The impact of logistics performance on organizational performance in a supply chain context

Abstract

PurposeThe paper's aim is to theorize and assess a logistics performance model incorporating logistics performance as the focal construct with supply chain management strategy as antecedent and organizational performance, both marketing and financial, as consequences.Design/methodology/approachData from a national sample of 142 plant and operations managers are analyzed using a structural equation modeling methodology.FindingsThe results indicate that logistics performance is positively impacted by supply chain management strategy and that both logistics performance and supply chain management strategy positively impact marketing performance, which in turn positively impacts financial performance. Neither supply chain management strategy nor logistics performance was found to directly impact financial performance.Research limitations/implicationsTo compete at the supply chain level, manufacturers must adopt a supply chain management strategy. Such a strategy requires integration and coordination of key external processes such as purchasing, selling, and logistics with supply chain partners. In this study the focus is limited to the impact of logistics performance on organizational performance within a supply chain context.Practical implicationsAs manufacturers work to improve the logistics processes, they support their organization's supply chain strategy, resulting in improved performance for the overall supply chain and ultimately their manufacturing organizations.Originality/valueOrganizational managers are being asked to focus directly on supply chain functions such as logistics to bolster the competitiveness of the supply chains in which their organizations are integral partners. Does such a supply chain focus ultimately result in improved organizational performance? This study provides evidence that a supply chain focus will enhance logistics performance, which will ultimately result in improved organizational performance.

Supply Chain Collaboration in Emerging Economies Moroccan Food, Textile and Leather Industries

“…So, a very strong effect of the logistic performance on the organizational performance was verified. This result is consistent with previous research (Fugate et al, 2010;Green et al, 2008). Our research is of causal nature.…”

Analysis of the skilled work force effect on the logistics performance index—case study from India

“…The chartered institute of logistics and transport (CILT) in the UK describes logistics as getting the right product to the right place in the right quantity at the right time in the best condition and at an acceptable cost [26]. The Council of Supply Chain Management Professionals (2007) defines logistics management as that part of the supply chain management processes, which plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers' requirements [17].…”

The Impact of Logistics Performance on the Sales Level: An Empirical Study in Retail Sector

“…Logistics performance has strong relationship to marketing performance [6]. Most of studies conclude that dimension of sales is a part of marketing performance [10]. Therefore, this study adopts the previous research with focusing on sales as a part of marketing performance measurement.…”