Monday, 18 August 2014

What is the System Approach to Logistics?

You can use the system approaches in logistics to tackle business problems by helping the company, and various different departments within the company to reach their objectives.

As all of the major departments are connected with the systems approach it’s vital that they have to consider the implications that their objectives will have on all the other major departments. A good example  is the connection between the marketing department and logistics. If the marketing department focus on improving customer service by quicker response and delivery times the logistics department will need to make alterations to warehousing, inventory, tracking, packing and shipping.  The logistics manager therefore has to balance intrafunctional logistic activities within the department to ensure it doesn’t become detrimental due to stress.

Each of the major departments are mutually interdependent, each of their goals are made to be compatible with the entire company’s objectives, so each system approach is different from company to company. This means there isn’t a one size fits all systems approach, each company has to find the right one to work with their goals and ambitions.

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