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Modelling capability factors of logistics industry based on ISM-MICMAC
Mohammad Kamrul Hasan1, Xunping Lei1, Arbia Hlali2
1School of Business Administration, Tongling University, Tongling, Anhui, 244061, China.
Recent disruptions highlight logistics vulnerabilities. This study identifies key logistics capability factors (LCFs) for improving performance, finding demand management interface (DMI) crucial, supported by information and technology.
Area of Science:
- Logistics and Supply Chain Management
- Operations Research
- Business Analytics
Background:
- Recent global events like pandemics and supply chain disruptions have exposed significant vulnerabilities in logistics operations.
- There is an increasing industry-wide focus on strengthening logistics capabilities to mitigate risks and improve overall performance.
- Prioritizing specific capability factors has become a strategic imperative for enhancing logistics effectiveness.
Purpose of the Study:
- To develop a structural model identifying key logistics capability factors (LCFs) that significantly influence logistics performance.
- To analyze the interrelationships and interdependencies among identified LCFs using advanced modeling techniques.
- To provide a framework for understanding and prioritizing LCFs for enhanced logistics operations.
Main Methods:
- Utilized expert-based interpretive structural modeling (ISM) to map the complex relationships between LCFs.
- Employed cross-impact matrix multiplication applied to classification (MICMAC) to analyze driving and dependency power of LCFs.
- Constructed a detailed ISM model and MICMAC diagram to categorize and prioritize LCFs.
Main Results:
- The demand management interface (DMI) within service capability emerged as the most pivotal factor for enhancing logistics capability.
- Information management and technological innovation capabilities were identified as other significant contributors to logistics performance.
- The study successfully categorized LCFs based on their influence and interdependence.
Conclusions:
- The findings underscore the critical role of the DMI in optimizing logistics capabilities and performance.
- Information management and technological innovation are essential supporting capabilities for robust logistics operations.
- The application of ISM-MICMAC provides valuable theoretical and managerial insights for supply chain leaders and operational managers seeking to improve logistics performance.
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