{"title":"Private warehouse investment strategies in small versus large manufacturing firms","authors":"John E. Spillan, M. A. Mcginnis, J. Kohn","doi":"10.22237/JOTM/1254355380","DOIUrl":"https://doi.org/10.22237/JOTM/1254355380","url":null,"abstract":"INTRODUCTION Historically, warehousing performed the function of long term-storage for raw materials, goods in process, and finished goods. Manufacturers fabricated products for storage in warehouses and then sold from inventory. Many warehouses were required to have inventory levels of 60 to 90 days supply to meet productions needs, customer needs, and avoid stock outs. Warehousing of the past was perceived as an inescapable cost center that functioned as a large stock-keeping unit (Coyle et al, 2003). As a result of global competition warehousing has become an important function in the supply chain for maintaining a competitive advantage in customer service, lead-times, and costs (De Koster, 1998). Warehouses have been redesigned and automated for high speed, high throughput rate, and high productivity in order to shrink processing and inventory carrying costs. With the arrival of just-in-time, strategic alliances, and logistical supply chain philosophies in the 1990s, the role of warehousing changed to faculitate the supply chain's goals of shorter cycle times, lower inventories, lower costs, and better customer service. Warehouses are now less likely to be long term storage facilities. They are more likely to be fast paced facilities with greater attention focused on high levels of stock turnover and meeting customer service objectives. In most cases the product is in the warehouse for only a few days or hours (Nynke et al, 2002). More emphasis is now focused on flow-through warehouses where products remain in the warehouse for a short period of time and then move on to their destination (Nynke et al, 2002). An additional influence on warehouse management is the importance of maximizing financial performance in all areas of the firm. Stock and Lambert (2001) use a Strategic Profit Model which emphasized the importance of logistics/supply chain management to organizational financial performance. They demonstrate the impact of investments in inventory and other assets (including warehouse investment), fixed and variable costs, and cost of goods sold on return on net worth. One choice that can impact the firm's financial performance is whether to use private or for-hire (public or contract) warehousing. In addition to affecting financial performance, Stock and Lambert (2001) discuss the advantages and disadvantages of these two warehousing strategies. This discussion is summarized as follows; private warehouses provide a high level of control, flexibility to design and operate the facility to meet specific product and customer needs, are less costly if utilization is high, may make greater use of specialized human resources, and provide tax benefits. However, private warehouses offer less flexibility to respond to fluctuations in demand and require substantial investment. Public (or for-hire) warehousing conserves capital, provides flexibility in responding to changes in market demand, avoids the risk of obsolescence of private facilities, offer","PeriodicalId":242296,"journal":{"name":"Journal of Transportation Management","volume":"21 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-09-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130487819","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"A triadic view of truck driver satisfaction","authors":"S. LeMay, Zachary Williams, Michael S. Garver","doi":"10.22237/JOTM/1254355320","DOIUrl":"https://doi.org/10.22237/JOTM/1254355320","url":null,"abstract":"INTRODUCTION Driver turnover has persistently plagued for-hire truckload (TL) motor carriers since deregulation in 1980. Many trucking firms have tried higher wages, bonus programs, family incentives, guaranteed time-home schedules, and a variety of other plans, but the problem persists--drivers switch firms or leave the industry, a process that costs trucking firms $6,000-$15,000 per driver lost (Min and Lambert 2002; ATA 2007). Although driver turnover fluctuates, on average it has risen to 121% average for large TL firms and 102% for small firms (annual revenue of $30 million or less) (ATA 2007). Some large firms have turnover rates above 200% annually. To put this in perspective, the annualized turnover rate for all jobs in the U.S. was 23.7% in 2006 (BLS 2007). Driver turnover adds to the cost of consumer goods, cuts profits for trucking firms, and lowers logistics productivity. In 2005, Ozark Motor Lines reported a 66% annual turnover rate for 750 drivers. They hired 495 drivers that year, estimating the turnover cost to be $2.5 million (Paz-Frankel 2006) and those costs were likely passed down the supply chain. As the U.S. economy faltered in 2008, an influx of workers from other industries alleviated the driver shortage and slowed turnover (CSCMP 2008). The trucking industry welcomed the new hires, but experienced managers know that bringing in new drivers puts additional pressure on training and education. New, less-experienced drivers are more likely to miss customer appointments and disrupt operations. Even experienced drivers can create these problems when they are new to a company and unfamiliar with local procedures. An important gap in the literature revolves around understanding the differences between experienced drivers and new drivers. Managers often struggle to understand drivers' perspectives and attitudes concerning job satisfaction. But no research to date has compared different perspectives between new drivers, experienced drivers, and managers. What attitudes do they share? What attitudes are different? Does management understand one group better than the other? Understanding the difference between these groups and how management perceives this situation is important for retention strategies. The purpose of this research is to compare job satisfaction for new drivers and experienced drivers, and then to compare to them to perceptions of management. In short, we will attempt to answer the following question: For different job satisfaction attributes, are there differences between new drivers and experienced drivers, and managers' interpretation of driver satisfaction? To reach these objectives, we report our findings of a literature review. Then, we discuss our research method and analysis, followed by our results. Finally, we discuss both theoretical and managerial conclusions, and outline the next steps to further this research stream. TRUCK DRIVER TURNOVER RESEARCH Research on turnover has taken three primary approaches","PeriodicalId":242296,"journal":{"name":"Journal of Transportation Management","volume":"21 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-09-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114997966","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Roles and Capabilities of the Retail Supply Chain Organization","authors":"C. Defee, Wesley S. Randall, B. Gibson","doi":"10.22237/JOTM/1254355440","DOIUrl":"https://doi.org/10.22237/JOTM/1254355440","url":null,"abstract":"Supply chain management (SCM) has become a critical strategic function in many industries during the past 20 years. SCM has developed into an integrative discipline incorporating strategic elements with process and collaboration (Gibson et al. 2005). Further, SCM has become a critical competitive weapon favored by C-level executives searching for competitive advantage (Manrodt et al. 2005). Supply chain research has increased significantly in recent years, and many techniques have been suggested for achieving supply chain goals including collaboration (Sinkovics and Roath 2004), process integration (Min and Mentzer 2004), information sharing (Sanders and Premus 2005), standardization (Bowersox et al. 1999), and aligning measures and rewards (Mentzer 2004). In addition, SCM research is now acknowledged as providing theoretical and practical insight into a variety of areas including collaboration in production (Nativi and Barrie 2006; Pfohl and Buse 2000), new product innovation (De Luca and Atuahene-Gima 2007; Zacharia and Mentzer 2007), quality (Harding 1998; Liker and Choi 2004), transportation (Lieb and Butner 2007; Van Hoek 1999) and just-in-time manufacturing (Giunipero et al. 2005; Sillince and Sykes 1993). The importance of SCM to business strategy, and ultimately business success, appears to be on solid footing. During this same period there has been an increasing awareness of a fundamental shift in marketplace power from production to retail (LaLonde and Masters 1994; Maloni and Benton 2000). Where product and production once dominated (e.g., Procter and Gamble, General Motors), organizations closer to the consumer (e.g., Wal-Mart, Target) have taken a leadership role in the supply chain. Entire streams of research have picked up on the shift from a product to customer orientation (Kirca et al. 2005; Kohli and Jaworski 1990; Slater and Narver 1995). Retailers face unique supply chain challenges, and require distinct capabilities not required of upstream suppliers and manufacturers. Great retailers survive and thrive through outstanding supply chain capabilities (Browna et al. 2005), but the penalty for disappointing customers because of a single glitch in the supply chain can be steep. One study shows retailer's share prices fell an average of 9 percent on the day a supply chain problem was disclosed, with an additional 9 percent drop recorded over the next 90 days (Morrison and Assendelft 2006). Yet from a supply chain perspective, the power shift to retail and the recognition of retail as a critically important supply chain area has been neglected, revealing a substantial gap in research. Our understanding of retail supply chain management (R-SCM) may be limited at a time when effective management of the retail supply chain is more important now and into the future than in the past (Davies 2009). The goal of this research is to address the knowledge gap identified by the relative lack of research in the area and provide insight into the","PeriodicalId":242296,"journal":{"name":"Journal of Transportation Management","volume":"75 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-09-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126283425","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Impact of Hours-of-Service Regulations on Transportation Productivity and Safety: A Summary of Findings from the Literature","authors":"Hokey Min","doi":"10.22237/JOTM/1254355500","DOIUrl":"https://doi.org/10.22237/JOTM/1254355500","url":null,"abstract":"INTRODUCTION The hours of service (HOS) regulations were first introduced by the now-abolished Interstate Commerce Commission (ICC) in 1937 as a way to protect the safety of long-haul truckers. The HOS's main purpose is to prevent truck accidents caused by driver fatigue. This is accomplished by limiting the number of driver working hours per day and week. Driver working hours include the time spent on loading, unloading, driving, handling freight, preparing reports, preparing vehicles for service, or performing any other duty pertaining to the transportation of passengers or property. The main reason for limiting driver working hours is to prevent fatigue by keeping drivers on a 21- to 24-hour schedule, maintaining a human body's natural sleep and wake cycle (so-called circadian rhythm). Drivers are required to take a daily minimum period of rest and are allowed longer weekend rest periods to combat sleep deprivation, cumulative fatigue, and time-on-task fatigue effects that accrue on a weekly basis (Federal Motor Carrier Safety Administration, 2006). Despite their intent to enhance traffic safety, HOS regulations have become sources of controversy because it is hard for the policy maker to determine exactly how long drivers should work and sleep for their safety. As such, there were numerous proposals to amend HOS regulations between 1962 and 2009, but none were ever finalized due to contentious debates over their effectiveness in enhancing traffic safety. One of the most notable proposals of those includes the highway reauthorization bill recently passed by the U.S. House of Representatives, which contained several important amendments for HOS regulations that aimed to balance the requirement for highway safety and the need for effective trucking services in the United States. Amended HOS regulations introduced by the U.S. Federal Motor Carrier Safety Administration (FMCSA) in 2003 and 2005 were generally well received by drivers, carriers, and shippers, although carriers seek more flexible sleeper berth rules. The main theme of the 2003 HOS rules is to increase an opportunity for restorative sleep by increasing the amount of off-duty time by two hours. To elaborate, these rules allowed truck drivers to drive a maximum of 11 hours after 10 consecutive hours off duty. However, truck drivers are prohibited to drive beyond the 14th hour after coming off duty, following 10 consecutive hours of duty. The 2003 HOS rules were further refined in 2005 which remained virtually unchanged as of 2008, because of a decision by the United States Court of Appeals for the District of Columbia Circuit in Public Citizen et al. versus Federal Motor Carrier Safety Administration (374 F.3d 1209) on July 16, 2005, which stated the 2003 HOS rules did not consider the impact of rules on driver health (Blanchard, 2004). As summarized in Table 1, the 2008 HOS rules intended to increase potential for quality sleep by mandating commercial motor vehicle (CMV) drivers to ta","PeriodicalId":242296,"journal":{"name":"Journal of Transportation Management","volume":"1059 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-09-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123158739","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Book Review: Trucking in the Age of Information","authors":"T. A. Brown","doi":"10.22237/JOTM/1175386020","DOIUrl":"https://doi.org/10.22237/JOTM/1175386020","url":null,"abstract":"","PeriodicalId":242296,"journal":{"name":"Journal of Transportation Management","volume":"326 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2007-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132587731","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Transportation management systems: an exploration of progress and future prospects.","authors":"Stanley E. Griffis, Thomas J. Goldsby","doi":"10.22237/JOTM/1175385780","DOIUrl":"https://doi.org/10.22237/JOTM/1175385780","url":null,"abstract":"This research reports the experiences of both adopters and non-adopters of transportation management system (TMS) technology. TMS adopters represent a diverse array of companies, with a surprisingly high percentage of adopters using outsourced services for decision support activities. Motives for adoption tend to align with the firm’s strategic needs though functionality focuses on the shipper’s dayto-day operational needs. While expectations of system performance and return on investment vary greatly, TMS users illustrate a generally high level of satisfaction. Non-adopters view decision support for transportation activities as a low priority. The article explores future prospects for TMS development and adoption.","PeriodicalId":242296,"journal":{"name":"Journal of Transportation Management","volume":"36 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2007-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116917971","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Evaluation of an expanded satellite based mobile communications tracking system","authors":"M. Nowak, A. Erera","doi":"10.22237/JOTM/1175385900","DOIUrl":"https://doi.org/10.22237/JOTM/1175385900","url":null,"abstract":"Since the terrorist events in the United States on September 11, 2001, the Federal Motor Carrier Safety Administration has been testing and evaluating cargo tracking technologies to improve the safety, security, and efficiency of commercial motor vehicle operations. While satellite-based systems used for tracking vehicles and cargo provide sufficient geographic coverage in the majority of the United States, there remain several vital regions that are uncovered and difficult to monitor. One such region is Alaska, where officials are particularly concerned with the hazardous materials shipments that are transported parallel to the Trans-Alaska Pipeline. This article analyzes the risks and benefits associated with adopting an Expanded Satellite-Based Mobile Communications Tracking System to monitor hazardous materials and high-value cargo in Alaska. Technical and acceptance risks are evaluated against the communication, safety, security and real time information benefits that the system provides. The findings indicate that the system provides a significant communications upgrade relative to previously available technology. Since the terrorist events in the United States on September 11, 2001, the Federal Motor Carrier Safety Administration (FMCSA) has been testing and evaluating technologies to improve the safety, security, and efficiency of commercial motor vehicle operations. Several key studies have evaluated vehicle and cargo tracking systems. These systems provide automated updates of location information to a dispatcher on a regular basis. They also include the ability to share critical information with carrierauthorized third parties, such as public sector agencies. While satellite-based systems used for tracking vehicles and cargo provide sufficient geographic coverage in the majority of the United States, there remain several vital regions that are uncovered and difficult to monitor. One such region is Alaska, where officials are particularly concerned with the hazardous materials (HazMat) shipments that are transported along the Dalton Highway from Prudhoe Bay in the north to Fairbanks and other cities in the south. The Dalton Highway runs parallel to the Trans-Alaska Pipeline. If a terrorist attack were to occur in Alaska, authorities believe that the pipeline would be one of the likely first targets and a hijacked HazMat","PeriodicalId":242296,"journal":{"name":"Journal of Transportation Management","volume":"48 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2007-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114801286","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"U.S. firm outsourcing/offshoring practices and plans : an update","authors":"R. Cook, B. Gibson","doi":"10.22237/JOTM/11753856720","DOIUrl":"https://doi.org/10.22237/JOTM/11753856720","url":null,"abstract":"A study of U.S. firm outsourcing and offshoring practices and future plans regarding supply chain activities provides an update for supply chain managers. Specifically, the reported information provides supply chain managers of manufacturing/ merchandising firms with a competitive benchmark; facilitates third party logistics manager strategic planning efforts and provides an input to U.S. transportation planners who determine future transport and infrastructure requirements. The study reports the responses of 151 Chief Purchasing Officers from U.S. firms. Firms are benefiting from outsourcing logistics and production activities and over one-third of the firms plan to increase outsourcing spend. In addition, 60 percent of firms outsource offshore, and of these firms, 41 percent will increase their offshore spending, some by more than 50 percent.","PeriodicalId":242296,"journal":{"name":"Journal of Transportation Management","volume":"9 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2007-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"117139086","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"A decision support approach to designing the inland logistics network in China","authors":"Hokey Min, H. Ko, Chin-Soo Lin","doi":"10.22237/JOTM/1175385960","DOIUrl":"https://doi.org/10.22237/JOTM/1175385960","url":null,"abstract":"With the unprecedented growth of international trade, a growing number of multinational firms have coped with logistical challenges of shipping products to and from unfamiliar territories in many countries. These logistical challenges include the cross-border transportation of products originated from inland port to another inland port isolated from major waterways. In particular, the lack of access to major waterways would not only constrain the intermodal transportation option, but also make door-to-door, containerized delivery services nearly impossible. Such a limited option would eventually lead to increased transportation costs and transit time, and thereby offset low-cost global sourcing advantages. To aid multinational firms in addressing the problem of determining the optimal supply chain link between inland origin and destinations ports, this article proposes a shortest-path model based decision support system. The usefulness of the proposed model-based decision support system was validated by its application to a real problem encountered by a multinational firm that would like to strengthen its foothold in the Chinese market.","PeriodicalId":242296,"journal":{"name":"Journal of Transportation Management","volume":"15 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2007-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125696423","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"First annual logistics faculty salary survey","authors":"M. Ferris, Terrance Pohlen, Jerry W. Wilson","doi":"10.22237/JOTM/1157068980","DOIUrl":"https://doi.org/10.22237/JOTM/1157068980","url":null,"abstract":"While the Association to Advance Collegiate Schools of Business International (AACSB) conducts an annual survey of business school faculty and administrative salaries, the data do not include salary figures for logistics (and related areas such as transportation and supply chain management) faculty. Since the growth in number of logistics faculty positions has continued to exceed the output of doctoral programs in the field for more than a decade, it is logical to assume that logistics faculty salaries, at all levels, are increasing. However, without factual data, what salary should a new logistics Ph.D. expect, and what should an administrator budget for a logistics faculty position? In order to provide such factual data, the authors developed an electronic salary survey and distributed it to 236 faculty at colleges and universities in the United States. It is the intent of the authors to conduct the salary survey annually, and report the results in the Journal of Transportation Management.","PeriodicalId":242296,"journal":{"name":"Journal of Transportation Management","volume":"66 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2006-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114993374","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}