Logistics and supply chain process integration as a source of competitive advantage

Abstract

Purpose – The purpose of this paper is to investigate the effectiveness of logistics and supply chain integration on firm competitiveness in manufacturing firms. Design/methodology/approach – Utilizing the resource-based view of competitive advantage along with the transaction cost economics theory, the authors address the critical role of logistics and supply chain strategy as the driver of logistics and supply chain integration and firm competitiveness. Structural equation modeling is used to determine the effect of two sets of logistics and supply chain integration practices (logistics/supply chain information integration and logistics/supply chain process integration) along with logistics outsourcing decision practices (logistics investment decisions and private warehousing decisions) on firm competitiveness. Findings – The results indicate that logistics/supply chain strategy is the main driver of logistics and supply chain integration and logistics decisions. Furthermore, the findings suggest that logistics/supply chain process integration is the most significant predictor of firm's competitive position. Research limitations/implications – Further examination and testing of the proposed model across multiple contexts is necessary for validity of the findings. Originality/value – This is one of the first studies that provide an empirical analysis on the importance of different sources of integration (information and process) in logistics and supply chain and their impact on firm competitiveness.

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Measuring the environmental sustainability performance of global supply chains: A multi-regional input-output analysis for carbon, sulphur oxide and water footprints

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Competitiveness Through the Integration of Logistics Activities in SMEs

“…To improve customer service and competitiveness, the development of reverse logistics competencies to physically handle returns, such as stock selection, transportation, centralised collection, data collection, refurbishing or remanufacturing and disposition is important (Morgan, Richey Jr, Autry, 2016;Hansen, Larsen, Nielsen, Groth, Gregersen, Ghosh, 2018). Furthermore, SMEs should integrate supply chain management capabilities that integrate manufacturer and retailer data, create invoices, generate store credits, detail accounts receivable, issue management reports and strategically apply the information gathered to streamline internal processes (Mellat-Parast, Spillan, 2014). With this, competitive benefits such as higher return on investment, higher return on assets, lower cost, higher quality of products and/or services, higher level of customer service and effective knowledge management mechanisms may result (Pal, 2017).…”

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