Overcoming logistical problems in organizations : The case of Elicom AB

Abstract: This paper presents an empirical case study of the company Elicom AB. Elicom AB is producing electrical devices that are mostly used in the telecom market where the main customers are. The data that was collected from this case was collected through observations, interviews and the study of company documents. This allowed the author to compare secondary and primary data, as well as quantitative and qualitative information. The problem, the company is facing in the logistical field, was discovered in the labeling production process. The production of the labels is unnecessarily complicated and inefficient due to incompatibility of the computer systems. Therefore some parts of the label design have to be made manually, even though the company has a scanning system. When analyzing the problem in detail it became clear to the author that it could be fixed easily and fast and that the key individuals involved in the process already knew the answer to the problem. Therefore the question of the underlying cause of the problem arose. Why has the company not yet fixed the problem if it is so obvious and also everybody in the organization is aware of it? When further reanalyzing the problem, the author discovered a second problem, which was not lying in the logistics of the production process, but had its roots in the organizational structure. The problem of interfering authorities and responsibilities made it impossible for the company to overcome the changes needed to solve the logistical problem in the labeling production process. Therefore this problem must be addressed first, together with overcoming the obstacles to change in the organization, to make a problem-solving-process in the logistical area possible. In general this paper shows the interrelation of logistics with organization and the highly complex environment manufacturing companies are facing when it comes to changes in the production process.