Enterprise logistics and supply chain structure: the role of fit

Abstract

The emergence of the extended manufacturing enterprise, a globally dispersed collection of strategically aligned organizations, has brought new attention to how organizations coordinate the flow of information and materials across their supply chains. This paper explores and develops the concept of enterprise logistics [Greis, N.P., Kasarda, J.D., 1997. Enterprise logistics in the information age. California Management Review 39 (3), 55–78] as a tool for integrating the logistics activities both within and between the strategically aligned organizations of the extended enterprise. Specifically, this paper examines the fit between an organization's enterprise logistics integration capabilities and its supply chain structure. Using a configurations approach, we test whether globally dispersed network organizations that adopt enterprise logistics practices are able to achieve higher levels of organizational performance. Results indicate that enterprise logistics is a necessary tool for the coordination of supply chain operations that are geographically dispersed around the world. However, for a pure network structure, a high level of enterprise logistics integration alone does not guarantee improved organizational performance. The paper ends with a discussion of managerial implications and directions for future research.

Understanding outsourcing contexts through information asymmetry and capability fit

“…The second challenge, capability fit, is the matching of a buyer's needs with a supplier's offerings. The alliance strategy literature (e.g., Niederkofler 1991, Douma et al 2000 and supply chain literature (Stock et al 2000, Zsidisin 2003, Taps and Steger-Jensen 2007 suggest that an appropriate fit between the capabilities of two firms will yield better performance than when misfits occur. This is because outsourcing involves a buyer acquiring from suppliers bundles of resources and skills (i.e., capabilities) that are critical to the buyer's performance; and thus, the stronger the capability fit, the better the resulting outsourcing performance for both parties.…”

An Integrated-Empirical Logistics Perspective on Supply Chain Innovation and Firm Performance

“…Specific logistics process and practices need to be unified to ensure undisrupted flow of materials from suppliers to customers (Stock et al 2000). These also ensures the availability of the right quantity of good at the required place at the appropriate hour; thereby enhancing the value proposition across each stage in the value stream (Caputo, Mininno 1998).…”

“…Therefore logistics integration is characterized with wellcoordinated flow of materials from suppliers; this in turn results the focal firm to have a smooth production process (Frohlich, Westbrook 2001). A direct consequence of this is the elimination of the intangible boundary existing between the focal firm and its suppliers (Stock et al 2000;Flynn et al 2010). Other direct benefits of effective logistics integration are also well recognized e.g.…”

Determinants of informal coordination in networked supply chains

“…It should be noted that it is not easy to anticipate how changes to one of the major elements within a distribution structure will affect the system as a whole (Stock et al, 2000).…”