Logistics Functions - Logistics

2.2. Logistics functions

The term & quot; function & quot; means a set of actions that are homogeneous in terms of the purpose of these actions, which is markedly different from the other set of actions that also have a specific goal. The logistic function is an aggregated group of logistics operations aimed at realizing the objectives of the logistics system.

Products having a material form, moving towards the consumer, moves, accumulates in stocks, is packaged, labeled, and also subjected to other transport and warehouse operations. The resulting material flows take place both between enterprises and within a single enterprise.

Products moving from one enterprise to another are part of the material flow that flows through the city, country, or group of countries. This is the so-called material flow at the macro level. Products that advance within a single enterprise form a material flow at the micro level.

At both the macro and micro levels, the management of material flows consists of the following main functions:

o inventory management;

o transportation;

o warehousing (warehouse operations complex).

The composition of the listed functions is logical. In order to ensure the receipt of the right product at the right time to the right place, it is necessary for the manufacturer or the trader to pick up this product, then complete the entire range of transport operations for the physical movement of the product through the chain of participating links in the commodity circulation to the target consumer. In some links of the chain, it will be necessary to create a certain stock of this product. The stock needs to be placed somewhere, possibly repackaged, and also carry out a complex of other operations in the storage areas.

Consider who implements logistics functions at macro and micro levels.

1. At the macro level, material flows are formed as a result of the activities of various enterprises and organizations, the main of which are:

o manufacturing companies - manufacturers of products;

o trading enterprise;

o companies providing transportation services;

o companies that provide warehouse services.

The forces of these enterprises and organizations create and maintain material flows, carry out and control the process of commodity circulation.

In Table. 1 provides a list of basic logistics functions and their approximate distribution among various participants of the logistics process at the macro level.

Table 1

Basic logistics functions and their approximate distribution among different participants of the logistics process at the macro level

The name of the logistics function

Participants in the logistics process

Manufacturing companies

Businesses

Trade

Businesses,

rendering

Transport

Services

Businesses,

rendering

Storage

Services

Inventory management

X

X

Transportation

X

Warehousing:

loading and unloading, acceptance, transfer, storage, storage, packing, marking, and a number of other operations

X

X

X

Material table. 1 gives only the most general idea of ​​the distribution of the basic functions of logistics between the participants of the logistical process at the macro level. For example, the function of transportation here is assigned to enterprises providing transport services. This situation is typical for the economic environment in which the market of transport and forwarding services is developed. Under conditions where there is no rigid civilized competition in this market, the quality of the services provided is low, and the manufacturers and trade enterprises prefer to transport their goods with their own transport. [/

At the micro level, the function of transportation and storage is assigned to the logistics service. Inventory management is carried out by the logistics service in conjunction with the finance department, as well as with the services responsible for the purchase and sale of goods (Table 2).

Table 2

The main logistics functions and their approximate distribution between different participants of the logistics process at the macro level (trading enterprise)

The name of the logistics function

Logistic Process Participant

Service

Logistics

Service

Purchasing

Service

Sales

Service

Finance

Inventory management

X

X

X

X

Transportation

X

Warehousing:

loading and unloading, acceptance, transfer, storage, storage, packing, marking, and a number of other operations

X

Traditionally, each of the functions: inventory management, transportation and warehousing is a fairly separate set of actions, in terms of purpose. In logistics, these functions lose their isolated character and are viewed as components of a single logistics activity, i.e. as a function of logistics. Decisions on stocks are made taking into account the costs necessary for storage and transportation of products. In turn, decisions on transportation are taken taking into account the costs of maintaining stocks. Planning and transportation technology are linked with planning and technology for carrying out warehouse operations, etc. and the like.

A characteristic feature of the complex of logistic functions is that these functions are interconnected and in the aggregate are subordinated to a single goal: the desired product must be in the right place at the right time and with minimal costs.

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