Problems with fragmented logistics
Fragmenting logistics into different parts has the
disadvantages of:
• giving different, often conflicting, objectives within an organisation
• duplicating effort and reducing productivity
• giving worse communications and information flows between the parts
• reducing co-ordination between the parts – leading to lower efficiency, higher costs and worse customer service
Problems with fragmented logistics
Fragmenting logistics into different parts has the disadvantages of (cont.):
• increasing uncertainty and delays along the supply chain
• making planning more difficult
• introducing unnecessary buffers between the parts, such as stocks of work in progress, additional transport and administrative procedures
• obscuring important information, such as the total cost of logistics
Problems with fragmented logisticsFragmenting logistics into different parts has thedisadvantages of:• giving different, often conflicting, objectives within an organisation• duplicating effort and reducing productivity• giving worse communications and information flows between the parts• reducing co-ordination between the parts – leading to lower efficiency, higher costs and worse customer serviceProblems with fragmented logisticsFragmenting logistics into different parts has the disadvantages of (cont.):• increasing uncertainty and delays along the supply chain• making planning more difficult• introducing unnecessary buffers between the parts, such as stocks of work in progress, additional transport and administrative procedures• obscuring important information, such as the total cost of logistics
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