Logistics system

The components of enterprise logistics system are:

• Goal: The overall objective of an enterprise logistics system is to optimize the flow of goods, services and information in order to meet customer demands while minimizing costs.
• Results of operation: This includes the final products or services that are delivered to customers, as well as any after-sales service and post-warranty services that are provided.
• Inputs: These include raw materials, intermediate products, energy, information, and people. Raw materials are used to create the final products, intermediate products are used in the manufacturing process, energy is needed to power the equipment and vehicles, information is used to manage and track inventory and orders, and people are needed to operate the equipment and manage the logistics process.
• Processing: This involves any changes in the physical or chemical properties of the inputs, as well as any installation or assembly required to create the final products.
• Environment: The external factors that shape an enterprise logistics system include suppliers, customers, business partners, and competitors. These entities provide the inputs and determine the demand for the final products.
• Equipment: Buildings, machinery and equipment, vehicles, and human resources are all necessary components of an enterprise logistics system. Buildings and equipment are used for storage and manufacturing, vehicles are used for transportation, and human resources are needed to operate the equipment, manage the logistics process, and provide customer service.

Depending on the production, service or the nature of the business, there may be differences in the shape of each listed logistics system components.

Logistic subsystems

On the basis of the main functions performed in the various stages of the flow of goods and accompanying information in the logistic system enterprises can extract several subsystems:

• Supply logistics subsystem
• Production logistics subsystem
• Distribution logistics subsystem
• Returns of goods, waste and recyclables logistics subsystem
• Added value (logistics)
• Logistic audit
• Logistics information system

Logistics system — recommended articles

Value chain model — Production — Functions of logistics — Direct material — Production - forms of organization — Logistic process — Coordinative function of logistics — Operational management — Dependent demand

References

• Andersson, P., Aronsson, H., & Storhagen, N. G. (1989). Measuring logistics performance. Engineering Costs and Production Economics, 17(1-4), 253-262.
• Barad, M., & Sapir, D. E. (2003). Flexibility in logistic systems—modeling and performance evaluation. International Journal of Production Economics, 85(2), 155-170.
• Bowersox, D. J., Closs, D. J., & Cooper, M. B. (2002). Supply chain logistics management (Vol. 2). New York, NY: McGraw-Hill.