Home / Current Issue / Paper 1713936
Logistics Efficiency as a Source of Competitive Advantage: Business Management Lessons from FMCG Supply Chains
Subject area: Science,Engineering and Technology · Area of research: FMCG Supply Chains
DOI: https://doi.org/10.64388/IREV8I11-1713936
Abstract
Logistics efficiency has traditionally been treated as an operational objective focused on cost reduction, speed, and service reliability. In fast-moving consumer goods (FMCG) markets, however, increasing demand volatility, margin pressure, and supply chain complexity have elevated logistics from a support function to a strategic determinant of competitive performance. This paper argues that logistics efficiency should be reconceptualized as a business management capability that directly shapes sustainable competitive advantage rather than as a narrow operational metric. Adopting a business management and consultancy-oriented perspective, the study examines how logistics decisions influence value creation across FMCG supply chains. It contends that firms focusing solely on operational optimization often fail to capture the strategic benefits of logistics efficiency, such as improved responsiveness, margin stability, and scalability. Instead, competitive advantage emerges when logistics efficiency is embedded within managerial decision-making, governance structures, and cross-functional coordination. The paper develops a conceptual framework that positions logistics efficiency at the intersection of sales strategy, operations design, and financial management. It highlights how managerial choices regarding service levels, network configuration, and flexibility shape enterprise outcomes under uncertainty. Rather than advocating universal efficiency benchmarks, the study emphasizes alignment between logistics capabilities and strategic intent. This research contributes to business management literature by shifting the analysis of logistics efficiency from operational performance to strategic management. It offers theoretical insights and practical implications for managers and consultants seeking to leverage FMCG supply chains as sources of long-term competitive advantage.
Keywords
Business Management, Logistics Efficiency, FMCG Supply Chains, Competitive Advantage, Strategic Integration
References
[1] Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
[2] Chopra, S., & Meindl, P. (2023). Supply chain management: Strategy, planning, and operation (8th ed.). Pearson Education.
[3] Christopher, M. (2016). Logistics & supply chain management (5th ed.). Pearson Education.
[4] Christopher, M., & Peck, H. (2004). Building the resilient supply chain. The International Journal of Logistics Management, 15(2), 1–14. https://doi.org/10.1108/09574090410700275
[5] Fisher, M. L. (1997). What is the right supply chain for your product? Harvard Business Review, 75(2), 105–116.
[6] Grant, R. M. (2016). Contemporary strategy analysis (9th ed.). Wiley.
[7] Gunasekaran, A., Patel, C., & McGaughey, R. E. (2004). A framework for supply chain performance measurement. International Journal of Production Economics, 87(3), 333–347. https://doi.org/10.1016/j.ijpe.2003.08.003
[8] Mentzer, J. T., Stank, T. P., & Esper, T. L. (2008). Supply chain management and its relationship to logistics, marketing, production, and operations management. Journal of Business Logistics, 29(1),31–46. https://doi.org/10.1002/j.2158-1592.2008.tb00067.x
[9] Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance. Free Press.
[10] Simons, R. (1995). Levers of control: How managers use innovative control systems to drive strategic renewal. Harvard Business School Press.
[11] Slack, N., Brandon-Jones, A., & Burgess, N. (2022). Operations management (10th ed.). Pearson Education.
[12] Stank, T. P., Keller, S. B., & Closs, D. J. (2001). Performance benefits of supply chain logistical integration. Transportation Journal, 41(2/3), 32–46.
[13] Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319–1350. https://doi.org/10.1002/smj.640
[14] Van Hoek, R. I., Harrison, A., & Christopher, M. (2001). Measuring agile capabilities in the supply chain. International Journal of Operations & Production Management, 21(1/2), 126–147. https://doi.org/10.1108/01443570110358495
How to cite this paper
@article{1713936,
author = {Eyup Doruk},
title = {Logistics Efficiency as a Source of Competitive Advantage: Business Management Lessons from FMCG Supply Chains},
journal = {Iconic Research And Engineering Journals},
year = {2025},
volume = {8},
number = {11},
pages = {2497-2504},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1713936.pdf},
abstract = {Logistics efficiency has traditionally been treated as an operational objective focused on cost reduction, speed, and service reliability. In fast-moving consumer goods (FMCG) markets, however, increasing demand volatility, margin pressure, and supply chain complexity have elevated logistics from a support function to a strategic determinant of competitive performance. This paper argues that logistics efficiency should be reconceptualized as a business management capability that directly shapes sustainable competitive advantage rather than as a narrow operational metric. Adopting a business management and consultancy-oriented perspective, the study examines how logistics decisions influence value creation across FMCG supply chains. It contends that firms focusing solely on operational optimization often fail to capture the strategic benefits of logistics efficiency, such as improved responsiveness, margin stability, and scalability. Instead, competitive advantage emerges when logistics efficiency is embedded within managerial decision-making, governance structures, and cross-functional coordination. The paper develops a conceptual framework that positions logistics efficiency at the intersection of sales strategy, operations design, and financial management. It highlights how managerial choices regarding service levels, network configuration, and flexibility shape enterprise outcomes under uncertainty. Rather than advocating universal efficiency benchmarks, the study emphasizes alignment between logistics capabilities and strategic intent. This research contributes to business management literature by shifting the analysis of logistics efficiency from operational performance to strategic management. It offers theoretical insights and practical implications for managers and consultants seeking to leverage FMCG supply chains as sources of long-term competitive advantage.},
keywords = {Business Management, Logistics Efficiency, FMCG Supply Chains, Competitive Advantage, Strategic Integration},
month = {May},
doi = {https://doi.org/10.64388/IREV8I11-1713936}
}