Change is inevitable
•The design of a logistics strategy is based on a range of internal and external factors; these are constantly changing.
•A consequence of these continuous changes, is that the logistics strategy also has to evolveover time.
•Managers cannotdesign a strategy and then just work on its implementation –they also have to keep adjustingstrategy.
Change is inevitable
Some signsthat an organisation is not changing to meet new circumstances include:
•low sales and falling market share, as old products are overtaken by competitors
•many customer complaints, particularly about quality and delivery dates
•reliance on a few customers, especially with long-term, fixed-price contracts
•old-fashioned attitudes and operations
Change is inevitable
Some signsthat an organisation is not changing to meet new circumstances include (cont.):
•poor industrial relations, with low employee morale and high staff turnover
•poor communications within the organisation and with trading partners
•too much inflexible top management with no new appointments
•inward-looking managers who are out of touch with operations or customers.
Change is inevitable
•Change is a normal part of business and if we do notrespondwe will fall behind competitors.
•The new attitude does not happen by chance, but it needs careful management.
•One suggestion is that organisations need a champion, or change manager, who leads them away from their present position.
A series of changing stages
1.Denial–where employees deny that there is a need for change
2.Defence–defending the current way of doing things and criticising new proposals
3.Discarding–beginning to move away from the old ways and towards the new ones
4.Adoption–using the new ways and accepting that they are beneficial
5.Integration–assuming the new ways are normal and using them naturally.
Rate of change
•Major changes can be very disruptive, so organisations generally prefer a series of small adjustments.
•This iterative approach gives continuous improvement which is known by the Japanese name of kaizen.
•Suggestions for iterative improvements come from many sources, such as customers, competitors or suggestion boxes.
Rate of change
•Sometimes there is a more formal arrangement, such as the plan–do–check–actcycle, or Deming wheel.
Change is inevitable•The design of a logistics strategy is based on a range of internal and external factors; these are constantly changing.•A consequence of these continuous changes, is that the logistics strategy also has to evolveover time.•Managers cannotdesign a strategy and then just work on its implementation –they also have to keep adjustingstrategy.Change is inevitableSome signsthat an organisation is not changing to meet new circumstances include:•low sales and falling market share, as old products are overtaken by competitors•many customer complaints, particularly about quality and delivery dates•reliance on a few customers, especially with long-term, fixed-price contracts•old-fashioned attitudes and operationsChange is inevitableSome signsthat an organisation is not changing to meet new circumstances include (cont.):•poor industrial relations, with low employee morale and high staff turnover•poor communications within the organisation and with trading partners•too much inflexible top management with no new appointments•inward-looking managers who are out of touch with operations or customers.Change is inevitable•Change is a normal part of business and if we do notrespondwe will fall behind competitors.•The new attitude does not happen by chance, but it needs careful management.•One suggestion is that organisations need a champion, or change manager, who leads them away from their present position.A series of changing stages1.Denial–where employees deny that there is a need for change2.Defence–defending the current way of doing things and criticising new proposals3.Discarding–beginning to move away from the old ways and towards the new ones4.Adoption–using the new ways and accepting that they are beneficial5.Integration–assuming the new ways are normal and using them naturally.Rate of change•Major changes can be very disruptive, so organisations generally prefer a series of small adjustments.•This iterative approach gives continuous improvement which is known by the Japanese name of kaizen.•Suggestions for iterative improvements come from many sources, such as customers, competitors or suggestion boxes.Rate of change•Sometimes there is a more formal arrangement, such as the plan–do–check–actcycle, or Deming wheel.
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