Specificity of Logistics Management Organizational Structure Development in Multinational Corporations
MAGAZINE №4 (93) August 2019
AUTHORS DEMIN A.S.
CATEGORY Logistic integration and coordination Human resource management and motivation
ABSTRACT
Logistics occupies an important role in the organizational structure of modern business management. With the transition to the concept of supply chain management (SCM), its responsibilities also include coordinating functions. On the other hand, SCM is a critical area for multinational corporations with enough market power. This article aims to bring together scientific knowledge in the field of organizational design of multinational corporations (MNC) and the construction of organizational structures for logistics management.
A key feature of designing the organizational structure of logistics management in MNCs is the increased importance of national culture. This is confirmed by the articles on the role of the human factor in the SCM. Besides, other articles show the influence of the national culture criteria on the practices of crossfunctional coordination. In this regard, it is important not only to understand the peculiarities of national cultures, but also to be able to use them when implementing SCM practices, in other words, to be culturally intelligent. The article demonstrated the possibility of considering these characteristics both in theoretical terms and in practice, using an illustrative example of a large MNC. In addition, the specificity of the divisional organizational management structure development was demonstrated, where, on the one hand, both regional and product specificities are considered, on the other, the principle of dual subordination is absent. The developed methodology seems to be effective as it expands the knowledge of the manager responsible for building a rational organizational structure for managing logistics.
Keywords:
The Organizational Design Methodology in Logistics and SCM
MAGAZINE №6 (77) December 2016
AUTHORS DYBSKAYA V.V., SERGEEV V.I.
CATEGORY Supply chain management
ABSTRACT
In the article the actual problems and the methodology of organizational structure design by companies, which target Russian market, in terms of logistics and SCM departments formation are considered. The classification and main characteristics of organizational structures as well as comparative analysis of hierarchic and adaptive types are given.
Key features connected with logistic and supply chain management (SCM) departments design in the companies’ organizational structures are reflected. It is shown that organizational structure development by the logistics should be initiated by the strategy and key logistic business processes, while the logistics (SCM) department design is connected with the decision-making process concerning specialization, departamentalization, department size and delegation of authority by company’s top management. The model of company’s logistics department organizational structure design is given. It is demonstrated that the organizational design evolution in logistics and SCM is closely related with logistics development.
The main research methodology aspects of logistics and SCM departments organizational design with a foundation of systematic approach (analysis), economic cybernetics methods, operation research, mathematical statistics, decision theory and SCM theory are given. The investigation problem statement for logistics and SCM organizational design evolution in Russian companies is given.
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