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Transportation/Logistic Strategy Logistics Organization Bowersox (1961) Cannot Avoid Performing Logistical Functions Functional Areas Scattered Throughout.

Published byBernard Hodge Modified over 9 years ago

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Presentation on theme: "Transportation/Logistic Strategy Logistics Organization Bowersox (1961) Cannot Avoid Performing Logistical Functions Functional Areas Scattered Throughout."— Presentation transcript:

1 Transportation/Logistic Strategy 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

2 Transportation/Logistic Strategy Traditional Organization Chart President VP Marketing VP Operations VP Finance Sales Advertising Marketing Research Etc. Machine Shops Welding Shops Assembly Lines Etc. Bookkeeping Capital Budgeting Financial Management Etc.

3 Transportation/Logistic Strategy Customer Service Part of Order Processing Field Whsing Location Analyses Traffic Scheduling Raw Materials Whsing Packaging/Handling Part of Order Process Inventory Forecasting Communications Traditional Organization Chart President VP Marketing VP Operations VP Finance Sales Advertising Marketing Research Etc. Machine Shops Welding Shops Assembly Lines Etc. Bookkeeping Capital Budgeting Financial Management Etc.

4 Transportation/Logistic Strategy Logistics Organization Bowersox (1961) Problem: Sub-optimization Solution: Reorganization

5 Transportation/Logistic Strategy Traditional Organization Chart Sales Advertising Marketing Research Etc. Machine Shops Welding Shops Assembly Lines Etc. Bookkeeping Capital Budgeting Asset Management Etc. President VP Marketing VP Operations VP Finance Customer Service Order Processing Traffic Scheduling Inventory Control Forecasting Communications Warehousing Packaging/Handling Location Analyses VP Logistics

6 Transportation/Logistic Strategy Logistics Organization Bowersox (1965) Logistics in a State of Semi-Maturity Many Firms Adopting Logistics Concept/Reorganizing Johnson (1975) Logistics Still in a State of Semi-Maturity Many Firms Reorganized, then Returned to Old Organization Abandoned the Logistics Concept Post-Mortem Studies: Why? Organizational Shock

7 Transportation/Logistic Strategy

8 Solutions to Organizational Problems Cross Charges Coordinating Committees Savings Pools Executive Review Reorganization (Slow and Small Steps)

9 Transportation/Logistic Strategy Customer Service Part of Order Processing Field Whsing Location Analyses Traffic Scheduling Raw Materials Whsing Packaging/Handling Part of Order Process Inventory Forecasting Communications Traditional Organization Chart President VP Marketing VP Operations VP Finance Sales Advertising Marketing Research Etc. Machine Shops Welding Shops Assembly Lines Etc. Bookkeeping Capital Budgeting Financial Management Etc.

10 Transportation/Logistic Strategy New Organization for Logistics Sales Advertising Marketing Research Etc. Machine Shops Welding Shops Assembly Lines Etc. Bookkeeping Capital Budgeting Asset Management Etc. President VP Marketing VP Operations VP Finance Traffic VP Logistics Scheduling Raw Materials Whsing Packaging/Handling Part of Order Process Inventory Control Forecasting Communications Customer Service Part of Order Processing Field Whsing Location Analyses

11 Transportation/Logistic Strategy Sales Advertising Marketing Research Etc. Machine Shops Welding Shops Assembly Lines Etc. Bookkeeping Capital Budgeting Asset Management Etc. President VP Marketing VP Operations VP Finance Traffic Order Processing VP Logistics --------- Scheduling Raw Materials Whsing Packaging/Handling ---------- Inventory Control Forecasting Communications Customer Service ---------- Field Whsing Location Analyses New Organization for Logistics

12 Transportation/Logistic Strategy Sales Advertising Marketing Research Etc. Machine Shops Welding Shops Assembly Lines Etc. Bookkeeping Capital Budgeting Asset Management Etc. President VP Marketing VP Operations VP Finance Traffic Order Processing Warehousing VP Logistics --------- Scheduling ---------- Packaging/Handling ---------- Inventory Control Forecasting Communications Customer Service ---------- Location Analyses New Organization for Logistics

13 Transportation/Logistic Strategy Sales Advertising Marketing Research Etc. Machine Shops Welding Shops Assembly Lines Etc. Bookkeeping Capital Budgeting Asset Management Etc. President VP Marketing VP Operations VP Finance Customer Service Order Processing Traffic Scheduling Inventory Control Forecasting Communications Warehousing Packaging/Handling Location Analyses VP Logistics New Organization for Logistics

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