The Physical Distribution Concept as a Philosophy of Business

International Journal of Physical Distribution &Amp; Logistics Management

1994

Fast and flexible low-cost data processing and information systems have transformed business operations. Through enhanced information availability, leading manufacturers have accelerated the flow of their products to create competitive advantage based on speed. These companies have developed methods to channel the power of information in order to use organizational resources more effectively and facilitate the management of activities both within and outside the company [1,2]. Internally, interactions between areas such as production and sales can be more closely co-ordinated with the aid of information support. Externally, information availability can result in enhanced service and promote better relationships with supply chain partners. Planning and scheduling systems have been used to manage operations throughout the pipeline. Subsequent reductions in production setup times, lot sizes, and inventory levels have yielded productivity and efficiency improvements [3,4].Changes have been especially dramatic with respect to logistics. Today, logistics is a high-tech process dependent upon information to support planning, operations, and control throughout a firm's supply chain [5][6][7]. In 1992, logistics costs represented approximately 11 per cent of the US gross domestic product[8]. Logistics' 11 COMPUTERIZATION: SUPPORTING INTEGRATION Computers and information are critical to achieving integration.

Section: Discussionmentioning

confidence: 91%

Computerization: Supporting Integration

Gustin

Stank

International Journal of Physical Distribution &Amp; Logistics Management

1994

“…Internal process integration can help firms develop effectiveness-related capabilities to respond to the changing customer demands. A firm's responsiveness to customers requires the support of integrated logistics processes (Daugherty, Sabath, and Rogers 1992), because where there is a lack of integration, sub-optimization with inevitable conflict between departments and activities tends to be the norm (Staude 1987). Zara, a Spanish clothing company, provides an example of how processes integration helps achieve a sustainable competitive advantage by improving responsiveness to customer needs (Heinrich and Simchi-Levi 2005).…”

Section: Process Integration and Efficiency/effectiveness-related Capmentioning

confidence: 99%

Supply Chain Process Integration: A Theoretical Framework

Chen

J of Business Logistics

Landry

2009

246

239

The current study was undertaken to further understanding of supply chain process integration. It is suggested that supply chain integration, the practice of realigning firms' operating structures, should be understood from an internal‐external perspective and a process view. Drawing upon four theories—Strategy‐Structure‐Performance framework, the resource based view of the firm, transaction cost economics, and social network analysis—and combining industry inputs, a theoretical framework of supply chain process integration is developed. It is argued that a firm's strategic priorities are key factors of supply chain process integration. Superior performance is likely to be achieved when necessary supply chain capabilities are developed through supply chain process integration.

“…Early discussions of integration were, for the most part, limited to integration within the firm. For example, Staude wrote of the need for two types of organizational integrationinterdepartmental and intradepartmental [5]. In such situations, a systems approach mandates that the objectives of the firm as a whole should be considered more important than those of individual departments.…”

Section: The Need For Integrated Logisticsmentioning

confidence: 99%

Integrated logistics: achieving logistics performance improvements

Supply Chain Management: An International Journal

Ellinger

Gustin

1996

106

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.