Logistics Strategy Implementation

Besides the formulation of strategy, its implementation is equally important. The firm should prop­erly evolve the framework for successful implementation of the logistics strategy. The elements of strategy implementation framework are controls, organization structure, organization culture and the human resource skills (see Figure 17.3).

The financial dimensions of the controls focus on the monetary bottom line, which is net income, return on equity, net profits, costs and so forth. The non-financial control parameters are service quality, customer satisfaction and on-time delivery. The behavioural controls are self- imposed by the employees and are an outcome of the organizational culture and employee moti­vational programmes implemented by the organization. Invariably, the higher motivational level with good self-imposed controls in the workforce is observed in organizations with an open culture. Some examples are IBM, Microsoft and Motorola.

The lean structure with minimum decision-making levels and a wider span of control for indi­viduals shows a higher motivational level among employees to perform well. In such organizations, the success rate of strategy implementation is higher. The another critical factor for successful strategy implementation is the skills of the individuals involved in implementing the strategy in a dynamic business environment. These normally depend on experience and educational back­ground, ability to analyze a situation and take risks.

Source: Sople V.V (2013), Logistics Management, Pearson Education India; Third edition.

1 thoughts on “Logistics Strategy Implementation

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