Logistics Management Research Papers - Academia.edu (original) (raw)

In an increasingly competitive environment, egg-producers in the USA, such as Rose Acre Farms (RAF), were continuously turning to their logistics system as a way to reduce costs and improve efficiency. Logistics is defined as the... more

In an increasingly competitive environment, egg-producers in the USA, such as Rose Acre Farms (RAF), were continuously turning to their logistics system as a way to reduce costs and improve efficiency.

Logistics is defined as the successful and efficient flow (or movement) and geographical positioning of resources (materials, services, and information) throughout the supply chain (SC), from origination (suppliers) to consumption (end consumers), at the ‘lowest total costs’ (Bowersox, Closs & Cooper 2010, p. 22; Wajszczuk 2016). It involves the integration and management of procurement, transportation, information, inventory, and warehousing, materials handling and packaging throughout a facility network (Bowersox, Closs & Cooper 2010; Ristovska, Sasho & Petkovski 2017; Sakchutchawan 2011).

Logistics functions, such as information technology (IT) and warehousing, materials handling and packaging (WMHP), are increasingly being implemented, by RAF, to help the company survive and thrive despite industry challenges.

Logistical innovation and integration of IT and WMHP has always been critical to RAF. The company innovated the first inline egg-processing operation in the 1960s - reducing costs through increased efficiency while simultaneously improving food safety (RAF n.d.c) – and since then, has pioneered many innovations and patents, for instance, a liquid-egg-processing patent, a cage-free-system patent, etcetera (Abdulla 2015; Grant 2004).

There are six issues that led RAF to innovate its IT and WMHP: 1) to share information quickly and easily (Mullich 1998); 2) to allow real-time inventory tracking and traceability (CAT2 n.d.); 3) to guarantee egg freshness (Lukas 1999; Kaelble 2000); 4) to make their overall egg package better in the industry (Mohan 2005); 5) to reduce order-fulfilment time (OFT) and out-of-stock inventory (CAT2 n.d.); and 6) to gain market share, by reducing total costs (OpenJurist n.d.).

As research indicates, IT and WMHP can reduce idle time, improve handling and packaging efficiency, reduce risk of product damage, maximise storage and transport spaces, improve product identification and tracking, increase speed and smooth product flow, aid managerial control and decision-making, and minimise demand uncertainty (Delfmann & Gehring 2003; Ristovska, Sasho & Petkovski 2017; Sakchutchawan 2011; Tomasz & Paula 2017). Hence, it is advantageous for all egg-producers to innovate IT and WMHP practices into their overall ILS.

The results from the data analysis showed that RAF’s application and integration of IT and WMHP innovations (especially the VPN, cage-free facility, and direct egg-printing innovations) created economic, market, and relevancy values for its entire logistics system and resulted in competitive advantage through both service differentiation and reduced costs.

Additionally, the contribution made by this report to the existing body of literature was that, application and integration of IT and WMHP practices lead to both cost-based and service-based advantages.

Finally, four recommendations for egg-producers to improve their competitiveness were made such as, using semi-automated handling systems, standardised master cartons, rigid containerisation, and communication technologies.

In closing, all egg-producers in the USA, and elsewhere, can use the findings from this report to improve their competitive positions.