Stages in integration
We have now described how logistics has moved from being a low priority, fragmented function,
to a strategic, integrated one. This is a major change, which typically goes through the
following stages:
Stage 1 Separate logistics activities are not given much attention or considered important.
Stage 2 Recognising that the separate activities of logistics are important for the success of
the organisation.
Stage 3 Making improvements in the separate functions, making sure that each is as efficient
as possible.
Stage 4 Internal integration – recognising the benefits of internal co-operation and
combining the separate functions into one.
Stage 5 Developing a logistics strategy, to set the long-term direction of logistics.
Stage 6 Benchmarking – comparing logistics’ performance with other organisations, learning
from their experiences, identifying areas that need improvement and finding ways of
achieving this.
Stage 7 Continuous improvement – accepting that further changes are inevitable and always
searching for better ways of organising logistics
Stages in integrationWe have now described how logistics has moved from being a low priority, fragmented function,to a strategic, integrated one. This is a major change, which typically goes through thefollowing stages:Stage 1 Separate logistics activities are not given much attention or considered important.Stage 2 Recognising that the separate activities of logistics are important for the success ofthe organisation.Stage 3 Making improvements in the separate functions, making sure that each is as efficientas possible.Stage 4 Internal integration – recognising the benefits of internal co-operation andcombining the separate functions into one.Stage 5 Developing a logistics strategy, to set the long-term direction of logistics.Stage 6 Benchmarking – comparing logistics’ performance with other organisations, learningfrom their experiences, identifying areas that need improvement and finding ways ofachieving this.Stage 7 Continuous improvement – accepting that further changes are inevitable and alwayssearching for better ways of organising logistics
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