A cost perspective on the location of value-added logistics services in supply chains
by Lu Chen; Theo Notteboom
International Journal of Logistics Systems and Management (IJLSM), Vol. 18, No. 1, 2014

Abstract: Academic literature underlines the importance of developing value added logistics services (VALS) to meet customers' satisfaction. However, there is hardly any attention given to the discussion on where to perform these VALS and how such decision affects the supply chain. This paper discusses the location of VALS and its impact on supply chain configurations and logistics costs. In particular, the paper focuses on: 1) the importance of VALS in cost terms to the supply chain; 2) the impact of location decisions regarding VALS on the supply chain, taking into account logistics time costs and out-of-pocket costs; 3) the role of the logistics characteristics of products and the nature of VALS in the location decisions regarding VALS. We present an evaluation model for optimising the location of VALS. We apply the model empirically by following the cost flow associated with a container filled with sportswear shoes and by comparing the differences in time costs and out-of-pocket costs associated with a range of VALS location alternatives. As such, we propose a VALS location decision making framework to facilitate the location selection procedure.

Online publication date: Sat, 21-Jun-2014

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Logistics Systems and Management (IJLSM):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com