Innovation in Logistics Outsourcing Relationships - Literature review Example

Literature Review

Wallenburg, Carl Marcus. S. (April 01, 2009). Innovation in Logistics Outsourcing Relationships: Proactive Improvement By Logistics Service Providers As A Driver Of Customer Loyalty. Journal of Supply Chain Management, 45, 2, 75-93.

Wallenberg is a business researcher and writer who has written several books and articles about the global business operations. The author has vast knowledge in business and has specialized in global business operation which makes this article a good source of information regarding global competitive advantage. The article explains that innovation is one of the main factors that logistics companies can use to achieve differentiation and reduce competition. The author reveals that the logistics companies have an obligation to engage proactive innovation in offsetting the problem of ex-post adaptation. According to the article, it is not yet established whether logistics service providers can use innovation and proactive improvement to achieve loyalty among their customers. The study takes an analysis of 298 logistics outsourcing relationships through the use of an arithmetic modeling technique using a survey method and structural equation modeling to assess the effect that proactive cost improvement and proactive performance improvement have on customer loyalty. The results show that cost and performance improvement are both vital factors that have a significant impact on loyalty. This article provides evidence that supports the hypothesized relationship that exists between service improvement by logistics companies and customer loyalty.

Wagner, S. M. (January 01, 2008). Innovation Management in the German Transportation Industry. Journal of Business Logistics, 29, 2, 215-232.

This article is written by Stephan M. Wagner who is a Ph.D. holder from the University of St. Gallen. Wagner is a professor and the chairman of the Swiss Federal Institute of Technology logistics management. His field of interest in research is the area of supply chain and competitive strategy. This article expounds on the concept of management of innovation in logistics companies. It takes into consideration different perspectives which include macro-sectorial and micro-firm approaches. The article makes use of empirical data related to the German logistics industry to expound on the current situation. The author differentiates various types of innovation highlighting the significance of each to the achievement of competitive advantage for a company. The results attained show that the level of innovation and the essential function played by innovation in the logistics industry is low when compared to other industries. The author reveals that only about 30% of the firms in the logistics service industry are innovative. The author recommends that the logistics companies should in future implement the small forms of innovation that they currently neglect. This article expounds on the issue of innovation in a way that gives relevant information that can be applied in academic researches. The author is competent in terms of qualifications and experience and therefore the information presented is from an informed person’s perspective.

Grawe, S. J. (January 01, 2009). Logistics innovation: a literature-based conceptual framework. International Journal of Logistics Management, 20, 3, 360-377.

Scott J. Grawe is a holder of an MBA degree from The University of Minnesota and is currently pursuing a Ph.D. in Marketing and Supply Chain Management at The Oklahoma University. Scott has authored numerous article and books especially in the field of supply chain and logistics. The research presented in this paper focuses mainly on logistics innovation and supply chain integration. His educational and experience background includes eight years where he served in management of domestic and international logistics. The fundamental purpose of this research was to come up with an appropriate model for logistics innovation based on literature on logistics and also present recommendation which can be further explored in the next research. The author reviews several articles on supply chain and logistics which are selected based on their clear relevance to logistics innovation. The author finds out that there have been limited literature-based studies in the field of logistics and innovation. The findings further establish that though there have been identification of leading innovations in Logistics Company, there is very little empirical assessment that has been conducted on the issue. Current literature on the issue of logistics has recognized innovations that have currently occurred in the industry. This paper provides an explicit model of innovations which have occurred in the logistics industry through a review and analysis of existing literature.

Renko, S., & Ficko, D. (May 01, 2010). New logistics technologies in improving customer value in retailing service. Journal of Retailing and Consumer Services, 17, 3, 216-223.

Sanda Renko and Dejan Ficko are the authors of the article on emerging logistics technologies that are changing the performance of the supply chain. The authors explain how logistics play a significant role in the supply chain today. This article analyses a variety of emerging trends and technological innovations that to have a significant impact on the Croatian logistics in the next ten years. The article presents the results of a study that was carried out on selected Croatian retail managers which show that the Croatian logistics firms have not integrated emerging technologies in their operations. Notably, the Croatian retail and logistics industry seems not to have realized the significance of technology in enhancing efficient operations. The article explains how there is pressure to provide quality services, improve knowledge and skills as well as reduce the operating costs which is exerted on the Croatian logistics industry. Despite all these pressures, the Croatian industry has not yet embraced internet-based technologies as a way to improve knowledge and service delivery. The firms in Croatia use some Internet technologies mostly in advertising, the process of ordering and all transactions with suppliers, and the communication with other business entities. This article contains extensive information about the Croatian logistics industry, and the impact lack of technological integration has on it.

Evangelista, P., McKinnon, A., & Sweeney, E. (September 05, 2013). Technology adoption in small and medium-sized logistics providers. Industrial Management and Data Systems, 113, 7, 967-989.

The main purpose of this article is to expound on the significance of information and communication technology (ICT) in the process of logistics innovation. The author uses a research strategy that combines both qualitative and qualitative research methods. The findings reveal that significantly low funds are spent on information technology integration into business operations and most of the logistics companies only adopt formal technologies. The findings of this paper emphasize the importance of integration of information technology into the supply chain management and logistics. Notably, most of the companies have currently started an expansion exercise on their portfolios and the extensive use of ICT in operations. The article reveals that lack of sufficient skills and experience among the workforce is a major challenge that adoption of technology faces. This paper presents an extensive research that touches on key areas of the supply chain and general logistics. The findings presented in the article give a crucial guide that can be used by practitioners in the process of adoption of ICT. Notably, this guide can enhance effective ICT integration as part of the logistics innovation process. The actual examples presented in the paper show the underlying issues that ICT adoption faces in the logistics industry.

Williams, M. L., & Frolick, M. N. (June 06, 2001). The Evolution of EDI for Competitive Advantage: The Fedex Case. Information Systems Management, 18, 2, 47-53.

Margret Williams and Mark Frolick are both authors on the vast topic of supply chain and logistics. These two have sufficient experience on the topic of electronic data interchange (EDI) and the role it plays in logistics. These two authors expound on how EDI has evolved to become an integral part of modern day logistics. The Fedex organization is used as a case study to explore how EDI has enhanced innovation and enabled the firm to attain a competitive advantage. Notably, FedEx has faced both the merits and demerits of the technology, and therefore it is an ideal firm to use in studying the EDI technology. EDI which is currently considered as a technology of the past can be used as a valuable business tool. The article explains how FedEx has used the EDI technology to lower inventory levels, speed up payment of bills and to improve customer relations. Innovation in the logistics industry does not focus on the development of new products, product commercialization, and structural changes, but rather on technological advancement and investment in improvised operational equipment. Most of the companies in the logistics industry have started to move towards integration on web based communication methods. FedEx is one of the firms that have tapped on the opportunity presented by electronic data interchange. This article presents authentic information on the logistics operations of FedEx and how the firm has used EDI to attain competitive advantage. The content presented in this article can be used in academic research as well as in writing of academic papers.

Hazen, B. T., & Byrd, T. A. (January 27, 2012). Toward creating competitive advantage with logistics information technology. International Journal of Physical Distribution & Logistics Management, 42, 1, 8-35.

This article is written by Hazen Benjamin and Terry Anthony who are authors in the business field. The colluded and worked together to come up with this extensive logistics article that seeks to successfully analyze the appropriate information technologies that are vital in enhancing competitiveness in the supply chain currently. The author asserts that off the shelf technologies are not enough to give a business competitive advantage. These technologies should, therefore, be combined with the appropriate use of another resource so as to keep a firm competitive. This article makes use of logistics innovation literature and the resource-advantage theory in the investigation of the performance impact of the adoption of information technology. The paper suggests that effective adoption of technology in logistics presents an opportunity through which firms can attain competitive advantage. The finding of this research reveals that logistics information technology enhances effectiveness, efficiency, and resilience in the core operations. When combined with the other resources, innovation may create a competitive advantage that can propel a company to ultimate success. This research presents a thorough analysis of the role of logistics information technologies in achieving competitive advantage for Logistics firms. The information presented in the article is authentic and can be used in academic research as well as in the preparation of class reports.

Jayaraman, V., & Yadong, L. V. (n.d.). Creating Competitive Advantages Through New Value Creation: A Reverse Logistics Perspective. Academy of Management Perspectives, 21, 2, 56-73.

This article was written by Vaidyanathan Jayaraman and also Yadong Luo. The fam`ily name of the writers is Jarman and Luo. It was written in May 2007 and given the title, a reverse Logistics Perspective. The main objective of this research is to offer a redefined value shackle of policy made up of a closed loop system for industries where converse chain actions can generate extra competitive benefits for the entire firm. The questions that arise from this research is that, Is value chain primary undertakings a sealed loop or a one-way turning flow? What is reverse logistics? The findings from this research is that, for those firms which fail to find out the relevance of a favorable reverse logistics strategy as one of their value chain risk destroying the relations of customers and can greatly risk the image of their brand as well as reputation. I recommend that a favorable reverse logistics program may be a differentiator and offers a way of acquiring an advantageous market. In conclusion, with a redefined value chain that integrates proper strategies for the inverse flows, needs dissimilar systems of management for efficient planning and also control. This study is useful since it offers a platform for upcoming research to being re-defined value chain structures.

Yew, W. C., & Karia, N. (November 01, 2010). Explaining the competitive advantage of logistics service providers: A resource-based view approach. International Journal of Production Economics, 128, 1, 51-67.

This article specifically deals with the identification of strategic logistics resources which are used by logistics service providers (LSPs) to gain competitive advantage. From the article, it is evident that logistic companies have to strategize and align their operations according to their strategies so as to remain profitable. The article presents an analysis of a theoretical framework that is attained from the resource-based view (RBV) theory. The article analyses databases from about 15 logistics companies. The results attained reveal that all the logistics companies make use of human, technology, and information related resources to build up an operational framework that enhances their capabilities thus giving them a competitive advantage. However, it is evident that only a few of them have an excellent financial record which raises the issue of strategic logistics resources and the process of resource building. This article analyses empirical evidence in an attempt to explain the issue of competitive advantage in logistics firms. The research presented in the article identifies the five basic resources that logistics firms use to get a strategic advantage. Based on the results of the research, the conceptualization and assessment of these resource constructs are explored.

D’Aleo, V., & Sergi, B. S. (January 01, 2017). Human factor: the competitive advantage driver of the EU’s logistics sector. International Journal of Production Research, 55, 3, 642-655.

D’Aleo and Sergi are the authors of this article that mainly talks about human factor as the main component that drives competitive advantage. The authors have extensive knowledge on the issue of logistics and the role of the human factor in promoting efficiency in the supply chain. This article aims at assessing the components international competitiveness index in relation to global logistics performance. The author analyses this issue using three particular approaches that include human resource, infrastructure, and institutions. The paper attempts to find out whether these three fundamental issues have an effect on the efficiency in logistics firms operating in European countries. The research establishes that human resource is the most important factor in enhancing logistics performance, than both institutions and infrastructure. The author uses a divergent domain of analysis to establish how investment is prioritized through the use of the human resource factor. The study attempts to address the inefficiency in the logistics systems in European countries. This article contains authentic and reliable information that can be used in academic research and report writing. The author cites real examples that the audience can easily relate with. This article as information that is authentic and reliable as it is evident that the information is obtained from credible sources.