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The Fugate Logistic Performance Model

Decent Essays

There are many challenges being faced by the logistics industry today as the companies strive for sustainability. This is because the providers of logistics services have, over a period of several years, found them being integrated into the production processes of their customers, while at the same time, governments and businesses have continued to carefully weigh the issue of logistics in their investment and business decisions. Some of the previous trends and the forces of the operations of logistics that drive the transformation of a Freight forwarding company will be examined. It will focus on theories, conceptual models and frameworks that explain logistic operations. The gaps in the logistics operations and the dangers of not addressing …show more content…

It emphasizes on differentiation of logistics operations, effectiveness and efficiency. Fugate analyzed the relationship between organizational performance and logistics performance and concluded that logistics performance is not only multidimensional but also a function of resources used in logistics in relation to outlined outcomes and objectives against other players’ in the industry or competitors. The authors concluded that the better the joint quality of planning, human resources logistics and customer feedback and satisfaction, the lower the levels of redundancy, waste, and inefficiency (Fugate, et al 2010.p8-22).

Logistic Performance Organizational Performance

Efficiency Effectiveness Differentiation
Figure 1: The table below summarizes the Fugate Logistic Performance Model

The basis of argument by the model above is that companies that combine effectiveness and efficiency achieve better performance than those competitors’ that choose only one of these dimensions.(Fugate et al., 2007 p.140-156).

The Aramyan Model
The other model is The Aramyan Approach. Aramyan et al (2007) developed a conceptual framework to analyze the performance of logistics in the agricultural and food supply

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