Logistics chain provides technological connection of storage and shipment points, during transport of goods. The logistics chain can be defined as a logistics network extending between the markets of supply and sales of finished goods. More specifically, between: manufacturers, suppliers, trade links, logistics services providers and final customers. It involves close cooperation of companies, suppliers, customers and other chain units, enables smooth movement of not only goods, but also the information and financial resources.
Basic processes in logistics chain
The various actions within the framework of the functioning of the logistics chain is one stage of the whole process of movement of goods and services from the producer to the consumer. All operations and processes involving procurement and inventory between individual links of this chain are organizationally and financially consistent. In the logistics chain, we can distinguish several basic processes:
- production management,
- inventory management,
- demand management,
- order fulfilment management,
Logistics chains, differ in the level of complexity and structure (e.g. parallel, serial, and branching), however, we can distinguish four main types of links in any supply chain:
- link (source) for procurement of raw materials,
- links for transportation and supply of raw materials - brokers, sales agents for raw materials and semi-finished products,
- link of manufacture of finished products,
- distribution link – for delivery of finished products to the client.
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