between three strategic level decisions and selected product, operational and demand variables. The three strategic decisions are: make to order vs make to stock; push vs pull inventory deployment; and inventory centralization vs decentralization. The data used to study the relationships were collected in an international environment and analyzed with correlation analysis and logistic regression. Results suggest that the three strategic decisions are each explained by specific product, operational and demand variables.