LOGISTICS 2

LECTURE IX: INFLUENCE OF ORGANISATIONAL STRUCTURES ON CUSTOMER SERVICE AND EFFECTIVE COMMUNICATIONS

JACK DYER

DURBAN UNIVERSITY OF TECHNOLOGY JULY 2018 WEEK VIII

OVERVIEW

• Weeks 1-3: International Logistics Market

• Weeks 4-6: Customer Service and the Logistics Environment

• Week 6: Group Assignment Presentation

• Weeks 7-9: Significance of Communication for Customer Service

• Weeks 10-12: Principles of Marketing within Logistics Environment

• Week 12: Essay

• Week 13-14: Revision

OVERVIEW

• Disclaimer

• The following document vision represents only interim conclusions from the perspective of this maritime economist and all intellectual copyright under the 1968 Copyright Act, remains with this author who exerts the moral right of authorship over this paper. Permission to cite/utilise may be offered only through Jack.Dyer@utas.edu.au.

MANAGERIAL LOGISTICS AND ORGANISATIONAL STRUCTURED PLANNING

MANAGERIAL LOGISTICS AND ORGANISATIONAL STRUCTURED PLANNING

INFLUENCE OF ORGANISATIONAL STRUCTURES ON INDIVIDUAL DUTIES FOR CUSTOMER SERVICE

• Hierarchal Organisations Slow Decision Making and Effective Communications (Textbook Chapter 12)

• More Fluid Organisations with smaller business units, decentralised and autonomous are more adaptive and flexible/responsive to changing needs

• Multinational companies need multinational structures and organisational diversification

• Organisational Logistics Structures

• Strategic (Position of Logistics in a hierarchy) Versus Operational (Warehousing, order processing, transport etc under logistics sector)

• Centralised Versus Decentralised

• Line versus Staff versus Matrix (Combination) –accountability of logistics staff within an organisation. Line authority (vertical –hierarchy and team). Staff authority is horizontal (i.e. marketing work with logistics work with legal/procurement/risk management/HR

• Fragmented: Logistics activities are managed in multiple departments throughout an organisation

KEY COMPONENTS OF AN OPTIMAL LOGISTICS ORGANISATION STRUCTURE

• ORGANISATIONAL FACTORS:

• RELATIONSHIPS BETWEEN DIFFERENT FUNCTIONAL AREAS AND STAKEHOLDERS –Interfunctional (Marketing/Finance/ Operations/Manufacturing/Logistics) or Intra-functional (warehousing, traffic, purchasing, customer service)

• ENVIRONMENTAL FACTORS

• I.e. organisational climate, organisational effectiveness, key leaders; involvement

• EMPLOYEE RELATED FACTORS

• Skills, Experience, Attachment/Motivation and Performance

• MANAGERIAL POLICIES AND PRACTISES

• User friendly macro and micro policies

• Quality, Security, Sustainability, Communication

• Avoid bottlenecks/congestions

• Things operate smoothly/effectively

• Activities are well coordinated, communicated, planned and integrated

• Develop support mechanisms

INFLUENCE OF ORGANISATIONAL STRUCTURES ON INDIVIDUAL DUTIES FOR CUSTOMER SERVICE

• Developing a Logistics Audit to create a database that can be used to promote customer service

• Management should create a task force to assist in the review process

• It should determine what current corporate strategies and objectives could affect or be affected by logistics industry or individual members duties

• Major customer segments must identify and conceptualise critical measurements and variables that are accurate, reliable and efficient

• An external audit of current logistics performance should be conducted –personnel interviews and sampling of records

• Identify and analyse cost and service trade off alternatives

• Address questions identified with improvements and changes recommended and enacted

• Describe and explain any new systems and changes to staff/customers

VARIOUS LOGISTICS MANAGEMENT STRATEGIES –ALAN HARRISON

VARIOUS LOGISTICS MANAGEMENT STRATEGIES –ALAN HARRISON

VARIOUS LOGISTICS MANAGEMENT STRATEGIES –ALAN HARRISON

VARIOUS LOGISTICS MANAGEMENT STRATEGIES –ALAN HARRISON

VARIOUS LOGISTICS MANAGEMENT STRATEGIES –SCOR MODEL

MANAGERIAL QUALITY INDICATORS

• Logistics Service Quality relates to a firms ability to deliver goods and services without defects or errors to both internal and external customers.

• ISO 9000: A set of international quality management and assurance standards i.e. training and quality control systems

• SIX SIGMA: Investigates standard deviation errors –so 3.4 errors per 1000,000

• LEAN SIX SIGMA: Similar but organisations must focus on organisational responsiveness not just quality or speed

• MALCOLM BALDRIDGE NATIONAL QUALITY AWARD: US Award based on business results, customer and market focus; HR, leadership, process management and strategic planning

SECURITY –COUNTERING PILFERAGE AND RELATED RISKS IN THE LOGISTICS INDUSTRY

• Decals can be used to limit vehicles to registered entry. Visitors could sign in/designated parking

• Lock warehouse forklifts at night making it difficult to reach high or heavy items

• More and more seals with dispatches, drivers and receiving personnel all record and inspecting the seal noting its condition

• Electronic tags or strips are embedded in products at time of manufacture and can activate alarms at warehouses or retail doors

• Organisations should be proactive not tolerating even minor behaviour

• Companies should treat a whistle-blower anonymous hotline to avoid fears of reprisal or retribution

• Piracy….

SUSTAINABILITY IN THE LOGISTICS INDUSTRY

• Separate Course: Applied Sciences in Environmental Sustainability….

Sustainability issues include race, gender, sexual orientation, labour relations; environment, ethics and corporate social responsibility, environment, climate change, diversity, safety, philanthropy and human rights.

Energy efficiency/lighting/roofing, reusing, recycling

Safety includes equipment, training –Occupational Health and Safety Act

PURCHASING/PROCUREMENT

PURCHASING/PROCUREMENT

PURCHASING/PROCUREMENT

THE IMPORTANCE OF EFFECTIVE INTERNAL AND EXTERNAL COMMUNICATIONS

• REDUCE DISRUPTION AND DELAYS

• REDUCE MALADAPTATION

• REDUCE OPPORTUNITY COSTS OF SCARCE RESOURCES BEING SQUANDERED

• IMPACT COST CONSEQUENCES…

• PROFIT, SHARE PRICE, REVENUE

• DECREASED FIXED AND VARIABLE COSTS

• COMPETITIVE ADVANTAGE

• INCREASE ALLOCATIVE AND PRODUCTIVE EFFICIENCY

• INCREASE PERFORMANCE POTENTIAL

• IMPROVE CUSTOMER SERVICE/LOYALTY

• REDUCE RECOVERY TIME

THE IMPORTANCE OF EFFECTIVE INTERNAL AND EXTERNAL COMMUNICATIONS

• Avoiding optimal reverse logistics or the process of managing returned goods

• Why are products returned?

• How to optimise reverse logistics? (Whether return operations should be integrated into warehousing and production facilities?

• Whether reverse logistics should be managed internally or outsourced to an external party?

• Is the product damaged and unusable or can it be refurbished and sold?

• Was it returned as part of an overstock arrangement with a supplier?

• Is it a product being recalled?

• What’s the items’ worth?

• How do the company’s local returned goods policy apply to this product?

• Does the item need to undergo special testing?

• Is the item in an unopened package that can go into inventory for immediate resale?

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