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Logistics Learning Capability Model and Outsourcing Relationships

Question #1

Do you think that the model given for Logistics Learning Capability is sufficient enough to explain how a

company could handle its outsourced relationships?


Question #2

What are the four components of Logistic Learning Capability and how do they affect logistics based

sustainable competitive advantage?

Logistics Learning Capability Model and Outsourcing Relationships
Outsourcing relationships are one of the most used strategies by logistics
companies in order to gain a competitive advantage. The model for Logistics Learning
Capability helps companies to move some of its decision responsibilities and internal activities to
outside providers. This enhances company service delivery and productivity in its operations. I
believe Logistics Learning Capability Model is sufficient to enable business organizations to

outsource relations concerning material handling management, transportation management,
warehouse management, information management, and inventory management. This is because
Logistics Learning Capability Model helps in optimizing logistics value by decreasing the costs
of businesses and lead time as well as enhancing service flexibility, reliability, and
responsiveness (Kuo, Lin & Lu, 2017).

Logistics Learning Capabilities help companies to improve and achieve
substantial results in operational performance. Thus, an improvement in the delivery of services
resulting from an outsourced relationship contributes to competitive advantage. Therefore, I
believe Logistics Learning Capability Model applied in outsourcing services lead to enhanced
operational performance through customer satisfaction, decreased operating costs, timely
delivery of services to clients, increased productivity, and a faster response of demands from
customers, reduced lead time and improved profits as well as the use of modern technology in
offering logistic services (Laszlo & Zhexembayeva, 2017). The model for Logistics Learning
Capability is useful in providing outsourcing relationships when linked to financial performance,
integration capability and service performance that have a significant positive relationship.
Logistics Learning Capability Model helps in providing a positive relationship between financial
and service performance of an organization. Besides, logistics capabilities are essential for
superior company performance; nonetheless, companies must avoid logistics outsourcing if the
company predicts performance on competitive advantage because of strong internal logistic
competencies and capability. Therefore, I believe the Logistics Learning Capability Model is
essential in making decisions to outsource relationships in order to improve operational and
financial performance and to ensure efficient and effective overall supply chain coordination and
performance (Laszlo & Zhexembayeva, 2017).


Components of Logistic Learning Capability
Logistics capabilities are strategic resources that can be used by companies to
acquire sustainable competitive advantage as well as have significant effects on company and
logistics performance and competitiveness. Studies show that various logistics capabilities are
positively associated with a competitive advantage and financial performance. Logistics
capabilities include flexibility, the process, information and integration capabilities (Laszlo &
Zhexembayeva, 2017). These logistic capabilities have significant impacts on company
performance. Besides, logistics capabilities in the supply chain include intangible, tangible and
synthesized components. Logistic capabilities can affect competitive advantage because they can
significantly influence the performance and adoption of the 3PL or logistics outsourcing.
Logistic capabilities can influence operations of companies because they are applied differently
across boundaries, and different implementation strategies are used by companies such as
leveraging a third party’s expertise (Kuo, Lin & Lu, 2017).

Logistics capabilities impact a firm’s competitive advantage because they are
related to specialized skills, knowledge, and attributes within the company that helps in the
management of logistics activities (Kuo, Lin & Lu, 2017). Moreover, logistics capabilities
influence the operation methods of a firm in the market that can significantly impact its
competitive advantage. This is because logistics capabilities affect company strategies on its
performance as they are related to knowledge and skills that enable companies to make practical
use of their assets. Logistics capabilities affect competitive advantage because they support the
logistics functions of a company and how to be implemented or executed correctly. This allows
logistics companies to conceptualize strategies such as differentiation or cost leadership. Robust
logistics capabilities help e-commerce companies to create sustainable competitive advantages

and improve their overall performance. Thus, logistics capabilities affect sustainable competitive
advantage through operational and dynamic capabilities. Competitive advantages of companies
in the logistics sector are affected logistics’ structure, operational, dynamic and technology
capabilities. Thus, logistics capabilities affect the company’s performance as well as a
sustainable competitive advantage.



Kuo, S. Y., Lin, P. C., & Lu, C. S. (2017). The effects of dynamic capabilities, service
capabilities, competitive advantage, and organizational performance in container
shipping. Transportation Research Part A: Policy and Practice, 95, 356-371.
Laszlo, C., & Zhexembayeva, N. (2017). Embedded sustainability. In Embedded
Sustainability (pp. 116-140). Routledge.

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