Organizational approaches to managing international sourcingLarry C. Giunipero; Robert M. Monczka
1997 International Journal of Physical Distribution & Logistics Management
doi: 10.1108/09600039710175903
Discusses analysis of the organizational structures utilized to conduct international purchasing activities which was undertaken at 24 multinational corporations. The majority of the corporations studied had decentral‐ ized purchasing organizations and all had corporate purchasing staffs. Four basic approaches were found: (1) totally decentralized; (2) co‐ordinated; (3) totally centralized; and (4) separate international purchasing group. Within this overall framework there were several forms of staff assistance for helping operating units effectively to accomplish their international purchasing goals. This assistance included foreign buying offices, trading companies, and international staff specialists. There was also a common philosophy which indicated the necessity of worldwide sourcing.
Boundary‐spanning interfaces between logistics, production, marketing and new product developmentEdward A. Morash; Cornelia Dröge; Shawnee Vickery
1997 International Journal of Physical Distribution & Logistics Management
doi: 10.1108/09600039710175921
Investigates performance relationships for interfunctional process integration and specific logistics interface capabilities. The results indicate that competitive advantage is more likely to emanate from interfunctional process integration than individual function (sub) optimization. Also identifies logistics’ unique role as a boundary‐spanning interface between marketing, production, and new product development, as a potential source of competitive advantage. In terms of overall business performance, logistics followed by new product development are shown to have the greatest impact on profitability and growth. Further, logistics interface capabilities of customer service and logistics quality have the greatest independent impacts on business performance. In total these results imply that logistics, new product development, and demand‐management capabilities may provide firms with that extra competitive edge which shows up in “bottom line” performance. States that the relatively neglected areas of logistics boundary spanning and production customer service also deserve attention.