the relationships among supply chain characteristics logistics and manufacturing strategies and performance

UMI Number: 3093649 Copyright 2003 by Gillyard, Angelisa Elisabeth All rights reserved. ________________________________________________________ UMI Microform 3093649 Copyright 2003 ProQuest Information and Learning Company. All rights reserved. This microform edition is protected against unauthorized copying under Title 17, United States Code. ____________________________________________________________ ProQuest Information and Learning Company 300 North Zeeb Road PO Box 1346 Ann Arbor, MI 48106-1346 Copyright by Angelisa Elisabeth Gillyard 2003 ii ABSTRACT Supply Chain Management (SCM) offers the possibility of increased customer service while minimizing costs. Before choosing what type of supply chain strategy to pursue, a firm must first evaluate the type of supply chain(s) in which it participates. The type of functional strategies chosen should complement the type of supply chain(s) in which the firm is a member. Certain manufacturing and logistics strategies are more appropriate given the characteristics of the supply chain. This thesis explores the relationships among supply chain characteristics, logistics and manufacturing strategies, and firm performance. In addition, this study proposes an alternative logistics strategy framework using the competitive priorities of cost, quality, delivery and flexibility. Multivariate analysis of variance (MANOVA) was used to test the hypotheses. Results indicate limited support for the notion that successful firms participating in agile supply chains choose to emphasize different logistics and manufacturing strategies than less successful firms in agile supply chains. The same holds true for firms participating in lean supply chains. Results from the logistics strategy factor analysis demonstrated that the proposed framework is not only a feasible one, but one that is effective at describing the logistics strategy. iii Dedicated to my Mother and Father iv ACKNOWLEDGMENTS First and foremost, I would like to thank God for giving me the strength and courage to pursue this degree and to see it to completion. I thank my adviser, Martha Cooper, for her continued support and mentorship throughout my matriculation in the doctoral program. Her encouragement has been invaluable throughout this entire process. I am grateful to my committee, Glenn Milligan and John Current, for their continued support and cooperation. Their comments and suggestions have contributed much to the improvement of this document. I also wish to thank my family. Without their constant and unconditional love, support and encouragement, I would not be who and where I am today. Thanks are also extended to the other doctoral students who were by my side throughout this journey. Their intellectual discussions and words of encouragement made the doctoral program more enjoyable. This research was supported in part by a grant from The Ohio State University’s Alumni Grants for Graduate Research and Scholarship and the GE Faculty for the Future Fellowship. v VITA September 13, 1974 ………………………………Born - Atlanta, GA 1996 ………………………………………………B.S. Mathematics, Spelman College 1998 ………………………………………………M.S. Management, Georgia Institute of Technology 2002 ………………………………………………M.A. Business Administration, The Ohio State University 1998-2002 ……………………………………… Graduate Teaching and Research Associate, The Ohio State University PUBLICATIONS "Career Patterns of Women in Logistics: Emphasis on Mentoring," Martha C. Cooper, Cuneyt Eroglu, Angelisa Gillyard, Priyatabh P. Sharma, Council of Logistics Management Conference Proceedings (CD-ROM), 2002. Cited in several trade publications, including Inventory Management Report, New York, New York: IOMA, December 1, 2002. "Career Patterns of Women in Logistics," Martha C. Cooper, Angelisa Gillyard, and Antuza Sandu, Council of Logistics Management Conference Proceedings, 2001. Cited in several trade publications, including Inventory Reduction Report, New York, New York: IOMA, December 2001, p. 10, and Managing Logistics, Issue 12-01, p.12. vi "Career Patterns of Women in Logistics," Martha C. Cooper and Angelisa Gillyard, Council of Logistics Management Conference Proceedings, 2000, pp.75-97. Cited in several trade publications, including Inventory Reduction Report, New York, New York: IOMA, December 2000, pp.3, 5. FIELDS OF STUDY Major Field: Business Administration Studies in Supply Chain Management Minor: Logistics Management vii TABLE OF CONTENTS Page Abstract ………………………………………………………………… ii Dedication ……………………………………………………………… iii Acknowledgments ……………………………………………………… iv Vita …………………………………………………………………… v List of Tables ………………………………………………………… ix List of Figures ………………………………………………………… xi Chapters: 1 Introduction …………………………………… 1 2 Literature Review …………………………… 10 Supply Chain Management …………………… 10 Hypotheses 1 – 4 ……………………… 19 Manufacturing Strategy ……………………… 21 Hypotheses 5 – 8 ……………………… 24 Logistics Strategy …………………….……… 25 Hypotheses 9 – 12 …………………… 30 The Model …………………………………… 34 Contributions ………………………………… 36 3 Methodology ………………………………… 38 Subjects ……………………………………… 38 Instrumentation ……………………….……… 39 Supply Chain Type……………………. 39 viii Manufacturing Strategy ……………… 40 Logistics Strategy …….……………… 43 Performance ………….……………… 45 Procedures …………………………………… 46 Data Analysis …………………………………. 46 4 Results ………………………………………… 51 Description of the Sample …………………… 51 Preliminary Analysis ………………………… 52 Logistics Strategy …….……………… 52 Manufacturing Strategy ……………… 57 Supply Chain Characteristics …………. 59 Review and Tests of the Hypotheses … 69 Summary of the Results ……….……. 77 5 Summary and Conclusions ……………………. 78 Conclusions Drawn from the Research ……… 78 Implications for Logistics and Supply Chain Theory ………………………………… 79 Implications for Logistics and Supply Chain Managers ……………………………… 80 Limitations of the Research …………………… 81 Suggestions for Future Research ……………… 82 Concluding Note ……………………………… 83 References ……………………………………………………………… 85 Appendices …………………………………………………………… 89 Appendix A Email Sent to Subjects ………………………… 90 Appendix B Instructions for Internet Survey ……………… 93 Appendix C Internet Version of Survey ……………………. 98 Appendix D Microsoft Word Version of Survey …………… 117 [...]... both the competitive and supply chain strategies have the same goal It refers to consistency between the customer priorities that competitive strategy is designed to satisfy and the supply chain capabilities that the supply chain strategy aims to build.” The above definition of strategic fit can be expanded to include the manufacturing and logistics strategies The logistics and manufacturing strategies. .. presented The framework parallels that of manufacturing strategy and encourages integrative research using the two strategies In addition, the framework will enable advanced understanding of logistics strategy and priorities Lastly, the relationships among the type of supply chain, logistics and manufacturing strategies and their relation to perceived performance can be empirically examined, thereby... require a responsive supply chain that maximizes speed and flexibility Any other combination of product type and supply chain type will result in inferior performance Akin to the efficient and responsive supply chains are the two supply chain archetypes that have evolved in the literature, the lean and the agile supply chain Naylor et al (1999) define agility as “using market knowledge and a virtual corporation... offered by SCM? One answer lies in choosing the appropriate supply chain strategy The appropriate supply chain strategy should match the corporate strategy in order to “fit” within the company In addition, the supply chain strategy should complement the logistics and manufacturing 1 strategies in order to achieve superior performance A dissonance among these strategies could lead to building conflicting... supply chain management as: The systemic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain, for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole.” Other definitions of supply chain management are offered... conceptually link the areas of interest in this study Figure 2 shows the hypothesized differences between supply chain types and their relative emphasis on two of the four competitive priorities for both logistics and manufacturing strategies For example, it is hypothesized that successful firms participating in lean supply chains will emphasize the cost priority in their manufacturing and logistics functions... chain type and the dynamic network can be likened to the agile or responsive supply chain type Mason-Jones et al (2000) also outline the market qualifiers and market winners for lean and agile supply chains Quality, cost and lead time are market qualifiers for the agile supply chain while service level is the market winner for the agile supply chain Quality, lead time, and service level are the market... qualifiers for the lean supply chain and cost is the market winner for the lean supply chain Christopher and Towill (2001) make the proposition that a company need not choose to be exclusively lean or exclusively agile in their supply chain operations Rather the demand pattern for the product should determine the strategy Firms may implement hybrid strategies in which lean methods are used for the higher... whose strategies are not consistent with supply chain type Improved performance should result from the three entities guiding the firm’s actions toward the same objectives and goals instead of toward conflicting goals Therefore, the following research questions are posed 1 Are there distinct supply chain types? 2 What characteristics contribute most to supply chain type determination? 4 3 Among the supply. .. chain, cost leadership manufacturing and logistics strategies are more appropriate Aimed at minimizing costs, the cost leadership strategies result in the same efficiency capabilities that are valued in a lean supply chain Firms exhibiting consistency among the logistics strategy, manufacturing strategy and the type of supply chain should experience higher levels of performance and competitive advantage . manufacturing and logistics strategies are more appropriate given the characteristics of the supply chain. This thesis explores the relationships among supply chain characteristics, logistics and manufacturing. the supply chain strategy aims to build.” The above definition of strategic fit can be expanded to include the manufacturing and logistics strategies. The logistics and manufacturing strategies. strategy and priorities. Lastly, the relationships among the type of supply chain, logistics and manufacturing strategies and their relation to perceived performance can be empirically examined, thereby