Logistics, strategy and structure: A conceptual framework

Logistics, strategy and structure: A conceptual framework

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Article ID: iaor1999594
Country: United Kingdom
Volume: 18
Issue: 1
Start Page Number: 37
End Page Number: 52
Publication Date: Jan 1998
Journal: International Journal of Operations & Production Management
Authors: , ,
Keywords: logistics, strategy
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 recognises 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.

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