Logistics chain

Logistics chain
See also
Logistics system Production logistics subsystem Value chain model SCM system Added value (logistics) Inventory costs Boundaries of the enterprise Optimization of transport Types of supply

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,
• procurement.

Types of links in logistics chain

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.

See also:

• Added value (logistics)

References

• Gibson B.J., Mentzer J.T., Cook R.L. (2005), Supply Chain Management: The Pursuit Of A Consensus Definition. "Journal Of Business Logistics", 26: p. 17–25. doi: 10.1002/j.2158-1592.2005.tb00203.x
• Lambert, D. M., & Cooper, M. C. (2000). Issues in supply chain management. Industrial marketing management, 29(1), 65-83.
• Salik R. Yadava, Nishikant Mishrab, Vikas Kumarc, M.K. Tiwarid, A framework for designing robust supply chains considering product development issues, International Journal of Production Research, Volume 49, Issue 20, 2011
• Walker W.T., Supply Chain Construction: A Blueprint for Networking the Flow of Material, Information and Cash, CRC Press LLC, Boca Raton, London, New York, Washington, D.C., 2015
• Zacharia, Z. G., Sanders, N. R., Fugate, B. S. (2014), Evolving Functional Perspectives Within Supply Chain Management. "Journal of Supply Chain Management", 50: p. 73–88. doi: 10.1111/jscm.12022