CURRENT RESEARCH IN LOGISTICS AND SUPPLY CHAIN MANAGEMENT AT CORVINUS UNIVERSITY OF BUDAPEST

Attila Chikán – Andrea Gelei

Department of Logistics and Supply Chain Management

COMPETITIVENESS RESEARCH CENTRECORVINUS UNIVERSITY OF BUDAPEST

1995 - „In global competition” research program - „In global competition” research program

1999 – Foundation of research centre connected to Institute of 1999 – Foundation of research centre connected to Institute of Business Economics Business Economics Three surveys (1995, 1999, 2004), all over 1200 executives ofThree surveys (1995, 1999, 2004), all over 1200 executives of over 300 companiesover 300 companies A Hungarian and an English language book A Hungarian and an English language book Over a hundred papersOver a hundred papers About 20 PhD thesesAbout 20 PhD theses

2004 – New phase of research (III.)2004 – New phase of research (III.)

2004 - 2006 RESEARCH PROGRAM

Survey: 301 companies, 1204 executives Contents comparable with previous surveys More advanced methodology 30 interviews with top executives 46 research papers Summarizing publications in preparation

Current research questions

Time series analysis concerning logistics performance and operations in the last decade (sample: 36)

Detailed 2004 database analysis – Description of logistics performance and operation– Logistics capabilities– Supply chain management - Relation types

DEGREE OF PERFORMANCE IMPROVEMENTS (BOTH EXTERNAL AND INTERNAL) *

80%

90%

100%

110%

1996

1999

2004

*Compared with previous year – 100 % meaning unchanged

INTERNAL SATISFACTION WITH LOGISTICS IN LOGISTICS AND SCM *

0%

10%

20%

30%

40%

50%

60%

70%

1996

1999

2004

*In percent of respondents

THREE PERIODS OF LOGISTICS MANAGEMENT

1996 – End of transition period from planned to market economies –

improvements compared to planned economy 1999

– Realization of the important role logistics play in company success – stagnation

2004– Conscious steps in order to increase effectiveness and

efficiency of logistics operation

ANALYZING LOGISTICS CAPABILITIES

Theoretical basis - CLM research:– Positioning, integration, agility, performance measurement.

Methodology:– Creating indexes, which capture the different capabilities;– Cluster analysis based on capability indexes in order to

differentiate companies with high level and low level of logistics capabilities;

– Descriptive analysis of the two clusters - performance.

MEANS OF LOGISTICS CAPABILITY INDEXES IN CASE OF THE TWO CLUSTERS*

012345

Po

sitio

nin

g

Ag

ility

Inte

gra

tion

Per

form

ance

mea

sure

men

t

Companies withlow level oflogisticscapabilities

Companies withlogistics focus

* Differences in all cases were significant (>0,05)

INCREASE IN OVERALL COMPANY PERFORMANCE MEASURES*

2,5

2,6

2,7

2,8

2,9

3

3,1

3,2

3,3

3,4

Companies with lowlevel of logisticscapabilities

Companies withlogistics focus

* Not significant (>0, 05)

RELATION TYPES DIFFERENTIATED ALONG THE FOLLOWING DIMENSIONS

Length of cooperation; The level of coordination between the two

partners; The innovative nature of cooperation; Relationship specific investment made by the two

partners; Cluster analysis (valid cases 162) – three

significantly different clusters (>0,05)

THREE CLUSTERS OF RELATION TYPES

00,5

1

1,52

2,53

3,54

4,5

R S

Inve

stm

ents

by

cust

om

er

R S

Inve

stm

ent

by

the

com

pan

y

Co

ord

inat

ion

of

pla

nn

ing

syst

ems

Inn

ova

tio

nid

eas

fro

mcu

sto

mer

Rat

e o

f lo

ng

term

con

trac

ts in

sale

Dimensions

Val

ues First cluster

Second cluster

Third cluster

INTERPRETATION OF RESULTS

First cluster: transaction oriented relation (68 companies)

Second cluster: long term supplier contract relation (44 companies)

Third cluster: strategic partnership (50 companies)

CONCLUSIONS

1. Logistic and SCM management is improving

2. Companies focusing on logistics can be clearly identified, their performance is better

3. Better logistics performance does not lead to better overall company results

4. Companies in strategic partnership are in a cluster with distinct characteristics