An empirical study of logistics organization, electronic linkage, and performance

Successful participation in the global marketplace demands careful coordination and integration of a firm's logistics activities, which can be enhanced by electronic linkage. Electronic linkage is accomplished through electronic data interchange (EDI), the computer-to-computer exchange of standard business documentation in machine processable form. Previously cited benefits of EDI in domestic applications include increased data accuracy, reduced document preparation and handling costs, reduced inventory costs and higher inventory turnover rates, reduced lead times, better information management, more efficient utilization of transportation resources, and improved quality management.;Researchers have proposed an information technology (IT) implementation model for categorizing research into IT implementation. The present study adapts this IT implementation model for use in classifying a firm's progress in implementing EDI. Previous empirical research has also suggested a typology for classifying the logistics operations of firms based on their logistics productivity measurement and improvement programs. The present study also uses this logistics typology to classify a firm's logistics organization.;Through an empirical study of U.S. manufacturers, merchandisers, and distributors, this project examined the relationships among the degree of EDI implementation, stage of logistics organization, relative logistics and overall performance, and competitive advantage, as well as the effects of several management initiatives such as Just-In-Time and Total Quality Management on those relationships. Data collection was accomplished through pairs of self-administered mail questionnaires directed to logistics and EDI managers. Data were analyzed using t-tests and multiple and logistic regression.;In comparison to nonusers, EDI users reported better relative performance on measures relating to inventory management, cycle time, customer service, and overall logistics performance. The strongest associations were found between the dependent variables representing labor, cycle time, costs, customer service, and overall logistics performance, and the predictor variables representing the business unit's stage of logistics organization, percentage of business transactions supported by EDI, and percentages of customer and supplier bases supported by EDI.