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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!!

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Logistics vs SCM Perspectives Survey

  • 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 – Traditionalist SCM is one small part of logistics.
  • 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 cross- functional 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(SCMi- logisticsi), for i=1 to 88 Identified 50 relabellers, 22 unionists, 16 traditionalists and seven inter-sectionists
  • 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!!