Abstract: In developed countries, large retailers have increasingly emphasised management of the inbound supply chain. This is particularly true for the supply of grocery products, which are mainly fast moving consumer goods (FMCG). Inbound logistics, which is a primary component of a firm’s value chain and which is a major function in supply chain management, can be a source of competitive advantage. There is little research to confirm whether this is also the case in developing countries. This research focuses on Thai grocery retailers as the subject to determine how management of inbound logistics could generate competitive advantages for retailers. The business environment of the Thai grocery supply chain is uncertain and dynamic, requiring creativity, flexibility, and speedy changes in the supply chain. In Thailand, large retailers have taken the lead in efforts to manage their supply chains effectively while small and medium size retailers typically lag far behind. This work looks at the operation of inbound logistics from a strategy research perspective which can provide a coherent view of competitive advantage in this specific industry. For this study, 564 questionnaires were distributed to Thai retailers in the grocery industry and 147 responses were received. The responses were then classified according to the retailers’ business types. Cluster analysis was used to determine strategy patterns. ANCOVA was used to determine relationships between the degree of control of inbound logistics activities and competitive advantage. Two potential moderators (size and strategy of retailers) of the relationships between control of inbound logistics and competitive advantage were also included. Qualitative interviews were conducted to confirm the results. Four findings of this research are: (1) The control of inbound transportation activities had a direct impact on competitive advantage in the form of cost reduction and preferential access to products, but had no significant direct impact on either speed of product delivery or product customization as competitive advantage. Only the large retailers were likely to gain these two advantages.
(2) The control of inbound storage and material handling activities had no direct impact on any form of competitive advantage. However, impacts on competitive advantage in the form of cost reduction, preferential access to products, and product customization were indirectly indicated. Compared to large retailers, the small and medium size retailers were more likely to gain these competitive advantages.
(3) The control of inbound information and services activities had a direct impact on competitive advantage in the form of preferential access to products, speed of product delivery and product customization. However, an impact on cost reduction competitive advantage was only indirectly indicated. Large retailers were more likely to gain a cost reduction competitive advantage.
(4) As noted, the size of Thai grocery retailers had a significant impact on the relationship between control of the inbound logistics and competitive advantage. For this research, the strategy of a retailer did not affect the relationship between the control of inbound logistics activities and each type of competitive advantage
Abstract: In developed countries, large retailers have increasingly emphasised management of the inbound supply chain. This is particularly true for the supply of grocery products, which are mainly fast moving consumer goods (FMCG). Inbound logistics, which is a primary component of a firm’s value chain and which is a major function in supply chain management, can be a source of competitive advantage. There is little research to confirm whether this is also the case in developing countries. This research focuses on Thai grocery retailers as the subject to determine how management of inbound logistics could generate competitive advantages for retailers. The business environment of the Thai grocery supply chain is uncertain and dynamic, requiring creativity, flexibility, and speedy changes in the supply chain. In Thailand, large retailers have taken the lead in efforts to manage their supply chains effectively while small and medium size retailers typically lag far behind. This work looks at the operation of inbound logistics from a strategy research perspective which can provide a coherent view of competitive advantage in this specific industry. For this study, 564 questionnaires were distributed to Thai retailers in the grocery industry and 147 responses were received. The responses were then classified according to the retailers’ business types. Cluster analysis was used to determine strategy patterns. ANCOVA was used to determine relationships between the degree of control of inbound logistics activities and competitive advantage. Two potential moderators (size and strategy of retailers) of the relationships between control of inbound logistics and competitive advantage were also included. Qualitative interviews were conducted to confirm the results. Four findings of this research are: (1) The control of inbound transportation activities had a direct impact on competitive advantage in the form of cost reduction and preferential access to products, but had no significant direct impact on either speed of product delivery or product customization as competitive advantage. Only the large retailers were likely to gain these two advantages.(2) The control of inbound storage and material handling activities had no direct impact on any form of competitive advantage. However, impacts on competitive advantage in the form of cost reduction, preferential access to products, and product customization were indirectly indicated. Compared to large retailers, the small and medium size retailers were more likely to gain these competitive advantages.(3) The control of inbound information and services activities had a direct impact on competitive advantage in the form of preferential access to products, speed of product delivery and product customization. However, an impact on cost reduction competitive advantage was only indirectly indicated. Large retailers were more likely to gain a cost reduction competitive advantage.(4) As noted, the size of Thai grocery retailers had a significant impact on the relationship between control of the inbound logistics and competitive advantage. For this research, the strategy of a retailer did not affect the relationship between the control of inbound logistics activities and each type of competitive advantage
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