Increasing the logistics performance by coordinating incentive systems on logistical objectives by using an socio-technical controlling for order processing

Many small and medium enterprises (SMEs) miss their logistics objectives. In science and practice there is a growing recognition that the problems of production planning and control (PPC) cannot be solved only by the development and use of software tools. PPC systems usually have limited degrees of freedom for carrying out the tasks given to the employee. Many methods of PPC systems have the potential of influencing the behavior and performance of employees. The development of a logistics-oriented incentive system can support the logistical goal achievement of SME. Aligning incentives on operational logistics objectives anchors the objectives in the employees’ personal consciousness and everyday commitment the employees’ actions to support the logistics performance on the production level.

controlling, logsitic performance indicators, incentive system,

The performance in logistics is vitally important for Companies. However the achievement of logistics objectives is deflating in practice. A possible reason are divergent employee and company interests, which constrict an efficient order processing. Once more employees are in focus in research and practice. How to resolve these differences in employee and company interests to enhance logistics? The Incentive System which is developed by IFA and IPH in Hannover provides solutions for an effective support of logistic objectives.

incentive system, logistics, divergent employee and company interests