Logistics, strategy and structure

TLDR

New competitive pressures and global dispersion of resources make coordination of manufacturing sites a critical activity. The authors propose a framework and model that positions logistics as the key link between strategy and structure in a changing manufacturing environment. The model defines a strategy‑structure relationship that integrates logistics to create the fit needed for competitive success. The framework predicts that aligning strategy and structure with logistics strengths improves firm performance.

Abstract

Presents a framework for explaining the relationship between strategy, structure, and logistics in the context of a changing environment. In response to new competitive pressures, a manufacturing enterprise is emerging in which resources may now be dispersed worldwide. As distances between production facilities and pressures for fast delivery increase, the coordination of these dispersed manufacturing resources becomes a critical activity. Argues that logistics is well‐positioned to assume a unique role in bridging strategy and structure in the new manufacturing environment. Develops a new model of the strategy‐structure relationship that recognizes the integral role that logistics will play in creating the “fit” necessary to achieve competitive success. The framework suggests that performance will be higher when the firm’s strategy and structure are consistent with the strengths inherent in the firm’s logistics choices.