LYNCH KELLERAND OZMENT TABLE I ITEMS AND CONSTRUCTS alue-Added Service Capabilities(87) PC II Pt es that add value for the customer during the actual sales process PC 12 C ely a PC 14 mer service requests PC 15 new product/service introductions (roll-outs to market PC 23 Continuously add new products or varations Process Capabilities( 90) PC Attain the lowest total cost logistIcs by efficient operations, technology, or scale economes PC 7 Pr tively seek solutions to logistics problems before they occur PC 21 Perform reverse logistics operations in a timely manner PC 22 Difterentiate logistical servIce offerings trom those of compe PC 30 Develop creative logistical solutions for specific situations encles, or customers PC 31 Simplify the overall logistical process PC 32 Provide a consistent approach to performing key logistics work Strategy(83 CS 12 Emphasize efficiency CS 13 Redesign products and/or services to reduce costs CS 19 Keep all costs as low as possible so we can offer lower prices Differentiation Strategy ( 92) CS I Develop new products and/or services CS 3 Offer products and/or es for specialized needs CS4 Offer higher quality products han competitors S6 Offer highly differentiated products and/or CS7 Offer a high degree of value in products and/or services CS 8 Ofler products/scrvices with distinctly different teatures from those of competitors Performance( 95 CP3 Net profit margIn CP 7 I competitive position CP5 Return on assets(ROA) CP8 CP6 Return on investment(ROl Note The Cronbach's alpha for the scale appears in parenthese The measures were split by the panel of experts to form the nital dimensions of distinctive logIs tics capabilities previously mentioned (I e, process capabilities and value-added service capabilities A factor analysis was performed on the managers responses to formalize the final factors The Item related to each construct is shown in Table I Five items survived the factor analysis to form the value added service capabilities construct, and 7 items were used to form the process capabilities construct Copyright G 2001. All rights reserved