The importance of developing logistics competencies: a study of Australian and New Zealand firms

Abstract

Australian and New Zealand (ANZ) firms are becoming increasingly conscious of the importance of effective logistics and supply chain strategies in achieving competitive success. This paper reports on the findings of a survey of ANZ firms to ascertain the level of logistics competency of these firms and their approach to logistics strategy. A large number of firms is still focused on an internal integration strategy, although those with a high level of logistics competency are beginning to focus on external supply chain integration. Firms also indicate a move towards an integrated supply chain strategy as a priority for the future. The focus of ANZ firms is more on customer service than cost. Interestingly, those organisations that have an executive with supply chain in their title also tend to exhibit a high logistics competency. Those ANZ firms that focus on external, customer-based service strategies, that have elevated supply chain management to high levels in the firm, and who continually benchmark their activities are more likely to be the better performing firms within their industry sectors.

Keywords:

• Logistics strategy
• Six competencies model
• Supply chain integration
• Australia
• New Zealand

Notes

^†For a fuller understanding of the Supply Chain 2000 Framework, the reader is encouraged to read 21st Century Logistics: Making Supply Chain Integration a Reality, by Bowersox et al. 1999). All competency definitions discussed in this section are taken directly from 21st Century Logistics.

^†This pattern of 25% of the firms having a “supply chain” executive was very consistent across supply chain echelons. Thus, the focus on supply chain at a high level in the firm does not appear to be the domain of a particular type of business (e.g. retailer, wholesaler, manufacturer).