Milivoj Marković, Nikola Drašković, Jasminka Samardžija – COMPETITIVE ADVANTAGE IN COST SENSITIVE GLASS PACKAGING INDUSTRY THROUGH OUTBOUND LOGISTICS

Milivoj Marković, Nikola Drašković, Jasminka Samardžija – COMPETITIVE ADVANTAGE IN COST SENSITIVE GLASS PACKAGING INDUSTRY THROUGH OUTBOUND LOGISTICS

Milivoj Marković
Rochester Institute of Technology Croatia
E-mail:
milivoj.markovic@croatia.rit.edu


Nikola Drašković
Rochester Institute of Technology Croatia
E-mail:
nikola.draskovic@croatia.rit.edu


Jasminka Samardžija
Rochester Institute of Technology Croatia
E-mail:
jasminka.samardzija@croatia.rit.edu


Abstract


Achieving and maintaining a long-term competitiveness is one of the key
prerequisites of a sustainable business. Companies put a lot of effort into enhancing
different value chain activities in order to achieve it. Initially, manufacturing
companies were focused inwardly on increasing efficiency of tightly controlled
logistics activities. When those opportunities were exhausted, the focus expanded
beyond the firm boundaries through establishing trust-based relationships with
specialized logistics service provider (LSP) companies
. The aim of this paper is to
analyse a case of innovative outbound logistics practice within mature glass packaging
industry. Due to relatively high weight and low utilisation of freight space, glass
packaging is considered as unsuitable for long-distance transportation. With
incrementally small developments in improvement of freight space utilisation, high
transportation cost remains as one of the most restrictive industry level success
factors. Based on a series of in-depth interviews with management personnel of a
European mid-sized glass packaging producer, innovative approaches in its outbound
logistics practices has been evaluated. Paper analyses the process of close cooperation
between the manufacturer, customer and LSP which resulted in an innovative solution
and optimisation improvements within the outbound logistics activities. As the
findings suggest, close cooperation between stakeholders and customer co-creation
contribute to the company’s competitive advantage.


Keywords: outbound 3PL, customer value, value co-creation, glass packaging
industry

Last Update: October 26, 2017  

View Full Paper -

October 26, 2017   319    BLMM 2017  
Total 0 Votes:

Tell us how can we improve this post?

+ = Verify Human or Spambot ?