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Examining collaborative supply chain service technologies: a study of intensity, relationships, and resources

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Abstract

Technology has the ability to heavily influence marketing and supply chain theory and practice. This research incorporates a two-study approach to examine the impact of collaborative supply chain technologies on retailer logistics service and financial performance, and ultimately on the overall performance of the partnership. In this study we discover dynamic interactions between collaborative technology categories, relationship quality, resource complementarity, and performance. The results support the importance of collaborative technologies, the role of different degrees of partnering, and the need for a better understanding of firm and partner performance. Ultimately, this study creates a foundation for future research across the domains of marketing and supply chain management incorporating the resource based view of technology and service-dominant logic.

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Notes

  1. Council of Supply Chain Management Professionals—http://cscmp.org/

  2. Details can be seen at http://info.zoomerang.com/zsample.htm

  3. Zoomepoints are part of an incentive program through which panelists are awarded products and cash for responding to surveys

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Author information

Authors and Affiliations

  1. Morrow Faculty and Marketing and Supply Chain Management, Culverhouse College of Commerce and Business Administration, The University of Alabama, 129 Alston Hall, Tuscaloosa, AL, 35487, USA

    R. Glenn Richey Jr

  2. Marketing and Supply Chain Management, College of Business ZSH 520—MSC 0205, James Madison University, Harrisonburg, VA, 22807, USA

    Mert Tokman

  3. Morrow Faculty and Marketing and Supply Chain Management, Culverhouse College of Commerce and Business Administration, The University of Alabama, 129 Alston Hall, Tuscaloosa, AL, 35487, USA

    Vivek Dalela

Authors
  1. R. Glenn Richey Jr
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  2. Mert Tokman
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  3. Vivek Dalela
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Corresponding author

Correspondence to R. Glenn Richey Jr.

Appendices

Appendix A

Summary of Technologies

Technology

Definition

Primary use

Secondary use

Automated materials handling equipment

Automating the material handling operations.

Increase in productivity, reduced cost of material handling.

Increase in storage capacity.

Automatic replenishme nt systems

An exchange relationship in which the seller replenishes or restocks inventory based on actual product usage and stock level info provided by the buyer

Reduced commitment to inventory holdings.

Generates valuable market related data, Increased sales, Higher selling space productivity.

Capacity resource planning

Capacity planning —a process to predict the types, quantities, and timing of critical resource capacities that are needed within an infrastructure to meet accurately forecasted workloads.

Reduce excess inventory levels.

Shorter lead times. Improved customer service.

CRM systems

A process designed to grasp features of customers and apply those features to marketing activities.

Greater customer loyalty.

Lower marketing costs Mutual learning and strategic cooperation.

Distribution resource planning

A planning philosophy which permits the planning of all resources within a distribution firm including business planning, marketing/sales, procurement, logistics, distribution requirements and financials. It is an integrated approach to scheduling delivery and controlling inventory for a logistics system.

Effective and efficient deployment of finished goods inventories throughout the often complex distribution network. Better coordination between marketing and manufacturing. Reduction of freight cost, distribution cost, lower inventories.

Improved service levels. Better obsolescence control. Forward feasibility in planning promotion.

Electronic data interchange (EDI)

The electronic transfer from computer to computer of commercial or administrative transactions using an agreed standard to structure the transaction or message data

Speed and accuracy of data transmission.

Enlarged operational efficiency. Better customer service. Improved trading partner relationships. Increased ability to compete(Indirect uses)

Enterprise resource planning (ERP)

Configurable information system packages that integrated information and information based processes within and across functional areas in an organization.

Integrate business functions. Allow data to be shared across company.

Greater flexibility and efficiency. Information available just in time for decisions. Timely, accurate info sharing with customers and suppliers.

E-Commerce

Buying, selling, or marketing on the internet. Buying and selling via digital media. Three types of technology: Sell side, buy-side, and marketplace.

Access to worldwide markets (for seller). Minimal sales costs.

Faster communication. Can compete with large firms. Improving customer service and racking customer behavior.

Geographic information systems (GIS)

A computer hardware and software system that stores, links, analyses, and displays geographically referenced information (i.e. data identified according to their geographic location).

Modelling supply and delivery points and product routing optimization.

Data management and reporting support for product transaction management systems. Drive time calculations from a central facility. Asset tracking

Intelligent agent purchasing systems

An intelligent agent is a computer system situated in some environment and that is capable of flexible autonomous action in this environment in order to meet its design objectives.

Reduce time and tedium.

Bargain finding, learning about user’s past behavior, get information.

Internet/Extr anets

Extranet: It is a private network that uses the internet protocol and the public telecommunication system to securely share part of a business’s information or operations with suppliers, vendors, partners, customers, and other businesses.

Extranet: Bringing together all of the extended enterprise; suppliers, partners, customers into the information loop, critical for firm’s quick response and strategic movement.

Increase loyalty, commitment and confidence among customers and partners.

Manufacturing resource planning (MRP/MRP II)

MRPII: A method for the effective planning of all resources of a manufacturing company. It is made up of a variety of functions, each linked together; Business planning, Production planning, Master scheduling, Materials requirement planning, and Capacity requirement planning.

MRPI: Increased productivity. MRPII: Gains in productivity. Dramatic increase in customer service.

MRPI: Automatic calculation of material requirements. MRPII: Much higher inventory turns. Reduction in material costs.

Network management systems

A service that employs a variety of tools, applications, and devices, to assist human network managers in monitoring and maintaining computer networks.

Configuration, Accounting, Fault, Security, and Performance.

NA

Order management systems

Systems that receive customer order information and inventory availability from the warehouse management system and then groups orders by customer and priority, allocates inventory by warehouse site, and establishes delivery dates.

Cost effective customer order management and better customer service through the integration of CRM and SRM applications.

Optimal supplier choice. Collaborative planning with suppliers.

Physical distribution management systems

PDM is concerned with integration of individual efforts that go to make up the distributive function, so that a common objective is realized. Its four principal components are order processing, stock levels/inventory, warehousing, and transportation.

Improved customer service.

Cost effective physical distribution management.

Point of sale (POS)

At the core of POS systems are a standard-issue computers running specialized POS software, usually with a cash drawer and receipt printer, and often with a bar code scanner and credit card reader.

Streamlines the replenishment process.

The ability to get an immediate, up-to-the-minute, accurate assessment of inventory.

Scanners-bar codes-UPC

Gives every product a unique symbol and numeric code. The multi-digit number identifies the manufacturer and the item. Scanners can read the bars and spaces of the symbol.

Increased materials throughput speed. (Integrates the receiving function electronically with computerized purchasing, materials management, and accounts payable systems.)

Increased inventory accuracy.

Warehouse management systems

Implementation of advanced techniques and technology to optimize all functions throughout the warehouse. (Can also be defined as Logistics Information Systems)

Reduced costs.

Improved customer service.

Appendix B

Study 1—CFA, scale items, and model fit statistics

Source citation

Scale item

Scale content

CFA factor loading

Relationship Quality Morgan and Hunt (1994) Composite Reliability = .858

Trust 1 (TR 1)

Our primary supplier is very honest and truthful.

0.767

Trust 2 (TR 2)

...can be trusted completely.

0.893

Trust 3 (TR 3)

...can be counted on to do what is right.

0.866

Trust 4 (TR 4)

...keeps promises it makes to our firm.

0.854

Commitment 1 (CMT 1)

Our relationship with our supplier is one that we are very committed to.

0.814

Commitment 2 (CMT 2)

...very important to us.

0.841

Commitment 3 (CMT 3)

...one that we intend to maintain indefinitely.

0.872

Commitment 4 (CMT 4)

...worth our maximum effort to maintain.

0.870

Logistics service performance Mentzer et al. (2001) Composite Reliability = .914

Personal Contact Control 1 (PC1)

The designated contact person makes an effort to understand my situation

0.876

Personal Contact Control 2 (PC2)

Problems are resolved by the designated contact person

0.894

Personal Contact Control 3 (PC3)

The product knowledge/experience of contact personnel is adequate

0.903

Order Release Quantities 1 (ORQ1)

Requisition quantities are not challenged

0.790

Order Release Quantities 2 (ORQ1)

Difficulties never occur due to minimum release quantities

0.814

Order Release Quantities 3 (ORQ1)

Difficulties never occur due to maximum release quantities

0.873

Information Quality 1 (IQ 1)

Product specific information is available

0.955

Information Quality 2 (IQ 1)

Product specific information is adequate

0.955

Ordering Procedures 1 (OP 1)

Requisitioning procedures are effective

0.965

Ordering Procedures 2 (OP 2)

Requisitioning procedures are easy to use

0.965

Order Accuracy 1 (OA 1)

Shipments rarely contain the wrong items

0.864

Order Accuracy 2 (OA 2)

Shipments rarely contain an incorrect quantity

0.857

Order Accuracy 3 (OA 3)

Shipments rarely contain substituted items

0.804

Order Condition 1 (OC 1)

Materials received from depots is undamaged

0.836

Order Condition 2 (OC 2)

Materials received from vendors is undamaged

0.754

Order Quality 1 (OQ1)

Substituted items work fine

0.888

Order Quality 2 (OQ2)

Products ordered meet technical requirements

0.888

Order Discrepancy Handling 1 (ODH 1)

Correction of delivered quantity discrepancies is satisfactory

0.909

Order Discrepancy Handling 2 (ODH 2)

The report of discrepancy process is adequate

0.922

Order Discrepancy Handling 3 (ODH 3)

Response to quantity reports is satisfactory

0.919

Timeliness 1** (TIME 1)

Time between placing orders and receiving delivery is short

0.858

Timeliness 2** (TIME 2)

Delivers arrive on the date promised

0.922

Timeliness 3** (TIME 3)

The amount of time a requisition is on back-order is short

0.786

Financial performance Morgan and Piercy (1998) Composite Reliability = .877

Financial peformance 1 (FIN 1)

Current Average Profits Per Customer

0.929

Financial Peformance 2 (FIN 2)

Current ROI

0.947

Financial Peformance 3 (FIN 3)

Sales growth

0.933

Fit Statistics: CFI .93; TLI .93; RMSEA .06

Appendix B (continued)

STUDY 2—CFA, scale items, and model fit statistics

Source citation

Scale item

Scale content

CFA factor loading

Relationship Quality Morgan and Hunt (1994) Composite and Reliability = .941

Trust 1 (TR 1)

Our supplier id very honest and truthful.

0.914

Trust 2 (TR 2)

...can be trusted completely.

0.912

Trust 3 (TR 3)

...can be counted on to do what is right.

0.936

Trust 4 (TR 4)

...keeps promises it makes to our firm.

0.915

Commitment 1 (CMT 1)

Our relationship with our supplier is one that we are very committed to.

0.909

Commitment 2 (CMT 2)

...very important to us.

0.897

Commitment 3 (CMT 3)

...one that we intend to maintain indefinitely

0.925

Commitment 4 (CMT 4)

...worth our maximum effort to maintain.

0.897

Resource Complementary Sarkar et al. (2001) Composite and Reliability = .916

Resource Complementary 1 (RC 1)

We need each others resources to accomplish our goals

0.855

Resource Complementary 2 (RC 2)

The resources contributed are significant in achieving our mutual goals

0.931

Resource Complementary 3 (RC 3)

Resources brought into the relationship by each firm are very valuable for each other

0.916

Resource Complementary 4 (RC 4)

Our supplier brings to the table resources and competencies that complement our own

0.918

Resource Complementary 5 (RC 5)

Strategically, we couldn’t ask for a better fit between my firm and our supplier

0.842

Financial Performance of the Partnership Nijssen (1999) Composite Reliability = .933

Financial Performance 1 (FIN 1)

Gross profit achieved by the relationship

0.926

Financial Performance 2 (FIN 2)

Sales revenue achieved by the relationship

0.941

Financial Performance 3 (FIN 3)

Production economies achieved by the relationship

0.936

Financial Performance 4 (FIN 4)

Effects of relationship on your market share

0.888

Financial Performance 6 (FIN 6)

Overall economic benefits of the relationship

0.903

Fit Statistics: CFI .94; TLI .94; RMSEA .05

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Glenn Richey, R., Tokman, M. & Dalela, V. Examining collaborative supply chain service technologies: a study of intensity, relationships, and resources. J. of the Acad. Mark. Sci. 38, 71–89 (2010). https://doi.org/10.1007/s11747-009-0139-z

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  • DOI: https://doi.org/10.1007/s11747-009-0139-z

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