Logistics Versus Supply Chain Management : An International Survey PAUL D.LARSON & ARNI HALLDORSSON

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1 Logistics Versus Supply Chain Management : An International Survey PAUL D.LARSON & ARNI HALLDORSSON

2 ABSTRACT This paper opens by describing four unique perspectives on the relationship between logistics and SCM. Four perspectives: traditionalist, relabelling, unionist, inter-sectionist The result of an international survey of logistics / SCM experts are reported. For logistics educators, researchers and practitioners

3 Four unique perspectives SCM is one small part of logistics. Traditionalist

4 Four unique perspectives Traditionalist Educators can easily accomplish this by adding a SCM lecture to the logistics management course, or by inserting a SCM chapter into a logistics textbook. SCM analysts would broaden the scope of logistics analysis

5 Four unique perspectives Relabelling The relabelling perspective simply renames logistics; what was logistics is now SCM.

6 Four unique perspectives Relabelling More recently, Simchi-Levi et al. (2000) confessed that they do not distinguish between logistics and supply chain management. Relabelling narrows the scope of SCM, since SCM equals logistics.

7 Four unique perspectives Unionist This perspective treats logistics as a part of SCM; SCM completely subsumes logistics.

8 Four unique perspectives Unionist Stock & Lambert (2001) suggest supply chain management is the management of eight key business processes:(1) customer relationship management, (2) customer service management, (3) demand management, (4) order fulfillment, (5)manufacturing flow management, (6) procurement, (7) product development and commercialization, and (8) returns. These processes subsume or include much of logistics, purchasing, marketing and operations management.

9 Four unique perspectives Inter-sectionist The intersection concept suggests SCM is not the union of logistics, marketing, operations management purchasing and other functional areas.

10 Four unique perspectives Inter-sectionist The supply chain manager would be involved in the negotiations,but not the purchase order transmission. At the intersection, SCM co-ordinates crossfunctional efforts across multiple firms. SCM is strategic, not tactical.

11 International Survey of Experts Method Researchers created lists of topic/technique items. Combining these lists yielded over 120 items. This list was trimmed to 88 survey items,.

12 International Survey of Experts Method The 88 Survey Items: Strategic management Supplier development Supply chain management (SCM) Information technology..

13 International Survey of Experts Method Respondents were asked to rate the importance of each of these items twice, on scales from zero (no importance) to five (very high importance). The Questionnaire

14 International Survey of Experts Method Total sample = 208(logistics educators) via fax All members of the CLM (Council of Logistics Management). total of 98 usable surveys was received. response rate of 47.1% Survey recipients were from North America, Europe, South America and Asia.

15 International Survey of Experts Results 34 survey items, significantly more important for SCM compared to logistics. (SCM>Logistics) 16 items, significantly more important for logistics compared to SCM. (Logistics>SCM) 38 survey items, there were no significant differences in importance between logistics and SCM.

16 International Survey of Experts Results the top 10 lists, share seven common items common items: Customer service Logistics management Inventory management Information technology Cycle time reduction e-commerce Supply chain management

17 Classifying Logisticians Cluster analysis The first index, abs = sum SCMi - logisticsi, for i=1 to 88 The second index, raw = sum(scmilogisticsi), for i=1 to 88 Identified 50 relabellers, 22 unionists, 16 traditionalists and seven inter-sectionists

18 Classifying Logisticians Results

19 Research Interests and Methods The most prevalent research interests were SCM, e-business, transportation,customer service and relationships. usefulness of various methods for conducting their research, on a scale of one to five. Europeans rated qualitative (case study and interview) methods significantly more useful than their North American counterparts.

20 Conclusions Implications for Logistics Educators Relabellers: under a new name: SCM. Unionists: remove logistics management, cover the essentials of logistics Inter-sectionists: champion an interdisciplinary SCM major Traditionalists: add a SCM lecture to the logistics management course.

21 Conclusions Implications for Logistics Researchers Among the researcher s challenges in SCM is to put boundaries on the study. relabelling and traditionalism imply narrow definitions of SCM. unionism and inter-sectionism suggest broad definitions. focus group discussions, could uncover intuitive and/or theoretical arguments supporting the various perspectives.

22 Conclusions Implications for Logistics Rractitioners Logistics practitioners must define SCM and adopt a perspective on SCM versus logistics. Relabellers can implement SCM Unionists have the challenging task of creating a SCM line organisation and changing many reporting relationships within the firm. Inter-sectionists can start small, adding a SCM staff function available

23 The End. Thanks for your listening!!

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