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The Impact of Logistical Performance on Organization Performance Essay Example

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The Impact of Logistical Performance on Organization Performance

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The Impact of Logistical Performance on Organization Performance. Logistics is an important function of any organization and Christopher (1986) supports the claims that logistics is the central feature of all the economic activities, while, Shapiro and Heskett (1985) found there are only a few human activities which are not dependent on flow of goods from the point of origin to the point of consumption. Shao and Ji (2006, p.64) found logistics to be the key for getting and maintaining customers, and Schramm-Klein and Morschett (2006) found logistic performance was very important for marketing performance as it created place, time, space value and quantity which is needed for customer satisfaction (Novack et al., 1992; Sheen and Tai, 2006). Bowesox et al. (2000) incorporated performance metrics which involved the delivery speed, customer satisfaction, delivery dependability and flexibility.

Rabinovich and Knemeyer (2006) studied the new breed of logistics which provides service through internet based supply chains. Logistics service providers establish relationship with the third-party logistics, the internet sellers, the selling processes and the flow processes throughout the supply chain.The components of logistics are logistics services, information systems and infrastructure systems which are closely linked, and it controls the movement of material and products from the source to costumers, while it is also linked to the waste disposal and reverse flow of materials. Performance depends on the organization systems, processes, capabilities, and it includes logistics, production systems, marketing systems, production capacity, internal communication, organizational performance and attention is paid to customer satisfaction (Tracey, 1998). Logistics performance not only affects the marketing performance, but contributes to the success of an organization and also increases its competitive performance. Every organization moves materials from one place to another or from one department to another, and military organization gets stationary from suppliers, retail shops and wholesalers. The Impact of Logistical Performance on Organization Performance.

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