PERSPECTIVES ON THE EVOLUTION OF LOGISTICS THOUGHT

John L. Kent, Jr.

Southwest Missouri State University
and
Daniel J. Flint
University of Tennessee

Thought about logistics has evolved from a transportation focus based primarily on

agricultural economics to the view that it is a diverse and key component of business strat-

egy, differentiation, and link to customers. In order to explore the role researchers have

played in that evolution: this article distinguishes between thought and practice. For our

purposes. logistics thought is defined as the conceptual frameworks that underlie and drive

the discipline. These frameworks influence what researchers see as important and rele

vant. They also explain the assumptions inherent in the explanations and solutions

researchers put forth for logistics problems. At any period in the history of logistics, only

a few frameworks seem to have guided research. Some examples of dominant themes are

the functional perspective that lasted into the 1960s, the integrating and systems view of

the 1970s, the customer service focus during that same decade, and the integrated supply-

chain management framework of the 1980s and today. Yet, to simplify the evolution of

logistics in this way does not do justice to a discipline that has contributed significantly to

business success. Although several studies have documented major events and changes in

logistics practice, a complimentary, comprehensive delineation of conceptual develop

ment is not available.

The purpose of this article is to provide perspectives from a few prominent scholars

in the field on the conceptual evolution of logistics. Initially, a brief review highlights con-

cepts and milestone events in the logistics literature. Then, results from a field study of the

viewpoints of key logistics scholars are presented. Next, a framework is proposed for eras

of logistics thought. Finally, we discuss some conclusions as well as future opportunities

and trends.
LITERATURE REVIEW

Logistics, then known as physical distribution, first appeared in the academic litera-

ture in the early 1900s. Only a few articles discuss the history of logistics thought and/or

practice,' and at least two undergraduate textbooks include the subject in introductory sec-

tions. This section provides a chronological overview of the body of logistics knowledge

as in any academic discipline, it consists of writings in the form of journal articles, text-

books.conference proceedings, and topical reference books. Over time, definitions of a dis-

cipline are modified to reflect current thinking.

Table I lists selected works that represent key events in the evolution of logistics

knowledge. Included are early studies and textbooks as well as initial publication dates of

five prominent journals in the field.

Table 2 presents tive definitions for logistics that have evolved during the twentieth

century. These move from a focus on physical distribution within the marketing domain in

the early 1900s to the contemporary process orientation focused on conforming to cus-

tomer requirements.

Three aspects of the evolution of logistics thought emerge from the literature. The first

is the time frame. Logistics thought was first documented in the early 1900s and clearly

continues today. The second is the roots of logistics thought, which originated in early writ

ings about farm-to-market economics. The third is the distinction between the logistics

domain and the overall body of knowledge, which began in the 1960s. This domain is rep

resented by numerous academic journals dedicated to the advancement of logistics

thought. In the following sections prominent academies will offer their perspectives on

these developments.

FIELD STUDY METHODS

In order to examine the evolution of thought in logistics, we conducted in-depth inter-

views with seven leading scholars in the field. A potential list of 20 interviewees was gen-

erated in consultation with several prominent academics. The final convenience sample

was based on a subjective assessment of the potential weight of the information that was

expected. Although all 20 undoubtedly would have contributed extremely valuable infor-

mation and perspectives, resource constraints limited the interviews to seven

In exploratory qualitative reserach, a small sample size is common. The objective was

to sample ideas, not necessarily people. A few long, unstructured interviews can provide a

wealth of information. The authors encourage any feedback or additional ideas be sent to

them so that this framework can become even more comprehensive. The individuals inter-

viewed were: DJ. Bowersox, JJ Coyle, BJ La Londe. DM. Lambert, CJ Langley, J.T.

Mentzer, and J.R. Stock. Each has made significant contributions to the logisties discipline and
was more than willing to participate.

All interviews were audio-taped with the permission of the interviewee. Both authors

took part in each session, using an interview protocol guide that provided the topics to

address. Although questions focused on (1) the evolution of logistics, (2) key contributors

to logistics, and (3) expectations for the future, the respondents were allowed to discuss

freely the issues they felt were important. In accord with typical qualitative interview pro

tocol, the researchers only interrupted for clarification and to probe for deeper under

standing.

The interviews were transcribed verbatim and then analyzed independently by each

researcher for common themes. Themes were then reconciled, and a model was developed.

Due to this reconciliation, all interviewees may not completely agree with the eras as

described here. Concepts and issues raised by the interviewees were interpreted within

each transcript and then across interviews, which in turn enabled the distinct eras to

emerge.

Reproduced with permission of the copyright owner. Further reproduction prohibited without
permission.

The model and research findings reflect the themes from the seven interviews alone.

Although developed from the perspectives of these distinguished scholars in the field, the

model can be expanded and partially verified through additional interviews and more

deductive methods, such as surveys

deductive dedos,
RESEARCH FINDINGS: SIX ERAS

The themes that emerged from the interviews fall into six eras, starting from the turn

of the century and ending as a projection into the future. These eras and their defining

characteristics are presented in Figure 1 as a model of logistics thought evolution. The six

cras, based solely on the interviews, are (1) farm to market, (2) segmented functions, (3)

integrated functions, (4) customer focus, (5) logistics as a differentiator, and (6) behavior

and boundary spanning.

Although each era is described as a discrete and separate stage, the shift from one to

another is not dramatic. As in any evolutionary process, events in the macroenvironment

involving many dimensions of business and society drive changes. Such influential issues

as technology, shifting business needs, cross-fertilization of disciplines, new research find-

ings, and many others contribute to the evolutionary process. Any one issue independent-

ly may have only a subtle effect. Yet, in the real world they often occur simultaneously and

have dramatic consequences.

The evolution of logistics thought appears continuous, but upon reflection the process

appears to fall fairly cleanly into the eras described here. These distinctions also make it

easier to conceptualize the changes. The following sections discuss each era separately.

although some overlap is to be expected.

Era 1: Farm to Market

It is possible to view transportation and distribution as the main focus of marketing

beginning with the Middle Ages or even ancient times, but the respondents tended to start

with the turn of this century. At that time attention centered on transporting products from

the farm to the point of sale. Thus, until World War II, agricultural economics had a great

deal of influence. In fact, the discipline economics was the primary influence on both mara

keting and transportation at this early stage.

One interviewee stated: "I think as you look back in the early developments of busi-

ness business has always borrowed from other disciplines. The marketing discipline, for

example, management, etc. initially were taught by economists. Logistics was very much
economics oriented, borrowing from economics, geography, transportation economics, and

so forth." Another interviewee indicated that many of the issues important in the early

stages carried through to the early 1960s: "In the early years researchers and institu-

p/LOGISTIC

FIGURE 1

CHRONOLOGICAL MODEL OF THE EVOLUTION OF LOGISTICS THOUGHT

Major

Influence

Era 1: Farm to Market (1916 thru 1940)

Major Characteristics

• Farm to Market

• Transportation

• Steam Engine

Agricultural

Economics

Military

Era 2: Segmented Functions (1940 thru early 1960s)

Major Characteristics

Independent Functional Areas: in-bound

out-bound transportation,

wholesaling, inventory

• Physical Distribution

• Internal Combustion

Era 3: Integrated Functions (early 1960s thru early 1970s)

Major Characteristics

• Total Cost

• Systems Approach

• Integration of Logistics

Industrial

Economics
Era 4: Customer Focus (early 1970s thru mid-1980s)

Major Characteristics

• Customer Service

• Inventory Carrying

• Productivity

• Link Node

Management

Science

Information

Technology

Era 5: Logistics as a Differentiator (mid-1980s thru present)

Major Characteristics

• Integrated Supply

• Logistics Channel

• Logistics as a

. Globalization

• Reverse Logistics

• Environmental Logistics

Management

Strategy

Fra 6: Behavioral and Boundary Spanning (Future)

Major Characteristics

• Service Response Logistics

• Behavioral Aspects of Interim

Theory Development

Marketing

Social Sciences
tions... were pretty much deeply into the origin of transportation and regulation and

everything that went with it."

Era 2: Segmented Functions

The second era embraces two sectors: business and the military World War II marks

the beginning of this period, and the late 1950s mark its end. The military requirements of

troop and supply movement during the war apparently gave birth to transport engineering.

efficient physical distribution, and thocrematics. This branch of thought eventually led to

the engineering focus of logistics.

In the business sector, there is some gap between the end of Era 1 through World War

II. From 1945 until the late 1950s, however, business saw physical distribution as a subset

of marketing and viewed it from a functional perspective. Warehousing and wholesaling

were researched and compartmentalized. Inventory control, materials handling, and trans-

portation each came into its own. Within transportation, in-bound raw materials and out-

bound finished products were seen as separate functions.

This era was described aptly by one interviewee as defining the playing field. That is,

to look at efficient warehousing, and then efficient transportation, and then efficient inven-

tory management, and then understanding what customer service was. And so this stage]

was kind of defining what are the pieces of this puzzle of efficient material flow."

The primary focus was on the functions that comprise the distribution of goods.

Another interviewee remarked: "The fact that it was called distribution is very under-

standable considering the fact that what we were talking about at that point in time was

really out-bound of finished goods to customers." Yet another stated in reference to the

various economic approaches addressing each function: "The functional approach was

which functions ought to be done by wholesalers as opposed to retailers. There was the

institutional approach, 'the role of the wholesaler is this, and the product flow process.

which is trying to trace different types of channels. Up until 1960, I think wholesaling.

warehousing, and transportation, all those things were seen as different functions within a

company."

Era 3: Integrated Functions

In Era 3 began the integration of functional areas. One interviewce called this phase

"linking them together." Beginning in the early 1960s, the total cost concept was explored,

a systems approach was sought, and the term "integrated logistics" was used in the busi-

ness sense. There was a shift from physical distribution as the main focus of logistics to an

entire system of activities working with and relying on one another. Industrial economics

appears to have had a good deal of influence on the developing concepts.

When the total cost or systems approach was applied to the analysis of the firm, a log-

ical combining of the previously separate logistics functions began to evolve. Business

logistics came into its own. The consolidation of management for both in-bound and out-

bound transportation, warehousing, inventory control, and materials handling began to

appear in both teaching and practice.

One interviewee commented that he was in on the initial stages of logistics: "Recall

back at the time that I got my degree, we were not concerned with logistics or supply

chains or anything else. We were basically concerned with getting finished products, fin-

ished goods, from the end of the production line out to the ultimate customer, and it was

really distribution." As the corner was turned to a new era, the timing was right for him to

be entering the field. "It was...good colleagues, and lots of interest, and lots of support

financially. There was a hotbed of interest."

This era was marked by a systems approach and total cost perspective. According to

one interviewee. "logistics had developed as an applied area, and work was done by peo-

ple in systems analysis...and cost trade-off analysis and what we were talking about in

logistics was a rationale for why it had to be broader than transportation." Another schol-

ar also referred to the total cost issue. His training had exposed him to a combination of

many disciplines, transportation and real estate and spatial economics, location theory on

one side and transportation theory on the other side. Then we had information and inven-

tory and service and other things that made it kind of a total cost field. So inventory, insti.

tutional economics, which included some agricultural economics, location theory, and

transportation theory came together as the disciplines related to the supply side: in mar.

keting it is the understanding that one size doesn't fit all. All that stuff came together in a

whirl into what we now call logistics."

As one interviewee indicated, the organization that facilitated much of the logsities
discipline's evolution the Council of Logistics Management (CLM) could have taken a

path far different from the one it chose "CLM could have become a lobbying organization

for regulation and deregulation. It didn It moved in the direction of eduction. They did a

lot of what had to be done at that time and did it well. They've been blessed with a set of

executives and directors who have made wise decisions and marshalled the necessary

resources. The coordination and cooperation of three forces--business professionals, edu-

cators, and CLM-was and continues to be key to the evolution of logistics thinking

Era 4: Customer Focus

In the early 1970s, another perspective emerged. The customer was regarded as the pri-

mary focus of the firm. Customer service, of which physical distribution is a component,

became a significant issue. In addition, inventory carrying costs. productivity and link node

concepts found their ways into logistics research and practice. Logistics itself became more

One scholar said that whereas Era 3 took an economic perspective to look at total

cost, his generation "went beyond that and started talking about the function as being not

to minimize cost but to maximize profits and start looking at logistics as a way to satisfy

the customer." Another interviewee indicated that the idea was to extend the work of the

previous era. The era that began around 1970 and extended to perhaps the mid-1980s

would be an era where we began to further the idea that these activities could be managed

together."

Era 5: Logistics as Differentiator

In the early 1980s, logistics started to be considered a key means of differentiation for

the firm. This era continues through the present. Logistics is viewed as a critical compo-

nent in the strategy of the firm. The concepts emerging are integrated supply-chain man-

agement, logistics channel management interorganizational efficiency, environmental

logistics, reverse logistics, and a heightened awareness of globalization. Information tech-

nology as well as strategy concepts have had a significant influence.

"From 1985 to where we are today," explained one interviewee. "I look at as an era
where the big push was to legitimize the integrated logistics management process.

Logistics was not merely a function that consisted of a set of processes tied in with key

business processes. This era focuses on even more integration than the previous one. The

problem is "how do we link together the whole supply chain and create value for the con-

sumer and be competitive in world markets."

The leverage that can be obtained by differentiating on logistics partially stems from

the difficulty competitors have in copying logistics systems. As one interviewee remarked.

"you can't just up and buy a piece of it and take it home and figure out how they're mak.

ing it work. As a competitor you have to kind of guess at what they are doing." The logis-

tics aspect of marketing to customers is unique from the many easily duplicated aspects.

Era 6: Behavioral and Boundary Spanning

We can only speculate on the future, hut clues can be found in recent research and

the heightened interest and certain issues, some of which have been around for a number of

years. Most likely there will be a search for a deeper understanding of behavioral issues

Specifically customer perceptions of a firm's logistics systems and their related behaviors,

Much of this work will build on marketing and hehavioral research. One interviewee stat-

ed: "I think you are going to see a lot of people who are coming out that have had con-

sumer behavior that have had behavioral training and methodological training Historically

we talk about the customer in un operational sense We are naive in looking at the behav

joral reaction of the customer."

Another avenue involves multiple channels. The future direction is probably toward

integrated supply-chain management," one interviewee explained, adding that the key dif-

ference from integrated logistics management is that you are looking at logistics process-

es as extended across total supply chains."

A richer focus on interfunctional cooperation and coordination also should emerge.

This will require greater involvement with many functional areas. One interviewee stated:

**Probably what's going to turn out to be winners and losers as the logistics discipline devel-

ops is how willing and able we are to be cross-functional." As the boundaries partially dis-

appear, an absolute need for understanding all components of the supply chain is inevitable.
For this reason, boundary spanning agents will be extremely valuable, as will those firms

that can integrate most of the functions within the supply chain in order to create a peak

experience for the customer. Service response logistics also should increase in importance

as work continues on blending services and logistics as a means of differentiation.

Another future focus is likely to be theory building. Logistics has done an outstand-

ing job of developing specific solutions for specific problems. There still exists a need for

solid theory based on sound empirical examination of construct relationships over multi-

ple industries and situations. The knowledge generated thus far must be combined into

useful models using sound and nigorous scientific methods."

Finally, there is a great opportunity to bring marketing, engineering, operations man

agement, and logistics closer together. This includes examining the lessons the military has

learned and incorporating them into business.

Despite the influence of various disciplines on future logistics thought it was very evi

dent from al interviewees that logistics researchers are unique in their relationship with

practitioners. None of them want to lose that special relationship. An interviewee put it this

way: "One thing that has kept me involved devoted my entire life to it logistics) is the

Tact that we do not have the gap which is se prevalent in almost every other discipline

between practitioners and scholars This field from the very beginning and the Council of

Logistics Management has lemphasized togetherness, which is almost unprecedented

Logistics Management

con

The schools that link Marketing and Logistics are Ohio State University, Michigan

State University and the University of Tennessee. These programs show a marked influ-

ence of the customer perspective, customer service, relationship management, and the

emergence of behavioral issues.

Operations Management/Logistics

Another focus is on linking operations management and logistics. Indiana University

and Case Western Reserve are examples. The perspectives of operations and system opti-

mization influence teaching and research.

Engineering. Mathematical Modeling/Logistics

Much military combines engineering and logistics. Typical schools are Georgia

Institute of Technology. Northwestern, Massachusetts Institute of Technology, and Virginia

Polytechnic Institute and State University

Stand-alone Business Logistics

The fourth approach is to make logisties a separate department, as is the case at

Pennsylvania State University

The Effects

These approaches change constantly and the above descriptions are a snapshot at one

moment Logistics programs are still in the stage at which a key individual can signiti

cantly influence the structure, content, and culture of the program to which she belones

Historically, scholars with that kind of influence have also had a significant effect on logis

tics thought in general. A primary avenue is through research and dissemination of the

results. This often takes the form of journal articles and presentations. Especially in earli-

er years, textbooks have been another influential form.

Another means is undergraduate, MBA, and doctoral programs at universities. In this

way, logistics concepts are examined, absorbed, and eventually incorporated into person-

al philosophies and research. Influential Scholars either have moved from one institution

to another, creating and building programs at each, or have remained with a program for

a long time and steadily strengthened it by attracting other scholars and students.

Essentially, scholars have guided, instigated, and reflected the evolution of logistics

thinking in these many ways. Each has played a part and will continue to do so.

CONCLUSION

This study outlines the evolution of logistics thought based on the writings and com-

ments of experts in the field. The future holds several opportunities. One is to develop a

logistics family tree of scholars who have had significant influence. This tree, in the form

of a database should highlight contributions from the mid-1950s onward. It then could be

used to broaden the sample of research reported here by gathering insights from several

hundred logistics scholars.

Another area of study would be to examine the influences on logistics theory that

have come from other disciplines, including engineering, operations management, eco-

nomics, and international management. Similarly, an interesting investigation would be to

explore the ways logistics concepts have been applied in other disciplines. It is also quite

evident that sometimes scholarly research in logistics leads practice, and sometimes the

reverse is true. Research should identify instances of each.

Although analyses of events and research programs can aid in recognizing significant

trends in logistics thought this article has demonstrated that straightforward discussions

with key individuals in the field can be valuable. In their view, logistics has come a long

way since the turn of the century and is now a key source of strategic advantage for many

firms. As one scholar put it: "I think what logistics has done is encourage the business firin

to understand the importance of material flow integration and how that's linked to value

creation as part of the firm's objective."

Through the influence of many disciplines and global activities, logistics thinking has

passed through six relatively distinct eras to become a complex and rich area of investiga-

tion. The discipline is constantly changing. One interviewee remarked that the field

explodes so fast you have to rewrite, you don't revise, books." Another sees a bright future

for research: We need a "careful understanding of the discipline of logistics in the build-

ing of theoretical substance so that we see relationships and manage on a more universal

as opposed to an industry-specific, basis. As we move to the future, the judgment is going

to become what do we do to make it a better world...and we are at that point." These are

powerful times for logistics. The rapidly accelerating field is wide open, exciting, and inviting to
any scholar whose fires are fueled by the potential