IDEAS home Printed from https://ideas.repec.org/a/ers/journl/vxviiy2014i1p119-138.html
   My bibliography  Save this article

The Effect of Freight Transport Time Changes on The Performance of Manufacturing Companies

Author

Listed:
  • Evangelos Sambracos
  • Irene Ramfou

Abstract

Freight Transport Time (FTT) is an important resource for manufacturing companies, firstly as a cost driver of logistics processes and secondly as a key factor of customer satisfaction. Yet, there is a lot of controversy between researchers regarding the strength of the link between changes in transport time and business performance and the methods used to measure this effect. In this context, the aim of this paper is to estimate the effect that changes in freight transport time have on the economic performance of transport consuming manufacturing companies. With the use of System Dynamics Modelling a simulation model is built identifying the role of FTT in the internal supply chain of a Make to Stock manufacturer. Changes in FTT are introduced in the system affecting the production materials inventory replenishment time and the delivery to consumer time. Simulation results suggest that the effect of FTT changes depend highly on the structure of the company’s decision making process. Through the development and simulation of several scenarios it is evident that information feedback about changes in FTT if interpreted and processed by different decision rules and strategies can lead to different results allowing companies to fruitfully - or not - reap the benefits of improved FTT.

Suggested Citation

  • Evangelos Sambracos & Irene Ramfou, 2014. "The Effect of Freight Transport Time Changes on The Performance of Manufacturing Companies," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 119-138.
    • Handle: RePEc:ers:journl:v:xvii:y:2014:i:1:p:119-138
    as

    Download full text from publisher

    File URL: http://www.ersj.eu/repec/ers/papers/14_1_p7.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Hensher, David A., 2010. "Hypothetical bias, choice experiments and willingness to pay," Transportation Research Part B: Methodological, Elsevier, vol. 44(6), pages 735-752, July.
    2. Luca Zamparini & Aura Reggiani, 2007. "Freight Transport and the Value of Travel Time Savings: A Meta‐analysis of Empirical Studies," Transport Reviews, Taylor & Francis Journals, vol. 27(5), pages 621-636, March.
    3. Evangelos Sambracos & Irene Ramfou, 2013. "Freight Transport Time Savings and Organizational Performance: A Systemic Approach," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 6(1), pages 19-40, April.
    4. Jérôme Massiani, 2003. "Benefits of travel time savings for freight transportation : beyond the costs," ERSA conference papers ersa03p388, European Regional Science Association.
    5. repec:ers:journl:v:xvi:y:2013:i:sisme:p:15-28 is not listed on IDEAS
    6. Danielis, Romeo & Marcucci, Edoardo & Rotaris, Lucia, 2005. "Logistics managers' stated preferences for freight service attributes," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 41(3), pages 201-215, May.
    7. W. J. Baumol & H. D. Vinod, 1970. "An Inventory Theoretic Model of Freight Transport Demand," Management Science, INFORMS, vol. 16(7), pages 413-421, March.
    8. David Hensher & John Rose & William Greene, 2005. "The implications on willingness to pay of respondents ignoring specific attributes," Transportation, Springer, vol. 32(3), pages 203-222, May.
    9. Karel HavlÃ­Ä ek & Pavla BÅ™eÄ ková & Vicky Zampeta, 2013. "Quality Management as a Part of CRM," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 15-28.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Faisal Santiago, 2017. "Trade Secret Protection on Globalization Era," European Research Studies Journal, European Research Studies Journal, vol. 0(4A), pages 66-76.
    2. Adam Sadowski & Katarzyna Wąsowska & Iwo Nowak, 2020. "Logistics Development in European Countries: The Case of Poland," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 500-514.
    3. Ismail Magerramovich Aliev & Viktor Ivglafievich Sigov, 2017. "Creating a Learning Organization as an Increase in the Adaptability of a Company's Human Capital to the Volatility of the External Environment," European Research Studies Journal, European Research Studies Journal, vol. 0(4B), pages 57-69.
    4. Vasudha Garde & Viesturs Pauls Karnups, 2017. "Assessing the Role of Latvia's Participation in Indo-EU Value Chains," European Research Studies Journal, European Research Studies Journal, vol. 0(3A), pages 942-960.
    5. Sambracos, Evangelos & Ramfou, Irene, 2015. "Do freight transport time savings translate to benefit for transport consuming companies?," MPRA Paper 68558, University Library of Munich, Germany.
    6. Rudi Bratamanggala, 2017. "Implications of Tax Receivables and Retribution for the Economic Growth of Indonesia," European Research Studies Journal, European Research Studies Journal, vol. 0(3A), pages 570-579.
    7. Yolanda, 2017. "Impacts of Export Development on Unemployment in Indonesia," European Research Studies Journal, European Research Studies Journal, vol. 0(3A), pages 758-773.
    8. B.G. Khairov & D.T. Novikov & T.A. Prokof'yeva & I.O. Protsenko & S.M. Khairova, 2017. "Reflexive Governance of Import Substitution Mechanism in Clusters," European Research Studies Journal, European Research Studies Journal, vol. 0(3A), pages 470-483.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sambracos, Evangelos & Ramfou, Irene, 2015. "Do freight transport time savings translate to benefit for transport consuming companies?," MPRA Paper 68558, University Library of Munich, Germany.
    2. Evangelos Sambracos & Irene Ramfou, 2013. "Freight Transport Time Savings and Organizational Performance: A Systemic Approach," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 6(1), pages 19-40, April.
    3. Carrion, Carlos & Levinson, David, 2012. "Value of travel time reliability: A review of current evidence," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(4), pages 720-741.
    4. Massiani, Jérôme, 2014. "A micro founded approach to the valuation of benefits of freight travel time savings," Research in Transportation Economics, Elsevier, vol. 47(C), pages 61-69.
    5. Boris Goenaga & Victor Cantillo, 2020. "Willingness to pay for freight travel time savings: contrasting random utility versus random valuation," Transportation, Springer, vol. 47(2), pages 705-736, April.
    6. Paul Hindley & O. Ashton Morgan, 2023. "The Role of Respondent Certainty and Attribute Non-Attendance on the Willingness to Pay for the Attributes of Recyclable Aluminum Bottled Water," Working Papers 23-06, Department of Economics, Appalachian State University.
    7. Rose, John M. & Beck, Matthew J. & Hensher, David A., 2015. "The joint estimation of respondent-reported certainty and acceptability with choice," Transportation Research Part A: Policy and Practice, Elsevier, vol. 71(C), pages 141-152.
    8. Masiero, Lorenzo & Maggi, Rico, 2012. "Estimation of indirect cost and evaluation of protective measures for infrastructure vulnerability: A case study on the transalpine transport corridor," Transport Policy, Elsevier, vol. 20(C), pages 13-21.
    9. Baindur, Deepak & Viegas, José Manuel, 2011. "An agent based model concept for assessing modal share in inter-regional freight transport markets," Journal of Transport Geography, Elsevier, vol. 19(6), pages 1093-1105.
    10. Edoardo Marcucci, 2013. "Logistics Managers' Stated Preferences For Freight Service Attributes: A Comparative Research Method Analysis," Working Papers 0213, CREI Università degli Studi Roma Tre, revised 2013.
    11. Kosenius, Anna-Kaisa, 2013. "Preference discontinuity in choice experiment: Determinants and implications," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 45(C), pages 138-145.
    12. Lehmann, Nico & Sloot, Daniel & Ardone, Armin & Fichtner, Wolf, 2021. "The limited potential of regional electricity marketing – Results from two discrete choice experiments in Germany," Energy Economics, Elsevier, vol. 100(C).
    13. Shams, Kollol & Asgari, Hamidreza & Jin, Xia, 2017. "Valuation of travel time reliability in freight transportation: A review and meta-analysis of stated preference studies," Transportation Research Part A: Policy and Practice, Elsevier, vol. 102(C), pages 228-243.
    14. Jawaher Binsuwadan & Gerard De Jong & Richard Batley & Phill Wheat, 2022. "The value of travel time savings in freight transport: a meta-analysis," Transportation, Springer, vol. 49(4), pages 1183-1209, August.
    15. Ulrike Illmann & Jan Kluge, 2021. "Halb voll oder halb leer? Zur Bedeutung flächendeckender öffentlicher Ladeinfrastruktur für die Entwicklung der Elektromobilität," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 28(05), pages 10-17, October.
    16. Chavez, Daniel E. & Palma, Marco A. & Nayga, Rodolfo M. & Mjelde, James W., 2020. "Product availability in discrete choice experiments with private goods," Journal of choice modelling, Elsevier, vol. 36(C).
    17. Toşa, Cristian & Sato, Hitomi & Morikawa, Takayuki & Miwa, Tomio, 2018. "Commuting behavior in emerging urban areas: Findings of a revealed-preferences and stated-intentions survey in Cluj-Napoca, Romania," Journal of Transport Geography, Elsevier, vol. 68(C), pages 78-93.
    18. Jonas Schmidt & Tammo H. A. Bijmolt, 2020. "Accurately measuring willingness to pay for consumer goods: a meta-analysis of the hypothetical bias," Journal of the Academy of Marketing Science, Springer, vol. 48(3), pages 499-518, May.
    19. Kanchanaroek, Yingluk & Termansen, Mette & Quinn, Claire, 2013. "Property rights regimes in complex fishery management systems: A choice experiment application," Ecological Economics, Elsevier, vol. 93(C), pages 363-373.
    20. Yan, Zhen & Zhou, Jie-hong, 2015. "Measuring consumer heterogeneous preferences for pork traits under media reports: choice experiment in sixteen traceability pilot cities, China," 2015 Conference, August 9-14, 2015, Milan, Italy 212609, International Association of Agricultural Economists.

    More about this item

    Keywords

    Freight Transport Time; Manufacturers; Performance; Systems Dynamics;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:journl:v:xvii:y:2014:i:1:p:119-138. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ersj.eu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.