BALLOU15 - 15-1Logistics/Supply Chain OrganizationChapter 15A good organization structure does not by itself produce good performance-just as a

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Unformatted text preview: 15-1Logistics/Supply Chain OrganizationChapter 15A good organization structure does not by itself produce good performance--just as a good constitution does not guarantee great presidents, or good laws, or a moral society. But a poor organization structure makes good performance impossible, no matter how good the individual managers may be. To improve organization structure…will therefore always improve performance.Peter F. Drucker15-2Organizing for Logistics/Supply Chain ManagementORGANIZINGCONTROLLINGPLANNINGOrganization scope• Intrafunctional• Interfunctional• InterorganizationalStructure forSupply ChainPerformanceOrganization design• Choices• PositioningPartnerships & Collaboration• Information sharing• Alliances• ContractingORGANIZINGCONTROLLINGPLANNINGOrganization scope• Intrafunctional• Interfunctional• InterorganizationalStructure forSupply ChainPerformanceOrganization design• Choices• PositioningPartnerships & Collaboration• Information sharing• Alliances• Contracting15-3Objectives for Organization•Definitively defines responsibility, accountability, and authority–essentials for good management•Collects people together in a meaningful way to achieve the goals of supply management•Sets initial conditions so that proper cost tradeoffs can be realized•Facilitates the implementation of plans as well as the planning process•Aids administrationActivity Fragmentation in the Supply ChainPresidentMarketingFinanceOperations•Distribution channels•Customer service•Field inventories•Revenue•Cost of capital•ROI•Inventory carrying costs•Supply alternatives and supply costs•Warehousing•Purchasing•TransportationResponsibilities15-4Activity Fragmentation in the Supply Chain (Cont’d)PresidentMarketingFinanceOperations•More inventory•Frequent & short production runs•Fast order processing•Fast delivery•Field warehousing•Less inventory•Cheap order processing•Less warehousing•Long production runs•Lowest cost routing•Plant warehousingObjectives15-515-6Activity Fragmentation in the Supply Chain (Cont’d)Reasons for fragmentation•Lack of understanding of key cost tradeoffs•Traditions and conventions•Other areas considered to be more important to the...
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This note was uploaded on 11/04/2010 for the course OPR 040 taught by Professor Ballau during the Spring '10 term at E. Kentucky.

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BALLOU15 - 15-1Logistics/Supply Chain OrganizationChapter 15A good organization structure does not by itself produce good performance-just as a

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