Integrated logistics: achieving logistics performance improvements

Abstract

Successful integrated logistics management ties all logistics activities together in a system which simultaneously works to minimize total distribution costs and maintain desired customer service levels [1]. Over time, the concept has evolved to encompass more than the integration of logistics functions. Today, integrated logistics is generally considered to include planning, allocating, and controlling the financial and human resources committed to manufacturing support and purchasing operations as well as physical distribution [2]. It is likely that an even broader perspective will become commonplace as more businesses place greater emphasis on supply chain management.Supply chain management refers to "the physical network that begins with the supplier and ends with the customer"[3]. As such, supply chain management requires both internal functional integration and external integration. Internally, supply chain management involves working to achieve a seamless integration of logistics with other functional areas. The business philosophy also requires that trading partners and service companies "jointly plan, execute, and co-ordinate logistical performance" [4]. Both types of integration are necessary in order to improve channel-wide performance.The current research was undertaken in order to gain a greater understanding of issues relating to logistics integration. Specifically, survey research was used to assess the level of logistical integration among US firms and to determine whether a linkage exists between implementation of the integrated logistics concept and a firm's logistical performance.

Nurturing Internal Supply Chain Integration

“…While the objective of job rotation is also to enhance employee understanding of other departments, we refer here to formal employee training (without relocation) to achieve the same goal. The importance of inter-organizational training to improve integration for example, was stressed by Daugherty et al (1996). Aggarwal and Singh (2004) also suggested in their study of 22 Indian firms, that interdepartmental training encouraged interdepartmental connectedness.…”

“…Outdated "legacy" systems that do not support a company-wide information perspective have been blamed for poor integration (Daugherty et al, 1996). In their survey, respondents associated the integrated logistics concept strongly with information systems.…”

“…Respondents in (Daugherty et al, 1996) for example, placed top management support as the single most important factor for enhancing integration. However our study found only a moderate support for this notion.…”

Supply chain integration, quality management and firm performance of pork processing industry in China

“…Furthermore, studies have mainly focused on manufacturers not in the agrifood processing business or on processing companies for which agri-food is a non-dominant business (Laframboise and Reyes, 2005;Narasimhan and Kim, 2001;Daugherty et al, 1996). In addition, more emphasis was given to the integration of suppliers in IT or logistics management (e.g.…”

Processos de mudanças relacionados à logística no setor de bens de capital agrícolas: uma análise de sua gestão e relações com áreas-chave da excelência logística

“…Daugherty, Ellinger e Gustin (1996) definem o que foi mencionado como logística integrada, e esta segundo os autores, incluem o planejamento, alocação e controle dos recursos financeiros e humanos comprometidos no suporte das operações de fabricação, suprimento e distribuição física. Ao observar a Figura 2.1, percebe-se o inter-relacionamento entre o fluxo de informações e o fluxo de materiais.…”