• 1. CHAPTER 15 Organizing for Effective Logistics
    • 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