The Impact of the Centralized Structuring of Logistics Activities on Span of Control,Formalization and Performance

Abstract

The centralized structuring (or consolidation) of logistics activities within the firm is shown to have a major impact on (1) the total number of activities that are the direct respon sibility of logistics, (2) formalization, and (3) the capability of the logistics system to accommodate certain channel ac tivities. In particular, centralized structuring enhances the accommodation of product introduction, phaseout and recall in functional firms, and the customization of service levels to specific segments or customers in divisional firms.

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