What concerns logistics activities. Logistics operations and processes

material flow logistics

Concept of logistics operations

A logistics operation is any elementary action (set of actions) leading to the transformation of parameters of material and/or related information, financial, service flows that is not subject to further decomposition within the framework of the assigned task of administering or designing a logistics system.

The material flow is formed as a result of a set of certain actions with material objects. These activities are called logistics operations. However, the concept of a logistics operation is not limited to actions only with material flows.

To manage the material flow, it is necessary to receive, process and transmit information corresponding to this flow. The actions performed in this case also relate to logistics operations.

In general, logistics operations are defined as a set of actions aimed at transforming material and/or information flow.

Classification of logistics operations

• 1. Upon transfer of ownership of the goods
• · One-sided (without transition)
• · Double-sided (with transition)
• 2. According to changes in consumer properties
• ·Value added
• · No added value
• 3. By the nature of the flow
• With material flow
• · With information flow
• 4. According to the focus of the logistics functions being implemented
• · External (supply and sales functions)
• · Internal (within the production function)
• 5. Type of logistics functions implemented
• · Basic (supply, production and sales)
• · Key (purchasing management, transportation, inventory management, etc.)
• · Support (warehousing, cargo handling, protective packaging, ensuring the return of goods, etc.).

Logistics operations with material flow include loading, transportation, unloading, picking, warehousing, packaging and other operations. Logistics operations with information flow are, as noted, the collection, processing and transmission of information corresponding to the material flow. It should be noted that the costs of performing logistics operations with information flows constitute a significant part of logistics costs.

Performing logistics operations with material flow entering or leaving the logistics system differs from performing the same operations within the logistics system. This is explained by the transfer of ownership of the goods and the transfer of insurance risks from one legal entity to another. On this basis, all logistics operations are divided into one-way and two-way.

Some logistics operations are essentially a continuation of the technological production process, for example, packaging. These operations change the consumer properties of the product and can be carried out both in the sphere of production and in the sphere of circulation, for example, in the packaging workshop of a wholesale warehouse.

Logistics operations performed in the supply process of an enterprise or sales finished products, i.e., operations performed in the process of “communication between the logistics system and the outside world” are classified as external logistics operations. Logistics operations performed within the logistics system are called internal. Uncertainty environment, first of all, affects the nature of the execution of external logistics operations.

In the most in general terms from the perspective of logistics, the emergence, transformation or absorption of small business in a certain economic object, functioning as an integral system, is studied. Thus, the actions applied to the MP in this system are determined. These actions are called logistics operations and logistics functions (in a generalized version - logistics activities).

Logistics operation (elementary logistics activetion) is any action that is not subject to further decompositionpositions within the framework of a given research or management task, relatedassociated with the emergence, transformation or absorption of materialnal and accompanying flows (information, financial, service).

Logistics operations include, for example, such actions performed on material resources or finished products as loading, unloading, packaging, transshipment from one mode of transport to another, sorting, consolidation, disaggregation, labeling, etc.

Logistics operations associated with related information and financial flows can be the collection, storage and transmission of information about material flow, settlements with suppliers and buyers of goods, cargo insurance, transfer of ownership of goods, etc.

Logistics function (comprehensive logistics activity)is called a separate set of logistics operations, directionsdedicated to the implementation of the goals set for the logistics system and(or) its task links.

Among the complex logistics activities at the level of business organization, it is customary to highlight the following (Fig. 1.5):

1) basic (inherent in almost any commodity producer):

supply (purchases);

production;

sales (distribution);

2) auxiliary (supporting):

warehousing;

transportation;

service support;

information support.

9. Logistics system, logistics links, supply chain

The combination of logistics operations into logistics functions primarily depends on the type of logistics system, i.e., on the set of functional subsystems in a specific logistics system. Therefore, one of the most important concepts in logistics is the concept of a logistics system.

Logistics system (LS)- complex organizational-completednary (structured) economic system, which consistsfrom elements-links (subsystems) interconnected in a single processmanagement of material and related flows, and the tasksthe functioning of these links are united by the internal goals of the organizationbusiness goals and (or) external goals(Fig. 1.6).

The ability to plan various operations and analyze the levels of elements of the logistics system predetermined its division into macro- and micrologistics. In table 1.2 shows the structure of the functions of macro- and micrologistics.

Macrologistics resolves issues related to market analysis of suppliers and consumers, development of a general concept of procurement and distribution. Objects controlled by macrologistics are legally independent enterprises. The interaction between them is based on commodity-money relations and is regulated by relevant agreements and contracts that have legal force.

Table 1.2Structure of logistics functions at macro and micro levels

Micrologistics resolves local issues of individual firms and enterprises. Objects controlled by micrologistics are functional services and divisions of one enterprise or company, subordinate to its administration. The interaction between them is based on non-commodity relations and is regulated administratively.

A link in the logistics system (LSS) is a certain economica mically and (or) functionally isolated object that is not subject tofurther decomposition within the framework of the assigned task of analysis or construction of a logistics system that fulfills its local goal,associated with certain logistics operations or functions.

In the links of the logistics system, material and other related flows can converge, branch, split, change their content, parameters, intensity, etc. Thus, the links of the logistics system can be of three types: generating, transforming And absorbing.

Enterprises that supply material resources, manufacturing enterprises and their divisions, sales, trade, intermediary organizations of various levels, transport and forwarding enterprises, exchanges, banks and other financial institutions, service enterprises, etc. can act as links in the logistics system. With the concept of “logistics system” in Western and domestic literature, the concept of “logistics chain” is widely used.

Logistics chain (LC)-many links in the logistics systemwe are linearly ordered (optimized) by material (information, financial) flow in order to design a certain set of logistics functions and (or) costs.

Figure 1.6 can also be presented as a LC, where its elements are represented by gray rectangles. But consider a separate example of a supply chain, which is presented in Fig. 1.7. Essentially, this LC represents a sales chain (direct distribution) of the manufacturer’s finished products. From the position of logistics management, the seller, carrier and buyer are linearly connected links in the logistics system. Here, each link performs certain logistics operations, and in this chain, for example, the operation of loading cargo can be performed by both the manufacturer and the carrier. Therefore, the task of the logistics manager is to determine which of the alternative options is the most cost-effective under the same conditions of quality and execution time.

The concept is also found in economic literature "logisticallysky network", which can be defined as a complete set of links in the logistics system, interconnected by material andaccompanying flows.

The main object of analysis of an integrated logistics system is its logistics cycle (functional cycle of logistics)- a time-integrated set of functional cycles (cycles associated with logistics activities). In fact, the logistics cycle sets the structural basis of the integrated logistics system.

The logistics cycle can be classified as basic activities (supply, production, sales) or supporting activities.

Typically, the structure of the logistics cycle includes the following component cycles:

Order cycle;

Inventory creation (maintenance) cycle; customer order processing cycle;

cycle of purchasing and placing orders;

MP or GP delivery cycle;

production (operational) cycle;

Cycle of collecting consumer orders and preparing documentation; cycle of analysis and reporting.

A process is a stable, purposeful set of interrelated activities that, using a certain technology, transforms inputs into outputs that are valuable to the consumer.

Features of the logistics process include:

• 1) focus on logistics management processes implemented in supply chains - concentration, distribution and movement of resources;
• 2) emphasis on the object of study of logistics as a concept of enterprise management - flows of resources moved by links in resource supply systems;
• 3) taking into account the specifics of the process approach to supply chain management, aimed at eliminating obstacles to the trajectory of resource flows, the classification of which is presented in Fig. 2.10. Obstacles of a technological nature are caused, for example, by the inequality of production cycles on several types of equipment. In turn, obstacles of an organizational nature are associated, for example, with the excessive creation of reserves between these types of equipment, with the exception of interoperational backlogs arising for technological reasons;
• 4) the position that the functions of managing resource flows form the processes of managing the resource supply system.

Rice. 2.10.

The logistics process is a set of logistics operations (functions) and management functions focused on creating value for end consumers of products and services, ensuring the design, formation, movement and optimization of logistics flows by reducing and (or) eliminating interfunctional barriers in the logistics system.

Logistics operation - any action that is not subject to further decomposition within the framework of the emergence, transformation or absorption of a logistics flow.

It is obvious that the implementation of an operation (action) is not equivalent to a process (change) with a specific result.

In accordance with the data in Fig. 1.19 The main logistics operations include transportation, warehousing, storage, consolidation, disaggregation, sorting, labeling, packaging, packaging.

A separate set of logistics operations aimed at achieving the goals of the logistics system and (or) its links is usually called a logistics function.

An important difference between a function and a process is that a function is the duty (purpose) of an employee (or their group) to perform an operation (or type of activity), and a process is the transition of an object from a state with the same characteristics (at the input) to state with different characteristics (at the output).

Management functions are certain types of management activities that emerged in the process of specialization of management work.

Management functions are divided into general (basic): planning, organization, motivation and control and special (in relation to supply chain management, for example, integration, coordination and regulation).

A wide variety of logistics processes requires justification and choice of a methodological approach to their structuring. To solve this problem, it is advisable to use the approach laid down in the development of the reference model of operations in supply chains (from the English - Supply Chain Operations Reference model, SCOR), proposed by the International Supply Chain Council

(from English - Supply Chain Council, SCC) as a cross-industry standard for supply chain management.

Let's limit ourselves to part of the methodology SCOR- a standard description of logistics processes and functions for managing these processes at their basic levels.

Level 1. In accordance with the definition of logistics management, this level is represented by three key processes: concentration, distribution and movement of resource flows.

Level 2. This level includes two types of processes carried out within the framework of the first level processes: management and logistics.

Management processes include five functions: forecasting, synthesis, integration, regulation and coordination, each of which is performed within the framework of controlling (planning, control and accounting, as well as information support), thereby forming five management processes that ensure the implementation of logistics management processes: design , formation and optimization, including the movement of resource flows (Fig. 2.11).

Rice. 2.11.

• 1) management processes belong to the processes of sublevel 2.1, since the processes of “creating, informing, delivering and exchanging offers that have value for consumers, clients, partners and society as a whole” can only be started after creating a team of like-minded people and forming a management system, including number of its functions. It should be emphasized that the integration function is implemented within the framework of corporate, standardization, integration and entrepreneurial approaches, and the synthesis function is implemented within the framework of adaptive and institutional approaches to the management of business entities;
• 2) logistics processes are developed and executed as components of the main processes of logistics management - concentration, distribution (design, formation and optimization), which are processes of sublevel 2.2, as well as the movement of resource flows. The combination of objects of sublevels 2.1 and 2.2 in various combinations represents a variety of processes, the choice of which is determined by the complexity of the tasks assigned and is implemented within the framework of the organizational management structure (the “synthesis” function) according to the “ workplace - production site- shop (department) - block - enterprise (link) - channel - chain (front) - echelon”;
• 3) the content of processes formed on the basis of objects of sublevels 2.1 and 2.2 depends on the type of logistics flow (sublevel 2.3), which significantly increases the number of combinations of logistics processes. This circumstance presupposes the specialization of parts of the logistics system, focused on performing almost identical management functions in combination with technological and logistics processes specific to them;
• 4) an example of a logistics process implemented in supply chains is the process shown in Fig. 2.11 with arrows: “management (in the form of controlling, coordination and regulation) of the movement of human flow A.”

Level 3. Processes that are the result of detailing the processes of logistics management: concentration, distribution and movement depending on the parameters of logistics flows (Table 2.10).

Table 2.10

Structuring of logistics management processes

• 1) the processes of design, formation and optimization apply to the main objects of logistics management - flows, trajectories, systems and logistics processes. It should be emphasized that design and formation are used in solving innovative problems. Their standardization when performing these processes is problematic. In turn, optimization and movement processes can be standardized;
• 2) the above processes (and objects) are typical for all types of flows (in Table 2.10 they are represented by ellipses);
• 3) when developing logistics management processes, management processes are also used (see Fig. 2.11) with their further detail and taking into account the specifics of the logistics management object;
• 4) logistics management processes can be optimized based on iterations both in relation to these processes (horizontal dotted arrow) and in relation to logistics management objects (vertical dotted arrow).

It is known that when moving, material resources can:

• ? be in a state of flow (movement) or in a state of stock (stop);
• ? prepare to perform these and other logistics functions;
• ? arrive (input) or transfer (output) to a specific link in the resource supply system under responsibility or ownership.

Based on this, we can identify six logistics processes for the movement of resources in the management of material flows with codes adequate to them (Table 2.11).

Structuring of logistics processes for the movement of resources in the management of material flows (M)

Table 2.11

The structuring of logistics processes for the movement of resources when managing intangible flows is a consequence of the previous classification; its results are presented in Table. 2.12. Table data 2.12 are based on the following premises:

• ? the need for intangible resources is calculated after identifying the parameters of material flows and changes based on the results of adjusting these parameters;
• ? identifying sources of resources of this type contributes to the formation of a supply system for intangible resources that complement and ensure the formation of the logistics system as a whole;
• ? the acquisition of intangible resources is carried out as part of the purchase and conclusion of a supply contract - the processes of purchasing activities of enterprises;
• ? processing and dispatch of intangible resources are carried out using standard logistics operations discussed earlier;
• ? registration of documentation for the main types of resources is part of management accounting and creates the prerequisites for optimizing the main components of logistics management.

Table 2.12

Structuring of logistics processes of resource movement in the management of intangible flows (information - I, financial - F, service - S, human - L)

In addition to the movement of material flow objects designed to ensure the creation of value for end consumers of products and services, one should take into account the movement of resources that relate to ensuring logistics processes for the movement of resources when managing material flows. The main types of this security are presented in table. 2.13.

Between the objects presented in table. 2.11, 2.12 and 2.13, there are relationships that allow you to form integrated approach“6 x 6 x 6” to the structuring of logistics processes for the movement of resources in the management of material flows, in which each type of logistics process “M” (see Table 2.11) is associated with six logistics processes of the type “I, F, S, L” (see Table 2.12) and six types of support for logistics processes of the “Ob” type (see Table 2.13). This approach is shown schematically in Fig. 2.12.

Ensuring logistics processes for the movement of resources when managing material flows

Table 2.13

Rice. 2.12.

Level 4. This level includes the functions of logistics processes of concentration, distribution and movement of material and intangible resources.

The set of classification characteristics presented in Fig. 2.13, 2.14 and 2.15, allows you to determine the main functions carried out within the framework of the design, formation and optimization of logistics management components.

Rice. 2.13.

Rice. 2.14.

Rice. 2.15.

• ? identify the relationships between these functions, which are reflected by arrows;
• ? establish sequences for the implementation of these functions and ensure adjustments to the main components of logistics management.

Movement functions can be set bottom-up based on the data in Fig. 2.16. As follows from the content of this figure, logistics operations can also be structured depending on the value of the end consumers of products and services.

Rice. 2.16.

• ? a flow object can be subject to logistics operations for a short or long period of time, being in a state of movement and stop. In the first case we are talking about serving or waiting, in the second case - about transportation and storage;
• ? warehousing is an operation connecting transportation (feed) and storage (waiting);
• ? to the above operations, consolidation and disaggregation operations are added, and consolidation includes the operations of packaging, packaging and labeling (adding symbol or an identification label on the packaging of an object (product) or the object itself, and for disaggregation - the operation of removing material flow objects from packaging and containers and sorting them.

The classification and relationships of logistics operations make it possible to establish a set of logistics functions within the framework of the movement (Fig. 2.17) and stopping (Fig. 2.18) of resources.

Level 5. This level includes the operations of logistics processes presented in Fig. 2.16.

Rice. 2.17.

Rice. 2.18.

The final classification of logistics processes, functions and operations in the resource supply system is shown in Fig. 2.19 and creates the necessary prerequisites for ensuring the competitiveness of enterprises as part of supply chains through a clearer

Rice. 2.19. Final classification of logistics processes, functions and operations in the supply chain of delimitation resources job responsibilities employees of logistics management services and reducing lost profits when using complex hierarchically and horizontally ordered organizational management structures.

Management functions: essence and classification, characteristics of general and special management functions and their relationship. URL: http://ifreestore.net/1578/5/

The classification of systems is very conditional. The boundaries between their individual types and types are vague and are determined primarily by the researcher’s attitude to the system being studied, and not by reality.

In the practice of designing and creating logistics systems, a well-known classification is used. Logistics systems are divided into types and types.

Depending on the classification of logistics types (macro-, meso- and micrologistics) Medicines are divided into the following types:

- macrologistics system is a material flow management system that covers various organizations located in real time different regions countries and operating at the interstate or transcontinental level. That is, such systems are formed at the level of the state, interstate, interrepublican, interregional relations;

- mesological system – this is a system of integrated material flow management, covering various organizations operating in the same industry in a partnership;

- micrologistics system is a material flow management system organized within the boundaries of one organization. Micrologistics systems include various enterprises, firms, companies, as well as their specific divisions.

Depending on the organization of the movement of material flow The following types of logistics systems are distinguished:

1. With direct connections . In this logistics system, the material flow passes from the primary source of raw materials through procurement to the manufacturer and then to the final consumer without the participation of intermediaries.

2. echeloned . In a system of this type, the material flow passes from the original source of raw materials to the manufacturer or from the manufacturer to the final consumer only through an intermediary.

3. Flexible . In these systems, the movement of material flow can be carried out both with and without the participation of an intermediary.

The issue of choosing one or another scheme for organizing the movement of material flow is decided based on the results of an assessment of the current market situation, as well as the maximum possible economic result of the activity of the logistics system.

In modern logistics, there are many classifications of logistics operations and functions.

To logistics operations with material flow This includes loading, transportation, unloading, packaging, warehousing, packaging, etc.

Logistics operations with material flows in the sphere of circulation represent the operations of loading, unloading, transportation, packaging, warehousing, distribution, and packaging.

Logistics operations with material flows in production come down to placing orders, managing warehousing, selecting equipment, producers and suppliers, planning and dispatching the production process, accounting and inventory management.

Logistics operations with information flows boil down to the creation of information systems and the implementation within the framework of these systems of actions for the collection, storage, processing and transmission of information accompanying material flows and initiating these flows and managing them. The costs of performing logistics operations with information flows constitute a significant part of logistics costs.

Performing logistics operations with material flow entering or leaving the logistics system differs from performing the same operations within the logistics system. This is explained by the transfer of ownership of goods and insurance risks from one legal entity to another. On this basis, all logistics operations are divided into one-way and two-way.

Some logistics operations are essentially an extension of the technological production process, e.g. packaging . These operations change the consumer properties of the product and can be carried out both in the sphere of production and in the sphere of circulation, for example, in the packaging workshop of a wholesale warehouse.

Logistics operations performed during the supply process enterprises or sales of finished products are classified as external logistics operations. Logistics operations performed within the logistics system are called internal. Environmental uncertainty primarily affects the nature of external logistics operations.

Depending on the level of business organization, logistics functions divided into basic, key and supporting.

Feature Set in each group is determined by the characteristics of logistics processes and the organization of the logistics service in a particular company.

To basic logistics functions include supply, production and sales (distribution). Indeed, these three logistics functions are carried out by almost any commodity producer.

Supply - providing a manufacturing company or trading company with the necessary types of material resources or finished products.

Production - creation of products of personal and industrial consumption necessary for society using tools and objects of labor.

Sales (distribution) - physical movement and management of finished product inventories in the distribution structures of manufacturers and/or logistics intermediaries.

The key logistics functions are the following:

Maintaining customer service standards;

Procurement management

Transportation;

Inventory management;

Management of order procedures;

Management of production procedures;

Pricing;

Physical distribution.

Concept and elements of the logistics process . The concept of a logistics process is associated with the construction and functioning of a drug system. In general, the logistics process is a sequential change of states, stages of development, a set of sequential actions to achieve a result (for example, production process- sequential change of operations, etc.).

The term “logistics process” itself is not used as often as the other logistics concepts discussed above. For example, A.N. Rodnikov defines the logistics process as “a sequence of logistics operations ordered on the time axis, aimed at providing consumers with products of the appropriate range and quality in the required quantity at the required time and place.”

From a corporate position, the goal of building a logistics process must coincide with the goal of the company’s formed logistics strategy (the goal of building a drug system). In the definition of A.N. Rodnikov, the logistics mix acts as a target function for the formation of the logistics process, albeit in a somewhat truncated form. The logistics process can be formed at different levels of the network (channel, chain, ZLS) or functional (functional area of ​​logistics, subsystem, ZLS) hierarchy

Logistics process - a sequence of logistics operations/functions organized in a certain way over time, which makes it possible to achieve the goals of the LAN or its network (functional) divisions set for the planning period.

Seven rules of logistics . There are seven rules of logistics:

1. The product must be necessary for the consumer.

2. The product must be of appropriate quality.

3. The product must be in the required quantity.

4. The product must be delivered at the right time.

5. The product must be delivered to the desired location.

6. The product must be delivered at minimal cost.

7. The product must be delivered to a specific consumer.

The goal of logistics activity is considered achieved if these seven conditions are met, i.e. the right product of the required quality in the required quantity is delivered to a certain consumer at the right time in the right place at minimal cost.

One of fundamental concepts Logistics are the concepts of logistics operations and functions.

A logistics operation is any elementary action (set of actions) leading to the transformation of the parameters of material and/or related information, financial, service flows, which is not subject to further decomposition within the framework of the assigned task of administering or designing a logistics system.

Logistics operations include, for example, such actions performed on MR or GP as loading, unloading, packaging, transportation, acceptance and release from the warehouse, storage, transshipment from one mode of transport to another, kitting, sorting, consolidation, disaggregation and etc.

Logistics operations, synonymous with information and financial flows accompanying material, can be the collection, storage, transmission of information about the material flow, acceptance and transmission of orders through information channels, settlements with suppliers, buyers of goods and logistics intermediaries, cargo insurance, customs clearance operations of cargo etc.

In the terminological dictionary of A.N. Rodnikon interprets logistics operations as “an independent part of the logistics process, performed at one workplace and/or using one technical device, a separate set of actions aimed at transforming material and/or information flows.” In our opinion, such a definition somewhat narrows the objective and subject area logistics, especially in terms of integrating the logistics process in accordance with comprehensive logistics indicators and the use of modern information technology.

In foreign dictionaries, the concept “operation is interpreted in a general sense (within the framework of, for example, operational/production management”) without regard to logistics.

The degree of legalization of logistics operations depends on the following main factors:

• - type of drug (micro or macro level);
• - characteristics of the micro- and macroenvironment of the drug environment;
• - types and parameters of main and accompanying flows;
• - purposes of analysis, design or management in drugs;
• - selected logistics strategies, concepts, technologies and basic systems;
• - comprehensive indicators of logistics efficiency;
• - existing or projected system for accounting, control and monitoring of logistics plan indicators (logistics controlling system);
• - level of hierarchy and decomposition of drugs (subsystems, links, elements or logistics network, channels, chains);
• - corporate information system(CIS) supporting logistics;
• - technologies and techniques for modeling logistics business processes, etc.

As can be seen from the above list, decomposition of the logistics process to a specific set of operations is a complex and time-consuming task. It is usually solved at the company level and within the framework of constructing an information and management model of the enterprise, selecting the appropriate CIS and modeling logistics processes.

Logistics operations are carried out mainly by the lower (operational) levels of management in the relevant functional divisions of the company and its partners. In most cases, the advisability of allocating a logistics operation should be dictated by the practical possibility (and necessity) of taking into account the resource costs of its implementation.

The effectiveness of planning and decision-making in LS is largely determined by a properly constructed corporate database for logistics operations, which is part of the general CIS database. At the same time, each logistics operation must include the costs of finance, time and labor, which is the basis for normalizing resource costs in the company and allows for effective control of the logistics plan indicators.

Although the concept of “logistics function” is quite widespread in business practice and in the literature on logistics, there is no strict definition of it in either domestic or foreign dictionaries or textbooks. Typically, this concept is formed at the context level and depending on the object of research (formed LS) or the position of the researcher.

At the micro level (from the standpoint of a specific business), a logistics function is a separate set of logistics operations allocated for the purpose of increasing efficiency, managing the logistics process and the degree of logistics controllability of a business organization.

The level of aggregation of logistics operations into functions is influenced by; industry and product specialization, corporate and logistics strategies, organizational structure company management, logistics infrastructure, corporate information system. The separation of logistics functions is most often directly related to the separation in the company structural divisions logistics services or individual managers responsible for managing inventory, purchasing, transportation, warehousing, packaging, cargo handling, customs clearance cargo, etc.

In foreign practice and educational literature In logistics, it is customary to divide all logistics functions into main (key) and supporting (Fig. 1.7). However, like any classification, such a division is very arbitrary, and the set of functions in each troupe is determined by the characteristics of logistics processes and the organization of the logistics service in a particular company.

To key logistics functions in production ( industrial companies currently include:

• - maintaining quality standards for GP production and related services;
• - management of MR procurement to ensure production;
• - transportation;
• - inventory management;
• - management of order procedures;
• - support of production procedures;
• - information and computer support.

Supporting logistics functions typically include:

• - warehousing;
• - cargo handling;
• - protective packaging;
• - forecasting demand for GP and consumption of MR;
• - support for returning goods;
• - provision of spare parts and related services;
• - collection and disposal of returnable waste (management of secondary material resources).

For trading companies this list is correspondingly transformed due to the lack of actual production.

The division of specific logistics functions into key and supporting ones has developed historically; it is associated with the evolution of business, the development of marketing, management and logistics in industrialized countries. For example, the identification of maintaining product quality standards and logistics service and order management as the main logistics functions is caused by the requirements of end consumers, as a consequence of the fact that in most corporate strategies there is a focus on high quality goods and services (often produced to a specific order). The classification of transportation and inventory management as key logistics functions is explained by the high share of costs for their implementation (in the amount of 60-80% of total logistics costs). However, I would like to emphasize once again that the specific differentiation of logistics functions depends mainly on key indicators that determine the choice of the company’s logistics strategy.

A detailed description of logistics functions will be given in subsequent sections of the book in relation to the tasks of the functional logistics management of a company, the purpose of which is to manage these functions.

Ensuring and maintaining the quality of product production, distribution of goods and after-sales service are the primary tasks of the logistics management of any company. The ideology of Total Quality Management (TQM), widespread abroad, and mandatory certification of products and services using a series of ISO 9000 standards (International Standard Organization) require continuous efforts from companies, including through logistics approaches aimed at the most high level quality of goods and service. Logistics solutions play an important role in organizing the delivery of goods and services of the required quality at the agreed time and place.

Much attention in logistics management is paid to procurement procedures for MR to ensure production goals. Organization and management of purchases in a company include a set of tasks such as selecting suppliers of materials, planning requirements, determining rational periods of time and volumes of supply of resources, organizing contract work, choosing forms of supply and types of transport for delivering materials to production departments, etc. Importance procurement procedures is also explained by the fact that the factors of time and location of suppliers, the quality of materials have a great influence on the amount of logistics costs.

As mentioned above, one of the key logistics functions is transportation. This is primarily due to the fact that without transportation there is practically no material flow. At the same time, the transportation process itself is considered in a broader sense than the actual transportation of goods, namely: as a combination of transportation, loading and unloading, forwarding and other related logistics operations. The importance of transportation is explained not least by the fact that its costs in some sectors of the economy reach two-thirds of the total amount of logistics costs. Transportation management usually involves solving such problems as choosing a translator and forwarder, choosing a vehicle, determining rational routes, selecting a vehicle for certain type cargo, etc.

MR and GP inventory management is the process of creating, monitoring and regulating inventory levels in the procurement, production and sale of products. If transportation is determined by the location factor, then inventory is determined by the time factor. Usually there is always a certain need for reserves of MR and GP, which play the role of a buffer between MR suppliers and production, on the one hand, and between production and GP consumers, on the other. Reducing the risks of a shortage of MR during the production process or unsatisfying demand for GL from consumers, stocks at the same time have a negative impact on the economy, freezing financial resources in large volumes of inventory. Therefore, the most important task of logistics management is to optimize inventory levels in various areas supply chains and systems while ensuring the required level of service. The cost of creating and maintaining inventory accounts for 20 to 60% of total logistics costs, reinforcing the importance of this key logistics function.

The order management function determines the procedures for receiving and processing orders, the timing of receipt of goods or provision of services, and also directs the work of the branded distribution network or logistics intermediaries for the delivery and sale of goods to consumers. Although the costs of this key logistics function are not as high as transportation or inventory management, its importance modern business is very large, as it directly determines the quality of customer service.

It is impossible not to dwell on the information and computer support function, which relatively recently traditionally belonged to the group of supporting logistics functions. The rapid progress of information technology and CIS in the last 5-7 years has literally revolutionized logistics, which is now impossible to imagine without information and computer support. Investments of many companies in information management systems and technologies (including those related to logistics) reach astronomical values. Therefore, in the above classification, information and computer support is classified as a key logistics function.

Warehousing is a logistics function for managing the spatial placement of products and provides for; determination of the number, types and location of warehouses; storage volume (area)? and GP; layout of warehouse space, design of transportation, sorting, loading and unloading areas, as well as the selection of lifting and transport and other technological warehouse equipment, etc.

Cargo handling (cargo handling) is usually carried out simultaneously with warehousing and also provides the function of maintaining inventory and. Elementary logistics operations that make up the cargo handling process are the movement of materials or goods in a warehouse, the placement of products on warehouse racks, the movement of products, for example, from the cargo acceptance area to the place of placement on warehouse racks and from them to the dispatch area, etc. p. This logistics function is usually associated with the selection of technological and loading and unloading equipment for organizing short movements of goods throughout the warehouse; with the organization of procedures for sorting, consolidating or picking cargo for fulfilling orders and transportation; maintaining a rational volume of warehouse turnover, etc.

In the logistics process, an important role is played by protective packaging, which ensures the safety of goods during transportation and warehouse handling. Besides, great value in marketing and packaging, since consumer demand largely depends on its appearance and attractiveness. The use of standard standard size ranges of containers and packaging in logistics can significantly reduce logistics costs by matching the volumetric modules of containers and packaging with cargo capacity vehicles, and also with technological parameters storage facilities and mineral processing equipment.

Logistics support functions also include various procedures for the collection and return of goods that for some reason do not satisfy customers or have not passed the warranty period. Along with the organization service, repair of GP and provision of spare parts to consumers, procedures for returning GP to manufacturers form an after-sales service system, which is sometimes considered as a key logistics function.

In the processes of production and sale of GPs at night, so-called secondary MR hiccups, which consist of production waste (returnable and non-returnable) and waste from industrial and personal consumption. Secondary MRs form specific material flows, the management of which is currently also included in the field of logistics research.

Sometimes, especially in foreign practice, a group of supporting logistics functions include forecasting, pricing (in the sense of highlighting logistics costs in the final price of the GP), auditing, controlling, etc.