ORGANIZATIONAL MATURITY IN LOGISTICS MANAGEMENT AND ITS IMPACT ON LOGISTICS PERFORMANCE MEASURES.

ABSTRACT

(Dr. Nitzan Swid, Department of Industrial Engineering and Management, Ariel University)

The research considers building a logistics maturity model for organizations. The model is based upon creating a scale that determines levels of logistics maturity and enables ranking the logistics achievement of an organization according to that scale. The need for the research arises from the development of logistics management and the recognition of its valuable contribution to organizations. Most professionals and scholars in the field of logistics agree that it is an area essential to the business world (Rotner & Langley, 2000). A review of the literature indicates the increasing importance of logistics as a main area of supply chain management in a dynamic manufacturing environment (Yoshiaki, 2012). In many areas the management of supply and logistics is a critical factor for the success of organizations. A logistics maturity model is important in identifying an organization’s activity in this area. The development of various organizational maturity models has shown that the progression through the different levels of maturity creates a competitive advantage for the organization. In addition, the correct order of components in advancing along the roadmap through the levels of maturity is vital for achieving success (MaCormak, 2009).

The contribution of the maturity model constructed in the research is that the recognition of a relationship among an organization’s place on the maturity model, its logistic success, and the identification of turning points in the progression among the levels will encourage organizations to identify their places among the different levels. It also will motivate them to improve their logistics performance in order to advance in their maturity levels. Similarly, with the assistance of the logistics maturity model, new organizations will be able to follow the development and creation of a logistics system that will be efficient, supervised, and measurable. These are all essential factors for improving the performance level of the system in a way that is planned and controlled.