Logistics, strategy and structure

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.