The logistics chain includes the physical flow of goods, the associated leading, accompanying and subsequent flow of information. To ensure a directed flow of goods and information along the logistics chain, the elements of the chain must be aligned with one another in such a way that they are logically related in terms of organizational processes. Each individual process is both a customer with regard to the upstream process and a supplier with regard to the downstream process (process chain management).
What is a logistics chain?
Logistic chain offers technological connection of storage and shipping points during the transport of goods. The logistic chain can be defined as a logistic network that extends between the markets for the delivery and sale of finished goods. More precisely between: manufacturers, suppliers, trade relationships, logistics service providers and end customers. It involves close cooperation between companies, suppliers, customers and other chain units, enables the smooth transport of goods, but also of information and financial resources.
Processes in the logistics chain
The various measures within the framework of the functioning of the logistic chain are a stage in the entire process of goods and services from the producer to the consumer. All procedures and processes that affect procurement and inventory between the individual links in this chain are organizationally and financially consistent. We can differentiate between several basic processes in the logistics chain:
- Production management
- Inventory management
- Demand management
- Order processing
Types of sources in the logistics chain
Logistics chains differ in complexity and structure (e.g. parallel, serial and branching), but we can distinguish four main types of links in each supply chain:
- Link (source) for the procurement of raw materials
- Connections for the transportation and delivery of raw materials - brokers, commercial agents for raw materials and semi-finished products
- Connection of the manufacture of finished products
- Sales link - for the delivery of finished products to the customer