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


Published in Distribution logistics

MAGAZINE  №4 (93) August 2019


CATEGORY Logistic integration and coordination Human resource management and motivation


Logistics occupies an important role in the organizational structure of modern business management. With the transition to the concept of supply chain management (SCM), its responsibilities also include coordinating functions. On the other hand, SCM is a critical area for multinational corporations with enough market power. This article aims to bring together scientific knowledge in the field of organizational design of multinational corporations (MNC) and the construction of organizational structures for logistics management.

A key feature of designing the organizational structure of logistics management in MNCs is the increased importance of national culture. This is confirmed by the articles on the role of the human factor in the SCM. Besides, other articles show the influence of the national culture criteria on the practices of crossfunctional coordination. In this regard, it is important not only to understand the peculiarities of national cultures, but also to be able to use them when implementing SCM practices, in other words, to be culturally intelligent. The article demonstrated the possibility of considering these characteristics both in theoretical terms and in practice, using an illustrative example of a large MNC. In addition, the specificity of the divisional organizational management structure development was demonstrated, where, on the one hand, both regional and product specificities are considered, on the other, the principle of dual subordination is absent. The developed methodology seems to be effective as it expands the knowledge of the manager responsible for building a rational organizational structure for managing logistics.

 Electronic version


MAGAZINE №5 (76) October 2016


CATEGORY Logistic integration and coordination


The article embraces the study of the major approaches to coordination and intra-organizational conflict management in the management theory. The purpose of the study is to raise efficiency and effectiveness of the logistics coordination. Foreign sources as well as the results of the author’s own empirical research, employing methods of questionnaire survey and statistical data analysis, prove that the issues of interfunctional coordination are of high importance for the absolute majority of business organizations. One of the main reasons for that lies in the dominance of the linear-functional type of organizational structure featuring artificial barriers between the company departments. The author reviews standpoints of the representatives of the classical management theory, human-relations school, systems and contingency theories. With regard to each school the paper exams priority means of interfunctional coordination along with the major strategies for interdepartmental conflict management. Based on the research and application of the comparative analysis method, the author suggests systematization of the approaches to interfucntional logistics coordination and outlines respective coordination mechanisms (means of hierarchy, horizontal communication, standardization of the processes, their results, skills and competencies as well as norms and values). The article reveals a number of contingency factors that influence the selection of interfunctional logistics coordination mechanisms along with the choice of appropriate strategy for the organizational conflict management. The author proves the effectiveness of «compromise» and «cooperation» strategies in tackling interfunctional logistics conflicts and describes major conditions of their choice. The paper finally shows that coordination tools and ways of settling conflicts developed in the theory of management can be applied to solve logistics issues in organizations of various business environment.



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