Networks and Logistics

The emergence of the ‘network organisation’ is a recent phenomenon that has given rise to much comment and analysis. These ‘virtual’ organisations are characterised by a confederation of specialist skills or capabilities provided by the network members. It is argued that such collaborative arrangements provide a more effective means of satisfying customer needs at a profit than do single forms of organisation undertaking multiple value-creating activities. The implications of the network organisation for marketing management are considerable and, in particular, the challenges to logistics management are profound. This paper seeks to examine the bases upon which the effectiveness of network organisations can be enhanced through integrated supply chain management.