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,#,Contemporary Logistics,Twelfth,Edition,Chapter,4,Organizational and Managerial Issues in,Logistics,Contemporary LogisticsTwelfth,1,Learning Objectives,(1 of 2),4.1,To explain organizational structure for logistics,4.2,To compare traditional and,contemporary,organizational,design for logistics,4.3,To identify productivity issues,and improvement efforts in,logistics,4.4,To discuss quality issues in logistics,Learning Objectives(1 of 2)4.,2,Learning Objectives,(2 of 2),4.5,To describe ways to manage theft and pilferage,4.6,To review the concept of logistics,social,responsibility,4.7,To articulate issues associated with reverse,logistics,4.8,To report on programs designed to lessen,the,impact,of,terrorism on,logistics,systems,Learning Objectives(2 of 2)4.,3,Organizing Logistics Within the Firm,(,1 of 8),Two key organizational logistics topics,Organizational structure,Organizational,design,Organizing Logistics Within th,4,Organizing Logistics Within the Firm,(,2 of 8),Organizational structure for logistics,Two basic structures include:,Fragmented logistics structure,Logistics activities are managed in multiple departments throughout an organization,Unified logistics structure,Multiple logistics activities are combined into and managed as a single,department,Organizing Logistics Within th,5,Organizing Logistics Within the Firm,(,3 of 8),Organizational structure for logistics,Two basic structures for logistics departments include:,Centralized logistics organization,Company maintains a single logistics department that administers the related activities for the entire company from the home office,Decentralized logistics organization,Logistics-related decisions are made separately at the divisional or product group level and often in different geographic,regions,Organizing Logistics Within th,6,Organizing Logistics Within the Firm,(,4 of 8),Organizational structure for logistics,Job title or corporate rank,Leading-edge organizations tend to head the logistics department by senior-level personnel,Generally excluded from holding a“C-level”,position,Organizing Logistics Within th,7,Organizing Logistics Within the Firm,(,5 of 8),Organizational design for logistics,Three primary types of organizational design include:,Hierarchical(functional),Top-down flow,Matrix,Cross-functional responsibilities,Network,Process philosophy focused on combining tasks into value-creating products and,activities,Organizing Logistics Within th,8,Organizing Logistics Within the Firm,(,6 of 8),Organizational design for logistics,Network organizational design is manifested in terms of:,Relevancy,Refers to satisfying current and emerging customer needs,Facilitated by developing mutually beneficial relationships with key customers,At a minimum,these relationships should provide an understanding of customer needs and,wants,Organizing Logistics Within th,9,Organizing Logistics Within the Firm,(,7 of 8),Organizational design for logistics,Network organizational design is manifested in terms of:,Responsiveness,Reflects the degree to which an organization can accommodate unique or unplanned customer requests,Achieved when the appropriate decision makers are provided with both relevant information and the authority to address unique or unplanned,requests,Organizing Logistics Within th,10,Organizing Logistics Within the Firm,(,8 of 8),Organizational design for logistics,Network organizational design is manifested in terms of:,Flexibility,Is an organizations ability to address unexpected operational situations,Predicated on avoiding early commitment to an irreversible course of,action,Organizing Logistics Within th,11,Managerial Issues in Logistics,(1 of 28),Productivity,Quality,Risk,Sustainability,Complexity,Managerial Issues in Logistics,12,Managerial Issues in Logistics,(2 of,28),Productivity,Can be defined as the amount of output divided by the amount of input,Provides insight into the efficiency with which corporate resources are being,utilized,Managerial Issues in Logistics,13,Managerial Issues in Logistics,(3 of 28),Productivity,Three ways to improve productivity include:,Reduce the amount of input while holding output constant,Increase the amount of output while holding input constant,Increase output while decreasing,input,Managerial Issues in Logistics,14,Managerial Issues in Logistics,(4 of 28),Productivity,Labor productivity,Warehousing and transportation are heavily dependent on human labor,Human labor is an input(i.e.,workers receive wages or salaries),Productivity improvement efforts in logistics are often directed toward increasing the amount of output while holding input constant(workers resistant to suggestions regarding reduced wages or salaries),Managerial Issues in Logistics,15,Managerial Issues in Logistics,(5 of 28),Productivity,Asset productivity,Concerns include:,Space utilization,Excess capacity(unused available space),Can be unproductive as it may result in the purchase of additional equipment or facilities,which adds costs(in
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