Study on Integrated Logistics and Value Chain Management

Study on Integrated Logistics and Value Chain Management


Abstract

We are trying to come up with a technique and a management model for the creation and execution of integrated logistics value chains in an ongoing research project involving SINTEF academics and participants from a builder's merchants value chain in Norway. This approach and model, we believe, may be used to a variety of logistical integration scenarios. We discovered the necessity for a new value chain consideration methodology throughout the course of the project. We have evolved towards a process oriented model for such value chains based on Porter's enterprise model, other relevant theories, and conversations and reflections with representatives from the participating businesses.

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Introduction


On the basis of early findings, we believe that a high level of logistical integration across businesses in a value chain from producers to retailers generates competitive benefits. Cooperation, coordination, and the act of bringing the players in the value chain closer together is a criteria for success in order to achieve such a competitive advantage. The major difficulties in ensuring an efficient value chain are questions such as what is the best-suited integration level and how to integrate. In a current Norwegian research project that began in the spring of 1998, the research team is dealing with such problems in order to develop an integrated logistics management model in collaboration with businesses in the builder's merchants value chain.

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Conclusion

The proposed approach to a value chain model, in our opinion, does not conflict with Porter's value chain model. The distinction is that Porter views the value chain as a collection of autonomous businesses, while we offer an integration emphasis on the value chain in this viewpoint, necessitating a view of the companies from the standpoint of an extended organisation. If successful and competitive integrated value chain systems are to be realised, we believe that this comprehensive approach is essential. In the future, we want to use the proposed process-oriented value chain model as a foundation and guidance in analysing additional general instances. In other words, this value chain methodology will be included into the technique and management model for merchant value chains that we are developing.

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