Logistics Leverage

Journal of Business StrategiesVol. 25 Nbr. 2, October 2008

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Summary


It is the purpose of this paper to position marketing and logistics relationships in a strategic context. The strategic position of both areas is used to draw conclusions for the future relationships of marketing and logistics and to suggest the need to focus on creating "logistics leverage." Logistics leverage - the ability to achieve marketing advantage through logistics superiority - is accomplished through the resolution of nine key issues. Once resolved, logistics can be exploited to obtain and maintain significant competitive advantage.

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Extract


Logistics Leverage

Introduction

Much recent attention in both business and research has been devoted to the importance of interfunctional coordination (Crittenden, 1992; Deshpande & Webster, 1989; Kahn & Mentzer, 1994; Lichtenthal & Wilson, 1992; O'Reilly, 1991; Ruekert & Walker, 1987; St. John, 1991; St. John & Hall, 1991). Two areas that have received particular scrutiny have been marketing and logistics (Granzin, 1980; Granzin & Bahn, 1989; Mentzer, 1993; Rinehart, Cooper & Wagenheim, 1989; Voorhees & Coppett, 1986; Voorhees, Teas, Allen & Dinkier, 1988). It is the objective of this paper is to examine the relationship between marketing and logistics within a strategic context. This examination is developed in four parts. In the first part, two catalysts to further integration of marketing and logistics are discussed. In the next part, the integration of marketing and logistics is projected into a strategic context. The third part introduces the concept of logistics leverage and the nine issues that must be resolved to accomplish it. Finally, conclusions for marketing and logistics managers and researchers are presented.

Marketing/Logistics Integration Catalysts

Although marketing and logistics often receive some degree of integration, two catalysts existing in the business environment are working to make logisti...

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