Logistics and Supply Chain Management, 6th Edition

Developing the logistics organisation

Some commentators have suggested that the solution to the problems outlined above lies in creating a higher level of authority in the form of a logistics function that links together the purchasing, production and distribution tasks. Appealing as this may appear at first sight, it will not solve the underlying conflicts that the traditional organisation creates. It merely adds another layer of management. At a time when the trend is towards ‘flattening’ organisations, this solution is unlikely to gain ground.

Instead radical solutions must be sought which may require a restructuring of the conventional ‘vertical’ organisation and lead to the creation of a ‘horizontal’, or market-facing, business. Figures ...