The impact of the centralized structuring of logistics activities on span of control, formalization and performance
Cornelia Dröge Ph.D., Richard Germain M.B.A.
Journal of the Academy of Marketing Science · 1989 · Volume 17 · Issue 1
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 responsibility of logistics, (2) formalization, and (3) the capability of the logistics system to accommodate certain channel activities. 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.
Keywords
Service Level, Logistics System, Logistics Activity, Business Unit, Centralize Structure
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