The problems at RP Turner are almost inevitable if logistics is divided into separate functions.
Each part will move in a different direction, and there is duplicated effort and wasted
resources. Imagine a wholesaler who has one fleet of vehicles run by materials management to
bring materials in from suppliers, and a separate fleet run by distribution to deliver the same
goods out to customers. This might work, but you can picture the duplicated effort and waste
in managing two separate vehicle fleets. Another organisation might have three stocks – raw
materials, work in progress and finished goods – each run by different departments and using
different standards and systems.
A fragmented supply chain also makes it difficult to co-ordinate the flow of information
through different systems. Suppose a production department knows that it is running short of a
material and needs a new delivery. This information should pass seamlessly to purchasing. If,
however, it has to pass from one system to another there is a greater chance of error, uncertainty,
delay and inefficiency – resulting in late delivery, emergency orders, expediting and shortages.
To put it briefly, 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
● giving logistics a low status within an organisatio
The problems at RP Turner are almost inevitable if logistics is divided into separate functions.
Each part will move in a different direction, and there is duplicated effort and wasted
resources. Imagine a wholesaler who has one fleet of vehicles run by materials management to
bring materials in from suppliers, and a separate fleet run by distribution to deliver the same
goods out to customers. This might work, but you can picture the duplicated effort and waste
in managing two separate vehicle fleets. Another organisation might have three stocks – raw
materials, work in progress and finished goods – each run by different departments and using
different standards and systems.
A fragmented supply chain also makes it difficult to co-ordinate the flow of information
through different systems. Suppose a production department knows that it is running short of a
material and needs a new delivery. This information should pass seamlessly to purchasing. If,
however, it has to pass from one system to another there is a greater chance of error, uncertainty,
delay and inefficiency – resulting in late delivery, emergency orders, expediting and shortages.
To put it briefly, 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
● giving logistics a low status within an organisatio
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