IDEAS home Printed from https://ideas.repec.org/a/tei/journl/v6y2013i1p19-40.html
   My bibliography  Save this article

Freight Transport Time Savings and Organizational Performance: A Systemic Approach

Author

Listed:
  • Evangelos Sambracos

    (University of Piraeus, Department of Economics, 80, Karaoli and Dimitriou Str, 18534 Piraeus, Greece)

  • Irene Ramfou

    (University of Piraeus, Department of Economics, 80, Karaoli and Dimitriou Str, 18534 Piraeus, Greece)

Abstract

This paper investigates the effect of freight transport time savings (FTTS) on the performance of transport consuming companies. In the first part existing methods on FTTS valuation are critically discussed and their limitations are identified. Following, a conceptual model is built introducing an alternative approach for the valuation of FTTS that is based on the system perspective of firms, integrating the disciplines of systems thinking, performance measurement, transport and logistics decision making. Evidence from a Systems Dynamics' simulation experiment on a retailer suggests that the effect of FTTS on performance depends highly on the structure of the firm's transport related processes and decision making process. Through the development and simulation of several scenarios concerning the reaction of the firm to the FTTS, it is concluded that the value of FTTS is sensitive to the type of the reaction and its time profile.

Suggested Citation

  • 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.
    • Handle: RePEc:tei:journl:v:6:y:2013:i:1:p:19-40
    as

    Download full text from publisher

    File URL: http://ijbesar.teiemt.gr/docs/volume6_issue1/freight_transport.pdf
    Download Restriction: no
    File URL: http://ijbesar.teiemt.gr/volume6_issue1.php
    Download Restriction: no
    ---><---

    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. Guide, V. Daniel R. & Kraus, Mark E. & Srivastava, Rajesh, 1997. "Scheduling policies for remanufacturing," International Journal of Production Economics, Elsevier, vol. 48(2), pages 187-204, January.
    3. Rob Konings & Hugo Priemus & Peter Nijkamp (ed.), 2008. "The Future of Intermodal Freight Transport," Books, Edward Elgar Publishing, number 3738.
    4. Fleischmann, Moritz & Bloemhof-Ruwaard, Jacqueline M. & Dekker, Rommert & van der Laan, Erwin & van Nunen, Jo A. E. E. & Van Wassenhove, Luk N., 1997. "Quantitative models for reverse logistics: A review," European Journal of Operational Research, Elsevier, vol. 103(1), pages 1-17, November.
    5. Jérôme Massiani, 2008. "The welfare effects of freight travel time savings," Working Papers 08_1, SIET Società Italiana di Economia dei Trasporti e della Logistica.
    6. Jérôme Massiani, 2003. "Benefits of travel time savings for freight transportation : beyond the costs," ERSA conference papers ersa03p388, European Regional Science Association.
    7. 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.
    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. Dreyer, Bent & Gronhaug, Kjell, 2004. "Uncertainty, flexibility, and sustained competitive advantage," Journal of Business Research, Elsevier, vol. 57(5), pages 484-494, May.
    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. 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.
    2. 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.

    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. 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.
    2. Sambracos, Evangelos & Ramfou, Irene, 2010. "Assessing the role of goods transport in organizational performance," MPRA Paper 52204, University Library of Munich, Germany.
    3. Ralf Elbert & Lowis Seikowsky, 2017. "The influences of behavioral biases, barriers and facilitators on the willingness of forwarders’ decision makers to modal shift from unimodal road freight transport to intermodal road–rail freight tra," Journal of Business Economics, Springer, vol. 87(8), pages 1083-1123, November.
    4. V. Daniel R. Guide & Vaidyanathan Jayaraman & Rajesh Srivastava & W. C. Benton, 2000. "Supply-Chain Management for Recoverable Manufacturing Systems," Interfaces, INFORMS, vol. 30(3), pages 125-142, June.
    5. 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.
    6. 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.
    7. Pokharel, Shaligram & Mutha, Akshay, 2009. "Perspectives in reverse logistics: A review," Resources, Conservation & Recycling, Elsevier, vol. 53(4), pages 175-182.
    8. Roland Geyer & Luk N. Van Wassenhove & Atalay Atasu, 2007. "The Economics of Remanufacturing Under Limited Component Durability and Finite Product Life Cycles," Management Science, INFORMS, vol. 53(1), pages 88-100, January.
    9. 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.
    10. 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).
    11. 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.
    12. 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.
    13. 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.
    14. Yi-Kuei Lin & Cheng-Fu Huang & Yi-Chieh Liao, 2019. "Reliability of a stochastic intermodal logistics network under spoilage and time considerations," Annals of Operations Research, Springer, vol. 277(1), pages 95-118, June.
    15. 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).
    16. Kumar, V.N.S.A. & Kumar, V. & Brady, M. & Garza-Reyes, Jose Arturo & Simpson, M., 2017. "Resolving forward-reverse logistics multi-period model using evolutionary algorithms," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 458-469.
    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. Nils Grashof, 2020. "Sinking or swimming in the cluster labour pool? A firm-specific analysis of the effect of specialized labour," Jena Economics Research Papers 2020-006, Friedrich-Schiller-University Jena.
    19. 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.
    20. Zhiguo Wang & Lufei Huang & Cici Xiao He, 2021. "A multi-objective and multi-period optimization model for urban healthcare waste’s reverse logistics network design," Journal of Combinatorial Optimization, Springer, vol. 42(4), pages 785-812, November.

    More about this item

    Keywords

    Performance; Freight Transport Time; Cost-Benefit Analysis; State Preference Surveys; Systems Thinking;
    All these keywords.

    JEL classification:

    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

    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:tei:journl:v:6:y:2013:i:1:p:19-40. 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: Kostas Stergidis (email available below). General contact details of provider: https://edirc.repec.org/data/dbikagr.html .

    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.