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Logistical Organization Stage II
• Late 1960s or early 1970s saw emergence of
physical distribution management
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• Upward positioning of logistical chief
• Broadened responsibility to include more
functions
• Larger interaction with other functions
• Focus shifting from activity to broader
economic and technological issues
• Scientific approach to logistics
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Logistical Organization Stage IV
• Flatter or horizontal organization
• Less instructions and self direction by objectives
• Concept of self directed work teams
• Organization tends to be a matrix organization
Logistical Organization Stage V
• An electronically connected virtual organization
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Importance of effective organization
2. Integrates logistical functions - primary to meet
the challenges of competitive business
3. Yields better financial results
4. Facilitates employee empowerment to meet
customer expectation
5. Facilitates Team Based Work Systems
6. Provides transparency to facilitate rapid response