Salesperson logistics expertise: A proposed contingency framework

Journal of Business Logistics, 2000 by Garver, Michael S, Mentzer, John T

To leverage logistics as a competitive weapon, world-class companies are continuing to adopt a process management orientation.' They are tearing down functional silos and replacing them with well-defined processes and systems. As companies continue to move in this direction, the interface between logistics and other functional areas becomes critical.2 Given various trends in logistics, the logistics-sales interface is becoming increasingly important.

In the field of logistics, many important changes are taking place. For example, researchers are exploring buyer-seller relationships.' Both researchers and practitioners are becoming increasingly concerned with the nature of these relationships, how to influence them, and the important outcomes of such relationships.' Supply chain management is being widely accepted and implemented by practitioners and is receiving much research attention.' There is a focus on supply chain activities, roles, and partnerships 6 Furthermore, logistics is becoming more externally oriented, examining customer requirements, segmenting customers accordingly, and measuring logistics performance from an external (customer) perspective.' Given these trends, the logistics-sales interface is increasingly important. ,

Exploring buyer-seller relationships is a research priority in the fields of both logistics and marketing.a In logistics, strong buyer-seller relationships are critical in implementing supply chain management. From a marketing perspective, good customer relationships are thought to be a strong predictor of improved profits, market share, and competitive advantage. As a result, the nature of buyerseller relationships and how to influence them positively have gained the interest of both researchers and practitioners.9

Logistics services are becoming more important to the formation, development, and maintenance of buyer-seller relationships.In many cases, these services are the foundation upon which customer relationships are built and maintained. For example, many just-in-time partnerships are based on past logistics performance and the logistics capabilities of the selling firm." Logistics is a key service component that creates and delivers value to the customer, which in turn influences the buyer-seller relationship.12

At the same time, the role of the contemporary salesperson is changing dramatically." Traditionally viewed primarily as a communication tool and a means to obtain initial orders, the salesperson today is perceived as a relationship manager, primarily responsible for establishing, developing, and maintaining customer relationships.' This is not to say that the buyer-salesperson relationship is the only contact between organizations. Often, relationships exist at many different levels and across many different positions. In some situations, however, the salesperson is the primary contact point, responsible for managing customer relationships before, during, and after the initial order." In many industries, firms are differentiating themselves based on logistics, and the salesperson may be using logistics services as a tool to gain new business and retain customers. Furthermore, customer evaluations of salespeople often coincide with the customer's overall evaluation of the firm.'6 Although the sales department is not responsible for logistics, salespeople often are responsible for managing the customer relationship, which often centers on logistics. As the role of sales increasingly shifts toward relationship management, the interface between sales and logistics becomes critical.

The interface between logistics and sales is crucial to effective supply chain management." Research indicates that integrated behaviors, 11 shared information, 11 and cooperation" are essential. These are boundary spanning activities aimed at improving working relationships among supply chain partners. The contemporary sales force is a boundary spanning agent that engages in these activities daily. Similar to supply chain management research, the personal selling literature is focusing on these types of behaviors (problem solving, strategic planning, information sharing, and cooperation) and their effect on relational development.21

Among many leading-edge companies, logistics is used as a tool to maintain a competitive advantage. They continually focus externally, identifying customer requirements and monitoring logistics performance from the customer's perspective.zz In world-class logistics companies, managers are creating and delivering superior customer value and satisfaction through superior customer service. Sales can play an integral part in helping logistics become more externally focused. Effective salespeople have an in-depth knowledge of customers, their requirements, and their perceptions of the firm's relative performance. Salespeople can help bring the "voice of the customer" inside the organization.

The logistics-sales interface is particularly important when firms are trying to improve relational development, implement supply chain management, and become more customer focused. Yet, little research attention has been devoted to exploring this interface. The purpose of this article is to examine the logistics-sales interface and develop a theoretical framework of salesperson logistics expertise along with a proposed contingency framework. As suggested by Mentzer and Kahn, both the literature and qualitative research can be used to develop a theoretical framework grounded in reality." We explore the logistics-sales interface and the concept of salesperson logistics expertise by integrating the results of a qualitative study with findings from the appropriate literature. A theoretical framework will be developed within a contingency framework to identify specific situations in which it is important for the salesperson to possess logistics expertise.