Exploring the Role of Logistics in Enhancing Supply Chain Management Value

Abstract

This study investigates the critical role logistics plays in enhancing the overall value of supply chain management (SCM), with a focus on key logistics functions such as transportation, warehousing, order processing, and information flow. In the face of increasing global competition and evolving customer expectations, organisations are under pressure to deliver supply chain value in terms of cost efficiency, responsiveness, customer satisfaction, and sustainability. A mixed-methods approach was employed, involving the administration of structured questionnaires to 115 logistics and supply chain professionals, as well as semi-structured interviews with key industry stakeholders. Quantitative data were analysed using descriptive statistics, Pearson correlation, and regression analysis, while qualitative insights were examined through thematic content analysis.

Findings revealed that logistics performance has a strong and statistically significant positive correlation with SCM value (r = 0.742, p < 0.01). Transportation emerged as the most influential logistics function, followed by warehousing and order processing. While logistics contributes notably to cost efficiency and customer satisfaction, its impact on sustainability and innovation remains limited. Qualitative data highlighted key challenges, including poor infrastructure, limited technological adoption, and skill gaps in logistics operations. The study concludes that logistics is not only an operational necessity but also a strategic enabler of value in modern supply chains. It recommends targeted investments in logistics technology, infrastructure, and workforce development, alongside policy reforms to strengthen logistics ecosystems.