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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), Democritus University of Thrace (DUTH), Kavala Campus, Greece, vol. 6(1), pages 19-40, April.
    • Handle: RePEc:tei:journl:v:6:y:2013:i:1:p:19-40
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    File URL: https://ijbesar.af.duth.gr/docs/volume6_issue1/freight_transport.pdf
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    References listed on IDEAS

    as
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    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.

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    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

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