TY - JOUR
T1 - Developing a framework for evaluating the logistics costs in global sourcing processes
T2 - An implementation and insights
AU - Zeng, Amy Z.
AU - Rossetti, Christian L.
N1 - The date on your computer is in the past. If your computer's clock shows a date before 1 Jan 1970, the browser will automatically forget the cookie. To fix this, set the correct time and date on your computer.
PY - 2003/11/1
Y1 - 2003/11/1
N2 - Global sourcing is becoming a prerequisite for companies competing in today's market. The logistics costs often comprise a large portion of the total global sourcing cost, thereby determining the effectiveness of this procurement strategy. However, evaluating the logistics cost in a global context is frequently difficult. This paper presents a five-step evaluation framework and illustrates how this framework can be implemented using a case study at a leading firm in the US aviation industry and its part supplier in Chengdu, China. The framework not only identifies the key logistics cost items, but also suggests a way of quantifying each of the cost elements. The computational part of the framework can be easily implemented on spreadsheets and offers substantial flexibility to accommodate assessment of various transportation alternatives and sensitivity analysis.
AB - Global sourcing is becoming a prerequisite for companies competing in today's market. The logistics costs often comprise a large portion of the total global sourcing cost, thereby determining the effectiveness of this procurement strategy. However, evaluating the logistics cost in a global context is frequently difficult. This paper presents a five-step evaluation framework and illustrates how this framework can be implemented using a case study at a leading firm in the US aviation industry and its part supplier in Chengdu, China. The framework not only identifies the key logistics cost items, but also suggests a way of quantifying each of the cost elements. The computational part of the framework can be easily implemented on spreadsheets and offers substantial flexibility to accommodate assessment of various transportation alternatives and sensitivity analysis.
KW - Case studies
KW - Logistics
KW - Performance measures
KW - Sourcing
KW - Transportation
UR - http://dx.doi.org/10.1108/09600030310503334
UR - https://www.scopus.com/pages/publications/84900486257
U2 - 10.1108/09600030310503334
DO - 10.1108/09600030310503334
M3 - Article
SN - 0960-0035
VL - 33
SP - 785
EP - 803
JO - International Journal of Physical Distribution and Logistics Management
JF - International Journal of Physical Distribution and Logistics Management
IS - 9
ER -