Testbed simulation modelling in an open business ecosystem context – benchmarking logistics network performance

ABSTRACT

This article examines whether holistic systems thinking in a performance measurement context can benefit business development and managerial decision-making in innovative companies utilising a business network. A single-case study examines a logistics network entity consisting of multiple companies committed to an open business ecosystem seeking to create new business opportunities and proposes a testbed simulation tool to benchmark three distinct conceptual models. The systemic approach offers both operational and strategic benefits in supporting managerial decision-making to deliver process efficiency and generate customer value. Findings conclude that holistic business perspective governs the complexity of a logistic system via deeper qualitative investigation, while hard systems thinking captures the quantitative details of the system allowing network performance optimisation.

KEYWORDS:

• Logistics networks
• management tool
• performance measurement
• systems thinking
• simulation
• open business ecosystem

Disclosure statement

No potential conflict of interest was reported by the author(s).

Correction Statement

This article has been corrected with minor changes. These changes do not impact the academic content of the article.

Notes

1 The case baseline supply chain represented multiple actors of all size (large, medium, small). Business sectors and companies were for example: food industry companies, retail store chains, online retail stores, hub operators, logistics companies, carriers, last mile carriers, information technology and service providers.

2 Information of supply chain: 1. Customers (quantity, locations), 2. Service output (volumes), 3. Processes (process charts, activities, resources), 4. Total costs (capital, warehousing, handling, current assets, overheads, transportation and other fixed)

3 From a systematic point of view, the broker sector is the focus, but the value chain also includes actors other than those in logistics and trade, e.g. production, information-technology, third party- and last mile consumer services.