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The strategic interplay between logistics and market development: and the influence of electronic commerce
Linköping University, Department of Management and Engineering, Logistics Management. Linköping University, The Institute of Technology.
2002 (English)Licentiate thesis, comprehensive summary (Other academic)
Abstract [en]

The overall purpose of this study is to describe and analyze how logistics and market development interplay. In order to do this the research topics are to analyze what the requirements on logistics are from a changing marketing strategy, as expansion or changed customer focus, and how logistics may support continued market development. This is particularly interesting when the business environment is changing. Within the research topics Internet-based electronic commerce is given attention, firstly as a marketing channel sensitive to business changes and secondly as an integrated part of marketing and logistics development. In all parts of the study, the choice of processes, structures and organizations of logistics have been in focus, here labelled logistics.

The study consists of three parts and a cover. The cover synthesizes and summarizes the parts - one case study and two journal papers. The case study is a study over time of a medium-sized Swedish distributor selling tools and machinery to Nordic industrial sectors and the Baltic States. The distributor has gone through a change in marketing strategy and implemented an electronic commerce portal, which makes it interesting to study. In the journal papers the research topics are further elaborated and analyzed. The first journal paper focuses on the requirements, and the second paper on the contributions created, even though they overlap. In both parts electronic commerce has been considered an important element. In-depth interviews have been performed in the main case study object but also in two other distributors concerning electronic commerce possibilities.

 The case study describes the development of the case considering changes in marketing, logistics and electronic commerce strategy. It shows how the case company goes through a strategic change that involves expansion, the use of electronic commerce and changed logistics processes, structures and organizations. In journal paper one the market channel possibilities are analyzed for the case and how these require changes in logistics. It is concluded that with an increased environmental insecurity the need of strategic flexibility increases in new marketing channels and as a consequence the need for a centralized logistics organization. In journal paper two is the electronic commerce support for market and logistics development analyzed for three different distributors. It is concluded that electronic commerce efforts need to start at an activity level, but constantly widen the scope. A stepwise approach is outlined that combines market repositioning and logistics refinement. Support for how electronic commerce contributes to market and logistics development is found.

This study supports previous research that claims that organizational integration between logistics and marketing is important. In a changing business environment organizational issues become the main focus in logistics. The need for centralized responsibility to tackle new and changing market requirements is outlined as essential in combination with a greater amount of internal collaboration through informal communication. In this study, the organization of logistics has been argued to have a decisive impact on the ability to find the best strategies that integrate logistics and marketing. Therefore organizational issues precede process and structural change. Electronic commerce and structural change become parts of a strategy to adapt to a continuously changing business.

Electronic commerce, logistics process, organizational and structural development contribute to marketing development in different ways by combining cost, service and flexibility in logistics. The stepwise approach signals that to come further with electronic commerce, different lines of action in logistics are needed, such as process streamlining to create better co-ordination and customer service or structural change to further expand the market. Accordingly, different logistics strategies are adaptable to different marketing strategies. However, a centralized logistics organization is argued to be a pre-requisite to become strategic flexible for new marketing strategies and being able to create the necessary interplay between marketing and logistics.

Place, publisher, year, edition, pages
Linköping: Linköpings universitet , 2002.
Series
Dissertations from the International Graduate School of Management and Industrial Engineering, ISSN 1402-0793 ; 62Linköping Studies in Science and Technology. Thesis, ISSN 0280-7971 ; 957
National Category
Social Sciences
Identifiers
URN: urn:nbn:se:liu:diva-34363Local ID: 21360ISBN: 91-7373-370-9 (print)OAI: oai:DiVA.org:liu-34363DiVA: diva2:255211
Available from: 2009-10-10 Created: 2009-10-10 Last updated: 2013-10-23
List of papers
1. The Luna Case within Bergman & Beving Tools: Changes in Logistics Management
Open this publication in new window or tab >>The Luna Case within Bergman & Beving Tools: Changes in Logistics Management
2002 (English)Report (Other academic)
Abstract [en]

Companies conducting business in multiple marketing channels need logistics and IT solutions that support their wide array of strategy and operations. Those, and other firms, do not solely rely on new concepts but also on continuously developing their businesses in the interaction between marketing and logistics. This case study will show on these aspects - how marketing and logistics may be integrated in such a channel environment by continuously developing the business as well as through new approaches in information technology - electronic commerce.

The Luna case Within Bergman & Beving Tools illustrates the development of a medium sized distributor from catalogue based firm to flow co-ordinator in a group constellation, a change from a single steady going to a multiple requirement demanding marketing channel. Luna is a transaction intensive distributor of tools and machinery equipment with long experience in logistics and information technology. The company is guarantor for assortment quality, fast and reliable logistics through sophisticated IT solutions as well as value added competence in its trade relations with dealers and end customers. Independent dealers and end customers are found in Nordic industrial, construction, engineering, administration and consumer sectors. Bergman & Beving Tools is parent company to seven distributors of which Luna is the largest.

To start with, this case describes the background development of the business in the fields of marketing, logistics and information technology until 1993. The second part between 1993 and 2001 describes how the marketing agenda has changed, how electronic commerce has been used to develop the business and changes in logistics, both on operational and strategic levels. As a whole the case describes changes in logistics management and how that has interacted with market development.

Publisher
53 p.
Series
IMIE Working Paper, ISSN 1403-4638 ; 2
National Category
Transport Systems and Logistics
Identifiers
urn:nbn:se:liu:diva-99897 (URN)
Available from: 2013-10-23 Created: 2013-10-23 Last updated: 2013-10-23
2. Electronic commerce, marketing channels and logistics platforms - a wholesaler perspective
Open this publication in new window or tab >>Electronic commerce, marketing channels and logistics platforms - a wholesaler perspective
2003 (English)In: European Journal of Operational Research, ISSN 0377-2217, E-ISSN 1872-6860, Vol. 144, no 2, 270-279 p.Article in journal (Refereed) Published
Abstract [en]

Electronic commerce may impose new demands which the supply chain has to react to, while at the same time being an enabler of effective marketing and logistics. This paper describes alternative strategies for wholesalers conducting electronic commerce and how logistics may support the development of marketing channels and improve flexibility. Related issues with logistics implications are the decisions whether or not to use multiple channels and if intermediaries should totally bypass dealers, or rather collaborate by letting them manage the marketing relations and bypass them logistically. The concept of “logistics platforms” is discussed, based on empirical findings. Empirically the base is a case study of an intermediary with extensive use of business-to-business electronic commerce in a supply chain with independent dealers. The paper compares theoretical aspects with findings from the case and gives some indications of the potential of electronic commerce and logistics platforms.

Keyword
Supply chain management, Marketing channels, Logistics platform, Electronic commerce, Flexibility
National Category
Engineering and Technology
Identifiers
urn:nbn:se:liu:diva-46748 (URN)10.1016/S0377-2217(02)00393-4 (DOI)000178990600005 ()
Available from: 2009-10-11 Created: 2009-10-11 Last updated: 2017-12-13
3. Business development with electronic commerce: refinement and repositioning
Open this publication in new window or tab >>Business development with electronic commerce: refinement and repositioning
2004 (English)In: Business Process Management Journal, ISSN 1463-7154, E-ISSN 1758-4116, Vol. 10, no 1, 44-62 p.Article in journal (Refereed) Published
Abstract [en]

Electronic commerce enables business development for marketing channel intermediaries and strengthens their existing operations and strategic management. This research shows that electronic commerce provides stepwise business development refinement and repositioning in the form of process change and increased customer service. Based on marketing and logistics literature, a business development model with three developmental phases is proposed in this paper. The findings are based on the electronic commerce development of three intermediaries providing industrial products and services in the northern European market. Refinement is achieved through a focus on activities for internal efficiency, and through changing processes for increased integration, shorter time and lower costs. Repositioning involves extended focus on service improvements, image and customer tailored services. It is found that electronic commerce has not radically reshaped and developed the role of marketing channel intermediaries. Instead, it has strengthened existing business. Future electronic commerce efforts need to be viewed in a business wide development context, including structural change and reaching new segments or markets, to utilise fully the development potential of electronic commerce.

Keyword
Electronic commerce, Marketing, Logistics, Business Development, Channel Flow, Scandinavia
National Category
Social Sciences
Identifiers
urn:nbn:se:liu:diva-22198 (URN)10.1108/14637150410518329 (DOI)1353 (Local ID)1353 (Archive number)1353 (OAI)
Available from: 2009-10-07 Created: 2009-10-07 Last updated: 2017-12-13

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