Logistics activities in supply chain business process. A conceptual framework to guide their implementation

• Date: 09 May 2016
• Published date: 09 May 2016
• Pages: 6-30
• DOI: https://doi.org/10.1108/IJLM-04-2014-0068
• Author: Márcia Maria Penteado Marchesini,Rosane Lúcia Chicarelli Alcântara
• Subject Matter: Management science & operations,Logistics

Logistics activities in supply

chain business process

A conceptual framework to

guide their implementation

Márcia Maria Penteado Marchesini

Engineering, Modeling and Applied Social Sciences Center (CECS),

Federal University of ABC (UFABC), São Bernardo do Campo, Brazil, and

Rosane Lúcia Chicarelli Alcântara

Department of Production Engineering,

Federal University of São Carlos (UFSCar), São Carlos, Brazil

Abstract

Purpose –The purpose of this paper is to propose a set of logistics activities for each key supply chain

business process of the Global Supply Chain Forum (GSCF) model and a conceptual framework to

guide their implementation.

Design/methodology/approach –A literature review on supply chain management (SCM) and

logistics was conducted to integrate the existing knowledge of SCM, key business processes, and

logistics; the latter is critical element for the success of SCM. A set of logistics activities and a

conceptual framework are presented to guide their implementation in each of the key business process

of the GSCF model. Three case studies were conducted in Brazilian food companies to verify the

applicability of the proposed logistics activities, their characterization, and the conceptual framework.

Findings –The logistics activities, the key business processes, and the steps to their implementation

are integrated into a comprehensive framework. A total of 24 logistics activities and a conceptual

framework to guide their implementation for each key business process of the GSCF model were

proposed focussing on competitive advantage in a supply chain environment.

Originality/value –The need for and the benefits derived from the involvement of the logistics in the

key business processes of SCM have been reported in the literature, but the logistics activities in these

processes and the way they were implemented have not yet been identified. According to Eisenhardt

and Graebner (2007), building theory from case studies is an increasingly popular and relevant

research strategy that involves using one or more cases to create theoretical constructs, propositions,

and/or midrange theory from case-based empirical evidence. Therefore, the research gap to be filled

with this manuscript is: “How does the involvement of the logistics area in the key business processes

of the GSCF model occur?”The research question of the present study is: “Which activities are

performed by the logistics area in the key business processes of the GSCF model and how to implement

them?”. This study bridged the research gap and answered the research question by creating a

theoretical construct through a conceptual framework to guide the implementation of the logistics

activities for each key business process of the GSCF model. This paper aimed to extend the existing

theory since the available literature has yet not addressed this research question at all.

Keywords Strategic management, Supply chain management, Logistics, Key business processes,

Logistics activities

Paper type Research paper

1. Introduction

The idea that logistics plays a strategic role in a firm success and that it is one of the

critical elements of supply chain management (SCM) and a key source of competitive

advantage has already been described in previous studies. Bowersox et al. (2013)

The International Journal of

Logistics Management

Vol. 27 No. 1, 2016

pp. 6-30

©Emerald Group Publishing Limited

0957-4093

DOI 10.1108/IJLM-04-2014-0068

Received 24 April 2014

Revised 26 January 2015

Accepted 28 February 2015

The current issue and full text archive of this journal is available on Emerald Insight at:

www.emeraldinsight.com/0957-4093.htm

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IJLM

27,1

believe that the best practices of logistics are subjected to continuous changes that are

associated with supply chain structure and strategy improvements.

Accordingly, theway logistical work is performedcontinues to change radically,even

if its goal remains essentially the same (Bowersox et al.,2013).Thescopeoflogistics,

especially in SCM extends beyond the functional level to include the business processes

level. According to Stank et al. (2005), logistics has a boundary-spanning nature

involving logistics professionals in many SCM activities and responsibilities. Rafele

(2004) pointed out that logistics strategy influences all business processes of the supply

chain. Lambert (2008b, c), Bolumol e et al. (2008), Croxton et al. (2008), Croxton (2008),

Goldsby and García-D astugue (2008), and Rogers et al. (2008a, b) reported that logisticsis

one of the functional areas involved in each of the eight key SCM business processes

defined in theGlobal Supply Chain Forum (GSCF) model,and according to these authors,

logistics executives should compose the management group of each process.

Therefore, the scope of logistics now includes the key SCM business processes, and

logistics directly influences the efficiency and effectiveness of these processes. In other

words, it affects their ability to meet customers’needs at the lowest possible cost. More

precisely, logistics activities are now executed in the key business processes of SCM.

The benefits derived by the involvement of logistics in these processes have already

been addressed by Lambert et al. (2008). The purpose of the present study are to

propose a set of logistics activities for each key supply chain business processes of the

GSCF model and a conceptual framework to guide their implementation.

According to Eisenhardt and Graebner (2007), the research gap is initially proposed

based on the literature; a research question addressing the gap is then proposed.

The research gap to be filled with this manuscript is: “How does the involvement of

the logistics function in the key business processes of the GSCF model occur?”The

research question of the present study is:

RQ1. Which activities are performed by the logistics area in the key business

processes of the GSCF model and how to implement them?

The present study bridged the research gap and answered the research question by

creating a theoretical construct through a conceptual framework to guide the

implementation of the logistics activities for each key business process of the GSCF

model. This paper aimed to extend the existing theory, specially the work of Lambert

et al. (2008), who discussed the role of logistics in SCM, identifying the benefits derived

from the involvement of logistics ineach of the eight key business processesof the GSCF

model. However, thelogistics activities of these supply chain business processes and the

way they were implemented were not identified by this author. Bowersox and Closs

(1996) and Bowersox et al. (2013) made great contributions to the topic “logistics for the

SCM,”but these authors did not propose logistics activities to be performed in the SCM

key business processes, especially in the processes of the GSCF model. Bowersox and

Closs (1996) proposed a model for the logistics organizational development cycle, in

which the Stages 4 and 5 are, respectively, “Process Integration from functions”and

“Process Integration based on information.”These stages seek to change the

organization structure from functional to process-oriented structure but, according to

these authors, the waythe processes are executed and managed is notclear. Thus, it can

be said that the research question has not yet been reported in the literature.

According to Ballou (2007), SCM has never been more important for business than

now because it is the basis for the company to implement a competitive strategy.

Supply chain strategy is currently seen as a source for contributing to the generation of

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Supply chain

business