Экономические науки/11.Логистика

BehlaYuliyaMychailivna, КhomenkoTetianaVasylivna

Vinnitsia Institute of Trade and Econcmics of

Kyiv National University of Trade and Econcmics, Ukraine

Logistics

Logistics is the regulation of the resources flow between the starting and the point of destination in order to meet some requirements, for example of customers or corporations. The regulation of resources in logistics can include tangible items such as food, materials, equipment, liquids, and staff as well as abstract items such as information, particles, and energy. The logistics of physical items usually involves the integration of information flow, material handling, production, packaging, inventory, transportation, warehousing, and often security. The complexity of logistics can be modeled, analyzed, visualized, and optimized by dedicated simulation software. Minimizing use of resources and time are common goals.

Logistics is one of the main functions within a company. The main objectives of logistics can be divided into performance related and cost related, for example, high due date reliability, short delivery times, low inventory level and high capacity utilization. When decisions are made, there is a trade off between targets.

Inbound logistics is one of the primary processes and it concentrates on purchasing and arranging inbound movement of materials, parts and/or finished inventory from suppliers to manufacturing or assembly plants, warehouses or retail stores.

Outbound logistics is the process related to the storage and movement of the final product and the related information flows from the end of the production line to the end user.[2]

Given the services performed by logisticians, the main fields of logistics can be broken down as follows:

Procurement Logistics

Production Logistics

Distribution Logistics

After sales Logistics

Disposal Logistics

Reverse Logistics

Procurement Logistics consists of activities such as market research, requirements planning, make or buy decisions, supplier management, ordering, and order controlling. The targets in procurement logistics might be contradictory - maximize the efficiency by concentrating on core competences, outsourcing while maintaining the autonomy of the company, and minimization of procurement costs while maximizing the security within the supply process.

Production Logistics connects procurement to distribution logistics. The main function of production logistics is to use the available production capacities to produce the products needed in distribution logistics. Production logistics activities are related to organizational concepts, layout planning, production planning, and control.

Distribution Logistics has, as main tasks, the delivery of the finished products to the customer. It consists of order processing, warehousing, and transportation. Distribution logistics is necessary because the time, place, and quantity of production differs with the time, place, and quantity of consumption.

Disposal Logistics' main function is to reduce logistics cost(s), enhance service(s), related to the disposal of waste produced during the operation of a business.

Reverse logistics stands for all operations related to the reuse of products and materials.The reverse logistics process includes the management and the sale of surplus as well as returned items of products.[3]

Business logistics

One definition of business logistics speaks of "having the right item in the right quantity at the right time at the right place for the right price in the right condition to the right customer". As the science of process, business logistics incorporates all industry sectors. Logistics work aims to manage the fruition of project life cycles, supply chains and resultant efficiencies.

Logistics as a business concept evolved in the 1950s due to the increasing complexity of supplying businesses with materials and shipping out products in an increasingly globalized supply-chain, leading to a call for experts called "supply chain logisticians".

In business, logistics may have either internal focus (inbound logistics), or external focus (outbound logistics) covering the flow and storage of materials from point of origin to point of consumption (see supply-chain management). The main functions of a qualified logistician include inventory management, purchasing, transportation, warehousing, consultation, and the organizing and planning of these activities. Logisticians combine a professional knowledge of each of these functions to coordinate resources in an organization.

There are two fundamentally different forms of logistics: one optimizes a steady flow of material through a network of transport links and storage nodes; the other coordinates a sequence of resources to carry out some project.

Production logistics

The term production logistics describes logistic processes within an industry. Production logistics aims to ensure that each machine and workstation receives the right product in the right quantity and quality at the right time. The concern is not the transportation itself, but to streamline and control the flow through value-adding processes and to eliminate non–value-adding processes. Production logistics can operate in existing as well as new plants. Manufacturing in an existing plant is a constantly changing process. Machines are exchanged and new ones added, which gives the opportunity to improve the production logistics system accordingly. Production logistics provides the means to achieve customer response and capital efficiency.

Production logistics becomes more important with decreasing batch sizes. In many industries (e.g. mobile phones), a batch size of one is the short-term aim, allowing even a single customer's demand to be fulfilled efficiently. Track and tracing, which is an essential part of production logistics—due to product safety and product reliability issues—is also gaining importance, especially in the automotive and medical industries.

Logistics management

Logistics is that part of the supply chain which plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customer and legal requirements. A professional working in the field of logistics management is called a logistician.

Logistics management is known by many names, including:

Materials Management

Channel Management

Distribution (or Physical Distribution)

Supply-Chain Management

The Chartered Institute of Logistics & Transport (CILT), established in the United Kingdom in 1919, received a Royal Charter in 1926. The Chartered Institute is one of the professional bodies or institutions for the logistics and transport sectors, that offers professional qualifications or degrees in logistics management.[1]

Warehouse management systems and warehouse control systems

Although there is some functionality overlap, warehouse management systems (WMS) can differ significantly from warehouse control systems (WCS). Simply put, a WMS plans a weekly activity forecast based on such factors as statistics and trends, whereas a WCS acts like a floor supervisor, working in real time to get the job done by the most effective means. For instance, a WMS can tell the system it is going to need five of stock-keeping unit (SKU) A and five of SKU B hours in advance, but by the time it acts, other considerations may have come into play or there could be a logjam on a conveyor. A WCS can prevent that problem by working in real time and adapting to the situation by making a last-minute decision based on current activity and operational status. Working synergistically, WMS and WCS can resolve these issues and maximize efficiency for companies that rely on the effective operation of their warehouse or distribution center.[1]

References:

1.Ballou, R.H., Business Logistics Management: Planning, Organizing, and Controlling the Supply Chain, 4th Ed., Prentice Hall, 1998. – 234 p.

2.Bowersox, D.J. and D.J. Closs, Logistical Management: The Integrated Supply Chain Process, McGraw Hill, 1996. -278 p.

3.Coyle, J.J., E.J. Bardi, and C.J. Langley, The Management of Business Logistics, 6th Ed., West/Wadsworth, 1996.-121 p.