Publication:
Explaining the effectiveness of performance-based logistics: a quantitative examination

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Authors
Randall, Wesley S.
Nowicki, David R.
Hawkins, Timothy G.
Subjects
Logistics management
Leadership
Performance-based logistics
Investment climate
Sustainment
Outcome-based contracting
Post-production support
Logisitcs
Supportability
Advisors
Date of Issue
2011
Date
Publisher
Language
Abstract
Purpose – Performance-based logistics (PBL) strategies are providing governments and for-profit organizations with a contractual mechanism that reduces the life cycle costs of their systems. PBL accomplishes this by establishing contracts that focus on the delivery of performance not parts. PBL establishes a metric based governance structure where suppliers make more profit when they invest in logistics process improvements, or system redesign, that reduces total cost of ownership. While work has been done to outline an overall PBL theoretical framework, the underlying theory explaining the enablers that lead to organizational and team-level, team-goal alignment associated with the PBL governance structure requires testing. The purpose of this paper is to quantitatively test previously posited relationships between enablers of PBL and PBL effectiveness. An additional objective is to explore any differences in PBL effectiveness between different business sectors.
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Article
Description
The article of record as published may be located at http://dx.doi.org/10.1108/09574091111181354
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Sponsors
This material is based upon work supported by the Naval Postgraduate School Acquisition Research Program under Grant No. N00244-10-1-0074.
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Format
Citation
The International Journal of Logistics Management, Vol. 22 No. 3, 2011
Distribution Statement
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This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.
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