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J IT Systems and External
Logistics Suppliers
Michael S. Spencer
The University of Northern Iowa, Cedar Falls, Iowa,
Dale S. Rogers
University of Nevada, Reno, Nevada, and
Patricia J. Daugherty
The University of Georgia, Athens, Georgia, USA
Introduction
Success of just-in-time (JIT) systems in the manufacturing environment has been
documented by a number of researchers[1-7]. Historically, JIT has generally been
viewed as an inventory reduction technique which can be used to reduce
continually the levels of inventory in a production process until stopped by some
event (the rock in the lake and rocks illustration often used to describe JIT).
When this happens, the event is attacked and the barrier to further inventory
reductions (such as a lengthy set-up) is removed. Inventory reduction continues
until another barrier is encountered. Given this interpretation of the JIT
approach, some early researchers argued that JIT warehousing is a contradiction
in terms; the very existence of a warehouse represents an obstacle to achieving
continued inventory reductions. However, a more appropriate view of JIT
logistics role is that it should increase deliveries of purchased components to the
points of use and, ultimately, eliminate warehousing activities. The kanban
method of triggering the movement of material should be sufficient to
orchestrate the production process.
Over time, more JIT implementations succeeded and a very different picture
emerged concerning the role of JIT logistics. Some JIT practitioners and
researchers came to realize that JIT success depends on the performance of the
system as a whole. Thus, the integration among the various functions becomes
critical[8-10]. Because JIT crosses many functional lines within an organization,
support from the various functional groups is essential if JIT is to achieve its full
potential[11-15]. The systems viewpoint of JIT is especially significant with
respect to the purchasing function. Successful JIT places new demands on the
purchasing department. Recent research highlights the importance of functional
integration: Through interviews with purchasing and materials management
executives, it became apparent that purchasing and materials management
involves more than assuring the continuous flow of materials into an
organization; it has become a critical component to the development of a firms
competitive position. As such, purchasing and materials management activities
are beginning to integrate with a series of simultaneous activities of a total
materials supply system[16].
International Journal of Operations
&Production Management, Vol. 14
No. 6, 1994, pp.60-74, MCB
University Press, 0144-3577
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The Logistics System
In spite of potential gains from JIT implementation incorporating a systems-
wide approach, it has been suggested that only a limited number of
implementations actually use a systems-wide approach encompassing logistics
functions[17]. Logistics, a single logic to guide the process of planning,
allocating, and controlling the financial and human resources committed to
physical distribution, manufacturing support, and purchasing operations[18],
involves ... directing and regulating the orderly movement of material and
related information through the entire manufacturing cycle from acquisition
of raw material to delivery of finished product[19].
A significant question emerges when the logistics functions are viewed from
a systems-wide perspective. What aspects of JIT are applicable to the entire
logistics system which can result in the elimination of wasteful activities and,
thereby, reduce total costs throughout the system?
Outsourcing Logistics Activities
Many of the most successful companies have developed a JIT strategy of
focusing on the areas in which they have a competitive edge, their core
business. As a result, the companies decide to purchase non-core functional
needs from outside suppliers[20-23]. Time and resource constraints often make
the utilization of external suppliers a viable option. Logistics functions are
prime candidates for outsourcing. Third-party logistics or outsourcing involves
the use of outside suppliers to provide all, or part, of a companys distribution
requirements including transport, warehousing, customer service, inventory
control, and communication/information requirements.
The rationale for using external logistics suppliers is based on
resource allocation. Employing them can free workforce, managerial, and
financial resources. Additionally, capital investments can be avoided which do
not contribute directly to the core business. This may include warehouses,
transportation vehicles and computer resources. Logistics outsourcing has
grown considerably over several years, largely due to transport deregulation.
The transport and warehousing industry of today is very different from the
picture which many people have of a 1930s warehouse and trucking firm.
Under JIT, purchasing seeks to move away from the traditional adversarial
role by establishing and managing supplier-partners. Purchasing of transport
and logistics services is not really different from purchasing materials. In spite
of this, the literature suggests that only a small percentage of JIT firms actually
view logistics providers as supplier-partners[24]. Perhaps this is the result of
the bias introduced by early JIT research previously discussed. Alternatively it
could be because of concerns about the reliability of transport and warehousing
companies or the result of misinformation concerning the availability of
competent logistics service providers. Because of this, manufacturing
companies may miss opportunities to extend the JIT concept throughout the
logistics channel to gain further competitive advantages.
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Logistics Survey
Logistics suppliers were surveyed in order to investigate the role of various
logistics activities in the development of a total materials supply system.
The purpose of the research was three-fold. The first objective was to determine
the extent to which logistics suppliers utilize and/or provide select services,
computer applications and technologies. Second, the research sought to identify
trends in the usage of third-party logistics services. Finally, the third objective
was to determine specific evaluative criteria which can be used to identify the
best supplier of logistics services. The knowledge gained can guide the
development of logistics supplier-partnerships to support JIT systems.
Methodology
A five-page questionnaire was developed and mailed to all firms listed in the
American Public Warehouse Register, plus a random sample of logistics service
firms identified from the mailing list of Traffic Management magazine. A total
of 2,771 questionnaires were mailed of which 453 were returned as
undeliverable. Of the 2,318 surveys mailed, 164 were completed and returned.
A subset of respondents, 154 firms offering warehousing services, was used for
the current analysis. Of those 154 firms, approximately 80 per cent listed
warehousing as their primary business and the balance indicated involvement
both in warehousing and trucking. Demographic data including primary
products handled by the firms and gross revenues were obtained. Respondents
were asked to indicate what types of product or industry they handled on a
regular basis. A broad range of industries are represented. Average annual
gross revenues per respondent firm were $54.7 million (range from $84,000 to
$2.2 billion).
Examination of the responses by firm size and industry affiliation indicates
that a diverse range of warehousing companies completed the questionnaire.
Additionally, significant variance in responses was noted. Because of this, the
154 respondents are assumed to represent a broad cross-section of the targeted
population. This assumption is further supported by the fact that the authors
randomly selected 30 non-respondents for follow-up telephone interviews.
Comparisons indicated no significant differences between respondents and non-
respondents regarding relevant variables and demographics.
Survey Results
While outsourcing or the use of external logistical service providers has become
more popular in recent years, different levels of involvement are noted ranging
from full-line service providers to firms which specialize in offering a much
narrower range of services. In order to assess their extent of involvement,
respondent firms were asked to indicate types of service provided as well as
computer applications and technologies utilized in their business operations.
The three lists, which are included in the Appendix, were developed based on
previously published research[25,26].
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Services Provided
Survey participants were asked to identify the logistics services which they
currently provide to customers as well as the services which they anticipate
offering within the next three years. Table I presents a detailing of their
responses.
As noted, the respondents indicated fairly widespread availability of services.
To facilitate discussion, two additional tables have been developed. Tables II
and III detail respectively the most commonly offered services and those which
are most likely to be added.
Table I.
Services Provided
Percentage of respondents:
Currently Planning to provide With no plans
Service providing (3 years) to provide
Advertising and promotion 15.4 4.1 80.5
Air freight 62.7 4.5 32.8
Barcoding 28.4 47.8 23.9
Break bulk 83.7 7.1 9.2
Computer applications support 74.0 13.7 12.3
Computer equipment 58.4 10.2 31.4
Customer billing/collection 46.1 15.6 38.3
Consolidation 86.1 5.6 8.3
Domestic freight forwarding 68.3 7.9 23.7
EDI 59.9 26.8 13.4
Facilities design 36.8 9.8 53.4
Freight bill audit/payment 43.1 16.1 40.9
Hazardous material handling 41.9 5.1 52.9
Inbound transport 78.5 4.2 17.4
International freight forwarding 45.3 19.0 35.8
Inventory management 91.4 3.3 5.3
Logistics consulting 56.7 14.2 29.1
Market research 18.0 9.8 72.2
Office space 79.2 2.8 18.1
Order processing 85.0 2.7 12.2
Order fulfilment and support 45.3 9.5 45.3
Outbound transport 90.7 2.0 7.3
Packaging 81.4 7.6 11.0
Pick and pack 88.5 6.1 5.4
Price marking/ticketing 46.5 12.4 41.6
Product assembly/reprocessing 60.1 12.3 27.5
Product repair and servicing 39.1 8.7 52.2
Purchasing 20.9 7.5 71.6
Refrigeration storage 43.6 11.4 45.0
Return goods handling 82.3 5.0 12.8
Repackaging 91.8 1.4 6.8
Sales forecasting 6.1 12.2 81.7
Salvage and scrap disposal 67.9 7.1 25.0
Same day shipping 96.6 0.7 2.7
Shipment routeing 100.0 0.0 0.0
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Table II lists the ten most commonly offered services. Since all of the firms
indicated warehousing as their primary or principal area of business,
warehousing was not included in Table II. As would be expected, examination
of the listing indicates that the firms are focusing on providing core business
functions. Consistent with recent trends towards competing based on
time/speed, all of the firms provide shipment routeing and nearly 97 per cent of
the respondent firms offer same-day shipping capability. Over 90 per cent of the
firms concentrate on core warehousing services including repackaging,
inventory management, and outbound transport. These services represent a
basic package or grouping of services necessary to provide top-quality
warehousing service.
Consolidation, order processing, break bulk, returned goods handling,
and packaging services are offered by more than 80 per cent of the respondent
firms. Once again, these services are reflective of an ability to provide
comprehensive services covering routine requests. They also reflect the need to
develop a variety of expertise. Warehousers today must do more than move
boxes around. For example, many are receiving requests to do specialized
Table II.
Most Commonly
Offered Services
Percentage of
Service respondent firms offering
Same day shipping 96.6
Repackaging 91.8
Inventory management 91.4
Outbound transport 90.7
Pick and pack 88.5
Consolidation 86.1
Order processing 85.0
Break bulk 83.7
Returned goods handling 82.3
Packaging 81.4
Table III.
Computer Applications
Percentage of
Service respondent firms adding
Barcoding 47.8
EDI 26.8
International freight forwarding 19.0
Freight bill audit/payment 16.1
Customer billing/collection 15.6
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packaging. Offering such customized services can help to forge long-term
relationships with customers.
It is also of interest to look at the services which the firms are likely to add in
the near future (Table III). Nearly half the respondents indicate that they will be
adding barcoding services within the next three years. This, undoubtedly, is in
response to increasing requests from wholesalers and retailers to receive
packages pre-marked to speed handling and help with inventory tracking.
A little over one-quarter of the firms anticipate expansion into EDI linkages
during the next three years. Improved communication capabilities can improve
operating efficiency and, in many cases, have become standard practices.
Many dominant channel firms now mandate that their trading partners become
EDI-ready if they want to continue to do business with them.
The balance of the services which are most likely to be added within the next
three years international freight forwarding, freight bill audit/payment, and
customer billing/collection are indicative of strong emphasis on information
and communications support. They are also consistent with recent trends
towards globalization and one-stop shopping. It is easier to make sales of new,
expanded service offerings to existing customers than to attract new customers.
Computer Applications
Computer applications play a key role in support of business operations.
Adequate information becomes even more critical to support external supplier
relationships. The respondents were asked which of the 19 computer
applications listed in the Appendix they currently utilize. Table IV details the
extent of utilization among the respondent firms.
Once again, the most common current applications as well as those which are
most likely to be added within the next three years are presented (Tables V and
VI). The most common computer applications among the respondent firms are
those which provide support for core warehousing functions. For example, the
vast majority use computers to manage inventory and warehouse on-line
receiving. Roughly four out of five respondents also have computerized order
systems, i.e. order entry and order processing. Approximately two-thirds also
have computerized warehouse order selection and outbound freight
consolidation. These applications represent the support which is needed to
handle routine business.
The most commonly used computer applications also indicate that the
warehousing firms are emphasizing control procedures as well as monitoring or
trying to improve efficiency. Slightly less than half of the respondents currently
have computer applications for supporting financials, performance
measurement, and vehicle routeing and scheduling. Close to 40 per cent have
computerized warehouse workload balancing systems.
The computer applications which are most likely to be added within the next
three years go beyond the basics. They represent efforts to enhance efficiency as
well as desires to monitor and control business operations. Approximately one-
third of firms anticipate acquiring computer programs to improve warehouse
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short-interval scheduling and workload balancing. Approximately one-quarter
of the respondents indicate plans to install distribution modelling and vehicle
routeing and scheduling programs. These additions are reflective of objectives
to improve efficiency. One in four of the respondents also indicated greater
Table V.
Most Commonly Used
Computer Applications
Percentage of
Computer application respondent firms using
Inventory control 90.9
Warehouse on-line receiving 84.6
Order entry 84.0
Order processing 83.6
Warehouse order selection 68.7
Outbound freight consolidation 62.8
Supporting financials 48.6
Performance measuring 47.3
Vehicle routeing and scheduling 47.3
Warehouse workload balancing 39.2
Table IV.
Computer Applications
Percentage of respondents
Currently Planning to install No plans/not
Computer application using (3 years) applicable
Direct product profitability 15.8 18.7 65.5
Distribution modelling 18.0 27.3 54.7
Freight audit/payment 34.0 10.9 55.1
Inbound freight consolidation 36.4 11.4 41.2
Inventory control 90.9 2.6 6.5
Order entry 84.0 3.3 12.7
Order processing 83.6 3.9 12.5
Outbound freight consolidation 62.8 14.5 22.7
Performance measurement 47.3 24.3 28.4
Purchasing 15.5 9.9 74.6
Sales forecasting 11.8 15.3 72.9
Shelf management 29.1 17.7 53.2
Supporting financials 48.6 5.6 48.8
Vehicle routeing and scheduling 47.3 24.0 28.7
Warehouse merchandise locator 80.1 11.3 8.6
Warehouse order selection 68.7 16.3 15.0
Warehouse on-line receiving 84.6 4.0 11.4
Warehouse workload balancing 39.2 30.8 30.0
Warehouse short-interval scheduling 29.3 36.4 34.3
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usage of performance measurement computer applications in the future. This is
consistent with the general trend of increased emphasis on performance and
monitoring service levels.
Installed Technologies
Respondents were also asked to indicate which technologies they currently had
installed within their business operations and which they plan to install within
the next three years. Extent of involvement is detailed in Table VII.
Tables VIII and IX present the most common installed technologies and those
which are most likely to be added respectively. Only the five most commonly
Table VI.
Computer Applications
Planned to Be Added
(within Next 3 Years)
Percentage of
Computer application respondent firms adding
Warehouse short-interval scheduling 36.4
Warehouse workload balancing 30.8
Distribution modelling 27.3
Performance measurement 24.3
Vehicle routeing and scheduling 24.0
Table VII.
Installed Technologies
Percentage of respondents
Currently Planning to provide With no plans
Technology installed (3 years) to provide
Automated material handling 14.9 13.5 71.6
equipment
Automated storage and retrieval 6.7 10.7 82.6
systems
Barcodes 24.8 47.7 27.5
CD-ROM 10.6 23.0 66.4
Computer-aided warehouse design 20.0 24.7 55.3
Electronic data interchange (EDI) 56.3 25.2 18.5
Expert systems 11.3 18.3 70.4
Handheld data entry devices 26.2 43.6 30.2
Local area networks 23.6 26.4 50.0
Microcomputers 52.0 19.6 28.4
Neural networks 5.1 9.4 85.5
On-board computers delivery vehicles 6.7 32.2 61.1
On-board computers lift trucks 9.5 37.8 52.7
Optical scanning 13.8 36.2 50.0
Robotics 3.3 0.0 96.7
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installed technologies are presented because the other technologies examined
were utilized by no more than 20 per cent of the respondents.
As detailed, approximately half of the respondents currently use electronic
data interchange (EDI) and microcomputers in their day-to-day business. About
one-quarter of the firms use handheld data entry devices, barcodes and local
area networks. Each of these represents a technology which either is already
considered standard equipment or is close to that status.
Examination of Table IX provides further confirmation of those trends.
Two of the most common technologies head the list as being most likely to be
added in the next three years. Over 40 per cent of the firms will install
barcoding and handheld data entry devices which will raise the level of
involvement in the two technologies among the survey respondents to about 70-
75 per cent. The remaining technologies on-board computers on lift trucks,
optical scanning, and on-board computers on delivery vehicles which are
likely to be added by about one-third of the respondents apply to day-to-day
business transactions and focus on improving speed, accuracy and information
availability.
Anticipated Usage of Third-party Services
Because of their involvement in providing one or more types of logistics service,
it was believed that the participants would be good judges of what is likely to
be ahead for logistics service providers. The respondents were asked
to project service trends using a five-point scale where 1 indicates much less
Table IX.
Planned Technology
Expansion (within Next
Three Years)
Percentage of
Technology respondent firms adding
Barcodes 47.7
Handheld data entry devices 43.6
On-board computers lift trucks 37.8
Optical scanning 36.2
On-board computers delivery vehicles 32.2
Table VIII.
Most Common
Technologies Installed
Percentage of
Technology respondent firms using
Electronic data interchange (EDI) 56.3
Microcomputers 52.0
Handheld data entry devices 26.2
Barcodes 24.8
Local area networks 23.6
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use, 3 means that usage will remain steady, and 5 indicates much more use.
Results are presented in Table X.
As detailed in Table X, the survey respondents are optimistic about the usage
of outside or third-party logistics service providers. Almost all of the services
examined are expected to show at least moderate growth in the next five years.
There are a few exceptions. Those services with the expectation of decreased
demand include: wholesalers, specialized heavy hauler carriers, household
goods carriers, tank-truck carriers, hazardous materials carriers, and standard
Table X.
Warehouse Providers
Perspectives:
Anticipated Usage of
Third-party Services
(in the Next Five Years)
Service Mean
a
Third-party warehousing services:
Warehousing 4.02
Order fulfilment and support 3.88
Inventory management 3.77
Consolidators 3.76
Order entry and processing 3.71
Freight audit and payment 3.50
Freight forwarder 3.44
Broker 3.15
Wholesaler 2.84
Third-party motor carrier services:
Regional carrier 3.84
Contract carrier 3.83
Packaged express carrier 3.78
Common carrier LTL 3.73
Common carrier TL 3.47
Refrigerated carrier 3.19
Hazardous materials carrier 3.13
Specialized heavy hauler 2.73
Household goods carrier 2.72
Tank-truck carrier 2.69
Third-party air freight services:
Pickup and delivery 3.78
Package express carrier 3.67
Customs house brokerage 3.11
Packing and crating 3.10
Hazardous materials carrier 2.85
Third-party rail services:
Intermodal services 3.75
Piggyback 3.51
Stacktrains 3.40
Roadrailer 3.09
Standard 2.69
a
Scale: 1 = will use much less; 5 = will use much more
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railway services. However, 23 of the 29 third party services anticipate increased
demand.
A few of the third-party services with the best projected demand growth are
warehousing, order fulfilment and support, regional carriers, contract carriers,
airfreight pickup and delivery, airfreight package express carrier service, and
intermodal railway services. External or third-party warehousing is likely to
have strong demand because of the capital commitment involved. Many firms
will choose to outsource warehousing needs on a regular basis because of the
financial resources required to establish a proprietary system. Others will use
warehousing on a less frequent basis to cover peak demand or during periods of
erratic or highly fluctuating sales. The same applies to the utilization of
regional and contract carriers as well. It is cheaper to use an external transport
provider than to establish and maintain a fleet. Several of the third-party
services with the best forecast demand for example, order fulfilment and
delivery or airfreight package express service reflect the likelihood of a
continued need to focus on speed. If external firms can provide high-quality
service consistently and fast, they stand a good chance of surviving
competitively. This is especially important in support of JIT systems.
Selection Criteria
The traditional approach to selecting transport and/or warehousing suppliers
was largely based on minimizing costs. While it is still important, cost is only
one factor among many to be considered when developing a supplier
partnership. JIT purchasing is markedly different from traditional approaches.
First, JIT methods seek to develop a few sources or sometimes a single source of
supply. Quality and reliability become more important under JIT as buffer
inventories are removed from the system. Suppliers are seen as long-term
partners and are asked to participate in manufacturing decisions.
With a JIT system, information is routinely shared between the supplier
and buyer. There is much less time to react to changes and requests. Sharing
of information in advance to as great an extent as possible can help to prepare
the supplier partner to be ready to accommodate changes as necessary.
Additionally, incoming inspection is reduced or eliminated. JIT places emphasis
on preventing quality defects rather than discovering problems during an audit.
These comments are general observations about JIT purchasing. In order to
gain more insight into buying decisions, respondents were asked to indicate
their views as to the relative importance of selected evaluative criteria for
choosing outside service vendors. Review of their answers can provide an
indication of how good a match should be possible between JIT
manufacturing operations and third-party logistics service providers as well
as providing an indication of which service-related attributes are more
important. It can also help logistics service providers to develop the best service
package to sell to companies with JIT systems.
Not surprisingly, the most important criterion for choosing outside service
vendors is the ability to provide on-time performance (see Table XI). Service
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quality is a close second in importance. Good communication, reliability, service
speed and flexibility also rate very high in importance. All of these service
attributes are essential to support JIT systems. They reflect the basic tenets of
the JIT philosophy providing reliable, top-quality service in a timely manner
and in a way which matches or conforms to the buyers needs.
Further review of the list of evaluative criteria indicates that the respondents
recognize that all facets of the service package are important. The listing
highlights the need to consider the many and varied aspects of logistical
service. It also underscores the necessity for successful third-party providers to
manage and customize services as appropriate to meet the requirements of
individual buyers.
Conclusions
There appear to be significant opportunities for manufacturers with JIT
systems to develop supplier-partners with logistics service providers. Based on
the survey responses, warehousing firms now offer a broad range of services.
Criteria Mean
a
On-time performance 4.74
Service quality 4.72
Good communication 4.58
Reliability 4.58
Service speed 4.41
Flexibility 4.40
Customer support 4.36
Easy to work with 4.26
Management quality 4.24
Early notification of disruptions 4.24
Order cycle time 4.21
Willingness to customize service 4.14
Vendor reputation 4.07
Price 3.97
Location 3.88
Variety of available services 3.81
Cost reduction 3.75
Special expertise 3.70
Decreased labour problems 3.49
Technical competence 3.47
Decreased asset commitment 3.34
Increased competition 3.27
Global capabilities 2.45
a
Scale: 1 = least important; 5 = most important
Table XI.
Warehousing Providers
Perspectives: Relative
Importance of
Evaluative Criteria for
Choosing Outside
Service Vendors
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The availability of services extends beyond the traditional core offering of
warehouse space and transport. For example, such things as specialized
packaging or price marking/ticketing are becoming more commonplace.
Service providers are more involved in non-traditional offerings and, in many
cases, are able to provide a very comprehensive service tailored to meet
individual buyers needs. Utilization of a broad range of computer applications
and technologies further strengthens the quality of service provided by the
third-party logistics firms. The computer applications and technologies help to
ensure that the logistics service firms operate more efficiently while providing
the level of support necessary under JIT systems. They are the tools which
allow the service providers to remain competitive by improving speed, accuracy
and information availability.
The respondents demand projections for logistics services are very
optimistic. Anticipated usage of a wide range of warehousing and transport
services is expected to increase in the next five years. JIT manufacturers
wishing to enter into supplier-partnerships with logistics service companies are
likely to have many competitors vying for their business and willing to work to
develop tailored services.
The respondents also provided an indication of the relative importance of
various evaluative criteria for selecting external or third-party service
providers. Quality and reliability are the cornerstones of successful JIT
implementations. Consistent with this, the respondents indicated that third-
party service providers are typically evaluated on the ability to provide on-time
performance, high service quality, good communication, reliability, and service
speed. While traditional purchasing of materials or service may be very similar
to purchasing under a JIT system, the emphasis placed on items such as those
listed is even greater.
Purchasers of logistics activities under a JIT programme can use this
information to evaluate potential suppliers and assess future opportunities. It
should be remembered, however, that JIT success is more likely if a supplier-
partner relationship is formed. The purchasing department appears to be in a
unique position to facilitate the creation of a seamless JIT logistics channel
which utilizes external logistics service providers in order to achieve full JIT-
related benefits.
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Appendix
ServiceOfferings Examined
Advertising and promotion Office space
Air freight Order processing
Barcoding Order fulfilment and support
Break bulk Outbound transport
Computer applications support Packaging
Computer equipment Pick and pack
Customer billing/collection Price marking/ticketing
Consolidation Product assembly/reprocessing
Domestic freight forwarding Product repair and servicing
Electronic data interchange (EDI) Purchasing
Facilities design Refrigeration storage
Freight bill audit/payment Repackaging
Hazardous material handling Return goods handling
Inbound transport Sales forecasting
International freight forwarding Salvage and scrap disposal
Inventory management Same day shipping
Logistics consulting Shipment routeing
Market research Systems development
Computer Applications Examined
Direct product profitability Sales forecasting
Distribution modelling Shelf management
Freight audit/payment Supporting financials
Inbound freight consolidation Vehicle routeing and scheduling
Inventory control Warehouse order selection
Order entry Warehouse on-line receiving
Order processing Warehouse merchandise locator
Outbound freight consolidation Warehouse workload balancing
Performance measurement Warehouse short-interval scheduling
Purchasing
Installed Technologies Examined
Automated storage and retrieval systems Handheld data entry devices
Automated material handling equipment Local area networks
Barcodes Microcomputers
CD-ROM Neural networks
Computer-aided warehouse design Onboard computers delivery trucks
Electronic data interchange (EDI) Onboard computers lift trucks
Expert systems Optical scanning
Robotics

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