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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. 1
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

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

• Upward positioning of logistical chief
• Broadened responsibility to include more
• Larger interaction with other functions
• Focus shifting from activity to broader
economic and technological issues
• Scientific approach to logistics

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 organization
Logistical Organization Stage V
• An electronically connected virtual organization

 Importance of effective organization
2. Integrates logistical functions - primary to meet
the challenges of competitive business
3. Yields better financial results
4. Facilitates employee empowerment to meet
customer expectation
5. Facilitates Team Based Work Systems
6. Provides transparency to facilitate rapid response