Toward a unified theory of logistics

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Keywords Distribution management, Operations and production management, Supply chain management

Abstract Despite the growing importance of logistics in corporate strategy and the global economy, the logistics literature reveals little effort to build a unified theory of logistics (i.e. a theory of the role of logistics in the firm). Thus, the purpose of this paper is to move toward a unified theory of logistics within the contexts of the strategic role and capabilities of logistics. Considering the importance of logistics in today's corporate strategy, various theories of the firm are adapted to explain the reasons for logistics activities within the firm. The proposed theory should serve as a conceptual reference point for future theory development and empirical research in logistics.

Introduction

Logistics excellence has become a powerful source of competitive differentiation (Mentzer et al, 2001a). In the 1980s and 1990s, companies began to view logistics as more than simply a source of cost savings and recognize it as a source of enhancing product or service offerings as part of the broader supply chain process to create competitive advantage (Novack et al, 1995; McDuffie et al, 2001).

Despite the growing importance of logistics in corporate strategy and the global economy, the logistics discipline does not have as rich a heritage of theory development and empirical research as older and more established disciplines such as anthropology, philosophy, psychology, and sociology (Stock, 1997). In fact, much logistics literature and research has been considered largely managerial in nature and lacking a rigorous orientation toward theory development, testing, and application (Mentzer and Kahn, 1995). Specifically, logistics researchers have made little effort to build a unified theory of logistics (i.e. a theory of the role of logistics in the firm). Although there have been attempts to build logistics theories (e.g. Pisarodi and Langley, 1990; Bienstock et al, 1998; Cooper et al, 1997), they are limited to particular components of logistics (e.g. customer service, logistics quality, etc.). In addition, it is not clear how any particular theory is related to the foundation of the logistics discipline to understand the strategic nature of logistics. The definition of logistics management, as offered by the Council of Logistics Management (2003), is fairly uniformly accepted:

Logistics management is that part of Supply Chain Management that plans,...