Logistics Versus Supply Chain

Management : An International

Survey

PAUL D.LARSON & ARNI HALLDORSSON

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

Four unique perspectives –

Traditionalist

� SCM is one small part of logistics.

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

Four unique perspectives –

Relabelling

� The relabelling perspective simply renames

logistics; what was logistics is now SCM.

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.

Four unique perspectives –

Unionist

� This perspective treats logistics as a part of

SCM; SCM completely subsumes logistics.

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.

Four unique perspectives –

Inter-sectionist

� The intersection concept suggests SCM is not

the union of logistics, marketing, operations

management purchasing and other functional

areas.

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 cross-

functional efforts across multiple firms. SCM

is strategic, not tactical.

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,.

International Survey of Experts

–Method

� The 88 Survey Items:

Strategic management

Supplier development

Supply chain management (SCM)

Information technology

…..

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

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.

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.

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

Classifying Logisticians

–Cluster analysis

� The first index , abs = sum| SCMi - logisticsi |,

for i=1 to 88

� The second index , raw = sum(SCMi-

logisticsi), for i=1 to 88

� Identified 50 relabellers, 22 unionists, 16

traditionalists and seven inter-sectionists

Classifying Logisticians

–Results

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.

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.

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.

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

�The End.

�Thanks for your listening!!