DECISION MAKING STRATEGIES IN ORGANIZING FOR LOGISTICS

Mission Statements
Organization should establish a mission statement to define its overall purpose for existence. There are
two types of mission statements that are personal mission statement and logistic mission statements. In
personal mission statement, this is the guideline for living. Individuals are the part of organization, so
they are the one who make the organization be more effective. Individuals are now trying to discover
their missions. Continuous learning will grow self confident and personal responsibility to make them
work together to create balance in life. In organization level, this mission statement defines basic
purpose of an organization to develop strategies, plans and tactics which they could operate. Logistic
mission statement is an important document to guide the planning, implementation, and control of a
firms logistics activities.

Components of a Mission Statement
Components of logistics mission statement are similar to corporate mission statement. Only one
element from corporate mission statement that vary the specific contain of logistics mission statement.
But mission statement contain of eight key components. The first component in mission statement is
targeted customers and markets such as demographic and source of material. Second is principal
product and services that mostly mention in logistics mission statement. The third is geographic domain
like the location of the firm. The next component is core technologies which perhaps can attribute to
the distinction between manufacturing technologies and logistic technologies. After that, survival,
growth and profitability take place. Company philosophy comes next after that. When philosophy was
mentioned, it is included the notion of logistic can create competitive advantage for the firm. The
seventh component is company self-concept that is relative to its competitors. The last element for
mission statement is desired public image that company desired.





Components of an Optimal Logistics Organization
Factor that contributing to organization effectiveness are organizational characteristics, environment
characteristics, employee characteristics, managerial policies and practices. In organizational
characteristics, structure and technologies are the major components. Structure refers to the
relationships that exist between various functional, interfunctional, and intrafunctional. Technologies
define as mechanism used by an organization to convert input to produce output. Internal and external
factors can influence the effectiveness of the organization. Internal organizations are known as
organizational climate or corporate culture. All employees are different on every type of characteristics.
It is a marked impact on the effectiveness of a company which is organizational attachment and their job
performance. Policies determined the structure of the firm in macro and in micro level it is influence
goals of various corporate functions. These two policies will affect the whole process of production.

Ways of Improving Logistics Organizational Effectiveness
There are six important factors that have been identified are strategic goal setting, resource acquisition
and utilization, performance environment, communication process, leadership decision making
expertise and organizational adaption and innovation. In strategic goal setting, there are two goals
defined which is individual employee goals and organization goal. Human and financial resources include
in resource acquisition and utilization. Having a organizational climate is about to motivate employee to
be more effective. Good communication is needed to influence the effectiveness of logistics function.
Leadership and decision making expertise commonly did by senior executive of the organization because
they are capable to make logical and consistent decision. Organizational adaption and innovation are
important to attribute effectiveness.

An Approach to Developing an Optimal Logistics Organization
Steps to developing an optimal logistics organizational are research corporate strategy and objectives,
organize functions in a manner compatible with the corporate structure, define the functions for which
the logistics executive is accountable, know his or her management style, organize for flexibility, know
the available support systems and understand for human resource considerations. Underlying
foundation was provided to guideeach functional component of the firm for long-term direction.
Logistics executives must understand the role of their activity because these activities support the whole
overall objectives and strategy of the firm. Logistics activity is affected by the corporate structure.
Logistics is separate organizational that typically report to the marketing group and this practices make
logistics more widely recognize. Logistics subfunction housed need to identify a clear definition of the
function of the logistics organization. This will allow the firm to implement concept of logistics
management and total cost trade-offs. Management style is intangible but this can be the biggest
different within two companies. Management style of the senior executive is important as the formal
structure of the organization. The style or personality of the senior members influence the employee
work ethic, morale, motivation and this will help organization to increase production. This kind of style is
a vital ingredients to the success of the logistics missions of the firm. Logistics organization should be
capable to change the method of production is a little bit of time to be more productive in production.
Support system is essential to every organization and this occur in different type. One organization need
not less than three support system to support their activity. To make he organization work perfectly,
what its need is the people to operate it. In addition, people who becomes employee of the company
have the skill and abilities to perform the task in each company. This employees need a leader which is
the manager. Managers should have personal integrity nad awareness, ability to motivate, planning
skills, organization skills, self-motivation, managerial control, effective oral communication, supervisory
ability, problem solving ability and last but not least their self confidence.