Logistics coordination in course of a distribution network development

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MAGAZINE  №6 (95) December 2019


CATEGORY  Distribution logistics Logistic integration and coordination Retail companies’ corporate logistics 



 Issues of interfunctional coordination are typical for any company irrespective of its sphere of business. However, problems of the neighboring departments coordination in course of the material flow management seem to be especially acute for the commercial companies. The reasons for that include proximity of the commercial companies to the ultimate consumer, independent demand that such organizations have to meet, ever changing customer priorities as well as active adoption of the geographical expansion strategy in the form of entering markets of different regions of Russia. Economic stagnation, fall of the solvent demand and strengthened competition amplify the issues in question.
The paper focuses on the typical causes of the interfunctional conflicts associated with logistics. These causes involve incompatibility of the neighboring organizational departments' objectives and interests, rivalry for the resources, insufficient regulation of functional responsibilities, etc. The authors examine the notion and specifics of interfunctional logistics coordination, that can be used as a means to prevent conflicts between departments of a company. Based on the analysis of the methods of interfunctional logistics coordination, the authors propose the scheme of division of functions and authorities between departments of a commercial company when carrying out strategic tasks connected to the distribution network development. Such tasks (and potential conflict objects) embrace identification of the prospective sales regions, making decision on the effective range of goods to sell, sales volume planning in each of the identified regions, selection of the rational distribution system, development of the customer logistics service system, market segmentation and identification of the goods supply regions, elaboration of the inventory policy, calculation of the material flows in the distribution network, shaping warehouse network, choice of the delivery technologies.

 Electronic version

 Keywords:  logistics coordination conflict management distribution logistics distribution network interfunctional conflicts


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