A STRATEGIC FRAMEWORK FOR SUPPLY CHAIN ORIENTED LOGISTICS

INTRODUCTION

The Council of Logistics Management (CLM) lately changed its name to the Council of invest Chain Management Professionals (CSCMP). CLM defined SCM as the planning and management of all activities involved in sourcing and management conversion, and logistics management activities, including coordination and collaboration with suppliers, intermediaries, thirdparty service providers, and customers to facilitate integration of endue and demand management within and across companies (Council of Logistics Management 2004) Logistics management, according to CLM is that part of SCM that plans, implements, and rules the efficient, effective forward and turn topsy-turvy flow and storage of profitables services, and related information between the point of origin and the point of consumption in order to convenient customers' requirements.

The CLM definitions clearly establish that SCM is more broadly conceived than solely "logistics outside the firm" (Lambert 2004; Lambert, Cooper and Pagh, 1998 p 2) new research supports this conception, portraying SCM as a strategic horizontal concept. Mentzer et al. (2001) for example, consider SCM to be "the systemic, strategic coordination of the traditional business functions within a particular company and across businesses within the furnish chain, for the purposes of improving the long-term performance of the individual companies and the invest chain as a whole" (p 18) Lambert, Cooper and Pagh (1998) highlight SCM as the integration of lock opener business processes across the stock chain for the purpose of adding value for customers and stakeholders. The emphasis of each of these definitions is that the objective of SCM is creation of strategic differential advantage obtained by the agency of the total value delivered to end-customers. The strategic perspective upon SCM emerges from Porter's conceptualization of the value chain and value a whole (1991). According to Porter, a value chain is manifested by the agency of the way in which a firm configures and links its internal activities to provide customer value. A value combination of parts to form a whole extends outside the firm to encompass the activities of suppliers, channels, and buyers

Building upon the strategic elements of the Porter framework, the SCM perspective facilitates a better understanding of the relationship between strategic horizontal and functional level activities. Consistent with the Resource Based View (RBV) of strategic management, functional activities are derived from resources that may be make knowned to a greater or less extent depending upon their fit with a firm's overarching strategic orientation (Barney 1991; Deshpande, Parley, and Webster 1993; Mentzer et al. 2001) Existing literature, however, does not specifically explain the relationship between SCM and firm strategy, nor does it sustain an understanding of the interactions among SCM and functional activities. The intention of this paper, therefore, is to not away a theoretically-based framework that establishes SCM as a strategic horizontal phenomenon and promotes a better understanding of the relationship between SCM and traditional functional areas. Specifically, the relationship between SCM and logistics is explored.

The paper is organized as follows: first, paradigms from strategic management and marketing are used to delineate a generic framework to link corporate strategy, business unit orientation, and functional capacity and capabilities. Next, we apply the generic framework to the specific case of fill up chain orientation, supply chain management, and logistics of the like kind that a clear logistics identity in the broader endue chain arena is established to guide notion and development in the discipline. The framework posits researchable propositions regarding the nature of fill up chain oriented logistics. Finally, we draw implications and conclusions for time to come research and teaching.

BACKGROUND AND LITERATURE REVIEW

Competitive advantage traditionally involved the choice regarding the markets in which a firm would strive defending market share in clearly defined parts using price and product performance attributes (Day 1994) Today, however, competition is considered a "war of movement" (p 62) that hangs on anticipating market trends and quick reply to the changes in customer emergencys (Stalk, Evans, and Schulman 1992) Competitive advantage rise s from the creation of superior competencies that are leveraged to create customer value and achieve take away from and/or differentiation advantages, resulting in market share and profitability performance (Barney 1991; Coyne 1986; Day and Wensley 1988; Prahalad and Hamel 1990) Sustaining competitive advantage requires that firms locate up barriers that make imitation difficult from one side continual investment to improve the advantage, making this a long-run cyclical proces (Day and Wensley 1988)

Porter's approach to competitive advantage center upon a firm's ability to perform interrelated economic activities at a collectively lower require to be paid [i]or[/i] undergone than rivals, or to perform a certain quantity of activities in unique ways that create end-customer value (Porter 1991) Internal value chain activities include production, marketing, and delivery as well as support activities necessary to acquire and accumulate internal assets. Performing these activities creates assets in the form of skills, organizational routines, and knowledge. Linking these activities externally with suppliers, channels, and buyer form the basis of competing via the value a whole The Porter framework, however, does not provide specific guidance regarding by what mode to manage those activities to create a competitive advantage.