Contemporary Approaches of International Business Management, Economics, and Social Research

Transcription

1 Prof. Dr. Josef Neuert (Hrsg.) Contemporary Approaches of International Business Management, Economics, and Social Research Prof. Dr. Josef Neuert (Hrsg.) Volume 1 Institut für Managementforschung und Organisationsentwicklung DIPLOMA Hochschule Europäisches Hochschul-Consortium Institute for Management Research and Organizational Development DIPLOMA University European Universities Consortium

2 Preface of the Editor The research papers published in this reader were presented to an audience of academicians and practitioners at several international business research conferences. All of the submitted articles and presentations abstracts were subject to a review by the Editorial Board of the conference, comprised of the following persons: Prof. Dr. Josef Neuert (Fulda University, Germany), Prof. (em.) Dr. Johann Lachhammer (Augsburg University, Germany), Prof. Dr. habil. Klaus Kellner (Augsburg University, Germany), Prof. Dr. Baiba Savrina, Prof. Dr. Erika Sumilo and Prof. Dr. Maris Purgailis (all ). The Editorial Board also reviewed and approved the submitted full papers for publication in this reader. This reader intends to sustainably stimulate the discussion concerning recent developments in Business Management Research among scholars and practitioners. Each and every feedback, also and particularly from doctoral students, is most welcome. Prof. Dr. Josef Neuert Fulda, August 2014 Chairman, Editorial Board Editorial Board: Prof. Dr. Josef Neuert (Chairman, Editorial Board) Fulda University, Germany Prof. Guenther Kress, PhD California State University San Bernardino,USA Prof. Dr. Baiba Savrina Prof. Dr. Erika Sumilo Prof. Dr. Maris Purgailis Prof. (em.) Dr. Johann Lachhammer Augsburg University, Germany Prof. Dr. habil. Klaus Kellner Augsburg University, Germany Impressum: Copyright: 2014 Prof. Dr. Josef Neuert Verlag: epubli GmbH, Berlin, ISBN:

3 Manuel Woschank The Importance of Knowledge Management in Logistics Processes: Theoretical Framework and Preliminary Model Development The Importance of Knowledge Management in Logistics Processes: Theoretical Framework and Preliminary Model Development Manuel Woschank Abstract During the last decades of research, knowledge management (KM) has been heavily discussed in management research. Knowledge management strategies seem to be able to provide useful benefits for practical and scientific issues. Especially the field of logistics management provides several opportunities to increase the overall efficiency of a manufacturing enterprise by using knowledge management practices. Therefore, this paper develops a theoretical framework and a preliminary model to enhance the logistics process performance by using the knowledge based view on logistics processes. The results could be used for further empirical studies to investigate the role of knowledge management in logistics processes. Furthermore, the findings could be applied in a practical environment for optimizing logistics processes which will significantly contribute to a long-term protection of the company s position in the competitive environment. Keywords: Knowledge Management in Logistics Management, Knowledge Maturity, Logistics Performance Management Introduction and Problem Scenario Increasing globalization has not only created new markets for today's working world but has also produced new, ever more capable competitors which turn in as rapidly increased competitive pressure (Schlüchtermann/Tebroke, 2004). This is intensified by the scarcity of global resources (Wannenwetsch, 2007) (in this case scarcity is defined as getting the right resources in the right quality, quantity and costs at the right time to the right place) and the dynamics of capital markets. Furthermore, global markets keep on developing from seller- to buyer markets and form the focus of product orientation to service orientation. Customers are becoming even more demanding and asking for higher quality at lower costs (Salomo et al., 2008). This increased market pressure forces companies to higher their customer orientation by using individualization strategies (e.g. mass customization). As a result of these strategies customize products and processes can be useful in order to achieve a higher competitive advantage, but they also lead to a higher complexity (Schuh, 2005; Franke, 2002; Bick, 2008; Blaho, 2001) and higher costs for all internal and external processes. Especially in the field of logistics management there are several possibilities to increase the overall efficiency of a modern manufacturing enterprise. Logistics solutions have a large potential and should not be limited to basic functions such as transport, transition and storage, because in today s economy the logistics performance of a company can be a decisive competitive factor and one of the major differentiating features. In fact, classic concepts of material flow optimization (e.g. optimization of interfaces, parallelization, synchronization, stabilization of processes) are already starting to reach their boundaries (Engelhardt- Nowitzki/Oberhofer, 2006), which leads to the cognizance that managers and researchers will have to find new methods to optimize their internal and external processes. Therefore, modern approaches of material flow optimization and inventory management improvement concentrate on expanding the view of optimization strategies from intercompany perspective to the entire supply chain, because in the near future the increasing global competition will force organizations to compete supply chain vs. supply chain instead of company vs. company (Ketchen/Hult, 2007). These concepts are forced by the following facts: All internal material flow concepts could only reach a restricted degree of leverage on the overall lead time. No matter how optimized the internal processes are, there will always be a high dependency on the integrated suppliers. 154

4 Manuel Woschank The Importance of Knowledge Management in Logistics Processes: Theoretical Framework and Preliminary Model Development When it comes to the point of handling complex systems with nonlinear dependencies and multi-factorial dynamism, internal material flow control concepts could only be a part of the solution. A total control is not possible and so it will be necessary to plan safety stocks to assure the costumer-promised service level. The data of an enterprise resource planning system could never be a hundred percent correct, so there always will appear errors caused by wrong or missing information. The complexity of value adding processes is permanently on the increase, leading to a specialization and a strong division of labour within companies. As a result an ever-increasing number of employees and different departments are involved in complex processes. This leads to a high number of complex interfaces which could create barriers for logistics management. The expended view on the entire supply chain causes a higher number of complex processes and interfaces. For an efficient management system additional data, information and better knowledge is needed within the coordination processes. In this context, the enormous significance of knowledge management and overall inventory optimization becomes apparent. Companies have to strengthen the position of knowledge management as a critical competitive factor. Knowledge as a production factor continues to be the initial position for a continuous improvement of all processes and for sturctured organizational learning. In today's global environment, companies can only be competitive if they manage their knowledge as diligently as their use of material, machines and equipment (Willke, 2007).The following observations exacerbate the handling of information: 1) The half-value period of knowledge continues to decrease. The life cycles of technology are becoming shorter in such way that a clear acceleration of an expiration of knowledge becomes apparent (Prange, 2002). 2) In practice, however, the borders of applicability of existing knowledge and tested bestpractise solutions will soon be reached. The scarcity of resources in companies and the innate limit of human information processing abilities mean that companies cannot be limited only to internal resources; Additional external sources of knowledge are also required. (Augustin, 1990). 3) However, not merely the aggregation of knowledge but its flexible availability and application are most important. Since not all data is proper information for everyone in the company, it is important for the right data to be available in the right place, at the right time and in the right quality. (Augustin, 1990). Knowledge Management in Logistics Processes The problem of managing complex knowledge in a production system is only partly solved (Ketchen/Hult, 2007). A better understanding of all integrated logistic processes could be the key to success when it comes to achieve a better logistics process performance or reduce the logistics costs (Tempelmeier, 2006). Most of the recent concepts are just focusing on a better handling of material data or recommend a higher grade of cooperation along supply chains but there still is a high need for new overall knowledge optimization and integration methods because missing information and incorrect knowledge can reduce the performance of the entire company. The main target is finding out in which processes a better and systematic knowledge management is needed to improve the logistics performance (e.g. better processes, lower lead times and lower process costs). A better logistics process performance will lead to a positive impact on the overall company performance (lower process costs or lower capital costs) (Engelhardt-Nowitzki/Oberhofer, 2006). In order to create a model to identify the importance of knowledge management in logistics processes we have developed a process, which is displayed in figure

5 Contribution: The Importance of Knowledge Management in Logistics Processes: Theoretical Framework and Preliminary Model Development Online: Economics/dp/ /ref=sr_1_1?ie=UTF8&qid= &sr=8-1&keywords=josef+neuert For further information please contact: Manuel Woschank, M.Sc. manuel.woschank