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To cite this article: Paul D. Larson & Arni Halldorsson (2004): Logistics versus supply chain
management: An international survey, International Journal of Logistics Research and Applications: A
Leading Journal of Supply Chain Management, 7:1, 17-31
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International Journal of Logistics: Research and Applications
Vol. 7, No. 1, March 2004
1
Iowa State University, College of Business, USA & 2Copenhagen
Business School, Department of Operations Management,
Solbjerg Plads 3, DK-2000, Frederiksberg, Denmark
ABSTRACT Supply chain management (SCM) remains an important topic among logistics
managers, researchers and educators. This paper opens by describing four unique
perspectives on the relationship between logistics and SCM. Next, the results of an
international survey of logistics=SCM experts are reported. Over 200 questionnaires were
faxed to leading logistics educators in North America, Europe, South America and Asia.
Based on these experts’ perceptions, cluster analysis confirms the existence of the four
perspectives on logistics versus SCM—relabelling, traditionalist, unionist and inter-
sectionist. The paper closes with a discussion on implications of the four perspectives for
educators, researchers and practitioners.
Introduction
*Correspondence: Paul D. Larson, Iowa State University, College of Business, 300 Carver Hall, Ames,
IA 50011, USA; E-mail: pdl@iastate.edu
for a guild of specialist researchers’’ (New, 1997). Amid this confusion, Skjoett-
Larsen (1999) noted that the SCM ‘‘concept is not well defined’’. According to
Cooper et al. (1997), ‘‘research is needed to define and expand the boundaries of
supply chain management’’.
The unclear conceptual boundaries of SCM make it difficult to design educa-
tional and research programmes in SCM without large overlap with other fields
such as logistics, marketing, operations management and purchasing. Moreover, it
is difficult if not impossible to implement SCM unless it is well defined. Where are
the conceptual boundaries to be drawn in conducting research on or implementing
SCM? Can research be done directly on SCM, or must the concept be broken down,
for focus on its features? This paper attempts to put limits on the SCM concept,
using logistics=SCM experts’ ratings of key concepts, topics and techniques. This
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According to Stock & Lambert (2001), SCM ‘‘is the integration of key business
processes from end user through original suppliers that provides products,
services, and information that add value for customers and other stakeholders’’.
Christopher (1998) suggested a relationship view of SCM, defined as ‘‘the manage-
ment of upstream and downstream relationships with suppliers and customers to
deliver superior customer value at less cost to the supply chain as a whole’’. The
key is managing relationships—similar to the systems idea of positive synergistic
effects created through linkages—rather than optimising individual components of
the system. The systems approach focuses not only on the components (e.g. func-
tions or activities), but also on how they are related.
SCM has also inspired a new Council of Logistics Management (CLM) definition
of logistics as ‘‘that part of the supply chain process that plans, implements, and
controls the efficient, effective flow and storage of goods, services, and related
information from the point of origin to the point of consumption in order to meet
customers’ requirements (www.clm1.org=, 2000)’’. But there is lack of agreement on
how SCM is related to logistics. Following are four conceptual perspectives on SCM
versus logistics: traditionalist, relabelling, unionist and inter-sectionist. The per-
spectives are discussed briefly below and shown in Figure 1. The authors identified
these perspectives while reading and discussing the growing SCM literature.
Traditionalist
The traditionalist positions SCM within logistics, i.e. SCM is one small part of
logistics. Educators can easily accomplish this by adding a SCM lecture to the
logistics management course, or by inserting a SCM chapter into a logistics text-
book. Of course, logistics textbook authors who add a SCM chapter are not
necessarily traditionalists. Stock & Lambert (2001) observed that the logistics
Logistics Versus Supply Chain Management 19
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community has tended to view SCM as ‘‘logistics outside the firm’’. This reduces
SCM to a special type of logistics, external or inter-organisational logistics.
Traditionalist practitioners may create new ‘‘SCM analyst’’ positions within the
logistics group. SCM analysts would broaden the scope of logistics analysis, per-
haps linking the logistics effort to other functions within the firm, as well as other
firms in the supply chain.
Relabelling
The relabelling perspective simply renames logistics; what was logistics is now
SCM. Leenders & Fearon (1997) describe ‘‘logistics management, or supply chain
management’’ as an organisational strategy. Tan et al. (1998) discuss an evolution of
logistics into ‘‘integrated logistics’’, which is now often called ‘‘SCM’’. Moreover,
according to Jones & Riley (1985), SCM techniques ‘‘deal with the planning and
control of total materials flows from suppliers through end users’’. This notion of
SCM overlaps heavily with the CLM definition of logistics. More recently, Simchi-Levi
et al. (2000) confessed that they ‘‘do not distinguish between logistics and supply
chain management’’. They also use supply chain and logistics network as synonymous
terms. Relabelling narrows the scope of SCM, since SCM equals logistics. In the
world of logistics practice, last year’s ‘‘logistics analyst’’ may be this year’s ‘‘SCM
analyst’’, with no change in job description.
Gammelgaard & Larson (2001) reported results of a survey of supply chain
managers. The survey included the following open-ended question: ‘‘Please briefly
describe what a supply chain manager does’’. A large group of responses to this
question reflected the relabelling perspective (supply chain manager as logistics
manager). A selection of such responses follows. Following each definition, the
respondent’s industry is in parentheses. A supply chain manager ‘‘manages all of,
20 P. D. Larson & A. Halldorsson
or a portion of, the process of getting the right product to the right place at the right
time in the right quantities for the right cost with the right quality’’ (multi-level
marketing or MLM company); ‘‘SCMs coordinate the flow between factory and the
customer’’ (consumer packaged goods manufacturer); SCM ‘‘innovates, transforms
logistics processes into strategic advantage’’ (retailer); ‘‘a supply chain manager
manages logistics activities within the supply chain’’ (logistics service provider).
Unionist
This perspective treats logistics as a part of SCM; SCM completely subsumes
logistics. Giunipero & Brand (1996) expressed this view with the following state-
ment: ‘‘SCM is more than logistics’’. In the extreme, SCM subsumes much of the
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receipt, setting of raw material stock levels, finished goods stock level at plants,
transportation to distribution centre (DC) or customer, stock level replenishment at
DCs’’ (casket manufacturer).
Inter-sectionist
Giunipero & Brand (1996) hinted at this idea with the following statement: ‘‘SCM
is not a subset of logistics but is a broad strategy which cuts across business pro-
cesses both within the firm and through the channels’’. The intersection concept
suggests SCM is not the union of logistics, marketing, operations management,
purchasing and other functional areas. Rather, it includes strategic, integrative
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elements from all of these disciplines. For instance, in the purchasing area, nego-
tiating a long-term arrangement is a strategic element and transmitting a purchase
order is tactical. The supply chain manager would be involved in the negotiations,
but not the purchase order transmission. Similarly, in the logistics area, hiring a
third-party logistics (3PL) provider is a strategic decision, while picking and
packing in the warehouse are tactical. At the intersection, SCM co-ordinates cross-
functional efforts across multiple firms. SCM is strategic, not tactical.
In practice, inter-sectionist organisations may appoint a supply chain council,
consisting of key executives across functions (e.g. logistics, marketing and pur-
chasing) and institutions (e.g. manufacturer, retailer and 3PL). The council would
break down barriers to SCM and seek opportunities to apply SCM concepts to
improve overall supply chain performance. A small, consultative SCM group,
operating in a staff (rather than a line) capacity, would also be indicative of the
inter-sectionist perspective. Logistics, marketing, operations and purchasing do not
report to SCM. Rather, these departments draw on the SCM group for research,
intelligence and consulting support.
Despite a growing base of literature and experience, there appears to be no
consensus on the relation between logistics and SCM. Cooper et al. (1997) recognise
multiple perspectives on logistics versus SCM, noting ‘‘practitioners and educators
have variously addressed the concept of supply chain management (SCM) as an
extension of logistics, the same as logistics, or as an all-encompassing approach to
business integration’’. They also suggest that SCM ‘‘can be the management of all
business processes’’. Thus, the next section reports results of a survey on how an
international group of experts perceives SCM vis-a -vis logistics.
Methods
A selection of published articles and leading texts in logistics management (e.g.
Lambert et al., 1998; Stock & Lambert, 2001), purchasing and supply management
(e.g. Leenders & Fearon, 1997) and SCM (e.g. Christopher, 1998; Handfield &
Nichols, 1999) were studied to develop an initial list of topics and techniques in
logistics and SCM. Working independently, the researchers created lists of
topic=technique items. Combining these lists yielded over 120 items. This list was
trimmed to 88 survey items, through discussion and consensus of the researchers,
since some items seemed nearly identical. Appendix A lists the 88 items and
22 P. D. Larson & A. Halldorsson
Appendix B shows the questionnaire. Respondents were asked to rate the impor-
tance of each of these items twice (once for a Logistics Management course and
once for a SCM course), on scales from zero (no importance) to five (very high
importance).
The three-page survey was transmitted via fax to 208 logistics educators, all
members of the CLM. Survey recipients were from North America, Europe, South
America and Asia. As a response incentive, survey respondents were invited to
write their names on their responses—and be entered in a drawing for US$ 300.
Respondents were also invited to request a summary of the survey results. Follow-
ups were done via e-mail, then regular mail. A total of 98 usable surveys was
received, for a response rate of 47.1%.
Experience of the respondents, as logistics=SCM educators, ranges from 1 to 35
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years and averages 12.9 years. While 73.5% of these educators have taught graduate
level logistics management courses, 81.6% have taught logistics management at the
undergraduate level. On the other hand, only 45.9 and 50.0% of the respondents
have taught SCM courses at the graduate and undergraduate level, respectively.
The schools employing these educators have an average of 120.3 students enrolled
in logistics=SCM programmes, and the number of students enrolled in these pro-
grammes ranges from zero to 750. Geographically, the respondents are from four
continents, as follows: 69 from North America, 21 from the European Community,
five from South America and one from Asia.
unique content, logistics retains some unique content, yet there is substantial
overlap between the two areas.
Note that ‘‘supply chain management’’ is the top-rated SCM item. This item
serves as a validity check, in addition to its value in differentiating logistics from
SCM. It is comforting that this item is the highest-rated SCM item, implying the
respondents devoted close attention to the survey questions. What could be more
important to SCM than SCM?
Table 3 shows the tendency for educators to be teaching either both under-
graduate and graduate-level SCM courses—or not to be teaching SCM at all. t-Tests
were used to compare the most experienced SCM educators (both undergraduate
and graduate-level courses taught) with the least experienced (neither graduate nor
undergraduate courses taught), in terms of item importance for SCM. The only
significant difference found (at the 0.05 level) was for the ‘‘logistics management’’
24 P. D. Larson & A. Halldorsson
item. The least experienced group rated this item significantly more important for a
SCM course than did the most experienced group (4.66 versus 4.21). Apparently,
more experienced educators downgrade the prominence of logistics in SCM, per-
haps to broaden the focus of SCM.
Classifying Logisticians
Two indices were created to classify logisticians in terms of their perceptions on
SCM and logistics management content. The first index, abs, is the sum of the
absolute value of differences between importance for SCM and importance for
logistics, across all survey items (i.e. abs ¼ sum|SCMi 7logisticsi|, for i ¼ 1 to 88).
Logisticians with low abs scores are relabellers, since they perceive relatively little
difference between logistics and SCM. The second index, raw, is the sum of the raw
differences between importance for SCM and importance for logistics, across all
survey items [i.e. raw ¼ sum(SCMi 7logisticsi), for i ¼ 1 to 88]. Logisticians with
high raw scores are unionists, since they perceive a relatively large difference
between SCM and logistics, usually in favour of SCM. Those logisticians with high
abs scores but low raw scores are inter-sectionists. Like the unionists, these educators
see substantial differences between SCM and logistics. However, in the inter-
sectionist view, the differences are more balanced, in favour of neither SCM nor
logistics. Some topic=technique items are tilted toward SCM (e.g. conflict man-
agement), while others lean toward logistics (e.g. transportation). Finally, tradi-
tionalists tend to have high negative raw scores. They perceive a relatively large
difference between SCM and logistics, generally in favour of logistics.
Cluster analysis was used to place individual respondents into groups, based
on the two indices defined above. Ward’s hierarchical clustering procedure was
conducted on the squared Euclidean distances (Hair et al., 1987). Inspired by con-
ceptual derivation of the four perspectives model, the researchers opted for for-
mation of four clusters. Hypothetically, one cluster should naturally form around
each of the four perspectives on logistics versus SCM.
Figure 2 reveals formation of four clusters, each reflecting one of the four
perspectives. The clustering algorithm identified 50 relabellers, 22 unionists, 16
traditionalists and seven inter-sectionists. Thus, the empirical results support the
four perspectives model of logistics versus SCM.
The survey also asked the logistics experts=educators to list their top three research
interests and to rate the importance of seven research methods for pursuing those
interests. The most prevalent research interests were SCM, e-business, transporta-
tion, customer service and relationships. About one-third of the topics mentioned
4
NA–EC: t ¼ 2.28 ( p-value ¼ 0.025).
Conclusions
Results of the survey provide support for the four perspectives model, i.e. logis-
ticians can be clustered into four groups on the logistics versus SCM issue. The final
section builds on this empirical finding, with implications for logistics educators,
researchers and practitioners.
SCM’’. How should inter-sectionists go about selling SCM to key interface dis-
ciplines, such as marketing and operations management? Indeed, is logistics the
right discipline to lead the SCM charge?
The survey results also offer guidance for the educator teaching both SCM and
logistics management. Some topics and techniques seem to be best covered in a
logistics management course (e.g. transportation), while others fit better in SCM
(e.g. conflict management). Still other topics and techniques appear at the inter-
section of logistics and SCM (e.g. customer service and inventory management).
Educators could use the survey as a tool to assist in making each course unique,
while showing students the links between SCM and logistics.
research. According to Gummesson (1991), ‘‘if you want to understand in depth the
mechanisms of change you need not study a large number of cases’’.
The quantitative, survey research reported in this paper confirms the existence of
four perspectives on logistics versus SCM. Future research, using qualitative
methods, should further explore differences between the four perspectives—and
their implications for implementation of SCM. For instance, in-depth interviews
could be used to understand better why logisticians are drawn to the various
perspectives. In addition, focus group discussions, at meetings such as the annual
CLM conference, could uncover intuitive and=or theoretical arguments supporting
the various perspectives.
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www.clm1.org=, accessed 23 March 2000.
Please indicate how important you believe it is to cover each of the following
topics, tools and techniques in a Logistics Management course and a Supply
Chain Management (SCM) course, from 0 to 5, as defined below.
Please fill in the following blanks with best estimates about your own experience.
As you pursue these research interests, please rate the usefulness of the
following research methods, from 0 (not useful) to 5 (extremely useful).
Method Usefulness
Archival=Secondary Data 0 1 2 3 4 5
Case Study 0 1 2 3 4 5
Experiment 0 1 2 3 4 5
Focus Groups 0 1 2 3 4 5
Interview 0 1 2 3 4 5
Simulation=Modeling 0 1 2 3 4 5
Survey 0 1 2 3 4 5
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