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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