Logistics and supply chain network designs: incorporating competitive priorities and disruption risk management perspectives

In this paper, we conduct a systematic literature review to examine several logistics network designs and evaluate their performance with respect to cost, quality, delivery, flexibility, and resilience. We then use the results of the literature review to provide an assessment of the strengths and weaknesses of each logistics design for different operations strategies. Each network has its own strengths: a hub-and-spoke network has economies of scale to reduce delivery costs, and routing flexibility to mitigate the effects of disruptions; a cross-docking network provides lower inventory cost; and a pick-up and delivery network provides lower delivery time. We suggest considering a hybrid logistics model in situations where firms need to emphasize cost and resilience. Our findings show that logistics systems are traditionally designed to minimize cost. Organizations need to be aware of the trade-off among different competitive priorities if they intend to address multiple competitive priorities such as cost and service quality in their logistics system.