Control Exercised By Logistics Executives Over Selected Logistics Functions Transportation Warehousing Inventory control Order processing Packaging Purchasing and procurement Activities
Trang 1GLOBAL LOGISTIC MANAGEMENT
LECTURE 9: ORGANISING FOR EFFECTIVE LOGISTICS
Trang 2 1 Definition of Organisation
2 Traditional Logistics Management
3 Optimal Organizational Forms
4 Organizational Strategies used by
Manufacturers
5 Components of Corporate and Logistics Mission Statements
6 Ways of Improving Logistics Organizational Effectiveness
7 Logistics Management Evaluation Measures
8 Summary
Trang 31 Definition of Organisation
An organisation is a social arrangement which pursues collective goals, controls its own performance, and has a boundary separating it from its environment
Organizational structure is a mainly
hierarchical concept of subordination of entities that collaborate and contribute
to serve one common aim
Trang 42 Traditional Logistics Management
V P M a r k e t i n g V P P r o d u c t i o n V P F i n a n c i a l
C E O
•Sales service
•Channels of distribution
•Product returns and warranties
•Manufacturing
•Purchasing/
procurement
•Traffic
•Warehousing
•Information systems
•Budgeting
•Inventory
•Data processing
Responsibilities
Objectives
Small and frequent production runs Larger and infrequent production runs Decentralized
warehousing Plant warehousing
Centralized warehousing Large product
assortment Fewer products
Trang 52 Traditional Logistics Management
•Sales service
•Channels of distribution
•Product returns and warranties
•Manufacturing
•Purchasing/
procurement
•Traffic
•Warehousing
•Information systems
•Budgeting
•Inventory
•Data processing
Responsibilities
Generous returned goods policies
Fast transportation Expedited shipments
More rigid returned goods policies
Low cost transportation
V P M a r k e t i n g V P P r o d u c t i o n V P F i n a n c i a l
C E O
Trang 6Control Exercised By Logistics
Executives Over Selected Logistics Functions
Transportation
Warehousing
Inventory control
Order processing
Packaging
Purchasing and procurement
Activities 1966 1976 1985 1990 1999
Percent of Reporting Companies
Trang 73 Optimal Organizational Forms
Hollow 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
Trang 84 Organizational Strategies used
by Manufacturers
Process-based
Market-based
Channel-based
Trang 9Process-based Organisation
Process-based Organisation is the organisation
structured by its business processes Each process makes up its own requirements for an appropriate structure
Business process may include:
Production and Logistic
Marketing and Marketing
Accounting and Finance
Human Resource and Administration
Trang 10Market-based Organisation
Market-based Organisation is the organisation geographically structured according to its
market
Market-based structure allows the focus of
organisational resources on a particular
market
Example of Market-based organisation:
Honda Vietnam
Ford Asia
Asia Pacific or North America areas
Trang 11Channel-based Organisation
Channel-based Organisation is the organisation structured by its channels in supply chain
Channels can arise from Input-Process or
Process-Output.
Input-Process: channel of sourcing
Process-Output: channel of distribution
Trang 12Organization Design for Logistics as a Function
E n g in e e rin g M a n u fa c tu rin g M a rk e tin g /S a le s F in a n c e /A c c o u n tin g
P re s id e n t
Human Resources Logistics
Trang 13Organization Design for Logistics as a Program
President
Logistics
Manufacturing Engineering HumanResources Marketing/Sales Finance/ Accounting
Trang 145 Components of Corporate and Logistics Mission Statements
Targeted customers and markets
Principal products/services
Geographic domain
Core technologies
Survival, growth, and profitability
Company philosophy
Company self-concept
Firm’s desired public image
Trang 155 Components of an Optimal
Logistics Organization
Organizational
◦ Structure
◦ Technology
Environmental
◦ Internal
◦ External
• Employee
– Organizational attachment
– Job performance
• Managerial
– Macro – Micro
Trang 166 Ways of Improving Logistics
Organizational Effectiveness
Strategic goal setting: e.g increase
market share, business expanding
Resource acquisition and utilization: e.g access to low cost resources,
improvement of resource utilization
Performance environment: e.g support working environment for effective and efficient logistic performance
Trang 176 Ways of Improving Logistics
Organizational Effectiveness
Communication process: e.g improve
coordination throughout supply chain
Leadership and decision making: e.g right leadership and decisions support
logistics
Organizational adaptation and
innovation: e.g adaption of new
technology and management practices in logistics
Trang 187 Logistics Management Evaluation Measures
Logistics cost as a percent of sales
Cost of specific logistics functions
(as a percent of sales or of logistics
cost)
Performance measure
Benchmarking
Trang 198 Summary
Traditional Logistics Management set up its structure by responsibilities and
objectives
Manufacturers employ organisational
strategy which are process-based,
market-based and channel-based
Corporate and Logistics Mission
Statements list out its main components
in logistic activities
Trang 208 Summary (cont)
effectiveness include: Strategic goal
setting, resource acquisition and
utilization, performance environment,
communication process, leadership and decision making and organisational
adaption and innovation
to evaluate its effectiveness and efficiency