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Logistical organization

What is Logistical Organization?

Giving orderly structure to logistical functions

What was the structure of logistics in the decade

of 1950?

Decade of 1950: Disintegrated or dispersed

logistical functions were attached to various

management functions like finance,

manufacturing and marketing.

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Logistical Organization Stage I

• Late 1950s or early 1960s saw a grouping of logistical activities

• Heads of materials management and physical distribution management were created

• But these heads remained under the control of traditional management functions of manufacturing

and marketing respectively

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Logistical Organization Stage II

• Late 1960s or early 1970s saw emergence of

physical distribution management

•As an independent function internally integrating

all outbound logistical functions. Materials

remained attached to manufacturing

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Logistical Organization Stage III• Decade of 1980 saw emergence of a new

organization • Organized activities of inbound and outbound

logistics were brought under one control•New organization of logistical activities as logistical operations, logistical support and

logistical planning

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• Upward positioning of logistical chief• Broadened responsibility to include more

functions• Larger interaction with other functions• Focus shifting from activity to broader

economic and technological issues• Scientific approach to logistics

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Logistical Organization Stage IV• Flatter or horizontal organization

• Less instructions and self direction by objectives• Concept of self directed work teams

• Organization tends to be a matrix organizationLogistical Organization Stage V

• An electronically connected virtual organization

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Importance of effective organization 1. Integrates logistical functions - primary to meet

the challenges of competitive business2. Yields better financial results

3. Facilitates employee empowerment to meet customer expectation

4. Facilitates Team Based Work Systems5. Provides transparency to facilitate rapid response