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.
- 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.