Potential for coordination and integration of logistics activities in temporary settings

Paper in proceeding, 2005

Temporary logistics solutions are set up to supply project sites with material for a limited period of time. To carry out projects and their temporary logistics solutions, temporary organisations are formed. In the article the division of responsibility for procurement, transport and handling of material needed to undertake projects is examined. This forms the basis for a discussion about the possibility for temporary organisations to coordinate and integrate logistics activities within and across organisational boundaries. The findings presented are based on three case studies from projects representing a broad range of businesses. Findings show that responsibility for project work often is divided between numerous organisations and organisational work groups and that accountability for the production of a module or sub-task brings with it responsibility for all logistics activities associated with it. Production work is managed using hierarchical structures but logistic activities are seldom coordinated centrally. However, it is possible for temporary organisations to obtain considerable coordination and also some integration advantages for logistics activities in temporary settings. This can be obtained by 1) separating sourcing and vendor selection from ordering and have one organisation handle all ordering 2) use one logistics service provider for as many transport and handling activities as possible and 3) move value adding activities, normally undertaken at the site, upwards in the supply chain.