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Managing different areas of logistics as integrated
components of a single
value-added process allows you to multiply the benefits generated by the unique
properties of each of them, and at the same time, facilitates the logistics activity in
general. The main goal of integrated logistics is to coordinate all inventory
movements that add value to them. The combination of these three areas gives the
company the ability to establish a unified management
of the flow of materials,
semi-finished finished products, moving between its factories,
sources of supply
and consumers. In this sense, logistics serves as a tool for strategic management of
the aggregate material flow.
Coordination is the backbone of the entire system of information exchange
between participants in the value chain. Coordination is embodied in plans that
define;
strategic goals; constraints due to available capacity; logistics needs;
placement of stocks; production needs; supply needs; forecasts for the future.
Capacity constraints coordinate internal and external production needs. Those
outside the manufacturing value chain do not need this form of capacity planning.
With
these strategic goals, capacity constraints define the limits of production
possibilities, as well as the corresponding needs for external sources.
The information identifies the specific needs of specific objects of the
logistics system.
In addition, the information unites three areas of logistics.
Actually, identifying needs is needed primarily for planning and integrating
logistics operations. Each area of logistics has its own requirements for the size of
orders, the availability of stocks, as well as the speed of their movement. The main
task of information exchange is to reconcile these differences. It should be
emphasized that the flow of information moves in parallel with practical activities
in the
areas of physical distribution, production support and supply. While these
areas do the real work of logistics, information
facilitates the coordination,
planning and control of day-to-day operations.
The entire array of logistic information is formed by two main streams:
coordination and operational.
The overall purpose of the planning / coordination information flow is to
integrate individual operations within the firm and to facilitate integrated activities
as a whole. Without a high degree of integration,
conditions remain for
unproductive use of resources and the formation of surplus stocks.
Information needs of the second type are dictated by the need to organize the
receipt, processing and delivery of inventory as required for the fulfillment of
customer orders and for purchases. Operational information needs relate to: order
management;
processing
orders;
distribution;
inventory
management;
transportation; supply.
Order management is associated with the exchange
of information about
needs between participants in the value chain, including the link where the physical
distribution of finished products takes place. The primary function of order
management is the precise formulation and placement of customer orders.
Communication between participants in the value chain is usually carried out by