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!!