Integrative function of logistics

Treatment of logistics activities in enterprise as source of competitive advantage is related with possibility of increasing the attractiveness of the offer by increasing the level of product quality and lowering their prices. Crucial role in this regard plays improved flow of goods and information, not only within the company but also between cooperating individuals, from raw materials suppliers to ultimate buyers. The nature of improvements, as well as the results achieved after their introduction, however, depend largely on ensuring the integration of logistics operations, first in the company, and consequently also between the aforementioned cooperating units.

Integration of activities in the field of goods flows and related information plays a crucial role (adds value) from the point of view of the impact of logistics solutions in the enterprise on speed of execution of orders, as well as responsiveness to changing customer expectations. A manifestation of desire for integration in this area is use of systemic approach in logistics. Because of the perceived impact on the competitiveness of the logistics, it is treated as key area of management within the company. Definitions of logistics accent various management functions.

Logistics and integration

Logistics improves integration in several ways:

• Streamlining of supply chain operations: Logistics activities such as inventory management, transportation, and distribution help to optimize the flow of goods and information throughout the entire supply chain, reducing delays and increasing efficiency.
• Improved coordination between internal departments: Logistics activities often involve coordination between different departments within a company, such as production, sales, and marketing. By improving the flow of information and goods, logistics helps these departments to work together more effectively.
• Better communication with external partners: Logistics also helps to improve communication and coordination between a company and its external partners, such as suppliers and customers.
• Increased flexibility and responsiveness: Logistics activities such as warehousing and transportation enable companies to quickly respond to changing customer needs and market conditions, which helps to increase overall competitiveness.
• Use of technology: Advancements in technology like automation, data analytics, and cloud computing have made it possible to integrate logistics activities more effectively and efficiently.

Integrative function of logistics — recommended articles

Logistic center — Principles of Supply Chain Management — Logistics information system — Material stream — Added value (logistics) — Logistics chain — Supply logistics subsystem — SCM system — Efficient Consumer Response

References

• Abdur Razzaque, M., & Chen Sheng, C. (1998). Outsourcing of logistics functions: a literature survey. International Journal of Physical Distribution & Logistics Management, 28(2), 89-107.