Logistics Processes and Operations - Logistics and Supply Chain Management

Logistics processes and operations

Traffic flow in logistics, creation and maintenance of reserves initiate and support processes and operations.

In the general view, process (from Latin processus - promotion) is 1) the successive change of phenomena, states in the development of something; 2) a sequence of sequences -

Table 2.7

Comparative characteristics of inventory management systems

System

Control

Inventory

Characteristic

Systems

Advantages and Disadvantages

Feasibility of application

System with fixed order size

Means the receipt of materials by equal, pre-determined batches at different time intervals

Advantages:

the materials are delivered in equal lots, which reduces the costs of shipping and creating inventories.

Disadvantages:

Systematic control is required (costs increase but storage); high single costs for acquiring resources;

high cost of storage; a high level of damage in case of losses; unpredictability of the nature of demand

Applies:

for high-value goods and materials;

if the goods constitute only a small fraction of the products produced by the supplier; there is a regular inventory check; physical availability of goods is easily accountable

A system with a fixed periodicity

Assumes the receipt of materials in different batches at regular intervals

Advantages:

Simplicity;

stock regulation occurs once between order periods.

Disadvantages:

the need to order even for a small amount of resources; the risk of a deficit

Applicable: for cheap goods; when storage costs are negligible;

if the stock has run out; when the material is ordered, one of many, from one supplier; when the discounts essentially determine the consignment of the ordered goods; at a relatively constant level of demand

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To take any action to achieve a result. In this definition, two aspects are reflected: the dynamics and focus on the result, which allows us to distinguish the nature of processes - processes can be self-developing and manageable.

Logistics deals with managed processes that stand out among many other processes with a similar nature in the category of logistics processes.

Logistic Process is a sequence of operations performed in time and space, subject to the achievement of the objectives of the economic system, applying the principles and methods of logistics. Concreteness in the content of this concept arises on the basis of the statement of the initiating role of the logistical process in relation to flows, which is emphasized by the notion of the flow process as the set of objects that are located Golikov EA Marketing and Logistics : Textbook. allowance. M: Dashkov and Co., 1999. P. 189.}}.

Streaming processes show their result in the expedient flow of streams. At the same time they have an impact on stocks. Thus, the production reserve is formed under the influence of two processes: the supply of goods to the warehouse of the manufacturing enterprise and the release of material resources into production. These same processes ensure the movement of the value of the production stock from the maximum level at the time of the next delivery of the goods to the point of issue of the purchase order for the next batch and the minimum level at the time of delivery of the next batch.

Logistic processes are amenable to classification by many features (Table 2.8).

Table 2.8

Classification of logistics processes

Classification Criterion

Classification process grouping

The substance of the flow

Processes with material objects. Processes with intangible objects

Composition of flow objects

Processes with homogeneous objects.

Processes with heterogeneous objects

Content

Business Processes.

Marketing processes.

Technological processes.

Management Processes

Composition and degree of difficulty

Complex processes.

Elementary Processes

Economic Character

Product processes.

Non-Commodity Processes

Commercial evaluation of the result

Business processes.

Processes that support business processes

Reproduction attribute

Production processes.

Distribution processes.

Exchange processes.

Consumption Processes

Nature of development

Discrete processes.

Continuous processes

The way of space-time organization of the movement of objects

Sequential processes.

Parallel processes.

Sequential-parallel processes

Ability to negotiate thread parameters

Processes with synchronized operations.

Processes with nonsynchronized operations

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Differences in the substance of the logistic flow allow us to subdivide the logistical processes into tangible and intangible ones. Material processes are performed with material values, i.e. natural-physical, physical objects; intangible processes, respectively, with intangible values, i. objects, such as in the logistics are money, information, services. At the same time, information is increasingly viewed not only as a resource that serves the movement of material, financial and other flows, but also as a resource for the production of high technology products, existing as research, design and technological work.

The composition of controlled flow objects is initially distinguished by logistic processes with homogeneous objects, for example, only material processes of the movement of raw materials, materials, components, finished products. Such streaming processes, as well as the objects themselves, can be subjected to further, intra-group classification in the context of nomenclature units. At the same time managed in the logistics of notes can be represented in a combination of material, financial, information and other flows - this combination is called the integrated flow, and the processes performed with it - processes with heterogeneous objects.

From the content point of view, i.e. by designation and role in logistics, logistical flow processes are divided into commercial, marketing, technological and managerial. This division is determined by the interdisciplinary basis of logistics, which is connected with commerce, marketing, management, as well as a number of technical disciplines that are responsible for the technological support of the movement in the development of flow processes.

Commercial processes are expressed in the performance of commercial transactions, their classic example is the preparation and execution of a commercial transaction in the form of a contract of supply, lease, paid provision of services, etc. At the same time, the contract becomes a document, under which the processes of commodity circulation are carried out and calculations are performed.

Marketing processes in logistics perform the preparatory function in relation to commercial processes. They serve the formation of a flow-forming object, for example, the creation of a so-called reinforced product, where reinforcement is a service that conveys value added as tangible and intangible properties in accordance with the need identified by marketing.

Technological processes provide the movement of objects that make up the substance of flows, in space and in time. The classic example of the technological process in logistics are the processes of commodity circulation. They are carried out in relation to material objects (raw materials, components, components, finished products), provide for the implementation of transport, storage operations, operations related to the preparation of material resources for production consumption, the transformation of the production range into a commodity assortment, etc. In a combination of homogeneous the content of transport, warehouse, preparatory operations are formed the same technological processes - transport, storage, preparatory.

Technological processes in logistics are made not only with material, but also with non-material objects, which are financial means and information. The process of flow of financial flows determines the technology of cash and non-cash, non-cash and cash settlements. Due to the fact that information flows in logistics are viewed as serving the relation to material and financial flows, the movement of information flows becomes largely derivative, i.e. the flow of the flows they serve. At the same time, however, the flow of information flows can and must be carried out using special information technologies, using professional programs.

Management processes are implemented through the management of the managed object and are detected in its behavior. They are committed in relation to material and non-material objects, forming and supporting the movement of flows, including homogeneous ones made up of objects of the same species, and heterogeneous, integrated flows.

The regulation of logistics processes is technology. Traditionally, technology is considered applied to the same name, i.e. actual technological processes; in a unified form it is described by technical standards, technical conditions. However, in reality, technology (from Greek techne - art, skill, skill), understood as a method, exists for other logistic processes. Thus, commercial processes regulate the technology of preparation and conclusion of a transaction, each of which establishes a certain stage of work performance; for example, the technology of concluding a commercial transaction involves preparing and conducting negotiations with potential partners, concluding a deal. The regulations of such processes are determined taking into account the norms of civil law - domestic and international. The technology of managerial processes is expressed in the procedures for justifying and making managerial decisions, preparing data, collecting and processing information. Management technologies are described by methods, regulated by the same standards, for example, enterprise standards. Separate management procedures are regulated by special standards of a wider scale, in particular, by international quality standards, as well as by special legal norms, such as customs legislation, etc.

Commercial, technological and managerial processes in logistics consist of a certain coherence. For example, commercial processes for the preparation and execution of a transaction find their continuation in the technological processes of execution of the transaction and are manageable through transaction management. When executing a supply contract, technological processes are accompanied by commercial processes in that part of the economic relationship established between partners that ensures the movement of commodity-material flows from the supplier to the buyer (the transportation process), the movement of cash flows in the order of performing settlement for the delivery, documentary support of the transaction and pr.

The composition and complexity of logistics processes are divided into complex and elementary.

Complex processes are most often associated with certain functional areas of the enterprise (material and technical supply, production, sales of finished products) or the fulfillment of customer orders. They can be made up of homogeneous and heterogeneous logistic processes, for example, in a trade and intermediary enterprise, the complex process of fulfilling a purchase order involves the purchase, delivery to a warehouse, storage and shipment of goods to the customer's manufacturer in batches agreed with the rhythms of launching into production . The constituent elements of the complex process most often lend themselves to further structuring up to elementary processes, and vice versa, bearing in mind that elementary processes serve as the basis for the formation of complex processes. Sometimes they are called operational processes, and this highlights the operational composition of the processes due to their technology.

By logistics operation is understood the elementary part of the process, stable in content and having an independent goal. The operation is characterized by a set of resources used, the quantitative and qualitative characteristics of the products obtained as a result of its implementation, as well as the permissible technological methods for converting resources into products. For example, the technological process of transportation consists of operations of cargo handling (packing, packing), loading into a vehicle, transportation, unloading.

The result of the operation is determined by the actions of the executing agent, as well as uncontrolled factors that create the conditions for its conduct. Depending on the degree of awareness of the performer, uncontrolled factors can be fixed (the meaning is known), random fixed (the law of their distribution is known) and uncertain, for which only a possible area of ​​change is known, either because of limited knowledge, or due to the actions of others and behavior of objects that are beyond the scope of the operational capabilities of the performer. The professional and personal characteristics of the performer, as well as uncontrolled factors, appear as risk factors that cause deviations in the expected results from those actually obtained during the operation.

The division of logistics processes on the operation is important for the organization of work and the provision of managerial influences. From the point of view of the organization of labor employed in these processes, a deeper structuring is possible, namely, the division of operations into receptions, and the latter to actions.

According to the economic sign, the logistical processes are classified into commodity and non-commodity processes.

Commodity processes assume in its development a change in the object of the form of value and the change of the owner. For example, the process of selling goods for the seller means the transfer of a material object from the consumer (commodity) form of value to the equivalent (monetary) and the seller's transfer of ownership to the buyer. Similar conversions, to the exact opposite, take place in the process of purchasing goods. Non-commodity processes do not reveal such transformations, in relation to material objects they are most often associated with the storage of production and commodity stocks in the warehouses of the manufacturing enterprise, the material and technical support of production, other types of economic activity, and manifest themselves, in particular , in in-process material flows and in-progress flows.

From the point of view of the commercial evaluation of the result, the processes in logistics are divided into business processes directly accompanied by profit, and processes that support business processes. A classic example of a business process is the process of selling commodity products by the manufacturer. At the same time, the procurement process and the production process, and sometimes the development of the product, are considered as providing for it in the scale of the enterprise. Business processes also present the processes of after-sales services, sales of waste products, etc. As a rule, business processes are complex, combining commercial, technological and managerial processes.

However, in violation of the strict semantic meaning of the term & quot; business process & quot; in the scientific literature and in practice, its broad interpretation is allowed, which provides for the subdivision of business processes into main processes that are turned into the external environment, and auxiliary, addressed to the internal environment of the enterprise.

This aspect is reflected in the classification of logistics processes according to the reproduction criterion, according to which they are subdivided into production, distribution, exchange processes and consumption processes, corresponding, respectively, to the stages of production, distribution, exchange and consumption. With regard to the production enterprise, they degenerate into the processes of material and technical supply, production and marketing of finished products. Each of them appears as a combination of commercial, technological and managerial processes, including the production process, bearing in mind that this process, generally not associated with commercial operations, can be performed on an outsourcing basis.

By nature of development, logistical processes are divided into discrete and continuous. Discreteness means the discontinuity of processes - this feature has commercial processes: they are tied to a specific time and have a start and end date . Discreteness is opposed to the continuity of processes. Continuous processes can be linear, for example, a production process on a production line with a regulated rhythm and multiple productivity on all line operations, and cyclic. A typical cyclic process representative is the control process performed in the sequence of functions - marketing logistics, planning, organization, accounting and control, analysis, regulation, closed to the contour directly and through logistic coordination (Figure 2.2).

Functional control loop

Fig. 2.2. Functional control loop

According to the method of space-time organization of the movement of objects, there are sequential, parallel and sequential-parallel processes. Their features are viewed from the names. At the same time, parallel processes can be equally directed, for example, the supply of goods to the enterprise by various suppliers, and counter-directed, for example, the supply of materials to the production and export of waste. Counter-directed processes are, in particular, the processes of commodity circulation and the processes associated with the execution of settlements for deliveries.

If possible, the reconciliation of flow parameters distinguishes processes with synchronized and unsynchronized operations. This is the least studied aspect of the classification of logistical processes, it assumes knowledge of the characteristics of the streaming processes that can be produced synchronization. According to the general rules, the flow movement is estimated by the parameter of the number of objects per unit of time, however, separate meaningful groups of logistic processes need special characteristics, for example, for commercial processes, the effect of the exchange equivalence principle in delivery operations becomes actual.

Based on the foregoing, you can see that the processes managed in logistics exist as an organized movement of structured flows with a division of them into homogeneous ones consisting of objects of the same kind, and heterogeneous (integrated), combining heterogeneous objects.

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