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Features of Logistics

Features of Logistics

As a logistics, the system can be considered as an industrial enterprise, territorial-production complex, and commercial enterprise. The purpose of the logistics system – delivery of goods and products in a given place, in the right quantity and variety, as much as possible prepared for production or personal consumption for a given level of costs. Logistics system – a relatively stable set of links of functional units of the company, as well as suppliers, customers and logistics intermediaries are interconnected and integrated unified management of the corporate strategy of business organization. The term logistics network allows a shorter definition. Logistics system – a set of logistics network and system administration, formed a company to implement its logistics strategy (tactics). Logistics management system, like any system, the reality may be at different stages of development and different degrees of completeness of coverage of the various components of production and marketing. Logistics systems for the first degree of completeness of coverage of components typical of the functions of the organization of storage products, ready for dispatch, and transportation to consumers. This system provides damping at the output through proper and timely response to the daily peaks and fluctuations in consumer requests and unanticipated delays in product delivery in meeting these requests. Logistics systems for complete coverage of the second degree is characterized by the spread of the components of their competence to output the actual production. Such systems, along with coverage of transportation of producs to consumers and stores ready for dispatch products that tend to systems of first degree of completeness, also include in-plant stocks of finished products. The functions of such systems include order processing, customer service, storage of finished products in the company and management internal stock. Logistics systems for third-degree exhaustiveness, components characteristic, distribution of their competence also (compared with the systems of the second degree of exhaustiveness components) to the input warehouses, the delivery system of raw materials, the procurement and supply, as well as the movement of materials during the manufacturing process. In line with this extended competence, such systems, in addition to the previously discussed, perform the functions of procurement and delivery of raw materials and components, inventory management of raw materials and components, as well as the level of work in progress. Logistics management systems, the third level is to generate preventive effects but is not limited to an adequate response to spontaneous deviations. Finally, the logistics systems of the fourth level extend their competence to all elements and stages of production and sales process, including planning and management of its production. This allows you to combine the results of marketing research to operations planning, production, logistics and finance. Logistics management based on the principle of economic integration and the idea of compromise.