Logistics in Korea: current state and future directions

Abstract

Presents the results of an empirical investigation into the current state of logistics in Korea. Discusses the status of logistics within an organization, organizational characteristics, responsiveness of logistics, outsourcing and partnership, improvement action, customer service, technology adoption and use, and cost effectiveness. Notes the following promising developments. First, the interest of top executives in logistics is considerable. Second, some of the major logistical cost components, particularly transportation and warehousing costs, are well controlled. Third, heavy investments have been made in technology, particularly among large firms. However, there are some problems yet to be solved. The major problem is the lack of appreciation of the integrative logistics concept. Another is that the present goal of logistics is limited to only cost reduction, disregarding logistics contribution to service improvements. Finally, the level of partnership with suppliers and distributors is low. Concludes that, in the future, Korean companies need to place more emphasis on customer service, develop strategic partnership, and further integrate their supply chain.

Citation

Kim, J. (1996), "Logistics in Korea: current state and future directions", International Journal of Physical Distribution & Logistics Management, Vol. 26 No. 10, pp. 6-21. https://doi.org/10.1108/09600039610150424