The Definition of the Traditional Organizational Structure

The definition of the traditional organizational structure.

Traditionally organisational structures have focused their activities around three functional areas , Manufacturing or production , finance and administration and marketing or sales .

Traditional organizational strategy structure has many shortcomings.The logistics functions dispersed which is not conducive to the implementation of the logistics business. Above all , the weakness of this structure is that no associated part of three functions restricts to carry out the pertinent logistics process.

1. Advantages of organizational integration.

We need to improve on the traditional organizational structure.

This new organisational structure recognises that logistics needs to be planed, operated and controlled as one overall activity .

And then, this new organizational integration emphasis on the customer, and the need to ensure that internal processes support the requirement to achieve customer satisfaction.

Thirdly, the competitive strategy can also be determined by organizational integration. When carrying out a competitive strategy, the whole nodes in the supply chain, such as procurement, storage and movement of goods.

Fourthly, all the importance of logistics within the business structure and the inter-functional relationships are highlighted, which it forms a close liaison. And this liaison makes people re-think their approach in a more systematic perspective.

Moreover, this new organizational structure is conducive to get greater competitiveness.

2. 2.Matrix Organization.

The followings is related to a case of Yamaha Piano Manufacturer.

In this figure, there are two understandings on the Matrix organization structure. The first one is that specialized person, the logistic coordinator, is in charge of the entire logistics system, but does not have pertinent authority. For the CSR warehousing, the coordinator merely Plans and arranges effective approaches to the workers for Designing the parts warehouse. The second is to make it possible to respond to needs of several projects simultaneously. From the figure, the CSR manufacturer can take projects on the marketing, finance and production atthe same time.

3. Advantages of Matrix structure.

There are five distinct advantages to employing a matrix organizational structure.

The first advantage is that it allows an organization to meet demands from more than one sector of the environment simultaneously. the second advantage of the matrix structure is that it allows for the flexible use of a limited number of functional specialists. As a projects's demand for functional specialists changes, there is a ready pool of individuals to draw resources from or send resources back to. This pool of functional specialists keeps a smaller number of specialists employed that have the advantage of sharing information across projects in their functional home. The third advantage is that the organization retains a great amount of flexibility in meeting changes imposed by the external environment. If a project has to start immediately, or a project is disbanded, it saves the attendant hiring and firing that can accompany the purely project structure. The fourth advantage is in respect to skill development and training. The final is to ensure that functional expertise is engaged in all projects.

5.logistic manager role.

The first is to conduct the design, creation, configuration and parameter setting for the entire supply, such as inventory data, is one of great fundamental tasks as a Logistic manager.

The second is to encompass transportation, stock control and warehousing. The third is to drive and analyze the pertinent systems, such as ERP, and oversees, monitor and report the entire logistics operational performance.

The fourth is that the framework and the dialogue are carried out if the logistics manager deem it is inevitable, which determines