Organisation Design Strategies for Business Logistics

During the 60's and 70's the Business Logistics—or, as it is now often referred to in Scandinavia, the Materials Administration—philosophy has become a well established and accepted management philosophy, based on a systems theory approach and emphasising a total materials flow concept. In literature as well as in practice however one encounters some major conceptual problems. One of the most significant areas in this context concerns the organisational aspects of the concept. Here proposals and assertions have covered a wide spectrum. Hence it has often been claimed that a logistics manager in a line position, based upon an organisational design involving a logistics department, is a requirement for the realisation of the philosophy. Just as firm, however, is the claim that a total approach to logistics only can be achieved within a matrix organisation framework. However, applications of the above‐mentioned organisational strategies often have negative logistics consequences. For example it is easy to find organisations where the introduction of a “logistics manager” concept has resulted in conflicts hindering the possibilities for a realisation of the logistics potentials for many years ahead.