Home / Summaries / Logistics & Supply Chain Management / organisational-horizontal-customer

Overcoming the barriers to supply chain integration

6 important questions on Overcoming the barriers to supply chain integration

What should the logistics vision be built around?

the simple issue of 'How do we intend to use logistics and supply chain management to create value for our customers?’
To do this, firms need to know what creates value for customers
Value chain analysis will be fundamental element in this investigation
As will the definition of of the core competencies and capabilities of the organisation

What are the four elements of logistics derived customer value

Better, Faster, Cheaper and Closer

What is the difference between vertical and horizontal organisation

One of the main differences between vertical and horizontal business organizations is that in a vertical system, upper-level management issues orders and employees follow those orders without input or objection. In contrast, employees in a horizontal organization are encouraged to make suggestions and offer ideas that can improve workplace processes, and are given the authority to implement changes without having to obtain authorization.

What are the characteristics of a horizontal organisation?

1. Organised around processes:
- Innovation (including new product development)
- Consumer development (primarily focused on building loyalty with end users)
- Customer management (creating relationships with intermediaries)
- Supplier development (strengthening upstream and alliance relationships)
- Supply chain management (cash-to-cash process)

2. Flat and de-layered

3. Built on multi-functional teams

4. Guided by performance metrics that are market-based

What is the driving force for organisational change?

As markets, technologies and competitive forces change at ever increasing rates the imperative for organisational change becomes more pressing.
The paradox is that because organisational structures are rigid, they do not have the ability to change at the same rate as the environment in which they exist.
The trend towards globalisation of industry, involving coordination of complex flows of materials and information from multitude offshore sources and plants to a diversity of markets, has sharply highlighted the inappropriateness of existing structures.
The driving force for organisational change is logistics

What are the six processes of the SCOR model

• Plan: Activities “planned to meet customer demand e.g. forecasting, resource planning, scheduling, etc.

• Source: procedures used for Issuing purchase orders, receiving goods, etc.

• Make: How materials & components are converted in to goods and services

• Deliver: Process that receives customer orders and delivers products

• Return: how products are bought back into the system e.g. recycling, product recalls

• Enable: activities necessary to control and manage SC (incl. information systems and performance measurement)

The question on the page originate from the summary of the following study material:

Logistics & Supply Chain Management | 9781292083797 | Martin Christopher

View summary