2. Traditional Logistics ManagementSales service
Channels of distribution
Product returns and warrantiesManufacturing
Purchasing/ procurement
Traffic
WarehousingInformation systems
Budgeting
Inventory
Data processingResponsibilitiesObjectivesLarge inventoriesLow inventoriesSmall and frequent production runsLarger and infrequent production runsDecentralized warehousingPlant warehousingCentralized warehousingLarge product assortmentFewer productsa
3. Traditional Logistics Management cont.bSales service
Channels of distribution
Product returns and warrantiesManufacturing
Purchasing/ procurement
Traffic
WarehousingInformation systems
Budgeting
Inventory
Data processingResponsibilitiesObjectivesRapid order processingInexpensive order processingGenerous returned goods policiesFast transportationExpedited shipmentsMore rigid returned goods policiesLow cost transportation15-2 b
4. Control Exercised By Logistics Executives Over Selected Logistics FunctionsTransportation
Warehousing
Inventory control
Order processing
Packaging
Purchasing and procurement89% 94% 97% 98% 90%
70 93 95 97 88
55 83 81 79 74
43 76 67 61 55
8 70 37 48 39
15 58 44 51 41Activities 1966 1976 1985 1990 1999Percent of Reporting Companies15-3
5. Optimal Organizational FormsHollow corporation
A small organization of managers and “idea people” who hire external companies to perform various types of activities, including manufacturing, logistics, distribution, billing, sales, and marketing.
Virtual corporation
A number of companies come together to develop, produce, sell, and distribute a product or a service of limited scope.
15-4
6. Organizational Strategies used by ManufacturersProcess-based
Market-based
Channel-based15-5
7. Organization Design for Logistics as a FunctionHuman ResourcesLogistics15-6
8. Organization Design for Logistics as a ProgramPresidentLogisticsManufacturingEngineeringHuman
ResourcesMarketing/
SalesFinance/
Accounting15-7
9. Components of Corporate and Logistics Mission StatementsTargeted customers and markets
Principal products/services
Geographic domain
Core technologies15-8 a
10. Components of Corporate and Logistics Mission Statements (cont.)Survival, growth, and profitability
Company philosophy
Company self-concept
Firm’s desired public imageb15-8 b
11. Components of an Optimal Logistics OrganizationOrganizational
Structure
Technology
Environmental
Internal
ExternalEmployee
Organizational attachment
Job performance
Managerial
Macro
Micro15-9
12. Ways of Improving Logistics Organizational EffectivenessStrategic goal setting
Resource acquisition and utilization
Performance environment
Communication process
Leadership and decision making
Organizational adaptation and innovation15-10
13. Logistics Management Evaluation MeasuresLogistics cost as a percent of sales
Cost of specific logistics functions (as a percent of sales or of logistics cost)
Performance15-11