The purpose of this paper is to exp

The purpose of this paper is to explore how sustainable competitive advantage is generated in two Swedish best practice companies that successfully exploit logistics as a source for competitive advantage. Using a theoretical framework based on the resource-based view of the firm, this research elaborates on the links between operational and dynamic logistics capabilities and sustainable competitive advantage. The findings conclude that a sustainable competitive advantage is based on a combination of efficient and effective logistics operations and well-functioning, adjusted, in-house-developed IT systems. This operational capability is in turn sustained through five dynamic capabilities: managerial knowledge and presence, cross-functional teamwork, control, learning and supply chain relationships.