Internal and external integration : strategies for logistics competitiveness

Logistics management has transcended over the decades into a strategy for competitive advantage in organisational performance and supply chain efficiency. Most industries are recognising that substantial savings are available to companies that are able to coordinate and improve within their logistics operations. Organisations today face great challenges because the successful provision of many goods and services requires the effective integration of logistics activities across a lengthening supply chain and an increasing geographical separation. Furthermore, logistics integration philosophy involves both internal and external integration for a coordinated, unified process as well as relationships to respond flexibly, innovatively, and rapidly to shifting and splintering market demand. The key objective of this study was to investigate how logistics firms integrate their operations both internally and externally for competitiveness in the supply chain. The findings depicted the need for a holistic approach enabling organisational effectiveness and supply chain efficiencies.