Internal coordination to enable high load factor

DOIhttps://doi.org/10.1108/IJLM-02-2016-0031
Pages1142-1167
Date13 November 2017
Published date13 November 2017
AuthorSara Rogerson,Uni Sallnäs
Subject MatterManagement science & operations,Logistics
Internal coordination to enable
high load factor
Sara Rogerson
Department of Technology Management and Economics,
Chalmers University of Technology, Gothenburg, Sweden, and
Uni Sallnäs
Department of Management and Engineering, Linköping University,
Linköping, Sweden
Abstract
Purpose The purpose of this paper is to clarify how activities may be coordinated within shippers
organisations to enable high load factor (a key aspect of transport efficiency).
Design/methodology/approach A multiple-case study involving three shippers was conducted, in which
the logistics or transport managers of each company were interviewed. The cases were analysed according to
which activities were coordinated to achieve high load factor, interdependencies between the activities,
and the coordination mechanisms that shippers adopted.
Findings A matrix is developed to show the differences in applying various coordination mechanisms in
eight categories, according to intrafunctional or interfunctional coordination, sequential or reciprocal
interdependencies, and the number of activities (dyadic or multiple). For example, coordination mechanisms
aimed at exerting control are more suitable for intrafunctional than interfunctional interaction; interfunctional
coordination relies more on mechanisms that aim to increase the understanding of transport-related issues
among non-logistics activities.
Research limitations/implications The study is based on data from three Swedish companies.
Practical implications Managers are provided with suggestions for coordinating activities when their
goal is to improve load factor. These findings are of interest for reducing costs and emissions.
Originality/value In response to suggestions in the earlier literature that shippers could improve their
internal coordination to improve their load factor, this paper articulates several mechanisms for performing
such coordination in eight situations.
Keywords Interdependencies, Green logistics, Coordination mechanism, Freight transport, Load factor, Shipper
Paper type Research paper
Introduction
Achieving a high load factorhas been identified as an important measure to reduce
both costs and negative environmental impact, including vehicle emissions (e.g. Kamakaté
and Schipper, 2009; Bø and Hammervoll, 2010; McKinnon, 2015). Load factor is the ratio
of load carried to the maximum load that could be carried in a given load unit
(McKinnon and Ge, 2004; McKinnon, 2010); thus, the highest load factor is achieved
when the load units (such as vehicles) that transport the goods carry a full load. In light of
the benefits associated with achieving a high load factor, it is surprising that only a
limited number of articles have focussed on this topic (Pahlén and Börjesson, 2012;
Santén and Rogerson, 2014). In particular, few articles provide details about the role of
companies that send or receive goods (henceforth shippers) in ensuring a high load
factor (Santén and Rogerson, 2014).
Earlier literature describes various decisions that shippers can take to achieve a high
load factor; for example, shippers may decide to consolidate small shipments in the same
vehicle (Ülkü, 2012), change the shipment size (Liljestrand et al., 2015) and/or combine the
The International Journal of
Logistics Management
Vol. 28 No. 4, 2017
pp. 1142-1167
© Emerald PublishingLimited
0957-4093
DOI 10.1108/IJLM-02-2016-0031
Received 8 February 2016
Revised 6 July 2016
6 September 2016
Accepted 14 September 2016
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/0957-4093.htm
The authors would like to thank VINNOVA (the Swedish Governmental Agency for Innovation
Systems) and the Swedish Retail and Wholesale Development Council for providing the funding for the
research on which this paper is based.
1142
IJLM
28,4
units to be loaded in several ways (Santén, 2012). Lumsden et al. (1999) showed in their
study that shippers have the potential to positively affect the load factor; their findings
illustrated how changes in a shippers distribution network could improve the vehicle load
factor by up to 70 per cent.
However, shippersopportunities to achieve a high load factor are constrained in several
ways. McKinnon (2007) lists five such constraints, including market-related, regulatory,
interfunctional, infrastructural, and equipment-related constraints. The interfunctional
constraint is of particular interest in this paper. According to McKinnon (2007),
interfunctional constraints represent one of the most critical factors affecting vehicle
utilisation(p. 33). Specifically, the priorities of disparate functions within organisations
hinder load factor from being managed successfully (McKinnon, 2015). To overcome such
hindrances and successfully realise high load factor, coordination or alignment of these
functions is necessary.
The idea that logistics should be aligned with other functions within an organisation
(sometimes referred to as peerfunctions) is not new. Previous studies, for example, have
examined the alignment between logistics and one other organisational function, such as
marketing (e.g. Murphy and Poist, 1996; Ellinger et al., 2006; Lynch and Whicker, 2008) or
production (Springinklee and Wallenburg, 2012). Others have taken a broader perspective
and have studied logistics and several other functions (van Hoek and Mitchell, 2006).
All of these studies stress the need for coordinating logistics with other functions.
For example, both Lynch and Whicker (2008) and Murphy and Poist (1996) note that the
consequences of poor coordination between logistics and marketing can have a negative
impact on company performance. Further, Springinklee and Wallenburg (2012) suggest that
failure to handle the interdependencies between logistics and production will adversely
affect logistics performance. To add to these earlier studies, van Hoek et al. (2008) called for
research that could investigate and articulate the various mechanisms for accomplishing
alignment between logistics and other functions within an organisation.
The interdependencies between logistics activitiesand other activities, such as production,
procurement, inventory management, warehousing, and sales, can affect the achievement of
high load factor (McKinnon, 2007). McKinnon (2015) offers a concrete example: poor
coordination of purchasing, sales, and logistics, which can occur, for example, as inbound
and outbound transports are frequently handled by different parts of the organisation
(Drewes Nielsen et al., 2003), leads to missing potential opportunities for backloading
(McKinnon, 2015).To manage such interdependencies, coordinationis commonly perceived as
a useful tool (Maloneand Crowston, 1994; Kanda and Deshmukh,2008). In support of this line
of thought, Piecyk(2010) showed that manufacturers and retailers believe that betterinternal
coordination can help transport managers achieve improved load factors. Thus, while
shippers may take actions aimed at achieving high load factor, they must ensure internal
coordination in order to realise that aim.
Although a few examples of how coordination may help to increase load factor do exist
in the literature (e.g. McKinnon, 2007; Piecyk, 2010), the level of detail in such studies is very
limited. The relationship between shippersinternal coordination and load factor needs to be
further explored. Therefore, taking the perspective of the logistics function, the purpose of
this study is to clarify how activities may be coordinated within shippersorganisations to
enable high load factor.
Frame of reference
Load factor
As noted above, the load factor is the ratio between the actual load carried and the
maximum load that could have been carried (McKinnon and Ge, 2004). Several terms have
been used in the previous literature to describe load factor, including fill rate, vehicle
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Internal
coordination

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