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Logistics Organization

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. President. VP Marketing. VP

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Logistics Organization

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  1. 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. President VP Marketing VP Operations VP Finance Bookkeeping Capital Budgeting Financial Management Etc. Sales Advertising Marketing Research Etc. Machine Shops Welding Shops Assembly Lines Etc. Traditional Organization Chart

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

  4. Logistics Organization Bowersox (1961) Problem: Sub-optimization Solution: Reorganization

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

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

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

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

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

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

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

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