Hostname: page-component-848d4c4894-xfwgj Total loading time: 0 Render date: 2024-06-17T15:57:13.500Z Has data issue: false hasContentIssue false

A model to describe logistics service architecture based on product architecture

Published online by Cambridge University Press:  16 May 2024

Erika Marie Strøm*
Affiliation:
Technical University of Denmark, Denmark
Tine Meidahl Münsberg
Affiliation:
Technical University of Denmark, Denmark
Lars Hvam
Affiliation:
Technical University of Denmark, Denmark

Abstract

Core share and HTML view are not available for this content. However, as you have access to this content, a full PDF is available via the ‘Save PDF’ action button.

The growth in e-commerce has led to increased demand for logistics services. This puts a pressure on third-party logistics (3PL) providers who struggle with increasing operating costs and heightened competition. These providers could potentially exploit the advantages of modularisation, but few studies address the design of modular logistics services. This study explores modular design of logistics services and proposes a model to describe logistics service architecture based on product architecture. A case study shows that warehousing services can be described in three domains.

Type
Design Methods and Tools
Creative Commons
Creative Common License - CCCreative Common License - BYCreative Common License - NCCreative Common License - ND
This is an Open Access article, distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives licence (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is unaltered and is properly cited. The written permission of Cambridge University Press must be obtained for commercial re-use or in order to create a derivative work.
Copyright
The Author(s), 2024.

References

Rahman, Abdul, Karim, N.S.F., Md Hanafiah, N.H., Abdul Hamid, R., and Mohammed, S., A. (2021), “Decision analysis of warehouse productivity performance indicators to enhance logistics operational efficiency”, International Journal of Productivity and Performance Management, Emerald Group Holdings Ltd., https://dx.doi.org/10.1108/IJPPM-06-2021-0373.CrossRefGoogle Scholar
Andreasen, M.M., Hansen, C.T. and Cash, P. (2015), Conceptual Design: Interpretations, Mindset and Models, Springer, https://dx.doi.org/10.1007/978-3-319-19839-2.CrossRefGoogle Scholar
Andreasen, M.M., Howard, T.J. and Bruun, H.P.L. (2014), “Domain Theory, Its Models and Concepts”, in Blessing, L.T.M. and Chakrabarti, A. (Eds.), An Anthology of Theories and Models of Design, Springer, London, pp. v455, https://dx.doi.org/10.1007/978-1-4471-6338-1.Google Scholar
Azadeh, K., De Koster, R. and Roy, D. (2019), “Robotized and automated warehouse systems: Review and recent developments”, Transportation Science, INFORMS Inst.for Operations Res.and the Management Sciences, Vol. 53 No. 4, pp. 917945, https://dx.doi.org/10.1287/trsc.2018.0873.Google Scholar
Barker, J.M., Gibson, A.R., Hofer, A.R., Hofer, C., Moussaoui, I. and Scott, M.A. (2021), “A competitive dynamics perspective on the diversification of third-party logistics providers’ service portfolios”, Transportation Research Part E: Logistics and Transportation Review, Elsevier Ltd, Vol. 146, https://dx.doi.org/10.1016/j.tre.2020.102219.Google Scholar
Bartman, T., Dragendorf, J., McConnell, S., Murnane, J. and Pan, I. (2022), “The promise and challenge of multi-client fulfillment for e-commerce”, McKinsey & Company, 5 July, available at: https://www.mckinsey.com/industries/travel-logistics-and-infrastructure/our-insights/the-promise-and-challenge-of-multi-client-fulfillment-for-e-commerce (accessed 15 November 2023).Google Scholar
Baruffaldi, G., Accorsi, R., Manzini, R. and Ferrari, E. (2020), “Warehousing process performance improvement: a tailored framework for 3PL”, Business Process Management Journal, Emerald Group Holdings Ltd., Vol. 26 No. 6, pp. 16191641, https://dx.doi.org/10.1108/BPMJ-03-2019-0120.Google Scholar
Bask, A., Lipponen, M., Rajahonka, M. and Tinnilä, M. (2011), “Modularity in logistics services: a business model and process view”, Int. J. Services and Operations Management, Vol. 10 No. 4, pp. 379399, https://dx.doi.org/10.1504/IJSOM.2011.043463.CrossRefGoogle Scholar
Bowersox, D.J., Closs, D.J. and Cooper, M.B. (2002), Supply Chain Logistics Management, International., McGraw-Hill/Irwin, New York.Google Scholar
Brax, S.A., Bask, A., Hsuan, J. and Voss, C. (2017), “Service modularity and architecture – an overview and research agenda”, International Journal of Operations and Production Management, Emerald Group Publishing Ltd., Vol. 37 No. 6, pp. 686702, https://dx.doi.org/10.1108/IJOPM-03-2017-0191.Google Scholar
Gay, Campo, and Hvam, I., L. (2023), “Product Variant Master in the Construction Industry”, Proceedings of the 25th International Workshop on Configuration (ConfWS 2023), Vol. 3509, CEUR-WS, Malaga, pp. 118125.Google Scholar
Charm, T., Coggins, B., Robinson, K. and Wilkie, J. (2020), “The great consumer shift: Ten charts that show how US shopping behavior is changing”, McKinsey & Company, August, available at: https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/the-great-consumer-shift-ten-charts-that-show-how-us-shopping-behavior-is-changing (accessed 15 November 2023).Google Scholar
Custodio, L. and Machado, R. (2020), “Flexible automated warehouse: a literature review and an innovative framework”, International Journal of Advanced Manufacturing Technology, Springer, Vol. 106 No. 1–2, pp. 533558, https://dx.doi.org/10.1007/s00170-019-04588-z.Google Scholar
D'Ippolito, B. (2014), “The importance of design for firmscompetitiveness: A review of the literature”, Technovation, Elsevier Ltd, Vol. 34 No. 11, pp. 716730, https://dx.doi.org/10.1016/j.technovation.2014.01.007.Google Scholar
Fixson, S.K. (2005), “Product architecture assessment: A tool to link product, process, and supply chain design decisions”, Journal of Operations Management, Vol. 23 No. 3–4, pp. 345369, https://dx.doi.org/10.1016/j.jom.2004.08.006.CrossRefGoogle Scholar
Harlou, U. (2006), Developing Product Families Based on Architectures: Contribution to a Theory of Product Families, Technical University of Denmark, Kongens Lyngby, June.Google Scholar
Hertz, S. and Alfredsson, M. (2003), “Strategic development of third party logistics providers”, Industrial Marketing Management, Vol. 32, pp. 139149, https://dx.doi.org/10.1016/S0019-8501(02)00228-6.CrossRefGoogle Scholar
van Hoek, R.I. (2000), “Role of third party logistic services in customization through postponement”, International Journal of Service Industry Management, # MCB University Press, Vol. 11 No. 4, pp. 9564233, https://dx.doi.org/10.1108/09564230010355395.Google Scholar
Hvam, L., Kristjansdottir, K., Shafiee, S., Mortensen, N.H. and Herbert-Hansen, Z.N.L. (2019), “The impact of applying product-modelling techniques in configurator projects”, International Journal of Production Research, Taylor and Francis Ltd., Vol. 57 No. 14, pp. 44354450, https://dx.doi.org/10.1080/00207543.2018.1436783.CrossRefGoogle Scholar
Hvam, L., Mortensen, N.H. and Riis, J. (2008), Product Customization, Springer, Berlin, https://dx.doi.org/10.1007/978-3-540-71449-1.CrossRefGoogle Scholar
Iman, N. (2016), “Modularity matters: a critical review and synthesis of service modularity”, International Journal of Quality and Service Sciences, Emerald Group Publishing Ltd., Vol. 8 No. 1, pp. 3852, https://dx.doi.org/10.1108/IJQSS-05-2015-0046.Google Scholar
Jum'a, L. and Basheer, M.E. (2023), “Analysis of Warehouse Value-Added Services Using Pareto as a Quality Tool: A Case Study of Third-Party Logistics Service Provider”, Administrative Sciences, MDPI, Vol. 13 No. 2, pp. 123, https://dx.doi.org/10.3390/admsci13020051.Google Scholar
Lin, Y. and Pekkarinen, S. (2011), “QFD-based modular logistics service design”, Journal of Business and Industrial Marketing, Vol. 26 No. 5, pp. 344356, https://dx.doi.org/10.1108/08858621111144406.CrossRefGoogle Scholar
Løkkegaard, M., Mortensen, N.H. and McAloone, T.C. (2016), “Towards a framework for modular service design synthesis”, Research in Engineering Design, Springer London, Vol. 27 No. 3, pp. 237249, https://dx.doi.org/10.1007/s00163-016-0215-6.CrossRefGoogle Scholar
Meyer, M.H. and Lehnard, A.P. (1997), The Power of Product Platforms: Building Value and Cost Leadership, The Free Press.Google Scholar
Mortensen, N.H., Boelskifte, P., Holmskov, L., Gamillscheg, B., Bruun, H.P.L., Hansen, C.L., Cleemann, K.K., et al. . (2012), Radikal Forenkling via Design, Vol. 1, DTU Mekanik, Kongens Lyngby.Google Scholar
Ngah, A.H., Thurasamy, R. and Han, H. (2023), “If you don't care, I will switch: online retailers’ behaviour on third-party logistics services”, International Journal of Physical Distribution and Logistics Management, Emerald Publishing, Vol. 53, https://dx.doi.org/10.1108/IJPDLM-04-2022-0124.Google Scholar
Pekkarinen, S. and Ulkuniemi, P. (2008), “Modularity in developing business services by platform approach”, The International Journal of Logistics Management, Vol. 19 No. 1, pp. 84103, https://dx.doi.org/10.1108/09574090810872613.CrossRefGoogle Scholar
Ponsignon, F., Davies, P., Smart, A. and Maull, R. (2021), “An in-depth case study of a modular service delivery system in a logistics context”, International Journal of Logistics Management, Emerald Group Holdings Ltd., Vol. 32 No. 3, pp. 872897, https://dx.doi.org/10.1108/IJLM-07-2020-0295.Google Scholar
Rajahonka, M. (2013), “Views of logistics service providers on modularity in logistics services”, International Journal of Logistics Research and Applications, Taylor and Francis Ltd., Vol. 16 No. 1, pp. 3450, https://dx.doi.org/10.1080/13675567.2013.767325.Google Scholar
Soinio, J., Tanskanen, K. and Finne, M. (2012), “How logistics-service providers can develop value-added services for SMEs: A dyadic perspective”, International Journal of Logistics Management, Vol. 23 No. 1, pp. 3149, https://dx.doi.org/10.1108/09574091211226911.Google Scholar
Ulrich, K. (1994), “Fundamentals of product modularity”, in Dasu, S. and Eastman, C. (Eds.), Management of Design, 1994th ed., Springer, Netherlands, pp. 219231, https://dx.doi.org/10.1007/978-94-011-1390-8_12.CrossRefGoogle Scholar
Ulrich, K. (1995), “The role of product architecture in the manufacturing firm”, Research Policy, Vol. 24 No. 419–440, pp. 419440, https://dx.doi.org/10.1016/0048-7333(94)00775-3.CrossRefGoogle Scholar
Vlachos, I. and Polichronidou, V. (2023), “Multi-demand supply chain triads and the role of Third-Party Logistics Providers”, International Journal of Logistics Management, Emerald Publishing, pp. 122, https://dx.doi.org/10.1108/IJLM-04-2022-0161.CrossRefGoogle Scholar
Voss, C., Tsikriktsis, N. and Frohlich, M. (2002), “Case research in operations management”, International Journal of Operations and Production Management, Vol. 22 No. 2, pp. 195219, https://dx.doi.org/10.1108/01443570210414329.CrossRefGoogle Scholar
Voss, C.A. and Hsuan, J. (2009), “Service architecture and modularity”, Decision Sciences, Vol. 40 No. 3, pp. 541569, https://dx.doi.org/10.1111/j.1540-5915.2009.00241.x.CrossRefGoogle Scholar
“What is e-commerce?” (2023), McKinsey & Company, 29 June, available at: https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-e-commerce (accessed 15 November 2023).Google Scholar
Wong, C.Y. and Karia, N. (2010), “Explaining the competitive advantage of logistics service providers: A resource-based view approach”, International Journal of Production Economics, Vol. 128 No. 1, pp. 5167, https://dx.doi.org/10.1016/j.ijpe.2009.08.026.CrossRefGoogle Scholar
Zacharia, Z.G., Sanders, N.R. and Nix, N.W. (2011), “The emerging role of the third-party logistics provider (3PL) as an orchestrator”, Journal of Business Logistics, Vol. 32 No. 1, pp. 4054, https://dx.doi.org/10.1111/j.2158-1592.2011.01004.x.CrossRefGoogle Scholar