Directions for Improving the Efficiency of Logistics Systems

Abstract

The article examines the concept of a modern logistics system, main problems that are solved to increase its efficiency and the main results that are achieved due to the optimization of the activities of key areas of logistics systems. Logistics promotes to receive products and services at the moment when they are needed by customers. It also helps in economic operations, serving the main factor of trade and commerce growth.

With the advent of the mass production system, logistics began to be recognized as a separate function. Production and transportation were previously seen as the next chain of specialized activities. The role of logistics is to provide the availability of all needed materials before each step in this chain. It is obvious that the inventory of raw materials, semi-finished products and finished products is mandatory for this chain to ensure its smooth functioning.

The logistics concept is based on a systematic approach. There is a single chain, with the flow of materials starting from the supplier, then to the factory and finally to the end user, and these activities are also performed step-by-step to satisfy the consumers at low cost. To perform successfully this work, the coordinated activity is needed. Regarding the organization, it acquires a concrete form thanks to its structure. In the past, suppliers dealing with the distribution were distributed across the structure, this led to overlapping of the work. In today's process-oriented organization, where the focus shifted from the function to the process, logistics has become an important part of the process.