Post on 27-Dec-2015
Transportation/Logistic Strategy
Logistics 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
Transportation/Logistic Strategy
Traditional Organization Chart
President
VPMarketing
VPOperations
VPFinance
SalesAdvertising
Marketing ResearchEtc.
Machine ShopsWelding ShopsAssembly Lines
Etc.
BookkeepingCapital Budgeting
Financial ManagementEtc.
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.
Transportation/Logistic Strategy
Logistics Organization
Bowersox (1961)
Problem: Sub-optimization
Solution: Reorganization
Transportation/Logistic Strategy
Traditional 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
Transportation/Logistic Strategy
Logistics 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
Transportation/Logistic Strategy
Transportation/Logistic Strategy
Solutions to Organizational Problems
Cross Charges
Coordinating Committees
Savings Pools
Executive Review
Reorganization (Slow and Small Steps)
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.
Transportation/Logistic Strategy
New 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
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
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
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