Intergrated Logistics

The success of a business organization to fulfill its goals and maximize its profits depends on the effective deployment of its physical, financial, human and knowledge resources. This requires the process of planning, organizing, leading and controlling of these resources to reach the goals of the organization at the highest possible level of productivity.

Part 1 THE BASIC ELEMENTS OF PLANNING

Contents

1.1 Introduction | 1.2 The importance of planning |

1.3 The planning process | 1.4 Organizational goals and its formulation |

1.5 Setting goals and approaches to setting goals | 1.6 Developing plans: The choice of alternatives1.7 Implementation of the selected plan |

1.1 Planning can be defined as those activities of management that determine the mission and goals of an organization , the manner in which these are to be fulfilled, and the allocation and effective deployment of the required resources. Planning consists of 3 essential dimensions: the determination dimension describes the goals business hopes to achieve by a specific date; the decision dimension determines the actions necessary to achieve these goals; and the future dimension is intended to assist the organization to cope with change.

1.2 Planning gives direction to the organization. It helps to coordinate the different functional areas to work together. Planning assists the organization to anticipate changes and reflect on how these will influence the organization. In addition planning promotes cohesion between the interdependent functional management areas, ensures stability, and ensures that a business stays abreast of technology.

1.3 The planning process can best be described by the following figure

1.4 The purpose of goals is to provide direction to the organization, and to serve as a benchmark for performance measurement and control

Goals are set in relation to the mission of the organization, the environment in which the organization operates, the values held by management,...