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
• 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