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test 2 outline new - Logistics Organization Logistics...

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Logistics Organization Logistics organizations differ based on the level of logistical challenges faced Focusing emphasis from functional to process oriented The 24/7 nature of supply chain activities requires deep organizational integration Logistics Organization- Organizational Development Stage 1: Effective management of finished goods transportation and warehousing Stage 2: Integration of finished goods distribution and inbound transportation Stage 3: Implementation and integration of supply chain management concepts/philosophies Types of Logistics Organization – Organization Models Functional divisions o Management and staff are organized according logistic function, product line, etc. o Traditional organization for logistics divisions Matrix organizations o Counter weaknesses in functional divisions o Establishes connections between divisions to help create enterprise synergies Cross-functional self-managed teams o Self directed work groups o Relatively permanent teams made up of staff from different departments o To be effective, teams need to be empowered to make and execute their own decisions o With appropriate implementation, barriers between departments fade and teams become very effective Logistics services division o A separate enterprise division is created to supply logistics services to the whole enterprise **Regardless of the model, logistics organizations have the following personnel levels: o Level: Top, Population: Senior Executives, Example: VP, Logistics o Level: Middle, Population: Mid-level Managers, Example: Distribution Manager o Level: First Line, Population: Staff Groups, Example: Logistics Analyst o Level: Staff, Population: Non-exempt Employees, Example: Warehouse Worker Significant Logistics Organization Concepts Structural compression o Performing with fewer employees – reduction in force (RIFs) Matrix to horizontal o Moving to horizontal organizations Empowerment/teaming o Use of self directed work teams (SDWTs) Learning
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o Promoting an organization’s capacity to improve and innovate Measuring Logistics Organization Performance Cost: cost per pound, order, etc. Productivity: orders filled, pound/tons loaded, labor hours, etc. Service: quality benchmarks, ex: stockouts Management criteria: o Line management: keeping up the day-to-day? o Problem solving: quick on your mental feet? o Project management: can you maintain projects? Global Logistics Geo-political shifts and e-commerce have really intensified globalization Requires a large amount of coordination and intelligence Large firms find competitive advantages through global logistics strategies Recent Changes in Global Logistics Deregulation of the Ocean Liner Industry (1984) o Opened international trans-oceanic shipping to true market forces Increases in intermodalism o Convenience of containerization and intermodalism maximizes global efficiencies Shipment tracking
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This note was uploaded on 11/18/2010 for the course BMGT 367 taught by Professor Fogul during the Fall '08 term at Maryland.

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test 2 outline new - Logistics Organization Logistics...

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