Performance Benefits of Supply Chain Logistical Integration

Abstract

This study tests the 21st Century Logistics framework by examining the managerial relationships it describes and the degree to which it makes clear the link between improving logistical processes and operating performance improvements. It uses as a framework the six logistics competencies to determine their relative importance and their overall contribution to improved logistics and, by extension, improved operating performance. The primary goal of supply chain improvements is to lower costs and improve customer satisfaction. The most significant of the six areas of competency for achieving these goals are customer integration (creating lasting loyalty with prime customers) and internal integration (seamless linking of internal actions with customer needs). Managers should identify the requirements of their most important customers and work to satisfy those needs in order to get the most out of investments and efforts on supply chain integration. More research is indicated in the areas of the financial rewards of superior performance.

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