Part A: Literature Review
Logistic systems and supply chains are continuously impacted by a multitude of internal and external variables. These variables include globalisation, shorter product life-cycles, technological advances, the development of electronic supply chains (ESC), increased communication, breakdowns of trade barriers, development of national economies and ever continuing efficiency improvements in transportation, manufacturing and communication (Gunaskeran, Patel & McGaughey 2004, Persson 1991). These factors can make creating and sustaining competitive advantage in supply chain management (SCM) a complicated and difficult task (Cavinato 1992, Persson 1991, Mehrjerdi 2009). A range of measures of supply chain competitiveness have been developed throughout SCM literature. Bhatangar & Sohal (2005, pg. 445) stated that there are “no stable set of measures that can be used for assessing the performance of the supply chain” (Lee & Billington 1992, Gunaskeran et al 2004). The pair constructed a framework (see Appendix A) that categorises and combines many of the concepts developed in the literature surrounding the competitiveness of supply chains. Gunaskeran et al (2004) also developed a framework for measuring performance in terms of strategic, tactical and operational levels of supply chain activity (See Appendix B). Developments in the perceptions of SCM are moving from a basic, purely cost approach to one of value-adding and non-cost measures such as customer satisfaction, asset utilisation, quality, flexibility, time based performance, and innovation (Cavinato 1992). Furthermore, what was once inter-functional total cost is now being considered to some as inter-firm total cost, and is seen as an area of opportunity in the quest for competitiveness in value-added management (Cavinato 1992). Cavinato (1992) suggests a more holistic total cost model that