Competitive strategies and manufacturing logistics

Abstract

Purpose Sets out an exploratory study to give an alternative viewpoint of manufacturing logistics. Design/methodology/approach Based on causal analysis, the relationship between competitive strategy and manufacturing logistics was explored. Variables, including both positioning and competitive dimensions, in the competitive strategy that interacted with manufacturing logistics were identified. The elements of manufacturing logistics for this study included master production scheduling, capacity requirements planning, material planning, purchasing, and inventory control. A weighted business performance index was used to segregate the sample firms into three groups: high‐, average‐, and low‐performing organizations. For each of the performance group, the causal relationships between strategic elements and the performance of manufacturing logistics were then analyzed. Findings The results showed a significant relationship between competitive strategy and manufacturing logistics system performance. Research/limitations/implications Not all the elements in manufacturing logistics may contribute to the logistics performance. The construct of manufacturing logistics depends on a particular set of strategic variables that the organization designs. Originality/value Extends the study of manufacturing logistics beyond its boundary through a broader strategic perspective.