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Logistics Coordination in Dyads: Some Theoretical Foundations for EDI-Induced Redesign

Organizations are redesigning business processes in order to cope with changing organizational environments. Some of these redesigns are enabled by improved information technology. In this article, the redesign of logistics processes in dyadical partnerships is central. By focusing on the operational coordination between partners in the dyad, elements of a theory of logistics coordination are presented. A definition of coordination is given, the cause of coordination is assessed, and the factors that influence coordination are given. Uncertainty is identified as the core concept that causes and is simultaneously affected by coordination. Two process characteristics, "Degree of Freedom" and "Action Variety," are introduced to examine the potential of electronic data interchange (EDI) to redesign logistics coordination. EDI is perceived as a means that supports and intensifies coordination.