Purpose - This paper has an objective to suggest reasonable criteria in choosing Incoterms 2020 rules for efficient and effective logistics management in that the Incoterms rules affect not only the rights and obligations of the parties to the sales contract but also the control and management of logistics system and transaction costs in the transaction. Design/methodology - An analysis of the various factors is needed to assess the positive or negative impact on global value chain in choosing Incoterms rules from a total logistics view. This study analyzes the impact of which the content of individual incoterms rules can have on the operation of international logistics systems under the global value chain from a strategic perspective to suggest reasonable criteria for selection of Incoterms rules depending on the transaction situation. Findings - Results of this study shows that consideration of various aspects which includes the characteristics of the products, logistics capabilities, infrastructure, transaction volume, operational cost, customs regulations, tax and accounting should be reflected in choosing the appropriate Incoterms rules. Therefore, in order to minimize the total cost and improve logistics performance, it may be helpful to develop a decision support model which allows users to select appropriate Incoterms rules based on various influencing factors. Originality/value - This Study is different from previous research which has mainly focused on the rights and obligations of the parties to the transaction regarding the transfer of risks and costs under the Incoterms. In addition, this study has significance in that it provides implications for export and import companies that can be able to use Incoterms as a strategic tool to efficiently manage the global value chain and improve supply chain performance.
Journal of the Korea Society of Computer and Information
/
v.29
no.1
/
pp.97-109
/
2024
This research aims to investigate how major cities in Korea utilize smart city-related technologies, develop key performance indicators (KPIs) to measure the smartness and efficiency of cities, and propose a methodology for assessing and suggesting smart city policy directions based on Data Envelopment Analysis (DEA). Referring to the CITYkeys Smart City Performance Measurement Framework, 10 key performance indicators (KPIs) were derived. For each KPI, city statistical data were allocated to input and output variables, and 15 cities were assigned as Decision Making Units (DMUs). The DEA methodology was employed to evaluate the operational efficiency and scale profitability of cities, providing insights into the operational efficiency of each city. Finally, the operational efficiency among DMUs was ranked to propose smart city policy directions for each city.
Purpose: Small airports are social and economic enablers and facilitate businesses and individuals. They contribute significantly to the distribution and logistics of the local produce - be it goods or services, thereby impacting the economy but have limited access to funds and poor management restricts their development. Despite the importance, small airports in small cities struggle financially as they are unable to earn profits and have higher operating costs. In other words, this is a paradoxical situation for small airports wherein, despite losses, the regional or national public authorities still finance such airports under socio-economic obligations. Therefore, this study aims to identify the critical success factors for improving small airports' performance and propose a business model. Research design, data and methodology: Using the qualitative research, interviews with 16 stakeholders from Guwahati, Tirupati, Bhubaneswar and Dehradun airports in india were examined. Results: The analysis reveals strategic planning and low cost, non-passenger services, and development of airport economic region as the main factors contributing towards small airports' success. Additionally, providing logistics to the local businesses and creating niche markets are suggested. Conclusions: Small airports, based on their services and the means of targeting customers, could select the relevant approach to improve their overall performance and improve profitability.
The objective of this study is to verify the effect of the market orientation, CEO capacity, and environmental characteristics of overseas markets on the performance of overseas expansion among the success factors of domestic overseas expansion companies. For this purpose, employees of domestic overseas companies based in the Seoul metropolitan area were surveyed, and the hypothesis test was conducted. As a result of the verification, among the contributors to overseas advancement of domestic overseas companies, the factors of CEO capacity, overseas business_education ability, market environment and market size have a significant positive effect on the financial performance of overseas expansion. However, market-oriented factors were found to have no significant effect on the financial performance of overseas expansion. Among the contributors to overseas advancement of domestic overseas companies, the market-oriented factor, the customer-oriented factor, has a significant positive effect on the non-financial performance of overseas expansion. However, factors in CEO competency and environmental characteristics in overseas markets do not have a significant positive effect on the non-financial performance of overseas expansion.
Purpose: The purpose of the current study is to highlight the drivers of corporate environmentally and socially sustainable performance among different players including airlines, caterers, suppliers and logistics companies in the flight catering supply chain. Research design, data and methodology: Based on a qualitative research approach this study employed in-depth semi-structured interviews exploring the drivers of corporate sustainable performance with management from major in-flight catering stakeholders (n=23) from the perspective of constructivism. Using the snowball sampling approach, interviewees were carefully chosen to represent a diverse range of supply chain contexts (airlines, catering, non-food suppliers, and logistics companies). Results: By focusing on the complex context of multiple supply chain partners, the study identified a range of complex relationships between the drivers of sustainable performance in the supply chain: firm-led drivers, factors influencing firm-led drivers, partial influencers, and additional factor, cost. Conclusions: This study emphasizes that some drivers do not play an absolute role and has highlighted that there is a need for companies to change the attitude, that is to pay more than 'lip service' to improving sustainable performance. This study develops a theoretical framework of the drivers of corporate sustainable performance, along with its practical industry implications.
Purpose - Despite the importance of price, many companies do not implement pricing policies smoothly, because typical price management strategies insufficiently consider logistics efficiency and an increase in logistics costs due to logistics waste. This study attempts to examine the effect of product line pricing, which corresponds to product mix pricing, on logistics efficiency in the case of manufacturer A, and analyzes how logistics performance changes in response to these variables. Research design, data, and methodology - This study, based on the case of manufacturer A, involved research through understanding the current status, analyses, and then proposing improvement measures. Among all the products of manufacturer A, product group B was selected as the research object, and its distribution channel and line pricing were examined. As a result of simulation, for products with low loading efficiency, improvement measures such as changing the number of bags in the box were suggested, and a quantitative analysis was conducted on how these measures influence logistics costs. The TOPS program was used for the Pallet loading efficiency simulation tool in this study. To prevent products from protruding out of the pallet, the maximum measurement was set as 0.0mm, and loading efficiency was based on the pallet area, and not volume. In other words, its size (length x width) was focused upon, following the purpose of this study and, then, the results were obtained. Results - As a result of the loading efficiency simulation, when the number of bags in the box was changed for 36 products with low average loading efficiency of 73.7%, as shown in
, loading efficiency improved to 89.9%. Further, from calculating logistics cost based on the cost calculation standard of manufacturer A, the amount of annual logistics cost reduction amounted to 101,458,084 KRW. Given that the sum of the logistics cost of the product group B of manufacturing enterprises A is 400,340,850 KRW, it can be reduced by 25%, to 298,882,766 KRW. Although many methods improve loading efficiency, this study proved that logistics cost could be reduced by changing the number of bags within boxes. If this measure is applied to other items, visible logistics cost reduction effects will be realized through improvements in loading efficiency. Conclusions - Future pricing policies should consider their correlation with quality, loading efficiency, product specifications, and logistics standardization to prevent logistics waste, enabling management to improve earnings for companies. Thus, when companies decide pricing policies for new products, the aspects of merchandising and marketing should take priority; however, the aspect of logistics also needs to be considered as significant. Measures revealed by the study results are not only the responsibilities of manufacturing enterprises. Pricing policy agreements between manufacturing enterprises and distribution companies, and logistics factors related to price determination should be considered; further, governments should also support them for their collaborations. This will enable consumers to purchase quality products with low prices.
Global competition has resulted in companies' expectations to heighten competitiveness and enhance customer service through ownership companies' reduced investment on logistics costs, in turn focusing on the development of core competence, in addition to logistics companies' increased tendencies to satisfy customers' needs and requirements through logistics outsourcing. However, a partial perspective of the logistics contract exists due to its flexible characteristic in order to act accordingly in times of sudden changes and uncertainty. Therefore, this study is designed to test through a survey the standard of desired format of logistics contract in comparison to the currently existing format based on the results of researcher's previous study on the specific clauses in the logistics contract and its effect on the logistics outcome. A hypothesis has been designed to test the differences of perspective between two test groups, and a t-test &IPA (Importance-Performance Analysis) was performed. As a result, firstly, there was a significant difference of perspective between the ownership companies and logistics companies when dealing with the logistics contract; secondly, a significant difference of perspective was also expressed between the two groups on how to guide and re-direct the present standard of logistics contract. In addition, the two groups also showed a difference of expectations between the current and future service standard. Therefore, this study is designed to specify the difference of perspective and expectations between the ownership companies and the logistics companies in order to provide a gateway for the two groups in order to further develop and enhance the field of logistics.
During the fierce competition among the companies, improvement of logistics center managing efficiency is importantly recognized. Among them, studies on improvement of picking work process on about 55% of logistics center managing costs are continuously conducted. And, most of studies focus on analysis on strengths and weaknesses of picking method performable on the stage of logistics center design, etc, so the purposes of this research are to define load location rule by product releasing frequency in logistics managing environment based on conveyer and suggest expected effects by simulation analyzing method to improve picking managing efficiency.
Across many industries, benchmarking is considered useful method to improve their service quality and achieve competitive advantage. Benchmarking, especially, has emerged as an increasingly important approach to improving the performance of logistics system and enables successful logistics services and doing good business in logistics services. There are no, however, literature approach for the relationship between benchmarking and port. It is the highest worth researching the application of benchmarking method on the port, since port is the most important component in supply Chain. Therefore, this paper tries to demonstrate the application of the benchmarking method on the port. To do this study, the literature approach developed by several researchers for logistics benchmarking is used as the basic framework. In addition, the following studies are executed: First, the survey of previous studies on logistics benchmarking. Second, finding the indicator and selecting the target in the port benchmarking. Third, the systematic execution schemes of the port benchmarking. Finally, based on the above studies, this paper provides a background for discussions on the future prospects for the application of the benchmarking method on the port.
As today's business environment has become more and more competitive, forward as well as backward flows of products among members belonging to a supply chain have been increased. The backward flows of products, which are common in most industries, result from increasing amount of products that are returned, recalled, or need to be repaired. Effective management for the backward flows of products has become an important issue for businesses because of opportunities for simultaneously enhancing profitability and customer satisfaction from returned products. Since third party logistics service providers (3PLs) are playing an important role in reverse logistics operations, they should perform two simultaneous logistics operations for a number of different clients who want to improve their logistics operations for both forward and reverse flows. In this case, distribution networks have been independently designed with respect to either forward or backward flows so far. This paper proposes a mixed integer programming model for the design of network integrating both forward and reverse logistics. Since the network design problem belongs to a class of NP-hard problems, we present an efficient heuristic algorithm based on genetic algorithm (GA), of which the performance is compared to the lower bound by Lagrangian relaxation. Finally, the validity of proposed algorithm is tested using numerical examples.
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