logistics organization

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Transportation/Logistic Strategy Logistics Organization wersox (1961) nnot Avoid Performing Logistical Functions nctional Areas Scattered Throughout the Firm oblem: Sub-optimization due to Functional Silos Budgetary Problems Poor Communication Responsibility without Authority

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Logistics Organization. Bowersox (1961) Cannot Avoid Performing Logistical Functions Functional Areas Scattered Throughout the Firm Problem: Sub-optimization due to Functional Silos Budgetary Problems Poor Communication Responsibility without Authority. President. VP Marketing. VP - PowerPoint PPT Presentation

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Page 1: Logistics Organization

Transportation/Logistic StrategyLogistics Organization

Bowersox (1961)

Cannot Avoid Performing Logistical Functions

Functional Areas Scattered Throughout the Firm

Problem: Sub-optimization due to Functional SilosBudgetary ProblemsPoor CommunicationResponsibility without Authority

Page 2: Logistics Organization

Transportation/Logistic StrategyTraditional Organization Chart

President

VPMarketing

VPOperations

VPFinance

SalesAdvertising

Marketing ResearchEtc.

Machine ShopsWelding ShopsAssembly Lines

Etc.

BookkeepingCapital Budgeting

Financial ManagementEtc.

Page 3: Logistics Organization

Transportation/Logistic Strategy

Customer ServicePart of Order Processing

Field WhsingLocation Analyses

TrafficScheduling

Raw Materials WhsingPackaging/Handling

Part of Order ProcessInventory

ForecastingCommunications

Traditional Organization Chart

President

VPMarketing

VPOperations

VPFinance

SalesAdvertising

Marketing ResearchEtc.

Machine ShopsWelding ShopsAssembly Lines

Etc.

BookkeepingCapital Budgeting

Financial ManagementEtc.

Page 4: Logistics Organization

Transportation/Logistic StrategyLogistics Organization

Bowersox (1961)

Problem: Sub-optimization

Solution: Reorganization

Page 5: Logistics Organization

Transportation/Logistic StrategyTraditional Organization Chart

SalesAdvertising

Marketing ResearchEtc.

Machine ShopsWelding ShopsAssembly Lines

Etc.

BookkeepingCapital BudgetingAsset Management

Etc.

President

VPMarketing

VPOperations

VPFinance

Customer ServiceOrder Processing

TrafficScheduling

Inventory ControlForecasting

CommunicationsWarehousing

Packaging/HandlingLocation Analyses

VPLogistics

Page 6: Logistics Organization

Transportation/Logistic StrategyLogistics Organization

Bowersox (1965)Logistics in a State of Semi-MaturityMany Firms Adopting Logistics Concept/Reorganizing

Johnson (1975)Logistics Still in a State of Semi-MaturityMany Firms Reorganized, then Returned to Old OrganizationAbandoned the Logistics Concept

Post-Mortem Studies: Why?Organizational Shock

Page 7: Logistics Organization

Transportation/Logistic StrategySolutions to Organizational Problems

Cross Charges

Coordinating Committees

Savings Pools

Executive Review

Reorganization (Slow and Small Steps)

Page 8: Logistics Organization

Transportation/Logistic Strategy

Customer ServicePart of Order Processing

Field WhsingLocation Analyses

TrafficScheduling

Raw Materials WhsingPackaging/Handling

Part of Order ProcessInventory

ForecastingCommunications

Traditional Organization Chart

President

VPMarketing

VPOperations

VPFinance

SalesAdvertising

Marketing ResearchEtc.

Machine ShopsWelding ShopsAssembly Lines

Etc.

BookkeepingCapital Budgeting

Financial ManagementEtc.

Page 9: Logistics Organization

Transportation/Logistic StrategyNew Organization for Logistics

SalesAdvertising

Marketing ResearchEtc.

Machine ShopsWelding ShopsAssembly Lines

Etc.

BookkeepingCapital BudgetingAsset Management

Etc.

President

VPMarketing

VPOperations

VPFinance

Traffic

VPLogistics

Scheduling

Raw Materials WhsingPackaging/Handling

Part of Order ProcessInventory Control

ForecastingCommunications

Customer ServicePart of Order Processing

Field WhsingLocation Analyses

Page 10: Logistics Organization

Transportation/Logistic Strategy

SalesAdvertising

Marketing ResearchEtc.

Machine ShopsWelding ShopsAssembly Lines

Etc.

BookkeepingCapital BudgetingAsset Management

Etc.

President

VPMarketing

VPOperations

VPFinance

TrafficOrder Processing

VPLogistics

--------- Scheduling

Raw Materials WhsingPackaging/Handling

---------- Inventory Control

ForecastingCommunications

Customer Service----------

Field WhsingLocation Analyses

New Organization for Logistics

Page 11: Logistics Organization

Transportation/Logistic Strategy

SalesAdvertising

Marketing ResearchEtc.

Machine ShopsWelding ShopsAssembly Lines

Etc.

BookkeepingCapital BudgetingAsset Management

Etc.

President

VPMarketing

VPOperations

VPFinance

TrafficOrder Processing

Warehousing

VPLogistics

--------- Scheduling

----------Packaging/Handling

---------- Inventory Control

ForecastingCommunications

Customer Service--------------------

Location Analyses

New Organization for Logistics

Page 12: Logistics Organization

Transportation/Logistic Strategy

SalesAdvertising

Marketing ResearchEtc.

Machine ShopsWelding ShopsAssembly Lines

Etc.

BookkeepingCapital BudgetingAsset Management

Etc.

President

VPMarketing

VPOperations

VPFinance

Customer ServiceOrder Processing

TrafficScheduling

Inventory ControlForecasting

CommunicationsWarehousing

Packaging/HandlingLocation Analyses

VPLogistics

New Organization for Logistics