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Logistics organization functions

by:CNS     2021-07-11
Logistics organization functions 2021-06-20 13:10:01 Organizational organization is an organization that promotes planned production, implementation, and evaluation. It is a formal or informal system used to allocate corporate human resources to achieve corporate business goals. The logistics organization function is the process of designing the functions and powers of various departments, determining the scope of activities of the functional powers, staff powers, and linear powers in the organization, and continuously revising them as the internal and external environments of the organization change. The purpose of the logistics organization function is to enable the personnel responsible for logistics activities in the enterprise to better coordinate and collaborate with each other through the setting of functions and powers and constant revisions. Any type of enterprise or organization will carry out logistics activities. The traditional logistics function is to organize logistics activities around the three functions of finance, action and marketing. In the actual operation of logistics activities, discontinuities appear, resulting in a decline in efficiency. The reason is that there is a difference between the objectives of this department and the logistics function. The primary responsibility of the marketing department is to maximize profits, the primary responsibility of the financial department is to maximize the return on investment, and the operation department is to minimize unit costs. Operational performance appraisal and the association with profits promote conflicts in departmental decision-making, and even affect the company’s extraordinary performance. For example, the marketing department wants to deliver goods quickly, regardless of cost, while the production department is responsible for transportation but expects batch delivery. Therefore, it is very necessary to set up an organization to coordinate the decision-making of different logistics activities. As the management guru Peter Drucker said, “A good organization does not create good performance by itself, just like a perfect constitution does not guarantee a great president, strict laws, or a moral society. But no matter how good an individual manager is, it is impossible to create good performance without a good organizational structure. Therefore, improving the organizational structure... usually improves efficiency.' The role of logistics organization functions can be seen. From a general point of view, the organizational structure of logistics activities will not continue to evolve. The performance of the specific logistics organization functions of an enterprise depends on the characteristics of its internal logistics activities. According to the characteristics of logistics activities, the positioning of logistics organization functions is a prerequisite. The so-called positioning is related to where to place these business activities in the corporate organizational structure. It is usually determined by the following questions, that is, whether the logistics activities are decentralized management or centralized management, staff management or linear management.
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