Organizational Logistics Support Systems Efficiency: Inventory Management System, Resource Commitment and Data Information System

摘要

Multinational companies engage in complex logistics support activities which, if not managed appropriately, undermine smooth transactions along the supply chain and culminate in low efficiencies and reduced business performance. Companies turn to logistical support from a third-party to reduce inventory costs across supply chain activities. Although the contribution of logistics support providers to the business world is acknowledged as increasing the performance efficiencies of the logistics support systems: inventory management system, resource commitment, and data information system, it continues to experience challenges in delivering positive business performance emanating from the inadequacy of integrated logistics management practices. The conceptual framework of the qualitative study supported the exploration of the logistics support systems' efficiencies and its relationships with theories of constraints, resource advantage, and information systems automation. The study described the factors contributing to the success or failure of logistics support provider in inventory cost reduction by exploring the primary research question, "How does the performance efficiency of third-party logistics support providers influence inventory cost reduction, as it relates to the organization's logistics support systems?" This research used interviews, focus group meeting and direct observations focusing on the organizational experiences of 20 shop floor representatives and factors that influence support provider's delivery of inventory cost reduction. The interviews and focus group meeting were recorded and transcripts analyzed to associate emerging themes pertinent to logistics support processes and research questions. Direct observations were recorded to identify emerging themes identified from data sources. The data analysis revealed themes relating to the administration, control, accountability, storage, human resource capability, data automation and cost of the support systems. The major findings revealed data information system as the most critical support system, extracted the essential issues of integration and cost efficiency. The study contributed to the literature by supporting logistics support management research over the past 20 years and extrapolating major trends in the literature of how the effectiveness of the logistics support systems contribute to the success of inventory cost reduction. The validation of evidence exhibited the efficiencies of logistics support systems and support provider's contributions to technological sustainability, economic viability, competitive advantage, and profit maximization.