Within logistics networks, the business performance is specified by a variety of agents, processes, available means of labour, and kinds of goods. Process of the transformation of the latter can be represented in three different ways, among which is macrologistics (description of the traffic system or the suitable infrastructure for the logistical core functions of warehousing and transshipment). Also there are micrologistics (representation of microeconomic systems using logistical functions which in most cases are characterized by the respective sector), and metalogistics (description of cooperation of all kinds between independent organizations). Each of these can be used to categorize logistical processes.
The information on the Elements of Logistics is given in Fig. 2.5.
Distinction between Procurement Logistics, Production Logistics and Distribution Logistics
The distinction between the tasks and their definitions as well as the use of functions (the range of which is shown in Fig. 2.6) is very difficult and only possible in highly general terms. In operational practice, the basic individual business task areas are diversely assigned within the organizational structures of the companies, and this allocation is depicted in Fig. 2.7.
First, there is procurement logistics, which is responsible for the physical processes involved in the transportation processes of both industrial and trading companies. Procurement logistics’ aim is to ensure the economic materials supply (whish occasionally includes production and distribution), or the supply of processing-requiring goods.
Then, there is production logistics, the duty of which is to deal with all tasks related to the planning and controlling of the internal materials flow, storage and transport.
Finally, distribution logistics is mainly connected with the coordination of delivering-related processes.
A service level needs to be once defined in order to determine the extent and quality of business performance, and to make a company able to make an adequate offer of logistical service; and the individual determinants of the service level are given in Fig. 2.8.
Mainly, the goods, customer requirements, levels of competitors, and capabilities of the company determine the service level and the features of the delivery service.
The division of labour is the specialization of cooperating individuals who perform specific tasks and roles.
Flow Management is a method of efficiently managing something, in this case the flows of human resources, materials, goods etc.
Transshipment is the shipment of goods or containers to an intermediate destination, then to yet another destination.
Invoice processing involves the handling of incoming invoices from arrival to post.
An invoice is a commercial document issued by a seller to a buyer, relating to a sale transaction and indicating the products, quantities, and agreed prices for products or services the seller had provided the buyer.
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