Organizing for

Effective Logistic
Budy Ariyanto
 Effective Logistic Organization is
Importance?
• Organization Influenced of efficiency and
effectiveness??
• How effective logistic organization can impact
effective and efficiency??

A study by Cleveland consulting associate highlighted the importance of qualityprogram in

over 200 US and european business, they identified several barriers to instituting a high
quality program, as following :
1. Changing the corporate culture
2. Establishing a common vision throughout the organization
3. Establishing employee ownership of quality process
4. Gaining senior executive commitment
5. Changing management process
6. Training and educating employees
Importance of an logistic Organization
Type of Organizational Structures
With production:
– production scheduling;
– production sequencing;
– production control;
– plant warehouse design;
– raw material stocks.
With marketing:
– customer service;
– packaging;
– distribution center
location;
– inventory levels;
– order processing;
– etc.
With finance:
– stockholding;
– stock control;
– equipment financing;
– distribution cost control;
– etc.
 This has led to a change in

Organizational integration thinking in organizational

terms away from functional
structures and towards
process-oriented structures.
This is in many ways a
reflection of the key changes
that have been outlined in
previous chapters:
• the emphasis on the
customer, and the need to
ensure that internal processes
support the requirement to
achieve customer satisfaction;
• the concentration on time
compression throughout the
whole supply chain, and the
need to identify and manage
suitable trade-offs;
Traditional silo-based functional organizational structure • the move to globalization
and the requirement to plan
and manage the logistics
network as a complete system.
Three Organizational Strategy
➢ Process based
•Concerned with managing a broad of logistic activities as a value added chain. The
emphasis of process strategy is to achieve efficiency from managing purchasing,
manufacturing scheduling and physical distribution as an integrated system.
➢ Market Based
• Concerned with a managing a limited group of logistic activities across multi division
business or across multiple business units
1. Make joint product shipment to customer on behalf of different business unit or
product group
2. Facilitate sales and logistical coordination by a single order invoice
➢ Channel Based
• focus on managing logistic activities performed jointly in combination with dealers and
distributors.
 Logistic Coordination
- Strategic vs
Operational
- Centralized Vs
Decentralized
- Line vs Staff
 Other Organizational Approach
- Organization Design for Logistic as Function

- Organization Design for Logistic as Program

 Other Organizational Approach
- Logistic in Matrix Organization
Decision Making Strategies in organizing for Logistic

Logistic Mission Statement

Component of mission statement

1. Target Customer and market 7. Company Self Concept
2. Principal Product & Service 8. Desired Public Image
3. Geographic Domain
4. Core Technologies
5. Survival, Growth and Profitability
6. Company Philosophy
Component of an Optimal Logistic Organization
The Ways of Improving Logistic Organizational Effectiveness

Strategic Goal Setting

Resource Acquisition and Utilization
Performance Environment
Communication Process
Leadership and Decision Making
Organizational adaptation &
Innovation
 Thanks!
(Enter your own creative tag line above)